Shown verbatim: the complete text as captured from the official PDF posted by the Indiana General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
Large document: the complete text runs about 134,000 words on this one page, so it can take a moment to load and render.
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.
SENATE ENROLLED ACT No. 1
AN ACT to amend the Indiana Code concerning taxation and to
make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 3-10-9-3, AS AMENDED BY P.L.225-2011,
SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), if a
local public question must be certified to an election board by law, that
certification must occur no later than noon:
(1) seventy-four (74) days before a primary election if the public
question is to be placed on the primary or municipal primary
election ballot; or
(2) August 1 if the public question is to be placed on the general
or municipal election ballot.
(b) A referendum or local public question:
(1) under IC 20-46-1;
(2) under IC 20-46-9; or
(3) under IC 6-1.1-20 for controlled projects;
may be placed on the ballot only at a general election. Certification
of a local public question under this subsection must occur not
later than noon August 1.
SECTION 2. IC 5-1-14-14, AS AMENDED BY P.L.197-2016,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 14. (a) Notwithstanding any other law, a
municipality may sell the municipality's interest in any notes payable
to the municipality at a negotiated sale.
SEA 1 — Concur
2
(b) A county or municipality may establish a revolving fund from
grants, the revenue received by the county or municipality under
IC 6-3.6-9 and allocated for economic development purposes, under
IC 6-3.6-6-9, the proceeds of the sale of notes, or the proceeds of bonds
issued under this section and IC 36-9-32. The county or municipality
may loan the money in the revolving fund to any borrower if the county
or municipal fiscal body finds that the loan will be used by the
borrower for one (1) or more of the following economic development
purposes:
(1) Promoting significant opportunities for the gainful
employment of the county's or municipality's residents.
(2) Attracting a major new business enterprise to the county or
municipality.
(3) Retaining or expanding a significant business enterprise in the
county or municipality.
(c) Activities that may be undertaken by the borrower in carrying
out an economic development purpose include expenditures for any of
the following:
(1) Acquisition of land.
(2) Acquisition of property interests.
(3) Site improvements.
(4) Infrastructure improvements.
(5) Buildings.
(6) Structures.
(7) Rehabilitation, renovation, or enlargement of buildings or
structures.
(8) Machinery.
(9) Equipment.
(10) Furnishings.
(d) Local governmental entities may borrow under subsection (b) if
the local governmental entity's jurisdiction includes the geographic area
within the boundaries of the county or municipality that established the
revolving fund. Notwithstanding any other law, the following
provisions apply to the borrowing:
(1) The county or municipality that established the revolving fund
and the local governmental entity borrower may each authorize
the loan from the revolving fund and the issuance of notes
evidencing the loan by resolution. In each case, the resolution
shall be adopted by the body with control over fiscal matters.
(2) A resolution adopted under subdivision (1) must approve:
(A) the term of the loan;
(B) the interest rate;
SEA 1 — Concur
3
(C) the form of the note or notes;
(D) the medium of payment;
(E) the place and manner of payment;
(F) the manner of execution of the note or notes;
(G) the terms of redemption;
(H) the funds or sources of funds from which the note or notes
are payable, which may be any funds and sources of funds
available to the borrower; and
(I) any other provisions not inconsistent with this section.
(3) The notes and the authorization, issuance, sale, and delivery
of the notes are not subject to any general statute concerning
obligations issued by the local governmental entity borrower. This
section contains full and complete authority for the making of the
loan, the authorization, issuance, sale, and delivery of the notes,
and the repayment of the loan by the borrower, and no law,
procedure, proceedings, publications, notices, consents,
approvals, orders, or acts by any officer, department, agency, or
instrument of the state or of any political subdivision is required
to make the loan, issue the notes, or repay the loan except as
prescribed in this section.
(4) The notes issued by a local governmental entity borrower are
exempt from taxation for all purposes and are exempt from any
security registration requirements provided for in Indiana statutes.
(5) Notes issued by a local governmental entity borrower under
this section are obligations for all purposes of this chapter.
(e) A municipality may issue bonds under IC 36-9-32-7(b) through
IC 36-9-32-7(j) for the economic development purposes listed in
subsection (c) and may repay the indebtedness solely from revenues
derived from the repayment of any notes, including notes evidencing
loans made under subsection (b).
(f) To the extent a revolving fund under subsection (b) is funded
from:
(1) revenues received by the county under IC 6-3.6-9 and
allocated for economic development purposes; under
IC 6-3.6-6-9; or
(2) repayments of principal and interest on loans from the
revolving fund that were funded with revenues described in
subdivision (1);
money in the revolving fund may at any time be transferred in whole
or in part to the unit's economic development income tax fund, as
determined by ordinance of the unit's fiscal body.
(g) The general assembly finds that counties and municipalities in
SEA 1 — Concur
4
Indiana have a need to foster economic development and industrial and
commercial growth. The general assembly finds that it is necessary and
proper to provide an alternative method for municipalities to foster the
following:
(1) Economic development.
(2) Industrial and commercial growth.
(3) Employment opportunities.
(4) Diversification of industry and commerce.
It is declared that the fostering of economic development under this
section for the benefit of the general public, including industrial and
commercial enterprises, is a public purpose.
SECTION 3. IC 5-1-14-17 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 17. (a) This section applies to a qualified
political subdivision.
(b) As used this section, "general obligation bond" means a
bond issued for a short term period of not more than five (5) years
and payable from property taxes for a purpose or project that is
not a controlled project (as defined in IC 6-1.1-20-1.1) for which
the bond is not required to be issued using the procedures in
IC 6-1.1-20.
(c) As used in this section, "qualified political subdivision"
means a county, city, town, township, or school corporation.
(d) Notwithstanding any other law, and except as provided in
subsection (e), if a qualified political subdivision issues new general
obligation bonds, or has issued general obligation bonds before
May 1, 2025, for a period of two (2) years of less, then at the
expiration of those general obligation bonds, the qualified political
subdivision must wait one (1) year from that date before the
qualified political subdivision may issue general obligation bonds.
(e) Subsection (d) shall not apply to a qualified political
subdivision in the case of a natural disaster, an accident, or another
unanticipated emergency as determined by the department of local
government finance.
SECTION 4. IC 5-16-9-3, AS AMENDED BY P.L.197-2016,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 3. (a) If a public agency has no parking facility
under its jurisdiction or control available to private persons who desire
to conduct business with the public agency, the public agency shall
direct the local authority having jurisdiction over the portion of the
streets which are adjacent to the facilities of the public agency to
reserve parking spaces for the use of persons with physical disabilities.
SEA 1 — Concur
5
(b) If a retail shopping mall is constructed in whole or in part with
revenue derived from a local income tax imposed under IC 6-3.6-6 and
allocated for economic development purposes, under IC 6-3.6-6-9, the
local authority having jurisdiction over the portion of the streets
adjacent to the retail shopping mall shall reserve parking spaces for the
use of persons with physical disabilities.
SECTION 5. IC 6-1.1-2-11 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 11. (a) As used in this section, "tax
increment financing allocation area" means any area authorized
by statute in which ad valorem property taxes are allocated,
including the following:
(1) IC 6-1.1-39 (economic development districts).
(2) IC 8-22-3.5 (airport development zones).
(3) IC 36-7-14 (redevelopment of areas needing
redevelopment generally).
(4) IC 36-7-15.1 (redevelopment of areas in Marion County).
(5) IC 36-7-30 (reuse of federal military bases).
(6) IC 36-7-30.5 (development of multicounty federal military
bases).
(7) IC 36-7-32 (certified technology parks).
(8) IC 36-7-32.5 (innovation development districts).
(9) IC 36-7.5-4.5 (rail transit development districts).
(b) The department shall, in each year beginning after
December 31, 2025, and ending before January 1, 2034, adjust the
base assessed value of each tax increment financing allocation area
to neutralize the effect of the changing tax rates resulting year to
year from the homestead deduction under IC 6-1.1-12-37(c)(2) and
IC 6-1.1-12-37.5(c) and the deduction for eligible property under
IC 6-1.1-12-47. It is the intent of the general assembly that an
increase in revenue from a change in tax rates resulting from these
statutes accrue only to the base assessed value and not to the tax
increment financing allocation area. However, in the case of a
decrease in revenue from a change in tax rates resulting from these
statutes, the department may neutralize the change under this
subsection in a positive manner with regard to the tax increment
financing allocation area to protect the ability to pay bonds based
on incremental revenue, if the tax increment financing allocation
area demonstrates to the department that an adjustment is needed
before the department calculates a positive neutralization
adjustment.
SECTION 6. IC 6-1.1-3-7.2, AS AMENDED BY P.L.137-2022,
SEA 1 — Concur
6
SECTION 11, 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
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 that assessment date,
assessment dates before 2025;
(2) one million dollars ($1,000,000) for the 2025 assessment
date; and
(3) 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
SEA 1 — Concur
7
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
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.
SECTION 7. IC 6-1.1-3-22, AS AMENDED BY P.L.159-2020,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 22. (a) Except to the
extent that it conflicts with a statute and subject to subsection (f), 50
IAC 4.2 (as in effect January 1, 2001), which was formerly
incorporated by reference into this section, is reinstated as a rule.
(b) Tangible personal property within the scope of 50 IAC 4.2 (as
in effect January 1, 2001) shall be assessed on the assessment dates in
calendar years 2003 and thereafter in conformity with 50 IAC 4.2 (as
in effect January 1, 2001).
(c) The publisher of the Indiana Administrative Code shall publish
50 IAC 4.2 (as in effect January 1, 2001) in the Indiana Administrative
Code.
(d) 50 IAC 4.3 and any other rule to the extent that it conflicts with
this section is void.
(e) A reference in 50 IAC 4.2 to a governmental entity that has been
terminated or a statute that has been repealed or amended shall be
treated as a reference to its successor.
(f) The department of local government finance may not amend or
repeal the following (all as in effect January 1, 2001):
(1) 50 IAC 4.2-4-3(f).
SEA 1 — Concur
8
(2) 50 IAC 4.2-4-7.
(3) 50 IAC 4.2-4-9.
(4) 50 IAC 4.2-5-7.
(5) 50 IAC 4.2-5-13.
(6) 50 IAC 4.2-6-1.
(7) 50 IAC 4.2-6-2.
(8) 50 IAC 4.2-8-9.
However, the department of local government finance may amend
these rules to conform with statutory changes.
(g) Notwithstanding any other provision of this section, 50
IAC 4.2-4-6(c) is void effective July 1, 2015. The publisher of the
Indiana Administrative Code and the Indiana Register shall remove this
provision from the Indiana Administrative Code.
(h) Notwithstanding any other provision of this section, the
department of local government finance shall adopt rules
amending 50 IAC 4.2 to reflect the enactment of section 29 of this
chapter.
SECTION 8. IC 6-1.1-3-23, AS AMENDED BY P.L.220-2011,
SECTION 119, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 23. (a) In
enacting this section, the general assembly finds the following:
(1) The economy of northern Indiana has historically been heavily
dependent upon:
(A) the domestic steel industry, particularly the integrated steel
mill business, which produces steel from basic raw materials
through blast furnace and related operations; and
(B) the oil refining and petrochemical industry.
(2) Northern Indiana is the only area of Indiana with integrated
steelmaking facilities.
(3) During the last thirty (30) years, the domestic steel industry
has experienced significant financial difficulties. More than
one-half (1/2) of the integrated steel mills in the United States
were shut down or deintegrated, with the remainder requiring
significant investment and the addition of new processes to make
the facilities economically competitive with newer foreign and
domestic steelmaking facilities and processes.
(4) The United States needs to protect the capacity of the oil
refining and petrochemical industry. No oil refineries have been
built in the United States since 1976.
(5) Given the economic conditions affecting older integrated
steelmaking facilities, integrated steel mills claimed abnormal
obsolescence in reporting the assessed value of equipment located
SEA 1 — Concur
9
at the integrated steelmaking facilities that began operations
before 1970, thereby reporting the equipment's assessed value at
far below thirty percent (30%) of the equipment's total cost (far
below the "thirty percent (30%) floor" value generally applicable
to equipment exhibiting only normal obsolescence under the
current department of local government finance rules).
(6) Current law existing before January 1, 2003, obligates the
taxpayers making abnormal obsolescence claims to pay personal
property taxes based only on, and permits communities to
determine property tax budgets and rates based only on, the
reported personal property assessed values until the personal
property appeals are resolved. Consequently, as a result of
abnormal obsolescence claims, the property tax base of
communities in northern Indiana is severely reduced for an
indeterminate period (if not permanently). The prospect of future
appeals and their attendant problems on an ongoing basis must be
addressed.
(7) A new, optional method for valuing the equipment of
integrated steel mills and entities that are at least fifty percent
(50%) owned by an affiliate of an integrated steel mill ("related
entities") and the oil refining and petrochemical industry in
northern Indiana is needed. That optional method:
(A) recognizes the loss of value and difficulty in valuing
equipment at integrated steelmaking facilities and facilities of
the oil refining and petrochemical industry that commenced
operations decades ago and at the facilities of related entities;
(B) recognizes that depreciable personal property used in
integrated steelmaking and in oil refinery or petrochemical
operations and by related entities is affected by different
economic and market forces than depreciable personal
property used in other industries and certain other segments of
the steel industry and therefore experiences different amounts
of obsolescence and depreciation; and
(C) can be used to simply and efficiently arrive at a value
commensurate with that property's age, use, obsolescence, and
market circumstances instead of the current method and its
potentially contentious and lengthy appeals. Such an optional
method would benefit the communities where these older
facilities are located.
(8) Such an optional method would be to authorize a fifth pool in
the depreciation schedule for valuing the equipment of integrated
steel mills, related entities, and the oil refining and petrochemical
SEA 1 — Concur
10
industry that reflects all adjustments to the value of that
equipment for depreciation and obsolescence, including abnormal
obsolescence, which precludes any taxpayer electing such a
method from taking any other obsolescence adjustment for the
equipment, and which applies only at the election of the taxpayer.
(9) The purpose for authorizing the Pool 5 method is to provide
a more simplified and efficient method for valuing the equipment
of integrated steel mills and the oil refining and petrochemical
industry that recognizes the loss of value and unusual problems
associated with the valuation of the equipment or facilities that
began operations before 1970 in those industries in northern
Indiana, as well as for valuing the equipment of related entities,
to stabilize local property tax revenue by eliminating the need for
abnormal obsolescence claims, and to encourage those industries
to continue to invest in northern Indiana, thereby contributing to
the economic life and well-being of communities in northern
Indiana, the residents of northern Indiana, and Indiana generally.
(10) The specific circumstances described in this section do not
exist throughout the rest of Indiana.
(b) For purposes of this section:
(1) "adjusted cost" refers to the adjusted cost established in 50
IAC 4.2-4-4 (as in effect on January 1, 2003);
(2) "depreciable personal property" has the meaning set forth in
50 IAC 4.2-4-1 (as in effect on January 1, 2003);
(3) "integrated steel mill" means a person, including a subsidiary
of a corporation, that produces steel by processing iron ore and
other raw materials in a blast furnace in Indiana;
(4) "oil refinery/petrochemical company" means a person that
produces a variety of petroleum products by processing an annual
average of at least one hundred thousand (100,000) barrels of
crude oil per day;
(5) "permanently retired depreciable personal property" has the
meaning set forth in 50 IAC 4.2-4-3 (as in effect on January 1,
2003);
(6) "pool" refers to a pool established in 50 IAC 4.2-4-5(a) (as in
effect on January 1, 2003);
(7) "special integrated steel mill or oil refinery/petrochemical
equipment" means depreciable personal property, other than
special tools and permanently retired depreciable personal
property:
(A) that:
(i) is owned, leased, or used by an integrated steel mill or an
SEA 1 — Concur
11
entity that is at least fifty percent (50%) owned by an
affiliate of an integrated steel mill; and
(ii) falls within Asset Class 33.4 as set forth in IRS Rev.
Proc. 87-56, 1987-2, C.B. 647; or
(B) that:
(i) is owned, leased, or used as an integrated part of an oil
refinery/petrochemical company or its affiliate; and
(ii) falls within Asset Class 13.3 or 28.0 as set forth in IRS
Rev. Proc. 87-56, 1987-2, C.B. 647;
(8) "special tools" has the meaning set forth in 50 IAC 4.2-6-2 (as
in effect on January 1, 2003); and
(9) "year of acquisition" refers to the year of acquisition
determined under 50 IAC 4.2-4-6 (as in effect on January 1,
2003).
(c) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50
IAC 4.2-4-7, a taxpayer may elect to calculate the true tax value of the
taxpayer's special integrated steel mill or oil refinery/petrochemical
equipment by multiplying the adjusted cost of that equipment by the
percentage set forth in the following table:
Year of Acquisition Percentage
1 40%
2 56%
3 42%
4 32%
5 24%
6 18%
7 15%
8 and older 10%
(d) The department of local government finance shall designate the
table under subsection (c) as "Pool No. 5" on the business personal
property tax return.
(e) The percentage factors in the table under subsection (c)
automatically reflect all adjustments for depreciation and obsolescence,
including abnormal obsolescence, for special integrated steel mill or oil
refinery/petrochemical equipment. The equipment is entitled to all
exemptions, credits, and deductions for which it qualifies.
(f) The minimum valuation limitations under 50 IAC 4.2-4-9
section 29 of this chapter do not apply to special integrated steel mill
or oil refinery/petrochemical equipment valued under this section. The
value of the equipment is not included in the calculation of that
minimum valuation limitation for the taxpayer's other assessable
depreciable personal property in the taxing district.
SEA 1 — Concur
12
(g) An election to value special integrated steel mill or oil
refinery/petrochemical equipment under this section:
(1) must be made by reporting the equipment under this section
on a business personal property tax return;
(2) applies to all of the taxpayer's special integrated steel mill or
oil refinery/petrochemical equipment located in the state (whether
owned or leased, or used as an integrated part of the equipment);
and
(3) is binding on the taxpayer for the assessment date for which
the election is made.
The department of local government finance shall prescribe the forms
to make the election beginning with the March 1, 2003, assessment
date. Any special integrated steel mill or oil refinery/petrochemical
equipment acquired by a taxpayer that has made an election under this
section is valued under this section.
(h) If fifty percent (50%) or more of the adjusted cost of a taxpayer's
property that would, notwithstanding this section, be reported in a pool
other than Pool No. 5 is attributable to special integrated steel mill or
oil refinery/petrochemical equipment, the taxpayer may elect to
calculate the true tax value of all of that property as special integrated
steel mill or oil refinery/petrochemical equipment. The true tax value
of property for which an election is made under this subsection is
calculated under subsections (c) through (g).
SECTION 9. IC 6-1.1-3-23.5, AS AMENDED BY P.L.236-2023,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 23.5. (a) For purposes of
this section:
(1) "adjusted cost" has the meaning set forth in section 23(b)(1)
of this chapter;
(2) "depreciable personal property" has the meaning set forth in
section 23(b)(2) of this chapter;
(3) "mini-mill" means a person, including a subsidiary of a
corporation, that produces steel using an electric arc furnace in
Indiana;
(4) "permanently retired depreciable personal property" has the
meaning set forth in section 23(b)(5) of this chapter;
(5) "pool" has the meaning set forth in section 23(b)(6) of this
chapter;
(6) "mini-mill equipment" means depreciable personal property,
other than special tools and permanently retired depreciable
personal property, that is owned, leased, or used by a mini-mill or
an entity that is at least fifty percent (50%) owned by an affiliate
SEA 1 — Concur
13
of a mini-mill in the production of steel;
(7) "special tools" has the meaning set forth in section 23(b)(8) of
this chapter; and
(8) "year of acquisition" for purposes of applying the table in
section 23(c) of this chapter, has the meaning set forth in section
23(b)(9) of this chapter.
(b) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50
IAC 4.2-4-7, beginning with the January 1, 2023, assessment date, a
taxpayer may elect to calculate the true tax value of the taxpayer's
mini-mill equipment by multiplying the adjusted cost of that equipment
by the applicable percentage set forth in the table designated as "Pool
No. 5" under section 23(c) and 23(d) of this chapter.
(c) The percentage factors in the table under section 23(c) of this
chapter automatically reflect all adjustments for depreciation and
obsolescence, including abnormal obsolescence, for mini-mill
equipment. The equipment is entitled to all exemptions, credits, and
deductions for which it qualifies.
(d) The minimum valuation limitations under 50 IAC 4.2-4-9
section 29 of this chapter do not apply to mini-mill equipment valued
under this section. The value of the equipment is not included in the
calculation of that minimum valuation limitation for the taxpayer's
other assessable depreciable personal property in the taxing district.
(e) An election to value mini-mill equipment under this section:
(1) must be made by reporting the equipment under this section
on a business personal property tax return;
(2) applies to all of the taxpayer's mini-mill equipment located in
the state (whether owned or leased, or used as an integrated part
of the equipment); and
(3) is binding on the taxpayer for the assessment date for which
the election is made.
The department of local government finance shall prescribe the forms
to make the election beginning with the January 1, 2023, assessment
date. Any mini-mill equipment acquired by a taxpayer that has made
an election under this section is valued under this section.
(f) If fifty percent (50%) or more of the adjusted cost of a taxpayer's
property that would, notwithstanding this section, be reported in a pool
other than "Pool No. 5" (as designated under section 23 of this chapter)
is attributable to mini-mill equipment, the taxpayer may elect to
calculate the true tax value of all of that property as mini-mill
equipment. The true tax value of property for which an election is made
under this subsection is calculated under subsections (b) through (e).
SECTION 10. IC 6-1.1-3-25, AS ADDED BY P.L.238-2017,
SEA 1 — Concur
14
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 25. (a) As used in this
section, "district" refers to an entrepreneur and enterprise district
designated under IC 5-28-15.5.
(b) Notwithstanding section 22(b) of this chapter and
IC 6-1.1-8-44(b), assessable depreciable personal property that:
(1) is located in a district;
(2) is placed in service in the district by the owner of the property
after the designation of the district under IC 5-28-15.5; and
(3) is used within the district by one (1) or more employees who
perform the majority of their service within the district;
is not subject to the valuation limitations in 50 IAC 4.2-4-9 section 29
of this chapter or 50 IAC 5.1-6-9. IC 6-1.1-8-45.
SECTION 11. IC 6-1.1-3-29 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION 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.
(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 12. IC 6-1.1-4-4.5, AS AMENDED BY P.L.8-2022,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SEA 1 — Concur
15
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
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
SEA 1 — Concur
16
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
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)
SEA 1 — Concur
17
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.
SECTION 13. IC 6-1.1-8-44, AS AMENDED BY P.L.38-2021,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 44. (a) Except to the
extent that it conflicts with a statute and subject to subsection (f), 50
IAC 5.1 (as in effect January 1, 2001), which was formerly
incorporated by reference into this section, is reinstated as a rule.
(b) Tangible personal property within the scope of 50 IAC 5.1 (as
in effect January 1, 2001) shall be assessed on the assessment dates in
calendar years 2003 and thereafter in conformity with 50 IAC 5.1 (as
in effect January 1, 2001).
(c) The publisher of the Indiana Administrative Code shall publish
50 IAC 5.1 (as in effect January 1, 2001) in the Indiana Administrative
Code.
(d) 50 IAC 5.2 and any other rule to the extent that it conflicts with
this section is void.
(e) A reference in 50 IAC 5.1 to a governmental entity that has been
terminated or a statute that has been repealed or amended shall be
treated as a reference to its successor.
(f) The department of local government finance may not amend or
repeal the following (all as in effect January 1, 2001):
(1) 50 IAC 5.1-6-6.
(2) 50 IAC 5.1-6-7.
(3) 50 IAC 5.1-6-8.
(4) 50 IAC 5.1-6-9.
(5) 50 IAC 5.1-8-1.
(6) 50 IAC 5.1-9-1.
(7) 50 IAC 5.1-9-2.
However, the department of local government finance may amend
these rules to reflect statutory changes.
(g) Notwithstanding any other provision of this section, the
department of local government finance shall adopt rules
SEA 1 — Concur
18
amending 50 IAC 5.1 to reflect the enactment of section 45 of this
chapter.
SECTION 14. IC 6-1.1-8-45 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION 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 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 15. IC 6-1.1-10.3-2 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 2. As used in this chapter, "local income tax council"
refers to the local income tax council established by IC 6-3.6-3-1 for a
county.
SECTION 16. IC 6-1.1-10.3-3, AS AMENDED BY P.L.197-2016,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 3. As used in this chapter, "exemption ordinance"
refers to an ordinance adopted under section 5 of this chapter by a local
income tax council (before July 1, 2027) or by a county adopting
body specified in IC 6-3.6-3-1(a) (after June 30, 2027).
SECTION 17. IC 6-1.1-10.3-5, AS AMENDED BY P.L.197-2016,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 5. (a) A local income tax council county adopting
SEA 1 — Concur
19
body specified in IC 6-3.6-3-1(a) may adopt an exemption ordinance
that exempts new personal property located in the county from property
taxation as provided in section 6 of this chapter.
(b) For purposes of adopting an exemption ordinance under this
chapter, a local income tax council is comprised of the same members
as the local income tax council that is established by IC 6-3.6-3-1 for
the county, regardless of whether a local income tax is in effect in the
county and regardless of how the local income tax in effect in the
county is allocated. Except as provided in this chapter, the local income
tax council county adopting body shall use the same procedures that
apply to county adopting bodies under IC 6-3.6-3 when acting under
this chapter.
(c) Before adopting an exemption ordinance under this section, a
local income tax council county adopting body must conduct a public
hearing on the proposed exemption ordinance. The local income tax
council county adopting body must publish notice of the public
hearing in accordance with IC 5-3-1.
(d) The local income tax council county adopting body shall
provide a certified copy of an adopted exemption ordinance to the
department of local government finance and the county auditor.
SECTION 18. IC 6-1.1-10.3-7, AS AMENDED BY P.L.197-2016,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 7. A local income tax council county adopting
body specified in IC 6-3.6-3-1(a) may repeal or amend an exemption
ordinance. However, if a local income tax council county adopting
body repeals or amends an exemption ordinance, any new personal
property that was exempt under the exemption ordinance on the date
the new personal property was placed into service by a taxpayer
remains exempt from property taxation, regardless of whether or not
the ownership of the new personal property changes after the date the
exemption ordinance is amended or repealed.
SECTION 19. IC 6-1.1-12-0.7, AS AMENDED BY P.L.99-2007,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 0.7. Any individual who is sixty-five (65) years of
age, is blind, or has a disability (within the meaning of section 11 of
this chapter, before its expiration) may appoint an individual eighteen
(18) years of age or older to act on the individual's behalf for purposes
of filing property tax deduction statements for any deductions provided
by this chapter. If a statement is filed by an appointee, the appointee's
name, address, and telephone number must be included in the
statement.
SECTION 20. IC 6-1.1-12-9, AS AMENDED BY P.L.239-2023,
SEA 1 — Concur
20
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 9. (a) An individual may
obtain a deduction from the assessed value of the individual's real
property, or mobile home or manufactured home which is not assessed
as real property, if:
(1) the individual is at least sixty-five (65) years of age on or
before December 31 of the calendar year preceding the year in
which the deduction is claimed;
(2) for assessment dates before January 1, 2020, the combined
adjusted gross income (as defined in Section 62 of the Internal
Revenue Code) of:
(A) the individual and the individual's spouse; or
(B) the individual and all other individuals with whom:
(i) the individual shares ownership; or
(ii) the individual is purchasing the property under a
contract;
as joint tenants or tenants in common;
for the calendar year preceding the year in which the deduction is
claimed did not exceed twenty-five thousand dollars ($25,000);
(3) for assessment dates after December 31, 2019:
(A) the individual had, in the case of an individual who filed
a single return, adjusted gross income (as defined in Section
62 of the Internal Revenue Code) not exceeding thirty
thousand dollars ($30,000), and beginning for the January 1,
2023, assessment date, and each assessment date thereafter,
adjusted annually by an amount equal to the percentage cost
of living increase applied for Social Security benefits for the
immediately preceding calendar year;
(B) the individual had, in the case of an individual who filed
a joint income tax return with the individual's spouse,
combined adjusted gross income (as defined in Section 62 of
the Internal Revenue Code) not exceeding forty thousand
dollars ($40,000), and beginning for the January 1, 2023,
assessment date, and each assessment date thereafter, adjusted
annually by an amount equal to the percentage cost of living
increase applied for Social Security benefits for the
immediately preceding calendar year; or
(C) the combined adjusted gross income (as defined in Section
62 of the Internal Revenue Code) of the individual and all
other individuals with whom:
(i) the individual shares ownership; or
(ii) the individual is purchasing the property under a
SEA 1 — Concur
21
contract;
as joint tenants or tenants in common did not exceed forty
thousand dollars ($40,000), and beginning for the January 1,
2023, assessment date, and each assessment date thereafter,
adjusted annually by an amount equal to the percentage cost
of living increase applied for Social Security benefits for the
immediately preceding calendar year;
for the calendar year preceding by two (2) years the calendar year
in which the property taxes are first due and payable;
(4) the individual has owned the real property, mobile home, or
manufactured home for at least one (1) year before claiming the
deduction; or the individual has been buying the real property,
mobile home, or manufactured home under a contract that
provides that the individual is to pay the property taxes on the real
property, mobile home, or manufactured home for at least one (1)
year before claiming the deduction, and the contract or a
memorandum of the contract is recorded in the county recorder's
office;
(5) for assessment dates:
(A) before January 1, 2020, the individual and any individuals
covered by subdivision (2)(B) reside on the real property,
mobile home, or manufactured home; or
(B) after December 31, 2019, the individual and any
individuals covered by subdivision (3)(C) reside on the real
property, mobile home, or manufactured home;
(6) except as provided in subsection (i), the assessed value of the
real property, mobile home, or manufactured home does not
exceed two hundred forty thousand dollars ($240,000);
(7) the individual receives no other property tax deduction for the
year in which the deduction is claimed, except the deductions
provided by sections 37, (for assessment dates after February 28,
2008) 37.5, and 38 of this chapter; and
(8) the person:
(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 10.1 of this chapter
is filed.
For purposes of applying the annual cost of living increases described
in subdivision (3)(A) through (3)(C), the annual percentage increase is
applied to the adjusted amount of income from the immediately
SEA 1 — Concur
22
preceding year.
(b) Except as provided in subsection (h), in the case of real property,
an individual's deduction under this section equals the lesser of:
(1) one-half (1/2) of the assessed value of the real property; or
(2) fourteen thousand dollars ($14,000).
(c) Except as provided in subsection (h) and section 40.5 of this
chapter, in the case of a mobile home that is not assessed as real
property or a manufactured home which is not assessed as real
property, an individual's deduction under this section equals the lesser
of:
(1) one-half (1/2) of the assessed value of the mobile home or
manufactured home; or
(2) fourteen thousand dollars ($14,000).
(d) An individual may not be denied the deduction provided under
this section because the individual is absent from the real property,
mobile home, or manufactured home while in a nursing home or
hospital.
(e) For purposes of this section, if real property, a mobile home, or
a manufactured home is owned by:
(1) tenants by the entirety;
(2) joint tenants; or
(3) tenants in common;
only one (1) deduction may be allowed. However, the age requirement
is satisfied if any one (1) of the tenants is at least sixty-five (65) years
of age.
(f) A surviving spouse is entitled to the deduction provided by this
section if:
(1) the surviving spouse is at least sixty (60) years of age on or
before December 31 of the calendar year preceding the year in
which the deduction is claimed;
(2) the surviving spouse's deceased husband or wife was at least
sixty-five (65) years of age at the time of a death;
(3) the surviving spouse has not remarried; and
(4) the surviving spouse satisfies the requirements prescribed in
subsection (a)(2) through (a)(8).
(g) An individual who has sold real property to another person
under a contract that provides that the contract buyer is to pay the
property taxes on the real property may not claim the deduction
provided under this section against that real property.
(h) In the case of tenants covered by subsection (a)(2)(B) or
(a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
age, the deduction allowed under this section shall be reduced by an
SEA 1 — Concur
23
amount equal to the deduction multiplied by a fraction. The numerator
of the fraction is the number of tenants who are not at least sixty-five
(65) years of age, and the denominator is the total number of tenants.
(i) For purposes of determining the assessed value of the real
property, mobile home, or manufactured home under subsection (a)(6)
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.
(j) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(k) This section expires January 1, 2027.
SECTION 21. IC 6-1.1-12-10.1, AS AMENDED BY P.L.136-2024,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 10.1. (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 9 of this chapter must file a sworn statement, on forms
prescribed by the department of local government finance, with the
auditor of the county in which the real property, mobile home, or
manufactured home is located. To obtain the deduction for a desired
calendar year in which property taxes are first due and payable, the
statement must be completed, dated, and filed with the county auditor
on or before January 15 of the calendar year in which the property taxes
are first due and payable. The statement may be filed in person or by
mail. If mailed, the mailing must be postmarked on or before the last
day for filing.
(b) The statement referred to in subsection (a) shall be in affidavit
form or require verification under penalties of perjury. The statement
must be filed in duplicate if the applicant owns, or is buying under a
contract, real property, a mobile home, or a manufactured home subject
to assessment in more than one (1) county or in more than one (1)
taxing district in the same county. The statement shall contain:
(1) the source and exact amount of gross income received by the
individual and the individual's spouse during the preceding
calendar year;
SEA 1 — Concur
24
(2) the description and assessed value of the real property, mobile
home, or manufactured home;
(3) the individual's full name and complete residence address;
(4) the record number and page where the contract or
memorandum of the contract is recorded if the individual is
buying the real property, mobile home, or manufactured home on
contract; and
(5) any additional information which the department of local
government finance may require.
(c) In order to substantiate the deduction statement, the applicant
shall submit for inspection by the county auditor a copy of the
applicant's and a copy of the applicant's spouse's income tax returns
that were originally due in the calendar year immediately preceding the
desired calendar year in which the property taxes are first due and
payable and for which the applicant and the applicant's spouse desire
to claim the deduction. If either was not required to file an income tax
return, the applicant shall subscribe to that fact in the deduction
statement.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(e) This section expires January 1, 2027.
SECTION 22. IC 6-1.1-12-11, AS AMENDED BY P.L.148-2015,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a) Except as
provided in section 40.5 of this chapter, an individual may have the
sum of twelve thousand four hundred eighty dollars ($12,480) deducted
from the assessed value of real property, mobile home not assessed as
real property, or manufactured home not assessed as real property that
the individual owns, or 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 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;
(3) the individual's taxable gross income for the calendar year
preceding the year in which the deduction is claimed did not
exceed seventeen thousand dollars ($17,000); and
(4) the individual:
(A) owns the real property, mobile home, or manufactured
SEA 1 — Concur
25
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the statement required by section 12 of this chapter is
filed.
(b) For purposes of this section, taxable gross income does not
include income which is not taxed under the federal income tax laws.
(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
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 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.
(h) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(i) This section expires January 1, 2027.
SECTION 23. IC 6-1.1-12-12, AS AMENDED BY P.L.136-2024,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 12. (a) Except as
provided in section 17.8 of this chapter and subject to section 45 of this
chapter, a person who desires to claim the deduction provided in
section 11 of this chapter must file an application, on forms prescribed
by the department of local government finance, with the auditor of the
SEA 1 — Concur
26
county in which the real property, mobile home not assessed as real
property, or manufactured home not assessed as real property is
located. To obtain the deduction for a desired calendar year in which
property taxes are first due and payable, the application 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 application may be filed in person or by mail. If
mailed, the mailing must be postmarked on or before the last day for
filing.
(b) Proof of blindness may be supported by:
(1) the records of the division of family resources or the division
of disability and rehabilitative services; or
(2) the written statement of a physician who is licensed by this
state and skilled in the diseases of the eye or of a licensed
optometrist.
(c) The application required by this section must contain the record
number and page where the contract or memorandum of the contract
is recorded if the individual is buying the real property, mobile home,
or manufactured home on a contract that provides that the individual
is to pay property taxes on the real property, mobile home, or
manufactured home.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(e) This section expires January 1, 2027.
SECTION 24. IC 6-1.1-12-13, AS AMENDED BY
P.L.293-2013(ts), SECTION 1, 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:
SEA 1 — Concur
27
(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.
(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 25. IC 6-1.1-12-14, AS AMENDED BY P.L.136-2024,
SECTION 8, 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
SEA 1 — Concur
28
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
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
SEA 1 — Concur
29
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).
(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.
SEA 1 — Concur
30
(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 26. IC 6-1.1-12-14.5, AS ADDED BY P.L.100-2016,
SECTION 2, 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 IC 6-1.1-12-37.
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
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.
SEA 1 — Concur
31
(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 27. IC 6-1.1-12-15, AS AMENDED BY P.L.136-2024,
SECTION 9, 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
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
SEA 1 — Concur
32
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 28. IC 6-1.1-12-16, AS AMENDED BY P.L.1-2009,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 16. (a) Except as
provided in section 40.5 of this chapter, a surviving spouse may have
the sum of eighteen thousand seven hundred twenty dollars ($18,720)
deducted from the assessed value of his or her the surviving spouse's
tangible property, or real property, mobile home not assessed as real
property, or manufactured home not assessed as real property that the
surviving spouse is buying under a contract that provides that the
surviving spouse is to pay property taxes on the real property, mobile
home, or manufactured home, if the contract or a memorandum of the
contract is recorded in the county recorder's office, and if:
(1) the deceased spouse served in the military or naval forces of
the United States before November 12, 1918;
(2) the deceased spouse received an honorable discharge; and
(3) the surviving spouse:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the statement required by section 17 of this chapter is
filed.
(b) A surviving spouse who receives the deduction provided by this
section may not receive the deduction provided by section 13 of this
chapter. However, he or she the surviving spouse may receive any
other deduction which he or she the surviving spouse is entitled to by
law.
(c) An individual who has sold real property, a mobile home not
SEA 1 — Concur
33
assessed as real property, or a manufactured home not assessed as real
property to another person under a contract that provides that the
contract buyer is to pay the property taxes on the real property, mobile
home, or manufactured home may not claim the deduction provided
under this section against that real property, mobile home, or
manufactured home.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(e) This section expires January 1, 2027.
SECTION 29. IC 6-1.1-12-17, AS AMENDED BY P.L.136-2024,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 17. (a) Except as
provided in section 17.8 of this chapter and subject to section 45 of this
chapter, a surviving spouse who desires to claim the deduction
provided by section 16 of this chapter must file a statement with the
auditor of the county in which the surviving spouse resides. To obtain
the deduction for a desired calendar year in which property taxes are
first due and payable, the statement must be completed, dated, and filed
with the county auditor on or before January 15 of the calendar year in
which the property taxes are first due and payable. The statement may
be filed in person or by mail. If mailed, the mailing must be postmarked
on or before the last day for filing. The statement shall contain:
(1) a sworn statement that the surviving spouse is entitled to the
deduction; and
(2) the record number and page where the contract or
memorandum of the contract is recorded, if the individual is
buying the real property on a contract that provides that the
individual is to pay property taxes on the real property.
In addition to the statement, the surviving spouse shall submit to the
county auditor for the auditor's inspection a letter or certificate from the
United States Department of Veterans Affairs establishing the service
of the deceased spouse in the military or naval forces of the United
States before November 12, 1918.
(b) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(c) This section expires January 1, 2027.
SECTION 30. IC 6-1.1-12-17.8, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2025 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 17.8. (a) An individual
who receives a deduction provided under section 9 (before its
expiration), 11 (before its expiration), 13 (before its expiration), 14
SEA 1 — Concur
34
(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
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
SEA 1 — Concur
35
jointly held with another owner in a particular year and remains eligible
for the deduction in the following year is not required to file a
statement to reapply for the deduction following the removal of the
joint owner if:
(1) the individual is the sole owner of the property following the
death of the individual's spouse; or
(2) the individual is the sole owner of the property following the
death of a joint owner who was not the individual's spouse.
If a county auditor terminates a deduction under section 9 of this
chapter (before its expiration), a deduction under section 37 of this
chapter, or a credit under IC 6-1.1-20.6-8.5 after June 30, 2017, and
before May 1, 2019, because the taxpayer claiming the deduction or
credit did not comply with a requirement added to this subsection by
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
SEA 1 — Concur
36
discretion, terminate the deduction for assessment dates after January
15, 2012, if the individual does not comply with the requirement in
IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as determined by the
county auditor, before January 1, 2013. Before the county auditor
terminates a deduction because the taxpayer claiming the deduction did
not comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired
January 1, 2015) before January 1, 2013, the county auditor shall mail
notice of the proposed termination of the deduction to:
(1) the last known address of each person liable for any property
taxes or special assessment, as shown on the tax duplicate or
special assessment records; or
(2) the last known address of the most recent owner shown in the
transfer book.
(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
SEA 1 — Concur
37
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(q) 37(r) of this chapter is not
required to file a statement to apply for the deduction provided by
section 37 of this chapter if the property owned by the taxpayer remains
eligible for the deduction for that calendar year.
SECTION 31. IC 6-1.1-12-17.9, AS AMENDED BY P.L.190-2016,
SECTION 1, 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 32. IC 6-1.1-12-18, AS AMENDED BY P.L.181-2016,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 18. (a) This section
applies only to:
(1) rehabilitation of residential real property that occurs before
January 2, 2017; and
(2) property taxes imposed for an assessment date before
January 1, 2025.
(b) If the assessed value of residential real property described in
subsection (e) is increased because it has been rehabilitated, the owner
may have deducted from the assessed value of the property an amount
not to exceed the lesser of:
(1) the total increase in assessed value resulting from the
rehabilitation (excluding an increase in assessed value that occurs
after January 1, 2017); or
SEA 1 — Concur
38
(2) eighteen thousand seven hundred twenty dollars ($18,720) per
rehabilitated dwelling unit.
The owner is entitled to this deduction annually for a five (5) year
period, or if subsection (f) applies, the period established under
subsection (f).
(c) For purposes of this section, the term "rehabilitation" means
significant repairs, replacements, or improvements to an existing
structure which are intended to increase the livability, utility, safety, or
value of the property under rules adopted by the department of local
government finance.
(d) For the purposes of this section, the term "owner" or "property
owner" includes any person who has the legal obligation, or has
otherwise assumed the obligation, to pay the real property taxes on the
rehabilitated property.
(e) The deduction provided by this section applies only:
(1) for the rehabilitation of residential real property which is
located within this state and which is described in one (1) of the
following classifications:
(A) A single family dwelling if before rehabilitation the
assessed value (excluding any exemptions or deductions) of
the improvements does not exceed thirty-seven thousand four
hundred forty dollars ($37,440).
(B) A two (2) family dwelling if before rehabilitation the
assessed value (excluding exemptions or deductions) of the
improvements does not exceed forty-nine thousand nine
hundred twenty dollars ($49,920).
(C) A dwelling with more than two (2) family units if before
rehabilitation the assessed value (excluding any exemptions or
deductions) of the improvements does not exceed eighteen
thousand seven hundred twenty dollars ($18,720) per dwelling
unit; and
(2) if the property owner:
(A) owns the residential real property; or
(B) is buying the residential real property under contract;
on the assessment date of the year in which an application must
be filed under section 20 of this chapter.
(f) A county, city, or town fiscal body may adopt an ordinance to
establish a deduction period that is longer than five (5) years but not to
exceed fifteen (15) years for any rehabilitated property covered by this
section that has also been determined to be abandoned or vacant for
purposes of IC 6-1.1-24.
(g) This section expires January 1, 2033. 2027.
SEA 1 — Concur
39
SECTION 33. IC 6-1.1-12-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
Sec. 21. When real property is reassessed because it has been
rehabilitated, the assessing official who, or the county property tax
assessment board of appeals which, makes the reassessment shall give
the owner notice of the property tax deductions provided by sections 18
and 22 of this chapter (before their expiration). The official or county
property tax assessment board of appeals shall attach the notice to the
reassessment notice required by IC 6-1.1-4-22.
SECTION 34. IC 6-1.1-12-26, AS AMENDED BY P.L.113-2010,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 26. (a) The owner of real
property, or a mobile home which is not assessed as real property,
which is equipped with a solar energy heating or cooling system may
have deducted annually from the assessed value of the real property or
mobile home an amount which is equal to the out-of-pocket
expenditures by the owner (or a previous owner) of the real property or
mobile home for:
(1) the components; and
(2) the labor involved in installing the components;
that are unique to the system and that are needed to collect, store, or
distribute solar energy.
(b) The tangible property to which subsection (a) applies includes
a solar thermal air system and any solar energy heating or cooling
system used for:
(1) domestic hot water or space heat, or both, including pool
heating; or
(2) preheating for an industrial process.
(c) Subsection (a) does not apply to tangible property that would not
be subject to assessment and taxation under this article if this section
did not apply.
(d) For purposes of subsection (a), proof of out-of-pocket
expenditures may be demonstrated by invoices or other evidence of a
purchase and installation, as determined under rules or guidelines
prescribed by the department of local government finance.
(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 6-1.1-12-26.1, AS ADDED BY P.L.137-2012,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 26.1. (a) This section
applies only to a solar power device that is installed after December 31,
SEA 1 — Concur
40
2011.
(b) This section does not apply to a solar power device that is owned
or operated by a person that provides electricity at wholesale or retail
for consideration other than a person that:
(1) participates in a net metering or feed-in-tariff program offered
by an electric utility with respect to the solar power device; or
(2) is the owner or host of the solar power device site and a person
consumes on the site the equivalent amount of electricity that is
generated by the solar power device on an annual basis even if the
electricity is sold to a public utility, including a solar power
device directly serving a public utility's business operations site.
(c) For purposes of this section, "solar power device" means a
device, such as a solar thermal, a photovoltaic, or other solar energy
system, that is designed to use the radiant light or heat from the sun to
produce electricity.
(d) The owner of real property equipped with a solar power device
that is assessed as a real property improvement may have deducted
annually from the assessed value of the real property an amount equal
to:
(1) the assessed value of the real property with the solar power
device included; minus
(2) the assessed value of the real property without the solar power
device.
(e) The owner of a solar power device that is assessed as:
(1) distributable property under IC 6-1.1-8; or
(2) personal property;
may have deducted annually the assessed value of the solar power
device.
(f) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(g) This section expires January 1, 2027.
SECTION 36. IC 6-1.1-12-27.1, AS AMENDED BY P.L.136-2024,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 27.1. (a) Except as
provided in sections 36 and 44 of this chapter and subject to section 45
of this chapter, a person who desires to claim the deduction provided
by section 26 or 26.1 of this chapter must file a certified statement in
duplicate, on forms prescribed by the department of local government
finance, with the auditor of the county in which the real property,
mobile home, manufactured home, or solar power device is subject to
assessment. To obtain the deduction for a desired calendar year in
which property taxes are first due and payable, the person must
SEA 1 — Concur
41
complete, date, and file the certified statement with the county auditor
on or before January 15 of the calendar year in which the property taxes
are first due and payable. The person must:
(1) own the real property, mobile home, or manufactured home or
own the solar power device;
(2) be buying the real property, mobile home, manufactured
home, or solar power device under contract; or
(3) be leasing the real property from the real property owner and
be subject to assessment and property taxation with respect to the
solar power device;
on the date the statement is filed under this section. 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. On verification of the statement by
the assessor of the township in which the real property, mobile home,
manufactured home, or solar power device is subject to assessment, or
the county assessor if there is no township assessor for the township,
the county auditor shall allow 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 6-1.1-12-28.5, AS AMENDED BY P.L.146-2008,
SECTION 112, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 28.5. (a)
For purposes of this section:
(1) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a) and includes a waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(2) "Resource recovery system" means tangible property directly
used to dispose of solid waste or hazardous waste by converting
it into energy or other useful products.
(3) "Solid waste" has the meaning set forth in IC 13-11-2-205(a)
but does not include dead animals or any animal solid or
semisolid wastes.
(b) Except as provided in this section, the owner of a resource
recovery system is entitled to an annual deduction in an amount equal
to ninety-five percent (95%) of the assessed value of the system if:
(1) the system was certified by the department of environmental
management for the 1993 assessment year or a prior assessment
year; and
(2) the owner filed a timely application for the deduction for the
1993 assessment year.
For purposes of this section, a system includes tangible property that
SEA 1 — Concur
42
replaced tangible property in the system after the certification by the
department of environmental management.
(c) The owner of a resource recovery system that is directly used to
dispose of hazardous waste is not entitled to the deduction provided by
this section for a particular assessment year if during that assessment
year the owner:
(1) is convicted of any violation under IC 13-7-13-3 (repealed),
IC 13-7-13-4 (repealed), or a criminal statute under IC 13; or
(2) is subject to an order or a consent decree with respect to
property located in Indiana based upon a violation of a federal or
state rule, regulation, or statute governing the treatment, storage,
or disposal of hazardous wastes that had a major or moderate
potential for harm.
(d) The certification of a resource recovery system by the
department of environmental management for the 1993 assessment
year or a prior assessment year is valid through the 1997 assessment
year so long as the property is used as a resource recovery system. If
the property is no longer used for the purpose for which the property
was used when the property was certified, the owner of the property
shall notify the county auditor. However, the deduction from the
assessed value of the system is:
(1) ninety-five percent (95%) for the 1994 assessment year;
(2) ninety percent (90%) for the 1995 assessment year;
(3) seventy-five percent (75%) for the 1996 assessment year; and
(4) sixty percent (60%) for the 1997 assessment year.
Notwithstanding this section as it existed before 1995, for the 1994
assessment year, the portion of any tangible property comprising a
resource recovery system that was assessed and first deducted for the
1994 assessment year may not be deducted for property taxes first due
and payable in 1995 or later.
(e) In order to qualify for a deduction under this section, the person
who desires to claim the deduction must file an application with the
county auditor after February 28 and before May 16 of the current
assessment year. An application must be filed in each year for which
the person desires to obtain the deduction. The application may be filed
in person or by mail. If mailed, the mailing must be postmarked on or
before the last day for filing. If the application is not filed before the
applicable deadline under this subsection, the deduction is waived. The
application must be filed on a form prescribed by the department of
local government finance. The application for a resource recovery
system deduction must include:
(1) a certification by the department of environmental
SEA 1 — Concur
43
management for the 1993 assessment year or a prior assessment
year as described in subsection (d); or
(2) the certification by the department of environmental
management for the 1993 assessment year as described in
subsection (g).
Beginning with the 1995 assessment year a person must also file an
itemized list of all property on which a deduction is claimed. The list
must include the date of purchase of the property and the cost to
acquire the property.
(f) Before July 1, 1995, the department of environmental
management shall transfer all the applications, records, or other
material the department has with respect to resource recovery system
deductions under this section for the 1993 and 1994 assessment years.
The township assessor, or the county assessor if there is no township
assessor for the township, shall verify each deduction application filed
under this section and the county auditor shall determine the deduction.
The county auditor shall send to the department of local government
finance a copy of each deduction application. The county auditor shall
notify the county property tax assessment board of appeals of all
deductions allowed under this section. A denial of a deduction claimed
under this subsection may be appealed as provided in IC 6-1.1-15. The
appeal is limited to a review of a determination made by the township
assessor, the county assessor, or the county auditor.
(g) Notwithstanding subsection (d), the certification for the 1993
assessment year of a resource recovery system in regard to which a
political subdivision is liable for the payment of the property taxes
remains valid at the ninety-five percent (95%) deduction level allowed
before 1994 as long as the political subdivision remains liable for the
payment of the property taxes on the system.
(h) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(i) This section expires January 1, 2027.
SECTION 38. IC 6-1.1-12-29, AS AMENDED BY P.L.46-2011,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 29. (a) This section does
not apply to a wind power device that is owned or operated by:
(1) a public utility (as defined in IC 8-1-2-1(a)); or
(2) another entity that provides electricity at wholesale or retail
for consideration, other than a person who participates in a net
metering program offered by an electric utility.
This subsection shall be interpreted to clarify and not to change the
general assembly's intent with respect to this section.
SEA 1 — Concur
44
(b) For purposes of this section, "wind power device" means a
device, such as a windmill or a wind turbine, that is designed to utilize
the kinetic energy of moving air to provide mechanical energy or to
produce electricity.
(c) The owner of real property, or a mobile home that is not assessed
as real property, that is equipped with a wind power device is entitled
to an annual property tax deduction. The amount of the deduction
equals the remainder of (1) the assessed value of the real property or
mobile home with the wind power device included, minus (2) the
assessed value of the real property or mobile home without the wind
power device.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(e) This section expires January 1, 2027.
SECTION 39. IC 6-1.1-12-30, AS AMENDED BY P.L.136-2024,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 30. (a) Except as
provided in sections 36 and 44 of this chapter and subject to section 45
of this chapter, a person who desires to claim the deduction provided
by section 29 of this chapter must file a certified statement in duplicate,
on forms prescribed by the department of local government finance,
with the auditor of the county in which the real property or mobile
home is subject to assessment. To obtain the deduction for a desired
calendar year in which property taxes are first due and payable, the
person must complete, date, and file the statement with the county
auditor on or before January 15 of the calendar year in which the
property taxes are first due and payable. The person must:
(1) own the real property, mobile home, or manufactured home;
or
(2) be buying the real property, mobile home, or manufactured
home under contract;
on the date the statement is filed under this section. On verification of
the statement by the assessor of the township in which the real property
or mobile home is subject to assessment, or the county assessor if there
is no township assessor for the township, the county auditor shall allow
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 40. IC 6-1.1-12-33, AS AMENDED BY P.L.144-2008,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 33. (a) For purposes of
SEA 1 — Concur
45
this section "hydroelectric power device" means a device which is
installed after December 31, 1981, and is designed to utilize the kinetic
power of moving water to provide mechanical energy or to produce
electricity.
(b) The owner of real property, or a mobile home that is not assessed
as real property, that is equipped with a hydroelectric power device is
annually entitled to a property tax deduction. The amount of the
deduction equals the remainder of:
(1) the assessed value of the real property or mobile home with
the hydroelectric power device; minus
(2) the assessed value of the real property or mobile home without
the hydroelectric power device.
(c) The deduction provided by this section applies only if the
property owner:
(1) owns the real property or mobile home; or
(2) is buying the real property or mobile home under contract;
on the date the statement is filed under section 35.5 of this chapter.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(e) This section expires January 1, 2027.
SECTION 41. IC 6-1.1-12-34, AS AMENDED BY P.L.144-2008,
SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 34. (a) For purposes of
this section, "geothermal energy heating or cooling device" means a
device that is installed after December 31, 1981, and is designed to
utilize the natural heat from the earth to provide hot water, produce
electricity, or generate heating or cooling.
(b) The owner of real property, or a mobile home that is not assessed
as real property, that is equipped with a geothermal energy heating or
cooling device is annually entitled to a property tax deduction. The
amount of the deduction equals the remainder of: (1) the assessed value
of the real property or mobile home with the geothermal heating or
cooling device; minus (2) the assessed value of the real property or
mobile home without the geothermal heating or cooling device.
(c) The deduction provided by this section applies only if the
property owner:
(1) owns the real property or mobile home; or
(2) is buying the real property or mobile home under contract;
on the date the statement is filed under section 35.5 of this chapter.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(e) This section expires January 1, 2027.
SEA 1 — Concur
46
SECTION 42. IC 6-1.1-12-35.5, AS AMENDED BY P.L.136-2024,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 35.5. (a) Except as
provided in section 36 or 44 of this chapter and subject to section 45 of
this chapter, a person who desires to claim the deduction provided by
section 33 (before its expiration) or 34 (before its expiration) of this
chapter must file a certified statement in duplicate, on forms prescribed
by the department of local government finance and proof of
certification under subsection (b) with the auditor of the county in
which the property for which the deduction is claimed is subject to
assessment. To obtain the deduction for a desired calendar year in
which property taxes are first due and payable, the person must
complete, date, and file the certified statement with the county auditor
on or before January 15 of the calendar year in which the property taxes
are first due and payable. The statement may be filed in person or by
mail. If mailed, the mailing must be postmarked on or before the last
day for filing. On verification of the statement by the assessor of the
township in which the property for which the deduction is claimed is
subject to assessment, or the county assessor if there is no township
assessor for the township, the county auditor shall allow the deduction.
(b) The department of environmental management, upon application
by a property owner, shall determine whether a system or device
qualifies for a deduction provided by section 33 (before its expiration)
or 34 (before its expiration) of this chapter. If the department
determines that a system or device qualifies for a deduction, it shall
certify the system or device and provide proof of the certification to the
property owner. The department shall prescribe the form and manner
of the certification process required by this subsection.
(c) If the department of environmental management receives an
application for certification, the department shall determine whether
the system or device qualifies for a deduction. If the department fails
to make a determination under this subsection before December 31 of
the year in which the application is received, the system or device is
considered certified.
(d) A denial of a deduction claimed under section 33 (before its
expiration) or 34 (before its expiration) of this chapter may be
appealed as provided in IC 6-1.1-15. The appeal is limited to a review
of a determination made by the township assessor county property tax
assessment board of appeals, or department of local government
finance.
(e) Notwithstanding any other law, if there is a change in ownership
of real property, or a mobile home that is not assessed as real property:
SEA 1 — Concur
47
(1) that is equipped with a geothermal energy heating or cooling
device; and
(2) whose previous owner received a property tax deduction under
section 34 of this chapter (before its expiration) for the
geothermal energy heating or cooling device prior to the change
in ownership;
the new owner shall be eligible for the property tax deduction following
the change in ownership and, in subsequent taxable years, shall not be
required to obtain a determination of qualification from the department
of environmental management under subsection (b) and shall not be
required to file a certified statement of qualification with the county
auditor under subsection (a) to remain eligible for the property tax
deduction.
(f) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(g) This section expires January 1, 2027.
SECTION 43. IC 6-1.1-12-36, AS AMENDED BY P.L.214-2019,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 36. (a) A person who
receives a deduction provided under section 26 (before its expiration),
29 (before its expiration), 33 (before its expiration), 34 (before its
expiration), or 38 (before its expiration) of this chapter for a
particular year and who remains eligible for the deduction for the
following year is not required to file a statement to apply for the
deduction for the following year.
(b) A person who receives a deduction provided under section 26
(before its expiration), 29 (before its expiration), 33 (before its
expiration), 34 (before its expiration), or 38 (before its expiration)
of this chapter for a particular year and who becomes ineligible for the
deduction for the following year shall notify the auditor of the county
in which the real property or mobile home for which the person
received the deduction is located of the person's ineligibility before
March 31 of the year for which the person becomes ineligible.
(c) The auditor of each county shall, in a particular year, apply a
deduction provided under section 26 (before its expiration), 29
(before its expiration), 33 (before its expiration), 34 (before its
expiration), or 38 (before its expiration) of this chapter to each
person who received the deduction in the preceding year unless the
auditor determines that the person is no longer eligible for the
deduction.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
SEA 1 — Concur
48
(e) This section expires January 1, 2027.
SECTION 44. IC 6-1.1-12-37, AS AMENDED BY P.L.156-2024,
SECTION 11, AND AS AMENDED BY P.L.136-2024, SECTION 14,
AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
2025 (RETROACTIVE)]: Sec. 37. (a) The following definitions apply
throughout this section:
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual
uses as the individual's residence, limited to a single house and
a single garage, regardless of whether the single garage is
attached to the single house or detached from the single house.
(B) A mobile home that is not assessed as real property that an
individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property
that an individual uses as the individual's residence.
(2) "Homestead" means an individual's principal place of
residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a contract recorded in the
county recorder's office, or evidenced by a memorandum of
contract recorded in the county recorder's office under
IC 36-2-11-20, that provides that the individual is to pay the
property taxes on the residence, and that obligates the owner
to convey title to the individual upon completion of all of the
individual's contract obligations;
(iii) the individual is entitled to occupy as a
tenant-stockholder (as defined in 26 U.S.C. 216) of a
cooperative housing corporation (as defined in 26 U.S.C.
216); or
(iv) is a residence described in section 17.9 of this chapter
(before its expiration) that is owned by a trust if the
individual is an individual described in section 17.9 of this
chapter (before its expiration); and
(C) that consists of a dwelling and includes up to one (1) acre
of land immediately surrounding that dwelling, and any of the
following improvements:
(i) Any number of decks, patios, gazebos, or pools.
(ii) One (1) additional building that is not part of the
SEA 1 — Concur
49
dwelling if the building is predominantly used for a
residential purpose and is not used as an investment property
or as a rental property.
(iii) One (1) additional residential yard structure other than
a deck, patio, gazebo, or pool.
Except as provided in subsection (q), (r), the term does not
include property owned by a corporation, partnership, limited
liability company, or other entity not described in this
subdivision.
(b) Each year a homestead is eligible for a standard deduction from
the assessed value of the homestead for an assessment date. Except as
provided in subsection (m), (n), the deduction provided by this section
applies to property taxes first due and payable for an assessment date
only if an individual has an interest in the homestead described in
subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
If more than one (1) individual or entity qualifies property as a
homestead under subsection (a)(2)(B) for an assessment date, only one
(1) standard deduction from the assessed value of the homestead may
be applied for the assessment date. Subject to subsection (c), the
auditor of the county shall record and make the deduction for the
individual or entity qualifying for the deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is: the lesser of:
(1) for assessment dates before January 1, 2025, the lesser of:
(A) sixty percent (60%) of the assessed value of the real
property, mobile home not assessed as real property, or
manufactured home not assessed as real property; or
(B) forty-eight thousand dollars ($48,000); or
(2) for assessment dates:
(A) before January 1, 2023, forty-five thousand dollars
($45,000); or
(B) after December 31, 2022, forty-eight thousand dollars
($48,000).
(2) for assessment dates after December 31, 2024:
(A) in 2025, forty-eight thousand dollars ($48,000);
(B) in 2026, forty thousand dollars ($40,000);
(C) in 2027, thirty thousand dollars ($30,000);
SEA 1 — Concur
50
(D) in 2028, twenty thousand dollars ($20,000); and
(E) in 2029, ten thousand dollars ($10,000).
Beginning with the 2030 assessment date, and each assessment date
thereafter, the deduction amount under this section is zero (0).
Application of the phase down under this section for assessment
dates after December 31, 2024, with regard to mobile homes that
are not assessed as real property and manufactured homes not
assessed as real property shall be construed and applied in the
same manner in terms of timing and consistent with its application
for real property.
