Indiana 2022 Regular Session

Indiana House Bill HB1237 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1237
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1; IC 36-7; IC 36-8-19.
7	7	Synopsis: Property taxation. Allows a total tax rate levied upon the
8	8	formation of a fire protection territory established after December 31,
9	9	2022, to be implemented over a number of years, not exceeding five,
10	10	and subject to review and approval by the department of local
11	11	government finance. Provides that the maximum permissible ad
12	12	valorem property tax levy that would otherwise apply to a participating
13	13	unit does not apply to property taxes imposed by the participating unit
14	14	to meet obligations to the fire protection territory over the period of
15	15	years in which a total tax rate is implemented. Provides that a
16	16	participating unit's proceeds of property taxes imposed to meet the
17	17	participating unit's obligations to a fire protection territory are exempt
18	18	from areas needing redevelopment, redevelopment project areas, urban
19	19	renewal project areas, economic development areas, or economic
20	20	development districts established after December 31, 2021. Provides
21	21	that incremental revenues may be used by a redevelopment commission
22	22	to pay operating costs, in whole or in part, of: (1) a unit's law
23	23	enforcement agency; (2) a unit's fire department, including a fire
24	24	protection district established under IC 36-8-11 or a fire protection
25	25	territory established under IC 36-8-19; and (3) emergency medical
26	26	services operated or maintained by a unit; that serve the allocation area.
27	27	Provides that incremental revenues shared by a redevelopment
28	28	commission with a school corporation for an education or worker
29	29	program may also be used by the school corporation to pay operating
30	30	costs of the school corporation.
31	31	Effective: January 1, 2022 (retroactive); July 1, 2022.
32	32	Cherry, Thompson
33	33	January 6, 2022, read first time and referred to Committee on Ways and Means.
34	34	2022 IN 1237—LS 6686/DI 125 Introduced
35	35	Second Regular Session of the 122nd General Assembly (2022)
36	36	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
37	37	Constitution) is being amended, the text of the existing provision will appear in this style type,
38	38	additions will appear in this style type, and deletions will appear in this style type.
39	39	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
40	40	provision adopted), the text of the new provision will appear in this style type. Also, the
41	41	word NEW will appear in that style type in the introductory clause of each SECTION that adds
42	42	a new provision to the Indiana Code or the Indiana Constitution.
43	43	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
44	44	between statutes enacted by the 2021 Regular Session of the General Assembly.
45	45	HOUSE BILL No. 1237
46	46	A BILL FOR AN ACT to amend the Indiana Code concerning
47	47	taxation.
48	48	Be it enacted by the General Assembly of the State of Indiana:
49	49	1 SECTION 1. IC 6-1.1-18.5-10.5, AS AMENDED BY P.L.159-2020,
50	50	2 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
51	51	3 JULY 1, 2022]: Sec. 10.5. (a) The ad valorem property tax levy limits
52	52	4 imposed by section 3 of this chapter do not apply to ad valorem
53	53	5 property taxes imposed by a civil taxing unit for fire protection services
54	54	6 within a fire protection territory under IC 36-8-19, if the civil taxing
55	55	7 unit is a participating unit in a fire protection territory established
56	56	8 before August 1, 2001. For purposes of computing the ad valorem
57	57	9 property tax levy limits imposed on a civil taxing unit by section 3 of
58	58	10 this chapter on a civil taxing unit that is a participating unit in a fire
59	59	11 protection territory, established before August 1, 2001, the civil taxing
60	60	12 unit's ad valorem property tax levy for a particular calendar year does
61	61	13 not include that part of the levy imposed under IC 36-8-19. Any
62	62	14 property taxes imposed by a civil taxing unit that are exempted by this
63	63	15 subsection from the ad valorem property tax levy limits imposed by
64	64	16 section 3 of this chapter and first due and payable after December 31,
65	65	17 2008, may not increase annually by a percentage greater than the result
66	66	2022 IN 1237—LS 6686/DI 125 2
67	67	1 of:
68	68	2 (1) the maximum levy growth quotient determined under section
69	69	3 2 of this chapter; minus
70	70	4 (2) one (1).
71	71	5 (b) The department of local government finance may, under this
72	72	6 subsection, increase the maximum permissible ad valorem property tax
73	73	7 levy that would otherwise apply to a civil taxing unit under section 3
74	74	8 of this chapter to meet the civil taxing unit's obligations to a fire
75	75	9 protection territory established under IC 36-8-19. To obtain an increase
76	76	10 in the civil taxing unit's maximum permissible ad valorem property tax
77	77	11 levy, a civil taxing unit shall submit a petition to the department of
78	78	12 local government finance in the year immediately preceding the first
79	79	13 year in which the civil taxing unit levies a tax to support the fire
80	80	14 protection territory. The petition must be filed before the date specified
81	81	15 in section 12(a)(1) of this chapter of that year. The department of local
82	82	16 government finance shall make a final determination of the civil taxing
83	83	17 unit's budget, ad valorem property tax levy, and property tax rate for the
84	84	18 fire protection territory for the ensuing calendar year. In making its
85	85	19 determination under this subsection, the department of local
86	86	20 government finance shall consider the amount that the civil taxing unit
87	87	21 is obligated to provide to meet the expenses of operation and
88	88	22 maintenance of the fire protection services within the territory,
89	89	23 including the participating unit's reasonable share of an operating
90	90	24 balance for the fire protection territory. The department of local
91	91	25 government finance shall determine the entire amount of the allowable
92	92	26 adjustment in the final determination. The department shall order the
93	93	27 adjustment implemented in the amounts and over the number of years,
94	94	28 not exceeding three (3), requested by the petitioning civil taxing unit.
95	95	29 However, the department of local government finance may not approve
96	96	30 under this subsection a property tax levy greater than zero (0) if the
97	97	31 civil taxing unit did not exist as of the assessment date for which the
98	98	32 tax levy will be imposed. For purposes of applying this subsection to
99	99	33 the civil taxing unit's maximum permissible ad valorem property tax
100	100	34 levy in subsequent calendar years, the department of local government
101	101	35 finance may determine not to consider part or all of the part of the
102	102	36 property tax levy imposed to establish the operating balance of the fire
103	103	37 protection territory.
