Indiana 2023 Regular Session

Indiana Senate Bill SB0045 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 45
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1; IC 8-22-3.5-11; IC 36-7.
7	7	Synopsis: Elimination of annual adjustments to assessed values.
8	8	Eliminates the annual adjustments (or "trending") to assessed values of
9	9	certain real property for assessment dates beginning after December 31,
10	10	2023. Retains the provisions in current law that require four year
11	11	cyclical reassessments. Allows a reassessment plan for the four year
12	12	cyclical reassessments to include trending factors in the plan. Does not
13	13	eliminate the annual adjustment for agricultural land. Makes
14	14	conforming changes. Makes technical corrections.
15	15	Effective: January 1, 2024.
16	16	Niemeyer
17	17	January 9, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
18	18	2023 IN 45—LS 6138/DI 120 Introduced
19	19	First Regular Session of the 123rd General Assembly (2023)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2022 Regular Session of the General Assembly.
29	29	SENATE BILL No. 45
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning
31	31	taxation.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 6-1.1-4-4.2, AS AMENDED BY P.L.111-2014,
34	34	2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35	35	3 JANUARY 1, 2024]: Sec. 4.2. (a) The county assessor of each county
36	36	4 shall, before July 1, 2013, and before May 1 of every fourth year
37	37	5 thereafter, prepare and submit to the department of local government
38	38	6 finance a reassessment plan for the county. The following apply to a
39	39	7 reassessment plan prepared and submitted under this section:
40	40	8 (1) The reassessment plan is subject to approval by the
41	41	9 department of local government finance. The department of local
42	42	10 government finance shall complete its review and approval of the
43	43	11 reassessment plan before:
44	44	12 (A) March 1, 2015; and
45	45	13 (B) January 1 of each subsequent year that follows a year in
46	46	14 which the reassessment plan is submitted by the county.
47	47	15 (2) The department of local government finance shall determine
48	48	16 the classes of real property to be used for purposes of this section.
49	49	17 (3) Except as provided in subsection (b), the reassessment plan
50	50	2023 IN 45—LS 6138/DI 120 2
51	51	1 must divide all parcels of real property in the county into four (4)
52	52	2 different groups of parcels. Each group of parcels must contain
53	53	3 approximately twenty-five percent (25%) of the parcels within
54	54	4 each class of real property in the county.
55	55	5 (4) Except as provided in subsection (b), all real property in each
56	56	6 group of parcels shall be reassessed under the county's
57	57	7 reassessment plan once during each four (4) year cycle.
58	58	8 (5) The reassessment of a group of parcels in a particular class of
59	59	9 real property shall begin on May 1 of a year.
60	60	10 (6) The reassessment of parcels:
61	61	11 (A) must include a physical inspection of each parcel of real
62	62	12 property in the group of parcels that is being reassessed; and
63	63	13 (B) shall be completed on or before January 1 of the year after
64	64	14 the year in which the reassessment of the group of parcels
65	65	15 begins.
66	66	16 (7) For real property included in a group of parcels that is
67	67	17 reassessed, the reassessment is the basis for taxes payable in the
68	68	18 year following the year in which the reassessment is to be
69	69	19 completed.
70	70	20 (8) The reassessment plan must specify the dates by which the
71	71	21 assessor must submit land values under section 13.6 of this
72	72	22 chapter to the county property tax assessment board of appeals.
73	73	23 (9) Subject to review and approval by the department of local
74	74	24 government finance, the county assessor may modify the
75	75	25 reassessment plan.
76	76	26 (10) Beginning after December 31, 2023, a reassessment plan
77	77	27 may include a system for adjusting the assessed value of
78	78	28 groups of parcels that are reassessed under the plan to
79	79	29 account for changes in value in those years since a
80	80	30 reassessment of the parcels last took effect. A system must
81	81	31 include characteristics that do the following:
82	82	32 (A) Promote uniform and equal assessment of real
83	83	33 property within and across classifications.
84	84	34 (B) Require that assessing officials:
85	85	35 (i) reevaluate the factors that affect value;
86	86	36 (ii) express the interactions of those factors
87	87	37 mathematically;
88	88	38 (iii) use mass appraisal techniques to estimate updated
89	89	39 property values within statistical measures of accuracy;
90	90	40 and
91	91	41 (iv) provide notice to taxpayers of an assessment increase
92	92	42 that results from the application of annual adjustments.
93	93	2023 IN 45—LS 6138/DI 120 3
94	94	1 (C) Prescribe procedures that permit the application of the
95	95	2 adjustment percentages in an efficient manner by assessing
96	96	3 officials.
97	97	4 (b) A county may submit a reassessment plan that provides for
98	98	5 reassessing more than twenty-five percent (25%) of all parcels of real
99	99	6 property in the county in a particular year. A plan may provide that all
100	100	7 parcels are to be reassessed in one (1) year. However, a plan must
101	101	8 cover a four (4) year period. All real property in each group of parcels
102	102	9 shall be reassessed under the county's reassessment plan once during
103	103	10 each reassessment cycle.
104	104	11 (c) The reassessment of the first group of parcels under a county's
105	105	12 reassessment plan shall begin on July 1, 2014, and shall be completed
106	106	13 on or before January 1, 2015.
107	107	14 (d) The department of local government finance may adopt rules to
108	108	15 govern the reassessment of property under county reassessment plans.
109	109	16 SECTION 2. IC 6-1.1-4-4.5 IS REPEALED [EFFECTIVE
110	110	17 JANUARY 1, 2024]. Sec. 4.5. (a) The department of local government
111	111	18 finance shall adopt rules establishing a system for annually adjusting
112	112	19 the assessed value of real property to account for changes in value in
113	113	20 those years since a reassessment under section 4.2 of this chapter for
114	114	21 the property last took effect.
115	115	22 (b) Subject to subsection (f), the system must be applied to adjust
116	116	23 assessed values beginning with the 2006 assessment date and each year
117	117	24 thereafter that is not a year in which a reassessment under section 4.2
118	118	25 of this chapter for the property becomes effective.
119	119	26 (c) The rules adopted under subsection (a) must include the
120	120	27 following characteristics in the system:
121	121	28 (1) Promote uniform and equal assessment of real property within
122	122	29 and across classifications.
123	123	30 (2) Require that assessing officials:
124	124	31 (A) reevaluate the factors that affect value;
125	125	32 (B) express the interactions of those factors mathematically;
126	126	33 (C) use mass appraisal techniques to estimate updated property
127	127	34 values within statistical measures of accuracy; and
128	128	35 (D) provide notice to taxpayers of an assessment increase that
129	129	36 results from the application of annual adjustments.
130	130	37 (3) Prescribe procedures that permit the application of the
131	131	38 adjustment percentages in an efficient manner by assessing
132	132	39 officials.
133	133	40 (d) The department of local government finance must review and
134	134	41 certify each annual adjustment determined under this section.
135	135	42 (e) For an assessment beginning after December 31, 2022,
136	136	2023 IN 45—LS 6138/DI 120 4
137	137	1 agricultural improvements such as but not limited to barns, grain bins,
138	138	2 or silos on land assessed as agricultural shall not be adjusted using
139	139	3 factors, such as neighborhood delineation, that are appropriate for use
140	140	4 in adjusting residential, commercial, and industrial real property. Those
141	141	5 portions of agricultural parcels that include land and buildings not used
142	142	6 for an agricultural purpose, such as homes, homesites, and excess
143	143	7 residential land and commercial or industrial land and buildings, shall
144	144	8 be adjusted by the factor or factors developed for other similar property
145	145	9 within the geographic stratification. The residential portion of
146	146	10 agricultural properties shall be adjusted by the factors applied to
147	147	11 similar residential purposes.
148	148	12 (f) In making the annual determination of the base rate to satisfy the
149	149	13 requirement for an annual adjustment for each assessment date, the
150	150	14 department of local government finance shall not later than March 1 of
151	151	15 each year determine the base rate using the methodology reflected in
152	152	16 Table 2-18 of Book 1, Chapter 2 of the department of local government
153	153	17 finance's Real Property Assessment Guidelines (as in effect on January
154	154	18 1, 2005), except that the department shall adjust the methodology as
155	155	19 follows:
156	156	20 (1) Use a six (6) year rolling average adjusted under subdivision
157	157	21 (3) instead of a four (4) year rolling average.
158	158	22 (2) Use the data from the six (6) most recent years preceding the
159	159	23 year in which the assessment date occurs for which data is
160	160	24 available, before one (1) of those six (6) years is eliminated under
161	161	25 subdivision (3) when determining the rolling average.
162	162	26 (3) Eliminate in the calculation of the rolling average the year
163	163	27 among the six (6) years for which the highest market value in use
164	164	28 of agricultural land is determined.
165	165	29 (4) After determining a preliminary base rate that would apply for
166	166	30 the assessment date without applying the adjustment under this
167	167	31 subdivision, the department of local government finance shall
168	168	32 adjust the preliminary base rate as follows:
169	169	33 (A) If the preliminary base rate for the assessment date would
170	170	34 be at least ten percent (10%) greater than the final base rate
171	171	35 determined for the preceding assessment date, a capitalization
172	172	36 rate of eight percent (8%) shall be used to determine the final
173	173	37 base rate.
174	174	38 (B) If the preliminary base rate for the assessment date would
175	175	39 be at least ten percent (10%) less than the final base rate
176	176	40 determined for the preceding assessment date, a capitalization
177	177	41 rate of six percent (6%) shall be used to determine the final
178	178	42 base rate.
179	179	2023 IN 45—LS 6138/DI 120 5
180	180	1 (C) If neither clause (A) nor clause (B) applies, a capitalization
181	181	2 rate of seven percent (7%) shall be used to determine the final
182	182	3 base rate.
183	183	4 (D) In the case of a market value in use for a year that is used
184	184	5 in the calculation of the six (6) year rolling average under
185	185	6 subdivision (1) for purposes of determining the base rate for
186	186	7 the assessment date:
187	187	8 (i) that market value in use shall be recalculated by using the
188	188	9 capitalization rate determined under clauses (A) through (C)
189	189	10 for the calculation of the base rate for the assessment date;
190	190	11 and
191	191	12 (ii) the market value in use recalculated under item (i) shall
192	192	13 be used in the calculation of the six (6) year rolling average
193	193	14 under subdivision (1).
194	194	15 (g) For assessment dates after December 31, 2009, an adjustment in
195	195	16 the assessed value of real property under this section shall be based on
196	196	17 the estimated true tax value of the property on the assessment date that
197	197	18 is the basis for taxes payable on that real property.
198	198	19 (h) The department shall release the department's annual
199	199	20 determination of the base rate on or before March 1 of each year.
200	200	21 SECTION 3. IC 6-1.1-4-4.6 IS REPEALED [EFFECTIVE
201	201	22 JANUARY 1, 2024]. Sec. 4.6. (a) If a county assessor fails before July
202	202	23 2 of a particular year for which an adjustment to the assessed value of
203	203	24 real property applies under section 4.5 of this chapter to prepare and
204	204	25 deliver to the county auditor a complete detailed list of all of the real
205	205	26 property listed for taxation in the county as required by IC 6-1.1-5-14
206	206	27 and at least one hundred eighty (180) days have elapsed after the
207	207	28 deadline specified in IC 6-1.1-5-14 for the county assessor to deliver
208	208	29 the list, the department of local government finance may develop
209	209	30 annual adjustment factors under this section for that year. In developing
210	210	31 annual adjustment factors under this section, the department of local
211	211	32 government finance shall use data in its possession that is obtained
212	212	33 from:
213	213	34 (1) the county assessor; or
214	214	35 (2) any of the sources listed in the rule, including county or state
215	215	36 sales data, government studies, ratio studies, cost and depreciation
216	216	37 tables, and other market analyses.
217	217	38 (b) Using the data described in subsection (a), the department of
218	218	39 local government finance shall propose to establish annual adjustment
219	219	40 factors for the affected tax districts for one (1) or more of the classes
220	220	41 of real property. The proposal may provide for the equalization of
221	221	42 annual adjustment factors in the affected township or county and in
222	222	2023 IN 45—LS 6138/DI 120 6
223	223	1 adjacent areas. The department of local government finance shall issue
224	224	2 notice and provide opportunity for hearing in accordance with
225	225	3 IC 6-1.1-14-4 and IC 6-1.1-14-9, as applicable, before issuing final
226	226	4 annual adjustment factors.
