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Indiana House Bill HB1085

Indiana 2023 Regular Session

Indiana House Bill HB1085 Compare Versions

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1-*HB1085.3*
1+*HB1085.2*
22 Reprinted
3-February 23, 2023
3+February 17, 2023
44 HOUSE BILL No. 1085
55 _____
6-DIGEST OF HB 1085 (Updated February 22, 2023 3:14 pm - DI 116)
6+DIGEST OF HB 1085 (Updated February 16, 2023 1:20 pm - DI 129)
77 Citations Affected: IC 6-1.1; IC 20-26; IC 36-7; IC 36-7.5; IC 36-8.
8-Synopsis: Tax increment financing. Makes changes to the membership
9-compositions of redevelopment commissions. Provides that the
8+Synopsis: Tax increment financing. Requires that one member of a
9+redevelopment commission must be appointed by the governing body
10+of the school corporation within the territory. Provides that the
1011 president and vice president of a redevelopment commission shall not
1112 have the same appointing authority. Requires a commission to provide
1213 an annual spending plan listing planned expenditures for the next
1314 calendar year. Provides that a commission may accelerate payments
1415 toward debt service obligations, in order to retire debt service earlier,
1516 regardless of whether that use is listed in the annual spending plan.
1617 Provides that a commission making accelerated debt payments may
1718 retain the assessed value associated with the original debt service
1819 schedule. Requires a commission to provide fund balances to the
1920 department of local government finance at the end of a calendar year.
2021 Provides that except for property tax proceeds transferred to a school
2122 corporation or public school, including a charter school, allocated
2223 property tax proceeds may be expended for projects located outside an
2324 allocation area only if the commission adopts a declaratory resolution
2425 that finds that the expenditures: (1) will directly benefit the allocation
2526 area; or (2) will result in the creation or retention of jobs in the private
2627 sector. Provides that specified amounts collected in an allocation area
27-must be allocated to certain taxing units that provide police or fire
28+must be allocated to school corporations and to certain taxing units that
2829 (Continued next page)
2930 Effective: Upon passage; January 1, 2023 (retroactive); July 1, 2023;
3031 January 1, 2024.
3132 Cherry, Clere, Pryor
3233 January 9, 2023, read first time and referred to Committee on Ways and Means.
3334 February 14, 2023, amended, reported — Do Pass.
3435 February 16, 2023, read second time, amended, ordered engrossed.
35-February 17, 2023, engrossed.
36-February 21, 2023, returned to second reading.
37-February 22, 2023, re-read second time, amended, ordered engrossed.
3836 HB 1085—LS 6819/DI 116 Digest Continued
39-services in the allocation area and specifies the manner in which those
40-allocation calculations are to be made. Provides that the amount of
41-assessed value in excess of the 200% required to make principal and
42-interest payments on bonds may be used for non-debt, one time
43-purposes within a calendar year before allocating the balance of the
44-excess assessed value to the respective taxing units. Provides that the
45-expiration date of an allocation area may not be extended. Provides that
46-a commission may, pursuant to the approval of the local legislative
47-body, create an account for a specific infrastructure purpose. Provides
48-that for a bond issuance related exclusively for infrastructure in an
49-allocation area, new bonds may only be issued by an existing
50-commission between July 1, 2023, and January 1, 2025. Provides that,
51-for 2023, an ordinance or resolution to establish or expand a fire
52-protection territory is adopted after the legislative body holds at least
53-three public hearings to receive public comment on the proposed
54-ordinance or resolution in which: (1) at least one public hearing must
55-be held at least 25 days before the legislative body votes on the
56-adoption of the ordinance or resolution; and (2) at least two additional
57-public hearings must be held not later than five days before the
58-legislative body votes on the adoption of the ordinance or resolution.
59-Provides that the excess of the proceeds of the property taxes
60-attributable to an increase in the property tax rate for a participating
61-unit of a fire protection territory that is established after the
62-establishment of a tax increment financing area located outside of
37+provide police or fire services in the allocation area and specifies the
38+manner in which those allocation calculations are to be made. Provides
39+that the amount of assessed value in excess of the 200% required to
40+make principal and interest payments on bonds may be used for non-
41+debt, one time purposes within a calendar year before allocating the
42+balance of the excess assessed value to the respective taxing units.
43+Provides that the expiration date of an allocation area may not be
44+extended. Provides that a commission may, pursuant to the approval of
45+the local legislative body, create an account for a specific infrastructure
46+purpose. Provides that for a bond issuance related exclusively for
47+infrastructure in an allocation area, new bonds may only be issued by
48+an existing commission between July 1, 2023, and January 1, 2025.
49+Provides that, for 2023, an ordinance or resolution to establish or
50+expand a fire protection territory is adopted after the legislative body
51+holds at least three public hearings to receive public comment on the
52+proposed ordinance or resolution in which: (1) at least one public
53+hearing must be held at least 25 days before the legislative body votes
54+on the adoption of the ordinance or resolution; and (2) at least two
55+additional public hearings must be held not later than five days before
56+the legislative body votes on the adoption of the ordinance or
57+resolution. Provides that the excess of the proceeds of the property
58+taxes attributable to an increase in the property tax rate for a
59+participating unit of a fire protection territory that is established after
60+the establishment of a tax increment financing area located outside of
6361 Marion County shall be allocated to and distributed in the form of an
6462 assessed value pass back to the participating unit of the fire protection
6563 territory and not to the redevelopment district.
6664 HB 1085—LS 6819/DI 116HB 1085—LS 6819/DI 116 Reprinted
67-February 23, 2023
65+February 17, 2023
6866 First Regular Session of the 123rd General Assembly (2023)
6967 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
7068 Constitution) is being amended, the text of the existing provision will appear in this style type,
7169 additions will appear in this style type, and deletions will appear in this style type.
7270 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
7371 provision adopted), the text of the new provision will appear in this style type. Also, the
7472 word NEW will appear in that style type in the introductory clause of each SECTION that adds
7573 a new provision to the Indiana Code or the Indiana Constitution.
7674 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
7775 between statutes enacted by the 2022 Regular Session of the General Assembly.
7876 HOUSE BILL No. 1085
7977 A BILL FOR AN ACT to amend the Indiana Code concerning
8078 taxation.
8179 Be it enacted by the General Assembly of the State of Indiana:
8280 1 SECTION 1. IC 6-1.1-21.2-8, AS AMENDED BY P.L.203-2011,
8381 2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8482 3 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 8. As used in this
8583 4 chapter, "special fund" means:
8684 5 (1) the special funds referred to in IC 6-1.1-39-5;
8785 6 (2) the special funds referred to in IC 8-22-3.5-9(e);
8886 7 (3) the allocation fund referred to in IC 36-7-14-39(b)(3);
8987 8 IC 36-7-14-39(b)(5);
9088 9 (4) the allocation fund referred to in IC 36-7-14.5-12.5(d);
9189 10 (5) the special fund referred to in IC 36-7-15.1-26(b)(3);
9290 11 (6) the special fund referred to in IC 36-7-15.1-53(b)(3);
9391 12 IC 36-7-15.1-53(b)(4);
9492 13 (7) the allocation fund referred to in IC 36-7-30-25(b)(3); or
9593 14 (8) the allocation fund referred to in IC 36-7-30.5-30(b)(3).
9694 15 SECTION 2. IC 20-26-5-43 IS ADDED TO THE INDIANA CODE
9795 16 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
9896 HB 1085—LS 6819/DI 116 2
9997 1 1, 2023]: Sec. 43. A school corporation that receives a distribution
100-2 under IC 36-7-14-39(l) or IC 36-7-15.1-53(m) may use the proceeds
101-3 only to supplement other funding received by the school
102-4 corporation for career and technical education.
103-5 SECTION 3. IC 36-7-14-3, AS AMENDED BY P.L.149-2014,
104-6 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
105-7 JANUARY 1, 2024]: Sec. 3. (a) A unit may establish a department of
106-8 redevelopment controlled by a board of five (5) four (4) members to be
107-9 known as "__________ Redevelopment Commission", designating the
108-10 name of the municipality or county. However, in the case of a county,
109-11 the county executive may adopt an ordinance providing that the county
110-12 redevelopment commission consists of seven (7) six (6) members.
111-13 (b) A redevelopment commission and a department of
112-14 redevelopment are subject to oversight by the legislative body of the
113-15 unit, including a review by the legislative body of the commission's and
114-16 department's annual budget. A redevelopment commission and a
115-17 department of redevelopment are:
116-18 (1) subject to audit by the state board of accounts under IC 5-11;
117-19 (2) covered by IC 5-14-1.5 (the public meetings law); and
118-20 (3) covered by IC 5-14-3 (the public records law).
119-21 (c) Subject to section 3.5 of this chapter, all of the territory within
120-22 the corporate boundaries of a municipality constitutes a taxing district
121-23 for the purpose of levying and collecting special benefit taxes for
122-24 redevelopment purposes as provided in this chapter. Subject to section
123-25 3.5 of this chapter, all of the territory in a county, except that within a
124-26 municipality that has a redevelopment commission, constitutes a taxing
125-27 district for a county.
126-28 (d) All of the taxable property within a taxing district is considered
127-29 to be benefited by redevelopment projects carried out under this
128-30 chapter to the extent of the special taxes levied under this chapter.
129-31 SECTION 4. IC 36-7-14-6.1, AS AMENDED BY P.L.55-2016,
130-32 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
131-33 JANUARY 1, 2024]: Sec. 6.1. (a) The five (5) four (4) commissioners
132-34 for a municipal redevelopment commission shall be appointed as
133-35 follows:
134-36 (1) Three (3) Two (2) shall be appointed by the municipal
135-37 executive.
136-38 (2) Two (2) shall be appointed by the municipal legislative body.
137-39 The municipal executive shall also appoint an individual to serve as a
138-40 nonvoting adviser to the redevelopment commission beginning July 1,
139-41 2008.
140-42 (b) The commissioners for a county redevelopment commission that
98+2 under IC 36-7-14-39(b)(2), IC 36-7-14-39(l), IC 36-7-15.1-53(b)(2),
99+3 or IC 36-7-15.1-53(m) may use the proceeds only to supplement
100+4 other funding received by the school corporation for career and
101+5 technical education.
102+6 SECTION 3. IC 36-7-14-6.1, AS AMENDED BY P.L.55-2016,
103+7 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
104+8 JANUARY 1, 2024]: Sec. 6.1. (a) The five (5) commissioners for a
105+9 municipal redevelopment commission shall be appointed as follows:
106+10 (1) Three (3) Two (2) shall be appointed by the municipal
107+11 executive.
108+12 (2) Two (2) shall be appointed by the municipal legislative body.
109+13 (3) Subject to subsection (d), one (1) member shall be
110+14 appointed by the governing body of the school corporation
111+15 located within the commission's territory.
112+16 The municipal executive shall also appoint an individual to serve as a
113+17 nonvoting adviser to the redevelopment commission beginning July 1,
114+18 2008.
115+19 (b) The commissioners for a county redevelopment commission that
116+20 has five (5) members shall be appointed as follows:
117+21 (1) The county executive shall appoint all the members whose
118+22 terms of office begin before January 1, 2008.
119+23 (2) (1) For terms of office beginning after December 31, 2007,
120+24 The county executive shall appoint three (3) two (2) members,
121+25 and the county fiscal body shall appoint two (2) members.
122+26 (2) Subject to subsection (d), one (1) member shall be
123+27 appointed by the governing body of the school corporation
124+28 located within the commission's territory.
125+29 The county executive shall also appoint an individual to serve as a
126+30 nonvoting adviser to the redevelopment commission beginning July 1,
127+31 2008.
128+32 (c) The commissioners for a county redevelopment commission that
129+33 has seven (7) members shall be appointed as follows:
130+34 (1) The county executive shall appoint all the members whose
131+35 terms of office begin before January 1, 2008.
132+36 (2) (1) For terms of office beginning after December 31, 2007,
133+37 The county executive shall appoint four (4) three (3) members,
134+38 and the county fiscal body shall appoint three (3) members.
135+39 (2) Subject to subsection (d), one (1) member shall be
136+40 appointed by the governing body of the school corporation
137+41 located within the commission's territory.
138+42 The county executive shall also appoint an individual to serve as a
141139 HB 1085—LS 6819/DI 116 3
142-1 has five (5) four (4) members shall be appointed as follows:
143-2 (1) The county executive shall appoint all the members whose
144-3 terms of office begin before January 1, 2008.
145-4 (2) For terms of office beginning after December 31, 2007, the
146-5 county executive shall appoint three (3) two (2) members, and the
147-6 county fiscal body shall appoint two (2) members.
148-7 The county executive shall also appoint an individual to serve as a
149-8 nonvoting adviser to the redevelopment commission beginning July 1,
150-9 2008.
151-10 (c) The commissioners for a county redevelopment commission that
152-11 has seven (7) six (6) members shall be appointed as follows:
153-12 (1) The county executive shall appoint all the members whose
154-13 terms of office begin before January 1, 2008.
155-14 (2) For terms of office beginning after December 31, 2007, the
156-15 county executive shall appoint four (4) three (3) members, and
157-16 the county fiscal body shall appoint three (3) members.
158-17 The county executive shall also appoint an individual to serve as a
159-18 nonvoting adviser to the redevelopment commission beginning July 1,
160-19 2008.
161-20 (d) A nonvoting adviser appointed under this section:
162-21 (1) must also be a member of the school board of a school
163-22 corporation that includes all or part of the territory served by the
164-23 redevelopment commission or an individual recommended by the
165-24 school board to the entity that appoints the nonvoting adviser;
166-25 (2) is not considered a member of the redevelopment commission
167-26 for purposes of this chapter but is entitled to attend and
168-27 participate in the proceedings of all meetings of the
169-28 redevelopment commission;
170-29 (3) is not entitled to a salary, per diem, or reimbursement of
171-30 expenses;
172-31 (4) serves for a term of two (2) years and until a successor is
173-32 appointed; and
174-33 (5) serves at the pleasure of the entity that appointed the
175-34 nonvoting adviser.
176-35 SECTION 5. IC 36-7-14-8, AS AMENDED BY P.L.85-2017,
177-36 SECTION 121, IS AMENDED TO READ AS FOLLOWS
178-37 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) The redevelopment
179-38 commissioners shall hold a meeting for the purpose of organization not
180-39 later than thirty (30) days after they are appointed and, after that, each
181-40 year on a day that is not a Saturday, a Sunday, or a legal holiday and
182-41 that is their first meeting day of the year. They shall choose one (1) of
183-42 their members as president, another as vice president, and another as
140+1 nonvoting adviser to the redevelopment commission beginning July 1,
141+2 2008.
142+3 (d) A nonvoting adviser appointed under this section:
143+4 (1) must also be a member of the school board of a school
144+5 corporation that includes all or part of the territory served by the
145+6 redevelopment commission or an individual recommended by the
146+7 school board to the entity that appoints the nonvoting adviser;
147+8 (2) is not considered a member of the redevelopment commission
148+9 for purposes of this chapter but is entitled to attend and
149+10 participate in the proceedings of all meetings of the
150+11 redevelopment commission;
151+12 (3) is not entitled to a salary, per diem, or reimbursement of
152+13 expenses;
153+14 (4) serves for a term of two (2) years and until a successor is
154+15 appointed; and
155+16 (5) serves at the pleasure of the entity that appointed the
156+17 nonvoting adviser.
157+18 (d) If there are multiple school corporations within a
158+19 redevelopment commission's territory, for the first municipal or
159+20 county redevelopment commission member term beginning after
160+21 December 31, 2023, the governing body of the school corporation
161+22 within the commission's territory that has the greatest assessed
162+23 value shall first appoint the member described in subsections
163+24 (a)(3), (b)(2), or (c)(2). For the subsequent member term, the
164+25 governing body of the school corporation within the commission's
165+26 territory that has the second greatest assessed value shall appoint
166+27 the member described in subsections (a)(3), (b)(2), or (c)(2),
167+28 followed by appointment by the governing body of the school
168+29 corporation within the commission's territory that has the third
169+30 greatest assessed value for the next member term, and so on,
170+31 consecutively, until each governing body of a school corporation
171+32 within the commission's territory has appointed the member.
172+33 When the governing body of the school corporation within the
173+34 commission's territory that has the lowest assessed value has
174+35 appointed the member, the appointment process starts over with
175+36 the governing body of the school corporation within the
176+37 commission's territory that has the greatest assessed value making
177+38 the appointment.
178+39 SECTION 4. IC 36-7-14-8, AS AMENDED BY P.L.85-2017,
179+40 SECTION 121, IS AMENDED TO READ AS FOLLOWS
180+41 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) The redevelopment
181+42 commissioners shall hold a meeting for the purpose of organization not
184182 HB 1085—LS 6819/DI 116 4
185-1 secretary. The president and vice president shall not have the same
186-2 appointing authority. These officers shall perform the duties usually
187-3 pertaining to their offices and shall serve from the date of their election
188-4 until their successors are elected and qualified.
189-5 (b) The fiscal officer of the unit establishing a redevelopment
190-6 commission is the treasurer of the redevelopment commission.
191-7 Notwithstanding any other provision of this chapter, but subject to
192-8 subsection (c), the treasurer has charge over and is responsible for the
193-9 administration, investment, and disbursement of all funds and accounts
194-10 of the redevelopment commission in accordance with the requirements
195-11 of state laws that apply to other funds and accounts administered by the
196-12 fiscal officer. The treasurer shall report annually to the redevelopment
197-13 commission before April 1.
198-14 (c) The treasurer of the redevelopment commission may disburse
199-15 funds of the redevelopment commission only after the redevelopment
200-16 commission allows and approves the disbursement. However, the
201-17 redevelopment commission may, by rule or resolution, authorize the
202-18 treasurer to make certain types of disbursements before the
203-19 redevelopment commission's allowance and approval at its next regular
204-20 meeting.
205-21 (d) The following apply to funds of the redevelopment commission:
206-22 (1) The funds must be accounted for separately by the unit
207-23 establishing the redevelopment commission and the daily balance
208-24 of the funds must be maintained in a separate ledger statement.
209-25 (2) Except as provided in subsection (e), all funds designated as
210-26 redevelopment commission funds must be accessible to the
211-27 redevelopment commission at any time.
212-28 (3) The amount of the daily balance of redevelopment
213-29 commission funds may not be below zero (0) at any time.
214-30 (4) The funds may not be maintained or used in a manner that is
215-31 intended to avoid the waiver procedures and requirements for a
216-32 unit and the redevelopment commission under subsection (e).
217-33 (e) If the fiscal body of a unit determines that it is necessary to
218-34 engage in short term borrowing until the next tax collection period, the
219-35 fiscal body of the unit may request approval from the redevelopment
220-36 commission to waive the requirement in subsection (d)(2). In order to
221-37 waive the requirement under subsection (d)(2), the fiscal body of the
222-38 unit and the redevelopment commission must adopt similar resolutions
223-39 that set forth:
224-40 (1) the amount of the funds designated as redevelopment
225-41 commission funds that are no longer accessible to the
226-42 redevelopment commission under the waiver; and
183+1 later than thirty (30) days after they are appointed and, after that, each
184+2 year on a day that is not a Saturday, a Sunday, or a legal holiday and
185+3 that is their first meeting day of the year. They shall choose one (1) of
186+4 their members as president, another as vice president, and another as
187+5 secretary. The president and vice president shall not have the same
188+6 appointing authority. These officers shall perform the duties usually
189+7 pertaining to their offices and shall serve from the date of their election
190+8 until their successors are elected and qualified.
191+9 (b) The fiscal officer of the unit establishing a redevelopment
192+10 commission is the treasurer of the redevelopment commission.
193+11 Notwithstanding any other provision of this chapter, but subject to
194+12 subsection (c), the treasurer has charge over and is responsible for the
195+13 administration, investment, and disbursement of all funds and accounts
196+14 of the redevelopment commission in accordance with the requirements
197+15 of state laws that apply to other funds and accounts administered by the
198+16 fiscal officer. The treasurer shall report annually to the redevelopment
199+17 commission before April 1.
200+18 (c) The treasurer of the redevelopment commission may disburse
201+19 funds of the redevelopment commission only after the redevelopment
202+20 commission allows and approves the disbursement. However, the
203+21 redevelopment commission may, by rule or resolution, authorize the
204+22 treasurer to make certain types of disbursements before the
205+23 redevelopment commission's allowance and approval at its next regular
206+24 meeting.
207+25 (d) The following apply to funds of the redevelopment commission:
208+26 (1) The funds must be accounted for separately by the unit
209+27 establishing the redevelopment commission and the daily balance
210+28 of the funds must be maintained in a separate ledger statement.
211+29 (2) Except as provided in subsection (e), all funds designated as
212+30 redevelopment commission funds must be accessible to the
213+31 redevelopment commission at any time.
214+32 (3) The amount of the daily balance of redevelopment
215+33 commission funds may not be below zero (0) at any time.
216+34 (4) The funds may not be maintained or used in a manner that is
217+35 intended to avoid the waiver procedures and requirements for a
218+36 unit and the redevelopment commission under subsection (e).
219+37 (e) If the fiscal body of a unit determines that it is necessary to
220+38 engage in short term borrowing until the next tax collection period, the
221+39 fiscal body of the unit may request approval from the redevelopment
222+40 commission to waive the requirement in subsection (d)(2). In order to
223+41 waive the requirement under subsection (d)(2), the fiscal body of the
224+42 unit and the redevelopment commission must adopt similar resolutions
227225 HB 1085—LS 6819/DI 116 5
228-1 (2) an expiration date for the waiver.
229-2 If a loan is made to a unit from funds designated as redevelopment
230-3 funds, the loan must be repaid by the unit and the funds made
231-4 accessible to the redevelopment commission not later than the end of
232-5 the calendar year in which the funds are received by the unit.
233-6 (f) Subsections (d) and (e) do not restrict transfers or uses by a
234-7 redevelopment commission made to meet commitments under a written
235-8 agreement of the redevelopment commission that was entered into
236-9 before January 1, 2016, if the written agreement complied with the
237-10 requirements existing under the law at the time the redevelopment
238-11 commission entered into the written agreement.
239-12 (g) The redevelopment commissioners may adopt the rules and
240-13 bylaws they consider necessary for the proper conduct of their
241-14 proceedings, the carrying out of their duties, and the safeguarding of
242-15 the money and property placed in their custody by this chapter. In
243-16 addition to the annual meeting, the commissioners may, by resolution
244-17 or in accordance with their rules and bylaws, prescribe the date and
245-18 manner of notice of other regular or special meetings.
246-19 (h) This subsection does not apply to a county redevelopment
247-20 commission that consists of seven (7) six (6) members. Three (3) of the
248-21 redevelopment commissioners constitute a quorum, and the
249-22 concurrence of three (3) commissioners is necessary to authorize any
250-23 action.
251-24 (i) This subsection applies only to a county redevelopment
252-25 commission that consists of seven (7) six (6) members. Four (4) of the
253-26 redevelopment commissioners constitute a quorum, and the
254-27 concurrence of four (4) commissioners is necessary to authorize any
255-28 action.
256-29 SECTION 6. IC 36-7-14-12.7 IS ADDED TO THE INDIANA
257-30 CODE AS A NEW SECTION TO READ AS FOLLOWS
258-31 [EFFECTIVE JULY 1, 2023]: Sec. 12.7. (a) Not later than December
259-32 1 each year, the redevelopment commissioners shall file with the
260-33 department of local government finance and with the unit's
261-34 executive and fiscal body a report setting out a spending plan for
262-35 the next calendar year describing planned expenditures.
263-36 (b) Except as provided in subsection (c), a redevelopment
264-37 commission may use money from the redevelopment commission's
265-38 allocation fund described in section 39(b)(5) of this chapter and
266-39 any other fund maintained by the redevelopment commission only
267-40 for the purposes provided in the annual spending plan described in
268-41 subsection (a).
269-42 (c) A redevelopment commission may use money from funds
226+1 that set forth:
227+2 (1) the amount of the funds designated as redevelopment
228+3 commission funds that are no longer accessible to the
229+4 redevelopment commission under the waiver; and
230+5 (2) an expiration date for the waiver.
231+6 If a loan is made to a unit from funds designated as redevelopment
232+7 funds, the loan must be repaid by the unit and the funds made
233+8 accessible to the redevelopment commission not later than the end of
234+9 the calendar year in which the funds are received by the unit.
235+10 (f) Subsections (d) and (e) do not restrict transfers or uses by a
236+11 redevelopment commission made to meet commitments under a written
237+12 agreement of the redevelopment commission that was entered into
238+13 before January 1, 2016, if the written agreement complied with the
239+14 requirements existing under the law at the time the redevelopment
240+15 commission entered into the written agreement.
241+16 (g) The redevelopment commissioners may adopt the rules and
242+17 bylaws they consider necessary for the proper conduct of their
243+18 proceedings, the carrying out of their duties, and the safeguarding of
244+19 the money and property placed in their custody by this chapter. In
245+20 addition to the annual meeting, the commissioners may, by resolution
246+21 or in accordance with their rules and bylaws, prescribe the date and
247+22 manner of notice of other regular or special meetings.
248+23 (h) This subsection does not apply to a county redevelopment
249+24 commission that consists of seven (7) members. Three (3) of the
250+25 redevelopment commissioners constitute a quorum, and the
251+26 concurrence of three (3) commissioners is necessary to authorize any
252+27 action.
253+28 (i) This subsection applies only to a county redevelopment
254+29 commission that consists of seven (7) members. Four (4) of the
255+30 redevelopment commissioners constitute a quorum, and the
256+31 concurrence of four (4) commissioners is necessary to authorize any
257+32 action.
258+33 SECTION 5. IC 36-7-14-12.7 IS ADDED TO THE INDIANA
259+34 CODE AS A NEW SECTION TO READ AS FOLLOWS
260+35 [EFFECTIVE JULY 1, 2023]: Sec. 12.7. (a) Not later than December
261+36 1 each year, the redevelopment commissioners shall file with the
262+37 department of local government finance and with the unit's
263+38 executive and fiscal body a report setting out a spending plan for
264+39 the next calendar year describing planned expenditures.
265+40 (b) Except as provided in subsection (c), a redevelopment
266+41 commission may use money from the redevelopment commission's
267+42 allocation fund described in section 39(b)(5) of this chapter and
270268 HB 1085—LS 6819/DI 116 6
271-1 described in subsection (b) for the purpose of paying more toward
272-2 debt service obligations, in order to retire debt service earlier,
273-3 regardless of whether that use is listed in the annual spending plan
274-4 described in subsection (a). A redevelopment commission making
275-5 accelerated debt payments under this subsection may retain the
276-6 assessed value associated with the original debt service schedule.
277-7 (d) Early debt retirement described under subsection (c) applies
278-8 only if the early defeasance of debt is allowed according to the
279-9 bond issuance documents.
280-10 SECTION 7. IC 36-7-14-13.5 IS ADDED TO THE INDIANA
281-11 CODE AS A NEW SECTION TO READ AS FOLLOWS
282-12 [EFFECTIVE JULY 1, 2023]: Sec. 13.5. (a) Not later than December
283-13 31 of each year, the redevelopment commissioners shall provide the
284-14 balance of:
285-15 (1) the allocation fund described in section 39(b)(5) of this
286-16 chapter; and
287-17 (2) any other funds maintained by the redevelopment
288-18 commission;
289-19 to the department of local government finance.
290-20 (b) The department of local government finance shall post fund
291-21 balances received under subsection (a) on the Indiana
292-22 transparency website within ninety (90) days of the receipt of the
293-23 fund balances.
294-24 (c) Not later than February of each year, the department of local
295-25 government finance shall compile the information received from
296-26 each redevelopment commission under subsection (a) and provide
297-27 the information to the interim study committee on fiscal policy
298-28 established by IC 2-5-1.3-4.
299-29 (d) This section expires July 1, 2028.
300-30 SECTION 8. IC 36-7-14-15.5, AS AMENDED BY P.L.104-2022,
301-31 SECTION 187, IS AMENDED TO READ AS FOLLOWS
302-32 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 15.5. (a)
303-33 This section applies to a county having a population of more than two
304-34 hundred fifty thousand (250,000) and less than three hundred thousand
305-35 (300,000).
306-36 (b) In adopting a declaratory resolution under section 15 of this
307-37 chapter, a redevelopment commission may include a provision stating
308-38 that the redevelopment project area is considered to include one (1) or
309-39 more additional areas outside the boundaries of the redevelopment
310-40 project area if the redevelopment commission makes the following
311-41 findings and the requirements of subsection (c) are met:
312-42 (1) One (1) or more taxpayers presently located within the
269+1 any other fund maintained by the redevelopment commission only
270+2 for the purposes provided in the annual spending plan described in
271+3 subsection (a).
272+4 (c) A redevelopment commission may use money from funds
273+5 described in subsection (b) for the purpose of paying more toward
274+6 debt service obligations, in order to retire debt service earlier,
275+7 regardless of whether that use is listed in the annual spending plan
276+8 described in subsection (a). A redevelopment commission making
277+9 accelerated debt payments under this subsection may retain the
278+10 assessed value associated with the original debt service schedule.
279+11 (d) Early debt retirement described under subsection (c) applies
280+12 only if the early defeasance of debt is allowed according to the
281+13 bond issuance documents.
282+14 SECTION 6. IC 36-7-14-13.5 IS ADDED TO THE INDIANA
283+15 CODE AS A NEW SECTION TO READ AS FOLLOWS
284+16 [EFFECTIVE JULY 1, 2023]: Sec. 13.5. (a) Not later than December
285+17 31 of each year, the redevelopment commissioners shall provide the
286+18 balance of:
287+19 (1) the allocation fund described in section 39(b)(5) of this
288+20 chapter; and
289+21 (2) any other funds maintained by the redevelopment
290+22 commission;
291+23 to the department of local government finance.
292+24 (b) The department of local government finance shall post fund
293+25 balances received under subsection (a) on the Indiana
294+26 transparency website within ninety (90) days of the receipt of the
295+27 fund balances.
296+28 (c) Not later than February of each year, the department of local
297+29 government finance shall compile the information received from
298+30 each redevelopment commission under subsection (a) and provide
299+31 the information to the interim study committee on fiscal policy
300+32 established by IC 2-5-1.3-4.
301+33 (d) This section expires July 1, 2028.
302+34 SECTION 7. IC 36-7-14-15.5, AS AMENDED BY P.L.104-2022,
303+35 SECTION 187, IS AMENDED TO READ AS FOLLOWS
304+36 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 15.5. (a)
305+37 This section applies to a county having a population of more than two
306+38 hundred fifty thousand (250,000) and less than three hundred thousand
307+39 (300,000).
308+40 (b) In adopting a declaratory resolution under section 15 of this
309+41 chapter, a redevelopment commission may include a provision stating
310+42 that the redevelopment project area is considered to include one (1) or
313311 HB 1085—LS 6819/DI 116 7
314-1 boundaries of the redevelopment project area are expected within
315-2 one (1) year to relocate all or part of their operations outside the
316-3 boundaries of the redevelopment project area and have expressed
317-4 an interest in relocating all or part of their operations within the
318-5 boundaries of an additional area.
319-6 (2) The relocation described in subdivision (1) will contribute to
320-7 the continuation of the conditions described in IC 36-7-1-3 in the
321-8 redevelopment project area.
322-9 (3) For purposes of this section, it will be of public utility and
323-10 benefit to include the additional areas as part of the
324-11 redevelopment project area.
325-12 (c) Each additional area must be designated by the redevelopment
326-13 commission as a redevelopment project area or an economic
327-14 development area under this chapter.
328-15 (d) Notwithstanding section 3 of this chapter, the additional areas
329-16 shall be considered to be a part of the redevelopment special taxing
330-17 district under the jurisdiction of the redevelopment commission. Any
331-18 excess property taxes that the commission has determined may be paid
332-19 to taxing units under section 39(b)(4) 39(b)(6) of this chapter shall be
333-20 paid to the taxing units from which the excess property taxes were
334-21 derived. All powers of the redevelopment commission authorized under
335-22 this chapter may be exercised by the redevelopment commission in
336-23 additional areas under its jurisdiction.
337-24 (e) The declaratory resolution must include a statement of the
338-25 general boundaries of each additional area. However, it is sufficient to
339-26 describe those boundaries by location in relation to public ways,
340-27 streams, or otherwise, as determined by the commissioners.
341-28 (f) The declaratory resolution may include a provision with respect
342-29 to the allocation and distribution of property taxes with respect to one
343-30 (1) or more of the additional areas in the manner provided in section 39
344-31 of this chapter. If the redevelopment commission includes such a
345-32 provision in the resolution, allocation areas in the redevelopment
346-33 project area and in the additional areas considered to be part of the
347-34 redevelopment project area shall be considered a single allocation area
348-35 for purposes of this chapter.
349-36 (g) The additional areas must be located within the same county as
350-37 the redevelopment project area but are not otherwise required to be
351-38 within the jurisdiction of the redevelopment commission, if the
352-39 redevelopment commission obtains the consent by ordinance of:
353-40 (1) the county legislative body, for each additional area located
354-41 within the unincorporated part of the county; or
355-42 (2) the legislative body of the city or town affected, for each
312+1 more additional areas outside the boundaries of the redevelopment
313+2 project area if the redevelopment commission makes the following
314+3 findings and the requirements of subsection (c) are met:
315+4 (1) One (1) or more taxpayers presently located within the
316+5 boundaries of the redevelopment project area are expected within
317+6 one (1) year to relocate all or part of their operations outside the
318+7 boundaries of the redevelopment project area and have expressed
319+8 an interest in relocating all or part of their operations within the
320+9 boundaries of an additional area.
321+10 (2) The relocation described in subdivision (1) will contribute to
322+11 the continuation of the conditions described in IC 36-7-1-3 in the
323+12 redevelopment project area.
324+13 (3) For purposes of this section, it will be of public utility and
325+14 benefit to include the additional areas as part of the
326+15 redevelopment project area.
327+16 (c) Each additional area must be designated by the redevelopment
328+17 commission as a redevelopment project area or an economic
329+18 development area under this chapter.
330+19 (d) Notwithstanding section 3 of this chapter, the additional areas
331+20 shall be considered to be a part of the redevelopment special taxing
332+21 district under the jurisdiction of the redevelopment commission. Any
333+22 excess property taxes that the commission has determined may be paid
334+23 to taxing units under section 39(b)(4) 39(b)(6) of this chapter shall be
335+24 paid to the taxing units from which the excess property taxes were
336+25 derived. All powers of the redevelopment commission authorized under
337+26 this chapter may be exercised by the redevelopment commission in
338+27 additional areas under its jurisdiction.
339+28 (e) The declaratory resolution must include a statement of the
340+29 general boundaries of each additional area. However, it is sufficient to
341+30 describe those boundaries by location in relation to public ways,
342+31 streams, or otherwise, as determined by the commissioners.
343+32 (f) The declaratory resolution may include a provision with respect
344+33 to the allocation and distribution of property taxes with respect to one
345+34 (1) or more of the additional areas in the manner provided in section 39
346+35 of this chapter. If the redevelopment commission includes such a
347+36 provision in the resolution, allocation areas in the redevelopment
348+37 project area and in the additional areas considered to be part of the
349+38 redevelopment project area shall be considered a single allocation area
350+39 for purposes of this chapter.
351+40 (g) The additional areas must be located within the same county as
352+41 the redevelopment project area but are not otherwise required to be
353+42 within the jurisdiction of the redevelopment commission, if the
356354 HB 1085—LS 6819/DI 116 8
357-1 additional area located within a city or town.
358-2 In granting its consent, the legislative body shall approve the plan of
359-3 development or redevelopment relating to the additional area.
360-4 (h) A declaratory resolution previously adopted may be amended to
361-5 include a provision to include additional areas as set forth in this
362-6 section and an allocation provision under section 39 of this chapter
363-7 with respect to one (1) or more of the additional areas in accordance
364-8 with sections 15, 16, and 17 of this chapter.
365-9 (i) The redevelopment commission may amend the allocation
366-10 provision of a declaratory resolution in accordance with sections 15,
367-11 16, and 17 of this chapter to change the assessment date that
368-12 determines the base assessed value of property in the allocation area to
369-13 any assessment date following the effective date of the allocation
370-14 provision of the declaratory resolution. Such a change may relate to the
371-15 assessment date that determines the base assessed value of that portion
372-16 of the allocation area that is located in the redevelopment project area
373-17 alone, that portion of the allocation area that is located in an additional
374-18 area alone, or the entire allocation area.
375-19 SECTION 9. IC 36-7-14-25.1, AS AMENDED BY P.L.257-2019,
376-20 SECTION 117, IS AMENDED TO READ AS FOLLOWS
377-21 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 25.1. (a)
378-22 In addition to other methods of raising money for property acquisition
379-23 or redevelopment in a redevelopment project area, and in anticipation
380-24 of the special tax to be levied under section 27 of this chapter, the taxes
381-25 allocated under section 39 of this chapter, or other revenues of the
382-26 district, or any combination of these sources, the redevelopment
383-27 commission may, by bond resolution and subject to subsections (c) and
384-28 (p), issue the bonds of the special taxing district in the name of the unit.
385-29 The amount of the bonds may not exceed the total, as estimated by the
386-30 commission, of all expenses reasonably incurred in connection with the
387-31 acquisition and redevelopment of the property, including:
388-32 (1) the total cost of all land, rights-of-way, and other property to
389-33 be acquired and redeveloped;
390-34 (2) all reasonable and necessary architectural, engineering, legal,
391-35 financing, accounting, advertising, bond discount, and
392-36 supervisory expenses related to the acquisition and redevelopment
393-37 of the property or the issuance of bonds;
394-38 (3) capitalized interest permitted by this chapter and a debt
395-39 service reserve for the bonds to the extent the redevelopment
396-40 commission determines that a reserve is reasonably required; and
397-41 (4) expenses that the redevelopment commission is required or
398-42 permitted to pay under IC 8-23-17.
355+1 redevelopment commission obtains the consent by ordinance of:
356+2 (1) the county legislative body, for each additional area located
357+3 within the unincorporated part of the county; or
358+4 (2) the legislative body of the city or town affected, for each
359+5 additional area located within a city or town.
360+6 In granting its consent, the legislative body shall approve the plan of
361+7 development or redevelopment relating to the additional area.