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement on
forms prescribed by the department of local government finance with
the auditor of the county in which the homestead is located. The
statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead
under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
SEA 1 — Concur
51
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is not an individual; and
(4) either:
(A) the last five (5) digits of the applicant's Social Security
number and the last five (5) digits of the Social Security
number of the applicant's spouse (if any); or
(B) if the applicant or the applicant's spouse (if any) does not
have a Social Security number, any of the following for that
individual:
(i) The last five (5) digits of the individual's driver's license
number.
(ii) The last five (5) digits of the individual's state
identification card number.
(iii) The last five (5) digits of a preparer tax identification
number that is obtained by the individual through the
Internal Revenue Service of the United States.
(iv) If the individual does not have a driver's license, a state
identification card, or an Internal Revenue Service preparer
tax identification number, the last five (5) digits of a control
number that is on a document issued to the individual by the
United States government.
If a form or statement provided to the county auditor under this section,
IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
part or all of the Social Security number of a party or other number
described in subdivision (4)(B) of a party, the telephone number and
the Social Security number or other number described in subdivision
(4)(B) included are confidential. The statement may be filed in person
or by mail. If the statement is mailed, the mailing must be postmarked
on or before the last day for filing. The statement applies for that first
year and any succeeding year for which the deduction is allowed. To
obtain the deduction for a desired calendar year in which property
taxes are first due and payable, the statement must be completed and
dated in the immediately preceding calendar year and filed with the
county auditor on or before January 5 of the calendar year in which
the property taxes are first due and payable.
(f) To obtain the deduction for a desired calendar year under this
section in which property taxes are first due and payable, the
individual desiring to claim the deduction must do the following as
applicable:
(1) Complete, date, and file the certified statement described in
SEA 1 — Concur
52
subsection (e) on or before January 15 of the calendar year in
which the property taxes are first due and payable.
(2) Satisfy any recording requirements on or before January 15
of the calendar year in which the property taxes are first due and
payable for a homestead described in subsection (a)(2).
(f) (g) Except as provided in subsection (k), (l), if a person who is
receiving, or seeks to receive, the deduction provided by this section in
the person's name:
(1) changes the use of the individual's property so that part or all
of the property no longer qualifies for the deduction under this
section; or
(2) is not eligible for a deduction under this section because the
person is already receiving:
(A) a deduction under this section in the person's name as an
individual or a spouse; or
(B) a deduction under the law of another state that is
equivalent to the deduction provided by this section;
the person must file a certified statement with the auditor of the county,
notifying the auditor of the person's ineligibility, not more than sixty
(60) days after the date of the change in eligibility. A person who fails
to file the statement required by this subsection may, under
IC 6-1.1-36-17, be liable for any additional taxes that would have been
due on the property if the person had filed the statement as required by
this subsection plus a civil penalty equal to ten percent (10%) of the
additional taxes due. The civil penalty imposed under this subsection
is in addition to any interest and penalties for a delinquent payment that
might otherwise be due. One percent (1%) of the total civil penalty
collected under this subsection shall be transferred by the county to the
department of local government finance for use by the department in
establishing and maintaining the homestead property data base under
subsection (i) (j) and, to the extent there is money remaining, for any
other purposes of the department. This amount becomes part of the
property tax liability for purposes of this article.
(g) (h) The department of local government finance may adopt rules
or guidelines concerning the application for a deduction under this
section.
(h) (i) This subsection does not apply to property in the first year for
which a deduction is claimed under this section if the sole reason that
a deduction is claimed on other property is that the individual or
married couple maintained a principal residence at the other property
on the assessment date in the same year in which an application for a
deduction is filed under this section or, if the application is for a
SEA 1 — Concur
53
homestead that is assessed as personal property, on the assessment date
in the immediately preceding year and the individual or married couple
is moving the individual's or married couple's principal residence to the
property that is the subject of the application. Except as provided in
subsection (k), (l), the county auditor may not grant an individual or a
married couple a deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(i) (j) The department of local government finance shall provide
secure access to county auditors to a homestead property data base that
includes access to the homestead owner's name and the numbers
required from the homestead owner under subsection (e)(4) for the sole
purpose of verifying whether an owner is wrongly claiming a deduction
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.6-5 (after December 31, 2016). (before its expiration). Each
county auditor shall submit data on deductions applicable to the current
tax year on or before March 15 of each year in a manner prescribed by
the department of local government finance.
(j) (k) A county auditor may require an individual to provide
evidence proving that the individual's residence is the individual's
principal place of residence as claimed in the certified statement filed
under subsection (e). The county auditor may limit the evidence that an
individual is required to submit to a state income tax return, a valid
driver's license, or a valid voter registration card showing that the
residence for which the deduction is claimed is the individual's
principal place of residence. The county auditor may not deny an
application filed under section 44 of this chapter because the applicant
does not have a valid driver's license or state identification card with
the address of the homestead property. The department of local
government finance shall work with county auditors to develop
procedures to determine whether a property owner that is claiming a
standard deduction or homestead credit is not eligible for the standard
deduction or homestead credit because the property owner's principal
place of residence is outside Indiana.
(k) (l) A county auditor shall grant an individual a deduction under
this section regardless of whether the individual and the individual's
spouse claim a deduction on two (2) different applications and each
application claims a deduction for different property if the property
owned by the individual's spouse is located outside Indiana and the
individual files an affidavit with the county auditor containing the
SEA 1 — Concur
54
following information:
(1) The names of the county and state in which the individual's
spouse claims a deduction substantially similar to the deduction
allowed by this section.
(2) A statement made under penalty of perjury that the following
are true:
(A) That the individual and the individual's spouse maintain
separate principal places of residence.
(B) That neither the individual nor the individual's spouse has
an ownership interest in the other's principal place of
residence.
(C) That neither the individual nor the individual's spouse has,
for that same year, claimed a standard or substantially similar
deduction for any property other than the property maintained
as a principal place of residence by the respective individuals.
A county auditor may require an individual or an individual's spouse to
provide evidence of the accuracy of the information contained in an
affidavit submitted under this subsection. The evidence required of the
individual or the individual's spouse may include state income tax
returns, excise tax payment information, property tax payment
information, driver driver's license information, and voter registration
information.
(l) (m) If:
(1) a property owner files a statement under subsection (e) to
claim the deduction provided by this section for a particular
property; and
(2) the county auditor receiving the filed statement determines
that the property owner's property is not eligible for the deduction;
the county auditor shall inform the property owner of the county
auditor's determination in writing. If a property owner's property is not
eligible for the deduction because the county auditor has determined
that the property is not the property owner's principal place of
residence, the property owner may appeal the county auditor's
determination as provided in IC 6-1.1-15. The county auditor shall
inform the property owner of the owner's right to appeal when the
county auditor informs the property owner of the county auditor's
determination under this subsection.
(m) (n) An individual is entitled to the deduction under this section
for a homestead for a particular assessment date if:
(1) either:
(A) the individual's interest in the homestead as described in
subsection (a)(2)(B) is conveyed to the individual after the
SEA 1 — Concur
55
assessment date, but within the calendar year in which the
assessment date occurs; or
(B) the individual contracts to purchase the homestead after
the assessment date, but within the calendar year in which the
assessment date occurs;
(2) on the assessment date:
(A) the property on which the homestead is currently located
was vacant land; or
(B) the construction of the dwelling that constitutes the
homestead was not completed; and
(3) either:
(A) the individual files the certified statement required by
subsection (e); or
(B) a sales disclosure form that meets the requirements of
section 44 of this chapter is submitted to the county assessor
on or before December 31 of the calendar year for the
individual's purchase of the homestead.
An individual who satisfies the requirements of subdivisions (1)
through (3) is entitled to the deduction under this section for the
homestead for the assessment date, even if on the assessment date the
property on which the homestead is currently located was vacant land
or the construction of the dwelling that constitutes the homestead was
not completed. The county auditor shall apply the deduction for the
assessment date and for the assessment date in any later year in which
the homestead remains eligible for the deduction. A homestead that
qualifies for the deduction under this section as provided in this
subsection is considered a homestead for purposes of section 37.5 of
this chapter and IC 6-1.1-20.6.
(n) (o) This subsection applies to an application for the deduction
provided by this section that is filed for an assessment date occurring
after December 31, 2013. Notwithstanding any other provision of this
section, an individual buying a mobile home that is not assessed as real
property or a manufactured home that is not assessed as real property
under a contract providing that the individual is to pay the property
taxes on the mobile home or manufactured home is not entitled to the
deduction provided by this section unless the parties to the contract
comply with IC 9-17-6-17.
(o) (p) This subsection:
(1) applies to an application for the deduction provided by this
section that is filed for an assessment date occurring after
December 31, 2013; and
(2) does not apply to an individual described in subsection (n).
SEA 1 — Concur
56
(o).
The owner of a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property must attach a
copy of the owner's title to the mobile home or manufactured home to
the application for the deduction provided by this section.
(p) (q) For assessment dates after 2013, the term "homestead"
includes property that is owned by an individual who:
(1) is serving on active duty in any branch of the armed forces of
the United States;
(2) was ordered to transfer to a location outside Indiana; and
(3) was otherwise eligible, without regard to this subsection, for
the deduction under this section for the property for the
assessment date immediately preceding the transfer date specified
in the order described in subdivision (2).
For property to qualify under this subsection for the deduction provided
by this section, the individual described in subdivisions (1) through (3)
must submit to the county auditor a copy of the individual's transfer
orders or other information sufficient to show that the individual was
ordered to transfer to a location outside Indiana. The property continues
to qualify for the deduction provided by this section until the individual
ceases to be on active duty, the property is sold, or the individual's
ownership interest is otherwise terminated, whichever occurs first.
Notwithstanding subsection (a)(2), the property remains a homestead
regardless of whether the property continues to be the individual's
principal place of residence after the individual transfers to a location
outside Indiana. The property continues to qualify as a homestead
under this subsection if the property is leased while the individual is
away from Indiana and is serving on active duty, if the individual has
lived at the property at any time during the past ten (10) years.
Otherwise, the property ceases to qualify as a homestead under this
subsection if the property is leased while the individual is away from
Indiana. Property that qualifies as a homestead under this subsection
shall also be construed as a homestead for purposes of section 37.5 of
this chapter.
(q) (r) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a dwelling
and includes up to one (1) acre of land immediately surrounding
that dwelling, and any of the following improvements:
(A) Any number of decks, patios, gazebos, or pools.
(B) One (1) additional building that is not part of the dwelling
if the building is predominately used for a residential purpose
SEA 1 — Concur
57
and is not used as an investment property or as a rental
property.
(C) One (1) additional residential yard structure other than a
deck, patio, gazebo, or pool.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction under
this section on March 1, 2009.
SECTION 45. IC 6-1.1-12-37.5, AS AMENDED BY P.L.239-2023,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 37.5. (a) A person who
is entitled to a standard deduction from the assessed value of property
under section 37 of this chapter is also entitled to receive a
supplemental deduction from the assessed value of the homestead to
which the standard deduction applies after the application of the
standard deduction but before the application of any other deduction,
exemption, or credit for which the person is eligible.
(b) This subsection applies to taxes first due and payable before
January 1, 2026. The amount of the deduction under this section is
equal to the sum of the following:
(1) For property taxes first due and payable:
(A) before January 1, 2024, thirty-five percent (35%);
(B) in 2024, forty percent (40%); and
(C) in 2025, thirty-seven and five-tenths percent (37.5%); and
(D) after December 31, 2025, thirty-five percent (35%);
of the assessed value determined under subsection (a) that is not
more than six hundred thousand dollars ($600,000).
(2) For property taxes first due and payable:
(A) before January 1, 2024, twenty-five percent (25%);
(B) in 2024, thirty percent (30%); and
(C) in 2025, twenty-seven and five-tenths percent (27.5%);
and
(D) after December 31, 2025, twenty-five percent (25%);
of the assessed value determined under subsection (a) that is more
than six hundred thousand dollars ($600,000).
(c) This subsection applies to taxes first due and payable after
December 31, 2025. The amount of the deduction under this section
is equal to:
SEA 1 — Concur
58
(1) the assessed value of property reduced by the deduction
amount under section 37 of this chapter for the property for
the particular tax year; multiplied by
(2) the following:
(A) Forty percent (40%) for taxes first due and payable in
2026.
(B) Forty-six percent (46%) for taxes first due and payable
in 2027.
(C) Fifty-two percent (52%) for taxes first due and payable
in 2028.
(D) Fifty-seven percent (57%) for taxes first due and
payable in 2029.
(E) Sixty-two percent (62%) for taxes first due and payable
in 2030.
(F) Sixty-six and seven-tenths percent (66.7%) for taxes
first due and payable in 2031, and each year thereafter.
However, the amount of the deduction under this section may not
exceed the amount equal to seventy-five percent (75%) of the gross
assessed value of the property.
(c) (d) The auditor of the county shall record and make the
deduction for the person qualifying for the deduction.
(d) (e) The deduction granted under this section shall not be
considered in applying section 40.5 of this chapter to the deductions
applicable to property. Section 40.5 of this chapter does not apply to
the deduction granted under this section.
SECTION 46. IC 6-1.1-12-38, AS AMENDED BY P.L.136-2024,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 38. (a) A person is
entitled to a deduction from the assessed value of the person's property
in an amount equal to the difference between:
(1) the assessed value of the person's property, including the
assessed value of the improvements made to comply with the
fertilizer storage rules adopted by the state chemist under
IC 15-16-2-44 and the pesticide storage rules adopted by the state
chemist under IC 15-16-4-52; minus
(2) the assessed value of the person's property, excluding the
assessed value of the improvements made to comply with the
fertilizer storage rules adopted by the state chemist under
IC 15-16-2-44 and the pesticide storage rules adopted by the state
chemist under IC 15-16-4-52.
(b) To obtain the deduction under this section, a person must file a
certified statement in duplicate, on forms prescribed by the department
SEA 1 — Concur
59
of local government finance, with the auditor of the county in which the
property is subject to assessment. In addition to the certified statement,
the person must file a certification by the state chemist listing the
improvements that were made to comply with the fertilizer storage
rules adopted under IC 15-16-2-44 and the pesticide storage rules
adopted by the state chemist under IC 15-16-4-52. Subject to section
45 of this chapter, the statement must be completed, dated, and filed
with the county auditor on or before January 15 of the immediately
succeeding calendar year. Upon the verification of the statement and
certification by the assessor of the township in which the property is
subject to assessment, or the county assessor if there is no township
assessor for the township, the county auditor shall allow the deduction.
(c) The deduction provided by this section applies only if the
person:
(1) owns the property; or
(2) is buying the property under contract;
on the assessment date for which the deduction applies.
(d) This section applies only to property taxes imposed for an
assessment date before January 1, 2025.
(e) This section expires January 1, 2027.
SECTION 47. IC 6-1.1-12-40 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
Sec. 40. (a) This section applies only to real property that is located in
an enterprise zone established in a county containing a consolidated
city.
(b) The owner of real property described in subsection (a) is entitled
to a deduction under this section if:
(1) an obsolescence depreciation adjustment for either functional
obsolescence or economic obsolescence was allowed for the
property for property taxes assessed in the year preceding the year
in which the owner purchased the property;
(2) the property owner submits an application requesting the
deduction to the fiscal body of the county in which the property
is located; and
(3) the fiscal body of the county approves the deduction.
(c) If a county fiscal body approves a deduction under this section,
it must notify the county auditor of the approval of the deduction.
(d) A deduction may be claimed under this section for not more than
four (4) years. The amount of the deduction under this section equals:
(1) the amount of the obsolescence depreciation adjustment for
either functional obsolescence or economic obsolescence that was
allowed for the property for property taxes assessed in the year
SEA 1 — Concur
60
preceding the year in which the owner purchased the property;
multiplied by
(2) the following percentages:
(A) One hundred percent (100%), for property taxes assessed
in the year in which the owner purchased the property.
(B) Seventy-five percent (75%), for property taxes assessed in
the year after the year in which the owner purchased the
property.
(C) Fifty percent (50%), for property taxes assessed in the
second year after the year in which the owner purchased the
property.
(D) Twenty-five percent (25%), for property taxes assessed in
the third year after the year in which the owner purchased the
property.
(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 48. IC 6-1.1-12-42, AS AMENDED BY P.L.146-2008,
SECTION 119, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 42. (a) As
used in this section, "assessed value of inventory" means the assessed
value determined after the application of any deductions or adjustments
that apply by statute or rule to the assessment of inventory, other than
the deduction established in subsection (c).
(b) As used in this section, "inventory" has the meaning set forth in
IC 6-1.1-3-11 (repealed).
(c) A taxpayer is entitled to a deduction from assessed value equal
to one hundred percent (100%) of the taxpayer's assessed value of
inventory for assessments made in 2006 for property taxes first due and
payable in 2007.
(d) A taxpayer is not required to file an application to qualify for the
deduction established by this section.
(e) The department of local government finance shall incorporate
the deduction established by this section in the personal property return
form to be used each year for filing under IC 6-1.1-3-7 or
IC 6-1.1-3-7.5 to permit the taxpayer to enter the deduction on the
form. If a taxpayer fails to enter the deduction on the form, the
township assessor, or the county assessor if there is no township
assessor for the township, shall:
(1) determine the amount of the deduction; and
(2) within the period established in IC 6-1.1-16-1, issue a notice
of assessment to the taxpayer that reflects the application of the
SEA 1 — Concur
61
deduction to the inventory assessment.
(f) The deduction established by this section must be applied to any
inventory assessment made by:
(1) an assessing official;
(2) a county property tax assessment board of appeals; or
(3) the department of local government finance.
(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 49. IC 6-1.1-12-43, AS AMENDED BY P.L.174-2022,
SECTION 23, 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
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
SEA 1 — Concur
62
(B) sufficient instructions and information to permit a party to
terminate a standard deduction under section 37 of this chapter
on any property on which the party or the spouse of the party
will no longer be eligible for the standard deduction under
section 37 of this chapter after the party or the party's spouse
begins to reside at the property that is the subject of the
closing, including an explanation of the tax consequences and
applicable penalties, if a party unlawfully claims a standard
deduction under section 37 of this chapter; and
(3) be printed in one (1) of two (2) or more colors prescribed by
the department of local government finance that distinguish the
form from other documents typically used in a closing referred to
in subsection (b).
(d) A closing agent:
(1) may reproduce the form referred to in subsection (c);
(2) in reproducing the form, must use a print color prescribed by
the department of local government finance; and
(3) is not responsible for the content of the form referred to in
subsection (c) and shall be held harmless by the department of
local government finance from any liability for the content of the
form.
(e) This subsection applies to a transaction that is closed after
December 31, 2009. In addition to providing the customer the form
described in subsection (c) before closing the transaction, a closing
agent shall do the following as soon as possible after the closing, and
within the time prescribed by the department of insurance under
IC 27-7-3-15.5:
(1) To the extent determinable, input the information described in
IC 27-7-3-15.5(c)(2) into the system maintained by the
department of insurance under IC 27-7-3-15.5.
(2) Submit the form described in IC 27-7-3-15.5(c) to the data
base described in IC 27-7-3-15.5(c)(2)(D).
(f) A closing agent to which this section applies shall document the
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
SEA 1 — Concur
63
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 50. IC 6-1.1-12-44, AS AMENDED BY P.L.136-2024,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 44. (a) A sales disclosure
form under IC 6-1.1-5.5:
(1) that is submitted:
(A) as a paper form; or
(B) electronically;
on or before January 15 of a calendar year in which property taxes
are first due and payable to the county assessor by or on behalf of
the purchaser of a homestead (as defined in section 37 of this
chapter) assessed as real property;
(2) that is accurate and complete;
(3) that is approved by the county assessor as eligible for filing
with the county auditor; and
(4) that is filed:
(A) as a paper form; or
(B) electronically;
with the county auditor by or on behalf of the purchaser;
constitutes an application for the deductions provided by sections 26
(before its expiration), 29 (before its expiration), 33 (before its
expiration), 34 (before its expiration), and 37 of this chapter with
SEA 1 — Concur
64
respect to property taxes first due and payable in the calendar year
referred to in subdivision (1). The county auditor may not deny an
application for the deductions provided by section 37 of this chapter
because the applicant does not have a valid driver's license or state
identification card with the address of the homestead property.
(b) Except as provided in subsection (c), if:
(1) the county auditor receives in a calendar year a sales
disclosure form that meets the requirements of subsection (a); and
(2) the homestead for which the sales disclosure form is submitted
is otherwise eligible for a deduction referred to in subsection (a);
the county auditor shall apply the deduction to the homestead for
property taxes first due and payable in the calendar year for which the
homestead qualifies under subsection (a) and in any later year in which
the homestead remains eligible for the deduction.
(c) Subsection (b) does not apply if the county auditor, after
receiving a sales disclosure form from or on behalf of a purchaser
under subsection (a)(4), determines that the homestead is ineligible for
the deduction.
SECTION 51. IC 6-1.1-12-46, AS AMENDED BY P.L.174-2022,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 46. (a) This section
applies to real property for an assessment date in 2011 or a later year
if:
(1) the real property is not exempt from property taxation for the
assessment date;
(2) title to the real property is transferred after the assessment date
and on or before the December 31 that next succeeds the
assessment date;
(3) the transferee of the real property applies for an exemption
under IC 6-1.1-11 for the next succeeding assessment date; and
(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).
SEA 1 — Concur
65
(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 52. IC 6-1.1-12-47 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 47. (a)
This section applies to assessment dates beginning after December
31, 2024.
(b) As used in the section, "eligible property" means all
property that is subject to the credit for excessive property taxes
under IC 6-1.1-20.6-7.5(a)(2) through IC 6-1.1-20.6-7.5(a)(4).
(c) A taxpayer is entitled to a deduction from the assessed value
of the taxpayer's eligible property after the application of any
other deductions that apply under this article equal to:
(1) six percent (6%) of the taxpayer's assessed value for
assessments made in 2025 for property taxes first due and
payable in 2026;
(2) twelve percent (12%) of the taxpayer's assessed value for
assessments made in 2026 for property taxes first due and
payable in 2027;
(3) nineteen percent (19%) of the taxpayer's assessed value
for assessments made in 2027 for property taxes first due and
payable in 2028;
(4) twenty-five percent (25%) of the taxpayer's assessed value
for assessments made in 2028 for property taxes first due and
payable in 2029;
(5) thirty percent (30%) of the taxpayer's assessed value for
assessments made in 2029 for property taxes first due and
payable in 2030; and
(6) thirty-three and four-tenths percent (33.4%) of the
taxpayer's assessed value for assessments made in 2030 for
property taxes first due and payable in 2031, and for
assessments made in each taxable year thereafter.
(d) A taxpayer is not required to file an application to qualify
SEA 1 — Concur
66
for the deduction established by this section. A county auditor shall
apply the deduction to eligible property in the county as set forth
in this section.
(e) Application of the phased in deduction under this section for
assessment dates after December 31, 2024, with regard to mobile
homes that are not assessed as real property and manufactured
homes not assessed as real property shall be construed and applied
in the same manner in terms of timing and consistent with its
application for real property.
SECTION 53. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.8-2022,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4.5. (a) An applicant
must provide a statement of benefits to the designating body. The
applicant must provide the completed statement of benefits form to the
designating body before the hearing specified in section 2.5(c) of this
chapter or before the installation of the new manufacturing equipment,
new farm equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment for which the person desires to claim a deduction under this
chapter. The department of local government finance shall prescribe a
form for the statement of benefits. The statement of benefits must
include the following information:
(1) A description of the new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment that the person proposes to acquire. A statement of
benefits for new farm equipment must describe each piece of new
farm equipment with sufficient detail to afford identification.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment;
an estimate of the number of individuals who will be employed or
whose employment will be retained by the person as a result of
the installation of the new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment and an estimate of the annual salaries of these
individuals.
SEA 1 — Concur
67
(3) An estimate of the cost of the new manufacturing equipment,
new farm equipment, new research and development equipment,
new logistical distribution equipment, or new information
technology equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, an
estimate of the amount of solid waste or hazardous waste that will
be converted into energy or other useful products by the new
manufacturing equipment.
The statement of benefits may be incorporated in a designation
application. Notwithstanding any other law, a statement of benefits is
a public record that may be inspected and copied under IC 5-14-3-3.
(b) The designating body must review the statement of benefits
required under subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether the deduction shall be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment is reasonable for equipment of
that type.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment;
whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the installation of the new
manufacturing equipment, new farm equipment, new research and
development equipment, new logistical distribution equipment, or
new information technology equipment.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
installation of new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
SEA 1 — Concur
68
equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, whether
the estimate of the amount of solid waste or hazardous waste that
will be converted into energy or other useful products can be
reasonably expected to result from the installation of the new
manufacturing equipment.
(5) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed installation of new manufacturing equipment,
new farm equipment, new research and development equipment,
new logistical distribution equipment, or new information
technology equipment.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
The designating body may not designate an area an economic
revitalization area or approve the deduction unless it makes the
findings required by this subsection in the affirmative.
(c) Except as provided in subsection (f), and subject to subsection
(g) and section 15 of this chapter, an owner of new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new information
technology equipment whose statement of benefits is approved is
entitled to a deduction from the assessed value of that equipment for
the number of years determined by the designating body under section
17 or 18 of this chapter. Except as provided in subsection (d) and in
section 2(i)(3) of this chapter, and subject to subsection (g) and section
15 of this chapter, the amount of the deduction that an owner is entitled
to for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment, new
farm equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment in the year of deduction under the abatement schedule
established under section 17 or 18 of this chapter; multiplied by
(2) the percentage prescribed by the designating body under
section 17 or 18 of this chapter.
(d) With respect to new manufacturing equipment and new research
and development equipment installed before March 2, 2001, the
deduction under this section is the amount that causes the net assessed
value of the property after the application of the deduction under this
section to equal the net assessed value after the application of the
SEA 1 — Concur
69
deduction under this section that results from computing:
(1) the deduction under this section as in effect on March 1, 2001;
and
(2) the assessed value of the property under 50 IAC 4.2, as in
effect on March 1, 2001, or, in the case of property subject to
IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
(e) The designating body shall determine the number of years the
deduction is allowed under section 17 or 18 of this chapter. Except as
provided by section 18 of this chapter, the deduction may not be
allowed for more than ten (10) years. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving a
copy of a property owner's certified deduction application from
the county auditor. A certified copy of the resolution shall be sent
to the county auditor.
A determination about the number of years the deduction is allowed
that is made under subdivision (1) is final and may not be changed by
following the procedure under subdivision (2).
(f) The owner of new manufacturing equipment that is directly used
to dispose of hazardous waste is not entitled to the deduction provided
by this section for a particular assessment year if during that
assessment year the owner:
(1) is convicted of a criminal violation under IC 13, including
IC 13-7-13-3 (repealed) or IC 13-7-13-4 (repealed); or
(2) is subject to an order or a consent decree with respect to
property located in Indiana based on a violation of a federal or
state rule, regulation, or statute governing the treatment, storage,
or disposal of hazardous wastes that had a major or moderate
potential for harm.
(g) For purposes of subsection (c), the assessed value of new
manufacturing equipment, new farm equipment, new research and
development equipment, new logistical distribution equipment, or new
information technology equipment that is part of an owner's assessable
depreciable personal property in a single taxing district subject to the
valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9
IC 6-1.1-8-45 is the product of:
(1) the assessed value of the equipment determined without
regard to the valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29
or 50 IAC 5.1-6-9; IC 6-1.1-8-45; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under
SEA 1 — Concur
70
50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9 IC 6-1.1-8-45
for all of the owner's depreciable personal property in the
taxing district; divided by
(B) the total true tax value of all of the owner's depreciable
personal property in the taxing district that is subject to the
valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
IAC 5.1-6-9 IC 6-1.1-8-45 determined:
(i) under the depreciation schedules in the rules of the
department of local government finance before any
adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50
IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9.
IC 6-1.1-8-45.
SECTION 54. IC 6-1.1-12.1-6, AS AMENDED BY P.L.181-2016,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 6. (a) A property owner
may not receive a deduction under this chapter for repairs or
improvements to real property if the property owner receives a
deduction under either IC 6-1.1-12-18 (before its expiration) or
IC 6-1.1-12-22 (before its expiration) for those same repairs or
improvements. This subsection expires January 1, 2033.
(b) A property owner may not receive a deduction under this chapter
if the property owner receives a deduction under IC 6-1.1-12-28.5
(before its expiration) for the same property.
SECTION 55. IC 6-1.1-17-3, AS AMENDED BY P.L.220-2021,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) The proper officers of a political subdivision
shall formulate its estimated budget and its proposed tax rate and tax
levy on the form prescribed by the department of local government
finance and approved by the state board of accounts. In formulating a
political subdivision's estimated budget under this section, the proper
officers of the political subdivision must consider the net property tax
revenue that will be collected by the political subdivision during the
ensuing year, after taking into account the estimate by the department
of local government finance under IC 6-1.1-20.6-11.1 of the amount by
which the political subdivision's distribution of property taxes will be
reduced by credits under IC 6-1.1-20.6-9.5 in the ensuing year, after
taking into account the estimate by the department of local government
finance under section 0.7 of this chapter of the maximum amount of net
property tax revenue and miscellaneous revenue that the political
subdivision will receive in the ensuing year, and after taking into
account all payments for debt service obligations that are to be made
SEA 1 — Concur
71
by the political subdivision during the ensuing year. The political
subdivision or appropriate fiscal body, if the political subdivision is
subject to section 20 of this chapter, shall submit the following
information to the department's computer gateway:
(1) The estimated budget.
(2) The estimated maximum permissible levy, as provided by the
department under IC 6-1.1-18.5-24.
(3) The current and proposed tax levies of each fund.
(4) The percentage change between the current and proposed tax
levies of each fund.
(5) The amount by which the political subdivision's distribution
of property taxes may be reduced by credits granted under
IC 6-1.1-20.6, as estimated by the department of local government
finance under IC 6-1.1-20.6-11.1.
(6) The amounts of excessive levy appeals to be requested.
(7) The time and place at which the political subdivision or
appropriate fiscal body will hold a public hearing on the items
described in subdivisions (1) through (6).
(8) The amount of any increase in the tax rate and tax levies
of the political subdivision in an ordinance adopted under
section 23 of this chapter.
(8) (9) The time and place at which the political subdivision or
appropriate fiscal body will meet to fix the budget, tax rate, and
levy under section 5 of this chapter.
(9) (10) The date, time, and place of the final adoption of the
budget, tax rate, and levy under section 5 of this chapter.
Except as provided in section 5.6(b) of this chapter, the political
subdivision or appropriate fiscal body shall submit this information to
the department's computer gateway at least ten (10) days before the
public hearing required by this subsection in the manner prescribed by
the department. If the date, time, or place of the final adoption
subsequently changes, the political subdivision shall update the
information submitted to the department's computer gateway. The
department shall make this information available to taxpayers, at least
ten (10) days before the public hearing, through its computer gateway
and provide a telephone number through which taxpayers may request
mailed copies of a political subdivision's information under this
subsection. The department's computer gateway must allow a taxpayer
to search for the information under this subsection by the taxpayer's
address. The department shall review only the submission to the
department's computer gateway for compliance with this section.
(b) The board of directors of a solid waste management district
SEA 1 — Concur
72
established under IC 13-21 or IC 13-9.5-2 (before its repeal) may
conduct the public hearing required under subsection (a):
(1) in any county of the solid waste management district; and
(2) in accordance with the annual notice of meetings published
under IC 13-21-5-2.
(c) The trustee of each township in the county shall estimate the
amount necessary to meet the cost of township assistance in the
township for the ensuing calendar year. The township board shall,
subject to section 23 of this chapter, adopt with the township budget
a tax rate sufficient to meet the estimated cost of township assistance.
The taxes collected as a result of the tax rate adopted under this
subsection are credited to the township assistance fund.
(d) A political subdivision for which any of the information under
subsection (a) is not submitted to the department's computer gateway
in the manner prescribed by the department shall have its most recent
annual appropriations and annual tax levy continued for the ensuing
budget year.
(e) If a political subdivision or appropriate fiscal body timely
submits the information under subsection (a) but subsequently
discovers the information contains an error, the political subdivision or
appropriate fiscal body may submit amended information to the
department's computer gateway. However, submission of an
amendment to information described in subsection (a)(1) through (a)(7)
must occur at least ten (10) days before the public hearing held under
subsection (a), and submission of an amendment to information
described in subsection (a)(8) through (a)(9) must occur at least
twenty-four (24) hours before the time in which the meeting to fix the
budget, tax rate, and levy was originally advertised to commence.
(f) Each year, the governing body of a school corporation that
imposes property taxes to pay debt service on bonds or lease rentals on
a lease for a controlled project under IC 6-1.1-20, property taxes under
an operating referendum tax levy under IC 20-46-1, or property taxes
under a school safety referendum tax levy under IC 20-46-9, shall
submit the following information at least ten (10) days before the
public hearing required by subsection (a) in the manner prescribed by
the department:
(1) the purposes specified in the public question submitted to the
voters or any revenue spending plans adopted under
IC 6-1.1-20-13, IC 20-46-1-8, or IC 20-46-9-6 for:
(A) debt service on bonds or lease rentals on a lease for a
controlled project under IC 6-1.1-20;
(B) an operating referendum tax levy approved by the voters
SEA 1 — Concur
73
of the school corporation under IC 20-46-1; or
(C) a school safety referendum tax levy approved by the voters
of the school corporation under IC 20-46-9;
as applicable; and
(2) the debt service levy fund, operating referendum tax levy
fund, or school safety referendum tax levy fund of the school
corporation, whichever is applicable;
to show whether the school corporation is using revenue collected from
the referendum tax levy in the amounts and for the purposes
established in the purposes specified in the public question submitted
to the voters or the revenue spending plan, as applicable. The
department shall make this information available to taxpayers at least
ten (10) days before the public hearing.
SECTION 56. IC 6-1.1-17-16, AS AMENDED BY P.L.9-2024,
SECTION 169, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 16. (a) The department of local
government finance shall certify the tax rates and tax levies for all
funds of political subdivisions subject to the department of local
government finance's review.
(b) For a fund of a political subdivision subject to levy limits under
IC 6-1.1-18.5-3, the department of local government finance shall
calculate and certify the allowable budget of the fund if the political
subdivision adopts a tax levy that exceeds the estimated maximum levy
limits as provided by the department of local government finance under
IC 6-1.1-18.5-24.
(c) For a fund of a political subdivision subject to levy limits under
IC 6-1.1-18.5-3 and for which the political subdivision adopts a tax
levy that is not more than the levy limits under IC 6-1.1-18.5-3, the
department of local government finance shall review the fund to ensure
the adopted budget is fundable based on the unit's adopted tax levy and
estimates of available revenues. If the adopted budget is fundable, the
department of local government finance shall use the adopted budget
as the approved appropriation for the fund for the budget year. As
needed, the political subdivision may complete the additional
appropriation process through IC 6-1.1-18-5 for these funds during the
budget year.
(d) For a fund of the political subdivision subject to levy limits
under IC 6-1.1-18.5-3 and for which the political subdivision adopts a
tax levy that is not more than the levy limits under IC 6-1.1-18.5-3, if
the department of local government finance has determined the adopted
budget is not fundable based on the unit's adopted tax levy and
estimates of available revenues, the department of local government
SEA 1 — Concur
74
finance shall calculate and certify the allowable budget that is fundable
based on the adopted tax levy and the department's estimates of
available revenues.
(e) For all other funds of a political subdivision not described in
subsections (b), (c), and (d), the department of local government
finance shall certify a budget for the fund.
(f) Except as provided in section 16.1 of this chapter, the department
of local government finance is not required to hold a public hearing
before the department of local government finance reviews, revises,
reduces, or increases a political subdivision's budget by fund, tax rate,
or tax levy under this section.
(g) Except as provided in subsection (l), IC 20-46, or IC 6-1.1-18.5,
the department of local government finance may not increase a political
subdivision's budget by fund, tax rate, or tax levy to an amount which
exceeds the amount originally fixed by the political subdivision.
However, if the department of local government finance determines
that IC 5-3-1-2.3(b) applies to the tax rate, tax levy, or budget of the
political subdivision, the maximum amount by which the department
may increase the tax rate, tax levy, or budget is the amount originally
fixed by the political subdivision, and not the amount that was
incorrectly published or omitted in the notice described in
IC 5-3-1-2.3(b). The department of local government finance shall give
the political subdivision notification electronically in the manner
prescribed by the department of local government finance specifying
any revision, reduction, or increase the department proposes in a
political subdivision's tax levy or tax rate. The political subdivision has
ten (10) calendar days from the date the political subdivision receives
the notice to provide a response electronically in the manner prescribed
by the department of local government finance. The response may
include budget reductions, reallocation of levies, a revision in the
amount of miscellaneous revenues, and further review of any other
item about which, in the view of the political subdivision, the
department is in error. The department of local government finance
shall consider the adjustments as specified in the political subdivision's
response if the response is provided as required by this subsection and
shall deliver a final decision to the political subdivision. The
department of local government finance may not consider any
adjustments that are suggested by the political subdivision after the
expiration of the ten (10) day period allowed for the political
subdivision's response.
(h) The department of local government finance may not approve a
levy for lease payments by a city, town, county, library, or school
SEA 1 — Concur
75
corporation if the lease payments are payable to a building corporation
for use by the building corporation for debt service on bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds on
hand to redeem all outstanding bonds payable from the particular
lease rental levy requested.
(i) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) if the budget and levy of the political subdivision are being
continued:
(A) the state board of accounts;
(B) the state comptroller; and
(C) the department of state revenue;
(3) the political subdivision if the department acts pursuant to an
appeal initiated by the political subdivision; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(j) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (i):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) A taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
The petition must be filed in the tax court not more than forty-five (45)
days after the department certifies its action under subsection (i).
(k) The department of local government finance is expressly
directed to complete the duties assigned to it under this section as
follows:
(1) Not later than December 31 of the year preceding that budget
year, unless subdivision (2) applies.
(2) Not later than January 15 of the budget year if any of the
following are true:
(A) A taxing unit in a county intends to issue debt after
December 1 in the year preceding the budget year and has
indicated its intent to issue debt after December 1 in the year
preceding the budget year as specified in section 5 of this
chapter.
(B) A taxing unit intends to file a shortfall appeal under
SEA 1 — Concur
76
IC 6-1.1-18.5-16 and has indicated its intent to file a shortfall
appeal as specified in section 5 of this chapter.
(C) The deadline for a city in the county to fix the budget, tax
rate, and tax levy has been extended, in accordance with
section 5.2 of this chapter, due to the executive's veto of the
ordinance fixing the budget, tax rate, and tax levy.
(l) Subject to the provisions of all applicable statutes, and
notwithstanding IC 6-1.1-18-1, the department of local government
finance shall, unless the department finds extenuating circumstances,
increase a political subdivision's tax levy to an amount that exceeds the
amount originally advertised or adopted by the political subdivision if:
(1) the increase is requested in writing by the officers of the
political subdivision;
(2) the request includes:
(A) the corrected budget, tax rate, or levy, as applicable; and
(B) the time and place of the meeting described in subdivision
(4);
(3) the political subdivision publishes the requested increase on
the department's advertising website;
(4) the political subdivision adopts the needed changes to its
budget, tax levy, or rate in a public meeting of the governing
body; and
(5) notice is given to the county fiscal body of the department's
correction.
The political subdivision shall publish notice of the meeting described
in subdivision (4) on the Indiana transparency website in the manner
prescribed by the department not later than forty-eight (48) hours
(excluding weekends and holidays) before the meeting. If the
department increases a levy beyond what was advertised or adopted
under this subsection, it shall, unless the department finds extenuating
circumstances, reduce the certified levy affected below the maximum
allowable levy by the lesser of five percent (5%) of the difference
between the advertised or adopted levy and the increased levy, or one
hundred thousand dollars ($100,000).
(m) If the department of local government finance has
determined that the proposed tax levy for a political subdivision's
budget exceeds the permissible tax levy for the political subdivision
under section 23 of this chapter, the department of local
government finance shall calculate and certify the allowable tax
levy and tax rate for the political subdivision based on the
provisions in section 23 of this chapter.
SECTION 57. IC 6-1.1-17-17, AS AMENDED BY P.L.146-2008,
SEA 1 — Concur
77
SECTION 161, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 17. Subject to the limitations
contained in IC 6-1.1-18.5 and IC 20-46, and notwithstanding section
23 of this chapter, the department of local government finance may at
any time increase the tax rate and tax levy of a political subdivision for
the following reasons:
(1) To pay the principal or interest upon a funding, refunding, or
judgment funding obligation of a political subdivision.
(2) To pay the interest or principal upon an outstanding obligation
of the political subdivision.
(3) To pay a judgment rendered against the political subdivision.
(4) To pay lease rentals that have become an obligation of the
political subdivision under IC 20-47-2 or IC 20-47-3.
SECTION 58. IC 6-1.1-17-23 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 23. (a) This section applies
beginning after December 31, 2028, to the formulation and
adoption of a budget, tax rate, and tax levy under this chapter.
(b) Notwithstanding any growth in a political subdivision's
assessed value in the previous year, the ad valorem property tax
levy for the budget of a political subdivision shall not exceed the ad
valorem property tax levy for its last preceding annual budget,
except as provided in subsections (c) and (d).
(c) The fiscal body of a political subdivision may by ordinance
authorize the proper officers of the political subdivision to
formulate and submit a budget, tax rate, and tax levy under section
3 of this chapter that exceeds the ad valorem property tax levy
restriction in subsection (b), subject to all other limits under this
article, if the following conditions are met:
(1) The fiscal body of the political subdivision must hold a
public hearing at which the only item on the agenda is the
proposal to adopt an ordinance under this subsection. The
hearing shall be conducted in accordance with IC 5-14-1.5,
and notice of the hearing shall be published in accordance
with IC 5-3-1.
(2) After conducting a public hearing under subdivision (1)
and subject to subdivision (3), the fiscal body of the political
subdivision may adopt an ordinance under this subsection,
which must contain:
(A) a general statement of the reasons for the tax levy and
tax rate increase;
(B) the dollar amount of the tax levy increase; and
SEA 1 — Concur
78
(C) the percentage increase in the tax rate from the
previous year.
(3) An ordinance may not be adopted under this section after
the date that is fifteen (15) days before the public hearing
under section 3 of this chapter.
(d) If an ordinance is adopted by the fiscal body of a political
subdivision under subsection (c), the limitation in subsection (b)
shall not apply and instead the ad valorem property tax levy for
the budget of the political subdivision shall not exceed the sum of:
(1) the ad valorem property tax levy for the political
subdivision's last preceding annual budget; plus
(2) the additional ad valorem property tax levy authorized in
the ordinance adopted by the fiscal body under subsection (c);
subject to all other limits under this article.
(e) The provisions of this section shall be applied to decrease the
tax rate of each political subdivision in which there was an increase
in the political subdivision's assessed value in the previous year,
subject to subsections (c) and (d).
SECTION 59. IC 6-1.1-18.5-2, AS AMENDED BY P.L.239-2023,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) As used in this section, "Indiana
nonfarm personal income" means the estimate of total nonfarm
personal income for Indiana in a calendar year as computed by the
federal Bureau of Economic Analysis using any actual data for the
calendar year and any estimated data determined appropriate by the
federal Bureau of Economic Analysis.
(b) Except as provided in subsections (c) and (e), for purposes of
determining a civil taxing unit's maximum permissible ad valorem
property tax levy for an ensuing calendar year, the civil taxing unit
shall use the maximum levy growth quotient determined in the last
STEP of the following STEPS:
STEP ONE: For each of the six (6) calendar years immediately
preceding the year in which a budget is adopted under
IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
nonfarm personal income for the calendar year by the Indiana
nonfarm personal income for the calendar year immediately
preceding that calendar year, rounding to the nearest
one-thousandth (0.001).
STEP TWO: Determine the sum of the STEP ONE results.
STEP THREE: Divide the STEP TWO result by six (6), rounding
to the nearest one-thousandth (0.001).
STEP FOUR: Determine the lesser of the following:
SEA 1 — Concur
79
(A) The STEP THREE quotient.
(B) One and six-hundredths (1.06).
(c) Except as provided in subsection (f), a school corporation shall
use for its operations fund maximum levy calculation under
IC 20-46-8-1 the maximum levy growth quotient determined in the last
STEP of the following STEPS:
STEP ONE: Determine for each school corporation, the average
annual growth in net assessed value using the three (3) calendar
years immediately preceding the year in which a budget is
adopted under IC 6-1.1-17-5 for the ensuing calendar year.
STEP TWO: Determine the greater of:
(A) zero (0); or
(B) the STEP ONE amount minus the sum of:
(i) the maximum levy growth quotient determined under
subsection (b) minus one (1); plus
(ii) two-hundredths (0.02).
STEP THREE: Determine the lesser of:
(A) the STEP TWO amount; or
(B) four-hundredths (0.04).
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the maximum levy growth quotient determined under
subsection (b).
STEP FIVE: Determine the greater of:
(A) the STEP FOUR amount; or
(B) the maximum levy growth quotient determined under
subsection (b).
(d) The budget agency shall provide the maximum levy growth
quotient for the ensuing year to civil taxing units, school corporations,
and the department of local government finance before July 1 of each
year.
(e) This subsection applies only for purposes of determining the
maximum levy growth quotient to be used in determining a civil taxing
unit's maximum permissible ad valorem property tax levy in calendar
years 2024, and 2025, and 2026. For purposes of determining the
maximum levy growth quotient in calendar years 2024, and 2025, and
2026, instead of the result determined in the last STEP in subsection
(b), the maximum levy growth quotient is determined in the last STEP
of the following STEPS:
STEP ONE: Determine the result of STEP FOUR of subsection
(b), calculated as if this subsection was not in effect.
STEP TWO: Subtract one (1) from the STEP ONE result.
SEA 1 — Concur
80
STEP THREE: Multiply the STEP TWO result by eight-tenths
(0.8).
STEP FOUR: Add one (1) to the STEP THREE result.
STEP FIVE: Determine the lesser of:
(A) the STEP FOUR result; or
(B) one and four-hundredths (1.04).
(f) This subsection applies only for purposes of determining the
maximum levy growth quotient to be used in determining a school
corporation's operations fund maximum levy in calendar years 2024,
and 2025, and 2026. For purposes of determining the maximum levy
growth quotient in calendar years 2024, and 2025, and 2026, instead
of the result determined in the last STEP in subsection (c), the
maximum levy growth quotient is determined in the last STEP of the
following STEPS:
STEP ONE: Determine the result of STEP FIVE of subsection (c),
calculated as if this subsection was not in effect.
STEP TWO: Subtract one (1) from the STEP ONE result.
STEP THREE: Multiply the STEP TWO result by eight-tenths
(0.8).
STEP FOUR: Add one (1) to the STEP THREE result.
STEP FIVE: Determine the lesser of:
(A) the STEP FOUR result; or
(B) one and four-hundredths (1.04).
SECTION 60. IC 6-1.1-18.5-3, AS AMENDED BY P.L.247-2017,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 3. (a) A civil taxing unit may not impose an
ad valorem property tax levy for an ensuing calendar year that exceeds
the amount determined in the last STEP of the following STEPS:
STEP ONE: Determine the civil taxing unit's maximum
permissible ad valorem property tax levy for the preceding
calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by
the amount determined in the last STEP of section 2(b) of this
chapter.
STEP THREE: Determine the lesser of one and fifteen hundredths
(1.15) or the quotient (rounded to the nearest ten-thousandth
(0.0001)), of the assessed value of all taxable property subject to
the civil taxing unit's ad valorem property tax levy for the ensuing
calendar year, divided by the assessed value of all taxable
property that is subject to the civil taxing unit's ad valorem
property tax levy for the ensuing calendar year and that is
contained within the geographic area that was subject to the civil
SEA 1 — Concur
81
taxing unit's ad valorem property tax levy in the preceding
calendar year.
STEP FOUR: Determine the greater of the amount determined in
STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the
amount of an excessive levy appeal granted under section 13 of
this chapter for the ensuing calendar year.
STEP SEVEN: Determine the greater of STEP FIVE or STEP
SIX.
(b) This subsection applies only to a civil taxing unit that is located
in a county that is covered by IC 6-3.6-11-1. For purposes of subsection
(a), revenue under IC 6-3.6-6 that is applied for purposes of a levy
freeze shall not be included in the amount determined under STEP
ONE of subsection (a) for the civil taxing unit. Notwithstanding any
provision in this section, any other section of this chapter, or
IC 12-20-21-3.2, and except as provided in subsection (c), if the
adopting body has adopted a resolution specifying that any increase in
the maximum levy is to be funded using local income tax revenue, the
maximum permissible ad valorem property tax levy calculated under
this section for the ensuing calendar year for the civil taxing unit is
equal to the civil taxing unit's maximum permissible ad valorem
property tax levy for the current calendar year. If the adopting body has
adopted a resolution specifying that any increase in the maximum levy
is not to be funded using local income tax revenue, the maximum
permissible ad valorem property tax levy for the civil taxing unit is
equal to the civil taxing unit's maximum permissible ad valorem
property tax levy calculated under this section for the ensuing calendar
year.
(c) In the case of a civil taxing unit that:
(1) is partially located in a county that is covered by
IC 6-3.6-11-1; and
(2) is partially located in a county that is not described in
subdivision (1);
the department of local government finance shall, notwithstanding
subsection (b), adjust the portion of the civil taxing unit's maximum
permissible ad valorem property tax levy that is attributable (as
determined by the department of local government finance) to the
county or counties described in subdivision (2). The department of
local government finance shall adjust this portion of the civil taxing
unit's maximum permissible ad valorem property tax levy so that,
SEA 1 — Concur
82
notwithstanding subsection (b), this portion is allowed to increase as
otherwise provided in this section. If the department of local
government finance increases the civil taxing unit's maximum
permissible ad valorem property tax levy under this subsection, any
additional property taxes imposed by the civil taxing unit under the
adjustment shall be paid only by the taxpayers in the county or counties
described in subdivision (2).
(b) In the case of a county that was covered by IC 6-3.6-11-1
(before its repeal), the maximum permissible property tax levy for
the civil taxing unit under STEP ONE of subsection (a) shall be
increased to the extent and in the amount that revenue from a levy
freeze was applied to adjust the civil taxing unit's maximum
permissible property tax levy in the tax year immediately
preceding the repeal of IC 6-3.6-11-1. The increase shall apply to
each tax year after the repeal. Notwithstanding any other provision
of law, if a county has a stabilization fund, the county may use
money from that fund for operations of the county in lieu of levy
increases pursuant to this subsection. A county to which this
subsection applies shall adopt a plan to phase in a multi-year
gradual spend down of money in its stabilization fund or other
available funds over a specified number of years that allows for the
gradual increase of the county's levy in combination with money
from its stabilization fund.
SECTION 61. IC 6-1.1-18.5-12, AS AMENDED BY P.L.156-2024,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 12. (a) Any civil taxing unit that incurs
increased costs resulting from annexation, a natural disaster, an
accident, or another unanticipated emergency, and determines that
it cannot carry out its governmental functions for an ensuing calendar
year under the levy limitations imposed by section 3 or 25 of this
chapter, as applicable, may, subject to subsections (h) and (i):
(1) before October 20 of the calendar year immediately preceding
the ensuing calendar year; or
(2) in the case of a request described in section 16 of this chapter,
before December 31 of the calendar year immediately preceding
the ensuing calendar year;
appeal to the department of local government finance for relief from
those levy limitations. In the appeal the civil taxing unit must state that
it will be unable to carry out the governmental functions committed to
it by law unless it is given the authority that it is petitioning for. The
civil taxing unit must support these allegations by reasonably detailed
statements of fact.
SEA 1 — Concur
83
(b) The department of local government finance shall immediately
proceed to the examination and consideration of the merits of the civil
taxing unit's appeal.
(c) In considering an appeal, the department of local government
finance has the power to conduct hearings, require any officer or
member of the appealing civil taxing unit to appear before it, or require
any officer or member of the appealing civil taxing unit to provide the
department with any relevant records or books.
(d) If an officer or member:
(1) fails to appear at a hearing after having been given written
notice requiring that person's attendance; or
(2) fails to produce the books and records that the department by
written notice required the officer or member to produce;
then the department may file an affidavit in the circuit court, superior
court, or probate court in the jurisdiction in which the officer or
member may be found setting forth the facts of the failure.
(e) Upon the filing of an affidavit under subsection (d), the court
shall promptly issue a summons, and the sheriff of the county within
which the court is sitting shall serve the summons. The summons must
command the officer or member to appear before the department to
provide information to the department or to produce books and records
for the department's use, as the case may be. Disobedience of the
summons constitutes, and is punishable as, a contempt of the court that
issued the summons.
(f) All expenses incident to the filing of an affidavit under
subsection (d) and the issuance and service of a summons shall be
charged to the officer or member against whom the summons is issued,
unless the court finds that the officer or member was acting in good
faith and with reasonable cause. If the court finds that the officer or
member was acting in good faith and with reasonable cause or if an
affidavit is filed and no summons is issued, the expenses shall be
charged against the county in which the affidavit was filed and shall be
allowed by the proper fiscal officers of that county.
(g) The fiscal officer of a civil taxing unit that appeals under section
16 of this chapter for relief from levy limitations shall immediately file
a copy of the appeal petition with the county auditor and the county
treasurer of the county in which the unit is located.
(h) This subsection applies to a civil taxing unit whose budget for
the upcoming year is subject to review by a fiscal body under:
(1) IC 6-1.1-17-20;
(2) IC 6-1.1-17-20.3; or
(3) IC 6-1.1-17-20.4.
SEA 1 — Concur
84
A civil taxing unit described in this subsection may not submit an
appeal under this section unless the civil taxing unit receives approval
from the appropriate fiscal body to submit the appeal.
(i) A participating unit of a fire protection territory may not submit
an appeal under this section unless each participating unit of the fire
protection territory has adopted a resolution approving submission of
the appeal.
SECTION 62. IC 6-1.1-18.5-13, AS AMENDED BY P.L.174-2022,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 13. (a) With respect to an appeal filed under
section 12 of this chapter, the department may find that a civil taxing
unit should receive any one (1) or more of the following types of the
following relief:
(1) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 or 25 of this chapter,
as applicable, if in the judgment of the department the increase is
reasonably necessary due to increased costs of the civil taxing
unit resulting from annexation. consolidation, or other extensions
of governmental services by the civil taxing unit to additional
geographic areas. With respect to annexation, consolidation, or
other extensions of governmental services in a calendar year, If
those increased costs are incurred by the civil taxing unit in that
calendar year and more than one (1) immediately succeeding
calendar year, the unit may appeal under section 12 of this chapter
for permission to increase its levy under this subdivision based on
those increased costs in any of the following:
(A) The first calendar year in which those costs are incurred.
(B) One (1) or more of the immediately succeeding four (4)
calendar years.
(2) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 or 25 of this chapter,
as applicable, if the department finds that the quotient determined
under STEP SIX of the following formula is equal to or greater
than one and two-hundredths (1.02):
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year.
STEP TWO: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the civil taxing
unit's total assessed value of all taxable property divided by the
sum determined under this STEP for the calendar year
immediately preceding the particular calendar year.
SEA 1 — Concur
85
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties divided by
the sum determined under this STEP for the calendar year
immediately preceding the particular calendar year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 or 25 of this chapter, as
applicable, based on the maximum levy growth quotient
determined under section 2 of this chapter.
(3) (2) A levy increase may be granted under this subdivision only
for property taxes first due and payable after December 31, 2008.
Permission to a civil taxing unit to increase its levy in excess of
the limitations established under section 3 or 25 of this chapter,
as applicable, if the department determines that the civil taxing
unit cannot carry out its governmental functions for an ensuing
calendar year under the levy limitations imposed by section 3 or
25 of this chapter, as applicable, due to a natural disaster, an
accident, or another unanticipated emergency.
(b) The department of local government finance shall increase the
maximum permissible ad valorem property tax levy under section 3 of
this chapter for the city of Goshen for 2012 and thereafter by an
amount equal to the greater of zero (0) or the result of:
(1) the city's total pension costs in 2009 for the 1925 police
pension fund (IC 36-8-6) and the 1937 firefighters' pension fund
(IC 36-8-7); minus
(2) the sum of:
(A) the total amount of state funds received in 2009 by the city
and used to pay benefits to members of the 1925 police
pension fund (IC 36-8-6) or the 1937 firefighters' pension fund
(IC 36-8-7); plus
(B) any previous permanent increases to the city's levy that
were authorized to account for the transfer to the state of the
responsibility to pay benefits to members of the 1925 police
SEA 1 — Concur
86
pension fund (IC 36-8-6) and the 1937 firefighters' pension
fund (IC 36-8-7).
SECTION 63. IC 6-1.1-18.5-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2028]: Sec. 19. (a) If a
township levied an ad valorem property tax levy for a township
firefighting fund under IC 36-8-13-4 for calendar year 1989, the
maximum permissible ad valorem property tax levy that will apply to
the township's firefighting fund under section 3 of this chapter for
calendar year 1990 is the amount determined in STEP FIVE of the
following STEPS:
STEP ONE: Determine the part of the township's ad valorem
property tax levy for calendar year 1989 that was dedicated to the
township firefighting fund.
STEP TWO: If the township incurred any loans or bonded
indebtedness to pay for fire protection or emergency services
during the period from January 1, 1987, through December 31,
1989 (excluding loans or bonded indebtedness used to purchase
firefighting apparatus or equipment or housing), determine the
number of calendar years during that period in which the
township incurred the loans or bonded indebtedness.
STEP THREE: Calculate the quotient of:
(A) the total amounts of loans or bonded indebtedness
incurred by the township for fire protection and emergency
services during the period from January 1, 1987, through
December 31, 1989 (excluding loans or bonded indebtedness
used to purchase firefighting apparatus or equipment or
housing); divided by
(B) the number determined in STEP TWO.
STEP FOUR: Add the result determined in STEP ONE to the
result determined in STEP THREE.
STEP FIVE: Calculate the maximum ad valorem property tax levy
that would result from making the calculations contained in
section 3 of this chapter as those calculations apply to the
township, using the result obtained in STEP FOUR for the civil
taxing unit's maximum permissible ad valorem property tax levy
for the preceding calendar year under section 3(a) or 3(b) of this
chapter (as in effect at the time of the calculation), whichever
applies to the township.
If the amount determined under this subsection is substantially lower
than the township's normal expenditure patterns for fire protection and
emergency services (excluding the expenditures for the purchase of
firefighting apparatus or equipment or housing), the township may
SEA 1 — Concur
87
appeal to the local government tax control board for an increase in the
1990 maximum permissible ad valorem property tax levy for its
township firefighting fund. In considering the appeal, the local
government tax control board shall consider other sources of revenue
used by the township during calendar year 1989 to fund fire protection
and emergency services that are also available for such funding in 1990
and thereafter and the board shall also consider any other relevant
factors.
(b) If a township did not have a township firefighting fund under
IC 36-8-13-4 for calendar year 1989, but appropriated funds for fire
protection or emergency services for that calendar year, the township's
maximum ad valorem property tax levy that will apply to the township's
firefighting fund under section 3 of this chapter for calendar year 1990
is the amount determined in STEP FIVE of the following STEPS:
STEP ONE: Determine the amount that the township appropriated
from its general fund for fire protection and emergency services
(excluding appropriations for the purchase of firefighting
apparatus or equipment or housing).
STEP TWO: If the township incurred any loans or bonded
indebtedness to pay for fire protection or emergency services
during the period from January 1, 1987, through December 31,
1989 (excluding loans or bonded indebtedness used to purchase
firefighting apparatus or equipment or housing), determine the
number of calendar years during that period in which the
township incurred the loans or bonded indebtedness.
STEP THREE: Calculate the quotient of:
(A) the total amounts of loans or bonded indebtedness
incurred by the township for fire protection and emergency
services during the period from January 1, 1987, through
December 31, 1989 (excluding loans or bonded indebtedness
used to purchase firefighting apparatus or equipment or
housing); divided by
(B) the number determined in STEP TWO.
STEP FOUR: Add the result of STEP ONE to the result of STEP
THREE.
STEP FIVE: Calculate the maximum ad valorem property tax levy
that would result from making the calculations contained in
section 3 of this chapter, as those calculations apply to the
township, using the result obtained in STEP FOUR for the civil
taxing unit's maximum permissible ad valorem property tax levy
for the preceding calendar year under section 3(a) or 3(b) of this
chapter (as in effect at the time of the calculation), whichever
SEA 1 — Concur
88
applies to the township.
If the amount determined under this subsection is substantially lower
than the township's normal expenditure patterns for fire protection and
emergency services (excluding the expenditures for the purchase of
firefighting apparatus or equipment or housing), the township may
appeal to the local government tax control board for an increase in its
1990 maximum permissible levy for its township firefighting fund. In
considering the appeal, the local government tax control board shall
consider other sources of revenue used by the township during calendar
year 1989 to fund fire protection and emergency services that are also
available for such funding in 1990 and thereafter and the board shall
also consider any other relevant factors.
(c) If for calendar year 1989:
(1) a township had a township firefighting fund under
IC 36-8-13-4 but did not have an ad valorem property tax levy for
that fund; or
(2) a township did not have a township firefighting fund and
appropriated no money for fire protection or emergency services;
the township's maximum permissible ad valorem property tax levy for
its township firefighting fund shall be determined under section 7 of
this chapter in the calendar year in which the township first establishes
such a levy.
SECTION 64. IC 6-1.1-18.5-25, AS AMENDED BY P.L.236-2023,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 25. (a) The ad valorem property tax levy limits
imposed under section 3 of this chapter do not apply to a municipality
in a year if all the following apply:
(1) The percentage growth in the municipality's assessed value for
the preceding year compared to the year before the preceding year
is at least two (2) times the maximum levy growth quotient
determined under section 2 of this chapter for the preceding year.