227	227	5 (c) The annual adjustment factors finally determined by the
228	228	6 department of local government finance after the hearing required
229	229	7 under subsection (b) apply to the annual adjustment of real property
230	230	8 under section 4.5 of this chapter for:
231	231	9 (1) the assessment date; and
232	232	10 (2) the real property;
233	233	11 specified in the final determination of the department of local
234	234	12 government finance.
235	235	13 SECTION 4. IC 6-1.1-4-4.9 IS ADDED TO THE INDIANA CODE
236	236	14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
237	237	15 JANUARY 1, 2024]: Sec. 4.9. Except as provided in section 13.2 of
238	238	16 this chapter, the annual adjustments to assessed value of real
239	239	17 property under section 4.5 of this chapter (before its repeal on
240	240	18 January 1, 2024) and section 4.6 of this chapter (before its repeal
241	241	19 on January 1, 2024) apply only to assessment dates before January
242	242	20 1, 2024.
243	243	21 SECTION 5. IC 6-1.1-4-13.2, AS AMENDED BY P.L.180-2016,
244	244	22 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
245	245	23 JANUARY 1, 2024]: Sec. 13.2. (a) The assessed value of
246	246	24 agricultural land shall be annually adjusted to account for changes
247	247	25 in value in those years since a reassessment under section 4.2 of
248	248	26 this chapter for the property last took effect.
249	249	27 (b) The department of local government finance shall review
250	250	28 and certify each annual adjustment determined for agricultural
251	251	29 land under this section.
252	252	30 (c) Notwithstanding the provisions of this chapter and any real
253	253	31 property assessment guidelines of the department of local government
254	254	32 finance, for the property tax assessment of agricultural land for the
255	255	33 2015 assessment date, the statewide agricultural land base rate value
256	256	34 per acre used to determine the value of agricultural land is two
257	257	35 thousand fifty dollars ($2,050).
258	258	36 (d) In making the annual determination of the base rate to
259	259	37 satisfy the requirement for an annual adjustment under subsection
260	260	38 (a) for the January 1, 2016, assessment date and each assessment
261	261	39 date thereafter, the department of local government finance shall
262	262	40 not later than March 1 of each year determine the base rate using
263	263	41 the methodology reflected in Table 2-18 of Book 1, Chapter 2 of the
264	264	42 department of local government finance's Real Property
265	265	2023 IN 45—LS 6138/DI 120 7
266	266	1 Assessment Guidelines (as in effect on January 1, 2005), except that
267	267	2 the department shall adjust the methodology as follows:
268	268	3 (1) Use a six (6) year rolling average adjusted under
269	269	4 subdivision (3) instead of a four (4) year rolling average.
270	270	5 (2) Use the data from the six (6) most recent years preceding
271	271	6 the year in which the assessment date occurs for which data
272	272	7 is available, before one (1) of those six (6) years is eliminated
273	273	8 under subdivision (3) when determining the rolling average.
274	274	9 (3) Eliminate in the calculation of the rolling average the year
275	275	10 among the six (6) years for which the highest market value in
276	276	11 use of agricultural land is determined.
277	277	12 (4) After determining a preliminary base rate that would
278	278	13 apply for the assessment date without applying the
279	279	14 adjustment under this subdivision, the department of local
280	280	15 government finance shall adjust the preliminary base rate as
281	281	16 follows:
282	282	17 (A) If the preliminary base rate for the assessment date
283	283	18 would be at least ten percent (10%) greater than the final
284	284	19 base rate determined for the preceding assessment date, a
285	285	20 capitalization rate of eight percent (8%) shall be used to
286	286	21 determine the final base rate.
287	287	22 (B) If the preliminary base rate for the assessment date
288	288	23 would be at least ten percent (10%) less than the final base
289	289	24 rate determined for the preceding assessment date, a
290	290	25 capitalization rate of six percent (6%) shall be used to
291	291	26 determine the final base rate.
292	292	27 (C) If neither clause (A) nor clause (B) applies, a
293	293	28 capitalization rate of seven percent (7%) shall be used to
294	294	29 determine the final base rate.
295	295	30 (D) In the case of a market value in use for a year that is
296	296	31 used in the calculation of the six (6) year rolling average
297	297	32 under subdivision (1) for purposes of determining the base
298	298	33 rate for the assessment date:
299	299	34 (i) that market value in use shall be recalculated by using
300	300	35 the capitalization rate determined under clauses (A)
301	301	36 through (C) for the calculation of the base rate for the
302	302	37 assessment date; and
303	303	38 (ii) the market value in use recalculated under item (i)
304	304	39 shall be used in the calculation of the six (6) year rolling
305	305	40 average under subdivision (1).
306	306	41 (e) For assessment dates after December 31, 2009, an
307	307	42 adjustment in the assessed value of real property under this section
308	308	2023 IN 45—LS 6138/DI 120 8
309	309	1 shall be based on the estimated true tax value of the property on
310	310	2 the assessment date that is the basis for taxes payable on that real
311	311	3 property.
312	312	4 (f) The department shall release the department's annual
313	313	5 determination of the base rate on or before March 1 of each year.
314	314	6 SECTION 6. IC 6-1.1-4-16, AS AMENDED BY P.L.86-2018,
315	315	7 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
316	316	8 JANUARY 1, 2024]: Sec. 16. (a) For purposes of making a
317	317	9 reassessment of real property under section 4.2 of this chapter or
318	318	10 annual adjustments under section 4.5 13.2 of this chapter for
319	319	11 agricultural land, a township assessor (if any) and a county assessor
320	320	12 may employ:
321	321	13 (1) deputies;
322	322	14 (2) employees; and
323	323	15 (3) technical advisors who are:
324	324	16 (A) qualified to determine real property values;
325	325	17 (B) professional appraisers certified under 50 IAC 15; and
326	326	18 (C) employed either on a full-time or a part-time basis, subject
327	327	19 to sections 18.5 and 19.5 of this chapter.
328	328	20 (b) The county council of each county shall appropriate the funds
329	329	21 necessary for the employment of deputies, employees, or technical
330	330	22 advisors employed under subsection (a). of this section.
331	331	23 SECTION 7. IC 6-1.1-4-22, AS AMENDED BY P.L.178-2021,
332	332	24 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
333	333	25 JANUARY 1, 2024]: Sec. 22. (a) If any assessing official assesses or
334	334	26 reassesses any real property under this article (including an annual
335	335	27 adjustment for agricultural land under section 4.5 13.2 of this
336	336	28 chapter), the official shall give notice to the taxpayer and the county
337	337	29 assessor, by mail or by using electronic mail that includes a secure
338	338	30 Internet link to the information in the notice, of the amount of the
339	339	31 assessment or reassessment.
340	340	32 (b) Each township or county assessor shall provide the notice
341	341	33 required by this section by the earlier of:
342	342	34 (1) ninety (90) days after the assessor:
343	343	35 (A) completes the appraisal of a parcel; or
344	344	36 (B) receives a report for a parcel from a professional appraiser
345	345	37 or professional appraisal firm; or
346	346	38 (2) April 10 of the year containing the assessment date for which
347	347	39 the assessment or reassessment first applies, if the assessment
348	348	40 date occurs in a year that ends before January 1, 2016, and
349	349	41 February 10 of the year containing the assessment date for which
350	350	42 the assessment or reassessment first applies, if the assessment
351	351	2023 IN 45—LS 6138/DI 120 9
352	352	1 date occurs in a year that begins after December 31, 2015.
353	353	2 (c) The notice required by this section is in addition to any required
354	354	3 notice of assessment or reassessment included in a property tax
355	355	4 statement under IC 6-1.1-22 or IC 6-1.1-22.5.
356	356	5 (d) The notice required by this section must include notice to the
357	357	6 person of the opportunity to appeal the assessed valuation under
358	358	7 IC 6-1.1-15-1.1.
359	359	8 (e) Notice of the opportunity to appeal the assessed valuation
360	360	9 required under subsection (d) must include the following:
361	361	10 (1) The procedure that a taxpayer must follow to appeal the
362	362	11 assessment or reassessment.
363	363	12 (2) The forms that must be filed for an appeal of the assessment
364	364	13 or reassessment.
365	365	14 (3) Notice that an appeal of the assessment or reassessment
366	366	15 requires evidence relevant to the true tax value of the taxpayer's
367	367	16 property as of the assessment date.
368	368	17 (f) The notice required by this section must include notice to the
369	369	18 taxpayer of the taxpayer's right to submit a written complaint to the
370	370	19 department under IC 6-1.1-35.7-4(b) if a taxpayer has reason to believe
371	371	20 that the township assessor, the county assessor, an employee of the
372	372	21 township assessor or county assessor, or an appraiser has violated
373	373	22 IC 6-1.1-35.7-3 or IC 6-1.1-35.7-4(a). The notice required under this
374	374	23 subsection must include the procedure that a taxpayer must follow to
375	375	24 submit the written complaint to the department.
376	376	25 SECTION 8. IC 6-1.1-4-27.5, AS AMENDED BY P.L.5-2015,
377	377	26 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
378	378	27 JANUARY 1, 2024]: Sec. 27.5. (a) The auditor of each county shall
379	379	28 establish a property reassessment fund. The county treasurer shall
380	380	29 deposit all collections resulting from the property taxes that the county
381	381	30 levies for the county's property reassessment fund.
382	382	31 (b) With respect to a reassessment of real property under a county's
383	383	32 reassessment plan under section 4.2 of this chapter, the county council
384	384	33 of each county shall, for property taxes due each year, levy against all
385	385	34 the taxable property in the county an amount equal to the estimated
386	386	35 costs of the reassessment under section 28.5 of this chapter for the
387	387	36 group of parcels to be reassessed in that year.
388	388	37 (c) The county assessor may petition the county fiscal body to
389	389	38 increase the levy under subsection (b) to pay for the costs of:
390	390	39 (1) a reassessment of one (1) or more groups of parcels under a
391	391	40 county's reassessment plan prepared under section 4.2 of this
392	392	41 chapter;
393	393	42 (2) verification under 50 IAC 27-4-7 of sales disclosure forms
394	394	2023 IN 45—LS 6138/DI 120 10
395	395	1 forwarded to the county assessor under IC 6-1.1-5.5-3; or
396	396	2 (3) processing annual adjustments for agricultural land under
397	397	3 section 4.5 13.2 of this chapter.
398	398	4 The assessor must document the needs and reasons for the increased
399	399	5 funding.
400	400	6 (d) This subsection applies to an assessment date beginning after
401	401	7 December 31, 2023. If a county fiscal body increased the levy under
402	402	8 subsection (b) to pay for the costs of processing annual adjustments
403	403	9 under section 4.5 of this chapter (before its repeal on January 1,
404	404	10 2024), the county fiscal body shall reduce the levy under subsection
405	405	11 (b) by an amount equal to:
406	406	12 (1) the amount of the prior increase imposed to pay for the
407	407	13 costs of processing annual adjustments before January 1,
408	408	14 2024; minus
409	409	15 (2) the relative amount of the prior increase in subdivision (1)
410	410	16 that is attributable to the costs of processing annual
411	411	17 adjustments for agricultural land under section 13.2 of this
412	412	18 chapter.
413	413	19 (d) (e) If the county fiscal body denies a petition under subsection
414	414	20 (c), the county assessor may appeal to the department of local
415	415	21 government finance. The department of local government finance shall:
416	416	22 (1) hear the appeal; and
417	417	23 (2) determine whether the additional levy is necessary.