362+8 (h) A declaratory resolution previously adopted may be amended to
363+9 include a provision to include additional areas as set forth in this
364+10 section and an allocation provision under section 39 of this chapter
365+11 with respect to one (1) or more of the additional areas in accordance
366+12 with sections 15, 16, and 17 of this chapter.
367+13 (i) The redevelopment commission may amend the allocation
368+14 provision of a declaratory resolution in accordance with sections 15,
369+15 16, and 17 of this chapter to change the assessment date that
370+16 determines the base assessed value of property in the allocation area to
371+17 any assessment date following the effective date of the allocation
372+18 provision of the declaratory resolution. Such a change may relate to the
373+19 assessment date that determines the base assessed value of that portion
374+20 of the allocation area that is located in the redevelopment project area
375+21 alone, that portion of the allocation area that is located in an additional
376+22 area alone, or the entire allocation area.
377+23 SECTION 8. IC 36-7-14-25.1, AS AMENDED BY P.L.257-2019,
378+24 SECTION 117, IS AMENDED TO READ AS FOLLOWS
379+25 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 25.1. (a)
380+26 In addition to other methods of raising money for property acquisition
381+27 or redevelopment in a redevelopment project area, and in anticipation
382+28 of the special tax to be levied under section 27 of this chapter, the taxes
383+29 allocated under section 39 of this chapter, or other revenues of the
384+30 district, or any combination of these sources, the redevelopment
385+31 commission may, by bond resolution and subject to subsections (c) and
386+32 (p), issue the bonds of the special taxing district in the name of the unit.
387+33 The amount of the bonds may not exceed the total, as estimated by the
388+34 commission, of all expenses reasonably incurred in connection with the
389+35 acquisition and redevelopment of the property, including:
390+36 (1) the total cost of all land, rights-of-way, and other property to
391+37 be acquired and redeveloped;
392+38 (2) all reasonable and necessary architectural, engineering, legal,
393+39 financing, accounting, advertising, bond discount, and
394+40 supervisory expenses related to the acquisition and redevelopment
395+41 of the property or the issuance of bonds;
396+42 (3) capitalized interest permitted by this chapter and a debt
399397 HB 1085—LS 6819/DI 116 9
400-1 (b) If the redevelopment commission plans to acquire different
401-2 parcels of land or let different contracts for redevelopment work at
402-3 approximately the same time, whether under one (1) or more
403-4 resolutions, the commission may provide for the total cost in one (1)
404-5 issue of bonds.
405-6 (c) The legislative body of the unit must adopt a resolution that
406-7 specifies the public purpose of the bond, the use of the bond proceeds,
407-8 the maximum principal amount of the bond, the term of the bond, and
408-9 the maximum interest rate or rates of the bond, any provision for
409-10 redemption before maturity, and any provision for the payment of
410-11 capitalized interest. The bonds must be dated as set forth in the bond
411-12 resolution and negotiable, subject to the requirements of the bond
412-13 resolution for registering the bonds. The resolution authorizing the
413-14 bonds must state:
414-15 (1) the denominations of the bonds;
415-16 (2) the place or places at which the bonds are payable; and
416-17 (3) the term of the bonds, which may not exceed:
417-18 (A) fifty (50) years, for bonds issued before July 1, 2008;
418-19 (B) thirty (30) years, for bonds issued after June 30, 2008, to
419-20 finance:
420-21 (i) an integrated coal gasification powerplant (as defined in
421-22 IC 6-3.1-29-6);
422-23 (ii) a part of an integrated coal gasification powerplant (as
423-24 defined in IC 6-3.1-29-6); or
424-25 (iii) property used in the operation or maintenance of an
425-26 integrated coal gasification powerplant (as defined in
426-27 IC 6-3.1-29-6);
427-28 that received a certificate of public convenience and necessity
428-29 from the Indiana utility regulatory commission under
429-30 IC 8-1-8.5 et seq. before July 1, 2008;
430-31 (C) thirty-five (35) years, for bonds issued after June 30, 2019,
431-32 to finance a project that is located in a redevelopment project
432-33 area, an economic development area, or an urban renewal
433-34 project area and that includes, as part of the project, the use
434-35 and repurposing of two (2) or more buildings and structures
435-36 that are:
436-37 (i) at least seventy-five (75) years old; and
437-38 (ii) located at a site at which manufacturing previously
438-39 occurred over a period of at least seventy-five (75) years; or
439-40 (D) twenty-five (25) years, for bonds issued after June 30,
440-41 2008, that are not described in clause (B) or (C).
441-42 The bond resolution may also state that the bonds are redeemable
398+1 service reserve for the bonds to the extent the redevelopment
399+2 commission determines that a reserve is reasonably required; and
400+3 (4) expenses that the redevelopment commission is required or
401+4 permitted to pay under IC 8-23-17.
402+5 (b) If the redevelopment commission plans to acquire different
403+6 parcels of land or let different contracts for redevelopment work at
404+7 approximately the same time, whether under one (1) or more
405+8 resolutions, the commission may provide for the total cost in one (1)
406+9 issue of bonds.
407+10 (c) The legislative body of the unit must adopt a resolution that
408+11 specifies the public purpose of the bond, the use of the bond proceeds,
409+12 the maximum principal amount of the bond, the term of the bond, and
410+13 the maximum interest rate or rates of the bond, any provision for
411+14 redemption before maturity, and any provision for the payment of
412+15 capitalized interest. The bonds must be dated as set forth in the bond
413+16 resolution and negotiable, subject to the requirements of the bond
414+17 resolution for registering the bonds. The resolution authorizing the
415+18 bonds must state:
416+19 (1) the denominations of the bonds;
417+20 (2) the place or places at which the bonds are payable; and
418+21 (3) the term of the bonds, which may not exceed:
419+22 (A) fifty (50) years, for bonds issued before July 1, 2008;
420+23 (B) thirty (30) years, for bonds issued after June 30, 2008, to
421+24 finance:
422+25 (i) an integrated coal gasification powerplant (as defined in
423+26 IC 6-3.1-29-6);
424+27 (ii) a part of an integrated coal gasification powerplant (as
425+28 defined in IC 6-3.1-29-6); or
426+29 (iii) property used in the operation or maintenance of an
427+30 integrated coal gasification powerplant (as defined in
428+31 IC 6-3.1-29-6);
429+32 that received a certificate of public convenience and necessity
430+33 from the Indiana utility regulatory commission under
431+34 IC 8-1-8.5 et seq. before July 1, 2008;
432+35 (C) thirty-five (35) years, for bonds issued after June 30, 2019,
433+36 to finance a project that is located in a redevelopment project
434+37 area, an economic development area, or an urban renewal
435+38 project area and that includes, as part of the project, the use
436+39 and repurposing of two (2) or more buildings and structures
437+40 that are:
438+41 (i) at least seventy-five (75) years old; and
439+42 (ii) located at a site at which manufacturing previously
442440 HB 1085—LS 6819/DI 116 10
443-1 before maturity with or without a premium, as determined by the
444-2 redevelopment commission.
445-3 (d) The redevelopment commission shall certify a copy of the
446-4 resolution authorizing the bonds to the municipal or county fiscal
447-5 officer, who shall then prepare the bonds, subject to subsections (c) and
448-6 (p). The seal of the unit must be impressed on the bonds, or a facsimile
449-7 of the seal must be printed on the bonds.
450-8 (e) The bonds must be executed by the appropriate officer of the
451-9 unit and attested by the municipal or county fiscal officer.
452-10 (f) The bonds are exempt from taxation for all purposes.
453-11 (g) The municipal or county fiscal officer shall give notice of the
454-12 sale of the bonds by publication in accordance with IC 5-3-1. The
455-13 municipal fiscal officer, or county fiscal officer or executive, shall sell
456-14 the bonds to the highest bidder, but may not sell them for less than
457-15 ninety-seven percent (97%) of their par value. However, bonds payable
458-16 solely or in part from tax proceeds allocated under section 39(b)(3)
459-17 39(b)(5) of this chapter, or other revenues of the district may be sold
460-18 at a private negotiated sale.
461-19 (h) Except as provided in subsection (i), a redevelopment
462-20 commission may not issue the bonds when the total issue, including
463-21 bonds already issued and to be issued, exceeds two percent (2%) of the
464-22 adjusted value of the taxable property in the special taxing district, as
465-23 determined under IC 36-1-15.
466-24 (i) The bonds are not a corporate obligation of the unit but are an
467-25 indebtedness of the taxing district. The bonds and interest are payable,
468-26 as set forth in the bond resolution of the redevelopment commission:
469-27 (1) from a special tax levied upon all of the property in the taxing
470-28 district, as provided by section 27 of this chapter;
471-29 (2) from the tax proceeds allocated under section 39(b)(3)
472-30 39(b)(5) of this chapter;
473-31 (3) from other revenues available to the redevelopment
474-32 commission; or
475-33 (4) from a combination of the methods stated in subdivisions (1)
476-34 through (3).
477-35 If the bonds are payable solely from the tax proceeds allocated under
478-36 section 39(b)(3) 39(b)(5) of this chapter, other revenues of the
479-37 redevelopment commission, or any combination of these sources, they
480-38 may be issued in any amount not to exceed the maximum amount
481-39 approved by the legislative body in the resolution described in
482-40 subsection (c).
483-41 (j) Proceeds from the sale of bonds may be used to pay the cost of
484-42 interest on the bonds for a period not to exceed five (5) years from the
441+1 occurred over a period of at least seventy-five (75) years; or
442+2 (D) twenty-five (25) years, for bonds issued after June 30,
443+3 2008, that are not described in clause (B) or (C).
444+4 The bond resolution may also state that the bonds are redeemable
445+5 before maturity with or without a premium, as determined by the
446+6 redevelopment commission.
447+7 (d) The redevelopment commission shall certify a copy of the
448+8 resolution authorizing the bonds to the municipal or county fiscal
449+9 officer, who shall then prepare the bonds, subject to subsections (c) and
450+10 (p). The seal of the unit must be impressed on the bonds, or a facsimile
451+11 of the seal must be printed on the bonds.
452+12 (e) The bonds must be executed by the appropriate officer of the
453+13 unit and attested by the municipal or county fiscal officer.
454+14 (f) The bonds are exempt from taxation for all purposes.
455+15 (g) The municipal or county fiscal officer shall give notice of the
456+16 sale of the bonds by publication in accordance with IC 5-3-1. The
457+17 municipal fiscal officer, or county fiscal officer or executive, shall sell
458+18 the bonds to the highest bidder, but may not sell them for less than
459+19 ninety-seven percent (97%) of their par value. However, bonds payable
460+20 solely or in part from tax proceeds allocated under section 39(b)(3)
461+21 39(b)(5) of this chapter, or other revenues of the district may be sold
462+22 at a private negotiated sale.
463+23 (h) Except as provided in subsection (i), a redevelopment
464+24 commission may not issue the bonds when the total issue, including
465+25 bonds already issued and to be issued, exceeds two percent (2%) of the
466+26 adjusted value of the taxable property in the special taxing district, as
467+27 determined under IC 36-1-15.
468+28 (i) The bonds are not a corporate obligation of the unit but are an
469+29 indebtedness of the taxing district. The bonds and interest are payable,
470+30 as set forth in the bond resolution of the redevelopment commission:
471+31 (1) from a special tax levied upon all of the property in the taxing
472+32 district, as provided by section 27 of this chapter;
473+33 (2) from the tax proceeds allocated under section 39(b)(3)
474+34 39(b)(5) of this chapter;
475+35 (3) from other revenues available to the redevelopment
476+36 commission; or
477+37 (4) from a combination of the methods stated in subdivisions (1)
478+38 through (3).
479+39 If the bonds are payable solely from the tax proceeds allocated under
480+40 section 39(b)(3) 39(b)(5) of this chapter, other revenues of the
481+41 redevelopment commission, or any combination of these sources, they
482+42 may be issued in any amount not to exceed the maximum amount
485483 HB 1085—LS 6819/DI 116 11
486-1 date of issuance.
487-2 (k) All laws relating to the giving of notice of the issuance of bonds,
488-3 the giving of notice of a hearing on the appropriation of the proceeds
489-4 of the bonds, the right of taxpayers to appear and be heard on the
490-5 proposed appropriation, and the approval of the appropriation by the
491-6 department of local government finance apply to all bonds issued under
492-7 this chapter that are payable from the special benefits tax levied
493-8 pursuant to section 27 of this chapter or from taxes allocated under
494-9 section 39 of this chapter.
495-10 (l) All laws relating to:
496-11 (1) the filing of petitions requesting the issuance of bonds; and
497-12 (2) the right of:
498-13 (A) taxpayers and voters to remonstrate against the issuance of
499-14 bonds in the case of a proposed bond issue described by
500-15 IC 6-1.1-20-3.1(a); or
501-16 (B) voters to vote on the issuance of bonds in the case of a
502-17 proposed bond issue described by IC 6-1.1-20-3.5(a);
503-18 apply to bonds issued under this chapter except for bonds payable
504-19 solely from tax proceeds allocated under section 39(b)(3) 39(b)(5) of
505-20 this chapter, other revenues of the redevelopment commission, or any
506-21 combination of these sources.
507-22 (m) If a debt service reserve is created from the proceeds of bonds,
508-23 the debt service reserve may be used to pay principal and interest on
509-24 the bonds as provided in the bond resolution.
510-25 (n) Any amount remaining in the debt service reserve after all of the
511-26 bonds of the issue for which the debt service reserve was established
512-27 have matured shall be:
513-28 (1) deposited in the allocation fund established under section
514-29 39(b)(3) 39(b)(5) of this chapter; and
515-30 (2) to the extent permitted by law, transferred to the county or
516-31 municipality that established the department of redevelopment for
517-32 use in reducing the county's or municipality's property tax levies
518-33 for debt service.
519-34 (o) If bonds are issued under this chapter that are payable solely or
520-35 in part from revenues to the redevelopment commission from a project
521-36 or projects, the redevelopment commission may adopt a resolution or
522-37 trust indenture or enter into covenants as is customary in the issuance
523-38 of revenue bonds. The resolution or trust indenture may pledge or
524-39 assign the revenues from the project or projects, but may not convey or
525-40 mortgage any project or parts of a project. The resolution or trust
526-41 indenture may also contain any provisions for protecting and enforcing
527-42 the rights and remedies of the bond owners as may be reasonable and
484+1 approved by the legislative body in the resolution described in
485+2 subsection (c).
486+3 (j) Proceeds from the sale of bonds may be used to pay the cost of
487+4 interest on the bonds for a period not to exceed five (5) years from the
488+5 date of issuance.
489+6 (k) All laws relating to the giving of notice of the issuance of bonds,
490+7 the giving of notice of a hearing on the appropriation of the proceeds
491+8 of the bonds, the right of taxpayers to appear and be heard on the
492+9 proposed appropriation, and the approval of the appropriation by the
493+10 department of local government finance apply to all bonds issued under
494+11 this chapter that are payable from the special benefits tax levied
495+12 pursuant to section 27 of this chapter or from taxes allocated under
496+13 section 39 of this chapter.
497+14 (l) All laws relating to:
498+15 (1) the filing of petitions requesting the issuance of bonds; and
499+16 (2) the right of:
500+17 (A) taxpayers and voters to remonstrate against the issuance of
501+18 bonds in the case of a proposed bond issue described by
502+19 IC 6-1.1-20-3.1(a); or
503+20 (B) voters to vote on the issuance of bonds in the case of a
504+21 proposed bond issue described by IC 6-1.1-20-3.5(a);
505+22 apply to bonds issued under this chapter except for bonds payable
506+23 solely from tax proceeds allocated under section 39(b)(3) 39(b)(5) of
507+24 this chapter, other revenues of the redevelopment commission, or any
508+25 combination of these sources.
509+26 (m) If a debt service reserve is created from the proceeds of bonds,
510+27 the debt service reserve may be used to pay principal and interest on
511+28 the bonds as provided in the bond resolution.
512+29 (n) Any amount remaining in the debt service reserve after all of the
513+30 bonds of the issue for which the debt service reserve was established
514+31 have matured shall be:
515+32 (1) deposited in the allocation fund established under section
516+33 39(b)(3) 39(b)(5) of this chapter; and
517+34 (2) to the extent permitted by law, transferred to the county or
518+35 municipality that established the department of redevelopment for
519+36 use in reducing the county's or municipality's property tax levies
520+37 for debt service.
521+38 (o) If bonds are issued under this chapter that are payable solely or
522+39 in part from revenues to the redevelopment commission from a project
523+40 or projects, the redevelopment commission may adopt a resolution or
524+41 trust indenture or enter into covenants as is customary in the issuance
525+42 of revenue bonds. The resolution or trust indenture may pledge or
528526 HB 1085—LS 6819/DI 116 12
529-1 proper and not in violation of law, including covenants setting forth the
530-2 duties of the redevelopment commission. The redevelopment
531-3 commission may establish fees and charges for the use of any project
532-4 and covenant with the owners of any bonds to set those fees and
533-5 charges at a rate sufficient to protect the interest of the owners of the
534-6 bonds. Any revenue bonds issued by the redevelopment commission
535-7 that are payable solely from revenues of the commission shall contain
536-8 a statement to that effect in the form of bond.
537-9 (p) If the total principal amount of bonds authorized by a resolution
538-10 of the redevelopment commission adopted before July 1, 2008, is equal
539-11 to or greater than three million dollars ($3,000,000), the bonds may not
540-12 be issued without the approval, by resolution, of the legislative body of
541-13 the unit. Bonds authorized in any principal amount by a resolution of
542-14 the redevelopment commission adopted after June 30, 2008, may not
543-15 be issued without the approval of the legislative body of the unit.
544-16 SECTION 10. IC 36-7-14-26, AS AMENDED BY P.L.203-2011,
545-17 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
546-18 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 26. (a) All proceeds from
547-19 the sale of bonds under section 25.1 of this chapter shall be kept as a
548-20 separate and specific fund to pay the expenses incurred in connection
549-21 with the acquisition and redevelopment of property. The fund shall be
550-22 known as the redevelopment district capital fund. Any surplus of funds
551-23 remaining after all expenses are paid shall be paid into and become a
552-24 part of the redevelopment district bond fund established under section
553-25 27 of this chapter.
554-26 (b) All gifts or donations that are given or paid to the department of
555-27 redevelopment or to the unit for redevelopment purposes shall be
556-28 promptly deposited to the credit of the redevelopment district capital
557-29 fund. The redevelopment commission may use these gifts and
558-30 donations for the purposes of this chapter.
559-31 (c) Before the eleventh day of each calendar month the fiscal officer
560-32 shall notify the redevelopment commission and the officers of the unit
561-33 who have duties in respect to the funds and accounts of the unit of the
562-34 amount standing to the credit of the redevelopment district capital fund
563-35 at the close of business on the last day of the preceding month.
564-36 (d) A redevelopment commission shall deposit in the allocation fund
565-37 established under section 39(b)(3) 39(b)(5) of this chapter of an
566-38 allocation area the proceeds from the sale or leasing of property in the
567-39 area under section 22 of this chapter if:
568-40 (1) there are outstanding bonds that were issued to pay costs of
569-41 redevelopment in the allocation area; and
570-42 (2) the bonds are payable solely or in part from tax proceeds
527+1 assign the revenues from the project or projects, but may not convey or
528+2 mortgage any project or parts of a project. The resolution or trust
529+3 indenture may also contain any provisions for protecting and enforcing
530+4 the rights and remedies of the bond owners as may be reasonable and
531+5 proper and not in violation of law, including covenants setting forth the
532+6 duties of the redevelopment commission. The redevelopment
533+7 commission may establish fees and charges for the use of any project
534+8 and covenant with the owners of any bonds to set those fees and
535+9 charges at a rate sufficient to protect the interest of the owners of the
536+10 bonds. Any revenue bonds issued by the redevelopment commission
537+11 that are payable solely from revenues of the commission shall contain
538+12 a statement to that effect in the form of bond.
539+13 (p) If the total principal amount of bonds authorized by a resolution
540+14 of the redevelopment commission adopted before July 1, 2008, is equal
541+15 to or greater than three million dollars ($3,000,000), the bonds may not
542+16 be issued without the approval, by resolution, of the legislative body of
543+17 the unit. Bonds authorized in any principal amount by a resolution of
544+18 the redevelopment commission adopted after June 30, 2008, may not
545+19 be issued without the approval of the legislative body of the unit.
546+20 SECTION 9. IC 36-7-14-26, AS AMENDED BY P.L.203-2011,
547+21 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
548+22 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 26. (a) All proceeds from
549+23 the sale of bonds under section 25.1 of this chapter shall be kept as a
550+24 separate and specific fund to pay the expenses incurred in connection
551+25 with the acquisition and redevelopment of property. The fund shall be
552+26 known as the redevelopment district capital fund. Any surplus of funds
553+27 remaining after all expenses are paid shall be paid into and become a
554+28 part of the redevelopment district bond fund established under section
555+29 27 of this chapter.
556+30 (b) All gifts or donations that are given or paid to the department of
557+31 redevelopment or to the unit for redevelopment purposes shall be
558+32 promptly deposited to the credit of the redevelopment district capital
559+33 fund. The redevelopment commission may use these gifts and
560+34 donations for the purposes of this chapter.
561+35 (c) Before the eleventh day of each calendar month the fiscal officer
562+36 shall notify the redevelopment commission and the officers of the unit
563+37 who have duties in respect to the funds and accounts of the unit of the
564+38 amount standing to the credit of the redevelopment district capital fund
565+39 at the close of business on the last day of the preceding month.
566+40 (d) A redevelopment commission shall deposit in the allocation fund
567+41 established under section 39(b)(3) 39(b)(5) of this chapter of an
568+42 allocation area the proceeds from the sale or leasing of property in the
571569 HB 1085—LS 6819/DI 116 13
572-1 allocated under section 39(b)(3) 39(b)(5) of this chapter.
573-2 SECTION 11. IC 36-7-14-27, AS AMENDED BY P.L.149-2014,
574-3 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
575-4 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 27. (a) This section
576-5 applies only to:
577-6 (1) bonds that are issued under section 25.1 of this chapter; and
578-7 (2) leases entered into under section 25.2 of this chapter;
579-8 which are payable from a special tax levied upon all of the property in
580-9 the special taxing district. This section does not apply to bonds or
581-10 leases that are payable solely from tax proceeds allocated under section
582-11 39(b)(3) 39(b)(5) of this chapter, other revenues of the redevelopment
583-12 commission, or any combination of these sources.
584-13 (b) The redevelopment commission, with the prior approval of the
585-14 legislative body, shall levy each year a special tax on all of the property
586-15 of the redevelopment taxing district, in such a manner as to meet and
587-16 pay the principal of the bonds as they mature, together with all accruing
588-17 interest on the bonds or lease rental payments under section 25.2 of this
589-18 chapter. The commission shall cause the tax levied to be certified to the
590-19 proper officers as other tax levies are certified, and to the auditor of the
591-20 county in which the redevelopment district is located, before the
592-21 second day of October in each year. The tax shall be estimated and
593-22 entered on the tax duplicate by the county auditor and shall be collected
594-23 and enforced by the county treasurer in the same manner as other state
595-24 and county taxes are estimated, entered, collected, and enforced. The
596-25 amount of the tax levied to pay bonds or lease rentals payable from the
597-26 tax levied under this section shall be reduced by any amount available
598-27 in the allocation fund established under section 39(b)(3) 39(b)(5) of
599-28 this chapter or other revenues of the redevelopment commission to the
600-29 extent such revenues have been set aside in the redevelopment bond
601-30 fund.
602-31 (c) As the tax is collected, it shall be accumulated in a separate fund
603-32 to be known as the redevelopment district bond fund and shall be
604-33 applied to the payment of the bonds as they mature and the interest on
605-34 the bonds as it accrues, or to make lease payments and to no other
606-35 purpose. All accumulations of the fund before their use for the payment
607-36 of bonds and interest or to make lease payments shall be deposited with
608-37 the depository or depositories for other public funds of the unit in
609-38 accordance with IC 5-13, unless they are invested under IC 5-13-9.
610-39 (d) If there are no outstanding bonds that are payable solely or in
611-40 part from tax proceeds allocated under section 39(b)(3) 39(b)(5) of this
612-41 chapter and that were issued to pay costs of redevelopment in an
613-42 allocation area that is located wholly or in part in the special taxing
570+1 area under section 22 of this chapter if:
571+2 (1) there are outstanding bonds that were issued to pay costs of
572+3 redevelopment in the allocation area; and
573+4 (2) the bonds are payable solely or in part from tax proceeds
574+5 allocated under section 39(b)(3) 39(b)(5) of this chapter.
575+6 SECTION 10. IC 36-7-14-27, AS AMENDED BY P.L.149-2014,
576+7 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
577+8 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 27. (a) This section
578+9 applies only to:
579+10 (1) bonds that are issued under section 25.1 of this chapter; and
580+11 (2) leases entered into under section 25.2 of this chapter;
581+12 which are payable from a special tax levied upon all of the property in
582+13 the special taxing district. This section does not apply to bonds or
583+14 leases that are payable solely from tax proceeds allocated under section
584+15 39(b)(3) 39(b)(5) of this chapter, other revenues of the redevelopment
585+16 commission, or any combination of these sources.
586+17 (b) The redevelopment commission, with the prior approval of the
587+18 legislative body, shall levy each year a special tax on all of the property
588+19 of the redevelopment taxing district, in such a manner as to meet and
589+20 pay the principal of the bonds as they mature, together with all accruing
590+21 interest on the bonds or lease rental payments under section 25.2 of this
591+22 chapter. The commission shall cause the tax levied to be certified to the
592+23 proper officers as other tax levies are certified, and to the auditor of the
593+24 county in which the redevelopment district is located, before the
594+25 second day of October in each year. The tax shall be estimated and
595+26 entered on the tax duplicate by the county auditor and shall be collected
596+27 and enforced by the county treasurer in the same manner as other state
597+28 and county taxes are estimated, entered, collected, and enforced. The
598+29 amount of the tax levied to pay bonds or lease rentals payable from the
599+30 tax levied under this section shall be reduced by any amount available
600+31 in the allocation fund established under section 39(b)(3) 39(b)(5) of
601+32 this chapter or other revenues of the redevelopment commission to the
602+33 extent such revenues have been set aside in the redevelopment bond
603+34 fund.
604+35 (c) As the tax is collected, it shall be accumulated in a separate fund
605+36 to be known as the redevelopment district bond fund and shall be
606+37 applied to the payment of the bonds as they mature and the interest on
607+38 the bonds as it accrues, or to make lease payments and to no other
608+39 purpose. All accumulations of the fund before their use for the payment
609+40 of bonds and interest or to make lease payments shall be deposited with
610+41 the depository or depositories for other public funds of the unit in
611+42 accordance with IC 5-13, unless they are invested under IC 5-13-9.
614612 HB 1085—LS 6819/DI 116 14
615-1 district, then all proceeds from the sale or leasing of property in the
616-2 allocation area under section 22 of this chapter shall be paid into the
617-3 redevelopment district bond fund and become a part of that fund. In
618-4 arriving at the tax levy for any year, the redevelopment commission
619-5 shall take into account the amount of the proceeds deposited under this
620-6 subsection and remaining on hand.
621-7 (e) The tax levies provided for in this section are reviewable by
622-8 other bodies vested by law with the authority to ascertain that the levies
623-9 are sufficient to raise the amount that, with other amounts available, is
624-10 sufficient to meet the payments under the lease payable from the levy
625-11 of taxes.
626-12 SECTION 12. IC 36-7-14-29.6 IS ADDED TO THE INDIANA
627-13 CODE AS A NEW SECTION TO READ AS FOLLOWS
628-14 [EFFECTIVE UPON PASSAGE]: Sec. 29.6. (a) Except as provided
629-15 in subsection (b), property tax proceeds allocated under this
630-16 chapter that are otherwise authorized under this chapter to be
631-17 expended for purposes related to a redevelopment project that is
632-18 located outside the boundaries of the allocation area may be
633-19 expended for those purposes only if the redevelopment commission
634-20 immediately at the conclusion of the public hearing required under
635-21 section 17 of this chapter adopts a declaratory resolution, and the
636-22 applicable legislative body votes to approve the declaratory
637-23 resolution, that finds that it has been clearly demonstrated that the
638-24 expenditure:
639-25 (1) will directly benefit the allocation area; or
640-26 (2) will result in the creation or retention of jobs in the private
641-27 sector and provide an estimate of how many jobs will be
642-28 created or retained over a specified time period.
643-29 (b) This section does not apply to any transfer of property tax
644-30 proceeds to a a school corporation, an accredited or nonaccredited
645-31 public or private school, or a charter school, including a transfer
646-32 of property tax proceeds for a program under IC 36-7-25-7.
647-33 SECTION 13. IC 36-7-14-39, AS AMENDED BY P.L.174-2022,
648-34 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
649-35 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) As used in this
650-36 section:
651-37 "Allocation area" means that part of a redevelopment project area
652-38 to which an allocation provision of a declaratory resolution adopted
653-39 under section 15 of this chapter refers for purposes of distribution and
654-40 allocation of property taxes.
655-41 "Base assessed value" means, subject to subsection (j), the
656-42 following:
613+1 (d) If there are no outstanding bonds that are payable solely or in
614+2 part from tax proceeds allocated under section 39(b)(3) 39(b)(5) of this
615+3 chapter and that were issued to pay costs of redevelopment in an
616+4 allocation area that is located wholly or in part in the special taxing
617+5 district, then all proceeds from the sale or leasing of property in the
618+6 allocation area under section 22 of this chapter shall be paid into the
619+7 redevelopment district bond fund and become a part of that fund. In
620+8 arriving at the tax levy for any year, the redevelopment commission
621+9 shall take into account the amount of the proceeds deposited under this
622+10 subsection and remaining on hand.
623+11 (e) The tax levies provided for in this section are reviewable by
624+12 other bodies vested by law with the authority to ascertain that the levies
625+13 are sufficient to raise the amount that, with other amounts available, is
626+14 sufficient to meet the payments under the lease payable from the levy
627+15 of taxes.
628+16 SECTION 11. IC 36-7-14-29.6 IS ADDED TO THE INDIANA
629+17 CODE AS A NEW SECTION TO READ AS FOLLOWS
630+18 [EFFECTIVE UPON PASSAGE]: Sec. 29.6. (a) Except as provided
631+19 in subsection (b), property tax proceeds allocated under this
632+20 chapter that are otherwise authorized under this chapter to be
633+21 expended for purposes related to a redevelopment project that is
634+22 located outside the boundaries of the allocation area may be
635+23 expended for those purposes only if the redevelopment commission
636+24 immediately at the conclusion of the public hearing required under
637+25 section 17 of this chapter adopts a declaratory resolution, and the
638+26 applicable legislative body votes to approve the declaratory
639+27 resolution, that finds that it has been clearly demonstrated that the
640+28 expenditure:
641+29 (1) will directly benefit the allocation area; or
642+30 (2) will result in the creation or retention of jobs in the private
643+31 sector and provide an estimate of how many jobs will be
644+32 created or retained over a specified time period.
645+33 (b) This section does not apply to any transfer of property tax
646+34 proceeds to a a school corporation, an accredited or nonaccredited
647+35 public or private school, or a charter school, including a transfer
648+36 of property tax proceeds for a program under IC 36-7-25-7.
649+37 SECTION 12. IC 36-7-14-39, AS AMENDED BY P.L.174-2022,
650+38 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
651+39 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) As used in this
652+40 section:
653+41 "Allocation area" means that part of a redevelopment project area
654+42 to which an allocation provision of a declaratory resolution adopted
657655 HB 1085—LS 6819/DI 116 15
658-1 (1) If an allocation provision is adopted after June 30, 1995, in a
659-2 declaratory resolution or an amendment to a declaratory
660-3 resolution establishing an economic development area:
661-4 (A) the net assessed value of all the property as finally
662-5 determined for the assessment date immediately preceding the
663-6 effective date of the allocation provision of the declaratory
664-7 resolution, as adjusted under subsection (h); plus
665-8 (B) to the extent that it is not included in clause (A), the net
666-9 assessed value of property that is assessed as residential
667-10 property under the rules of the department of local government
668-11 finance, within the allocation area, as finally determined for
669-12 the current assessment date.
670-13 (2) If an allocation provision is adopted after June 30, 1997, in a
671-14 declaratory resolution or an amendment to a declaratory
672-15 resolution establishing a redevelopment project area:
673-16 (A) the net assessed value of all the property as finally
674-17 determined for the assessment date immediately preceding the
675-18 effective date of the allocation provision of the declaratory
676-19 resolution, as adjusted under subsection (h); plus
677-20 (B) to the extent that it is not included in clause (A), the net
678-21 assessed value of property that is assessed as residential
679-22 property under the rules of the department of local government
680-23 finance, as finally determined for the current assessment date.
681-24 (3) If:
682-25 (A) an allocation provision adopted before June 30, 1995, in
683-26 a declaratory resolution or an amendment to a declaratory
684-27 resolution establishing a redevelopment project area expires
685-28 after June 30, 1997; and
686-29 (B) after June 30, 1997, a new allocation provision is included
687-30 in an amendment to the declaratory resolution;
688-31 the net assessed value of all the property as finally determined for
689-32 the assessment date immediately preceding the effective date of
690-33 the allocation provision adopted after June 30, 1997, as adjusted
691-34 under subsection (h).
692-35 (4) Except as provided in subdivision (5), for all other allocation
693-36 areas, the net assessed value of all the property as finally
694-37 determined for the assessment date immediately preceding the
695-38 effective date of the allocation provision of the declaratory
696-39 resolution, as adjusted under subsection (h).
697-40 (5) If an allocation area established in an economic development
698-41 area before July 1, 1995, is expanded after June 30, 1995, the
699-42 definition in subdivision (1) applies to the expanded part of the
656+1 under section 15 of this chapter refers for purposes of distribution and
657+2 allocation of property taxes.
658+3 "Base assessed value" means, subject to subsection (j), the
659+4 following:
660+5 (1) If an allocation provision is adopted after June 30, 1995, in a
661+6 declaratory resolution or an amendment to a declaratory
662+7 resolution establishing an economic development area:
663+8 (A) the net assessed value of all the property as finally
664+9 determined for the assessment date immediately preceding the
665+10 effective date of the allocation provision of the declaratory
666+11 resolution, as adjusted under subsection (h); plus
667+12 (B) to the extent that it is not included in clause (A), the net
668+13 assessed value of property that is assessed as residential
669+14 property under the rules of the department of local government
670+15 finance, within the allocation area, as finally determined for
671+16 the current assessment date.
672+17 (2) If an allocation provision is adopted after June 30, 1997, in a
673+18 declaratory resolution or an amendment to a declaratory
674+19 resolution establishing a redevelopment project area:
675+20 (A) the net assessed value of all the property as finally
676+21 determined for the assessment date immediately preceding the
677+22 effective date of the allocation provision of the declaratory
678+23 resolution, as adjusted under subsection (h); plus
679+24 (B) to the extent that it is not included in clause (A), the net
680+25 assessed value of property that is assessed as residential
681+26 property under the rules of the department of local government
682+27 finance, as finally determined for the current assessment date.
683+28 (3) If:
684+29 (A) an allocation provision adopted before June 30, 1995, in
685+30 a declaratory resolution or an amendment to a declaratory
686+31 resolution establishing a redevelopment project area expires
687+32 after June 30, 1997; and
688+33 (B) after June 30, 1997, a new allocation provision is included
689+34 in an amendment to the declaratory resolution;
690+35 the net assessed value of all the property as finally determined for
691+36 the assessment date immediately preceding the effective date of
692+37 the allocation provision adopted after June 30, 1997, as adjusted
693+38 under subsection (h).
694+39 (4) Except as provided in subdivision (5), for all other allocation
695+40 areas, the net assessed value of all the property as finally
696+41 determined for the assessment date immediately preceding the
697+42 effective date of the allocation provision of the declaratory
700698 HB 1085—LS 6819/DI 116 16
701-1 area added after June 30, 1995.
702-2 (6) If an allocation area established in a redevelopment project
703-3 area before July 1, 1997, is expanded after June 30, 1997, the
704-4 definition in subdivision (2) applies to the expanded part of the
705-5 area added after June 30, 1997.
706-6 Except as provided in section 39.3 of this chapter, "property taxes"
707-7 means taxes imposed under IC 6-1.1 on real property. However, upon
708-8 approval by a resolution of the redevelopment commission adopted
709-9 before June 1, 1987, "property taxes" also includes taxes imposed
710-10 under IC 6-1.1 on depreciable personal property. If a redevelopment
711-11 commission adopted before June 1, 1987, a resolution to include within
712-12 the definition of property taxes, taxes imposed under IC 6-1.1 on
713-13 depreciable personal property that has a useful life in excess of eight
714-14 (8) years, the commission may by resolution determine the percentage
715-15 of taxes imposed under IC 6-1.1 on all depreciable personal property
716-16 that will be included within the definition of property taxes. However,
717-17 the percentage included must not exceed twenty-five percent (25%) of
718-18 the taxes imposed under IC 6-1.1 on all depreciable personal property.
719-19 (b) A declaratory resolution adopted under section 15 of this chapter
720-20 on or before the allocation deadline determined under subsection (i)
721-21 may include a provision with respect to the allocation and distribution
722-22 of property taxes for the purposes and in the manner provided in this
723-23 section. A declaratory resolution previously adopted may include an
724-24 allocation provision by the amendment of that declaratory resolution on
725-25 or before the allocation deadline determined under subsection (i) in
726-26 accordance with the procedures required for its original adoption. A
727-27 declaratory resolution or amendment that establishes an allocation
728-28 provision must include a specific finding of fact, supported by
729-29 evidence, that the adoption of the allocation provision will result in
730-30 new property taxes in the area that would not have been generated but
731-31 for the adoption of the allocation provision. For an allocation area
732-32 established before July 1, 1995, the expiration date of any allocation
733-33 provisions for the allocation area is June 30, 2025, or the last date of
734-34 any obligations that are outstanding on July 1, 2015, whichever is later.