104	104	38 (c) This subsection applies to a participating unit in a fire
105	105	39 protection territory established under IC 36-8-19 after December
106	106	40 31, 2022. Notwithstanding any other law, if a total tax rate levied
107	107	41 upon the formation of a fire protection territory established under
108	108	42 IC 36-8-19 is to be implemented over a number of years as
109	109	2022 IN 1237—LS 6686/DI 125 3
110	110	1 provided in IC 36-8-19-7(c), the maximum permissible ad valorem
111	111	2 property tax levy that would otherwise apply to a participating
112	112	3 unit under section 3 of this chapter to meet the participating unit's
113	113	4 obligations to a fire protection territory does not apply to ad
114	114	5 valorem property taxes imposed by the participating unit to meet
115	115	6 the participating unit's obligations to the fire protection territory
116	116	7 over the number of years in which the total tax rate is to be
117	117	8 implemented by each participating unit. For purposes of
118	118	9 calculating the maximum permissible ad valorem property tax levy
119	119	10 imposed by a participating unit for each year for which the
120	120	11 participating unit implements a total tax rate to support the fire
121	121	12 protection territory, the participating unit's maximum permissible
122	122	13 ad valorem property tax levy for the preceding calendar year
123	123	14 under IC 6-1.1-18.5-3(a) STEP ONE or IC 6-1.1-18.5-3(b) STEP
124	124	15 ONE is increased each year by an amount equal to the difference
125	125	16 between:
126	126	17 (1) the amount the participating unit will have to levy for the
127	127	18 ensuing calendar year in order to fund the participating unit's
128	128	19 share of the fire protection territory budget for the operating
129	129	20 costs as provided in the ordinance or resolution making the
130	130	21 unit a participating unit in the fire protection territory; and
131	131	22 (2) the participating unit's levy for fire protection services for
132	132	23 the calendar year that immediately precedes the ensuing
133	133	24 calendar year in which the participating unit levies a tax to
134	134	25 support the fire protection territory.
135	135	26 SECTION 2. IC 6-1.1-39-1 IS AMENDED TO READ AS
136	136	27 FOLLOWS [EFFECTIVE JANUARY 1, 2022 (RETROACTIVE)]:
137	137	28 Sec. 1. (a) This chapter applies to all counties, cities, and towns
138	138	29 (referred to in this chapter as units).
139	139	30 (b) Notwithstanding any other law, for economic development
140	140	31 districts established:
141	141	32 (1) after January 1, 1992, this chapter does not apply to fire
142	142	33 protection districts established under IC 36-8-11; and
143	143	34 (2) after December 31, 2021, this chapter does not apply to the
144	144	35 part of a participating unit's proceeds of property taxes
145	145	36 imposed for an assessment date with respect to which the
146	146	37 allocation and distribution is made that are attributable to
147	147	38 property taxes imposed to meet the participating unit's
148	148	39 obligations to a fire protection territory established under
149	149	40 IC 36-8-19.
150	150	41 SECTION 3. IC 36-7-14-1.7 IS ADDED TO THE INDIANA CODE
151	151	42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
152	152	2022 IN 1237—LS 6686/DI 125 4
153	153	1 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 1.7. Notwithstanding
154	154	2 any other law, for:
155	155	3 (1) areas needing redevelopment;
156	156	4 (2) redevelopment project areas;
157	157	5 (3) urban renewal project areas; or
158	158	6 (4) economic development areas;
159	159	7 established after December 31, 2021, this chapter does not apply to
160	160	8 the part of a participating unit's proceeds of property taxes
161	161	9 imposed for an assessment date with respect to which the allocation
162	162	10 and distribution is made that are attributable to property taxes
163	163	11 imposed to meet the participating unit's obligations to a fire
164	164	12 protection territory established under IC 36-8-19.
165	165	13 SECTION 4. IC 36-7-14-39, AS AMENDED BY P.L.38-2021,
166	166	14 SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
167	167	15 JULY 1, 2022]: Sec. 39. (a) As used in this section:
168	168	16 "Allocation area" means that part of a redevelopment project area
169	169	17 to which an allocation provision of a declaratory resolution adopted
170	170	18 under section 15 of this chapter refers for purposes of distribution and
171	171	19 allocation of property taxes.
172	172	20 "Base assessed value" means, subject to subsection (j), the
173	173	21 following:
174	174	22 (1) If an allocation provision is adopted after June 30, 1995, in a
175	175	23 declaratory resolution or an amendment to a declaratory
176	176	24 resolution establishing an economic development area:
177	177	25 (A) the net assessed value of all the property as finally
178	178	26 determined for the assessment date immediately preceding the
179	179	27 effective date of the allocation provision of the declaratory
180	180	28 resolution, as adjusted under subsection (h); plus
181	181	29 (B) to the extent that it is not included in clause (A), the net
182	182	30 assessed value of property that is assessed as residential
183	183	31 property under the rules of the department of local government
184	184	32 finance, within the allocation area, as finally determined for
185	185	33 the current assessment date.
186	186	34 (2) If an allocation provision is adopted after June 30, 1997, in a
187	187	35 declaratory resolution or an amendment to a declaratory
188	188	36 resolution establishing a redevelopment project area:
189	189	37 (A) the net assessed value of all the property as finally
190	190	38 determined for the assessment date immediately preceding the
191	191	39 effective date of the allocation provision of the declaratory
192	192	40 resolution, as adjusted under subsection (h); plus
193	193	41 (B) to the extent that it is not included in clause (A), the net
194	194	42 assessed value of property that is assessed as residential
195	195	2022 IN 1237—LS 6686/DI 125 5
196	196	1 property under the rules of the department of local government
197	197	2 finance, as finally determined for the current assessment date.
198	198	3 (3) If:
199	199	4 (A) an allocation provision adopted before June 30, 1995, in
200	200	5 a declaratory resolution or an amendment to a declaratory
201	201	6 resolution establishing a redevelopment project area expires
202	202	7 after June 30, 1997; and
203	203	8 (B) after June 30, 1997, a new allocation provision is included
204	204	9 in an amendment to the declaratory resolution;
205	205	10 the net assessed value of all the property as finally determined for
206	206	11 the assessment date immediately preceding the effective date of
207	207	12 the allocation provision adopted after June 30, 1997, as adjusted
208	208	13 under subsection (h).