418	418	24 SECTION 9. IC 6-1.1-4-28.5, AS AMENDED BY P.L.86-2018,
419	419	25 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
420	420	26 JANUARY 1, 2024]: Sec. 28.5. (a) Money assigned to a property
421	421	27 reassessment fund under section 27.5 of this chapter may be used only
422	422	28 to pay the costs of:
423	423	29 (1) the reassessment of one (1) or more groups of parcels under
424	424	30 a county's reassessment plan prepared under section 4.2 of this
425	425	31 chapter, including the computerization of assessment records;
426	426	32 (2) payments to assessing officials and hearing officers for county
427	427	33 property tax assessment boards of appeals under IC 6-1.1-35.2;
428	428	34 (3) the development or updating of detailed soil survey data by
429	429	35 the United States Department of Agriculture or its successor
430	430	36 agency;
431	431	37 (4) the updating of plat books;
432	432	38 (5) payments for the salary of permanent staff or for the
433	433	39 contractual services of temporary staff who are necessary to assist
434	434	40 assessing officials;
435	435	41 (6) making annual adjustments for agricultural land under
436	436	42 section 4.5 13.2 of this chapter; and
437	437	2023 IN 45—LS 6138/DI 120 11
438	438	1 (7) the verification under 50 IAC 27-4-7 of sales disclosure forms
439	439	2 forwarded to:
440	440	3 (A) the county assessor; or
441	441	4 (B) township assessors (if any);
442	442	5 under IC 6-1.1-5.5-3.
443	443	6 Money in a property reassessment fund may not be transferred or
444	444	7 reassigned to any other fund and may not be used for any purposes
445	445	8 other than those set forth in this section.
446	446	9 (b) All counties shall use modern, detailed soil maps in the
447	447	10 reassessment of agricultural land.
448	448	11 (c) The county treasurer of each county shall, in accordance with
449	449	12 IC 5-13-9, invest any money accumulated in the property reassessment
450	450	13 fund. Any interest received from investment of the money shall be paid
451	451	14 into the property reassessment fund.
452	452	15 (d) An appropriation under this section must be approved by the
453	453	16 fiscal body of the county after the review and recommendation of the
454	454	17 county assessor. However, in a county with a township assessor in
455	455	18 every township, the county assessor does not review an appropriation
456	456	19 under this section, and only the fiscal body must approve an
457	457	20 appropriation under this section.
458	458	21 SECTION 10. IC 6-1.1-4-42, AS AMENDED BY P.L.159-2020,
459	459	22 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
460	460	23 JANUARY 1, 2024]: Sec. 42. (a) This section applies to assessment
461	461	24 dates after January 15, 2010.
462	462	25 (b) The following definitions apply throughout this section:
463	463	26 (1) "Golf course" means an area of land predominately used to
464	464	27 play the game of golf and associated yard improvements. A golf
465	465	28 course consists of a series of holes, each consisting of a teeing
466	466	29 area, fairway, rough and other hazards, and the green with the pin
467	467	30 and cup.
468	468	31 (2) "Yard improvements" include a clubhouse, irrigation systems,
469	469	32 a pro shop, a maintenance building, a driving range, a structure
470	470	33 for food and beverage services, or other buildings associated with
471	471	34 the operation of and included in the net operating income of a golf
472	472	35 course.
473	473	36 (c) The true tax value of real property regularly used as a golf course
474	474	37 is the valuation determined by applying the income capitalization
475	475	38 appraisal approach. The income capitalization approach used to
476	476	39 determine the true tax value of a golf course must:
477	477	40 (1) incorporate an applicable income capitalization method and
478	478	41 appropriate capitalization rates that are developed and used in
479	479	42 computations that lead to an indication of value commensurate
480	480	2023 IN 45—LS 6138/DI 120 12
481	481	1 with the risks for the subject property use;
482	482	2 (2) provide for the uniform and equal assessment of golf courses;
483	483	3 and
484	484	4 (3) exclude the value of personal property, intangible property,
485	485	5 and income derived from personal or intangible property.
486	486	6 (d) For assessment dates after January 15, 2010, and before March
487	487	7 1, 2012, a township assessor (if any) or the county assessor shall gather
488	488	8 and process information from the owner of a golf course to carry out
489	489	9 this section in accordance with the rules adopted by the department of
490	490	10 local government finance under IC 4-22-2.
491	491	11 (e) For assessment dates after February 28, 2012, the department of
492	492	12 local government finance shall, by rules adopted under IC 4-22-2,
493	493	13 establish uniform income capitalization rates annually and procedures
494	494	14 to be used for the assessment of golf courses. The department of local
495	495	15 government finance may rely on recognized sources of industry
496	496	16 capitalization rates. Assessing officials shall use the procedures
497	497	17 adopted by the department of local government finance to assess and
498	498	18 reassess and annually adjust the assessed value of golf courses.
499	499	19 (f) The department of local government finance may prescribe
500	500	20 procedures, forms, and due dates for the collection from the owners or
501	501	21 operators of golf courses of the necessary earnings, income, profits,
502	502	22 losses, and expenditures data necessary to carry out this section. An
503	503	23 owner or operator of a golf course shall comply with the procedures
504	504	24 and reporting schedules prescribed by the department of local
505	505	25 government finance.
506	506	26 (g) On or before December 31 of each year, assessing officials shall
507	507	27 solicit, and the owners or operators of a golf course shall provide to the
508	508	28 assessing officials, data for the gross income and allowable operating
509	509	29 expenses for the three (3) years immediately preceding the year in
510	510	30 which the solicitation and submission of data is being made. Assessing
511	511	31 officials may use federal tax returns or other similar evidence as
512	512	32 verification that the submissions are correct.
513	513	33 (h) For each assessment date, assessing officials shall examine and
514	514	34 evaluate the three (3) consecutive years of financial records and federal
515	515	35 tax returns that are submitted under subsection (g) in the year
516	516	36 immediately preceding the year of the assessment date to obtain the
517	517	37 average net operating income. The three (3) year average should
518	518	38 include the most current completed financial records and filed federal
519	519	39 tax returns of the golf course as of the assessment date to ensure that
520	520	40 the appropriate income and expense information for the subject
521	521	41 property is used.
522	522	42 (i) All income and expense information provided to the assessing
523	523	2023 IN 45—LS 6138/DI 120 13
524	524	1 official under this section is confidential under IC 6-1.1-35-9.
525	525	2 SECTION 11. IC 6-1.1-12.4-2, AS AMENDED BY P.L.86-2018,
526	526	3 SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
527	527	4 JANUARY 1, 2024]: Sec. 2. (a) For purposes of this section, an
528	528	5 increase in the assessed value of real property is determined in the
529	529	6 same manner that an increase in the assessed value of real property is
530	530	7 determined for purposes of IC 6-1.1-12.1.
531	531	8 (b) This subsection applies only to a development, redevelopment,
532	532	9 or rehabilitation that is first assessed after March 1, 2005, and before
533	533	10 March 2, 2007. Except as provided in subsection (h) and sections 4, 5,
534	534	11 and 8 of this chapter, an owner of real property that:
535	535	12 (1) develops, redevelops, or rehabilitates the real property; and
536	536	13 (2) creates or retains employment from the development,
537	537	14 redevelopment, or rehabilitation;
538	538	15 is entitled to a deduction from the assessed value of the real property.
539	539	16 (c) Subject to section 14 of this chapter, the deduction under this
540	540	17 section is first available in the year in which the increase in assessed
541	541	18 value resulting from the development, redevelopment, or rehabilitation
542	542	19 occurs and continues for the following two (2) years. The amount of the
543	543	20 deduction that a property owner may receive with respect to real
544	544	21 property located in a county for a particular year equals the lesser of:
545	545	22 (1) two million dollars ($2,000,000); or
546	546	23 (2) the product of:
547	547	24 (A) the increase in assessed value resulting from the
548	548	25 development, rehabilitation, or redevelopment; multiplied by
549	549	26 (B) the percentage from the following table:
550	550	27 YEAR OF DEDUCTION PERCENTAGE
551	551	28 1st 75%
552	552	29 2nd 50%
553	553	30 3rd 25%
554	554	31 (d) A property owner that qualifies for the deduction under this
555	555	32 section must file a notice to claim the deduction. The township
556	556	33 assessor, or the county assessor if there is no township assessor for the
557	557	34 township, shall:
558	558	35 (1) inform the county auditor of the real property eligible for the
559	559	36 deduction as contained in the notice filed by the taxpayer under
560	560	37 this subsection; and
561	561	38 (2) inform the county auditor of the deduction amount.
562	562	39 (e) The county auditor shall:
563	563	40 (1) make the deductions; and
564	564	41 (2) notify the county property tax assessment board of appeals of
565	565	42 all deductions approved;
566	566	2023 IN 45—LS 6138/DI 120 14
567	567	1 under this section.
568	568	2 (f) The amount of the deduction determined under subsection (c)(2)
569	569	3 is adjusted to reflect the percentage increase or decrease in assessed
570	570	4 valuation that results from
571	571	5 (1) a reassessment under a county's reassessment plan prepared
572	572	6 under IC 6-1.1-4-4.2. or
573	573	7 (2) an annual adjustment under IC 6-1.1-4-4.5.
574	574	8 (g) If an appeal of an assessment is approved that results in a
575	575	9 reduction of the assessed value of the real property, the amount of the
576	576	10 deduction under this section is adjusted to reflect the percentage
577	577	11 decrease that results from the appeal.
578	578	12 (h) The deduction under this section does not apply to a facility
579	579	13 listed in IC 6-1.1-12.1-3(e).
580	580	14 SECTION 12. IC 6-1.1-18-12, AS AMENDED BY P.L.174-2022,
581	581	15 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
582	582	16 JANUARY 1, 2024]: Sec. 12. (a) For purposes of this section,
583	583	17 "maximum rate" refers to the maximum:
584	584	18 (1) property tax rate or rates; or
585	585	19 (2) special benefits tax rate or rates;
586	586	20 referred to in the statutes listed in subsection (d).
587	587	21 (b) The maximum rate for taxes first due and payable after 2003 is
588	588	22 the maximum rate that would have been determined under subsection
589	589	23 (e) for taxes first due and payable in 2003 if subsection (e) had applied
590	590	24 for taxes first due and payable in 2003.
591	591	25 (c) The maximum rate must be adjusted each year to account for the
592	592	26 change in assessed value of real property that results from:
593	593	27 (1) an annual adjustment of the assessed value of real property
594	594	28 agricultural land under IC 6-1.1-4-4.5; IC 6-1.1-4-13.2; or
595	595	29 (2) a reassessment under a county's reassessment plan prepared
596	596	30 under IC 6-1.1-4-4.2.
597	597	31 (d) The statutes to which subsection (a) refers are:
598	598	32 (1) IC 8-10-5-17 (for taxes due and payable before January 1,
599	599	33 2023);
600	600	34 (2) IC 8-22-3-11;
601	601	35 (3) IC 8-22-3-25 (for taxes due and payable before January 1,
602	602	36 2023);
603	603	37 (4) IC 12-29-1-1;
604	604	38 (5) IC 12-29-1-2;
605	605	39 (6) IC 12-29-1-3;
606	606	40 (7) IC 12-29-3-6;
607	607	41 (8) IC 13-21-3-12;
608	608	42 (9) IC 13-21-3-15;
609	609	2023 IN 45—LS 6138/DI 120 15
610	610	1 (10) IC 14-27-6-30;
611	611	2 (11) IC 14-33-7-3;
612	612	3 (12) IC 14-33-21-5 (for taxes due and payable before January 1,
613	613	4 2023);
614	614	5 (13) IC 15-14-7-4;
615	615	6 (14) IC 15-14-9-1;
616	616	7 (15) IC 15-14-9-2;
617	617	8 (16) IC 16-20-2-18;
618	618	9 (17) IC 16-20-4-27;
619	619	10 (18) IC 16-20-7-2;
620	620	11 (19) IC 16-22-14;
621	621	12 (20) IC 16-23-1-29;
622	622	13 (21) IC 16-23-3-6;
623	623	14 (22) IC 16-23-4-2;
624	624	15 (23) IC 16-23-5-6;
625	625	16 (24) IC 16-23-7-2;
626	626	17 (25) IC 16-23-8-2;
627	627	18 (26) IC 16-23-9-2;
628	628	19 (27) IC 16-41-15-5;
629	629	20 (28) IC 16-41-33-4;
630	630	21 (29) IC 20-46-2-3 (before its repeal on January 1, 2009);
631	631	22 (30) IC 20-46-6-5 (before its repeal on January 1, 2019);
632	632	23 (31) IC 20-49-2-10;
633	633	24 (32) IC 36-1-19-1;
634	634	25 (33) IC 23-14-66-2;
635	635	26 (34) IC 23-14-67-3;
636	636	27 (35) IC 36-7-13-4;
637	637	28 (36) IC 36-7-14-28;
638	638	29 (37) IC 36-7-15.1-16;
639	639	30 (38) IC 36-8-19-8.5 (for taxes due and payable before January 1,
640	640	31 2023);
641	641	32 (39) IC 36-9-6.1-2;
642	642	33 (40) IC 36-9-17.5-4 (for taxes due and payable before January 1,
643	643	34 2023);
644	644	35 (41) IC 36-9-27-73;
645	645	36 (42) IC 36-9-29-31;
646	646	37 (43) IC 36-9-29.1-15;
647	647	38 (44) IC 36-10-6-2;
648	648	39 (45) IC 36-10-7-7;
649	649	40 (46) IC 36-10-7-8;
650	650	41 (47) IC 36-10-7.5-19 (for taxes due and payable before January 1,
651	651	42 2023);
652	652	2023 IN 45—LS 6138/DI 120 16
653	653	1 (48) IC 36-10-13-5 (before the power to impose a levy was
654	654	2 removed on January 1, 2019);
655	655	3 (49) IC 36-10-13-7 (before the power to impose a levy was
656	656	4 removed on January 1, 2019);
657	657	5 (50) IC 36-10-14-4 (before its repeal on January 1, 2019);
658	658	6 (51) IC 36-12-7-7;
659	659	7 (52) IC 36-12-7-8;
660	660	8 (53) IC 36-12-12-10;
661	661	9 (54) a statute listed in IC 6-1.1-18.5-9.8 (for taxes due and
662	662	10 payable before January 1, 2023); and
663	663	11 (55) any statute enacted after December 31, 2003, that:
664	664	12 (A) establishes a maximum rate for any part of the:
665	665	13 (i) property taxes; or
666	666	14 (ii) special benefits taxes;
667	667	15 imposed by a political subdivision; and
668	668	16 (B) does not exempt the maximum rate from the adjustment
669	669	17 under this section.
