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 ENROLLED ACT No. 1260
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-12-1-18, AS AMENDED BY P.L.165-2021,
SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 18. Except for allotment stipulations provided
in IC 4-12-18, federal funds received by an instrumentality are
appropriated for purposes specified by the federal government and the
general assembly, if that body elects to appropriate federal funds,
subject to allotment by the budget agency. The provisions of this
chapter and other laws concerning the acceptance, disbursement,
review, and approval of grants, loans, and gifts made by the federal
government or any other source to the state or its agencies apply to
instrumentalities.
SECTION 2. IC 4-12-18-4, AS ADDED BY P.L.64-2021,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) There is created the economic stimulus
fund. Within the economic stimulus fund the auditor of state shall
create a separate account for each separate federal stimulus legislation
enacted. All discretionary funds received by the state must be deposited
in the corresponding account within the economic stimulus fund unless
prohibited by federal law.
(b) The economic stimulus fund is separate from the state general
fund and all other state funds and accounts.
(c) For purposes of SECTION 26 of P.L.165-2021, "deposit"
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means to comply with the purposes, eligible uses, and stipulations
of the statutory fund referenced unless federal law or regulations
conflict with the statutory fund purposes, eligible uses, and
stipulations.
SECTION 3. IC 4-12-18-5, AS ADDED BY P.L.64-2021,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 5. Discretionary funds deposited into the an
economic stimulus fund during a period in which the general assembly
is convened in a regular session, an emergency session under
IC 2-2.1-1.2, or a special session may not be allotted or expended
unless appropriated by the general assembly or reviewed by the budget
committee. Appropriations made by the general assembly do not
revert until the end of the biennium in which they are
appropriated.
SECTION 4. IC 4-12-18-6, AS ADDED BY P.L.64-2021,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 6. Before discretionary funds deposited into the
an economic stimulus fund during a period in which the general
assembly is not convened in a regular session, an emergency session
under IC 2-2.1-1.2, or a special session may be allotted to or expended
by a state agency or instrumentality, the allotment or expenditure must
be reviewed by the budget committee. Money is considered
continuously appropriated for the period of the federal award after
budget committee review.
SECTION 5. IC 4-30-3-20 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 20. (a) This section does not apply to:
(1) an activity specifically authorized by:
(A) IC 4-29 or IC 4-29.5 (tribal gaming and tribal-state
compact);
(B) IC 4-31 (pari-mutuel wagering on horse races);
(C) IC 4-33 (riverboat gambling);
(D) IC 4-35 (gambling games at racetracks); or
(E) IC 4-38 (sports wagering);
(2) the purchase of a tangible lottery ticket for a lottery game
from:
(A) a retailer authorized to sell lottery tickets under
IC 4-30-9; or
(B) the commission; or
(3) a free:
(A) interactive game; or
(B) promotional game;
offered by the commission.
(b) Unless specifically granted authority by a statute passed by
the general assembly, the commission and Indiana gaming
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commission shall not, independently or by public-private
partnership, operate or authorize the use or operation of the
following:
(1) A lottery game operated through a video lottery terminal.
(2) A video gaming terminal.
(3) The sale of digital representations of:
(A) casino-style games, including:
(i) poker;
(ii) roulette;
(iii) slot machines; or
(iv) blackjack;
over the Internet; or
(B) scratch-off games.
SECTION 6. IC 6-1.1-3-7, AS AMENDED BY P.L.108-2019,
SECTION 101, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2023]: Sec. 7. (a) Except as provided in
subsections (b), and (c), and (f), a taxpayer shall, on or before the filing
date of each year, file a personal property return with:
(1) the assessor of each township in which the taxpayer's personal
property is subject to assessment;
(2) the county assessor if there is no township assessor for a
township in which the taxpayer's personal property is subject to
assessment; or
(3) after 2020, the personal property online submission portal
developed and maintained by the department under section 26 of
this chapter.
(b) The township assessor or county assessor may grant a taxpayer
an extension of not more than thirty (30) days to file the taxpayer's
return if:
(1) the taxpayer submits a written or an electronic application for
an extension prior to the filing date; and
(2) the taxpayer is prevented from filing a timely return because
of sickness, absence from the county, or any other good and
sufficient reason.
(c) If a taxpayer:
(1) has personal property subject to assessment in more than one
(1) township in a county; or
(2) has personal property that is subject to assessment and that is
located in two (2) or more taxing districts within the same
township;
the taxpayer shall file a single return with the county assessor and
attach a schedule listing, by township, all the taxpayer's personal
property and the property's assessed value. The taxpayer shall provide
the county assessor with the information necessary for the county
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assessor to allocate the assessed value of the taxpayer's personal
property among the townships listed on the return and among taxing
districts, including the street address, the township, and the location of
the property. The taxpayer may, in the alternative, submit the taxpayer's
personal property information and the property's assessed value
through the personal property online submission portal developed
under section 26 of this chapter.
(d) The county assessor shall provide to each affected township
assessor (if any) in the county all information filed by a taxpayer under
subsection (c) that affects the township.
(e) The county assessor may refuse to accept a personal property tax
return that does not comply with subsection (c). For purposes of
IC 6-1.1-37-7, a return to which subsection (c) applies is filed on the
date it is filed with the county assessor with the schedule required by
subsection (c) attached.
(f) This subsection applies to a church or religious society that:
(1) has filed a personal property tax return under this section
for each of the five (5) years preceding a year; and
(2) on each of the returns described in subdivision (1) has not
owed any tax liability due to exemptions under IC 6-1.1 for
which the church or religious society has been deemed
eligible.
Notwithstanding any other law, a church or religious society is not
required to file a personal property tax return for a year after the
five (5) year period described in subdivision (1) unless there is a
change in ownership of any personal property included on a return
described in subdivision (1), or any other change that results in the
personal property no longer being eligible for an exemption under
IC 6-1.1, or the church or religious society would otherwise be
liable for property tax imposed on personal property owned by the
church or religious society.
SECTION 7. IC 6-1.1-4-4.4 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 4.4. (a) This section applies to an assessment under
section 4.2 or 4.5 of this chapter or another law.
(b) If the assessor changes the underlying parcel characteristics,
including age, grade, or condition, of a property, from the previous
year's assessment date, the assessor shall document:
(1) each change; and
(2) the reason that each change was made.
In any appeal of the assessment, the assessor has the burden of proving
that each change was valid.
SECTION 8. IC 6-1.1-4-25, AS AMENDED BY P.L.159-2020,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 25. (a) Each township assessor and each county
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assessor shall keep the assessor's reassessment data and records current
by securing the necessary field data and by making changes in the
assessed value of real property as changes occur in the use of the real
property. The township or county assessor's records shall at all times
show the assessed value of real property in accordance with this
chapter. The township assessor shall ensure that the county assessor
has full access to the assessment records maintained by the township
assessor.
(b) The county assessor shall:
(1) maintain an electronic data file of:
(A) the parcel characteristics and parcel assessments of all
parcels; and
(B) the personal property return characteristics and
assessments by return;
for each township in the county as of each assessment date;
(2) maintain the electronic file in a form that formats the
information in the file with the standard data, field, and record
coding required and approved by:
(A) the legislative services agency; and
(B) the department of local government finance; and
(3) provide electronic access to property record cards on the
official county Internet web site; and
(3) (4) before September 1 of each year, transmit the data in the
file with respect to the assessment date of that year to the
department of local government finance.
(c) The appropriate county officer, as designated by the county
executive, shall:
(1) maintain an electronic data file of the geographic information
system characteristics of each parcel for each township in the
county as of each assessment date;
(2) maintain the electronic file in a form that formats the
information in the file with the standard data, field, and record
coding required and approved by the office of technology; and
(3) before September 1 of each year, transmit the data in the file
with respect to the assessment date of that year to the geographic
information office of the office of technology.
(d) An assessor under subsection (b) and an appropriate county
officer under subsection (c) shall do the following:
(1) Transmit the data in a manner that meets the data export and
transmission requirements in a standard format, as prescribed by
the office of technology established by IC 4-13.1-2-1 and
approved by the legislative services agency.
(2) Resubmit the data in the form and manner required under
subsection (b) or (c) upon request of the legislative services
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agency, the department of local government finance, or the
geographic information office of the office of technology, as
applicable, if data previously submitted under subsection (b) or
(c) does not comply with the requirements of subsection (b) or (c),
as determined by the legislative services agency, the department
of local government finance, or the geographic information office
of the office of technology, as applicable.
An electronic data file maintained for a particular assessment date may
not be overwritten with data for a subsequent assessment date until a
copy of an electronic data file that preserves the data for the particular
assessment date is archived in the manner prescribed by the office of
technology established by IC 4-13.1-2-1 and approved by the
legislative services agency.
SECTION 9. IC 6-1.1-8-25.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 25.5. (a) A township assessor or
county assessor (whichever is applicable) shall notify the
department of local government finance of all new fixed property
that the township assessor, or the county assessor if there is no
township assessor for the township, will begin assessing under
section 24 of this chapter and the assessment date on which the
township assessor or county assessor will begin assessing the new
fixed property under section 24 of this chapter.
(b) The department of local government finance shall notify a
company subject to taxation under this chapter if any of the
company's property that was previously assessed by the
department of local government finance under this chapter will
instead be assessed by the township assessor, or the county assessor
if there is not a township assessor for the township, under this
chapter.
SECTION 10. IC 6-1.1-8-27, AS AMENDED BY P.L.148-2015,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 27. (a) On or before July 1, for years ending
before January 1, 2017, and on or before June 15 for years beginning
after December 31, 2016, the department of local government finance
shall certify to the county assessor and the county auditor of each
county the distributable property assessed values which the department
determines are distributable to the taxing districts of the county. In
addition, if a public utility company has appealed the department of
local government finance's assessment of the company's distributable
property, the department shall notify the county auditor of the appeal.
(b) The county assessor shall review the department of local
government finance's certification under subsection (a) to determine if
any of a public utility company's property which has a definite situs in
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the county has been omitted. The county auditor shall enter for taxation
the assessed valuation of a public utility company's distributable
property which the department distributes to a taxing district of the
county.
(c) The county assessor may exempt designated infrastructure
development zone broadband assets. This includes the eligible
broadband infrastructure assets located in a designated
infrastructure development zone of a centrally assessed telephone
company or cable company (as defined in section 2(15) of this
chapter).
(d) A centrally assessed telephone company or cable company
(as defined in section 2(15) of this chapter) that makes eligible
infrastructure investments in a designated infrastructure
development zone established under the provisions of
IC 6-1.1-12.5-5 in facilities and technologies used:
(1) in the deployment and transmission of broadband service;
(2) in advanced services that increase the availability of
broadband service;
(3) in advanced service; or
(4) under any combination of subdivisions (1), (2), or (3);
is exempt from property taxation as set forth under
IC 6-1.1-12.5-5.
(e) Upon conclusion of the certification process by the
department of local government finance under this section, the
centrally assessed telephone company or cable company (as defined
in section 2(15) of this chapter) shall produce and submit, not later
than July 1 of each assessment year, an annual report to the county
assessor that includes sufficient information necessary for the
county assessor or county auditor to identify the broadband
infrastructure investments that are eligible to be exempt from
property taxes.
(f) The county auditor shall reduce the department of local
government finance's certified values for each applicable state
assessed personal property record that qualifies for the exemption
prior to the certification of the county's net assessed values to the
department. This shall include the certified values for the centrally
assessed telephone company or cable company (as defined in
section 2(15) of this chapter.
SECTION 11. IC 6-1.1-11-4, AS AMENDED BY P.L.159-2020,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) The exemption application referred to
in section 3 of this chapter is not required if the exempt property is
owned by the United States, the state, an agency of this state, or a
political subdivision (as defined in IC 36-1-2-13). However, this
subsection applies only when the property is used, and in the case of
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real property occupied, by the owner.
(b) The exemption application referred to in section 3 of this chapter
is not required if the exempt property is a cemetery:
(1) described by IC 6-1.1-2-7; or
(2) maintained by a township executive under IC 23-14-68.
(c) The exemption application referred to in section 3 of this chapter
is not required if the exempt property is owned by the bureau of motor
vehicles commission established under IC 9-14-9.
(d) The exemption application referred to in section 3 or 3.5 of this
chapter is not required if:
(1) the exempt property is:
(A) tangible property used for religious purposes described in
IC 6-1.1-10-21;
(B) tangible property owned by a church or religious society
used for educational purposes described in IC 6-1.1-10-16;
(C) other tangible property owned, occupied, and used by a
person for educational, literary, scientific, religious, or
charitable purposes described in IC 6-1.1-10-16; or
(D) other tangible property owned by a fraternity or sorority
(as defined in IC 6-1.1-10-24);
(2) the exemption application referred to in section 3 or 3.5 of this
chapter was filed properly at least once for a religious use under
IC 6-1.1-10-21, an educational, literary, scientific, religious, or
charitable use under IC 6-1.1-10-16, or use by a fraternity or
sorority under IC 6-1.1-10-24; and
(3) the property continues to meet the requirements for an
exemption under IC 6-1.1-10-16, IC 6-1.1-10-21, or
IC 6-1.1-10-24.
(e) If, after an assessment date, an exempt property is transferred or
its use is changed resulting in its ineligibility for an exemption under
IC 6-1.1-10, the county assessor shall terminate the exemption for the
next assessment date. However, if the property remains eligible for an
exemption under IC 6-1.1-10 following the transfer or change in use,
the exemption shall be left in place for that assessment date. For the
following assessment date, the person that obtained the exemption or
the current owner of the property, as applicable, shall, under section 3
of this chapter and except as provided in this section, file a certified
application in duplicate with the county assessor of the county in which
the property that is the subject of the exemption is located. In all cases,
the person that obtained the exemption or the current owner of the
property shall notify the county assessor for the county where the
tangible property is located of the change in ownership or use in the
year that the change occurs. The notice must be in the form prescribed
by the department of local government finance.
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(f) If the county assessor discovers that title to or use of property
granted an exemption under IC 6-1.1-10 has changed, the county
assessor shall notify the persons entitled to a tax statement under
IC 6-1.1-22-8.1 for the property of the change in title or use and
indicate that the county auditor will suspend the exemption for the
property until the persons provide the county assessor with an affidavit,
signed under penalties of perjury, that identifies the new owners or use
of the property and indicates whether the property continues to meet
the requirements for an exemption under IC 6-1.1-10. Upon receipt of
the affidavit, the county assessor shall reinstate the exemption under
IC 6-1.1-15-12.1. However, a claim under IC 6-1.1-26-1.1 for a refund
of all or a part of a tax installment paid and any correction of error
under IC 6-1.1-15-12.1 must be filed not later than three (3) years after
the taxes are first due.
(g) This section shall not be construed to limit the authority of
the county property tax assessment board of appeals to review the
ongoing eligibility of a property for an exemption. A county
property tax assessment board of appeals shall disapprove an
exemption application in any year following the initial approval of
the application if the property is not eligible for an exemption.
SECTION 12. IC 6-1.1-12-1 IS REPEALED [EFFECTIVE
JANUARY 1, 2023]. Sec. 1. (a) The following definitions apply
throughout this section:
(1) "Installment loan" means a loan under which:
(A) a lender advances money for the purchase of:
(i) a mobile home that is not assessed as real property; or
(ii) a manufactured home that is not assessed as real
property; and
(B) a borrower repays the lender in installments in accordance
with the terms of an installment agreement.
(2) "Mortgage" means a lien against property that:
(A) an owner of the property grants to secure an obligation,
such as a debt, according to terms set forth in a written
instrument, such as a deed or a contract; and
(B) is extinguished upon payment or performance according
to the terms of the written instrument.
The term includes a reverse mortgage.
(b) Each year a person who is a resident of this state may receive a
deduction from the assessed value of:
(1) mortgaged real property, an installment loan financed mobile
home that is not assessed as real property, or an installment loan
financed manufactured home that is not assessed as real property,
with the mortgage or installment loan instrument recorded with
the county recorder's office, that the person owns;
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(2) real property, a mobile home that is not assessed as real
property, or a manufactured home that is not assessed as real
property that the person is buying under a contract, with the
contract or a memorandum of the contract recorded in the county
recorder's office, which provides that the person is to pay the
property taxes on the real property, mobile home, or manufactured
home; or
(3) real property, a mobile home that is not assessed as real
property, or a manufactured home that the person owns or is
buying on a contract described in subdivision (2) on which the
person has a home equity line of credit that is recorded in the
county recorder's office.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction which the person may receive under this
section for a particular year is:
(1) the balance of the mortgage or contract indebtedness
(including a home equity line of credit) on the assessment date of
that year;
(2) one-half (1/2) of the assessed value of the real property,
mobile home, or manufactured home; or
(3) three thousand dollars ($3,000);
whichever is least.
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract which provides that the contract
buyer is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
(e) The person must:
(1) own the real property, mobile home, or manufactured home;
or
(2) be buying the real property, mobile home, or manufactured
home under contract;
on the date the statement is filed under section 2 of this chapter.
SECTION 13. IC 6-1.1-12-2 IS REPEALED [EFFECTIVE
JANUARY 1, 2023]. Sec. 2. (a) Except as provided in section 17.8 of
this chapter and subject to section 45 of this chapter, for a person to
qualify for the deduction provided by section 1 of this chapter a
statement must be filed under subsection (b) or (c). Regardless of the
manner in which a statement is filed, the mortgage, contract, or
memorandum (including a home equity line of credit) must be recorded
with the county recorder's office to qualify for a deduction under
section 1 of this chapter.
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(b) Subject to subsection (c), to apply for the deduction under
section 1 of this chapter with respect to real property, the person
recording the mortgage, home equity line of credit, contract, or
memorandum of the contract with the county recorder may file a
written statement with the county recorder containing the information
described in subsection (e)(1), (e)(2), (e)(3), (e)(4), (e)(6), (e)(7), and
(e)(8). The statement must be prepared on the form prescribed by the
department of local government finance and be signed by the property
owner or contract purchaser under the penalties of perjury. The form
must have a place for the county recorder to insert the record number
and page where the mortgage, home equity line of credit, contract, or
memorandum of the contract is recorded. Upon receipt of the form and
the recording of the mortgage, home equity line of credit, contract, or
memorandum of the contract, the county recorder shall insert on the
form the record number and page where the mortgage, home equity line
of credit, contract, or memorandum of the contract is recorded and
forward the completed form to the county auditor. The county recorder
may not impose a charge for the county recorder's duties under this
subsection. The statement must be completed and dated in the calendar
year for which the person wishes to obtain the deduction and filed with
the county recorder on or before January 5 of the immediately
succeeding calendar year.
(c) With respect to:
(1) real property as an alternative to a filing under subsection (b);
or
(2) a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property;
to apply for a deduction under section 1 of this chapter, a person who
desires to claim the deduction may file a statement in duplicate, on
forms prescribed by the department of local government finance, with
the auditor of the county in which the real property, mobile home not
assessed as real property, or manufactured home not assessed as real
property is located. To obtain the deduction for a desired calendar year
in which property taxes are first due and payable, the statement must
be completed and dated in the immediately preceding calendar year
and filed with the county auditor on or before January 5 of the calendar
year in which the property taxes are first due and payable. The
statement may be filed in person or by mail. If mailed, the mailing must
be postmarked on or before the last day for filing. In addition to the
statement required by this subsection, a contract buyer who desires to
claim the deduction must submit a copy of the recorded contract or
recorded memorandum of the contract, which must contain a legal
description sufficient to meet the requirements of IC 6-1.1-5, with the
first statement that the buyer files under this section with respect to a
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particular parcel of real property.
(d) Upon receipt of:
(1) the statement under subsection (b); or
(2) the statement under subsection (c) and the recorded contract
or recorded memorandum of the contract;
the county auditor shall assign a separate description and identification
number to the parcel of real property being sold under the contract.
(e) The statement referred to in subsections (b) and (c) must be
verified under penalties for perjury. The statement must contain the
following information:
(1) The balance of the person's mortgage, home equity line of
credit, or contract indebtedness that is recorded in the county
recorder's office on the assessment date of the year for which the
deduction is claimed.
(2) The assessed value of the real property, mobile home, or
manufactured home.
(3) The full name and complete residence address of the person
and of the mortgagee or contract seller.
(4) The name and residence of any assignee or bona fide owner or
holder of the mortgage, home equity line of credit, or contract, if
known, and if not known, the person shall state that fact.
(5) The record number and page where the mortgage, contract, or
memorandum of the contract is recorded.
(6) A brief description of the real property, mobile home, or
manufactured home which is encumbered by the mortgage or
home equity line of credit or sold under the contract.
(7) If the person is not the sole legal or equitable owner of the real
property, mobile home, or manufactured home, the exact share of
the person's interest in it.
(8) The name of any other county in which the person has applied
for a deduction under this section and the amount of deduction
claimed in that application.
(f) The authority for signing a deduction application filed under this
section may not be delegated by the real property, mobile home, or
manufactured home owner or contract buyer to any person except upon
an executed power of attorney. The power of attorney may be contained
in the recorded mortgage, contract, or memorandum of the contract, or
in a separate instrument.
(g) A closing agent (as defined in section 43(a)(2) of this chapter)
is not liable for any damages claimed by the property owner or contract
purchaser because of:
(1) the closing agent's failure to provide the written statement
described in subsection (b);
(2) the closing agent's failure to file the written statement
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described in subsection (b);
(3) any omission or inaccuracy in the written statement described
in subsection (b) that is filed with the county recorder by the
closing agent; or
(4) any determination made with respect to a property owner's or
contract purchaser's eligibility for the deduction under section 1
of this chapter.
(h) The county recorder may not refuse to record a mortgage,
contract, or memorandum because the written statement described in
subsection (b):
(1) is not included with the mortgage, home equity line of credit,
contract, or memorandum of the contract;
(2) does not contain the signatures required by subsection (b);
(3) does not contain the information described in subsection (e);
or
(4) is otherwise incomplete or inaccurate.
(i) The form prescribed by the department of local government
finance under subsection (b) and the instructions for the form must
both include a statement:
(1) that explains that a person is not entitled to a deduction under
section 1 of this chapter unless the person has a balance on the
person's mortgage or contract indebtedness that is recorded in the
county recorder's office (including any home equity line of credit
that is recorded in the county recorder's office) that is the basis for
the deduction; and
(2) that specifies the penalties for perjury.
(j) The department of local government finance shall develop a
notice:
(1) that must be displayed in a place accessible to the public in
the office of each county auditor;
(2) that includes the information described in subsection (i); and
(3) that explains that the form prescribed by the department of
local government finance to claim the deduction under section 1
of this chapter must be signed by the property owner or contract
purchaser under the penalties of perjury.
SECTION 14. IC 6-1.1-12-3 IS REPEALED [EFFECTIVE
JANUARY 1, 2023]. Sec. 3. An individual may claim the deduction
provided by section 1 of this chapter for the assessment date in a year
in the manner prescribed in section 4 of this chapter if during the filing
period prescribed in section 2 of this chapter that applies to the
assessment date the individual was:
(1) a member of the United States armed forces; and
(2) away from the county of his residence as a result of military
service.
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SECTION 15. IC 6-1.1-12-4 IS REPEALED [EFFECTIVE
JANUARY 1, 2023]. Sec. 4. (a) An individual who satisfies the
requirements of section 3 of this chapter may file a claim for a
deduction, or deductions, provided by section 1 of this chapter during
the year following the year in which the individual is discharged from
military service. The individual shall file the claim, on the forms
prescribed for claiming a deduction under section 2 of this chapter,
with the auditor of the county in which the real property is located. The
claim shall specify the particular year, or years, for which the deduction
is claimed. The individual shall attach to the claim an affidavit which
states the facts concerning the individual's absence as a member of the
United States armed forces.
(b) The county property tax assessment board of appeals shall
examine the individual's claim and shall determine the amount of
deduction, or deductions, the individual is entitled to and the year, or
years, for which deductions are due. Based on the board's
determination, the county auditor shall calculate the excess taxes paid
by the individual and shall refund the excess to the individual from
funds not otherwise appropriated. The county auditor shall issue, and
the county treasurer shall pay, a warrant for the amount, if any, to
which the individual is entitled.
SECTION 16. IC 6-1.1-12-5 IS REPEALED [EFFECTIVE
JANUARY 1, 2023]. Sec. 5. A county auditor shall determine the
amount of the deduction provided by section 1 of this chapter that an
individual is entitled to and shall make an allowance for the deduction
without a claim being filed if:
(1) the county auditor determines that the individual satisfies the
requirements of section 3 of this chapter; and
(2) the individual is a resident of, and the real property is located
in, the county that the auditor serves.