209	209	14 (4) Except as provided in subdivision (5), for all other allocation
210	210	15 areas, the net assessed value of all the property as finally
211	211	16 determined for the assessment date immediately preceding the
212	212	17 effective date of the allocation provision of the declaratory
213	213	18 resolution, as adjusted under subsection (h).
214	214	19 (5) If an allocation area established in an economic development
215	215	20 area before July 1, 1995, is expanded after June 30, 1995, the
216	216	21 definition in subdivision (1) applies to the expanded part of the
217	217	22 area added after June 30, 1995.
218	218	23 (6) If an allocation area established in a redevelopment project
219	219	24 area before July 1, 1997, is expanded after June 30, 1997, the
220	220	25 definition in subdivision (2) applies to the expanded part of the
221	221	26 area added after June 30, 1997.
222	222	27 Except as provided in section 39.3 of this chapter, "property taxes"
223	223	28 means taxes imposed under IC 6-1.1 on real property. However, upon
224	224	29 approval by a resolution of the redevelopment commission adopted
225	225	30 before June 1, 1987, "property taxes" also includes taxes imposed
226	226	31 under IC 6-1.1 on depreciable personal property. If a redevelopment
227	227	32 commission adopted before June 1, 1987, a resolution to include within
228	228	33 the definition of property taxes, taxes imposed under IC 6-1.1 on
229	229	34 depreciable personal property that has a useful life in excess of eight
230	230	35 (8) years, the commission may by resolution determine the percentage
231	231	36 of taxes imposed under IC 6-1.1 on all depreciable personal property
232	232	37 that will be included within the definition of property taxes. However,
233	233	38 the percentage included must not exceed twenty-five percent (25%) of
234	234	39 the taxes imposed under IC 6-1.1 on all depreciable personal property.
235	235	40 (b) A declaratory resolution adopted under section 15 of this chapter
236	236	41 on or before the allocation deadline determined under subsection (i)
237	237	42 may include a provision with respect to the allocation and distribution
238	238	2022 IN 1237—LS 6686/DI 125 6
239	239	1 of property taxes for the purposes and in the manner provided in this
240	240	2 section. A declaratory resolution previously adopted may include an
241	241	3 allocation provision by the amendment of that declaratory resolution on
242	242	4 or before the allocation deadline determined under subsection (i) in
243	243	5 accordance with the procedures required for its original adoption. A
244	244	6 declaratory resolution or amendment that establishes an allocation
245	245	7 provision must include a specific finding of fact, supported by
246	246	8 evidence, that the adoption of the allocation provision will result in
247	247	9 new property taxes in the area that would not have been generated but
248	248	10 for the adoption of the allocation provision. For an allocation area
249	249	11 established before July 1, 1995, the expiration date of any allocation
250	250	12 provisions for the allocation area is June 30, 2025, or the last date of
251	251	13 any obligations that are outstanding on July 1, 2015, whichever is later.
252	252	14 A declaratory resolution or an amendment that establishes an allocation
253	253	15 provision after June 30, 1995, must specify an expiration date for the
254	254	16 allocation provision. For an allocation area established before July 1,
255	255	17 2008, the expiration date may not be more than thirty (30) years after
256	256	18 the date on which the allocation provision is established. For an
257	257	19 allocation area established after June 30, 2008, the expiration date may
258	258	20 not be more than twenty-five (25) years after the date on which the first
259	259	21 obligation was incurred to pay principal and interest on bonds or lease
260	260	22 rentals on leases payable from tax increment revenues. However, with
261	261	23 respect to bonds or other obligations that were issued before July 1,
262	262	24 2008, if any of the bonds or other obligations that were scheduled when
263	263	25 issued to mature before the specified expiration date and that are
264	264	26 payable only from allocated tax proceeds with respect to the allocation
265	265	27 area remain outstanding as of the expiration date, the allocation
266	266	28 provision does not expire until all of the bonds or other obligations are
267	267	29 no longer outstanding. Notwithstanding any other law, in the case of an
268	268	30 allocation area that is established after June 30, 2019, and that is
269	269	31 located in a redevelopment project area described in section
270	270	32 25.1(c)(3)(C) of this chapter, an economic development area described
271	271	33 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
272	272	34 area described in section 25.1(c)(3)(C) of this chapter, the expiration
273	273	35 date of the allocation provision may not be more than thirty-five (35)
274	274	36 years after the date on which the allocation provision is established.
275	275	37 The allocation provision may apply to all or part of the redevelopment
276	276	38 project area. The allocation provision must require that any property
277	277	39 taxes subsequently levied by or for the benefit of any public body
278	278	40 entitled to a distribution of property taxes on taxable property in the
279	279	41 allocation area be allocated and distributed as follows:
280	280	42 (1) Except as otherwise provided in this section, the proceeds of
281	281	2022 IN 1237—LS 6686/DI 125 7
282	282	1 the taxes attributable to the lesser of:
283	283	2 (A) the assessed value of the property for the assessment date
284	284	3 with respect to which the allocation and distribution is made;
285	285	4 or
286	286	5 (B) the base assessed value;
287	287	6 shall be allocated to and, when collected, paid into the funds of
288	288	7 the respective taxing units.
289	289	8 (2) The excess of the proceeds of the property taxes imposed for
290	290	9 the assessment date with respect to which the allocation and
291	291	10 distribution is made that are attributable to taxes imposed after
292	292	11 being approved by the voters in a referendum or local public
293	293	12 question conducted after April 30, 2010, not otherwise included
294	294	13 in subdivision (1) shall be allocated to and, when collected, paid
295	295	14 into the funds of the taxing unit for which the referendum or local
296	296	15 public question was conducted.