670	670	18 (e) For property tax rates imposed for property taxes first due and
671	671	19 payable after December 31, 2013, the new maximum rate under a
672	672	20 statute listed in subsection (d) is the tax rate determined under STEP
673	673	21 EIGHT of the following STEPS:
674	674	22 STEP ONE: Determine the maximum rate for the political
675	675	23 subdivision levying a property tax or special benefits tax under
676	676	24 the statute for the previous calendar year.
677	677	25 STEP TWO: Determine the actual percentage change (rounded to
678	678	26 the nearest one-hundredth percent (0.01%)) in the assessed value
679	679	27 of the taxable property from the previous calendar year to the year
680	680	28 in which the affected property taxes will be imposed.
681	681	29 STEP THREE: Determine the three (3) calendar years that
682	682	30 immediately precede the year in which the affected property taxes
683	683	31 will be imposed.
684	684	32 STEP FOUR: Compute separately, for each of the calendar years
685	685	33 determined in STEP THREE, the actual percentage change
686	686	34 (rounded to the nearest one-hundredth percent (0.01%)) in the
687	687	35 assessed value, before the adjustment, if any, under IC 6-1.1-4-4.5
688	688	36 (before its repeal on January 1, 2024), or before the
689	689	37 adjustment, if any, for agricultural land under IC 6-1.1-4-13.2
690	690	38 (beginning after December 31, 2023) of the taxable property
691	691	39 from the preceding year.
692	692	40 STEP FIVE: Divide the sum of the three (3) quotients computed
693	693	41 in STEP FOUR by three (3).
694	694	42 STEP SIX: Determine the greater of the following:
695	695	2023 IN 45—LS 6138/DI 120 17
696	696	1 (A) Zero (0).
697	697	2 (B) The STEP FIVE result.
698	698	3 STEP SEVEN: Determine the greater of the following:
699	699	4 (A) Zero (0).
700	700	5 (B) The result of the STEP TWO percentage minus the STEP
701	701	6 SIX percentage, if any.
702	702	7 STEP EIGHT: Determine the quotient of the STEP ONE tax rate
703	703	8 divided by the sum of one (1) plus the STEP SEVEN percentage,
704	704	9 if any.
705	705	10 (f) The department of local government finance shall compute the
706	706	11 maximum rate allowed under subsection (e) and provide the rate to
707	707	12 each political subdivision with authority to levy a tax under a statute
708	708	13 listed in subsection (d).
709	709	14 SECTION 13. IC 6-1.1-37-9, AS AMENDED BY P.L.232-2017,
710	710	15 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
711	711	16 JANUARY 1, 2024]: Sec. 9. (a) This section applies when:
712	712	17 (1) an assessment is made or increased after the date or dates on
713	713	18 which the taxes for the year for which the assessment is made
714	714	19 were originally due;
715	715	20 (2) the assessment upon which a taxpayer has been paying taxes
716	716	21 under IC 6-1.1-15-10(a)(1) or IC 6-1.1-15-10(a)(2) while a
717	717	22 petition for review or a judicial proceeding has been pending is
718	718	23 less than the assessment that results from the final determination
719	719	24 of the petition for review or judicial proceeding; or
720	720	25 (3) the collection of certain ad valorem property taxes has been
721	721	26 enjoined under IC 33-26-6-2, and under the final determination of
722	722	27 the petition for judicial review the taxpayer is liable for at least
723	723	28 part of those taxes.
724	724	29 (b) Except as provided in subsections (c) and (g), a taxpayer shall
725	725	30 pay interest on the taxes the taxpayer is required to pay as a result of an
726	726	31 action or a determination described in subsection (a) at the rate
727	727	32 established by the commissioner of the department of state revenue
728	728	33 under IC 6-8.1-10-1 from the original due date or dates for those taxes
729	729	34 to:
730	730	35 (1) the date of payment; or
731	731	36 (2) the date on which penalties for the late payment of a tax
732	732	37 installment may be charged under subsection (e) or (f);
733	733	38 whichever occurs first. The interest shall be computed using the rate in
734	734	39 effect for each particular year in which the interest accrued.
735	735	40 (c) Except as provided in subsection (g), a taxpayer shall pay
736	736	41 interest on the taxes the taxpayer is ultimately required to pay in excess
737	737	42 of the amount that the taxpayer is required to pay under
738	738	2023 IN 45—LS 6138/DI 120 18
739	739	1 IC 6-1.1-15-10(a)(1) while a petition for review or a judicial
740	740	2 proceeding has been pending at the overpayment rate established under
741	741	3 Section 6621(c)(1) of the Internal Revenue Code in effect on the
742	742	4 original due date or dates for those taxes from the original due date or
743	743	5 dates for those taxes to:
744	744	6 (1) the date of payment; or
745	745	7 (2) the date on which penalties for the late payment of a tax
746	746	8 installment may be charged under subsection (e) or (f);
747	747	9 whichever occurs first.
748	748	10 (d) With respect to an action or determination described in
749	749	11 subsection (a), the taxpayer shall pay the taxes resulting from that
750	750	12 action or determination and the interest prescribed under subsection (b)
751	751	13 or (c) on or before:
752	752	14 (1) the next May 10; or
753	753	15 (2) the next November 10;
754	754	16 whichever occurs first.
755	755	17 (e) A taxpayer shall begin paying the penalty prescribed in section
756	756	18 10 of this chapter on the day after the date for payment prescribed in
757	757	19 subsection (d) if:
758	758	20 (1) the taxpayer has not paid the amount of taxes resulting from
759	759	21 the action or determination; and
760	760	22 (2) the taxpayer either:
761	761	23 (A) received notice of the taxes the taxpayer is required to pay
762	762	24 as a result of the action or determination at least thirty (30)
763	763	25 days before the date for payment; or
764	764	26 (B) voluntarily signed and filed an assessment return for the
765	765	27 taxes.
766	766	28 (f) If subsection (e) does not apply, a taxpayer who has not paid the
767	767	29 amount of taxes resulting from the action or determination shall begin
768	768	30 paying the penalty prescribed in section 10 of this chapter on:
769	769	31 (1) the next May 10 which follows the date for payment
770	770	32 prescribed in subsection (d); or
771	771	33 (2) the next November 10 which follows the date for payment
772	772	34 prescribed in subsection (d);
773	773	35 whichever occurs first.
774	774	36 (g) A taxpayer is not subject to the payment of interest on real
775	775	37 property assessments under subsection (b) or (c) if:
776	776	38 (1) an assessment is made or increased after the date or dates on
777	777	39 which the taxes for the year for which the assessment is made
778	778	40 were due;
779	779	41 (2) the assessment or the assessment increase is made as the result
780	780	42 of error or neglect by the assessor or by any other official
781	781	2023 IN 45—LS 6138/DI 120 19
782	782	1 involved with the assessment of property or the collection of
783	783	2 property taxes; and
784	784	3 (3) the assessment:
785	785	4 (A) would have been made on the normal assessment date if
786	786	5 the error or neglect had not occurred; or
787	787	6 (B) increase would have been included in the assessment on
788	788	7 the normal annual assessment date if the error or neglect had
789	789	8 not occurred.
790	790	9 SECTION 14. IC 6-1.1-39-5, AS AMENDED BY P.L.214-2019,
791	791	10 SECTION 22, AND AS AMENDED BY P.L.257-2019, SECTION 68,
792	792	11 IS CORRECTED AND AMENDED TO READ AS FOLLOWS
793	793	12 [EFFECTIVE JANUARY 1, 2024]: Sec. 5. (a) A declaratory ordinance
794	794	13 adopted under section 2 of this chapter and confirmed under section 3
795	795	14 of this chapter must include a provision with respect to the allocation
796	796	15 and distribution of property taxes for the purposes and in the manner
797	797	16 provided in this section. The allocation provision must apply to the
798	798	17 entire economic development district. The allocation provisions must
799	799	18 require that any property taxes subsequently levied by or for the benefit
800	800	19 of any public body entitled to a distribution of property taxes on taxable
801	801	20 property in the economic development district be allocated and
802	802	21 distributed as follows:
803	803	22 (1) Except as otherwise provided in this section, the proceeds of
804	804	23 the taxes attributable to the lesser of:
805	805	24 (A) the assessed value of the property for the assessment date
806	806	25 with respect to which the allocation and distribution is made;
807	807	26 or
808	808	27 (B) the base assessed value;
809	809	28 shall be allocated to and, when collected, paid into the funds of
810	810	29 the respective taxing units. However, if the effective date of the
811	811	30 allocation provision of a declaratory ordinance is after March 1,
812	812	31 1985, and before January 1, 1986, and if an improvement to
813	813	32 property was partially completed on March 1, 1985, the unit may
814	814	33 provide in the declaratory ordinance that the taxes attributable to
815	815	34 the assessed value of the property as finally determined for March
816	816	35 1, 1984, shall be allocated to and, when collected, paid into the
817	817	36 funds of the respective taxing units.
818	818	37 (2) Except as otherwise provided in this section, part or all of the
819	819	38 property tax proceeds in excess of those described in subdivision
820	820	39 (1), as specified in the declaratory ordinance, shall be allocated to
821	821	40 the unit for the economic development district and, when
822	822	41 collected, paid into a special fund established by the unit for that
823	823	42 economic development district that may be used only to pay the
824	824	2023 IN 45—LS 6138/DI 120 20
825	825	1 principal of and interest on obligations owed by the unit under
826	826	2 IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
827	827	3 industrial development programs in, or serving, that economic
828	828	4 development district. The amount not paid into the special fund
829	829	5 shall be paid to the respective units in the manner prescribed by
830	830	6 subdivision (1).
831	831	7 (3) When the money in the fund is sufficient to pay all
832	832	8 outstanding principal of and interest (to the earliest date on which
833	833	9 the obligations can be redeemed) on obligations owed by the unit
834	834	10 under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
835	835	11 of industrial development programs in, or serving, that economic
836	836	12 development district, money in the special fund in excess of that
837	837	13 amount shall be paid to the respective taxing units in the manner
838	838	14 prescribed by subdivision (1).
839	839	15 (b) Property tax proceeds allocable to the economic development
840	840	16 district under subsection (a)(2) must, subject to subsection (a)(3), be
841	841	17 irrevocably pledged by the unit for payment as set forth in subsection
842	842	18 (a)(2).
