Introduced Version
HOUSE BILL No. 1237
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1; IC 36-7; IC 36-8-19.
Synopsis: Property taxation. Allows a total tax rate levied upon the
formation of a fire protection territory established after December 31,
2022, to be implemented over a number of years, not exceeding five,
and subject to review and approval by the department of local
government finance. Provides that the maximum permissible ad
valorem property tax levy that would otherwise apply to a participating
unit does not apply to property taxes imposed by the participating unit
to meet obligations to the fire protection territory over the period of
years in which a total tax rate is implemented. Provides that a
participating unit's proceeds of property taxes imposed to meet the
participating unit's obligations to a fire protection territory are exempt
from areas needing redevelopment, redevelopment project areas, urban
renewal project areas, economic development areas, or economic
development districts established after December 31, 2021. Provides
that incremental revenues may be used by a redevelopment commission
to pay operating costs, in whole or in part, of: (1) a unit's law
enforcement agency; (2) a unit's fire department, including a fire
protection district established under IC 36-8-11 or a fire protection
territory established under IC 36-8-19; and (3) emergency medical
services operated or maintained by a unit; that serve the allocation area.
Provides that incremental revenues shared by a redevelopment
commission with a school corporation for an education or worker
program may also be used by the school corporation to pay operating
costs of the school corporation.
Effective: January 1, 2022 (retroactive); July 1, 2022.
Cherry, Thompson
January 6, 2022, read first time and referred to Committee on Ways and Means.
2022 IN 1237—LS 6686/DI 125 Introduced
Second Regular Session of the 122nd General Assembly (2022)
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 2021 Regular Session of the General Assembly.
HOUSE BILL No. 1237
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-18.5-10.5, AS AMENDED BY P.L.159-2020,
2 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 10.5. (a) The ad valorem property tax levy limits
4 imposed by section 3 of this chapter do not apply to ad valorem
5 property taxes imposed by a civil taxing unit for fire protection services
6 within a fire protection territory under IC 36-8-19, if the civil taxing
7 unit is a participating unit in a fire protection territory established
8 before August 1, 2001. For purposes of computing the ad valorem
9 property tax levy limits imposed on a civil taxing unit by section 3 of
10 this chapter on a civil taxing unit that is a participating unit in a fire
11 protection territory, established before August 1, 2001, the civil taxing
12 unit's ad valorem property tax levy for a particular calendar year does
13 not include that part of the levy imposed under IC 36-8-19. Any
14 property taxes imposed by a civil taxing unit that are exempted by this
15 subsection from the ad valorem property tax levy limits imposed by
16 section 3 of this chapter and first due and payable after December 31,
17 2008, may not increase annually by a percentage greater than the result
2022 IN 1237—LS 6686/DI 125 2
1 of:
2 (1) the maximum levy growth quotient determined under section
3 2 of this chapter; minus
4 (2) one (1).
5 (b) The department of local government finance may, under this
6 subsection, increase the maximum permissible ad valorem property tax
7 levy that would otherwise apply to a civil taxing unit under section 3
8 of this chapter to meet the civil taxing unit's obligations to a fire
9 protection territory established under IC 36-8-19. To obtain an increase
10 in the civil taxing unit's maximum permissible ad valorem property tax
11 levy, a civil taxing unit shall submit a petition to the department of
12 local government finance in the year immediately preceding the first
13 year in which the civil taxing unit levies a tax to support the fire
14 protection territory. The petition must be filed before the date specified
15 in section 12(a)(1) of this chapter of that year. The department of local
16 government finance shall make a final determination of the civil taxing
17 unit's budget, ad valorem property tax levy, and property tax rate for the
18 fire protection territory for the ensuing calendar year. In making its
19 determination under this subsection, the department of local
20 government finance shall consider the amount that the civil taxing unit
21 is obligated to provide to meet the expenses of operation and
22 maintenance of the fire protection services within the territory,
23 including the participating unit's reasonable share of an operating
24 balance for the fire protection territory. The department of local
25 government finance shall determine the entire amount of the allowable
26 adjustment in the final determination. The department shall order the
27 adjustment implemented in the amounts and over the number of years,
28 not exceeding three (3), requested by the petitioning civil taxing unit.
29 However, the department of local government finance may not approve
30 under this subsection a property tax levy greater than zero (0) if the
31 civil taxing unit did not exist as of the assessment date for which the
32 tax levy will be imposed. For purposes of applying this subsection to
33 the civil taxing unit's maximum permissible ad valorem property tax
34 levy in subsequent calendar years, the department of local government
35 finance may determine not to consider part or all of the part of the
36 property tax levy imposed to establish the operating balance of the fire
37 protection territory.