(2) The municipality's population increased by at least one
hundred fifty percent (150%) between the last two (2) decennial
censuses. The computation of an increase of one hundred fifty
percent (150%) under this subdivision shall be determined
according to the last STEP of the following STEPS:
STEP ONE: Determine the municipality's population as
tabulated following the first decennial census.
STEP TWO: Determine the municipality's population as
tabulated following the second decennial census.
STEP THREE: Multiply the amount determined under STEP
ONE by a factor of two and five-tenths (2.5).
SEA 1 — Concur
89
STEP FOUR: Determine whether the population determined
under STEP TWO is greater than or equal to the STEP THREE
product.
(b) A municipality that meets all the requirements under subsection
(a) may increase its ad valorem property tax levy in excess of the limits
imposed under section 3 of this chapter by a percentage equal to the
lesser of:
(1) the percentage growth in the municipality's assessed value for
the preceding year compared to the year before the preceding
year; or
(2) six percent (6%).
(c) A municipality's maximum levy growth that results from either
annexation or the pass through of assessed value from a tax increment
financing district may not be included for the purposes of determining
a municipality's maximum levy growth under this section.
(d) This section applies to property tax levies imposed after
December 31, 2016, and before January 1, 2026.
(e) This section expires December 31, 2026.
SECTION 65. IC 6-1.1-20-1.1, AS AMENDED BY P.L.136-2024,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1.1. (a) As used in this chapter, "controlled
project" means any project financed by bonds or a lease, except for the
following:
(1) A project for which the political subdivision reasonably
expects to pay:
(A) debt service; or
(B) lease rentals;
from funds other than property taxes that are exempt from the
levy limitations of IC 6-1.1-18.5 or (before January 1, 2009)
IC 20-45-3. A project is not a controlled project even though the
political subdivision has pledged to levy property taxes to pay the
debt service or lease rentals if those other funds are insufficient.
(2) Subject to subsection (b), a project that will not cost the
political subdivision more than the lesser of the following:
(A) An amount equal to the following:
(i) In the case of an ordinance or resolution adopted before
January 1, 2018, making a preliminary determination to
issue bonds or enter into a lease for the project, two million
dollars ($2,000,000).
(ii) In the case of an ordinance or resolution adopted after
December 31, 2017, and before January 1, 2019, making a
preliminary determination to issue bonds or enter into a
SEA 1 — Concur
90
lease for the project, five million dollars ($5,000,000).
(iii) In the case of an ordinance or resolution adopted in a
calendar year after December 31, 2018, making a
preliminary determination to issue bonds or enter into a
lease for the project, an amount (as determined by the
department of local government finance) equal to the result
of the maximum levy growth quotient determined under
IC 6-1.1-18.5-2 for the year multiplied by the amount
determined under this clause for the preceding calendar
year.
The department of local government finance shall publish the
threshold determined under item (iii) in the Indiana Register
under IC 4-22-7-7 not more than sixty (60) days after the date
the budget agency releases the maximum levy growth quotient
for the ensuing year under IC 6-1.1-18.5-2.
(B) An amount equal to the following:
(i) One percent (1%) of the total gross assessed value of
property within the political subdivision on the last
assessment date, if that total gross assessed value is more
than one hundred million dollars ($100,000,000).
(ii) One million dollars ($1,000,000), if the total gross
assessed value of property within the political subdivision
on the last assessment date is not more than one hundred
million dollars ($100,000,000).
(3) A project that is being refinanced for the purpose of providing
gross or net present value savings to taxpayers.
(4) A project for which bonds were issued or leases were entered
into before January 1, 1996, or where the state board of tax
commissioners has approved the issuance of bonds or the
execution of leases before January 1, 1996.
(5) A project that:
(A) is required by a court order holding that a federal law
mandates the project; or
(B) is in response to a court order holding that:
(i) a federal law has been violated; and
(ii) the project is to address the deficiency or violation.
(6) A project that is in response to:
(A) a natural disaster;
(B) an accident; or
(C) an emergency;
in the political subdivision that makes a building or facility
unavailable for its intended use.
SEA 1 — Concur
91
(7) A project that was not a controlled project under this section
as in effect on June 30, 2008, and for which:
(A) the bonds or lease for the project were issued or entered
into before July 1, 2008; or
(B) the issuance of the bonds or the execution of the lease for
the project was approved by the department of local
government finance before July 1, 2008.
(8) A project of the Little Calumet River basin development
commission for which bonds are payable from special
assessments collected under IC 14-13-2-18.6.
(9) A project for engineering, land and right-of-way acquisition,
construction, resurfacing, maintenance, restoration, and
rehabilitation exclusively for or of:
(A) local road and street systems, including bridges that are
designated as being in a local road and street system;
(B) arterial road and street systems, including bridges that are
designated as being in an arterial road and street system; or
(C) any combination of local and arterial road and street
systems, including designated bridges.
(b) This subsection does not apply to a project for which a public
hearing to issue bonds or enter into a lease has been conducted under
IC 20-26-7-37 before July 1, 2023, or to a project for which an
ordinance or resolution making a preliminary determination to
issue bonds or enter into a lease is adopted after June 30, 2025. If:
(1) a political subdivision's total debt service tax rate is more than
forty cents ($0.40) per one hundred dollars ($100) of assessed
value; and
(2) subsection (a)(1) and subsection (a)(3) through (a)(9) are not
applicable;
the term includes any project to be financed by bonds or a lease,
including a project that does not otherwise meet the threshold amount
provided in subsection (a)(2). This subsection expires December 31,
2025. For purposes of this subsection, a political subdivision's total
debt service tax rate does not include a tax rate imposed in a
referendum debt service tax levy approved by voters.
(c) This subsection applies to a project for which an ordinance
or resolution making a preliminary determination to issue bonds
or enter into a lease is adopted after June 30, 2025. If subsection
(a)(1) and subsection (a)(3) through (a)(9) are not applicable, the
term includes any project to be financed by bonds or a lease,
including a project that does not otherwise meet the threshold
amount provided in subsection (a)(2), if:
SEA 1 — Concur
92
(1) in the case of a school corporation, the school
corporation's total debt service tax rate is more than forty
cents ($0.40) per one hundred dollars ($100) of assessed value;
(2) in the case of a city, county, or town, the city's, county's, or
town's total debt service tax rate is more than twenty-five
cents ($0.25) per one hundred dollars ($100) of assessed value;
or
(3) in the case of a political subdivision not described in
subdivision (1) or (2), the political subdivision's total debt
service tax rate is more than five cents ($0.05) per one
hundred dollars ($100) of assessed value.
However, this subsection does not apply to a project for which a
public hearing to issue bonds or enter into a lease has been
conducted under IC 20-26-7-37 before July 1, 2025. For purposes
of this subsection, a political subdivision's total debt service tax
rate does not include a tax rate imposed in a referendum debt
service tax levy approved by voters.
SECTION 66. IC 6-1.1-20-3.1, AS AMENDED BY P.L.136-2024,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3.1. (a) Subject to section 3.5(a)(1)(C) of this
chapter, this section applies only to the following:
(1) A controlled project (as defined in section 1.1 of this chapter
as in effect June 30, 2008) for which the proper officers of a
political subdivision make a preliminary determination in the
manner described in subsection (b) before July 1, 2008.
(2) An elementary school building, middle school building, high
school building, or other school building for academic instruction
that:
(A) is a controlled project;
(B) will be used for any combination of kindergarten through
grade 12; and
(C) will not cost more than the lesser of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is ten
million dollars ($10,000,000). In the case of an ordinance or
resolution adopted after December 31, 2017, and before
January 1, 2019, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is fifteen million dollars ($15,000,000). In the case
of an ordinance or resolution adopted in a calendar year after
SEA 1 — Concur
93
December 31, 2018, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is an amount (as determined by the department of
local government finance) equal to the result of the
maximum levy growth quotient determined under
IC 6-1.1-18.5-2 for the year multiplied by the threshold
amount determined under this item for the preceding
calendar year. In the case of a threshold amount determined
under this item that applies for a calendar year after
December 31, 2018, the department of local government
finance shall publish the threshold in the Indiana Register
under IC 4-22-7-7 not more than sixty (60) days after the
date the budget agency releases the maximum levy growth
quotient for the ensuing year under IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision
on the last assessment date, if that total gross assessed value
is more than one billion dollars ($1,000,000,000), or ten
million dollars ($10,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one billion dollars
($1,000,000,000).
(3) Any other controlled project that:
(A) is not a controlled project described in subdivision (1) or
(2); and
(B) will not cost the political subdivision more than the lesser
of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is
twelve million dollars ($12,000,000). In the case of an
ordinance or resolution adopted after December 31, 2017,
and before January 1, 2019, making a preliminary
determination to issue bonds or enter into a lease for the
project, the threshold amount is fifteen million dollars
($15,000,000). In the case of an ordinance or resolution
adopted in a calendar year after December 31, 2018, making
a preliminary determination to issue bonds or enter into a
lease for the project, the threshold amount is an amount (as
determined by the department of local government finance)
equal to the result of the maximum levy growth quotient
SEA 1 — Concur
94
determined under IC 6-1.1-18.5-2 for the year multiplied by
the threshold amount determined under this item for the
preceding calendar year. In the case of a threshold amount
determined under this item that applies for a calendar year
after December 31, 2018, the department of local
government finance shall publish the threshold in the
Indiana Register under IC 4-22-7-7 not more than sixty (60)
days after the date the budget agency releases the maximum
levy growth quotient for the ensuing year under
IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision
on the last assessment date, if that total gross assessed value
is more than one hundred million dollars ($100,000,000), or
one million dollars ($1,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one hundred million
dollars ($100,000,000).
(4) A controlled project funded by debt service if the scope of the
project changes from the purpose of the project initially
advertised to taxpayers as determined under section 4.2(c) of this
chapter.
(5) This subdivision does not apply to a project for which a public
hearing to issue bonds or enter into a lease has been conducted
under IC 20-26-7-37 before July 1, 2023, or to a project for
which an ordinance or resolution making a preliminary
determination to issue bonds or enter into a lease is adopted
after June 30, 2025. Any other controlled project if both of the
following apply:
(A) The political subdivision's total debt service tax rate is
more than forty cents ($0.40) per one hundred dollars ($100)
of assessed value, but less than eighty cents ($0.80) per one
hundred dollars ($100) of assessed value.
(B) The controlled project is not otherwise described in section
3.5(a)(1) of this chapter.
This subdivision expires December 31, 2025. For purposes of this
subdivision, a political subdivision's total debt service tax rate
does not include a tax rate imposed in a referendum debt service
levy approved by voters.
(6) Any other controlled project if the following apply:
(A) An ordinance or resolution making a preliminary
determination to issue bonds or enter into a lease for the
SEA 1 — Concur
95
project is adopted after June 30, 2025.
(B) The controlled project is not otherwise described in
section 3.5(a)(1) of this chapter.
(C) In the case of a:
(i) school corporation, the school corporation's total debt
service tax rate is more than forty cents ($0.40) per one
hundred dollars ($100) of assessed value, but not more
than seventy cents ($0.70) per one hundred dollars
($100) of assessed value;
(ii) city, county, or town, the city's, county's, or town's
total debt service tax rate is more than twenty-five cents
($0.25) per one hundred dollars ($100) of assessed value,
but not more than forty cents ($0.40) per one hundred
dollars ($100) of assessed value; or
(iii) political subdivision not described in item (i) or (ii),
the political subdivision's total debt service tax rate is
more than five cents ($0.05) per one hundred dollars
($100) of assessed value, but not more than ten cents
($0.10) per one hundred dollars ($100) of assessed value.
However, this subdivision does not apply to a project for
which a public hearing to issue bonds or enter into a lease has
been conducted under IC 20-26-7-37 before July 1, 2025. For
purposes of this subdivision, a political subdivision's total debt
service tax rate does not include a tax rate imposed in a
referendum debt service tax levy approved by voters.
(b) A political subdivision may not impose property taxes to pay
debt service on bonds or lease rentals on a lease for a controlled project
without completing the following procedures:
(1) The proper officers of a political subdivision shall publish
notice in accordance with IC 5-3-1 and send notice by first class
mail to the circuit court clerk and to any organization that delivers
to the officers, before January 1 of that year, an annual written
request for such notices of any meeting to consider adoption of a
resolution or an ordinance making a preliminary determination to
issue bonds or enter into a lease and shall conduct at least two (2)
public hearings on a preliminary determination before adoption
of the resolution or ordinance. The political subdivision must at
each of the public hearings on the preliminary determination
allow the public to testify regarding the preliminary determination
and must make the following information available to the public
at each of the public hearings on the preliminary determination,
in addition to any other information required by law:
SEA 1 — Concur
96
(A) The result of the political subdivision's current and
projected annual debt service payments divided by the net
assessed value of taxable property within the political
subdivision.
(B) The result of:
(i) the sum of the political subdivision's outstanding long
term debt plus the outstanding long term debt of other taxing
units that include any of the territory of the political
subdivision; divided by
(ii) the net assessed value of taxable property within the
political subdivision.
(C) The information specified in subdivision (3)(A) through
(3)(H).
(2) When the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease for
a controlled project, the officers shall give notice of the
preliminary determination by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the circuit court clerk and to the
organizations described in subdivision (1).
(3) A notice under subdivision (2) of the preliminary
determination of the political subdivision to issue bonds or enter
into a lease for a controlled project must include the following
information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the
maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that any owners of property within the
political subdivision or registered voters residing within the
political subdivision who want to initiate a petition and
remonstrance process against the proposed debt service or
lease payments must file a petition that complies with
subdivisions (4) and (5) not later than thirty (30) days after
publication in accordance with IC 5-3-1.
(F) With respect to bonds issued or a lease entered into to
open:
(i) a new school facility; or
(ii) an existing facility that has not been used for at least
three (3) years and that is being reopened to provide
SEA 1 — Concur
97
additional classroom space;
the estimated costs the school corporation expects to incur
annually to operate the facility.
(G) A statement of whether the school corporation expects to
appeal for a new facility adjustment (as defined in
IC 20-45-1-16 (repealed) before January 1, 2009) for an
increased maximum permissible tuition support levy to pay the
estimated costs described in clause (F).
(H) The following information:
(i) The political subdivision's current debt service levy and
rate.
(ii) The estimated increase to the political subdivision's debt
service levy and rate that will result if the political
subdivision issues the bonds or enters into the lease.
(iii) The estimated amount of the political subdivision's debt
service levy and rate that will result during the following ten
(10) years if the political subdivision issues the bonds or
enters into the lease, after also considering any changes that
will occur to the debt service levy and rate during that
period on account of any outstanding bonds or lease
obligations that will mature or terminate during that period.
(I) The information specified in subdivision (1)(A) through
(1)(B).
(4) After notice is given, a petition requesting the application of
a petition and remonstrance process may be filed by the lesser of:
(A) five hundred (500) persons who are either owners of
property within the political subdivision or registered voters
residing within the political subdivision; or
(B) five percent (5%) of the registered voters residing within
the political subdivision.
(5) The state board of accounts shall design and, upon request by
the county voter registration office, deliver to the county voter
registration office or the county voter registration office's
designated printer the petition forms to be used solely in the
petition process described in this section. The county voter
registration office shall issue to an owner or owners of property
within the political subdivision or a registered voter residing
within the political subdivision the number of petition forms
requested by the owner or owners or the registered voter. Each
form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of property or
SEA 1 — Concur
98
registered voters;
(B) the carrier must be a signatory on at least one (1) petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier
witnessed each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may be required to identify themselves
as owners of property or registered voters and may be allowed to
pick up additional copies to distribute to other owners of property
or registered voters. Each person signing a petition must indicate
whether the person is signing the petition as a registered voter
within the political subdivision or is signing the petition as the
owner of property within the political subdivision. A person who
signs a petition as a registered voter must indicate the address at
which the person is registered to vote. A person who signs a
petition as an owner of property must indicate the address of the
property owned by the person in the political subdivision.
(6) Each petition must be verified under oath by at least one (1)
qualified petitioner in a manner prescribed by the state board of
accounts before the petition is filed with the county voter
registration office under subdivision (7).
(7) Each petition must be filed with the county voter registration
office not more than thirty (30) days after publication under
subdivision (2) of the notice of the preliminary determination.
(8) The county voter registration office shall determine whether
each person who signed the petition is a registered voter.
However, after the county voter registration office has determined
that at least five hundred twenty-five (525) persons who signed
the petition are registered voters within the political subdivision,
the county voter registration office is not required to verify
whether the remaining persons who signed the petition are
registered voters. If the county voter registration office does not
determine that at least five hundred twenty-five (525) persons
who signed the petition are registered voters, the county voter
registration office shall, not more than fifteen (15) business days
after receiving a petition, forward a copy of the petition to the
county auditor. Not more than ten (10) business days after
receiving the copy of the petition, the county auditor shall provide
to the county voter registration office a statement verifying:
(A) whether a person who signed the petition as a registered
voter but is not a registered voter, as determined by the county
voter registration office, is the owner of property in the
SEA 1 — Concur
99
political subdivision; and
(B) whether a person who signed the petition as an owner of
property within the political subdivision does in fact own
property within the political subdivision.
(9) The county voter registration office, not more than ten (10)
business days after determining that at least five hundred
twenty-five (525) persons who signed the petition are registered
voters or receiving the statement from the county auditor under
subdivision (8), as applicable, shall make the final determination
of the number of petitioners that are registered voters in the
political subdivision and, based on the statement provided by the
county auditor, the number of petitioners that own property within
the political subdivision. Whenever the name of an individual
who signs a petition form as a registered voter contains a minor
variation from the name of the registered voter as set forth in the
records of the county voter registration office, the signature is
presumed to be valid, and there is a presumption that the
individual is entitled to sign the petition under this section. Except
as otherwise provided in this chapter, in determining whether an
individual is a registered voter, the county voter registration office
shall apply the requirements and procedures used under IC 3 to
determine whether a person is a registered voter for purposes of
voting in an election governed by IC 3. However, an individual is
not required to comply with the provisions concerning providing
proof of identification to be considered a registered voter for
purposes of this chapter. A person is entitled to sign a petition
only one (1) time in a particular petition and remonstrance
process under this chapter, regardless of whether the person owns
more than one (1) parcel of real property, mobile home assessed
as personal property, or manufactured home assessed as personal
property, or a combination of those types of property within the
subdivision and regardless of whether the person is both a
registered voter in the political subdivision and the owner of
property within the political subdivision. Notwithstanding any
other provision of this section, if a petition is presented to the
county voter registration office within forty-five (45) days before
an election, the county voter registration office may defer acting
on the petition, and the time requirements under this section for
action by the county voter registration office do not begin to run
until five (5) days after the date of the election.
(10) The county voter registration office must file a certificate and
each petition with:
SEA 1 — Concur
100
(A) the township trustee, if the political subdivision is a
township, who shall present the petition or petitions to the
township board; or
(B) the body that has the authority to authorize the issuance of
the bonds or the execution of a lease, if the political
subdivision is not a township;
within thirty-five (35) business days of the filing of the petition
requesting a petition and remonstrance process. The certificate
must state the number of petitioners that are owners of property
within the political subdivision and the number of petitioners who
are registered voters residing within the political subdivision.
If a sufficient petition requesting a petition and remonstrance process
is not filed by owners of property or registered voters as set forth in this
section, the political subdivision may issue bonds or enter into a lease
by following the provisions of law relating to the bonds to be issued or
lease to be entered into.
(c) A political subdivision may not divide a controlled project in
order to avoid the requirements of this section and section 3.2 of this
chapter. A person that owns property within a political subdivision or
a person that is a registered voter residing within a political subdivision
may file a petition with the department of local government finance
objecting that the political subdivision has divided a controlled project
in order to avoid the requirements of this section and section 3.2 of this
chapter. The petition must be filed not more than ten (10) days after the
political subdivision gives notice of the political subdivision's decision
to issue bonds or enter into leases for a capital project that the person
believes is the result of a division of a controlled project that is
prohibited by this subsection. If the department of local government
finance receives a petition under this subsection, the department shall
not later than thirty (30) days after receiving the petition make a final
determination on the issue of whether the political subdivision divided
a controlled project in order to avoid the requirements of this section
and section 3.2 of this chapter. If the department of local government
finance determines that a political subdivision divided a controlled
project in order to avoid the requirements of this section and section
3.2 of this chapter and the political subdivision continues to desire to
proceed with the project, the political subdivision shall fulfill the
requirements of this section and section 3.2 of this chapter, if
applicable, regardless of the cost of the project in dispute. A political
subdivision shall be considered to have divided a capital project in
order to avoid the requirements of this section and section 3.2 of this
chapter if the result of one (1) or more of the subprojects cannot
SEA 1 — Concur
101
reasonably be considered an independently desirable end in itself
without reference to another capital project. This subsection does not
prohibit a political subdivision from undertaking a series of capital
projects in which the result of each capital project can reasonably be
considered an independently desirable end in itself without reference
to another capital project.
SECTION 67. IC 6-1.1-20-3.5, AS AMENDED BY P.L.136-2024,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3.5. (a) This section applies only to a controlled
project that meets the following conditions:
(1) The controlled project is described in one (1) of the following
categories:
(A) An elementary school building, middle school building,
high school building, or other school building for academic
instruction that will be used for any combination of
kindergarten through grade 12 and will cost more than the
lesser of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is ten
million dollars ($10,000,000). In the case of an ordinance or
resolution adopted after December 31, 2017, and before
January 1, 2019, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is fifteen million dollars ($15,000,000). In the case
of an ordinance or resolution adopted in a calendar year after
December 31, 2018, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is an amount (as determined by the department of
local government finance) equal to the result of the
maximum levy growth quotient determined under
IC 6-1.1-18.5-2 for the year multiplied by the threshold
amount determined under this item for the preceding
calendar year. In the case of a threshold amount determined
under this item that applies for a calendar year after
December 31, 2018, the department of local government
finance shall publish the threshold in the Indiana Register
under IC 4-22-7-7 not more than sixty (60) days after the
date the budget agency releases the maximum levy growth
quotient for the ensuing year under IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
SEA 1 — Concur
102
assessed value of property within the political subdivision
on the last assessment date, if that total gross assessed value
is more than one billion dollars ($1,000,000,000), or ten
million dollars ($10,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one billion dollars
($1,000,000,000).
(B) Any other controlled project that is not a controlled project
described in clause (A) and will cost the political subdivision
more than the lesser of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is
twelve million dollars ($12,000,000). In the case of an
ordinance or resolution adopted after December 31, 2017,
and before January 1, 2019, making a preliminary
determination to issue bonds or enter into a lease for the
project, the threshold amount is fifteen million dollars
($15,000,000). In the case of an ordinance or resolution
adopted in a calendar year after December 31, 2018, making
a preliminary determination to issue bonds or enter into a
lease for the project, the threshold amount is an amount (as
determined by the department of local government finance)
equal to the result of the maximum levy growth quotient
determined under IC 6-1.1-18.5-2 for the year multiplied by
the threshold amount determined under this item for the
preceding calendar year. In the case of a threshold amount
determined under this item that applies for a calendar year
after December 31, 2018, the department of local
government finance shall publish the threshold in the
Indiana Register under IC 4-22-7-7 not more than sixty (60)
days after the date the budget agency releases the maximum
levy growth quotient for the ensuing year under
IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision
on the last assessment date, if that total gross assessed value
is more than one hundred million dollars ($100,000,000), or
one million dollars ($1,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one hundred million
SEA 1 — Concur
103
dollars ($100,000,000).
(C) Any other controlled project for which a political
subdivision adopts an ordinance or resolution making a
preliminary determination to issue bonds or enter into a lease
for the project, if the sum of:
(i) the cost of that controlled project; plus
(ii) the costs of all other controlled projects for which the
political subdivision has previously adopted within the
preceding three hundred sixty-five (365) days an ordinance
or resolution making a preliminary determination to issue
bonds or enter into a lease for those other controlled
projects;
exceeds twenty-five million dollars ($25,000,000).
(D) A controlled project funded by debt service if the scope of
the project changes from the purpose of the project initially
advertised to taxpayers as determined under section 4.3(c) of
this chapter.
(E) This clause does not apply to a project for which a public
hearing to issue bonds or enter into a lease has been conducted
under IC 20-26-7-37 before July 1, 2023, or to a project for
which an ordinance or resolution making a preliminary
determination to issue bonds or enter into a lease is
adopted after June 30, 2025. Except as provided in section
4.5 of this chapter, any other controlled project if the political
subdivision's total debt service tax rate is at least eighty cents
($0.80) per one hundred dollars ($100) of assessed value. This
clause expires December 31, 2025. For purposes of this clause,
a political subdivision's total debt service tax rate does not
include a tax rate imposed in a referendum debt service tax
levy approved by voters.
(F) Except as provided in section 4.5 of this chapter, any
other project for which an ordinance or resolution making
a preliminary determination to issue bonds or enter into a
lease is adopted after June 30, 2025, if:
(i) in the case of a school corporation, the school
corporation's total debt service tax rate is more than
seventy cents ($0.70) per one hundred dollars ($100) of
assessed value;
(ii) in the case of a city, county, or town, the city's,
county's, or town's total debt service tax rate is more
than forty cents ($0.40) per one hundred dollars ($100)
of assessed value; or
SEA 1 — Concur
104
(iii) in the case of a political subdivision not described in
item (i) or (ii), the political subdivision's total debt
service tax rate is more than ten cents ($0.10) per one
hundred dollars ($100) of assessed value.
However, this clause does not apply to a project for which
a public hearing to issue bonds or enter into a lease has
been conducted under IC 20-26-7-37 before July 1, 2025.
For purposes of this clause, a political subdivision's total
debt service tax rate does not include a tax rate imposed in
a referendum debt service tax levy approved by voters.
(2) The proper officers of the political subdivision make a
preliminary determination after June 30, 2008, in the manner
described in subsection (b) to issue bonds or enter into a lease for
the controlled project.
(b) Subject to subsection (d), a political subdivision may not impose
property taxes to pay debt service on bonds or lease rentals on a lease
for a controlled project without completing the following procedures:
(1) The proper officers of a political subdivision shall publish
notice in accordance with IC 5-3-1 and send notice by first class
mail to the circuit court clerk and to any organization that delivers
to the officers, before January 1 of that year, an annual written
request for notices of any meeting to consider the adoption of an
ordinance or a resolution making a preliminary determination to
issue bonds or enter into a lease and shall conduct at least two (2)
public hearings on the preliminary determination before adoption
of the ordinance or resolution. The political subdivision must at
each of the public hearings on the preliminary determination
allow the public to testify regarding the preliminary determination
and must make the following information available to the public
at each of the public hearings on the preliminary determination,
in addition to any other information required by law:
(A) The result of the political subdivision's current and
projected annual debt service payments divided by the net
assessed value of taxable property within the political
subdivision.
(B) The result of:
(i) the sum of the political subdivision's outstanding long
term debt plus the outstanding long term debt of other taxing
units that include any of the territory of the political
subdivision; divided by
(ii) the net assessed value of taxable property within the
political subdivision.
SEA 1 — Concur
105
(C) The information specified in subdivision (3)(A) through
(3)(G).
(2) If the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
officers shall give notice of the preliminary determination by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the circuit court clerk and to the
organizations described in subdivision (1).
(3) A notice under subdivision (2) of the preliminary
determination of the political subdivision to issue bonds or enter
into a lease must include the following information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the
maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that the proposed debt service or lease
payments must be approved in an election on a local public
question held under section 3.6 of this chapter.
(F) With respect to bonds issued or a lease entered into to
open:
(i) a new school facility; or
(ii) an existing facility that has not been used for at least
three (3) years and that is being reopened to provide
additional classroom space;
the estimated costs the school corporation expects to annually
incur to operate the facility.
(G) The following information:
(i) The political subdivision's current debt service levy and
rate.
(ii) The estimated increase to the political subdivision's debt
service levy and rate that will result if the political
subdivision issues the bonds or enters into the lease.
(iii) The estimated amount of the political subdivision's debt
service levy and rate that will result during the following ten
(10) years if the political subdivision issues the bonds or
enters into the lease, after also considering any changes that
will occur to the debt service levy and rate during that
period on account of any outstanding bonds or lease
obligations that will mature or terminate during that period.
(H) The information specified in subdivision (1)(A) through
SEA 1 — Concur
106
(1)(B).
(4) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). After notice is given, a petition requesting
the application of the local public question process under section
3.6 of this chapter may be filed by the lesser of:
(A) five hundred (500) persons who are either owners of
property within the political subdivision or registered voters
residing within the political subdivision; or
(B) five percent (5%) of the registered voters residing within
the political subdivision.
(5) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). The state board of accounts shall design
and, upon request by the county voter registration office, deliver
to the county voter registration office or the county voter
registration office's designated printer the petition forms to be
used solely in the petition process described in this section. The
county voter registration office shall issue to an owner or owners
of property within the political subdivision or a registered voter
residing within the political subdivision the number of petition
forms requested by the owner or owners or the registered voter.
Each form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of property or
registered voters;
(B) the carrier must be a signatory on at least one (1) petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier
witnessed each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may be required to identify themselves
as owners of property or registered voters and may be allowed to
pick up additional copies to distribute to other owners of property
or registered voters. Each person signing a petition must indicate
whether the person is signing the petition as a registered voter
within the political subdivision or is signing the petition as the
owner of property within the political subdivision. A person who
signs a petition as a registered voter must indicate the address at
which the person is registered to vote. A person who signs a
petition as an owner of property must indicate the address of the
property owned by the person in the political subdivision.
SEA 1 — Concur
107
(6) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). Each petition must be verified under oath
by at least one (1) qualified petitioner in a manner prescribed by
the state board of accounts before the petition is filed with the
county voter registration office under subdivision (7).
(7) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). Each petition must be filed with the county
voter registration office not more than thirty (30) days after
publication under subdivision (2) of the notice of the preliminary
determination.
(8) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). The county voter registration office shall
determine whether each person who signed the petition is a
registered voter. However, after the county voter registration
office has determined that at least five hundred twenty-five (525)
persons who signed the petition are registered voters within the
political subdivision, the county voter registration office is not
required to verify whether the remaining persons who signed the
petition are registered voters. If the county voter registration
office does not determine that at least five hundred twenty-five
(525) persons who signed the petition are registered voters, the
county voter registration office, not more than fifteen (15)
business days after receiving a petition, shall forward a copy of
the petition to the county auditor. Not more than ten (10) business
days after receiving the copy of the petition, the county auditor
shall provide to the county voter registration office a statement
verifying:
(A) whether a person who signed the petition as a registered
voter but is not a registered voter, as determined by the county
voter registration office, is the owner of property in the
political subdivision; and
(B) whether a person who signed the petition as an owner of
property within the political subdivision does in fact own
property within the political subdivision.
(9) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). The county voter registration office, not
more than ten (10) business days after determining that at least
five hundred twenty-five (525) persons who signed the petition
SEA 1 — Concur
108
are registered voters or after receiving the statement from the
county auditor under subdivision (8), as applicable, shall make
the final determination of whether a sufficient number of persons
have signed the petition. Whenever the name of an individual who
signs a petition form as a registered voter contains a minor
variation from the name of the registered voter as set forth in the
records of the county voter registration office, the signature is
presumed to be valid, and there is a presumption that the
individual is entitled to sign the petition under this section. Except
as otherwise provided in this chapter, in determining whether an
individual is a registered voter, the county voter registration office
shall apply the requirements and procedures used under IC 3 to
determine whether a person is a registered voter for purposes of
voting in an election governed by IC 3. However, an individual is
not required to comply with the provisions concerning providing
proof of identification to be considered a registered voter for
purposes of this chapter. A person is entitled to sign a petition
only one (1) time in a particular referendum process under this
chapter, regardless of whether the person owns more than one (1)
parcel of real property, mobile home assessed as personal
property, or manufactured home assessed as personal property or
a combination of those types of property within the political
subdivision and regardless of whether the person is both a
registered voter in the political subdivision and the owner of
property within the political subdivision. Notwithstanding any
other provision of this section, if a petition is presented to the
county voter registration office within forty-five (45) days before
an election, the county voter registration office may defer acting
on the petition, and the time requirements under this section for
action by the county voter registration office do not begin to run
until five (5) days after the date of the election.
(10) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). The county voter registration office must
file a certificate and each petition with:
(A) the township trustee, if the political subdivision is a
township, who shall present the petition or petitions to the
township board; or
(B) the body that has the authority to authorize the issuance of
the bonds or the execution of a lease, if the political
subdivision is not a township;
within thirty-five (35) business days of the filing of the petition
SEA 1 — Concur
109
requesting the referendum process. The certificate must state the
number of petitioners who are owners of property within the
political subdivision and the number of petitioners who are
registered voters residing within the political subdivision.
(11) This subdivision does not apply to a controlled project
described in subsection (a)(1)(E) (before its expiration) or
subsection (a)(1)(F). If a sufficient petition requesting the local
public question process is not filed by owners of property or
registered voters as set forth in this section, the political
subdivision may issue bonds or enter into a lease by following the
provisions of law relating to the bonds to be issued or lease to be
entered into.
(c) If the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
officers shall provide to the county auditor:
(1) a copy of the notice required by subsection (b)(2); and
(2) any other information the county auditor requires to fulfill the
county auditor's duties under section 3.6 of this chapter.
(d) In addition to the procedures in subsection (b), if any capital
improvement components addressed in the most recent:
(1) threat assessment of the buildings within the school
corporation; or
(2) school safety plan (as described in IC 20-26-18.2-2(b));
concerning a particular school have not been completed or require
additional funding to be completed, before the school corporation may
impose property taxes to pay debt service on bonds or lease rentals for
a lease for a controlled project, and in addition to any other components
of the controlled project, the controlled project must include any capital
improvements necessary to complete those components described in
subdivisions (1) and (2) that have not been completed or that require
additional funding to be completed.
(e) In addition to the other procedures in this section, an ordinance
or resolution making a preliminary determination to issue bonds or
enter into leases that is considered for adoption must include a
statement of:
(1) the maximum annual debt service for the controlled project for
each year in which the debt service will be paid; and
(2) the schedule of the estimated annual tax levy and rate over a
ten (10) year period;
factoring in changes that will occur to the debt service levy and tax rate
during the period on account of any outstanding bonds or lease
obligations that will mature or terminate during the period.
SEA 1 — Concur
110
SECTION 68. IC 6-1.1-20-3.6, AS AMENDED BY P.L.136-2024,
SECTION 25, AND AS AMENDED BY P.L.156-2024, SECTION 17,
AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
Sec. 3.6. (a) Except as provided in sections 3.7 and 3.8 of this chapter,
this section applies only to a controlled project described in section
3.5(a) of this chapter.
(b) In the case of a controlled project:
(1) described in section 3.5(a)(1)(A) through 3.5(a)(1)(C) of this
chapter, if a sufficient petition requesting the application of the
local public question process has been filed as set forth in section
3.5 of this chapter; or
(2) described in section 3.5(a)(1)(D) 3.5(a)(1)(E) (before its
expiration) or 3.5(a)(1)(F) of this chapter; (before its expiration);
a political subdivision may not impose property taxes to pay debt
service on bonds or lease rentals on a lease for a controlled project
unless the political subdivision's proposed debt service or lease rental
is approved in an election on a local public question held under this
section.
(c) Except as provided in subsection (k), the following question
shall be submitted to the eligible voters at the election conducted under
this section:
"Shall ________ (insert the name of the political subdivision)
increase property taxes paid to the _______ (insert the type of
taxing unit) by homeowners and businesses? If this public
question is approved by the voters, the average property tax paid
to the _______ (insert the type of taxing unit) per year on a
residence would increase by ______% (insert the estimated
average percentage of property tax increase paid to the political
subdivision on a residence within the political subdivision as
determined under subsection (n)) and the average property tax
paid to the _____ (insert the type of taxing unit) per year on a
business property would increase by ______% (insert the
estimated average percentage of property tax increase paid to the
political subdivision on a business property within the political
subdivision as determined under subsection (o)). The political
subdivision may issue bonds or enter into a lease to ________
(insert a brief description of the controlled project), which is
estimated to cost _______ (insert the total cost of the project)
over ______ (insert number of years to bond maturity or
termination of lease) years. The most recent property tax
SEA 1 — Concur
111
referendum within the boundaries of the political subdivision for
which this public question is being considered was proposed by
________ (insert name of political subdivision) in ______ (insert
year of most recent property tax referendum) and ________
(insert whether the measure passed or failed).".
"Shall ________ (insert the name of the political subdivision)
increase property taxes paid to the _______ (insert the type of
political subdivision) for no more than ______ (insert the
number of years immediately following the holding of the
referendum) years for the purpose of funding _______ (insert
a brief description of the project use or purpose) for which the
principal debt amount for the project will cost no more than
______ (insert the total cost of the project principal amount)
and the financing cost including interest and fees will cost no
more than an additional ______ (insert the total financing
costs including interest and fees) and is estimated to increase
the property taxes paid to the ______ (insert the type of
political subdivision) by imposing a property tax rate that
results in a maximum annual amount that does not exceed
______ (insert maximum amount of annual levy). If this
capital referendum public question is approved by the voters,
for a median residence of ______ (insert the political
subdivision's median household assessed value, rounded up to
the next fifty thousand dollars ($50,000)), the property's
annual property tax bill would increase by ______ (insert
dollar amount, rounded up to the next whole dollar) per
year.".
The public question must appear on the ballot in the form approved by
the county election board. If the political subdivision proposing to issue
bonds or enter into a lease is located in more than one (1) county, the
county election board of each county shall jointly approve the form of
the public question that will appear on the ballot in each county. The
form approved by the county election board may differ from the
language certified to the county election board by the county auditor.
If the county election board approves the language of a public question
under this subsection, the county election board shall submit the
language and the certification of the county auditor described in
subsection (p) to the department of local government finance for
review.
(d) The department of local government finance shall review the
language of the public question to evaluate whether the description of
the controlled project is accurate and is not biased against either a vote
SEA 1 — Concur
112
in favor of the controlled project or a vote against the controlled
project. The department of local government finance shall post the
estimated average percentage of property tax increases to be paid to a
political subdivision on a residence and business property that are
certified by the county auditor under subsection (p) on the department's
Internet web site. website. The department of local government finance
may either approve the ballot language as submitted or recommend that
the ballot language be modified as necessary to ensure that the
description of the controlled project is accurate and is not biased. The
department of local government finance shall certify its approval or
recommendations to the county auditor and the county election board
not more than ten (10) days after both the certification of the county
auditor described in subsection (p) and the language of the public
question is are submitted to the department for review. If the
department of local government finance recommends a modification to
the ballot language, the county election board shall, after reviewing the
recommendations of the department of local government finance,
submit modified ballot language to the department for the department's
approval or recommendation of any additional modifications. The
public question may not be certified by the county auditor under
subsection (e) unless the department of local government finance has
first certified the department's final approval of the ballot language for
the public question.
(e) The county auditor shall certify the finally approved public
question under IC 3-10-9-3 to the county election board of each county
in which the political subdivision is located. The certification must
occur not later than noon August 1.
(1) seventy-four (74) days before a primary election if the public
question is to be placed on the primary or municipal primary
election ballot; or
(2) August 1 if the public question is to be placed on the general
or municipal election ballot.
Subject to the certification requirements and deadlines under this
subsection and except as provided in subsection (j), the public question
shall be placed on the ballot at the next primary election, general
election. or municipal election in which all voters of the political
subdivision are entitled to vote. However, if a primary election, general
election, or municipal election will not be held during the first year in
which the public question is eligible to be placed on the ballot under
this section and if the political subdivision requests the public question
to be placed on the ballot at a special election, the public question shall
be placed on the ballot at a special election to be held on the first
SEA 1 — Concur
113
Tuesday after the first Monday in May or November of the year. The
certification must occur not later than noon seventy-four (74) days
before a special election to be held in May (if the special election is to
be held in May) or noon on August 1 (if the special election is to be
held in November). The fiscal body of the political subdivision that
requests the special election shall pay the costs of holding the special
election. The county election board shall give notice under IC 5-3-1 of
a special election conducted under this subsection. A special election
conducted under this subsection is under the direction of the county
election board. The county election board shall take all steps necessary
to carry out the special election.
(f) The circuit court clerk shall certify the results of the public
question to the following:
(1) The county auditor of each county in which the political
subdivision is located.
(2) The department of local government finance.
(g) Subject to the requirements of IC 6-1.1-18.5-8, the political
subdivision may issue the proposed bonds or enter into the proposed
lease rental if a majority of the eligible voters voting on the public
question vote in favor of the public question.
(h) If a majority of the eligible voters voting on the public question
vote in opposition to the public question, both of the following apply:
(1) The political subdivision may not issue the proposed bonds or
enter into the proposed lease rental.
(2) Another public question under this section on the same or a
substantially similar project may not be submitted to the voters
earlier than:
(A) except as provided in clause (B), seven hundred (700)
days after the date of the public question; or
(B) three hundred fifty (350) days after the date of the election,
if a petition that meets the requirements of subsection (m) is
submitted to the county auditor.
(i) IC 3, to the extent not inconsistent with this section, applies to an
election held under this section.
(j) A political subdivision may not divide a controlled project in
order to avoid the requirements of this section and section 3.5 of this
chapter. A person that owns property within a political subdivision or
a person that is a registered voter residing within a political subdivision
may file a petition with the department of local government finance
objecting that the political subdivision has divided a controlled project
into two (2) or more capital projects in order to avoid the requirements
of this section and section 3.5 of this chapter. The petition must be filed
SEA 1 — Concur
114
not more than ten (10) days after the political subdivision gives notice
of the political subdivision's decision under section 3.5 of this chapter
or a determination under section 5 of this chapter to issue bonds or
enter into leases for a capital project that the person believes is the
result of a division of a controlled project that is prohibited by this
subsection. If the department of local government finance receives a
petition under this subsection, the department shall not later than thirty
(30) days after receiving the petition make a final determination on the
issue of whether the political subdivision divided a controlled project
in order to avoid the requirements of this section and section 3.5 of this
chapter. If the department of local government finance determines that
a political subdivision divided a controlled project in order to avoid the
requirements of this section and section 3.5 of this chapter and the
political subdivision continues to desire to proceed with the project, the
political subdivision may appeal the determination of the department
of local government finance to the Indiana board of tax review. A
political subdivision shall be considered to have divided a capital
project in order to avoid the requirements of this section and section
3.5 of this chapter if the result of one (1) or more of the subprojects
cannot reasonably be considered an independently desirable end in
itself without reference to another capital project. This subsection does
not prohibit a political subdivision from undertaking a series of capital
projects in which the result of each capital project can reasonably be
considered an independently desirable end in itself without reference
to another capital project.
(k) This subsection applies to a political subdivision for which a
petition requesting a public question has been submitted under section
3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
the political subdivision may adopt a resolution to withdraw a
controlled project from consideration in a public question. If the
legislative body provides a certified copy of the resolution to the county
auditor and the county election board not later than sixty-three (63)
days before the election at which the public question would be on the
ballot, the public question on the controlled project shall not be placed
on the ballot and the public question on the controlled project shall not
be held, regardless of whether the county auditor has certified the
public question to the county election board. If the withdrawal of a
public question under this subsection requires the county election
board to reprint ballots, the political subdivision withdrawing the
public question shall pay the costs of reprinting the ballots. If a political
subdivision withdraws a public question under this subsection that
would have been held at a special election and the county election
SEA 1 — Concur
115
board has printed the ballots before the legislative body of the political
subdivision provides a certified copy of the withdrawal resolution to
the county auditor and the county election board, the political
subdivision withdrawing the public question shall pay the costs
incurred by the county in printing the ballots. If a public question on a
controlled project is withdrawn under this subsection, a public question
under this section on the same controlled project or a substantially
similar controlled project may not be submitted to the voters earlier
than three hundred fifty (350) days after the date the resolution
withdrawing the public question is adopted.
(l) If a public question regarding a controlled project is placed on
the ballot to be voted on at an election under this section, the political
subdivision shall submit to the department of local government finance,
at least thirty (30) days before the election, the following information
regarding the proposed controlled project for posting on the
department's Internet web site: website:
(1) The cost per square foot of any buildings being constructed as
part of the controlled project.
(2) The effect that approval of the controlled project would have
on the political subdivision's property tax rate.
(3) The maximum term of the bonds or lease.
(4) The maximum principal amount of the bonds or the maximum
lease rental for the lease.
(5) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(6) The purpose of the bonds or lease.
(7) In the case of a controlled project proposed by a school
corporation:
(A) the current and proposed square footage of school building
space per student;
(B) enrollment patterns within the school corporation; and
(C) the age and condition of the current school facilities.
(m) If a majority of the eligible voters voting on the public question
vote in opposition to the public question, a petition may be submitted
to the county auditor to request that the limit under subsection
(h)(2)(B) apply to the holding of a subsequent public question by the
political subdivision. If such a petition is submitted to the county
auditor and is signed by the lesser of:
(1) five hundred (500) persons who are either owners of property
within the political subdivision or registered voters residing
within the political subdivision; or
(2) five percent (5%) of the registered voters residing within the
SEA 1 — Concur
116
political subdivision;
the limit under subsection (h)(2)(B) applies to the holding of a second
public question by the political subdivision and the limit under
subsection (h)(2)(A) does not apply to the holding of a second public
question by the political subdivision.
(n) At the request of a political subdivision that proposes to impose
property taxes to pay debt service on bonds or lease rentals on a lease
for a controlled project, the county auditor of a county in which the
political subdivision is located shall determine the estimated average
percentage of property tax increase on a homestead to be paid to the
political subdivision that must be included in the public question under
subsection (c) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the political subdivision.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the political subdivision,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the political subdivision.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the political subdivision:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the political subdivision's
part of the result determined in STEP FIVE.
STEP SEVEN: Determine the estimated tax rate that will be
imposed if the public question is approved by the voters.
STEP EIGHT: Multiply the result of STEP SEVEN by the result
of STEP THREE.
SEA 1 — Concur
117
STEP NINE: Divide the result of STEP EIGHT by the result of
STEP SIX, expressed as a percentage.
(o) At the request of a political subdivision that proposes to impose
property taxes to pay debt service on bonds or lease rentals on a lease
for a controlled project, the county auditor of a county in which the
political subdivision is located shall determine the estimated average
percentage of property tax increase on a business property to be paid
to the political subdivision that must be included in the public question
under subsection (c) as follows:
STEP ONE: Determine the average assessed value of business
property located within the political subdivision.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the political subdivision.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the
political subdivision:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the political subdivision's
part of the result determined in STEP FOUR.
STEP SIX: Determine the estimated tax rate that will be imposed
if the public question is approved by the voters.
STEP SEVEN: Multiply the result of STEP TWO by the result of
STEP SIX.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP FIVE, expressed as a percentage.
(p) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to the
political subdivision determined under subsection (n), and the
estimated average percentage of property tax increase on a business
property to be paid to the political subdivision determined under
subsection (o), in a manner prescribed by the department of local
government finance, and provide the certification to the political
subdivision that proposes to impose property taxes. The political
subdivision shall provide the certification to the county election board
SEA 1 — Concur
118
and include the estimated average percentages in the language of the
public question at the time the language of the public question is
submitted to the county election board for approval as described in
subsection (c).
SECTION 69. IC 6-1.1-20-4.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4.1. This section applies to all
school corporations. During the calendar year immediately
succeeding the final calendar year in which a school corporation's
previously approved controlled project referendum tax levy is
imposed under this chapter, the school corporation may not adopt
a resolution under section 3.5 of this chapter making a preliminary
determination to issue bonds or enter into a lease or adopt a
resolution to extend a referendum tax levy under this chapter.
SECTION 70. IC 6-1.1-20-4.3, AS ADDED BY P.L.136-2024,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4.3. (a) This section applies only if, with respect
to a particular controlled project that fulfilled the referendum process
under sections 3.5 and 3.6 of this chapter, the political subdivision
subsequently changes the scope of the controlled project beyond that
initially presented.
(b) Notwithstanding any other provision in this chapter, if at least
ten (10) persons who are either owners of property within the political
subdivision or registered voters residing within the political
subdivision file a petition with the proper officers of the political
subdivision contending that the scope of a controlled project has
changed from how it was initially presented, the proper officers of the
political subdivision shall hold a public hearing to determine whether
any change in scope is significant enough to warrant a new referendum
process. A petition under this subsection must be filed not later than
one (1) year after the controlled project received final approval.
(c) Notwithstanding any other provision in this chapter, if it is
determined at the hearing described in subsection (b) that the political
subdivision has subsequently changed the scope of a controlled project
beyond that initially presented as described in subsection (a), the
following procedures apply:
(1) A petition requesting the application of the local public
question process under this section may be filed using, and in
compliance with, the provisions that initially applied to the
particular controlled project under section 3.5 of this chapter. For
purposes of this subdivision, the relevant provisions in section 3.5
of this chapter shall be construed in a manner consistent with this
SEA 1 — Concur
119
section.
(2) If a sufficient petition requesting the application of the local
public question process for purposes of this section has been filed
under subdivision (1), the following question shall be submitted
to the eligible voters at the election conducted under this section:
"On ______ (insert date) the voters approved a public question to
increase property taxes paid to the _______ (insert the type of
taxing unit) by homeowners and businesses. The political
subdivision has determined that the scope of the project for which
the pubic question was placed on the ballot has changed beyond
that initially presented. To fund the increase in the scope of the
project, the average property tax paid to the _______ (insert the
type of taxing unit) per year on a residence is estimated to
increase by ______% (insert the estimated average percentage of
property tax increase paid to the political subdivision on a
residence within the political subdivision) and the average
property tax paid to the _____ (insert the type of taxing unit) per
year on a business property would increase by ______% (insert
the estimated average percentage of property tax increase paid to
the political subdivision on a business property within the
political subdivision). Shall ________ (insert the name of the
political subdivision) increase property taxes paid to the _______
(insert the type of taxing unit) by homeowners and businesses to
fund the increase in the scope of the project previously approved?
If this public question is approved by the voters, the average
property tax paid to the _______ (insert the type of taxing unit)
per year on a residence would increase by ______% (insert the
estimated average percentage of property tax increase paid to the
political subdivision on a residence within the political
subdivision) and the average property tax paid to the _____
(insert the type of taxing unit) per year on a business property
would increase by ______% (insert the estimated average
percentage of property tax increase paid to the political
subdivision on a business property within the political
subdivision).".
"Shall ________ (insert the name of the political subdivision)
increase property taxes paid to the _______ (insert the type of
political subdivision) for no more than ______ (insert the
number of years immediately following the holding of the
referendum) years for the purpose of funding _______ (insert
a brief description of the project use or purpose) for which the
principal debt amount for the project will cost no more than
SEA 1 — Concur
120
______ (insert the total cost of the project principal amount)
and the financing cost including interest and fees will cost no
more than an additional ______ (insert the total financing
costs including interest and fees) and is estimated to increase
the property taxes paid to the ______ (insert the type of
political subdivision) by imposing a property tax rate that
results in a maximum annual amount that does not exceed
______ (insert maximum amount of annual levy). If this
capital referendum public question is approved by the voters,
for a median residence of ______ (insert the political
subdivision's median household assessed value, rounded up to
the next fifty thousand dollars ($50,000)), the property's
annual property tax bill would increase by ______ (insert
dollar amount, rounded up to the next whole dollar) per
year.".
(3) The public question must appear on the ballot in the form
approved by the county election board. If the political subdivision
in which the particular controlled project is located in more than
one (1) county, the county election board of each county shall
jointly approve the form of the public question that will appear on
the ballot in each county. The form approved by the county
election board may differ from the language certified to the
county election board by the county auditor. If the county election
board approves the language of a public question under this
subsection, the county election board shall submit the language to
the department of local government finance for review.
(4) The department of local government finance shall review the
language of the public question to evaluate whether the
description of the controlled project is accurate and is not biased
against either a vote in favor of the controlled project or a vote
against the controlled project. The department of local
government finance may either approve the ballot language as
submitted or recommend that the ballot language be modified as
necessary to ensure that the description of the controlled project
is accurate and is not biased. The department of local government
finance shall certify its approval or recommendations to the
county auditor and the county election board not more than ten
(10) days after the language of the public question is submitted to
the department for review. If the department of local government
finance recommends a modification to the ballot language, the
county election board shall, after reviewing the recommendations
of the department of local government finance, submit modified
SEA 1 — Concur
121
ballot language to the department for the department's approval
or recommendation of any additional modifications. The public
question may not be certified by the county auditor under
subdivision (5) unless the department of local government finance
has first certified the department's final approval of the ballot
language for the public question.
(5) The county auditor shall certify the finally approved public
question under IC 3-10-9-3 to the county election board of each
county in which the political subdivision is located. The
certification must occur not later than noon August 1.
(A) seventy-four (74) days before a primary election if the
public question is to be placed on the primary or municipal
primary election ballot; or
(B) August 1 if the public question is to be placed on the
general or municipal election ballot.
(6) The public question shall be placed on the ballot at the next
primary election, general election or municipal election in which
all voters of the political subdivision are entitled to vote.
However, if a primary election, general election, or municipal
election will not be held during the first year in which the public
question is eligible to be placed on the ballot under this section
and if the political subdivision requests the public question to be
placed on the ballot at a special election, the public question shall
be placed on the ballot at a special election to be held on the first
Tuesday after the first Monday in May or November of the year.
The certification must occur not later than noon seventy-four (74)
days before a special election to be held in May (if the special
election is to be held in May) or noon on August 1 (if the special
election is to be held in November). The fiscal body of the
political subdivision that requests the special election shall pay
the costs of holding the special election. The county election
board shall give notice under IC 5-3-1 of a special election
conducted under this subsection. A special election conducted
under this subsection is under the direction of the county election
board. The county election board shall take all steps necessary to
carry out the special election.
(7) The circuit court clerk shall certify the results of the public
question to the following:
(A) The county auditor of each county in which the political
subdivision is located.
(B) The department of local government finance.
(8) IC 3, to the extent not inconsistent with this section, applies to
SEA 1 — Concur
122
an election held under this section.
(9) If a majority of the eligible voters voting on the public
question vote in opposition to the public question, or if a petition
is not filed under subdivision (1), the political subdivision may
not proceed with the changed scope of the controlled project. In
that case, the political subdivision may either:
(A) proceed with the controlled project as it was initially
presented; or
(B) terminate the controlled project as it was initially
presented and initiate procedures for the controlled project that
reflects the change in scope.
(10) If a majority of the eligible voters voting on the public
question vote in favor of the public question, the political
subdivision may impose property taxes to fund the increase in the
scope of the controlled project previously approved.
SECTION 71. IC 6-1.1-20-4.5, AS AMENDED BY P.L.136-2024,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4.5. (a) As used in this section, "maintenance
emergency" refers to a response to a condition that is not otherwise
subject to the application of section 1.1(a)(6) of this chapter and
includes:
(1) repair of a boiler or chiller system;
(2) roof repair;
(3) storm damage repair; or
(4) any other repair that the department determines is a
maintenance emergency for which waiver of the application of
section 3.5(a)(1)(E) (before its expiration) or 3.5(a)(1)(F) of this
chapter (before its expiration) is warranted.
(b) A political subdivision may submit a request to the department
to waive the application of section 3.5(a)(1)(E) (before its expiration)
or 3.5(a)(1)(F) of this chapter, (before its expiration), if the proposed
controlled project of the political subdivision is to address a
maintenance emergency with respect to a building owned or leased by
the political subdivision.
(c) The department shall require the political subdivision to submit
any information that the department considers necessary to determine
whether the condition that the political subdivision contends is a
maintenance emergency.
(d) The department shall review a request and issue a determination
not later than forty-five (45) days after the department receives a
request under this section determining whether the condition that the
political subdivision contends is a maintenance emergency is sufficient
SEA 1 — Concur
123
to waive the application of section 3.5(a)(1)(E) (before its expiration)
or 3.5(a)(1)(F) of this chapter. (before its expiration). If the department
determines that the condition is a maintenance emergency then section
3.5(a)(1)(E) (before its expiration) or 3.5(a)(1)(F) of this chapter
(before its expiration) is waived and does not apply to the proposed
controlled project.
(e) A waiver of the application of section 3.5(a)(1)(E) (before its
expiration) or 3.5(a)(1)(F) of this chapter (before its expiration) in
accordance with this section may not be construed as a waiver of any
other requirement of this chapter with respect to the proposed
controlled project.
(f) This section expires December 31, 2025.
SECTION 72. IC 6-1.1-20-4.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 4.6. Each year, the county
auditor, with cooperation from the department of local
government finance, shall determine the tax rate needed to raise
the maximum amount of the annual levy for the year as described
under sections 3.6 and 4.3 of this chapter, as applicable, and
determine all other information needed for the ballot language in
those sections.
SECTION 73. IC 6-1.1-20.6-3, AS AMENDED BY P.L.197-2016,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. As used in this chapter, "property tax
liability" means, for purposes of:
(1) this chapter, other than section 7.7 or 8.5 of this chapter,
liability for the tax imposed on property under this article
determined after application of all credits and deductions under
this article or IC 6-3.6, except the credit under granted by
section 7 or 7.5 of this chapter, but does not include any interest
or penalty imposed under this article; and
(2) section 8.5 of this chapter, liability for the tax imposed on
property under this article determined after application of all
credits and deductions under this article or IC 6-3.6, including the
credit credits granted by section sections 7, or 7.5, and 7.7 of this
chapter, but not including the credit granted under section 8.5 of
this chapter or any interest or penalty imposed under this article;
and
(3) section 7.7 of this chapter, liability for the tax imposed on
property under this article determined after application of all
credits and deductions under this article or IC 6-3.6, including
the credit granted by section 7 or 7.5 of this chapter, but not
SEA 1 — Concur
124
including the credits granted under section 7.7 or 8.5 of this
chapter or any interest or penalty imposed under this article.
SECTION 74. IC 6-1.1-20.6-7.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7.7. (a) This section applies
for property taxes first due and payable in calendar years
beginning after December 31, 2025.
(b) A person who qualifies for a standard deduction from the
assessed value of the person's homestead under IC 6-1.1-12-37 (or
is married at the time of death to a deceased spouse who qualifies
for a standard deduction under IC 6-1.1-12-37 for the person's
homestead) is also entitled to receive a supplemental homestead
credit under this section against the person's property tax liability
on the same homestead to which the standard deduction applies.
(c) The amount of the credit is equal to the lesser of:
(1) the result of:
(A) the property tax liability first due and payable on the
homestead property for the calendar year; multiplied by
(B) one-tenth (0.1); or
(2) three hundred dollars ($300).
(d) Property taxes imposed after being approved by the voters
in a referendum or local public question shall not be considered for
purposes of calculating a person's credit under this section.
(e) A person is not required to file an application for the credit
under this section. The county auditor shall:
(1) identify the property in the county eligible for the credit
under this section; and
(2) apply the credit under this section to property tax liability
on the identified property.
SECTION 75. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.239-2023,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 8.5. (a) This section
applies to an individual who:
(1) qualified for a standard deduction granted under
IC 6-1.1-12-37 for the individual's homestead property in the
immediately preceding calendar year (or was married at the time
of death to a deceased spouse who qualified for a standard
deduction granted under IC 6-1.1-12-37 for the individual's
homestead property in the immediately preceding calendar year);
(2) qualifies for a standard deduction granted under
IC 6-1.1-12-37 for the same homestead property in the current
calendar year;
SEA 1 — Concur
125
(3) is or will be at least sixty-five (65) years of age on or before
December 31 of the calendar year immediately preceding the
current calendar year; and
(4) had:
(A) in the case of an individual who filed a single return,
adjusted gross income (as defined in Section 62 of the Internal
Revenue Code) not exceeding thirty thousand dollars
($30,000), sixty thousand dollars ($60,000), and beginning
for the January 1, 2023, assessment date, and each assessment
date thereafter, adjusted annually by an amount equal to the
percentage cost of living increase applied for Social Security
benefits for the immediately preceding calendar year; or
(B) in the case of an individual who filed a joint income tax
return with the individual's spouse, combined adjusted gross
income (as defined in Section 62 of the Internal Revenue
Code) not exceeding forty thousand dollars ($40,000), seventy
thousand dollars ($70,000), and beginning for the January 1,
2023, assessment date, and each assessment date thereafter,
adjusted annually by an amount equal to the percentage cost
of living increase applied for Social Security benefits for the
immediately preceding calendar year;
for the calendar year preceding by two (2) years the calendar year
in which property taxes are first due and payable.
For purposes of applying the annual cost of living increases described
in subdivision (4)(A) and (4)(B), the annual percentage increase is
applied to the adjusted amount of income from the immediately
preceding year.
(b) Except as provided in subsection (g), this section does not apply
if:
(1) for an individual who received a credit under this section
before January 1, 2020, the gross assessed value of the homestead
on the assessment date for which property taxes are imposed is at
least two hundred thousand dollars ($200,000);
(2) for an individual who initially applies for a credit under this
section after December 31, 2019, and before January 1, 2023, the
assessed value of the individual's Indiana real property is at least
two hundred thousand dollars ($200,000); or
(3) for an individual who initially applies for a credit under this
section after December 31, 2022, and before January 1, 2025,
the assessed value of the individual's Indiana real property is at
least two hundred forty thousand dollars ($240,000).
(c) An individual is entitled to an additional credit under this section
SEA 1 — Concur
126
for property taxes first due and payable for a calendar year on a
homestead if:
(1) the individual and the homestead qualify for the credit under
subsection (a) for the calendar year;
(2) the homestead is not disqualified for the credit under
subsection (b) for the calendar year; and
(3) the filing requirements under subsection (e) are met.
(d) The amount of the credit is equal to the greater of zero (0) or the
result of:
(1) the property tax liability first due and payable on the
homestead property for the calendar year; minus
(2) the result of:
(A) the property tax liability first due and payable on the
qualified homestead property for the immediately preceding
year after the application of the credit granted under this
section for that year; multiplied by
(B) one and two hundredths (1.02).
However, property tax liability imposed on any improvements to or
expansion of the homestead property after the assessment date for
which property tax liability described in subdivision (2) was imposed
shall not be considered in determining the credit granted under this
section in the current calendar year.
(e) Applications for a credit under this section shall be filed in the
manner provided for an application for a deduction under IC 6-1.1-12-9
(before its expiration). However, 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. 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.