297	297	16 (3) Except as otherwise provided in this section, property tax
298	298	17 proceeds in excess of those described in subdivisions (1) and (2)
299	299	18 shall be allocated to the redevelopment district and, when
300	300	19 collected, paid into an allocation fund for that allocation area that
301	301	20 may be used by the redevelopment district only to do one (1) or
302	302	21 more of the following:
303	303	22 (A) Pay the principal of and interest on any obligations
304	304	23 payable solely from allocated tax proceeds which are incurred
305	305	24 by the redevelopment district for the purpose of financing or
306	306	25 refinancing the redevelopment of that allocation area.
307	307	26 (B) Establish, augment, or restore the debt service reserve for
308	308	27 bonds payable solely or in part from allocated tax proceeds in
309	309	28 that allocation area.
310	310	29 (C) Pay the principal of and interest on bonds payable from
311	311	30 allocated tax proceeds in that allocation area and from the
312	312	31 special tax levied under section 27 of this chapter.
313	313	32 (D) Pay the principal of and interest on bonds issued by the
314	314	33 unit to pay for local public improvements that are physically
315	315	34 located in or physically connected to that allocation area.
316	316	35 (E) Pay premiums on the redemption before maturity of bonds
317	317	36 payable solely or in part from allocated tax proceeds in that
318	318	37 allocation area.
319	319	38 (F) Make payments on leases payable from allocated tax
320	320	39 proceeds in that allocation area under section 25.2 of this
321	321	40 chapter.
322	322	41 (G) Reimburse the unit for expenditures made by it for local
323	323	42 public improvements (which include buildings, parking
324	324	2022 IN 1237—LS 6686/DI 125 8
325	325	1 facilities, and other items described in section 25.1(a) of this
326	326	2 chapter) that are physically located in or physically connected
327	327	3 to that allocation area.
328	328	4 (H) Reimburse the unit for rentals paid by it for a building or
329	329	5 parking facility that is physically located in or physically
330	330	6 connected to that allocation area under any lease entered into
331	331	7 under IC 36-1-10.
332	332	8 (I) For property taxes first due and payable before January 1,
333	333	9 2009, pay all or a part of a property tax replacement credit to
334	334	10 taxpayers in an allocation area as determined by the
335	335	11 redevelopment commission. This credit equals the amount
336	336	12 determined under the following STEPS for each taxpayer in a
337	337	13 taxing district (as defined in IC 6-1.1-1-20) that contains all or
338	338	14 part of the allocation area:
339	339	15 STEP ONE: Determine that part of the sum of the amounts
340	340	16 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
341	341	17 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
342	342	18 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
343	343	19 the taxing district.
344	344	20 STEP TWO: Divide:
345	345	21 (i) that part of each county's eligible property tax
346	346	22 replacement amount (as defined in IC 6-1.1-21-2 (before its
347	347	23 repeal)) for that year as determined under IC 6-1.1-21-4
348	348	24 (before its repeal) that is attributable to the taxing district;
349	349	25 by
350	350	26 (ii) the STEP ONE sum.
351	351	27 STEP THREE: Multiply:
352	352	28 (i) the STEP TWO quotient; times
353	353	29 (ii) the total amount of the taxpayer's taxes (as defined in
354	354	30 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
355	355	31 that have been allocated during that year to an allocation
356	356	32 fund under this section.
357	357	33 If not all the taxpayers in an allocation area receive the credit
358	358	34 in full, each taxpayer in the allocation area is entitled to
359	359	35 receive the same proportion of the credit. A taxpayer may not
360	360	36 receive a credit under this section and a credit under section
361	361	37 39.5 of this chapter (before its repeal) in the same year.
362	362	38 (J) Pay expenses incurred by the redevelopment commission
363	363	39 for local public improvements that are in the allocation area or
364	364	40 serving the allocation area. Public improvements include
365	365	41 buildings, parking facilities, and other items described in
366	366	42 section 25.1(a) of this chapter.
367	367	2022 IN 1237—LS 6686/DI 125 9
368	368	1 (K) Reimburse public and private entities for expenses
369	369	2 incurred in training employees of industrial facilities that are
370	370	3 located:
371	371	4 (i) in the allocation area; and
372	372	5 (ii) on a parcel of real property that has been classified as
373	373	6 industrial property under the rules of the department of local
374	374	7 government finance.
375	375	8 However, the total amount of money spent for this purpose in
376	376	9 any year may not exceed the total amount of money in the
377	377	10 allocation fund that is attributable to property taxes paid by the
378	378	11 industrial facilities described in this clause. The
379	379	12 reimbursements under this clause must be made within three
380	380	13 (3) years after the date on which the investments that are the
381	381	14 basis for the increment financing are made.
382	382	15 (L) Pay the costs of carrying out an eligible efficiency project
383	383	16 (as defined in IC 36-9-41-1.5) within the unit that established
384	384	17 the redevelopment commission. However, property tax
385	385	18 proceeds may be used under this clause to pay the costs of
386	386	19 carrying out an eligible efficiency project only if those
387	387	20 property tax proceeds exceed the amount necessary to do the
388	388	21 following:
389	389	22 (i) Make, when due, any payments required under clauses
390	390	23 (A) through (K), including any payments of principal and
391	391	24 interest on bonds and other obligations payable under this
392	392	25 subdivision, any payments of premiums under this
393	393	26 subdivision on the redemption before maturity of bonds, and
394	394	27 any payments on leases payable under this subdivision.
395	395	28 (ii) Make any reimbursements required under this
396	396	29 subdivision.
397	397	30 (iii) Pay any expenses required under this subdivision.
398	398	31 (iv) Establish, augment, or restore any debt service reserve
399	399	32 under this subdivision.
400	400	33 (M) Expend money and provide financial assistance as
401	401	34 authorized in section 12.2(a)(27) of this chapter.
402	402	35 (N) Subject to approval by the fiscal body of the unit that
403	403	36 established the redevelopment commission, to pay the
404	404	37 operating costs, or a part of the operating costs, of:
405	405	38 (i) a unit's law enforcement agency;
406	406	39 (ii) a unit's fire department, including a fire protection
407	407	40 district established under IC 36-8-11 or a fire protection
408	408	41 territory established under IC 36-8-19; and
409	409	42 (iii) emergency medical services operated or maintained
410	410	2022 IN 1237—LS 6686/DI 125 10
411	411	1 by a unit;
412	412	2 that serve, in whole or in part, the allocation area.