38 (c) This subsection applies to a participating unit in a fire
39 protection territory established under IC 36-8-19 after December
40 31, 2022. Notwithstanding any other law, if a total tax rate levied
41 upon the formation of a fire protection territory established under
42 IC 36-8-19 is to be implemented over a number of years as
2022 IN 1237—LS 6686/DI 125 3
1 provided in IC 36-8-19-7(c), the maximum permissible ad valorem
2 property tax levy that would otherwise apply to a participating
3 unit under section 3 of this chapter to meet the participating unit's
4 obligations to a fire protection territory does not apply to ad
5 valorem property taxes imposed by the participating unit to meet
6 the participating unit's obligations to the fire protection territory
7 over the number of years in which the total tax rate is to be
8 implemented by each participating unit. For purposes of
9 calculating the maximum permissible ad valorem property tax levy
10 imposed by a participating unit for each year for which the
11 participating unit implements a total tax rate to support the fire
12 protection territory, the participating unit's maximum permissible
13 ad valorem property tax levy for the preceding calendar year
14 under IC 6-1.1-18.5-3(a) STEP ONE or IC 6-1.1-18.5-3(b) STEP
15 ONE is increased each year by an amount equal to the difference
16 between:
17 (1) the amount the participating unit will have to levy for the
18 ensuing calendar year in order to fund the participating unit's
19 share of the fire protection territory budget for the operating
20 costs as provided in the ordinance or resolution making the
21 unit a participating unit in the fire protection territory; and
22 (2) the participating unit's levy for fire protection services for
23 the calendar year that immediately precedes the ensuing
24 calendar year in which the participating unit levies a tax to
25 support the fire protection territory.
26 SECTION 2. IC 6-1.1-39-1 IS AMENDED TO READ AS
27 FOLLOWS [EFFECTIVE JANUARY 1, 2022 (RETROACTIVE)]:
28 Sec. 1. (a) This chapter applies to all counties, cities, and towns
29 (referred to in this chapter as units).
30 (b) Notwithstanding any other law, for economic development
31 districts established:
32 (1) after January 1, 1992, this chapter does not apply to fire
33 protection districts established under IC 36-8-11; and
34 (2) after December 31, 2021, this chapter does not apply to the
35 part of a participating unit's proceeds of property taxes
36 imposed for an assessment date with respect to which the
37 allocation and distribution is made that are attributable to
38 property taxes imposed to meet the participating unit's
39 obligations to a fire protection territory established under
40 IC 36-8-19.
41 SECTION 3. IC 36-7-14-1.7 IS ADDED TO THE INDIANA CODE
42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
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1 JANUARY 1, 2022 (RETROACTIVE)]: Sec. 1.7. Notwithstanding
2 any other law, for:
3 (1) areas needing redevelopment;
4 (2) redevelopment project areas;
5 (3) urban renewal project areas; or
6 (4) economic development areas;
7 established after December 31, 2021, this chapter does not apply to
8 the part of a participating unit's proceeds of property taxes
9 imposed for an assessment date with respect to which the allocation
10 and distribution is made that are attributable to property taxes
11 imposed to meet the participating unit's obligations to a fire
12 protection territory established under IC 36-8-19.
13 SECTION 4. IC 36-7-14-39, AS AMENDED BY P.L.38-2021,
14 SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2022]: Sec. 39. (a) As used in this section:
16 "Allocation area" means that part of a redevelopment project area
17 to which an allocation provision of a declaratory resolution adopted
18 under section 15 of this chapter refers for purposes of distribution and
19 allocation of property taxes.
20 "Base assessed value" means, subject to subsection (j), the
21 following:
22 (1) If an allocation provision is adopted after June 30, 1995, in a
23 declaratory resolution or an amendment to a declaratory
24 resolution establishing an economic development area:
25 (A) the net assessed value of all the property as finally
26 determined for the assessment date immediately preceding the
27 effective date of the allocation provision of the declaratory
28 resolution, as adjusted under subsection (h); plus
29 (B) to the extent that it is not included in clause (A), the net
30 assessed value of property that is assessed as residential
31 property under the rules of the department of local government
32 finance, within the allocation area, as finally determined for
33 the current assessment date.
34 (2) If an allocation provision is adopted after June 30, 1997, in a
35 declaratory resolution or an amendment to a declaratory
36 resolution establishing a redevelopment project area:
37 (A) the net assessed value of all the property as finally
38 determined for the assessment date immediately preceding the
39 effective date of the allocation provision of the declaratory
40 resolution, as adjusted under subsection (h); plus
41 (B) to the extent that it is not included in clause (A), the net
42 assessed value of property that is assessed as residential
2022 IN 1237—LS 6686/DI 125 5
1 property under the rules of the department of local government
2 finance, as finally determined for the current assessment date.
3 (3) If:
4 (A) an allocation provision adopted before June 30, 1995, in
5 a declaratory resolution or an amendment to a declaratory
6 resolution establishing a redevelopment project area expires
7 after June 30, 1997; and
8 (B) after June 30, 1997, a new allocation provision is included
9 in an amendment to the declaratory resolution;
10 the net assessed value of all the property as finally determined for
11 the assessment date immediately preceding the effective date of
12 the allocation provision adopted after June 30, 1997, as adjusted
13 under subsection (h).