735-35 A declaratory resolution or an amendment that establishes an allocation
736-36 provision after June 30, 1995, must specify an expiration date for the
737-37 allocation provision. For an allocation area established before July 1,
738-38 2008, the expiration date may not be more than thirty (30) years after
739-39 the date on which the allocation provision is established. For an
740-40 allocation area established after June 30, 2008, the expiration date may
741-41 not be more than twenty-five (25) years after the date on which the first
742-42 obligation was incurred to pay principal and interest on bonds or lease
699+1 resolution, as adjusted under subsection (h).
700+2 (5) If an allocation area established in an economic development
701+3 area before July 1, 1995, is expanded after June 30, 1995, the
702+4 definition in subdivision (1) applies to the expanded part of the
703+5 area added after June 30, 1995.
704+6 (6) If an allocation area established in a redevelopment project
705+7 area before July 1, 1997, is expanded after June 30, 1997, the
706+8 definition in subdivision (2) applies to the expanded part of the
707+9 area added after June 30, 1997.
708+10 Except as provided in section 39.3 of this chapter, "property taxes"
709+11 means taxes imposed under IC 6-1.1 on real property. However, upon
710+12 approval by a resolution of the redevelopment commission adopted
711+13 before June 1, 1987, "property taxes" also includes taxes imposed
712+14 under IC 6-1.1 on depreciable personal property. If a redevelopment
713+15 commission adopted before June 1, 1987, a resolution to include within
714+16 the definition of property taxes, taxes imposed under IC 6-1.1 on
715+17 depreciable personal property that has a useful life in excess of eight
716+18 (8) years, the commission may by resolution determine the percentage
717+19 of taxes imposed under IC 6-1.1 on all depreciable personal property
718+20 that will be included within the definition of property taxes. However,
719+21 the percentage included must not exceed twenty-five percent (25%) of
720+22 the taxes imposed under IC 6-1.1 on all depreciable personal property.
721+23 (b) A declaratory resolution adopted under section 15 of this chapter
722+24 on or before the allocation deadline determined under subsection (i)
723+25 may include a provision with respect to the allocation and distribution
724+26 of property taxes for the purposes and in the manner provided in this
725+27 section. A declaratory resolution previously adopted may include an
726+28 allocation provision by the amendment of that declaratory resolution on
727+29 or before the allocation deadline determined under subsection (i) in
728+30 accordance with the procedures required for its original adoption. A
729+31 declaratory resolution or amendment that establishes an allocation
730+32 provision must include a specific finding of fact, supported by
731+33 evidence, that the adoption of the allocation provision will result in
732+34 new property taxes in the area that would not have been generated but
733+35 for the adoption of the allocation provision. For an allocation area
734+36 established before July 1, 1995, the expiration date of any allocation
735+37 provisions for the allocation area is June 30, 2025, or the last date of
736+38 any obligations that are outstanding on July 1, 2015, whichever is later.
737+39 A declaratory resolution or an amendment that establishes an allocation
738+40 provision after June 30, 1995, must specify an expiration date for the
739+41 allocation provision. For an allocation area established before July 1,
740+42 2008, the expiration date may not be more than thirty (30) years after
743741 HB 1085—LS 6819/DI 116 17
744-1 rentals on leases payable from tax increment revenues. However, with
745-2 respect to bonds or other obligations that were issued before July 1,
746-3 2008, if any of the bonds or other obligations that were scheduled when
747-4 issued to mature before the specified expiration date and that are
748-5 payable only from allocated tax proceeds with respect to the allocation
749-6 area remain outstanding as of the expiration date, the allocation
750-7 provision does not expire until all of the bonds or other obligations are
751-8 no longer outstanding. Notwithstanding any other law, in the case of an
752-9 allocation area that is established after June 30, 2019, and that is
753-10 located in a redevelopment project area described in section
754-11 25.1(c)(3)(C) of this chapter, an economic development area described
755-12 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
756-13 area described in section 25.1(c)(3)(C) of this chapter, the expiration
757-14 date of the allocation provision may not be more than thirty-five (35)
758-15 years after the date on which the allocation provision is established.
759-16 The allocation provision may apply to all or part of the redevelopment
760-17 project area. The allocation provision must require that any property
761-18 taxes subsequently levied by or for the benefit of any public body
762-19 entitled to a distribution of property taxes on taxable property in the
763-20 allocation area be allocated and distributed as follows:
764-21 (1) Except as otherwise provided in this section, the proceeds of
765-22 the taxes attributable to the lesser of:
766-23 (A) the assessed value of the property for the assessment date
767-24 with respect to which the allocation and distribution is made;
768-25 or
769-26 (B) the base assessed value;
770-27 shall be allocated to and, when collected, paid into the funds of
771-28 the respective taxing units.
772-29 (2) This subdivision applies to an allocation area established
773-30 by a county in accordance with section 15 of this chapter after
774-31 June 30, 2023. The amount determined under the following
775-32 calculation shall be distributed for police or fire services:
776-33 STEP ONE: Determine the amount, if any, of the assessed
777-34 value of the taxable property in the allocation area for the
778-35 most recent assessment date minus the base assessed value.
779-36 STEP TWO: Multiply the amount determined under STEP
780-37 ONE by the county unit's total nonreferendum tax rate per
781-38 one hundred dollars ($100) of assessed value.
782-39 STEP THREE: Multiply the STEP TWO product by five
783-40 percent (5%).
784-41 The amount determined under STEP THREE of this
785-42 subdivision shall be allocated to and, when collected, paid to
742+1 the date on which the allocation provision is established. For an
743+2 allocation area established after June 30, 2008, the expiration date may
744+3 not be more than twenty-five (25) years after the date on which the first
745+4 obligation was incurred to pay principal and interest on bonds or lease
746+5 rentals on leases payable from tax increment revenues. However, with
747+6 respect to bonds or other obligations that were issued before July 1,
748+7 2008, if any of the bonds or other obligations that were scheduled when
749+8 issued to mature before the specified expiration date and that are
750+9 payable only from allocated tax proceeds with respect to the allocation
751+10 area remain outstanding as of the expiration date, the allocation
752+11 provision does not expire until all of the bonds or other obligations are
753+12 no longer outstanding. Notwithstanding any other law, in the case of an
754+13 allocation area that is established after June 30, 2019, and that is
755+14 located in a redevelopment project area described in section
756+15 25.1(c)(3)(C) of this chapter, an economic development area described
757+16 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
758+17 area described in section 25.1(c)(3)(C) of this chapter, the expiration
759+18 date of the allocation provision may not be more than thirty-five (35)
760+19 years after the date on which the allocation provision is established.
761+20 The allocation provision may apply to all or part of the redevelopment
762+21 project area. The allocation provision must require that any property
763+22 taxes subsequently levied by or for the benefit of any public body
764+23 entitled to a distribution of property taxes on taxable property in the
765+24 allocation area be allocated and distributed as follows:
766+25 (1) Except as otherwise provided in this section, the proceeds of
767+26 the taxes attributable to the lesser of:
768+27 (A) the assessed value of the property for the assessment date
769+28 with respect to which the allocation and distribution is made;
770+29 or
771+30 (B) the base assessed value;
772+31 shall be allocated to and, when collected, paid into the funds of
773+32 the respective taxing units.
774+33 (2) This subdivision applies to an allocation area established
775+34 in accordance with section 15 of this chapter after June 30,
776+35 2023. The amount determined under this subdivision shall be
777+36 distributed according to the following:
778+37 (A) The following calculation as set forth in this clause
779+38 applies to an allocation area established by a county or a
780+39 municipality:
781+40 STEP ONE: Determine the amount, if any, of the
782+41 assessed value of the taxable property in the allocation
783+42 area for the most recent assessment date minus the base
786784 HB 1085—LS 6819/DI 116 18
787-1 each county taxing unit that provides police or fire services in
788-2 the allocation area to be used for operating or capital
789-3 expenditures required for providing police and fire services
790-4 in the allocation area.
791-5 (3) This subdivision applies to a fire protection territory
792-6 established after December 31, 2022. If a unit becomes a
793-7 participating unit of a fire protection territory that is
794-8 established after a declaratory resolution is adopted under
795-9 section 15 of this chapter, the excess of the proceeds of the
796-10 property taxes attributable to an increase in the property tax
797-11 rate for the participating unit of a fire protection territory:
798-12 (A) except as otherwise provided by this subdivision, shall
799-13 be determined as follows:
800-14 STEP ONE: Divide the unit's tax rate for fire protection
801-15 for the year before the establishment of the fire
802-16 protection territory by the participating unit's tax rate
803-17 as part of the fire protection territory.
804-18 STEP TWO: Subtract the STEP ONE amount from one
805-19 (1).
806-20 STEP THREE: Multiply the STEP TWO amount by the
807-21 allocated property tax attributable to the participating
808-22 unit of the fire protection territory; and
809-23 (B) to the extent not otherwise included in subdivisions (1),
810-24 (2), and (4), shall be allocated to and distributed in the
811-25 form of an assessed value pass back to the participating
812-26 unit of the fire protection territory for the assessment date
813-27 with respect to which the allocation is made.
814-28 However, if the redevelopment commission determines that it
815-29 is unable to meet its debt service obligations with regards to
816-30 the allocation area without all or part of the assessed value
817-31 pass back to the participating unit of a fire protection area
818-32 under this subdivision, then the assessed value pass back
819-33 under this subdivision shall be reduced by the amount
820-34 necessary for the redevelopment commission to meet its debt
821-35 service obligations of the allocation area.
822-36 (2) (4) The excess of the proceeds of the property taxes imposed
823-37 for the assessment date with respect to which the allocation and
824-38 distribution is made that are attributable to taxes imposed after
825-39 being approved by the voters in a referendum or local public
826-40 question conducted after April 30, 2010, not otherwise included
827-41 in subdivision (1) subdivisions (1), (2), and (3) shall be allocated
828-42 to and, when collected, paid into the funds of the taxing unit for
785+1 assessed value.
786+2 STEP TWO: Determine the average tax rate per one
787+3 hundred dollars ($100) of assessed value of the school
788+4 corporations' total nonreferendum tax rates per one
789+5 hundred dollars ($100) of assessed value for school
790+6 corporations located in the allocation area.
791+7 STEP THREE: Multiply the amount determined under
792+8 STEP ONE by the average tax rate determined under
793+9 STEP TWO.
794+10 STEP FOUR: Multiply the STEP THREE product by
795+11 five percent (5%).
796+12 The amount determined under STEP FOUR of this clause
797+13 shall be allocated to and, when collected, paid to school
798+14 corporations that maintain an attendance area that
799+15 includes all or part of the allocation area. If more than one
800+16 (1) school corporation maintains an attendance area within
801+17 the allocation area, the distribution shall be apportioned
802+18 based on the allocation attributable to each school
803+19 corporation. A school corporation that receives a
804+20 distribution under this clause shall deposit the distribution
805+21 in the school corporation's operations fund and may use
806+22 the distribution only to fund career and technical
807+23 education programs of the applicable school corporation.
808+24 (B) The following calculation as set forth in this clause
809+25 applies only to an allocation area established by a county:
810+26 STEP ONE: Determine the amount, if any, of the
811+27 assessed value of the taxable property in the allocation
812+28 area for the most recent assessment date minus the base
813+29 assessed value.
814+30 STEP TWO: Multiply the amount determined under
815+31 STEP ONE by the county unit's total nonreferendum tax
816+32 rate per one hundred dollars ($100) of assessed value.
817+33 STEP THREE: Multiply the STEP TWO product by five
818+34 percent (5%).
819+35 The amount determined under STEP THREE of this clause
820+36 shall be allocated to and, when collected, paid to each
821+37 county taxing unit that provides police or fire services in
822+38 the allocation area to be used for operating or capital
823+39 expenditures required for providing police and fire
824+40 services in the allocation area.
825+41 (3) This subdivision applies to a fire protection territory
826+42 established after December 31, 2022. If a unit becomes a
829827 HB 1085—LS 6819/DI 116 19
830-1 which the referendum or local public question was conducted.
831-2 (3) (5) Except as otherwise provided in this section, property tax
832-3 proceeds in excess of those described in subdivisions (1), (2), (3),
833-4 and (2) (4) shall be allocated to the redevelopment district and,
834-5 when collected, paid into an allocation fund for that allocation
835-6 area that may be used by the redevelopment district only to do one
836-7 (1) or more of the following:
837-8 (A) Pay the principal of and interest on any obligations
838-9 payable solely from allocated tax proceeds which are incurred
839-10 by the redevelopment district for the purpose of financing or
840-11 refinancing the redevelopment of that allocation area.
841-12 (B) Establish, augment, or restore the debt service reserve for
842-13 bonds payable solely or in part from allocated tax proceeds in
843-14 that allocation area.
844-15 (C) Pay the principal of and interest on bonds payable from
845-16 allocated tax proceeds in that allocation area and from the
846-17 special tax levied under section 27 of this chapter.
847-18 (D) Pay the principal of and interest on bonds issued by the
848-19 unit to pay for local public improvements that are physically
849-20 located in or physically connected to that allocation area.
850-21 (E) Pay premiums on the redemption before maturity of bonds
851-22 payable solely or in part from allocated tax proceeds in that
852-23 allocation area.
853-24 (F) Make payments on leases payable from allocated tax
854-25 proceeds in that allocation area under section 25.2 of this
855-26 chapter.
856-27 (G) Reimburse the unit for expenditures made by it for local
857-28 public improvements (which include buildings, parking
858-29 facilities, and other items described in section 25.1(a) of this
859-30 chapter) that are physically located in or physically connected
860-31 to that allocation area.
861-32 (H) Reimburse the unit for rentals paid by it for a building or
862-33 parking facility that is physically located in or physically
863-34 connected to that allocation area under any lease entered into
864-35 under IC 36-1-10.
865-36 (I) For property taxes first due and payable before January 1,
866-37 2009, pay all or a part of a property tax replacement credit to
867-38 taxpayers in an allocation area as determined by the
868-39 redevelopment commission. This credit equals the amount
869-40 determined under the following STEPS for each taxpayer in a
870-41 taxing district (as defined in IC 6-1.1-1-20) that contains all or
871-42 part of the allocation area:
828+1 participating unit of a fire protection territory that is
829+2 established after a declaratory resolution is adopted under
830+3 section 15 of this chapter, the excess of the proceeds of the
831+4 property taxes attributable to an increase in the property tax
832+5 rate for the participating unit of a fire protection territory:
833+6 (A) except as otherwise provided by this subdivision, shall
834+7 be determined as follows:
835+8 STEP ONE: Divide the unit's tax rate for fire protection
836+9 for the year before the establishment of the fire
837+10 protection territory by the participating unit's tax rate
838+11 as part of the fire protection territory.
839+12 STEP TWO: Subtract the STEP ONE amount from one
840+13 (1).
841+14 STEP THREE: Multiply the STEP TWO amount by the
842+15 allocated property tax attributable to the participating
843+16 unit of the fire protection territory; and
844+17 (B) to the extent not otherwise included in subdivisions (1),
845+18 (2), and (4), shall be allocated to and distributed in the
846+19 form of an assessed value pass back to the participating
847+20 unit of the fire protection territory for the assessment date
848+21 with respect to which the allocation is made.
849+22 However, if the redevelopment commission determines that it
850+23 is unable to meet its debt service obligations with regards to
851+24 the allocation area without all or part of the assessed value
852+25 pass back to the participating unit of a fire protection area
853+26 under this subdivision, then the assessed value pass back
854+27 under this subdivision shall be reduced by the amount
855+28 necessary for the redevelopment commission to meet its debt
856+29 service obligations of the allocation area.
857+30 (2) (4) The excess of the proceeds of the property taxes imposed
858+31 for the assessment date with respect to which the allocation and
859+32 distribution is made that are attributable to taxes imposed after
860+33 being approved by the voters in a referendum or local public
861+34 question conducted after April 30, 2010, not otherwise included
862+35 in subdivision (1) subdivisions (1), (2), and (3) shall be allocated
863+36 to and, when collected, paid into the funds of the taxing unit for
864+37 which the referendum or local public question was conducted.
865+38 (3) (5) Except as otherwise provided in this section, property tax
866+39 proceeds in excess of those described in subdivisions (1), (2), (3),
867+40 and (2) (4) shall be allocated to the redevelopment district and,
868+41 when collected, paid into an allocation fund for that allocation
869+42 area that may be used by the redevelopment district only to do one
872870 HB 1085—LS 6819/DI 116 20
873-1 STEP ONE: Determine that part of the sum of the amounts
874-2 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
875-3 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
876-4 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
877-5 the taxing district.
878-6 STEP TWO: Divide:
879-7 (i) that part of each county's eligible property tax
880-8 replacement amount (as defined in IC 6-1.1-21-2 (before its
881-9 repeal)) for that year as determined under IC 6-1.1-21-4
882-10 (before its repeal) that is attributable to the taxing district;
883-11 by
884-12 (ii) the STEP ONE sum.
885-13 STEP THREE: Multiply:
886-14 (i) the STEP TWO quotient; times
887-15 (ii) the total amount of the taxpayer's taxes (as defined in
888-16 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
889-17 that have been allocated during that year to an allocation
890-18 fund under this section.
891-19 If not all the taxpayers in an allocation area receive the credit
892-20 in full, each taxpayer in the allocation area is entitled to
893-21 receive the same proportion of the credit. A taxpayer may not
894-22 receive a credit under this section and a credit under section
895-23 39.5 of this chapter (before its repeal) in the same year.
896-24 (J) Pay expenses incurred by the redevelopment commission
897-25 for local public improvements that are in the allocation area or
898-26 serving the allocation area. Public improvements include
899-27 buildings, parking facilities, and other items described in
900-28 section 25.1(a) of this chapter.
901-29 (K) Reimburse public and private entities for expenses
902-30 incurred in training employees of industrial facilities that are
903-31 located:
904-32 (i) in the allocation area; and
905-33 (ii) on a parcel of real property that has been classified as
906-34 industrial property under the rules of the department of local
907-35 government finance.
908-36 However, the total amount of money spent for this purpose in
909-37 any year may not exceed the total amount of money in the
910-38 allocation fund that is attributable to property taxes paid by the
911-39 industrial facilities described in this clause. The
912-40 reimbursements under this clause must be made within three
913-41 (3) years after the date on which the investments that are the
914-42 basis for the increment financing are made.
871+1 (1) or more of the following:
872+2 (A) Pay the principal of and interest on any obligations
873+3 payable solely from allocated tax proceeds which are incurred
874+4 by the redevelopment district for the purpose of financing or
875+5 refinancing the redevelopment of that allocation area.
876+6 (B) Establish, augment, or restore the debt service reserve for
877+7 bonds payable solely or in part from allocated tax proceeds in
878+8 that allocation area.
879+9 (C) Pay the principal of and interest on bonds payable from
880+10 allocated tax proceeds in that allocation area and from the
881+11 special tax levied under section 27 of this chapter.
882+12 (D) Pay the principal of and interest on bonds issued by the
883+13 unit to pay for local public improvements that are physically
884+14 located in or physically connected to that allocation area.
885+15 (E) Pay premiums on the redemption before maturity of bonds
886+16 payable solely or in part from allocated tax proceeds in that
887+17 allocation area.
888+18 (F) Make payments on leases payable from allocated tax
889+19 proceeds in that allocation area under section 25.2 of this
890+20 chapter.
891+21 (G) Reimburse the unit for expenditures made by it for local
892+22 public improvements (which include buildings, parking
893+23 facilities, and other items described in section 25.1(a) of this
894+24 chapter) that are physically located in or physically connected
895+25 to that allocation area.
896+26 (H) Reimburse the unit for rentals paid by it for a building or
897+27 parking facility that is physically located in or physically
898+28 connected to that allocation area under any lease entered into
899+29 under IC 36-1-10.
900+30 (I) For property taxes first due and payable before January 1,
901+31 2009, pay all or a part of a property tax replacement credit to
902+32 taxpayers in an allocation area as determined by the
903+33 redevelopment commission. This credit equals the amount
904+34 determined under the following STEPS for each taxpayer in a
905+35 taxing district (as defined in IC 6-1.1-1-20) that contains all or
906+36 part of the allocation area:
907+37 STEP ONE: Determine that part of the sum of the amounts
908+38 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
909+39 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
910+40 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
911+41 the taxing district.
912+42 STEP TWO: Divide:
915913 HB 1085—LS 6819/DI 116 21
916-1 (L) Pay the costs of carrying out an eligible efficiency project
917-2 (as defined in IC 36-9-41-1.5) within the unit that established
918-3 the redevelopment commission. However, property tax
919-4 proceeds may be used under this clause to pay the costs of
920-5 carrying out an eligible efficiency project only if those
921-6 property tax proceeds exceed the amount necessary to do the
922-7 following:
923-8 (i) Make, when due, any payments required under clauses
924-9 (A) through (K), including any payments of principal and
925-10 interest on bonds and other obligations payable under this
926-11 subdivision, any payments of premiums under this
927-12 subdivision on the redemption before maturity of bonds, and
928-13 any payments on leases payable under this subdivision.
929-14 (ii) Make any reimbursements required under this
930-15 subdivision.
931-16 (iii) Pay any expenses required under this subdivision.
932-17 (iv) Establish, augment, or restore any debt service reserve
933-18 under this subdivision.
934-19 (M) Expend money and provide financial assistance as
935-20 authorized in section 12.2(a)(27) of this chapter.
936-21 The allocation fund may not be used for operating expenses of the
937-22 commission.
938-23 (4) (6) Except as provided in subsection (g), before June 15 of
939-24 each year, the commission shall do the following:
940-25 (A) Determine the amount, if any, by which the assessed value
941-26 of the taxable property in the allocation area for the most
942-27 recent assessment date minus the base assessed value, when
943-28 multiplied by the estimated tax rate of the allocation area, will
944-29 exceed the amount of assessed value needed to produce the
945-30 property taxes necessary to make, when due, principal and
946-31 interest payments on bonds described in subdivision (3), (5),
947-32 plus the amount necessary for other purposes described in
948-33 subdivision (3). (5).
949-34 (B) Provide a written notice to the county auditor, the fiscal
950-35 body of the county or municipality that established the
951-36 department of redevelopment, and the officers who are
952-37 authorized to fix budgets, tax rates, and tax levies under
953-38 IC 6-1.1-17-5 for each of the other taxing units that is wholly
954-39 or partly located within the allocation area. The county auditor,
955-40 upon receiving the notice, shall forward this notice (in an
956-41 electronic format) to the department of local government
957-42 finance not later than June 15 of each year. The notice must:
958-HB 1085—LS 6819/DI 116 22
959-1 (i) state the amount, if any, of excess assessed value that the
960-2 commission has determined may be allocated to the
961-3 respective taxing units in the manner prescribed in
962-4 subdivision (1); or
963-5 (ii) state that the commission has determined that there is no
964-6 excess assessed value that may be allocated to the respective
965-7 taxing units in the manner prescribed in subdivision (1).
966-8 The county auditor shall allocate to the respective taxing units
967-9 the amount, if any, of excess assessed value determined by the
968-10 commission. The commission may not authorize an allocation
969-11 of assessed value to the respective taxing units under this
970-12 subdivision if to do so would endanger the interests of the
971-13 holders of bonds described in subdivision (3) (5) or lessors
972-14 under section 25.3 of this chapter.
973-15 (C) If:
974-16 (i) the amount of excess assessed value determined by the
975-17 commission is expected to generate more than two hundred
976-18 percent (200%) of the amount of allocated tax proceeds
977-19 necessary to make, when due, principal and interest
978-20 payments on bonds described in subdivision (3); (5); plus
979-21 (ii) the amount necessary for other purposes described in
980-22 subdivision (3); (5);
981-23 the commission shall submit to the legislative body of the unit
982-24 its determination of the excess assessed value that the
983-25 commission proposes to allocate to the respective taxing units
984-26 use for non-debt, one (1) time purposes within the calendar
985-27 year before allocating the balance of the excess assessed
986-28 value to the respective taxing units in the manner
987-29 prescribed in subdivision (1). in the manner prescribed in
988-30 subdivision (1). The legislative body of the unit may approve
989-31 the commission's determination or modify the amount of the
990-32 excess assessed value that will be allocated to the respective
991-33 taxing units in the manner prescribed in subdivision (1).
992-34 (5) (7) Notwithstanding subdivision (4), (6), in the case of an
993-35 allocation area that is established after June 30, 2019, and that is
994-36 located in a redevelopment project area described in section
995-37 25.1(c)(3)(C) of this chapter, an economic development area
996-38 described in section 25.1(c)(3)(C) of this chapter, or an urban
997-39 renewal project area described in section 25.1(c)(3)(C) of this
998-40 chapter, for each year the allocation provision is in effect, if the
999-41 amount of excess assessed value determined by the commission
1000-42 under subdivision (4)(A) (6)(A) is expected to generate more than
1001-HB 1085—LS 6819/DI 116 23
1002-1 two hundred percent (200%) of:
1003-2 (A) the amount of allocated tax proceeds necessary to make,
1004-3 when due, principal and interest payments on bonds described
1005-4 in subdivision (3) (5) for the project; plus
1006-5 (B) the amount necessary for other purposes described in
1007-6 subdivision (3) (5) for the project;
1008-7 the amount of the excess assessed value that generates more than
1009-8 two hundred percent (200%) of the amounts described in clauses
1010-9 (A) and (B) shall be allocated to the respective taxing units in the
1011-10 manner prescribed by subdivision (1).
1012-11 (c) For the purpose of allocating taxes levied by or for any taxing
1013-12 unit or units, the assessed value of taxable property in a territory in the
1014-13 allocation area that is annexed by any taxing unit after the effective
1015-14 date of the allocation provision of the declaratory resolution is the
1016-15 lesser of:
1017-16 (1) the assessed value of the property for the assessment date with
1018-17 respect to which the allocation and distribution is made; or
1019-18 (2) the base assessed value.
1020-19 (d) Property tax proceeds allocable to the redevelopment district
1021-20 under subsection (b)(3) (b)(5) may, subject to subsection (b)(4), (b)(6),
1022-21 be irrevocably pledged by the redevelopment district for payment as set
1023-22 forth in subsection (b)(3). (b)(5).
1024-23 (e) Notwithstanding any other law, each assessor shall, upon
1025-24 petition of the redevelopment commission, reassess the taxable
1026-25 property situated upon or in, or added to, the allocation area, effective
1027-26 on the next assessment date after the petition.
1028-27 (f) Notwithstanding any other law, the assessed value of all taxable
1029-28 property in the allocation area, for purposes of tax limitation, property
1030-29 tax replacement, and formulation of the budget, tax rate, and tax levy
1031-30 for each political subdivision in which the property is located is the
1032-31 lesser of:
1033-32 (1) the assessed value of the property as valued without regard to
1034-33 this section; or
1035-34 (2) the base assessed value.
1036-35 (g) If any part of the allocation area is located in an enterprise zone
1037-36 created under IC 5-28-15, the unit that designated the allocation area
1038-37 shall create funds as specified in this subsection. A unit that has
1039-38 obligations, bonds, or leases payable from allocated tax proceeds under
1040-39 subsection (b)(3) (b)(5) shall establish an allocation fund for the
1041-40 purposes specified in subsection (b)(3) (b)(5) and a special zone fund.
1042-41 Such a unit shall, until the end of the enterprise zone phase out period,
1043-42 deposit each year in the special zone fund any amount in the allocation
1044-HB 1085—LS 6819/DI 116 24
1045-1 fund derived from property tax proceeds in excess of those described
1046-2 in subsection (b)(1), and (b)(2), (b)(3), and (b)(4) from property
1047-3 located in the enterprise zone that exceeds the amount sufficient for the
1048-4 purposes specified in subsection (b)(3) (b)(5) for the year. The amount
1049-5 sufficient for purposes specified in subsection (b)(3) (b)(5) for the year
1050-6 shall be determined based on the pro rata portion of such current
1051-7 property tax proceeds from the part of the enterprise zone that is within
1052-8 the allocation area as compared to all such current property tax
1053-9 proceeds derived from the allocation area. A unit that has no
1054-10 obligations, bonds, or leases payable from allocated tax proceeds under
1055-11 subsection (b)(3) (b)(5) shall establish a special zone fund and deposit
1056-12 all the property tax proceeds in excess of those described in subsection
1057-13 (b)(1), and (b)(2), (b)(3), and (b)(4) in the fund derived from property
1058-14 tax proceeds in excess of those described in subsection (b)(1), and
1059-15 (b)(2), (b)(3), and (b)(4) from property located in the enterprise zone.
1060-16 The unit that creates the special zone fund shall use the fund (based on
1061-17 the recommendations of the urban enterprise association) for programs
1062-18 in job training, job enrichment, and basic skill development that are
1063-19 designed to benefit residents and employers in the enterprise zone or
1064-20 other purposes specified in subsection (b)(3), (b)(5), except that where
1065-21 reference is made in subsection (b)(3) (b)(5) to allocation area it shall
1066-22 refer for purposes of payments from the special zone fund only to that
1067-23 part of the allocation area that is also located in the enterprise zone.
1068-24 Those programs shall reserve at least one-half (1/2) of their enrollment
1069-25 in any session for residents of the enterprise zone.
1070-26 (h) The state board of accounts and department of local government
1071-27 finance shall make the rules and prescribe the forms and procedures
1072-28 that they consider expedient for the implementation of this chapter.
1073-29 After each reassessment in an area under a reassessment plan prepared
1074-30 under IC 6-1.1-4-4.2, the department of local government finance shall
1075-31 adjust the base assessed value one (1) time to neutralize any effect of
1076-32 the reassessment of the real property in the area on the property tax
1077-33 proceeds allocated to the redevelopment district under this section.
1078-34 After each annual adjustment under IC 6-1.1-4-4.5, the department of
1079-35 local government finance shall adjust the base assessed value one (1)
1080-36 time to neutralize any effect of the annual adjustment on the property
1081-37 tax proceeds allocated to the redevelopment district under this section.
1082-38 However, the adjustments under this subsection:
1083-39 (1) may not include the effect of phasing in assessed value due to
1084-40 property tax abatements under IC 6-1.1-12.1;
1085-41 (2) may not produce less property tax proceeds allocable to the
1086-42 redevelopment district under subsection (b)(3) (b)(5) than would
1087-HB 1085—LS 6819/DI 116 25
1088-1 otherwise have been received if the reassessment under the
1089-2 reassessment plan or the annual adjustment had not occurred; and
1090-3 (3) may decrease base assessed value only to the extent that
1091-4 assessed values in the allocation area have been decreased due to
1092-5 annual adjustments or the reassessment under the reassessment
1093-6 plan.
1094-7 Assessed value increases attributable to the application of an abatement
1095-8 schedule under IC 6-1.1-12.1 may not be included in the base assessed
1096-9 value of an allocation area. The department of local government
1097-10 finance may prescribe procedures for county and township officials to
1098-11 follow to assist the department in making the adjustments.
1099-12 (i) The allocation deadline referred to in subsection (b) is
1100-13 determined in the following manner:
1101-14 (1) The initial allocation deadline is December 31, 2011.
1102-15 (2) Subject to subdivision (3), the initial allocation deadline and
1103-16 subsequent allocation deadlines are automatically extended in
1104-17 increments of five (5) years, so that allocation deadlines
1105-18 subsequent to the initial allocation deadline fall on December 31,
1106-19 2016, and December 31 of each fifth year thereafter.
1107-20 (3) At least one (1) year before the date of an allocation deadline
1108-21 determined under subdivision (2), the general assembly may enact
1109-22 a law that:
1110-23 (A) terminates the automatic extension of allocation deadlines
1111-24 under subdivision (2); and
1112-25 (B) specifically designates a particular date as the final
1113-26 allocation deadline.
1114-27 (j) If a redevelopment commission adopts a declaratory resolution
1115-28 or an amendment to a declaratory resolution that contains an allocation
1116-29 provision and the redevelopment commission makes either of the
1117-30 filings required under section 17(e) of this chapter after the first
1118-31 anniversary of the effective date of the allocation provision, the auditor
1119-32 of the county in which the unit is located shall compute the base
1120-33 assessed value for the allocation area using the assessment date
1121-34 immediately preceding the later of:
1122-35 (1) the date on which the documents are filed with the county
1123-36 auditor; or
1124-37 (2) the date on which the documents are filed with the department
1125-38 of local government finance.
1126-39 (k) For an allocation area established after June 30, 2024,
1127-40 "residential property" refers to the assessed value of property that is
1128-41 allocated to the one percent (1%) homestead land and improvement
1129-42 categories in the county tax and billing software system, along with the
1130-HB 1085—LS 6819/DI 116 26
1131-1 residential assessed value as defined for purposes of calculating the
1132-2 rate for the local income tax property tax relief credit designated for
1133-3 residential property under IC 6-3.6-5-6(d)(3).
1134-4 (l) This subsection applies to an allocation area established in
1135-5 accordance with section 15 of this chapter before July 1, 2023. The
1136-6 redevelopment commission is strongly encouraged to make
1137-7 allocations to a school corporation.
1138-8 (m) A redevelopment commission may not adopt an amendment
1139-9 to a declaratory resolution that contains an allocation area
1140-10 provision that extends the expiration date of the allocation area
1141-11 provision, as provided in subsection (b). However, after the
1142-12 expiration of a previous allocation area provision, a redevelopment
1143-13 commission may adopt a declaratory resolution, or an amendment
1144-14 to a declaratory resolution, that contains a new allocation area
1145-15 provision with a new expiration date, and for which the county
1146-16 auditor in which the unit is located shall compute the base assessed
1147-17 value for the allocation area using the assessment date immediately
1148-18 preceding the effective date of the new allocation provision of the
1149-19 declaratory resolution or amendment.
1150-20 (n) A redevelopment commission may, pursuant to the approval
1151-21 of the local legislative body, create an account for a specific
1152-22 infrastructure purpose.
1153-23 (o) For a bond issuance related exclusively to infrastructure in
1154-24 an allocation area, new bonds may only be issued by an existing
1155-25 redevelopment commission between July 1, 2023, and January 1,
1156-26 2025.
1157-27 SECTION 14. IC 36-7-14-48, AS AMENDED BY P.L.38-2021,
1158-28 SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1159-29 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 48. (a) Notwithstanding
1160-30 section 39(a) of this chapter, with respect to the allocation and
1161-31 distribution of property taxes for the accomplishment of a program
1162-32 adopted under section 45 of this chapter, "base assessed value" means,
1163-33 subject to section 39(j) of this chapter, the net assessed value of all of
1164-34 the property, other than personal property, as finally determined for the
1165-35 assessment date immediately preceding the effective date of the
1166-36 allocation provision, as adjusted under section 39(h) of this chapter.
1167-37 (b) The allocation fund established under section 39(b) of this
1168-38 chapter for the allocation area for a program adopted under section 45
1169-39 of this chapter may be used only for purposes related to the
1170-40 accomplishment of the program, including the following:
1171-41 (1) The construction, rehabilitation, or repair of residential units
1172-42 within the allocation area.
1173-HB 1085—LS 6819/DI 116 27
1174-1 (2) The construction, reconstruction, or repair of any
1175-2 infrastructure (including streets, sidewalks, and sewers) within or
1176-3 serving the allocation area.
1177-4 (3) The acquisition of real property and interests in real property
1178-5 within the allocation area.
1179-6 (4) The demolition of real property within the allocation area.
1180-7 (5) The provision of financial assistance to enable individuals and
1181-8 families to purchase or lease residential units within the allocation
1182-9 area. However, financial assistance may be provided only to those
1183-10 individuals and families whose income is at or below the county's
1184-11 median income for individuals and families, respectively.
1185-12 (6) The provision of financial assistance to neighborhood
1186-13 development corporations to permit them to provide financial
1187-14 assistance for the purposes described in subdivision (5).
1188-15 (7) For property taxes first due and payable before January 1,
1189-16 2009, providing each taxpayer in the allocation area a credit for
1190-17 property tax replacement as determined under subsections (c) and
1191-18 (d). However, the commission may provide this credit only if the
1192-19 municipal legislative body (in the case of a redevelopment
1193-20 commission established by a municipality) or the county
1194-21 executive (in the case of a redevelopment commission established
1195-22 by a county) establishes the credit by ordinance adopted in the
1196-23 year before the year in which the credit is provided.
1197-24 (c) The maximum credit that may be provided under subsection
1198-25 (b)(7) to a taxpayer in a taxing district that contains all or part of an
1199-26 allocation area established for a program adopted under section 45 of
1200-27 this chapter shall be determined as follows:
1201-28 STEP ONE: Determine that part of the sum of the amounts
1202-29 described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
1203-30 through IC 6-1.1-21-2(g)(5) (before their repeal) that is
1204-31 attributable to the taxing district.
1205-32 STEP TWO: Divide:
1206-33 (A) that part of each county's eligible property tax replacement
1207-34 amount (as defined in IC 6-1.1-21-2) (before its repeal) for
1208-35 that year as determined under IC 6-1.1-21-4(a)(1) (before its
1209-36 repeal) that is attributable to the taxing district; by
1210-37 (B) the amount determined under STEP ONE.
1211-38 STEP THREE: Multiply:
1212-39 (A) the STEP TWO quotient; by
1213-40 (B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before
1214-41 its repeal) levied in the taxing district allocated to the
1215-42 allocation fund, including the amount that would have been
1216-HB 1085—LS 6819/DI 116 28
1217-1 allocated but for the credit.
1218-2 (d) The commission may determine to grant to taxpayers in an
1219-3 allocation area from its allocation fund a credit under this section, as
1220-4 calculated under subsection (c). Except as provided in subsection (g),
1221-5 one-half (1/2) of the credit shall be applied to each installment of taxes
1222-6 (as defined in IC 6-1.1-21-2) (before its repeal) that under
1223-7 IC 6-1.1-22-9 are due and payable in a year. The commission must
1224-8 provide for the credit annually by a resolution and must find in the
1225-9 resolution the following:
1226-10 (1) That the money to be collected and deposited in the allocation
1227-11 fund, based upon historical collection rates, after granting the
1228-12 credit will equal the amounts payable for contractual obligations
1229-13 from the fund, plus ten percent (10%) of those amounts.
1230-14 (2) If bonds payable from the fund are outstanding, that there is
1231-15 a debt service reserve for the bonds that at least equals the amount
1232-16 of the credit to be granted.
1233-17 (3) If bonds of a lessor under section 25.2 of this chapter or under
1234-18 IC 36-1-10 are outstanding and if lease rentals are payable from
1235-19 the fund, that there is a debt service reserve for those bonds that
1236-20 at least equals the amount of the credit to be granted.