SECTION 17. IC 6-1.1-12-6 IS REPEALED [EFFECTIVE
JANUARY 1, 2023]. Sec. 6. (a) The auditor of a county (referred to in
this section as the "first county") with whom a deduction application is
filed under section 2 of this chapter shall immediately prepare and
transmit a copy of the application to the auditor of any other county
(referred to in this section as the "second county") if:
(1) the residence of the applicant is located in the second county;
or
(2) the applicant has applied for a deduction under section 2 of
this chapter in the second county.
(b) The county property tax assessment board of appeals of the
second county shall note on the copy of the application either:
(1) the amount of the deduction provided under section 1 of this
chapter that has been granted in the second county; or
HEA 1260 — CC 1 15
(2) that no deduction application has been filed under section 2 of
this chapter in the second county.
The board shall then return the copy to the auditor of the first county.
(c) The county property tax assessment board of appeals of the first
county shall then take appropriate action on the application. The board
may not grant a deduction provided under section 1 of this chapter in
an amount which will exceed the difference between the amount
granted in any other county and the maximum amount permitted the
applicant under section 1 of this chapter.
SECTION 18. IC 6-1.1-12-7 IS REPEALED [EFFECTIVE
JANUARY 1, 2023]. Sec. 7. Each year, the county auditor shall
ascertain if more than one (1) application has been filed by the same
person. The county auditor shall take appropriate action to grant the
deductions provided under section 1 of this chapter in amounts that do
not exceed the maximum allowed each person under section 1 of this
chapter.
SECTION 19. IC 6-1.1-12-9, AS AMENDED BY P.L.159-2020,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 9. (a) An individual may obtain a deduction from
the assessed value of the individual's real property, or mobile home or
manufactured home which is not assessed as real property, if:
(1) the individual is at least sixty-five (65) years of age on or
before December 31 of the calendar year preceding the year in
which the deduction is claimed;
(2) for assessment dates before January 1, 2020, the combined
adjusted gross income (as defined in Section 62 of the Internal
Revenue Code) of:
(A) the individual and the individual's spouse; or
(B) the individual and all other individuals with whom:
(i) the individual shares ownership; or
(ii) the individual is purchasing the property under a
contract;
as joint tenants or tenants in common;
for the calendar year preceding the year in which the deduction is
claimed did not exceed twenty-five thousand dollars ($25,000);
(3) for assessment dates after December 31, 2019:
(A) the individual had, in the case of an individual who filed
a single return, adjusted gross income (as defined in Section
62 of the Internal Revenue Code) not exceeding thirty
thousand dollars ($30,000);
(B) the individual had, in the case of an individual who filed
a joint income tax return with the individual's spouse,
combined adjusted gross income (as defined in Section 62 of
the Internal Revenue Code) not exceeding forty thousand
HEA 1260 — CC 1 16
dollars ($40,000); or
(C) the combined adjusted gross income (as defined in Section
62 of the Internal Revenue Code) of the individual and all
other individuals with whom:
(i) the individual shares ownership; or
(ii) the individual is purchasing the property under a
contract;
as joint tenants or tenants in common did not exceed forty
thousand dollars ($40,000);
for the calendar year preceding by two (2) years the calendar year
in which the property taxes are first due and payable;
(4) the individual has owned the real property, mobile home, or
manufactured home for at least one (1) year before claiming the
deduction; or the individual has been buying the real property,
mobile home, or manufactured home under a contract that
provides that the individual is to pay the property taxes on the real
property, mobile home, or manufactured home for at least one (1)
year before claiming the deduction, and the contract or a
memorandum of the contract is recorded in the county recorder's
office;
(5) for assessment dates:
(A) before January 1, 2020, the individual and any individuals
covered by subdivision (2)(B) reside on the real property,
mobile home, or manufactured home; or
(B) after December 31, 2019, the individual and any
individuals covered by subdivision (3)(C) reside on the real
property, mobile home, or manufactured home;
(6) except as provided in subsection (i), the assessed value of the
real property, mobile home, or manufactured home does not
exceed two hundred forty thousand dollars ($200,000).
($240,000).
(7) the individual receives no other property tax deduction for the
year in which the deduction is claimed, except the deductions
provided by sections 1, 37, (for assessment dates after February
28, 2008) 37.5, and 38 of this chapter; and
(8) the person:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the statement required by section 10.1 of this chapter
is filed.
(b) Except as provided in subsection (h), in the case of real property,
an individual's deduction under this section equals the lesser of:
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(1) one-half (1/2) of the assessed value of the real property; or
(2) fourteen thousand dollars ($14,000).
(c) Except as provided in subsection (h) and section 40.5 of this
chapter, in the case of a mobile home that is not assessed as real
property or a manufactured home which is not assessed as real
property, an individual's deduction under this section equals the lesser
of:
(1) one-half (1/2) of the assessed value of the mobile home or
manufactured home; or
(2) fourteen thousand dollars ($14,000).
(d) An individual may not be denied the deduction provided under
this section because the individual is absent from the real property,
mobile home, or manufactured home while in a nursing home or
hospital.
(e) For purposes of this section, if real property, a mobile home, or
a manufactured home is owned by:
(1) tenants by the entirety;
(2) joint tenants; or
(3) tenants in common;
only one (1) deduction may be allowed. However, the age requirement
is satisfied if any one (1) of the tenants is at least sixty-five (65) years
of age.
(f) A surviving spouse is entitled to the deduction provided by this
section if:
(1) the surviving spouse is at least sixty (60) years of age on or
before December 31 of the calendar year preceding the year in
which the deduction is claimed;
(2) the surviving spouse's deceased husband or wife was at least
sixty-five (65) years of age at the time of a death;
(3) the surviving spouse has not remarried; and
(4) the surviving spouse satisfies the requirements prescribed in
subsection (a)(2) through (a)(8).
(g) An individual who has sold real property to another person
under a contract that provides that the contract buyer is to pay the
property taxes on the real property may not claim the deduction
provided under this section against that real property.
(h) In the case of tenants covered by subsection (a)(2)(B) or
(a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
age, the deduction allowed under this section shall be reduced by an
amount equal to the deduction multiplied by a fraction. The numerator
of the fraction is the number of tenants who are not at least sixty-five
(65) years of age, and the denominator is the total number of tenants.
(i) For purposes of determining the assessed value of the real
property, mobile home, or manufactured home under subsection (a)(6)
HEA 1260 — CC 1 18
for an individual who has received a deduction under this section in a
particular previous year, increases in assessed value that occur after
the later of:
(1) December 31, 2019; or
(2) the first year that the individual has received the deduction;
are not considered unless the increase in assessed value is attributable
to physical improvements to the property. substantial renovation or
new improvements. Where there is an increase in assessed value
for purposes of the deduction under this section, the assessor shall
provide a report to the county auditor describing the substantial
renovation or new improvements, if any, that were made to the
property prior to the increase in assessed value.
SECTION 20. IC 6-1.1-12-14, AS AMENDED BY P.L.159-2020,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 14. (a) Except as provided in subsection (c) and
except as provided in section 40.5 of this chapter, an individual may
have the sum of fourteen thousand dollars ($14,000) deducted from the
assessed value of the real property, mobile home not assessed as real
property, or manufactured home not assessed as real property that the
individual owns (or the real property, mobile home not assessed as real
property, or manufactured home not assessed as real property that the
individual is buying under a contract that provides that the individual
is to pay property taxes on the real property, mobile home, or
manufactured home if the contract or a memorandum of the contract is
recorded in the county recorder's office) if:
(1) the individual served in the military or naval forces of the
United States for at least ninety (90) days;
(2) the individual received an honorable discharge;
(3) the individual either:
(A) has a total disability; or
(B) is at least sixty-two (62) years old and has a disability of at
least ten percent (10%);
(4) the individual's disability is evidenced by:
(A) a pension certificate or an award of compensation issued
by the United States Department of Veterans Affairs; or
(B) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
individual's disability qualifies the individual to receive a
deduction under this section; and
(5) the individual:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
HEA 1260 — CC 1 19
home under contract;
on the date the statement required by section 15 of this chapter is
filed.
(b) Except as provided in subsections (c) and (d), the surviving
spouse of an individual may receive the deduction provided by this
section if:
(1) the individual satisfied the requirements of subsection (a)(1)
through (a)(4) at the time of death; or
(2) the individual:
(A) was killed in action;
(B) died while serving on active duty in the military or naval
forces of the United States; or
(C) died while performing inactive duty training in the military
or naval forces of the United States; and
the surviving spouse satisfies the requirement of subsection (a)(5) at
the time the deduction statement is filed. The surviving spouse is
entitled to the deduction regardless of whether the property for which
the deduction is claimed was owned by the deceased veteran or the
surviving spouse before the deceased veteran's death.
(c) Except as provided in subsection (f), no one is entitled to the
deduction provided by this section if the assessed value of the
individual's Indiana real property, Indiana mobile home not assessed as
real property, and Indiana manufactured home not assessed as real
property, as shown by the tax duplicate, exceeds the assessed value
limit specified in subsection (d).
(d) Except as provided in subsection (f), for the:
(1) January 1, 2017, January 1, 2018, and January 1, 2019,
assessment dates, the assessed value limit for purposes of
subsection (c) is one hundred seventy-five thousand dollars
($175,000); and
(2) January 1, 2020, assessment date and for each assessment date
thereafter, the assessed value limit for purposes of subsection (c)
is two hundred thousand dollars ($200,000).
(e) An individual who has sold real property, a mobile home not
assessed as real property, or a manufactured home not assessed as real
property to another person under a contract that provides that the
contract buyer is to pay the property taxes on the real property, mobile
home, or manufactured home may not claim the deduction provided
under this section against that real property, mobile home, or
manufactured home.
(f) For purposes of determining the assessed value of the real
property, mobile home, or manufactured home under subsection (d) for
an individual who has received a deduction under this section in a
particular previous year, increases in assessed value that occur after
HEA 1260 — CC 1 20
the later of:
(1) December 31, 2019; or
(2) the first year that the individual has received the deduction;
are not considered unless the increase in assessed value is attributable
to physical improvements to the property. substantial renovation or
new improvements. Where there is an increase in assessed value
for purposes of the deduction under this section, the assessor shall
provide a report to the county auditor describing the substantial
renovation or new improvements, if any, that were made to the
property prior to the increase in assessed value.
SECTION 21. IC 6-1.1-12-17.8, AS AMENDED BY P.L.257-2019,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 17.8. (a) An individual who receives a
deduction provided under section 1, 9, 11, 13, 14, 16, 17.4 (before its
expiration), or 37 of this chapter in a particular year and who remains
eligible for the deduction in the following year is not required to file a
statement to apply for the deduction in the following year. However, for
purposes of a deduction under section 37 of this chapter, the county
auditor may, in the county auditor's discretion, terminate the deduction
for assessment dates after January 15, 2012, if the individual does not
comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
1, 2015), as determined by the county auditor, before January 1, 2013.
Before the county auditor terminates the deduction because the
taxpayer claiming the deduction did not comply with the requirement
in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
2013, the county auditor shall mail notice of the proposed termination
of the deduction to:
(1) the last known address of each person liable for any property
taxes or special assessment, as shown on the tax duplicate or
special assessment records; or
(2) the last known address of the most recent owner shown in the
transfer book.
(b) An individual who receives a deduction provided under section
1, 9, 11, 13, 14, 16, or 17.4 (before its expiration) of this chapter in a
particular year and who becomes ineligible for the deduction in the
following year shall notify the auditor of the county in which the real
property, mobile home, or manufactured home for which the individual
claims the deduction is located of the individual's ineligibility in the
year in which the individual becomes ineligible. An individual who
becomes ineligible for a deduction under section 37 of this chapter
shall notify the county auditor of the county in which the property is
located in conformity with section 37 of this chapter.
(c) The auditor of each county shall, in a particular year, apply a
deduction provided under section 1, 9, 11, 13, 14, 16, 17.4 (before its
HEA 1260 — CC 1 21
expiration), or 37 of this chapter to each individual who received the
deduction in the preceding year unless the auditor determines that the
individual is no longer eligible for the deduction.
(d) An individual who receives a deduction provided under section
1, 9, 11, 13, 14, 16, 17.4 (before its expiration), or 37 of this chapter for
property that is jointly held with another owner in a particular year and
remains eligible for the deduction in the following year is not required
to file a statement to reapply for the deduction following the removal
of the joint owner if:
(1) the individual is the sole owner of the property following the
death of the individual's spouse; or
(2) the individual is the sole owner of the property following the
death of a joint owner who was not the individual's spouse.
If a county auditor terminates a deduction under section 9 of this
chapter, a deduction under section 37 of this chapter, or a credit under
IC 6-1.1-20.6-8.5 after June 30, 2017, and before May 1, 2019, because
the taxpayer claiming the deduction or credit did not comply with a
requirement added to this subsection by P.L.255-2017 to reapply for
the deduction or credit, the county auditor shall reinstate the deduction
or credit if the taxpayer provides proof that the taxpayer is eligible for
the deduction or credit and is not claiming the deduction or credit for
any other property.
(e) A trust entitled to a deduction under section 9, 11, 13, 14, 16,
17.4 (before its expiration), or 37 of this chapter for real property
owned by the trust and occupied by an individual in accordance with
section 17.9 of this chapter is not required to file a statement to apply
for the deduction, if:
(1) the individual who occupies the real property receives a
deduction provided under section 9, 11, 13, 14, 16, 17.4 (before
its expiration), or 37 of this chapter in a particular year; and
(2) the trust remains eligible for the deduction in the following
year.
However, for purposes of a deduction under section 37 of this chapter,
the individuals that qualify the trust for a deduction must comply with
the requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015)
before January 1, 2013.
(f) A cooperative housing corporation (as defined in 26 U.S.C. 216)
that is entitled to a deduction under section 37 of this chapter in the
immediately preceding calendar year for a homestead (as defined in
section 37 of this chapter) is not required to file a statement to apply for
the deduction for the current calendar year if the cooperative housing
corporation remains eligible for the deduction for the current calendar
year. However, the county auditor may, in the county auditor's
discretion, terminate the deduction for assessment dates after January
HEA 1260 — CC 1 22
15, 2012, if the individual does not comply with the requirement in
IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as determined by the
county auditor, before January 1, 2013. Before the county auditor
terminates a deduction because the taxpayer claiming the deduction did
not comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired
January 1, 2015) before January 1, 2013, the county auditor shall mail
notice of the proposed termination of the deduction to:
(1) the last known address of each person liable for any property
taxes or special assessment, as shown on the tax duplicate or
special assessment records; or
(2) the last known address of the most recent owner shown in the
transfer book.
(g) An individual who:
(1) was eligible for a homestead credit under IC 6-1.1-20.9
(repealed) for property taxes imposed for the March 1, 2007, or
January 15, 2008, assessment date; or
(2) would have been eligible for a homestead credit under
IC 6-1.1-20.9 (repealed) for property taxes imposed for the March
1, 2008, or January 15, 2009, assessment date if IC 6-1.1-20.9 had
not been repealed;
is not required to file a statement to apply for a deduction under section
37 of this chapter if the individual remains eligible for the deduction in
the current year. An individual who filed for a homestead credit under
IC 6-1.1-20.9 (repealed) for an assessment date after March 1, 2007 (if
the property is real property), or after January 1, 2008 (if the property
is personal property), shall be treated as an individual who has filed for
a deduction under section 37 of this chapter. However, the county
auditor may, in the county auditor's discretion, terminate the deduction
for assessment dates after January 15, 2012, if the individual does not
comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
1, 2015), as determined by the county auditor, before January 1, 2013.
Before the county auditor terminates the deduction because the
taxpayer claiming the deduction did not comply with the requirement
in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
2013, the county auditor shall mail notice of the proposed termination
of the deduction to the last known address of each person liable for any
property taxes or special assessment, as shown on the tax duplicate or
special assessment records, or to the last known address of the most
recent owner shown in the transfer book.
(h) If a county auditor terminates a deduction because the taxpayer
claiming the deduction did not comply with the requirement in
IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, 2013,
the county auditor shall reinstate the deduction if the taxpayer provides
proof that the taxpayer is eligible for the deduction and is not claiming
HEA 1260 — CC 1 23
the deduction for any other property.
(i) A taxpayer described in section 37(k) of this chapter is not
required to file a statement to apply for the deduction provided by
section 37 of this chapter for a calendar year beginning after December
31, 2008, if the property owned by the taxpayer remains eligible for the
deduction for that calendar year. However, the county auditor may
terminate the deduction for assessment dates after January 15, 2012, if
the individual residing on the property owned by the taxpayer does not
comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
1, 2015), as determined by the county auditor, before January 1, 2013.
Before the county auditor terminates a deduction because the
individual residing on the property did not comply with the
requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before
January 1, 2013, the county auditor shall mail notice of the proposed
termination of the deduction to:
(1) the last known address of each person liable for any property
taxes or special assessment, as shown on the tax duplicate or
special assessment records; or
(2) the last known address of the most recent owner shown in the
transfer book.
SECTION 22. IC 6-1.1-12-37, AS AMENDED BY P.L.156-2020,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 37. (a) The following definitions apply
throughout this section:
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual
uses as the individual's residence, including a house or garage.
(B) A mobile home that is not assessed as real property that an
individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property
that an individual uses as the individual's residence.
(2) "Homestead" means an individual's principal place of
residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a contract recorded in the
county recorder's office, or evidenced by a memorandum of
contract recorded in the county recorder's office under
IC 36-2-11-20, that provides that the individual is to pay the
property taxes on the residence, and that obligates the owner
to convey title to the individual upon completion of all of the
individual's contract obligations;
(iii) the individual is entitled to occupy as a
HEA 1260 — CC 1 24
tenant-stockholder (as defined in 26 U.S.C. 216) of a
cooperative housing corporation (as defined in 26 U.S.C.
216); or
(iv) is a residence described in section 17.9 of this chapter
that is owned by a trust if the individual is an individual
described in section 17.9 of this chapter; and
(C) that consists of a dwelling and the real estate, not
exceeding one (1) acre, that immediately surrounds that
dwelling.
Except as provided in subsection (k), the term does not include
property owned by a corporation, partnership, limited liability
company, or other entity not described in this subdivision.
(b) Each year a homestead is eligible for a standard deduction from
the assessed value of the homestead for an assessment date. Except as
provided in subsection (p), the deduction provided by this section
applies to property taxes first due and payable for an assessment date
only if an individual has an interest in the homestead described in
subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
If more than one (1) individual or entity qualifies property as a
homestead under subsection (a)(2)(B) for an assessment date, only one
(1) standard deduction from the assessed value of the homestead may
be applied for the assessment date. Subject to subsection (c), the
auditor of the county shall record and make the deduction for the
individual or entity qualifying for the deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) sixty percent (60%) of the assessed value of the real property,
mobile home not assessed as real property, or manufactured home
not assessed as real property; or
(2) for assessment dates:
(A) before January 1, 2023, forty-five thousand dollars
($45,000); or
(B) after December 31, 2022, forty-eight thousand dollars
($48,000).
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
HEA 1260 — CC 1 25
section with respect to that real property, mobile home, or
manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement on
forms prescribed by the department of local government finance, with
the auditor of the county in which the homestead is located. The
statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead
under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is not an individual; and
(4) either:
(A) the last five (5) digits of the applicant's Social Security
number and the last five (5) digits of the Social Security
number of the applicant's spouse (if any); or
(B) if the applicant or the applicant's spouse (if any) does not
have a Social Security number, any of the following for that
individual:
(i) The last five (5) digits of the individual's driver's license
number.
(ii) The last five (5) digits of the individual's state
identification card number.
(iii) The last five (5) digits of a preparer tax identification
number that is obtained by the individual through the
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Internal Revenue Service of the United States.
(iv) If the individual does not have a driver's license, a state
identification card, or an Internal Revenue Service preparer
tax identification number, the last five (5) digits of a control
number that is on a document issued to the individual by the
United States government.
If a form or statement provided to the county auditor under this section,
IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
part or all of the Social Security number of a party or other number
described in subdivision (4)(B) of a party, the telephone number and
the Social Security number or other number described in subdivision
(4)(B) included are confidential. The statement may be filed in person
or by mail. If the statement is mailed, the mailing must be postmarked
on or before the last day for filing. The statement applies for that first
year and any succeeding year for which the deduction is allowed. To
obtain the deduction for a desired calendar year in which property taxes
are first due and payable, the statement must be completed and dated
in the immediately preceding calendar year and filed with the county
auditor on or before January 5 of the calendar year in which the
property taxes are first due and payable.
(f) Except as provided in subsection (n), if a person who is
receiving, or seeks to receive, the deduction provided by this section in
the person's name:
(1) changes the use of the individual's property so that part or all
of the property no longer qualifies for the deduction under this
section; or
(2) is not eligible for a deduction under this section because the
person is already receiving:
(A) a deduction under this section in the person's name as an
individual or a spouse; or
(B) a deduction under the law of another state that is
equivalent to the deduction provided by this section;
the person must file a certified statement with the auditor of the county,
notifying the auditor of the person's ineligibility, not more than sixty
(60) days after the date of the change in eligibility. A person who fails
to file the statement required by this subsection may, under
IC 6-1.1-36-17, be liable for any additional taxes that would have been
due on the property if the person had filed the statement as required by
this subsection plus a civil penalty equal to ten percent (10%) of the
additional taxes due. The civil penalty imposed under this subsection
is in addition to any interest and penalties for a delinquent payment that
might otherwise be due. One percent (1%) of the total civil penalty
collected under this subsection shall be transferred by the county to the
department of local government finance for use by the department in
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establishing and maintaining the homestead property data base under
subsection (i) and, to the extent there is money remaining, for any other
purposes of the department. This amount becomes part of the property
tax liability for purposes of this article.
(g) The department of local government finance may adopt rules or
guidelines concerning the application for a deduction under this
section.
(h) This subsection does not apply to property in the first year for
which a deduction is claimed under this section if the sole reason that
a deduction is claimed on other property is that the individual or
married couple maintained a principal residence at the other property
on the assessment date in the same year in which an application for a
deduction is filed under this section or, if the application is for a
homestead that is assessed as personal property, on the assessment date
in the immediately preceding year and the individual or married couple
is moving the individual's or married couple's principal residence to the
property that is the subject of the application. Except as provided in
subsection (n), the county auditor may not grant an individual or a
married couple a deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(i) The department of local government finance shall provide secure
access to county auditors to a homestead property data base that
includes access to the homestead owner's name and the numbers
required from the homestead owner under subsection (e)(4) for the sole
purpose of verifying whether an owner is wrongly claiming a deduction
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit
data on deductions applicable to the current tax year on or before
March 15 of each year in a manner prescribed by the department of
local government finance.
(j) A county auditor may require an individual to provide evidence
proving that the individual's residence is the individual's principal place
of residence as claimed in the certified statement filed under subsection
(e). The county auditor may limit the evidence that an individual is
required to submit to a state income tax return, a valid driver's license,
or a valid voter registration card showing that the residence for which
the deduction is claimed is the individual's principal place of residence.
The department of local government finance shall work with county
auditors to develop procedures to determine whether a property owner
that is claiming a standard deduction or homestead credit is not eligible
for the standard deduction or homestead credit because the property
HEA 1260 — CC 1 28
owner's principal place of residence is outside Indiana.
(k) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a dwelling
and the real estate, not exceeding one (1) acre, that immediately
surrounds that dwelling.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction under
this section on March 1, 2009.
(l) If a county auditor terminates a deduction for property described
in subsection (k) with respect to property taxes that are:
(1) imposed for an assessment date in 2009; and
(2) first due and payable in 2010;
on the grounds that the property is not owned by an entity described in
subsection (a)(2)(B), the county auditor shall reinstate the deduction if
the taxpayer provides proof that the property is eligible for the
deduction in accordance with subsection (k) and that the individual
residing on the property is not claiming the deduction for any other
property.
(m) For assessment dates after 2009, the term "homestead" includes:
(1) a deck or patio;
(2) a gazebo; or
(3) another residential yard structure, as defined in rules adopted
by the department of local government finance (other than a
swimming pool);
that is assessed as real property and attached to the dwelling.