843	843	19 (c) For the purpose of allocating taxes levied by or for any taxing
844	844	20 unit or units, the assessed value of taxable property in a territory in the
845	845	21 economic development district that is annexed by any taxing unit after
846	846	22 the effective date of the allocation provision of the declaratory
847	847	23 ordinance is the lesser of:
848	848	24 (1) the assessed value of the property for the assessment date with
849	849	25 respect to which the allocation and distribution is made; or
850	850	26 (2) the base assessed value.
851	851	27 (d) Notwithstanding any other law, each assessor shall, upon
852	852	28 petition of the fiscal body, reassess the taxable property situated upon
853	853	29 or in, or added to, the economic development district effective on the
854	854	30 next assessment date after the petition.
855	855	31 (e) Notwithstanding any other law, the assessed value of all taxable
856	856	32 property in the economic development district, for purposes of tax
857	857	33 limitation, property tax replacement, and formulation of the budget, tax
858	858	34 rate, and tax levy for each political subdivision in which the property
859	859	35 is located, is the lesser of:
860	860	36 (1) the assessed value of the property as valued without regard to
861	861	37 this section; or
862	862	38 (2) the base assessed value.
863	863	39 (f) The state board of accounts and department of local government
864	864	40 finance shall make the rules and prescribe the forms and procedures
865	865	41 that they consider expedient for the implementation of this chapter.
866	866	42 After each reassessment of a group of parcels under a reassessment
867	867	2023 IN 45—LS 6138/DI 120 21
868	868	1 plan prepared under IC 6-1.1-4-4.2 the department of local government
869	869	2 finance shall adjust the base assessed value one (1) time to neutralize
870	870	3 any effect of the reassessment on the property tax proceeds allocated
871	871	4 to the district under this section. After each annual adjustment for
872	872	5 agricultural land under IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the
873	873	6 department of local government finance shall adjust the base assessed
874	874	7 value to neutralize any effect of the annual adjustment on the property
875	875	8 tax proceeds allocated to the district under this section. However, the
876	876	9 adjustments under this subsection may not include the effect of
877	877	10 property tax abatements under IC 6-1.1-12.1.
878	878	11 (g) As used in this section, "property taxes" means:
879	879	12 (1) taxes imposed under this article on real property; and
880	880	13 (2) any part of the taxes imposed under this article on depreciable
881	881	14 personal property that the unit has by ordinance allocated to the
882	882	15 economic development district. However, the ordinance may not
883	883	16 limit the allocation to taxes on depreciable personal property with
884	884	17 any particular useful life or lives.
885	885	18 If a unit had, by ordinance adopted before May 8, 1987, allocated to an
886	886	19 economic development district property taxes imposed under IC 6-1.1
887	887	20 on depreciable personal property that has a useful life in excess of eight
888	888	21 (8) years, the ordinance continues in effect until an ordinance is
889	889	22 adopted by the unit under subdivision (2).
890	890	23 (h) As used in this section, "base assessed value" means, subject to
891	891	24 subsection (i):
892	892	25 (1) the net assessed value of all the property as finally determined
893	893	26 for the assessment date immediately preceding the effective date
894	894	27 of the allocation provision of the declaratory resolution, as
895	895	28 adjusted under subsection (f); plus
896	896	29 (2) to the extent that it is not included in subdivision (1), the net
897	897	30 assessed value of property that is assessed as residential property
898	898	31 under the rules of the department of local government finance,
899	899	32 within the economic development district, as finally determined
900	900	33 for any the current assessment date. after the effective date of the
901	901	34 allocation provision.
902	902	35 Subdivision (2) applies only to economic development districts
903	903	36 established after June 30, 1997, and to additional areas established
904	904	37 after June 30, 1997.
905	905	38 (i) If a fiscal body confirms, or modifies and confirms, an ordinance
906	906	39 under section 3 of this chapter and the fiscal body makes either of the
907	907	40 filings required under section 3(d) of this chapter after the first
908	908	41 anniversary of the effective date of the allocation provision in the
909	909	42 ordinance, the auditor of the county in which the unit is located shall
910	910	2023 IN 45—LS 6138/DI 120 22
911	911	1 compute the base assessed value for the allocation area using the
912	912	2 assessment date immediately preceding the later of:
913	913	3 (1) the date on which the documents are filed with the county
914	914	4 auditor; or
915	915	5 (2) the date on which the documents are filed with the
916	916	6 department.
917	917	7 SECTION 15. IC 8-22-3.5-11, AS AMENDED BY P.L.86-2018,
918	918	8 SECTION 144, IS AMENDED TO READ AS FOLLOWS
919	919	9 [EFFECTIVE JANUARY 1, 2024]: Sec. 11. (a) The state board of
920	920	10 accounts and the department of local government finance shall make
921	921	11 the rules and prescribe the forms and procedures that the state board of
922	922	12 accounts and department consider appropriate for the implementation
923	923	13 of this chapter.
924	924	14 (b) After each reassessment under IC 6-1.1-4, the department of
925	925	15 local government finance shall adjust the base assessed value (as
926	926	16 defined in section 9 of this chapter) one (1) time to neutralize any effect
927	927	17 of the reassessment on the property tax proceeds allocated to the airport
928	928	18 development zone's special funds under section 9 of this chapter.
929	929	19 (c) After each annual adjustment for agricultural land under
930	930	20 IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the department of local government
931	931	21 finance shall adjust the base assessed value (as defined in section 9 of
932	932	22 this chapter) to neutralize any effect of the annual adjustment on the
933	933	23 property tax proceeds allocated to the airport development zone's
934	934	24 special funds under section 9 of this chapter.
935	935	25 SECTION 16. IC 36-7-14-39, AS AMENDED BY P.L.174-2022,
936	936	26 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
937	937	27 JANUARY 1, 2024]: Sec. 39. (a) As used in this section:
938	938	28 "Allocation area" means that part of a redevelopment project area
939	939	29 to which an allocation provision of a declaratory resolution adopted
940	940	30 under section 15 of this chapter refers for purposes of distribution and
941	941	31 allocation of property taxes.
942	942	32 "Base assessed value" means, subject to subsection (j), the
943	943	33 following:
944	944	34 (1) If an allocation provision is adopted after June 30, 1995, in a
945	945	35 declaratory resolution or an amendment to a declaratory
946	946	36 resolution establishing an economic development area:
947	947	37 (A) the net assessed value of all the property as finally
948	948	38 determined for the assessment date immediately preceding the
949	949	39 effective date of the allocation provision of the declaratory
950	950	40 resolution, as adjusted under subsection (h); plus
951	951	41 (B) to the extent that it is not included in clause (A), the net
952	952	42 assessed value of property that is assessed as residential
953	953	2023 IN 45—LS 6138/DI 120 23
954	954	1 property under the rules of the department of local government
955	955	2 finance, within the allocation area, as finally determined for
956	956	3 the current assessment date.
957	957	4 (2) If an allocation provision is adopted after June 30, 1997, in a
958	958	5 declaratory resolution or an amendment to a declaratory
959	959	6 resolution establishing a redevelopment project area:
960	960	7 (A) the net assessed value of all the property as finally
961	961	8 determined for the assessment date immediately preceding the
962	962	9 effective date of the allocation provision of the declaratory
963	963	10 resolution, as adjusted under subsection (h); plus
964	964	11 (B) to the extent that it is not included in clause (A), the net
965	965	12 assessed value of property that is assessed as residential
966	966	13 property under the rules of the department of local government
967	967	14 finance, as finally determined for the current assessment date.
968	968	15 (3) If:
969	969	16 (A) an allocation provision adopted before June 30, 1995, in
970	970	17 a declaratory resolution or an amendment to a declaratory
971	971	18 resolution establishing a redevelopment project area expires
972	972	19 after June 30, 1997; and
973	973	20 (B) after June 30, 1997, a new allocation provision is included
974	974	21 in an amendment to the declaratory resolution;
975	975	22 the net assessed value of all the property as finally determined for
976	976	23 the assessment date immediately preceding the effective date of
977	977	24 the allocation provision adopted after June 30, 1997, as adjusted
978	978	25 under subsection (h).
979	979	26 (4) Except as provided in subdivision (5), for all other allocation
980	980	27 areas, the net assessed value of all the property as finally
981	981	28 determined for the assessment date immediately preceding the
982	982	29 effective date of the allocation provision of the declaratory
983	983	30 resolution, as adjusted under subsection (h).
984	984	31 (5) If an allocation area established in an economic development
985	985	32 area before July 1, 1995, is expanded after June 30, 1995, the
986	986	33 definition in subdivision (1) applies to the expanded part of the
987	987	34 area added after June 30, 1995.
988	988	35 (6) If an allocation area established in a redevelopment project
989	989	36 area before July 1, 1997, is expanded after June 30, 1997, the
990	990	37 definition in subdivision (2) applies to the expanded part of the
991	991	38 area added after June 30, 1997.
992	992	39 Except as provided in section 39.3 of this chapter, "property taxes"
993	993	40 means taxes imposed under IC 6-1.1 on real property. However, upon
994	994	41 approval by a resolution of the redevelopment commission adopted
995	995	42 before June 1, 1987, "property taxes" also includes taxes imposed
996	996	2023 IN 45—LS 6138/DI 120 24
997	997	1 under IC 6-1.1 on depreciable personal property. If a redevelopment
998	998	2 commission adopted before June 1, 1987, a resolution to include within
999	999	3 the definition of property taxes, taxes imposed under IC 6-1.1 on
1000	1000	4 depreciable personal property that has a useful life in excess of eight
1001	1001	5 (8) years, the commission may by resolution determine the percentage
1002	1002	6 of taxes imposed under IC 6-1.1 on all depreciable personal property
1003	1003	7 that will be included within the definition of property taxes. However,
1004	1004	8 the percentage included must not exceed twenty-five percent (25%) of
1005	1005	9 the taxes imposed under IC 6-1.1 on all depreciable personal property.
1006	1006	10 (b) A declaratory resolution adopted under section 15 of this chapter
1007	1007	11 on or before the allocation deadline determined under subsection (i)
1008	1008	12 may include a provision with respect to the allocation and distribution
1009	1009	13 of property taxes for the purposes and in the manner provided in this
1010	1010	14 section. A declaratory resolution previously adopted may include an
1011	1011	15 allocation provision by the amendment of that declaratory resolution on
1012	1012	16 or before the allocation deadline determined under subsection (i) in
1013	1013	17 accordance with the procedures required for its original adoption. A
1014	1014	18 declaratory resolution or amendment that establishes an allocation
1015	1015	19 provision must include a specific finding of fact, supported by
1016	1016	20 evidence, that the adoption of the allocation provision will result in
1017	1017	21 new property taxes in the area that would not have been generated but
1018	1018	22 for the adoption of the allocation provision. For an allocation area
1019	1019	23 established before July 1, 1995, the expiration date of any allocation
1020	1020	24 provisions for the allocation area is June 30, 2025, or the last date of
1021	1021	25 any obligations that are outstanding on July 1, 2015, whichever is later.
1022	1022	26 A declaratory resolution or an amendment that establishes an allocation
1023	1023	27 provision after June 30, 1995, must specify an expiration date for the
1024	1024	28 allocation provision. For an allocation area established before July 1,
1025	1025	29 2008, the expiration date may not be more than thirty (30) years after
1026	1026	30 the date on which the allocation provision is established. For an
1027	1027	31 allocation area established after June 30, 2008, the expiration date may
1028	1028	32 not be more than twenty-five (25) years after the date on which the first
1029	1029	33 obligation was incurred to pay principal and interest on bonds or lease
1030	1030	34 rentals on leases payable from tax increment revenues. However, with
1031	1031	35 respect to bonds or other obligations that were issued before July 1,
1032	1032	36 2008, if any of the bonds or other obligations that were scheduled when
1033	1033	37 issued to mature before the specified expiration date and that are
1034	1034	38 payable only from allocated tax proceeds with respect to the allocation
1035	1035	39 area remain outstanding as of the expiration date, the allocation
1036	1036	40 provision does not expire until all of the bonds or other obligations are
1037	1037	41 no longer outstanding. Notwithstanding any other law, in the case of an
1038	1038	42 allocation area that is established after June 30, 2019, and that is
1039	1039	2023 IN 45—LS 6138/DI 120 25
1040	1040	1 located in a redevelopment project area described in section
1041	1041	2 25.1(c)(3)(C) of this chapter, an economic development area described
1042	1042	3 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
1043	1043	4 area described in section 25.1(c)(3)(C) of this chapter, the expiration
1044	1044	5 date of the allocation provision may not be more than thirty-five (35)
1045	1045	6 years after the date on which the allocation provision is established.