14 (4) Except as provided in subdivision (5), for all other allocation
15 areas, the net assessed value of all the property as finally
16 determined for the assessment date immediately preceding the
17 effective date of the allocation provision of the declaratory
18 resolution, as adjusted under subsection (h).
19 (5) If an allocation area established in an economic development
20 area before July 1, 1995, is expanded after June 30, 1995, the
21 definition in subdivision (1) applies to the expanded part of the
22 area added after June 30, 1995.
23 (6) If an allocation area established in a redevelopment project
24 area before July 1, 1997, is expanded after June 30, 1997, the
25 definition in subdivision (2) applies to the expanded part of the
26 area added after June 30, 1997.
27 Except as provided in section 39.3 of this chapter, "property taxes"
28 means taxes imposed under IC 6-1.1 on real property. However, upon
29 approval by a resolution of the redevelopment commission adopted
30 before June 1, 1987, "property taxes" also includes taxes imposed
31 under IC 6-1.1 on depreciable personal property. If a redevelopment
32 commission adopted before June 1, 1987, a resolution to include within
33 the definition of property taxes, taxes imposed under IC 6-1.1 on
34 depreciable personal property that has a useful life in excess of eight
35 (8) years, the commission may by resolution determine the percentage
36 of taxes imposed under IC 6-1.1 on all depreciable personal property
37 that will be included within the definition of property taxes. However,
38 the percentage included must not exceed twenty-five percent (25%) of
39 the taxes imposed under IC 6-1.1 on all depreciable personal property.
40 (b) A declaratory resolution adopted under section 15 of this chapter
41 on or before the allocation deadline determined under subsection (i)
42 may include a provision with respect to the allocation and distribution
2022 IN 1237—LS 6686/DI 125 6
1 of property taxes for the purposes and in the manner provided in this
2 section. A declaratory resolution previously adopted may include an
3 allocation provision by the amendment of that declaratory resolution on
4 or before the allocation deadline determined under subsection (i) in
5 accordance with the procedures required for its original adoption. A
6 declaratory resolution or amendment that establishes an allocation
7 provision must include a specific finding of fact, supported by
8 evidence, that the adoption of the allocation provision will result in
9 new property taxes in the area that would not have been generated but
10 for the adoption of the allocation provision. For an allocation area
11 established before July 1, 1995, the expiration date of any allocation
12 provisions for the allocation area is June 30, 2025, or the last date of
13 any obligations that are outstanding on July 1, 2015, whichever is later.
14 A declaratory resolution or an amendment that establishes an allocation
15 provision after June 30, 1995, must specify an expiration date for the
16 allocation provision. For an allocation area established before July 1,
17 2008, the expiration date may not be more than thirty (30) years after
18 the date on which the allocation provision is established. For an
19 allocation area established after June 30, 2008, the expiration date may
20 not be more than twenty-five (25) years after the date on which the first
21 obligation was incurred to pay principal and interest on bonds or lease
22 rentals on leases payable from tax increment revenues. However, with
23 respect to bonds or other obligations that were issued before July 1,
24 2008, if any of the bonds or other obligations that were scheduled when
25 issued to mature before the specified expiration date and that are
26 payable only from allocated tax proceeds with respect to the allocation
27 area remain outstanding as of the expiration date, the allocation
28 provision does not expire until all of the bonds or other obligations are
29 no longer outstanding. Notwithstanding any other law, in the case of an
30 allocation area that is established after June 30, 2019, and that is
31 located in a redevelopment project area described in section
32 25.1(c)(3)(C) of this chapter, an economic development area described
33 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
34 area described in section 25.1(c)(3)(C) of this chapter, the expiration
35 date of the allocation provision may not be more than thirty-five (35)
36 years after the date on which the allocation provision is established.
37 The allocation provision may apply to all or part of the redevelopment
38 project area. The allocation provision must require that any property
39 taxes subsequently levied by or for the benefit of any public body
40 entitled to a distribution of property taxes on taxable property in the
41 allocation area be allocated and distributed as follows:
42 (1) Except as otherwise provided in this section, the proceeds of
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1 the taxes attributable to the lesser of:
2 (A) the assessed value of the property for the assessment date
3 with respect to which the allocation and distribution is made;
4 or
5 (B) the base assessed value;
6 shall be allocated to and, when collected, paid into the funds of
7 the respective taxing units.
8 (2) The excess of the proceeds of the property taxes imposed for
9 the assessment date with respect to which the allocation and
10 distribution is made that are attributable to taxes imposed after
11 being approved by the voters in a referendum or local public
12 question conducted after April 30, 2010, not otherwise included
13 in subdivision (1) shall be allocated to and, when collected, paid
14 into the funds of the taxing unit for which the referendum or local
15 public question was conducted.