1237-21 If the tax increment is insufficient to grant the credit in full, the
1238-22 commission may grant the credit in part, prorated among all taxpayers.
1239-23 (e) Notwithstanding section 39(b) of this chapter, the allocation
1240-24 fund established under section 39(b) of this chapter for the allocation
1241-25 area for a program adopted under section 45 of this chapter may only
1242-26 be used to do one (1) or more of the following:
1243-27 (1) Accomplish one (1) or more of the actions set forth in section
1244-28 39(b)(3)(A) 39(b)(5)(A) through 39(b)(3)(H) 39(b)(5)(H) and
1245-29 39(b)(3)(J) 39(b)(5)(J) of this chapter for property that is
1246-30 residential in nature.
1247-31 (2) Reimburse the county or municipality for expenditures made
1248-32 by the county or municipality in order to accomplish the housing
1249-33 program in that allocation area.
1250-34 The allocation fund may not be used for operating expenses of the
1251-35 commission.
1252-36 (f) Notwithstanding section 39(b) of this chapter, the commission
1253-37 shall, relative to the allocation fund established under section 39(b) of
1254-38 this chapter for an allocation area for a program adopted under section
1255-39 45 of this chapter, do the following before June 15 of each year:
1256-40 (1) Determine the amount, if any, by which the assessed value of
1257-41 the taxable property in the allocation area for the most recent
1258-42 assessment date minus the base assessed value, when multiplied
1259-HB 1085—LS 6819/DI 116 29
1260-1 by the estimated tax rate of the allocation area, will exceed the
1261-2 amount of assessed value needed to produce the property taxes
1262-3 necessary to:
1263-4 (A) make the distribution required under section 39(b)(2),
1264-5 39(b)(3), and 39(b)(4) of this chapter;
1265-6 (B) make, when due, principal and interest payments on bonds
1266-7 described in section 39(b)(3) 39(b)(5) of this chapter;
1267-8 (C) pay the amount necessary for other purposes described in
1268-9 section 39(b)(3) 39(b)(5) of this chapter; and
1269-10 (D) reimburse the county or municipality for anticipated
1270-11 expenditures described in subsection (e)(2).
1271-12 (2) Provide a written notice to the county auditor, the fiscal body
1272-13 of the county or municipality that established the department of
1273-14 redevelopment, and the officers who are authorized to fix budgets,
1274-15 tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
1275-16 taxing units that is wholly or partly located within the allocation
1276-17 area. The county auditor, upon receiving the notice, shall forward
1277-18 this notice (in an electronic format) to the department of local
1278-19 government finance not later than June 15 of each year. The
1279-20 notice must:
1280-21 (A) state the amount, if any, of excess property taxes that the
1281-22 commission has determined may be paid to the respective
1282-23 taxing units in the manner prescribed in section 39(b)(1) of
1283-24 this chapter; or
1284-25 (B) state that the commission has determined that there is no
1285-26 excess assessed value that may be allocated to the respective
1286-27 taxing units in the manner prescribed in subdivision (1).
1287-28 The county auditor shall allocate to the respective taxing units the
1288-29 amount, if any, of excess assessed value determined by the
1289-30 commission.
1290-31 (3) If:
1291-32 (A) the amount of excess assessed value determined by the
1292-33 commission is expected to generate more than two hundred
1293-34 percent (200%) of the amount of allocated tax proceeds
1294-35 necessary to make, when due, principal and interest payments
1295-36 on bonds described in subdivision (1); plus
1296-37 (B) the amount necessary for other purposes described in
1297-38 subdivision (1);
1298-39 the commission shall submit to the legislative body of the unit its
1299-40 determination of the excess assessed value that the commission
1300-41 proposes to allocate to the respective taxing units in the manner
1301-42 prescribed in subdivision (2). The legislative body of the unit may
1302-HB 1085—LS 6819/DI 116 30
1303-1 approve the commission's determination or modify the amount of
1304-2 the excess assessed value that will be allocated to the respective
1305-3 taxing units in the manner prescribed in subdivision (2).
1306-4 (g) This subsection applies to an allocation area only to the extent
1307-5 that the net assessed value of property that is assessed as residential
1308-6 property under the rules of the department of local government finance
1309-7 is not included in the base assessed value. If property tax installments
1310-8 with respect to a homestead (as defined in IC 6-1.1-12-37) are due in
1311-9 installments established by the department of local government finance
1312-10 under IC 6-1.1-22-9.5, each taxpayer subject to those installments in an
1313-11 allocation area is entitled to an additional credit under subsection (d)
1314-12 for the taxes (as defined in IC 6-1.1-21-2) (before its repeal) due in
1315-13 installments. The credit shall be applied in the same proportion to each
1316-14 installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal).
1317-15 SECTION 15. IC 36-7-14-52, AS AMENDED BY P.L.38-2021,
1318-16 SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1319-17 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 52. (a) Notwithstanding
1320-18 section 39(a) of this chapter, with respect to the allocation and
1321-19 distribution of property taxes for the accomplishment of the purposes
1322-20 of an age-restricted housing program adopted under section 49 of this
1323-21 chapter, "base assessed value" means, subject to section 39(j) of this
1324-22 chapter, the net assessed value of all of the property, other than
1325-23 personal property, as finally determined for the assessment date
1326-24 immediately preceding the effective date of the allocation provision, as
1327-25 adjusted under section 39(h) of this chapter.
1328-26 (b) The allocation fund established under section 39(b) of this
1329-27 chapter for the allocation area for an age-restricted housing program
1330-28 adopted under section 49 of this chapter may be used only for purposes
1331-29 related to the accomplishment of the purposes of the program,
1332-30 including, but not limited to, the following:
1333-31 (1) The construction of any infrastructure (including streets,
1334-32 sidewalks, and sewers) or local public improvements in, serving,
1335-33 or benefiting the allocation area.
1336-34 (2) The acquisition of real property and interests in real property
1337-35 within the allocation area.
1338-36 (3) The preparation of real property in anticipation of
1339-37 development of the real property within the allocation area.
1340-38 (4) To do any of the following:
1341-39 (A) Pay the principal of and interest on bonds or any other
1342-40 obligations payable from allocated tax proceeds in the
1343-41 allocation area that are incurred by the redevelopment district
1344-42 for the purpose of financing or refinancing the age-restricted
1345-HB 1085—LS 6819/DI 116 31
1346-1 housing program established under section 49 of this chapter
1347-2 for the allocation area.
1348-3 (B) Establish, augment, or restore the debt service reserve for
1349-4 bonds payable solely or in part from allocated tax proceeds in
1350-5 the allocation area.
1351-6 (C) Pay the principal of and interest on bonds payable from
1352-7 allocated tax proceeds in the allocation area and from the
1353-8 special tax levied under section 27 of this chapter.
1354-9 (D) Pay the principal of and interest on bonds issued by the
1355-10 unit to pay for local public improvements that are physically
1356-11 located in or physically connected to the allocation area.
1357-12 (E) Pay premiums on the redemption before maturity of bonds
1358-13 payable solely or in part from allocated tax proceeds in the
1359-14 allocation area.
1360-15 (F) Make payments on leases payable from allocated tax
1361-16 proceeds in the allocation area under section 25.2 of this
1362-17 chapter.
1363-18 (G) Reimburse the unit for expenditures made by the unit for
1364-19 local public improvements (which include buildings, parking
1365-20 facilities, and other items described in section 25.1(a) of this
1366-21 chapter) that are physically located in or physically connected
1367-22 to the allocation area.
1368-23 (c) Notwithstanding section 39(b) of this chapter, the commission
1369-24 shall, relative to the allocation fund established under section 39(b) of
1370-25 this chapter for an allocation area for an age-restricted housing program
1371-26 adopted under section 49 of this chapter, do the following before June
1372-27 15 of each year:
1373-28 (1) Determine the amount, if any, by which the assessed value of
1374-29 the taxable property in the allocation area for the most recent
1375-30 assessment date minus the base assessed value, when multiplied
1376-31 by the estimated tax rate of the allocation area, will exceed the
1377-32 amount of assessed value needed to produce the property taxes
1378-33 necessary to:
1379-34 (A) make the distribution required under section 39(b)(2),
1380-35 39(b)(3), and 39(b)(4) of this chapter;
1381-36 (B) make, when due, principal and interest payments on bonds
1382-37 described in section 39(b)(3) 39(b)(5) of this chapter;
1383-38 (C) pay the amount necessary for other purposes described in
1384-39 section 39(b)(3) 39(b)(5) of this chapter; and
1385-40 (D) reimburse the county or municipality for anticipated
1386-41 expenditures described in subsection (b)(2).
1387-42 (2) Provide a written notice to the county auditor, the fiscal body
1388-HB 1085—LS 6819/DI 116 32
1389-1 of the county or municipality that established the department of
1390-2 redevelopment, and the officers who are authorized to fix budgets,
1391-3 tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
1392-4 taxing units that is wholly or partly located within the allocation
1393-5 area. The county auditor, upon receiving the notice, shall forward
1394-6 this notice (in an electronic format) to the department of local
1395-7 government finance not later than June 15 of each year. The
1396-8 notice must:
1397-9 (A) state the amount, if any, of excess property taxes that the
1398-10 commission has determined may be paid to the respective
1399-11 taxing units in the manner prescribed in section 39(b)(1) of
1400-12 this chapter; or
1401-13 (B) state that the commission has determined that there is no
1402-14 excess assessed value that may be allocated to the respective
1403-15 taxing units in the manner prescribed in subdivision (1).
1404-16 The county auditor shall allocate to the respective taxing units the
1405-17 amount, if any, of excess assessed value determined by the
1406-18 commission.
1407-19 SECTION 16. IC 36-7-14-56, AS ADDED BY P.L.235-2019,
1408-20 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1409-21 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 56. (a) This section
1410-22 applies only to a residential housing development program authorized
1411-23 by section 53 of this chapter.
1412-24 (b) Notwithstanding section 39(a) of this chapter, with respect to the
1413-25 allocation and distribution of property taxes for the accomplishment of
1414-26 the purposes of a residential housing development program adopted
1415-27 under section 53 of this chapter, "base assessed value" means the net
1416-28 assessed value of all of the property, other than personal property, as
1417-29 finally determined for the assessment date immediately preceding the
1418-30 effective date of the allocation provision, as adjusted under section
1419-31 39(h) of this chapter.
1420-32 (c) The allocation fund established under section 39(b) of this
1421-33 chapter for the allocation area for a residential housing development
1422-34 program adopted under section 53 of this chapter may be used only for
1423-35 purposes related to the accomplishment of the purposes of the program,
1424-36 including, but not limited to, the following:
1425-37 (1) The construction of any infrastructure (including streets,
1426-38 roads, and sidewalks) or local public improvements in, serving,
1427-39 or benefiting a residential housing development project.
1428-40 (2) The acquisition of real property and interests in real property
1429-41 for rehabilitation purposes within the allocation area.
1430-42 (3) The preparation of real property in anticipation of
1431-HB 1085—LS 6819/DI 116 33
1432-1 development of the real property within the allocation area.
1433-2 (4) To do any of the following:
1434-3 (A) Pay the principal of and interest on bonds or any other
1435-4 obligations payable from allocated tax proceeds in the
1436-5 allocation area that are incurred by the redevelopment district
1437-6 for the purpose of financing or refinancing the residential
1438-7 housing development program established under section 53 of
1439-8 this chapter for the allocation area.
1440-9 (B) Establish, augment, or restore the debt service reserve for
1441-10 bonds payable solely or in part from allocated tax proceeds in
1442-11 the allocation area.
1443-12 (C) Pay the principal of and interest on bonds payable from
1444-13 allocated tax proceeds in the allocation area and from the
1445-14 special tax levied under section 27 of this chapter.
1446-15 (D) Pay the principal of and interest on bonds issued by the
1447-16 unit to pay for local public improvements that are physically
1448-17 located in or physically connected to the allocation area.
1449-18 (E) Pay premiums on the redemption before maturity of bonds
1450-19 payable solely or in part from allocated tax proceeds in the
1451-20 allocation area.
1452-21 (F) Make payments on leases payable from allocated tax
1453-22 proceeds in the allocation area under section 25.2 of this
1454-23 chapter.
1455-24 (G) Reimburse the unit for expenditures made by the unit for
1456-25 local public improvements (which include buildings, parking
1457-26 facilities, and other items described in section 25.1(a) of this
1458-27 chapter) that are physically located in or physically connected
1459-28 to the allocation area.
1460-29 (d) Notwithstanding section 39(b) of this chapter, the commission
1461-30 shall, relative to the allocation fund established under section 39(b) of
1462-31 this chapter for an allocation area for a residential housing
1463-32 development program adopted under section 53 of this chapter, do the
1464-33 following before June 15 of each year:
1465-34 (1) Determine the amount, if any, by which the assessed value of
1466-35 the taxable property in the allocation area for the most recent
1467-36 assessment date minus the base assessed value, when multiplied
1468-37 by the estimated tax rate of the allocation area, will exceed the
1469-38 amount of assessed value needed to produce the property taxes
1470-39 necessary to:
1471-40 (A) make the distribution required under section 39(b)(2),
1472-41 39(b)(3), and 39(b)(4) of this chapter;
1473-42 (B) make, when due, principal and interest payments on bonds
1474-HB 1085—LS 6819/DI 116 34
1475-1 described in section 39(b)(3) 39(b)(5) of this chapter;
1476-2 (C) pay the amount necessary for other purposes described in
1477-3 section 39(b)(3) 39(b)(5) of this chapter; and
1478-4 (D) reimburse the county or municipality for anticipated
1479-5 expenditures described in subsection (c)(2).
1480-6 (2) Provide a written notice to the county auditor, the fiscal body
1481-7 of the county or municipality that established the department of
1482-8 redevelopment, the officers who are authorized to fix budgets, tax
1483-9 rates, and tax levies under IC 6-1.1-17-5 for each of the other
1484-10 taxing units that are wholly or partly located within the allocation
1485-11 area, and (in an electronic format) the department of local
1486-12 government finance. The notice must:
1487-13 (A) state the amount, if any, of excess property taxes that the
1488-14 commission has determined may be paid to the respective
1489-15 taxing units in the manner prescribed in section 39(b)(1) of
1490-16 this chapter; or
1491-17 (B) state that the commission has determined that there is no
1492-18 excess assessed value that may be allocated to the respective
1493-19 taxing units in the manner prescribed in subdivision (1).
1494-20 The county auditor shall allocate to the respective taxing units the
1495-21 amount, if any, of excess assessed value determined by the
1496-22 commission.
1497-23 (e) If the amount of excess assessed value determined by the
1498-24 commission is expected to generate more than two hundred percent
1499-25 (200%) of the amount of allocated tax proceeds:
1500-26 (1) necessary to make, when due, principal and interest payments
1501-27 on bonds described in 39(b)(3) section 39(b)(5) of this chapter;
1502-28 plus
1503-29 (2) the amount necessary for other purposes described in 39(b)(3)
1504-30 section 39(b)(5) of this chapter;
1505-31 the commission shall submit to the county or municipal legislative
1506-32 body its determination of the excess assessed value that the
1507-33 commission proposes to allocate to the respective taxing units in the
1508-34 manner prescribed in subsection (d)(2). The county or municipal
1509-35 legislative body may approve the commission's determination or
1510-36 modify the amount of the excess assessed value that will be allocated
1511-37 to the respective taxing units in the manner prescribed in subsection
1512-38 (d)(2).
1513-39 (f) An allocation area must terminate on the date the residential
1514-40 housing development program is terminated as set forth in section
1515-41 53(e) of this chapter.
1516-42 SECTION 17. IC 36-7-14.5-12.5, AS AMENDED BY
1517-HB 1085—LS 6819/DI 116 35
1518-1 P.L.242-2015, SECTION 43, IS AMENDED TO READ AS
1519-2 FOLLOWS [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]:
1520-3 Sec. 12.5. (a) This section applies only to an authority in a county
1521-4 having a United States government military base that is scheduled for
1522-5 closing or is completely or partially inactive or closed.
1523-6 (b) In order to accomplish the purposes set forth in section 11 of this
1524-7 chapter, an authority may create an economic development area:
1525-8 (1) by following the procedures set forth in IC 36-7-14-41 for the
1526-9 establishment of an economic development area by a
1527-10 redevelopment commission; and
1528-11 (2) with the same effect as if the economic development area was
1529-12 created by a redevelopment commission.
1530-13 The area established under this section shall be established only in the
1531-14 area where a United States government military base that is scheduled
1532-15 for closing or is completely or partially inactive or closed is or was
1533-16 located.
1534-17 (c) In order to accomplish the purposes set forth in section 11 of this
1535-18 chapter, an authority may do the following in a manner that serves an
1536-19 economic development area created under this section:
1537-20 (1) Acquire by purchase, exchange, gift, grant, condemnation, or
1538-21 lease, or any combination of methods, any personal property or
1539-22 interest in real property needed for the redevelopment of
1540-23 economic development areas located within the corporate
1541-24 boundaries of the unit.
1542-25 (2) Hold, use, sell (by conveyance by deed, land sale contract, or
1543-26 other instrument), exchange, lease, rent, or otherwise dispose of
1544-27 property acquired for use in the redevelopment of economic
1545-28 development areas on the terms and conditions that the authority
1546-29 considers best for the unit and the unit's inhabitants.
1547-30 (3) Sell, lease, or grant interests in all or part of the real property
1548-31 acquired for redevelopment purposes to any other department of
1549-32 the unit or to any other governmental agency for public ways,
1550-33 levees, sewerage, parks, playgrounds, schools, and other public
1551-34 purposes on any terms that may be agreed on.
1552-35 (4) Clear real property acquired for redevelopment purposes.
1553-36 (5) Repair and maintain structures acquired for redevelopment
1554-37 purposes.
1555-38 (6) Remodel, rebuild, enlarge, or make major structural
1556-39 improvements on structures acquired for redevelopment purposes.
1557-40 (7) Survey or examine any land to determine whether the land
1558-41 should be included within an economic development area to be
1559-42 acquired for redevelopment purposes and to determine the value
1560-HB 1085—LS 6819/DI 116 36
1561-1 of that land.
1562-2 (8) Appear before any other department or agency of the unit, or
1563-3 before any other governmental agency in respect to any matter
1564-4 affecting:
1565-5 (A) real property acquired or being acquired for
1566-6 redevelopment purposes; or
1567-7 (B) any economic development area within the jurisdiction of
1568-8 the authority.
1569-9 (9) Institute or defend in the name of the unit any civil action, but
1570-10 all actions against the authority must be brought in the circuit or
1571-11 superior court of the county where the authority is located.
1572-12 (10) Use any legal or equitable remedy that is necessary or
1573-13 considered proper to protect and enforce the rights of and perform
1574-14 the duties of the authority.
1575-15 (11) Exercise the power of eminent domain in the name of and
1576-16 within the corporate boundaries of the unit subject to the same
1577-17 conditions and procedures that apply to the exercise of the power
1578-18 of eminent domain by a redevelopment commission under
1579-19 IC 36-7-14.
1580-20 (12) Appoint an executive director, appraisers, real estate experts,
1581-21 engineers, architects, surveyors, and attorneys.
1582-22 (13) Appoint clerks, guards, laborers, and other employees the
1583-23 authority considers advisable, except that those appointments
1584-24 must be made in accordance with the merit system of the unit if
1585-25 such a system exists.
1586-26 (14) Prescribe the duties and regulate the compensation of
1587-27 employees of the authority.
1588-28 (15) Provide a pension and retirement system for employees of
1589-29 the authority by using the public employees' retirement fund or a
1590-30 retirement plan approved by the United States Department of
1591-31 Housing and Urban Development.
1592-32 (16) Discharge and appoint successors to employees of the
1593-33 authority subject to subdivision (13).
1594-34 (17) Rent offices for use of the department or authority, or accept
1595-35 the use of offices furnished by the unit.
1596-36 (18) Equip the offices of the authority with the necessary
1597-37 furniture, furnishings, equipment, records, and supplies.
1598-38 (19) Design, order, contract for, and construct, reconstruct,
1599-39 improve, or renovate the following:
1600-40 (A) Any local public improvement or structure that is
1601-41 necessary for redevelopment purposes or economic
1602-42 development within the corporate boundaries of the unit.
1603-HB 1085—LS 6819/DI 116 37
1604-1 (B) Any structure that enhances development or economic
1605-2 development.
1606-3 (20) Contract for the construction, extension, or improvement of
1607-4 pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
1608-5 (21) Accept loans, grants, and other forms of financial assistance
1609-6 from, or contract with, the federal government, the state
1610-7 government, a municipal corporation, a special taxing district, a
1611-8 foundation, or any other source.
1612-9 (22) Make and enter into all contracts and agreements necessary
1613-10 or incidental to the performance of the duties of the authority and
1614-11 the execution of the powers of the authority under this chapter.
1615-12 (23) Take any action necessary to implement the purpose of the
1616-13 authority.
1617-14 (24) Provide financial assistance, in the manner that best serves
1618-15 the purposes set forth in section 11 of this chapter, including
1619-16 grants and loans, to enable private enterprise to develop,
1620-17 redevelop, and reuse military base property or otherwise enable
1621-18 private enterprise to provide social and economic benefits to the
1622-19 citizens of the unit.
1623-20 (d) An authority may designate all or a portion of an economic
1624-21 development area created under this section as an allocation area by
1625-22 following the procedures set forth in IC 36-7-14-39 for the
1626-23 establishment of an allocation area by a redevelopment commission.
1627-24 The allocation provision may modify the definition of "property taxes"
1628-25 under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the
1629-26 depreciable personal property located and taxable on the site of
1630-27 operations of designated taxpayers in accordance with the procedures
1631-28 applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.3
1632-29 applies to such a modification. An allocation area established by an
1633-30 authority under this section is a special taxing district authorized by the
1634-31 general assembly to enable the unit to provide special benefits to
1635-32 taxpayers in the allocation area by promoting economic development
1636-33 that is of public use and benefit. For allocation areas established for an
1637-34 economic development area created under this section after June 30,
1638-35 1997, and to the expanded portion of an allocation area for an
1639-36 economic development area that was established before June 30, 1997,
1640-37 and that is expanded under this section after June 30, 1997, the net
1641-38 assessed value of property that is assessed as residential property under
1642-39 the rules of the department of local government finance, as finally
1643-40 determined for any assessment date, must be allocated. All of the
1644-41 provisions of IC 36-7-14-39 apply to an allocation area created under
1645-42 this section, except that the authority shall be vested with the rights and
1646-HB 1085—LS 6819/DI 116 38
1647-1 duties of a commission as referenced in those sections, except that the
1648-2 expiration date of any allocation provision for the allocation area is the
1649-3 later of July 1, 2016, or the expiration date determined under
1650-4 IC 36-7-14-39(b), and except that, notwithstanding
1651-5 IC 36-7-14-39(b)(3), IC 36-7-14-39(b)(5), property tax proceeds paid
1652-6 into the allocation fund may be used by the authority only to do one (1)
1653-7 or more of the following:
1654-8 (1) Pay the principal of and interest and redemption premium on
1655-9 any obligations incurred by the special taxing district or any other
1656-10 entity for the purpose of financing or refinancing military base
1657-11 reuse activities in or serving or benefiting that allocation area.
1658-12 (2) Establish, augment, or restore the debt service reserve for
1659-13 obligations payable solely or in part from allocated tax proceeds
1660-14 in that allocation area or from other revenues of the authority
1661-15 (including lease rental revenues).
1662-16 (3) Make payments on leases payable solely or in part from
1663-17 allocated tax proceeds in that allocation area.
1664-18 (4) Reimburse any other governmental body for expenditures
1665-19 made by it that benefits or provides for local public improvements
1666-20 or structures in or serving or benefiting that allocation area.
1667-21 (5) Pay expenses incurred by the authority that benefit or provide
1668-22 for local public improvements or structures that are in the
1669-23 allocation area or serving or benefiting the allocation area.
1670-24 (6) Reimburse public and private entities for expenses incurred in
1671-25 training employees of industrial facilities that are located:
1672-26 (A) in the allocation area; and
1673-27 (B) on a parcel of real property that has been classified as
914+1 (i) that part of each county's eligible property tax
915+2 replacement amount (as defined in IC 6-1.1-21-2 (before its
916+3 repeal)) for that year as determined under IC 6-1.1-21-4
917+4 (before its repeal) that is attributable to the taxing district;
918+5 by
919+6 (ii) the STEP ONE sum.
920+7 STEP THREE: Multiply:
921+8 (i) the STEP TWO quotient; times
922+9 (ii) the total amount of the taxpayer's taxes (as defined in
923+10 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
924+11 that have been allocated during that year to an allocation
925+12 fund under this section.
926+13 If not all the taxpayers in an allocation area receive the credit
927+14 in full, each taxpayer in the allocation area is entitled to
928+15 receive the same proportion of the credit. A taxpayer may not
929+16 receive a credit under this section and a credit under section
930+17 39.5 of this chapter (before its repeal) in the same year.
931+18 (J) Pay expenses incurred by the redevelopment commission
932+19 for local public improvements that are in the allocation area or
933+20 serving the allocation area. Public improvements include
934+21 buildings, parking facilities, and other items described in
935+22 section 25.1(a) of this chapter.
936+23 (K) Reimburse public and private entities for expenses
937+24 incurred in training employees of industrial facilities that are
938+25 located:
939+26 (i) in the allocation area; and
940+27 (ii) on a parcel of real property that has been classified as
1674941 28 industrial property under the rules of the department of local
1675942 29 government finance.
1676-30 However, the total amount of money spent for this purpose in any
1677-31 year may not exceed the total amount of money in the allocation
1678-32 fund that is attributable to property taxes paid by the industrial
1679-33 facilities described in clause (B). The reimbursements under this
1680-34 subdivision must be made within three (3) years after the date on
1681-35 which the investments that are the basis for the increment
1682-36 financing are made.
1683-37 (e) In addition to other methods of raising money for property
1684-38 acquisition, redevelopment, or economic development activities in or
1685-39 directly serving or benefiting an economic development area created
1686-40 by an authority under this section, and in anticipation of the taxes
1687-41 allocated under subsection (d), other revenues of the authority, or any
1688-42 combination of these sources, the authority may, by resolution, issue
1689-HB 1085—LS 6819/DI 116 39
1690-1 the bonds of the special taxing district in the name of the unit. Bonds
1691-2 issued under this section may be issued in any amount without
1692-3 limitation. The following apply if such a resolution is adopted:
1693-4 (1) The authority shall certify a copy of the resolution authorizing
1694-5 the bonds to the municipal or county fiscal officer, who shall then
1695-6 prepare the bonds. The seal of the unit must be impressed on the
1696-7 bonds, or a facsimile of the seal must be printed on the bonds.
1697-8 (2) The bonds must be executed by the appropriate officer of the
1698-9 unit and attested by the unit's fiscal officer.
1699-10 (3) The bonds are exempt from taxation for all purposes.
1700-11 (4) Bonds issued under this section may be sold at public sale in
1701-12 accordance with IC 5-1-11 or at a negotiated sale.
1702-13 (5) The bonds are not a corporate obligation of the unit but are an
1703-14 indebtedness of the taxing district. The bonds and interest are
1704-15 payable, as set forth in the bond resolution of the authority:
1705-16 (A) from the tax proceeds allocated under subsection (d);
1706-17 (B) from other revenues available to the authority; or
1707-18 (C) from a combination of the methods stated in clauses (A)
1708-19 and (B).
1709-20 (6) Proceeds from the sale of bonds may be used to pay the cost
1710-21 of interest on the bonds for a period not to exceed five (5) years
1711-22 from the date of issuance.
1712-23 (7) Laws relating to the filing of petitions requesting the issuance
1713-24 of bonds and the right of taxpayers and voters to remonstrate
1714-25 against the issuance of bonds do not apply to bonds issued under
1715-26 this section.
1716-27 (8) If a debt service reserve is created from the proceeds of bonds,
1717-28 the debt service reserve may be used to pay principal and interest
1718-29 on the bonds as provided in the bond resolution.
1719-30 (9) If bonds are issued under this chapter that are payable solely
1720-31 or in part from revenues to the authority from a project or
1721-32 projects, the authority may adopt a resolution or trust indenture or
1722-33 enter into covenants as is customary in the issuance of revenue
1723-34 bonds. The resolution or trust indenture may pledge or assign the
1724-35 revenues from the project or projects. The resolution or trust
1725-36 indenture may also contain any provisions for protecting and
1726-37 enforcing the rights and remedies of the bond owners as may be
1727-38 reasonable and proper and not in violation of law, including
1728-39 covenants setting forth the duties of the authority. The authority
1729-40 may establish fees and charges for the use of any project and
1730-41 covenant with the owners of any bonds to set those fees and
1731-42 charges at a rate sufficient to protect the interest of the owners of
1732-HB 1085—LS 6819/DI 116 40
1733-1 the bonds. Any revenue bonds issued by the authority that are
1734-2 payable solely from revenues of the authority shall contain a
1735-3 statement to that effect in the form of bond.
1736-4 (f) Notwithstanding section 8(a) of this chapter, an ordinance
1737-5 adopted under section 11 of this chapter may provide, or be amended
1738-6 to provide, that the board of directors of the authority shall be
1739-7 composed of not fewer than three (3) nor more than eleven (11)
1740-8 members, who must be residents of or be employed at a place of
1741-9 employment located within the unit. The members shall be appointed
1742-10 by the executive of the unit.
1743-11 (g) The acquisition of real and personal property by an authority
1744-12 under this section is not subject to the provisions of IC 5-22,
1745-13 IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
1746-14 purchase of property by public bodies or their agencies.
1747-15 (h) An authority may negotiate for the sale, lease, or other
1748-16 disposition of real and personal property without complying with the
1749-17 provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
1750-18 statute governing the disposition of public property.
1751-19 (i) Notwithstanding any other law, utility services provided within
1752-20 an economic development area established under this section are
1753-21 subject to regulation by the appropriate regulatory agencies unless the
1754-22 utility service is provided by a utility that provides utility service solely
1755-23 within the geographic boundaries of an existing or a closed military
1756-24 installation, in which case the utility service is not subject to regulation
1757-25 for purposes of rate making, regulation, service delivery, or issuance of
1758-26 bonds or other forms of indebtedness. However, this exemption from
1759-27 regulation does not apply to utility service if the service is generated,
1760-28 treated, or produced outside the boundaries of the existing or closed
1761-29 military installation.
1762-30 SECTION 18. IC 36-7-15.1-36.4 IS ADDED TO THE INDIANA
1763-31 CODE AS A NEW SECTION TO READ AS FOLLOWS
1764-32 [EFFECTIVE JULY 1, 2023]: Sec. 36.4. (a) Not later than December
1765-33 31 of each year, the redevelopment commissioners shall provide the
1766-34 balance of:
1767-35 (1) the special fund described in section 53(b)(3) of this
1768-36 chapter; and
1769-37 (2) any other funds maintained by the redevelopment
1770-38 commission;
1771-39 to the department of local government finance.
1772-40 (b) The department of local government finance shall post fund
1773-41 balances received under subsection (a) on the Indiana
1774-42 transparency website within ninety (90) days of the receipt of the
1775-HB 1085—LS 6819/DI 116 41
1776-1 fund balances.
1777-2 (c) Not later than February of each year, the department of local
1778-3 government finance shall compile the information received from
1779-4 the redevelopment commission under subsection (a) and provide
1780-5 the information to the interim study committee on fiscal policy
1781-6 established by IC 2-5-1.3-4.
1782-7 (d) This section expires July 1, 2028.
1783-8 SECTION 19. IC 36-7-15.1-45, AS AMENDED BY P.L.203-2011,
1784-9 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1785-10 JULY 1, 2023]: Sec. 45. (a) In addition to other methods of raising
1786-11 money for property acquisition or redevelopment in a redevelopment
1787-12 project area, and in anticipation of the special tax to be levied under
1788-13 section 50 of this chapter, the taxes allocated under section 53 of this
1789-14 chapter, or other revenues of the redevelopment district, a commission
1790-15 may, by resolution, issue the bonds of its redevelopment district in the
1791-16 name of the excluded city. The amount of the bonds may not exceed
1792-17 the total, as estimated by the commission, of all expenses reasonably
1793-18 incurred in connection with the acquisition and redevelopment of the
1794-19 property, including:
1795-20 (1) the total cost of all land, rights-of-way, and other property to
1796-21 be acquired and redeveloped;
1797-22 (2) all reasonable and necessary architectural, engineering, legal,
1798-23 financing, accounting, advertising, bond discount, and
1799-24 supervisory expenses related to the acquisition and redevelopment
1800-25 of the property or the issuance of bonds;
1801-26 (3) capitalized interest permitted in this chapter and a debt service
1802-27 reserve for the bonds, to the extent that the redevelopment
1803-28 commission determines that a reserve is reasonably required;
1804-29 (4) the total cost of all clearing and construction work provided
1805-30 for in the resolution; and
1806-31 (5) expenses that the commission is required or permitted to pay
1807-32 under IC 8-23-17.
1808-33 (b) If a commission plans to acquire different parcels of land or let
1809-34 different contracts for redevelopment work at approximately the same
1810-35 time, whether under one (1) or more resolutions, a commission may
1811-36 provide for the total cost in one (1) issue of bonds.
1812-37 (c) The bonds must be dated as set forth in the bond resolution and
1813-38 negotiable subject to the requirements concerning registration of the
1814-39 bonds. The resolution authorizing the bonds must state:
1815-40 (1) the denominations of the bonds;
1816-41 (2) the place or places at which the bonds are payable; and
1817-42 (3) the term of the bonds, which may not exceed:
1818-HB 1085—LS 6819/DI 116 42
1819-1 (A) fifty (50) years, for bonds issued before July 1, 2008; or
1820-2 (B) twenty-five (25) years, for bonds issued after June 30,
1821-3 2008.
1822-4 The resolution may also state that the bonds are redeemable before
1823-5 maturity with or without a premium, as determined by the commission.
1824-6 (d) The commission shall certify a copy of the resolution authorizing
1825-7 the bonds to the fiscal officer of the excluded city, who shall then
1826-8 prepare the bonds. The seal of the unit must be impressed on the bonds,
1827-9 or a facsimile of the seal must be printed on the bonds.
1828-10 (e) The bonds shall be executed by the excluded city executive and
1829-11 attested by the excluded city fiscal officer. The interest coupons, if any,
1830-12 shall be executed by the facsimile signature of the excluded city fiscal
1831-13 officer.
1832-14 (f) The bonds are exempt from taxation as provided by IC 6-8-5.
1833-15 (g) The excluded city fiscal officer shall sell the bonds according to
1834-16 law. Bonds payable solely or in part from tax proceeds allocated under
1835-17 section 53(b)(3) 53(b)(4) of this chapter or other revenues of the
1836-18 district may be sold at private negotiated sale and at a price or prices
1837-19 not less than ninety-seven percent (97%) of the par value.
1838-20 (h) The bonds are not a corporate obligation of the excluded city but
1839-21 are an indebtedness of the redevelopment district. The bonds and
1840-22 interest are payable:
1841-23 (1) from a special tax levied upon all of the property in the
1842-24 redevelopment district, as provided by section 50 of this chapter;
1843-25 (2) from the tax proceeds allocated under section 53(b)(3)
1844-26 53(b)(4) of this chapter;
1845-27 (3) from other revenues available to the commission; or
1846-28 (4) from a combination of the methods described in subdivisions
1847-29 (1) through (3);
1848-30 and from any revenues of the designated project. If the bonds are
1849-31 payable solely from the tax proceeds allocated under section 53(b)(3)
1850-32 53(b)(4) of this chapter, other revenues of the redevelopment
1851-33 commission, or any combination of these sources, they may be issued
1852-34 in any amount without limitation.
1853-35 (i) Proceeds from the sale of the bonds may be used to pay the cost
1854-36 of interest on the bonds for a period not to exceed five (5) years from
1855-37 the date of issue.
1856-38 (j) The laws relating to the filing of petitions requesting the issuance
1857-39 of bonds and the right of taxpayers and voters to remonstrate against,
1858-40 or vote on, the issuance of bonds applicable to bonds issued under this
1859-41 chapter do not apply to bonds payable solely or in part from tax
1860-42 proceeds allocated under section 53(b)(3) 53(b)(4) of this chapter,
1861-HB 1085—LS 6819/DI 116 43
1862-1 other revenues of the commission, or any combination of these sources.
1863-2 (k) If bonds are issued under this chapter that are payable solely or
1864-3 in part from revenues to a commission from a project or projects, a
1865-4 commission may adopt a resolution or trust indenture or enter into
1866-5 covenants as is customary in the issuance of revenue bonds. The
1867-6 resolution or trust indenture may pledge or assign the revenues from
1868-7 the project or projects but may not convey or mortgage any project or
1869-8 parts of a project. The resolution or trust indenture may also contain
1870-9 any provisions for protecting and enforcing the rights and remedies of
1871-10 the bond owners as may be reasonable and proper and not in violation
1872-11 of law, including covenants setting forth the duties of the commission.
1873-12 The commission may establish fees and charges for the use of any
1874-13 project and covenant with the owners of bonds to set those fees and
1875-14 charges at a rate sufficient to protect the interest of the owners of the
1876-15 bonds. Any revenue bonds issued by the commission that are payable
1877-16 solely from revenues of the commission must contain a statement to
1878-17 that effect in the form of bond.
1879-18 SECTION 20. IC 36-7-15.1-50, AS AMENDED BY P.L.203-2011,
1880-19 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1881-20 JULY 1, 2023]: Sec. 50. (a) This section applies only to:
1882-21 (1) bonds that are issued under section 45 of this chapter; or
1883-22 (2) leases entered into under section 46 of this chapter;
1884-23 that are payable from a special tax levied upon all of the property in the
1885-24 redevelopment district. This section does not apply to bonds or leases
1886-25 that are payable solely from tax proceeds allocated under section
1887-26 53(b)(3) 53(b)(4) of this chapter, other revenues of the commission, or
1888-27 any combination of these sources.
1889-28 (b) The excluded city legislative body shall levy each year a tax on
1890-29 all of the property of the redevelopment district in such a manner as to
1891-30 meet and pay:
1892-31 (1) the principal of the bonds as they mature, together with all
1893-32 accruing interest on the bonds; or
1894-33 (2) lease rental payments under section 46 of this chapter.