(n) A county auditor shall grant an individual a deduction under this
section regardless of whether the individual and the individual's spouse
claim a deduction on two (2) different applications and each
application claims a deduction for different property if the property
owned by the individual's spouse is located outside Indiana and the
individual files an affidavit with the county auditor containing the
following information:
(1) The names of the county and state in which the individual's
spouse claims a deduction substantially similar to the deduction
allowed by this section.
(2) A statement made under penalty of perjury that the following
are true:
(A) That the individual and the individual's spouse maintain
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separate principal places of residence.
(B) That neither the individual nor the individual's spouse has
an ownership interest in the other's principal place of
residence.
(C) That neither the individual nor the individual's spouse has,
for that same year, claimed a standard or substantially similar
deduction for any property other than the property maintained
as a principal place of residence by the respective individuals.
A county auditor may require an individual or an individual's spouse to
provide evidence of the accuracy of the information contained in an
affidavit submitted under this subsection. The evidence required of the
individual or the individual's spouse may include state income tax
returns, excise tax payment information, property tax payment
information, driver license information, and voter registration
information.
(o) If:
(1) a property owner files a statement under subsection (e) to
claim the deduction provided by this section for a particular
property; and
(2) the county auditor receiving the filed statement determines
that the property owner's property is not eligible for the deduction;
the county auditor shall inform the property owner of the county
auditor's determination in writing. If a property owner's property is not
eligible for the deduction because the county auditor has determined
that the property is not the property owner's principal place of
residence, the property owner may appeal the county auditor's
determination as provided in IC 6-1.1-15. The county auditor shall
inform the property owner of the owner's right to appeal when the
county auditor informs the property owner of the county auditor's
determination under this subsection.
(p) An individual is entitled to the deduction under this section for
a homestead for a particular assessment date if:
(1) either:
(A) the individual's interest in the homestead as described in
subsection (a)(2)(B) is conveyed to the individual after the
assessment date, but within the calendar year in which the
assessment date occurs; or
(B) the individual contracts to purchase the homestead after
the assessment date, but within the calendar year in which the
assessment date occurs;
(2) on the assessment date:
(A) the property on which the homestead is currently located
was vacant land; or
(B) the construction of the dwelling that constitutes the
HEA 1260 — CC 1 30
homestead was not completed; and
(3) either:
(A) the individual files the certified statement required by
subsection (e); or
(B) a sales disclosure form that meets the requirements of
section 44 of this chapter is submitted to the county assessor
on or before December 31 of the calendar year for the
individual's purchase of the homestead.
An individual who satisfies the requirements of subdivisions (1)
through (3) is entitled to the deduction under this section for the
homestead for the assessment date, even if on the assessment date the
property on which the homestead is currently located was vacant land
or the construction of the dwelling that constitutes the homestead was
not completed. The county auditor shall apply the deduction for the
assessment date and for the assessment date in any later year in which
the homestead remains eligible for the deduction. A homestead that
qualifies for the deduction under this section as provided in this
subsection is considered a homestead for purposes of section 37.5 of
this chapter and IC 6-1.1-20.6.
(q) This subsection applies to an application for the deduction
provided by this section that is filed for an assessment date occurring
after December 31, 2013. Notwithstanding any other provision of this
section, an individual buying a mobile home that is not assessed as real
property or a manufactured home that is not assessed as real property
under a contract providing that the individual is to pay the property
taxes on the mobile home or manufactured home is not entitled to the
deduction provided by this section unless the parties to the contract
comply with IC 9-17-6-17.
(r) This subsection:
(1) applies to an application for the deduction provided by this
section that is filed for an assessment date occurring after
December 31, 2013; and
(2) does not apply to an individual described in subsection (q).
The owner of a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property must attach a
copy of the owner's title to the mobile home or manufactured home to
the application for the deduction provided by this section.
(s) For assessment dates after 2013, the term "homestead" includes
property that is owned by an individual who:
(1) is serving on active duty in any branch of the armed forces of
the United States;
(2) was ordered to transfer to a location outside Indiana; and
(3) was otherwise eligible, without regard to this subsection, for
the deduction under this section for the property for the
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assessment date immediately preceding the transfer date specified
in the order described in subdivision (2).
For property to qualify under this subsection for the deduction provided
by this section, the individual described in subdivisions (1) through (3)
must submit to the county auditor a copy of the individual's transfer
orders or other information sufficient to show that the individual was
ordered to transfer to a location outside Indiana. The property continues
to qualify for the deduction provided by this section until the individual
ceases to be on active duty, the property is sold, or the individual's
ownership interest is otherwise terminated, whichever occurs first.
Notwithstanding subsection (a)(2), the property remains a homestead
regardless of whether the property continues to be the individual's
principal place of residence after the individual transfers to a location
outside Indiana. The property continues to qualify as a homestead
under this subsection if the property is leased while the individual is
away from Indiana and is serving on active duty, if the individual has
lived at the property at any time during the past ten (10) years.
Otherwise, the property ceases to qualify as a homestead under this
subsection if the property is leased while the individual is away from
Indiana. Property that qualifies as a homestead under this subsection
shall also be construed as a homestead for purposes of section 37.5 of
this chapter.
SECTION 23. IC 6-1.1-12-43, AS AMENDED BY P.L.214-2019,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 43. (a) For purposes of this section:
(1) "benefit" refers to a deduction under section 1, 9, 11, 13, 14,
16, 17.4 (before its expiration), 26, 29, 33, 34, 37, or 37.5 of this
chapter;
(2) "closing agent" means a person that closes a transaction;
(3) "customer" means an individual who obtains a loan in a
transaction; and
(4) "transaction" means a single family residential:
(A) first lien purchase money mortgage transaction; or
(B) refinancing transaction.
(b) Before closing a transaction after December 31, 2004, a closing
agent must provide to the customer the form referred to in subsection
(c).
(c) Before June 1, 2004, the department of local government finance
shall prescribe the form to be provided by closing agents to customers
under subsection (b). The department shall make the form available to
closing agents, county assessors, county auditors, and county treasurers
in hard copy and electronic form. County assessors, county auditors,
and county treasurers shall make the form available to the general
public. The form must:
HEA 1260 — CC 1 32
(1) on one (1) side:
(A) list each benefit; and
(B) list the eligibility criteria for each benefit; and
(C) indicate that a new application for a deduction under
section 1 of this chapter is required when residential real
property is refinanced;
(2) on the other side indicate:
(A) each action by and each type of documentation from the
customer required to file for each benefit; and
(B) sufficient instructions and information to permit a party to
terminate a standard deduction under section 37 of this chapter
on any property on which the party or the spouse of the party
will no longer be eligible for the standard deduction under
section 37 of this chapter after the party or the party's spouse
begins to reside at the property that is the subject of the
closing, including an explanation of the tax consequences and
applicable penalties, if a party unlawfully claims a standard
deduction under section 37 of this chapter; and
(3) be printed in one (1) of two (2) or more colors prescribed by
the department of local government finance that distinguish the
form from other documents typically used in a closing referred to
in subsection (b).
(d) A closing agent:
(1) may reproduce the form referred to in subsection (c);
(2) in reproducing the form, must use a print color prescribed by
the department of local government finance; and
(3) is not responsible for the content of the form referred to in
subsection (c) and shall be held harmless by the department of
local government finance from any liability for the content of the
form.
(e) This subsection applies to a transaction that is closed after
December 31, 2009. In addition to providing the customer the form
described in subsection (c) before closing the transaction, a closing
agent shall do the following as soon as possible after the closing, and
within the time prescribed by the department of insurance under
IC 27-7-3-15.5:
(1) To the extent determinable, input the information described in
IC 27-7-3-15.5(c)(2) into the system maintained by the
department of insurance under IC 27-7-3-15.5.
(2) Submit the form described in IC 27-7-3-15.5(c) to the data
base described in IC 27-7-3-15.5(c)(2)(D).
(f) A closing agent to which this section applies shall document the
closing agent's compliance with this section with respect to each
transaction in the form of verification of compliance signed by the
HEA 1260 — CC 1 33
customer.
(g) Subject to IC 27-7-3-15.5(d), a closing agent is subject to a civil
penalty of twenty-five dollars ($25) for each instance in which the
closing agent fails to comply with this section with respect to a
customer. The penalty:
(1) may be enforced by the state agency that has administrative
jurisdiction over the closing agent in the same manner that the
agency enforces the payment of fees or other penalties payable to
the agency; and
(2) shall be paid into:
(A) the state general fund, if the closing agent fails to comply
with subsection (b); or
(B) the home ownership education account established by
IC 5-20-1-27, if the closing agent fails to comply with
subsection (e) in a transaction that is closed after December
31, 2009.
(h) A closing agent is not liable for any other damages claimed by
a customer because of:
(1) the closing agent's mere failure to provide the appropriate
document to the customer under subsection (b); or
(2) with respect to a transaction that is closed after December 31,
2009, the closing agent's failure to input the information or submit
the form described in subsection (e).
(i) The state agency that has administrative jurisdiction over a
closing agent shall:
(1) examine the closing agent to determine compliance with this
section; and
(2) impose and collect penalties under subsection (g).
SECTION 24. IC 6-1.1-12-45, AS AMENDED BY P.L.257-2019,
SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 45. (a) Subject to subsections (b) and (c), a
deduction under this chapter applies for an assessment date and for the
property taxes due and payable based on the assessment for that
assessment date, regardless of whether with respect to the real property
or mobile home or manufactured home not assessed as real property:
(1) the title is conveyed one (1) or more times; or
(2) one (1) or more contracts to purchase are entered into;
after that assessment date and on or before the next succeeding
assessment date.
(b) Subsection (a) applies regardless of whether:
(1) one (1) or more grantees of title under subsection (a)(1); or
(2) one (1) or more contract purchasers under subsection (a)(2);
file a statement under this chapter to claim the deduction.
(c) A deduction applies under subsection (a) for only one (1) year.
HEA 1260 — CC 1 34
The requirements of this chapter for filing a statement to apply for a
deduction under this chapter apply to subsequent years. A person who
fails to apply for a deduction or credit under this article by the
deadlines prescribed by this article may not apply for the deduction or
credit retroactively.
(d) If:
(1) a taxpayer wishes to claim a deduction under this chapter for
a desired calendar year in which property taxes are first due and
payable;
(2) the taxpayer files a statement under this chapter on or before
January 5 of the calendar year in which the property taxes are first
due and payable; and
(3) the eligibility criteria for the deduction are met;
the deduction applies for the desired calendar year in which the
property taxes are first due and payable.
(e) If a person who is receiving a deduction under section 1 of this
chapter subsequently refinances the property, desires to continue
claiming the deduction, and remains eligible for the deduction, the
person must reapply for the deduction for the following assessment
date.
(f) (e) A person who is required to record a contract with a county
recorder in order to qualify for a deduction under this article must
record the contract, or a memorandum of the contract, before, or
concurrently with, the filing of the corresponding deduction
application.
(g) (f) Before a county auditor terminates a deduction under this
article, the county auditor shall give to the person claiming the
deduction written notice that states the county auditor's intention to
terminate the deduction and the county auditor's reason for terminating
the deduction. The county auditor may send the notice to the taxpayer
claiming the deduction by first class mail or by electronic mail. A
notice issued under this subsection is not appealable under IC 6-1.1-15.
However, after a deduction is terminated by a county auditor, the
taxpayer may appeal the county auditor's action under IC 6-1.1-15.
SECTION 25. IC 6-1.1-12-46, AS AMENDED BY P.L.181-2016,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 46. (a) This section applies to real property
for an assessment date in 2011 or a later year if:
(1) the real property is not exempt from property taxation for the
assessment date;
(2) title to the real property is transferred after the assessment date
and on or before the December 31 that next succeeds the
assessment date;
(3) the transferee of the real property applies for an exemption
HEA 1260 — CC 1 35
under IC 6-1.1-11 for the next succeeding assessment date; and
(4) the county property tax assessment board of appeals
determines that the real property is exempt from property taxation
for that next succeeding assessment date.
(b) For the assessment date referred to in subsection (a)(1), real
property is eligible for any deductions for which the transferor under
subsection (a)(2) was eligible for that assessment date under the
following:
(1) IC 6-1.1-12-1 (before its repeal).
(2) IC 6-1.1-12-9.
(3) IC 6-1.1-12-11.
(4) IC 6-1.1-12-13.
(5) IC 6-1.1-12-14.
(6) IC 6-1.1-12-16.
(7) IC 6-1.1-12-17.4 (before its expiration).
(8) IC 6-1.1-12-18 (before its expiration).
(9) IC 6-1.1-12-22 (before its expiration).
(10) IC 6-1.1-12-37.
(11) IC 6-1.1-12-37.5.
(c) For the payment date applicable to the assessment date referred
to in subsection (a)(1), real property is eligible for the credit for
excessive residential property taxes under IC 6-1.1-20.6 for which the
transferor under subsection (a)(2) would be eligible for that payment
date if the transfer had not occurred.
SECTION 26. IC 6-1.1-12.1-1, AS AMENDED BY P.L.288-2013,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1. For purposes of this chapter:
(1) "Economic revitalization area" means an area which is within
the corporate limits of a city, town, or county which has become
undesirable for, or impossible of, normal development and
occupancy because of a lack of development, cessation of growth,
deterioration of improvements or character of occupancy, age,
obsolescence, substandard buildings, or other factors which have
impaired values or prevent a normal development of property or
use of property. The term "economic revitalization area" also
includes:
(A) any area where a facility or a group of facilities that are
technologically, economically, or energy obsolete are located
and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise
provided in this chapter.
(2) "City" means any city in this state, and "town" means any town
incorporated under IC 36-5-1.
HEA 1260 — CC 1 36
(3) "New manufacturing equipment" means tangible personal
property that a deduction applicant:
(A) installs on or before the approval deadline determined
under section 9 of this chapter, in an area that is declared an
economic revitalization area in which a deduction for tangible
personal property is allowed;
(B) uses in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or finishing
of other tangible personal property, including but not limited
to use to dispose of solid waste or hazardous waste by
converting the solid waste or hazardous waste into energy or
other useful products;
(C) acquires for use as described in clause (B):
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant, if the tangible personal
property has been previously used in Indiana before the
installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the installation
described in clause (A); and
(D) has never used for any purpose in Indiana before the
installation described in clause (A).
(4) "Property" means a building or structure, but does not include
land.
(5) "Redevelopment" means the construction of new structures,
in economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure is
demolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or betterment
of property in any manner or any enlargement or extension of
property.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city, the
fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, the
metropolitan development commission. The jurisdiction of
the designating body includes a rehabilitation or
redevelopment project under this chapter that falls within
the boundaries of an excluded city, as defined in
IC 36-3-1-7.
(8) "Deduction application" means:
(A) the application filed in accordance with section 5 of this
chapter by a property owner who desires to obtain the
HEA 1260 — CC 1 37
deduction provided by section 3 of this chapter;
(B) the application filed in accordance with section 5.4 of this
chapter by a person who desires to obtain the deduction
provided by section 4.5 of this chapter; or
(C) the application filed in accordance with section 5.3 of this
chapter by a property owner that desires to obtain the
deduction provided by section 4.8 of this chapter.
(9) "Designation application" means an application that is filed
with a designating body to assist that body in making a
determination about whether a particular area should be
designated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a). The term includes waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in IC 13-11-2-205(a).
However, the term does not include dead animals or any animal
solid or semisolid wastes.
(12) "New research and development equipment" means tangible
personal property that:
(A) a deduction applicant installs on or before the approval
deadline determined under section 9 of this chapter, in an
economic revitalization area in which a deduction for tangible
personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) the deduction applicant uses in research and development
activities devoted directly and exclusively to experimental or
laboratory research and development for new products, new
uses of existing products, or improving or testing existing
products;
(D) the deduction applicant acquires for purposes described in
this subdivision:
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant, if the tangible personal
property has been previously used in Indiana before the
installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the installation
described in clause (A); and
(E) the deduction applicant has never used for any purpose in
HEA 1260 — CC 1 38
Indiana before the installation described in clause (A).
The term does not include equipment installed in facilities used
for or in connection with efficiency surveys, management studies,
consumer surveys, economic surveys, advertising or promotion,
or research in connection with literacy, history, or similar
projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) a deduction applicant installs on or before the approval
deadline determined under section 9 of this chapter, in an
economic revitalization area in which a deduction for tangible
personal property is allowed;
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) fork lifts or lifting equipment (including "walk
behinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical distribution;
(C) the deduction applicant acquires for the storage or
distribution of goods, services, or information:
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant, if the tangible personal
property has been previously used in Indiana before the
installation described in clause (A); and
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the installation
described in clause (A); and
(D) the deduction applicant has never used for any purpose in
Indiana before the installation described in clause (A).
(14) "New information technology equipment" means tangible
personal property that:
(A) a deduction applicant installs on or before the approval
deadline determined under section 9 of this chapter, in an
economic revitalization area in which a deduction for tangible
personal property is allowed;
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
HEA 1260 — CC 1 39
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics;
(C) the deduction applicant acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant; and
(D) the deduction applicant never used for any purpose in
Indiana before the installation described in clause (A).
(15) "Deduction applicant" means an owner of tangible personal
property who makes a deduction application.
(16) "Affiliate" means an entity that effectively controls or is
controlled by a deduction applicant or is associated with a
deduction applicant under common ownership or control, whether
by shareholdings or other means.
(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the owner of
the building or a tenant of the owner occupies the building, as
evidenced by a valid certificate of occupancy, paid utility
receipts, executed lease agreements, or any other evidence of
occupation that the department of local government finance
requires.
SECTION 27. IC 6-1.1-12.1-2.6 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 2.6. (a) This section applies only
to a county having a consolidated city.
(b) As used in this section "excluded city" has the meaning set
forth in IC 36-3-1-7.
(c) A designating body or a contracted entity working on the
designating body's behalf that receives a formal tax abatement or
incentive request for a project located in an excluded city shall
exercise due diligence by providing written notice to the excluded
city of the request and details of the investment and jobs before
any formal incentive negotiation proceeding. The notice shall be
delivered by certified mail that includes return receipt or any other
means of delivery that provides for verification or acknowledgment
of receipt.
(d) Not more than five (5) business days after the date of receipt
of the notice under subsection (c), an excluded city may deliver a
written response to the designating body or contracted entity
working on the designating body's behalf that states the excluded
city's position regarding the abatement or incentive request. If a
HEA 1260 — CC 1 40
written response is not received from the excluded city within the
time specified, the designating body or contracted entity shall
assume that the excluded city is in favor of the request and the
designating body may proceed with formal incentive negotiations.
(e) When an offer letter is extended to an applicant for a tax
abatement or incentive request, the designating body shall notify
the legislative body of the excluded city in writing by certified mail
that includes return receipt or any other means of delivery that
provides for verification or acknowledgment of receipt. The
legislative body of the excluded city may adopt a resolution stating
the legislative body's position on the recommendation not later
than thirty (30) business days after receipt of the notice. The
resolution shall serve as official communication of the legislative
body of the excluded city to the designating body.
SECTION 28. IC 6-1.1-12.5-1, AS AMENDED BY P.L.91-2017,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1. (a) As used in this chapter, "eligible
infrastructure" means the following:
(1) Storage, compressed natural gas, liquefied natural gas,
transmission, and distribution facilities to be used in the delivery
of natural gas, or supplemental or substitute forms of gas sources
by a natural gas utility.
(2) Facilities and technologies used in the deployment and
transmission of broadband service, however defined or classified
by the Federal Communications Commission, or advanced
services (as defined in 47 CFR 51.5) by a provider of broadband
service or advanced services.
(3) Facilities used in the treatment, storage, or distribution of
water by a water utility.
(4) Facilities used in the collection or treatment of wastewater by
a wastewater utility.
(b) As used in this chapter, "a provider of broadband service or
advanced services" includes a telephone company or cable
company (as defined in IC 6-1.1-8-2(15)).
SECTION 29. IC 6-1.1-13-13, AS ADDED BY P.L.178-2021,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 13. (a) This section applies to both residential
real property and commercial property, with an assessed value of three
million dollars ($3,000,000) or less, for which the assessed value was
increased for a tax year by an assessing official for any reason other
than by the application of the annual adjustment factor used by the
assessing official to adjust property values for that year. However, this
section does not apply to an assessment if the assessment is based on:
(1) structural improvements;
HEA 1260 — CC 1 41
(2) zoning; or
(3) uses;
that were not considered in the assessment for the prior tax year.
(b) If the taxpayer:
(1) appeals an increased assessment as described in subsection (a)
to the county property tax assessment board of appeals or the
Indiana board; and
(2) prevails in an appeal described in subdivision (1) or any
resulting subsequent appeal of the increased assessment described
in subsection (a);
the assessing official shall not increase the assessed value of the
property until the first year of the next four (4) year cyclical assessment
cycle for any reason other than by application of the annual adjustment
factor used by the assessing official to adjust property values for a tax
year. During this period, the taxpayer may not appeal an increased
assessment made by the assessor unless the taxpayer believes that the
increased assessment is arbitrary and capricious and not made
consistent with the annual adjustment factor used by the assessing
official to adjust property values for a tax year. If the taxpayer does
appeal during this period on the grounds that the increased assessment
is arbitrary and capricious and not made consistent with the annual
adjustment factor used by the assessing official to adjust property
values for a tax year, the provision shifting the burden to the assessing
official to prove that the assessment is correct under
IC 6-1.1-15-17.2(d) (before its repeal) or IC 6-1.1-15-20 does not
apply.
(c) This section does not apply if:
(1) the reduction in assessed value is the result of a settlement
agreement between the taxpayer and the assessing official; or
(2) the appeal is based on a correction of error under
IC 6-1.1-15-1.1(a) and IC 6-1.1-15-1.1(b).
(d) If the taxpayer who appealed an increased assessment under this
section sells the property, whose assessment was appealed, for fair
market value, notwithstanding subsection (b), the assessor may reassess
the property that was sold.
SECTION 30. IC 6-1.1-15-0.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 0.8. As used in this chapter,
"taxpayer" means:
(1) an owner of the property at the time of the issuance of the
assessment or tax bill;
(2) a person statutorily or contractually obligated to pay
property taxes on the property; or
(3) a tenant obligated under a lease to reimburse the owner
HEA 1260 — CC 1 42
for property taxes on the property.
SECTION 31. IC 6-1.1-15-17.1 IS REPEALED [EFFECTIVE
UPON PASSAGE]. Sec. 17.1. In the case of a change occurring after
February 28, 2015, in the classification of real property:
(1) the county assessor or township assessor must on the notice
required by IC 6-1.1-4-22 specify any changes in land
classification and the reasons for the change; and
(2) the county assessor or township assessor making the change
in the classification has the burden of proving that the change in
the classification is correct in any review or appeal under this
chapter and in any appeals taken to the Indiana board of tax
review or to the Indiana tax court.
SECTION 32. IC 6-1.1-15-17.2 IS REPEALED [EFFECTIVE
UPON PASSAGE]. Sec. 17.2. (a) Except as provided in subsection (d),
this section applies to any review or appeal of an assessment under this
chapter if the assessment that is the subject of the review or appeal is
an increase of more than five percent (5%) over the assessment for the
same property for the prior tax year. In calculating the change in the
assessment for purposes of this section, the assessment to be used for
the prior tax year is the original assessment for that prior tax year or, if
applicable, the assessment for that prior tax year:
(1) as last corrected by an assessing official;
(2) as stipulated or settled by the taxpayer and the assessing
official; or
(3) as determined by the reviewing authority.
(b) Under this section, the county assessor or township assessor
making the assessment has the burden of proving that the assessment
is correct in any review or appeal under this chapter and in any appeals
taken to the Indiana board of tax review or to the Indiana tax court. If
a county assessor or township assessor fails to meet the burden of proof
under this section, the taxpayer may introduce evidence to prove the
correct assessment. If neither the assessing official nor the taxpayer
meets the burden of proof under this section, the assessment reverts to
the assessment for the prior tax year, which is the original assessment
for that prior tax year or, if applicable, the assessment for that prior tax
year:
(1) as last corrected by an assessing official;
(2) as stipulated or settled by the taxpayer and the assessing
official; or
(3) as determined by the reviewing authority.
(c) This section does not apply to an assessment if the assessment
that is the subject of the review or appeal is based on:
(1) substantial renovations or new improvements;
(2) zoning; or
HEA 1260 — CC 1 43
(3) uses;
that were not considered in the assessment for the prior tax year.