16 (3) Except as otherwise provided in this section, property tax
17 proceeds in excess of those described in subdivisions (1) and (2)
18 shall be allocated to the redevelopment district and, when
19 collected, paid into an allocation fund for that allocation area that
20 may be used by the redevelopment district only to do one (1) or
21 more of the following:
22 (A) Pay the principal of and interest on any obligations
23 payable solely from allocated tax proceeds which are incurred
24 by the redevelopment district for the purpose of financing or
25 refinancing the redevelopment of that allocation area.
26 (B) Establish, augment, or restore the debt service reserve for
27 bonds payable solely or in part from allocated tax proceeds in
28 that allocation area.
29 (C) Pay the principal of and interest on bonds payable from
30 allocated tax proceeds in that allocation area and from the
31 special tax levied under section 27 of this chapter.
32 (D) Pay the principal of and interest on bonds issued by the
33 unit to pay for local public improvements that are physically
34 located in or physically connected to that allocation area.
35 (E) Pay premiums on the redemption before maturity of bonds
36 payable solely or in part from allocated tax proceeds in that
37 allocation area.
38 (F) Make payments on leases payable from allocated tax
39 proceeds in that allocation area under section 25.2 of this
40 chapter.
41 (G) Reimburse the unit for expenditures made by it for local
42 public improvements (which include buildings, parking
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1 facilities, and other items described in section 25.1(a) of this
2 chapter) that are physically located in or physically connected
3 to that allocation area.
4 (H) Reimburse the unit for rentals paid by it for a building or
5 parking facility that is physically located in or physically
6 connected to that allocation area under any lease entered into
7 under IC 36-1-10.
8 (I) For property taxes first due and payable before January 1,
9 2009, pay all or a part of a property tax replacement credit to
10 taxpayers in an allocation area as determined by the
11 redevelopment commission. This credit equals the amount
12 determined under the following STEPS for each taxpayer in a
13 taxing district (as defined in IC 6-1.1-1-20) that contains all or
14 part of the allocation area:
15 STEP ONE: Determine that part of the sum of the amounts
16 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
17 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
18 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
19 the taxing district.
20 STEP TWO: Divide:
21 (i) that part of each county's eligible property tax
22 replacement amount (as defined in IC 6-1.1-21-2 (before its
23 repeal)) for that year as determined under IC 6-1.1-21-4
24 (before its repeal) that is attributable to the taxing district;
25 by
26 (ii) the STEP ONE sum.
27 STEP THREE: Multiply:
28 (i) the STEP TWO quotient; times
29 (ii) the total amount of the taxpayer's taxes (as defined in
30 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
31 that have been allocated during that year to an allocation
32 fund under this section.
33 If not all the taxpayers in an allocation area receive the credit
34 in full, each taxpayer in the allocation area is entitled to
35 receive the same proportion of the credit. A taxpayer may not
36 receive a credit under this section and a credit under section
37 39.5 of this chapter (before its repeal) in the same year.
38 (J) Pay expenses incurred by the redevelopment commission
39 for local public improvements that are in the allocation area or
40 serving the allocation area. Public improvements include
41 buildings, parking facilities, and other items described in
42 section 25.1(a) of this chapter.
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1 (K) Reimburse public and private entities for expenses
2 incurred in training employees of industrial facilities that are
3 located:
4 (i) in the allocation area; and
5 (ii) on a parcel of real property that has been classified as
6 industrial property under the rules of the department of local
7 government finance.
8 However, the total amount of money spent for this purpose in
9 any year may not exceed the total amount of money in the
10 allocation fund that is attributable to property taxes paid by the
11 industrial facilities described in this clause. The
12 reimbursements under this clause must be made within three
13 (3) years after the date on which the investments that are the
14 basis for the increment financing are made.
15 (L) Pay the costs of carrying out an eligible efficiency project
16 (as defined in IC 36-9-41-1.5) within the unit that established
17 the redevelopment commission. However, property tax
18 proceeds may be used under this clause to pay the costs of
19 carrying out an eligible efficiency project only if those
20 property tax proceeds exceed the amount necessary to do the
21 following:
22 (i) Make, when due, any payments required under clauses
23 (A) through (K), including any payments of principal and
24 interest on bonds and other obligations payable under this
25 subdivision, any payments of premiums under this
26 subdivision on the redemption before maturity of bonds, and
27 any payments on leases payable under this subdivision.
28 (ii) Make any reimbursements required under this
29 subdivision.
30 (iii) Pay any expenses required under this subdivision.
31 (iv) Establish, augment, or restore any debt service reserve
32 under this subdivision.
33 (M) Expend money and provide financial assistance as
34 authorized in section 12.2(a)(27) of this chapter.
35 (N) Subject to approval by the fiscal body of the unit that
36 established the redevelopment commission, to pay the
37 operating costs, or a part of the operating costs, of:
38 (i) a unit's law enforcement agency;
39 (ii) a unit's fire department, including a fire protection
40 district established under IC 36-8-11 or a fire protection
41 territory established under IC 36-8-19; and
42 (iii) emergency medical services operated or maintained
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1 by a unit;
2 that serve, in whole or in part, the allocation area.