(f) The auditor of each county shall, in a particular year, apply a
credit provided under this section to each individual who received the
credit in the preceding year unless the auditor determines that the
individual is no longer eligible for the credit.
(g) For purposes of determining the:
(1) assessed value of the homestead on the assessment date for
which property taxes are imposed under subsection (b)(1);
(2) assessed value of the individual's Indiana real property under
subsection (b)(2); or
(3) assessed value of the individual's Indiana real property under
SEA 1 — Concur
127
subsection (b)(3);
for an individual who has received a credit under this section in a
previous year, increases in assessed value that occur after the later of
December 31, 2019, or the first year that the individual has received
the credit 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 credit under
this section, the assessor shall provide a report to the county auditor
describing the substantial renovation or new improvements, if any, that
were made to the property prior to the increase in assessed value.
SECTION 76. 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, 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 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
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.
SEA 1 — Concur
128
(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
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
SEA 1 — Concur
129
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
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),
SEA 1 — Concur
130
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
(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:
SEA 1 — Concur
131
(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.
SECTION 77. IC 6-1.1-22.5-8, AS AMENDED BY P.L.93-2024,
SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 8. (a) Subject to subsection (c), a provisional
statement must:
SEA 1 — Concur
132
(1) be on a form prescribed by the department of local
government finance;
(2) except as provided in rules adopted under section 20 of this
chapter and subsection (b):
(A) for property taxes first due and payable after 2010 and
billed using a provisional statement under section 6 of this
chapter, indicate:
(i) that the first installment of the taxpayer's tax liability is
an amount equal to fifty percent (50%) of the tax liability
that was payable in the same year as the assessment date for
the property for which the provisional statement is issued,
subject to any adjustments to the tax liability authorized by
the department of local government finance under
subsection (e) and approved by the county treasurer; and
(ii) that the second installment is either the amount specified
in a reconciling statement or, if a reconciling statement is
not sent until after the second installment is due, an amount
equal to fifty percent (50%) of the tax liability that was
payable in the same year as the assessment date for the
property for which the provisional statement is issued,
subject to any adjustments to the tax liability authorized by
the department of local government finance under
subsection (e) and approved by the county treasurer; and
(B) for property taxes billed using a provisional statement
under section 6.5 of this chapter, except as provided in
subsection (d), indicate tax liability in an amount determined
by the department of local government finance based on:
(i) subject to subsection (c), for the cross-county entity, the
property tax rate of the cross-county entity for taxes first due
and payable in the immediately preceding calendar year; and
(ii) for all other taxing units that make up the taxing district
or taxing districts that comprise the cross-county area, the
property tax rates of the taxing units for taxes first due and
payable in the current calendar year;
(3) indicate:
(A) that the tax liability under the provisional statement is
determined as described in subdivision (2); and
(B) that property taxes billed on the provisional statement:
(i) are due and payable in the same manner as property taxes
billed on a tax statement under IC 6-1.1-22-8.1; and
(ii) will be credited against a reconciling statement;
(4) for property taxes billed using a provisional statement under
SEA 1 — Concur
133
section 6 of this chapter, include a statement in the following or
a substantially similar form, as determined by the department of
local government finance:
"Under Indiana law, ________ County (insert county) has sent
provisional statements. The statement is due to be paid in
installments on __________ (insert date) and ________ (insert
date). The first installment is equal to fifty percent (50%) of your
tax liability for taxes payable in ______ (insert year), subject to
adjustment to the tax liability authorized by the department of
local government finance and approved by the county treasurer.
The second installment is either the amount specified in a
reconciling statement that will be sent to you, or (if a reconciling
statement is not sent until after the second installment is due) an
amount equal to fifty percent (50%) of your tax liability for taxes
payable in ______ (insert year), subject to adjustment to the tax
liability authorized by the department of local government finance
and approved by the county treasurer. After the abstract of
property is complete, you will receive a reconciling statement in
the amount of your actual tax liability for taxes payable in ______
(insert year) minus the amount you pay under this provisional
statement.";
(5) for property taxes billed using a provisional statement under
section 6.5 of this chapter, include a statement in the following or
a substantially similar form, as determined by the department of
local government finance:
"Under Indiana law, ________ County (insert county) has elected
to send provisional statements for the territory of
__________________ (insert cross-county entity) located in
________ County (insert county) because the property tax rate for
________________ (insert cross-county entity) was not available
in time to prepare final tax statements. The statement is due to be
paid in installments on __________ (insert date) and _________
(insert date). The statement is based on the property tax rate of
_________________ (insert cross-county entity) for taxes first
due and payable in _____ (insert immediately preceding calendar
year). After the property tax rate of ________________ (insert
cross-county entity) is determined, you will receive a reconciling
statement in the amount of your actual tax liability for taxes
payable in _____ (insert year) minus the amount you pay under
this provisional statement.";
(6) indicate any adjustment to tax liability under subdivision (2)
authorized by the department of local government finance under
SEA 1 — Concur
134
subsection (e) and approved by the county treasurer for:
(A) delinquent:
(i) taxes; and
(ii) special assessments;
(B) penalties; and
(C) interest;
(7) in the case of a reconciling statement only, include:
(A) a checklist that shows:
(i) homestead credits under IC 6-1.1-20.4, IC 6-3.6-5
(before its expiration), or another law and all property tax
deductions; and
(ii) whether each homestead credit and property tax
deduction were applied in the current provisional statement;
(B) an explanation of 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; and
(C) an explanation of the tax consequences and applicable
penalties if a taxpayer unlawfully claims a standard deduction
under IC 6-1.1-12-37 on:
(i) more than one (1) parcel of property; or
(ii) property that is not the taxpayer's principal place of
residence or is otherwise not eligible for a standard
deduction; and
(8) include any other information the county treasurer requires.
(b) The county may apply a standard deduction, supplemental
standard deduction, or homestead credit calculated by the county's
property system on a provisional bill for a qualified property. If a
provisional bill has been used for property tax billings for two (2)
consecutive years and a property qualifies for a standard deduction,
supplemental standard deduction, or homestead credit for the second
year a provisional bill is used, the county shall apply the standard
deduction, supplemental standard deduction, or homestead credit
calculated by the county's property system on the provisional bill.
(c) For purposes of this section, property taxes that are:
(1) first due and payable in the current calendar year on a
provisional statement under section 6 or 6.5 of this chapter; and
(2) based on property taxes first due and payable in the
immediately preceding calendar year or on a percentage of those
property taxes;
are determined after excluding from the property taxes first due and
payable in the immediately preceding calendar year property taxes
SEA 1 — Concur
135
imposed by one (1) or more taxing units in which the tangible property
is located that are attributable to a levy that no longer applies for
property taxes first due and payable in the current calendar year.
(d) If there was no property tax rate of the cross-county entity for
taxes first due and payable in the immediately preceding calendar year
for use under subsection (a)(2)(B), the department of local government
finance shall provide an estimated tax rate calculated to approximate
the actual tax rate that will apply when the tax rate is finally
determined.
(e) The department of local government finance shall:
(1) authorize the types of adjustments to tax liability that a county
treasurer may approve under subsection (a)(2)(A) including:
(A) adjustments for any new construction on the property or
any damage to the property;
(B) any necessary adjustments for credits, deductions, or the
local income tax;
(C) adjustments to include current year special assessments or
exclude special assessments payable in the year of the
assessment date but not payable in the current year;
(D) adjustments to include delinquent:
(i) taxes; and
(ii) special assessments;
(E) adjustments to include penalties that are due and owing;
and
(F) adjustments to include interest that is due and owing; and
(2) notify county treasurers in writing of the types of adjustments
authorized under subdivision (1).
SECTION 78. IC 6-1.1-30-20 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 20. (a) The department shall
develop and maintain a property tax transparency portal on the
department's current website through which taxpayers may:
(1) compare the property tax liability in their current tax
statement compared to their potential property tax liability
based on changes under a proposed tax rate; and
(2) provide taxpayer feedback to the department and local
units.
(b) The department shall make the portal available for taxpayer
use not later than January 1, 2026.
SECTION 79. IC 6-1.1-31-14 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 14. The
SEA 1 — Concur
136
department of local government finance shall develop or amend
forms and returns for property taxation of assessable depreciable
personal property to reflect the enactment of IC 6-1.1-3-29 and the
enactment of IC 6-1.1-8-45.
SECTION 80. IC 6-1.1-36-17, AS AMENDED BY P.L.85-2017,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 17. (a) As used in this section, "nonreverting
fund" refers to a nonreverting fund established under subsection (d).
(b) If a county auditor makes a determination that property was not
eligible for a standard deduction under IC 6-1.1-12-37 in a particular
year within three (3) years after the date on which taxes for the
particular year are first due, the county auditor may issue a notice of
taxes, interest, and penalties due to the owner that improperly received
the standard deduction and include a statement that the payment is to
be made payable to the county auditor. The additional taxes and civil
penalties that result from the removal of the deduction, if any, are
imposed for property taxes first due and payable for an assessment date
occurring before the earlier of the date of the notation made under
subsection (c)(2)(A) or the date a notice of an ineligible homestead lien
is recorded under subsection (e)(2) in the office of the county recorder.
The notice must require full payment of the amount owed within:
(1) one (1) year with no penalties and interest, if:
(A) the taxpayer did not comply with the requirement to return
the homestead verification form under IC 6-1.1-22-8.1(b)(9)
(expired January 1, 2015); and
(B) the county auditor allowed the taxpayer to receive the
standard deduction in error; or
(2) thirty (30) days, if subdivision (1) does not apply.
With respect to property subject to a determination made under this
subsection that is owned by a bona fide purchaser without knowledge
of the determination, no lien attaches for any additional taxes and civil
penalties that result from the removal of the deduction.
(c) If a county auditor issues a notice of taxes, interest, and penalties
due to an owner under subsection (b), the county auditor shall:
(1) notify the county treasurer of the determination; and
(2) do one (1) or more of the following:
(A) Make a notation on the tax duplicate that the property is
ineligible for the standard deduction and indicate the date the
notation is made.
(B) Record a notice of an ineligible homestead lien under
subsection (e)(2).
(d) Each county auditor shall establish a nonreverting fund. Upon
SEA 1 — Concur
137
collection of the adjustment in tax due (and any interest and penalties
on that amount) after the termination of a deduction or credit as
specified in subsection (b), the county treasurer shall deposit that
amount:
(1) in the nonreverting fund, if the county contains a consolidated
city; or
(2) if the county does not contain a consolidated city:
(A) in the nonreverting fund, to the extent that the amount
collected, after deducting the direct cost of any contract,
including contract related expenses, under which the
contractor is required to identify homestead deduction
eligibility, does not cause the total amount deposited in the
nonreverting fund under this subsection for the year during
which the amount is collected to exceed one hundred thousand
dollars ($100,000); or
(B) in the county general fund, to the extent that the amount
collected exceeds the amount that may be deposited in the
nonreverting fund under clause (A).
(e) Any part of the amount due under subsection (b) that is not
collected by the due date is subject to collection under one (1) or more
of the following:
(1) After being placed on the tax duplicate for the affected
property and collected in the same manner as other property taxes.
(2) Through a notice of an ineligible homestead lien recorded in
the county recorder's office without charge.
The adjustment in tax due (and any interest and penalties on that
amount) after the termination of a deduction or credit as specified in
subsection (b) shall be deposited as specified in subsection (d) only in
the first year in which that amount is collected. Upon the collection of
the amount due under subsection (b) or the release of a lien recorded
under subdivision (2), the county auditor shall submit the appropriate
documentation to the county recorder, who shall amend the information
recorded under subdivision (2) without charge to indicate that the lien
has been released or the amount has been paid in full.
(f) The amount to be deposited in the nonreverting fund or the
county general fund under subsection (d) includes adjustments in the
tax due as a result of the termination of deductions or credits available
only for property that satisfies the eligibility for a standard deduction
under IC 6-1.1-12-37, including the following:
(1) Supplemental deductions under IC 6-1.1-12-37.5.
(2) Homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before its
expiration), IC 6-3.6-11-3 (before its expiration), or any other
SEA 1 — Concur
138
law.
(3) Credit for excessive property taxes under IC 6-1.1-20.6-7.5 or
IC 6-1.1-20.6-8.5.
Any amount paid that exceeds the amount required to be deposited
under subsection (d)(1) or (d)(2) shall be distributed as property taxes.
(g) Money deposited under subsection (d)(1) or (d)(2) shall be
treated as miscellaneous revenue. Distributions shall be made from the
nonreverting fund established under this section upon appropriation by
the county fiscal body and shall be made only for the following
purposes:
(1) Fees and other costs incurred by the county auditor to discover
property that is eligible for a standard deduction under
IC 6-1.1-12-37.
(2) Other expenses of the office of the county auditor.
The amount of deposits in a reverting fund, the balance of a
nonreverting fund, and expenditures from a reverting fund may not be
considered in establishing the budget of the office of the county auditor
or in setting property tax levies that will be used in any part to fund the
office of the county auditor.
SECTION 81. IC 6-1.1-37-4 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 he the person is not
entitled to the deduction, commits a Class B misdemeanor.
SECTION 82. IC 6-1.1-40-10, AS AMENDED BY
P.L.212-2018(ss), SECTION 16, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
Sec. 10. (a) The deduction under this section applies only to new
manufacturing equipment installed before July 1, 2018.
(b) Subject to subsection (e), an owner of new manufacturing
equipment whose statement of benefits is approved is entitled to a
deduction from the assessed value of that equipment for a period of ten
(10) years. Except as provided in subsections (c) and (d), and subject
to subsection (e) and section 14 of this chapter, for the first five (5)
years, the amount of the deduction for new manufacturing equipment
that an owner is entitled to for a particular year equals the assessed
value of the new manufacturing equipment. Subject to subsection (e)
and section 14 of this chapter, for the sixth through the tenth year, the
amount of the deduction equals the product of:
(1) the assessed value of the new manufacturing equipment;
multiplied by
SEA 1 — Concur
139
(2) the percentage prescribed in the following table:
YEAR OF DEDUCTION PERCENTAGE
6th 100%
7th 95%
8th 80%
9th 65%
10th 50%
11th and thereafter 0%
(c) A deduction under this section is not allowed in the first year the
deduction is claimed for new manufacturing equipment to the extent
that it would cause the assessed value of all of the personal property of
the owner in the taxing district in which the equipment is located to be
less than the assessed value of all of the personal property of the owner
in that taxing district in the immediately preceding year.
(d) If a deduction is not fully allowed under subsection (c) in the
first year the deduction is claimed, then the percentages specified in
subsection (b) apply in the subsequent years to the amount of deduction
that was allowed in the first year.
(e) For purposes of subsection (b), the assessed value of new
manufacturing equipment that is part of an owner's assessable
depreciable personal property in a single taxing district subject to the
valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9
IC 6-1.1-8-45 is the product of:
(1) the assessed value of the equipment (excluding equipment
installed after June 30, 2018) determined without regard to the
valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
IAC 5.1-6-9; IC 6-1.1-8-45; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under
50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9 IC 6-1.1-8-45
for all of the owner's depreciable personal property in the
taxing district; divided by
(B) the total true tax value of all of the owner's depreciable
personal property in the taxing district that is subject to the
valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
IAC 5.1-6-9 IC 6-1.1-8-45 determined:
(i) under the depreciation schedules in the rules of the
department of local government finance before any
adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50
IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9.
IC 6-1.1-8-45.
SEA 1 — Concur
140
SECTION 83. IC 6-1.1-42-22, AS AMENDED BY P.L.181-2016,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 22. (a) The designating
body shall determine whether to approve a deduction.
(b) A designating body may not grant a deduction for a facility
described in IC 6-1.1-12.1-3(e).
(c) A property owner may not receive a deduction under this chapter
for repairs or improvements to real property if the owner receives a
deduction under either IC 6-1.1-12.1, IC 6-1.1-12-18 (before its
expiration), IC 6-1.1-12-22 (before its expiration), or IC 6-1.1-12-28.5
(before its expiration) for the same property.
(d) A designating body may approve a deduction only if the
following findings are made in the affirmative:
(1) The applicant:
(A) has never had an ownership interest in an entity that
contributed; and
(B) has not contributed;
a contaminant (as defined in IC 13-11-2-42) that is the subject of
the voluntary remediation, as determined under the written
standards adopted by the department of environmental
management.
(2) The proposed improvement or property will be located in a
zone.
(3) The estimate of the value of the remediation and
redevelopment is reasonable for projects of that nature.
(4) The estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the proposed described
remediation and redevelopment.
(5) The estimate of the annual salaries of those individuals who
will be employed or whose employment will be retained can be
reasonably expected to result from the proposed described
remediation and redevelopment.
(6) Any other benefits about which information was requested are
benefits that can be reasonably expected to result from the
proposed described remediation and redevelopment.
(7) The totality of benefits is sufficient to justify the deduction.
SECTION 84. IC 6-1.1-51.3 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]:
Chapter 51.3 Local Property Tax Credits
Sec. 0.5. Each credit against local property taxes to which an
SEA 1 — Concur
141
individual is entitled for a particular year under this chapter shall
be applied to an individual's property tax liability for the year after
the application of any credit under IC 6-1.1-20.6-7.5, but before
application of any other credits under this article or IC 6-3.6.
Sec. 1. (a) An individual is entitled to a credit against local
property taxes imposed on the individual's real property, or mobile
home or manufactured home within the county, if:
(1) the individual is at least sixty-five (65) years of age on or
before December 31 of the calendar year preceding the year
in which the credit is claimed;
(2) the individual has owned the real property, mobile home,
or manufactured home for at least one (1) year before
claiming the credit; or the individual has been buying the real
property, mobile home, or manufactured home under a
contract that provides that the individual is to pay the
property taxes on the real property, mobile home, or
manufactured home for at least one (1) year before claiming
the credit, and the contract or a memorandum of the contract
is recorded in the county recorder's office;
(3) the individual:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or
manufactured home under contract;
on the date the credit is claimed; and
(4) the:
(A) individual had, in the case of an individual who filed a
single return, adjusted gross income (as defined in Section
62 of the Internal Revenue Code) not exceeding sixty
thousand dollars ($60,000);
(B) individual had, in the case of an individual who filed a
joint income tax return with the individual's spouse,
combined adjusted gross income (as defined in Section 62
of the Internal Revenue Code) not exceeding seventy
thousand dollars ($70,000); or
(C) combined adjusted gross income (as defined in Section
62 of the Internal Revenue Code) of the individual and all
other individuals with whom:
(i) the individual shares ownership; or
(ii) the individual is purchasing the property under a
contract;
as joint tenants or tenants in common did not exceed
SEA 1 — Concur
142
seventy thousand dollars ($70,000);
for the calendar year preceding by two (2) years the calendar
year in which the property taxes are first due and payable.
(b) The amount of the credit is equal to one hundred fifty dollars
($150).
(c) An individual may not be denied the credit provided under
this section because the individual is absent from the real property,
mobile home, or manufactured home while in a nursing home or
hospital.
(d) For purposes of this section, if real property, a mobile home,
or a manufactured home is owned by:
(1) tenants by the entirety;
(2) joint tenants; or
(3) tenants in common;
only one (1) credit may be allowed. However, the age requirement
is satisfied if any one (1) of the tenants is at least sixty-five (65)
years of age.
(e) A surviving spouse is entitled to the credit provided by this
section if:
(1) the surviving spouse is at least sixty (60) years of age on or
before December 31 of the calendar year preceding the year
in which the credit is claimed;
(2) the surviving spouse's deceased husband or wife was at
least sixty-five (65) years of age at the time of a death; and
(3) the surviving spouse has not remarried.
(f) An individual who has sold real property to another person
under a contract that provides that the contract buyer is to pay the
property taxes on the real property may not claim the credit
provided under this section against that real property.
(g) If individuals share ownership or are purchasing the
property under a contract as joint tenants or tenants in common
and all of the tenants are not at least sixty-five (65) years of age, the
credit allowed under this section shall be reduced by an amount
equal to the credit multiplied by a fraction. The numerator of the
fraction is the number of tenants who are not at least sixty-five (65)
years of age, and the denominator is the total number of tenants.
(h) An individual wishing to claim a credit under this section
must file a statement, on forms prescribed by the department of
local government finance, with the county auditor and provide
documentation necessary to substantiate the individual's eligibility
for the credit. The statement must be completed and dated on or
before January 15 of the calendar year in which the property taxes
SEA 1 — Concur
143
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.
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 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
SEA 1 — Concur
144
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) 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) 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.
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:
(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%);
SEA 1 — Concur
145
(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. 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
SEA 1 — Concur
146
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.
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
(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
SEA 1 — Concur
147
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 than sixty (60) days after
the individual becomes ineligible.
SECTION 85. IC 6-1.1-52 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 52. County Option Homestead Property Tax Deferral
Program
SEA 1 — Concur
148
Sec. 1. As used in this chapter, "homestead" means a homestead
as defined in IC 6-1.1-12-37.
Sec. 2. As used in this chapter, "homestead property tax
liability" refers to a liability for property taxes:
(1) that are assessed on tangible property that is a homestead,
including all tangible property, regardless of type, located in
any parcel that contains the homestead; and
(2) that would be first due and payable in a certain year if the
property taxes were not deferred under this chapter.
The term refers to a property tax liability after the application of
all deductions and credits for which the homestead is eligible.
Sec. 3. As used in this chapter, "property taxes" refers to ad
valorem property taxes. The term does not include special
assessments, fees, or charges that are included by law on a tax
statement issued under IC 6-1.1-22-8.1 or IC 6-1.1-22.5.
Sec. 4. As used in this chapter, "qualified individual" means an
individual who:
(1) has a qualified interest in a homestead on the assessment
date for which homestead property tax liability is imposed;
(2) has held a qualified interest in the homestead for at least
five (5) years before first applying for a deferral of homestead
property tax liability;
(3) uses the homestead in which the individual has a qualified
interest as the individual's principal place of residence. An
individual shall be treated as using a homestead as the
individual's principal place of residence if the individual:
(A) is absent from the homestead while in a health care
facility (as defined in IC 16-18-2-161 or IC 16-28-13-0.5)
for which payment is received from the United States
Department of Health and Human Services for the
individual's care; but
(B) used the homestead as the individual's principal place
of residence immediately before being admitted to a health
care facility (as defined in IC 16-18-2-161 or
IC 16-28-13-0.5);
(4) is not delinquent in the payment of any property taxes,
special assessments, or fees or charges that are included by
law on a tax statement issued under IC 6-1.1-22-8.1 or
IC 6-1.1-22.5; and
(5) meets any other qualifications that a county may choose to
require in an ordinance adopted under this chapter, which
may include:
SEA 1 — Concur
149
(A) an age requirement for senior citizens;
(B) an assessed value limitation (such as an assessed value
limit of three hundred thousand dollars ($300,000));
(C) veteran status; or
(D) an income based limitation.
Sec. 5. As used in this chapter, "qualified interest" means the
following:
(1) An ownership interest in a homestead.
(2) An interest in a contract for the purchase of a homestead
that:
(A) is recorded in the county recorder's office; and
(B) provides that a person purchasing the homestead is to
pay the property taxes on the homestead.
Sec. 6. (a) A county fiscal body may adopt an ordinance to
establish a homestead property tax deferral program to be
administered by the county treasurer as provided in this chapter.
(b) An ordinance adopted under this section must apply to all of
the territory of the county and allow a qualified individual to apply
for and receive deferral of the qualified individual's homestead
property tax liability as set forth in this chapter.
(c) For a homestead property tax deferral program to be first
applicable to property taxes first due and payable in a particular
calendar year, the county fiscal body must adopt the ordinance to
establish the homestead property tax deferral program not later
than November 1 of the immediately preceding calendar year.
Sec. 7. (a) Beginning with property taxes first due and payable
in 2026, and subject to subsection (g), a qualified individual in a
county with a homestead property tax deferral program may apply
to the county auditor to defer the due date for the qualified
individual's homestead property tax liability as permitted under
this chapter.
(b) A qualified individual may defer at least one hundred dollars
($100), but not more than five hundred dollars ($500), of the
qualified individual's homestead property tax liability in a given
calendar year.
(c) Except as provided in subsections (d) and (f), amounts
deferred under this chapter for prior years may continue to
accumulate until the delayed due date under this chapter.
(d) A qualified individual may not defer more than ten thousand
dollars ($10,000) of the qualified individual's homestead property
tax liability over consecutive years.
(e) The county treasurer may accrue interest on a qualified
SEA 1 — Concur
150
individual's deferred tax balance amount on a monthly basis not to
exceed four percent (4%) beginning on the date of the deferral.
(f) No deferral of homestead property tax liability shall be
granted if the total amount of deferred taxes under this chapter
plus the total amount of all other liens on the homestead property
plus the outstanding principal on all mortgages on the homestead
property exceed one hundred percent (100%) of the homestead's
assessed value.
(g) To be eligible for the homestead property tax deferral
program, a qualified individual must:
(1) submit with the homestead property tax deferral program
application the written approval of any holder of a lien on the
homestead property; and
(2) agree to not pay the individual's remaining non-deferred
payments by escrow.
Sec. 8. (a) Before October 1, 2025, the department of local
government finance shall prescribe and make available to the
public a tax deferral loan application and agreement that must be
used for purposes of this chapter.
(b) A qualified individual wishing to obtain a deferral of
homestead property tax liability for a calendar year must file with
the county auditor a completed loan application on or before
January 15 of the calendar year in which the property taxes are
first due and payable and enter into a tax deferral agreement with
the county auditor before March 1 of that year. Any recording fees
required by a county recorder to file the application shall be paid
by the taxpayer.
(c) An application for a deferral must be filed with the county
auditor in the county where the homestead is located. Upon the
filing of an application, the county auditor shall immediately:
(1) notify the county treasurer and transmit the information
that the county treasurer needs to match the application with
the county treasurer's records related to the homestead; and
(2) review the application to determine:
(A) whether the applicant qualifies for a deferral; and
(B) the amount that may be deferred.
(d) After an initial application, an applicant remains eligible for
a deferral in subsequent years so long as the applicant continues to
meet the eligibility requirements for deferral under this chapter.
Sec. 9. (a) If the applicant is qualified for a deferral, the county
auditor shall:
(1) approve the deferral in the lesser of:
SEA 1 — Concur
151
(A) the amount requested by the applicant, which may not
be less than one hundred dollars ($100); or
(B) the maximum amount, which is five hundred dollars
($500);
(2) provide for the recording of the deferral in the county
recorder's office specifying the amount of property tax
deferred; and
(3) notify the county treasurer and the department of local
government finance of the amount deferred.
(b) An applicant must enter into a tax deferral agreement with
the county auditor for each year that homestead property taxes are
deferred under this chapter.
(c) The recording of a deferral in the county recorder's office
shall constitute a lien on the homestead property.
Sec. 10. (a) Property taxes deferred under this chapter are due
and payable one hundred eighty (180) days after the date on which
a deferral termination event occurs.
(b) Subject to subsection (c), a deferral termination event occurs
on the earlier of the following dates:
(1) The first date on which the qualified individual who had a
qualified interest in the homestead when the property taxes
were deferred:
(A) ceases to use the homestead as the individual's
principal place of residence as provided in section 4(3) of
this chapter; or
(B) no longer has a qualified interest in the homestead.
(2) The date of the death of the qualified individual who had
a qualified interest in the homestead when property taxes
were deferred.
(c) This subsection applies only to a surviving spouse who was
not a qualified individual on the date on which property taxes were
deferred. If a deceased individual was a qualified individual on the
date on which property taxes were deferred, the deceased
individual's surviving spouse shall be treated after the deceased
individual's death as if the surviving spouse had been a qualified
individual on the date on which property taxes were deferred if:
(1) the homestead was the surviving spouse's principal place
of residence when the deceased qualified individual died; and
(2) the surviving spouse has a qualified interest in the
homestead not later than the later of:
(A) the date of the deceased individual's death; or
(B) the date on which the estate of the deceased individual
SEA 1 — Concur
152
transfers any part of the ownership of the homestead from
the estate.
Sec. 11. Deferred property taxes and accrued interest may be
paid at any time on or before the delayed due date under section 10
of this chapter. Payment of deferred property taxes after the
delayed due date shall be collected in the same manner as
delinquent property taxes.
Sec. 12. (a) If a payment of deferred property taxes is made, the
county treasurer shall notify the county auditor, the county
recorder, and the state board of accounts on the form and in the
manner prescribed by the state board of accounts. Notice to the
county recorder must be in the form of a release of the lien on the
homestead for the deferred property taxes. Any payment of
deferred property taxes made within a particular installment
period must be delineated by taxing district throughout the
settlement process.
(b) When payment of deferred property taxes is made, the
deferred property taxes shall be apportioned and distributed
among the respective funds of the taxing units in the same manner
as other property taxes are apportioned and distributed in the
calendar year in which the payment of deferred property taxes is
made.
Sec. 13. Whenever an individual who is a qualified individual on
an assessment date for which property taxes were deferred:
(1) ceases to use the homestead as the individual's principal
place of residence as provided in section 4(3) of this chapter;
(2) ceases to have a qualified interest in the homestead; or
(3) changes the individual's qualified interest in the
homestead;
or a surviving spouse becomes a qualified individual, a person
responsible for paying the property taxes on the homestead shall
notify the county auditor in the county where the homestead is
located on the form and in the manner prescribed by the
department of local government finance. The county auditor shall
review the information filed under this section to determine
whether a deferral termination event has occurred.
Sec. 14. (a) If, as the result of the filing of information with the
county auditor or on the county auditor's own motion, the county
auditor determines that a deferral termination event has occurred,
the county auditor shall notify the county treasurer, the county
recorder, and the department of local government finance on the
form and in the manner prescribed by the department of local
SEA 1 — Concur
153
government finance.
(b) A county auditor shall give written notice of each
determination under this chapter to the qualified individuals for
the affected homestead.
Sec. 15. The county recorder shall record the following without
charge in the miscellaneous records of the county recorder:
(1) A statement of the amount of property tax deferred.
(2) A statement of payment of deferred property taxes.
(3) A notice of termination of a deferral.
SECTION 86. IC 6-3-2-27.5, AS ADDED BY P.L.194-2023,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 27.5. (a) As used in this section, "compensation"
means any wages, salaries, tips, or similar income that is subject to the
withholding requirements under IC 6-3-4-8, or would otherwise be
subject to the withholding requirements under IC 6-3-4-8 if not for the
application of:
(1) IC 6-3-4-8(d);
(2) IC 6-3-5; or
(3) this section.
(b) As used in this section, "professional athlete" means:
(1) an athlete, other than a team member (as defined in section
2.7(a)(4) of this chapter) or a race team member (as defined in
section 3.2(a)(4) of this chapter), who performs services in a
professional athletic event for compensation;
(2) a team member (as defined in section 2.7(a)(4) of this chapter)
who has at least one (1) duty day in Indiana during a taxable year;
or
(3) a race team member (as defined in section 3.2(a)(4) of this
chapter) who has at least one (1) duty day in Indiana during a
taxable year.
(c) As used in this section, "professional entertainer" means a
person who performs services in the professional performing arts for
compensation on a per-event basis.
(d) As used in this section, "public figure" means a person of
prominence who performs services at discrete events, including
speeches, public appearances, and similar events, for compensation on
a per-event basis.
(e) As used in this section, "time and attendance system" means a
system:
(1) through which an employee is required, on a contemporaneous
basis, to record the employee's work location for each day worked
outside the state in which the employee's employment duties are
SEA 1 — Concur
154
primarily performed; and
(2) which is designed to allow the employer to allocate the
employee's compensation for income tax purposes among all
states in which the employee performs employment duties.
(f) Except as provided in subsection (j), compensation is exempt
from the adjusted gross income tax imposed under this article and
IC 6-3.6 if all of the following conditions are met:
(1) The individual is not a resident of Indiana at any time during
the calendar year in which the employee performs employment
duties.
(2) The individual receives compensation for employment duties
performed by the individual in Indiana for thirty (30) days or less
during the calendar year.
(3) The compensation is not paid for employment duties
performed by the individual in the individual's capacity as a
professional athlete, professional entertainer, or public figure.
(g) Except as otherwise provided in this section, an employer is not
required to withhold taxes imposed under this article or IC 6-3.6 from
compensation paid to an employee described in subsection (f).
However, if the number of days that an employee performs
employment duties in Indiana exceeds thirty (30) days, the employer
shall withhold and remit tax to the state of Indiana from all
compensation paid to the employee for every day on which the
employee performed employment duties in Indiana, including the first
thirty (30) days.
(h) The department may not require payment of any penalties
otherwise applicable for a failure to deduct and withhold income taxes
under IC 6-3-4-8, if, when making the determination of whether
withholding was required, either of the following applied:
(1) The employer relied on a time and attendance system
maintained by the employer specifically designed to allocate
employee wages for income tax purposes among all taxing
jurisdictions in which the employee performs employment duties
for the employer.
(2) The employer did not maintain a time and attendance system
and the employer relied on the employee's annual determination
of the time the employee expected to spend performing
employment duties in Indiana, if:
(A) the employer did not have actual knowledge of fraud on
the part of the employee in making the determination; and
(B) the employer and the employee did not collude to evade
taxation in making the determination.
SEA 1 — Concur
155
An employer's maintaining of records as described in subdivision (1)
does not preclude an employer's ability to rely on an employee's
determination of the time the employee expected to spend performing
employment duties in Indiana as described in subdivision (2) when
making the determination of whether withholding is required.
(i) For purposes of this section:
(1) subject to subdivision (3), an employee shall be considered
present and performing employment duties within Indiana if the
employee performs more of the employee's employment duties
within Indiana than in any other state during a particular day;
(2) any portion of the day during which an employee is in transit
may not be considered in determining the location of the
employee's performance of employment duties; and
(3) if an employee performs employment duties in the employee's
state of residence and in only one (1) nonresident state during a
particular day, the employee shall be considered to have
performed more of the employee's employment duties in the
nonresident state than in the state of residence for that day.
(j) The following apply for purposes of this section:
(1) If an individual receives compensation for employment duties
performed by the individual both:
(A) in the individual's capacity as a professional athlete,
professional entertainer, or public figure; and
(B) in some capacity other than the individual's capacity as a
professional athlete, professional entertainer, or public figure;
the exemption under this section may not be applied to the portion
of compensation described in clause (B).
(2) If an employee is working at a location other than a physical
location of the employer, the employee shall be considered to be
working in the state or states in which the services for the
employer are performed, regardless of the physical location of the
employer.
(3) If an individual performs employment duties in Indiana for
more than thirty (30) days during a calendar year, compensation
received by the individual is not eligible for the exemption under
this section.
(4) If an individual performs substantially similar job duties for an
employer both while designated as an employee and in some
capacity other than as an employee during a calendar year, the
number of days for which the individual shall be considered to
have worked in Indiana with regard to that employer must be
determined by aggregating the days for which the individual
SEA 1 — Concur
156
performed duties for the employer, whether designated as an
employee or not.
(5) If an employer or individual reasonably believes that an
individual is an employee for a calendar year but the individual is
later determined to not be an employee, the individual:
(A) is subject to tax under this article and IC 6-3.6 on any
income that otherwise would have been exempt under this
section; and
(B) is not subject to penalties under IC 6-3-4-4.1 or
IC 6-8.1-10-2.1 based on the inclusion of amounts claimed as
exempt under this section as income.
(6) If an individual is not a resident of Indiana, amounts paid for
vacation, sick, personal, or any other type of leave may not be
considered as compensation in Indiana, and any day for which a
type of leave is used may not be considered as a day for which the
individual performed services for an employer unless the
individual performed services for the employer in Indiana on that
day and the day would otherwise be counted as a day of services
performed in Indiana under this section.
(7) The exemption provided under this section shall not apply to
an individual's compensation that is deferred or delayed from a
previous calendar year to a subsequent calendar year unless:
(A) the individual was exempt from taxation under this section
on the compensation for the calendar year in which the
compensation was earned; and
(B) the individual is not a resident of Indiana when the
individual includes the compensation in the individual's
federal gross income.
(k) Nothing in this section may be construed to prevent an
individual from being considered a local taxpayer (as defined in
IC 6-3.6-2-13(2)), (as defined in IC 6-3.6), regardless of whether the
individual's compensation is exempt under this section.
SECTION 87. IC 6-3.5-4-1, AS AMENDED BY P.L.256-2017,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1. The following definitions apply throughout this
chapter:
(1) "Adopting entity" means either the county council or the local
income tax council established by IC 6-3.6-3-1 for the county,
whichever adopts an ordinance to impose a surtax first. the
adopting body specified in IC 6-3.6-3-1(a).
(2) "County council" includes the city-county council of a county
that contains a consolidated city of the first class.
SEA 1 — Concur
157
(3) "Vehicle" has the meaning set forth in IC 6-6-5-1(b).
(4) "Net vehicle excise tax" means the tax due under IC 6-6-5
after the application of the adjustments and credits provided by
that chapter.
(5) "Surtax" means the county vehicle excise tax imposed by an
adopting entity under this chapter.
(6) "Transportation asset management plan" includes planning for
drainage systems and rights-of-way that affect transportation
assets.
SECTION 88. IC 6-3.5-4-1.1, AS AMENDED BY P.L.197-2016,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1.1. For purposes of acting as the adopting entity
under this chapter, a local income tax council is comprised of the same
members as the local income tax council that is established by
IC 6-3.6-3-1 for the county. The local income tax council adopting
entity shall use the same procedures that apply under IC 6-3.6-3 when
acting as an adopting entity under this chapter.
SECTION 89. IC 6-3.5-5-1, AS AMENDED BY P.L.256-2017,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1. The following definitions apply throughout this
chapter:
(1) "Adopting entity" means either the county council or the local
income tax council established by IC 6-3.6-3-1 for the county,
whichever adopts an ordinance to impose a wheel tax first. the
adopting body specified in IC 6-3.6-3-1(a).
(2) "Bus" has the meaning set forth in IC 9-13-2-17.
(3) "Commercial vehicle" has the meaning set forth in
IC 6-6-5.5-1(b).
(4) "County council" includes the city-county council of a county
that contains a consolidated city of the first class.
(5) "In-state miles" has the meaning set forth in IC 6-6-5.5-1(b).
(6) "Political subdivision" has the meaning set forth in
IC 34-6-2-110.
(7) "Recreational vehicle" has the meaning set forth in
IC 9-13-2-150.
(8) "School bus" has the meaning set forth in IC 9-13-2-161(a).
(9) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a).
(10) "State agency" has the meaning set forth in IC 34-6-2-141.
(11) "Tractor" has the meaning set forth in IC 9-13-2-180.
(12) "Trailer" has the meaning set forth in IC 9-13-2-184(a).
(13) "Transportation asset management plan" includes planning
for drainage systems and rights-of-way that affect transportation
SEA 1 — Concur
158
assets.
(14) "Truck" has the meaning set forth in IC 9-13-2-188(a).
(15) "Wheel tax" means the tax imposed under this chapter.
SECTION 90. IC 6-3.5-5-1.1, AS AMENDED BY P.L.197-2016,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1.1. For purposes of acting as the adopting entity
under this chapter, a local income tax council is comprised of the same
members as the local income tax council that is established by
IC 6-3.6-3-1 for the county. The local income tax council adopting
entity shall use the same procedures that apply under IC 6-3.6-3 when
acting as an adopting entity under this chapter.
SECTION 91. IC 6-3.6-1-1, AS AMENDED BY P.L.130-2018,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1. (a) The purpose of this article is to consolidate
and simplify the various local income tax laws (referred to as a "former
tax" in this article) that are in effect on May 1, 2016, into a uniform law
that transitions each county from the former taxes to the tax governed
by this article.
(b) Notwithstanding the effective date of the repeal of the former tax
laws on January 1, 2017, an adopting body may not adopt any
ordinances under a former tax after June 30, 2016. In addition,
notwithstanding the effective date of this article being July 1, 2015, an
adopting body may not take any action under this article before July 1,
2016.
(c) To carry out the transition, the office of management and budget,
along with the appropriate state agencies and in cooperation with each
county, shall do the following:
(1) Document all terms, conditions, limitations, and obligations
that exist under the former taxes.
(2) Categorize the tax rate under the former taxes into the
appropriate tax rate or rates under this article to provide revenue
for all the same purposes for which revenue under a former tax
was used in 2016, except to the extent required under this article
and to the extent that an adopting body takes action under this
article after June 30, 2016, to change the purposes and allocation
of the revenue as permitted under this article. Matching the
purposes of a former tax to the purposes under this article,
including the apportionment, allocation, and distribution of
revenue under this article shall be accomplished by using the best
information available. These purposes include, but are not limited
to, one (1) or more of the following:
(A) Property tax credits using the options set forth in
SEA 1 — Concur
159
IC 6-3.6-5 (before its expiration). This categorization is
limited to former tax rates that were dedicated to providing
credits against property taxes under IC 6-3.5-1.1-26 (repealed),
IC 6-3.5-6 (repealed), or IC 6-3.5-7 (repealed).
(B) School corporation distributions and additional revenue.
All former tax rates not used for a specified project or
categorized under clause (A) shall be categorized under
IC 6-3.6-6 using the former tax rates or dollar amounts that
were dedicated for school corporation distributions, public
safety, economic development, and certified shares.
(C) A special purpose project (IC 6-3.6-7) using the former tax
rate that was dedicated to the project.
(d) The transition under this article shall be completed by August 1,
2016, for purposes of local government budgets for 2017 and for
purposes of the distribution and allocation of revenue under this article
after December 31, 2016.
SECTION 92. IC 6-3.6-1-1.5, AS ADDED BY P.L.197-2016,
SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1.5. (a) In counties that adopted a homestead
credit under IC 6-3.5-6-13 (before its repeal January 1, 2017), the
transition from the former taxes to the taxes governed under this article
shall include the transition of the homestead credit under IC 6-3.5-6-13
(before its repeal January 1, 2017) to a property tax relief rate under
IC 6-3.6-5 (before its expiration).
(b) To accomplish the transition under this section, the department
of local government finance shall determine the portion of the income
tax rate under IC 6-3.5-6-8 (before its repeal January 1, 2017) that is
attributable to the homestead credit approved under IC 6-3.5-6-13
(before its repeal January 1, 2017) and shall allocate that portion of the
income tax rate that is attributable to the homestead credit under
IC 6-3.5-6-13 (before its repeal January 1, 2017) to the property tax
relief rate under IC 6-3.6-5 (before its expiration).
(c) The department of local government finance shall notify each
affected county of the rate that will be allocated to the property tax
relief rate not later than July 1, 2016. In addition, the department of
local government finance shall notify the state budget agency of the
transition under this section.
(d) The approval of the local income tax council is not required for
the transition of the homestead credit under IC 6-3.5-6-13 (before its
repeal January 1, 2017) to a property tax relief rate as set forth in this
section.
(d) This section expires July 1, 2028.
SEA 1 — Concur
160
SECTION 93. IC 6-3.6-1-3, AS AMENDED BY P.L.197-2016,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 3. (a) Except to the extent that taxes imposed in
a county under or determined under:
(1) IC 6-3.5-1.1 (repealed);
(2) IC 6-3.5-1.5 (repealed);
(3) IC 6-3.5-6 (repealed); or
(4) IC 6-3.5-7 (repealed);
are increased, decreased, or rescinded under this article, the total tax
rate in effect in a county under the provisions described in subdivisions
(1) through (4) on May 1, 2016, continue in effect after May 1, 2016,
and shall be treated as taxes imposed under this article.
(b) Notwithstanding subsection (a) or any other provision of this
article, a property tax relief rate imposed in a county under
IC 6-3.6-5 (before its expiration) expires December 31, 2027.
SECTION 94. IC 6-3.6-1-4, AS AMENDED BY P.L.197-2016,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 4. Notwithstanding:
(1) IC 6-3.5-1.1 (repealed);
(2) IC 6-3.5-1.5 (repealed);
(3) IC 6-3.5-6 (repealed); or
(4) IC 6-3.5-7 (repealed);
a change in a tax imposed under a provision described in subdivisions
(1) through (4), credits related to property taxes provided under
IC 6-3.6-5 (before its expiration), allocations of tax revenue, and
pledges for payment from tax revenue after December 31, 2016, must
be made under this article and not under the provisions described in
subdivisions (1) through (4).
SECTION 95. IC 6-3.6-2-2, AS AMENDED BY P.L.239-2017,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 2. "Adjusted gross income" has the meaning
set forth in IC 6-3-1-3.5. However:
(1) except as provided in subdivision (3), in the case of a local
taxpayer who is not treated as a resident local taxpayer of a
county, the term includes only adjusted gross income derived
from the taxpayer's principal place of business or employment;
(2) (1) in the case of a resident local taxpayer of Perry County, the
term does not include adjusted gross income described in
IC 6-3.6-8-7; and
(3) (2) in the case of a local taxpayer described in section 13(3)
of this chapter, the term includes only that part of the individual's
total income that:
SEA 1 — Concur
161
(A) is apportioned to Indiana under IC 6-3-2-2.7 or
IC 6-3-2-3.2; and
(B) is paid to the individual as compensation for services
rendered in the county (or municipality in the case of a local
income tax imposed under IC 6-3.6-6-22) as a team member
or race team member.
SECTION 96. IC 6-3.6-2-4 IS REPEALED [EFFECTIVE JULY 1,
2027]. Sec. 4. "Attributed allocation amount" equals the sum of the
following:
(1) The allocation amount of the civil taxing unit for that calendar
year.
(2) In the case of a county taxing unit, the welfare allocation
amount.
SECTION 97. IC 6-3.6-2-5, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 5. "Certified distribution" refers to the amount
certified under IC 6-3.6-9-5(b), IC 6-3.6-9-5(a), as adjusted under
IC 6-3.6-9.
SECTION 98. IC 6-3.6-2-7.4, AS AMENDED BY P.L.137-2024,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 7.4. "County with a single voting bloc" means
a county that has a local income tax council in which one (1) city that
is a member of the local income tax council or one (1) town that is a
member of the local income tax council is allocated more than fifty
percent (50%) of the total one hundred (100) votes allocated under
IC 6-3.6-3-6(d). This section expires May 31, 2025. 2027.
SECTION 99. IC 6-3.6-2-12 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 12. "Local income tax council" means a council
established by IC 6-3.6-3-1.
SECTION 100. IC 6-3.6-2-13, AS AMENDED BY P.L.239-2017,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 13. "Local taxpayer" as it relates to a
particular county, means any of the following:
(1) As it relates to a particular county (or municipality in the
case of a local income tax imposed under IC 6-3.6-6-22), an
individual who resides in that county (or municipality in the
case of a local income tax imposed under IC 6-3.6-6-22) on the
date specified in IC 6-3.6-8-3.
(2) As it relates to a particular county, an individual who
maintains the taxpayer's principal place of business or
employment in that county on the date specified in IC 6-3.6-8-3
and who does not reside on that same date in another county in
SEA 1 — Concur
162
Indiana in which a tax under this article is in effect. However, for
purposes of a local income tax imposed by a municipality
under IC 6-3.6-6-22, the term does not include an individual
described in this subdivision.
(3) As it relates to a particular county, and only for purposes
of a rate imposed by a county under 6-3.6-6-2(b)(3), the term
includes an individual who:
(A) has income apportioned to Indiana as:
(i) a team member under IC 6-3-2-2.7; or
(ii) a race team member under IC 6-3-2-3.2;
for services rendered in the county; and
(B) is not described in subdivision (1) or (2).
SECTION 101. IC 6-3.6-2-15, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 15. "Resident local taxpayer", as it relates to
a particular county (or municipality in the case of a local income tax
imposed under IC 6-3.6-6-22), means any local taxpayer who resides
in that county (or municipality in the case of a local income tax
imposed under IC 6-3.6-6-22) on the date specified in IC 6-3.6-8-3.
SECTION 102. IC 6-3.6-3-1, AS AMENDED BY P.L.137-2024,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 1. (a) The fiscal body of the county is the
adopting body for a county.
(b) The fiscal body of the city or town is the adopting body for
a city or town for purposes of adopting a municipal rate under
IC 6-3.6-6-22. following is the adopting body for a county:
(1) The local income tax council in a county in which the county
income tax council adopted either:
(A) a county option income tax under IC 6-3.5-6 (repealed)
that was in effect on January 1, 2015; or
(B) a county economic development income tax for the county
under IC 6-3.5-7 (repealed) that was in effect on January 1,
2015.
(2) The county fiscal body in any other county.
(3) The county fiscal body for purposes of adopting a rate
dedicated to paying for a PSAP in the county as permitted by
IC 6-3.6-6-2.5.
(4) The county fiscal body for purposes of adopting a rate
dedicated to paying for acute care hospitals in the county as
permitted by IC 6-3.6-6-2.6.
(5) The county fiscal body for purposes of adopting a rate
dedicated to paying for correctional facilities and rehabilitation
SEA 1 — Concur
163
facilities in the county as permitted by IC 6-3.6-6-2.7.
(b) A local income tax council is established for each county. The
membership of each county's local income tax council consists of the
fiscal body of the county and the fiscal body of each city or town that
lies either partially or entirely within that county.
SECTION 103. IC 6-3.6-3-3, AS AMENDED BY P.L.236-2023,
SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 3. (a) Except as provided in subsection (f), an
ordinance adopted by a county under this article takes effect as
provided in this section.
(b) An ordinance that adopts, increases, decreases, or rescinds a tax
or a tax rate takes effect as follows:
(1) An ordinance adopted after December 31 of the immediately
preceding year and before September 1 of the current year takes
effect on October 1 of the current year.
(2) An ordinance adopted after August 31 and before November
1 of the current year takes effect on January 1 of the following
year.
(3) An ordinance adopted after October 31 of the current year and
before January 1 of the following year takes effect on October 1
of the following year.
(1) An ordinance adopted on or before October 1 of a
calendar year shall take effect on January 1 of the calendar
year that immediately succeeds the year in which the
ordinance is adopted.
(2) An ordinance adopted after October 1 of a calendar year
shall take effect on January 1 of the second succeeding
calendar year following the year the ordinance is adopted.
However, an ordinance adopted to impose a tax rate under
IC 6-3.6-6-2(b)(3) or IC 6-3.6-6-2(b)(4) must be adopted on or
before October 1 of a calendar year.
(c) An ordinance that grants, increases, decreases, rescinds, or
changes a credit against the property tax liability of a taxpayer under
IC 6-3.6-5 (before its expiration) takes effect as follows:
(1) An ordinance adopted after December 31 of the immediately
preceding year and before November 2 of the current year takes
effect on January 1 of, and applies to property taxes first due and
payable in, the year immediately following the year in which the
ordinance is adopted.
(2) An ordinance adopted after November 1 of the current year
and before January 1 of the immediately succeeding year takes
effect on January 1 of, and applies to property taxes first due and
SEA 1 — Concur
164
payable in, the year that follows the current year by two (2) years.
This subsection expires December 31, 2027.
(d) An ordinance that grants, increases, decreases, rescinds, or
changes a distribution or allocation of taxes takes effect as follows:
(1) An ordinance adopted after December 31 of the immediately
preceding year and before November 2 of the current year takes
effect January 1 of the year immediately following the year in
which the ordinance is adopted.
(2) An ordinance adopted after November 1 of the current year
and before January 1 of the immediately succeeding year takes
effect January 1 of the year that follows the current year by two
(2) years.
(1) An ordinance adopted on or before October 1 of a
calendar year shall take effect on January 1 of the calendar
year that immediately succeeds the year in which the
ordinance is adopted.
(2) An ordinance adopted after October 1 of a calendar year
shall take effect on January 1 of the second succeeding
calendar year following the year the ordinance is adopted.
(e) An ordinance not described in subsections (b) through (d) takes
effect as provided under IC 36 for other ordinances of the
governmental entity adopting the ordinance.
(f) An ordinance described in section 7(e) or 7.5(e) of this chapter
that changes a tax rate or changes the allocation of revenue received
from a tax rate does not take effect as provided under this section if the
county adopting body fails to meet the required deadlines for notice
described in section 7(e) or 7.5(e) of this chapter. If an ordinance does
not take effect, the tax rate or allocation, as applicable, that is subject
to the proposed change in the ordinance shall be the lesser of the:
(1) applicable distribution schedule for the certified distribution
for the upcoming calendar year; or
(2) applicable distribution schedule for the certified distribution
for the current calendar year;
unless, or until, a subsequent ordinance is adopted and the required
deadlines for notice described in section 7(e) or 7.5(e) of this chapter
are met. This subsection expires January 1, 2025.
SECTION 104. IC 6-3.6-3-3.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 3.3. (a) This section applies to an
ordinance adopted by a city or town that adopts, increases,
decreases, or rescinds a tax or a tax rate under IC 6-3.6-6-22.
(b) An ordinance adopted by a city or town on or before
SEA 1 — Concur
165
October 1 of a calendar year shall take effect on January 1 of the
calendar year that immediately succeeds the year in which the
ordinance is adopted.
(c) An ordinance adopted by a city or town after October 1 of a
calendar year shall take effect on January 1 of the second
succeeding calendar year following the year the ordinance is
adopted.
SECTION 105. IC 6-3.6-3-4, AS AMENDED BY P.L.236-2023,
SECTION 76, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 4. (a) Except for a tax rate that has an expiration
date, and except as provided in section 3(f) of this chapter (before its
expiration), a tax rate remains in effect until the effective date of an
ordinance that increases, decreases, or rescinds that tax rate.
(b) A tax rate may not be changed more than once each year under
this article.
(c) A local income tax expenditure tax rate that is imposed in a
county under IC 6-3.6-6 continues in effect after December 31,
2027, only if the adopting body adopts an ordinance to renew the
expenditure tax rate beginning January 1, 2028. An ordinance
under this subsection must be adopted by the adopting body on or
before October 1, 2027, as set forth in section 3(b)(1) of this
chapter. However, this subsection shall not be construed to
prohibit an adopting body that fails to adopt an ordinance to
continue an expenditure tax rate after December 31, 2027, from
adopting an ordinance under this article to impose, renew, or
modify an expenditure tax rate under IC 6-3.6-6 beginning
January 1, 2029, or any year thereafter.
SECTION 106. IC 6-3.6-3-5, AS AMENDED BY P.L.137-2024,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 5. (a) The auditor of a county (or the fiscal
officer of a municipality in the case of a local income tax imposed
under IC 6-3.6-6-22) shall record all votes taken on ordinances
presented for a vote under this article and not more than ten (10) days
after the vote, send a certified copy of the results to:
(1) the commissioner of the department of state revenue; and
(2) the commissioner of the department of local government
finance;
in an electronic format approved by the commissioner of the
department of local government finance.
(b) Except as provided in subsection (c), this subsection applies only
to a county that has a local income tax council. The county auditor may
cease sending certified copies after the county auditor sends a certified
SEA 1 — Concur
166
copy of results showing that members of the local income tax council
have cast a majority of the votes on the local income tax council for or
against the proposed ordinance.
(c) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
county auditor may cease sending certified copies of the votes on the
local income tax council voting as a whole under section 9.5 of this
chapter after the county auditor sends a certified copy of results
showing that the individuals who sit on the fiscal bodies of the county,
cities, and towns that are members of the local income tax council have
cast a majority of the votes on the local income tax council voting as a
whole under section 9.5 of this chapter for or against the proposed
ordinance. This subsection expires May 31, 2025.
SECTION 107. IC 6-3.6-3-6 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 6. (a) This section applies to a county in which the
county adopting body is a local income tax council.
(b) In the case of a city or town that lies within more than one (1)
county, the county auditor of each county shall base the allocations
required by subsections (d) and (e) on the population of that part of the
city or town that lies within the county for which the allocations are
being made.
(c) Each local income tax council has a total of one hundred (100)
votes.
(d) Each county, city, or town that is a member of a local income tax
council is allocated a percentage of the total one hundred (100) votes
that may be cast. The percentage that a city or town is allocated for a
year equals the same percentage that the population of the city or town
bears to the population of the county. The percentage that the county
is allocated for a year equals the same percentage that the population
of all areas in the county not located in a city or town bears to the
population of the county.
(e) This subsection applies only to a county with a single voting
bloc. Each individual who sits on the fiscal body of a county, city, or
town that is a member of the local income tax council is allocated for
a year the number of votes equal to the total number of votes allocated
to the particular county, city, or town under subsection (d) divided by
the number of members on the fiscal body of the county, city, or town.
This subsection expires May 31, 2025.
(f) On or before January 1 of each year, the county auditor shall
certify to each member of the local income tax council the number of
votes, rounded to the nearest one hundredth (0.01), each member has
for that year.
SEA 1 — Concur
167
(g) This subsection applies only to a county with a single voting
bloc. On or before January 1 of each year, in addition to the
certification to each member of the local income tax council under
subsection (f), the county auditor shall certify to each individual who
sits on the fiscal body of each county, city, or town that is a member of
the local income tax council the number of votes, rounded to the
nearest one hundredth (0.01), each individual has under subsection (e)
for that year. This subsection expires May 31, 2025.
SECTION 108. IC 6-3.6-3-7 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 7. (a) This section applies to a county in which the
county adopting body is a local income tax council.
(b) Before a member of the local income tax council may propose
an ordinance under section 8 of this chapter, or vote on a proposed
ordinance (including a proposed ordinance under section 8(e) of this
chapter that is being considered by the local income tax council as a
whole as required under section 9.5 of this chapter (before its
expiration)), the member must hold a public hearing on the proposed
ordinance and provide the public with notice of the time and place
where the public hearing will be held.
(c) The notice required by subsection (b) must be given in
accordance with IC 5-3-1 and include the proposed ordinance or
resolution to propose an ordinance.
(d) In addition to the notice required by subsection (b), the adopting
body shall also provide a copy of the notice to all taxing units in the
county at least ten (10) days before the public hearing.
(e) If a county adopting body makes any fiscal decision that has a
financial impact to an underlying local taxing unit, the decision must
be made, and notice must be given to the affected local taxing unit, by
August 1 of a year. If a county adopting body passes an ordinance
changing the allocation of local income tax revenue to a local taxing
unit, the county adopting body must provide direct notice, in addition
to the public notice described in subsection (b), to the affected local
taxing unit within fifteen (15) days of the passage of the ordinance. The
county adopting body must provide confirmation to the department of
state revenue and the department of local government finance that
direct notice was provided to the affected local taxing units within
fifteen (15) days of the passage of the ordinance.
SECTION 109. IC 6-3.6-3-8 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 8. (a) This section applies to a county in which the
county adopting body is a local income tax council.
(b) Except as provided in subsection (e), any member of a local
income tax council may present an ordinance for passage. To do so, the
SEA 1 — Concur
168
member must adopt a resolution to propose the ordinance to the local
income tax council and distribute a copy of the proposed ordinance to
the county auditor. The county auditor shall treat any proposed
ordinance distributed to the auditor under this section as a casting of all
that member's votes in favor of the proposed ordinance.
(c) Except as provided in subsection (f), the county auditor shall
deliver copies of a proposed ordinance the auditor receives to all
members of the local income tax council within ten (10) days after
receipt. Subject to subsection (d), once a member receives a proposed
ordinance from the county auditor, the member shall vote on it within
thirty (30) days after receipt.
(d) Except as provided in subsection (h), if, before the elapse of
thirty (30) days after receipt of a proposed ordinance, the county
auditor notifies the member that the members of the local income tax
council have cast a majority of the votes on the local income tax
council for or against the proposed ordinance the member need not
vote on the proposed ordinance.
(e) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
fiscal body of any county, city, or town that is a member of a local
income tax council may adopt a resolution to propose an ordinance to
increase a tax rate in the county to be voted on by the local income tax
council as a whole as required under section 9.5 of this chapter and
distribute a copy of the proposed ordinance to the county auditor. The
county auditor shall treat the vote tally on the resolution adopted under
this subsection for each individual who is a member of the fiscal body
of the county, city, or town as the voting record for that individual
either for or against the ordinance being proposed for consideration by
the local income tax council as a whole under section 9.5 of this
chapter. This subsection expires May 31, 2025.
(f) This subsection applies only to a county with a single voting bloc
that proposes to increase (but not decrease) a tax rate in the county. The
county auditor shall deliver copies of a proposed ordinance the auditor
receives under subsection (e) to the fiscal officers of all members of the
local income tax council (other than the member proposing the
ordinance under subsection (e)) within ten (10) days after receipt.
Subject to subsection (h), once a member receives a proposed
ordinance from the county auditor, the member shall vote on it within
thirty (30) days after receipt. This subsection expires May 31, 2025.
(g) This subsection applies only to a county with a single voting
bloc that proposes to increase (but not decrease) a tax rate in the
county. The fiscal body of each county, city, or town voting on a
SEA 1 — Concur
169
resolution to propose an ordinance under subsection (e), or voting on
a proposed ordinance being considered by the local income tax council
as a whole under section 9.5 of this chapter, must take a roll call vote
on the resolution or the proposed ordinance. If an individual who sits
on the fiscal body is absent from the meeting in which a vote is taken
or abstains from voting on the resolution or proposed ordinance, the
fiscal officer of the county, city, or town shall nevertheless consider
that individual's vote as a "no" vote against the resolution or the
proposed ordinance being considered, whichever is applicable, for
purposes of the vote tally under this section and shall note on the vote
tally that the individual's "no" vote is due to absence or abstention. The
fiscal body of each county, city, or town shall certify the roll call vote
on a resolution or a proposed ordinance, either for or against, to the
county auditor as set forth under this chapter. This subsection expires
May 31, 2025.
(h) This subsection applies only to a county with a single voting
bloc that proposes to increase (but not decrease) a tax rate in the
county. If, before the elapse of thirty (30) days after receipt of a
proposed ordinance under subsection (e), the county auditor notifies
the member that the individuals who sit on the fiscal bodies of the
county, cities, and towns that are members of the local income tax
council have cast a majority of the votes on the local income tax
council for or against a proposed ordinance voting as a whole under
section 9.5 of this chapter, the member need not vote on the proposed
ordinance under subsection (e). This subsection expires May 31, 2025.
SECTION 110. IC 6-3.6-3-9 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 9. (a) Except as provided in subsection (d), this section
applies to a county in which the county adopting body is a local income
tax council.