(d) This subsection applies to real property for which the gross
assessed value of the real property was reduced by the assessing
official or reviewing authority in an appeal conducted under
IC 6-1.1-15. However, this subsection does not apply for an assessment
date if the real property was valued using the income capitalization
approach in the appeal. If the gross assessed value of real property for
an assessment date that follows the latest assessment date that was the
subject of an appeal described in this subsection is increased above the
gross assessed value of the real property for the latest assessment date
covered by the appeal, regardless of the amount of the increase, the
county assessor or township assessor (if any) making the assessment
has the burden of proving that the assessment is correct.
SECTION 33. IC 6-1.1-15-18 IS REPEALED [EFFECTIVE UPON
PASSAGE]. Sec. 18. (a) This section applies to an appeal to which this
chapter applies, including any review by the board of tax review or the
tax court.
(b) This section applies to any proceeding pending or commenced
after June 30, 2012.
(c) To accurately determine market-value-in-use, a taxpayer or an
assessing official may:
(1) in a proceeding concerning residential property, introduce
evidence of the assessments of comparable properties located in
the same taxing district or within two (2) miles of a boundary of
the taxing district; and
(2) in a proceeding concerning property that is not residential
property, introduce evidence of the assessments of any relevant,
comparable property.
However, in a proceeding described in subdivision (2), preference shall
be given to comparable properties that are located in the same taxing
district or within two (2) miles of a boundary of the taxing district. The
determination of whether properties are comparable shall be made
using generally accepted appraisal and assessment practices.
SECTION 34. IC 6-1.1-15-20 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 20. (a) In an appeal under this
chapter, except as provided in subsection (b), the assessment as last
determined by an assessing official or the county board is
presumed to be equal to the property's true tax value until
rebutted by evidence presented by the parties.
(b) If a property's assessment increased more than five percent
(5%) over the property's assessment for the prior tax year, then
the assessment is no longer presumed to be equal to the property's
HEA 1260 — CC 1 44
true tax value, and the assessing official has the burden of proof.
(c) For purposes of this chapter, an assessment for a prior tax
year means the final value:
(1) as last corrected by an assessing official;
(2) as stipulated or settled by the taxpayer and the assessing
official; or
(3) as determined by a reviewing authority.
(d) Subsection (b) does not apply if the increase in the
assessment on appeal is based on:
(1) substantial renovations or new improvements;
(2) zoning; or
(3) uses;
that were not considered in the assessment for the prior tax year.
(e) Both parties in an appeal under this chapter may present
evidence of the true tax value of the property, seeking to decrease
or increase the assessment.
(f) In an appeal under this chapter, the Indiana board shall, as
trier of fact, weigh the evidence and decide the true tax value of the
property as compelled by the totality of the probative evidence
before it. The Indiana board's determination of the property's true
tax value may be higher or lower than the assessment or the value
proposed by a party or witness. If the totality of the evidence
presented to the Indiana board is insufficient to determine the
property's true tax value in an appeal governed by subsection (a),
then the property's assessment is presumed to be equal to the
property's true tax value. If the totality of the evidence presented
to the Indiana board is insufficient to determine the property's true
tax value in an appeal governed by subsection (b), then the
property's prior year assessment is presumed to be equal to the
property's true tax value.
(g) The Indiana board shall hear its matters without regard to
motions related to notice pleading or judgments on the evidence.
(h) This section applies only to appeals filed after the effective
date of this section as added by HEA 1260-2022.
SECTION 35. IC 6-1.1-17-1, AS AMENDED BY P.L.184-2016,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1. (a) On or before August 1 of each year, the
county auditor shall submit a certified statement of the assessed value
for the ensuing year to the department of local government finance in
the manner prescribed by the department.
(b) The department of local government finance shall make the
certified statement available on the department's computer gateway.
(c) Subject to subsection (d), after the county auditor submits a
certified statement under subsection (a) or an amended certified
statement under this subsection with respect to a political subdivision
HEA 1260 — CC 1 45
and before the department of local government finance certifies its
action with respect to the political subdivision under section 16(i) of
this chapter, the county auditor may amend the information concerning
assessed valuation included in the earlier certified statement. The
county auditor shall submit a certified statement amended under this
subsection to the department of local government finance not later
than September 1 in the manner prescribed by the department.
(d) Except as provided in subsection (e), Before the county auditor
makes an amendment under subsection (c), the county auditor must
provide an opportunity for public comment on the proposed
amendment at a public hearing. The county auditor must give notice of
the hearing under IC 5-3-1. If the county auditor makes the amendment
as a result of information provided to the county auditor by an assessor,
the county auditor shall give notice of the public hearing to the
assessor.
(e) The county auditor is not required to hold a public hearing under
subsection (d) if:
(1) the amendment under subsection (c) is proposed to correct a
mathematical error made in the determination of the amount of
assessed valuation included in the earlier certified statement;
(2) the amendment under subsection (c) is proposed to add to the
amount of assessed valuation included in the earlier certified
statement assessed valuation of omitted property discovered after
the county auditor sent the earlier certified statement; or
(3) the county auditor determines that the amendment under
subsection (c) will not result in an increase in the tax rate or tax
rates of the political subdivision.
(f) (e) Beginning in 2018, each county auditor shall submit to the
department of local government finance parcel level data of certified
net assessed values as required by the department. A county auditor
shall submit the parcel level data in the manner and format required by
the department and according to a schedule determined by the
department.
SECTION 36. IC 6-1.1-18-12, AS AMENDED BY P.L.86-2018,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 12. (a) For purposes of this section, "maximum
rate" refers to the maximum:
(1) property tax rate or rates; or
(2) special benefits tax rate or rates;
referred to in the statutes listed in subsection (d).
(b) The maximum rate for taxes first due and payable after 2003 is
the maximum rate that would have been determined under subsection
(e) for taxes first due and payable in 2003 if subsection (e) had applied
for taxes first due and payable in 2003.
HEA 1260 — CC 1 46
(c) The maximum rate must be adjusted each year to account for the
change in assessed value of real property that results from:
(1) an annual adjustment of the assessed value of real property
under IC 6-1.1-4-4.5; or
(2) a reassessment under a county's reassessment plan prepared
under IC 6-1.1-4-4.2.
(d) The statutes to which subsection (a) refers are:
(1) IC 8-10-5-17 (for taxes due and payable before January 1,
2023);
(2) IC 8-22-3-11;
(3) IC 8-22-3-25 (for taxes due and payable before January 1,
2023);
(4) IC 12-29-1-1;
(5) IC 12-29-1-2;
(6) IC 12-29-1-3;
(7) IC 12-29-3-6;
(8) IC 13-21-3-12;
(9) IC 13-21-3-15;
(10) IC 14-27-6-30;
(11) IC 14-33-7-3;
(12) IC 14-33-21-5 (for taxes due and payable before January
1, 2023);
(13) IC 15-14-7-4;
(14) IC 15-14-9-1;
(15) IC 15-14-9-2;
(16) IC 16-20-2-18;
(17) IC 16-20-4-27;
(18) IC 16-20-7-2;
(19) IC 16-22-14;
(20) IC 16-23-1-29;
(21) IC 16-23-3-6;
(22) IC 16-23-4-2;
(23) IC 16-23-5-6;
(24) IC 16-23-7-2;
(25) IC 16-23-8-2;
(26) IC 16-23-9-2;
(27) IC 16-41-15-5;
(28) IC 16-41-33-4;
(29) IC 20-46-2-3 (before its repeal on January 1, 2009);
(30) IC 20-46-6-5 (before its repeal on January 1, 2019);
(31) IC 20-49-2-10;
(32) IC 36-1-19-1;
(33) IC 23-14-66-2;
(34) IC 23-14-67-3;
HEA 1260 — CC 1 47
(35) IC 36-7-13-4;
(36) IC 36-7-14-28;
(37) IC 36-7-15.1-16;
(38) IC 36-8-19-8.5 (for taxes due and payable before January
1, 2023);
(39) IC 36-9-6.1-2;
(40) IC 36-9-17.5-4 (for taxes due and payable before January
1, 2023);
(41) IC 36-9-27-73;
(42) IC 36-9-29-31;
(43) IC 36-9-29.1-15;
(44) IC 36-10-6-2;
(45) IC 36-10-7-7;
(46) IC 36-10-7-8;
(47) IC 36-10-7.5-19 (for taxes due and payable before
January 1, 2023);
(48) IC 36-10-13-5 (before the power to impose a levy was
removed on January 1, 2019);
(49) IC 36-10-13-7 (before the power to impose a levy was
removed on January 1, 2019);
(50) IC 36-10-14-4 (before its repeal on January 1, 2019);
(51) IC 36-12-7-7;
(52) IC 36-12-7-8;
(53) IC 36-12-12-10;
(54) a statute listed in IC 6-1.1-18.5-9.8 (for taxes due and
payable before January 1, 2023); and
(55) any statute enacted after December 31, 2003, that:
(A) establishes a maximum rate for any part of the:
(i) property taxes; or
(ii) special benefits taxes;
imposed by a political subdivision; and
(B) does not exempt the maximum rate from the adjustment
under this section.
(e) For property tax rates imposed for property taxes first due and
payable after December 31, 2013, the new maximum rate under a
statute listed in subsection (d) is the tax rate determined under STEP
EIGHT of the following STEPS:
STEP ONE: Determine the maximum rate for the political
subdivision levying a property tax or special benefits tax under
the statute for the previous calendar year.
STEP TWO: Determine the actual percentage change (rounded to
the nearest one-hundredth percent (0.01%)) in the assessed value
of the taxable property from the previous calendar year to the year
in which the affected property taxes will be imposed.
HEA 1260 — CC 1 48
STEP THREE: Determine the three (3) calendar years that
immediately precede the year in which the affected property taxes
will be imposed.
STEP FOUR: Compute separately, for each of the calendar years
determined in STEP THREE, the actual percentage change
(rounded to the nearest one-hundredth percent (0.01%)) in the
assessed value (before the adjustment, if any, under
IC 6-1.1-4-4.5) of the taxable property from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The STEP FIVE result.
STEP SEVEN: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
SIX percentage, if any.
STEP EIGHT: Determine the quotient of the STEP ONE tax rate
divided by the sum of one (1) plus the STEP SEVEN percentage,
if any.
(f) The department of local government finance shall compute the
maximum rate allowed under subsection (e) and provide the rate to
each political subdivision with authority to levy a tax under a statute
listed in subsection (d).
SECTION 37. IC 6-1.1-18.5-13, AS AMENDED BY P.L.159-2020,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 13. (a) With respect to an appeal filed under
section 12 of this chapter, the department may find that a civil taxing
unit should receive any one (1) or more of the following types of relief:
(1) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 or 25 of this chapter,
as applicable, if in the judgment of the department the increase is
reasonably necessary due to increased costs of the civil taxing
unit resulting from annexation, consolidation, or other extensions
of governmental services by the civil taxing unit to additional
geographic areas. With respect to annexation, consolidation, or
other extensions of governmental services in a calendar year, if
those increased costs are incurred by the civil taxing unit in that
calendar year and more than one (1) immediately succeeding
calendar year, the unit may appeal under section 12 of this chapter
for permission to increase its levy under this subdivision based on
those increased costs in any of the following:
(A) The first calendar year in which those costs are incurred.
(B) One (1) or more of the immediately succeeding four (4)
HEA 1260 — CC 1 49
calendar years.
(2) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 or 25 of this chapter,
as applicable, if the department finds that the quotient determined
under STEP SIX of the following formula is equal to or greater
than one and two-hundredths (1.02):
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year.
STEP TWO: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the civil taxing
unit's total assessed value of all taxable property and:
(i) for a particular calendar year before 2007, the total
assessed value of property tax deductions in the unit under
IC 6-1.1-12-41 (repealed) or IC 6-1.1-12-42 in the particular
calendar year; or
(ii) for a particular calendar year after 2006, the total
assessed value of property tax deductions that applied in the
unit under IC 6-1.1-12-42 in 2006 plus for a particular
calendar year after 2009, the total assessed value of property
tax deductions that applied in the unit under
IC 6-1.1-12-37.5 in 2008;
divided by the sum determined under this STEP for the
calendar year immediately preceding the particular calendar
year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties and:
(i) for a particular calendar year before 2007, the total
assessed value of property tax deductions in all counties
under IC 6-1.1-12-41 (repealed) or IC 6-1.1-12-42 in the
particular calendar year; or
(ii) for a particular calendar year after 2006, the total
assessed value of property tax deductions that applied in all
counties under IC 6-1.1-12-42 in 2006 plus for a particular
calendar year after 2009, the total assessed value of property
tax deductions that applied in the unit under
IC 6-1.1-12-37.5 in 2008;
divided by the sum determined under this STEP for the
calendar year immediately preceding the particular calendar
year.
HEA 1260 — CC 1 50
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 or 25 of this chapter, as
applicable, based on the maximum levy growth quotient
determined under section 2 of this chapter.
(3) A levy increase may be granted under this subdivision only for
property taxes first due and payable after December 31, 2008.
Permission to a civil taxing unit to increase its levy in excess of
the limitations established under section 3 or 25 of this chapter,
as applicable, if the civil taxing unit cannot carry out its
governmental functions for an ensuing calendar year under the
levy limitations imposed by section 3 or 25 of this chapter, as
applicable, due to a natural disaster, an accident, or another
unanticipated emergency.
(b) The department of local government finance shall increase the
maximum permissible ad valorem property tax levy under section 3 of
this chapter for the city of Goshen for 2012 and thereafter by an
amount equal to the greater of zero (0) or the result of:
(1) the city's total pension costs in 2009 for the 1925 police
pension fund (IC 36-8-6) and the 1937 firefighters' pension fund
(IC 36-8-7); minus
(2) the sum of:
(A) the total amount of state funds received in 2009 by the city
and used to pay benefits to members of the 1925 police
pension fund (IC 36-8-6) or the 1937 firefighters' pension fund
(IC 36-8-7); plus
(B) any previous permanent increases to the city's levy that
were authorized to account for the transfer to the state of the
responsibility to pay benefits to members of the 1925 police
pension fund (IC 36-8-6) and the 1937 firefighters' pension
fund (IC 36-8-7).
SECTION 38. IC 6-1.1-18.5-28 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 28. (a) This section applies only
to the Sugar Creek Township Fire Protection District in Vigo
County.
(b) Subject to subsection (c), the executive of a district described
in subsection (a) may, after approval by the fiscal body of the
district, and before August 1, 2022, submit a petition to the
HEA 1260 — CC 1 51
department of local government finance requesting an increase in
the district's maximum permissible ad valorem property tax levy
for property taxes first due and payable in 2023.
(c) Before the fiscal body of the district may approve a petition
under subsection (b), the fiscal body of the district shall hold a
public hearing on the petition. The fiscal body shall give notice of
the public hearing under IC 5-3-1. At the public hearing, the fiscal
body shall make available to the public the following:
(1) A fiscal plan describing the need for the increase to the
levy and the expenditures for which the revenue generated
from the increase to the levy will be used.
(2) A statement that the proposed increase will be a
permanent increase to the district's maximum permissible ad
valorem property tax levy.
(3) The estimated effect of the proposed increase on
taxpayers.
After the fiscal body approves the petition, the district shall
immediately notify the other civil taxing units and school
corporations in the county that are located in a taxing district
where the district is also located.
(d) If the executive of the district submits a petition under
subsection (b), the department of local government finance shall
increase the maximum permissible ad valorem property tax levy
for property taxes first due and payable in 2023 by not more than
one hundred thousand dollars ($100,000).
(e) The district's maximum permissible ad valorem property tax
levy for property taxes first due and payable in 2023, as adjusted
under this section, shall be used in the determination of the
district's maximum permissible ad valorem property tax levy
under IC 6-1.1-18.5 for property taxed first due and payable in
2024 and thereafter.
(f) This section expires June 30, 2026.
SECTION 39. IC 6-1.1-18.5-29 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 29. (a) This section applies only
to the Otter Creek Township in Vigo County.
(b) Subject to subsection (c), the executive of a township
described in subsection (a) may, after approval by the fiscal body
of the township, and before August 1, 2022, submit a petition to the
department of local government finance requesting an increase in
the township's maximum permissible ad valorem property tax levy
for property taxes first due and payable in 2023.
(c) Before the fiscal body of the township may approve a
petition under subsection (b), the fiscal body of the township shall
hold a public hearing on the petition. The fiscal body shall give
HEA 1260 — CC 1 52
notice of the public hearing under IC 5-3-1. At the public hearing,
the fiscal body shall make available to the public the following:
(1) A fiscal plan describing the need for the increase to the
levy and the expenditures for which the revenue generated
from the increase to the levy will be used.
(2) A statement that the proposed increase will be a
permanent increase to the township's maximum permissible
ad valorem property tax levy.
(3) The estimated effect of the proposed increase on
taxpayers.
After the fiscal body approves the petition, the township shall
immediately notify the other civil taxing units and school
corporations in the county that are located in a taxing district
where the township is also located.
(d) If the executive of the township submits a petition under
subsection (b), the department of local government finance shall
increase the maximum permissible ad valorem property tax levy
for property taxes first due and payable in 2023 by not more than
seventy-five thousand dollars ($75,000).
(e) The township's maximum permissible ad valorem property
tax levy for property taxes first due and payable in 2023, as
adjusted under this section, shall be used in the determination of
the township's maximum permissible ad valorem property tax levy
under IC 6-1.1-18.5 for property taxes first due and payable in
2024 and thereafter.
(f) This section expires June 30, 2026.
SECTION 40. IC 6-1.1-18.5-30 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 30. (a) This section applies only
to Howard County.
(b) Subject to subsection (c), the executive of a county described
in subsection (a) may, after approval by the fiscal body of the
county, and before August 1, 2022, submit a petition to the
department of local government finance requesting an increase in
the county's maximum permissible ad valorem property tax levy
for property taxes first due and payable in 2023.
(c) Before the fiscal body of the county may approve a petition
under subsection (b), the fiscal body of the county shall hold a
public hearing on the petition. The fiscal body shall give notice of
the public hearing under IC 5-3-1. At the public hearing, the fiscal
body shall make available to the public the following:
(1) A fiscal plan describing the need for the increase to the
levy and the expenditures for which the revenue generated
from the increase to the levy will be used.
(2) A statement that the proposed increase will be a
HEA 1260 — CC 1 53
permanent increase to the township's maximum permissible
ad valorem property tax levy.
(3) The estimated effect of the proposed increase on
taxpayers.
After the fiscal body approves the petition, the county shall
immediately notify the other civil taxing units and school
corporations in the county that are located in a taxing district
where the county is also located.
(d) If the executive of the county submits a petition under
subsection (b), the department of local government finance shall
increase the maximum permissible ad valorem property tax levy
for property taxes first due and payable in 2023 by not more than
ninety-seven thousand two hundred and ninety-three dollars
($97,293).
(e) The adjustment under this section is a temporary, one (1)
time increase to the county's maximum permissible ad valorem
property tax levy for purposes of this chapter.
(f) This section expires June 30, 2026.
SECTION 41. IC 6-1.1-20-3.6, AS AMENDED BY P.L.38-2021,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 3.6. (a) Except as provided in sections 3.7 and 3.8
of this chapter, this section applies only to a controlled project
described in section 3.5(a) of this chapter.
(b) If a sufficient petition requesting the application of the local
public question process has been filed as set forth in section 3.5 of this
chapter, a political subdivision may not impose property taxes to pay
debt service on bonds or lease rentals on a lease for a controlled project
unless the political subdivision's proposed debt service or lease rental
is approved in an election on a local public question held under this
section.
(c) Except as provided in subsection (k), the following question
shall be submitted to the eligible voters at the election conducted under
this section:
"Shall ________ (insert the name of the political subdivision)
increase property taxes paid to the _______ (insert the type of
taxing unit) by homeowners and businesses? If this public
question is approved by the voters, the average property tax paid
to the _______ (insert the type of taxing unit) per year on a
residence would increase by ______% (insert the estimated
average percentage of property tax increase paid to the political
subdivision on a residence within the political subdivision as
determined under subsection (n)) and the average property tax
paid to the _____ (insert the type of taxing unit) per year on a
business property would increase by ______% (insert the
estimated average percentage of property tax increase paid to the
HEA 1260 — CC 1 54
political subdivision on a business property within the political
subdivision as determined under subsection (o)). The political
subdivision may issue bonds or enter into a lease to ________
(insert a brief description of the controlled project), which is
estimated to cost _______ (insert the total cost of the project)
over ______ (insert number of years to bond maturity or
termination of lease) years. The most recent property tax
referendum within the boundaries of the political subdivision for
which this public question is being considered was proposed by
________ (insert name of political subdivision) in ______ (insert
year of most recent property tax referendum) and ________
(insert whether the measure passed or failed).".
The public question must appear on the ballot in the form approved by
the county election board. If the political subdivision proposing to issue
bonds or enter into a lease is located in more than one (1) county, the
county election board of each county shall jointly approve the form of
the public question that will appear on the ballot in each county. The
form approved by the county election board may differ from the
language certified to the county election board by the county auditor.
If the county election board approves the language of a public question
under this subsection, the county election board shall submit the
language and the certification of the county auditor described in
subsection (p) to the department of local government finance for
review.
(d) The department of local government finance shall review the
language of the public question to evaluate whether the description of
the controlled project is accurate and is not biased against either a vote
in favor of the controlled project or a vote against the controlled
project. The department of local government finance shall post the
estimated average percentage of property tax increases to be paid to a
political subdivision on a residence and business property that are
certified by the county auditor under subsection (p) on the department's
Internet web site. The department of local government finance may
either approve the ballot language as submitted or recommend that the
ballot language be modified as necessary to ensure that the description
of the controlled project is accurate and is not biased. The department
of local government finance shall certify its approval or
recommendations to the county auditor and the county election board
not more than ten (10) days after the language of the public question is
submitted to the department for review. If the department of local
government finance recommends a modification to the ballot language,
the county election board shall, after reviewing the recommendations
of the department of local government finance, submit modified ballot
language to the department for the department's approval or
HEA 1260 — CC 1 55
recommendation of any additional modifications. The public question
may not be certified by the county auditor under subsection (e) unless
the department of local government finance has first certified the
department's final approval of the ballot language for the public
question.
(e) The county auditor shall certify the finally approved public
question under IC 3-10-9-3 to the county election board of each county
in which the political subdivision is located. The certification must
occur not later than noon:
(1) seventy-four (74) days before a primary election if the public
question is to be placed on the primary or municipal primary
election ballot; or
(2) August 1 if the public question is to be placed on the general
or municipal election ballot.
Subject to the certification requirements and deadlines under this
subsection and except as provided in subsection (j), the public question
shall be placed on the ballot at the next primary election, general
election or municipal election in which all voters of the political
subdivision are entitled to vote. However, if a primary election, general
election, or municipal election will not be held during the first year in
which the public question is eligible to be placed on the ballot under
this section and if the political subdivision requests the public question
to be placed on the ballot at a special election, the public question shall
be placed on the ballot at a special election to be held on the first
Tuesday after the first Monday in May or November of the year. The
certification must occur not later than noon seventy-four (74) days
before a special election to be held in May (if the special election is to
be held in May) or noon on August 1 (if the special election is to be
held in November). The fiscal body of the political subdivision that
requests the special election shall pay the costs of holding the special
election. The county election board shall give notice under IC 5-3-1 of
a special election conducted under this subsection. A special election
conducted under this subsection is under the direction of the county
election board. The county election board shall take all steps necessary
to carry out the special election.
(f) The circuit court clerk shall certify the results of the public
question to the following:
(1) The county auditor of each county in which the political
subdivision is located.
(2) The department of local government finance.
(g) Subject to the requirements of IC 6-1.1-18.5-8, the political
subdivision may issue the proposed bonds or enter into the proposed
lease rental if a majority of the eligible voters voting on the public
question vote in favor of the public question.
HEA 1260 — CC 1 56
(h) If a majority of the eligible voters voting on the public question
vote in opposition to the public question, both of the following apply:
(1) The political subdivision may not issue the proposed bonds or
enter into the proposed lease rental.
(2) Another public question under this section on the same or a
substantially similar project may not be submitted to the voters
earlier than:
(A) except as provided in clause (B), seven hundred (700)
days after the date of the public question; or
(B) three hundred fifty (350) days after the date of the election,
if a petition that meets the requirements of subsection (m) is
submitted to the county auditor.
(i) IC 3, to the extent not inconsistent with this section, applies to an
election held under this section.