3 However, the amount of money spent annually for this
4 purpose may not exceed fifteen percent (15%) of the
5 allocated tax proceeds received on an annual basis.
6 The allocation fund may not be used for operating expenses of the
7 commission.
8 (4) Except as provided in subsection (g), before June 15 of each
9 year, the commission shall do the following:
10 (A) Determine the amount, if any, by which the assessed value
11 of the taxable property in the allocation area for the most
12 recent assessment date minus the base assessed value, when
13 multiplied by the estimated tax rate of the allocation area, will
14 exceed the amount of assessed value needed to produce the
15 property taxes necessary to make, when due, principal and
16 interest payments on bonds described in subdivision (3), plus
17 the amount necessary for other purposes described in
18 subdivision (3).
19 (B) Provide a written notice to the county auditor, the fiscal
20 body of the county or municipality that established the
21 department of redevelopment, and the officers who are
22 authorized to fix budgets, tax rates, and tax levies under
23 IC 6-1.1-17-5 for each of the other taxing units that is wholly
24 or partly located within the allocation area. The county auditor,
25 upon receiving the notice, shall forward this notice (in an
26 electronic format) to the department of local government
27 finance not later than June 15 of each year. The notice must:
28 (i) state the amount, if any, of excess assessed value that the
29 commission has determined may be allocated to the
30 respective taxing units in the manner prescribed in
31 subdivision (1); or
32 (ii) state that the commission has determined that there is no
33 excess assessed value that may be allocated to the respective
34 taxing units in the manner prescribed in subdivision (1).
35 The county auditor shall allocate to the respective taxing units
36 the amount, if any, of excess assessed value determined by the
37 commission. The commission may not authorize an allocation
38 of assessed value to the respective taxing units under this
39 subdivision if to do so would endanger the interests of the
40 holders of bonds described in subdivision (3) or lessors under
41 section 25.3 of this chapter.
42 (C) If:
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1 (i) the amount of excess assessed value determined by the
2 commission is expected to generate more than two hundred
3 percent (200%) of the amount of allocated tax proceeds
4 necessary to make, when due, principal and interest
5 payments on bonds described in subdivision (3); plus
6 (ii) the amount necessary for other purposes described in
7 subdivision (3);
8 the commission shall submit to the legislative body of the unit
9 its determination of the excess assessed value that the
10 commission proposes to allocate to the respective taxing units
11 in the manner prescribed in subdivision (1). The legislative
12 body of the unit may approve the commission's determination
13 or modify the amount of the excess assessed value that will be
14 allocated to the respective taxing units in the manner
15 prescribed in subdivision (1).
16 (5) Notwithstanding subdivision (4), in the case of an allocation
17 area that is established after June 30, 2019, and that is located in
18 a redevelopment project area described in section 25.1(c)(3)(C)
19 of this chapter, an economic development area described in
20 section 25.1(c)(3)(C) of this chapter, or an urban renewal project
21 area described in section 25.1(c)(3)(C) of this chapter, for each
22 year the allocation provision is in effect, if the amount of excess
23 assessed value determined by the commission under subdivision
24 (4)(A) is expected to generate more than two hundred percent
25 (200%) of:
26 (A) the amount of allocated tax proceeds necessary to make,
27 when due, principal and interest payments on bonds described
28 in subdivision (3) for the project; plus
29 (B) the amount necessary for other purposes described in
30 subdivision (3) for the project;
31 the amount of the excess assessed value that generates more than
32 two hundred percent (200%) of the amounts described in clauses
33 (A) and (B) shall be allocated to the respective taxing units in the
34 manner prescribed by subdivision (1).
35 (c) For the purpose of allocating taxes levied by or for any taxing
36 unit or units, the assessed value of taxable property in a territory in the
37 allocation area that is annexed by any taxing unit after the effective
38 date of the allocation provision of the declaratory resolution is the
39 lesser of:
40 (1) the assessed value of the property for the assessment date with
41 respect to which the allocation and distribution is made; or
42 (2) the base assessed value.
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1 (d) Property tax proceeds allocable to the redevelopment district
2 under subsection (b)(3) may, subject to subsection (b)(4), be
3 irrevocably pledged by the redevelopment district for payment as set
4 forth in subsection (b)(3).
5 (e) Notwithstanding any other law, each assessor shall, upon
6 petition of the redevelopment commission, reassess the taxable
7 property situated upon or in, or added to, the allocation area, effective
8 on the next assessment date after the petition.
9 (f) Notwithstanding any other law, the assessed value of all taxable
10 property in the allocation area, for purposes of tax limitation, property
11 tax replacement, and formulation of the budget, tax rate, and tax levy
12 for each political subdivision in which the property is located is the
13 lesser of:
14 (1) the assessed value of the property as valued without regard to
15 this section; or
16 (2) the base assessed value.