413	413	3 However, the amount of money spent annually for this
414	414	4 purpose may not exceed fifteen percent (15%) of the
415	415	5 allocated tax proceeds received on an annual basis.
416	416	6 The allocation fund may not be used for operating expenses of the
417	417	7 commission.
418	418	8 (4) Except as provided in subsection (g), before June 15 of each
419	419	9 year, the commission shall do the following:
420	420	10 (A) Determine the amount, if any, by which the assessed value
421	421	11 of the taxable property in the allocation area for the most
422	422	12 recent assessment date minus the base assessed value, when
423	423	13 multiplied by the estimated tax rate of the allocation area, will
424	424	14 exceed the amount of assessed value needed to produce the
425	425	15 property taxes necessary to make, when due, principal and
426	426	16 interest payments on bonds described in subdivision (3), plus
427	427	17 the amount necessary for other purposes described in
428	428	18 subdivision (3).
429	429	19 (B) Provide a written notice to the county auditor, the fiscal
430	430	20 body of the county or municipality that established the
431	431	21 department of redevelopment, and the officers who are
432	432	22 authorized to fix budgets, tax rates, and tax levies under
433	433	23 IC 6-1.1-17-5 for each of the other taxing units that is wholly
434	434	24 or partly located within the allocation area. The county auditor,
435	435	25 upon receiving the notice, shall forward this notice (in an
436	436	26 electronic format) to the department of local government
437	437	27 finance not later than June 15 of each year. The notice must:
438	438	28 (i) state the amount, if any, of excess assessed value that the
439	439	29 commission has determined may be allocated to the
440	440	30 respective taxing units in the manner prescribed in
441	441	31 subdivision (1); or
442	442	32 (ii) state that the commission has determined that there is no
443	443	33 excess assessed value that may be allocated to the respective
444	444	34 taxing units in the manner prescribed in subdivision (1).
445	445	35 The county auditor shall allocate to the respective taxing units
446	446	36 the amount, if any, of excess assessed value determined by the
447	447	37 commission. The commission may not authorize an allocation
448	448	38 of assessed value to the respective taxing units under this
449	449	39 subdivision if to do so would endanger the interests of the
450	450	40 holders of bonds described in subdivision (3) or lessors under
451	451	41 section 25.3 of this chapter.
452	452	42 (C) If:
453	453	2022 IN 1237—LS 6686/DI 125 11
454	454	1 (i) the amount of excess assessed value determined by the
455	455	2 commission is expected to generate more than two hundred
456	456	3 percent (200%) of the amount of allocated tax proceeds
457	457	4 necessary to make, when due, principal and interest
458	458	5 payments on bonds described in subdivision (3); plus
459	459	6 (ii) the amount necessary for other purposes described in
460	460	7 subdivision (3);
461	461	8 the commission shall submit to the legislative body of the unit
462	462	9 its determination of the excess assessed value that the
463	463	10 commission proposes to allocate to the respective taxing units
464	464	11 in the manner prescribed in subdivision (1). The legislative
465	465	12 body of the unit may approve the commission's determination
466	466	13 or modify the amount of the excess assessed value that will be
467	467	14 allocated to the respective taxing units in the manner
468	468	15 prescribed in subdivision (1).
469	469	16 (5) Notwithstanding subdivision (4), in the case of an allocation
470	470	17 area that is established after June 30, 2019, and that is located in
471	471	18 a redevelopment project area described in section 25.1(c)(3)(C)
472	472	19 of this chapter, an economic development area described in
473	473	20 section 25.1(c)(3)(C) of this chapter, or an urban renewal project
474	474	21 area described in section 25.1(c)(3)(C) of this chapter, for each
475	475	22 year the allocation provision is in effect, if the amount of excess
476	476	23 assessed value determined by the commission under subdivision
477	477	24 (4)(A) is expected to generate more than two hundred percent
478	478	25 (200%) of:
479	479	26 (A) the amount of allocated tax proceeds necessary to make,
480	480	27 when due, principal and interest payments on bonds described
481	481	28 in subdivision (3) for the project; plus
482	482	29 (B) the amount necessary for other purposes described in
483	483	30 subdivision (3) for the project;
484	484	31 the amount of the excess assessed value that generates more than
485	485	32 two hundred percent (200%) of the amounts described in clauses
486	486	33 (A) and (B) shall be allocated to the respective taxing units in the
487	487	34 manner prescribed by subdivision (1).
488	488	35 (c) For the purpose of allocating taxes levied by or for any taxing
489	489	36 unit or units, the assessed value of taxable property in a territory in the
490	490	37 allocation area that is annexed by any taxing unit after the effective
491	491	38 date of the allocation provision of the declaratory resolution is the
492	492	39 lesser of:
493	493	40 (1) the assessed value of the property for the assessment date with
494	494	41 respect to which the allocation and distribution is made; or
495	495	42 (2) the base assessed value.
496	496	2022 IN 1237—LS 6686/DI 125 12
497	497	1 (d) Property tax proceeds allocable to the redevelopment district
498	498	2 under subsection (b)(3) may, subject to subsection (b)(4), be
499	499	3 irrevocably pledged by the redevelopment district for payment as set
500	500	4 forth in subsection (b)(3).
501	501	5 (e) Notwithstanding any other law, each assessor shall, upon
502	502	6 petition of the redevelopment commission, reassess the taxable
503	503	7 property situated upon or in, or added to, the allocation area, effective
504	504	8 on the next assessment date after the petition.
505	505	9 (f) Notwithstanding any other law, the assessed value of all taxable
506	506	10 property in the allocation area, for purposes of tax limitation, property
507	507	11 tax replacement, and formulation of the budget, tax rate, and tax levy
508	508	12 for each political subdivision in which the property is located is the
509	509	13 lesser of:
510	510	14 (1) the assessed value of the property as valued without regard to
511	511	15 this section; or
512	512	16 (2) the base assessed value.