(j) A political subdivision may not divide a controlled project in
order to avoid the requirements of this section and section 3.5 of this
chapter. A person that owns property within a political subdivision or
a person that is a registered voter residing within a political subdivision
may file a petition with the department of local government finance
objecting that the political subdivision has divided a controlled project
into two (2) or more capital projects in order to avoid the requirements
of this section and section 3.5 of this chapter. The petition must be filed
not more than ten (10) days after the political subdivision gives notice
of the political subdivision's decision under section 3.5 of this chapter
or a determination under section 5 of this chapter to issue bonds or
enter into leases for a capital project that the person believes is the
result of a division of a controlled project that is prohibited by this
subsection. If the department of local government finance receives a
petition under this subsection, the department shall not later than thirty
(30) days after receiving the petition make a final determination on the
issue of whether the political subdivision divided a controlled project
in order to avoid the requirements of this section and section 3.5 of this
chapter. If the department of local government finance determines that
a political subdivision divided a controlled project in order to avoid the
requirements of this section and section 3.5 of this chapter and the
political subdivision continues to desire to proceed with the project, the
political subdivision may appeal the determination of the department
of local government finance to the Indiana board of tax review. A
political subdivision shall be considered to have divided a capital
project in order to avoid the requirements of this section and section
3.5 of this chapter if the result of one (1) or more of the subprojects
cannot reasonably be considered an independently desirable end in
itself without reference to another capital project. This subsection does
not prohibit a political subdivision from undertaking a series of capital
HEA 1260 — CC 1 57
projects in which the result of each capital project can reasonably be
considered an independently desirable end in itself without reference
to another capital project.
(k) This subsection applies to a political subdivision for which a
petition requesting a public question has been submitted under section
3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
the political subdivision may adopt a resolution to withdraw a
controlled project from consideration in a public question. If the
legislative body provides a certified copy of the resolution to the county
auditor and the county election board not later than sixty-three (63)
days before the election at which the public question would be on the
ballot, the public question on the controlled project shall not be placed
on the ballot and the public question on the controlled project shall not
be held, regardless of whether the county auditor has certified the
public question to the county election board. If the withdrawal of a
public question under this subsection requires the county election
board to reprint ballots, the political subdivision withdrawing the
public question shall pay the costs of reprinting the ballots. If a political
subdivision withdraws a public question under this subsection that
would have been held at a special election and the county election
board has printed the ballots before the legislative body of the political
subdivision provides a certified copy of the withdrawal resolution to
the county auditor and the county election board, the political
subdivision withdrawing the public question shall pay the costs
incurred by the county in printing the ballots. If a public question on a
controlled project is withdrawn under this subsection, a public question
under this section on the same controlled project or a substantially
similar controlled project may not be submitted to the voters earlier
than three hundred fifty (350) days after the date the resolution
withdrawing the public question is adopted.
(l) If a public question regarding a controlled project is placed on
the ballot to be voted on at an election under this section, the political
subdivision shall submit to the department of local government finance,
at least thirty (30) days before the election, the following information
regarding the proposed controlled project for posting on the
department's Internet web site:
(1) The cost per square foot of any buildings being constructed as
part of the controlled project.
(2) The effect that approval of the controlled project would have
on the political subdivision's property tax rate.
(3) The maximum term of the bonds or lease.
(4) The maximum principal amount of the bonds or the maximum
lease rental for the lease.
(5) The estimated interest rates that will be paid and the total
HEA 1260 — CC 1 58
interest costs associated with the bonds or lease.
(6) The purpose of the bonds or lease.
(7) In the case of a controlled project proposed by a school
corporation:
(A) the current and proposed square footage of school building
space per student;
(B) enrollment patterns within the school corporation; and
(C) the age and condition of the current school facilities.
(m) If a majority of the eligible voters voting on the public question
vote in opposition to the public question, a petition may be submitted
to the county auditor to request that the limit under subsection
(h)(2)(B) apply to the holding of a subsequent public question by the
political subdivision. If such a petition is submitted to the county
auditor and is signed by the lesser of:
(1) five hundred (500) persons who are either owners of property
within the political subdivision or registered voters residing
within the political subdivision; or
(2) five percent (5%) of the registered voters residing within the
political subdivision;
the limit under subsection (h)(2)(B) applies to the holding of a second
public question by the political subdivision and the limit under
subsection (h)(2)(A) does not apply to the holding of a second public
question by the political subdivision.
(n) At the request of a political subdivision that proposes to impose
property taxes to pay debt service on bonds or lease rentals on a lease
for a controlled project, the county auditor of a county in which the
political subdivision is located shall determine the estimated average
percentage of property tax increase on a homestead to be paid to the
political subdivision that must be included in the public question under
subsection (c) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the political subdivision.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the political subdivision,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
HEA 1260 — CC 1 59
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the political subdivision.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the political subdivision:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the political subdivision's
part of the result determined in STEP FIVE.
STEP SEVEN: Determine the estimated tax rate that will be
imposed if the public question is approved by the voters.
STEP EIGHT: Multiply the result of STEP SEVEN by the result
of STEP THREE.
STEP NINE: Divide the result of STEP EIGHT by the result of
STEP SIX, expressed as a percentage.
(o) At the request of a political subdivision that proposes to impose
property taxes to pay debt service on bonds or lease rentals on a lease
for a controlled project, the county auditor of a county in which the
political subdivision is located shall determine the estimated average
percentage of property tax increase on a business property to be paid
to the political subdivision that must be included in the public question
under subsection (c) as follows:
STEP ONE: Determine the average assessed value of a homestead
business property located within the political subdivision.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the political subdivision.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the
political subdivision:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the political subdivision's
part of the result determined in STEP FOUR.
STEP SIX: Determine the estimated tax rate that will be imposed
HEA 1260 — CC 1 60
if the public question is approved by the voters.
STEP SEVEN: Multiply the result of STEP TWO by the result of
STEP SIX.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP FIVE, expressed as a percentage.
(p) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to the
political subdivision determined under subsection (n), and the
estimated average percentage of property tax increase on a business
property to be paid to the political subdivision determined under
subsection (o), in a manner prescribed by the department of local
government finance, and provide the certification to the political
subdivision that proposes to impose property taxes. The political
subdivision shall provide the certification to the county election board
and include the estimated average percentages in the language of the
public question at the time the language of the public question is
submitted to the county election board for approval as described in
subsection (c).
SECTION 42. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.159-2020,
SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8.5. (a) This section applies to an individual who:
(1) qualified for a standard deduction granted under
IC 6-1.1-12-37 for the individual's homestead property in the
immediately preceding calendar year (or was married at the time
of death to a deceased spouse who qualified for a standard
deduction granted under IC 6-1.1-12-37 for the individual's
homestead property in the immediately preceding calendar year);
(2) qualifies for a standard deduction granted under
IC 6-1.1-12-37 for the same homestead property in the current
calendar year;
(3) is or will be at least sixty-five (65) years of age on or before
December 31 of the calendar year immediately preceding the
current calendar year; and
(4) had:
(A) in the case of an individual who filed a single return,
adjusted gross income (as defined in Section 62 of the Internal
Revenue Code) not exceeding thirty thousand dollars
($30,000); or
(B) in the case of an individual who filed a joint income tax
return with the individual's spouse, combined adjusted gross
income (as defined in Section 62 of the Internal Revenue
Code) not exceeding forty thousand dollars ($40,000);
for the calendar year preceding by two (2) years the calendar year
in which property taxes are first due and payable.
HEA 1260 — CC 1 61
(b) Except as provided in subsection (g), this section does not apply
if:
(1) for an individual who received a credit under this section
before January 1, 2020, the gross assessed value of the homestead
on the assessment date for which property taxes are imposed is at
least two hundred thousand dollars ($200,000); or
(2) for an individual who initially applies for a credit under this
section after December 31, 2019, the assessed value of the
individual's Indiana real property is at least two hundred thousand
dollars ($200,000).
(c) An individual is entitled to an additional credit under this section
for property taxes first due and payable for a calendar year on a
homestead if:
(1) the individual and the homestead qualify for the credit under
subsection (a) for the calendar year;
(2) the homestead is not disqualified for the credit under
subsection (b) for the calendar year; and
(3) the filing requirements under subsection (e) are met.
(d) The amount of the credit is equal to the greater of zero (0) or the
result of:
(1) the property tax liability first due and payable on the
homestead property for the calendar year; minus
(2) the result of:
(A) the property tax liability first due and payable on the
qualified homestead property for the immediately preceding
year after the application of the credit granted under this
section for that year; multiplied by
(B) one and two hundredths (1.02).
However, property tax liability imposed on any improvements to or
expansion of the homestead property after the assessment date for
which property tax liability described in subdivision (2) was imposed
shall not be considered in determining the credit granted under this
section in the current calendar year.
(e) Applications for a credit under this section shall be filed in the
manner provided for an application for a deduction under
IC 6-1.1-12-9. However, an individual who remains eligible for the
credit in the following year is not required to file a statement to apply
for the credit in the following year. An individual who receives a credit
under this section in a particular year and who becomes ineligible for
the credit in the following year shall notify the auditor of the county in
which the homestead is located of the individual's ineligibility not later
than sixty (60) days after the individual becomes ineligible.
(f) The auditor of each county shall, in a particular year, apply a
credit provided under this section to each individual who received the
HEA 1260 — CC 1 62
credit in the preceding year unless the auditor determines that the
individual is no longer eligible for the credit.
(g) For purposes of determining the:
(1) assessed value of the homestead on the assessment date for
which property taxes are imposed under subsection (b)(1); or
(2) assessed value of the individual's Indiana real property under
subsection (b)(2);
for an individual who has received a credit under this section in a
particular previous year, increases in assessed value that occur after
the later of December 31, 2019, or the first year that the individual has
received the credit are not considered unless the increase in assessed
value is attributable to physical improvements to the property.
substantial renovation or new improvements. Where there is an
increase in assessed value for purposes of the credit under this
section, the assessor shall provide a report to the county auditor
describing the substantial renovation or new improvements, if any,
that were made to the property prior to the increase in assessed
value.
SECTION 43. IC 6-1.1-28-12, AS AMENDED BY P.L.121-2019,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 12. (a) This section applies beginning January 1,
2016.
(b) Each county property tax assessment board of appeals (referred
to as the "county PTABOA" in this section) shall submit annually a
report of the notices for an appeal appeals filed with the county
PTABOA under IC 6-1.1-15-1.1(a) in the preceding year to the
department of local government finance, the Indiana board of tax
review, and the legislative services agency before April 1 January 15
of each year. A report submitted to the legislative services agency must
be in an electronic format under IC 5-14-6.
(c) The report required by subsection (b) must include the following
information:
(1) The total number of notices appeals filed with the county
PTABOA.
(2) The notices, appeals, either filed or pending during the year,
that were resolved during the year by a preliminary informal
meeting under IC 6-1.1-15-1.2.
(3) The notices, appeals, either filed or pending during the year,
in which a hearing was conducted during the year by the county
PTABOA under IC 6-1.1-15-1.2.
(4) The number of written decisions issued during the year by the
county PTABOA under IC 6-1.1-15-1.2(j).
(5) The number of notices appeals pending with the county
PTABOA on December 31 of the reporting year.
HEA 1260 — CC 1 63
(6) The number of appeals resolved through a preliminary
informal meeting under IC 6-1.1-15-1.2 that were:
(A) resolved in favor of the taxpayer;
(B) resolved in favor of the assessor; or
(C) resolved in some other manner.
(7) The number of appeals resolved through a written decision
issued during the year by the county PTABOA under
IC 6-1.1-15-1.2(j) that were:
(A) resolved in favor of the taxpayer;
(B) resolved in favor of the assessor; or
(C) resolved in some other manner.
(8) The total number of parcels in the county.
(9) The total reduction in assessed valuations requested by
appellants in the reporting year.
(10) The total reduction in assessed valuations approved by
the county PTABOA in the reporting year.
(11) The average length of time for an appeal in the reporting
year.
(12) The number of appeals for:
(A) agricultural parcels;
(B) residential parcels;
(C) commercial parcels;
(D) industrial parcels;
(E) utility parcels;
(F) exempt parcels; and
(G) mobile or manufactured homes.
(13) The number of appeals withdrawn.
(14) The number of appeals where a taxpayer is represented
by:
(A) a tax representative; or
(B) an attorney.
(15) Any other information as required by the department of
local government finance.
The report may not include any confidential information.
(d) A multiple county PTABOA shall submit a separate report under
this section for each county participating in the multiple county
PTABOA. A report filed under this subsection for a county
participating in a multiple county PTABOA must provide information
on the notices appeals that originated within the county.
SECTION 44. IC 6-1.1-35.7-2, AS AMENDED BY P.L.232-2017,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 2. As used in this chapter, "tax representative"
means a person who represents another person at a proceeding before
the property tax assessment board of appeals or the department. The
term does not include:
HEA 1260 — CC 1 64
(1) the owner of the property (or person liable for the taxes under
IC 6-1.1-2-4) that is the subject of the appeal;
(2) an individual who is appointed as provided in
IC 6-1.1-15-17.3(e) to represent the owner of the property
concerning the appeal;
(3) a permanent full-time employee of the owner of the property
(or person liable for the taxes under IC 6-1.1-2-4) who is the
subject of the appeal;
(4) a representative of a local unit of government appearing on
behalf of the unit;
(5) a certified public accountant, when the certified public
accountant is representing a client in a matter that relates only to
personal property taxation; or
(6) an attorney who is a member in good standing of the Indiana
bar or any person who is a member in good standing of any other
state bar and who has been granted leave by the department to
appear pro hac vice. temporary admission to the Indiana bar
in order to represent a party before the property tax
assessment board of appeals or the department.
SECTION 45. IC 6-1.1-35.7-4, AS AMENDED BY P.L.178-2021,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) A township assessor, a county assessor, an
employee of the township assessor or county assessor, or an appraiser:
(1) must be competent to perform a particular assessment;
(2) must acquire the necessary competency to perform the
assessment; or
(3) shall contract with an appraiser who demonstrates competency
to do the assessment.
(b) If a taxpayer has reason to believe that the township assessor, the
county assessor, an employee of the township assessor or county
assessor, or an appraiser has violated subsection (a) or section 3 of this
chapter, the taxpayer may submit a written complaint to the
department. The department shall respond in writing to the complaint
within thirty (30) days.
(c) The department may not review a written complaint
submitted under subsection (b) if the complaint is related to a
matter that is under appeal.
(c) (d) The department may revoke the certification of a township
assessor, a county assessor, an employee of the township assessor or
county assessor, or an appraiser under 50 IAC 15 for gross
incompetence in the performance of an assessment.
(d) (e) An individual whose certification is revoked by the
department under subsection (c) (d) may appeal the department's
decision to the certification appeal board established under subsection
HEA 1260 — CC 1 65
(e). (f). A decision of the certification appeal board may be appealed to
the tax court in the same manner that a final determination of the
department may be appealed under IC 33-26.
(e) (f) The certification appeal board is established for the sole
purpose of conducting appeals under this section. The board consists
of the following seven (7) members:
(1) Two (2) representatives of the department appointed by the
commissioner of the department.
(2) Two (2) individuals appointed by the governor. The
individuals must be township or county assessors.
(3) Two (2) individuals appointed by the governor. The
individuals must be licensed appraisers.
(4) One (1) individual appointed by the governor. The individual
must be a resident of Indiana.
The commissioner of the department shall designate a member
appointed under subdivision (1) as the chairperson of the board. Not
more than four (4) members of the board may be members of the same
political party. Each member of the board serves at the pleasure of the
appointing authority.
(f) (g) The certification appeal board shall meet as often as is
necessary to properly perform its duties. Each member of the board is
entitled to the following:
(1) The salary per diem provided under IC 4-10-11-2.1(b).
(2) Reimbursement for traveling expenses as provided under
IC 4-13-1-4.
(3) Other expenses actually incurred in connection with the
member's duties as provided in the state policies and procedures
established by the Indiana department of administration and
approved by the budget agency.
SECTION 46. IC 6-1.1-37-1, AS AMENDED BY SEA 304-2022,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2023]: Sec. 1. An officer of state or local government
who recklessly violates or fails to perform a duty imposed on the
officer under:
(1) IC 6-1.1-10-1(b);
(2) IC 6-1.1-12-6;
(3) IC 6-1.1-12-7;
(4) (2) IC 6-1.1-17-1;
(5) (3) IC 6-1.1-17-3(a);
(6) (4) IC 6-1.1-17-5(d);
(7) (5) IC 6-1.1-18-1;
(8) (6) IC 6-1.1-18-5;
(9) (7) IC 6-1.1-18-6;
(10) (8) IC 6-1.1-20-5;
HEA 1260 — CC 1 66
(11) (9) IC 6-1.1-20-6;
(12) (10) IC 6-1.1-20-7;
(13) (11) IC 6-1.1-30-14; or
(14) (12) IC 6-1.1-36-13;
commits a Class A misdemeanor. In addition, the officer is liable for
the damages sustained by a person as a result of the officer's violation
of the provision or the officer's failure to perform the duty.
SECTION 47. IC 6-3.6-5-6, AS AMENDED BY P.L.86-2018,
SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 6. (a) This section applies to all counties.
(b) The adopting body may impose a tax rate under this chapter that
does not exceed one and twenty-five hundredths percent (1.25%) on the
adjusted gross income of local taxpayers in the county served by the
adopting body.
(c) Revenues from a tax under this section may be used only for the
purpose of funding a property tax credit applied on a percentage basis
to reduce the property tax liability of taxpayers with tangible property
located in the county as authorized under this section. Property taxes
imposed due to a referendum in which a majority of the voters in the
taxing unit imposing the property taxes approved the property taxes are
not eligible for a credit under this section.
(d) The adopting body shall specify by ordinance how the revenue
from the tax shall be applied under subdivisions (1) through (4) to
provide property tax credits in subsequent years. The allocation must
be specified as a percentage of property tax relief revenue for taxpayers
within each property category. The ordinance must be adopted as
provided in IC 6-3.6-3 and takes effect and applies to property taxes as
specified in IC 6-3.6-3-3. The ordinance continues to apply thereafter
until it is rescinded or modified. The property tax credits may be
allocated to all property categories or among any combination of the
following categories:
(1) For homesteads eligible for a credit under IC 6-1.1-20.6-7.5
that limits the taxpayer's property tax liability for the property to
one percent (1%).
(2) For residential property, long term care property, agricultural
land, and other tangible property (if any) eligible for a credit
under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax
liability for the property to two percent (2%).
(3) For residential property, as defined in IC 6-1.1-20.6-4.
(4) For nonresidential real property, personal property, and other
tangible property (if any) eligible for a credit under
IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability
for the property to three percent (3%). However, IC 6-3.6-11-2
applies in Jasper County.
HEA 1260 — CC 1 67
(e) Within a category described in subsection (d) for which an
ordinance grants property tax credits, the property tax credit rate must
be a uniform percentage for all qualifying taxpayers with property in
that category in the county. The credit percentage may be, but does not
have to be, uniform for all categories of property listed in subsection
(d).
(f) The county auditor shall allocate the amount of revenue applied
as tax credits under this section to the taxing units that imposed the
eligible property taxes against which the credits are applied.
(g) If the adopting body adopts an ordinance to reduce or eliminate
the property tax relief credits that are in effect in the county under this
chapter, the county auditor shall give notice of the adoption of the
ordinance in accordance with IC 5-3-1 not later than thirty (30) days
after the date on which the ordinance is adopted.
SECTION 48. IC 6-3.6-11-2 IS REPEALED [EFFECTIVE JULY
1, 2022]. Sec. 2. (a) This section applies to Jasper County's allocation
of property tax credits provided by a tax rate under IC 6-3.6-5.
(b) A taxpayer that owns an industrial plant located in Jasper
County is ineligible for a credit under IC 6-3.6-5 against the property
taxes due on the industrial plant if the assessed value of the industrial
plant as of March 1, 2006, exceeded twenty percent (20%) of the total
assessed value of all taxable property in the county on that date. The
general assembly finds that the provisions of this subsection are
necessary because the industrial plant represents such a large
percentage of Jasper County's assessed valuation.
SECTION 49. IC 8-22-2-18.5, AS AMENDED BY P.L.61-2012,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 18.5. (a) The board may negotiate terms and
borrow money from any source for the payment of the costs of airport
capital improvements, including the acquisition of real property or
construction or improvement of revenue producing buildings or
facilities located on an airport and owned and operated by the eligible
entity, subject to the following requirements:
(1) The loan contract must be approved by resolution of the board
and the fiscal body of the eligible entity that established the
board.
(2) The loan contract must provide for the repayment of the loan
in not more than forty (40) years.
(3) The loan contract must state that the indebtedness is that of
the board, is payable solely from revenues of the board that are
derived from either airport operations or from revenue bonds, and
may not be paid by a tax levied on property located within the
district.
(4) The loan contract must be submitted to the department of local
HEA 1260 — CC 1 68
government finance, which may approve, disapprove, or reduce
the amount of the proposed loan contract. The department of local
government finance must make a decision on the loan contract
within thirty (30) days after the contract is submitted for review.
The action taken by the department of local government finance
on the proposed loan contract is final.
(b) A loan contract issued under this chapter is issued for essential
public and governmental purposes. A loan contract, the interest on the
contract, the proceeds received by a holder from the sale of a loan
contract to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, proceeds received at
maturity, and the receipt of the interest and proceeds are exempt from
taxation as provided in IC 6-8-5.
(c) After a board enters into a loan contract, the board may use
funds received from state or federal grants to satisfy the repayment of
part or all of the loan contract.
SECTION 50. IC 8-22-3.5-9, AS AMENDED BY P.L.156-2020,
SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 9. (a) As used in this section, "base assessed
value" means, subject to subsection (k):
(1) the net assessed value of all the tangible property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
resolution adopted under section 5 or 9.5 of this chapter,
notwithstanding the date of the final action taken under section 6
of this chapter; plus
(2) to the extent it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance,
within the airport development zone, as finally determined for the
current assessment date.
However, subdivision (2) applies only to an airport development zone
established after June 30, 1997, and the portion of an airport
development zone established before June 30, 1997, that is added to an
existing airport development zone.
(b) A resolution adopted under section 5 of this chapter and
confirmed under section 6 of this chapter must include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section.
(c) The allocation provision must:
(1) apply to the entire airport development zone; and
(2) require that any property tax on taxable tangible property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the airport
HEA 1260 — CC 1 69
development zone be allocated and distributed as provided in
subsections (d) and (e).
(d) Except as otherwise provided in this section:
(1) the proceeds of the taxes attributable to the lesser of:
(A) the assessed value of the tangible property for the
assessment date with respect to which the allocation and
distribution is made; or
(B) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units; and
(2) the excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(e) All of the property tax proceeds in excess of those described in
subsection (d) shall be allocated to the eligible entity for the airport
development zone and, when collected, paid into special funds as
follows:
(1) The commission may determine that a portion of tax proceeds
shall be allocated to a training grant fund to be expended by the
commission without appropriation solely for the purpose of
reimbursing training expenses incurred by public or private
entities in the training of employees for the qualified airport
development project.
(2) The commission may determine that a portion of tax proceeds
shall be allocated to a debt service fund and dedicated to the
payment of principal and interest on revenue bonds or a loan
contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
payment of leases for a qualified airport development project, or
to the payment of principal and interest on bonds issued by an
eligible entity to pay for qualified airport development projects in
the airport development zone or serving the airport development
zone.
(3) The commission may determine that a part of the tax proceeds
shall be allocated to a project fund and used to pay expenses
incurred by the commission for a qualified airport development
project that is in the airport development zone or is serving the
airport development zone.
(4) Except as provided in subsection (f), all remaining tax
HEA 1260 — CC 1 70
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds allocated
to the project fund in subsection (e)(3) in the following year will
exceed the amount necessary to satisfy amounts required under
subsection (e).
(2) Provide a written notice to the county auditor and the officers
who are authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly or
partly located within the allocation area. The notice must:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1); or
(B) state that the commission has determined that there are no
excess tax proceeds that may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund is
sufficient to pay all outstanding principal and interest (to the earliest
date on which the obligations can be redeemed) on revenue bonds
issued by the board of aviation commissioners or airport authority for
the financing of qualified airport development projects, all lease rentals
payable on leases of qualified airport development projects, and all
costs and expenditures associated with all qualified airport
development projects, money in the debt service fund and in the project
fund in excess of those amounts shall be paid to the respective taxing
units in the manner prescribed by subsection (d)(1).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon petition
of the commission, reassess the taxable tangible property situated upon
or in, or added to, the airport development zone effective on the next
assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all taxable
tangible property in the airport development zone, for purposes of tax
HEA 1260 — CC 1 71
limitation, property tax replacement, and formulation of the budget, tax
rate, and tax levy for each political subdivision in which the property
is located is the lesser of:
(1) the assessed value of the tangible property as valued without
regard to this section; or
(2) the base assessed value.