1046	1046	7 The allocation provision may apply to all or part of the redevelopment
1047	1047	8 project area. The allocation provision must require that any property
1048	1048	9 taxes subsequently levied by or for the benefit of any public body
1049	1049	10 entitled to a distribution of property taxes on taxable property in the
1050	1050	11 allocation area be allocated and distributed as follows:
1051	1051	12 (1) Except as otherwise provided in this section, the proceeds of
1052	1052	13 the taxes attributable to the lesser of:
1053	1053	14 (A) the assessed value of the property for the assessment date
1054	1054	15 with respect to which the allocation and distribution is made;
1055	1055	16 or
1056	1056	17 (B) the base assessed value;
1057	1057	18 shall be allocated to and, when collected, paid into the funds of
1058	1058	19 the respective taxing units.
1059	1059	20 (2) The excess of the proceeds of the property taxes imposed for
1060	1060	21 the assessment date with respect to which the allocation and
1061	1061	22 distribution is made that are attributable to taxes imposed after
1062	1062	23 being approved by the voters in a referendum or local public
1063	1063	24 question conducted after April 30, 2010, not otherwise included
1064	1064	25 in subdivision (1) shall be allocated to and, when collected, paid
1065	1065	26 into the funds of the taxing unit for which the referendum or local
1066	1066	27 public question was conducted.
1067	1067	28 (3) Except as otherwise provided in this section, property tax
1068	1068	29 proceeds in excess of those described in subdivisions (1) and (2)
1069	1069	30 shall be allocated to the redevelopment district and, when
1070	1070	31 collected, paid into an allocation fund for that allocation area that
1071	1071	32 may be used by the redevelopment district only to do one (1) or
1072	1072	33 more of the following:
1073	1073	34 (A) Pay the principal of and interest on any obligations
1074	1074	35 payable solely from allocated tax proceeds which are incurred
1075	1075	36 by the redevelopment district for the purpose of financing or
1076	1076	37 refinancing the redevelopment of that allocation area.
1077	1077	38 (B) Establish, augment, or restore the debt service reserve for
1078	1078	39 bonds payable solely or in part from allocated tax proceeds in
1079	1079	40 that allocation area.
1080	1080	41 (C) Pay the principal of and interest on bonds payable from
1081	1081	42 allocated tax proceeds in that allocation area and from the
1082	1082	2023 IN 45—LS 6138/DI 120 26
1083	1083	1 special tax levied under section 27 of this chapter.
1084	1084	2 (D) Pay the principal of and interest on bonds issued by the
1085	1085	3 unit to pay for local public improvements that are physically
1086	1086	4 located in or physically connected to that allocation area.
1087	1087	5 (E) Pay premiums on the redemption before maturity of bonds
1088	1088	6 payable solely or in part from allocated tax proceeds in that
1089	1089	7 allocation area.
1090	1090	8 (F) Make payments on leases payable from allocated tax
1091	1091	9 proceeds in that allocation area under section 25.2 of this
1092	1092	10 chapter.
1093	1093	11 (G) Reimburse the unit for expenditures made by it for local
1094	1094	12 public improvements (which include buildings, parking
1095	1095	13 facilities, and other items described in section 25.1(a) of this
1096	1096	14 chapter) that are physically located in or physically connected
1097	1097	15 to that allocation area.
1098	1098	16 (H) Reimburse the unit for rentals paid by it for a building or
1099	1099	17 parking facility that is physically located in or physically
1100	1100	18 connected to that allocation area under any lease entered into
1101	1101	19 under IC 36-1-10.
1102	1102	20 (I) For property taxes first due and payable before January 1,
1103	1103	21 2009, pay all or a part of a property tax replacement credit to
1104	1104	22 taxpayers in an allocation area as determined by the
1105	1105	23 redevelopment commission. This credit equals the amount
1106	1106	24 determined under the following STEPS for each taxpayer in a
1107	1107	25 taxing district (as defined in IC 6-1.1-1-20) that contains all or
1108	1108	26 part of the allocation area:
1109	1109	27 STEP ONE: Determine that part of the sum of the amounts
1110	1110	28 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
1111	1111	29 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
1112	1112	30 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
1113	1113	31 the taxing district.
1114	1114	32 STEP TWO: Divide:
1115	1115	33 (i) that part of each county's eligible property tax
1116	1116	34 replacement amount (as defined in IC 6-1.1-21-2 (before its
1117	1117	35 repeal)) for that year as determined under IC 6-1.1-21-4
1118	1118	36 (before its repeal) that is attributable to the taxing district;
1119	1119	37 by
1120	1120	38 (ii) the STEP ONE sum.
1121	1121	39 STEP THREE: Multiply:
1122	1122	40 (i) the STEP TWO quotient; times
1123	1123	41 (ii) the total amount of the taxpayer's taxes (as defined in
1124	1124	42 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
1125	1125	2023 IN 45—LS 6138/DI 120 27
1126	1126	1 that have been allocated during that year to an allocation
1127	1127	2 fund under this section.
1128	1128	3 If not all the taxpayers in an allocation area receive the credit
1129	1129	4 in full, each taxpayer in the allocation area is entitled to
1130	1130	5 receive the same proportion of the credit. A taxpayer may not
1131	1131	6 receive a credit under this section and a credit under section
1132	1132	7 39.5 of this chapter (before its repeal) in the same year.
1133	1133	8 (J) Pay expenses incurred by the redevelopment commission
1134	1134	9 for local public improvements that are in the allocation area or
1135	1135	10 serving the allocation area. Public improvements include
1136	1136	11 buildings, parking facilities, and other items described in
1137	1137	12 section 25.1(a) of this chapter.
1138	1138	13 (K) Reimburse public and private entities for expenses
1139	1139	14 incurred in training employees of industrial facilities that are
1140	1140	15 located:
1141	1141	16 (i) in the allocation area; and
1142	1142	17 (ii) on a parcel of real property that has been classified as
1143	1143	18 industrial property under the rules of the department of local
1144	1144	19 government finance.
1145	1145	20 However, the total amount of money spent for this purpose in
1146	1146	21 any year may not exceed the total amount of money in the
1147	1147	22 allocation fund that is attributable to property taxes paid by the
1148	1148	23 industrial facilities described in this clause. The
1149	1149	24 reimbursements under this clause must be made within three
1150	1150	25 (3) years after the date on which the investments that are the
1151	1151	26 basis for the increment financing are made.
1152	1152	27 (L) Pay the costs of carrying out an eligible efficiency project
1153	1153	28 (as defined in IC 36-9-41-1.5) within the unit that established
1154	1154	29 the redevelopment commission. However, property tax
1155	1155	30 proceeds may be used under this clause to pay the costs of
1156	1156	31 carrying out an eligible efficiency project only if those
1157	1157	32 property tax proceeds exceed the amount necessary to do the
1158	1158	33 following:
1159	1159	34 (i) Make, when due, any payments required under clauses
1160	1160	35 (A) through (K), including any payments of principal and
1161	1161	36 interest on bonds and other obligations payable under this
1162	1162	37 subdivision, any payments of premiums under this
1163	1163	38 subdivision on the redemption before maturity of bonds, and
1164	1164	39 any payments on leases payable under this subdivision.
1165	1165	40 (ii) Make any reimbursements required under this
1166	1166	41 subdivision.
1167	1167	42 (iii) Pay any expenses required under this subdivision.
1168	1168	2023 IN 45—LS 6138/DI 120 28
1169	1169	1 (iv) Establish, augment, or restore any debt service reserve
1170	1170	2 under this subdivision.
1171	1171	3 (M) Expend money and provide financial assistance as
1172	1172	4 authorized in section 12.2(a)(27) of this chapter.
1173	1173	5 The allocation fund may not be used for operating expenses of the
1174	1174	6 commission.
1175	1175	7 (4) Except as provided in subsection (g), before June 15 of each
1176	1176	8 year, the commission shall do the following:
1177	1177	9 (A) Determine the amount, if any, by which the assessed value
1178	1178	10 of the taxable property in the allocation area for the most
1179	1179	11 recent assessment date minus the base assessed value, when
1180	1180	12 multiplied by the estimated tax rate of the allocation area, will
1181	1181	13 exceed the amount of assessed value needed to produce the
1182	1182	14 property taxes necessary to make, when due, principal and
1183	1183	15 interest payments on bonds described in subdivision (3), plus
1184	1184	16 the amount necessary for other purposes described in
1185	1185	17 subdivision (3).
1186	1186	18 (B) Provide a written notice to the county auditor, the fiscal
1187	1187	19 body of the county or municipality that established the
1188	1188	20 department of redevelopment, and the officers who are
1189	1189	21 authorized to fix budgets, tax rates, and tax levies under
1190	1190	22 IC 6-1.1-17-5 for each of the other taxing units that is wholly
1191	1191	23 or partly located within the allocation area. The county auditor,
1192	1192	24 upon receiving the notice, shall forward this notice (in an
1193	1193	25 electronic format) to the department of local government
1194	1194	26 finance not later than June 15 of each year. The notice must:
1195	1195	27 (i) state the amount, if any, of excess assessed value that the
1196	1196	28 commission has determined may be allocated to the
1197	1197	29 respective taxing units in the manner prescribed in
1198	1198	30 subdivision (1); or
1199	1199	31 (ii) state that the commission has determined that there is no
1200	1200	32 excess assessed value that may be allocated to the respective
1201	1201	33 taxing units in the manner prescribed in subdivision (1).
1202	1202	34 The county auditor shall allocate to the respective taxing units
1203	1203	35 the amount, if any, of excess assessed value determined by the
1204	1204	36 commission. The commission may not authorize an allocation
1205	1205	37 of assessed value to the respective taxing units under this
1206	1206	38 subdivision if to do so would endanger the interests of the
1207	1207	39 holders of bonds described in subdivision (3) or lessors under
1208	1208	40 section 25.3 of this chapter.
1209	1209	41 (C) If:
1210	1210	42 (i) the amount of excess assessed value determined by the
1211	1211	2023 IN 45—LS 6138/DI 120 29
1212	1212	1 commission is expected to generate more than two hundred
1213	1213	2 percent (200%) of the amount of allocated tax proceeds
1214	1214	3 necessary to make, when due, principal and interest
1215	1215	4 payments on bonds described in subdivision (3); plus
1216	1216	5 (ii) the amount necessary for other purposes described in
1217	1217	6 subdivision (3);
1218	1218	7 the commission shall submit to the legislative body of the unit
1219	1219	8 its determination of the excess assessed value that the
1220	1220	9 commission proposes to allocate to the respective taxing units
1221	1221	10 in the manner prescribed in subdivision (1). The legislative
1222	1222	11 body of the unit may approve the commission's determination
1223	1223	12 or modify the amount of the excess assessed value that will be
1224	1224	13 allocated to the respective taxing units in the manner
1225	1225	14 prescribed in subdivision (1).
1226	1226	15 (5) Notwithstanding subdivision (4), in the case of an allocation
1227	1227	16 area that is established after June 30, 2019, and that is located in
1228	1228	17 a redevelopment project area described in section 25.1(c)(3)(C)
1229	1229	18 of this chapter, an economic development area described in
1230	1230	19 section 25.1(c)(3)(C) of this chapter, or an urban renewal project
1231	1231	20 area described in section 25.1(c)(3)(C) of this chapter, for each
1232	1232	21 year the allocation provision is in effect, if the amount of excess
1233	1233	22 assessed value determined by the commission under subdivision
1234	1234	23 (4)(A) is expected to generate more than two hundred percent
1235	1235	24 (200%) of:
1236	1236	25 (A) the amount of allocated tax proceeds necessary to make,
1237	1237	26 when due, principal and interest payments on bonds described
1238	1238	27 in subdivision (3) for the project; plus
1239	1239	28 (B) the amount necessary for other purposes described in
1240	1240	29 subdivision (3) for the project;
1241	1241	30 the amount of the excess assessed value that generates more than
1242	1242	31 two hundred percent (200%) of the amounts described in clauses
1243	1243	32 (A) and (B) shall be allocated to the respective taxing units in the
1244	1244	33 manner prescribed by subdivision (1).