1895-34 The tax levied shall be certified to the fiscal officers of the excluded
1896-35 city and the county before October 2 in each year. The tax shall be
1897-36 estimated and entered on the tax duplicate by the county auditor and
1898-37 shall be collected and enforced by the county treasurer in the same
1899-38 manner as other state and county taxes are estimated, entered,
1900-39 collected, and enforced.
1901-40 (c) As the tax is collected, it shall be accumulated in a separate fund
1902-41 to be known as the redevelopment district bond fund and shall be
1903-42 applied to the payment of the bonds as they mature and the interest on
1904-HB 1085—LS 6819/DI 116 44
1905-1 the bonds as it accrues, or to make lease payments, and to no other
1906-2 purpose. All accumulations of the fund before use for the payment of
1907-3 bonds and interest or to make lease payments shall be deposited with
1908-4 the depository or depositories for other public funds of the city in
1909-5 accordance with the statutes concerning the deposit of public funds,
1910-6 unless they are invested under IC 5-13.
1911-7 (d) The tax levies provided for in this section are reviewable by
1912-8 other bodies vested by law with the authority to ascertain that the levies
1913-9 are sufficient to raise the amount that, with other amounts available, is
1914-10 sufficient to meet the payments under the lease payable from the levy
1915-11 of taxes.
1916-12 SECTION 21. IC 36-7-15.1-53, AS AMENDED BY P.L.174-2022,
1917-13 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1918-14 JULY 1, 2023]: Sec. 53. (a) As used in this section:
1919-15 "Allocation area" means that part of a redevelopment project area
1920-16 to which an allocation provision of a resolution adopted under section
1921-17 40 of this chapter refers for purposes of distribution and allocation of
1922-18 property taxes.
1923-19 "Base assessed value" means, subject to subsection (j):
1924-20 (1) the net assessed value of all the property as finally determined
1925-21 for the assessment date immediately preceding the effective date
1926-22 of the allocation provision of the declaratory resolution, as
1927-23 adjusted under subsection (h); plus
1928-24 (2) to the extent that it is not included in subdivision (1), the net
1929-25 assessed value of property that is assessed as residential property
1930-26 under the rules of the department of local government finance, as
1931-27 finally determined for the current assessment date.
1932-28 Except as provided in section 55 of this chapter, "property taxes"
1933-29 means taxes imposed under IC 6-1.1 on real property.
1934-30 (b) A resolution adopted under section 40 of this chapter on or
1935-31 before the allocation deadline determined under subsection (i) may
1936-32 include a provision with respect to the allocation and distribution of
1937-33 property taxes for the purposes and in the manner provided in this
1938-34 section. A resolution previously adopted may include an allocation
1939-35 provision by the amendment of that resolution on or before the
1940-36 allocation deadline determined under subsection (i) in accordance with
1941-37 the procedures required for its original adoption. A declaratory
1942-38 resolution or an amendment that establishes an allocation provision
1943-39 must be approved by resolution of the legislative body of the excluded
1944-40 city and must specify an expiration date for the allocation provision.
1945-41 For an allocation area established before July 1, 2008, the expiration
1946-42 date may not be more than thirty (30) years after the date on which the
1947-HB 1085—LS 6819/DI 116 45
1948-1 allocation provision is established. For an allocation area established
1949-2 after June 30, 2008, the expiration date may not be more than
1950-3 twenty-five (25) years after the date on which the first obligation was
1951-4 incurred to pay principal and interest on bonds or lease rentals on
1952-5 leases payable from tax increment revenues. However, with respect to
1953-6 bonds or other obligations that were issued before July 1, 2008, if any
1954-7 of the bonds or other obligations that were scheduled when issued to
1955-8 mature before the specified expiration date and that are payable only
1956-9 from allocated tax proceeds with respect to the allocation area remain
1957-10 outstanding as of the expiration date, the allocation provision does not
1958-11 expire until all of the bonds or other obligations are no longer
1959-12 outstanding. The allocation provision may apply to all or part of the
1960-13 redevelopment project area. The allocation provision must require that
1961-14 any property taxes subsequently levied by or for the benefit of any
1962-15 public body entitled to a distribution of property taxes on taxable
1963-16 property in the allocation area be allocated and distributed as follows:
1964-17 (1) Except as otherwise provided in this section, the proceeds of
1965-18 the taxes attributable to the lesser of:
1966-19 (A) the assessed value of the property for the assessment date
1967-20 with respect to which the allocation and distribution is made;
1968-21 or
1969-22 (B) the base assessed value;
1970-23 shall be allocated to and, when collected, paid into the funds of
1971-24 the respective taxing units.
1972-25 (2) This subdivision applies to an allocation area established
1973-26 in accordance with section 8 of this chapter after June 30,
1974-27 2023. The amount determined under this subdivision shall be
1975-28 distributed for police or fire services according to the
1976-29 following calculation:
1977-30 STEP ONE: Determine the amount, if any, of the assessed
1978-31 value of the taxable property in the allocation area for the
1979-32 most recent assessment date minus the base assessed value.
1980-33 STEP TWO: Multiply the amount determined under STEP
1981-34 ONE by the county unit's total nonreferendum tax rate per
1982-35 one hundred dollars ($100) of assessed value.
1983-36 STEP THREE: Multiply the STEP TWO product by five
1984-37 percent (5%).
1985-38 The amount determined under STEP THREE of this
1986-39 subdivision shall be allocated to and, when collected, paid to
1987-40 the county taxing unit that provides police or fire services in
1988-41 the allocation area to be used for operating or capital
1989-42 expenditures required for providing police and fire services
1990-HB 1085—LS 6819/DI 116 46
1991-1 in the allocation area.
1992-2 (2) (3) The excess of the proceeds of the property taxes imposed
1993-3 for the assessment date with respect to which the allocation and
1994-4 distribution is made that are attributable to taxes imposed after
1995-5 being approved by the voters in a referendum or local public
1996-6 question conducted after April 30, 2010, not otherwise included
1997-7 in subdivision (1) subdivisions (1) and (2) shall be allocated to
1998-8 and, when collected, paid into the funds of the taxing unit for
1999-9 which the referendum or local public question was conducted.
2000-10 (3) (4) Except as otherwise provided in this section, property tax
2001-11 proceeds in excess of those described in subdivisions (1), (2), and
2002-12 (2) (3) shall be allocated to the redevelopment district and, when
2003-13 collected, paid into a special fund for that allocation area that may
2004-14 be used by the redevelopment district only to do one (1) or more
2005-15 of the following:
2006-16 (A) Pay the principal of and interest on any obligations
2007-17 payable solely from allocated tax proceeds that are incurred by
2008-18 the redevelopment district for the purpose of financing or
2009-19 refinancing the redevelopment of that allocation area.
2010-20 (B) Establish, augment, or restore the debt service reserve for
2011-21 bonds payable solely or in part from allocated tax proceeds in
2012-22 that allocation area.
2013-23 (C) Pay the principal of and interest on bonds payable from
2014-24 allocated tax proceeds in that allocation area and from the
2015-25 special tax levied under section 50 of this chapter.
2016-26 (D) Pay the principal of and interest on bonds issued by the
2017-27 excluded city to pay for local public improvements that are
2018-28 physically located in or physically connected to that allocation
2019-29 area.
2020-30 (E) Pay premiums on the redemption before maturity of bonds
2021-31 payable solely or in part from allocated tax proceeds in that
2022-32 allocation area.
2023-33 (F) Make payments on leases payable from allocated tax
2024-34 proceeds in that allocation area under section 46 of this
2025-35 chapter.
2026-36 (G) Reimburse the excluded city for expenditures for local
2027-37 public improvements (which include buildings, park facilities,
2028-38 and other items set forth in section 45 of this chapter) that are
2029-39 physically located in or physically connected to that allocation
2030-40 area.
2031-41 (H) Reimburse the unit for rentals paid by it for a building or
2032-42 parking facility that is physically located in or physically
2033-HB 1085—LS 6819/DI 116 47
2034-1 connected to that allocation area under any lease entered into
2035-2 under IC 36-1-10.
2036-3 (I) Reimburse public and private entities for expenses incurred
2037-4 in training employees of industrial facilities that are located:
2038-5 (i) in the allocation area; and
2039-6 (ii) on a parcel of real property that has been classified as
2040-7 industrial property under the rules of the department of local
2041-8 government finance.
2042-9 However, the total amount of money spent for this purpose in
2043-10 any year may not exceed the total amount of money in the
2044-11 allocation fund that is attributable to property taxes paid by the
2045-12 industrial facilities described in this clause. The
2046-13 reimbursements under this clause must be made within three
2047-14 (3) years after the date on which the investments that are the
2048-15 basis for the increment financing are made.
2049-16 The special fund may not be used for operating expenses of the
2050-17 commission.
2051-18 (4) (5) Before June 15 of each year, the commission shall do the
2052-19 following:
2053-20 (A) Determine the amount, if any, by which the assessed value
2054-21 of the taxable property in the allocation area for the most
2055-22 recent assessment date minus the base assessed value, when
2056-23 multiplied by the estimated tax rate of the allocation area, will
2057-24 exceed the amount of assessed value needed to provide the
2058-25 property taxes necessary to make, when due, principal and
2059-26 interest payments on bonds described in subdivision (3) (4)
2060-27 plus the amount necessary for other purposes described in
2061-28 subdivision (3) (4) and subsection (g).
2062-29 (B) Provide a written notice to the county auditor, the fiscal
2063-30 body of the county or municipality that established the
2064-31 department of redevelopment, the officers who are authorized
2065-32 to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
2066-33 each of the other taxing units that is wholly or partly located
2067-34 within the allocation area, and (in an electronic format) the
2068-35 department of local government finance. The notice must:
2069-36 (i) state the amount, if any, of excess assessed value that the
2070-37 commission has determined may be allocated to the
2071-38 respective taxing units in the manner prescribed in
2072-39 subdivision (1); or
2073-40 (ii) state that the commission has determined that there is no
2074-41 excess assessed value that may be allocated to the respective
2075-42 taxing units in the manner prescribed in subdivision (1).
2076-HB 1085—LS 6819/DI 116 48
2077-1 The county auditor shall allocate to the respective taxing units
2078-2 the amount, if any, of excess assessed value determined by the
2079-3 commission. The commission may not authorize an allocation
2080-4 to the respective taxing units under this subdivision if to do so
2081-5 would endanger the interests of the holders of bonds described
2082-6 in subdivision (3). (4).
2083-7 (c) For the purpose of allocating taxes levied by or for any taxing
2084-8 unit or units, the assessed value of taxable property in a territory in the
2085-9 allocation area that is annexed by any taxing unit after the effective
2086-10 date of the allocation provision of the resolution is the lesser of:
2087-11 (1) the assessed value of the property for the assessment date with
2088-12 respect to which the allocation and distribution is made; or
2089-13 (2) the base assessed value.
2090-14 (d) Property tax proceeds allocable to the redevelopment district
2091-15 under subsection (b)(3) (b)(4) may, subject to subsection (b)(4), (b)(5),
2092-16 be irrevocably pledged by the redevelopment district for payment as set
2093-17 forth in subsection (b)(3). (b)(4).
2094-18 (e) Notwithstanding any other law, each assessor shall, upon
2095-19 petition of the commission, reassess the taxable property situated upon
2096-20 or in, or added to, the allocation area, effective on the next assessment
2097-21 date after the petition.
2098-22 (f) Notwithstanding any other law, the assessed value of all taxable
2099-23 property in the allocation area, for purposes of tax limitation, property
2100-24 tax replacement, and formulation of the budget, tax rate, and tax levy
2101-25 for each political subdivision in which the property is located, is the
2102-26 lesser of:
2103-27 (1) the assessed value of the property as valued without regard to
2104-28 this section; or
2105-29 (2) the base assessed value.
2106-30 (g) If any part of the allocation area is located in an enterprise zone
2107-31 created under IC 5-28-15, the unit that designated the allocation area
2108-32 shall create funds as specified in this subsection. A unit that has
2109-33 obligations, bonds, or leases payable from allocated tax proceeds under
2110-34 subsection (b)(3) (b)(4) shall establish an allocation fund for the
2111-35 purposes specified in subsection (b)(3) (b)(4) and a special zone fund.
2112-36 Such a unit shall, until the end of the enterprise zone phase out period,
2113-37 deposit each year in the special zone fund the amount in the allocation
2114-38 fund derived from property tax proceeds in excess of those described
2115-39 in subsection (b)(1), and (b)(2), and (b)(3) from property located in the
2116-40 enterprise zone that exceeds the amount sufficient for the purposes
2117-41 specified in subsection (b)(3) (b)(4) for the year. A unit that has no
2118-42 obligations, bonds, or leases payable from allocated tax proceeds under
2119-HB 1085—LS 6819/DI 116 49
2120-1 subsection (b)(3) (b)(4) shall establish a special zone fund and deposit
2121-2 all the property tax proceeds in excess of those described in subsection
2122-3 (b)(1), and (b)(2), and (b)(3) in the fund derived from property tax
2123-4 proceeds in excess of those described in subsection (b)(1), and (b)(2),
2124-5 and (b)(3) from property located in the enterprise zone. The unit that
2125-6 creates the special zone fund shall use the fund, based on the
2126-7 recommendations of the urban enterprise association, for one (1) or
2127-8 more of the following purposes:
2128-9 (1) To pay for programs in job training, job enrichment, and basic
2129-10 skill development designed to benefit residents and employers in
2130-11 the enterprise zone. The programs must reserve at least one-half
2131-12 (1/2) of the enrollment in any session for residents of the
2132-13 enterprise zone.
2133-14 (2) To make loans and grants for the purpose of stimulating
2134-15 business activity in the enterprise zone or providing employment
2135-16 for enterprise zone residents in an enterprise zone. These loans
2136-17 and grants may be made to the following:
2137-18 (A) Businesses operating in the enterprise zone.
2138-19 (B) Businesses that will move their operations to the enterprise
2139-20 zone if such a loan or grant is made.
2140-21 (3) To provide funds to carry out other purposes specified in
2141-22 subsection (b)(3). (b)(4). However, where reference is made in
2142-23 subsection (b)(3) (b)(4) to the allocation area, the reference refers,
2143-24 for purposes of payments from the special zone fund, only to that
2144-25 part of the allocation area that is also located in the enterprise
2145-26 zone.
2146-27 (h) The state board of accounts and department of local government
2147-28 finance shall make the rules and prescribe the forms and procedures
2148-29 that they consider expedient for the implementation of this chapter.
2149-30 After each reassessment of real property in an area under a county's
2150-31 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
2151-32 local government finance shall adjust the base assessed value one (1)
2152-33 time to neutralize any effect of the reassessment of the real property in
2153-34 the area on the property tax proceeds allocated to the redevelopment
2154-35 district under this section. After each annual adjustment under
2155-36 IC 6-1.1-4-4.5, the department of local government finance shall adjust
2156-37 the base assessed value to neutralize any effect of the annual
2157-38 adjustment on the property tax proceeds allocated to the redevelopment
2158-39 district under this section. However, the adjustments under this
2159-40 subsection may not include the effect of property tax abatements under
2160-41 IC 6-1.1-12.1, and these adjustments may not produce less property tax
2161-42 proceeds allocable to the redevelopment district under subsection
2162-HB 1085—LS 6819/DI 116 50
2163-1 (b)(3) (b)(4) than would otherwise have been received if the
2164-2 reassessment under the county's reassessment plan or annual
2165-3 adjustment had not occurred. The department of local government
943+30 However, the total amount of money spent for this purpose in
944+31 any year may not exceed the total amount of money in the
945+32 allocation fund that is attributable to property taxes paid by the
946+33 industrial facilities described in this clause. The
947+34 reimbursements under this clause must be made within three
948+35 (3) years after the date on which the investments that are the
949+36 basis for the increment financing are made.
950+37 (L) Pay the costs of carrying out an eligible efficiency project
951+38 (as defined in IC 36-9-41-1.5) within the unit that established
952+39 the redevelopment commission. However, property tax
953+40 proceeds may be used under this clause to pay the costs of
954+41 carrying out an eligible efficiency project only if those
955+42 property tax proceeds exceed the amount necessary to do the
956+HB 1085—LS 6819/DI 116 22
957+1 following:
958+2 (i) Make, when due, any payments required under clauses
959+3 (A) through (K), including any payments of principal and
960+4 interest on bonds and other obligations payable under this
961+5 subdivision, any payments of premiums under this
962+6 subdivision on the redemption before maturity of bonds, and
963+7 any payments on leases payable under this subdivision.
964+8 (ii) Make any reimbursements required under this
965+9 subdivision.
966+10 (iii) Pay any expenses required under this subdivision.
967+11 (iv) Establish, augment, or restore any debt service reserve
968+12 under this subdivision.
969+13 (M) Expend money and provide financial assistance as
970+14 authorized in section 12.2(a)(27) of this chapter.
971+15 The allocation fund may not be used for operating expenses of the
972+16 commission.
973+17 (4) (6) Except as provided in subsection (g), before June 15 of
974+18 each year, the commission shall do the following:
975+19 (A) Determine the amount, if any, by which the assessed value
976+20 of the taxable property in the allocation area for the most
977+21 recent assessment date minus the base assessed value, when
978+22 multiplied by the estimated tax rate of the allocation area, will
979+23 exceed the amount of assessed value needed to produce the
980+24 property taxes necessary to make, when due, principal and
981+25 interest payments on bonds described in subdivision (3), (5),
982+26 plus the amount necessary for other purposes described in
983+27 subdivision (3). (5).
984+28 (B) Provide a written notice to the county auditor, the fiscal
985+29 body of the county or municipality that established the
986+30 department of redevelopment, and the officers who are
987+31 authorized to fix budgets, tax rates, and tax levies under
988+32 IC 6-1.1-17-5 for each of the other taxing units that is wholly
989+33 or partly located within the allocation area. The county auditor,
990+34 upon receiving the notice, shall forward this notice (in an
991+35 electronic format) to the department of local government
992+36 finance not later than June 15 of each year. The notice must:
993+37 (i) state the amount, if any, of excess assessed value that the
994+38 commission has determined may be allocated to the
995+39 respective taxing units in the manner prescribed in
996+40 subdivision (1); or
997+41 (ii) state that the commission has determined that there is no
998+42 excess assessed value that may be allocated to the respective
999+HB 1085—LS 6819/DI 116 23
1000+1 taxing units in the manner prescribed in subdivision (1).
1001+2 The county auditor shall allocate to the respective taxing units
1002+3 the amount, if any, of excess assessed value determined by the
1003+4 commission. The commission may not authorize an allocation
1004+5 of assessed value to the respective taxing units under this
1005+6 subdivision if to do so would endanger the interests of the
1006+7 holders of bonds described in subdivision (3) (5) or lessors
1007+8 under section 25.3 of this chapter.
1008+9 (C) If:
1009+10 (i) the amount of excess assessed value determined by the
1010+11 commission is expected to generate more than two hundred
1011+12 percent (200%) of the amount of allocated tax proceeds
1012+13 necessary to make, when due, principal and interest
1013+14 payments on bonds described in subdivision (3); (5); plus
1014+15 (ii) the amount necessary for other purposes described in
1015+16 subdivision (3); (5);
1016+17 the commission shall submit to the legislative body of the unit
1017+18 its determination of the excess assessed value that the
1018+19 commission proposes to allocate to the respective taxing units
1019+20 use for non-debt, one (1) time purposes within the calendar
1020+21 year before allocating the balance of the excess assessed
1021+22 value to the respective taxing units in the manner
1022+23 prescribed in subdivision (1). in the manner prescribed in
1023+24 subdivision (1). The legislative body of the unit may approve
1024+25 the commission's determination or modify the amount of the
1025+26 excess assessed value that will be allocated to the respective
1026+27 taxing units in the manner prescribed in subdivision (1).
1027+28 (5) (7) Notwithstanding subdivision (4), (6), in the case of an
1028+29 allocation area that is established after June 30, 2019, and that is
1029+30 located in a redevelopment project area described in section
1030+31 25.1(c)(3)(C) of this chapter, an economic development area
1031+32 described in section 25.1(c)(3)(C) of this chapter, or an urban
1032+33 renewal project area described in section 25.1(c)(3)(C) of this
1033+34 chapter, for each year the allocation provision is in effect, if the
1034+35 amount of excess assessed value determined by the commission
1035+36 under subdivision (4)(A) (6)(A) is expected to generate more than
1036+37 two hundred percent (200%) of:
1037+38 (A) the amount of allocated tax proceeds necessary to make,
1038+39 when due, principal and interest payments on bonds described
1039+40 in subdivision (3) (5) for the project; plus
1040+41 (B) the amount necessary for other purposes described in
1041+42 subdivision (3) (5) for the project;
1042+HB 1085—LS 6819/DI 116 24
1043+1 the amount of the excess assessed value that generates more than
1044+2 two hundred percent (200%) of the amounts described in clauses
1045+3 (A) and (B) shall be allocated to the respective taxing units in the
1046+4 manner prescribed by subdivision (1).
1047+5 (c) For the purpose of allocating taxes levied by or for any taxing
1048+6 unit or units, the assessed value of taxable property in a territory in the
1049+7 allocation area that is annexed by any taxing unit after the effective
1050+8 date of the allocation provision of the declaratory resolution is the
1051+9 lesser of:
1052+10 (1) the assessed value of the property for the assessment date with
1053+11 respect to which the allocation and distribution is made; or
1054+12 (2) the base assessed value.
1055+13 (d) Property tax proceeds allocable to the redevelopment district
1056+14 under subsection (b)(3) (b)(5) may, subject to subsection (b)(4), (b)(6),
1057+15 be irrevocably pledged by the redevelopment district for payment as set
1058+16 forth in subsection (b)(3). (b)(5).
1059+17 (e) Notwithstanding any other law, each assessor shall, upon
1060+18 petition of the redevelopment commission, reassess the taxable
1061+19 property situated upon or in, or added to, the allocation area, effective
1062+20 on the next assessment date after the petition.
1063+21 (f) Notwithstanding any other law, the assessed value of all taxable
1064+22 property in the allocation area, for purposes of tax limitation, property
1065+23 tax replacement, and formulation of the budget, tax rate, and tax levy
1066+24 for each political subdivision in which the property is located is the
1067+25 lesser of:
1068+26 (1) the assessed value of the property as valued without regard to
1069+27 this section; or
1070+28 (2) the base assessed value.
1071+29 (g) If any part of the allocation area is located in an enterprise zone
1072+30 created under IC 5-28-15, the unit that designated the allocation area
1073+31 shall create funds as specified in this subsection. A unit that has
1074+32 obligations, bonds, or leases payable from allocated tax proceeds under
1075+33 subsection (b)(3) (b)(5) shall establish an allocation fund for the
1076+34 purposes specified in subsection (b)(3) (b)(5) and a special zone fund.
1077+35 Such a unit shall, until the end of the enterprise zone phase out period,
1078+36 deposit each year in the special zone fund any amount in the allocation
1079+37 fund derived from property tax proceeds in excess of those described
1080+38 in subsection (b)(1), and (b)(2), (b)(3), and (b)(4) from property
1081+39 located in the enterprise zone that exceeds the amount sufficient for the
1082+40 purposes specified in subsection (b)(3) (b)(5) for the year. The amount
1083+41 sufficient for purposes specified in subsection (b)(3) (b)(5) for the year
1084+42 shall be determined based on the pro rata portion of such current
1085+HB 1085—LS 6819/DI 116 25
1086+1 property tax proceeds from the part of the enterprise zone that is within
1087+2 the allocation area as compared to all such current property tax
1088+3 proceeds derived from the allocation area. A unit that has no
1089+4 obligations, bonds, or leases payable from allocated tax proceeds under
1090+5 subsection (b)(3) (b)(5) shall establish a special zone fund and deposit
1091+6 all the property tax proceeds in excess of those described in subsection
1092+7 (b)(1), and (b)(2), (b)(3), and (b)(4) in the fund derived from property
1093+8 tax proceeds in excess of those described in subsection (b)(1), and
1094+9 (b)(2), (b)(3), and (b)(4) from property located in the enterprise zone.
1095+10 The unit that creates the special zone fund shall use the fund (based on
1096+11 the recommendations of the urban enterprise association) for programs
1097+12 in job training, job enrichment, and basic skill development that are
1098+13 designed to benefit residents and employers in the enterprise zone or
1099+14 other purposes specified in subsection (b)(3), (b)(5), except that where
1100+15 reference is made in subsection (b)(3) (b)(5) to allocation area it shall
1101+16 refer for purposes of payments from the special zone fund only to that
1102+17 part of the allocation area that is also located in the enterprise zone.
1103+18 Those programs shall reserve at least one-half (1/2) of their enrollment
1104+19 in any session for residents of the enterprise zone.
1105+20 (h) The state board of accounts and department of local government
1106+21 finance shall make the rules and prescribe the forms and procedures
1107+22 that they consider expedient for the implementation of this chapter.
1108+23 After each reassessment in an area under a reassessment plan prepared
1109+24 under IC 6-1.1-4-4.2, the department of local government finance shall
1110+25 adjust the base assessed value one (1) time to neutralize any effect of
1111+26 the reassessment of the real property in the area on the property tax
1112+27 proceeds allocated to the redevelopment district under this section.
1113+28 After each annual adjustment under IC 6-1.1-4-4.5, the department of
1114+29 local government finance shall adjust the base assessed value one (1)
1115+30 time to neutralize any effect of the annual adjustment on the property
1116+31 tax proceeds allocated to the redevelopment district under this section.
1117+32 However, the adjustments under this subsection:
1118+33 (1) may not include the effect of phasing in assessed value due to
1119+34 property tax abatements under IC 6-1.1-12.1;
1120+35 (2) may not produce less property tax proceeds allocable to the
1121+36 redevelopment district under subsection (b)(3) (b)(5) than would
1122+37 otherwise have been received if the reassessment under the
1123+38 reassessment plan or the annual adjustment had not occurred; and
1124+39 (3) may decrease base assessed value only to the extent that
1125+40 assessed values in the allocation area have been decreased due to
1126+41 annual adjustments or the reassessment under the reassessment
1127+42 plan.
1128+HB 1085—LS 6819/DI 116 26
1129+1 Assessed value increases attributable to the application of an abatement
1130+2 schedule under IC 6-1.1-12.1 may not be included in the base assessed
1131+3 value of an allocation area. The department of local government
21661132 4 finance may prescribe procedures for county and township officials to
21671133 5 follow to assist the department in making the adjustments.
21681134 6 (i) The allocation deadline referred to in subsection (b) is
21691135 7 determined in the following manner:
21701136 8 (1) The initial allocation deadline is December 31, 2011.
21711137 9 (2) Subject to subdivision (3), the initial allocation deadline and
21721138 10 subsequent allocation deadlines are automatically extended in
21731139 11 increments of five (5) years, so that allocation deadlines
21741140 12 subsequent to the initial allocation deadline fall on December 31,
21751141 13 2016, and December 31 of each fifth year thereafter.
21761142 14 (3) At least one (1) year before the date of an allocation deadline
21771143 15 determined under subdivision (2), the general assembly may enact
21781144 16 a law that:
21791145 17 (A) terminates the automatic extension of allocation deadlines
21801146 18 under subdivision (2); and
21811147 19 (B) specifically designates a particular date as the final
21821148 20 allocation deadline.
2183-21 (j) If the commission adopts a declaratory resolution or an
2184-22 amendment to a declaratory resolution that contains an allocation
2185-23 provision and the commission makes either of the filings required
2186-24 under section 10(e) of this chapter after the first anniversary of the
2187-25 effective date of the allocation provision, the auditor of the county in
2188-26 which the unit is located shall compute the base assessed value for the
2189-27 allocation area using the assessment date immediately preceding the
2190-28 later of:
1149+21 (j) If a redevelopment commission adopts a declaratory resolution
1150+22 or an amendment to a declaratory resolution that contains an allocation
1151+23 provision and the redevelopment commission makes either of the
1152+24 filings required under section 17(e) of this chapter after the first
1153+25 anniversary of the effective date of the allocation provision, the auditor
1154+26 of the county in which the unit is located shall compute the base
1155+27 assessed value for the allocation area using the assessment date
1156+28 immediately preceding the later of:
21911157 29 (1) the date on which the documents are filed with the county
21921158 30 auditor; or
21931159 31 (2) the date on which the documents are filed with the department
21941160 32 of local government finance.
21951161 33 (k) For an allocation area established after June 30, 2024,
21961162 34 "residential property" refers to the assessed value of property that is
21971163 35 allocated to the one percent (1%) homestead land and improvement
21981164 36 categories in the county tax and billing software system, along with the
21991165 37 residential assessed value as defined for purposes of calculating the
22001166 38 rate for the local income tax property tax relief credit designated for
22011167 39 residential property under IC 6-3.6-5-6(d)(3).
22021168 40 (l) This subsection applies to an allocation area established in
2203-41 accordance with section 8 of this chapter before July 1, 2023. The
1169+41 accordance with section 15 of this chapter before July 1, 2023. The
22041170 42 redevelopment commission is strongly encouraged to make
1171+HB 1085—LS 6819/DI 116 27
1172+1 allocations to a school corporation in the manner described in
1173+2 subsection (b)(2).
1174+3 (m) A redevelopment commission may not adopt an amendment
1175+4 to a declaratory resolution that contains an allocation area
1176+5 provision that extends the expiration date of the allocation area
1177+6 provision, as provided in subsection (b). However, after the
1178+7 expiration of a previous allocation area provision, a redevelopment
1179+8 commission may adopt a declaratory resolution, or an amendment
1180+9 to a declaratory resolution, that contains a new allocation area
1181+10 provision with a new expiration date, and for which the county
1182+11 auditor in which the unit is located shall compute the base assessed
1183+12 value for the allocation area using the assessment date immediately
1184+13 preceding the effective date of the new allocation provision of the
1185+14 declaratory resolution or amendment.
1186+15 (n) A redevelopment commission may, pursuant to the approval
1187+16 of the local legislative body, create an account for a specific
1188+17 infrastructure purpose.
1189+18 (o) For a bond issuance related exclusively for infrastructure in
1190+19 an allocation area, new bonds may only be issued by an existing
1191+20 redevelopment commission between July 1, 2023, and January 1,
1192+21 2025.
1193+22 SECTION 13. IC 36-7-14-48, AS AMENDED BY P.L.38-2021,
1194+23 SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1195+24 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 48. (a) Notwithstanding
1196+25 section 39(a) of this chapter, with respect to the allocation and
1197+26 distribution of property taxes for the accomplishment of a program
1198+27 adopted under section 45 of this chapter, "base assessed value" means,
1199+28 subject to section 39(j) of this chapter, the net assessed value of all of
1200+29 the property, other than personal property, as finally determined for the
1201+30 assessment date immediately preceding the effective date of the
1202+31 allocation provision, as adjusted under section 39(h) of this chapter.
1203+32 (b) The allocation fund established under section 39(b) of this
1204+33 chapter for the allocation area for a program adopted under section 45
1205+34 of this chapter may be used only for purposes related to the
1206+35 accomplishment of the program, including the following:
1207+36 (1) The construction, rehabilitation, or repair of residential units
1208+37 within the allocation area.
1209+38 (2) The construction, reconstruction, or repair of any
1210+39 infrastructure (including streets, sidewalks, and sewers) within or
1211+40 serving the allocation area.
1212+41 (3) The acquisition of real property and interests in real property
1213+42 within the allocation area.
1214+HB 1085—LS 6819/DI 116 28
1215+1 (4) The demolition of real property within the allocation area.
1216+2 (5) The provision of financial assistance to enable individuals and
1217+3 families to purchase or lease residential units within the allocation
1218+4 area. However, financial assistance may be provided only to those
1219+5 individuals and families whose income is at or below the county's
1220+6 median income for individuals and families, respectively.
1221+7 (6) The provision of financial assistance to neighborhood
1222+8 development corporations to permit them to provide financial
1223+9 assistance for the purposes described in subdivision (5).
1224+10 (7) For property taxes first due and payable before January 1,
1225+11 2009, providing each taxpayer in the allocation area a credit for
1226+12 property tax replacement as determined under subsections (c) and
1227+13 (d). However, the commission may provide this credit only if the
1228+14 municipal legislative body (in the case of a redevelopment
1229+15 commission established by a municipality) or the county
1230+16 executive (in the case of a redevelopment commission established
1231+17 by a county) establishes the credit by ordinance adopted in the
1232+18 year before the year in which the credit is provided.
1233+19 (c) The maximum credit that may be provided under subsection
1234+20 (b)(7) to a taxpayer in a taxing district that contains all or part of an
1235+21 allocation area established for a program adopted under section 45 of
1236+22 this chapter shall be determined as follows:
1237+23 STEP ONE: Determine that part of the sum of the amounts
1238+24 described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
1239+25 through IC 6-1.1-21-2(g)(5) (before their repeal) that is
1240+26 attributable to the taxing district.
1241+27 STEP TWO: Divide:
1242+28 (A) that part of each county's eligible property tax replacement
1243+29 amount (as defined in IC 6-1.1-21-2) (before its repeal) for
1244+30 that year as determined under IC 6-1.1-21-4(a)(1) (before its
1245+31 repeal) that is attributable to the taxing district; by
1246+32 (B) the amount determined under STEP ONE.
1247+33 STEP THREE: Multiply:
1248+34 (A) the STEP TWO quotient; by
1249+35 (B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before
1250+36 its repeal) levied in the taxing district allocated to the
1251+37 allocation fund, including the amount that would have been
1252+38 allocated but for the credit.
1253+39 (d) The commission may determine to grant to taxpayers in an
1254+40 allocation area from its allocation fund a credit under this section, as
1255+41 calculated under subsection (c). Except as provided in subsection (g),
1256+42 one-half (1/2) of the credit shall be applied to each installment of taxes
1257+HB 1085—LS 6819/DI 116 29
1258+1 (as defined in IC 6-1.1-21-2) (before its repeal) that under
1259+2 IC 6-1.1-22-9 are due and payable in a year. The commission must
1260+3 provide for the credit annually by a resolution and must find in the
1261+4 resolution the following:
1262+5 (1) That the money to be collected and deposited in the allocation
1263+6 fund, based upon historical collection rates, after granting the
1264+7 credit will equal the amounts payable for contractual obligations
1265+8 from the fund, plus ten percent (10%) of those amounts.
1266+9 (2) If bonds payable from the fund are outstanding, that there is
1267+10 a debt service reserve for the bonds that at least equals the amount
1268+11 of the credit to be granted.
1269+12 (3) If bonds of a lessor under section 25.2 of this chapter or under
1270+13 IC 36-1-10 are outstanding and if lease rentals are payable from
1271+14 the fund, that there is a debt service reserve for those bonds that
1272+15 at least equals the amount of the credit to be granted.
1273+16 If the tax increment is insufficient to grant the credit in full, the
1274+17 commission may grant the credit in part, prorated among all taxpayers.
1275+18 (e) Notwithstanding section 39(b) of this chapter, the allocation
1276+19 fund established under section 39(b) of this chapter for the allocation
1277+20 area for a program adopted under section 45 of this chapter may only
1278+21 be used to do one (1) or more of the following:
1279+22 (1) Accomplish one (1) or more of the actions set forth in section
1280+23 39(b)(3)(A) 39(b)(5)(A) through 39(b)(3)(H) 39(b)(5)(H) and
1281+24 39(b)(3)(J) 39(b)(5)(J) of this chapter for property that is
1282+25 residential in nature.
1283+26 (2) Reimburse the county or municipality for expenditures made
1284+27 by the county or municipality in order to accomplish the housing
1285+28 program in that allocation area.
1286+29 The allocation fund may not be used for operating expenses of the
1287+30 commission.
1288+31 (f) Notwithstanding section 39(b) of this chapter, the commission
1289+32 shall, relative to the allocation fund established under section 39(b) of
1290+33 this chapter for an allocation area for a program adopted under section
1291+34 45 of this chapter, do the following before June 15 of each year:
1292+35 (1) Determine the amount, if any, by which the assessed value of
1293+36 the taxable property in the allocation area for the most recent
1294+37 assessment date minus the base assessed value, when multiplied
1295+38 by the estimated tax rate of the allocation area, will exceed the
1296+39 amount of assessed value needed to produce the property taxes
1297+40 necessary to:
1298+41 (A) make the distribution required under section 39(b)(2),
1299+42 39(b)(3), and 39(b)(4) of this chapter;
1300+HB 1085—LS 6819/DI 116 30
1301+1 (B) make, when due, principal and interest payments on bonds
1302+2 described in section 39(b)(3) 39(b)(5) of this chapter;
1303+3 (C) pay the amount necessary for other purposes described in
1304+4 section 39(b)(3) 39(b)(5) of this chapter; and
1305+5 (D) reimburse the county or municipality for anticipated
1306+6 expenditures described in subsection (e)(2).
1307+7 (2) Provide a written notice to the county auditor, the fiscal body
1308+8 of the county or municipality that established the department of
1309+9 redevelopment, and the officers who are authorized to fix budgets,
1310+10 tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
1311+11 taxing units that is wholly or partly located within the allocation
1312+12 area. The county auditor, upon receiving the notice, shall forward
1313+13 this notice (in an electronic format) to the department of local
1314+14 government finance not later than June 15 of each year. The
1315+15 notice must:
1316+16 (A) state the amount, if any, of excess property taxes that the
1317+17 commission has determined may be paid to the respective
1318+18 taxing units in the manner prescribed in section 39(b)(1) of
1319+19 this chapter; or
1320+20 (B) state that the commission has determined that there is no
1321+21 excess assessed value that may be allocated to the respective
1322+22 taxing units in the manner prescribed in subdivision (1).
1323+23 The county auditor shall allocate to the respective taxing units the
1324+24 amount, if any, of excess assessed value determined by the
1325+25 commission.