(k) If the commission confirms, or modifies and confirms, a
resolution under section 6 of this chapter and the commission makes
either of the filings required under section 6(c) of this chapter after the
first anniversary of the effective date of the allocation provision, the
auditor of the county in which the airport development zone is located
shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(l) For an airport development zone established after June 30,
2024, "residential property" refers to the assessed value of
property that is allocated to the one percent (1%) homestead land
and improvement categories in the county tax and billing software
system, along with the residential assessed value as defined for
purposes of calculating the rate for the local income tax property
tax relief credit designated for residential property under
IC 6-3.6-5-6(d)(3).
SECTION 51. IC 20-46-1-8, AS AMENDED BY P.L.136-2021,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 8. (a) Subject to subsections (c), (d), and (e) and
this chapter, the governing body of a school corporation may adopt a
resolution to place a referendum under this chapter on the ballot for any
of the following purposes:
(1) The governing body of the school corporation determines that
it cannot, in a calendar year, carry out its public educational duty
unless it imposes a referendum tax levy under this chapter.
(2) The governing body of the school corporation determines that
a referendum tax levy under this chapter should be imposed to
replace property tax revenue that the school corporation will not
receive because of the application of the credit under
IC 6-1.1-20.6.
(3) The governing body makes the determination required under
subdivision (1) or (2) and determines to share a portion of the
referendum proceeds with a charter school, excluding a virtual
charter school, in the manner prescribed in subsection (d).
(b) The governing body of the school corporation shall certify a
HEA 1260 — CC 1 72
copy of the resolution to place a referendum on the ballot to the
following:
(1) The department of local government finance, including:
(A) the language for the question required by section 10 of this
chapter, or in the case of a resolution to extend a referendum
levy certified to the department of local government finance
after March 15, 2016, section 10.1 of this chapter; and
(B) a copy of the revenue spending plan adopted under
subsection (e).
The language of the public question must include the estimated
average percentage increases certified by the county auditor under
section 10(e) or 10.1(f) of this chapter, as applicable. The
governing body of the school corporation shall also provide the
county auditor's certification described in section 10(e) or 10.1(f)
of this chapter, as applicable. The department of local
government finance shall post the values certified by the county
auditor to the department's Internet web site. The department shall
review the language for compliance with section 10 or 10.1 of this
chapter, whichever is applicable, and either approve or reject the
language. The department shall send its decision to the governing
body of the school corporation not more than ten (10) days after
the resolution is submitted to the department. If the language is
approved, the governing body of the school corporation shall
certify a copy of the resolution, including the language for the
question and the department's approval.
(2) The county fiscal body of each county in which the school
corporation is located (for informational purposes only).
(3) The circuit court clerk of each county in which the school
corporation is located.
(c) If a school safety referendum tax levy under IC 20-46-9 has been
approved by the voters in a school corporation at any time in the
previous three (3) years, the school corporation may not:
(1) adopt a resolution to place a referendum under this chapter on
the ballot; or
(2) otherwise place a referendum under this chapter on the ballot.
(d) The resolution described in subsection (a) must indicate whether
proceeds in the school corporation's education fund collected from a
tax levy under this chapter will be used to provide a distribution to a
charter school or charter schools, excluding a virtual charter school,
under IC 20-40-3-5 as well as the amount that will be distributed to the
particular charter school or charter schools. A school corporation may
request from the designated charter school or charter schools any
financial documentation necessary to demonstrate the financial need of
the charter school or charter schools.
HEA 1260 — CC 1 73
(e) As part of the resolution described in subsection (a), the
governing body of the school corporation shall adopt a revenue
spending plan for the proposed referendum tax levy that includes:
(1) an estimate of the amount of annual revenue expected to be
collected if a levy is imposed under this chapter;
(2) the specific purposes for which the revenue collected from a
levy imposed under this chapter will be used; and
(3) an estimate of the annual dollar amounts that will be expended
for each purpose described in subdivision (2).
(f) A school corporation shall specify in its proposed budget the
school corporation's revenue spending plan adopted under subsection
(e) and annually present the revenue spending plan at its public hearing
on the proposed budget under IC 6-1.1-17-3.
SECTION 52. IC 20-46-1-10, AS AMENDED BY P.L.38-2021,
SECTION 61, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 10. (a) This section does not apply to a
referendum on a resolution certified to the department of local
government finance after March 15, 2016, to extend a referendum levy.
(b) The question to be submitted to the voters in the referendum
must read as follows:
"Shall the school corporation increase property taxes paid to the
school corporation by homeowners and businesses for _____
(insert number of years) years immediately following the holding
of the referendum for the purpose of funding ______ (insert short
description of purposes)? If this public question is approved by
the voters, the average property tax paid to the school corporation
per year on a residence would increase by ______% (insert the
estimated average percentage of property tax increase paid to the
school corporation on a residence within the school corporation
as determined under subsection (c)) and the average property tax
paid to the school corporation per year on a business property
would increase by ______% (insert the estimated average
percentage of property tax increase paid to the school corporation
on a business property within the school corporation as
determined under subsection (d)). The most recent property tax
referendum proposed by the school corporation was held in
______ (insert year) and ________ (insert whether the measure
passed or failed).".
(c) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a homestead to be paid to the school corporation that must be included
in the public question under subsection (b) as follows:
HEA 1260 — CC 1 74
STEP ONE: Determine the average assessed value of a homestead
located within the school corporation.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the school corporation,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the school corporation:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the school corporation's part
of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question is
approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP SIX, expressed as a percentage.
(d) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a business property to be paid to the school corporation that must be
included in the public question under subsection (b) as follows:
STEP ONE: Determine the average assessed value of a homestead
business property located within the school corporation.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
HEA 1260 — CC 1 75
imposed on property located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the school
corporation:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the school corporation's
part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question is
approved by the voters.
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(e) The county auditor shall certify the estimated average percentage
of property tax increase on a homestead to be paid to the school
corporation determined under subsection (c), and the estimated average
percentage of property tax increase on a business property to be paid
to the school corporation determined under subsection (d), in a manner
prescribed by the department of local government finance, and provide
the certification to the governing body of the school corporation that
proposes to impose property taxes.
SECTION 53. IC 20-46-1-10.1, AS AMENDED BY P.L.38-2021,
SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 10.1. (a) This section applies only to a referendum
to allow a school corporation to extend a referendum levy.
(b) The question to be submitted to the voters in the referendum
must read as follows:
"Shall the school corporation continue to impose increased
property taxes paid to the school corporation by homeowners and
businesses for _____ (insert number of years) years immediately
following the holding of the referendum for the purpose of
funding ______ (insert short description of purposes)? The
property tax increase requested in this referendum was originally
approved by the voters in _______ (insert the year in which the
referendum tax levy was approved) and originally increased the
average property tax paid to the school corporation per year on a
residence within the school corporation by ______% (insert the
original estimated average percentage of property tax increase on
a residence within the school corporation) and originally
HEA 1260 — CC 1 76
increased the average property tax paid to the school corporation
per year on a business property within the school corporation by
______% (insert the original estimated average percentage of
property tax increase on a business within the school
corporation).".
(c) The number of years for which a referendum tax levy may be
extended if the public question under this section is approved may not
exceed eight (8) years.
(d) At the request of the governing body of a school corporation
that proposes to impose property taxes under this chapter, the
county auditor of the county in which the school corporation is
located shall determine the estimated average percentage of
property tax increase on a homestead to be paid to the school
corporation that must be included in the public question under
subsection (b) as follows:
STEP ONE: Determine the average assessed value of a
homestead located within the school corporation for the first
year in which the referendum levy was imposed.
STEP TWO: For purposes of determining the net assessed
value of the average homestead located within the school
corporation, subtract:
(A) an amount for the homestead standard deduction
under IC 6-1.1-12-37 as if the homestead described in
STEP ONE was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in
STEP ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one
hundred (100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the first year
in which the referendum levy was imposed on property
located within the school corporation.
STEP FIVE: For purposes of determining net property tax
liability of the average homestead located within the school
corporation:
(A) multiply the result of STEP THREE by the result of
STEP FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive
property taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the school corporation's
part of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
HEA 1260 — CC 1 77
(A) the tax rate that will be imposed if the public question
is approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result
of STEP SIX, expressed as a percentage.
(e) At the request of the governing body of a school corporation
that proposes to impose property taxes under this chapter, the
county auditor of the county in which the school corporation is
located shall determine the estimated average percentage of
property tax increase on a business property to be paid to the
school corporation that must be included in the public question
under subsection (b) as follows:
STEP ONE: Determine the average assessed value of business
property located within the school corporation for the first
year in which the referendum levy was imposed.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per
one hundred dollars ($100) of assessed valuation for the first
year in which the referendum levy was imposed on property
located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the
school corporation:
(A) multiply the result of STEP TWO by the result of
STEP THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive
property taxes under IC 6-1.1-20.6-7.5 as if the applicable
percentage was three percent (3%).
STEP FIVE: Determine the amount of the school
corporation's part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question
is approved by the voters.
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(f) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to
the school corporation determined under subsection (d), and the
estimated average percentage of property tax increase on a
business property to be paid to the school corporation determined
under subsection (e), in a manner prescribed by the department of
local government finance, and provide the certification to the
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governing body of the school corporation that proposes to impose
property taxes.
SECTION 54. IC 20-46-9-6, AS AMENDED BY P.L.136-2021,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 6. (a) Subject to this chapter, the governing body
of a school corporation may adopt a resolution to place a referendum
under this chapter on the ballot if the governing body of the school
corporation determines that a referendum levy should be imposed for
measures to improve school safety as described in IC 20-40-20-6(a) or
IC 20-40-20-6(b).
(b) A school corporation may, with the approval of the majority of
members of the governing body, distribute a portion of the proceeds of
a tax levy collected under this chapter that is deposited in the fund to
a charter school, excluding a virtual charter school, that is located
within the attendance area of the school corporation, to be used by the
charter school for the purposes described in IC 20-40-20-6(a).
(c) The governing body of the school corporation shall certify a
copy of the resolution to the following:
(1) The department of local government finance, including:
(A) the language for the question required by section 9 of this
chapter, or in the case of a resolution to extend a referendum
levy certified to the department of local government finance,
section 10 of this chapter; and
(B) a copy of the revenue spending plan adopted under
subsection (e).
The language of the public question must include the estimated
average percentage increases certified by the county auditor under
section 9(d) or 10(f) of this chapter, as applicable. The governing
body of the school corporation shall also provide the county
auditor's certification described in section 9(d) or 10(f) of this
chapter, as applicable. The department of local government
finance shall post the values certified by the county auditor to the
department's Internet web site. The department shall review the
language for compliance with section 9 or 10 of this chapter,
whichever is applicable, and either approve or reject the language.
The department shall send its decision to the governing body of
the school corporation not more than ten (10) days after the
resolution is submitted to the department. If the language is
approved, the governing body of the school corporation shall
certify a copy of the resolution, including the language for the
question and the department's approval.
(2) The county fiscal body of each county in which the school
corporation is located (for informational purposes only).
(3) The circuit court clerk of each county in which the school
HEA 1260 — CC 1 79
corporation is located.
(d) The resolution described in subsection (a) must indicate whether
proceeds in the school corporation's fund collected from a tax levy
under this chapter will be used to provide a distribution to a charter
school or charter schools, excluding a virtual charter school, under
IC 20-40-20-6(b) as well as the amount that will be distributed to the
particular charter school or charter schools. A school corporation may
request from the designated charter school or charter schools any
financial documentation necessary to demonstrate the financial need of
the charter school or charter schools.
(e) As part of the resolution described in subsection (a), the
governing body of the school corporation shall adopt a revenue
spending plan for the proposed referendum tax levy that includes:
(1) an estimate of the amount of annual revenue expected to be
collected if a levy is imposed under this chapter;
(2) the specific purposes described in IC 20-40-20-6 for which the
revenue collected from a levy imposed under this chapter will be
used; and
(3) an estimate of the annual dollar amounts that will be expended
for each purpose described in subdivision (2).
(f) A school corporation shall specify in its proposed budget the
school corporation's revenue spending plan adopted under subsection
(e) and annually present the revenue spending plan at its public hearing
on the proposed budget under IC 6-1.1-17-3.
SECTION 55. IC 20-46-9-9, AS AMENDED BY P.L.38-2021,
SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 9. (a) The question to be submitted to the voters
in the referendum must read as follows:
"Shall the school corporation increase property taxes paid to the
school corporation by homeowners and businesses for _____
(insert number of years) years immediately following the holding
of the referendum for the purpose of funding ______ (insert short
description of purposes)? If this public question is approved by
the voters, the average property tax paid to the school corporation
per year on a residence would increase by ______% (insert the
estimated average percentage of property tax increase paid to the
school corporation on a residence within the school corporation
as determined under subsection (b)) and the average property tax
paid to the school corporation per year on a business property
would increase by ______% (insert the estimated average
percentage of property tax increase paid to the school corporation
on a business property within the school corporation as
determined under subsection (c)). The most recent property tax
referendum proposed by the school corporation was held in
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______ (insert year) and ________ (insert whether the measure
passed or failed).".
(b) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
a homestead to be paid to the school corporation that must be included
in the public question under subsection (a) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the school corporation.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the school corporation,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the school corporation:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the school corporation's part
of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question is
approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP SIX, expressed as a percentage.
(c) At the request of the governing body of a school corporation that
proposes to impose property taxes under this chapter, the county
auditor of the county in which the school corporation is located shall
determine the estimated average percentage of property tax increase on
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a business property to be paid to the school corporation that must be
included in the public question under subsection (a) as follows:
STEP ONE: Determine the average assessed value of a homestead
business property located within the school corporation.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the school
corporation:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the school corporation's
part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question is
approved by the voters.
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(d) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to the
school corporation determined under subsection (b), and the estimated
average percentage of property tax increase on a business property to
be paid to the school corporation determined under subsection (c), in
a manner prescribed by the department of local government finance,
and provide the certification to the governing body of the school
corporation that proposes to impose property taxes.
SECTION 56. IC 20-46-9-10, AS AMENDED BY P.L.38-2021,
SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 10. (a) This section applies only to a referendum
to allow a school corporation to extend a referendum tax levy.
(b) The question to be submitted to the voters in the referendum
must read as follows:
"Shall the school corporation continue to impose increased
property taxes paid to the school corporation by homeowners and
businesses for _____ (insert number of years) years immediately
following the holding of the referendum for the purpose of
HEA 1260 — CC 1 82
funding ______ (insert short description of purposes)? The
property tax increase requested in this referendum was originally
approved by the voters in _______ (insert the year in which the
referendum tax levy was approved) and originally increased the
average property tax paid to the school corporation per year on a
residence within the school corporation by ______% (insert the
original estimated average percentage of property tax increase on
a residence within the school corporation) and originally
increased the average property tax paid to the school corporation
per year on a business property within the school corporation by
______% (insert the original estimated average percentage of
property tax increase on a business within the school
corporation).".
(c) The number of years for which a referendum tax levy may be
extended if the public question under this section is approved may not
exceed the number of years for which the expiring referendum tax levy
was imposed.
(d) At the request of the governing body of a school corporation
that proposes to impose property taxes under this chapter, the
county auditor of the county in which the school corporation is
located shall determine the estimated average percentage of
property tax increase on a homestead to be paid to the school
corporation that must be included in the public question under
subsection (b) as follows:
STEP ONE: Determine the average assessed value of a
homestead located within the school corporation for the first
year in which the referendum levy was imposed.
STEP TWO: For purposes of determining the net assessed
value of the average homestead located within the school
corporation, subtract:
(A) an amount for the homestead standard deduction
under IC 6-1.1-12-37 as if the homestead described in
STEP ONE was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in
STEP ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one
hundred (100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the first year
in which the referendum levy was imposed on property
located within the school corporation.
STEP FIVE: For purposes of determining net property tax
liability of the average homestead located within the school
HEA 1260 — CC 1 83
corporation:
(A) multiply the result of STEP THREE by the result of
STEP FOUR; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive
property taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the school corporation's
part of the result determined in STEP FIVE.
STEP SEVEN: Multiply:
(A) the tax rate that will be imposed if the public question
is approved by the voters; by
(B) the result of STEP THREE.
STEP EIGHT: Divide the result of STEP SEVEN by the result
of STEP SIX, expressed as a percentage.
(e) At the request of the governing body of a school corporation
that proposes to impose property taxes under this chapter, the
county auditor of the county in which the school corporation is
located shall determine the estimated average percentage of
property tax increase on a business property to be paid to the
school corporation that must be included in the public question
under subsection (b) as follows:
STEP ONE: Determine the average assessed value of business
property located within the school corporation for the first
year in which the referendum levy was imposed.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per
one hundred dollars ($100) of assessed valuation for the first
year in which the referendum levy was imposed on property
located within the school corporation.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the
school corporation:
(A) multiply the result of STEP TWO by the result of
STEP THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive
property taxes under IC 6-1.1-20.6-7.5 as if the applicable
percentage was three percent (3%).
STEP FIVE: Determine the amount of the school
corporation's part of the result determined in STEP FOUR.
STEP SIX: Multiply:
(A) the result of STEP TWO; by
(B) the tax rate that will be imposed if the public question
is approved by the voters.
HEA 1260 — CC 1 84
STEP SEVEN: Divide the result of STEP SIX by the result of
STEP FIVE, expressed as a percentage.
(f) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to
the school corporation determined under subsection (d), and the
estimated average percentage of property tax increase on a
business property to be paid to the school corporation determined
under subsection (e), in a manner prescribed by the department of
local government finance, and provide the certification to the
governing body of the school corporation that proposes to impose
property taxes.
SECTION 57. IC 22-5-4.6-5, AS ADDED BY HEA 1001-2022,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MARCH 3, 2022 (RETROACTIVE)]: Sec. 5. (a) An employer may not
impose a requirement that employees receive an immunization against
COVID-19 unless the employer provides individual exemptions that
allow an employee to opt out of the requirement on the basis of any of
the following:
(1) Medical reasons.
(2) Religious reasons.
(3) An employee has immunity from COVID-19 acquired from a
prior infection with COVID-19.
(b) Subject to subsection (c), an employer may require an employee
to submit to testing for the presence of COVID-19 not more than twice
a week, if the employee receives an exemption based on:
(1) medical reasons under subsection (a)(1);
(2) religious reasons under subsection (a)(2); or
(3) immunity from COVID-19 acquired from a prior infection
with COVID-19 under subsection (a)(3).
(c) An employer may not require a test for the presence of
COVID-19 unless the test:
(1) has been approved, cleared, or authorized by the federal
Food and Drug Administration;
(2) is the least invasive testing option available; and
(3) does not create an undue burden on the employee to receive
the test.
SECTION 58. IC 22-5-4.6-6, AS ADDED BY HEA 1001-2022,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MARCH 3, 2022 (RETROACTIVE)]: Sec. 6. (a) Unless an employer
waives the documentation requirements under this subsection, to claim
an exemption based on medical reasons, an employee must present to
the employer an exemption statement in writing, dated and signed by:
(1) a licensed physician;
(2) a licensed physician's assistant; or
HEA 1260 — CC 1 85
(3) an advanced practice registered nurse;
who has examined the employee. The statement must provide that, in
the professional opinion of the licensed physician, licensed physician's
assistant, or advanced practice registered nurse, the immunization
against COVID-19 is medically contraindicated (as defined in
IC 16-18-2-223.7) for the employee.
(b) To claim an exemption based on religious reasons, an employee
must present to the employer an exemption statement in writing
indicating that the employee declines the immunization against
COVID-19 because of a sincerely held religious belief.
(c) Unless an employer waives the documentation requirements
under this subsection, to claim an exemption based on immunity from
COVID-19 acquired from a prior infection with COVID-19, an
employee must present to the employer the result of a laboratory test
performed on the employee that has been approved, cleared, or
authorized by the federal Food and Drug Administration, including
any of the following:
(1) A polymerase chain reaction test (PCR) test.
(2) An antigen test.
(3) An antibody or serology test.
An employer may request that an employee submit a new laboratory
test result as described in this subsection not more than once every
three (3) months.
SECTION 59. IC 33-34-8-1, AS AMENDED BY P.L.38-2021,
SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 1. (a) The following fees and costs apply to cases
in the small claims court:
(1) A township docket fee of five dollars ($5) plus forty-five
percent (45%) of the infraction or ordinance violation costs fee
under IC 33-37-4-2.
(2) The bailiff's service of process by registered or certified mail
fee of fifteen dollars ($15) for each service.
(3) The cost for the personal service of process by the bailiff or
other process server of fifteen dollars ($15) for each service.
(4) Witness fees, if any, in the amount provided by IC 33-37-10-3
to be taxed and charged in the circuit court.
(5) A redocketing fee, if any, of five dollars ($5).
(6) A document storage fee under IC 33-37-5-20.
(7) An automated record keeping fee under IC 33-37-5-21.
(8) A late fee, if any, under IC 33-37-5-22.
(9) A public defense administration fee under IC 33-37-5-21.2.
(10) A judicial insurance adjustment fee under IC 33-37-5-25.
(11) A judicial salaries fee under IC 33-37-5-26.
(12) A court administration fee under IC 33-37-5-27.
HEA 1260 — CC 1 86
(13) Before July 1, 2022, 2025, a pro bono legal services fee
under IC 33-37-5-31.
The docket fee and the cost for the initial service of process shall be
paid at the institution of a case. The cost of service after the initial
service shall be assessed and paid after service has been made. The
cost of witness fees shall be paid before the witnesses are called.
(b) If the amount of the township docket fee computed under
subsection (a)(1) is not equal to a whole number, the amount shall be
rounded to the next highest whole number.
SECTION 60. IC 33-34-8-3, AS AMENDED BY P.L.165-2021,
SECTION 191, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 3. (a) Payment for all costs made as
a result of proceedings in a small claims court shall be to the _______
Township of Marion County Small Claims Court (with the name of the
township inserted). The court shall issue a receipt for all money
received on a form numbered serially in duplicate.
(b) This subsection applies only to a low caseload court (as defined
in section 5 of this chapter). All township docket fees and late fees
received by the court shall be paid to the township trustee at the close
of each month.
(c) This subsection does not apply to a low caseload court. This
subsection applies to all other township small claims courts in Marion
County. One dollar and fifty cents ($1.50) of the township docket fee
shall be paid to the township trustee of each low caseload court at the
end of each month. The remaining township docket fees and late fees
received by the court shall be paid to the township trustee at the close
of each month.
(d) The court shall:
(1) semiannually distribute to the auditor of state:
(A) all automated record keeping fees (IC 33-37-5-21)
received by the court for deposit in the homeowner protection
unit account established by IC 4-6-12-9 and the state user fee
fund established under IC 33-37-9;
(B) all public defense administration fees collected by the
court under IC 33-37-5-21.2 for deposit in the state general
fund;
(C) sixty percent (60%) of all court administration fees
collected by the court under IC 33-37-5-27 for deposit in the
state general fund;
(D) all judicial insurance adjustment fees collected by the
court under IC 33-37-5-25 for deposit in the state general fund;
(E) seventy-five percent (75%) of all judicial salaries fees
collected by the court under IC 33-37-5-26 for deposit in the
state general fund; and
HEA 1260 — CC 1 87
(F) one hundred percent (100%) of the pro bono legal services
fees collected before July 1, 2022, 2025, by the court under
IC 33-37-5-31; and
(2) distribute monthly to the county auditor all document storage
fees received by the court.
The remaining twenty-five percent (25%) of the judicial salaries fees
described in subdivision (1)(E) shall be deposited monthly in the
township general fund of the township in which the court is located.
The county auditor shall deposit fees distributed under subdivision (2)
into the clerk's record perpetuation fund under IC 33-37-5-2.
(e) The court semiannually shall pay to the township trustee of the
township in which the court is located the remaining forty percent
(40%) of the court administration fees described under subsection
(d)(1)(C) to fund the operations of the small claims court in the
trustee's township.