1245	1245	34 (c) For the purpose of allocating taxes levied by or for any taxing
1246	1246	35 unit or units, the assessed value of taxable property in a territory in the
1247	1247	36 allocation area that is annexed by any taxing unit after the effective
1248	1248	37 date of the allocation provision of the declaratory resolution is the
1249	1249	38 lesser of:
1250	1250	39 (1) the assessed value of the property for the assessment date with
1251	1251	40 respect to which the allocation and distribution is made; or
1252	1252	41 (2) the base assessed value.
1253	1253	42 (d) Property tax proceeds allocable to the redevelopment district
1254	1254	2023 IN 45—LS 6138/DI 120 30
1255	1255	1 under subsection (b)(3) may, subject to subsection (b)(4), be
1256	1256	2 irrevocably pledged by the redevelopment district for payment as set
1257	1257	3 forth in subsection (b)(3).
1258	1258	4 (e) Notwithstanding any other law, each assessor shall, upon
1259	1259	5 petition of the redevelopment commission, reassess the taxable
1260	1260	6 property situated upon or in, or added to, the allocation area, effective
1261	1261	7 on the next assessment date after the petition.
1262	1262	8 (f) Notwithstanding any other law, the assessed value of all taxable
1263	1263	9 property in the allocation area, for purposes of tax limitation, property
1264	1264	10 tax replacement, and formulation of the budget, tax rate, and tax levy
1265	1265	11 for each political subdivision in which the property is located is the
1266	1266	12 lesser of:
1267	1267	13 (1) the assessed value of the property as valued without regard to
1268	1268	14 this section; or
1269	1269	15 (2) the base assessed value.
1270	1270	16 (g) If any part of the allocation area is located in an enterprise zone
1271	1271	17 created under IC 5-28-15, the unit that designated the allocation area
1272	1272	18 shall create funds as specified in this subsection. A unit that has
1273	1273	19 obligations, bonds, or leases payable from allocated tax proceeds under
1274	1274	20 subsection (b)(3) shall establish an allocation fund for the purposes
1275	1275	21 specified in subsection (b)(3) and a special zone fund. Such a unit
1276	1276	22 shall, until the end of the enterprise zone phase out period, deposit each
1277	1277	23 year in the special zone fund any amount in the allocation fund derived
1278	1278	24 from property tax proceeds in excess of those described in subsection
1279	1279	25 (b)(1) and (b)(2) from property located in the enterprise zone that
1280	1280	26 exceeds the amount sufficient for the purposes specified in subsection
1281	1281	27 (b)(3) for the year. The amount sufficient for purposes specified in
1282	1282	28 subsection (b)(3) for the year shall be determined based on the pro rata
1283	1283	29 portion of such current property tax proceeds from the part of the
1284	1284	30 enterprise zone that is within the allocation area as compared to all
1285	1285	31 such current property tax proceeds derived from the allocation area. A
1286	1286	32 unit that has no obligations, bonds, or leases payable from allocated tax
1287	1287	33 proceeds under subsection (b)(3) shall establish a special zone fund
1288	1288	34 and deposit all the property tax proceeds in excess of those described
1289	1289	35 in subsection (b)(1) and (b)(2) in the fund derived from property tax
1290	1290	36 proceeds in excess of those described in subsection (b)(1) and (b)(2)
1291	1291	37 from property located in the enterprise zone. The unit that creates the
1292	1292	38 special zone fund shall use the fund (based on the recommendations of
1293	1293	39 the urban enterprise association) for programs in job training, job
1294	1294	40 enrichment, and basic skill development that are designed to benefit
1295	1295	41 residents and employers in the enterprise zone or other purposes
1296	1296	42 specified in subsection (b)(3), except that where reference is made in
1297	1297	2023 IN 45—LS 6138/DI 120 31
1298	1298	1 subsection (b)(3) to allocation area it shall refer for purposes of
1299	1299	2 payments from the special zone fund only to that part of the allocation
1300	1300	3 area that is also located in the enterprise zone. Those programs shall
1301	1301	4 reserve at least one-half (1/2) of their enrollment in any session for
1302	1302	5 residents of the enterprise zone.
1303	1303	6 (h) The state board of accounts and department of local government
1304	1304	7 finance shall make the rules and prescribe the forms and procedures
1305	1305	8 that they consider expedient for the implementation of this chapter.
1306	1306	9 After each reassessment in an area under a reassessment plan prepared
1307	1307	10 under IC 6-1.1-4-4.2, the department of local government finance shall
1308	1308	11 adjust the base assessed value one (1) time to neutralize any effect of
1309	1309	12 the reassessment of the real property in the area on the property tax
1310	1310	13 proceeds allocated to the redevelopment district under this section.
1311	1311	14 After each annual adjustment for agricultural land under
1312	1312	15 IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the department of local government
1313	1313	16 finance shall adjust the base assessed value one (1) time to neutralize
1314	1314	17 any effect of the annual adjustment on the property tax proceeds
1315	1315	18 allocated to the redevelopment district under this section. However, the
1316	1316	19 adjustments under this subsection:
1317	1317	20 (1) may not include the effect of phasing in assessed value due to
1318	1318	21 property tax abatements under IC 6-1.1-12.1;
1319	1319	22 (2) may not produce less property tax proceeds allocable to the
1320	1320	23 redevelopment district under subsection (b)(3) than would
1321	1321	24 otherwise have been received if the reassessment under the
1322	1322	25 reassessment plan or the annual adjustment for agricultural land
1323	1323	26 had not occurred; and
1324	1324	27 (3) may decrease base assessed value only to the extent that
1325	1325	28 assessed values in the allocation area have been decreased due to
1326	1326	29 annual adjustments for agricultural land or the reassessment
1327	1327	30 under the reassessment plan.
1328	1328	31 Assessed value increases attributable to the application of an abatement
1329	1329	32 schedule under IC 6-1.1-12.1 may not be included in the base assessed
1330	1330	33 value of an allocation area. The department of local government
1331	1331	34 finance may prescribe procedures for county and township officials to
1332	1332	35 follow to assist the department in making the adjustments.
1333	1333	36 (i) The allocation deadline referred to in subsection (b) is
1334	1334	37 determined in the following manner:
1335	1335	38 (1) The initial allocation deadline is December 31, 2011.
1336	1336	39 (2) Subject to subdivision (3), the initial allocation deadline and
1337	1337	40 subsequent allocation deadlines are automatically extended in
1338	1338	41 increments of five (5) years, so that allocation deadlines
1339	1339	42 subsequent to the initial allocation deadline fall on December 31,
1340	1340	2023 IN 45—LS 6138/DI 120 32
1341	1341	1 2016, and December 31 of each fifth year thereafter.
1342	1342	2 (3) At least one (1) year before the date of an allocation deadline
1343	1343	3 determined under subdivision (2), the general assembly may enact
1344	1344	4 a law that:
1345	1345	5 (A) terminates the automatic extension of allocation deadlines
1346	1346	6 under subdivision (2); and
1347	1347	7 (B) specifically designates a particular date as the final
1348	1348	8 allocation deadline.
1349	1349	9 (j) If a redevelopment commission adopts a declaratory resolution
1350	1350	10 or an amendment to a declaratory resolution that contains an allocation
1351	1351	11 provision and the redevelopment commission makes either of the
1352	1352	12 filings required under section 17(e) of this chapter after the first
1353	1353	13 anniversary of the effective date of the allocation provision, the auditor
1354	1354	14 of the county in which the unit is located shall compute the base
1355	1355	15 assessed value for the allocation area using the assessment date
1356	1356	16 immediately preceding the later of:
1357	1357	17 (1) the date on which the documents are filed with the county
1358	1358	18 auditor; or
1359	1359	19 (2) the date on which the documents are filed with the department
1360	1360	20 of local government finance.
1361	1361	21 (k) For an allocation area established after June 30, 2024,
1362	1362	22 "residential property" refers to the assessed value of property that is
1363	1363	23 allocated to the one percent (1%) homestead land and improvement
1364	1364	24 categories in the county tax and billing software system, along with the
1365	1365	25 residential assessed value as defined for purposes of calculating the
1366	1366	26 rate for the local income tax property tax relief credit designated for
1367	1367	27 residential property under IC 6-3.6-5-6(d)(3).
1368	1368	28 SECTION 17. IC 36-7-15.1-26, AS AMENDED BY P.L.174-2022,
1369	1369	29 SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1370	1370	30 JANUARY 1, 2024]: Sec. 26. (a) As used in this section:
1371	1371	31 "Allocation area" means that part of a redevelopment project area
1372	1372	32 to which an allocation provision of a resolution adopted under section
1373	1373	33 8 of this chapter refers for purposes of distribution and allocation of
1374	1374	34 property taxes.
1375	1375	35 "Base assessed value" means, subject to subsection (j), the
1376	1376	36 following:
1377	1377	37 (1) If an allocation provision is adopted after June 30, 1995, in a
1378	1378	38 declaratory resolution or an amendment to a declaratory
1379	1379	39 resolution establishing an economic development area:
1380	1380	40 (A) the net assessed value of all the property as finally
1381	1381	41 determined for the assessment date immediately preceding the
1382	1382	42 effective date of the allocation provision of the declaratory
1383	1383	2023 IN 45—LS 6138/DI 120 33
1384	1384	1 resolution, as adjusted under subsection (h); plus
1385	1385	2 (B) to the extent that it is not included in clause (A), the net
1386	1386	3 assessed value of property that is assessed as residential
1387	1387	4 property under the rules of the department of local government
1388	1388	5 finance, within the allocation area, as finally determined for
1389	1389	6 the current assessment date.
1390	1390	7 (2) If an allocation provision is adopted after June 30, 1997, in a
1391	1391	8 declaratory resolution or an amendment to a declaratory
1392	1392	9 resolution establishing a redevelopment project area:
1393	1393	10 (A) the net assessed value of all the property as finally
1394	1394	11 determined for the assessment date immediately preceding the
1395	1395	12 effective date of the allocation provision of the declaratory
1396	1396	13 resolution, as adjusted under subsection (h); plus
1397	1397	14 (B) to the extent that it is not included in clause (A), the net
1398	1398	15 assessed value of property that is assessed as residential
1399	1399	16 property under the rules of the department of local government
1400	1400	17 finance, within the allocation area, as finally determined for
1401	1401	18 the current assessment date.
1402	1402	19 (3) If:
1403	1403	20 (A) an allocation provision adopted before June 30, 1995, in
1404	1404	21 a declaratory resolution or an amendment to a declaratory
1405	1405	22 resolution establishing a redevelopment project area expires
1406	1406	23 after June 30, 1997; and
1407	1407	24 (B) after June 30, 1997, a new allocation provision is included
1408	1408	25 in an amendment to the declaratory resolution;
1409	1409	26 the net assessed value of all the property as finally determined for
1410	1410	27 the assessment date immediately preceding the effective date of
1411	1411	28 the allocation provision adopted after June 30, 1997, as adjusted
1412	1412	29 under subsection (h).
1413	1413	30 (4) Except as provided in subdivision (5), for all other allocation
1414	1414	31 areas, the net assessed value of all the property as finally
1415	1415	32 determined for the assessment date immediately preceding the
1416	1416	33 effective date of the allocation provision of the declaratory
1417	1417	34 resolution, as adjusted under subsection (h).
1418	1418	35 (5) If an allocation area established in an economic development
1419	1419	36 area before July 1, 1995, is expanded after June 30, 1995, the
1420	1420	37 definition in subdivision (1) applies to the expanded part of the
1421	1421	38 area added after June 30, 1995.
1422	1422	39 (6) If an allocation area established in a redevelopment project
1423	1423	40 area before July 1, 1997, is expanded after June 30, 1997, the
1424	1424	41 definition in subdivision (2) applies to the expanded part of the
1425	1425	42 area added after June 30, 1997.