17 (g) If any part of the allocation area is located in an enterprise zone
18 created under IC 5-28-15, the unit that designated the allocation area
19 shall create funds as specified in this subsection. A unit that has
20 obligations, bonds, or leases payable from allocated tax proceeds under
21 subsection (b)(3) shall establish an allocation fund for the purposes
22 specified in subsection (b)(3) and a special zone fund. Such a unit
23 shall, until the end of the enterprise zone phase out period, deposit each
24 year in the special zone fund any amount in the allocation fund derived
25 from property tax proceeds in excess of those described in subsection
26 (b)(1) and (b)(2) from property located in the enterprise zone that
27 exceeds the amount sufficient for the purposes specified in subsection
28 (b)(3) for the year. The amount sufficient for purposes specified in
29 subsection (b)(3) for the year shall be determined based on the pro rata
30 portion of such current property tax proceeds from the part of the
31 enterprise zone that is within the allocation area as compared to all
32 such current property tax proceeds derived from the allocation area. A
33 unit that has no obligations, bonds, or leases payable from allocated tax
34 proceeds under subsection (b)(3) shall establish a special zone fund
35 and deposit all the property tax proceeds in excess of those described
36 in subsection (b)(1) and (b)(2) in the fund derived from property tax
37 proceeds in excess of those described in subsection (b)(1) and (b)(2)
38 from property located in the enterprise zone. The unit that creates the
39 special zone fund shall use the fund (based on the recommendations of
40 the urban enterprise association) for programs in job training, job
41 enrichment, and basic skill development that are designed to benefit
42 residents and employers in the enterprise zone or other purposes
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1 specified in subsection (b)(3), except that where reference is made in
2 subsection (b)(3) to allocation area it shall refer for purposes of
3 payments from the special zone fund only to that part of the allocation
4 area that is also located in the enterprise zone. Those programs shall
5 reserve at least one-half (1/2) of their enrollment in any session for
6 residents of the enterprise zone.
7 (h) The state board of accounts and department of local government
8 finance shall make the rules and prescribe the forms and procedures
9 that they consider expedient for the implementation of this chapter.
10 After each reassessment in an area under a reassessment plan prepared
11 under IC 6-1.1-4-4.2, the department of local government finance shall
12 adjust the base assessed value one (1) time to neutralize any effect of
13 the reassessment of the real property in the area on the property tax
14 proceeds allocated to the redevelopment district under this section.
15 After each annual adjustment under IC 6-1.1-4-4.5, the department of
16 local government finance shall adjust the base assessed value one (1)
17 time to neutralize any effect of the annual adjustment on the property
18 tax proceeds allocated to the redevelopment district under this section.
19 However, the adjustments under this subsection:
20 (1) may not include the effect of phasing in assessed value due to
21 property tax abatements under IC 6-1.1-12.1;
22 (2) may not produce less property tax proceeds allocable to the
23 redevelopment district under subsection (b)(3) than would
24 otherwise have been received if the reassessment under the
25 reassessment plan or the annual adjustment had not occurred; and
26 (3) may decrease base assessed value only to the extent that
27 assessed values in the allocation area have been decreased due to
28 annual adjustments or the reassessment under the reassessment
29 plan.
30 Assessed value increases attributable to the application of an abatement
31 schedule under IC 6-1.1-12.1 may not be included in the base assessed
32 value of an allocation area. The department of local government
33 finance may prescribe procedures for county and township officials to
34 follow to assist the department in making the adjustments.
35 (i) The allocation deadline referred to in subsection (b) is
36 determined in the following manner:
37 (1) The initial allocation deadline is December 31, 2011.
38 (2) Subject to subdivision (3), the initial allocation deadline and
39 subsequent allocation deadlines are automatically extended in
40 increments of five (5) years, so that allocation deadlines
41 subsequent to the initial allocation deadline fall on December 31,
42 2016, and December 31 of each fifth year thereafter.
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1 (3) At least one (1) year before the date of an allocation deadline
2 determined under subdivision (2), the general assembly may enact
3 a law that:
4 (A) terminates the automatic extension of allocation deadlines
5 under subdivision (2); and
6 (B) specifically designates a particular date as the final
7 allocation deadline.
8 (j) If a redevelopment commission adopts a declaratory resolution
9 or an amendment to a declaratory resolution that contains an allocation
10 provision and the redevelopment commission makes either of the
11 filings required under section 17(e) of this chapter after the first
12 anniversary of the effective date of the allocation provision, the auditor
13 of the county in which the unit is located shall compute the base
14 assessed value for the allocation area using the assessment date
15 immediately preceding the later of:
16 (1) the date on which the documents are filed with the county
17 auditor; or
18 (2) the date on which the documents are filed with the department
19 of local government finance.
20 SECTION 5. IC 36-7-25-7, AS ADDED BY P.L.182-2009(ss),
21 SECTION 513, IS AMENDED TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2022]: Sec. 7. (a) As used in this section,
23 "eligible entity" means a person whose principal functions include the
24 provision of:
25 (l) educational programs;
26 (2) work training programs;
27 (3) worker retraining programs; or
28 (4) any other programs;
29 designed to prepare individuals to participate in the competitive and
30 global economy.