(b) A member of the local income tax council may exercise its votes
by passing a resolution and transmitting the resolution to the county
auditor.
(c) A resolution passed by a member of the local income tax council
exercises all votes of the member on the proposed ordinance, and those
votes may not be changed during the year.
(d) This section does not apply to a county in which the county
adopting body is a local income tax council to which section 9.5 of this
chapter applies. This subsection expires May 31, 2024.
SECTION 111. IC 6-3.6-3-9.5, AS AMENDED BY P.L.137-2024,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9.5. (a) This section applies to a county:
(1) in which the county adopting body is a local income tax
SEA 1 — Concur
170
council;
(2) that is a county with a single voting bloc; and
(3) that proposes to increase a tax rate in the county.
However, the provisions under section 9 of this chapter shall apply to
a county described in subdivisions (1) and (2) that proposes to decrease
a tax rate in the county.
(b) A local income tax council described in subsection (a) must vote
as a whole to exercise its authority to increase a tax rate under this
article.
(c) A resolution passed by the fiscal body of a county, city, or town
that is a member of the local income tax council exercises the vote of
each individual who sits on the fiscal body of the county, city, or town
on the proposed ordinance, and the individual's vote may not be
changed during the year.
(d) This section expires May 31, 2025. 2027.
SECTION 112. IC 6-3.6-3-10 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 10. (a) This section applies to a county in which the
county adopting body is a local income tax council.
(b) A local income tax council may pass only one (1) ordinance
adopting, increasing, decreasing, or rescinding a tax in one (1) year.
Once the ordinance has been passed, the county auditor shall:
(1) cease distributing those types of proposed ordinances for the
rest of the year; and
(2) withdraw from the membership any other of those types of
proposed ordinances.
Any votes subsequently received by the county auditor on those types
of proposed ordinances during that same year are void.
(c) The local income tax council may not vote on, nor may the
county auditor distribute to the members of the local income tax
council, any proposed ordinance during a year, if previously during that
same year the county auditor received and distributed to the members
of the local income tax council a proposed ordinance whose passage
would have substantially the same effect.
SECTION 113. IC 6-3.6-4-1, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 1. (a) Except as otherwise provided in
IC 6-3.6-6-22, a tax is imposed on the adjusted gross income of local
taxpayers at a tax rate that is a sum of the tax rates imposed by the
county's adopting body and in effect in the county.
(b) Except as otherwise provided in IC 6-3.6-6-22, the combined
tax rates imposed under IC 6-3.6-5 (before its expiration), IC 6-3.6-6,
and IC 6-3.6-7 constitute the tax imposed on the adjusted gross income
SEA 1 — Concur
171
of local taxpayers in the county.
(c) In addition to the tax imposed in the county under subsection
(a), a tax is imposed on the adjusted gross income of local
taxpayers in a municipality at a tax rate that is imposed by the
municipality under IC 6-3.6-6-22 and in effect in the municipality.
SECTION 114. IC 6-3.6-4-2, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 2. Subject to section 3 of this chapter, a tax
rate authorized under IC 6-3.6-5, IC 6-3.6-6 or IC 6-3.6-7 may be
adopted, increased, decreased, or rescinded without adopting,
increasing, decreasing, or rescinding a tax rate authorized by either of
the two (2) other chapters. chapter. However, an adopting body may:
(1) adopt, increase, decrease, or rescind a tax authorized under a
particular chapter of this article; and
(2) adopt, increase, decrease, or rescind a tax authorized under
another chapter of this article;
in the same ordinance.
SECTION 115. IC 6-3.6-4-3, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 3. If there are bonds or leases outstanding
that are payable from a tax imposed under IC 6-3.5-1.1 (before its
repeal January 1, 2017), IC 6-3.5-6 (before its repeal January 1, 2017),
IC 6-3.5-7 (before its repeal January 1, 2017), IC 6-3.6-6, or IC 6-3.6-7,
(but not IC 6-3.6-5), the adopting body may not reduce the tax rate
below a rate that would produce one and twenty-five hundredths (1.25)
times the total of the highest annual outstanding debt service plus the
highest annual lease payments plus any amount required under the
agreements for the bonds or leases to be deposited in a sinking fund or
other reserve, unless:
(1) the adopting body; or
(2) any city, town, or county;
pledges all or a part of its share of revenues from the tax imposed under
IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5) for the life of the bonds or
the term of the lease, in an amount that is sufficient, when combined
with the amount pledged by the city, town, or county that issued the
bonds, to produce one and twenty-five hundredths (1.25) times the total
of the highest annual outstanding debt service plus the highest annual
lease payments plus the amount required under the agreements for the
bonds or leases to be deposited in a sinking fund or other reserve.
SECTION 116. IC 6-3.6-5-7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2027]: Sec. 7. This chapter expires December 31, 2027.
SEA 1 — Concur
172
SECTION 117. IC 6-3.6-6-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 0.5. As used in this chapter,
"nonmunicipal civil taxing unit" means townships, libraries, and
all other civil taxing units that imposed an ad valorem property tax
levy in the county for the calendar year preceding the distribution
year, except that the term does not include counties, cities, towns,
or school corporations. The term does include those civil taxing
units whose budgets require binding review by another local unit.
SECTION 118. IC 6-3.6-6-2, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 2. (a) This section applies to all counties.
(b) The adopting body may impose a tax rate under this chapter that
does not exceed:
(1) two and five-tenths percent (2.5%) in all counties other than
Marion County; and
(2) two and seventy-five hundredths percent (2.75%) in Marion
County;
on the adjusted gross income of local taxpayers in the county served by
the adopting body.
(b) The adopting body may by ordinance and subject to
subsections (c) through (e) impose one (1) or more of the following
component rates not to exceed a total expenditure tax rate under
this chapter of two and nine-tenths percent (2.9%) on the adjusted
gross income of taxpayers who reside in the county:
(1) A tax rate not to exceed one and two-tenths percent (1.2%)
for general purpose revenue for county services (as provided
in section 4 of this chapter), subject to subsection (c).
(2) A tax rate not to exceed four-tenths of one percent (0.4%)
for providers of fire protection and emergency medical
services located within the county (as provided in section 4.3
of this chapter), subject to subsection (c).
(3) A tax rate not to exceed two-tenths of one percent (0.2%)
for general purpose revenue for distribution to nonmunicipal
civil taxing units (excluding fire protection districts) located
within the county (as provided in section 4.5 of this chapter),
subject to subsection (c).
(4) A tax rate not to exceed one and two-tenths percent (1.2%)
for general purpose revenue for municipal services for
distribution to municipalities located within the county that
are not eligible to adopt a municipal tax rate under section 22
of this chapter or that have made an election under section
SEA 1 — Concur
173
23(b)(3) of this chapter to be treated as such.
(c) The combined component rates imposed by an adopting
body under subsection (b)(1) through (b)(3) shall not exceed one
and seven-tenths percent (1.7%).
(d) A tax rate adopted under subsection (b)(4) may only be
imposed on taxpayers who do not reside in a municipality that is
eligible to adopt a municipal tax rate under section 22 of this
chapter.
(e) Beginning after December 31, 2030, a tax rate imposed under
subsection (b) shall expire on December 31 of each calendar year.
An adopting body wishing to continue, increase, or decrease a tax
rate in the succeeding year must pass an ordinance to readopt a tax
rate in accordance with IC 6-3.6-3-3. This subsection applies
regardless of whether there is a modification in the tax rate or the
component rates or the rates are unchanged from the previous
year.
SECTION 119. IC 6-3.6-6-2.5 IS REPEALED [EFFECTIVE
JANUARY 1, 2028]. Sec. 2.5. (a) This section applies to a county in
which the adopting body:
(1) is the local income tax council; and
(2) did not allocate the revenue under this chapter from an
expenditure rate of at least one-tenth of one percent (0.1%) to pay
for a PSAP in the county for a year.
(b) A county fiscal body may adopt an ordinance to impose a tax
rate for a PSAP in the county. The tax rate must be in increments of
one-hundredth of one percent (0.01%) and may not exceed one-tenth
of one percent (0.1%).
(c) The revenue generated by a tax rate imposed under this section
must be distributed directly to the county before the remainder of the
expenditure rate revenue is distributed. The revenue shall be
maintained in a separate dedicated county fund and used only for
paying for a PSAP in the county.
SECTION 120. IC 6-3.6-6-2.6 IS REPEALED [EFFECTIVE
JANUARY 1, 2028]. Sec. 2.6. (a) As used in this section, "acute care
hospital" means an acute care hospital that is:
(1) established and operated under IC 16-22-2, IC 16-22-8, or
IC 16-23; and
(2) licensed under IC 16-21.
(b) A county fiscal body may adopt an ordinance to impose a tax
rate for acute care hospitals located in the county. The tax rate must be
in increments of one-hundredth of one percent (0.01%) and may not
exceed one-tenth of one percent (0.1%).
SEA 1 — Concur
174
(c) The revenue generated by a tax rate imposed under this section
must be distributed directly to the county before the remainder of the
expenditure rate revenue is distributed. The revenue shall be
maintained in a separate dedicated county fund and used only for the
operating expenses of the acute care hospital located in the county.
SECTION 121. IC 6-3.6-6-2.7 IS REPEALED [EFFECTIVE
JANUARY 1, 2028]. Sec. 2.7. (a) A county fiscal body may adopt an
ordinance to impose a tax rate for correctional facilities and
rehabilitation facilities in the county. The tax rate must be in
increments of:
(1) in the case of a county with bonds or lease agreements
outstanding on July 1, 2023, for which a pledge of tax revenue
from revenue received under a tax rate imposed under this section
is made, one-hundredth of one percent (0.01%) and may not
exceed three-tenths of one percent (0.3%); and
(2) in the case of a county with no bonds or lease agreements
outstanding on July 1, 2023, for which a pledge of tax revenue
from revenue received under a tax rate imposed under this section
is made, one-hundredth of one percent (0.01%) and may not
exceed two-tenths of one percent (0.2%).
(b) The tax rate imposed under this section may not be in effect for
more than:
(1) twenty-two (22) years, in the case of a tax rate imposed in an
ordinance adopted before January 1, 2019; or
(2) twenty-five (25) years, in the case of a tax rate imposed in an
ordinance adopted on or after January 1, 2019.
(c) The revenue generated by a tax rate imposed under this section
must be distributed directly to the county before the remainder of the
expenditure rate revenue is distributed. The revenue shall be
maintained in a separate dedicated county fund and used by the county
only for paying for correctional facilities and rehabilitation facilities in
the county.
(d) If a county fiscal body imposes a tax rate:
(1) under subsection (a)(1) or (a)(2) in an increment that does not
exceed two-tenths of one percent (0.2%), one hundred percent
(100%) of the revenue collected from the total tax rate; or
(2) under subsection (a)(1) in an increment that exceeds
two-tenths of one percent (0.2%):
(A) one hundred percent (100%) of the revenue collected from
that portion of the total tax rate that does not exceed an
increment of two-tenths of one percent (0.2%); and
(B) no revenue collected from that portion of the total tax rate
SEA 1 — Concur
175
that exceeds an increment of two-tenths of one percent (0.2%);
may be used for operating expenses for correctional facilities and
rehabilitation facilities in the county.
SECTION 122. IC 6-3.6-6-2.8 IS REPEALED [EFFECTIVE
JANUARY 1, 2028]. Sec. 2.8. (a) As used in this section, "emergency
medical services" has the meaning set forth in IC 16-18-2-110.
(b) The fiscal body of a county may adopt an ordinance to impose
a tax rate for emergency medical services in the county. The tax rate
must be in increments of one-hundredth of one percent (0.01%) and
may not exceed two-tenths of one percent (0.2%). The tax rate may not
be in effect for more than twenty-five (25) years.
(c) The revenue generated by a tax rate imposed under this section
must be distributed directly to the county before the remainder of the
expenditure rate revenue is distributed. The revenue shall be
maintained in a separate dedicated county fund and used by the county
only for paying for operating costs incurred by the county for
emergency medical services that are provided throughout the county.
SECTION 123. IC 6-3.6-6-2.9 IS REPEALED [EFFECTIVE
JANUARY 1, 2028]. Sec. 2.9. (a) For purposes of this section,
"courtroom costs" includes staffing costs only for the court reporter,
court bailiff, or court administrator.
(b) A county fiscal body may adopt an ordinance to impose a tax
rate for:
(1) in the case of a tax rate adopted under this section before
January 1, 2024, county staff expenses of the state judicial system
in the county; or
(2) in the case of a tax rate adopted under this section after
December 31, 2023, courtroom costs of the state judicial system
in the county.
The tax rate must be in increments of one-hundredth of one percent
(0.01%) and may not exceed two-tenths of one percent (0.2%). The tax
rate may not be in effect for more than twenty-five (25) years.
(c) The revenue generated by a tax rate imposed under this section
must be distributed directly to the county before the remainder of the
expenditure rate revenue is distributed. The revenue shall be
maintained in a separate dedicated county fund. The revenue shall be
used by the county:
(1) in the case of a tax rate adopted under this section before
January 1, 2024, only for paying for county staff expenses of the
state judicial system in the county; and
(2) in the case of a tax rate adopted under this section after
December 31, 2023, only for paying the courtroom costs of the
SEA 1 — Concur
176
state judicial system in the county.
(d) This subsection applies to a tax rate adopted under subsection
(b)(1). The local income tax revenue budgeted and spent under this
section by each county may not comprise more than fifty percent (50%)
of the county's total budgeted operational staffing expenses related to
the state judicial system in any given year.
(e) This subsection applies to a tax rate adopted under subsection
(b)(2). The local income tax revenue spent under this section by each
county may not comprise more than fifty percent (50%) of the county's
total operational staffing expenses related to the courtroom costs of the
state judicial system in any given year.
(f) Counties that enact an ordinance to impose a tax rate under this
section shall annually report the following information for the prior
calendar year by May 1 to the justice reinvestment advisory council
established by IC 33-38-9.5-2:
(1) The types of court positions paid with local income tax
revenue generated by this section.
(2) The number of court positions by type paid for with local
income tax revenue generated by this section.
(3) The average salary by type of court position paid for with local
income tax revenue generated by this section.
(4) The county's total budgeted and actual staffing expenses or
courtroom costs, whichever is applicable, related to the state
judicial system.
(5) The county's portion of local income tax revenue that was
actually spent on staffing expenses or courtroom costs, whichever
is applicable, related to the state judicial system.
(g) The justice reinvestment advisory council shall annually compile
and report to the legislative council prior to July 1 of each year the
information required in subsection (f) for each county. The report must
be in an electronic format under IC 5-14-6.
SECTION 124. IC 6-3.6-6-3, AS AMENDED BY P.L.137-2024,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 3. (a) Revenue raised from a tax imposed under
this chapter shall be treated as follows:
(1) To make the following distributions:
(A) If an ordinance described in section 2.5 of this chapter is
in effect in a county, to make a distribution to the county equal
to the amount of revenue generated by the rate imposed under
section 2.5 of this chapter.
(B) If an ordinance described in section 2.6 of this chapter is
in effect in a county, to make a distribution to the county equal
SEA 1 — Concur
177
to the amount of revenue generated by the rate imposed under
section 2.6 of this chapter.
(C) If an ordinance described in section 2.7 of this chapter is
in effect in a county, to make a distribution to the county equal
to the amount of revenue generated by the rate imposed under
section 2.7 of this chapter.
(D) If an ordinance described in section 2.8 of this chapter is
in effect in a county, to make a distribution to the county equal
to the amount of revenue generated by the rate imposed under
section 2.8 of this chapter.
(2) After making the distributions described in subdivision (1), if
any, to make distributions to school corporations and civil taxing
units in counties that formerly imposed a tax under IC 6-3.5-1.1
(repealed). The revenue categorized from the next twenty-five
hundredths percent (0.25%) of the rate for a former tax adopted
under IC 6-3.5-1.1 (repealed) shall be allocated to school
corporations and civil taxing units. The amount of the allocation
to a school corporation or civil taxing unit shall be determined
using the allocation amounts for civil taxing units and school
corporations in the county.
(3) After making the distributions described in subdivisions (1)
and (2), the remaining revenue shall be treated as additional
revenue (referred to as "additional revenue" in this chapter).
Additional revenue may not be considered by the department of
local government finance in determining:
(A) any taxing unit's maximum permissible property tax levy
limit under IC 6-1.1-18.5; or
(B) the approved property tax rate for any fund.
(b) (a) In the case of a civil taxing unit that has pledged the tax from
additional general purpose revenue for the payment of bonds, leases,
or other obligations as reported by the civil taxing unit under IC 5-1-18,
the adopting body may not under section 4 of this chapter, reduce the
proportional allocation of the additional general purpose revenue that
was allocated in the preceding year if the reduction for that year would
result in an amount less than the amount necessary for the payment of
bonds, leases, or other obligations payable or required to be deposited
in a sinking fund or other reserve in that year for the bonds, leases, or
other obligations for which the tax from additional general purpose
revenue has been pledged. To inform an adopting body with regard to
allocations that affect the payment of bonds, leases, or other
obligations, a taxing unit may provide the adopting body with
information regarding any outstanding bonds, leases, or other
SEA 1 — Concur
178
obligations that are secured by additional general purpose revenue.
The information must be provided before the date of the public hearing
at which the adopting body may change the allocation of additional
general purpose revenue under section 4 of this chapter.
(b) In the case of a civil taxing unit that is obligated to make
payments to the northwest Indiana regional development authority
from general purpose revenue for the payment of bonds, leases, or
other obligations related to northwest Indiana rail projects (as
defined in IC 5-1.3-2-14) and projects described in IC 36-7.5-4-2.5,
the adopting body may not reduce the proportional allocation
amounts of the general purpose revenue as allocated in the
immediately preceding year if the reduction would result in an
allocation that is less than the amount necessary for the civil taxing
unit to make the payments to the northwest Indiana regional
development authority for the payment of the bonds, leases, or
other obligations.
SECTION 125. IC 6-3.6-6-3.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 3.1. (a) As used in this section,
"homestead" has the meaning set forth in IC 6-1.1-12-37.
(b) A county fiscal body may adopt an ordinance to impose a tax
rate for the purpose of funding property tax homestead credits to
reduce the property tax liability of taxpayers who own homesteads
that are:
(1) located in the county; and
(2) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the
taxpayer's property tax liability for the property to one
percent (1%).
Revenue collected from a tax rate imposed under this section may
only be used to fund replacement of the county's property tax levy.
Property taxes imposed due to a referendum in which a majority
of the voters in the taxing unit imposing the property taxes
approved the property taxes are not eligible for a credit under this
section.
(c) The tax rate must be in increments of one-hundredth of one
percent (0.01%) and may not exceed three-tenths of one percent
(0.3%).
(d) A tax imposed under this section shall be treated as property
taxes for all purposes. However, the department of local
government finance may not reduce:
(1) any taxing unit's maximum permissible property tax levy
limit under IC 6-1.1-18.5; or
SEA 1 — Concur
179
(2) the approved property tax levy or rate for any fund;
by the amount of any credits granted under this chapter.
(e) The homestead credits shall be applied to the net property
taxes due on the homestead after the application of any credit
granted under IC 6-1.1, including any credit granted under
IC 6-1.1-20.4 and IC 6-1.1-20.6.
(f) The property tax credits must be applied uniformly to
provide a homestead credit for homesteads in the county.
(g) The county auditor shall allocate the amount of revenue
applied as tax credits under this section to the taxing units that
imposed the eligible property taxes against which the credits are
applied.
(h) The department of local government finance shall assist
county fiscal bodies and county auditors in calculating credit
percentages and amounts.
(i) Notwithstanding any provision to the contrary in this
chapter, a tax imposed under this section:
(1) may be imposed on the adjusted gross income of taxpayers
before January 1, 2028; and
(2) terminates and may not be imposed on the adjusted gross
income of taxpayers after December 31, 2027.
(j) This section expires January 1, 2028.
SECTION 126. IC 6-3.6-6-4, AS AMENDED BY P.L.247-2017,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 4. (a) General purpose revenue raised from a
tax rate under section 2(b)(1) of this chapter must be distributed
directly to the county. The money may be used by the county fiscal
body for any of the purposes of the county, including for:
(1) public safety, including funding for a PSAP;
(2) economic development purposes described in IC 6-3.6-10;
(3) acute care hospitals;
(4) correctional facilities and rehabilitation facilities;
(5) county staff expenses of the state judicial system; and
(6) homestead property tax credits to fund replacement of the
county's property tax levy.
(b) The adopting body shall, by ordinance, determine how the
additional general purpose revenue from a tax under this chapter must
be allocated in subsequent years. The allocations are subject to
IC 6-3.6-11. The ordinance must be adopted as provided in IC 6-3.6-3
and takes effect and applies as specified in IC 6-3.6-3-3. The ordinance
continues to apply thereafter until it is rescinded or modified. The
revenue must be allocated among one (1) or more of the following uses
SEA 1 — Concur
180
as provided in this chapter:
(1) Public safety.
(2) Economic development projects.
(3) Certified shares.
The ordinance must describe the allocation of additional revenue by
use of percentages.
SECTION 127. IC 6-3.6-6-4.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 4.3. (a) Revenue raised from a tax
rate for fire protection and emergency medical services under
section 2(b)(2) of this chapter shall be distributed by the county to
each fire protection district, fire protection territory, and
municipal fire department located within the county. At the
discretion of the county council, the county may distribute revenue
raised from a tax rate for fire protection and emergency medical
services under section 2(b)(2) of this chapter to township fire
departments and volunteer fire departments.
(b) Revenue raised from a tax rate for fire protection and
emergency medical services under section 2(b)(2) of this chapter
shall be allocated to each fire protection district, fire protection
territory, municipal fire department, and, if applicable, township
fire departments and volunteer fire departments, based on the
following formula:
STEP ONE: For each provider of fire protection and
emergency medical services located within the county that is
eligible to receive revenue under this section, determine the
population living within the service boundaries of the
provider using the most recent federal decennial census.
STEP TWO: For each provider of fire protection and
emergency medical services located within the county that is
eligible to receive revenue under this section, determine the
number of square miles within the service boundaries of the
provider.
STEP THREE: For each provider of fire protection and
emergency medical services located within the county that is
eligible to receive revenue under this section, determine the
product of:
(A) the STEP TWO amount; multiplied by
(B) twenty (20).
STEP FOUR: For each provider of fire protection and
emergency medical services located within the county that is
eligible to receive revenue under this section, determine the
SEA 1 — Concur
181
sum of:
(A) the STEP ONE result; plus
(B) the STEP THREE result.
STEP FIVE: Determine the sum total of the STEP FOUR
results for each provider of fire protection and emergency
medical services located within the county that is eligible to
receive revenue under this section.
STEP SIX: The percentage of revenue that shall be
distributed to each provider of fire protection and emergency
medical services located within the county that is eligible to
receive revenue under this section is equal to:
(A) the STEP FOUR result for the provider; divided by
(B) the STEP FIVE result.
SECTION 128. IC 6-3.6-6-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 4.5. (a) Revenue raised from a tax
rate for nonmunicipal civil taxing units under section 2(b)(3) of this
chapter may be distributed by the county to nonmunicipal civil
taxing units subject to the provisions of this section.
(b) Subject to the maximum aggregate tax rate of not more than
two-tenths of one percent (0.2%) under section 2(b)(3) of this
chapter, the adopting body may adopt a tax rate for each type of
nonmunicipal civil taxing unit, which may not exceed more than
five-hundredths of one percent (0.05%) for any given unit type.
The revenue raised from a tax rate for a specific type of
nonmunicipal civil taxing unit shall be allocated to all
nonmunicipal civil taxing units of that same type located within the
county on a pro rata per capita basis, subject to subsection (e).
(c) A county solid waste management district (as defined in
IC 13-11-2-47) or a joint solid waste management district (as
defined in IC 13-11-2-113) is not an eligible nonmunicipal civil
taxing unit for the purpose of receiving an allocation of general
purpose revenue under this chapter unless a majority of the
members of each of the county fiscal bodies of the counties within
the district passes a resolution approving the distribution.
(d) A resolution passed by a county fiscal body under subsection
(c) may:
(1) expire on a date specified in the resolution; or
(2) remain in effect until the county fiscal body revokes or
rescinds the resolution.
(e) A nonmunicipal civil taxing unit wishing to receive a share
of revenue under this section in a year must adopt a resolution
SEA 1 — Concur
182
requesting the distribution from the county and must provide a
certified copy of the resolution to the adopting body not later than
July 1 of the year immediately preceding the distribution year. Not
later than August 1 of the year immediately preceding the
distribution year, the adopting body shall hold a public hearing on
the resolution requesting the distribution and provide the public
with notice of the time and place where the public hearing will be
held. The notice must be given in accordance with IC 5-3-1 and
include a description of the resolution requesting the distribution
from the county.
(f) If a nonmunicipal civil taxing unit adopts a resolution under
this subsection and provides the resolution to the adopting body as
set forth in this subsection, the county shall distribute to the
nonmunicipal civil taxing unit an amount of revenue raised from
the tax rate under section 2(b)(3) of this chapter for the
distribution year as set forth in subsection (f).
(g) If one (1) or more, but not all, nonmunicipal civil taxing
units adopt a resolution under subsection (e) requesting a
distribution in a given year, the county may either distribute the
total amount of revenue raised from the tax rate under section
2(b)(3) of this chapter to only those nonmunicipal civil taxing units
that have provided a resolution request, or the county may
distribute the total amount of revenue raised from a tax rate under
section 2(b)(3) of this chapter to all nonmunicipal civil taxing units
as set forth in this section. If no nonmunicipal civil taxing units
adopt a resolution to request a distribution in a given year, the
county may retain the revenue raised from a tax rate for
nonmunicipal civil taxing units for that year and use the revenue
as general purpose revenue for the county under section 4 of this
chapter.
SECTION 129. IC 6-3.6-6-6.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 6.1. (a) Revenue raised from a tax
rate for certain cities and towns under section 2(b)(4) of this
chapter may be distributed by the county to those cities and towns
subject to the provisions of this section.
(b) Subject to subsection (g), the revenue raised from a tax rate
under section 2(b)(4) of this chapter shall be allocated to the cities
and towns based on the population of the city or the population of
the town, whichever is applicable, compared to the population of
all the cities or the population of all the towns, whichever is
applicable, that are eligible for a distribution, subject to subsection
SEA 1 — Concur
183
(d). For purposes of this determination, if the boundaries of a city
or town are located in more than one (1) county, only the portion
of the population of the city or town that is located within the
county imposing the tax rate under section 2(b)(4) of this chapter
shall be considered.
(c) The money may be used by the city or town fiscal body for
any of the purposes of the city or town, including public safety (as
defined in IC 6-3.6-2-14) and economic development purposes
described in IC 6-3.6-10. The city or town fiscal body may pledge
its general purpose revenue to the payment of bonds or to lease
payments as set forth in this chapter.
(d) An eligible city or town wishing to receive a share of revenue
under this section in a year must adopt a resolution requesting the
distribution from the county and must provide a certified copy of
the resolution to the adopting body not later than July 1 of the year
immediately preceding the distribution year. Not later than August
1 of the year immediately preceding the distribution year, the
adopting body shall hold a public hearing on the resolution
requesting the distribution and provide the public with notice of
the time and place where the public hearing will be held. The notice
must be given in accordance with IC 5-3-1 and include a
description of the resolution requesting the distribution from the
county.
(e) Subject to subsection (g), if an eligible city or town adopts a
resolution under this subsection and provides the resolution to the
adopting body as set forth in this subsection, the county shall
distribute to the eligible city or town unit an amount of revenue
raised from the tax rate under section 2(b)(4) of this chapter for
the distribution year as set forth in subsection (f).
(f) Subject to subsection (g), if one (1) or more, but not all,
eligible cities or towns adopt a resolution under subsection (d)
requesting a distribution in a given year, the county may either
distribute the total amount of revenue raised from the tax rate
under section 2(b)(4) of this chapter to only those eligible cities or
towns that have provided a resolution request, or the county may
distribute the total amount of revenue raised from a tax rate under
section 2(b)(4) of this chapter to all eligible cities or towns as set
forth in this section. If no eligible city or town adopts a resolution
to request a distribution in a given year, the county may retain the
revenue raised from a tax rate for the eligible city or town for that
year and use the revenue as general purpose revenue for the county
under section 4 of this chapter.
SEA 1 — Concur
184
(g) Notwithstanding any provision to the contrary in this
section, if an adopting body that imposes a tax rate of one and
two-tenths percent (1.2%) under section 2(b)(1) of this chapter
subsequently adopts an ordinance to concurrently impose a tax
rate under section 2(b)(4) of this chapter:
(1) seventy-five percent (75%) of the revenue received from
the tax rate imposed under section 2(b)(4) of this chapter shall
be retained by the county and may be used for the purposes
described in section 4 of this chapter; and
(2) twenty-five percent (25%) of the revenue received from
the tax rate imposed under section 2(b)(4) of this chapter shall
be distributed among the eligible cities and towns as set forth
in this section and may be used for the purposes set forth in
this section.
However, the adopting body may, by ordinance, determine to
allocate any percentage of the revenue that would otherwise be
retained by the county under subdivision (1) to instead be allocated
among the eligible cities and towns under subdivision (2).
SECTION 130. IC 6-3.6-6-8, AS AMENDED BY P.L.101-2024,
SECTION 2, IS 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
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:
SEA 1 — Concur
185
(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
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
SEA 1 — Concur
186
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
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
SEA 1 — Concur
187
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).
SECTION 131. IC 6-3.6-6-8.5, AS AMENDED BY P.L.104-2022,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 8.5. (a) This section applies only to Marion
County.
(b) The adopting body may allocate additional general purpose
revenue to fund the operation of a public library in Marion County as
provided in an election, if any, made by the county fiscal body under
IC 36-3-7-6. An allocation under this section shall be made from the
part of the additional revenue that would otherwise be allocated as
certified shares.
(c) The adopting body may allocate additional general purpose
revenue to fund the operation of a public transportation corporation as
provided in an election, if any, made by the county fiscal body under
IC 36-9-4-42. An allocation under this section shall be made from the
part of the additional revenue that would otherwise be allocated as
certified shares.
(d) The adopting body may allocate additional general purpose
revenue to fund the operation of a public communications systems and
computer facilities district as provided in an election, if any, made by
the county fiscal body under IC 36-8-15-19(b). The additional revenue
shall be allocated and distributed before the allocation and distribution
of the remaining tax revenue under this chapter.
SECTION 132. IC 6-3.6-6-9 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 9. (a) This section applies to the allocation of additional
revenue from a tax under this chapter for economic development
purposes.
(b) Money designated for economic development purposes shall be
allocated to the county, cities, and towns for use by the taxing unit's
fiscal body for any of the purposes described in IC 6-3.6-10. Except as
provided in subsections (c) and (d) and IC 6-3.6-11, and subject to
SEA 1 — Concur
188
adjustment as provided in IC 36-8-19-7.5, the amount of the certified
distribution allocated to economic development purposes that the
county and each city or town in a county is entitled to receive each
month of each year equals the amount determined using the following
formula:
STEP ONE: Determine the sum of:
(A) the total property taxes being imposed by the county, city,
or town during the calendar year preceding the distribution
year; plus
(B) for a county, the welfare allocation amount.
STEP TWO: Determine the quotient of:
(A) The STEP ONE amount; divided by
(B) the sum of the total property taxes that are first due and
payable to the county and all cities and towns of the county
during the calendar year preceding the distribution year plus
the welfare allocation amount.
STEP THREE: Determine the product of:
(A) the amount of the certified distribution allocated to
economic development purposes for that month; multiplied by
(B) the STEP TWO amount.
(c) The body imposing the tax may adopt an ordinance before
August 2 of a year to provide for a distribution of the amount allocated
to economic development purposes based on population instead of a
distribution under subsection (b). The following apply if an ordinance
is adopted under this subsection:
(1) The ordinance is effective January 1 of the following year.
(2) The amount of the certified distribution allocated to economic
development purposes that the county and each city and town in
the county are entitled to receive during each month of each year
equals the product of:
(A) the amount of the certified distribution that is allocated to
economic development purposes for the month; multiplied by
(B) the quotient of:
(i) for a city or town, the population of the city or the town
that is located in the county and for a county, the population
of the part of the county that is not located in a city or town;
divided by
(ii) the population of the entire county.
(3) The ordinance may be made irrevocable for the duration of
specified lease rental or debt service payments.
(d) In a county having a consolidated city, only the consolidated city
is entitled to the amount of the certified distribution that is allocated to
SEA 1 — Concur
189
economic development purposes.
SECTION 133. IC 6-3.6-6-9.5, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 9.5. (a) The executive of a county, city, or town
may:
(1) adopt a capital improvement plan specifying the uses of the
additional general purpose revenue to be allocated for economic
development purposes; or
(2) designate the county or a city or town in the county as the
recipient of all or a part of its share of the additional general
purpose revenue that is distributed to it for economic
development purposes.
(b) If a designation is made under subsection (a)(2), the county
treasurer shall transfer the share or part of the share to the designated
unit unless that unit does not have a capital improvement plan.
(c) A county, city, or town that fails to adopt a capital improvement
plan may not receive
(1) its fractional amount of the additional revenue to be allocated
for economic development purposes; or
(2) any amount designated under subsection (a)(2)
for the year or years in which the unit does not have a plan. The county
treasurer shall retain the amounts not distributed for such a unit in a
separate account until the unit adopts a plan. Interest on the separate
account becomes part of the account. If a unit fails to adopt a plan for
a period of three (3) years, the balance in the separate account shall be
distributed to the other units in the county in the same manner that
other additional general purpose revenue allocated for economic
development purposes is distributed.
(d) A capital improvement plan must include the following
components:
(1) Identification and general description of each project that
would be funded by other additional general purpose revenue
allocated for economic development purposes.
(2) The estimated total cost of the project.
(3) Identification of all sources of funds expected to be used for
each project.
(4) The planning, development, and construction schedule of each
project.
(e) A capital improvement plan:
(1) must encompass a period of not less than two (2) years; and
(2) must incorporate projects the cost of which is at least
seventy-five percent (75%) of the fractional amount of additional
SEA 1 — Concur
190
general purpose revenue allocated for economic development
purposes that is expected to be received by the county, city, or
town in that period.
(f) In making a designation under subsection (a)(2), the executive
must specify the purpose and duration of the designation. If the
designation is made to provide for the payment of lease rentals or bond
payments, the executive may specify that the designation and its
duration are irrevocable.
SECTION 134. IC 6-3.6-6-10 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 10. (a) This section applies to additional revenue from
a tax under this chapter that is allocated for certified shares.
(b) Additional revenue remaining from a tax imposed under this
chapter, after deducting the amounts allocated to public safety purposes
and economic development purposes, shall be allocated among the civil
taxing units as certified shares.
SECTION 135. IC 6-3.6-6-11 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 11. (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) Any civil taxing unit that imposed an ad valorem property tax
levy in the county for the calendar year preceding the distribution year
is eligible for an allocation for the distribution year under this chapter.
(c) A school corporation is not a civil taxing unit for the purpose of
receiving an allocation of certified shares under this chapter. The
distributions to school corporations and civil taxing units in counties
that formerly imposed a tax under IC 6-3.5-1.1 (repealed) as provided
in section 3(a)(2) of this chapter is not considered an allocation of
certified shares. A school corporation's allocation amount for purposes
of section 3(a)(2) of this chapter shall be determined under section 12
of this chapter.
(d) A county solid waste management district (as defined in
IC 13-11-2-47) or a joint solid waste management district (as defined
in IC 13-11-2-113) is not a civil taxing unit for the purpose of receiving
an allocation of certified shares under this chapter unless a majority of
the members of each of the county fiscal bodies of the counties within
the district passes a resolution approving the distribution.
(e) A resolution passed by a county fiscal body under subsection (d)
may:
(1) expire on a date specified in the resolution; or
(2) remain in effect until the county fiscal body revokes or
rescinds the resolution.
SECTION 136. IC 6-3.6-6-12 IS REPEALED [EFFECTIVE JULY
SEA 1 — Concur
191
1, 2027]. 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.
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; 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.
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.
SEA 1 — Concur
192
(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
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 137. IC 6-3.6-6-14 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 14. (a) This section applies to an allocation of certified
shares in a county other than Marion County.
(b) Subject to this chapter, certified shares must be allocated among
civil taxing units based on the attributed allocation amount.
(c) The amount of certified shares to be allocated to each civil
taxing unit is equal to:
(1) the total amount of the certified distribution that is allocated
to certified shares for the county for the month; multiplied by
(2) the quotient of:
(A) the attributed allocation amount for the civil taxing unit in
the county during the calendar year; divided by
(B) the sum of the attributed allocation amounts for all civil
taxing units in the county during the calendar year.
SECTION 138. IC 6-3.6-6-15 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 15. (a) This section applies to an allocation or
distribution, or both, of certified shares that is required to be made to
a civil taxing unit in a county other than Marion County.
(b) IC 36-8-19-7.5 applies to the adjustment of the amounts
distributed to a civil taxing unit that participates in a fire protection
territory.
SECTION 139. IC 6-3.6-6-16 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 16. IC 6-3.6-11 applies to the allocation of certified
shares in Marion County.
SECTION 140. IC 6-3.6-6-17, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SEA 1 — Concur
193
JULY 1, 2027]: Sec. 17. A county, city, town, or nonmunicipal civil
taxing unit may use its certified shares general purpose revenue for
any of the purposes of the civil taxing unit.
SECTION 141. IC 6-3.6-6-18, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 18. (a) A county, city, town, or nonmunicipal
civil taxing unit may pledge its certified shares general purpose
revenue to the payment of bonds or to lease payments for:
(1) any purpose of the civil taxing unit;
(2) any purpose of another governmental entity located in any part
in the county, including a governmental entity organized on a
regional basis; or
(3) any purpose for which certified shares general purpose
revenue may be used by the unit under IC 6-3.6-10. this
chapter.
(b) The pledge must be approved in an ordinance adopted by the
fiscal body of the political subdivision.
SECTION 142. IC 6-3.6-6-19, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 19. (a) A county, city, town, or nonmunicipal
civil taxing unit may distribute any part of its certified shares general
purpose revenue to any governmental entity located in any part of its
county to:
(1) carry out a joint purpose; or
(2) fund the purposes of the other governmental entity;
including a governmental entity organized on a regional basis to serve
an area in more than one (1) county.
(b) The distribution must be authorized by ordinance of the fiscal
body of the civil taxing unit to which the revenue is allocated by this
chapter. An ordinance must specify the purpose of the designation and
its duration.
(c) The fiscal body officer of the civil taxing unit may direct the
county auditor in accordance with the ordinance to withhold from the
civil taxing unit's allocation the amount that is the subject of the
ordinance and distribute the amount directly to the other governmental
entity authorized to receive the money.
SECTION 143. IC 6-3.6-6-20 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 20. (a) This section does not apply to distributions of
revenue under section 9 of this chapter.
(b) This section applies only to the following:
(1) Any allocation or distribution of revenue under section 3(a)(2)
of this chapter that is made on the basis of property tax levies in
SEA 1 — Concur
194
counties that formerly imposed a tax under IC 6-3.5-1.1 (before
its repeal January 1, 2017).
(2) Any allocation or distribution of revenue under section 3(a)(3)
of this chapter that is made on the basis of property tax levies in
counties that formerly imposed a tax under IC 6-3.5-6 (before its
repeal January 1, 2017).
(c) Subject to subsection (b), if a school corporation or civil taxing
unit of an adopting county does not impose a property tax levy that is
first due and payable in the calendar year preceding the year in which
revenue under section 3(a)(2) or 3(a)(3) of this chapter is being
allocated or distributed, that school corporation or civil taxing unit is
entitled to receive a part of the revenue under section 3(a)(2) or 3(a)(3)
of this chapter (as appropriate) to be distributed within the county. The
fractional amount that such a school corporation or civil taxing unit is
entitled to receive each month during that calendar year equals the
product of:
(1) the amount of revenue under section 3(a)(2) or 3(a)(3) of this
chapter to be distributed on the basis of property tax levies during
that month; multiplied by
(2) a fraction. The numerator of the fraction equals the budget of
that school corporation or civil taxing unit for the distribution
year. The denominator of the fraction equals the aggregate
budgets of all school corporations or civil taxing units of that
county for the distribution year.
(d) Subject to subsection (b), if for a calendar year a school
corporation or civil taxing unit is allocated a part of a county's revenue
under section 3(a)(2) or 3(a)(3) of this chapter by subsection (c), the
calculations used to determine the shares of revenue of all other school
corporations and civil taxing units under section 3(a)(2) or 3(a)(3) of
this chapter (as appropriate) shall be changed each month for that same
year by reducing the amount of revenue to be distributed by the amount
of revenue under section 3(a)(2) or 3(a)(3) of this chapter allocated
under subsection (c) for that same month. The department of local
government finance shall make any adjustments required by this
subsection and provide them to the appropriate county auditors.
SECTION 144. IC 6-3.6-6-21, AS ADDED BY P.L.229-2017,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 21. A county, city, town, or nonmunicipal civil
taxing unit may contribute any part of its certified shares general
purpose revenue to the regional development infrastructure fund
established by IC 36-9-43-9. The contribution must be approved in an
ordinance adopted by the fiscal body of the political subdivision.
SEA 1 — Concur
195
SECTION 145. IC 6-3.6-6-21.2 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 21.2. A school corporation that receives a distribution of
revenue under section 3 of this chapter may allocate the revenue among
any of its funds.
SECTION 146. IC 6-3.6-6-21.3, AS ADDED BY P.L.137-2024,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 21.3. (a) This section applies to distributions of
revenue before January 1, 2028. This section:
(1) does not apply to:
(A) distributions made under this chapter to a civil taxing unit
for fire protection services within a fire protection territory
established under IC 36-8-19; or
(B) distributions of revenue under section 9 of this chapter
(before its repeal); and
(2) applies only to the following:
(A) Any allocation or distribution of revenue under section
3(a)(2) of this chapter (as in effect before July 1, 2027) that
is made on the basis of property tax levies in counties that
formerly imposed a tax under IC 6-3.5-1.1 (before its repeal on
January 1, 2017).
(B) Any allocation or distribution of revenue under section
3(a)(3) of this chapter (as in effect before July 1, 2027) that
is made on the basis of property tax levies in counties that
formerly imposed a tax under IC 6-3.5-6 (before its repeal on
January 1, 2017).
(b) Subject to subsection (a), if two (2) or more:
(1) school corporations; or
(2) civil taxing units;
of an adopting county merge or consolidate to form a single school
corporation or civil taxing unit, the school corporation or civil taxing
unit that is in existence on January 1 of the current year is entitled to
the combined pro rata distribution of the revenue under section 3(a)(2)
or 3(a)(3) (as in effect before July 1, 2027) of this chapter (as
appropriate) allocated to each applicable school corporation or civil
taxing unit in existence on January 1 of the immediately preceding
calendar year prior to the merger or consolidation.
(c) The department of local government finance shall make
adjustments to civil taxing units in accordance with IC 6-1.1-18.5-7.
SECTION 147. IC 6-3.6-6-22 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 22. (a) As used in this section,
"municipality" means only a city or town that:
SEA 1 — Concur
196
(1) has a population of three thousand five hundred (3,500) or
more; and
(2) in the case of a city or town whose population decreased in
the most recent federal decennial census from three thousand
five hundred (3,500) or more to less than three thousand five
hundred (3,500), has elected by ordinance to continue to use
its previous population of three thousand five hundred (3,500)
or more as set forth in section 23(b)(2) of this chapter for
purposes of the allocation determination under section 6.1 of
this chapter.
The term does not include a city or town that has made an election
under section 23(b)(3) of this chapter.
(b) Beginning after December 31, 2027, the fiscal body of a
municipality may by ordinance and subject to subsection (e),
impose a local income tax rate on the adjusted gross income of
local taxpayers in the municipality that does not exceed one and
two-tenths percent (1.2%).
(c) The following apply if a municipality imposes a local income
tax rate under this section:
(1) A local income tax rate imposed by a municipality under
this section applies only to local taxpayers within the territory
of the municipality.
(2) The local income tax is imposed in addition to a tax
imposed by the county in which the municipality is located in
accordance with IC 6-3.6-4-1(a) and IC 6-3.6-4-1(c).
(3) The following provisions of this article apply to a local
income tax rate imposed by a municipality under subsection
(b):
(A) IC 6-3.6-3 (adoption of the tax), including the effective
date of an ordinance under IC 6-3.6-3-3.3.
(B) IC 6-3.6-4 (imposition of the tax), except that
IC 6-3.6-4-2 and IC 6-3.6-4-3 do not apply.
(C) IC 6-3.6-8 (administration of the tax).
(4) A local income tax rate imposed by a municipality shall
apply to professional athletes who compete in the
municipality, unless exempted under IC 6-3-2-27.5 or other
provision of law.
(d) The amount of the tax revenue that is from the local income
tax rate imposed under this section and that is collected for a
calendar year shall be treated as general purpose revenue and
must be distributed to the fiscal officer of the municipality that
imposed the tax before July 1 of the next calendar year.
SEA 1 — Concur
197
(e) Beginning after December 31, 2030, a tax rate imposed under
subsection (b) shall expire on December 31 of each calendar year.
A municipality wishing to continue, increase, or decrease a tax rate
in the succeeding year must pass an ordinance to readopt a tax rate
in accordance with IC 6-3.6-3-3.3. This subsection applies
regardless of whether there is a modification in the tax rate or the
rate is unchanged from the previous year.
SECTION 148. IC 6-3.6-6-23 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 23. (a) This section applies in
determining the population of a city or town for the purposes of
this chapter.
(b) The following apply:
(1) Except as provided in subdivisions (2) and (3), the
population of a city or town is the population of the city or
town that is reported by the 2020 federal decennial census.
(2) Beginning after 2030, if the population of a city or town:
(A) increases from a population of less than three thousand
five hundred (3,500), as reported by the immediately
preceding federal decennial census, to a population of
three thousand five hundred (3,500) or more, as reported
by the most recent federal decennial census, or, if
applicable, any corrected population count (as defined in
IC 1-1-3.5-1.5) issued for the city or town in the year
succeeding the most recent federal decennial census; or
(B) decreases from a population of three thousand five
hundred (3,500) or more, as reported by the immediately
preceding federal decennial census, to a population of less
than three thousand five hundred (3,500), as reported by
the most recent federal decennial census, or, if applicable,
any corrected population count (as defined in
IC 1-1-3.5-1.5) issued for the city or town in the year
succeeding the most recent federal decennial census;
the fiscal body of the city or town may adopt an ordinance on
or before September 1 of the calendar year immediately
succeeding the most recent federal decennial census to
continue to use the population of the city or town as reported
by the immediately preceding federal decennial census and
the resulting determination for the city or town under section
22 of this chapter, notwithstanding the increase or decrease in
its population as reported by the most recent federal
decennial census as described in this subdivision. An
SEA 1 — Concur
198
ordinance adopted under this subdivision shall take effect on
January 1 of the calendar year that immediately succeeds the
year in which the ordinance is adopted. The fiscal officer of
the city or town shall provide a certified copy of an ordinance
adopted under this subdivision to the department of local
government finance.
(3) This subdivision applies only to cities and towns with a
population of more than three thousand five hundred (3,500)
but less than seven thousand (7,000). Notwithstanding any
other provision, a fiscal body of a city or town may adopt an
ordinance to elect to be treated as if the city's or town's
population is less than three thousand five hundred (3,500) for
purposes of a county local income tax rate and distribution
under this chapter. An ordinance adopted under this
subdivision shall take effect on January 1 of the calendar year
that immediately succeeds the year in which the ordinance is
adopted. The fiscal officer of the city or town shall provide a
certified copy of an ordinance adopted under this subdivision
to the department of local government finance. An ordinance
adopted by a city or town under this subdivision is not
revocable and shall not expire following the next federal
decennial census.
SECTION 149. IC 6-3.6-7-9, AS AMENDED BY P.L.239-2023,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 9. (a) This section applies only to Hancock
County.
(b) The county fiscal body may, by ordinance, allocate part of the
tax rate imposed under IC 6-3.6-5 (before its expiration), not to
exceed a tax rate of fifteen hundredths percent (0.15%), to a property
tax credit against the property tax liability imposed for public libraries
in the county, if all territory in the county is included in a library
district. The county treasurer shall establish a library property tax
replacement fund to be used only for the purposes described in this
section. Tax revenues derived from the part of the tax rate imposed
under IC 6-3-5 IC 6-3.6-5 (before its expiration) that is designated for
property tax replacement credits under this section shall be deposited
in the library property tax replacement fund. Any interest earned on
money in the library property tax replacement fund shall be credited to
the library property tax replacement fund.
(c) The amount of property tax replacement credits that each public
library in the county is entitled to receive during a calendar year under
this section (before the expiration of IC 6-3.6-5) equals the lesser of:
SEA 1 — Concur
199
(1) the product of:
(A) the amount of revenue deposited by the county auditor in
the library property tax replacement fund; multiplied by
(B) a fraction described as follows:
(i) The numerator of the fraction equals the sum of the total
property taxes that would have been collected by the public
library during the previous calendar year from taxpayers
located within the library district if the property tax
replacement under this section had not been in effect.
(ii) The denominator of the fraction equals the sum of the
total property taxes that would have been collected during
the previous year from taxpayers located within the county
by all public libraries that are eligible to receive property tax
replacement credits under this section if the property tax
replacement under this section had not been in effect; or
(2) the total property taxes that would otherwise be collected by
the public library for the calendar year if the property tax
replacement credit under this section were not in effect.
The department of local government finance shall make any
adjustments necessary to account for the expansion of a library district.
However, a public library is eligible to receive property tax
replacement credits under this section only if it has entered into
reciprocal borrowing agreements with all other public libraries in the
county. If the total amount of tax revenue deposited by the county
auditor in the library property tax replacement fund for a calendar year
exceeds the total property tax liability that would otherwise be imposed
for public libraries in the county for the year, the excess must remain
in the library property tax replacement fund and may be used for library
property tax replacement purposes in the following calendar year.
(d) A public library receiving property tax replacement credits under
this section shall allocate the credits among each fund for which a
distinct property tax levy is imposed in proportion to the property taxes
levied for each fund. However, if a public library did not impose a
property tax levy during the previous calendar year or did not impose
a property tax levy for a particular fund during the previous calendar
year, but the public library is imposing a property tax levy in the
current calendar year or is imposing a property tax levy for the
particular fund in the current calendar year, the department of local
government finance shall adjust the amount of property tax
replacement credits allocated among the various funds of the public
library and shall provide the adjustment to the county auditor. If a
public library receiving property tax replacement credits under this
SEA 1 — Concur
200
section does not impose a property tax levy for a particular fund that is
first due and payable in a calendar year in which the property tax
replacement credits are being distributed, the public library is not
required to allocate to that fund a part of the property tax replacement
credits to be distributed to the public library. Notwithstanding
IC 6-1.1-20-1.1(a)(1), a public library that receives property tax
replacement credits under this section is subject to the procedures for
the issuance of bonds set forth in IC 6-1.1-20.
(e) A public library shall treat property tax replacement credits
received during a particular calendar year under this section as a part
of the public library's property tax levy for each fund for that same
calendar year for purposes of fixing the public library's budget and for
purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
(f) For the purpose of allocating tax revenue under IC 6-3.6-6 and
computing and distributing tax revenue under IC 6-5.5 or IC 6-6-5, the
property tax replacement credits that are received under this section
shall be treated as though they were property taxes that were due and
payable during that same calendar year.
SECTION 150. IC 6-3.6-7-28, AS AMENDED BY P.L.136-2024,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 28. (a) This section applies to Grant County and
only if the local income tax council county adopting body repeals
provisions of its local income tax ordinance providing that under
IC 6-3.6-10-2(7) one-hundredth of one percent (0.01%) of the county's
special purpose rate revenue is used to fund the Grant County
Economic Growth Council, Inc.
(b) The local income tax council county adopting body 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, 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 local income tax council county adopting body makes the
determination set forth in subsection (b), the local income tax council
county adopting 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) Five-tenths percent (0.5%).
(2) The rate necessary to carry out the purposes described in this
SEA 1 — Concur
201
section.
The tax rate may not be greater than the rate necessary to pay for the
purposes described in subsection (b).
(d) The tax rate used to pay for the purposes described in subsection
(b)(1) and (b)(2) may be imposed only until the latest 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.
(3) The date on which an ordinance adopted under subsection (c)
is rescinded.
(e) The tax rate under this section may be imposed beginning in the
year following the year the ordinance is adopted and until the date on
which the ordinance adopted under this section is rescinded.
(f) The term of a bond issued (including any refunding bond) or a
lease entered into under subsection (b) may not exceed twenty-five (25)
years.
(g) 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.
(h) 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).
(i) Grant County possesses unique governmental challenges and
opportunities due to deficiencies in the current county jail. 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
SEA 1 — Concur
202
described in subsection (b), rather than the use of property taxes,
promotes those purposes.
(j) 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 151. IC 6-3.6-8-3, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 3. (a) For purposes of this article, an
individual shall be treated as a resident of the county (or the
municipality in the case of a local income tax imposed under
IC 6-3.6-6-22) in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) spent the majority of the individual's time in Indiana during
the taxable year in question, if subdivision (1), (2), or (3) does not
apply.
(b) The residence or principal place of business or employment of
an individual is to be determined on January 1 of the calendar year in
which the individual's taxable year commences. If an individual
changes the location of the individual's residence or principal place of
employment or business to another county (or municipality in the
case of a local income tax imposed under IC 6-3.6-6-22) in Indiana
during a calendar year, the individual's liability for tax is not affected.
(c) Notwithstanding subsection (b), if an individual becomes a local
taxpayer for purposes of IC 36-7-27 during a calendar year because the
individual
(1) changes the location of the individual's residence to a county
or municipality in which the individual begins employment or
business at a qualified economic development tax project (as
defined in IC 36-7-27-9), or
(2) changes the location of the individual's principal place of
employment or business to a qualified economic development tax
project and does not reside in another county in which a tax is in
effect;
the individual's adjusted gross income attributable to employment or
business at the qualified economic development tax project is taxable
only by the county or municipality containing the qualified economic
development tax project.
SECTION 152. IC 6-3.6-8-4, AS ADDED BY P.L.243-2015,
SEA 1 — Concur
203
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 4. (a) Using procedures provided under this
chapter, the adopting body of any adopting county or municipality
may pass an ordinance to enter into reciprocity agreements with the
taxing authority of any city, town, municipality, county, or other similar
local governmental entity of any other state. The reciprocity
agreements must provide that the income of resident local taxpayers is
exempt from income taxation by the other local governmental entity to
the extent income of the residents of the other local governmental
entity is exempt from the tax in the adopting county or municipality.
(b) A reciprocity agreement adopted under this section may not
become effective until it is also made effective in the other local
governmental entity that is a party to the agreement.
(c) The form and effective date of any reciprocity agreement
described in this section must be approved by the department.
SECTION 153. IC 6-3.6-8-5, AS AMENDED BY P.L.197-2016,
SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 5. (a) Except as otherwise provided in
subsection (b) and the other provisions of this article, all provisions of
the adjusted gross income tax law (IC 6-3) concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
apply to the imposition, collection, and administration of the tax
imposed by this article.
(b) IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 do not apply to the tax
imposed by this article.
(c) Notwithstanding subsections (a) and (b), each employer shall
report to the department of state revenue the amount of withholdings
attributable to each county (or each municipality in the case of a
local income tax imposed under IC 6-3.6-6-22). This report shall be
submitted to the department of state revenue:
(1) each time the employer remits to the department the tax that
is withheld; and
(2) annually along with the employer's annual withholding report.
SECTION 154. IC 6-3.6-9-1, AS AMENDED BY P.L.165-2021,
SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SEA 1 — Concur
204
JULY 1, 2027]: Sec. 1. (a) The budget agency shall maintain an
accounting for each county imposing a tax based on annual returns
filed by or for county taxpayers. Any undistributed amounts so
accounted for shall be held in reserve for the respective counties
separate from the state general fund.
(b) Undistributed amounts shall be invested by the treasurer of state
and the income earned shall be credited to the counties based on each
county's undistributed amount.
(c) This section expires December 31, 2027.
SECTION 155. IC 6-3.6-9-1.1 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 1.1. As used in this chapter, "state
and local income tax holding account" refers to the state and local
income tax holding account established by section 20 of this
chapter.
SECTION 156. IC 6-3.6-9-4, AS AMENDED BY P.L.137-2022,
SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 4. Revenue derived from the imposition of the tax
shall, in the manner prescribed by this chapter, be distributed to the
county that imposed it. The amount that is to be distributed to a county
during an ensuing calendar year equals the amount of tax revenue that
the budget agency determines has been:
(1) attributed to that county for a taxable year ending in a calendar
year preceding the calendar year in which the determination is
made; and
(2) reported on an annual return or amended return filed by or for
a county taxpayer and processed by the department in the state
fiscal year ending before July 1, or for a federal income tax
deadline set after July 1, a date set by the department for a period
of not more than sixty (60) days beyond the federal deadline, of
the calendar year in which the determination is made;
without adjustment based on the enactment of a tax rate change
under IC 6-3.6-6-2 or IC 6-3.6-6-22 in the first preceding calendar
year it becomes effective.
SECTION 157. IC 6-3.6-9-4.1, AS ADDED BY P.L.165-2021,
SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 4.1. The budget agency shall adjust the amounts
determined under section 4 of this chapter for the credits claimed
against local income taxes under IC 6-3.6-8-6 and IC 6-3.1-19. The
adjustments made by the budget agency may be phased-in over several
fiscal calendar years until the credits are fully accounted for.
SECTION 158. IC 6-3.6-9-5, AS AMENDED BY P.L.32-2021,
SEA 1 — Concur
205
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 5. (a) Before August 2 of each calendar year, the
budget agency shall provide to the department of local government
finance and the county auditor of each adopting county an estimate of
the amount determined under section 4 of this chapter that will be
distributed to the county, based on known tax rates. Subject to
subsection (c), not later than fifteen (15) days after receiving the
estimate of the certified distribution, the department of local
government finance shall determine for each taxing unit and notify the
county auditor of the estimated amount of property tax credits, school
distributions, public safety revenue, economic development revenue,
certified shares, and special purpose revenue that will be distributed to
the taxing unit under this chapter during the ensuing calendar year. Not
later than thirty (30) days after receiving the department's estimate, the
county auditor shall notify each taxing unit of the amounts estimated
for the taxing unit.
(b) (a) Before October 1 of each calendar year, the budget agency
shall certify to the department of local government finance and the
county auditor of each adopting county
(1) the amount determined under section sections 4 and 4.1 of
this chapter. and
(2) the amount of interest in the county's account that has accrued
and has not been included in a certification made in a preceding
year.
The amount certified is the county's certified distribution for the
immediately succeeding calendar year. The amount certified shall be
adjusted, as necessary, under sections 6, 7, and 8 6 and 7 of this
chapter. Subject to subsection (d), (b), not later than fifteen (15) days
thirty (30) days after receiving the amount of the certified distribution,
the department of local government finance shall determine for each
taxing unit and notify the county auditor of the certified amount of
property tax credits, school distributions, public safety revenue,
economic development revenue, certified shares, and special purpose
revenue that will be distributed to the taxing unit under this chapter
during the ensuing calendar year. Not later than thirty (30) days after
receiving the department's estimate, the county auditor shall notify each
taxing unit of the certified amounts for the taxing unit.
(c) This subsection applies to Lake County. When the department
of local government finance notifies the county auditor of the estimated
amount of property tax credits, school distributions, public safety
revenue, economic development revenue, certified shares, and special
purpose revenue that will be distributed to the taxing unit under this
SEA 1 — Concur
206
chapter during the ensuing calendar year, the department of local
government finance shall also determine the amount of additional
revenue allocated for economic development purposes that will be
distributed to each civil taxing unit, reduced by an amount that is equal
to the following percentages of the tax revenue that would otherwise be
allocated for economic development purposes and distributed to the
civil taxing unit:
(1) For Lake County, an amount equal to twenty-five percent
(25%).
(2) For Crown Point, an amount equal to ten percent (10%).
(3) For Dyer, an amount equal to fifteen percent (15%).
(4) For Gary, an amount equal to seven and five-tenths percent
(7.5%).
(5) For Hammond, an amount equal to fifteen percent (15%).
(6) For Highland, an amount equal to twelve percent (12%).
(7) For Hobart, an amount equal to eighteen percent (18%).
(8) For Lake Station, an amount equal to twenty percent (20%).
(9) For Lowell, an amount equal to fifteen percent (15%).
(10) For Merrillville, an amount equal to twenty-two percent
(22%).
(11) For Munster, an amount equal to thirty-four percent (34%).
(12) For New Chicago, an amount equal to one percent (1%).
(13) For Schererville, an amount equal to ten percent (10%).
(14) For Schneider, an amount equal to twenty percent (20%).
(15) For Whiting, an amount equal to twenty-five percent (25%).
(16) For Winfield, an amount equal to fifteen percent (15%).
The department of local government finance shall notify the county
auditor of the amounts of the reductions and the remaining amounts to
be distributed.
(d) (b) This subsection applies to Lake County. When the
department of local government finance notifies the county auditor of
the certified amount of property tax credits, school distributions, public
safety revenue, economic development revenue, certified shares, and
special purpose revenue that will be distributed to the taxing unit under
this chapter during the ensuing calendar year, the department of local
government finance shall also determine the amount of additional
revenue general purpose revenue allocated for economic development
purposes that will be distributed to each civil taxing unit, reduced by
an amount that is equal to the following percentages of the tax revenue
that would otherwise be allocated for economic development purposes
and distributed to the civil taxing unit:
(1) For Lake County, an amount equal to twenty-five percent
SEA 1 — Concur
207
(25%).
(2) For Crown Point, an amount equal to ten percent (10%).
(3) For Dyer, an amount equal to fifteen percent (15%).
(4) For Gary, an amount equal to seven and five-tenths percent
(7.5%).
(5) For Hammond, an amount equal to fifteen percent (15%).
(6) For Highland, an amount equal to twelve percent (12%).