1326+26 (3) If:
1327+27 (A) the amount of excess assessed value determined by the
1328+28 commission is expected to generate more than two hundred
1329+29 percent (200%) of the amount of allocated tax proceeds
1330+30 necessary to make, when due, principal and interest payments
1331+31 on bonds described in subdivision (1); plus
1332+32 (B) the amount necessary for other purposes described in
1333+33 subdivision (1);
1334+34 the commission shall submit to the legislative body of the unit its
1335+35 determination of the excess assessed value that the commission
1336+36 proposes to allocate to the respective taxing units in the manner
1337+37 prescribed in subdivision (2). The legislative body of the unit may
1338+38 approve the commission's determination or modify the amount of
1339+39 the excess assessed value that will be allocated to the respective
1340+40 taxing units in the manner prescribed in subdivision (2).
1341+41 (g) This subsection applies to an allocation area only to the extent
1342+42 that the net assessed value of property that is assessed as residential
1343+HB 1085—LS 6819/DI 116 31
1344+1 property under the rules of the department of local government finance
1345+2 is not included in the base assessed value. If property tax installments
1346+3 with respect to a homestead (as defined in IC 6-1.1-12-37) are due in
1347+4 installments established by the department of local government finance
1348+5 under IC 6-1.1-22-9.5, each taxpayer subject to those installments in an
1349+6 allocation area is entitled to an additional credit under subsection (d)
1350+7 for the taxes (as defined in IC 6-1.1-21-2) (before its repeal) due in
1351+8 installments. The credit shall be applied in the same proportion to each
1352+9 installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal).
1353+10 SECTION 14. IC 36-7-14-52, AS AMENDED BY P.L.38-2021,
1354+11 SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1355+12 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 52. (a) Notwithstanding
1356+13 section 39(a) of this chapter, with respect to the allocation and
1357+14 distribution of property taxes for the accomplishment of the purposes
1358+15 of an age-restricted housing program adopted under section 49 of this
1359+16 chapter, "base assessed value" means, subject to section 39(j) of this
1360+17 chapter, the net assessed value of all of the property, other than
1361+18 personal property, as finally determined for the assessment date
1362+19 immediately preceding the effective date of the allocation provision, as
1363+20 adjusted under section 39(h) of this chapter.
1364+21 (b) The allocation fund established under section 39(b) of this
1365+22 chapter for the allocation area for an age-restricted housing program
1366+23 adopted under section 49 of this chapter may be used only for purposes
1367+24 related to the accomplishment of the purposes of the program,
1368+25 including, but not limited to, the following:
1369+26 (1) The construction of any infrastructure (including streets,
1370+27 sidewalks, and sewers) or local public improvements in, serving,
1371+28 or benefiting the allocation area.
1372+29 (2) The acquisition of real property and interests in real property
1373+30 within the allocation area.
1374+31 (3) The preparation of real property in anticipation of
1375+32 development of the real property within the allocation area.
1376+33 (4) To do any of the following:
1377+34 (A) Pay the principal of and interest on bonds or any other
1378+35 obligations payable from allocated tax proceeds in the
1379+36 allocation area that are incurred by the redevelopment district
1380+37 for the purpose of financing or refinancing the age-restricted
1381+38 housing program established under section 49 of this chapter
1382+39 for the allocation area.
1383+40 (B) Establish, augment, or restore the debt service reserve for
1384+41 bonds payable solely or in part from allocated tax proceeds in
1385+42 the allocation area.
1386+HB 1085—LS 6819/DI 116 32
1387+1 (C) Pay the principal of and interest on bonds payable from
1388+2 allocated tax proceeds in the allocation area and from the
1389+3 special tax levied under section 27 of this chapter.
1390+4 (D) Pay the principal of and interest on bonds issued by the
1391+5 unit to pay for local public improvements that are physically
1392+6 located in or physically connected to the allocation area.
1393+7 (E) Pay premiums on the redemption before maturity of bonds
1394+8 payable solely or in part from allocated tax proceeds in the
1395+9 allocation area.
1396+10 (F) Make payments on leases payable from allocated tax
1397+11 proceeds in the allocation area under section 25.2 of this
1398+12 chapter.
1399+13 (G) Reimburse the unit for expenditures made by the unit for
1400+14 local public improvements (which include buildings, parking
1401+15 facilities, and other items described in section 25.1(a) of this
1402+16 chapter) that are physically located in or physically connected
1403+17 to the allocation area.
1404+18 (c) Notwithstanding section 39(b) of this chapter, the commission
1405+19 shall, relative to the allocation fund established under section 39(b) of
1406+20 this chapter for an allocation area for an age-restricted housing program
1407+21 adopted under section 49 of this chapter, do the following before June
1408+22 15 of each year:
1409+23 (1) Determine the amount, if any, by which the assessed value of
1410+24 the taxable property in the allocation area for the most recent
1411+25 assessment date minus the base assessed value, when multiplied
1412+26 by the estimated tax rate of the allocation area, will exceed the
1413+27 amount of assessed value needed to produce the property taxes
1414+28 necessary to:
1415+29 (A) make the distribution required under section 39(b)(2),
1416+30 39(b)(3), and 39(b)(4) of this chapter;
1417+31 (B) make, when due, principal and interest payments on bonds
1418+32 described in section 39(b)(3) 39(b)(5) of this chapter;
1419+33 (C) pay the amount necessary for other purposes described in
1420+34 section 39(b)(3) 39(b)(5) of this chapter; and
1421+35 (D) reimburse the county or municipality for anticipated
1422+36 expenditures described in subsection (b)(2).
1423+37 (2) Provide a written notice to the county auditor, the fiscal body
1424+38 of the county or municipality that established the department of
1425+39 redevelopment, and the officers who are authorized to fix budgets,
1426+40 tax rates, and tax levies under IC 6-1.1-17-5 for each of the other
1427+41 taxing units that is wholly or partly located within the allocation
1428+42 area. The county auditor, upon receiving the notice, shall forward
1429+HB 1085—LS 6819/DI 116 33
1430+1 this notice (in an electronic format) to the department of local
1431+2 government finance not later than June 15 of each year. The
1432+3 notice must:
1433+4 (A) state the amount, if any, of excess property taxes that the
1434+5 commission has determined may be paid to the respective
1435+6 taxing units in the manner prescribed in section 39(b)(1) of
1436+7 this chapter; or
1437+8 (B) state that the commission has determined that there is no
1438+9 excess assessed value that may be allocated to the respective
1439+10 taxing units in the manner prescribed in subdivision (1).
1440+11 The county auditor shall allocate to the respective taxing units the
1441+12 amount, if any, of excess assessed value determined by the
1442+13 commission.
1443+14 SECTION 15. IC 36-7-14-56, AS ADDED BY P.L.235-2019,
1444+15 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1445+16 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 56. (a) This section
1446+17 applies only to a residential housing development program authorized
1447+18 by section 53 of this chapter.
1448+19 (b) Notwithstanding section 39(a) of this chapter, with respect to the
1449+20 allocation and distribution of property taxes for the accomplishment of
1450+21 the purposes of a residential housing development program adopted
1451+22 under section 53 of this chapter, "base assessed value" means the net
1452+23 assessed value of all of the property, other than personal property, as
1453+24 finally determined for the assessment date immediately preceding the
1454+25 effective date of the allocation provision, as adjusted under section
1455+26 39(h) of this chapter.
1456+27 (c) The allocation fund established under section 39(b) of this
1457+28 chapter for the allocation area for a residential housing development
1458+29 program adopted under section 53 of this chapter may be used only for
1459+30 purposes related to the accomplishment of the purposes of the program,
1460+31 including, but not limited to, the following:
1461+32 (1) The construction of any infrastructure (including streets,
1462+33 roads, and sidewalks) or local public improvements in, serving,
1463+34 or benefiting a residential housing development project.
1464+35 (2) The acquisition of real property and interests in real property
1465+36 for rehabilitation purposes within the allocation area.
1466+37 (3) The preparation of real property in anticipation of
1467+38 development of the real property within the allocation area.
1468+39 (4) To do any of the following:
1469+40 (A) Pay the principal of and interest on bonds or any other
1470+41 obligations payable from allocated tax proceeds in the
1471+42 allocation area that are incurred by the redevelopment district
1472+HB 1085—LS 6819/DI 116 34
1473+1 for the purpose of financing or refinancing the residential
1474+2 housing development program established under section 53 of
1475+3 this chapter for the allocation area.
1476+4 (B) Establish, augment, or restore the debt service reserve for
1477+5 bonds payable solely or in part from allocated tax proceeds in
1478+6 the allocation area.
1479+7 (C) Pay the principal of and interest on bonds payable from
1480+8 allocated tax proceeds in the allocation area and from the
1481+9 special tax levied under section 27 of this chapter.
1482+10 (D) Pay the principal of and interest on bonds issued by the
1483+11 unit to pay for local public improvements that are physically
1484+12 located in or physically connected to the allocation area.
1485+13 (E) Pay premiums on the redemption before maturity of bonds
1486+14 payable solely or in part from allocated tax proceeds in the
1487+15 allocation area.
1488+16 (F) Make payments on leases payable from allocated tax
1489+17 proceeds in the allocation area under section 25.2 of this
1490+18 chapter.
1491+19 (G) Reimburse the unit for expenditures made by the unit for
1492+20 local public improvements (which include buildings, parking
1493+21 facilities, and other items described in section 25.1(a) of this
1494+22 chapter) that are physically located in or physically connected
1495+23 to the allocation area.
1496+24 (d) Notwithstanding section 39(b) of this chapter, the commission
1497+25 shall, relative to the allocation fund established under section 39(b) of
1498+26 this chapter for an allocation area for a residential housing
1499+27 development program adopted under section 53 of this chapter, do the
1500+28 following before June 15 of each year:
1501+29 (1) Determine the amount, if any, by which the assessed value of
1502+30 the taxable property in the allocation area for the most recent
1503+31 assessment date minus the base assessed value, when multiplied
1504+32 by the estimated tax rate of the allocation area, will exceed the
1505+33 amount of assessed value needed to produce the property taxes
1506+34 necessary to:
1507+35 (A) make the distribution required under section 39(b)(2),
1508+36 39(b)(3), and 39(b)(4) of this chapter;
1509+37 (B) make, when due, principal and interest payments on bonds
1510+38 described in section 39(b)(3) 39(b)(5) of this chapter;
1511+39 (C) pay the amount necessary for other purposes described in
1512+40 section 39(b)(3) 39(b)(5) of this chapter; and
1513+41 (D) reimburse the county or municipality for anticipated
1514+42 expenditures described in subsection (c)(2).
1515+HB 1085—LS 6819/DI 116 35
1516+1 (2) Provide a written notice to the county auditor, the fiscal body
1517+2 of the county or municipality that established the department of
1518+3 redevelopment, the officers who are authorized to fix budgets, tax
1519+4 rates, and tax levies under IC 6-1.1-17-5 for each of the other
1520+5 taxing units that are wholly or partly located within the allocation
1521+6 area, and (in an electronic format) the department of local
1522+7 government finance. The notice must:
1523+8 (A) state the amount, if any, of excess property taxes that the
1524+9 commission has determined may be paid to the respective
1525+10 taxing units in the manner prescribed in section 39(b)(1) of
1526+11 this chapter; or
1527+12 (B) state that the commission has determined that there is no
1528+13 excess assessed value that may be allocated to the respective
1529+14 taxing units in the manner prescribed in subdivision (1).
1530+15 The county auditor shall allocate to the respective taxing units the
1531+16 amount, if any, of excess assessed value determined by the
1532+17 commission.
1533+18 (e) If the amount of excess assessed value determined by the
1534+19 commission is expected to generate more than two hundred percent
1535+20 (200%) of the amount of allocated tax proceeds:
1536+21 (1) necessary to make, when due, principal and interest payments
1537+22 on bonds described in 39(b)(3) section 39(b)(5) of this chapter;
1538+23 plus
1539+24 (2) the amount necessary for other purposes described in 39(b)(3)
1540+25 section 39(b)(5) of this chapter;
1541+26 the commission shall submit to the county or municipal legislative
1542+27 body its determination of the excess assessed value that the
1543+28 commission proposes to allocate to the respective taxing units in the
1544+29 manner prescribed in subsection (d)(2). The county or municipal
1545+30 legislative body may approve the commission's determination or
1546+31 modify the amount of the excess assessed value that will be allocated
1547+32 to the respective taxing units in the manner prescribed in subsection
1548+33 (d)(2).
1549+34 (f) An allocation area must terminate on the date the residential
1550+35 housing development program is terminated as set forth in section
1551+36 53(e) of this chapter.
1552+37 SECTION 16. IC 36-7-14.5-12.5, AS AMENDED BY
1553+38 P.L.242-2015, SECTION 43, IS AMENDED TO READ AS
1554+39 FOLLOWS [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]:
1555+40 Sec. 12.5. (a) This section applies only to an authority in a county
1556+41 having a United States government military base that is scheduled for
1557+42 closing or is completely or partially inactive or closed.
1558+HB 1085—LS 6819/DI 116 36
1559+1 (b) In order to accomplish the purposes set forth in section 11 of this
1560+2 chapter, an authority may create an economic development area:
1561+3 (1) by following the procedures set forth in IC 36-7-14-41 for the
1562+4 establishment of an economic development area by a
1563+5 redevelopment commission; and
1564+6 (2) with the same effect as if the economic development area was
1565+7 created by a redevelopment commission.
1566+8 The area established under this section shall be established only in the
1567+9 area where a United States government military base that is scheduled
1568+10 for closing or is completely or partially inactive or closed is or was
1569+11 located.
1570+12 (c) In order to accomplish the purposes set forth in section 11 of this
1571+13 chapter, an authority may do the following in a manner that serves an
1572+14 economic development area created under this section:
1573+15 (1) Acquire by purchase, exchange, gift, grant, condemnation, or
1574+16 lease, or any combination of methods, any personal property or
1575+17 interest in real property needed for the redevelopment of
1576+18 economic development areas located within the corporate
1577+19 boundaries of the unit.
1578+20 (2) Hold, use, sell (by conveyance by deed, land sale contract, or
1579+21 other instrument), exchange, lease, rent, or otherwise dispose of
1580+22 property acquired for use in the redevelopment of economic
1581+23 development areas on the terms and conditions that the authority
1582+24 considers best for the unit and the unit's inhabitants.
1583+25 (3) Sell, lease, or grant interests in all or part of the real property
1584+26 acquired for redevelopment purposes to any other department of
1585+27 the unit or to any other governmental agency for public ways,
1586+28 levees, sewerage, parks, playgrounds, schools, and other public
1587+29 purposes on any terms that may be agreed on.
1588+30 (4) Clear real property acquired for redevelopment purposes.
1589+31 (5) Repair and maintain structures acquired for redevelopment
1590+32 purposes.
1591+33 (6) Remodel, rebuild, enlarge, or make major structural
1592+34 improvements on structures acquired for redevelopment purposes.
1593+35 (7) Survey or examine any land to determine whether the land
1594+36 should be included within an economic development area to be
1595+37 acquired for redevelopment purposes and to determine the value
1596+38 of that land.
1597+39 (8) Appear before any other department or agency of the unit, or
1598+40 before any other governmental agency in respect to any matter
1599+41 affecting:
1600+42 (A) real property acquired or being acquired for
1601+HB 1085—LS 6819/DI 116 37
1602+1 redevelopment purposes; or
1603+2 (B) any economic development area within the jurisdiction of
1604+3 the authority.
1605+4 (9) Institute or defend in the name of the unit any civil action, but
1606+5 all actions against the authority must be brought in the circuit or
1607+6 superior court of the county where the authority is located.
1608+7 (10) Use any legal or equitable remedy that is necessary or
1609+8 considered proper to protect and enforce the rights of and perform
1610+9 the duties of the authority.
1611+10 (11) Exercise the power of eminent domain in the name of and
1612+11 within the corporate boundaries of the unit subject to the same
1613+12 conditions and procedures that apply to the exercise of the power
1614+13 of eminent domain by a redevelopment commission under
1615+14 IC 36-7-14.
1616+15 (12) Appoint an executive director, appraisers, real estate experts,
1617+16 engineers, architects, surveyors, and attorneys.
1618+17 (13) Appoint clerks, guards, laborers, and other employees the
1619+18 authority considers advisable, except that those appointments
1620+19 must be made in accordance with the merit system of the unit if
1621+20 such a system exists.
1622+21 (14) Prescribe the duties and regulate the compensation of
1623+22 employees of the authority.
1624+23 (15) Provide a pension and retirement system for employees of
1625+24 the authority by using the public employees' retirement fund or a
1626+25 retirement plan approved by the United States Department of
1627+26 Housing and Urban Development.
1628+27 (16) Discharge and appoint successors to employees of the
1629+28 authority subject to subdivision (13).
1630+29 (17) Rent offices for use of the department or authority, or accept
1631+30 the use of offices furnished by the unit.
1632+31 (18) Equip the offices of the authority with the necessary
1633+32 furniture, furnishings, equipment, records, and supplies.
1634+33 (19) Design, order, contract for, and construct, reconstruct,
1635+34 improve, or renovate the following:
1636+35 (A) Any local public improvement or structure that is
1637+36 necessary for redevelopment purposes or economic
1638+37 development within the corporate boundaries of the unit.
1639+38 (B) Any structure that enhances development or economic
1640+39 development.
1641+40 (20) Contract for the construction, extension, or improvement of
1642+41 pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
1643+42 (21) Accept loans, grants, and other forms of financial assistance
1644+HB 1085—LS 6819/DI 116 38
1645+1 from, or contract with, the federal government, the state
1646+2 government, a municipal corporation, a special taxing district, a
1647+3 foundation, or any other source.
1648+4 (22) Make and enter into all contracts and agreements necessary
1649+5 or incidental to the performance of the duties of the authority and
1650+6 the execution of the powers of the authority under this chapter.
1651+7 (23) Take any action necessary to implement the purpose of the
1652+8 authority.
1653+9 (24) Provide financial assistance, in the manner that best serves
1654+10 the purposes set forth in section 11 of this chapter, including
1655+11 grants and loans, to enable private enterprise to develop,
1656+12 redevelop, and reuse military base property or otherwise enable
1657+13 private enterprise to provide social and economic benefits to the
1658+14 citizens of the unit.
1659+15 (d) An authority may designate all or a portion of an economic
1660+16 development area created under this section as an allocation area by
1661+17 following the procedures set forth in IC 36-7-14-39 for the
1662+18 establishment of an allocation area by a redevelopment commission.
1663+19 The allocation provision may modify the definition of "property taxes"
1664+20 under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the
1665+21 depreciable personal property located and taxable on the site of
1666+22 operations of designated taxpayers in accordance with the procedures
1667+23 applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.3
1668+24 applies to such a modification. An allocation area established by an
1669+25 authority under this section is a special taxing district authorized by the
1670+26 general assembly to enable the unit to provide special benefits to
1671+27 taxpayers in the allocation area by promoting economic development
1672+28 that is of public use and benefit. For allocation areas established for an
1673+29 economic development area created under this section after June 30,
1674+30 1997, and to the expanded portion of an allocation area for an
1675+31 economic development area that was established before June 30, 1997,
1676+32 and that is expanded under this section after June 30, 1997, the net
1677+33 assessed value of property that is assessed as residential property under
1678+34 the rules of the department of local government finance, as finally
1679+35 determined for any assessment date, must be allocated. All of the
1680+36 provisions of IC 36-7-14-39 apply to an allocation area created under
1681+37 this section, except that the authority shall be vested with the rights and
1682+38 duties of a commission as referenced in those sections, except that the
1683+39 expiration date of any allocation provision for the allocation area is the
1684+40 later of July 1, 2016, or the expiration date determined under
1685+41 IC 36-7-14-39(b), and except that, notwithstanding
1686+42 IC 36-7-14-39(b)(3), IC 36-7-14-39(b)(5), property tax proceeds paid
1687+HB 1085—LS 6819/DI 116 39
1688+1 into the allocation fund may be used by the authority only to do one (1)
1689+2 or more of the following:
1690+3 (1) Pay the principal of and interest and redemption premium on
1691+4 any obligations incurred by the special taxing district or any other
1692+5 entity for the purpose of financing or refinancing military base
1693+6 reuse activities in or serving or benefiting that allocation area.
1694+7 (2) Establish, augment, or restore the debt service reserve for
1695+8 obligations payable solely or in part from allocated tax proceeds
1696+9 in that allocation area or from other revenues of the authority
1697+10 (including lease rental revenues).
1698+11 (3) Make payments on leases payable solely or in part from
1699+12 allocated tax proceeds in that allocation area.
1700+13 (4) Reimburse any other governmental body for expenditures
1701+14 made by it that benefits or provides for local public improvements
1702+15 or structures in or serving or benefiting that allocation area.
1703+16 (5) Pay expenses incurred by the authority that benefit or provide
1704+17 for local public improvements or structures that are in the
1705+18 allocation area or serving or benefiting the allocation area.
1706+19 (6) Reimburse public and private entities for expenses incurred in
1707+20 training employees of industrial facilities that are located:
1708+21 (A) in the allocation area; and
1709+22 (B) on a parcel of real property that has been classified as
1710+23 industrial property under the rules of the department of local
1711+24 government finance.
1712+25 However, the total amount of money spent for this purpose in any
1713+26 year may not exceed the total amount of money in the allocation
1714+27 fund that is attributable to property taxes paid by the industrial
1715+28 facilities described in clause (B). The reimbursements under this
1716+29 subdivision must be made within three (3) years after the date on
1717+30 which the investments that are the basis for the increment
1718+31 financing are made.
1719+32 (e) In addition to other methods of raising money for property
1720+33 acquisition, redevelopment, or economic development activities in or
1721+34 directly serving or benefiting an economic development area created
1722+35 by an authority under this section, and in anticipation of the taxes
1723+36 allocated under subsection (d), other revenues of the authority, or any
1724+37 combination of these sources, the authority may, by resolution, issue
1725+38 the bonds of the special taxing district in the name of the unit. Bonds
1726+39 issued under this section may be issued in any amount without
1727+40 limitation. The following apply if such a resolution is adopted:
1728+41 (1) The authority shall certify a copy of the resolution authorizing
1729+42 the bonds to the municipal or county fiscal officer, who shall then
1730+HB 1085—LS 6819/DI 116 40
1731+1 prepare the bonds. The seal of the unit must be impressed on the
1732+2 bonds, or a facsimile of the seal must be printed on the bonds.
1733+3 (2) The bonds must be executed by the appropriate officer of the
1734+4 unit and attested by the unit's fiscal officer.
1735+5 (3) The bonds are exempt from taxation for all purposes.
1736+6 (4) Bonds issued under this section may be sold at public sale in
1737+7 accordance with IC 5-1-11 or at a negotiated sale.
1738+8 (5) The bonds are not a corporate obligation of the unit but are an
1739+9 indebtedness of the taxing district. The bonds and interest are
1740+10 payable, as set forth in the bond resolution of the authority:
1741+11 (A) from the tax proceeds allocated under subsection (d);
1742+12 (B) from other revenues available to the authority; or
1743+13 (C) from a combination of the methods stated in clauses (A)
1744+14 and (B).
1745+15 (6) Proceeds from the sale of bonds may be used to pay the cost
1746+16 of interest on the bonds for a period not to exceed five (5) years
1747+17 from the date of issuance.
1748+18 (7) Laws relating to the filing of petitions requesting the issuance
1749+19 of bonds and the right of taxpayers and voters to remonstrate
1750+20 against the issuance of bonds do not apply to bonds issued under
1751+21 this section.
1752+22 (8) If a debt service reserve is created from the proceeds of bonds,
1753+23 the debt service reserve may be used to pay principal and interest
1754+24 on the bonds as provided in the bond resolution.
1755+25 (9) If bonds are issued under this chapter that are payable solely
1756+26 or in part from revenues to the authority from a project or
1757+27 projects, the authority may adopt a resolution or trust indenture or
1758+28 enter into covenants as is customary in the issuance of revenue
1759+29 bonds. The resolution or trust indenture may pledge or assign the
1760+30 revenues from the project or projects. The resolution or trust
1761+31 indenture may also contain any provisions for protecting and
1762+32 enforcing the rights and remedies of the bond owners as may be
1763+33 reasonable and proper and not in violation of law, including
1764+34 covenants setting forth the duties of the authority. The authority
1765+35 may establish fees and charges for the use of any project and
1766+36 covenant with the owners of any bonds to set those fees and
1767+37 charges at a rate sufficient to protect the interest of the owners of
1768+38 the bonds. Any revenue bonds issued by the authority that are
1769+39 payable solely from revenues of the authority shall contain a
1770+40 statement to that effect in the form of bond.
1771+41 (f) Notwithstanding section 8(a) of this chapter, an ordinance
1772+42 adopted under section 11 of this chapter may provide, or be amended
1773+HB 1085—LS 6819/DI 116 41
1774+1 to provide, that the board of directors of the authority shall be
1775+2 composed of not fewer than three (3) nor more than eleven (11)
1776+3 members, who must be residents of or be employed at a place of
1777+4 employment located within the unit. The members shall be appointed
1778+5 by the executive of the unit.
1779+6 (g) The acquisition of real and personal property by an authority
1780+7 under this section is not subject to the provisions of IC 5-22,
1781+8 IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
1782+9 purchase of property by public bodies or their agencies.
1783+10 (h) An authority may negotiate for the sale, lease, or other
1784+11 disposition of real and personal property without complying with the
1785+12 provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
1786+13 statute governing the disposition of public property.
1787+14 (i) Notwithstanding any other law, utility services provided within
1788+15 an economic development area established under this section are
1789+16 subject to regulation by the appropriate regulatory agencies unless the
1790+17 utility service is provided by a utility that provides utility service solely
1791+18 within the geographic boundaries of an existing or a closed military
1792+19 installation, in which case the utility service is not subject to regulation
1793+20 for purposes of rate making, regulation, service delivery, or issuance of
1794+21 bonds or other forms of indebtedness. However, this exemption from
1795+22 regulation does not apply to utility service if the service is generated,
1796+23 treated, or produced outside the boundaries of the existing or closed
1797+24 military installation.
1798+25 SECTION 17. IC 36-7-15.1-36.4 IS ADDED TO THE INDIANA
1799+26 CODE AS A NEW SECTION TO READ AS FOLLOWS
1800+27 [EFFECTIVE JULY 1, 2023]: Sec. 36.4. (a) Not later than December
1801+28 31 of each year, the redevelopment commissioners shall provide the
1802+29 balance of:
1803+30 (1) the special fund described in section 53(b)(3) of this
1804+31 chapter; and
1805+32 (2) any other funds maintained by the redevelopment
1806+33 commission;
1807+34 to the department of local government finance.
1808+35 (b) The department of local government finance shall post fund
1809+36 balances received under subsection (a) on the Indiana
1810+37 transparency website within ninety (90) days of the receipt of the
1811+38 fund balances.
1812+39 (c) Not later than February of each year, the department of local
1813+40 government finance shall compile the information received from
1814+41 the redevelopment commission under subsection (a) and provide
1815+42 the information to the interim study committee on fiscal policy
1816+HB 1085—LS 6819/DI 116 42
1817+1 established by IC 2-5-1.3-4.
1818+2 (d) This section expires July 1, 2028.
1819+3 SECTION 18. IC 36-7-15.1-45, AS AMENDED BY P.L.203-2011,
1820+4 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1821+5 JULY 1, 2023]: Sec. 45. (a) In addition to other methods of raising
1822+6 money for property acquisition or redevelopment in a redevelopment
1823+7 project area, and in anticipation of the special tax to be levied under
1824+8 section 50 of this chapter, the taxes allocated under section 53 of this
1825+9 chapter, or other revenues of the redevelopment district, a commission
1826+10 may, by resolution, issue the bonds of its redevelopment district in the
1827+11 name of the excluded city. The amount of the bonds may not exceed
1828+12 the total, as estimated by the commission, of all expenses reasonably
1829+13 incurred in connection with the acquisition and redevelopment of the
1830+14 property, including:
1831+15 (1) the total cost of all land, rights-of-way, and other property to
1832+16 be acquired and redeveloped;
1833+17 (2) all reasonable and necessary architectural, engineering, legal,
1834+18 financing, accounting, advertising, bond discount, and
1835+19 supervisory expenses related to the acquisition and redevelopment
1836+20 of the property or the issuance of bonds;
1837+21 (3) capitalized interest permitted in this chapter and a debt service
1838+22 reserve for the bonds, to the extent that the redevelopment
1839+23 commission determines that a reserve is reasonably required;
1840+24 (4) the total cost of all clearing and construction work provided
1841+25 for in the resolution; and
1842+26 (5) expenses that the commission is required or permitted to pay
1843+27 under IC 8-23-17.
1844+28 (b) If a commission plans to acquire different parcels of land or let
1845+29 different contracts for redevelopment work at approximately the same
1846+30 time, whether under one (1) or more resolutions, a commission may
1847+31 provide for the total cost in one (1) issue of bonds.
1848+32 (c) The bonds must be dated as set forth in the bond resolution and
1849+33 negotiable subject to the requirements concerning registration of the
1850+34 bonds. The resolution authorizing the bonds must state:
1851+35 (1) the denominations of the bonds;
1852+36 (2) the place or places at which the bonds are payable; and
1853+37 (3) the term of the bonds, which may not exceed:
1854+38 (A) fifty (50) years, for bonds issued before July 1, 2008; or
1855+39 (B) twenty-five (25) years, for bonds issued after June 30,
1856+40 2008.
1857+41 The resolution may also state that the bonds are redeemable before
1858+42 maturity with or without a premium, as determined by the commission.
1859+HB 1085—LS 6819/DI 116 43
1860+1 (d) The commission shall certify a copy of the resolution authorizing
1861+2 the bonds to the fiscal officer of the excluded city, who shall then
1862+3 prepare the bonds. The seal of the unit must be impressed on the bonds,
1863+4 or a facsimile of the seal must be printed on the bonds.
1864+5 (e) The bonds shall be executed by the excluded city executive and
1865+6 attested by the excluded city fiscal officer. The interest coupons, if any,
1866+7 shall be executed by the facsimile signature of the excluded city fiscal
1867+8 officer.
1868+9 (f) The bonds are exempt from taxation as provided by IC 6-8-5.
1869+10 (g) The excluded city fiscal officer shall sell the bonds according to
1870+11 law. Bonds payable solely or in part from tax proceeds allocated under
1871+12 section 53(b)(3) 53(b)(4) of this chapter or other revenues of the
1872+13 district may be sold at private negotiated sale and at a price or prices
1873+14 not less than ninety-seven percent (97%) of the par value.
1874+15 (h) The bonds are not a corporate obligation of the excluded city but
1875+16 are an indebtedness of the redevelopment district. The bonds and
1876+17 interest are payable:
1877+18 (1) from a special tax levied upon all of the property in the
1878+19 redevelopment district, as provided by section 50 of this chapter;
1879+20 (2) from the tax proceeds allocated under section 53(b)(3)
1880+21 53(b)(4) of this chapter;
1881+22 (3) from other revenues available to the commission; or
1882+23 (4) from a combination of the methods described in subdivisions
1883+24 (1) through (3);
1884+25 and from any revenues of the designated project. If the bonds are
1885+26 payable solely from the tax proceeds allocated under section 53(b)(3)
1886+27 53(b)(4) of this chapter, other revenues of the redevelopment
1887+28 commission, or any combination of these sources, they may be issued
1888+29 in any amount without limitation.
1889+30 (i) Proceeds from the sale of the bonds may be used to pay the cost
1890+31 of interest on the bonds for a period not to exceed five (5) years from
1891+32 the date of issue.
1892+33 (j) The laws relating to the filing of petitions requesting the issuance
1893+34 of bonds and the right of taxpayers and voters to remonstrate against,
1894+35 or vote on, the issuance of bonds applicable to bonds issued under this
1895+36 chapter do not apply to bonds payable solely or in part from tax
1896+37 proceeds allocated under section 53(b)(3) 53(b)(4) of this chapter,
1897+38 other revenues of the commission, or any combination of these sources.
1898+39 (k) If bonds are issued under this chapter that are payable solely or
1899+40 in part from revenues to a commission from a project or projects, a
1900+41 commission may adopt a resolution or trust indenture or enter into
1901+42 covenants as is customary in the issuance of revenue bonds. The
1902+HB 1085—LS 6819/DI 116 44
1903+1 resolution or trust indenture may pledge or assign the revenues from
1904+2 the project or projects but may not convey or mortgage any project or
1905+3 parts of a project. The resolution or trust indenture may also contain
1906+4 any provisions for protecting and enforcing the rights and remedies of
1907+5 the bond owners as may be reasonable and proper and not in violation
1908+6 of law, including covenants setting forth the duties of the commission.
1909+7 The commission may establish fees and charges for the use of any
1910+8 project and covenant with the owners of bonds to set those fees and
1911+9 charges at a rate sufficient to protect the interest of the owners of the
1912+10 bonds. Any revenue bonds issued by the commission that are payable
1913+11 solely from revenues of the commission must contain a statement to
1914+12 that effect in the form of bond.
1915+13 SECTION 19. IC 36-7-15.1-50, AS AMENDED BY P.L.203-2011,
1916+14 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1917+15 JULY 1, 2023]: Sec. 50. (a) This section applies only to:
1918+16 (1) bonds that are issued under section 45 of this chapter; or
1919+17 (2) leases entered into under section 46 of this chapter;
1920+18 that are payable from a special tax levied upon all of the property in the
1921+19 redevelopment district. This section does not apply to bonds or leases
1922+20 that are payable solely from tax proceeds allocated under section
1923+21 53(b)(3) 53(b)(4) of this chapter, other revenues of the commission, or
1924+22 any combination of these sources.
1925+23 (b) The excluded city legislative body shall levy each year a tax on
1926+24 all of the property of the redevelopment district in such a manner as to
1927+25 meet and pay:
1928+26 (1) the principal of the bonds as they mature, together with all
1929+27 accruing interest on the bonds; or
1930+28 (2) lease rental payments under section 46 of this chapter.
1931+29 The tax levied shall be certified to the fiscal officers of the excluded
1932+30 city and the county before October 2 in each year. The tax shall be
1933+31 estimated and entered on the tax duplicate by the county auditor and
1934+32 shall be collected and enforced by the county treasurer in the same
1935+33 manner as other state and county taxes are estimated, entered,
1936+34 collected, and enforced.
1937+35 (c) As the tax is collected, it shall be accumulated in a separate fund
1938+36 to be known as the redevelopment district bond fund and shall be
1939+37 applied to the payment of the bonds as they mature and the interest on
1940+38 the bonds as it accrues, or to make lease payments, and to no other
1941+39 purpose. All accumulations of the fund before use for the payment of
1942+40 bonds and interest or to make lease payments shall be deposited with
1943+41 the depository or depositories for other public funds of the city in
1944+42 accordance with the statutes concerning the deposit of public funds,
1945+HB 1085—LS 6819/DI 116 45
1946+1 unless they are invested under IC 5-13.
1947+2 (d) The tax levies provided for in this section are reviewable by
1948+3 other bodies vested by law with the authority to ascertain that the levies
1949+4 are sufficient to raise the amount that, with other amounts available, is
1950+5 sufficient to meet the payments under the lease payable from the levy
1951+6 of taxes.
1952+7 SECTION 20. IC 36-7-15.1-53, AS AMENDED BY P.L.174-2022,
1953+8 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1954+9 JULY 1, 2023]: Sec. 53. (a) As used in this section:
1955+10 "Allocation area" means that part of a redevelopment project area
1956+11 to which an allocation provision of a resolution adopted under section
1957+12 40 of this chapter refers for purposes of distribution and allocation of
1958+13 property taxes.
1959+14 "Base assessed value" means, subject to subsection (j):
1960+15 (1) the net assessed value of all the property as finally determined
1961+16 for the assessment date immediately preceding the effective date
1962+17 of the allocation provision of the declaratory resolution, as
1963+18 adjusted under subsection (h); plus
1964+19 (2) to the extent that it is not included in subdivision (1), the net
1965+20 assessed value of property that is assessed as residential property
1966+21 under the rules of the department of local government finance, as
1967+22 finally determined for the current assessment date.
1968+23 Except as provided in section 55 of this chapter, "property taxes"
1969+24 means taxes imposed under IC 6-1.1 on real property.
1970+25 (b) A resolution adopted under section 40 of this chapter on or
1971+26 before the allocation deadline determined under subsection (i) may
1972+27 include a provision with respect to the allocation and distribution of
1973+28 property taxes for the purposes and in the manner provided in this
1974+29 section. A resolution previously adopted may include an allocation
1975+30 provision by the amendment of that resolution on or before the
1976+31 allocation deadline determined under subsection (i) in accordance with
1977+32 the procedures required for its original adoption. A declaratory
1978+33 resolution or an amendment that establishes an allocation provision
1979+34 must be approved by resolution of the legislative body of the excluded
1980+35 city and must specify an expiration date for the allocation provision.
1981+36 For an allocation area established before July 1, 2008, the expiration
1982+37 date may not be more than thirty (30) years after the date on which the
1983+38 allocation provision is established. For an allocation area established
1984+39 after June 30, 2008, the expiration date may not be more than
1985+40 twenty-five (25) years after the date on which the first obligation was
1986+41 incurred to pay principal and interest on bonds or lease rentals on
1987+42 leases payable from tax increment revenues. However, with respect to
1988+HB 1085—LS 6819/DI 116 46
1989+1 bonds or other obligations that were issued before July 1, 2008, if any
1990+2 of the bonds or other obligations that were scheduled when issued to
1991+3 mature before the specified expiration date and that are payable only
1992+4 from allocated tax proceeds with respect to the allocation area remain
1993+5 outstanding as of the expiration date, the allocation provision does not
1994+6 expire until all of the bonds or other obligations are no longer
1995+7 outstanding. The allocation provision may apply to all or part of the
1996+8 redevelopment project area. The allocation provision must require that
1997+9 any property taxes subsequently levied by or for the benefit of any
1998+10 public body entitled to a distribution of property taxes on taxable
1999+11 property in the allocation area be allocated and distributed as follows:
2000+12 (1) Except as otherwise provided in this section, the proceeds of
2001+13 the taxes attributable to the lesser of:
2002+14 (A) the assessed value of the property for the assessment date
2003+15 with respect to which the allocation and distribution is made;
2004+16 or
2005+17 (B) the base assessed value;
2006+18 shall be allocated to and, when collected, paid into the funds of
2007+19 the respective taxing units.