SECTION 61. IC 33-37-4-4, AS AMENDED BY P.L.39-2017,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 4. (a) The clerk shall collect a civil costs fee of
one hundred dollars ($100) from a party filing a civil action. This
subsection does not apply to the following civil actions:
(1) Proceedings to enforce a statute defining an infraction under
IC 34-28-5 (or IC 34-4-32 before its repeal).
(2) Proceedings to enforce an ordinance under IC 34-28-5 (or
IC 34-4-32 before its repeal).
(3) Proceedings in juvenile court under IC 31-34 or IC 31-37.
(4) Proceedings in paternity under IC 31-14.
(5) Proceedings in small claims court under IC 33-34.
(6) Proceedings in actions described in section 7 of this chapter.
(b) In addition to the civil costs fee collected under this section, the
clerk shall collect the following fees, if they are required under
IC 33-37-5:
(1) A document fee (IC 33-37-5-1, IC 33-37-5-3, or
IC 33-37-5-4).
(2) A support and maintenance fee (IC 33-37-5-6).
(3) A document storage fee (IC 33-37-5-20).
(4) An automated record keeping fee (IC 33-37-5-21).
(5) A public defense administration fee (IC 33-37-5-21.2).
(6) A judicial insurance adjustment fee (IC 33-37-5-25).
(7) A judicial salaries fee (IC 33-37-5-26).
(8) A court administration fee (IC 33-37-5-27).
(9) A service fee (IC 33-37-5-28(b)(1) or IC 33-37-5-28(b)(2)).
(10) A garnishee service fee (IC 33-37-5-28(b)(3) or
IC 33-37-5-28(b)(4)).
(11) For a mortgage foreclosure action, a mortgage foreclosure
HEA 1260 — CC 1 88
counseling and education fee (IC 33-37-5-33) (before its
expiration on July 1, 2017).
(12) Before July 1, 2022, 2025, a pro bono legal services fee (IC
33-37-5-31).
SECTION 62. IC 33-37-4-6, AS AMENDED BY P.L.235-2017,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 6. (a) For each small claims action, the clerk shall
collect the following fees:
(1) From the party filing the action:
(A) a small claims costs fee of thirty-five dollars ($35);
(B) a small claims service fee of ten dollars ($10) for each
named defendant that is not a garnishee defendant; and
(C) if the party has named more than three (3) garnishees or
garnishee defendants, a small claims garnishee service fee of
ten dollars ($10) for each garnishee or garnishee defendant in
excess of three (3).
(2) From any party adding a defendant that is not a garnishee
defendant, a small claims service fee of ten dollars ($10) for each
defendant that is not a garnishee defendant added in the action.
(3) From any party adding a garnishee or garnishee defendant, a
small claims garnishee service fee of ten dollars ($10) for each
garnishee or garnishee defendant added to the action. However,
a clerk may not collect a small claims garnishee service fee for the
first three (3) garnishees named in the action.
However, a clerk may not collect a small claims costs fee, small claims
service fee, or small claims garnishee service fee for a small claims
action filed by or on behalf of the attorney general.
(b) A clerk may not collect a fee under subsection (a)(1)(B),
(a)(1)(C), (a)(2), or (a)(3) for a small claims action filed through the
Indiana electronic filing system adopted by the Indiana supreme court.
(c) In addition to a small claims costs fee, small claims service fee,
and small claims garnishee service fee collected under this section, the
clerk shall collect the following fees, if they are required under
IC 33-37-5:
(1) A document fee (IC 33-37-5-1, IC 33-37-5-3, or
IC 33-37-5-4).
(2) A document storage fee (IC 33-37-5-20).
(3) An automated record keeping fee (IC 33-37-5-21).
(4) A public defense administration fee (IC 33-37-5-21.2).
(5) A judicial insurance adjustment fee (IC 33-37-5-25).
(6) A judicial salaries fee (IC 33-37-5-26).
(7) A court administration fee (IC 33-37-5-27).
(8) Before July 1, 2022, 2025, a pro bono legal services fee (IC
33-37-5-31).
HEA 1260 — CC 1 89
SECTION 63. IC 33-37-4-7, AS AMENDED BY P.L.194-2017,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 7. (a) Except as provided under subsection (c), the
clerk shall collect from the party filing the action a probate costs fee of
one hundred twenty dollars ($120) for each action filed under any of
the following:
(1) IC 29 (probate).
(2) IC 30 (trusts and fiduciaries).
(b) In addition to the probate costs fee collected under subsection
(a), the clerk shall collect from the party filing the action the following
fees, if they are required under IC 33-37-5:
(1) A document fee (IC 33-37-5-1, IC 33-37-5-3, or
IC 33-37-5-4).
(2) A document storage fee (IC 33-37-5-20).
(3) An automated record keeping fee (IC 33-37-5-21).
(4) A public defense administration fee (IC 33-37-5-21.2).
(5) A judicial insurance adjustment fee (IC 33-37-5-25).
(6) A judicial salaries fee (IC 33-37-5-26).
(7) A court administration fee (IC 33-37-5-27).
(8) Before July 1, 2022, 2025, a pro bono legal services fee (IC
33-37-5-31).
(c) A clerk may not collect a court costs fee for the filing of the
following exempted actions:
(1) Petition to open a safety deposit box.
(2) Filing an inheritance tax return, unless proceedings other than
the court's approval of the return become necessary.
(3) Offering a will for probate under IC 29-1-7, unless
proceedings other than admitting the will to probate become
necessary.
(4) Filing a closing statement for an estate described in
IC 29-1-8-4.
SECTION 64. IC 33-37-5-31, AS AMENDED BY P.L.39-2017,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 31. In each:
(1) civil action in which the clerk is required to collect a civil
costs fee under IC 33-37-4-4(a);
(2) small claims action in which:
(A) a party is required to pay a township docket fee under
IC 33-34-8-1(a)(1); or
(B) the clerk is required to collect a small claims costs fee
under IC 33-37-4-6; or
(3) probate action in which the clerk is required to collect a
probate costs fee under IC 33-37-4-7(a);
the clerk shall before July 1, 2022, 2025, collect a pro bono legal
HEA 1260 — CC 1 90
services fee of one dollar ($1).
SECTION 65. IC 33-37-7-2, AS AMENDED BY P.L.165-2021,
SECTION 193, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 2. (a) The clerk of a circuit court
shall distribute semiannually to the auditor of state as the state share for
deposit in the homeowner protection unit account established by
IC 4-6-12-9 one hundred percent (100%) of the automated record
keeping fees collected under IC 33-37-5-21 with respect to actions
resulting in the accused person entering into a pretrial diversion
program agreement under IC 33-39-1-8 or a deferral program
agreement under IC 34-28-5-1 and for deposit in the state general fund
seventy percent (70%) of the amount of fees collected under the
following:
(1) IC 33-37-4-1(a) (criminal costs fees).
(2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
(3) IC 33-37-4-3(a) (juvenile costs fees).
(4) IC 33-37-4-4(a) (civil costs fees).
(5) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
(6) IC 33-37-4-7(a) (probate costs fees).
(7) IC 33-37-5-17 (deferred prosecution fees).
(b) The clerk of a circuit court shall distribute semiannually to the
auditor of state for deposit in the state user fee fund established in
IC 33-37-9-2 the following:
(1) Twenty-five percent (25%) of the drug abuse, prosecution,
interdiction, and correction fees collected under
IC 33-37-4-1(b)(5).
(2) Twenty-five percent (25%) of the alcohol and drug
countermeasures fees collected under IC 33-37-4-1(b)(6),
IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
(3) One hundred percent (100%) of the child abuse prevention
fees collected under IC 33-37-4-1(b)(7).
(4) One hundred percent (100%) of the domestic violence
prevention and treatment fees collected under IC 33-37-4-1(b)(8).
(5) One hundred percent (100%) of the highway worksite zone
fees collected under IC 33-37-4-1(b)(9) and IC 33-37-4-2(b)(5).
(6) Seventy-five percent (75%) of the safe schools fee collected
under IC 33-37-5-18.
(7) One hundred percent (100%) of the automated record keeping
fee collected under IC 33-37-5-21 not distributed under
subsection (a).
(c) The clerk of a circuit court shall distribute monthly to the county
auditor the following:
(1) Seventy-five percent (75%) of the drug abuse, prosecution,
interdiction, and correction fees collected under
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IC 33-37-4-1(b)(5).
(2) Seventy-five percent (75%) of the alcohol and drug
countermeasures fees collected under IC 33-37-4-1(b)(6),
IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this
subsection into the county drug free community fund established under
IC 5-2-11.
(d) The clerk of a circuit court shall distribute monthly to the county
auditor one hundred percent (100%) of the late payment fees collected
under IC 33-37-5-22. The county auditor shall deposit fees distributed
by a clerk under this subsection as follows:
(1) If directed to do so by an ordinance adopted by the county
fiscal body, the county auditor shall deposit forty percent (40%)
of the fees in the clerk's record perpetuation fund established
under IC 33-37-5-2 and sixty percent (60%) of the fees in the
county general fund.
(2) If the county fiscal body has not adopted an ordinance
described in subdivision (1), the county auditor shall deposit all
the fees in the county general fund.
(e) The clerk of the circuit court shall distribute semiannually to the
auditor of state for deposit in the sexual assault victims assistance fund
established by IC 5-2-6-23(d) one hundred percent (100%) of the
sexual assault victims assistance fees collected under IC 33-37-5-23.
(f) The clerk of a circuit court shall distribute monthly to the county
auditor the following:
(1) One hundred percent (100%) of the support and maintenance
fees for cases designated as non-Title IV-D child support cases in
the Indiana support enforcement tracking system (ISETS) or the
successor statewide automated support enforcement system
collected under IC 33-37-5-6.
(2) The percentage share of the support and maintenance fees for
cases designated as Title IV-D child support cases in ISETS or the
successor statewide automated support enforcement system
collected under IC 33-37-5-6 that is reimbursable to the county at
the federal financial participation rate.
The county clerk shall distribute monthly to the department of child
services the percentage share of the support and maintenance fees for
cases designated as Title IV-D child support cases in ISETS, or the
successor statewide automated support enforcement system, collected
under IC 33-37-5-6 that is not reimbursable to the county at the
applicable federal financial participation rate.
(g) The clerk of a circuit court shall distribute monthly to the county
auditor the following:
(1) One hundred percent (100%) of the small claims service fee
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under IC 33-37-4-6(a)(1)(B) or IC 33-37-4-6(a)(2) for deposit in
the county general fund.
(2) One hundred percent (100%) of the small claims garnishee
service fee under IC 33-37-4-6(a)(1)(C) or IC 33-37-4-6(a)(3) for
deposit in the county general fund.
(3) Twenty-five percent (25%) of the safe schools fee collected
under IC 33-37-5-18 for deposit in the county general fund.
(h) This subsection does not apply to court administration fees
collected in small claims actions filed in a court described in IC 33-34.
The clerk of a circuit court shall semiannually distribute to the auditor
of state for deposit in the state general fund one hundred percent
(100%) of the following:
(1) The public defense administration fee collected under
IC 33-37-5-21.2.
(2) The judicial salaries fees collected under IC 33-37-5-26.
(3) The DNA sample processing fees collected under
IC 33-37-5-26.2.
(4) The court administration fees collected under IC 33-37-5-27.
(5) The judicial insurance adjustment fee collected under
IC 33-37-5-25.
(i) The proceeds of the service fee collected under
IC 33-37-5-28(b)(1) or IC 33-37-5-28(b)(2) shall be distributed as
follows:
(1) The clerk shall distribute one hundred percent (100%) of the
service fees collected in a circuit, superior, county, or probate
court to the county auditor for deposit in the county general fund.
(2) The clerk shall distribute one hundred percent (100%) of the
service fees collected in a city or town court to the city or town
fiscal officer for deposit in the city or town general fund.
(j) The proceeds of the garnishee service fee collected under
IC 33-37-5-28(b)(3) or IC 33-37-5-28(b)(4) shall be distributed as
follows:
(1) The clerk shall distribute one hundred percent (100%) of the
garnishee service fees collected in a circuit, superior, county, or
probate court to the county auditor for deposit in the county
general fund.
(2) The clerk shall distribute one hundred percent (100%) of the
garnishee service fees collected in a city or town court to the city
or town fiscal officer for deposit in the city or town general fund.
(k) The clerk of the circuit court shall distribute semiannually to the
auditor of state for deposit in the home ownership education account
established by IC 5-20-1-27 one hundred percent (100%) of the
following:
(1) The mortgage foreclosure counseling and education fees
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collected under IC 33-37-5-33 (before its expiration on July 1,
2017).
(2) Any civil penalties imposed and collected by a court for a
violation of a court order in a foreclosure action under
IC 32-30-10.5.
(l) The clerk of a circuit court shall distribute semiannually to the
auditor of state one hundred percent (100%) of the pro bono legal
services fees collected before July 1, 2022, 2025, under IC 33-37-5-31.
The auditor of state shall transfer semiannually the pro bono legal
services fees to the Indiana Bar Foundation (or a successor entity) as
the entity designated to organize and administer the interest on lawyers
trust accounts (IOLTA) program under Rule 1.15 of the Rules of
Professional Conduct of the Indiana supreme court. The Indiana Bar
Foundation shall:
(1) deposit in an appropriate account and otherwise manage the
fees the Indiana Bar Foundation receives under this subsection in
the same manner the Indiana Bar Foundation deposits and
manages the net earnings the Indiana Bar Foundation receives
from IOLTA accounts; and
(2) use the fees the Indiana Bar Foundation receives under this
subsection to assist or establish approved pro bono legal services
programs.
The handling and expenditure of the pro bono legal services fees
received under this section by the Indiana Bar Foundation (or its
successor entity) are subject to audit by the state board of accounts. The
amounts necessary to make the transfers required by this subsection are
appropriated from the state general fund.
SECTION 66. IC 33-37-7-8, AS AMENDED BY P.L.165-2021,
SECTION 194, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 8. (a) The clerk of a city or town
court shall distribute semiannually to the auditor of state as the state
share for deposit in the homeowner protection unit account established
by IC 4-6-12-9 one hundred percent (100%) of the automated record
keeping fees collected under IC 33-37-5-21 with respect to actions
resulting in the accused person entering into a pretrial diversion
program agreement under IC 33-39-1-8 or a deferral program
agreement under IC 34-28-5-1 and for deposit in the state general fund
fifty-five percent (55%) of the amount of fees collected under the
following:
(1) IC 33-37-4-1(a) (criminal costs fees).
(2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
(3) IC 33-37-4-4(a) (civil costs fees).
(4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
(5) IC 33-37-5-17 (deferred prosecution fees).
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(b) The city or town fiscal officer shall distribute monthly to the
county auditor as the county share twenty percent (20%) of the amount
of fees collected under the following:
(1) IC 33-37-4-1(a) (criminal costs fees).
(2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
(3) IC 33-37-4-4(a) (civil costs fees).
(4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
(5) IC 33-37-5-17 (deferred prosecution fees).
(c) The city or town fiscal officer shall retain twenty-five percent
(25%) as the city or town share of the fees collected under the
following:
(1) IC 33-37-4-1(a) (criminal costs fees).
(2) IC 33-37-4-2(a) (infraction or ordinance violation costs fees).
(3) IC 33-37-4-4(a) (civil costs fees).
(4) IC 33-37-4-6(a)(1)(A) (small claims costs fees).
(5) IC 33-37-5-17 (deferred prosecution fees).
(d) The clerk of a city or town court shall distribute semiannually to
the auditor of state for deposit in the state user fee fund established in
IC 33-37-9 the following:
(1) Twenty-five percent (25%) of the drug abuse, prosecution,
interdiction, and correction fees collected under
IC 33-37-4-1(b)(5).
(2) Twenty-five percent (25%) of the alcohol and drug
countermeasures fees collected under IC 33-37-4-1(b)(6),
IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
(3) One hundred percent (100%) of the highway worksite zone
fees collected under IC 33-37-4-1(b)(9) and IC 33-37-4-2(b)(5).
(4) Seventy-five percent (75%) of the safe schools fee collected
under IC 33-37-5-18.
(5) One hundred percent (100%) of the automated record keeping
fee collected under IC 33-37-5-21 not distributed under
subsection (a).
(e) The clerk of a city or town court shall distribute monthly to the
county auditor the following:
(1) Seventy-five percent (75%) of the drug abuse, prosecution,
interdiction, and correction fees collected under
IC 33-37-4-1(b)(5).
(2) Seventy-five percent (75%) of the alcohol and drug
countermeasures fees collected under IC 33-37-4-1(b)(6),
IC 33-37-4-2(b)(4), and IC 33-37-4-3(b)(5).
The county auditor shall deposit fees distributed by a clerk under this
subsection into the county drug free community fund established under
IC 5-2-11.
(f) The clerk of a city or town court shall distribute monthly to the
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city or town fiscal officer (as defined in IC 36-1-2-7) one hundred
percent (100%) of the following:
(1) The late payment fees collected under IC 33-37-5-22.
(2) The small claims service fee collected under
IC 33-37-4-6(a)(1)(B) or IC 33-37-4-6(a)(2).
(3) The small claims garnishee service fee collected under
IC 33-37-4-6(a)(1)(C) or IC 33-37-4-6(a)(3).
(4) Twenty-five percent (25%) of the safe schools fee collected
under IC 33-37-5-18.
The city or town fiscal officer (as defined in IC 36-1-2-7) shall deposit
fees distributed by a clerk under this subsection in the city or town
general fund.
(g) The clerk of a city or town court shall semiannually distribute to
the auditor of state for deposit in the state general fund one hundred
percent (100%) of the following:
(1) The public defense administration fee collected under
IC 33-37-5-21.2.
(2) The DNA sample processing fees collected under
IC 33-37-5-26.2.
(3) The court administration fees collected under IC 33-37-5-27.
(4) The judicial insurance adjustment fee collected under
IC 33-37-5-25.
(h) The clerk of a city or town court shall semiannually distribute to
the auditor of state for deposit in the state general fund seventy-five
percent (75%) of the judicial salaries fee collected under
IC 33-37-5-26. The city or town fiscal officer shall retain twenty-five
percent (25%) of the judicial salaries fee collected under
IC 33-37-5-26. The funds retained by the city or town shall be
prioritized to fund city or town court operations.
(i) The clerk of a city or town court shall distribute semiannually to
the auditor of state one hundred percent (100%) of the pro bono legal
services fees collected before July 1, 2022, 2025, under IC 33-37-5-31.
The auditor of state shall transfer semiannually the pro bono legal
services fees to the Indiana Bar Foundation (or a successor entity) as
the entity designated to organize and administer the interest on lawyers
trust accounts (IOLTA) program under Rule 1.15 of the Rules of
Professional Conduct of the Indiana supreme court. The Indiana Bar
Foundation shall:
(1) deposit in an appropriate account and otherwise manage the
fees the Indiana Bar Foundation receives under this subsection in
the same manner the Indiana Bar Foundation deposits and
manages the net earnings the Indiana Bar Foundation receives
from IOLTA accounts; and
(2) use the fees the Indiana Bar Foundation receives under this
HEA 1260 — CC 1 96
subsection to assist or establish approved pro bono legal services
programs.
The handling and expenditure of the pro bono legal services fees
received under this section by the Indiana Bar Foundation (or its
successor entity) are subject to audit by the state board of accounts. The
amounts necessary to make the transfers required by this subsection are
appropriated from the state general fund.
SECTION 67. IC 34-30-2-16.6, AS AMENDED BY P.L.86-2018,
SECTION 238, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2023]: Sec. 16.6. (a) IC 6-1.1-12-2
(Concerning a closing agent for failure to perform certain tasks for
purposes of obtaining a property tax deduction for the property).
(b) IC 6-1.1-12-43 (Concerning a closing agent's failure to provide
a form concerning property tax benefits).
SECTION 68. IC 36-1-10-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 5. Notwithstanding
sections 6, 12, 16, and 17 of this chapter, the following procedure shall
be followed whenever a lease does not contain an option to purchase:
(1) The term of the lease may not be longer than ten (10) years;
however, a lease may be for a longer term if the lease is approved
by the department of local government finance.
(2) (1) The lease must provide that the lease is subject to annual
appropriation by the appropriate fiscal body.
(3) (2) The leasing agent must have a copy of the lease filed and
kept in a place available for public inspection.
A leasing agent may lease part of a structure.
SECTION 69. IC 36-1-10-16 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 16. (a) A political
subdivision or agency owning a structure with respect to which its
revenue bonds are outstanding may, to refinance those bonds, convey
the structure to the lessor in fee simple and lease it from the lessor in
accordance with this chapter. subject to the approval of the department
of local government finance.
(b) The price of a purchase under this section must be at least the
sum of:
(1) the principal amount of the outstanding revenue bonds;
(2) interest on those bonds to the maturity date of bonds not
subject to redemption before maturity and to the first redemption
date of bonds subject to redemption before maturity; and
(3) the redemption premiums on all bonds subject to redemption
before maturity.
An amount not less than this sum shall be deposited in trust for the
payment of the outstanding revenue bonds in a manner consistent with
the ordinance or trust agreement under which the bonds were issued.
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The money deposited in the trust, and investment income from it, not
required for the payment of the bonds, shall be applied to the payment
of the obligations issued by the lessor for the acquisition of the
structure, and to a corresponding reduction of rentals for the leasing
agent.
(c) Each lease entered into under this section must include an option
permitting the political subdivision or agency to purchase the structure
at a price not exceeding the amount required to retire all outstanding
obligations issued by the lessor to acquire the property covered by the
lease. The lease and sale of a parking facility under this section does
not preclude the lease of air rights.
SECTION 70. IC 36-7-14-22.7, AS ADDED BY P.L.169-2006,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 22.7. (a) The commission may dispose of real
property to which section 22.5 of this chapter applies by following the
procedure set forth in this section.
(b) The commission shall first have the property appraised by two
(2) appraisers. The appraisers must be:
(1) persons who are professionally engaged in making appraisals;
(2) persons who are licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the value
of the property.
The appraisers shall make a joint appraisal of the property.
(c) The commission may:
(1) negotiate a sale or transfer; and
(2) dispose of the property;
at a value that is not less than the appraised value determined under
subsection (b).
(d) Disposal of real property under this chapter section is subject to
the approval of the commission. The commission may not approve a
disposal of property without conducting a public hearing after giving
notice under IC 5-3-1.
(e) In addition to any other reason for disapproving a disposal of
property under this section, the commission may disapprove a sale of
a tract of residential property to any bidder who does not by affidavit
declare that the bidder will reside on that property for at least one (1)
year after the bidder obtains possession of the property.
SECTION 71. IC 36-7-14-39, AS AMENDED BY P.L.38-2021,
SECTION 88, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 39. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution and
allocation of property taxes.
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"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
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area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
may include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or amendment that establishes an allocation
provision must include a specific finding of fact, supported by
evidence, that the adoption of the allocation provision will result in
new property taxes in the area that would not have been generated but
for the adoption of the allocation provision. For an allocation area
established before July 1, 1995, the expiration date of any allocation
provisions for the allocation area is June 30, 2025, or the last date of
any obligations that are outstanding on July 1, 2015, whichever is later.
A declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision. For an allocation area established before July 1,
2008, the expiration date may not be more than thirty (30) years after
the date on which the allocation provision is established. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or lease
rentals on leases payable from tax increment revenues. However, with
respect to bonds or other obligations that were issued before July 1,
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2008, if any of the bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. Notwithstanding any other law, in the case of an
allocation area that is established after June 30, 2019, and that is
located in a redevelopment project area described in section
25.1(c)(3)(C) of this chapter, an economic development area described
in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, the expiration
date of the allocation provision may not be more than thirty-five (35)
years after the date on which the allocation provision is established.
The allocation provision may apply to all or part of the redevelopment
project area. The allocation provision must require that any property
taxes subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes on taxable property in the
allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the redevelopment district only to do one (1) or
more of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
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(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January 1,
2009, pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
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(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
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(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(M) Expend money and provide financial assistance as
authorized in section 12.2(a)(27) of this chapter.
The allocation fund may not be used for operating expenses of the
commission.
(4) Except as provided in subsection (g), before June 15 of each
year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to produce the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3), plus
the amount necessary for other purposes described in
subdivision (3).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The county auditor,
upon receiving the notice, shall forward this notice (in an
electronic format) to the department of local government
finance not later than June 15 of each year. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
of assessed value to the respective taxing units under this
subdivision if to do so would endanger the interests of the
holders of bonds described in subdivision (3) or lessors under
section 25.3 of this chapter.