31 (b) After making the findings set forth in subsection (c), a
32 commission, or two (2) or more commissions acting jointly, may
33 contract with an eligible entity to provide:
34 (1) educational programs;
35 (2) work training programs;
36 (3) worker retraining programs; or
37 (4) any other programs;
38 designed to prepare individuals to participate in the competitive and
39 global economy. In the case of an eligible entity that is a school
40 corporation, and subject to the approval of the fiscal body of the
41 unit that established the commission, revenues provided for a
42 program described in subdivisions (1) through (4) may also be used
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1 by the school corporation to pay overhead and operational
2 expenditures, and nonoperational expenditures under IC 20-42.5,
3 of the school corporation.
4 (c) Before a commission may contract for a program described in
5 subsection (b), the commission must find that the program will promote
6 the redevelopment and economic development of the unit, is of utility
7 and benefit, and is in the best interests of the unit's residents.
8 (d) Except as provided in subsection (e), a commission may use any
9 revenues legally available to the commission to fund a program
10 described in subsection (b).
11 (e) A commission may not spend:
12 (1) bond proceeds; or
13 (2) more than fifteen percent (15%) of the allocated tax proceeds
14 it receives on an annual basis;
15 to fund a program described in subsection (b).
16 SECTION 6. IC 36-8-19-6, AS AMENDED BY P.L.14-2021,
17 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2022]: Sec. 6. (a) To establish or expand a fire protection
19 territory, the legislative bodies of each unit or fire protection district:
20 (1) desiring to establish a fire protection territory; or
21 (2) desiring to expand an existing fire protection territory by:
22 (A) becoming a participating unit in; or
23 (B) approving the addition of a participating unit in;
24 an existing fire protection territory;
25 must adopt an ordinance (in the case of a county or municipality) or a
26 resolution (in the case of a township or a fire protection district).
27 (b) The ordinance or resolution must meet the following
28 requirements:
29 (1) The ordinance or resolution is identical to the ordinances and
30 resolutions adopted by the other units or fire protection districts
31 desiring to establish or expand the proposed territory.
32 (2) The ordinance or resolution is adopted after January 1 but
33 before April 1.
34 (3) The ordinance or resolution authorizes the unit or fire
35 protection district to become a party to an agreement for the
36 establishment of a fire protection territory or the expansion of an
37 existing fire protection territory.
38 (4) An ordinance or resolution is adopted after the legislative
39 body holds at least three (3) public hearings to receive public
40 comment on the proposed ordinance or resolution as follows:
41 (A) At least one (1) public hearing must be held at least thirty
42 (30) days before the legislative body votes on the adoption of
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1 the ordinance or resolution. At the hearing, the legislative
2 body shall make available to the public the information
3 required by subsection (c) concerning the fiscal impact of the
4 proposed fire protection territory.
5 (B) At least two (2) public hearings must be held after the
6 public hearing in clause (A), with the last public hearing held
7 not later than ten (10) days before the legislative body votes on
8 the adoption of the ordinance or resolution.
9 The legislative body must give notice of the hearings under
10 IC 5-3-1.
11 (c) The legislative body must make available to the public the
12 following information:
13 (1) The property tax levy, property tax rate, and budget to be
14 imposed or adopted during the first year of the proposed territory
15 for each of the units or fire protection districts that would
16 participate in the proposed territory. If a property tax rate is to
17 be implemented over a number of years as provided in section
18 7(c) of this chapter, the information under this subdivision
19 must include the amount of the intended property tax rate
20 after having been fully implemented.
21 (2) The estimated effect of the proposed reorganization in the
22 following years on taxpayers in each of the units or fire protection
23 districts that would participate in the proposed territory, including
24 the expected property tax rates, property tax levies, expenditure
25 levels, service levels, and annual debt service payments.
26 (3) The estimated effect of the proposed reorganization on other
27 units in the county in the following years and on local option
28 income taxes, excise taxes, and property tax circuit breaker
29 credits.
30 (4) A description of the planned services and staffing levels to be
31 provided in the proposed territory.
32 (5) A description of any capital improvements to be provided in
33 the proposed territory.
34 (d) The notice required for a hearing under subsection (b)(4) shall
35 include all of the following:
36 (1) A list of the provider unit and all participating units in the
37 proposed territory.
38 (2) The date, time, and location of the hearing.
39 (3) The location where the public can inspect the proposed
40 ordinance or resolution.
41 (4) A statement as to whether the proposed ordinance or
42 resolution requires uniform tax rates or different tax rates within
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1 the territory.
2 (5) The name and telephone number of a representative of the unit
3 or fire protection district who may be contacted for further
4 information.
5 (6) The proposed levies and tax rates for each participating unit,
6 and whether a tax rate will be implemented over a number of
7 years under section 7(c) of this chapter.