513	513	17 (g) If any part of the allocation area is located in an enterprise zone
514	514	18 created under IC 5-28-15, the unit that designated the allocation area
515	515	19 shall create funds as specified in this subsection. A unit that has
516	516	20 obligations, bonds, or leases payable from allocated tax proceeds under
517	517	21 subsection (b)(3) shall establish an allocation fund for the purposes
518	518	22 specified in subsection (b)(3) and a special zone fund. Such a unit
519	519	23 shall, until the end of the enterprise zone phase out period, deposit each
520	520	24 year in the special zone fund any amount in the allocation fund derived
521	521	25 from property tax proceeds in excess of those described in subsection
522	522	26 (b)(1) and (b)(2) from property located in the enterprise zone that
523	523	27 exceeds the amount sufficient for the purposes specified in subsection
524	524	28 (b)(3) for the year. The amount sufficient for purposes specified in
525	525	29 subsection (b)(3) for the year shall be determined based on the pro rata
526	526	30 portion of such current property tax proceeds from the part of the
527	527	31 enterprise zone that is within the allocation area as compared to all
528	528	32 such current property tax proceeds derived from the allocation area. A
529	529	33 unit that has no obligations, bonds, or leases payable from allocated tax
530	530	34 proceeds under subsection (b)(3) shall establish a special zone fund
531	531	35 and deposit all the property tax proceeds in excess of those described
532	532	36 in subsection (b)(1) and (b)(2) in the fund derived from property tax
533	533	37 proceeds in excess of those described in subsection (b)(1) and (b)(2)
534	534	38 from property located in the enterprise zone. The unit that creates the
535	535	39 special zone fund shall use the fund (based on the recommendations of
536	536	40 the urban enterprise association) for programs in job training, job
537	537	41 enrichment, and basic skill development that are designed to benefit
538	538	42 residents and employers in the enterprise zone or other purposes
539	539	2022 IN 1237—LS 6686/DI 125 13
540	540	1 specified in subsection (b)(3), except that where reference is made in
541	541	2 subsection (b)(3) to allocation area it shall refer for purposes of
542	542	3 payments from the special zone fund only to that part of the allocation
543	543	4 area that is also located in the enterprise zone. Those programs shall
544	544	5 reserve at least one-half (1/2) of their enrollment in any session for
545	545	6 residents of the enterprise zone.
546	546	7 (h) The state board of accounts and department of local government
547	547	8 finance shall make the rules and prescribe the forms and procedures
548	548	9 that they consider expedient for the implementation of this chapter.
549	549	10 After each reassessment in an area under a reassessment plan prepared
550	550	11 under IC 6-1.1-4-4.2, the department of local government finance shall
551	551	12 adjust the base assessed value one (1) time to neutralize any effect of
552	552	13 the reassessment of the real property in the area on the property tax
553	553	14 proceeds allocated to the redevelopment district under this section.
554	554	15 After each annual adjustment under IC 6-1.1-4-4.5, the department of
555	555	16 local government finance shall adjust the base assessed value one (1)
556	556	17 time to neutralize any effect of the annual adjustment on the property
557	557	18 tax proceeds allocated to the redevelopment district under this section.
558	558	19 However, the adjustments under this subsection:
559	559	20 (1) may not include the effect of phasing in assessed value due to
560	560	21 property tax abatements under IC 6-1.1-12.1;
561	561	22 (2) may not produce less property tax proceeds allocable to the
562	562	23 redevelopment district under subsection (b)(3) than would
563	563	24 otherwise have been received if the reassessment under the
564	564	25 reassessment plan or the annual adjustment had not occurred; and
565	565	26 (3) may decrease base assessed value only to the extent that
566	566	27 assessed values in the allocation area have been decreased due to
567	567	28 annual adjustments or the reassessment under the reassessment
568	568	29 plan.
569	569	30 Assessed value increases attributable to the application of an abatement
570	570	31 schedule under IC 6-1.1-12.1 may not be included in the base assessed
571	571	32 value of an allocation area. The department of local government
572	572	33 finance may prescribe procedures for county and township officials to
573	573	34 follow to assist the department in making the adjustments.
574	574	35 (i) The allocation deadline referred to in subsection (b) is
575	575	36 determined in the following manner:
576	576	37 (1) The initial allocation deadline is December 31, 2011.
577	577	38 (2) Subject to subdivision (3), the initial allocation deadline and
578	578	39 subsequent allocation deadlines are automatically extended in
579	579	40 increments of five (5) years, so that allocation deadlines
580	580	41 subsequent to the initial allocation deadline fall on December 31,
581	581	42 2016, and December 31 of each fifth year thereafter.
582	582	2022 IN 1237—LS 6686/DI 125 14
583	583	1 (3) At least one (1) year before the date of an allocation deadline
584	584	2 determined under subdivision (2), the general assembly may enact
585	585	3 a law that:
586	586	4 (A) terminates the automatic extension of allocation deadlines
587	587	5 under subdivision (2); and
588	588	6 (B) specifically designates a particular date as the final
589	589	7 allocation deadline.
590	590	8 (j) If a redevelopment commission adopts a declaratory resolution
591	591	9 or an amendment to a declaratory resolution that contains an allocation
592	592	10 provision and the redevelopment commission makes either of the
593	593	11 filings required under section 17(e) of this chapter after the first
594	594	12 anniversary of the effective date of the allocation provision, the auditor
595	595	13 of the county in which the unit is located shall compute the base
596	596	14 assessed value for the allocation area using the assessment date
597	597	15 immediately preceding the later of:
598	598	16 (1) the date on which the documents are filed with the county
599	599	17 auditor; or
600	600	18 (2) the date on which the documents are filed with the department
601	601	19 of local government finance.
602	602	20 SECTION 5. IC 36-7-25-7, AS ADDED BY P.L.182-2009(ss),
603	603	21 SECTION 513, IS AMENDED TO READ AS FOLLOWS
604	604	22 [EFFECTIVE JULY 1, 2022]: Sec. 7. (a) As used in this section,
605	605	23 "eligible entity" means a person whose principal functions include the
606	606	24 provision of:
607	607	25 (l) educational programs;
608	608	26 (2) work training programs;
609	609	27 (3) worker retraining programs; or
610	610	28 (4) any other programs;
611	611	29 designed to prepare individuals to participate in the competitive and
612	612	30 global economy.