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
HEA 1260 — CC 1 104
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (3); plus
(ii) the amount necessary for other purposes described in
subdivision (3);
the commission shall submit to the legislative body of the unit
its determination of the excess assessed value that the
commission proposes to allocate to the respective taxing units
in the manner prescribed in subdivision (1). The legislative
body of the unit may approve the commission's determination
or modify the amount of the excess assessed value that will be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
(5) Notwithstanding subdivision (4), in the case of an allocation
area that is established after June 30, 2019, and that is located in
a redevelopment project area described in section 25.1(c)(3)(C)
of this chapter, an economic development area described in
section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, for each
year the allocation provision is in effect, if the amount of excess
assessed value determined by the commission under subdivision
(4)(A) is expected to generate more than two hundred percent
(200%) of:
(A) the amount of allocated tax proceeds necessary to make,
when due, principal and interest payments on bonds described
in subdivision (3) for the project; plus
(B) the amount necessary for other purposes described in
subdivision (3) for the project;
the amount of the excess assessed value that generates more than
two hundred percent (200%) of the amounts described in clauses
(A) and (B) shall be allocated to the respective taxing units in the
manner prescribed by subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
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(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. The amount sufficient for purposes specified in
subsection (b)(3) for the year shall be determined based on the pro rata
portion of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that has no obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(3) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1) and (b)(2) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) and (b)(2)
from property located in the enterprise zone. The unit that creates the
special zone fund shall use the fund (based on the recommendations of
the urban enterprise association) for programs in job training, job
enrichment, and basic skill development that are designed to benefit
residents and employers in the enterprise zone or other purposes
specified in subsection (b)(3), except that where reference is made in
subsection (b)(3) to allocation area it shall refer for purposes of
payments from the special zone fund only to that part of the allocation
area that is also located in the enterprise zone. Those programs shall
reserve at least one-half (1/2) of their enrollment in any session for
residents of the enterprise zone.
HEA 1260 — CC 1 106
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment in an area under a reassessment plan prepared
under IC 6-1.1-4-4.2, the department of local government finance shall
adjust the base assessed value one (1) time to neutralize any effect of
the reassessment of the real property in the area on the property tax
proceeds allocated to the redevelopment district under this section.
After each annual adjustment under IC 6-1.1-4-4.5, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection:
(1) may not include the effect of phasing in assessed value due to
property tax abatements under IC 6-1.1-12.1;
(2) may not produce less property tax proceeds allocable to the
redevelopment district under subsection (b)(3) than would
otherwise have been received if the reassessment under the
reassessment plan or the annual adjustment had not occurred; and
(3) may decrease base assessed value only to the extent that
assessed values in the allocation area have been decreased due to
annual adjustments or the reassessment under the reassessment
plan.
Assessed value increases attributable to the application of an abatement
schedule under IC 6-1.1-12.1 may not be included in the base assessed
value of an allocation area. The department of local government
finance may prescribe procedures for county and township officials to
follow to assist the department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If a redevelopment commission adopts a declaratory resolution
HEA 1260 — CC 1 107
or an amendment to a declaratory resolution that contains an allocation
provision and the redevelopment commission makes either of the
filings required under section 17(e) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the unit is located shall compute the base
assessed value for the allocation area using the assessment date
immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that
is allocated to the one percent (1%) homestead land and
improvement categories in the county tax and billing software
system, along with the residential assessed value as defined for
purposes of calculating the rate for the local income tax property
tax relief credit designated for residential property under
IC 6-3.6-5-6(d)(3).
SECTION 72. IC 36-7-15.1-26, AS AMENDED BY P.L.156-2020,
SECTION 140, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 26. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
8 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
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determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
HEA 1260 — CC 1 109
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or
amendment that establishes an allocation provision must include a
specific finding of fact, supported by evidence, that the adoption of the
allocation provision will result in new property taxes in the area that
would not have been generated but for the adoption of the allocation
provision. For an allocation area established before July 1, 1995, the
expiration date of any allocation provisions for the allocation area is
June 30, 2025, or the last date of any obligations that are outstanding
on July 1, 2015, whichever is later. However, for an allocation area
identified as the Consolidated Allocation Area in the report submitted
in 2013 to the fiscal body under section 36.3 of this chapter, the
expiration date of any allocation provisions for the allocation area is
January 1, 2051. A declaratory resolution or an amendment that
establishes an allocation provision after June 30, 1995, must specify an
expiration date for the allocation provision. For an allocation area
established before July 1, 2008, the expiration date may not be more
than thirty (30) years after the date on which the allocation provision
is established. For an allocation area established after June 30, 2008,
the expiration date may not be more than twenty-five (25) years after
the date on which the first obligation was incurred to pay principal and
interest on bonds or lease rentals on leases payable from tax increment
revenues. However, with respect to bonds or other obligations that were
issued before July 1, 2008, if any of the bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the redevelopment project area. The allocation
provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
HEA 1260 — CC 1 110
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) that are physically located in or physically connected
to that allocation area.
HEA 1260 — CC 1 111
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (I), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(K) Expend money and provide financial assistance as
authorized in section 7(a)(21) of this chapter.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
HEA 1260 — CC 1 112
multiplied by the estimated tax rate of the allocation area will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area, and (in an
electronic format) the department of local government finance.
The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3).
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (3); plus
(ii) the amount necessary for other purposes described in
subdivision (3) and subsection (g);
the commission shall submit to the legislative body of the unit
the commission's determination of the excess assessed value
that the commission proposes to allocate to the respective
taxing units in the manner prescribed in subdivision (1). The
legislative body of the unit may approve the commission's
determination or modify the amount of the excess assessed
value that will be allocated to the respective taxing units in the
manner prescribed in subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
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allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
HEA 1260 — CC 1 114
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment under a reassessment plan prepared under
IC 6-1.1-4-4.2, the department of local government finance shall adjust
the base assessed value one (1) time to neutralize any effect of the
reassessment of the real property in the area on the property tax
proceeds allocated to the redevelopment district under this section.
After each annual adjustment under IC 6-1.1-4-4.5, the department of
local government finance shall adjust the base assessed value to
neutralize any effect of the annual adjustment on the property tax
proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection may not include the
effect of property tax abatements under IC 6-1.1-12.1, and these
adjustments may not produce less property tax proceeds allocable to
the redevelopment district under subsection (b)(3) than would
otherwise have been received if the reassessment under the
reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
HEA 1260 — CC 1 115
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that
is allocated to the one percent (1%) homestead land and
improvement categories in the county tax and billing software
system, along with the residential assessed value as defined for
purposes of calculating the rate for the local income tax property
tax relief credit designated for residential property under
IC 6-3.6-5-6(d)(3).
SECTION 73. IC 36-7-15.1-53, AS AMENDED BY P.L.156-2020,
SECTION 141, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 53. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
40 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means, subject to subsection (j):
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (h); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for the current assessment date.
Except as provided in section 55 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property.
HEA 1260 — CC 1 116
(b) A resolution adopted under section 40 of this chapter on or
before the allocation deadline determined under subsection (i) may
include a provision with respect to the allocation and distribution of
property taxes for the purposes and in the manner provided in this
section. A resolution previously adopted may include an allocation
provision by the amendment of that resolution on or before the
allocation deadline determined under subsection (i) in accordance with
the procedures required for its original adoption. A declaratory
resolution or an amendment that establishes an allocation provision
must be approved by resolution of the legislative body of the excluded
city and must specify an expiration date for the allocation provision.
For an allocation area established before July 1, 2008, the expiration
date may not be more than thirty (30) years after the date on which the
allocation provision is established. For an allocation area established
after June 30, 2008, the expiration date may not be more than
twenty-five (25) years after the date on which the first obligation was
incurred to pay principal and interest on bonds or lease rentals on
leases payable from tax increment revenues. However, with respect to
bonds or other obligations that were issued before July 1, 2008, if any
of the bonds or other obligations that were scheduled when issued to
mature before the specified expiration date and that are payable only
from allocated tax proceeds with respect to the allocation area remain
outstanding as of the expiration date, the allocation provision does not
expire until all of the bonds or other obligations are no longer
outstanding. The allocation provision may apply to all or part of the
redevelopment project area. The allocation provision must require that
any property taxes subsequently levied by or for the benefit of any
public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
HEA 1260 — CC 1 117
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 46 of this
chapter.
(G) Reimburse the excluded city for expenditures for local
public improvements (which include buildings, park facilities,
and other items set forth in section 45 of this chapter) that are
physically located in or physically connected to that allocation
area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
HEA 1260 — CC 1 118
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(4) Before June 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, the officers who are authorized
to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
each of the other taxing units that is wholly or partly located
within the allocation area, and (in an electronic format) the
department of local government finance. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
HEA 1260 — CC 1 119
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
HEA 1260 — CC 1 120
for enterprise zone residents in an enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(3). However, where reference is made in
subsection (b)(3) to the allocation area, the reference refers, for
purposes of payments from the special zone fund, only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment of real property in an area under a county's
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the redevelopment
district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall adjust
the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the redevelopment
district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the redevelopment district under subsection
(b)(3) than would otherwise have been received if the reassessment
under the county's reassessment plan or annual adjustment had not
occurred. The department of local government finance may prescribe
procedures for county and township officials to follow to assist the
department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
HEA 1260 — CC 1 121
(B) specifically designates a particular date as the final
allocation deadline.
(j) If the commission adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the commission makes either of the filings required
under section 10(e) of this chapter after the first anniversary of the
effective date of the allocation provision, the auditor of the county in
which the unit is located shall compute the base assessed value for the
allocation area using the assessment date immediately preceding the
later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(k) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that
is allocated to the one percent (1%) homestead land and
improvement categories in the county tax and billing software
system, along with the residential assessed value as defined for
purposes of calculating the rate for the local income tax property
tax relief credit designated for residential property under
IC 6-3.6-5-6(d)(3).
SECTION 74. IC 36-7-30-25, AS AMENDED BY P.L.156-2020,
SECTION 142, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 25. (a) The following definitions
apply throughout this section:
(1) "Allocation area" means that part of a military base reuse area
to which an allocation provision of a declaratory resolution
adopted under section 10 of this chapter refers for purposes of
distribution and allocation of property taxes.
(2) "Base assessed value" means, subject to subsection (i):
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment thereto, as finally determined for
any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
HEA 1260 — CC 1 122
the current assessment date.
Clause (C) applies only to allocation areas established in a
military reuse area after June 30, 1997, and to the part of an
allocation area that was established before June 30, 1997, and that
is added to an existing allocation area after June 30, 1997.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 10 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 13 of this chapter. The allocation
provision may apply to all or part of the military base reuse area. The
allocation provision must require that any property taxes subsequently
levied by or for the benefit of any public body entitled to a distribution
of property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the military base reuse district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the military base reuse district and only to do one
(1) or more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the military base reuse district
HEA 1260 — CC 1 123
or any other entity for the purpose of financing or refinancing
military base reuse activities in or directly serving or
benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the reuse
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) Pay expenses incurred by the reuse authority, any other
department of the unit, or a department of another
governmental entity for local public improvements or
structures that are in the allocation area or directly serving or
benefiting the allocation area, including expenses for the
operation and maintenance of these local public improvements
or structures if the reuse authority determines those operation
and maintenance expenses are necessary or desirable to carry
out the purposes of this chapter.
(F) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
(G) Expend money and provide financial assistance as
authorized in section 9(a)(25) of this chapter.
Except as provided in clause (E), the allocation fund may not be
used for operating expenses of the reuse authority.
(4) Except as provided in subsection (g), before July 15 of each
year the reuse authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
HEA 1260 — CC 1 124
principal and interest payments on bonds described in
subdivision (3) plus the amount necessary for other purposes
described in subdivision (3).
(B) Provide a written notice to the county auditor, the fiscal
body of the unit that established the reuse authority, and the
officers who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 for each of the other taxing units
that is wholly or partly located within the allocation area. The
notice must:
(i) state the amount, if any, of excess property taxes that the
reuse authority has determined may be paid to the respective
taxing units in the manner prescribed in subdivision (1); or
(ii) state that the reuse authority has determined that there
are no excess property tax proceeds that may be allocated to
the respective taxing units in the manner prescribed in
subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess property tax proceeds determined
by the reuse authority. The reuse authority may not authorize
a payment to the respective taxing units under this subdivision
if to do so would endanger the interest of the holders of bonds
described in subdivision (3) or lessors under section 19 of this
chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base reuse district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base reuse district for payment as
set forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the reuse authority, reassess the taxable property situated
upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
HEA 1260 — CC 1 125
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. The amount sufficient for purposes specified in
subsection (b)(3) for the year shall be determined based on the pro rata
part of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that does not have obligations, bonds, or leases payable from
allocated tax proceeds under subsection (b)(3) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) and (b)(2) that are derived from property
in the enterprise zone in the fund. The unit that creates the special zone
fund shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to allocation area it shall refer for purposes of payments from the
special zone fund only to that part of the allocation area that is also
located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each reassessment of real property in an area under the
county's reassessment plan under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the military base
reuse district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall adjust
the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the military base
reuse district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
HEA 1260 — CC 1 126
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the military base reuse district under subsection
(b)(3) than would otherwise have been received if the reassessment
under the county's reassessment plan or annual adjustment had not
occurred. The department of local government finance may prescribe
procedures for county and township officials to follow to assist the
department in making the adjustments.
(i) If the reuse authority adopts a declaratory resolution or an
amendment to a declaratory resolution that contains an allocation
provision and the reuse authority makes either of the filings required
under section 12(c) or 13(f) of this chapter after the first anniversary of
the effective date of the allocation provision, the auditor of the county
in which the military base reuse district is located shall compute the
base assessed value for the allocation area using the assessment date
immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that
is allocated to the one percent (1%) homestead land and
improvement categories in the county tax and billing software
system, along with the residential assessed value as defined for
purposes of calculating the rate for the local income tax property
tax relief credit designated for residential property under
IC 6-3.6-5-6(d)(3).
SECTION 75. IC 36-7-30.5-30, AS AMENDED BY P.L.156-2020,
SECTION 143, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 30. (a) The following definitions
apply throughout this section:
(1) "Allocation area" means that part of a military base
development area to which an allocation provision of a
declaratory resolution adopted under section 16 of this chapter
refers for purposes of distribution and allocation of property taxes.
(2) "Base assessed value" means, subject to subsection (i):
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment to the declaratory resolution, as
HEA 1260 — CC 1 127
finally determined for any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 16 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 18 of this chapter. The allocation
provision may apply to all or part of the military base development
area. The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the development authority and, when
collected, paid into an allocation fund for that allocation area that
may be used by the development authority and only to do one (1)
or more of the following:
(A) Pay the principal of and interest and redemption premium
HEA 1260 — CC 1 128
on any obligations incurred by the development authority or
any other entity for the purpose of financing or refinancing
military base development or reuse activities in or directly
serving or benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the development
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) For property taxes first due and payable before 2009, pay
all or a part of a property tax replacement credit to taxpayers
in an allocation area as determined by the development
authority. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district (as
defined in IC 6-1.1-1-20) that contains all or part of the
allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; by
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
32 of this chapter (before its repeal) in the same year.
(F) Pay expenses incurred by the development authority for
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local public improvements or structures that were in the
allocation area or directly serving or benefiting the allocation
area.
(G) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
(H) Expend money and provide financial assistance as
authorized in section 15(26) of this chapter.
The allocation fund may not be used for operating expenses of the
development authority.
(4) Except as provided in subsection (g), before July 15 of each
year the development authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (3) plus the amount necessary for other purposes
described in subdivisions (2) and (3).
(B) Provide a written notice to the appropriate county auditors
and the fiscal bodies and other officers who are authorized to
fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
each of the other taxing units that is wholly or partly located
within the allocation area. The notice must:
(i) state the amount, if any, of the excess property taxes that
the development authority has determined may be paid to
the respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the development authority has determined that
there is no excess assessed value that may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1).
The county auditors shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
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development authority. The development authority may not
authorize a payment to the respective taxing units under this
subdivision if to do so would endanger the interest of the
holders of bonds described in subdivision (3) or lessors under
section 24 of this chapter. Property taxes received by a taxing
unit under this subdivision before 2009 are eligible for the
property tax replacement credit provided under IC 6-1.1-21
(before its repeal).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base development
district under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base development district for
payment as set forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the development authority, reassess the taxable property
situated upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the development authority shall create funds
as specified in this subsection. A development authority that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. The
development authority shall, until the end of the enterprise zone phase
out period, deposit each year in the special zone fund any amount in the
allocation fund derived from property tax proceeds in excess of those
described in subsection (b)(1) and (b)(2) from property located in the
enterprise zone that exceeds the amount sufficient for the purposes
specified in subsection (b)(3) for the year. The amount sufficient for
purposes specified in subsection (b)(3) for the year shall be determined
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based on the pro rata part of such current property tax proceeds from
the part of the enterprise zone that is within the allocation area as
compared to all such current property tax proceeds derived from the
allocation area. A development authority that does not have
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
and (b)(2) that are derived from property in the enterprise zone in the
fund. The development authority that creates the special zone fund
shall use the fund (based on the recommendations of the urban
enterprise association) for programs in job training, job enrichment,
and basic skill development that are designed to benefit residents and
employers in the enterprise zone or for other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to an allocation area it shall refer for purposes of payments from
the special zone fund only to that part of the allocation area that is also
located in the enterprise zone. The programs shall reserve at least
one-half (1/2) of their enrollment in any session for residents of the
enterprise zone.
(h) After each reassessment of real property in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the military base
development district under this section. After each annual adjustment
under IC 6-1.1-4-4.5, the department of local government finance shall
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the military base
development district under this section. However, the adjustments
under this subsection may not include the effect of property tax
abatements under IC 6-1.1-12.1, and these adjustments may not
produce less property tax proceeds allocable to the military base
development district under subsection (b)(3) than would otherwise
have been received if the reassessment under the county's reassessment
plan or annual adjustment had not occurred. The department of local
government finance may prescribe procedures for county and township
officials to follow to assist the department in making the adjustments.
(i) If the development authority adopts a declaratory resolution or
an amendment to a declaratory resolution that contains an allocation
provision and the development authority makes either of the filings
required under section 17(e) or 18(f) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the military base development district is located
shall compute the base assessed value for the allocation area using the
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assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that
is allocated to the one percent (1%) homestead land and
improvement categories in the county tax and billing software
system, along with the residential assessed value as defined for
purposes of calculating the rate for the local income tax property
tax relief credit designated for residential property under
IC 6-3.6-5-6(d)(3).
SECTION 76. IC 36-8-8-14.2, AS ADDED BY P.L.159-2020,
SECTION 83, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 14.2. (a) This section applies to every unit that is
an employer of one (1) or more individuals who are active members of
the 1977 fund.
(b) As used in this section, "survivor" means:
(1) a surviving spouse of a deceased member of the 1977 fund; or
(2) a surviving natural child, stepchild, or adopted child of a
deceased member of the 1977 fund;
who is entitled to health insurance coverage under section 14.1(h) of
this chapter.
(c) If a unit is obligated under section 14.1(h) of this chapter to pay
for health insurance coverage for one (1) or more survivors of a
deceased member of the 1977 fund who died in the line of duty, the
legislative body of the unit may establish a public safety officer
survivors' health coverage cumulative fund under this section to pay for
health coverage under section 14.1(h) of this chapter.
(d) The fiscal body of a unit may provide money for a public safety
officer survivors' health coverage cumulative fund established under
subsection (c) by levying a tax in compliance with IC 6-1.1-41 on the
taxable property in the unit.
(e) The property tax rate that may be imposed under this section for
property taxes first due and payable during a particular year may not
exceed the rate necessary to pay the annual cost of the health coverage
that the unit is obligated to pay under section 14.1(h) of this chapter.
The unit shall provide any documentation requested by the department
of local government finance that is necessary to certify the rate adopted
by the unit. The unit's maximum permissible ad valorem property tax
levy determined under IC 6-1.1-18.5-3 excludes the property tax levied
under this section. The property tax rate imposed under this section
is exempt from the adjustment under IC 6-1.1-18-12.
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(f) The tax money collected under this section shall be held in a
special fund to be known as the public safety officer survivors' health
coverage cumulative fund.
(g) In a consolidated city, money may be transferred from the public
safety officer survivors' health coverage cumulative fund to the fund of
a department of the consolidated city responsible for carrying out a
purpose for which the public safety officer survivors' health coverage
cumulative fund was created. The department may not expend any
money transferred under this subsection until an appropriation is made,
and the department may not expend any money transferred under this
subsection for operating costs of the department.
SECTION 77. IC 36-9-27-48, AS AMENDED BY P.L.127-2017,
SECTION 339, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2022]: Sec. 48. (a) Whenever, in the
construction or reconstruction of a regulated drain, the county surveyor
determines that:
(1) the proposed drain will cross a pipeline, cable, or similar
equipment of a public utility; and
(2) the equipment will interfere with the proper operation of the
drain;
the county surveyor shall include in the county surveyor's plans the
relocation requirements of the equipment. The county surveyor shall,
by registered mail or certified mail, send a copy of the requirements
to the public utility owning the equipment.
(b) If requested by the public utility, the county surveyor shall meet
with the public utility at a time and place to be fixed by the county
surveyor and hear objections to the requirements. After the hearing, the
county surveyor may change the requirements as justice may require.
(c) If the board finds that the relocation of a pipeline, cable, or
similar equipment owned by a public utility is necessary in the
construction or reconstruction of a regulated drain, the cost of
relocation shall be paid by the public utility.
SECTION 78. [EFFECTIVE JULY 1, 2022] (a) IC 6-1.1-12-9,
IC 6-1.1-12-14, and IC 6-1.1-20.6-8.5, all as amended by this act,
apply to taxable years beginning after December 31, 2022.
(b) This SECTION expires July 1, 2025.
SECTION 79. [EFFECTIVE JANUARY 1, 2020
(RETROACTIVE)] (a) This SECTION applies notwithstanding
IC 6-1.1-10, IC 6-1.1-11, or any other law or administrative rule or
provision.
(b) This SECTION applies to assessment dates after December
31, 2019, and before January 1, 2022.
(c) As used in this SECTION, "eligible property" means any
real property:
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(1) that is owned, occupied, and used by a taxpayer that is a
church or religious society and is used for one (1) or more of
the purposes described in IC 6-1.1-10-16 or IC 6-1.1-10-21;
(2) that is a parcel that was purchased by the taxpayer in
2019;
(3) on which property taxes were imposed for the 2020 and
2021 assessment dates; and
(4) that would have been eligible for an exemption under
IC 6-1.1-10-16 or IC 6-1.1-10-21 for the 2020 and 2021
assessment dates if an exemption application had been
properly and timely filed under IC 6-1.1 for the property.
(d) Before September 1, 2022, the owner of eligible property
may file a property tax exemption application and supporting
documents claiming a property tax exemption under this
SECTION for the eligible property for the 2020 and 2021
assessment dates.
(e) A property tax exemption application filed as provided in
subsection (d) is considered to have been properly and timely filed
for each assessment date.
(f) The following apply if the owner of eligible property files a
property tax exemption application as provided in subsection (d):
(1) The property tax exemption for the eligible property shall
be allowed and granted for the applicable assessment date by
the county assessor and county auditor of the county in which
the eligible property is located.
(2) The owner of the eligible property is not required to pay
any property taxes, penalties, or interest with respect to the
eligible property for the applicable assessment date.
(g) The exemption allowed by this SECTION shall be applied
without the need for any further ruling or action by the county
assessor, the county auditor, or the county property tax assessment
board of appeals of the county in which the eligible property is
located or by the Indiana board of tax review.
(h) To the extent the owner of the eligible property has paid any
property taxes, penalties, or interest with respect to the eligible
property for an applicable date and to the extent that the eligible
property is exempt from taxation as provided in this SECTION,
the owner of the eligible property is entitled to a refund of the
amounts paid. The owner is not entitled to any interest on the
refund under IC 6-1.1 or any other law to the extent interest has
not been paid by or on behalf of the owner. Notwithstanding the
filing deadlines for a claim under IC 6-1.1-26, any claim for a
refund filed by the owner of eligible property under this SECTION
before September 1, 2022, is considered timely filed. The county
auditor shall pay the refund due under this SECTION in one (1)
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installment.
(i) This SECTION expires June 30, 2024.
SECTION 80. An emergency is declared for this act.
HEA 1260 — CC 1 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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