2008+20 (2) This subdivision applies to an allocation area established
2009+21 in accordance with section 8 of this chapter after June 30,
2010+22 2023. The amount determined under this subdivision shall be
2011+23 distributed according to the following:
2012+24 (A) The following calculation set forth in this clause applies
2013+25 to school corporations:
2014+26 STEP ONE: Determine the amount, if any, of the
2015+27 assessed value of the taxable property in the allocation
2016+28 area for the most recent assessment date minus the base
2017+29 assessed value.
2018+30 STEP TWO: Determine the average tax rate per one
2019+31 hundred dollars ($100) of assessed value of the school
2020+32 corporations' total nonreferendum tax rates per one
2021+33 hundred dollars ($100) of assessed value for school
2022+34 corporations located in the allocation area.
2023+35 STEP THREE: Multiply the amount determined under
2024+36 STEP ONE by the average tax rate determined under
2025+37 STEP TWO.
2026+38 STEP FOUR: Multiply the STEP THREE product by
2027+39 five percent (5%).
2028+40 The amount determined under STEP FOUR of this clause
2029+41 shall be allocated to and, when collected, paid to school
2030+42 corporations that maintain an attendance area that
2031+HB 1085—LS 6819/DI 116 47
2032+1 includes all or part of the allocation area. If more than one
2033+2 (1) school corporation maintains an attendance area within
2034+3 the allocation area, the distribution shall be apportioned
2035+4 based on the allocation attributable to each school
2036+5 corporation. A school corporation that receives a
2037+6 distribution under this subdivision may use the
2038+7 distribution only to fund career and technical education
2039+8 programs of the applicable school corporation.
2040+9 (B) The following calculation set forth in this clause applies
2041+10 to police or fire services:
2042+11 STEP ONE: Determine the amount, if any, of the
2043+12 assessed value of the taxable property in the allocation
2044+13 area for the most recent assessment date minus the base
2045+14 assessed value.
2046+15 STEP TWO: Multiply the amount determined under
2047+16 STEP ONE by the county unit's total nonreferendum tax
2048+17 rate per one hundred dollars ($100) of assessed value.
2049+18 STEP THREE: Multiply the STEP TWO product by five
2050+19 percent (5%).
2051+20 The amount determined under STEP THREE of this clause
2052+21 shall be allocated to and, when collected, paid to the county
2053+22 taxing unit that provides police or fire services in the
2054+23 allocation area to be used for operating or capital
2055+24 expenditures required for providing police and fire
2056+25 services in the allocation area.
2057+26 (2) (3) The excess of the proceeds of the property taxes imposed
2058+27 for the assessment date with respect to which the allocation and
2059+28 distribution is made that are attributable to taxes imposed after
2060+29 being approved by the voters in a referendum or local public
2061+30 question conducted after April 30, 2010, not otherwise included
2062+31 in subdivision (1) subdivisions (1) and (2) shall be allocated to
2063+32 and, when collected, paid into the funds of the taxing unit for
2064+33 which the referendum or local public question was conducted.
2065+34 (3) (4) Except as otherwise provided in this section, property tax
2066+35 proceeds in excess of those described in subdivisions (1), (2), and
2067+36 (2) (3) shall be allocated to the redevelopment district and, when
2068+37 collected, paid into a special fund for that allocation area that may
2069+38 be used by the redevelopment district only to do one (1) or more
2070+39 of the following:
2071+40 (A) Pay the principal of and interest on any obligations
2072+41 payable solely from allocated tax proceeds that are incurred by
2073+42 the redevelopment district for the purpose of financing or
2074+HB 1085—LS 6819/DI 116 48
2075+1 refinancing the redevelopment of that allocation area.
2076+2 (B) Establish, augment, or restore the debt service reserve for
2077+3 bonds payable solely or in part from allocated tax proceeds in
2078+4 that allocation area.
2079+5 (C) Pay the principal of and interest on bonds payable from
2080+6 allocated tax proceeds in that allocation area and from the
2081+7 special tax levied under section 50 of this chapter.
2082+8 (D) Pay the principal of and interest on bonds issued by the
2083+9 excluded city to pay for local public improvements that are
2084+10 physically located in or physically connected to that allocation
2085+11 area.
2086+12 (E) Pay premiums on the redemption before maturity of bonds
2087+13 payable solely or in part from allocated tax proceeds in that
2088+14 allocation area.
2089+15 (F) Make payments on leases payable from allocated tax
2090+16 proceeds in that allocation area under section 46 of this
2091+17 chapter.
2092+18 (G) Reimburse the excluded city for expenditures for local
2093+19 public improvements (which include buildings, park facilities,
2094+20 and other items set forth in section 45 of this chapter) that are
2095+21 physically located in or physically connected to that allocation
2096+22 area.
2097+23 (H) Reimburse the unit for rentals paid by it for a building or
2098+24 parking facility that is physically located in or physically
2099+25 connected to that allocation area under any lease entered into
2100+26 under IC 36-1-10.
2101+27 (I) Reimburse public and private entities for expenses incurred
2102+28 in training employees of industrial facilities that are located:
2103+29 (i) in the allocation area; and
2104+30 (ii) on a parcel of real property that has been classified as
2105+31 industrial property under the rules of the department of local
2106+32 government finance.
2107+33 However, the total amount of money spent for this purpose in
2108+34 any year may not exceed the total amount of money in the
2109+35 allocation fund that is attributable to property taxes paid by the
2110+36 industrial facilities described in this clause. The
2111+37 reimbursements under this clause must be made within three
2112+38 (3) years after the date on which the investments that are the
2113+39 basis for the increment financing are made.
2114+40 The special fund may not be used for operating expenses of the
2115+41 commission.
2116+42 (4) (5) Before June 15 of each year, the commission shall do the
2117+HB 1085—LS 6819/DI 116 49
2118+1 following:
2119+2 (A) Determine the amount, if any, by which the assessed value
2120+3 of the taxable property in the allocation area for the most
2121+4 recent assessment date minus the base assessed value, when
2122+5 multiplied by the estimated tax rate of the allocation area, will
2123+6 exceed the amount of assessed value needed to provide the
2124+7 property taxes necessary to make, when due, principal and
2125+8 interest payments on bonds described in subdivision (3) (4)
2126+9 plus the amount necessary for other purposes described in
2127+10 subdivision (3) (4) and subsection (g).
2128+11 (B) Provide a written notice to the county auditor, the fiscal
2129+12 body of the county or municipality that established the
2130+13 department of redevelopment, the officers who are authorized
2131+14 to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
2132+15 each of the other taxing units that is wholly or partly located
2133+16 within the allocation area, and (in an electronic format) the
2134+17 department of local government finance. The notice must:
2135+18 (i) state the amount, if any, of excess assessed value that the
2136+19 commission has determined may be allocated to the
2137+20 respective taxing units in the manner prescribed in
2138+21 subdivision (1); or
2139+22 (ii) state that the commission has determined that there is no
2140+23 excess assessed value that may be allocated to the respective
2141+24 taxing units in the manner prescribed in subdivision (1).
2142+25 The county auditor shall allocate to the respective taxing units
2143+26 the amount, if any, of excess assessed value determined by the
2144+27 commission. The commission may not authorize an allocation
2145+28 to the respective taxing units under this subdivision if to do so
2146+29 would endanger the interests of the holders of bonds described
2147+30 in subdivision (3). (4).
2148+31 (c) For the purpose of allocating taxes levied by or for any taxing
2149+32 unit or units, the assessed value of taxable property in a territory in the
2150+33 allocation area that is annexed by any taxing unit after the effective
2151+34 date of the allocation provision of the resolution is the lesser of:
2152+35 (1) the assessed value of the property for the assessment date with
2153+36 respect to which the allocation and distribution is made; or
2154+37 (2) the base assessed value.
2155+38 (d) Property tax proceeds allocable to the redevelopment district
2156+39 under subsection (b)(3) (b)(4) may, subject to subsection (b)(4), (b)(5),
2157+40 be irrevocably pledged by the redevelopment district for payment as set
2158+41 forth in subsection (b)(3). (b)(4).
2159+42 (e) Notwithstanding any other law, each assessor shall, upon
2160+HB 1085—LS 6819/DI 116 50
2161+1 petition of the commission, reassess the taxable property situated upon
2162+2 or in, or added to, the allocation area, effective on the next assessment
2163+3 date after the petition.
2164+4 (f) Notwithstanding any other law, the assessed value of all taxable
2165+5 property in the allocation area, for purposes of tax limitation, property
2166+6 tax replacement, and formulation of the budget, tax rate, and tax levy
2167+7 for each political subdivision in which the property is located, is the
2168+8 lesser of:
2169+9 (1) the assessed value of the property as valued without regard to
2170+10 this section; or
2171+11 (2) the base assessed value.
2172+12 (g) If any part of the allocation area is located in an enterprise zone
2173+13 created under IC 5-28-15, the unit that designated the allocation area
2174+14 shall create funds as specified in this subsection. A unit that has
2175+15 obligations, bonds, or leases payable from allocated tax proceeds under
2176+16 subsection (b)(3) (b)(4) shall establish an allocation fund for the
2177+17 purposes specified in subsection (b)(3) (b)(4) and a special zone fund.
2178+18 Such a unit shall, until the end of the enterprise zone phase out period,
2179+19 deposit each year in the special zone fund the amount in the allocation
2180+20 fund derived from property tax proceeds in excess of those described
2181+21 in subsection (b)(1), and (b)(2), and (b)(3) from property located in the
2182+22 enterprise zone that exceeds the amount sufficient for the purposes
2183+23 specified in subsection (b)(3) (b)(4) for the year. A unit that has no
2184+24 obligations, bonds, or leases payable from allocated tax proceeds under
2185+25 subsection (b)(3) (b)(4) shall establish a special zone fund and deposit
2186+26 all the property tax proceeds in excess of those described in subsection
2187+27 (b)(1), and (b)(2), and (b)(3) in the fund derived from property tax
2188+28 proceeds in excess of those described in subsection (b)(1), and (b)(2),
2189+29 and (b)(3) from property located in the enterprise zone. The unit that
2190+30 creates the special zone fund shall use the fund, based on the
2191+31 recommendations of the urban enterprise association, for one (1) or
2192+32 more of the following purposes:
2193+33 (1) To pay for programs in job training, job enrichment, and basic
2194+34 skill development designed to benefit residents and employers in
2195+35 the enterprise zone. The programs must reserve at least one-half
2196+36 (1/2) of the enrollment in any session for residents of the
2197+37 enterprise zone.
2198+38 (2) To make loans and grants for the purpose of stimulating
2199+39 business activity in the enterprise zone or providing employment
2200+40 for enterprise zone residents in an enterprise zone. These loans
2201+41 and grants may be made to the following:
2202+42 (A) Businesses operating in the enterprise zone.
22052203 HB 1085—LS 6819/DI 116 51
2206-1 allocations to a school corporation.
2207-2 SECTION 22. IC 36-7.5-4.5-18, AS ADDED BY P.L.248-2017,
2208-3 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2209-4 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 18. If a district is
2210-5 established, the following apply to the administration and use of
2211-6 incremental property tax revenue by the development authority, or a
2212-7 redevelopment commission in the case of a district located in a cash
2213-8 participant county, in the district:
2214-9 (1) The department of local government finance shall adjust the
2215-10 base assessed value to neutralize any effect of a reassessment and
2216-11 the annual adjustment of the real property in the district in the
2217-12 same manner as provided in IC 36-7-14-39(h).
2218-13 (2) Proceeds of the property taxes approved by the voters in a
2219-14 referendum or local public question shall be allocated to and,
2220-15 when collected, paid into the funds of the taxing unit for which
2221-16 the referendum or local public question was conducted in the
2222-17 same manner as provided in IC 36-7-14-39(b)(2).
2223-18 IC 36-7-14-39(b)(4).
2224-19 (3) Incremental property tax revenue may be used only for one (1)
2225-20 or more of the following purposes for a district:
2226-21 (A) To finance the improvement, construction, reconstruction,
2227-22 renovation, and acquisition of real and personal property
2228-23 improvements within a district.
2229-24 (B) To pay the principal of and interest on any obligations that
2230-25 are incurred for the purpose of financing or refinancing
2231-26 development in the district, including local public
2232-27 improvements that are physically located in or physically
2233-28 connected to the district.
2234-29 (C) To establish, augment, or restore the debt service reserve
2235-30 for bonds payable solely or in part from incremental property
2236-31 tax revenue from the district.
2237-32 (D) To pay premiums on the redemption before maturity of
2238-33 bonds payable solely or in part from incremental property tax
2239-34 revenue from the district.
2240-35 (E) To make payments on leases payable from incremental
2241-36 property tax revenue from the district.
2242-37 (F) To reimburse a municipality in which a district is located
2243-38 for expenditures made by the municipality for local public
2244-39 improvements that are physically located in or physically
2245-40 connected to the district.
2246-41 (G) To reimburse a municipality for rentals paid by the
2247-42 municipality for a building or parking facility that is physically
2204+1 (B) Businesses that will move their operations to the enterprise
2205+2 zone if such a loan or grant is made.
2206+3 (3) To provide funds to carry out other purposes specified in
2207+4 subsection (b)(3). (b)(4). However, where reference is made in
2208+5 subsection (b)(3) (b)(4) to the allocation area, the reference refers,
2209+6 for purposes of payments from the special zone fund, only to that
2210+7 part of the allocation area that is also located in the enterprise
2211+8 zone.
2212+9 (h) The state board of accounts and department of local government
2213+10 finance shall make the rules and prescribe the forms and procedures
2214+11 that they consider expedient for the implementation of this chapter.
2215+12 After each reassessment of real property in an area under a county's
2216+13 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
2217+14 local government finance shall adjust the base assessed value one (1)
2218+15 time to neutralize any effect of the reassessment of the real property in
2219+16 the area on the property tax proceeds allocated to the redevelopment
2220+17 district under this section. After each annual adjustment under
2221+18 IC 6-1.1-4-4.5, the department of local government finance shall adjust
2222+19 the base assessed value to neutralize any effect of the annual
2223+20 adjustment on the property tax proceeds allocated to the redevelopment
2224+21 district under this section. However, the adjustments under this
2225+22 subsection may not include the effect of property tax abatements under
2226+23 IC 6-1.1-12.1, and these adjustments may not produce less property tax
2227+24 proceeds allocable to the redevelopment district under subsection
2228+25 (b)(3) (b)(4) than would otherwise have been received if the
2229+26 reassessment under the county's reassessment plan or annual
2230+27 adjustment had not occurred. The department of local government
2231+28 finance may prescribe procedures for county and township officials to
2232+29 follow to assist the department in making the adjustments.
2233+30 (i) The allocation deadline referred to in subsection (b) is
2234+31 determined in the following manner:
2235+32 (1) The initial allocation deadline is December 31, 2011.
2236+33 (2) Subject to subdivision (3), the initial allocation deadline and
2237+34 subsequent allocation deadlines are automatically extended in
2238+35 increments of five (5) years, so that allocation deadlines
2239+36 subsequent to the initial allocation deadline fall on December 31,
2240+37 2016, and December 31 of each fifth year thereafter.
2241+38 (3) At least one (1) year before the date of an allocation deadline
2242+39 determined under subdivision (2), the general assembly may enact
2243+40 a law that:
2244+41 (A) terminates the automatic extension of allocation deadlines
2245+42 under subdivision (2); and
22482246 HB 1085—LS 6819/DI 116 52
2249-1 located in or physically connected to the district under any
2250-2 lease entered into under IC 36-1-10.
2251-3 (H) To pay expenses incurred by the development authority for
2252-4 local public improvements that are in the district or serving the
2253-5 district.
2254-6 SECTION 23. IC 36-8-19-6, AS AMENDED BY P.L.95-2022,
2255-7 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2256-8 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 6. (a) To establish or
2257-9 expand a fire protection territory, the legislative bodies of each unit or
2258-10 fire protection district:
2259-11 (1) desiring to establish a fire protection territory; or
2260-12 (2) desiring to expand an existing fire protection territory by:
2261-13 (A) becoming a participating unit in; or
2262-14 (B) approving the addition of a participating unit in;
2263-15 an existing fire protection territory;
2264-16 must adopt an ordinance (in the case of a county or municipality) or a
2265-17 resolution (in the case of a township or a fire protection district).
2266-18 (b) The ordinance or resolution must meet the following
2267-19 requirements:
2268-20 (1) The ordinance or resolution is identical to the ordinances and
2269-21 resolutions adopted by the other units or fire protection districts
2270-22 desiring to establish or expand the proposed territory.
2271-23 (2) Except as otherwise provided in this subdivision, the
2272-24 ordinance or resolution is adopted after January 1 but before April
2273-25 1. However, for an ordinance or resolution adopted in 2023,
2274-26 the ordinance or resolution must be adopted after January 1,
2275-27 2023, and before August 2, 2023.
2276-28 (3) The ordinance or resolution authorizes the unit or fire
2277-29 protection district to become a party to an agreement for the
2278-30 establishment of a fire protection territory or the expansion of an
2279-31 existing fire protection territory.
2280-32 (4) This subdivision does not apply to an ordinance or
2281-33 resolution adopted in 2023. An ordinance or resolution is
2282-34 adopted after the legislative body holds at least three (3) public
2283-35 hearings to receive public comment on the proposed ordinance or
2247+1 (B) specifically designates a particular date as the final
2248+2 allocation deadline.
2249+3 (j) If the commission adopts a declaratory resolution or an
2250+4 amendment to a declaratory resolution that contains an allocation
2251+5 provision and the commission makes either of the filings required
2252+6 under section 10(e) of this chapter after the first anniversary of the
2253+7 effective date of the allocation provision, the auditor of the county in
2254+8 which the unit is located shall compute the base assessed value for the
2255+9 allocation area using the assessment date immediately preceding the
2256+10 later of:
2257+11 (1) the date on which the documents are filed with the county
2258+12 auditor; or
2259+13 (2) the date on which the documents are filed with the department
2260+14 of local government finance.
2261+15 (k) For an allocation area established after June 30, 2024,
2262+16 "residential property" refers to the assessed value of property that is
2263+17 allocated to the one percent (1%) homestead land and improvement
2264+18 categories in the county tax and billing software system, along with the
2265+19 residential assessed value as defined for purposes of calculating the
2266+20 rate for the local income tax property tax relief credit designated for
2267+21 residential property under IC 6-3.6-5-6(d)(3).
2268+22 (l) This subsection applies to an allocation area established in
2269+23 accordance with section 8 of this chapter before July 1, 2023. The
2270+24 redevelopment commission is strongly encouraged to make
2271+25 allocations to a school corporation in the manner described in
2272+26 subsection (b)(2).
2273+27 SECTION 21. IC 36-7.5-4.5-18, AS ADDED BY P.L.248-2017,
2274+28 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2275+29 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 18. If a district is
2276+30 established, the following apply to the administration and use of
2277+31 incremental property tax revenue by the development authority, or a
2278+32 redevelopment commission in the case of a district located in a cash
2279+33 participant county, in the district:
2280+34 (1) The department of local government finance shall adjust the
2281+35 base assessed value to neutralize any effect of a reassessment and
2282+36 the annual adjustment of the real property in the district in the
2283+37 same manner as provided in IC 36-7-14-39(h).
2284+38 (2) Proceeds of the property taxes approved by the voters in a
2285+39 referendum or local public question shall be allocated to and,
2286+40 when collected, paid into the funds of the taxing unit for which
2287+41 the referendum or local public question was conducted in the
2288+42 same manner as provided in IC 36-7-14-39(b)(2).
2289+HB 1085—LS 6819/DI 116 53
2290+1 IC 36-7-14-39(b)(4).
2291+2 (3) Incremental property tax revenue may be used only for one (1)
2292+3 or more of the following purposes for a district:
2293+4 (A) To finance the improvement, construction, reconstruction,
2294+5 renovation, and acquisition of real and personal property
2295+6 improvements within a district.
2296+7 (B) To pay the principal of and interest on any obligations that
2297+8 are incurred for the purpose of financing or refinancing
2298+9 development in the district, including local public
2299+10 improvements that are physically located in or physically
2300+11 connected to the district.
2301+12 (C) To establish, augment, or restore the debt service reserve
2302+13 for bonds payable solely or in part from incremental property
2303+14 tax revenue from the district.
2304+15 (D) To pay premiums on the redemption before maturity of
2305+16 bonds payable solely or in part from incremental property tax
2306+17 revenue from the district.
2307+18 (E) To make payments on leases payable from incremental
2308+19 property tax revenue from the district.
2309+20 (F) To reimburse a municipality in which a district is located
2310+21 for expenditures made by the municipality for local public
2311+22 improvements that are physically located in or physically
2312+23 connected to the district.
2313+24 (G) To reimburse a municipality for rentals paid by the
2314+25 municipality for a building or parking facility that is physically
2315+26 located in or physically connected to the district under any
2316+27 lease entered into under IC 36-1-10.
2317+28 (H) To pay expenses incurred by the development authority for
2318+29 local public improvements that are in the district or serving the
2319+30 district.
2320+31 SECTION 22. IC 36-8-19-6, AS AMENDED BY P.L.95-2022,
2321+32 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2322+33 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 6. (a) To establish or
2323+34 expand a fire protection territory, the legislative bodies of each unit or
2324+35 fire protection district:
2325+36 (1) desiring to establish a fire protection territory; or
2326+37 (2) desiring to expand an existing fire protection territory by:
2327+38 (A) becoming a participating unit in; or
2328+39 (B) approving the addition of a participating unit in;
2329+40 an existing fire protection territory;
2330+41 must adopt an ordinance (in the case of a county or municipality) or a
2331+42 resolution (in the case of a township or a fire protection district).
2332+HB 1085—LS 6819/DI 116 54
2333+1 (b) The ordinance or resolution must meet the following
2334+2 requirements:
2335+3 (1) The ordinance or resolution is identical to the ordinances and
2336+4 resolutions adopted by the other units or fire protection districts
2337+5 desiring to establish or expand the proposed territory.
2338+6 (2) Except as otherwise provided in this subdivision, the
2339+7 ordinance or resolution is adopted after January 1 but before April
2340+8 1. However, for an ordinance or resolution adopted in 2023,
2341+9 the ordinance or resolution must be adopted after January 1,
2342+10 2023, and before August 2, 2023.
2343+11 (3) The ordinance or resolution authorizes the unit or fire
2344+12 protection district to become a party to an agreement for the
2345+13 establishment of a fire protection territory or the expansion of an
2346+14 existing fire protection territory.
2347+15 (4) This subdivision does not apply to an ordinance or
2348+16 resolution adopted in 2023. An ordinance or resolution is
2349+17 adopted after the legislative body holds at least three (3) public
2350+18 hearings to receive public comment on the proposed ordinance or
2351+19 resolution as follows:
2352+20 (A) At least one (1) public hearing must be held at least thirty
2353+21 (30) days before the legislative body votes on the adoption of
2354+22 the ordinance or resolution. At the hearing, the legislative
2355+23 body shall make available to the public the information
2356+24 required by subsection (c) concerning the fiscal impact of the
2357+25 proposed fire protection territory.
2358+26 (B) At least two (2) public hearings must be held after the
2359+27 public hearing in clause (A), with the last public hearing held
2360+28 not later than ten (10) days before the legislative body votes on
2361+29 the adoption of the ordinance or resolution.
2362+30 The legislative body must give notice of the hearings under
2363+31 IC 5-3-1.
2364+32 (5) This subdivision applies to an ordinance or resolution
2365+33 adopted in 2023. An ordinance or resolution is adopted after
2366+34 the legislative body holds at least three (3) public hearings to
2367+35 receive public comment on the proposed ordinance or
22842368 36 resolution as follows:
2285-37 (A) At least one (1) public hearing must be held at least thirty
2286-38 (30) days before the legislative body votes on the adoption of
2287-39 the ordinance or resolution. At the hearing, the legislative
2288-40 body shall make available to the public the information
2289-41 required by subsection (c) concerning the fiscal impact of the
2290-42 proposed fire protection territory.
2291-HB 1085—LS 6819/DI 116 53
2369+37 (A) At least one (1) public hearing must be held at least
2370+38 twenty-five (25) days before the legislative body votes on
2371+39 the adoption of the ordinance or resolution. At the hearing,
2372+40 the legislative body shall make available to the public the
2373+41 information required by subsection (c) concerning the
2374+42 fiscal impact of the proposed fire protection territory.
2375+HB 1085—LS 6819/DI 116 55
22922376 1 (B) At least two (2) public hearings must be held after the
2293-2 public hearing in clause (A), with the last public hearing held
2294-3 not later than ten (10) days before the legislative body votes on
2295-4 the adoption of the ordinance or resolution.
2377+2 public hearing in clause (A), with the last public hearing
2378+3 held not later than five (5) days before the legislative body
2379+4 votes on the adoption of the ordinance or resolution.
22962380 5 The legislative body must give notice of the hearings under
22972381 6 IC 5-3-1.
2298-7 (5) This subdivision applies to an ordinance or resolution
2299-8 adopted in 2023. An ordinance or resolution is adopted after
2300-9 the legislative body holds at least three (3) public hearings to
2301-10 receive public comment on the proposed ordinance or
2302-11 resolution as follows:
2303-12 (A) At least one (1) public hearing must be held at least
2304-13 twenty-five (25) days before the legislative body votes on
2305-14 the adoption of the ordinance or resolution. At the hearing,
2306-15 the legislative body shall make available to the public the
2307-16 information required by subsection (c) concerning the
2308-17 fiscal impact of the proposed fire protection territory.
2309-18 (B) At least two (2) public hearings must be held after the
2310-19 public hearing in clause (A), with the last public hearing
2311-20 held not later than five (5) days before the legislative body
2312-21 votes on the adoption of the ordinance or resolution.
2313-22 The legislative body must give notice of the hearings under
2314-23 IC 5-3-1.
2315-24 (c) The legislative body must make available to the public the
2316-25 following information:
2317-26 (1) The property tax levy, property tax rate, and budget to be
2318-27 imposed or adopted during the first year of the proposed territory
2319-28 for each of the units or fire protection districts that would
2320-29 participate in the proposed territory. If a property tax rate is to be
2321-30 implemented over a number of years as provided in section 7(c)
2322-31 of this chapter, the information under this subdivision must
2323-32 include the amount of the intended property tax rate after having
2324-33 been fully implemented.
2325-34 (2) The estimated effect of the proposed reorganization in the
2326-35 following years on taxpayers in each of the units or fire protection
2327-36 districts that would participate in the proposed territory, including
2328-37 the expected property tax rates, property tax levies, expenditure
2329-38 levels, service levels, and annual debt service payments.
2330-39 (3) The estimated effect of the proposed reorganization on other
2331-40 units in the county in the following years and on local option
2332-41 income taxes, excise taxes, and property tax circuit breaker
2333-42 credits.
2334-HB 1085—LS 6819/DI 116 54
2335-1 (4) A description of the planned services and staffing levels to be
2336-2 provided in the proposed territory.
2337-3 (5) A description of any capital improvements to be provided in
2338-4 the proposed territory.
2339-5 (d) The notice required for a hearing under subsection (b)(4) and
2340-6 (b)(5) shall include all of the following:
2341-7 (1) A list of the provider unit and all participating units in the
2342-8 proposed territory.
2343-9 (2) The date, time, and location of the hearing.
2344-10 (3) The location where the public can inspect the proposed
2345-11 ordinance or resolution.
2346-12 (4) A statement as to whether the proposed ordinance or
2347-13 resolution requires uniform tax rates or different tax rates within
2348-14 the territory.
2349-15 (5) The name and telephone number of a representative of the unit
2350-16 or fire protection district who may be contacted for further
2351-17 information.
2352-18 (6) The proposed levies and tax rates for each participating unit,
2353-19 and whether a tax rate will be implemented over a number of
2354-20 years under section 7(c) of this chapter.
2355-21 (e) The ordinance or resolution adopted under this section shall
2356-22 include at least the following:
2357-23 (1) The boundaries of the proposed territory.
2358-24 (2) The identity of the provider unit and all other participating
2359-25 units desiring to be included within the territory.
2360-26 (3) An agreement to impose:
2361-27 (A) a uniform tax rate upon all of the taxable property within
2362-28 the territory for fire protection services; or
2363-29 (B) different tax rates for fire protection services for the units
2364-30 or fire protection districts desiring to be included within the
2365-31 territory, so long as a tax rate applies uniformly to all of a
2366-32 unit's or fire protection district's taxable property within the
2367-33 territory.
2368-34 (4) An agreement as to how the property that is held by the
2369-35 territory will be disposed of if:
2370-36 (A) a participating unit withdraws from the territory; or
2371-37 (B) the territory is dissolved.
2372-38 (5) The contents of the agreement to establish the territory.
2373-39 (f) An ordinance or a resolution adopted under this section takes
2374-40 effect July 1 of the year the ordinance or resolution is adopted.
2375-41 SECTION 24. An emergency is declared for this act.
2376-HB 1085—LS 6819/DI 116 55
2382+7 (c) The legislative body must make available to the public the
2383+8 following information:
2384+9 (1) The property tax levy, property tax rate, and budget to be
2385+10 imposed or adopted during the first year of the proposed territory
2386+11 for each of the units or fire protection districts that would
2387+12 participate in the proposed territory. If a property tax rate is to be
2388+13 implemented over a number of years as provided in section 7(c)
2389+14 of this chapter, the information under this subdivision must
2390+15 include the amount of the intended property tax rate after having
2391+16 been fully implemented.
2392+17 (2) The estimated effect of the proposed reorganization in the
2393+18 following years on taxpayers in each of the units or fire protection
2394+19 districts that would participate in the proposed territory, including
2395+20 the expected property tax rates, property tax levies, expenditure
2396+21 levels, service levels, and annual debt service payments.
2397+22 (3) The estimated effect of the proposed reorganization on other
2398+23 units in the county in the following years and on local option
2399+24 income taxes, excise taxes, and property tax circuit breaker
2400+25 credits.
2401+26 (4) A description of the planned services and staffing levels to be
2402+27 provided in the proposed territory.
2403+28 (5) A description of any capital improvements to be provided in
2404+29 the proposed territory.
2405+30 (d) The notice required for a hearing under subsection (b)(4) and
2406+31 (b)(5) shall include all of the following:
2407+32 (1) A list of the provider unit and all participating units in the
2408+33 proposed territory.
2409+34 (2) The date, time, and location of the hearing.
2410+35 (3) The location where the public can inspect the proposed
2411+36 ordinance or resolution.
2412+37 (4) A statement as to whether the proposed ordinance or
2413+38 resolution requires uniform tax rates or different tax rates within
2414+39 the territory.
2415+40 (5) The name and telephone number of a representative of the unit
2416+41 or fire protection district who may be contacted for further
2417+42 information.
2418+HB 1085—LS 6819/DI 116 56
2419+1 (6) The proposed levies and tax rates for each participating unit,
2420+2 and whether a tax rate will be implemented over a number of
2421+3 years under section 7(c) of this chapter.
2422+4 (e) The ordinance or resolution adopted under this section shall
2423+5 include at least the following:
2424+6 (1) The boundaries of the proposed territory.
2425+7 (2) The identity of the provider unit and all other participating
2426+8 units desiring to be included within the territory.
2427+9 (3) An agreement to impose:
2428+10 (A) a uniform tax rate upon all of the taxable property within
2429+11 the territory for fire protection services; or
2430+12 (B) different tax rates for fire protection services for the units
2431+13 or fire protection districts desiring to be included within the
2432+14 territory, so long as a tax rate applies uniformly to all of a
2433+15 unit's or fire protection district's taxable property within the
2434+16 territory.
2435+17 (4) An agreement as to how the property that is held by the
2436+18 territory will be disposed of if:
2437+19 (A) a participating unit withdraws from the territory; or
2438+20 (B) the territory is dissolved.
2439+21 (5) The contents of the agreement to establish the territory.
2440+22 (f) An ordinance or a resolution adopted under this section takes
2441+23 effect July 1 of the year the ordinance or resolution is adopted.
2442+24 SECTION 23. An emergency is declared for this act.
2443+HB 1085—LS 6819/DI 116 57
23772444 COMMITTEE REPORT
23782445 Mr. Speaker: Your Committee on Ways and Means, to which was
23792446 referred House Bill 1085, has had the same under consideration and
23802447 begs leave to report the same back to the House with the
23812448 recommendation that said bill be amended as follows:
23822449 Replace the effective date in SECTION 1 with "[EFFECTIVE
23832450 JANUARY 1, 2023 (RETROACTIVE)]".
23842451 Replace the effective dates in SECTIONS 4 through 12 with
23852452 "[EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]".
23862453 Replace the effective date in SECTION 16 with "[EFFECTIVE
23872454 JANUARY 1, 2023 (RETROACTIVE)]".
23882455 Page 1, line 7, delete "IC 36-7-14-39(b)(4);" and insert "IC
23892456 36-7-14-39(b)(5);".
23902457 Page 2, delete lines 4 through 42, begin a new paragraph and insert:
23912458 "SECTION 3. IC 36-7-14-6.1, AS AMENDED BY P.L.55-2016,
23922459 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23932460 JANUARY 1, 2024]: Sec. 6.1. (a) The five (5) commissioners for a
23942461 municipal redevelopment commission shall be appointed as follows:
23952462 (1) Three (3) Two (2) shall be appointed by the municipal
23962463 executive.
23972464 (2) Two (2) shall be appointed by the municipal legislative body.
23982465 (3) Subject to subsection (d), one (1) member shall be
23992466 appointed by the governing body of the school corporation
24002467 located within the commission's territory.
24012468 The municipal executive shall also appoint an individual to serve as a
24022469 nonvoting adviser to the redevelopment commission beginning July 1,
24032470 2008.
24042471 (b) The commissioners for a county redevelopment commission that
24052472 has five (5) members shall be appointed as follows:
24062473 (1) The county executive shall appoint all the members whose
24072474 terms of office begin before January 1, 2008.
24082475 (2) (1) For terms of office beginning after December 31, 2007,
24092476 The county executive shall appoint three (3) two (2) members,
24102477 and the county fiscal body shall appoint two (2) members.
24112478 (2) Subject to subsection (d), one (1) member shall be
24122479 appointed by the governing body of the school corporation
24132480 located within the commission's territory.
24142481 The county executive shall also appoint an individual to serve as a
24152482 nonvoting adviser to the redevelopment commission beginning July 1,
24162483 2008.
24172484 (c) The commissioners for a county redevelopment commission that
2418-HB 1085—LS 6819/DI 116 56
2485+HB 1085—LS 6819/DI 116 58
24192486 has seven (7) members shall be appointed as follows:
24202487 (1) The county executive shall appoint all the members whose
24212488 terms of office begin before January 1, 2008.
24222489 (2) (1) For terms of office beginning after December 31, 2007,
24232490 The county executive shall appoint four (4) three (3) members,
24242491 and the county fiscal body shall appoint three (3) members.
24252492 (2) Subject to subsection (d), one (1) member shall be
24262493 appointed by the governing body of the school corporation
24272494 located within the commission's territory.
24282495 The county executive shall also appoint an individual to serve as a
24292496 nonvoting adviser to the redevelopment commission beginning July 1,
24302497 2008.
24312498 (d) A nonvoting adviser appointed under this section:
24322499 (1) must also be a member of the school board of a school
24332500 corporation that includes all or part of the territory served by the
24342501 redevelopment commission or an individual recommended by the
24352502 school board to the entity that appoints the nonvoting adviser;
24362503 (2) is not considered a member of the redevelopment commission
24372504 for purposes of this chapter but is entitled to attend and
24382505 participate in the proceedings of all meetings of the
24392506 redevelopment commission;
24402507 (3) is not entitled to a salary, per diem, or reimbursement of
24412508 expenses;
24422509 (4) serves for a term of two (2) years and until a successor is
24432510 appointed; and
24442511 (5) serves at the pleasure of the entity that appointed the
24452512 nonvoting adviser.
24462513 (d) If there are multiple school corporations within a
24472514 redevelopment commission's territory, for the first municipal or
24482515 county redevelopment commission member term beginning after
24492516 December 31, 2023, the governing body of the school corporation
24502517 within the commission's territory that has the greatest assessed
24512518 value shall first appoint the member described in subsections
24522519 (a)(3), (b)(2), or (c)(2). For the subsequent member term, the
24532520 governing body of the school corporation within the commission's
24542521 territory that has the second greatest assessed value shall appoint
24552522 the member described in subsections (a)(3), (b)(2), or (c)(2),
24562523 followed by appointment by the governing body of the school
24572524 corporation within the commission's territory that has the third
24582525 greatest assessed value for the next member term, and so on,
24592526 consecutively, until each governing body of a school corporation
24602527 within the commission's territory has appointed the member.
2461-HB 1085—LS 6819/DI 116 57
2528+HB 1085—LS 6819/DI 116 59
24622529 When the governing body of the school corporation within the
24632530 commission's territory that has the lowest assessed value has
24642531 appointed the member, the appointment process starts over with
24652532 the governing body of the school corporation within the
24662533 commission's territory that has the greatest assessed value making
24672534 the appointment.".
24682535 Page 3, delete lines 1 through 12.
24692536 Page 3, between lines 12 and 13, begin a new paragraph and insert:
24702537 "SECTION 5. IC 36-7-14-8, AS AMENDED BY P.L.85-2017,
24712538 SECTION 121, IS AMENDED TO READ AS FOLLOWS
24722539 [EFFECTIVE JULY 1, 2023]: Sec. 8. (a) The redevelopment
24732540 commissioners shall hold a meeting for the purpose of organization not
24742541 later than thirty (30) days after they are appointed and, after that, each
24752542 year on a day that is not a Saturday, a Sunday, or a legal holiday and
24762543 that is their first meeting day of the year. They shall choose one (1) of
24772544 their members as president, another as vice president, and another as
24782545 secretary. The president and vice president shall not have the same
24792546 appointing authority. These officers shall perform the duties usually
24802547 pertaining to their offices and shall serve from the date of their election
24812548 until their successors are elected and qualified.
24822549 (b) The fiscal officer of the unit establishing a redevelopment
24832550 commission is the treasurer of the redevelopment commission.
24842551 Notwithstanding any other provision of this chapter, but subject to
24852552 subsection (c), the treasurer has charge over and is responsible for the
24862553 administration, investment, and disbursement of all funds and accounts
24872554 of the redevelopment commission in accordance with the requirements
24882555 of state laws that apply to other funds and accounts administered by the
24892556 fiscal officer. The treasurer shall report annually to the redevelopment
24902557 commission before April 1.