8 (e) The ordinance or resolution adopted under this section shall
9 include at least the following:
10 (1) The boundaries of the proposed territory.
11 (2) The identity of the provider unit and all other participating
12 units desiring to be included within the territory.
13 (3) An agreement to impose:
14 (A) a uniform tax rate upon all of the taxable property within
15 the territory for fire protection services; or
16 (B) different tax rates for fire protection services for the units
17 or fire protection districts desiring to be included within the
18 territory, so long as a tax rate applies uniformly to all of a
19 unit's or fire protection district's taxable property within the
20 territory.
21 (4) An agreement as to how the property that is held by the
22 territory will be disposed of if:
23 (A) a participating unit withdraws from the territory; or
24 (B) the territory is dissolved.
25 (5) The contents of the agreement to establish the territory.
26 (f) An ordinance or a resolution adopted under this section takes
27 effect July 1 of the year the ordinance or resolution is adopted.
28 SECTION 7. IC 36-8-19-7, AS AMENDED BY P.L.255-2017,
29 SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2022]: Sec. 7. (a) A tax levied under this chapter may be
31 levied at:
32 (1) a uniform rate upon all taxable property within the territory;
33 or
34 (2) different rates for the participating units included within the
35 territory, so long as a tax rate applies uniformly to all of a unit's
36 or fire protection district's taxable property within the territory.
37 (b) If a uniform tax rate is levied upon all taxable property within a
38 territory upon the formation of the territory, different tax rates may be
39 levied for the participating units included within the territory in
40 subsequent years.
41 (c) This subsection applies to a territory established by an
42 ordinance or a resolution adopted under this chapter after
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1 December 31, 2022. A total tax rate levied under this chapter upon
2 taxable property within a territory upon the formation of the
3 territory may be implemented over a number of years, not
4 exceeding five (5), and in a manner subject to review and approval
5 by the department of local government finance.
6 SECTION 8. IC 36-8-19-8, AS AMENDED BY P.L.183-2014,
7 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2022]: Sec. 8. (a) Upon the adoption of identical ordinances
9 or resolutions, or both, by the participating units under section 6 of this
10 chapter, the designated provider unit must establish a fire protection
11 territory fund from which all expenses of operating and maintaining the
12 fire protection services within the territory, including repairs, fees,
13 salaries, depreciation on all depreciable assets, rents, supplies,
14 contingencies, and all other expenses lawfully incurred within the
15 territory shall be paid. The purposes described in this subsection are the
16 sole purposes of the fund, and money in the fund may not be used for
17 any other expenses. Except as allowed in subsections (d) and (e) and
18 section 8.5 of this chapter, the provider unit is not authorized to transfer
19 money out of the fund at any time.
20 (b) The fund consists of the following:
21 (1) All receipts from the tax imposed under this section.
22 (2) Any money transferred to the fund by the provider unit as
23 authorized under subsection (d).
24 (3) Any receipts from a false alarm fee or service charge imposed
25 by the participating units under IC 36-8-13-4.
26 (4) Any money transferred to the fund by a participating unit
27 under section 8.6 of this chapter.
28 (c) The provider unit, with the assistance of each of the other
29 participating units, shall annually budget the necessary money to meet
30 the expenses of operation and maintenance of the fire protection
31 services within the territory. The provider unit may maintain a
32 reasonable balance, not to exceed one hundred twenty percent (120%)
33 of the budgeted expenses. Except as provided in IC 6-1.1-18.5-10.5,
34 and subject to section 7(c) of this chapter, after estimating expenses
35 and receipts of money, the provider unit shall establish the tax levy
36 required to fund the estimated budget. Subject to
37 IC 6-1.1-18.5-10.5(c), the amount budgeted under this subsection shall
38 be considered a part of each of the participating unit's budget.
39 (d) If the amount levied in a particular year is insufficient to cover
40 the costs incurred in providing fire protection services within the
41 territory, the provider unit may transfer from available sources to the
42 fire protection territory fund the money needed to cover those costs. In
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1 this case:
2 (1) the levy in the following year shall be increased by the amount
3 required to be transferred; and
4 (2) the provider unit is entitled to transfer the amount described
5 in subdivision (1) from the fund as reimbursement to the provider
6 unit.
7 (e) If the amount levied in a particular year exceeds the amount
8 necessary to cover the costs incurred in providing fire protection
9 services within the territory, the levy in the following year shall be
10 reduced by the amount of surplus money that is not transferred to the
11 equipment replacement fund established under section 8.5 of this
12 chapter. The amount that may be transferred to the equipment
13 replacement fund may not exceed five percent (5%) of the levy for that
14 fund for that year. Each participating unit must agree to the amount to
15 be transferred by adopting an ordinance (if the unit is a county or
16 municipality) or a resolution (if the unit is a township) that specifies an
17 identical amount to be transferred.
18 (f) The tax under this section is subject to the tax levy limitations
19 imposed under IC 6-1.1-18.5-10.5.
20 SECTION 9. An emergency is declared for this act.
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