613	613	31 (b) After making the findings set forth in subsection (c), a
614	614	32 commission, or two (2) or more commissions acting jointly, may
615	615	33 contract with an eligible entity to provide:
616	616	34 (1) educational programs;
617	617	35 (2) work training programs;
618	618	36 (3) worker retraining programs; or
619	619	37 (4) any other programs;
620	620	38 designed to prepare individuals to participate in the competitive and
621	621	39 global economy. In the case of an eligible entity that is a school
622	622	40 corporation, and subject to the approval of the fiscal body of the
623	623	41 unit that established the commission, revenues provided for a
624	624	42 program described in subdivisions (1) through (4) may also be used
625	625	2022 IN 1237—LS 6686/DI 125 15
626	626	1 by the school corporation to pay overhead and operational
627	627	2 expenditures, and nonoperational expenditures under IC 20-42.5,
628	628	3 of the school corporation.
629	629	4 (c) Before a commission may contract for a program described in
630	630	5 subsection (b), the commission must find that the program will promote
631	631	6 the redevelopment and economic development of the unit, is of utility
632	632	7 and benefit, and is in the best interests of the unit's residents.
633	633	8 (d) Except as provided in subsection (e), a commission may use any
634	634	9 revenues legally available to the commission to fund a program
635	635	10 described in subsection (b).
636	636	11 (e) A commission may not spend:
637	637	12 (1) bond proceeds; or
638	638	13 (2) more than fifteen percent (15%) of the allocated tax proceeds
639	639	14 it receives on an annual basis;
640	640	15 to fund a program described in subsection (b).
641	641	16 SECTION 6. IC 36-8-19-6, AS AMENDED BY P.L.14-2021,
642	642	17 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
643	643	18 JULY 1, 2022]: Sec. 6. (a) To establish or expand a fire protection
644	644	19 territory, the legislative bodies of each unit or fire protection district:
645	645	20 (1) desiring to establish a fire protection territory; or
646	646	21 (2) desiring to expand an existing fire protection territory by:
647	647	22 (A) becoming a participating unit in; or
648	648	23 (B) approving the addition of a participating unit in;
649	649	24 an existing fire protection territory;
650	650	25 must adopt an ordinance (in the case of a county or municipality) or a
651	651	26 resolution (in the case of a township or a fire protection district).
652	652	27 (b) The ordinance or resolution must meet the following
653	653	28 requirements:
654	654	29 (1) The ordinance or resolution is identical to the ordinances and
655	655	30 resolutions adopted by the other units or fire protection districts
656	656	31 desiring to establish or expand the proposed territory.
657	657	32 (2) The ordinance or resolution is adopted after January 1 but
658	658	33 before April 1.
659	659	34 (3) The ordinance or resolution authorizes the unit or fire
660	660	35 protection district to become a party to an agreement for the
661	661	36 establishment of a fire protection territory or the expansion of an
662	662	37 existing fire protection territory.
663	663	38 (4) An ordinance or resolution is adopted after the legislative
664	664	39 body holds at least three (3) public hearings to receive public
665	665	40 comment on the proposed ordinance or resolution as follows:
666	666	41 (A) At least one (1) public hearing must be held at least thirty
667	667	42 (30) days before the legislative body votes on the adoption of
668	668	2022 IN 1237—LS 6686/DI 125 16
669	669	1 the ordinance or resolution. At the hearing, the legislative
670	670	2 body shall make available to the public the information
671	671	3 required by subsection (c) concerning the fiscal impact of the
672	672	4 proposed fire protection territory.
673	673	5 (B) At least two (2) public hearings must be held after the
674	674	6 public hearing in clause (A), with the last public hearing held
675	675	7 not later than ten (10) days before the legislative body votes on
676	676	8 the adoption of the ordinance or resolution.
677	677	9 The legislative body must give notice of the hearings under
678	678	10 IC 5-3-1.
679	679	11 (c) The legislative body must make available to the public the
680	680	12 following information:
681	681	13 (1) The property tax levy, property tax rate, and budget to be
682	682	14 imposed or adopted during the first year of the proposed territory
683	683	15 for each of the units or fire protection districts that would
684	684	16 participate in the proposed territory. If a property tax rate is to
685	685	17 be implemented over a number of years as provided in section
686	686	18 7(c) of this chapter, the information under this subdivision
687	687	19 must include the amount of the intended property tax rate
688	688	20 after having been fully implemented.
689	689	21 (2) The estimated effect of the proposed reorganization in the
690	690	22 following years on taxpayers in each of the units or fire protection
691	691	23 districts that would participate in the proposed territory, including
692	692	24 the expected property tax rates, property tax levies, expenditure
693	693	25 levels, service levels, and annual debt service payments.
694	694	26 (3) The estimated effect of the proposed reorganization on other
695	695	27 units in the county in the following years and on local option
696	696	28 income taxes, excise taxes, and property tax circuit breaker
697	697	29 credits.
698	698	30 (4) A description of the planned services and staffing levels to be
699	699	31 provided in the proposed territory.
700	700	32 (5) A description of any capital improvements to be provided in
701	701	33 the proposed territory.
702	702	34 (d) The notice required for a hearing under subsection (b)(4) shall
703	703	35 include all of the following:
704	704	36 (1) A list of the provider unit and all participating units in the
705	705	37 proposed territory.
706	706	38 (2) The date, time, and location of the hearing.
707	707	39 (3) The location where the public can inspect the proposed
708	708	40 ordinance or resolution.
709	709	41 (4) A statement as to whether the proposed ordinance or
710	710	42 resolution requires uniform tax rates or different tax rates within
711	711	2022 IN 1237—LS 6686/DI 125 17
712	712	1 the territory.
713	713	2 (5) The name and telephone number of a representative of the unit
714	714	3 or fire protection district who may be contacted for further
715	715	4 information.
716	716	5 (6) The proposed levies and tax rates for each participating unit,
717	717	6 and whether a tax rate will be implemented over a number of
718	718	7 years under section 7(c) of this chapter.