(7) For Hobart, an amount equal to eighteen percent (18%).
(8) For Lake Station, an amount equal to twenty percent (20%).
(9) For Lowell, an amount equal to fifteen percent (15%).
(10) For Merrillville, an amount equal to twenty-two percent
(22%).
(11) For Munster, an amount equal to thirty-four percent (34%).
(12) For New Chicago, an amount equal to one percent (1%).
(13) For Schererville, an amount equal to ten percent (10%).
(14) For Schneider, an amount equal to twenty percent (20%).
(15) For Whiting, an amount equal to twenty-five percent (25%).
(16) For Winfield, an amount equal to fifteen percent (15%).
The department of local government finance shall notify the county
auditor of the remaining amounts to be distributed and the amounts of
the reductions that will be withheld under IC 6-3.6-11-5.5.
SECTION 159. IC 6-3.6-9-6, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 6. The budget agency shall certify an amount less
than the amount determined under section 5(b) 5(a) of this chapter if
the budget agency determines that the reduced distribution is necessary
to offset overpayments made in a calendar year before the calendar year
of the distribution. The budget agency may reduce the amount of the
certified distribution over several calendar years so that any
overpayments are offset over several years rather than in one (1) lump
sum.
SECTION 160. IC 6-3.6-9-7, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 7. (a) The budget agency shall adjust the certified
distribution of a county to correct for any clerical or mathematical
errors made in any previous certification under this section. The budget
agency may reduce the amount of the certified distribution over several
calendar years so that any adjustment under this subsection is offset
over several years rather than in one (1) lump sum.
(b) The budget agency may not reduce, adjust, or modify a
certified distribution of a county after it has been presented as part
of the report to the budget committee for the immediately
SEA 1 — Concur
208
succeeding calendar year under section 21 of this chapter, except
in the case of clerical and mathematical errors.
SECTION 161. IC 6-3.6-9-8 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 8. This section applies to a county that imposes,
increases, decreases, or rescinds a tax or tax rate under this article
before November 1 in the same calendar year in which the budget
agency makes a certification under this section. The budget agency
shall adjust the certified distribution of a county to provide for a
distribution in the immediately following calendar year and in each
calendar year thereafter. The budget agency shall provide for a full
transition to certification of distributions as provided in section 4(1)
through 4(2) of this chapter in the manner provided in section 6 of this
chapter. If the county imposes, increases, decreases, or rescinds a tax
or tax rate under this article after the date for which a certification
under section 5(b) of this chapter is based, the budget agency shall
adjust the certified distribution of the county after October 1 and before
December 1 of the calendar year. The adjustment must reflect any other
adjustment required under sections 6 and 7 of this chapter. The
adjusted certification shall be treated as the county's certified
distribution for the immediately succeeding calendar year. The budget
agency shall certify the adjusted certified distribution to the county
auditor for the county and provide the county council with an
informative summary of the calculations that revises the informative
summary provided in section 9 of this chapter and reflects the changes
made in the adjustment.
SECTION 162. IC 6-3.6-9-8.5 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 8.5. (a) The budget agency shall before February 1,
2018, transfer to the state general fund from each county's trust account
established under IC 6-3.6 an amount equal to:
(1) the amount of the county's certified distribution under IC 6-3.6
that is allocated to certified shares under IC 6-3.6-6 for calendar
year 2017; multiplied by
(2) five-tenths of one percent (0.5%);
to reimburse the state general fund for expenditures related to the
department's information technology modernization project.
(b) To the extent that the balance in a county's trust account is
insufficient for the budget agency to make the entire amount of the
transfer required under subsection (a) before February 1, 2018, the
budget agency shall make any remaining part of the required transfer
from the county's trust account in subsequent years on a schedule
determined by the budget agency until the entire amount of the
required transfer has been made.
SEA 1 — Concur
209
SECTION 163. IC 6-3.6-9-9, AS AMENDED BY P.L.257-2019,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 9. The budget agency shall provide the adopting
body with an informative summary of the calculations used to
determine the certified distribution. The summary of calculations must
include:
(1) the amount reported on individual income tax returns
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years; and
(3) adjustments for clerical or mathematical errors in prior years.
and
(4) adjustments for tax rate changes.
SECTION 164. IC 6-3.6-9-10, AS AMENDED BY P.L.137-2024,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 10. The budget agency shall also certify
information concerning the part of the certified distribution that is
attributable to each of the following:
(1) The tax rate imposed under IC 6-3.6-5 (before its expiration).
This subdivision expires July 1, 2028.
(2) The tax rate imposed under IC 6-3.6-6, separately stating:
(A) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.5 (before its repeal);
(B) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.6 (before its repeal); and
(C) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.7 (before its repeal);
(D) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.8 (before its repeal); and
(E) the part of the distribution attributable to a tax rate
imposed under IC 6-3.6-6-2.9 (before its repeal).
(3) Each tax rate imposed under IC 6-3.6-7.
(4) In the case of Marion County, the local income taxes paid by
local taxpayers described in IC 6-3.6-2-13(3).
The amount certified shall be adjusted to reflect any adjustment in the
certified distribution under this chapter.
SECTION 165. IC 6-3.6-9-11, AS AMENDED BY P.L.197-2016,
SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 11. The information described in sections 9 and
10 of this chapter must be certified to the county auditor, to the fiscal
officer of each taxing unit in the county, and to the department of local
government finance not later than the later of the following:
(1) October 1 of each calendar year.
SEA 1 — Concur
210
(2) Thirty (30) days after the adopting body certifies a new rate to
the budget agency.
SECTION 166. IC 6-3.6-9-12, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 12. One-twelfth (1/12) of each adopting county's
certified distribution for a calendar year shall be distributed:
(1) before January 1, 2028, from its trust account established
under this chapter; and
(2) after December 31, 2027, from the state and local income
tax holding account established under this chapter;
to the appropriate county treasurer on the first regular business day of
each month of that calendar year.
SECTION 167. IC 6-3.6-9-13, AS AMENDED BY P.L.9-2024,
SECTION 192, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 13. (a) All distributions from a trust
account established under this chapter shall be made by warrants issued
by the state comptroller to the treasurer of state ordering the
appropriate payments.
(b) This section expires December 31, 2027.
SECTION 168. IC 6-3.6-9-14 IS REPEALED [EFFECTIVE JULY
1, 2027]. Sec. 14. Before November 2 of each year, the budget agency
shall submit a report to each county auditor indicating the balance in
the county's trust account as of the cutoff date set by the budget agency.
SECTION 169. IC 6-3.6-9-15 IS REPEALED [EFFECTIVE
JANUARY 1, 2028]. Sec. 15. (a) If the budget agency determines that
the balance in a county trust account exceeds fifteen percent (15%) 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
SEA 1 — Concur
211
county's trust account;
exceeds fifteen percent (15%) 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.
SECTION 170. IC 6-3.6-9-16, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
SEA 1 — Concur
212
JULY 1, 2027]: Sec. 16. Upon receipt, each monthly payment of a
county's certified distribution or supplemental distribution shall be
allocated and distributed to the appropriate entities in accordance with
this article and the allocation ordinances adopted under this article.
SECTION 171. IC 6-3.6-9-17.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 17.5. After December 31, 2027,
the county's certified distribution amount for 2028 shall be
maintained in the accounting for the county under section 21 of
this chapter and transferred as set forth in section 21 of this
chapter.
SECTION 172. IC 6-3.6-9-20 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 20. (a) The state and local income
tax holding account is established within the state general fund for
the purposes of this chapter. The budget agency shall administer
the account. The account consists of the following:
(1) Money transferred to the account under section 21 of this
chapter.
(2) Money transferred to the account from any other source.
(3) Interest that accrues from money in the account.
(b) The treasurer of state shall invest the money in the account
not currently needed for the purposes of the account in the same
manner as other public funds may be invested.
(c) Money in the account is continuously appropriated for the
purposes of this chapter.
(d) Money in the account at the end of a state fiscal year does
not revert to the state general fund.
(e) Money transferred to the account shall be distributed and
allocated as set forth in this chapter.
(f) The budget director shall have the discretion to manage
transfers of money into and out of the account based on the current
process used for continuous assessment of revenue flows and
reconciliation based on the latest data.
SECTION 173. IC 6-3.6-9-21 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 21. (a) The budget agency shall
maintain an accounting for each county imposing a tax based on
annual returns filed by or for county taxpayers. Beginning after
December 31, 2027, any undistributed amounts so accounted shall
be held for purposes of the state and local income tax holding
account.
SEA 1 — Concur
213
(b) After December 1 but before December 31 of each year, the
budget agency shall present to the budget committee a report of the
following:
(1) An estimate of the monthly certified distribution amounts
for the immediately succeeding calendar year.
(2) A description of the method used to determine the monthly
estimates under subdivision (1).
(c) Beginning in 2028, and in each calendar year thereafter, the
budget agency shall each month transfer to the state and local
income tax holding account the amount determined for the month
under subsection (b)(1) for distribution under this chapter.
(d) In the case of a county that imposes a tax rate under
IC 6-3.6-6-2 or a municipality that imposes a tax rate under
IC 6-3.6-6-22 beginning after December 31, 2027, the budget
agency shall withhold, from each of the first three (3) annual
certified distributions resulting from the tax rate, an amount equal
to five percent (5%) of the county's or municipality's, as
applicable, annual certified distribution resulting from the tax rate.
The amounts withheld under this subsection shall be credited to the
respective county's or municipality's trust account.
SECTION 174. IC 6-3.6-10-2, AS AMENDED BY P.L.247-2017,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 2. A county, city, or town may use revenue
allocated for economic development purposes under IC 6-3.6-6-9
IC 6-3.6-6 for any combination of the following purposes:
(1) To pay all or a part of the interest owed by a private developer
or user on a loan extended by a financial institution or other
lender to the developer or user if the proceeds of the loan are or
are to be used to finance an economic development project.
(2) For the retirement of bonds for economic development
projects.
(3) For leases or for leases or bonds entered into or issued before
the date the county economic development income tax (IC 6-3.5-7
repealed) was imposed if the purpose of the lease or bonds would
have qualified as a purpose under this article at the time the lease
was entered into or the bonds were issued.
(4) The construction or acquisition of, or remedial action with
respect to, a capital project for which the unit is empowered to
issue general obligation bonds or establish a fund under any
statute listed in IC 6-1.1-18.5-9.8.
(5) The retirement of bonds issued under any provision of Indiana
law for a capital project.
SEA 1 — Concur
214
(6) The payment of lease rentals under any statute for a capital
project.
(7) Contract payments to a nonprofit corporation whose primary
corporate purpose is to assist government in planning and
implementing economic development projects.
(8) Operating expenses of a governmental entity that plans or
implements economic development projects.
(9) Funding of a revolving fund established under IC 5-1-14-14.
(10) For a regional venture capital fund or a local venture capital
fund.
(11) For any lawful purpose for which money in any of its other
funds may be used.
SECTION 175. IC 6-3.6-10-3, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 3. (a) The fiscal body of a county, city, or
town may issue bonds payable from revenue under IC 6-3.6-6. The
bonds must be for economic development projects.
(b) The fiscal body of a county, city, or town may issue bonds
payable from revenue described in section 2 of this chapter for any
capital project for which the fiscal body is authorized to issue general
obligation bonds. The bonds issued under this section may be payable
from the tax if the county option income tax (IC 6-3.5-6 repealed), the
county adjusted gross income tax (IC 6-3.5-1.1 repealed), or a tax
under IC 6-3.6-6 is also in effect in the county at the time the bonds are
issued.
(c) If there are bonds outstanding that have been issued under this
section, or leases in effect under section 4 of this chapter, the adopting
body may not reduce the tax imposed under IC 6-3.6-6, or an allocation
under IC 6-3.6-6-9, IC 6-3.6-6, or certified shares general purpose
revenue pledged to repay bonds, as appropriate, below a rate that
would produce one and twenty-five hundredths (1.25) times the total
of the highest annual debt service on the bonds to their final maturity,
plus the highest annual lease payments, unless:
(1) the body that imposed a tax under IC 6-3.6-6; or
(2) any city, town, or county;
pledges all or a part of its certified shares general purpose revenue for
the life of the bonds or the term of the lease, in an amount that is
sufficient, when combined with the amount pledged by the city, town,
or county that issued the bonds, to produce one and twenty-five
hundredths (1.25) times the total of the highest outstanding annual debt
service plus the highest annual lease payments.
(d) For purposes of subsection (c), the determination of a tax rate
SEA 1 — Concur
215
sufficient to produce one and twenty-five hundredths (1.25) times the
total of the highest outstanding annual debt service plus the highest
annual lease payments must be based on an average of the immediately
preceding three (3) years tax collections, if the tax has been imposed
for the last preceding three (3) years. If the tax has not been imposed
for the last preceding three (3) years, the body that imposed the tax may
not reduce the rate below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual debt service,
plus the highest annual lease payments, based upon a study by a
qualified public accountant or financial advisor.
(e) IC 6-1.1-20 does not apply to the issuance of bonds under this
section.
(f) Bonds issued under this section may be sold at a public sale in
accordance with IC 5-1-11 or may be sold at a negotiated sale.
(g) After a sale of bonds under this section, the county auditor shall
prepare a debt service schedule for the bonds.
(h) The general assembly covenants that it will not repeal or amend
this article in a manner that would adversely affect owners of
outstanding bonds issued, or payment of any lease rentals due, under
this section.
SECTION 176. IC 6-3.6-10-5, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 5. Notwithstanding any other law and
subject to IC 6-3.6-6-18(b), if a civil taxing unit desires to issue
obligations, or enter into leases, payable wholly or in part by the taxes
imposed under IC 6-3.6-6 or IC 6-3.6-7, (but not IC 6-3.6-5), the
obligations of the civil taxing unit or any lessor may be sold at public
sale in accordance with IC 5-1-11 or at negotiated sale.
SECTION 177. IC 6-3.6-10-6, AS ADDED BY P.L.243-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 6. (a) A pledge of revenues from a tax
imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5 before its
expiration) is enforceable in accordance with IC 5-1-14.
(b) With respect to obligations for which a pledge has been made
under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5 before its
expiration), the general assembly covenants with the county and the
purchasers or owners of those obligations that this article will not be
repealed or amended in any manner that will adversely affect the tax
collected under this article as long as the principal of or interest on
those obligations is unpaid.
SECTION 178. IC 6-3.6-10-9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
SEA 1 — Concur
216
[EFFECTIVE MAY 10, 2025 (RETROACTIVE)]: Sec. 9. (a)
Notwithstanding any other law, for bonds, leases, or any other
obligations incurred after May 9, 2025, a county, city, town, and
any other taxing unit may not pledge for payment from tax
revenue received under this article an amount that exceeds an
amount equal to twenty-five percent (25%) of the taxing unit's
certified distribution under this article.
(b) This section expires July 1, 2027.
SECTION 179. IC 6-3.6-11-1 IS REPEALED [EFFECTIVE
JANUARY 1, 2028]. Sec. 1. (a) This section applies to any county that
imposed a former tax to provide for a levy freeze.
(b) The tax rate used to provide for a levy freeze shall be part of the
tax rate under IC 6-3.6-6. The maximum tax rate that may be applied
for a levy freeze is one percent (1%). The levy freeze tax rate may be
increased but not decreased or rescinded unless an adopting body
adopts a resolution to request approval from the department of local
government finance to lower the levy freeze tax rate.
(c) The department of local government finance shall approve a
lower levy freeze tax rate if it finds that the lower rate, in addition to:
(1) the supplemental distribution as determined in a resolution
adopted under subsection (d); and
(2) the amount in the stabilization fund established under
IC 6-3.5-1.1-24 (repealed) or IC 6-3.5-6-30 (repealed), as
applicable;
would fund the levy freeze dollar amount (the total amount of foregone
maximum levy increases for all taxing units for all years). If the
department approves a lower levy freeze tax rate, the adopting body
must adopt an ordinance to lower the levy freeze tax rate before the
lower rate may take effect. The county shall provide the department
with a determination of the amount in the stabilization funds for
purposes of this subsection.
(d) A county may adopt a resolution to require that a supplemental
distribution amount to be distributed under IC 6-3.6-9-15(d)(4) shall
first be used to lower the levy freeze tax rate in subsection (c). If a
resolution is adopted, the supplemental distribution under
IC 6-3.6-9-15(d)(4) shall first be used to lower a county's levy freeze
tax rate and any additional supplemental distribution calculated that is
above the amount needed to lower the levy freeze tax rate shall be
distributed to each taxing unit as provided under IC 6-3.6-9-15(d)(4).
(e) The revenue from the tax rate shall continue to be applied under
this article as it was applied under the former tax, including the use of
a stabilization fund.
SEA 1 — Concur
217
(f) The distributions of income tax revenue attributable to a levy
freeze tax rate shall be made before allocating or distributing the
remaining revenue under IC 6-3.6-6 or applying the property tax credits
funded by a tax rate under IC 6-3.6-5.
SECTION 180. IC 6-3.6-11-3, AS AMENDED BY P.L.197-2016,
SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 3. (a) This section applies to Lake County's
categorizations, allocations, and distributions under IC 6-3.6-5 (before
its expiration).
(b) The rate under the former tax in Lake County that was used for
any of the following shall be categorized under IC 6-3.6-5 (before its
expiration), and the Lake County council may adopt an ordinance
providing that the revenue from the tax rate under this section may be
used for any of the following:
(1) To reduce all property tax levies imposed by the county by the
granting of property tax replacement credits against those
property tax levies.
(2) To provide local property tax replacement credits in Lake
County in the following manner:
(A) The tax revenue under this section that is collected from
taxpayers within a particular municipality in Lake County (as
determined by the department of state revenue based on the
department's best estimate) shall be used only to provide a
local property tax credit against property taxes imposed by that
municipality.
(B) The tax revenue under this section that is collected from
taxpayers within the unincorporated area of Lake County (as
determined by the department of state revenue) shall be used
only to provide a local property tax credit against property
taxes imposed by the county. The local property tax credit for
the unincorporated area of Lake County shall be available only
to those taxpayers within the unincorporated area of the
county.
(3) To provide property tax credits in the following manner:
(A) Sixty percent (60%) of the tax revenue shall be used as
provided in subdivision (2).
(B) Forty percent (40%) of the tax revenue shall be used to
provide property tax replacement credits against property tax
levies of the county and each township and municipality in the
county. The percentage of the tax revenue distributed under
this item that shall be used as credits against the county's
levies or against a particular township's or municipality's levies
SEA 1 — Concur
218
is equal to the percentage determined by dividing the
population of the county, township, or municipality by the sum
of the total population of the county, each township in the
county, and each municipality in the county.
The Lake County council shall determine whether the credits under
subdivision (1), (2), or (3) shall be provided to homesteads, to all
qualified residential property, or to all taxpayers. The department of
local government finance, with the assistance of the budget agency,
shall certify to the county auditor and the fiscal body of the county and
each township and municipality in the county the amount of property
tax credits under this section. The tax revenue under this section that
is used to provide credits under this section shall be treated for all
purposes as property tax levies but shall not be considered for purposes
of computing the maximum permissible property tax levy under
IC 6-1.1-18.5-3 or the credit under IC 6-1.1-20.6.
(c) Any ordinance adopted under subsection (b) expires
December 31, 2027.
(d) This section expires July 1, 2028.
SECTION 181. IC 6-3.6-11-4, AS AMENDED BY P.L.247-2017,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2028]: Sec. 4. This section applies to the allocation of
the tax revenue under IC 6-3.6-6 that is dedicated to public safety and
funding for a PSAP (as defined in IC 36-8-16.7-20) that is part of the
statewide 911 system (as defined in IC 36-8-16.7-22) and located
within the county. as provided in IC 6-3.6-6-8. This tax revenue shall
be allocated and distributed to the PSAP before the allocation and
distribution to any taxing units of the remaining tax revenue allocated
to public safety as provided in IC 6-3.6-6.
SECTION 182. IC 6-3.6-11-5.5, AS AMENDED BY P.L.9-2024,
SECTION 193, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2028]: Sec. 5.5. (a) This section applies
to Lake County for purposes of categorizations, allocations, and
distributions of additional revenue general purpose revenue that is
allocated each year for economic development purposes. under
IC 6-3.6-6-9 and of certified shares under IC 6-3.6-6. Additional
revenue General purpose revenue that is allocated each year for
economic development purposes by a civil taxing unit listed in
IC 6-3.6-9-5(d) IC 6-3.6-9-5(b) must first be used to provide funding
for a rail project (as defined in IC 36-7.5-1-13.5).
(b) Before the state comptroller may make a certified distribution of
additional revenue general purpose revenue allocated for economic
development purposes, under IC 6-3.6-6-9, the state comptroller shall
SEA 1 — Concur
219
withhold the total amount determined by the department of local
government finance under IC 6-3.6-9-5(d) IC 6-3.6-9-5(b) from the
certified distribution allocated to economic development. The amount
withheld by the state comptroller under this section shall be paid to the
secretary-treasurer of the northwest Indiana regional development
authority (IC 36-7.5) before a certified distribution allocated to
economic development is made to the county and before the county
auditor may otherwise allocate or distribute tax revenue under this
article.
SECTION 183. IC 6-3.6-11-6, AS AMENDED BY P.L.9-2024,
SECTION 194, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2028]: Sec. 6. (a) This section applies to
Lake County, LaPorte County, Porter County, and any municipality in
those counties that is a member of the northwest Indiana regional
development authority (IC 36-7.5) for purposes of categorizations,
allocations, and distributions of additional revenue general purpose
revenue that is allocated each year for economic development purposes
under IC 6-3.6-6-9. IC 6-3.6-6.
(b) This subsection applies only to Lake County. The county or a
city described in IC 36-7.5-2-3(b) may use additional revenue general
purpose revenue that is allocated each year for economic development
purposes under IC 6-3.6-6-9 IC 6-3.6-6 for making transfers required
by IC 36-7.5-4-2 or to provide rail project funding under IC 36-7.5-4.5.
The additional revenue general purpose revenue allocated for
economic development and used to make the transfers required by
IC 36-7.5-4-2 or to provide rail project funding shall be paid by the
treasurer of state to the treasurer of the northwest Indiana regional
development authority before certified distributions are made to the
county or any cities or towns in the county. The county or a city or town
in the county may use additional revenue that is allocated each year for
economic development purposes under IC 6-3.6-6-9 to provide
homestead credits in the county, city, or town. The following apply to
homestead credits provided under this subsection:
(1) The county, city, or town fiscal body must adopt an ordinance
authorizing the homestead credits. The ordinance must specify the
amount of additional revenue that will be used to provide
homestead credits in the following year.
(2) The county, city, or town fiscal body that adopts an ordinance
under this subsection must forward a copy of the ordinance to the
county auditor and the department of local government finance
not more than thirty (30) days after the ordinance is adopted.
(3) The homestead credits must be applied uniformly to provide
SEA 1 — Concur
220
a homestead credit for homesteads in the county, city, or town.
(4) The homestead credits shall be treated for all purposes as
property tax levies.
(5) The homestead credits shall be applied to the net property
taxes due on the homestead after the application of all other
assessed value deductions or property tax deductions and credits
that apply to the amount owed under IC 6-1.1.
(6) The state comptroller shall determine the homestead credit
percentage for a particular year based on the amount of additional
revenue that will be used under this subsection to provide
homestead credits in that year.
(c) This subsection applies only to Porter County. From the
general purpose revenue received each year from the rate imposed
under IC 6-3.6-6, the first three million five hundred thousand
dollars ($3,500,000) shall be used by the county to make transfers
as required under IC 36-7.5-4-2 to the northwest Indiana regional
development authority before any certified distributions are made
to the county unit or any other taxing unit in the county. The
adopting body for Porter County may not reduce the proportional
allocation of the general purpose revenue allocated to Porter
County if the reduction would result in an amount less than the
amount necessary for Porter County to fulfill its obligation to the
northwest Indiana regional development authority to pay to
support northwest Indiana rail projects (as defined in
IC 5-1.3-2-14) and projects described in IC 36-7.5-4-2.5.
(c) This subsection applies only to LaPorte County as follows:
(1) This subsection applies if:
(A) the county fiscal body has adopted an ordinance under
IC 36-7.5-2-3(d) providing that the county is joining the
northwest Indiana regional development authority; and
(B) the fiscal body of the city described in IC 36-7.5-2-3(d)
has adopted an ordinance under IC 36-7.5-2-3(d) providing
that the city is joining the development authority.
(2) Additional revenue that is allocated each year for economic
development purposes under IC 6-3.6-6-9 may be used by a
county or a city described in IC 36-7.5-2-3(d) for making transfers
required by IC 36-7.5-4-2. In addition, if the allocation of
additional revenue for economic development purposes under
IC 6-3.6-6-9 is increased in the county, the first three million five
hundred thousand dollars ($3,500,000) of the tax revenue that
results each year from the allocation increase shall be used by the
county only to make the county's transfer required by
SEA 1 — Concur
221
IC 36-7.5-4-2 and shall be paid by the treasurer of state to the
treasurer of the northwest Indiana regional development authority
under IC 36-7.5-4-2 before certified distributions are made to the
county or any cities or towns in the county.
(3) All of the additional revenue allocated for economic
development purposes under IC 6-3.6-6-9 that results each year
from an allocation increase described in subdivision (2) and that
is in excess of the first three million five hundred thousand dollars
($3,500,000) must be used by the county and cities and towns in
the county for homestead credits under this subsection. The
following apply to homestead credits provided under this
subsection:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county, city,
or town.
(B) The homestead credits shall be treated for all purposes as
property tax levies.
(C) The homestead credits shall be applied to the net property
taxes due on the homestead after the application of all other
assessed value deductions or property tax deductions and
credits that apply to the amount owed under IC 6-1.1.
(D) The state comptroller shall determine the homestead credit
percentage for a particular year based on the amount of
additional revenue that will be used under this subdivision to
provide homestead credits in that year.
(d) This subsection applies only to Porter County. The additional
revenue designated each year for economic development purposes
under IC 6-3.6-6 shall be allocated and used as follows:
(1) First, the revenue attributable to an income tax rate of
twenty-five hundredths percent (0.25%) shall be allocated to the
county and cities and towns as provided in IC 6-3.6-6-9.
(2) Second, the next three million five hundred thousand dollars
($3,500,000) of the revenue shall be used for the county or for
eligible municipalities (as defined in IC 36-7.5-1-11.3) in the
county, to make transfers as provided in and required under
IC 36-7.5-4-2. The additional revenue used to make the transfers
as provided in IC 36-7.5-4-2 shall be paid by the treasurer of state
to the treasurer of the northwest Indiana regional development
authority before certified distributions are made to the county or
any taxing unit in the county. If Porter County ceases to be a
member of the northwest Indiana regional development authority
under IC 36-7.5 but two (2) or more municipalities in the county
SEA 1 — Concur
222
have become members of the northwest Indiana regional
development authority as authorized by IC 36-7.5-2-3(h), the
treasurer of state shall continue to transfer this amount to the
treasurer of the northwest Indiana regional development authority
under IC 36-7.5-4-2.
(3) Third, except as provided in IC 36-7.5-3-5, all of the revenue
each year that is in excess of the amounts described in
subdivisions (1) and (2) must be used by the county and cities and
towns in the county for homestead credits. The following apply to
homestead credits provided under this subdivision:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county, city,
or town.
(B) The homestead credits shall be treated for all purposes as
property tax levies.
(C) The homestead credits shall be applied to the net property
taxes due on the homestead after the application of all other
assessed value deductions or property tax deductions and
credits that apply to the amount owed under IC 6-1.1.
(D) The state comptroller shall determine the homestead credit
percentage for a particular year based on the amount of
additional revenue that will be used under this subdivision to
provide homestead credits in that year.
(e) (d) A transfer made on behalf of a city, town, or county under
this section after December 31, 2018, is to be considered a payment for
services provided to residents by a rail project as those services are
rendered.
(f) (e) A pledge by the northwest Indiana regional development
authority of transferred revenue under this section to the payment of
bonds, leases, or obligations under this article or IC 5-1.3:
(1) constitutes the obligations of the northwest Indiana regional
development authority; and
(2) does not constitute an indebtedness of:
(A) a county or municipality described in this section; or
(B) the state;
within the meaning or application of any constitutional or
statutory provision or limitation.
(g) (f) Neither the transfer of revenue nor the pledge of revenue
transferred under this section is an impairment of contract within the
meaning or application of any constitutional provision or limitation
because of the following:
(1) The statutes governing local income taxes, including the
SEA 1 — Concur
223
transferred revenue, have been the subject of legislation annually
since 1973, and during that time the statutes have been revised,
amended, expanded, limited, and recodified dozens of times.
(2) Owners of bonds, leases, or other obligations to which local
income tax revenues have been pledged recognize that the
regulation of local income taxes has been extensive and
consistent.
(3) All bonds, leases, or other obligations, due to their essential
contractual nature, are subject to relevant state and federal law
that is enacted after the date of a contract.
(4) The state has a legitimate interest in assisting the northwest
Indiana regional development authority in financing rail projects
(as defined in IC 36-7.5-1-13.5).
(h) (g) All proceedings had and actions described in this section are
valid pledges under IC 5-1-14-4 as of the date of those pledges or
actions and are hereby legalized and declared valid if taken before
March 15, 2018.
SECTION 184. IC 6-3.6-11-7, AS AMENDED BY P.L.9-2024,
SECTION 195, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2028]: Sec. 7. (a) This section applies to
a civil taxing unit that has previously:
(1) entered into an interlocal cooperation or similar agreement;
(2) adopted an ordinance or resolution; or
(3) taken any other action;
offering to provide revenue to support and finance a rail project or rail
projects (as defined under IC 36-7.5-1-13.5).
(b) The additional revenue general purpose revenue that would
otherwise be allocated to a civil taxing unit described in subsection (a)
shall be withheld under section 5.5 of this chapter by the state
comptroller and shall be paid by the state comptroller to the
secretary-treasurer of the northwest Indiana regional development
authority under IC 36-7.5-4-2 before certified distributions are made to
the county and before the county auditor may allocate or distribute tax
revenue under this article to any civil taxing unit in the county or
counties in which the unit is located.
(c) Amounts:
(1) withheld under section 5.5 of this chapter; and
(2) transferred on behalf of a civil taxing unit under this section;
after December 31, 2018, are considered to be a payment for services
provided to residents by a rail project as such services are rendered.
(d) A pledge by the northwest Indiana regional development
authority of withheld or transferred revenue received under this chapter
SEA 1 — Concur
224
to the payment of bonds, leases, or obligations under IC 36-7.5 or
IC 5-1.3:
(1) constitutes the obligations of the northwest Indiana regional
development authority; and
(2) does not constitute an indebtedness of:
(A) a unit described in this section; or
(B) the state;
within the meaning or application of any constitutional or
statutory provision or limitation.
(e) Neither the withholding or transfer of revenue nor the pledge of
revenue withheld or transferred under this chapter is an impairment of
contract within the meaning or application of any constitutional
provision or limitation because of the following:
(1) The statutes governing local income taxes, including the
withheld or transferred revenue, have been the subject of
legislation annually since 1973, and during that time the statutes
have been revised, amended, expanded, limited, and recodified
dozens of times.
(2) Owners of bonds, leases, or other obligations to which local
income tax revenues have been pledged recognize that the
regulation of local income taxes has been extensive and
consistent.
(3) All bonds, leases, or other obligations, due to their essential
contractual nature, are subject to relevant state and federal law
that is enacted after the date of a contract.
(4) The state has a legitimate interest in assisting the northwest
Indiana regional development authority in financing rail projects
(as defined in IC 36-7.5-1-13.5).
(f) All:
(1) agreements;
(2) ordinances or resolutions; and
(3) proceedings had and actions described in this chapter;
are valid pledges under IC 5-1-14-4 as of the date of those pledges or
actions and are hereby legalized and declared valid if taken before
April 30, 2019.
SECTION 185. IC 6-3.6-11-7.5, AS AMENDED BY P.L.9-2024,
SECTION 196, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2028]: Sec. 7.5. (a) An action challenging
any action taken under section 5.5, 5.7, 6, or 7 of this chapter to
withhold or transfer revenue to the secretary-treasurer of the northwest
Indiana regional developmental authority (IC 36-7.5) from a county's
certified distribution must be brought within ten (10) days after the date
SEA 1 — Concur
225
on which the county auditor notifies the secretary-treasurer of the
northwest Indiana regional development authority (IC 36-7.5) of the
amount of certified tax revenue that will be distributed under
IC 6-3.6-9-5(d). IC 6-3.6-9-5(b).
(b) A court shall require a plaintiff to provide a bond with surety in
an amount equal to the total amounts of tax revenue estimated to be
withheld or transferred by the state comptroller from the date of the
filing until December 31, 2049.
(c) The burden of proof in an action under this section is on the
plaintiff.
(d) If the defendant prevails in an action under this section, the court
shall award attorney's fees to the defendant.
SECTION 186. IC 6-6-5-5, AS AMENDED BY P.L.256-2017,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2027]: 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 expiration) is entitled
to a credit against the vehicle excise tax as follows: Any remaining
deduction from assessed valuation to which the person is entitled,
applicable to property taxes payable in the year in which the excise tax
imposed by this chapter is due, after allowance of the deduction on real
estate and personal property owned by the person, shall reduce the
vehicle excise tax in the amount of two dollars ($2) on each one
hundred dollars ($100) of taxable value or major portion thereof. The
county auditor shall, upon request, furnish a certified statement to the
person verifying the credit allowable under this section, and the
statement shall be presented to and retained by the bureau to support
the credit.
SECTION 187. IC 6-6-5-5.2, AS AMENDED BY P.L.256-2017,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2027]: 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.
SEA 1 — Concur
226
(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
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,
SEA 1 — Concur
227
IC 6-1.1-12-14, or IC 6-1.1-12-16 (before their 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 expiration).
SECTION 188. IC 6-6-6.5-13, AS AMENDED BY P.L.1-2009,
SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2027]: Sec. 13. (a) As the basis for measuring the tax
imposed by this chapter, the department shall classify every taxable
aircraft in its proper class according to the following classification
plan:
CLASS DESCRIPTION
A Piston-driven
B Piston-driven,
and Pressurized
C Turbine driven
or other Powered
D Homebuilt, Gliders, or
Hot Air Balloons
(b) The tax imposed under this chapter is based on the age, class,
and maximum landing weight of the taxable aircraft. The amount of tax
imposed on the taxable aircraft is based on the following table:
Age Class A Class B Class C Class D
0-4 $.04/lb $.065/lb $.09/lb $.0175/lb
5-8 $.035/lb $.055/lb $.08/lb $.015/lb
9-12 $.03/lb $.05/lb $.07/lb $.0125/lb
13-16 $.025/lb $.025/lb $.025/lb $.01/lb
17-25 $.02/lb $.02/lb $.02/lb $.0075/lb
over 25 $.01/lb $.01/lb $.01/lb $.005/lb
SEA 1 — Concur
228
(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.
SECTION 189. IC 6-8.1-6-9 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2025]: Sec. 9. Beginning with the individual adjusted gross
income tax return for taxable years beginning in 2025, the
department of state revenue shall include on the adjusted gross
income tax return a requirement that the taxpayer identify the
address of the taxpayer's principal place of residence.
SECTION 190. IC 6-9-10.5-8, AS AMENDED BY P.L.197-2016,
SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 8. (a) If the tax levied under section 6 of this
chapter is increased by an ordinance adopted by the county fiscal body
after June 30, 2011, the county treasurer shall establish a county
promotion fund. The county treasurer shall deposit in the county
promotion fund the difference between:
(1) the amount received under section 6 of this chapter; minus
(2) the amount deposited in the lake enhancement fund under
section 7(c) of this chapter.
(b) In a county in which a commission has been established under
SEA 1 — Concur
229
section 9 of this chapter, the county auditor shall issue a warrant
directing the county treasurer to transfer money from the county
promotion fund to the commission's treasurer if the commission
submits a written request for the transfer.
(c) Money in a county promotion fund, or money transferred from
such a fund under subsection (b), may be expended only to promote
and encourage conventions, visitors, tourism, and economic
development within the county. Expenditures that may be made under
this subsection include expenditures for advertising, promotional
activities, trade shows, special events, and recreation, and expenditures
that are authorized by IC 6-3.6-10-2 with respect to the county's
additional revenue that is allocated for economic development
purposes under IC 6-3.6-6-9. IC 6-3.6-6.
SECTION 191. IC 8-5-15-5, AS AMENDED BY P.L.108-2019,
SECTION 150, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE MAY 10, 2025 (RETROACTIVE)]: Sec. 5. (a) The
board has all powers reasonably necessary to carry out the purpose of
this chapter including the following powers:
(1) To receive federal, state, county, and municipal funds, or
private contributions and disburse them for the purpose of aiding
commuter transportation systems serving the district.
(2) To monitor and evaluate the use of funds granted or
distributed by the district.
(3) To apply for federal, state, municipal, or county funds for the
purpose of rendering assistance to commuter transportation
systems.
(4) To coordinate its plans and activities with:
(A) any public transportation authority serving one (1) or more
counties that are served by the system and through which the
system passes;
(B) the Indiana department of transportation;
(C) regional planning commissions serving any portion of the
district;
(D) units of county and municipal government included in the
district; and
(E) any regional transportation authority, transit authority, or
like governmental unit in another state if the commuter
transportation system crosses the boundary of the state or
serves another.
(5) To purchase, lease, or lease with option to purchase capital
equipment in aid of any system of commuter transportation
operating in the district, and lease the equipment to the system
SEA 1 — Concur
230
under conditions and for a term to be determined by the board.
(6) As a municipal corporation, to sue and be sued.
(7) To conduct public hearings to accomplish the purpose of this
chapter.
(8) To seek and accept the assistance of any public or publicly
funded agency in carrying out its functions and duties.
(9) To enter into agreements with either private or public agencies
for any purpose required to accomplish the intent of this chapter.
The board may enter into a trust indenture or any other agreement
with the board for depositories in order to obtain a loan or a loan
guarantee under IC 5-13-12-11.
(10) To set levels of service and rates notwithstanding IC 8-3-1,
for transportation of passengers subject to section 7 of this
chapter.
(11) To expend funds granted to the district from any source for
the purpose of paying reasonable administrative expenses.
(12) To purchase, acquire, lease, or lease with option to purchase
all or any part of the assets of a railroad that is providing
commuter transportation services within the district and to
purchase or acquire all or any part of the issued and outstanding
stock of a railroad that is providing commuter transportation
services within the district.
(13) To own all or any part of the capital stock or assets of a
railroad that is providing commuter transportation services within
the district, and to operate either directly, by management
contract, or by lease any such railroad.
(14) Subject to section 5.3 of this chapter, to issue revenue
bonds of the district payable solely from revenues for the purpose
of paying all or any part of the cost of acquiring the capital stock
of a railroad company, all or any part of the assets of a railroad, or
any property, real or personal, for the purposes of this chapter.
(15) To acquire, lease, construct, maintain, repair, police, and
operate a railroad and to establish rules for the use of the railroad
and other properties subject to the jurisdiction and control of the
board.
(16) To acquire and dispose of real and personal property in the
exercise of its powers and the performance of its duties under this
chapter.
(17) To lease to others for development or operation all or any
part of a railroad on such terms and conditions as the board
considers advisable.
(18) To make and enter into all contracts, undertakings, and
SEA 1 — Concur
231
agreements necessary or incidental to the performance of its
duties and the execution of its powers under this chapter.
(19) To employ, subject to sections 18 and 19 of this chapter, an
executive director or manager, consulting engineers,
superintendents, and such other engineers, construction and
accounting experts, attorneys, and other employees and agents as
may be necessary in its judgment, and to fix their compensation.
(20) To negotiate and enter into agreements for railroad trackage
rights regardless of the location of the track.
(21) To authorize the Indiana department of transportation to
exercise all or a part of the powers of the board under this chapter
or IC 5-1.3 that are necessary or desirable to accomplish the
purposes of this chapter or IC 5-1.3, subject, in each case, to the
agreement of the Indiana department of transportation.
(22) To do all other acts necessary or reasonably incident to
carrying out the purpose of this chapter.
(b) Notwithstanding the powers granted to the board in subsection
(a), the district does not have the power to levy taxes.
(c) In the event the board of trustees determines that the commuter
transportation system or the railroad owned by the district cannot
continue to provide adequate transportation service, or the district is
terminated, the board may, subject to the conditions of any state or
federal grant used to purchase equipment or property, dispose of any
properties of the district.
(d) In the event the district is dissolved, ninety percent (90%) of the
proceeds shall be paid to the state and ten percent (10%) to the counties
in proportion to their contributions.
(e) In the exercise of any of the powers granted to the board in
subsection (a), the board is not subject to any other laws related to
commuter transportation systems or railroads.
SECTION 192. IC 8-5-15-5.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE MAY 10, 2025 (RETROACTIVE)]: Sec. 5.3.
Notwithstanding any other law, the northern Indiana commuter
transportation district established under this chapter may not issue
new bonds, new notes, or other new evidences of indebtedness after
May 9, 2025, that are payable in whole or in part from amounts
distributed to the northern Indiana commuter transportation
district from the commuter rail service fund (IC 8-3-1.5-20.5) or
the electric rail service fund (IC 8-3-1.5-20.6). However, this
section may not be construed to prohibit the refinancing of
outstanding indebtedness originally incurred before May 10, 2025.
SEA 1 — Concur
232
SECTION 193. IC 8-5-15-5.4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE MAY 10, 2025 (RETROACTIVE)]: Sec.
5.4. (a) Subject to section 5.3 of this chapter, the board may provide
by resolution, at one (1) time or from time to time, for the issuance of
revenue bonds of the district for the purpose of paying all or any part
of the cost of a railroad project. The principal of and the interest on the
bonds are payable solely from the revenues specifically pledged to the
payment thereof. The bonds of each issue shall be dated, bear interest
at any rate, and mature at a time or times not exceeding forty (40) years
from the date thereof, as may be determined by the board, and may be
made redeemable before maturity, at the option of the board, at such
price or prices and under such terms and conditions as may be fixed by
the board in the authorizing resolution.
(b) The board shall determine the form of the bonds, including any
interest coupons to be attached to the bonds, and shall fix the
denomination or denominations of the bonds and the place or places of
payment of principal and interest.
(c) The bonds shall be issued in the name of the district and
executed by the manual or facsimile signature of the president of the
board. The manual or facsimile seal of the district shall be affixed or
imprinted on the bonds and attested by the manual or facsimile
signature of the secretary of the district. However, one (1) of the
signatures must be manual, unless the bonds are authenticated by the
manual signature of an authorized representative of a trustee for the
bondholders. Any coupons attached to the bonds must bear the
facsimile signature of the treasurer of the board. In case any officer
whose signature or a facsimile of whose signature appears on any
bonds or coupons ceases to be an officer before the delivery of the
bonds, the signature or facsimile shall nevertheless be considered valid
and sufficient for all purposes the same as if he had remained in office
until the delivery. The bonds must contain on their face a statement to
the effect that the bonds, as to both principal and interest, are payable
solely from the revenues pledged for their payment.
(d) All bonds issued under this chapter have all the qualities and
incidents of negotiable instruments under the negotiable instruments
law of Indiana.
(e) The bonds may be issued in coupon, registered, or book entry
form, or any combination of these, as the board may determine, and
provision may be made for the registration of any coupon bonds as to
principal alone and also as to both principal and interest, and for the
reconversion into coupon bonds of any bonds registered as to both
principal and interest.
SEA 1 — Concur
233
(f) The board may sell the bonds in such manner and for such price
as it may determine to be in the best interest of the district, either at
public sale under IC 5-1-11 or at private sale.
(g) The board may issue bonds under this chapter only after
obtaining approval of the issuance by the Indiana department of
transportation. Before giving approval, the Indiana department of
transportation shall give due consideration to any contract terms and
conditions that impinge on the continuation of revenues for the term of
any bond.
(h) This chapter constitutes full and complete authority for the
issuance of bonds. No law, procedure or proceedings, publications,
notices, consents, approvals, orders, acts, or things by the board or any
other officer, department, agency or instrumentality of the state, county,
or any municipality shall be required to issue such bonds except as may
be prescribed in this chapter.
(i) Bonds issued under the provisions of this section shall constitute
legal investments for any private trust funds, and the funds of any
banks, trust companies, insurance companies, building and loan
associations, credit unions, banks of discount and deposit, savings
banks, loans and trust and safe deposit companies, rural loan and
savings associations, guaranty loan and savings associations, mortgage
guaranty companies, small loan companies, industrial loan and
investment companies, and any other financial institutions organized
under the laws of the state of Indiana.
(j) Bonds may not be sold to purchase or lease assets or purchase
capital stock of a railroad unless the board has a written undertaking
from the seller or lessor that the seller or lessor will take no direct
action calculated to cause the reduction of levels of freight service
being rendered or revenues being generated on any such railroad for a
period of time not less than the term of the bonds.
SECTION 194. IC 8-9.5-8-17, AS AMENDED BY P.L.99-2007,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2027]: Sec. 17. The authority shall study and implement
programs to assist in the transportation of military veterans or
individuals with a disability (as defined in IC 6-1.1-12-11 before its
expiration) who travel on a toll road to or from a hospital for
treatment. However, a program may not be inconsistent with the trust
indenture securing the bonds of the toll road.
SECTION 195. IC 8-18-22-6, AS AMENDED BY P.L.256-2017,
SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 6. (a) Except as provided in subsection (b), the
county fiscal body may pledge revenues for the payment of principal
SEA 1 — Concur
234
and interest on the bonds and for other purposes under the ordinance
as provided by IC 5-1-14-4, including revenues from the following
sources:
(1) The motor vehicle highway account.
(2) The local road and street account.
(3) The county vehicle excise tax.
(4) The county wheel tax.
(5) The local income tax (IC 6-3.6).
(6) Assessments.
(7) Any other unappropriated or unencumbered money.
(b) The county fiscal body may not pledge to levy ad valorem
property taxes for these purposes, except for revenues from the
following:
(1) IC 8-16-3.
(2) IC 8-16-3.1.
(c) If the county fiscal body has pledged revenues from the local
income tax as set forth in subsection (a), the local income tax council
(as defined in IC 6-3.6-2-12) county fiscal body may covenant that the
council county fiscal body will not repeal or modify the tax in a
manner that would adversely affect owners of outstanding bonds issued
under this chapter. The local income tax council county fiscal body
may make the covenant by adopting an ordinance using procedures
described in IC 6-3.6-3.
SECTION 196. IC 8-22-3.5-9, AS AMENDED BY P.L.174-2022,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 9. (a) As used in this section, "base assessed
value" means, subject to subsection (k):
(1) the net assessed value of all the tangible property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
resolution adopted under section 5 or 9.5 of this chapter,
notwithstanding the date of the final action taken under section 6
of this chapter; plus
(2) to the extent it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance,
within the airport development zone, as finally determined for the
current assessment date.
However, subdivision (2) applies only to an airport development zone
established after June 30, 1997, and the portion of an airport
development zone established before June 30, 1997, that is added to an
existing airport development zone.
SEA 1 — Concur
235
(b) A resolution adopted under section 5 of this chapter and
confirmed under section 6 of this chapter must include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section.
(c) The allocation provision must:
(1) apply to the entire airport development zone; and
(2) require that any property tax on taxable tangible property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the airport
development zone be allocated and distributed as provided in
subsections (d) and (e).
(d) Except as otherwise provided in this section:
(1) the proceeds of the taxes attributable to the lesser of:
(A) the assessed value of the tangible property for the
assessment date with respect to which the allocation and
distribution is made; or
(B) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units; and
(2) the excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(e) All of the property tax proceeds in excess of those described in
subsection (d) shall be allocated to the eligible entity for the airport
development zone and, when collected, paid into special funds as
follows:
(1) The commission may determine that a portion of tax proceeds
shall be allocated to a training grant fund to be expended by the
commission without appropriation solely for the purpose of
reimbursing training expenses incurred by public or private
entities in the training of employees for the qualified airport
development project.
(2) The commission may determine that a portion of tax proceeds
shall be allocated to a debt service fund and dedicated to the
payment of principal and interest on revenue bonds or a loan
contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
SEA 1 — Concur
236
payment of leases for a qualified airport development project, or
to the payment of principal and interest on bonds issued by an
eligible entity to pay for qualified airport development projects in
the airport development zone or serving the airport development
zone.
(3) The commission may determine that a part of the tax proceeds
shall be allocated to a project fund and used to pay expenses
incurred by the commission for a qualified airport development
project that is in the airport development zone or is serving the
airport development zone.
(4) Except as provided in subsection (f), all remaining tax
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds allocated
to the project fund in subsection (e)(3) in the following year will
exceed the amount necessary to satisfy amounts required under
subsection (e).
(2) Provide a written notice to the county auditor and the officers
who are authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly or
partly located within the allocation area. The notice must:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1); or
(B) state that the commission has determined that there are no
excess tax proceeds that may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund is
sufficient to pay all outstanding principal and interest (to the earliest
date on which the obligations can be redeemed) on revenue bonds
issued by the board of aviation commissioners or airport authority for
the financing of qualified airport development projects, all lease rentals
payable on leases of qualified airport development projects, and all
costs and expenditures associated with all qualified airport
SEA 1 — Concur
237
development projects, money in the debt service fund and in the project
fund in excess of those amounts shall be paid to the respective taxing
units in the manner prescribed by subsection (d)(1).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon petition
of the commission, reassess the taxable tangible property situated upon
or in, or added to, the airport development zone effective on the next
assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all taxable
tangible property in the airport development zone, for purposes of tax
limitation, property tax replacement, and formulation of the budget, tax
rate, and tax levy for each political subdivision in which the property
is located is the lesser of:
(1) the assessed value of the tangible property as valued without
regard to this section; or
(2) the base assessed value.
(k) If the commission confirms, or modifies and confirms, a
resolution under section 6 of this chapter and the commission makes
either of the filings required under section 6(c) of this chapter after the
first anniversary of the effective date of the allocation provision, the
auditor of the county in which the airport development zone is located
shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(l) For an airport development zone established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system, along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 197. IC 12-20-25-34, AS AMENDED BY P.L.197-2016,
SECTION 103, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 34. The financial plan adopted
under section 33 of this chapter may include the following:
(1) The adoption in the current year of a local income tax rate
SEA 1 — Concur
238
under IC 6-3.6 not to exceed one percent (1%). If a local income
tax rate is imposed under this chapter, the ordinance must specify
whether any revenue in excess of the rate needed to carry out the
financial plan is to be used for property tax relief (IC 6-3.6-5)
(before its expiration) or as additional revenue (IC 6-3.6-6). The
revenue from the tax rate under this section shall be distributed as
provided in this chapter. The adoption of a local income tax rate
under this chapter is in addition to the local income tax rate under
IC 6-3.6 that may already be in effect in the county.
(2) The payment of township assistance with county money.
(3) The elimination or reduction of township assistance services
not required under this article.
SECTION 198. IC 12-20-25-35, AS AMENDED BY P.L.197-2016,
SECTION 104, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 35. (a) The control board shall
report the following to the county fiscal body:
(1) The audit findings of the management committee.
(2) The financial plan adopted under section 33 of this chapter.
(b) Not more than thirty (30) days after notice, the county fiscal
body shall adopt one (1) of the following:
(1) An ordinance adopting the financial plan adopted by the
control board.
(2) An ordinance rejecting the financial plan adopted by the
control board.
(c) Notwithstanding IC 6-3.6-3, if:
(1) the financial plan adopted under section 33 of this chapter
includes a local income tax rate; and
(2) the fiscal body adopts an ordinance adopting the financial plan
under subsection (b);
the local income tax rate is imposed at the rate adopted in the financial
plan. Subject to the requirements of this chapter and notwithstanding
that the local income tax council may be the adopting body specified
in IC 6-3.6-3-1, the county fiscal body, rather than the local income tax
council, has the authority granted to a local income tax council by
IC 6-3.6-3 as long as the local income tax rate imposed under this
chapter remains in effect.
SECTION 199. IC 14-33-7-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
Sec. 3. (a) Except as provided in subsection (b), in all districts
described in IC 14-33-9-4, the special benefits tax rate may not exceed
six and sixty-seven hundredths cents ($0.0667) on each one hundred
dollars ($100) of assessed valuation of property in the taxing district.
SEA 1 — Concur
239
(b) This subsection applies to a district established after
December 31, 2024. The special benefits tax rate may not exceed
five cents ($0.05) on each one hundred dollars ($100) of assessed
valuation of property in the taxing district.
SECTION 200. IC 20-23-19 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Chapter 19. Dissolution of Union School Corporation
Sec. 1. As used in this chapter, "annex" has the meaning set
forth in IC 20-23-5-2.
Sec. 2. The Union School Corporation and the governing body
of the Union School Corporation are dissolved on July 1, 2027.
Sec. 3. (a) On July 1, 2027, the territory of the Union School
Corporation is annexed as follows:
(1) All of the territory of the Union School Corporation that
is located in Henry County is annexed to the Blue River
Valley Schools School Corporation.
(2) All of the territory of the Union School Corporation that
is located in Randolph County is annexed to the Monroe
Central School Corporation.
(b) The Union School Corporation may not, after July 1, 2025,
do any of the following:
(1) Issue new bonds.
(2) Enter into a lease.
(3) Otherwise incur any new obligations.
Sec. 4. (a) Notwithstanding IC 20-26-7.1, the governing body of
the Union School Corporation, before its dissolution under this
chapter, shall offer for sale and sell in the open market any
building and real property owned by the Union School
Corporation.
(b) If the governing body is unable to sell a building described
in subsection (a), the governing body of the Union School
Corporation shall make the building available for purchase as
provided under IC 20-26-7.1.
(c) If the governing body of the Union School Corporation does
not sell a building or any real property described in subsection (a),
the governing body shall transfer ownership of the building and
any real property to the governing body of the Monroe Central
School Corporation.
(d) Notwithstanding IC 20-26-7.1, the governing body of the
Monroe Central School Corporation may offer for sale and sell any
building or real property transferred under subsection (c) in the
SEA 1 — Concur
240
open market.
Sec. 5. (a) The governing body of the Union School Corporation
shall use any unencumbered funds and assets, including buses or
other personal property, owned or held by the Union School
Corporation to pay existing debts or liabilities of the Union School
Corporation.
(b) If funds and assets described in subsection (a) are
insufficient to pay all the existing debts or liabilities of the Union
School Corporation, there is appropriated on June 1, 2027, to the
Union School Corporation from the state general fund an amount
sufficient to pay off all existing debts of the Union School
Corporation.
Sec. 6. (a) If the Union School Corporation has any remaining
unencumbered funds or assets after all debts of the Union School
Corporation are paid, the remaining unencumbered funds or assets
must be divided for transfer to the Blue River Valley Schools
School Corporation and the Monroe Central School Corporation
as follows:
STEP ONE: Determine the total assessed value of all property
subject to taxation by the Union School Corporation.
STEP TWO: Determine the total assessed value of all
property subject to taxation by the Union School Corporation
that is located in Henry County.
STEP THREE: Determine the total assessed value of all
property subject to taxation by the Union School Corporation
that is located in Randolph County.
STEP FOUR: Calculate the quotient of:
(A) STEP TWO; divided by
(B) STEP ONE.
STEP FIVE: Calculate the quotient of:
(A) STEP THREE; divided by
(B) STEP ONE.
STEP SIX: Determine the product of:
(A) the amount or value of any remaining unencumbered
funds or assets of the Union School Corporation;
multiplied by
(B) STEP FOUR.
STEP SEVEN: Determine the product of:
(A) the amount or value of any remaining unencumbered
funds or assets of the Union School Corporation;
multiplied by
(B) STEP FIVE.
SEA 1 — Concur
241
(b) The governing body of the Union School Corporation shall
do the following:
(1) Determine the amount of the fair market value of each
remaining unencumbered asset owned by the Union School
Corporation.
(2) Transfer the following not later than June 30, 2027:
(A) The amount of any funds plus assets, as applicable, that
is equal to the product determined under STEP SIX of
subsection (a) to the Blue River Valley Schools School
Corporation.
(B) The amount of any funds plus assets, as applicable, that
is equal to the product determined under STEP SEVEN of
subsection (a) to the Monroe Central School Corporation.
Sec. 7. (a) With the addition of the annexed territory under this
chapter, the governing body of the Blue River Valley Schools
School Corporation shall, not later than July 1, 2025, begin the
process of adopting a plan, as needed, to determine the manner in
which the governing body shall be constituted.
(b) With the addition of the annexed territory under this
chapter, the governing body of the Monroe Central School
Corporation shall, not later than July 1, 2025, begin the process of
adopting a plan, as needed, to determine the manner in which the
governing body shall be constituted.
(c) Except as provided in subsection (d), the plan shall be
adopted in accordance with the requirements and procedures of
IC 20-23-8.
(d) The adoption of a plan under IC 20-23-8-10 and the
submission of the plan to the state board under IC 20-23-8-15 are
the only procedures required when an existing plan is changed as
described in IC 20-23-5-11(b).
(e) A plan described in subsection (a) or (b) must be adopted
and effective not later than May 15, 2027.
Sec. 8. For purposes of meeting the requirements of IC 3-8-1-34,
an individual residing in territory annexed under section 3 of this
chapter is considered a resident of the Blue River Valley Schools
School Corporation or the Monroe Central School Corporation,
whichever is applicable, during the time period in which the
individual resided in the territory before the annexation.
Sec. 9. This subsection applies to the second installment of
property taxes first due and payable in 2027. In the case of
property tax revenue that, if not for the application of this chapter,
is collected for Union School Corporation that is attributable to
SEA 1 — Concur
242
tangible property located in Randolph County, the Randolph
County auditor shall distribute the property tax revenue instead to
Monroe Central School Corporation. In the case of property tax
revenue that, if not for the application of this chapter, is collected
for Union School Corporation that is attributable to tangible
property located in Henry County, the Henry County auditor shall
distribute the property tax revenue instead to Blue River Valley
School Corporation.
Sec. 10. This chapter expires July 1, 2028.
SECTION 201. IC 20-24-3-19 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 a
charter school that receives property tax revenue under any statute
referred to in IC 20-24-7-6.1 or IC 20-24-7-6.2.
(b) As used in this section, "executive" has the meaning set forth
in IC 36-1-2-5.
(c) The county executive of the county in which the charter
school organizer is incorporated shall appoint one (1) individual to
serve as a member of the charter school board.
(d) In the case of a charter school organizer that operates more
than one (1) charter school located in more than one (1) county, the
county executive of the county in which the charter school is
incorporated shall appoint the member under this section.
(e) The following may not be appointed to a governing board
under this section:
(1) An individual currently serving on the governing body of
a school corporation.
(2) An individual currently employed by a school corporation.
(f) A county executive may designate an individual who already
serves on the governing board of the charter school as the county
executive's appointee under subsection (c).
SECTION 202. IC 20-24-4-1, AS AMENDED BY P.L.150-2024,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) A charter must meet the following
requirements:
(1) Be a written instrument.
(2) Be executed by an authorizer and an organizer.
(3) Confer certain rights, franchises, privileges, and obligations
on a charter school.
(4) Confirm the status of a charter school as a public school.
(5) Subject to subdivision (6)(E), be granted for:
(A) not less than three (3) years or more than fifteen (15)
SEA 1 — Concur
243
years; and
(B) a fixed number of years agreed to by the authorizer and the
organizer.
(6) Provide for the following:
(A) A review by the authorizer of the charter school's
performance, including the progress of the charter school in
achieving the academic goals set forth in the charter, at least
one (1) time in each five (5) year period while the charter is in
effect.
(B) Renewal, if the authorizer and the organizer agree to renew
the charter.
(C) The renewal application must include guidance from the
authorizer, and the guidance must include the performance
criteria that will guide the authorizer's renewal decisions.
(D) The renewal application process must, at a minimum,
provide an opportunity for the charter school to:
(i) present additional evidence, beyond the data contained in
the performance report, supporting its case for charter
renewal;
(ii) describe improvements undertaken or planned for the
charter school; and
(iii) detail the charter school's plans for the next charter
term.
(E) Not later than the end of the calendar year in which the
charter school seeks renewal of a charter, the governing board
of a charter school seeking renewal shall submit a renewal
application to the charter authorizer under the renewal
application guidance issued by the authorizer. The authorizer
shall make a final ruling on the renewal application not later
than April 1 after the filing of the renewal application. A
renewal granted under this clause is not subject to the three (3)
year minimum described in subdivision (5). The April 1
deadline does not apply to any review or appeal of a final
ruling. After the final ruling is issued, the charter school may
obtain further review by the authorizer of the authorizer's final
ruling in accordance with the terms of the charter school's
charter and the protocols of the authorizer.
(7) Specify the grounds for the authorizer to:
(A) revoke the charter before the end of the term for which the
charter is granted; or
(B) not renew a charter.
(8) Set forth the methods by which the charter school will be held
SEA 1 — Concur
244
accountable for achieving the educational mission and goals of
the charter school, including the following:
(A) Evidence of improvement in:
(i) assessment measures, including the statewide assessment
program measures;
(ii) attendance rates;
(iii) graduation rates (if appropriate);
(iv) increased numbers of Indiana diplomas with a Core 40
designation or increased numbers of Indiana diploma
designations established under IC 20-19-2-21 and other
college and career ready indicators including advanced
placement participation and passage, dual credit
participation and passage, and International Baccalaureate
participation and passage (if appropriate);
(v) increased numbers of Indiana diplomas with Core 40
with academic honors and technical honors designations (if
appropriate);
(vi) student academic growth;
(vii) financial performance and stability; and
(viii) governing board performance and stewardship,
including compliance with applicable laws, rules and
regulations, and charter terms.
(B) Evidence of progress toward reaching the educational
goals set by the organizer.
(9) Describe the method to be used to monitor the charter
school's:
(A) compliance with applicable law; and
(B) performance in meeting targeted educational performance.
(10) Specify that the authorizer and the organizer may amend the
charter during the term of the charter by mutual consent and
describe the process for amending the charter.
(11) Describe specific operating requirements, including all the
matters set forth in the application for the charter.