24912558 (c) The treasurer of the redevelopment commission may disburse
24922559 funds of the redevelopment commission only after the redevelopment
24932560 commission allows and approves the disbursement. However, the
24942561 redevelopment commission may, by rule or resolution, authorize the
24952562 treasurer to make certain types of disbursements before the
24962563 redevelopment commission's allowance and approval at its next regular
24972564 meeting.
24982565 (d) The following apply to funds of the redevelopment commission:
24992566 (1) The funds must be accounted for separately by the unit
25002567 establishing the redevelopment commission and the daily balance
25012568 of the funds must be maintained in a separate ledger statement.
25022569 (2) Except as provided in subsection (e), all funds designated as
25032570 redevelopment commission funds must be accessible to the
2504-HB 1085—LS 6819/DI 116 58
2571+HB 1085—LS 6819/DI 116 60
25052572 redevelopment commission at any time.
25062573 (3) The amount of the daily balance of redevelopment
25072574 commission funds may not be below zero (0) at any time.
25082575 (4) The funds may not be maintained or used in a manner that is
25092576 intended to avoid the waiver procedures and requirements for a
25102577 unit and the redevelopment commission under subsection (e).
25112578 (e) If the fiscal body of a unit determines that it is necessary to
25122579 engage in short term borrowing until the next tax collection period, the
25132580 fiscal body of the unit may request approval from the redevelopment
25142581 commission to waive the requirement in subsection (d)(2). In order to
25152582 waive the requirement under subsection (d)(2), the fiscal body of the
25162583 unit and the redevelopment commission must adopt similar resolutions
25172584 that set forth:
25182585 (1) the amount of the funds designated as redevelopment
25192586 commission funds that are no longer accessible to the
25202587 redevelopment commission under the waiver; and
25212588 (2) an expiration date for the waiver.
25222589 If a loan is made to a unit from funds designated as redevelopment
25232590 funds, the loan must be repaid by the unit and the funds made
25242591 accessible to the redevelopment commission not later than the end of
25252592 the calendar year in which the funds are received by the unit.
25262593 (f) Subsections (d) and (e) do not restrict transfers or uses by a
25272594 redevelopment commission made to meet commitments under a written
25282595 agreement of the redevelopment commission that was entered into
25292596 before January 1, 2016, if the written agreement complied with the
25302597 requirements existing under the law at the time the redevelopment
25312598 commission entered into the written agreement.
25322599 (g) The redevelopment commissioners may adopt the rules and
25332600 bylaws they consider necessary for the proper conduct of their
25342601 proceedings, the carrying out of their duties, and the safeguarding of
25352602 the money and property placed in their custody by this chapter. In
25362603 addition to the annual meeting, the commissioners may, by resolution
25372604 or in accordance with their rules and bylaws, prescribe the date and
25382605 manner of notice of other regular or special meetings.
25392606 (h) This subsection does not apply to a county redevelopment
25402607 commission that consists of seven (7) members. Three (3) of the
25412608 redevelopment commissioners constitute a quorum, and the
25422609 concurrence of three (3) commissioners is necessary to authorize any
25432610 action.
25442611 (i) This subsection applies only to a county redevelopment
25452612 commission that consists of seven (7) members. Four (4) of the
25462613 redevelopment commissioners constitute a quorum, and the
2547-HB 1085—LS 6819/DI 116 59
2614+HB 1085—LS 6819/DI 116 61
25482615 concurrence of four (4) commissioners is necessary to authorize any
25492616 action.
25502617 SECTION 6. IC 36-7-14-12.7 IS ADDED TO THE INDIANA
25512618 CODE AS A NEW SECTION TO READ AS FOLLOWS
25522619 [EFFECTIVE JULY 1, 2023]: Sec. 12.7. (a) Not later than December
25532620 1 each year, the redevelopment commissioners shall file with the
25542621 department of local government finance and with the unit's
25552622 executive and fiscal body a report setting out a spending plan for
25562623 the next calendar year describing planned expenditures.
25572624 (b) Except as provided in subsection (c), a redevelopment
25582625 commission may use money from the redevelopment commission's
25592626 allocation fund described in section 39(b)(5) of this chapter and
25602627 any other fund maintained by the redevelopment commission only
25612628 for the purposes provided in the annual spending plan described in
25622629 subsection (a).
25632630 (c) A redevelopment commission may use money from funds
25642631 described in subsection (b) for the purpose of paying more toward
25652632 debt service obligations, in order to retire debt service earlier,
25662633 regardless of whether that use is listed in the annual spending plan
25672634 described in subsection (a). A redevelopment commission making
25682635 accelerated debt payments under this subsection may retain the
25692636 assessed value associated with the original debt service schedule.
25702637 (d) Early debt retirement described under subsection (c) applies
25712638 only if the early defeasance of debt is allowed according to the
25722639 bond issuance documents.
25732640 SECTION 7. IC 36-7-14-13.5 IS ADDED TO THE INDIANA
25742641 CODE AS A NEW SECTION TO READ AS FOLLOWS
25752642 [EFFECTIVE JULY 1, 2023]: Sec. 13.5. (a) Not later than December
25762643 31 of each year, the redevelopment commissioners shall provide the
25772644 balance of:
25782645 (1) the allocation fund described in section 39(b)(5) of this
25792646 chapter; and
25802647 (2) any other funds maintained by the redevelopment
25812648 commission;
25822649 to the department of local government finance.
25832650 (b) Not later than February of each year, the department of
25842651 local government finance shall compile the information received
25852652 from each redevelopment commission under subsection (a) and
25862653 provide the information to the interim study committee on fiscal
25872654 policy established by IC 2-5-1.3-4.
25882655 (c) This section expires July 1, 2028.".
25892656 Page 4, line 1, delete "39(b)(5)" and insert "39(b)(6)".
2590-HB 1085—LS 6819/DI 116 60
2657+HB 1085—LS 6819/DI 116 62
25912658 Page 6, line 41, delete "39(b)(4)" and insert "39(b)(5)".
25922659 Page 7, line 12, delete "39(b)(4)" and insert "39(b)(5)".
25932660 Page 7, line 18, delete "39(b)(4)" and insert "39(b)(5)".
25942661 Page 8, line 1, delete "39(b)(4)" and insert "39(b)(5)".
25952662 Page 8, line 11, delete "39(b)(4)" and insert "39(b)(5)".
25962663 Page 9, line 19, delete "39(b)(4)" and insert "39(b)(5)".
25972664 Page 9, line 25, delete "39(b)(4)" and insert "39(b)(5)".
25982665 Page 9, line 34, delete "39(b)(4)" and insert "39(b)(5)".
25992666 Page 10, line 8, delete "39(b)(4)" and insert "39(b)(5)".
26002667 Page 10, line 21, delete "39(b)(4)" and insert "39(b)(5)".
26012668 Page 10, between lines 34 and 35, begin a new paragraph and insert:
26022669 "SECTION 10. IC 36-7-14-29.6 IS ADDED TO THE INDIANA
26032670 CODE AS A NEW SECTION TO READ AS FOLLOWS
26042671 [EFFECTIVE UPON PASSAGE]: Sec. 29.6. (a) Except as provided
26052672 in subsection (b), property tax proceeds allocated under this
26062673 chapter that are otherwise authorized under this chapter to be
26072674 expended for purposes related to a redevelopment project that is
26082675 located outside the boundaries of the allocation area may be
26092676 expended for those purposes only if the redevelopment commission
26102677 immediately at the conclusion of the public hearing required under
26112678 section 17 of this chapter adopts a declaratory resolution, and the
26122679 applicable legislative body votes to approve the declaratory
26132680 resolution, that finds that it has been clearly demonstrated that the
26142681 expenditure:
26152682 (1) will directly benefit the allocation area; or
26162683 (2) will result in the creation or retention of jobs in the private
26172684 sector and provide an estimate of how many jobs will be
26182685 created or retained over a specified time period.
26192686 (b) This section does not apply to any transfer of property tax
26202687 proceeds to a a school corporation, an accredited or nonaccredited
26212688 public or private school, or a charter school, including a transfer
26222689 of property tax proceeds for a program under IC 36-7-25-7.".
26232690 Page 13, line 32, delete "excess of the proceeds of" and insert
26242691 "amount determined under subdivision (5)(A) shall be distributed
26252692 according to the following:
26262693 (A) Ten percent (10%) shall be allocated to and, when
26272694 collected, paid to school corporations that maintain an
26282695 attendance area that includes all or part of the allocation
26292696 area. If more than one (1) school corporation maintains an
26302697 attendance area within the allocation area, the distribution
26312698 shall be apportioned based on the allocation attributable to
26322699 each school corporation. A school corporation that receives
2633-HB 1085—LS 6819/DI 116 61
2700+HB 1085—LS 6819/DI 116 63
26342701 a distribution under this clause shall deposit the
26352702 distribution in the school corporation's operations fund
26362703 and may use the distribution only to fund career and
26372704 technical education programs of the applicable school
26382705 corporation.
26392706 (B) Ten percent (10%) shall be allocated to and, when
26402707 collected, paid to each taxing unit that provides police or
26412708 fire services in the allocation area to be used for operating
26422709 or capital expenditures required for providing police and
26432710 fire services in the allocation area.".
26442711 Page 13, delete lines 33 through 42.
26452712 Page 14, delete lines 1 through 6, begin a new line block indented
26462713 and insert:
26472714 "(3) This subdivision applies to a fire protection territory
26482715 established after December 31, 2022. If a unit becomes a
26492716 participating unit of a fire protection territory that is
26502717 established after a declaratory resolution is adopted under
26512718 section 15 of this chapter, the excess of the proceeds of the
26522719 property taxes attributable to an increase in the property tax
26532720 rate for the participating unit of a fire protection territory:
26542721 (A) except as otherwise provided by this subdivision, shall
26552722 be determined as follows:
26562723 STEP ONE: Divide the unit's tax rate for fire protection
26572724 for the year before the establishment of the fire
26582725 protection territory by the participating unit's tax rate
26592726 as part of the fire protection territory.
26602727 STEP TWO: Subtract the STEP ONE amount from one
26612728 (1).
26622729 STEP THREE: Multiply the STEP TWO amount by the
26632730 allocated property tax attributable to the participating
26642731 unit of the fire protection territory; and
26652732 (B) to the extent not otherwise included in subdivisions (1),
26662733 (2), and (4), shall be allocated to and distributed in the
26672734 form of an assessed value pass back to the participating
26682735 unit of the fire protection territory for the assessment date
26692736 with respect to which the allocation is made.
26702737 However, if the redevelopment commission determines that it
26712738 is unable to meet its debt service obligations with regards to
26722739 the allocation area without all or part of the assessed value
26732740 pass back to the participating unit of a fire protection area
26742741 under this subdivision, then the assessed value pass back
26752742 under this subdivision shall be reduced by the amount
2676-HB 1085—LS 6819/DI 116 62
2743+HB 1085—LS 6819/DI 116 64
26772744 necessary for the redevelopment commission to meet its debt
26782745 service obligations of the allocation area.".
26792746 Page 14, line 7, delete "(3)" and insert "(4)".
26802747 Page 14, line 12, delete "and (2)" and insert ", (2), and (3)".
26812748 Page 14, line 15, delete "(4)" and insert "(5)".
26822749 Page 14, line 16, after "(2)," insert "(3),".
26832750 Page 14, line 17, delete "(3)" and insert "(4)".
26842751 Page 16, line 36, delete "(5)" and insert "(6)".
26852752 Page 17, line 2, delete "(4)," and insert "(5),".
26862753 Page 17, line 4, delete "(4)." and insert "(5).".
26872754 Page 17, line 26, delete "(4)" and insert "(5)".
26882755 Page 17, line 33, delete "(4);" and insert "(5);".
26892756 Page 17, line 35, delete "(4);" and insert "(5);".
26902757 Page 17, line 38, strike "allocate to the respective taxing units" and
26912758 insert "use for non-debt, one (1) time purposes within the calendar
26922759 year before allocating the balance of the excess assessed value to
26932760 the respective taxing units in the manner prescribed in subdivision
26942761 (1).".
26952762 Page 17, line 39, strike "in the manner prescribed in subdivision
26962763 (1).".
26972764 Page 18, line 2, delete "(6)" and insert "(7)".
26982765 Page 18, line 2, delete "(5)," and insert "(6),".
26992766 Page 18, line 10, delete "(5)(A)" and insert "(6)(A)".
27002767 Page 18, line 14, delete "(4)" and insert "(5)".
27012768 Page 18, line 16, delete "(4)" and insert "(5)".
27022769 Page 18, line 30, delete "(b)(4) may," and insert "(b)(5) may,".
27032770 Page 18, line 30, delete "(b)(5)," and insert "(b)(6),".
27042771 Page 18, line 32, delete "(b)(4)." and insert "(b)(5).".
27052772 Page 19, line 7, delete "(b)(4)" and insert "(b)(5)".
27062773 Page 19, line 8, delete "(b)(4)" and insert "(b)(5)".
27072774 Page 19, line 12, delete "and (b)(3)" and insert "(b)(3), and (b)(4)".
27082775 Page 19, line 14, delete "(b)(4)" and insert "(b)(5)".
27092776 Page 19, line 15, delete "(b)(4)" and insert "(b)(5)".
27102777 Page 19, line 21, delete "(b)(4)" and insert "(b)(5)".
27112778 Page 19, line 23, delete "and (b)(3)" and insert "(b)(3), and (b)(4)".
27122779 Page 19, line 24, delete "and (b)(3)" and insert "(b)(3), and (b)(4)".
27132780 Page 19, line 30, delete "(b)(4)," and insert "(b)(5),".
27142781 Page 19, line 31, delete "(b)(4)" and insert "(b)(5)".
27152782 Page 20, line 10, delete "(b)(4)" and insert "(b)(5)".
27162783 Page 21, between lines 18 and 19, begin a new paragraph and insert:
27172784 "(m) A redevelopment commission may not adopt an
27182785 amendment to a declaratory resolution that contains an allocation
2719-HB 1085—LS 6819/DI 116 63
2786+HB 1085—LS 6819/DI 116 65
27202787 area provision that extends the expiration date of the allocation
27212788 area provision, as provided in subsection (b). However, after the
27222789 expiration of a previous allocation area provision, a redevelopment
27232790 commission may adopt a declaratory resolution, or an amendment
27242791 to a declaratory resolution, that contains a new allocation area
27252792 provision with a new expiration date, and for which the county
27262793 auditor in which the unit is located shall compute the base assessed
27272794 value for the allocation area using the assessment date immediately
27282795 preceding the effective date of the new allocation provision of the
27292796 declaratory resolution or amendment.
27302797 (n) A redevelopment commission may, pursuant to the approval
27312798 of the local legislative body, create an account for a specific
27322799 infrastructure purpose.
27332800 (o) For a bond issuance related exclusively for infrastructure in
27342801 an allocation area, new bonds may only be issued by an existing
27352802 redevelopment commission between July 1, 2023, and January 1,
27362803 2025.".
27372804 Page 23, line 20, delete "39(b)(4)(A)" and insert "39(b)(5)(A)".
27382805 Page 23, line 20, delete "39(b)(4)(H)" and insert "39(b)(5)(H)".
27392806 Page 23, line 21, delete "39(b)(4)(J)" and insert "39(b)(5)(J)".
27402807 Page 23, line 38, delete "and" and insert ", 39(b)(3), and 39(b)(4)".
27412808 Page 23, line 39, delete "39(b)(3)".
27422809 Page 23, line 41, delete "39(b)(4)" and insert "39(b)(5)".
27432810 Page 24, line 1, delete "39(b)(4)" and insert "39(b)(5)".
27442811 Page 26, line 26, delete "and" and insert ", 39(b)(3), and 39(b)(4)".
27452812 Page 26, line 27, delete "39(b)(3)".
27462813 Page 26, line 29, delete "39(b)(4)" and insert "39(b)(5)".
27472814 Page 26, line 31, delete "39(b)(4)" and insert "39(b)(5)".
27482815 Page 28, line 31, delete "and" and insert ", 39(b)(3), and 39(b)(4)".
27492816 Page 28, line 32, delete "39(b)(3)".
27502817 Page 28, line 34, delete "39(b)(4)" and insert "39(b)(5)".
27512818 Page 28, line 36, delete "39(b)(4)" and insert "39(b)(5)".
27522819 Page 29, line 18, delete "section 39(b)(4)" and insert "section
27532820 39(b)(5)".
27542821 Page 29, line 21, delete "section 39(b)(4)" and insert "section
27552822 39(b)(5)".
27562823 Page 32, line 38, delete "IC 36-7-14-39(b)(4)," and insert "IC
27572824 36-7-14-39(b)(5),".
27582825 Page 45, line 31, delete "IC 36-7-14-39(b)(3)." and insert "IC
27592826 36-7-14-39(b)(4).".
27602827 Page 46, after line 18, begin a new paragraph and insert:
27612828 "SECTION 17. IC 36-8-19-6, AS AMENDED BY P.L.95-2022,
2762-HB 1085—LS 6819/DI 116 64
2829+HB 1085—LS 6819/DI 116 66
27632830 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27642831 JANUARY 1, 2023 (RETROACTIVE)]: Sec. 6. (a) To establish or
27652832 expand a fire protection territory, the legislative bodies of each unit or
27662833 fire protection district:
27672834 (1) desiring to establish a fire protection territory; or
27682835 (2) desiring to expand an existing fire protection territory by:
27692836 (A) becoming a participating unit in; or
27702837 (B) approving the addition of a participating unit in;
27712838 an existing fire protection territory;
27722839 must adopt an ordinance (in the case of a county or municipality) or a
27732840 resolution (in the case of a township or a fire protection district).
27742841 (b) The ordinance or resolution must meet the following
27752842 requirements:
27762843 (1) The ordinance or resolution is identical to the ordinances and
27772844 resolutions adopted by the other units or fire protection districts
27782845 desiring to establish or expand the proposed territory.
27792846 (2) Except as otherwise provided in this subdivision, the
27802847 ordinance or resolution is adopted after January 1 but before April
27812848 1. However, for an ordinance or resolution adopted in 2023,
27822849 the ordinance or resolution must be adopted after January 1,
27832850 2023, and before August 2, 2023.
27842851 (3) The ordinance or resolution authorizes the unit or fire
27852852 protection district to become a party to an agreement for the
27862853 establishment of a fire protection territory or the expansion of an
27872854 existing fire protection territory.
27882855 (4) This subdivision does not apply to an ordinance or
27892856 resolution adopted in 2023. An ordinance or resolution is
27902857 adopted after the legislative body holds at least three (3) public
27912858 hearings to receive public comment on the proposed ordinance or
27922859 resolution as follows:
27932860 (A) At least one (1) public hearing must be held at least thirty
27942861 (30) days before the legislative body votes on the adoption of
27952862 the ordinance or resolution. At the hearing, the legislative
27962863 body shall make available to the public the information
27972864 required by subsection (c) concerning the fiscal impact of the
27982865 proposed fire protection territory.
27992866 (B) At least two (2) public hearings must be held after the
28002867 public hearing in clause (A), with the last public hearing held
28012868 not later than ten (10) days before the legislative body votes on
28022869 the adoption of the ordinance or resolution.
28032870 The legislative body must give notice of the hearings under
28042871 IC 5-3-1.
2805-HB 1085—LS 6819/DI 116 65
2872+HB 1085—LS 6819/DI 116 67
28062873 (5) This subdivision applies to an ordinance or resolution
28072874 adopted in 2023. An ordinance or resolution is adopted after
28082875 the legislative body holds at least three (3) public hearings to
28092876 receive public comment on the proposed ordinance or
28102877 resolution as follows:
28112878 (A) At least one (1) public hearing must be held at least
28122879 twenty-five (25) days before the legislative body votes on
28132880 the adoption of the ordinance or resolution. At the hearing,
28142881 the legislative body shall make available to the public the
28152882 information required by subsection (c) concerning the
28162883 fiscal impact of the proposed fire protection territory.
28172884 (B) At least two (2) public hearings must be held after the
28182885 public hearing in clause (A), with the last public hearing
28192886 held not later than five (5) days before the legislative body
28202887 votes on the adoption of the ordinance or resolution.
28212888 The legislative body must give notice of the hearings under
28222889 IC 5-3-1.
28232890 (c) The legislative body must make available to the public the
28242891 following information:
28252892 (1) The property tax levy, property tax rate, and budget to be
28262893 imposed or adopted during the first year of the proposed territory
28272894 for each of the units or fire protection districts that would
28282895 participate in the proposed territory. If a property tax rate is to be
28292896 implemented over a number of years as provided in section 7(c)
28302897 of this chapter, the information under this subdivision must
28312898 include the amount of the intended property tax rate after having
28322899 been fully implemented.
28332900 (2) The estimated effect of the proposed reorganization in the
28342901 following years on taxpayers in each of the units or fire protection
28352902 districts that would participate in the proposed territory, including
28362903 the expected property tax rates, property tax levies, expenditure
28372904 levels, service levels, and annual debt service payments.
28382905 (3) The estimated effect of the proposed reorganization on other
28392906 units in the county in the following years and on local option
28402907 income taxes, excise taxes, and property tax circuit breaker
28412908 credits.
28422909 (4) A description of the planned services and staffing levels to be
28432910 provided in the proposed territory.
28442911 (5) A description of any capital improvements to be provided in
28452912 the proposed territory.
28462913 (d) The notice required for a hearing under subsection (b)(4) and
28472914 (b)(5) shall include all of the following:
2848-HB 1085—LS 6819/DI 116 66
2915+HB 1085—LS 6819/DI 116 68
28492916 (1) A list of the provider unit and all participating units in the
28502917 proposed territory.
28512918 (2) The date, time, and location of the hearing.
28522919 (3) The location where the public can inspect the proposed
28532920 ordinance or resolution.
28542921 (4) A statement as to whether the proposed ordinance or
28552922 resolution requires uniform tax rates or different tax rates within
28562923 the territory.
28572924 (5) The name and telephone number of a representative of the unit
28582925 or fire protection district who may be contacted for further
28592926 information.
28602927 (6) The proposed levies and tax rates for each participating unit,
28612928 and whether a tax rate will be implemented over a number of
28622929 years under section 7(c) of this chapter.
28632930 (e) The ordinance or resolution adopted under this section shall
28642931 include at least the following:
28652932 (1) The boundaries of the proposed territory.
28662933 (2) The identity of the provider unit and all other participating
28672934 units desiring to be included within the territory.
28682935 (3) An agreement to impose:
28692936 (A) a uniform tax rate upon all of the taxable property within
28702937 the territory for fire protection services; or
28712938 (B) different tax rates for fire protection services for the units
28722939 or fire protection districts desiring to be included within the
28732940 territory, so long as a tax rate applies uniformly to all of a
28742941 unit's or fire protection district's taxable property within the
28752942 territory.
28762943 (4) An agreement as to how the property that is held by the
28772944 territory will be disposed of if:
28782945 (A) a participating unit withdraws from the territory; or
28792946 (B) the territory is dissolved.
28802947 (5) The contents of the agreement to establish the territory.
28812948 (f) An ordinance or a resolution adopted under this section takes
28822949 effect July 1 of the year the ordinance or resolution is adopted.
2883-HB 1085—LS 6819/DI 116 67
2950+HB 1085—LS 6819/DI 116 69
28842951 SECTION 18. An emergency is declared for this act.".
28852952 Renumber all SECTIONS consecutively.
28862953 and when so amended that said bill do pass.
28872954 (Reference is to HB 1085 as introduced.)
28882955 THOMPSON
28892956 Committee Vote: yeas 14, nays 6.
28902957 _____
28912958 HOUSE MOTION
28922959 Mr. Speaker: I move that House Bill 1085 be amended to read as
28932960 follows:
28942961 Page 6, between lines 22 and 23, begin a new paragraph and insert:
28952962 "(b) The department of local government finance shall post fund
28962963 balances received under subsection (a) on the Indiana
28972964 transparency website within ninety (90) days of the receipt of the
28982965 fund balances.".
28992966 Page 6, line 23, delete "(b)" and insert "(c)".
29002967 Page 6, line 28, delete "(c)" and insert "(d)".
29012968 Page 40, between lines 33 and 34, begin a new paragraph and insert:
29022969 "SECTION 17. IC 36-7-15.1-36.4 IS ADDED TO THE INDIANA
29032970 CODE AS A NEW SECTION TO READ AS FOLLOWS
29042971 [EFFECTIVE JULY 1, 2023]: Sec. 36.4. (a) Not later than December
29052972 31 of each year, the redevelopment commissioners shall provide the
29062973 balance of:
29072974 (1) the special fund described in section 53(b)(3) of this
29082975 chapter; and
29092976 (2) any other funds maintained by the redevelopment
29102977 commission;
29112978 to the department of local government finance.
29122979 (b) The department of local government finance shall post fund
29132980 balances received under subsection (a) on the Indiana
29142981 transparency website within ninety (90) days of the receipt of the
29152982 fund balances.
29162983 (c) Not later than February of each year, the department of local
29172984 government finance shall compile the information received from
29182985 the redevelopment commission under subsection (a) and provide
29192986 the information to the interim study committee on fiscal policy
2920-HB 1085—LS 6819/DI 116 68
2987+HB 1085—LS 6819/DI 116 70
29212988 established by IC 2-5-1.3-4.
29222989 (d) This section expires July 1, 2028.".
29232990 Renumber all SECTIONS consecutively.
29242991 (Reference is to HB 1085 as printed February 14, 2023.)
29252992 PRYOR
29262993 _____
29272994 HOUSE MOTION
29282995 Mr. Speaker: I move that House Bill 1085 be amended to read as
29292996 follows:
29302997 Page 17, delete lines 28 through 42, begin a new line block indented
29312998 and insert:
29322999 "(2) This subdivision applies to an allocation area established
29333000 in accordance with section 15 of this chapter after June 30,
29343001 2023. The amount determined under this subdivision shall be
29353002 distributed according to the following:
29363003 (A) The following calculation as set forth in this clause
29373004 applies to an allocation area established by a county or a
29383005 municipality:
29393006 STEP ONE: Determine the amount, if any, of the
29403007 assessed value of the taxable property in the allocation
29413008 area for the most recent assessment date minus the base
29423009 assessed value.
29433010 STEP TWO: Determine the average tax rate per one
29443011 hundred dollars ($100) of assessed value of the school
29453012 corporations' total nonreferendum tax rates per one
29463013 hundred dollars ($100) of assessed value for school
29473014 corporations located in the allocation area.
29483015 STEP THREE: Multiply the amount determined under
29493016 STEP ONE by the average tax rate determined under
29503017 STEP TWO.
29513018 STEP FOUR: Multiply the STEP THREE product by
29523019 five percent (5%).
29533020 The amount determined under STEP FOUR of this clause
29543021 shall be allocated to and, when collected, paid to school
29553022 corporations that maintain an attendance area that
29563023 includes all or part of the allocation area. If more than one
29573024 (1) school corporation maintains an attendance area within
29583025 the allocation area, the distribution shall be apportioned
29593026 based on the allocation attributable to each school
2960-HB 1085—LS 6819/DI 116 69
3027+HB 1085—LS 6819/DI 116 71
29613028 corporation. A school corporation that receives a
29623029 distribution under this clause shall deposit the distribution
29633030 in the school corporation's operations fund and may use
29643031 the distribution only to fund career and technical
29653032 education programs of the applicable school corporation.
29663033 (B) The following calculation as set forth in this clause
29673034 applies only to an allocation area established by a county:
29683035 STEP ONE: Determine the amount, if any, of the
29693036 assessed value of the taxable property in the allocation
29703037 area for the most recent assessment date minus the base
29713038 assessed value.
29723039 STEP TWO: Multiply the amount determined under
29733040 STEP ONE by the county unit's total nonreferendum tax
29743041 rate per one hundred dollars ($100) of assessed value.
29753042 STEP THREE: Multiply the STEP TWO product by five
29763043 percent (5%).
29773044 The amount determined under STEP THREE of this clause
29783045 shall be allocated to and, when collected, paid to each
29793046 county taxing unit that provides police or fire services in
29803047 the allocation area to be used for operating or capital
29813048 expenditures required for providing police and fire
29823049 services in the allocation area.".
29833050 Page 18, delete lines 1 through 7.
29843051 Page 45, delete lines 9 through 27, begin a new line block indented
29853052 and insert:
29863053 "(2) This subdivision applies to an allocation area established
29873054 in accordance with section 8 of this chapter after June 30,
29883055 2023. The amount determined under this subdivision shall be
29893056 distributed according to the following:
29903057 (A) The following calculation set forth in this clause applies
29913058 to school corporations:
29923059 STEP ONE: Determine the amount, if any, of the
29933060 assessed value of the taxable property in the allocation
29943061 area for the most recent assessment date minus the base
29953062 assessed value.
29963063 STEP TWO: Determine the average tax rate per one
29973064 hundred dollars ($100) of assessed value of the school
29983065 corporations' total nonreferendum tax rates per one
29993066 hundred dollars ($100) of assessed value for school
30003067 corporations located in the allocation area.
30013068 STEP THREE: Multiply the amount determined under
30023069 STEP ONE by the average tax rate determined under
3003-HB 1085—LS 6819/DI 116 70
3070+HB 1085—LS 6819/DI 116 72
30043071 STEP TWO.
30053072 STEP FOUR: Multiply the STEP THREE product by
30063073 five percent (5%).
30073074 The amount determined under STEP FOUR of this clause
30083075 shall be allocated to and, when collected, paid to school
30093076 corporations that maintain an attendance area that
30103077 includes all or part of the allocation area. If more than one
30113078 (1) school corporation maintains an attendance area within
30123079 the allocation area, the distribution shall be apportioned
30133080 based on the allocation attributable to each school
30143081 corporation. A school corporation that receives a
30153082 distribution under this subdivision may use the
30163083 distribution only to fund career and technical education
30173084 programs of the applicable school corporation.
30183085 (B) The following calculation set forth in this clause applies
30193086 to police or fire services:
30203087 STEP ONE: Determine the amount, if any, of the
30213088 assessed value of the taxable property in the allocation
30223089 area for the most recent assessment date minus the base
30233090 assessed value.
30243091 STEP TWO: Multiply the amount determined under
30253092 STEP ONE by the county unit's total nonreferendum tax
30263093 rate per one hundred dollars ($100) of assessed value.
30273094 STEP THREE: Multiply the STEP TWO product by five
30283095 percent (5%).
30293096 The amount determined under STEP THREE of this clause
30303097 shall be allocated to and, when collected, paid to the county
30313098 taxing unit that provides police or fire services in the
30323099 allocation area to be used for operating or capital
30333100 expenditures required for providing police and fire
30343101 services in the allocation area.".
30353102 (Reference is to HB 1085 as printed February 14, 2023.)
30363103 CHERRY
3037-HB 1085—LS 6819/DI 116 71
3038-HOUSE MOTION
3039-Mr. Speaker: I move that House Bill 1085 be returned to the second
3040-reading calendar forthwith for the purpose of amendment.
3041-CHERRY
3042-_____
3043-HOUSE MOTION
3044-Mr. Speaker: I move that House Bill 1085 be amended to read as
3045-follows:
3046-Page 2, line 2, delete "IC 36-7-14-39(b)(2), IC 36-7-14-39(l),
3047-IC 36-7-15.1-53(b)(2)," and insert "IC 36-7-14-39(l)".
3048-Page 2, delete lines 6 through 42, begin a new paragraph and insert:
3049-"SECTION 2. IC 36-7-14-3, AS AMENDED BY P.L.149-2014,
3050-SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3051-JANUARY 1, 2024]: Sec. 3. (a) A unit may establish a department of
3052-redevelopment controlled by a board of five (5) four (4) members to be
3053-known as "__________ Redevelopment Commission", designating the
3054-name of the municipality or county. However, in the case of a county,
3055-the county executive may adopt an ordinance providing that the county
3056-redevelopment commission consists of seven (7) six (6) members.
3057-(b) A redevelopment commission and a department of
3058-redevelopment are subject to oversight by the legislative body of the
3059-unit, including a review by the legislative body of the commission's and
3060-department's annual budget. A redevelopment commission and a
3061-department of redevelopment are:
3062-(1) subject to audit by the state board of accounts under IC 5-11;
3063-(2) covered by IC 5-14-1.5 (the public meetings law); and
3064-(3) covered by IC 5-14-3 (the public records law).
3065-(c) Subject to section 3.5 of this chapter, all of the territory within
3066-the corporate boundaries of a municipality constitutes a taxing district
3067-for the purpose of levying and collecting special benefit taxes for
3068-redevelopment purposes as provided in this chapter. Subject to section
3069-3.5 of this chapter, all of the territory in a county, except that within a
3070-municipality that has a redevelopment commission, constitutes a taxing
3071-district for a county.
3072-(d) All of the taxable property within a taxing district is considered
3073-to be benefited by redevelopment projects carried out under this
3074-chapter to the extent of the special taxes levied under this chapter.
3075-SECTION 3. IC 36-7-14-6.1, AS AMENDED BY P.L.55-2016,
3076-HB 1085—LS 6819/DI 116 72
3077-SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3078-JANUARY 1, 2024]: Sec. 6.1. (a) The five (5) four (4) commissioners
3079-for a municipal redevelopment commission shall be appointed as
3080-follows:
3081-(1) Three (3) Two (2) shall be appointed by the municipal
3082-executive.
3083-(2) Two (2) shall be appointed by the municipal legislative body.
3084-The municipal executive shall also appoint an individual to serve as a
3085-nonvoting adviser to the redevelopment commission beginning July 1,
3086-2008.
3087-(b) The commissioners for a county redevelopment commission that
3088-has five (5) four (4) members shall be appointed as follows:
3089-(1) The county executive shall appoint all the members whose
3090-terms of office begin before January 1, 2008.
3091-(2) For terms of office beginning after December 31, 2007, the
3092-county executive shall appoint three (3) two (2) members, and the
3093-county fiscal body shall appoint two (2) members.
3094-The county executive shall also appoint an individual to serve as a
3095-nonvoting adviser to the redevelopment commission beginning July 1,
3096-2008.
3097-(c) The commissioners for a county redevelopment commission that
3098-has seven (7) six (6) members shall be appointed as follows:
3099-(1) The county executive shall appoint all the members whose
3100-terms of office begin before January 1, 2008.
3101-(2) For terms of office beginning after December 31, 2007, the
3102-county executive shall appoint four (4) three (3) members, and
3103-the county fiscal body shall appoint three (3) members.
3104-The county executive shall also appoint an individual to serve as a
3105-nonvoting adviser to the redevelopment commission beginning July 1,
3106-2008.
3107-(d) A nonvoting adviser appointed under this section:
3108-(1) must also be a member of the school board of a school
3109-corporation that includes all or part of the territory served by the
3110-redevelopment commission or an individual recommended by the
3111-school board to the entity that appoints the nonvoting adviser;
3112-(2) is not considered a member of the redevelopment commission
3113-for purposes of this chapter but is entitled to attend and
3114-participate in the proceedings of all meetings of the
3115-redevelopment commission;
3116-(3) is not entitled to a salary, per diem, or reimbursement of
3117-expenses;
3118-(4) serves for a term of two (2) years and until a successor is
3119-HB 1085—LS 6819/DI 116 73
3120-appointed; and
3121-(5) serves at the pleasure of the entity that appointed the
3122-nonvoting adviser.".
3123-Page 3, delete lines 1 through 38.
3124-Page 5, line 24, strike "seven (7)" and insert "six (6)".
3125-Page 5, line 29, strike "seven (7)" and insert "six (6)".
3126-Page 17, delete lines 33 through 42, begin a new line block indented
3127-and insert:
3128-"(2) This subdivision applies to an allocation area established
3129-by a county in accordance with section 15 of this chapter after
3130-June 30, 2023. The amount determined under the following
3131-calculation shall be distributed for police or fire services:
3132-STEP ONE: Determine the amount, if any, of the assessed
3133-value of the taxable property in the allocation area for the
3134-most recent assessment date minus the base assessed value.
3135-STEP TWO: Multiply the amount determined under STEP
3136-ONE by the county unit's total nonreferendum tax rate per
3137-one hundred dollars ($100) of assessed value.
3138-STEP THREE: Multiply the STEP TWO product by five
3139-percent (5%).
3140-The amount determined under STEP THREE of this
3141-subdivision shall be allocated to and, when collected, paid to
3142-each county taxing unit that provides police or fire services in
3143-the allocation area to be used for operating or capital
3144-expenditures required for providing police and fire services
3145-in the allocation area.".
3146-Page 18, delete lines 1 through 40.
3147-Page 27, line 1, delete "corporation in the manner described in" and
3148-insert "corporation.".
3149-Page 27, delete line 2.
3150-Page 27, line 18, delete "for" and insert "to".
3151-Page 46, delete lines 20 through 42, begin a new line block indented
3152-and insert:
3153-"(2) This subdivision applies to an allocation area established
3154-in accordance with section 8 of this chapter after June 30,
3155-2023. The amount determined under this subdivision shall be
3156-distributed for police or fire services according to the
3157-following calculation:
3158-STEP ONE: Determine the amount, if any, of the assessed
3159-value of the taxable property in the allocation area for the
3160-most recent assessment date minus the base assessed value.
3161-STEP TWO: Multiply the amount determined under STEP
3162-HB 1085—LS 6819/DI 116 74
3163-ONE by the county unit's total nonreferendum tax rate per
3164-one hundred dollars ($100) of assessed value.
3165-STEP THREE: Multiply the STEP TWO product by five
3166-percent (5%).
3167-The amount determined under STEP THREE of this
3168-subdivision shall be allocated to and, when collected, paid to
3169-the county taxing unit that provides police or fire services in
3170-the allocation area to be used for operating or capital
3171-expenditures required for providing police and fire services
3172-in the allocation area.".
3173-Page 47, delete lines 1 through 25.
3174-Page 52, line 25, delete "corporation in the manner described in"
3175-and insert "corporation.".
3176-Page 52, delete line 26.
3177-Renumber all SECTIONS consecutively.
3178-(Reference is to HB 1085 as reprinted February 17, 2023.)
3179- CLERE
31803104 HB 1085—LS 6819/DI 116