719	719	8 (e) The ordinance or resolution adopted under this section shall
720	720	9 include at least the following:
721	721	10 (1) The boundaries of the proposed territory.
722	722	11 (2) The identity of the provider unit and all other participating
723	723	12 units desiring to be included within the territory.
724	724	13 (3) An agreement to impose:
725	725	14 (A) a uniform tax rate upon all of the taxable property within
726	726	15 the territory for fire protection services; or
727	727	16 (B) different tax rates for fire protection services for the units
728	728	17 or fire protection districts desiring to be included within the
729	729	18 territory, so long as a tax rate applies uniformly to all of a
730	730	19 unit's or fire protection district's taxable property within the
731	731	20 territory.
732	732	21 (4) An agreement as to how the property that is held by the
733	733	22 territory will be disposed of if:
734	734	23 (A) a participating unit withdraws from the territory; or
735	735	24 (B) the territory is dissolved.
736	736	25 (5) The contents of the agreement to establish the territory.
737	737	26 (f) An ordinance or a resolution adopted under this section takes
738	738	27 effect July 1 of the year the ordinance or resolution is adopted.
739	739	28 SECTION 7. IC 36-8-19-7, AS AMENDED BY P.L.255-2017,
740	740	29 SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
741	741	30 JULY 1, 2022]: Sec. 7. (a) A tax levied under this chapter may be
742	742	31 levied at:
743	743	32 (1) a uniform rate upon all taxable property within the territory;
744	744	33 or
745	745	34 (2) different rates for the participating units included within the
746	746	35 territory, so long as a tax rate applies uniformly to all of a unit's
747	747	36 or fire protection district's taxable property within the territory.
748	748	37 (b) If a uniform tax rate is levied upon all taxable property within a
749	749	38 territory upon the formation of the territory, different tax rates may be
750	750	39 levied for the participating units included within the territory in
751	751	40 subsequent years.
752	752	41 (c) This subsection applies to a territory established by an
753	753	42 ordinance or a resolution adopted under this chapter after
754	754	2022 IN 1237—LS 6686/DI 125 18
755	755	1 December 31, 2022. A total tax rate levied under this chapter upon
756	756	2 taxable property within a territory upon the formation of the
757	757	3 territory may be implemented over a number of years, not
758	758	4 exceeding five (5), and in a manner subject to review and approval
759	759	5 by the department of local government finance.
760	760	6 SECTION 8. IC 36-8-19-8, AS AMENDED BY P.L.183-2014,
761	761	7 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
762	762	8 JULY 1, 2022]: Sec. 8. (a) Upon the adoption of identical ordinances
763	763	9 or resolutions, or both, by the participating units under section 6 of this
764	764	10 chapter, the designated provider unit must establish a fire protection
765	765	11 territory fund from which all expenses of operating and maintaining the
766	766	12 fire protection services within the territory, including repairs, fees,
767	767	13 salaries, depreciation on all depreciable assets, rents, supplies,
768	768	14 contingencies, and all other expenses lawfully incurred within the
769	769	15 territory shall be paid. The purposes described in this subsection are the
770	770	16 sole purposes of the fund, and money in the fund may not be used for
771	771	17 any other expenses. Except as allowed in subsections (d) and (e) and
772	772	18 section 8.5 of this chapter, the provider unit is not authorized to transfer
773	773	19 money out of the fund at any time.
774	774	20 (b) The fund consists of the following:
775	775	21 (1) All receipts from the tax imposed under this section.
776	776	22 (2) Any money transferred to the fund by the provider unit as
777	777	23 authorized under subsection (d).
778	778	24 (3) Any receipts from a false alarm fee or service charge imposed
779	779	25 by the participating units under IC 36-8-13-4.
780	780	26 (4) Any money transferred to the fund by a participating unit
781	781	27 under section 8.6 of this chapter.
782	782	28 (c) The provider unit, with the assistance of each of the other
783	783	29 participating units, shall annually budget the necessary money to meet
784	784	30 the expenses of operation and maintenance of the fire protection
785	785	31 services within the territory. The provider unit may maintain a
786	786	32 reasonable balance, not to exceed one hundred twenty percent (120%)
787	787	33 of the budgeted expenses. Except as provided in IC 6-1.1-18.5-10.5,
788	788	34 and subject to section 7(c) of this chapter, after estimating expenses
789	789	35 and receipts of money, the provider unit shall establish the tax levy
790	790	36 required to fund the estimated budget. Subject to
791	791	37 IC 6-1.1-18.5-10.5(c), the amount budgeted under this subsection shall
792	792	38 be considered a part of each of the participating unit's budget.
793	793	39 (d) If the amount levied in a particular year is insufficient to cover
794	794	40 the costs incurred in providing fire protection services within the
795	795	41 territory, the provider unit may transfer from available sources to the
796	796	42 fire protection territory fund the money needed to cover those costs. In
797	797	2022 IN 1237—LS 6686/DI 125 19
798	798	1 this case:
799	799	2 (1) the levy in the following year shall be increased by the amount
800	800	3 required to be transferred; and
801	801	4 (2) the provider unit is entitled to transfer the amount described
802	802	5 in subdivision (1) from the fund as reimbursement to the provider
803	803	6 unit.
804	804	7 (e) If the amount levied in a particular year exceeds the amount
805	805	8 necessary to cover the costs incurred in providing fire protection
806	806	9 services within the territory, the levy in the following year shall be
807	807	10 reduced by the amount of surplus money that is not transferred to the
808	808	11 equipment replacement fund established under section 8.5 of this
809	809	12 chapter. The amount that may be transferred to the equipment
810	810	13 replacement fund may not exceed five percent (5%) of the levy for that
811	811	14 fund for that year. Each participating unit must agree to the amount to
812	812	15 be transferred by adopting an ordinance (if the unit is a county or
813	813	16 municipality) or a resolution (if the unit is a township) that specifies an
814	814	17 identical amount to be transferred.
815	815	18 (f) The tax under this section is subject to the tax levy limitations
816	816	19 imposed under IC 6-1.1-18.5-10.5.
817	817	20 SECTION 9. An emergency is declared for this act.
818	818	2022 IN 1237—LS 6686/DI 125