(12) Specify a date when the charter school will:
(A) begin school operations; and
(B) have students attending the charter school.
(13) Specify that records of a charter school relating to the
school's operation and charter are subject to inspection and
copying to the same extent that records of a public school are
subject to inspection and copying under IC 5-14-3.
(14) Specify that records provided by the charter school to the
department or authorizer that relate to compliance by the
SEA 1 — Concur
245
organizer with the terms of the charter or applicable state or
federal laws are subject to inspection and copying in accordance
with IC 5-14-3.
(15) Specify that the charter school is subject to the requirements
of IC 5-14-1.5.
(16) This subdivision applies to a charter established or renewed
for an adult high school after June 30, 2014. The charter must
require:
(A) that the school will offer flexible scheduling;
(B) that students will not complete the majority of instruction
of the school's curriculum online or through remote
instruction;
(C) that the school will offer dual credit or industry
certification course work that aligns with career pathways as
recommended by the Indiana career council established by
IC 22-4.5-9-3 (expired); and
(D) a plan:
(i) to support successful program completion and to assist
transition of graduates to the workforce or to a
postsecondary education upon receiving a diploma from the
adult high school; and
(ii) to review individual student accomplishments and
success after a student receives a diploma from the adult
high school.
(17) In the case of a charter school that is subject to
IC 20-24-3-19, the charter must confirm that at least one (1)
member of the governing board of the charter school will be
appointed in accordance with IC 20-24-3-19.
(b) A charter school shall set annual performance targets in
conjunction with the charter school's authorizer. The annual
performance targets shall be designed to help each school meet
applicable federal, state, and authorizer expectations.
SECTION 203. IC 20-24-7-6, AS AMENDED BY P.L.189-2023,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6. (a) 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.
(b) Except as provided in IC 20-46-1-21 and IC 20-46-9-22, a
governing body may distribute money that is received as part of a tax
SEA 1 — Concur
246
levy collected under IC 20-46-1 from the school corporation's
education fund to a charter school, excluding a virtual charter school,
in the manner provided by IC 20-46-1-8(e).
(c) Except as provided in IC 20-46-1-21 and IC 20-46-9-22, a
governing body may distribute money from the school safety
referendum tax levy fund to a charter school, excluding a virtual
charter school, in the manner prescribed by IC 20-46-9-6(b).
SECTION 204. IC 20-24-7-6.1, AS ADDED BY P.L.201-2023,
SECTION 153, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 6.1. (a) This section applies to
revenue collected:
(1) after June 30, 2024, and before January 1, 2028, from a tax
levy imposed under IC 20-46-8 by the governing body of a school
corporation described in IC 20-46-8-11.2(a); and
(2) after December 31, 2027, in the case of a tax levy imposed
under IC 20-46-8 by the governing body of a school
corporation.
(b) Beginning In calendar year 2025, 2026, and 2027, and each year
thereafter, the county auditor shall distribute money that is received as
part of a tax levy collected under IC 20-46-8 to an eligible charter
school, excluding a virtual charter school and adult high school, for
deposit in the charter school's operations fund created under
IC 20-40-18-1. The distributions shall be made at the same time that
tax levy revenue is required to be distributed to school corporations.
(c) Beginning in calendar year 2028, and each year thereafter,
the county auditor shall distribute money that is received as part
of a tax levy collected under IC 20-46-8 to an eligible charter
school, excluding a virtual charter school and adult high school, in
the manner prescribed by IC 20-46-8-12 for deposit in the charter
school's operations fund created under IC 20-40-18-1. The
distributions shall be made at the same time that tax levy revenue
is required to be distributed to school corporations.
SECTION 205. IC 20-24-7-6.2, AS ADDED BY P.L.189-2023,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 6.2. (a) This section applies to a levy:
(1) resulting from a resolution to place a referendum on the ballot
adopted by the governing body under IC 20-46-1-8,
IC 20-46-1-8.5, IC 20-46-9-6, or IC 20-46-9-7 after May 10,
2023, for counties described in IC 20-46-1-21(a) and
IC 20-46-9-22(a); or
(2) if the:
(A) governing body of the school corporation approves the
SEA 1 — Concur
247
referendum levy in a resolution adopted under
IC 20-46-1-8 or IC 20-46-1-8.5; and
(B) referendum levy is imposed for the first time with
property taxes first due and payable in a calendar year
beginning after December 31, 2027.
(b) The county auditor in the county in which the applicable school
corporation is located shall distribute money that is received as part of
a tax levy collected under IC 20-46-1 to an applicable charter school,
excluding a virtual charter school or adult high school, in the manner
provided by IC 20-46-1-21.
(c) The county auditor in the county in which the applicable school
corporation is located shall distribute money that is received as part of
a tax levy collected under IC 20-46-9 to an applicable charter school,
excluding a virtual charter school or adult high school, in the manner
prescribed by IC 20-46-9-22.
(d) A charter school that may receive money from a school
corporation's tax levy collected under IC 20-46-1 or a school safety
referendum tax levy under IC 20-46-9 may not promote a position on
is prohibited from promoting a referendum in the same manner as a
school corporation is prohibited from promoting a position on a
referendum under IC 20-46-1-20.
(e) If a charter school receives a distribution from a school
corporation from the school corporation's tax levy collected under
IC 20-46-1 or a school safety referendum tax levy under IC 20-46-9,
the charter school must post the following on the charter school's
website:
(1) The specific purposes for which the revenue received from the
tax levy will be used.
(2) An estimate of the annual dollar amounts that will be
expended for each purpose described in subdivision (1).
SECTION 206. IC 20-24-7-17 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 17. (a) This section is in addition
to any other requirement imposed on a charter school with respect
to the closure of a charter school, including the payment of any
outstanding debts.
(b) At the time of the closure of a charter school, the charter
school shall return any money remaining unexpended from any
distribution of property tax revenue received from a levy referred
to in sections 6.1 and 6.2 of this chapter to the school corporation
that made the distribution. A charter school that closes is not
entitled to any future distributions of property tax revenue from a
SEA 1 — Concur
248
levy referred to in sections 6.1 and 6.2 of this chapter.
(c) If a charter school has outstanding debt at the time of the
closure, the charter school must satisfy the outstanding debt in
accordance with the following:
(1) If the charter school owns the building but did not
purchase the building under IC 20-26-7.1, the charter school
must first sell the building and apply the proceeds received
from the sale to pay off the outstanding debt.
(2) If subdivision (1) does not apply, the charter school must
satisfy the debt by means of any other revenue source legally
available to the charter school.
(d) A charter school that closes must notify the county auditor
of the county in which the charter school is located of the closure
and provide the county auditor with a copy of the:
(1) charter school authorizer's decision;
(2) charter school's governing body's vote determining; or
(3) minutes of the meeting at which the charter school's
governing body made the decision;
to close the charter school.
SECTION 207. IC 20-25.7-5-3, AS AMENDED BY P.L.162-2024,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) For as long as a charter school remains a
participating innovation network charter school:
(1) the school corporation may provide transportation for students
attending the participating innovation network charter school;
(2) the school corporation may maintain and repair the buildings
and grounds used by the participating innovation network charter
school consistent with the maintenance and repair to the school
corporation's other buildings and grounds;
(3) the school corporation may enter into an agreement to transfer
the ownership of a school corporation facility to the organizer;
and
(4) the school corporation may not alter the use of the facility
occupied by the participating innovation network charter school
without written agreement from the organizer.
(b) If an organizer contracts with a school corporation for goods or
services, the school corporation may not charge the organizer more for
the goods or services than the school corporation pays for the goods or
services. A school corporation may not require an organizer to contract
for specific goods or services provided by the school corporation or any
other entity.
(c) A school corporation and an organizer may negotiate to require
SEA 1 — Concur
249
specific services with regard to a participating innovation network
charter school during the term of an agreement. However, an organizer
must be able to select the service provider for the services.
(d) For as long as a charter school remains a participating
innovation network charter school, the school corporation may
distribute money levied as property taxes to the charter school. Property
taxes distributed to a charter school must be used only for a purpose for
which the property taxes could have been used by the school
corporation. Property taxes distributed under this subsection may
supplement services and property provided under subsection (a) or (b).
The parties may jointly modify an agreement described in section 2 of
this chapter to implement this subsection.
(e) An agreement concerning the transfer of ownership of a school
corporation facility described in subsection (a) is not subject to
IC 20-26-7.1.
(f) Unless an agreement entered into before July 1, 2024, between
a board and an organizer provides otherwise, a school corporation may
not charge an organizer an amount for goods and services that is
greater than the amount of the operations fund property tax levy the
organizer receives under IC 20-46-8-11.2 or IC 20-46-8-12 for the
participating innovation network charter school.
SECTION 208. IC 20-26-7-18, AS AMENDED BY P.L.250-2023,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 18. Subject to IC 5-1-11.5, a school corporation
may issue and sell bonds under the general statutes governing the
issuance of bonds to purchase and improve buildings or lands, or both.
All laws relating to approval (if required) in a local public question
under IC 6-1.1-20, including the requirement that a local public
question may be placed on the ballot only at a general election, the
filing of petitions, remonstrances, and objecting petitions, giving
notices of the filing of petitions, the determination to issue bonds, and
the appropriation of the proceeds of the bonds are applicable to the
issuance of bonds under section 17 of this chapter.
SECTION 209. IC 20-26-7.1-1, AS AMENDED BY P.L.36-2024,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) For purposes of this section, "charter
school" does not include a virtual charter school or an adult high
school.
(b) This chapter does not apply to the following:
(1) A school building that since July 1, 2011, is leased or loaned
by the school corporation that owns the school building to another
entity, if the entity is not a building corporation or other entity that
SEA 1 — Concur
250
is related in any way to, or created by, the school corporation or
the governing body.
(2) A school corporation to which all of the following apply:
(A) The county auditor distributes revenue after May 10, 2023,
as required under IC 20-46-1-21 or IC 20-46-1-22 to each
eligible charter school. described in IC 20-46-1-21(b).
(B) If the school corporation listed in IC 20-46-9-22 receives
revenue from a school safety referendum tax levy under
IC 20-46-9, the county auditor distributes revenue after May
10, 2023, as required under IC 20-46-9-22 to each charter
school described in IC 20-46-9-22(b).
The above subdivisions are intended to apply retroactively. No
referendums or distributed revenue prior to May 10, 2023, are
effective to provide exemption from this chapter.
(3) A school corporation to which all of the following apply:
(A) The school corporation approves a resolution after May
10, 2023, to impose an operating referendum tax levy under
IC 20-46-1 after May 10, 2023, that includes sharing the
revenue from the referendum tax levy in the amounts
described in clause (B) with each charter school that:
(i) a student who resides within the attendance area of the
school corporation attends; and
(ii) elects to participate in the referendum.
The above subdivisions are intended to apply retroactively. No
resolutions, referendums, or distributed revenue prior to May 10,
2023, are effective to provide exemption from this chapter.
(B) The amount of referendum tax levy revenue that the school
corporation is required to share with each charter school under
the resolution described in clause (A) is equal to the amount
determined applying the applicable formula under
IC 20-46-1-21(d). IC 20-46-1-21 or IC 20-46-1-22.
(C) The referendum tax levy described in clause (A) is
approved by the voters.
(D) The school corporation distributes the amounts described
in clause (B) to each charter school described in clause (A).
(E) If the school corporation receives revenue from a school
safety referendum tax levy under IC 20-46-9, the school
corporation shares the revenue from the school safety
referendum tax levy with each charter school that:
(i) a student who resides within the attendance area of the
school corporation attends; and
(ii) elects to participate in the referendum;
SEA 1 — Concur
251
in an amount equal to the amount determined applying the
formula under IC 20-46-9-22(d).
(c) In order for any payment to a charter school to qualify as sharing
of proceeds from a referendum for purposes of exemption from
IC 20-26-7.1, the referendum must have been passed with prior notice
to voters of all amounts of referendum proceeds to be paid to charter
schools. Any claim of exemption based on payment of proceeds from
a referendum passed without such notice is void.
SECTION 210. IC 20-40-2-2, AS AMENDED BY P.L.201-2023,
SECTION 181, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 2. (a) The governing body of each
school corporation shall establish an education fund for the payment of
expenses that are allocated to student instruction and learning under
IC 20-42.5.
(b) The governing body of a charter school that receives a
distribution of revenue received from a tax levy under IC 20-46-8-11.2
or IC 20-46-8-12 shall establish an education fund for the payment of
expenses that are allocated to student instruction and learning under
IC 20-42.5.
SECTION 211. IC 20-40-3-5, AS AMENDED BY P.L.189-2023,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 5. (a) Money in the fund may be used for any
lawful school expenses, including making a transfer to the school
corporation's education fund (IC 20-40-2) or operations fund
(IC 20-40-18).
(b) Except as provided in IC 20-46-1-21, a school corporation may
distribute proceeds of a tax levy collected under IC 20-46-1 that is
transferred to the school corporation's education fund to a charter
school, excluding a virtual charter school, that is located within the
attendance area of the school corporation.
SECTION 212. IC 20-40-18-1, AS AMENDED BY P.L.201-2023,
SECTION 185, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 1. (a) The governing body of each
school corporation shall create an operations fund to be used by the
school corporation after December 31, 2018.
(b) The governing body of each charter school that receives a
distribution of revenue received from a tax levy under IC 20-46-8-11.2
or IC 20-46-8-12 shall create an operations fund to be used by the
charter school after December 31, 2024.
SECTION 213. IC 20-40-18-2, AS AMENDED BY P.L.201-2023,
SECTION 186, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 2. (a) The operations fund shall be
SEA 1 — Concur
252
used to deposit the following after December 31, 2018, in the case of
a school corporation:
(1) Revenue from the school corporation's operations fund
property tax levy under IC 20-46-8.
(2) The sum of the following excise tax revenue received for
deposit in the fund in the calendar year in which the school year
begins:
(A) Financial institutions excise tax (IC 6-5.5).
(B) Motor vehicle excise taxes (IC 6-6-5).
(C) Commercial vehicle excise taxes (IC 6-6-5.5).
(D) Boat excise tax (IC 6-6-11).
(E) Aircraft license excise tax (IC 6-6-6.5).
(3) Transfers from the education fund (IC 20-40-2) or the
operating referendum tax levy fund (IC 20-40-3), if any.
(4) Allocations of local income taxes to the school corporation
under IC 6-3.6-6, if any.
(b) In the case of a charter school, the operations fund shall be
used to deposit amounts distributed to the charter school under
IC 20-46-8-11.2 or IC 20-46-8-12 after December 31, 2024.
SECTION 214. IC 20-40-18-10.5, AS ADDED BY P.L.201-2023,
SECTION 187, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 10.5. (a) This section applies only
to eligible charter schools that receive amounts distributed under
IC 20-46-8-11.2 or IC 20-46-8-12.
(b) For purposes of this section, "charter board" means the
governing body of the organizer (as defined in IC 20-24-1-7) of an
eligible charter school.
(c) The operations fund may be used only to do the following:
(1) Carry out a capital projects plan under the following
conditions:
(A) The plan must include all proposed expenditures that
exceed ten thousand dollars ($10,000) and are for:
(i) capital assets; or
(ii) projects that are considered capital in nature, including
technology related projects.
(B) If a charter school wants to use money in the operations
fund during the year to pay for any items listed in clause (E)
that are considered capital in nature, the charter board must
approve a plan following a public hearing. The charter school
shall post the proposed plan or proposed amended plan on the
charter school's website before the hearing. The charter school
shall submit the proposed capital projects plan to the
SEA 1 — Concur
253
department of local government finance's computer gateway
at least ten (10) days before the public hearing. The
department of local government finance shall make the
proposed plan available at least ten (10) days before the
hearing, through the department's computer gateway. If an
amendment to a capital projects plan is proposed, the charter
board must declare the nature of and need for the amendment
in the plan amendment.
(C) If a charter board adopts a plan under clause (B), the
charter school must then submit the plan to the department of
local government finance for inclusion on the department's
computer gateway not later than thirty (30) days after adoption
of the plan. The department of local government finance shall
immediately make the proposed plan available through the
gateway website.
(D) This clause applies to an amendment to a plan that is
required because of an emergency that results in costs that
exceed the amount accumulated in the fund for repair,
replacement, or site acquisition that is necessitated by an
emergency. The charter board is not required to comply with
clause (C). If the charter board determines that an emergency
exists, the governing body may adopt an amendment to the
plan. An amendment to a plan is not subject to the deadline
and procedures for adoption of a plan described in this
subdivision.
(E) This clause sets forth an exclusive list of the expenditures
that may be made from the operations fund under clause (B),
as set forth in the charter board's plan or amended plan.
Subject to the expenditures that are identified in the charter
school's plan or amended plan, the operations fund shall be
used for the following:
(i) Site acquisition.
(ii) Site development.
(iii) Building acquisition, construction, replacement,
renovation, remodeling, improvement, and maintenance,
including building materials and employment services.
(iv) Rental of real estate, buildings, facilities, and
equipment.
(v) To repair and replace buildings and to repair and replace
building fixtures that are owned or leased by the charter
school and of a type constituting loss capable of being
covered by casualty insurance.
SEA 1 — Concur
254
(vi) Purchase, lease, repair, or maintenance of equipment,
including maintenance vehicles to be used by the charter
school. However, the fund may not be used to pay for the
purchase, lease, repair, or maintenance of vehicles that are
not maintenance vehicles, or equipment to be used primarily
for interscholastic or extracurricular activities.
(vii) Service contracts for janitorial and custodial services,
maintenance services, snow and ice removal services, trash
removal services, mowing and lawn care services, pest
control services, and any other routine services normally
required in the maintenance or upkeep of charter school
facilities.
(viii) Repair, replacement, or site acquisition that is
necessitated by an emergency.
(ix) Construction, repair, replacement, remodeling, or
maintenance of a school sports facility.
(x) Utilities.
(xi) Property and casualty insurance.
(xii) Purchase, lease, upgrade, maintenance, or repair
technology that will not be allocated to student instruction
and learning, to include computer hardware, computer
software, wiring and computer networks, and
communication access systems used to connect with
computer networks or electronic gateways; services of
full-time or part-time computer maintenance employees;
conducting nonrecurring inservice technology training of
school employees; implementing the technology preparation
curriculum; participating in a program to provide
educational technologies, including computers in the homes
of students (commonly referred to as "the buddy system
project") under IC 20-20-13-6, the 4R's technology program,
or any other program under the educational technology
program described in IC 20-20-13; and obtaining any
combination of equipment or services in the preceding two
(2) categories of this item.
(xiii) Services of charter school employees who perform
services considered to be a skilled trade by the United States
Department of Labor, Employment and Training
Administration. For purposes of this item, skilled trade
services do not include janitorial or comparable routine
services normally provided in the daily operation of school
facilities or equipment. Payment may be made for employee
SEA 1 — Concur
255
services only if the employees perform construction of,
renovation of, remodeling of, repair of, or maintenance on
the facilities and equipment of the charter school.
(2) Pay transportation costs under the following conditions:
(A) A charter school shall use the operations fund to pay the
transportation costs attributable to transportation of school
children as specified in clause (B).
(B) Only the following costs are payable from the fund:
(i) Salaries paid to bus drivers, transportation supervisors,
mechanics and garage employees, clerks, and other
transportation related employees.
(ii) Contracted transportation services.
(iii) Wages of independent contractors.
(iv) Contracts with common carriers.
(v) Student fares.
(vi) Transportation related insurance.
(vii) Other expenses of operating the school corporation's
transportation service, including gasoline, lubricants, tires,
repairs, contracted repairs, parts, supplies, equipment, and
other related expenses.
(C) Percentages or parts of salaries of teaching personnel or
principals are not attributable to transportation. However, parts
of salaries of instructional aides who are assigned to assist
with the school transportation program are attributable to
transportation. The costs described in this clause (other than
instructional aide costs) may not be budgeted for payment or
paid from the fund.
(D) Costs for a calendar year are those costs attributable to
transportation for students during the school year ending in the
calendar year.
(3) Carry out a school bus replacement plan approved by the
charter school board under the following conditions:
(A) Before a charter school may use money in the operations
fund for replacing school buses, a resolution approving the
school bus replacement plan or amended plan must be
submitted to the department of local government finance.
(B) The department of local government finance shall
prescribe the format of the plan. A plan must apply to at least
the five (5) budget years immediately following the year the
plan is adopted and include at least an estimate for each year
to which it applies of the nature and amount of proposed
expenditures from the fund, and if the school corporation is
SEA 1 — Concur
256
seeking to acquire or contract for transportation services that
will provide additional school buses or school buses with a
larger seating capacity as compared with the number and type
of school buses from the prior school year, evidence of a
demand for increased transportation services within the school
corporation. However, the evidence requirement regarding a
contract for transportation services does not apply if contracted
transportation services are not paid from the fund.
(C) If the charter school is seeking to require a contractor to
replace a school bus, evidence that the need exists for the
replacement of the school bus. This clause does not apply if
contracted transportation services are not paid from the
operations fund.
(D) Evidence that the charter school that seeks to acquire
additional school buses under this subdivision is acquiring or
contracting for the school buses only for the purposes
specified in clause (B) or for replacement purposes.
(E) If a charter school wants to use money in the operations
fund during the year to pay for school bus replacement, the
governing body must adopt a resolution approving the bus
replacement plan or amended plan. The charter school shall
post the proposed plan or proposed amended plan on the
charter school's website before the hearing. The governing
body must hold a hearing on the adoption of the plan. The
charter school shall submit the proposed school bus
replacement plan or amended plan to the department of local
government finance's computer gateway at least ten (10) days
before the hearing on the adoption of the plan. The department
of local government finance shall make the proposed plan
available to taxpayers, at least ten (10) days before the hearing,
through the department's computer gateway. If an amendment
to a bus replacement plan is being proposed, the charter school
must declare the nature of and the need for the amendment in
the resolution to adopt the amendment to the plan.
(4) Pay expenses that are allocated to overhead and operational
expenditures.
(5) Establish, maintain, and equip a public playground.
SECTION 215. IC 20-46-1-8, AS AMENDED BY P.L.162-2024,
SECTION 25, AND AS AMENDED BY P.L.36-2024, SECTION 10,
AND AS AMENDED BY P.L.104-2024, SECTION 51, AND AS
AMENDED BY THE TECHNICAL CORRECTIONS BILL OF THE
2025 GENERAL ASSEMBLY, IS CORRECTED AND AMENDED
SEA 1 — Concur
257
TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 8. (a)
Subject to subsections (e), (f), and (g) (b), (e), and (f) and this chapter,
the governing body of a school corporation may adopt a resolution to
place a referendum under this chapter on the ballot for any of the
following purposes:
(1) The governing body of the school corporation determines that
it cannot, in a calendar year, carry out its public educational duty
unless it imposes a referendum tax levy under this chapter.
(2) The governing body of the school corporation determines that
a referendum tax levy under this chapter should be imposed to
replace property tax revenue that the school corporation will not
receive because of the application of the credit under
IC 6-1.1-20.6.
(3) Except for resolutions described in subsection (b), the
governing body makes the determination required under
subdivision (1) or (2) and determines to share a portion of the
referendum proceeds with a charter school, excluding a virtual
charter school, in the manner prescribed in subsection (e).
(b) A resolution for a referendum for a county described in:
(1) section 21 of this chapter; that is adopted after May 10, 2023,
or
(2) section 22 of this chapter;
shall specify that a portion of the proceeds collected from the proposed
levy will be distributed to applicable charter schools in the manner
described under section 21 of this chapter.
(c) The governing body of the school corporation shall certify a
copy of the resolution to place a referendum on the ballot to the
following:
(1) The department of local government finance, including:
(A) the language for the question required by section 10 of this
chapter, or in the case of a resolution to extend a referendum
levy certified to the department of local government finance
after March 15, 2016, section 10.1 of this chapter; and
(B) a copy of the revenue spending plan adopted under
subsection (g). (f).
The language of the public question must include the estimated
average percentage increases certified by the county auditor under
section 10(e) or 10.1(f) of this chapter, as applicable. The
governing body of the school corporation shall also provide the
county auditor's certification described in section 10(e) or 10.1(f)
of this chapter, as applicable. The department of local government
finance shall post the values certified by the county auditor to the
SEA 1 — Concur
258
department's website. The department shall review the language
for compliance with section 10 or 10.1 of this chapter, whichever
is applicable, and either approve or reject the language. The
department shall send its decision to the governing body of the
school corporation not more than ten (10) days after both the
certification of the county auditor described in section 10(e) or
10.1(f) of this chapter, as applicable, and the resolution is are
submitted to the department. If the language is approved, the
governing body of the school corporation shall certify a copy of
the resolution, including the language for the question and the
department's approval.
(2) The county fiscal body of each county in which the school
corporation is located (for informational purposes only).
(3) The circuit court clerk of each county in which the school
corporation is located.
(d) If a school safety referendum tax levy under IC 20-46-9 has been
approved by the voters in a school corporation at any time in the
previous three (3) years, the school corporation may not:
(1) adopt a resolution to place a referendum under this chapter on
the ballot; or
(2) otherwise place a referendum under this chapter on the ballot.
(e) Except as provided in section 21 of this chapter, the resolution
described in subsection (a) must indicate whether proceeds in the
school corporation's education fund collected from a tax levy under this
chapter will be used to provide a distribution to a charter school or
charter schools, excluding a virtual charter school, under IC 20-40-3-5
as well as the amount that will be distributed to the particular charter
school or charter schools. A school corporation may request from the
designated charter school or charter schools any financial
documentation necessary to demonstrate the financial need of the
charter school or charter schools. Distribution to a charter school of
proceeds from a referendum held before May 10, 2023, does not
provide exemption from this chapter.
(f) This subsection applies to a resolution described in subsection
(a) for a county described in section 21(a) of this chapter that is
adopted after May 10, 2023. The resolution described in subsection (a)
shall include a projection of the amount that the school corporation
expects to be distributed to a particular charter school, excluding
virtual charter schools or adult high schools, under section 21 of this
chapter if the charter school voluntarily elects to participate in the
referendum in the manner described in subsection (i). At least sixty
(60) days before the resolution described in subsection (a) is voted on
SEA 1 — Concur
259
by the governing body, the school corporation shall contact the
department to determine the number of students in kindergarten
through grade 12 who have legal settlement in the school corporation
but attend a charter school, excluding virtual charter schools or adult
high schools, and who receive not more than fifty percent (50%) virtual
instruction. The department shall provide the school corporation with
the number of students with legal settlement in the school corporation
who attend a charter school, and who receive not more than fifty
percent (50%) virtual instruction, which shall be disaggregated for each
particular charter school, excluding a virtual charter school or adult
high school. The projection may include an expected increase in
charter schools during the term the levy is imposed under this chapter.
The department of local government finance shall prescribe the manner
in which the projection shall be calculated. The governing body shall
take into consideration the projection when adopting the revenue
spending plan under subsection (g).
(e) This subsection applies to a resolution described in section 21
or 22 of this chapter. Not later than sixty (60) days before the
resolution is voted on by the governing body, the school
corporation shall contact the department to determine the
following:
(1) In the case of a resolution described in section 22 of this
chapter, whether the school corporation is exempt from
revenue sharing requirements under section 22(a)(2) of this
chapter. If the school corporation is determined to be exempt,
the department shall notify the school corporation, and the
school corporation is not required to contact charter schools
concerning participation under subsection (h), shall exclude
distributions to charter schools under section 22 of this
chapter, and shall exclude charter schools from the projection
described in this subsection.
(2) If the school corporation is not determined to be exempt
from revenue sharing requirements under subdivision (1), the
number of students in kindergarten through grade 12 who:
(A) have legal settlement in the school corporation but
attend a charter school, excluding virtual charter schools
or adult high schools; and
(B) receive not more than fifty percent (50%) virtual
instruction.
Not later than ten (10) days after receiving the request, the
department shall provide the school corporation with the requested
information, which shall be disaggregated for each particular
SEA 1 — Concur
260
charter school. Subject to subsection (h), the resolution shall
include a projection of the amount that the school corporation
expects, based on the information provided by the department
under this subsection, to be distributed to a particular charter
school under section 21 or 22 of this chapter.
(g) (f) As part of the resolution described in subsection (a), the
governing body of the school corporation shall adopt a revenue
spending plan for the proposed referendum tax levy that includes:
(1) an estimate of the amount of annual revenue expected to be
collected if a levy is imposed under this chapter;
(2) the specific purposes for which the revenue collected from a
levy imposed under this chapter will be used;
(3) an estimate of the annual dollar amounts that will be expended
for each purpose described in subdivision (2); and
(4) for a resolution for a referendum that is adopted after May 10,
2023, for a county described in section 21(a) section 21 or 22 of
this chapter, the projected revenue that shall be distributed to
charter schools. as provided in subsections (f) and (i). The
revenue spending plan shall also take into consideration
deviations in the proposed revenue spending plan if the actual
charter school distributions exceed or are lower than the projected
charter school distributions described in subsection (f). (e). The
resolution shall include for each charter school that elects to
participate under subsection (i) (h) information described in
subdivisions (1) through (3).
(h) (g) A school corporation shall specify in its proposed budget the
school corporation's revenue spending plan adopted under subsection
(g) (f) and annually present the revenue spending plan at its public
hearing on the proposed budget under IC 6-1.1-17-3.
(i) This subsection applies to a resolution described in subsection
(a) for a county described in section 21(a) of this chapter that is
adopted after May 10, 2023. At least forty-five (45) days before the
resolution described in subsection (a) is voted on by the governing
body, the school corporation shall contact each charter school,
excluding virtual charter schools or adult high schools, disclosed by the
department to the school corporation under subsection (f) to determine
whether the charter school will participate in the referendum. The
notice must include the total amount of the school corporation's
expected need, the corresponding estimate for that amount divided by
the number of students enrolled in the school corporation, and the date
on which the governing body of the school corporation will vote on the
resolution. The charter school must respond in writing to the school
SEA 1 — Concur
261
corporation, which may be by electronic mail addressed to the
superintendent of the school corporation, at least fifteen (15) days
prior to the date that the resolution described in subsection (a) is to be
voted on by the governing body. If the charter school elects to not
participate in the referendum, the school corporation may exclude
distributions to the charter school under section 21 of this chapter and
from the projection described in subsection (f). If the charter school
elects to participate in the referendum, the charter school may receive
distributions under section 21 of this chapter and must be included in
the projection described in subsection (f). In addition, a charter school
that elects to participate in the referendum under this subsection shall
contribute a proportionate share of the cost to conduct the referendum
based on the total combined ADM of the school corporation and any
participating charter schools.
(h) This subsection applies to a resolution described in section
21 or 22 of this chapter. Except as provided in subsection (e), not
later than forty-five (45) days before the resolution is voted on by
the governing body, the school corporation shall contact each
charter school disclosed by the department to the school
corporation under subsection (e) to determine whether the charter
school will:
(1) in the case of a resolution described in section 21 of this
chapter, elect to participate; or
(2) in the case of a resolution described in section 22 of this
chapter, elect to not participate;
in the referendum. The notice must include the total amount of the
school corporation's expected need, the corresponding estimate for
that amount divided by the number of students enrolled in the
school corporation, and the date on which the governing body of
the school corporation will vote on the resolution. Not later than
thirty (30) days prior to the date that the resolution is to be voted
on by the governing body, the charter school must respond in
writing to the school corporation and to the department, which
may be by electronic mail, and, in the case of the school
corporation, addressed to the superintendent of the school
corporation. A charter school that elects to not participate in the
referendum may not subsequently change that election during the
term of the referendum.
(i) If a charter school will not participate in the referendum, the
school corporation shall exclude distributions to the charter school
under this chapter and from the projection described in subsection
(e). If a charter school will participate in the referendum, the
SEA 1 — Concur
262
charter school:
(1) must be included in the projection described in subsection
(e); and
(2) shall contribute a proportionate share of the cost to
conduct the referendum based on the total combined ADM of
the school corporation and any participating charter schools.
(j) This subsection applies to a resolution described in subsection
(a) for a county described in section 21(a) section 21 or 22 of this
chapter. that is adopted after May 10, 2023. At least thirty (30) days
before the resolution described in subsection (a) referendum submitted
to the voters under this chapter is voted on by the governing body,
public in a primary or general election, the school corporation that is
pursuing the resolution referendum and any charter school that has
elected to will participate under subsection (i) (h) shall post a
referendum disclosure statement on each school's respective website
that contains the following information:
(1) The salaries of all employees employed by position within the
school corporation or charter school listed from highest salary to
lowest salary and a link to Gateway Indiana for access to
individual salaries.
(2) An acknowledgment that the school corporation or charter
school is not committing any crime described in IC 35-44.1-1.
(3) A link to the school corporation's or charter school's most
recent state board of accounts audit on the state board of accounts'
website.
(4) The current enrollment of the school corporation or charter
school disaggregated by student group and race.
(5) The school corporation's or charter school's high school
graduation rate.
(6) The school corporation's or charter school's annual retention
rate for teachers for the previous five (5) years.
(k) Not later than July 15, 2025, the department of education
shall prescribe the manner in which a projection described in
subsection (e) shall be calculated.
(l) A charter school that begins operations after a resolution
under this section or section 8.5 of this chapter is voted on by the
governing body for a particular referendum may not receive an
option to elect to participate in that referendum during the term of
that referendum.
SECTION 216. IC 20-46-1-8.5, AS AMENDED BY P.L.189-2023,
SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 8.5. (a) A resolution to extend a referendum levy
SEA 1 — Concur
263
must be:
(1) adopted by the governing body of a school corporation; and
(2) approved in a referendum under this chapter;
before December 31 of the final calendar year in which the school
corporation's previously approved referendum levy is imposed under
this chapter.
(b) For a resolution described in section 21 or 22 of this chapter
that is adopted under this section, after May 10, 2023, for a county
described in section 21(a) of this chapter, the resolution must include
the projected charter school distributions described in section 8(f) 8(e)
of this chapter and indicate the distributions to applicable charter
schools in accordance with section 21 of this chapter.
SECTION 217. IC 20-46-1-10, AS AMENDED BY P.L.189-2023,
SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 10. (a) This section does not apply to a
referendum on a resolution certified to the department of local
government finance after March 15, 2016, to extend a referendum levy.
(b) The question to be submitted to the voters in the referendum
must read as follows:
"Shall the school corporation increase property taxes paid to
schools by homeowners and businesses for _____ (insert number
of years) years immediately following the holding of the
referendum for the purpose of funding ______ (insert short
description of purposes)? If this public question is approved by
the voters, the average property tax paid to schools per year on a
residence would increase by ______% (insert the estimated
average percentage of property tax increase paid to schools on a
residence within the school corporation as determined under
subsection (c)) and the average property tax paid to schools per
year on a business property would increase by ______% (insert
the estimated average percentage of property tax increase paid to
schools on a business property within the school corporation as
determined under subsection (d)). The most recent property tax
referendum proposed by the school corporation was held in
______ (insert year) and ________ (insert whether the measure
passed or failed).".
"Shall ________ (insert the name of the school corporation)
increase property taxes paid to the school corporation for no
more than ______ (insert the number of years immediately
following the holding of the referendum) years for the
purpose of funding _______ (insert a brief description of the
purposes) by imposing a property tax rate that does not
SEA 1 — Concur
264
exceed ______ (insert property tax rate) and results in a
maximum annual amount that does not exceed ______ (insert
maximum amount of annual levy). If this operating
referendum public question is approved by the voters, for a
median residence of ______ (insert the school corporation's
median household assessed value, rounded up to the next fifty
thousand dollars ($50,000)), the property's annual property
tax bill would increase by ______ (insert dollar amount,
rounded up to the next whole dollar) per year. (If, in the
previous five (5) years, the school corporation has conducted
an operating referendum public question, the following shall
also be included in the ballot language.) The most recent
operating referendum public question proposed by the school
corporation was held in ______ (insert year) and ______
(insert whether the measure passed or failed).".
(c) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a homestead to be paid to schools that must be included in the public
question under subsection (b) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the school corporation.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the school corporation,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the school corporation:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
SEA 1 — Concur
265
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the school corporation's part
of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question is
approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP SIX, expressed as a percentage.
(d) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a business property to be paid to schools that must be included in the
public question under subsection (b) as follows:
STEP ONE: Determine the average assessed value of business
property located within the school corporation.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the school
corporation:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the school corporation's
part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question is
approved by the voters.
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(e) The county auditor shall certify the estimated average percentage
SEA 1 — Concur
266
of property tax increase on a homestead to be paid to schools
determined under subsection (c), and the estimated average percentage
of property tax increase on a business property to be paid to schools
determined under subsection (d), in a manner prescribed by the
department of local government finance, and provide the certification
to the governing body of the school corporation that proposes to impose
property taxes.
SECTION 218. IC 20-46-1-10.1, AS AMENDED BY P.L.236-2023,
SECTION 154, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 10.1. (a) This section applies only
to a referendum to allow a school corporation to extend a referendum
levy.
(b) The question to be submitted to the voters in the referendum
must read as follows:
"Shall the school corporation continue to impose increased
property taxes paid to the school corporation by homeowners and
businesses for _____ (insert number of years) years immediately
following the holding of the referendum for the purpose of
funding ______ (insert short description of purposes)? The
property tax increase requested in this referendum was originally
approved by the voters in _______ (insert the year in which the
referendum tax levy was approved) and if extended will increase
the average property tax paid to the school corporation per year on
a residence within the school corporation by ______% (insert the
estimated average percentage of property tax increase on a
residence within the school corporation) and if extended will
increase the average property tax paid to the school corporation
per year on a business property within the school corporation by
______% (insert the estimated average percentage of property tax
increase on a business within the school corporation).".
"Shall _______ (insert the name of the school corporation)
continue to increase property taxes paid to the school
corporation for no more than _____ (insert the number of
years immediately following the holding of the referendum)
years for the purpose of funding _____________ (insert brief
description of the purposes) by imposing a property tax rate
that does not exceed ______ (insert property tax rate) and
results in a maximum annual amount that does not exceed
______ (insert maximum amount of annual levy). If this
operating referendum public question is NOT approved by
the voters, for a median residence of __________ (insert the
school corporation's median household assessed value,
SEA 1 — Concur
267
rounded up to the next fifty thousand dollars ($50,000)), the
property's annual tax bill would decrease by ______ (insert
dollar amount, rounded up to the next whole dollar) per year.
If this operating referendum public question is approved by
the voters, it would be a renewal of the most recent operating
referendum public question passed in ______ (insert year the
original operating referendum public question passed) with a
property tax rate of ______ (insert property tax rate of the
original operating referendum public question).".
(c) The number of years for which a referendum tax levy may be
extended if the public question under this section is approved may not
exceed eight (8) years.
(d) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a homestead to be paid to the school corporation that must be included
in the public question under subsection (b) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the school corporation.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the school corporation,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the school corporation:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
SEA 1 — Concur
268
STEP SIX: Determine the amount of the school corporation's part
of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question is
approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP SIX, expressed as a percentage.
(e) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a business property to be paid to the school corporation that must be
included in the public question under subsection (b) as follows:
STEP ONE: Determine the average assessed value of business
property located within the school corporation.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the school
corporation:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the school corporation's
part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question is
approved by the voters.
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(f) The county auditor shall certify the estimated average percentage
of property tax increase on a homestead to be paid to the school
corporation determined under subsection (d), and the estimated average
percentage of property tax increase on a business property to be paid
SEA 1 — Concur
269
to the school corporation determined under subsection (e), in a manner
prescribed by the department of local government finance, and provide
the certification to the governing body of the school corporation that
proposes to impose property taxes.
SECTION 219. IC 20-46-1-10.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 10.3. Each year, the county
auditor, with cooperation from the department of local
government finance, shall determine the tax rate needed to raise
the maximum amount of the annual levy for the year as described
under section 10 or 10.1 of this chapter, as applicable, and shall
determine all other information needed for the ballot language in
those sections.
SECTION 220. IC 20-46-1-14, AS AMENDED BY P.L.227-2023,
SECTION 135, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 14. (a) The referendum shall be
held in the next primary election general election, or municipal election
as provided under IC 3-10-9-3(b), in which all the registered voters
who are residents of the appellant school corporation are entitled to
vote after certification of the question. under IC 3-10-9-3. The
certification of the question must occur not later than noon
(1) seventy-four (74) days before a primary election if the
question is to be placed on the primary or municipal primary
election ballot; or
(2) August 1. if the question is to be placed on the general or
municipal election ballot.
(b) However, if a primary election, general election, or municipal
election will not be held during the first year in which the public
question is eligible to be placed on the ballot under this chapter and if
the appellant school corporation requests the public question to be
placed on the ballot at a special election, the public question shall be
placed on the ballot at a special election to be held on the first Tuesday
after the first Monday in May or November of the year. The
certification must occur not later than noon:
(1) seventy-four (74) days before a special election to be held in
May (if the special election is to be held in May); or
(2) on August 1 (if the special election is to be held in
November).
(c) If the referendum is not conducted at a primary election, general
election, or municipal election, the appellant school corporation in
which the referendum is to be held shall pay all the costs of holding the
referendum.
SEA 1 — Concur
270
SECTION 221. IC 20-46-1-21, AS ADDED BY P.L.189-2023,
SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 21. (a) This section:
(1) except as provided in subdivision (2), applies to revenue
received from a resolution that is approved by the governing body
to impose a referendum levy under section 8 or 8.5 of this chapter
after May 10, 2023, for a school corporation located in:
(1) (A) Lake County;
(2) (B) Marion County;
(3) (C) St. Joseph County; or
(4) (D) Vanderburgh County;
through the full term of the referendum levy; and
(2) does not apply to revenue received from a referendum levy
if:
(A) the governing body of the school corporation approves
the referendum levy in a resolution adopted under section
8 or 8.5 of this chapter; and
(B) the referendum levy is imposed for the first time with
property taxes first due and payable in a calendar year
beginning after December 31, 2027.
(b) Subject to subsections (f) and (h), the county auditor in the
county in which the school corporation is located shall distribute an
amount of revenue as provided under subsection (d) (e) from the
revenue collected from a tax levy imposed under this chapter by a
school corporation that is attributable to the territory of the school
corporation that is located within the boundaries of a county listed
in subsection (a)(1) to each charter school, excluding virtual charter
schools or adult high schools, that a student who resides within the
attendance area of the school corporation attends if the charter school
elects to participate in the referendum under section 8(i) 8(h) of this
chapter.
(c) The department shall provide the county auditor with data and
information necessary for the county auditor to determine:
(1) which charter schools are eligible to receive a distribution
under this section; and
(2) the number of students who:
(A) reside within the attendance area of the school corporation
who are included in the ADM for each charter school,
excluding virtual charter schools or adult high schools,
described in subdivision (1); and
(B) receive not more than fifty percent (50%) virtual
instruction.
SEA 1 — Concur
271
(c) (d) The following schools are not eligible to receive a
distribution under this section:
(1) A virtual charter school.
(2) An adult high school.
(d) (e) For the purposes of the calculations made in this subsection,
each eligible school that has entered into an agreement with a school
corporation to participate as a participating innovation network charter
school under IC 20-25.7-5 is considered to have an ADM that is
separate from the school corporation. The amount that the county
auditor shall distribute to a charter school, excluding virtual charter
schools or adult high schools, under this section is the amount
determined in the last STEP of the following STEPS:
STEP ONE: Determine, for each charter school, excluding virtual
charter schools or adult high schools, that is eligible to receive a
distribution under this section, the number of students who reside
within the attendance area of the school corporation who are
currently included in the ADM of the charter school and receive
not more than fifty percent (50%) virtual instruction.
STEP TWO: Determine the sum of:
(A) the current ADM count for the school corporation; plus
(B) total number of all students who reside within the
attendance area of the school corporation who are currently
included in the ADM of a charter school, and receive not
more than fifty percent (50%) virtual instruction,
excluding virtual charter schools or adult high schools.
STEP THREE: Determine the result of:
(A) the STEP ONE amount; divided by
(B) the STEP TWO amount.
STEP FOUR: Determine the result of:
(A) the sum of:
(i) the STEP THREE amount; plus
(ii) any amount withheld in the previous year under
subsection (i); multiplied by
(B) the amount collected by the county auditor during the most
recent installment period that is attributable to the territory
of the school corporation that is located within the
boundaries of a county listed in subsection (a).
(f) A charter school is not eligible for a distribution under this
section from property tax revenue collected from a particular
referendum levy if the charter school does not have a certified fall
ADM count in the calendar year immediately preceding the
calendar year in which the public question for the referendum
SEA 1 — Concur
272
appears on the ballot.
(g) Not later than August 15, 2025, and not later than August 15
of each calendar year thereafter, the department shall provide to
each school corporation and eligible charter school an estimate of
the amount of property tax levy revenue the school corporation
and charter school are expected to receive under this section in the
subsequent calendar year based on the most recent fall ADM
count.
(h) This subsection applies beginning with distributions of
property tax revenue under this section in 2026 and thereafter. In
order to receive a distribution under this section, the governing
body of a charter school shall, not later than October 15, 2025, and
not later than October 15 of each calendar year thereafter, adopt
a budget for the current school year. Not later than ten (10) days
before its adoption, the budget must be fixed and presented to the
charter board in a public meeting in the county in which the
charter school is incorporated. Not later than November 1, 2025,
and not later than November 1 of each calendar year thereafter,
the governing body of the charter school shall submit:
(1) the budget that is adopted under this subsection;
(2) the dates on which each requirement under this subsection
were met; and
(3) a statement from the governing body of the charter school
attesting that the dates provided in subdivision (2) are true
and accurate and that the budget was properly adopted under
this subsection;
to the charter authorizer for review and to the department of local
government finance to be posted publicly on the computer gateway
under IC 6-1.1-17-3.
(i) If a charter school does not satisfy the requirements of
subsection (h) to receive distributions under this section during a
calendar year, as determined by the department of local
government finance, the charter school may not receive a
distribution of property tax revenue in that calendar year and the
county auditor shall withhold the charter school's distribution
amount. The department of local government finance's
determination of compliance consists only of a confirmation that
the adopted budget and attestation statement are submitted not
later than the applicable date under subsection (h). Any
distribution amount withheld under this subsection shall be:
(1) added to the property tax revenue collections as described
in STEP TWO of subsection (e); and
SEA 1 — Concur
273
(2) distributed among the school corporation and remaining
charter schools according to subsection (e);
in the calendar year that immediately follows the calendar year in
which the distribution amount was withheld.
SECTION 222. IC 20-46-1-22 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 22. (a) This section applies to
revenue received from a referendum levy if both of the following
apply:
(1) The:
(A) governing body of the school corporation approves the
referendum levy in a resolution adopted under section 8 or
8.5 of this chapter; and
(B) resulting referendum levy is imposed for the first time
with property taxes first due and payable in a calendar
year beginning after December 31, 2027.
(2) The number of students who have legal settlement in the
school corporation but attend a charter school, excluding
virtual charter schools and adult high schools, and receive not
more than fifty percent (50%) virtual instruction is at least
the greater of:
(A) one hundred (100) students; or
(B) two percent (2%) of the school corporation's spring
ADM count, excluding students who receive more than
fifty percent (50%) virtual instruction.
(b) As used in this section, "eligible charter school" means a
charter school attended by a student who:
(1) has legal settlement in a school corporation that imposes
a referendum levy under this chapter; and
(2) receives not more than fifty percent (50%) virtual
instruction.
However, the term does not include a virtual charter school or an
adult high school.
(c) The following schools are not eligible to receive, and may not
be considered in a calculation made for purposes of, a distribution
under this section:
(1) A virtual charter school.
(2) An adult high school.
(d) Subject to subsections (j) and (l), the county auditor in the
county in which the school corporation is located shall distribute
to each eligible charter school, in the manner provided under this
section, an amount of revenue received from a tax levy imposed by
SEA 1 — Concur
274
a school corporation under this chapter unless the charter school
elects to not participate in the referendum under section 8(h) of
this chapter.
(e) For the purposes of the calculations made in this section,
each eligible charter school that has entered into an agreement
with a school corporation to participate as a participating
innovation network charter school under IC 20-25.7-5 is
considered to have an ADM that is separate from the school
corporation.
(f) Not later than January 1, 2028, and not later than January
1 of each year thereafter, the department, in consultation with the
department of local government finance, shall determine, for each
school corporation, the corresponding percentages of revenue
received from the tax levy that must be distributed among the
school corporation and each eligible charter school according to
the following formula:
STEP ONE: Determine, for each eligible charter school, the
number of students who:
(A) have legal settlement within the school corporation;
(B) are currently included in the fall ADM count for the
charter school; and
(C) receive not more than fifty percent (50%) virtual
instruction.
STEP TWO: Determine the sum of:
(A) the aggregate of the STEP ONE results for all eligible
charter schools with respect to the school corporation; plus
(B) the fall ADM count for the school corporation for
students receiving not more than fifty percent (50%)
virtual instruction.
STEP THREE: For each eligible charter school, determine the
result of:
(A) the applicable STEP ONE amount; divided by
(B) the STEP TWO amount;
expressed as a percentage.
STEP FOUR: Determine the sum of all the amounts computed
under STEP THREE and subtract the result from one
hundred percent (100%).
(g) The department shall provide to the county auditor,
immediately after calculation under subsection (g):
(1) each eligible charter school and the eligible charter
school's corresponding percentage calculated under STEP
THREE of subsection (f); and
SEA 1 — Concur
275
(2) the percentage calculated under STEP FOUR of
subsection (f) for the school corporation.
(h) Subject to subsections (k) and (m), when the county auditor
distributes property tax revenue, the county auditor shall
distribute to the school corporation and each eligible charter
school the amount determined in the last STEP of the following
STEPS:
STEP ONE: Determine the amount collected in the most
recent installment period by the school corporation from the
school corporation's referendum levy imposed under this
chapter.
STEP TWO: To determine the distribution for the school
corporation and each eligible charter school, determine the
result of:
(A) the sum of:
(i) the STEP ONE result; plus
(ii) any amount withheld in the previous year under
subsection (k); multiplied by
(B) the following percentage:
(i) In the case of an eligible charter school, the charter
school's percentage under STEP THREE of subsection
(f).
(ii) In the case of the school corporation, the school
corporation's percentage under STEP FOUR of
subsection (f).
(i) Not later than August 15, 2027, and not later than August 15
of each calendar year thereafter, the department shall provide to
each school corporation and each eligible charter school an
estimate of the amount of property tax levy revenue the school
corporation and eligible charter school are expected to receive
under this section in the subsequent calendar year based on the
most recent fall ADM count.
(j) This subsection applies beginning with distributions of
property tax revenue under this section in 2028 and thereafter. In
order to receive a distribution under this section, the governing
body of an eligible charter school shall, not later than October 15,
2027, and not later than October 15 of each calendar year
thereafter, adopt a budget for the current school year. Not later
than ten (10) days before its adoption, the budget must be fixed and
presented to the charter board in a public meeting in the county in
which the eligible charter school is incorporated. Not later than
November 1, 2027, and not later than November 1 of each calendar
SEA 1 — Concur
276
year thereafter, the governing body of the charter school shall
submit:
(1) the budget that is adopted under this subsection;
(2) the dates on which each requirement under this subsection
were met; and
(3) a statement from the governing body of the charter school
attesting that the dates provided in subdivision (2) are true
and accurate and that the budget was properly adopted under
this subsection;
to the charter authorizer for review and to the department of local
government finance to be posted publicly on the computer gateway
under IC 6-1.1-17-3.
(k) If an eligible charter school does not satisfy the requirements
of subsection (j) to receive distributions under this section during
a calendar year, as determined by the department of local
government finance, the eligible charter school may not receive a
distribution of property tax revenue in that calendar year and the
county auditor shall withhold the eligible charter school's
distribution amount. The department of local government finance's
determination of compliance consists only of a confirmation that
the adopted budget and attestation statement are submitted not
later than the applicable date under subsection (j). Any
distribution amount withheld under this subsection shall be:
(1) added to the property tax revenue collections as described
in STEP TWO of subsection (h); and
(2) distributed among the school corporation and eligible
charter schools according to subsection (h);
in the calendar year that immediately follows the calendar year in
which the distribution amount was withheld.
(l) A charter school is not eligible for a distribution under this
section from property tax revenue collected from a particular
referendum levy if the charter school does not have a certified fall
ADM count in the calendar year immediately preceding the
calendar year in which the public question for the referendum
appears on the ballot.
SECTION 223. IC 20-46-8-1, AS AMENDED BY P.L.104-2022,
SECTION 129, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 1. (a) A school corporation may
impose an annual property tax levy for its operations fund.
(b) For property taxes first due and payable in 2019, the maximum
permissible property tax levy a school corporation may impose for its
operations fund (IC 20-40-18) is the following:
SEA 1 — Concur
277
STEP ONE: Determine the sum of the following:
(A) The 2018 maximum permissible transportation levy
determined under IC 20-46-4 (repealed January 1, 2019).
(B) The 2018 maximum permissible school bus replacement
levy determined under IC 20-46-5 (repealed January 1, 2019).
(C) The 2018 amount that would be raised from a capital
projects fund tax rate equal to the sum of:
(i) the maximum capital projects fund rate that the school
corporation was authorized to impose for 2018 under
IC 20-46-6 (repealed January 1, 2019), after any adjustment
under IC 6-1.1-18-12 (but excluding any rate imposed for
qualified utility and insurance costs); plus
(ii) the capital projects fund rate imposed for qualified utility
and insurance costs in 2018.
(D) For school corporations described in IC 36-10-13-7, the
2018 levy as provided in section 6 of this chapter (repealed
January 1, 2019) to provide funding for an art association.
(E) For a school corporation in a county having a population
of more than two hundred fifty thousand (250,000) and less
than three hundred thousand (300,000), the 2018 levy as
provided in section 7 of this chapter (repealed January 1,
2019) to provide funding for a historical society.
(F) For a school corporation described in IC 36-10-14-1, the
2018 levy as provided in section 8 of this chapter (repealed
January 1, 2019) to provide funding for a public playground.
STEP TWO: Determine the product of:
(A) The amount determined in STEP ONE, after eliminating
the effects of temporary excessive levy appeals and any other
temporary adjustments made to each of these levies for 2018
(regardless of whether the school corporation imposed the
entire amount of that maximum permissible levy for the
previous year); multiplied by
(B) the maximum levy growth quotient determined under
IC 6-1.1-18.5-2.
STEP THREE: Determine the result of the following:
(A) Determine the sum of:
(i) the amount determined in STEP TWO; plus
(ii) the amount granted due to an appeal to increase the levy
for transportation for 2019.
(B) Make the school bus replacement adjustment for 2019.
(c) After 2019, the maximum permissible property tax levy a school
corporation may impose for its operations fund for a particular year is
SEA 1 — Concur
278
the following:
STEP ONE: Determine the product of:
(A) the maximum permissible property tax levy for the school
corporation's operations fund for the previous year, after
eliminating the effects of temporary excessive levy appeals
and any other temporary adjustments made to the levy for the
previous year (regardless of whether the school corporation
imposed the entire amount of the maximum permissible levy
for the previous year); multiplied by
(B) the maximum levy growth quotient determined under
IC 6-1.1-18.5-2.
STEP TWO: Determine the result of the following:
(A) Determine the sum of:
(i) the amount determined in STEP ONE; plus
(ii) the amount granted due to an appeal to increase the
maximum permissible operations fund levy for the year
under section 3 of this chapter for transportation (before its
expiration).
(B) Make the school bus replacement adjustment permitted by
section 3 of this chapter.
SECTION 224. IC 20-46-8-3, AS AMENDED BY P.L.156-2024,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) This section applies to property tax levies
imposed before January 1, 2026.
(b) Subject to subsection (b), (c), a school corporation may appeal
to the department of local government finance under IC 6-1.1-19 to
increase the school corporation's maximum permissible operations fund
levy. The appeal must be filed with the department of local government
finance before October 20 of the year before the increase is proposed
to take effect. To be granted an increase by the department of local
government finance, the school corporation must establish that the
increase is necessary because of either or both of the following:
(1) A cost increase of at least ten percent (10%) over the
preceding year for at least one (1) of the following:
(A) A fuel expense increase.
(B) A cost increase due to an increase in the number of
students enrolled in the school corporation who need
transportation or an increase in the mileage traveled by the
school corporation's buses compared with the previous year.
(C) A cost increase due to an increase in the number of
students enrolled in special education who need transportation
or an increase in the mileage traveled by the school
SEA 1 — Concur
279
corporation's buses due to students enrolled in special
education as compared with the previous year.
(D) Increased transportation operating costs due to compliance
with a court ordered desegregation plan.
(E) A cost increase due to the closure of a school building
within the school corporation that results in a significant
increase in the distances that students must be transported to
attend another school building.
(F) A cost increase due to restructuring or redesigning
transportation services due to a need for additional, expanded,
consolidated, or modified routes.
(G) A labor cost increase due to a labor shortage affecting the
school corporation's ability to hire qualified transportation
employees.
To obtain the increase, the school corporation must establish that
it will be unable to provide transportation services without an
increase.
(2) A cost increase associated with the school corporation's bus
replacement plan adopted or amended under IC 20-40-18-9 (after
December 31, 2018). To obtain the increase, the school
corporation must show that the school corporation must incur
reasonable and necessary expenses to acquire additional buses
under the plan.
The department of local government finance may grant a levy increase
that is less than the increase requested by the school corporation. If the
department of local government finance determines that a permanent
increase in the maximum permissible levy is necessary, the increase
granted under this section shall be added to the school corporation's
maximum permissible operations fund levy as provided in section 1 of
this chapter.
(b) (c) This subsection applies to a school corporation whose budget
for the upcoming year is subject to review by a fiscal body under
IC 6-1.1-17-20. A school corporation described in this subsection may
not submit an appeal under this section unless the school corporation
receives approval from the fiscal body to submit the appeal.
(d) This section expires December 31, 2026.
SECTION 225. IC 20-46-8-11.2, AS AMENDED BY P.L.36-2024,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11.2. (a) This section
applies only to revenue collected after June 30, 2024, and before
January 1, 2028, from a tax levy imposed under this chapter by a
school corporation located in:
SEA 1 — Concur
280
(1) Lake County;
(2) Marion County;
(3) St. Joseph County; or
(4) Vanderburgh County.
However, this section does not apply to, and distributions are not
required for, a school corporation that is designated as a distressed
political subdivision under IC 6-1.1-20.3.
(b) Beginning In calendar year 2025, and each year thereafter, and
subject to subsections (c), and (h), the county For distributions made
in:
(1) calendar year 2025, and subject to subsection (c); and
(2) calendar years 2026 and 2027, and subject to subsections
(c), (h), and (i);
the county auditor shall distribute to each charter school that is
eligible for a distribution under subsection (d), and as provided
under subsection (f), an amount of revenue received from a tax levy
imposed by a school corporation under this chapter to each charter
school that is eligible for a distribution under subsection (d) and as set
forth in subsection (f). that is attributable to the territory of the
school corporation that is located within the boundaries of a county
listed in subsection (a).
(c) The following schools are not eligible to receive a distribution
under this section:
(1) A virtual charter school.
(2) An adult high school.
(d) Not later than thirty (30) days before the date that the county
auditor distributes money for a school corporation's operations fund
(IC 20-40-18) under IC 6-1.1-27, March 1, 2025, January 1, 2026,
and January 1, 2027, the department, in consultation with the
department of local government finance, shall determine the
corresponding percentages of revenue received from the tax levy that
are attributable to the territory of the school corporation that is
located within the boundaries of a county listed in subsection (a)
and must be distributed among the school corporation and each eligible
charter school according to the following formula:
STEP ONE: Determine each charter school that:
(A) is located in the same county as the school corporation;
and
(B) provides not more than fifty percent (50%) virtual
instruction for its students.
STEP TWO: Determine, for each charter school described in
STEP ONE, the number of students who:
SEA 1 — Concur
281
(A) have legal settlement within the school corporation;
(B) are currently included in the fall ADM for the charter
school; and
(C) receive not more than fifty percent (50%) virtual
instruction.
STEP THREE: Determine the sum of:
(A) the aggregate of the STEP TWO results for all applicable
charter schools; plus
(B) the fall ADM count for the school corporation for students
receiving not more than fifty percent (50%) virtual instruction.
STEP FOUR: For each charter school described in STEP ONE,
determine the result of:
(A) the applicable STEP TWO amount; divided by
(B) the STEP THREE amount;
expressed as a percentage.
STEP FIVE: Determine the sum of all the amounts computed
under STEP FOUR and subtract the result from one hundred
percent (100%).
(e) The department shall provide to the county auditor, immediately
after calculation under subsection (d): and in the form prescribed by the
county auditor:
(1) each charter school determined under STEP ONE of
subsection (d) and the charter school's corresponding percentage
calculated under STEP FOUR of subsection (d); and
(2) the percentage calculated under STEP FIVE of subsection (d)
for the school corporation.
(f) Subject to subsection (i), the county auditor shall distribute to
the school corporation and each applicable charter school the amount
determined, for each settlement period described in IC 6-1.1-27-1,
in the last STEP of the following STEPS:
STEP ONE: For each school corporation, determine a base
property tax levy amount calculated as:
(A) the sum of the school corporation's operations fund
property tax levies that are attributable to the territory of
the school corporation that is located within the
boundaries of a county listed in subsection (a) and collected
under this chapter for the applicable settlement period as
described in IC 6-1.1-27-1 in calendar years 2021, 2022, and
2023; divided by
(B) three (3).
STEP TWO: For each school corporation, determine an
incremental property tax levy amount calculated as:
SEA 1 — Concur
282
(A) the school corporation's operations fund property tax levy
collections that are attributable to the territory of the
school corporation that is located within the boundaries of
a county listed in subsection (a) for the applicable
settlement period as described in IC 6-1.1-27-1 in the
current calendar year; minus
(B) the school corporation's base property tax levy collections
determined for the applicable settlement period as
described in IC 6-1.1-27-1 under STEP ONE.
STEP THREE: For the school corporation and each applicable
charter school, determine the result of:
(A) the sum of:
(i) the incremental amount determined under STEP TWO;
plus
(ii) any distribution amount withheld under subsection
(i); multiplied by
(B) the following percentage:
(i) In the case of an applicable charter school, the charter
school's percentage under STEP FOUR of subsection (d).
(ii) In the case of the school corporation, the school
corporation's percentage under STEP FIVE of subsection
(d).
(g) Before October 1, 2024, and before October 1 of each year
thereafter, August 15, 2025, and August 15, 2026, the department
shall provide to each school corporation and each eligible charter
school an estimate of the amount of property tax levy revenue the
school corporation and charter school are expected to receive under
this section based on the most recent fall ADM count.
(h) This subsection applies to distributions of property tax
revenue under this section in 2026 and 2027. In order to receive a
distribution under this section in 2026 and 2027, the governing body
of an eligible charter school shall, before November 1, 2024, and
before November 1 of each year thereafter, October 15, 2025, and
October 15, 2026, adopt a budget for the current school year. Not
later than ten (10) days before its adoption, the budget must be fixed
and presented to the charter board in a public meeting in the county in
which the charter school is incorporated. A budget that is adopted
under this subsection must be submitted to the charter authorizer for
review and to the department of local government finance to be posted
publicly on the computer gateway under IC 6-1.1-17-3 not later than:
(1) to receive distributions in 2026, November 1, 2025; and
(2) to receive distributions in 2027, November 1, 2026.
SEA 1 — Concur
283
In addition to the adopted budget, the governing body of the
charter school shall also submit to the charter authorizer, and to
the department of local government finance to be posted publicly
on the computer gateway under IC 6-1.1-17-3, the dates on which
each requirement under this subsection was met and a statement
from the governing body of the charter school attesting that those
dates are true and accurate and that the budget was properly
adopted under this subsection.
(i) Before April 1, 2025, and before April 1 of each year thereafter,
the county auditor shall provide each school corporation and each
eligible charter school the actual amount of property tax levy revenue
the school corporation and charter school are expected to receive under
this section.
(i) This subsection applies to distributions of property tax
revenue under this section in 2026 and 2027. If an eligible charter
school does not satisfy the requirements of subsection (h) to receive
distributions under this section during a calendar year, as
determined by the department of local government finance, the
charter school may not receive a distribution of property tax
revenue in that calendar year and the county auditor shall
withhold the charter school's distribution amount. The department
of local government finance's determination of compliance consists
only of a confirmation that the adopted budget and attestation
statement are submitted not later than the applicable date under
subsection (h). Any distribution amount that must be withheld
from distribution to any particular charter school under this
subsection in:
(1) calendar year 2026 shall be added to the incremental
amount as described in STEP TWO of subsection (f) and
distributed among the school corporation and remaining
charter schools according to subsection (f) in calendar year
2027; and
(2) calendar year 2027 shall be added to the incremental
amount as described in STEP TWO of subsection (f) and
distributed among the school corporation and remaining
charter schools according to subsection (f) in calendar year
2027.
SECTION 226. IC 20-46-8-12 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 12. (a) This section applies to
revenue collected after December 31, 2027, from a tax levy imposed
under this chapter only if the number of students who have legal
SEA 1 — Concur
284
settlement in a school corporation but attend a charter school,
excluding virtual charter schools and adult high schools, and
receive not more than fifty percent (50%) virtual instruction, is at
least the greater of:
(1) one hundred (100) students; or
(2) two percent (2%) of the school corporation's spring ADM
count, excluding students who receive more than fifty percent
(50%) virtual instruction.
(b) As used in this section, "eligible charter school" means a
charter school attended by a student who:
(1) has legal settlement in a school corporation that imposes
a tax levy under this chapter; and
(2) receives not more than fifty percent (50%) virtual
instruction.
However, the term does not include a virtual charter school or an
adult high school.
(c) The following schools are not eligible to receive, and may not
be considered in a calculation made for purposes of, a distribution
under this section:
(1) A virtual charter school.
(2) An adult high school.
(d) Beginning in calendar year 2028, and in each calendar year
thereafter, and subject to subsection (j), the county auditor shall
distribute to each eligible charter school in the manner provided
under this section an amount of revenue received from a tax levy
imposed by a school corporation under this chapter.
(e) For the purposes of the calculations made in this section,
each eligible charter school that has entered into an agreement
with a school corporation to participate as a participating
innovation network charter school under IC 20-25.7-5 is
considered to have an ADM that is separate from the school
corporation.
(f) Not later than January 1, 2028, and not later than January
1 of each year thereafter, the department, in consultation with the
department of local government finance, shall determine, for each
school corporation, the corresponding percentages of revenue
received from the tax levy that must be distributed among the
school corporation and each eligible charter school according to
the following formula:
STEP ONE: Determine, for each eligible charter school, the
number of students who:
(A) have legal settlement within the school corporation;
SEA 1 — Concur
285
(B) are currently included in the fall ADM count for the
charter school; and
(C) receive not more than fifty percent (50%) virtual
instruction.
STEP TWO: Determine the sum of:
(A) the aggregate of the STEP ONE results for all eligible
charter schools with respect to the school corporation; plus
(B) the fall ADM count for the school corporation for
students receiving not more than fifty percent (50%)
virtual instruction.
STEP THREE: For each eligible charter school, determine the
result of:
(A) the applicable STEP ONE amount; divided by
(B) the STEP TWO amount;
expressed as a percentage.
STEP FOUR: Determine the sum of all the amounts computed
under STEP THREE and subtract the result from one
hundred percent (100%).
(g) The department shall provide to the county auditor,
immediately after calculation under subsection (f):
(1) each eligible charter school and the eligible charter
school's corresponding percentage calculated under STEP
THREE of subsection (f); and
(2) the percentage calculated under STEP FOUR of
subsection (f) for the school corporation.
(h) Subject to subsections (j) and (l), the county auditor shall
distribute to the school corporation and each eligible charter
school the amount determined in the last STEP of the following
STEPS:
STEP ONE: Determine the amount collected in the most
recent installment period by the school corporation from the
school corporation's operations fund levy imposed under this
chapter.
STEP TWO: To determine the distribution for the school
corporation and each eligible charter school, determine the
result of:
(A) the sum of:
(i) the STEP ONE result; plus
(ii) any amount withheld in the previous year under
subsection (k); multiplied by
(B) the following percentage:
(i) In the case of an eligible charter school, the charter
SEA 1 — Concur
286
school's percentage under STEP THREE of subsection
(f).
(ii) In the case of the school corporation, the school
corporation's percentage under STEP FOUR of
subsection (f).
(i) Not later than August 15, 2027, and not later than August 15
of each calendar year thereafter, the department shall provide to
each school corporation and each eligible charter school an
estimate of the amount of property tax levy revenue the school
corporation and eligible charter school are expected to receive
under this section in the subsequent calendar year based on the
most recent fall ADM count.
(j) Beginning with distributions of property tax revenue under
this section in 2028 and thereafter, in order to receive a
distribution under this section, the governing body of an eligible
charter school shall, not later than October 15, 2027, and not later
than October 15 of each calendar year thereafter, adopt a budget
for the current school year. Not later than ten (10) days before its
adoption, the budget must be fixed and presented to the charter
board in a public meeting in the county in which the eligible
charter school is incorporated. Not later than November 1, 2027,
and not later than November 1 of each calendar year thereafter,
the governing body of the charter school shall submit:
(1) the budget that is adopted under this subsection;
(2) the dates on which each requirement under this subsection
was met; and
(3) a statement from the governing body of the charter school
attesting that the dates provided in subdivision (2) are true
and accurate and that the budget was properly adopted under
this subsection;
to the charter authorizer for review and to the department of local
government finance to be posted publicly on the computer gateway
under IC 6-1.1-17-3.
(k) If an eligible charter school does not satisfy the requirements
of subsection (j) to receive distributions under this section during
a calendar year, as determined by the department of local
government finance, the eligible charter school may not receive a
distribution of property tax revenue in that calendar year and the
county auditor shall withhold the eligible charter school's
distribution amount. The department of local government finance's
determination of compliance consists only of a confirmation that
the adopted budget and attestation statement are submitted not
SEA 1 — Concur
287
later than the applicable date under subsection (j). Any
distribution amount withheld under this subsection shall be:
(1) added to the property tax revenue collections as described
in STEP TWO of subsection (h); and
(2) distributed among the school corporation and remaining
eligible charter schools according to subsection (h);
in the calendar year that immediately follows the calendar year in
which the distribution amount was withheld.
(l) This subsection applies only to distributions under subsection
(h) in calendar years 2028, 2029, and 2030 to an eligible charter
school. Instead of the amount determined under subsection (h) for
a distribution to a particular eligible charter school from the
revenue collected from the tax levy imposed under this chapter by
a particular school corporation, the county auditor shall make
distributions according to the following:
(1) For a distribution in 2028, the county auditor shall
distribute an amount for a particular eligible charter school
equal to:
(A) the applicable result of STEP TWO of subsection (h)
for the eligible charter school; multiplied by
(B) twenty-five hundredths (0.25).
(2) For a distribution in 2029, the county auditor shall
distribute an amount for a particular eligible charter school
equal to:
(A) the applicable result of STEP TWO of subsection (h)
for the eligible charter school; multiplied by
(B) five-tenths (0.5).
(3) For a distribution in 2030, the county auditor shall
distribute an amount for a particular eligible charter school
equal to:
(A) the applicable result of STEP TWO of subsection (h)
for the eligible charter school; multiplied by
(B) seventy-five hundredths (0.75).
Any amount of property tax revenue collected from the tax levy
imposed under this chapter by a particular school corporation that
remains after making the distributions according to this subsection
shall be distributed to the school corporation and are in addition
to the amount distributed to the school corporation under
subsection (h) for the applicable year. This subsection expires July
1, 2032.
SECTION 227. IC 20-46-9-6, AS AMENDED BY P.L.162-2024,
SECTION 26, AND AS AMENDED BY P.L.156-2024, SECTION 30,
SEA 1 — Concur
288
AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
Sec. 6. (a) Subject to this chapter, the governing body of a school
corporation may adopt a resolution to place a referendum under this
chapter on the ballot if the governing body of the school corporation
determines that a referendum levy should be imposed for measures to
improve school safety as described in IC 20-40-20-6(a) or
IC 20-40-20-6(b).
(b) Except as provided in section 22 of this chapter, a school
corporation may, with the approval of the majority of members of the
governing body, distribute a portion of the proceeds of a tax levy
collected under this chapter that is deposited in the fund to a charter
school, excluding a virtual charter school, that is located within the
attendance area of the school corporation, to be used by the charter
school for the purposes described in IC 20-40-20-6(a).
(c) This subsection applies to a resolution described in subsection
(a) that is adopted after May 10, 2023, in a county described in section
22(a) of this chapter. A resolution shall specify that a portion of the
proceeds of the proposed levy will be distributed to applicable charter
schools in the manner described under section 22 of this chapter if the
charter school voluntarily elects to participate in the referendum in the
manner described in subsection (i).
(d) This subsection applies to a resolution described in subsection
(a) that is adopted after May 10, 2023, in a county described in section
22(a) of this chapter. The resolution described in subsection (a) shall
include a projection of the amount that the school corporation expects
to be distributed to a particular charter school, excluding virtual charter
schools or adult high schools, under section 22 of this chapter that
elects to participate in the referendum under subsection (i). At least
sixty (60) days before the resolution described in subsection (a) is
voted on by the governing body, the school corporation shall contact
the department to determine the number of students in kindergarten
through grade 12 who have legal settlement in the school corporation
but attend a charter school, excluding virtual charter schools or adult
high schools, and who receive not more than fifty percent (50%) virtual
instruction. The department shall provide the school corporation with
the number of students with legal settlement in the school corporation
who attend a charter school, which shall be disaggregated for each
particular charter school, excluding a virtual charter school or adult
high school. The projection may include an expected increase in
charter schools during the term the levy is imposed. The department of
SEA 1 — Concur
289
local government finance shall prescribe the manner in which the
projection shall be calculated. The governing body shall take into
consideration the projection when adopting the revenue spending plan
under subsection (g).
(e) The governing body of the school corporation shall certify a
copy of the resolution to the following:
(1) The department of local government finance, including:
(A) the language for the question required by section 9 of this
chapter, or in the case of a resolution to extend a referendum
levy certified to the department of local government finance,
section 10 of this chapter; and
(B) a copy of the revenue spending plan adopted under
subsection (g).
The language of the public question must include the estimated
average percentage increases certified by the county auditor under
section 9(d) or 10(f) of this chapter, as applicable. The governing
body of the school corporation shall also provide the county
auditor's certification described in section 9(d) or 10(f) of this
chapter, as applicable. The department of local government
finance shall post the values certified by the county auditor to the
department's website. The department shall review the language
for compliance with section 9 or 10 of this chapter, whichever is
applicable, and either approve or reject the language. The
department shall send its decision to the governing body of the
school corporation not more than ten (10) days after both the
certification of the county auditor described in section 9(d) or
10(f) of this chapter, as applicable, and the resolution is are
submitted to the department. If the language is approved, the
governing body of the school corporation shall certify a copy of
the resolution, including the language for the question and the
department's approval.
(2) The county fiscal body of each county in which the school
corporation is located (for informational purposes only).
(3) The circuit court clerk of each county in which the school
corporation is located.
(f) Except as provided in section 22 of this chapter, the resolution
described in subsection (a) must indicate whether proceeds in the
school corporation's fund collected from a tax levy under this chapter
will be used to provide a distribution to a charter school or charter
schools, excluding a virtual charter school, under IC 20-40-20-6(b) as
well as the amount that will be distributed to the particular charter
school or charter schools. A school corporation may request from the
SEA 1 — Concur
290
designated charter school or charter schools any financial
documentation necessary to demonstrate the financial need of the
charter school or charter schools.
(g) As part of the resolution described in subsection (a), the
governing body of the school corporation shall adopt a revenue
spending plan for the proposed referendum tax levy that includes:
(1) an estimate of the amount of annual revenue expected to be
collected if a levy is imposed under this chapter;
(2) the specific purposes described in IC 20-40-20-6 for which the
revenue collected from a levy imposed under this chapter will be
used;
(3) an estimate of the annual dollar amounts that will be expended
for each purpose described in subdivision (2); and
(4) for a resolution for a referendum that is adopted after May 10,
2023, for a county described in section 22(a) of this chapter, the
projected revenue that shall be distributed to charter schools as
provided in subsection (d). The revenue spending plan shall also
take into consideration deviations in the proposed revenue
spending plan if the actual charter school distributions exceed or
are lower than the projected charter school distributions described
in subsection (d). The resolution shall include for each charter
school that elects to participate under subsection (i) information
described in subdivisions (1) through (3).
(h) A school corporation shall specify in its proposed budget the
school corporation's revenue spending plan adopted under subsection
(g) and annually present the revenue spending plan at its public hearing
on the proposed budget under IC 6-1.1-17-3.
(i) This subsection applies to a resolution described in subsection
(a) for a county described in section 22(a) of this chapter that is
adopted after May 10, 2023. At least forty-five (45) days before the
resolution described in subsection (a) is voted on by the governing
body, the school corporation shall contact each charter school,
excluding virtual charter schools or adult high schools, disclosed by the
department to the school corporation under subsection (f) to determine
whether the charter school will participate in the referendum. The
notice must include the total amount of the school corporation's
expected need, the corresponding estimate of that amount divided by
the number of students enrolled in the school corporation, and the date
on which the governing body of the school corporation will vote on the
resolution. The charter school must respond in writing to the school
corporation, which may be by electronic mail addressed to the
superintendent of the school corporation, at least fifteen (15) days
SEA 1 — Concur
291
prior to the date that the resolution described in subsection (a) is to be
voted on by the governing body. If the charter school elects to not
participate in the referendum, the school corporation may exclude
distributions to the charter school under section 22 of this chapter and
from the projection described in subsection (d). If the charter school
elects to participate in the referendum, the charter school may receive
distributions under section 22 of this chapter and must be included in
the projection described in subsection (d). In addition, a charter school
that elects to participate in the referendum under this subsection shall
contribute a proportionate share of the cost to conduct the referendum
based on the total combined ADM of the school corporation and any
participating charter schools.
(j) This subsection applies to a resolution described in subsection
(a) for a county described in section 22(a) of this chapter that is
adopted after May 10, 2023. At least thirty (30) days before the
resolution described in subsection (a) referendum submitted to the
voters under this chapter is voted on by the governing body, public in
a primary or general election, the school corporation that is pursuing
the resolution referendum and any charter school that has elected to
participate under subsection (i) shall post a referendum disclosure
statement on each school's respective website that contains the
following information:
(1) The salaries of all employees employed by position within the
school corporation or charter school listed from highest salary to
lowest salary and a link to Gateway Indiana for access to
individual salaries.
(2) An acknowledgment that the school corporation or charter
school is not committing any crime described in IC 35-44.1-1.
(3) A link to the school corporation's or charter school's most
recent state board of accounts audit on the state board of accounts'
website.
(4) The current enrollment of the school corporation or charter
school disaggregated by student group and race.
(5) The school corporation's or charter school's high school
graduation rate.
(6) The school corporation's or charter school's annual retention
rate for teachers for the previous five (5) years.
SECTION 228. IC 20-46-9-9, AS AMENDED BY P.L.189-2023,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2026]: Sec. 9. (a) The question to be submitted to the
voters in the referendum must read as follows:
"Shall the school corporation increase property taxes paid to
SEA 1 — Concur
292
schools by homeowners and businesses for _____ (insert number
of years) years immediately following the holding of the
referendum for the purpose of funding ______ (insert short
description of purposes)? If this public question is approved by
the voters, the average property tax paid to schools per year on a
residence would increase by ______% (insert the estimated
average percentage of property tax increase paid to schools on a
residence within the school corporation as determined under
subsection (b)) and the average property tax paid to schools per
year on a business property would increase by ______% (insert
the estimated average percentage of property tax increase paid to
schools on a business property within the school corporation as
determined under subsection (c)). The most recent property tax
referendum proposed by the school corporation was held in
______ (insert year) and ________ (insert whether the measure
passed or failed).".
"Shall ________ (insert the name of the school corporation)
increase property taxes paid to the school corporation for no
more than ______ (insert the number of years immediately
following the holding of the referendum) years for the
purpose of funding _______ (insert a brief description of the
purposes) by imposing a property tax rate that does not
exceed ______ (insert property tax rate) and results in a
maximum annual amount that does not exceed ______ (insert
maximum amount of annual levy). If this school safety
referendum public question is approved by the voters, for a
median residence of ______ (insert the school corporation's
median household assessed value, rounded up to the next fifty
thousand dollars ($50,000)), the property's annual property
tax bill would increase by ______ (insert dollar amount,
rounded up to the next whole dollar) per year. (If, in the
previous five (5) years, the school corporation has conducted
a school safety referendum public question, the following shall
also be included in the ballot language.) The most recent
school safety referendum public question proposed by the
school corporation was held in ______ (insert year) and
______ (insert whether the measure passed or failed).".
(b) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a homestead to be paid to the school corporation that must be included
SEA 1 — Concur
293
in the public question under subsection (a) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the school corporation.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the school corporation,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the school corporation:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the school corporation's part
of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question is
approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP SIX, expressed as a percentage.
(c) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a business property to be paid to the school corporation that must be
included in the public question under subsection (a) as follows:
STEP ONE: Determine the average assessed value of business
property located within the school corporation.
STEP TWO: Divide the result of STEP ONE by one hundred
SEA 1 — Concur
294
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the school
corporation:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the school corporation's
part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question is
approved by the voters.
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(d) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to
schools determined under subsection (b), and the estimated average
percentage of property tax increase on a business property to be paid
to schools determined under subsection (c), in a manner prescribed by
the department of local government finance, and provide the
certification to the governing body of the school corporation that
proposes to impose property taxes.
SECTION 229. IC 20-46-9-10, AS AMENDED BY P.L.236-2023,
SECTION 156, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2026]: Sec. 10. (a) This section applies
only to a referendum to allow a school corporation to extend a
referendum tax levy.
(b) The question to be submitted to the voters in the referendum
must read as follows:
"Shall the school corporation continue to impose increased
property taxes paid to the school corporation by homeowners and
businesses for _____ (insert number of years) years immediately
following the holding of the referendum for the purpose of
funding ______ (insert short description of purposes)? The
property tax increase requested in this referendum was originally
SEA 1 — Concur
295
approved by the voters in _______ (insert the year in which the
referendum tax levy was approved) and if extended will increase
the average property tax paid to the school corporation per year on
a residence within the school corporation by ______% (insert the
estimated average percentage of property tax increase on a
residence within the school corporation) and if extended will
increase the average property tax paid to the school corporation
per year on a business property within the school corporation by
______% (insert the estimated average percentage of property tax
increase on a business within the school corporation).".
"Shall _______ (insert the name of the school corporation)
continue to increase property taxes paid to the school
corporation for no more than _____ (insert the number of
years immediately following the holding of the referendum)
years for the purpose of funding _____________ (insert brief
description of the purposes) by imposing a property tax rate
that does not exceed ______ (insert property tax rate) and
results in a maximum annual amount that does not exceed
______ (insert maximum amount of annual levy). If this
school safety referendum public question is NOT approved by
the voters, for a median residence of __________ (insert the
school corporation's median household assessed value,
rounded up to the next fifty thousand dollars ($50,000)), the
property's annual tax bill would decrease by ______ (insert
dollar amount, rounded up to the next whole dollar) per year.
If this school safety referendum public question is approved
by the voters, it would be a renewal of the most recent school
safety referendum public question passed in ______ (insert
year the original operating referendum public question
passed) with a property tax rate of ______ (insert property
tax rate of the original school safety referendum public
question).".
(c) The number of years for which a referendum tax levy may be
extended if the public question under this section is approved may not
exceed the number of years for which the expiring referendum tax levy
was imposed.
(d) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a homestead to be paid to the school corporation that must be included
in the public question under subsection (b) as follows:
SEA 1 — Concur
296
STEP ONE: Determine the average assessed value of a homestead
located within the school corporation.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the school corporation,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the school corporation:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the school corporation's part
of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question is
approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP SIX, expressed as a percentage.
(e) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a business property to be paid to the school corporation that must be
included in the public question under subsection (b) as follows:
STEP ONE: Determine the average assessed value of business
property located within the school corporation.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
SEA 1 — Concur
297
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the school
corporation:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the school corporation's
part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question is
approved by the voters.
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(f) The county auditor shall certify the estimated average percentage
of property tax increase on a homestead to be paid to the school
corporation determined under subsection (d), and the estimated average
percentage of property tax increase on a business property to be paid
to the school corporation determined under subsection (e), in a manner
prescribed by the department of local government finance, and provide
the certification to the governing body of the school corporation that
proposes to impose property taxes.
SECTION 230. IC 20-46-9-10.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 10.5. Each year, the county
auditor, with cooperation from the department of local
government finance, shall determine the tax rate needed to raise
the maximum amount of the annual levy for the year as described
under section 9 or 10 of this chapter, as applicable, and shall
determine all other information needed for the ballot language in
those sections.
SECTION 231. IC 20-46-9-14, AS AMENDED BY P.L.227-2023,
SECTION 136, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2025]: Sec. 14. (a) The referendum shall be
held in the next primary election general election, or municipal election
as provided under IC 3-10-9-3(b), in which all the registered voters
SEA 1 — Concur
298
who are residents of the school corporation are entitled to vote after
certification of the question. under IC 3-10-9-3. The certification of the
question must occur not later than noon
(1) seventy-four (74) days before a primary election if the
question is to be placed on the primary or municipal primary
election ballot; or
(2) August 1. if the question is to be placed on the general or
municipal election ballot.
(b) However, if a primary election, general election, or municipal
election will not be held during the first year in which the public
question is eligible to be placed on the ballot under this chapter and if
the school corporation requests the public question to be placed on the
ballot at a special election, the public question shall be placed on the
ballot at a special election to be held on the first Tuesday after the first
Monday in May or November of the year. The certification must occur
not later than noon:
(1) seventy-four (74) days before a special election to be held in
May (if the special election is to be held in May); or
(2) August 1 (if the special election is to be held in November).
(c) If the referendum is not conducted at a primary election, general
election, or municipal election, the school corporation in which the
referendum is to be held shall pay all the costs of holding the
referendum.
SECTION 232. IC 20-46-9-22, AS ADDED BY P.L.189-2023,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 22. (a) This section:
(1) applies to revenue received from a resolution that is approved
by the governing body to impose a referendum levy under section
6 or 7 of this chapter after May 10, 2023, for a school corporation
located in:
(1) (A) Lake County;
(2) (B) Marion County;
(3) (C) St. Joseph County; or
(4) (D) Vanderburgh County;
through the full term of the referendum levy; and
(2) does not apply to revenue received from a referendum levy
if:
(A) the governing body of the school corporation approves
the referendum levy in a resolution adopted under section
6 or 7 of this chapter; and
(B) the referendum levy is imposed for the first time with
property taxes first due and payable in a calendar year
SEA 1 — Concur
299
beginning after December 31, 2027.
(b) The county auditor shall distribute an amount under subsection
(d) to each charter school, excluding virtual charter schools or adult
high schools, that a student who resides within the attendance area of
the school corporation attends if the charter school, excluding virtual
charter schools or adult high schools, elects to participate in the
referendum under section 6(i) of this chapter. The department shall
provide the county auditor with data and information necessary for the
county auditor to determine:
(1) which charter schools, excluding virtual charter schools or
adult high schools, are eligible to receive a distribution under this
section; and
(2) the number of all students who reside within the attendance
area of the school corporation who are included in the ADM for
each charter school, excluding virtual charter schools or adult
high schools, described in subdivision (1).
(c) The following schools are not eligible to receive a distribution
under this section:
(1) A virtual charter school.
(2) An adult high school.
(d) For the purposes of the calculations made in this subsection,
each eligible school that has entered into an agreement with a school
corporation to participate as a participating innovation network charter
school under IC 20-25.7-5 is considered to have an ADM that is
separate from the school corporation. The amount that the county
auditor shall distribute to a charter school, excluding virtual charter
schools or adult high schools, under this section is the amount
determined in the last STEP of the following STEPS:
STEP ONE: Determine, for each charter school, excluding virtual
charter schools or adult high schools, that is eligible to receive a
distribution under this section, the number of students who reside
within the attendance area of the school corporation who are
currently included in the ADM of the charter school.
STEP TWO: Determine the sum of:
(A) the current ADM count for the school corporation; plus
(B) the total number of students who reside within the
attendance area of the school corporation who are currently
included in the ADM of a charter school, excluding virtual
charter schools or adult high schools.
STEP THREE: Determine the result of:
(A) the STEP ONE amount; divided by
(B) the STEP TWO amount.
SEA 1 — Concur
300
STEP FOUR: Determine the result of:
(A) the STEP THREE amount; multiplied by
(B) the amount collected by the county auditor during the most
recent installment period.
(e) If a charter school receives a distribution under this section, the
distribution may be used only for the purposes described in
IC 20-40-20-6(a).
SECTION 233. IC 36-1-8-5.1, AS AMENDED BY P.L.38-2021,
SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 5.1. (a) A political subdivision may establish a
rainy day fund by the adoption of:
(1) an ordinance, in the case of a county, city, or town; or
(2) a resolution, in the case of any other political subdivision.
(b) An ordinance or a resolution adopted under this section must
specify the following:
(1) The purposes of the rainy day fund.
(2) The sources of funding for the rainy day fund, which may
include the following:
(A) Unused and unencumbered funds under
(i) section 5 of this chapter. or
(ii) IC 6-3.6-9-15.
(B) Any other funding source:
(i) specified in the ordinance or resolution adopted under
this section; and
(ii) not otherwise prohibited by law.
(c) The rainy day fund is subject to the same appropriation process
as other funds that receive tax money.
(d) In any fiscal year, a political subdivision may, at any time, do the
following:
(1) Transfer any unused and unencumbered funds specified in
subsection (b)(2)(A) from any fiscal year to the rainy day fund.
(2) Transfer any other unobligated cash balances from any fiscal
year that are not otherwise identified in subsection (b)(2)(A) or
section 5 of this chapter to the rainy day fund as long as the
transfer satisfies the following requirements:
(A) The amount of the transfer is authorized by and identified
in an ordinance or resolution.
(B) The amount of the transfer is not more than:
(i) before January 1, 2021, ten percent (10%);
(ii) after December 31, 2020, and before January 1, 2025,
fifteen percent (15%); and
(iii) after December 31, 2024, ten percent (10%);
SEA 1 — Concur
301
of the political subdivision's total annual budget adopted under
IC 6-1.1-17 for that fiscal year.
(C) The transfer is not made from a debt service fund.
(e) A political subdivision may use only the funding sources
specified in subsection (b)(2)(A) or in the ordinance or resolution
establishing the rainy day fund. The political subdivision may adopt a
subsequent ordinance or resolution authorizing the use of another
funding source.
(f) The department of local government finance may not reduce the
actual or maximum permissible levy of a political subdivision as a
result of a balance in the rainy day fund of the political subdivision.
(g) A county, city, or town may at any time, by ordinance or
resolution, transfer to:
(1) its general fund; or
(2) any other appropriated funds of the county, city, or town;
money that has been deposited in the rainy day fund of the county, city,
or town.
(h) A school corporation may at any time, by resolution, transfer to
its education fund or operations fund money that has been deposited in
its rainy day fund.
SECTION 234. IC 36-7-14-39, AS AMENDED BY P.L.136-2024,
SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 39. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution and
allocation of property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
SEA 1 — Concur
302
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
SEA 1 — Concur
303
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
may include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or amendment that establishes an allocation
provision must include a specific finding of fact, supported by
evidence, that the adoption of the allocation provision will result in
new property taxes in the area that would not have been generated but
for the adoption of the allocation provision. For an allocation area
established before July 1, 1995, the expiration date of any allocation
provisions for the allocation area is June 30, 2025, or the last date of
any obligations that are outstanding on July 1, 2015, whichever is later.
A declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision. For an allocation area established before July 1,
2008, the expiration date may not be more than thirty (30) years after
the date on which the allocation provision is established. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or lease
rentals on leases payable from tax increment revenues. However, with
respect to bonds or other obligations that were issued before July 1,
2008, if any of the bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. Notwithstanding any other law, in the case of an
allocation area that is established after June 30, 2019, and that is
located in a redevelopment project area described in section
25.1(c)(3)(C) of this chapter, an economic development area described
in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, the expiration
SEA 1 — Concur
304
date of the allocation provision may not be more than thirty-five (35)
years after the date on which the allocation provision is established.
The allocation provision may apply to all or part of the redevelopment
project area. The allocation provision must require that any property
taxes subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes on taxable property in the
allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) This subdivision applies to a fire protection territory
established after December 31, 2022. If a unit becomes a
participating unit of a fire protection territory that is established
after a declaratory resolution is adopted under section 15 of this
chapter, the excess of the proceeds of the property taxes
attributable to an increase in the property tax rate for the
participating unit of a fire protection territory:
(A) except as otherwise provided by this subdivision, shall be
determined as follows:
STEP ONE: Divide the unit's tax rate for fire protection for
the year before the establishment of the fire protection
territory by the participating unit's tax rate as part of the fire
protection territory.
STEP TWO: Subtract the STEP ONE amount from one (1).
STEP THREE: Multiply the STEP TWO amount by the
allocated property tax attributable to the participating unit of
the fire protection territory; and
(B) to the extent not otherwise included in subdivisions (1)
and (3), the amount determined under STEP THREE of clause
(A) shall be allocated to and distributed in the form of an
allocated property tax revenue pass back to the participating
unit of the fire protection territory for the assessment date with
respect to which the allocation is made.
However, if the redevelopment commission determines that it is
unable to meet its debt service obligations with regards to the
allocation area without all or part of the allocated property tax
revenue pass back to the participating unit of a fire protection area
SEA 1 — Concur
305
under this subdivision, then the allocated property tax revenue
pass back under this subdivision shall be reduced by the amount
necessary for the redevelopment commission to meet its debt
service obligations of the allocation area. The calculation under
this subdivision must be made by the redevelopment commission
in collaboration with the county auditor and the applicable fire
protection territory. Any calculation determined according to
clause (A) must be submitted to the department of local
government finance in the manner prescribed by the department
of local government finance. The department of local government
finance shall verify the accuracy of each calculation.
(3) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivisions (1) and (2) shall be allocated to and, when
collected, paid into the funds of the taxing unit for which the
referendum or local public question was conducted.
(4) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1), (2), and
(3) shall be allocated to the redevelopment district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the redevelopment district only to do one (1) or
more of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
SEA 1 — Concur
306
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January 1,
2009, pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission
SEA 1 — Concur
307
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(M) Expend money and provide financial assistance as
authorized in section 12.2(a)(27) of this chapter.
(N) Expend revenues that are allocated for police and fire
services on both capital expenditures and operating expenses
as authorized in section 12.2(a)(28) of this chapter.
The allocation fund may not be used for operating expenses of the
SEA 1 — Concur
308
commission.
(5) Except as provided in subsection (g), before June 15 of each
year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to produce the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (4), plus
the amount necessary for other purposes described in
subdivision (4).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The county auditor,
upon receiving the notice, shall forward this notice (in an
electronic format) to the department of local government
finance not later than June 15 of each year. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
of assessed value to the respective taxing units under this
subdivision if to do so would endanger the interests of the
holders of bonds described in subdivision (4) or lessors under
section 25.3 of this chapter.
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (4); plus
(ii) the amount necessary for other purposes described in
SEA 1 — Concur
309
subdivision (4);
the commission shall submit to the legislative body of the unit
its determination of the excess assessed value that the
commission proposes to allocate to the respective taxing units
in the manner prescribed in subdivision (1). The legislative
body of the unit may approve the commission's determination
or modify the amount of the excess assessed value that will be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
(6) Notwithstanding subdivision (5), in the case of an allocation
area that is established after June 30, 2019, and that is located in
a redevelopment project area described in section 25.1(c)(3)(C)
of this chapter, an economic development area described in
section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, for each
year the allocation provision is in effect, if the amount of excess
assessed value determined by the commission under subdivision
(5)(A) is expected to generate more than two hundred percent
(200%) of:
(A) the amount of allocated tax proceeds necessary to make,
when due, principal and interest payments on bonds described
in subdivision (4) for the project; plus
(B) the amount necessary for other purposes described in
subdivision (4) for the project;
the amount of the excess assessed value that generates more than
two hundred percent (200%) of the amounts described in clauses
(A) and (B) shall be allocated to the respective taxing units in the
manner prescribed by subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(4) may, subject to subsection (b)(5), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(4).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
SEA 1 — Concur
310
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(4) shall establish an allocation fund for the purposes
specified in subsection (b)(4) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1), (b)(2), and (b)(3) from property located in the enterprise zone
that exceeds the amount sufficient for the purposes specified in
subsection (b)(4) for the year. The amount sufficient for purposes
specified in subsection (b)(4) for the year shall be determined based on
the pro rata portion of such current property tax proceeds from the part
of the enterprise zone that is within the allocation area as compared to
all such current property tax proceeds derived from the allocation area.
A unit that has no obligations, bonds, or leases payable from allocated
tax proceeds under subsection (b)(4) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1), (b)(2), and (b)(3) in the fund derived from
property tax proceeds in excess of those described in subsection (b)(1),
(b)(2), and (b)(3) from property located in the enterprise zone. The unit
that creates the special zone fund shall use the fund (based on the
recommendations of the urban enterprise association) for programs in
job training, job enrichment, and basic skill development that are
designed to benefit residents and employers in the enterprise zone or
other purposes specified in subsection (b)(4), except that where
reference is made in subsection (b)(4) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. Those
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
SEA 1 — Concur
311
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment in an area under a reassessment plan prepared
under IC 6-1.1-4-4.2, the department of local government finance shall
adjust the base assessed value one (1) time to neutralize any effect of
the reassessment of the real property in the area on the property tax
proceeds allocated to the redevelopment district under this section.
After each annual adjustment under IC 6-1.1-4-4.5, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection:
(1) may not include the effect of phasing in assessed value due to
property tax abatements under IC 6-1.1-12.1;
(2) may not produce less property tax proceeds allocable to the
redevelopment district under subsection (b)(4) than would
otherwise have been received if the reassessment under the
reassessment plan or the annual adjustment had not occurred; and
(3) may decrease base assessed value only to the extent that
assessed values in the allocation area have been decreased due to
annual adjustments or the reassessment under the reassessment
plan.
Assessed value increases attributable to the application of an abatement
schedule under IC 6-1.1-12.1 may not be included in the base assessed
value of an allocation area. The department of local government
finance may prescribe procedures for county and township officials to
follow to assist the department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
SEA 1 — Concur
312
allocation deadline.
(j) If a redevelopment commission adopts a declaratory resolution
or an amendment to a declaratory resolution that contains an allocation
provision and the redevelopment commission makes either of the
filings required under section 17(e) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the unit is located shall compute the base
assessed value for the allocation area using the assessment date
immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2025,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system, along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 235. IC 36-7-15.1-26, AS AMENDED BY P.L.174-2022,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 26. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
8 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
SEA 1 — Concur
313
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
SEA 1 — Concur
314
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or
amendment that establishes an allocation provision must include a
specific finding of fact, supported by evidence, that the adoption of the
allocation provision will result in new property taxes in the area that
would not have been generated but for the adoption of the allocation
provision. For an allocation area established before July 1, 1995, the
expiration date of any allocation provisions for the allocation area is
June 30, 2025, or the last date of any obligations that are outstanding
on July 1, 2015, whichever is later. However, for an allocation area
identified as the Consolidated Allocation Area in the report submitted
in 2013 to the fiscal body under section 36.3 of this chapter, the
expiration date of any allocation provisions for the allocation area is
January 1, 2051. A declaratory resolution or an amendment that
establishes an allocation provision after June 30, 1995, must specify an
expiration date for the allocation provision. For an allocation area
established before July 1, 2008, the expiration date may not be more
than thirty (30) years after the date on which the allocation provision
is established. For an allocation area established after June 30, 2008,
the expiration date may not be more than twenty-five (25) years after
the date on which the first obligation was incurred to pay principal and
interest on bonds or lease rentals on leases payable from tax increment
revenues. However, with respect to bonds or other obligations that were
issued before July 1, 2008, if any of the bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the redevelopment project area. The allocation
SEA 1 — Concur
315
provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
SEA 1 — Concur
316
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (I), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
SEA 1 — Concur
317
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(K) Expend money and provide financial assistance as
authorized in section 7(a)(21) of this chapter.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area, and (in an
electronic format) the department of local government finance.
The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3).
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
SEA 1 — Concur
318
payments on bonds described in subdivision (3); plus
(ii) the amount necessary for other purposes described in
subdivision (3) and subsection (g);
the commission shall submit to the legislative body of the unit
the commission's determination of the excess assessed value
that the commission proposes to allocate to the respective
taxing units in the manner prescribed in subdivision (1). The
legislative body of the unit may approve the commission's
determination or modify the amount of the excess assessed
value that will be allocated to the respective taxing units in the
manner prescribed in subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
SEA 1 — Concur
319
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment under a reassessment plan prepared under
IC 6-1.1-4-4.2, the department of local government finance shall adjust
the base assessed value one (1) time to neutralize any effect of the
reassessment of the real property in the area on the property tax
proceeds allocated to the redevelopment district under this section.
After each annual adjustment under IC 6-1.1-4-4.5, the department of
local government finance shall adjust the base assessed value to
neutralize any effect of the annual adjustment on the property tax
proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection may not include the
SEA 1 — Concur
320
effect of property tax abatements under IC 6-1.1-12.1, and these
adjustments may not produce less property tax proceeds allocable to
the redevelopment district under subsection (b)(3) than would
otherwise have been received if the reassessment under the
reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system, along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SEA 1 — Concur
321
SECTION 236. IC 36-7-15.1-53, AS AMENDED BY P.L.174-2022,
SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 53. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
40 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j):
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (h); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for the current assessment date.
Except as provided in section 55 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property.
(b) A resolution adopted under section 40 of this chapter on or
before the allocation deadline determined under subsection (i) may
include a provision with respect to the allocation and distribution of
property taxes for the purposes and in the manner provided in this
section. A resolution previously adopted may include an allocation
provision by the amendment of that resolution on or before the
allocation deadline determined under subsection (i) in accordance with
the procedures required for its original adoption. A declaratory
resolution or an amendment that establishes an allocation provision
must be approved by resolution of the legislative body of the excluded
city and must specify an expiration date for the allocation provision.
For an allocation area established before July 1, 2008, the expiration
date may not be more than thirty (30) years after the date on which the
allocation provision is established. For an allocation area established
after June 30, 2008, the expiration date may not be more than
twenty-five (25) years after the date on which the first obligation was
incurred to pay principal and interest on bonds or lease rentals on
leases payable from tax increment revenues. However, with respect to
bonds or other obligations that were issued before July 1, 2008, if any
of the bonds or other obligations that were scheduled when issued to
mature before the specified expiration date and that are payable only
from allocated tax proceeds with respect to the allocation area remain
outstanding as of the expiration date, the allocation provision does not
expire until all of the bonds or other obligations are no longer
SEA 1 — Concur
322
outstanding. The allocation provision may apply to all or part of the
redevelopment project area. The allocation provision must require that
any property taxes subsequently levied by or for the benefit of any
public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
SEA 1 — Concur
323
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 46 of this
chapter.
(G) Reimburse the excluded city for expenditures for local
public improvements (which include buildings, park facilities,
and other items set forth in section 45 of this chapter) that are
physically located in or physically connected to that allocation
area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
SEA 1 — Concur
324
department of redevelopment, the officers who are authorized
to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
each of the other taxing units that is wholly or partly located
within the allocation area, and (in an electronic format) the
department of local government finance. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
SEA 1 — Concur
325
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in an enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers, for
purposes of payments from the special zone fund, only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment of real property in an area under a county's
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
SEA 1 — Concur
326
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the redevelopment
district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall adjust
the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the redevelopment
district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the redevelopment district under subsection
(b)(3) than would otherwise have been received if the reassessment
under the county's reassessment plan or annual adjustment had not
occurred. The department of local government finance may prescribe
procedures for county and township officials to follow to assist the
department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
SEA 1 — Concur
327
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system, along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 237. IC 36-7-30-25, AS AMENDED BY P.L.174-2022,
SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 25. (a) The following definitions apply throughout
this section:
(1) "Allocation area" means that part of a military base reuse area
to which an allocation provision of a declaratory resolution
adopted under section 10 of this chapter refers for purposes of
distribution and allocation of property taxes.
(2) "Base assessed value" means, subject to subsection (i):
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment thereto, as finally determined for
any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
Clause (C) applies only to allocation areas established in a
military reuse area after June 30, 1997, and to the part of an
allocation area that was established before June 30, 1997, and that
is added to an existing allocation area after June 30, 1997.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 10 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
SEA 1 — Concur
328
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 13 of this chapter. The allocation
provision may apply to all or part of the military base reuse area. The
allocation provision must require that any property taxes subsequently
levied by or for the benefit of any public body entitled to a distribution
of property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the military base reuse district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the military base reuse district and only to do one
(1) or more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the military base reuse district
or any other entity for the purpose of financing or refinancing
military base reuse activities in or directly serving or
benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the reuse
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
SEA 1 — Concur
329
directly serving or benefiting that allocation area.
(E) Pay expenses incurred by the reuse authority, any other
department of the unit, or a department of another
governmental entity for local public improvements or
structures that are in the allocation area or directly serving or
benefiting the allocation area, including expenses for the
operation and maintenance of these local public improvements
or structures if the reuse authority determines those operation
and maintenance expenses are necessary or desirable to carry
out the purposes of this chapter.
(F) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
(G) Expend money and provide financial assistance as
authorized in section 9(a)(25) of this chapter.
Except as provided in clause (E), the allocation fund may not be
used for operating expenses of the reuse authority.
(4) Except as provided in subsection (g), before July 15 of each
year the reuse authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (3) plus the amount necessary for other purposes
described in subdivision (3).
(B) Provide a written notice to the county auditor, the fiscal
body of the unit that established the reuse authority, and the
officers who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 for each of the other taxing units
that is wholly or partly located within the allocation area. The
notice must:
SEA 1 — Concur
330
(i) state the amount, if any, of excess property taxes that the
reuse authority has determined may be paid to the respective
taxing units in the manner prescribed in subdivision (1); or
(ii) state that the reuse authority has determined that there
are no excess property tax proceeds that may be allocated to
the respective taxing units in the manner prescribed in
subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess property tax proceeds determined
by the reuse authority. The reuse authority may not authorize
a payment to the respective taxing units under this subdivision
if to do so would endanger the interest of the holders of bonds
described in subdivision (3) or lessors under section 19 of this
chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base reuse district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base reuse district for payment as
set forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the reuse authority, reassess the taxable property situated
upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
SEA 1 — Concur
331
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. The amount sufficient for purposes specified in
subsection (b)(3) for the year shall be determined based on the pro rata
part of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that does not have obligations, bonds, or leases payable from
allocated tax proceeds under subsection (b)(3) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) and (b)(2) that are derived from property
in the enterprise zone in the fund. The unit that creates the special zone
fund shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to allocation area it shall refer for purposes of payments from the
special zone fund only to that part of the allocation area that is also
located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each reassessment of real property in an area under the
county's reassessment plan under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the military base
reuse district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall adjust
the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the military base
reuse district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the military base reuse district under subsection
(b)(3) than would otherwise have been received if the reassessment
under the county's reassessment plan or annual adjustment had not
occurred. The department of local government finance may prescribe
SEA 1 — Concur
332
procedures for county and township officials to follow to assist the
department in making the adjustments.
(i) If the reuse authority adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the reuse authority makes either of the filings required
under section 12(c) or 13(f) of this chapter after the first anniversary of
the effective date of the allocation provision, the auditor of the county
in which the military base reuse district is located shall compute the
base assessed value for the allocation area using the assessment date
immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system, along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 238. IC 36-7-30.5-30, AS AMENDED BY P.L.174-2022,
SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2027]: Sec. 30. (a) The following definitions apply throughout
this section:
(1) "Allocation area" means that part of a military base
development area to which an allocation provision of a
declaratory resolution adopted under section 16 of this chapter
refers for purposes of distribution and allocation of property taxes.
(2) "Base assessed value" means, subject to subsection (i):
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment to the declaratory resolution, as
finally determined for any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
SEA 1 — Concur
333
finance, within the allocation area, as finally determined for
the current assessment date.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 16 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 18 of this chapter. The allocation
provision may apply to all or part of the military base development
area. The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the development authority and, when
collected, paid into an allocation fund for that allocation area that
may be used by the development authority and only to do one (1)
or more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the development authority or
any other entity for the purpose of financing or refinancing
SEA 1 — Concur
334
military base development or reuse activities in or directly
serving or benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the development
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) For property taxes first due and payable before 2009, pay
all or a part of a property tax replacement credit to taxpayers
in an allocation area as determined by the development
authority. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district (as
defined in IC 6-1.1-1-20) that contains all or part of the
allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; by
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
32 of this chapter (before its repeal) in the same year.
(F) Pay expenses incurred by the development authority for
SEA 1 — Concur
335
local public improvements or structures that were in the
allocation area or directly serving or benefiting the allocation
area.
(G) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
(H) Expend money and provide financial assistance as
authorized in section 15(26) of this chapter.
The allocation fund may not be used for operating expenses of the
development authority.
(4) Except as provided in subsection (g), before July 15 of each
year the development authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (3) plus the amount necessary for other purposes
described in subdivisions (2) and (3).
(B) Provide a written notice to the appropriate county auditors
and the fiscal bodies and other officers who are authorized to
fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
each of the other taxing units that is wholly or partly located
within the allocation area. The notice must:
(i) state the amount, if any, of the excess property taxes that
the development authority has determined may be paid to
the respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the development authority has determined that
there is no excess assessed value that may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1).
SEA 1 — Concur
336
The county auditors shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
development authority. The development authority may not
authorize a payment to the respective taxing units under this
subdivision if to do so would endanger the interest of the
holders of bonds described in subdivision (3) or lessors under
section 24 of this chapter. Property taxes received by a taxing
unit under this subdivision before 2009 are eligible for the
property tax replacement credit provided under IC 6-1.1-21
(before its repeal).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base development
district under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base development district for
payment as set forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the development authority, reassess the taxable property
situated upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the development authority shall create funds
as specified in this subsection. A development authority that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. The
development authority shall, until the end of the enterprise zone phase
out period, deposit each year in the special zone fund any amount in the
allocation fund derived from property tax proceeds in excess of those
SEA 1 — Concur
337
described in subsection (b)(1) and (b)(2) from property located in the
enterprise zone that exceeds the amount sufficient for the purposes
specified in subsection (b)(3) for the year. The amount sufficient for
purposes specified in subsection (b)(3) for the year shall be determined
based on the pro rata part of such current property tax proceeds from
the part of the enterprise zone that is within the allocation area as
compared to all such current property tax proceeds derived from the
allocation area. A development authority that does not have
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
and (b)(2) that are derived from property in the enterprise zone in the
fund. The development authority that creates the special zone fund
shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or for other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to an allocation area it shall refer for purposes of payments from
the special zone fund only to that part of the allocation area that is also
located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each reassessment of real property in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the military base
development district under this section. After each annual adjustment
under IC 6-1.1-4-4.5, the department of local government finance shall
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the military base
development district under this section. However, the adjustments
under this subsection may not include the effect of property tax
abatements under IC 6-1.1-12.1, and these adjustments may not
produce less property tax proceeds allocable to the military base
development district under subsection (b)(3) than would otherwise
have been received if the reassessment under the county's reassessment
plan or annual adjustment had not occurred. The department of local
government finance may prescribe procedures for county and township
officials to follow to assist the department in making the adjustments.
(i) If the development authority adopts a declaratory resolution or
SEA 1 — Concur
338
an amendment to a declaratory resolution that contains an allocation
provision and the development authority makes either of the filings
required under section 17(e) or 18(f) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the military base development district is located
shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system, along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
SECTION 239. IC 36-7.5-4-2.5, AS ADDED BY P.L.189-2018,
SECTION 173, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 2.5. (a) This section applies to a
unit that has previously:
(1) entered into an interlocal cooperation or other similar
agreement;
(2) adopted an ordinance or resolution; or
(3) taken any other action offering to support and finance:
(A) a rail project or rail projects under this chapter; or
(B) the double tracking project under IC 36-7.5-4.5.
(b) The unit may use any legally available revenue to support and
finance the projects described in subsection (a)(3), including additional
revenue general purpose revenue allocated each year for economic
development under IC 6-3.6-6-9. IC 6-3.6-6.
(c) Additional revenue allocated for economic development to
support and finance the projects under this section shall be paid by the
treasurer of state to the treasurer of the northwest Indiana regional
development authority under section 2 of this chapter before certified
distributions are made to the county or any civil taxing unit in the
county or counties in which the unit is located.
(d) A transfer made on behalf of a unit under subsection (c) after
December 31, 2018, is considered to be a payment for services
provided to residents by a rail project as those services are rendered.
(e) A pledge by the development authority of transferred revenue
SEA 1 — Concur
339
under this section to the payment of bonds, leases, or obligations under
this article or IC 5-1.3:
(1) constitutes the obligations of the northwest Indiana regional
development authority; and
(2) does not constitute an indebtedness of:
(A) a unit described in this section; or
(B) the state;
within the meaning or application of any constitutional or
statutory provision or limitation.
(f) Neither the transfer of revenue nor the pledge of revenue
transferred under this section is an impairment of contract within the
meaning or application of any constitutional provision or limitation
because of the following:
(1) The statutes governing local income taxes, including the
transferred revenue, have been the subject of legislation annually
since 1973, and during that time the statutes have been revised,
amended, expanded, limited, and recodified dozens of times.
(2) Owners of bonds, leases, or other obligations to which local
income tax revenues have been pledged recognize that the
regulation of local income taxes has been extensive and
consistent.
(3) All bonds, leases, or other obligations, due to their essential
contractual nature, are subject to relevant state and federal law
that is enacted after the date of a contract.
(4) The state of Indiana has a legitimate interest in assisting the
northwest Indiana regional development authority in financing
rail projects.
(g) All proceedings had and actions described in this section are
valid pledges under IC 5-1-14-4 as of the date of those proceedings or
actions and are hereby legalized and declared valid if taken before
March 15, 2018.
SECTION 240. IC 36-8-19-7, AS AMENDED BY P.L.95-2022,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7. (a) Subject to
subsection (d), a tax levied under this chapter may be levied at:
(1) a uniform rate upon all taxable property within the territory;
or
(2) different rates for the participating units included within the
territory, so long as a tax rate applies uniformly to all of a unit's
or fire protection district's taxable property within the territory.
(b) If a uniform tax rate is levied upon all taxable property within a
territory upon the formation of the territory, different tax rates may be
SEA 1 — Concur
340
levied for the participating units included within the territory in
subsequent years.
(c) This subsection applies to a territory established by an ordinance
or a resolution adopted under this chapter after December 31, 2022. A
total tax rate levied under this chapter upon taxable property within a
territory upon the formation of the territory may be implemented over
a number of years, not exceeding five (5), and in a manner subject to
review and approval by the department of local government finance.
(d) This subsection applies to a territory established by an
ordinance or a resolution adopted under this chapter after
December 31, 2024. The provider unit and each participating unit
in a territory may not impose a tax rate on the unit's or fire
protection district's taxable property within the territory that
exceeds forty cents ($0.40) per one hundred dollars ($100) of
assessed valuation.
SECTION 241. IC 36-8-19-7.5, AS AMENDED BY P.L.38-2021,
SECTION 100, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7.5. (a)
This section applies to:
(1) local income tax distributions; and
(2) excise tax distributions;
made after December 31, 2009.
(b) Except as provided in subsection (c), for purposes of allocating
local income tax distributions that are based on a taxing unit's
allocation amount before January 1, 2028, or that an adopting body
allocates under IC 6-3.6-6 to economic development before January
1, 2028, or excise tax distributions that are distributed based on the
amount of a taxing unit's property tax levies, each participating unit in
a territory is considered to have imposed a part of the property tax levy
imposed for the territory. The part of the property tax levy imposed for
the territory for a particular year that shall be attributed to a
participating unit is equal to the amount determined in the following
STEPS:
STEP ONE: Determine the total amount of all property taxes
imposed by the participating unit in the year before the year in
which a property tax levy was first imposed for the territory.
STEP TWO: Determine the sum of the STEP ONE amounts for
all participating units.
STEP THREE: Divide the STEP ONE result by the STEP TWO
result.
STEP FOUR: Multiply the STEP THREE result by the property
tax levy imposed for the territory for the particular year.
SEA 1 — Concur
341
(c) This subsection applies to a determination under subsection (b)
made in calendar years 2018, 2019, and 2020. The department of local
government finance may, for distributions made in calendar year 2022,
adjust the allocation amount determined under subsection (b) to correct
for any clerical or mathematical errors made in any determination for
calendar year 2018, 2019, or 2020, as applicable, including the
allocation amount for any taxing unit whose distribution was affected
by the clerical or mathematical error in those years. The department of
local government finance may apply the adjustment to the allocation
amount for a taxing unit over a period not to exceed ten (10) years in
order to offset the effect of the adjustment on the distribution.
(d) This subsection applies to a territory established by an
ordinance or a resolution adopted under this chapter after
December 31, 2024. Before additional revenue from a local income
tax rate may be allocated to the provider unit of a new territory
due to an increased property tax levy resulting from the
establishment of the territory, the county fiscal body must adopt an
ordinance or resolution approving the allocation.
SECTION 242. IC 36-8-19-8, AS AMENDED BY P.L.236-2023,
SECTION 209, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2027]: Sec. 8. (a) Upon the adoption of
identical ordinances or resolutions, or both, by the participating units
under section 6 of this chapter, the designated provider unit must
establish a fire protection territory fund from which all expenses of
operating and maintaining the fire protection services within the
territory, including repairs, fees, salaries, depreciation on all
depreciable assets, rents, supplies, contingencies, and all other
expenses lawfully incurred within the territory shall be paid. The
purposes described in this subsection are the sole purposes of the fund,
and money in the fund may not be used for any other expenses. Except
as allowed in subsections (d) and (e) and section 8.5 of this chapter, the
provider unit is not authorized to transfer money out of the fund at any
time.
(b) The fund consists of the following:
(1) All receipts from the tax imposed under this section.
(2) Any money transferred to the fund by the provider unit as
authorized under subsection (d).
(3) Any receipts from a false alarm fee or service charge imposed
by the participating units under IC 36-8-13-4.
(4) Any money transferred to the fund by a participating unit
under section 8.6 of this chapter.
(5) Any receipts from a distribution made under IC 6-3.6-6-8(d),
SEA 1 — Concur
342
IC 6-3.6-6-8(b), which shall be deposited in the fund.
(c) The provider unit, with the assistance of each of the other
participating units, shall annually budget the necessary money to meet
the expenses of operation and maintenance of the fire protection
services within the territory. The provider unit may maintain a
reasonable balance, not to exceed one hundred twenty percent (120%)
of the budgeted expenses. Except as provided in IC 6-1.1-18.5-10.5,
and subject to section 7(c) of this chapter, after estimating expenses
and receipts of money, the provider unit shall establish the tax levy
required to fund the estimated budget. Subject to IC 6-1.1-18.5-10.5(c),
the amount budgeted under this subsection shall be considered a part
of each of the participating unit's budget.
(d) If the amount levied in a particular year is insufficient to cover
the costs incurred in providing fire protection services within the
territory, the provider unit may transfer from available sources to the
fire protection territory fund the money needed to cover those costs. In
this case:
(1) the levy in the following year shall be increased by the amount
required to be transferred; and
(2) the provider unit is entitled to transfer the amount described
in subdivision (1) from the fund as reimbursement to the provider
unit.
(e) If the amount levied in a particular year exceeds the amount
necessary to cover the costs incurred in providing fire protection
services within the territory, the levy in the following year shall be
reduced by the amount of surplus money that is not transferred to the
equipment replacement fund established under section 8.5 of this
chapter. The amount that may be transferred to the equipment
replacement fund may not exceed five percent (5%) of the levy for that
fund for that year. Each participating unit must agree to the amount to
be transferred by adopting an ordinance (if the unit is a county or
municipality) or a resolution (if the unit is a township) that specifies an
identical amount to be transferred.
(f) The tax under this section is subject to the tax levy limitations
imposed under IC 6-1.1-18.5-10.5.
SECTION 243. [EFFECTIVE JANUARY 1, 2025
(RETROACTIVE)] (a) IC 6-1.1-51.3, as added by this act, applies to
property taxes imposed for assessment dates on or after January
1, 2025.
(b) This SECTION expires June 30, 2029.
SECTION 244. [EFFECTIVE JANUARY 1, 2025
(RETROACTIVE)] (a) IC 6-1.1-4-4.5 and IC 6-1.1-20.6-8.5, both as
SEA 1 — Concur
343
amended by this act, apply to assessment dates occurring after
December 31, 2024, for property taxes first due and payable in
2026.
(b) This SECTION expires June 30, 2029.
SECTION 245. [EFFECTIVE JANUARY 1, 2026] (a)
IC 6-1.1-18.5-12 and IC 6-1.1-18.5-13, both as amended by this act,
apply to property tax levies after December 31, 2025.
(b) IC 6-1.1-18.5-12 and IC 6-1.1-18.5-13, before their
amendment by this act, apply to property tax levies for 2025.
(c) This SECTION expires January 1, 2030.
SECTION 246. [EFFECTIVE JUNE 30, 2027] (a) Notwithstanding
the July 1, 2027, effective date for IC 6-3.6-6-0.5, IC 6-3.6-6-4.3,
IC 6-3.6-6-4.5, and IC 6-3.6-6-6.1, all as added by this act; the July
1, 2027, effective date for IC 6-3.6-6-2, IC 6-3.6-6-3, IC 6-3.6-6-4,
IC 6-3.6-6-8, IC 6-3.6-6-8.5, IC 6-3.6-6-9.5, IC 6-3.6-6-17,
IC 6-3.6-6-18, IC 6-3.6-6-19, and IC 6-3.6-6-21, all as amended by
this act; and the July 1, 2027, or January 1, 2028, repeal of
IC 6-3.6-6-2.5, IC 6-3.6-6-2.6, IC 6-3.6-6-2.7, IC 6-3.6-6-2.8,
IC 6-3.6-6-2.9, IC 6-3.6-6-9, IC 6-3.6-6-10, IC 6-3.6-6-11,
IC 6-3.6-6-12, IC 6-3.6-6-14, IC 6-3.6-6-15, IC 6-3.6-6-16, and
IC 6-3.6-6-20, all as repealed by this act; the method used to
determine the amount of a particular distribution of revenue
before July 1, 2027, shall continue to be used for these
determinations for all of 2027.
(b) Notwithstanding the adoption of different tax rates by a
county applicable after 2027 or the adoption of municipal tax rates
under IC 6-3.6-6-22, as added by this act, applicable after 2027, or
any other provision of law, the certified distribution methodology
calculation for local income tax distributions made in 2027 shall
continue for local income tax distributions made in 2028 and 2029
to account for the transition to any new tax rates.
(c) This SECTION expires June 30, 2030.
SECTION 247. [EFFECTIVE JUNE 30, 2027] (a) As used in this
SECTION, "local income tax council" means a local income tax
council established under IC 6-3.6-3-1, before its amendment by
this act.
(b) On July 1, 2027, all powers, duties, and authorities of a local
income tax council are transferred to the fiscal body of the county
in which it is located.
(c) An ordinance adopted by a local income tax council under
IC 6-3.6 before July 1, 2027, continues in effect after June 30, 2027,
and is valid and binding until it is rescinded or otherwise amended
SEA 1 — Concur
344
by the county fiscal body.
(d) On or before July 1, 2027, all records and property under
the control of a local income tax council shall be transferred to the
fiscal body of the county in which it is located.
(e) After June 30, 2027, a reference to a local income tax council
in any statute, rule, or other document is considered a reference to
the county fiscal body.
(f) This SECTION expires June 30, 2030.
SECTION 248. An emergency is declared for this act.
SEA 1 — Concur
President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
SEA 1 — ConcurEvery fact on this page links to its source, starting with the official bill record.