1426	1426	2023 IN 45—LS 6138/DI 120 34
1427	1427	1 Except as provided in section 26.2 of this chapter, "property taxes"
1428	1428	2 means taxes imposed under IC 6-1.1 on real property. However, upon
1429	1429	3 approval by a resolution of the redevelopment commission adopted
1430	1430	4 before June 1, 1987, "property taxes" also includes taxes imposed
1431	1431	5 under IC 6-1.1 on depreciable personal property. If a redevelopment
1432	1432	6 commission adopted before June 1, 1987, a resolution to include within
1433	1433	7 the definition of property taxes, taxes imposed under IC 6-1.1 on
1434	1434	8 depreciable personal property that has a useful life in excess of eight
1435	1435	9 (8) years, the commission may by resolution determine the percentage
1436	1436	10 of taxes imposed under IC 6-1.1 on all depreciable personal property
1437	1437	11 that will be included within the definition of property taxes. However,
1438	1438	12 the percentage included must not exceed twenty-five percent (25%) of
1439	1439	13 the taxes imposed under IC 6-1.1 on all depreciable personal property.
1440	1440	14 (b) A resolution adopted under section 8 of this chapter on or before
1441	1441	15 the allocation deadline determined under subsection (i) may include a
1442	1442	16 provision with respect to the allocation and distribution of property
1443	1443	17 taxes for the purposes and in the manner provided in this section. A
1444	1444	18 resolution previously adopted may include an allocation provision by
1445	1445	19 the amendment of that resolution on or before the allocation deadline
1446	1446	20 determined under subsection (i) in accordance with the procedures
1447	1447	21 required for its original adoption. A declaratory resolution or
1448	1448	22 amendment that establishes an allocation provision must include a
1449	1449	23 specific finding of fact, supported by evidence, that the adoption of the
1450	1450	24 allocation provision will result in new property taxes in the area that
1451	1451	25 would not have been generated but for the adoption of the allocation
1452	1452	26 provision. For an allocation area established before July 1, 1995, the
1453	1453	27 expiration date of any allocation provisions for the allocation area is
1454	1454	28 June 30, 2025, or the last date of any obligations that are outstanding
1455	1455	29 on July 1, 2015, whichever is later. However, for an allocation area
1456	1456	30 identified as the Consolidated Allocation Area in the report submitted
1457	1457	31 in 2013 to the fiscal body under section 36.3 of this chapter, the
1458	1458	32 expiration date of any allocation provisions for the allocation area is
1459	1459	33 January 1, 2051. A declaratory resolution or an amendment that
1460	1460	34 establishes an allocation provision after June 30, 1995, must specify an
1461	1461	35 expiration date for the allocation provision. For an allocation area
1462	1462	36 established before July 1, 2008, the expiration date may not be more
1463	1463	37 than thirty (30) years after the date on which the allocation provision
1464	1464	38 is established. For an allocation area established after June 30, 2008,
1465	1465	39 the expiration date may not be more than twenty-five (25) years after
1466	1466	40 the date on which the first obligation was incurred to pay principal and
1467	1467	41 interest on bonds or lease rentals on leases payable from tax increment
1468	1468	42 revenues. However, with respect to bonds or other obligations that were
1469	1469	2023 IN 45—LS 6138/DI 120 35
1470	1470	1 issued before July 1, 2008, if any of the bonds or other obligations that
1471	1471	2 were scheduled when issued to mature before the specified expiration
1472	1472	3 date and that are payable only from allocated tax proceeds with respect
1473	1473	4 to the allocation area remain outstanding as of the expiration date, the
1474	1474	5 allocation provision does not expire until all of the bonds or other
1475	1475	6 obligations are no longer outstanding. The allocation provision may
1476	1476	7 apply to all or part of the redevelopment project area. The allocation
1477	1477	8 provision must require that any property taxes subsequently levied by
1478	1478	9 or for the benefit of any public body entitled to a distribution of
1479	1479	10 property taxes on taxable property in the allocation area be allocated
1480	1480	11 and distributed as follows:
1481	1481	12 (1) Except as otherwise provided in this section, the proceeds of
1482	1482	13 the taxes attributable to the lesser of:
1483	1483	14 (A) the assessed value of the property for the assessment date
1484	1484	15 with respect to which the allocation and distribution is made;
1485	1485	16 or
1486	1486	17 (B) the base assessed value;
1487	1487	18 shall be allocated to and, when collected, paid into the funds of
1488	1488	19 the respective taxing units.
1489	1489	20 (2) The excess of the proceeds of the property taxes imposed for
1490	1490	21 the assessment date with respect to which the allocation and
1491	1491	22 distribution is made that are attributable to taxes imposed after
1492	1492	23 being approved by the voters in a referendum or local public
1493	1493	24 question conducted after April 30, 2010, not otherwise included
1494	1494	25 in subdivision (1) shall be allocated to and, when collected, paid
1495	1495	26 into the funds of the taxing unit for which the referendum or local
1496	1496	27 public question was conducted.
1497	1497	28 (3) Except as otherwise provided in this section, property tax
1498	1498	29 proceeds in excess of those described in subdivisions (1) and (2)
1499	1499	30 shall be allocated to the redevelopment district and, when
1500	1500	31 collected, paid into a special fund for that allocation area that may
1501	1501	32 be used by the redevelopment district only to do one (1) or more
1502	1502	33 of the following:
1503	1503	34 (A) Pay the principal of and interest on any obligations
1504	1504	35 payable solely from allocated tax proceeds that are incurred by
1505	1505	36 the redevelopment district for the purpose of financing or
1506	1506	37 refinancing the redevelopment of that allocation area.
1507	1507	38 (B) Establish, augment, or restore the debt service reserve for
1508	1508	39 bonds payable solely or in part from allocated tax proceeds in
1509	1509	40 that allocation area.
1510	1510	41 (C) Pay the principal of and interest on bonds payable from
1511	1511	42 allocated tax proceeds in that allocation area and from the
1512	1512	2023 IN 45—LS 6138/DI 120 36
1513	1513	1 special tax levied under section 19 of this chapter.
1514	1514	2 (D) Pay the principal of and interest on bonds issued by the
1515	1515	3 consolidated city to pay for local public improvements that are
1516	1516	4 physically located in or physically connected to that allocation
1517	1517	5 area.
1518	1518	6 (E) Pay premiums on the redemption before maturity of bonds
1519	1519	7 payable solely or in part from allocated tax proceeds in that
1520	1520	8 allocation area.
1521	1521	9 (F) Make payments on leases payable from allocated tax
1522	1522	10 proceeds in that allocation area under section 17.1 of this
1523	1523	11 chapter.
1524	1524	12 (G) Reimburse the consolidated city for expenditures for local
1525	1525	13 public improvements (which include buildings, parking
1526	1526	14 facilities, and other items set forth in section 17 of this
1527	1527	15 chapter) that are physically located in or physically connected
1528	1528	16 to that allocation area.
1529	1529	17 (H) Reimburse the unit for rentals paid by it for a building or
1530	1530	18 parking facility that is physically located in or physically
1531	1531	19 connected to that allocation area under any lease entered into
1532	1532	20 under IC 36-1-10.
1533	1533	21 (I) Reimburse public and private entities for expenses incurred
1534	1534	22 in training employees of industrial facilities that are located:
1535	1535	23 (i) in the allocation area; and
1536	1536	24 (ii) on a parcel of real property that has been classified as
1537	1537	25 industrial property under the rules of the department of local
1538	1538	26 government finance.
1539	1539	27 However, the total amount of money spent for this purpose in
1540	1540	28 any year may not exceed the total amount of money in the
1541	1541	29 allocation fund that is attributable to property taxes paid by the
1542	1542	30 industrial facilities described in this clause. The
1543	1543	31 reimbursements under this clause must be made within three
1544	1544	32 (3) years after the date on which the investments that are the
1545	1545	33 basis for the increment financing are made.
1546	1546	34 (J) Pay the costs of carrying out an eligible efficiency project
1547	1547	35 (as defined in IC 36-9-41-1.5) within the unit that established
1548	1548	36 the redevelopment commission. However, property tax
1549	1549	37 proceeds may be used under this clause to pay the costs of
1550	1550	38 carrying out an eligible efficiency project only if those
1551	1551	39 property tax proceeds exceed the amount necessary to do the
1552	1552	40 following:
1553	1553	41 (i) Make, when due, any payments required under clauses
1554	1554	42 (A) through (I), including any payments of principal and
1555	1555	2023 IN 45—LS 6138/DI 120 37
1556	1556	1 interest on bonds and other obligations payable under this
1557	1557	2 subdivision, any payments of premiums under this
1558	1558	3 subdivision on the redemption before maturity of bonds, and
1559	1559	4 any payments on leases payable under this subdivision.
1560	1560	5 (ii) Make any reimbursements required under this
1561	1561	6 subdivision.
1562	1562	7 (iii) Pay any expenses required under this subdivision.
1563	1563	8 (iv) Establish, augment, or restore any debt service reserve
1564	1564	9 under this subdivision.
1565	1565	10 (K) Expend money and provide financial assistance as
1566	1566	11 authorized in section 7(a)(21) of this chapter.
1567	1567	12 The special fund may not be used for operating expenses of the
1568	1568	13 commission.
1569	1569	14 (4) Before June 15 of each year, the commission shall do the
1570	1570	15 following:
1571	1571	16 (A) Determine the amount, if any, by which the assessed value
1572	1572	17 of the taxable property in the allocation area for the most
1573	1573	18 recent assessment date minus the base assessed value, when
1574	1574	19 multiplied by the estimated tax rate of the allocation area will
1575	1575	20 exceed the amount of assessed value needed to provide the
1576	1576	21 property taxes necessary to make, when due, principal and
1577	1577	22 interest payments on bonds described in subdivision (3) plus
1578	1578	23 the amount necessary for other purposes described in
1579	1579	24 subdivision (3) and subsection (g).
1580	1580	25 (B) Provide a written notice to the county auditor, the
1581	1581	26 legislative body of the consolidated city, the officers who are
1582	1582	27 authorized to fix budgets, tax rates, and tax levies under
1583	1583	28 IC 6-1.1-17-5 for each of the other taxing units that is wholly
1584	1584	29 or partly located within the allocation area, and (in an
1585	1585	30 electronic format) the department of local government finance.
1586	1586	31 The notice must:
1587	1587	32 (i) state the amount, if any, of excess assessed value that the
1588	1588	33 commission has determined may be allocated to the
1589	1589	34 respective taxing units in the manner prescribed in
1590	1590	35 subdivision (1); or
1591	1591	36 (ii) state that the commission has determined that there is no
1592	1592	37 excess assessed value that may be allocated to the respective
1593	1593	38 taxing units in the manner prescribed in subdivision (1).
1594	1594	39 The county auditor shall allocate to the respective taxing units
1595	1595	40 the amount, if any, of excess assessed value determined by the
1596	1596	41 commission. The commission may not authorize an allocation
1597	1597	42 to the respective taxing units under this subdivision if to do so
1598	1598	2023 IN 45—LS 6138/DI 120 38
1599	1599	1 would endanger the interests of the holders of bonds described
1600	1600	2 in subdivision (3).
1601	1601	3 (C) If:
1602	1602	4 (i) the amount of excess assessed value determined by the
1603	1603	5 commission is expected to generate more than two hundred
1604	1604	6 percent (200%) of the amount of allocated tax proceeds
1605	1605	7 necessary to make, when due, principal and interest
1606	1606	8 payments on bonds described in subdivision (3); plus
1607	1607	9 (ii) the amount necessary for other purposes described in
1608	1608	10 subdivision (3) and subsection (g);
1609	1609	11 the commission shall submit to the legislative body of the unit
1610	1610	12 the commission's determination of the excess assessed value
1611	1611	13 that the commission proposes to allocate to the respective
1612	1612	14 taxing units in the manner prescribed in subdivision (1). The
1613	1613	15 legislative body of the unit may approve the commission's
1614	1614	16 determination or modify the amount of the excess assessed
1615	1615	17 value that will be allocated to the respective taxing units in the
1616	1616	18 manner prescribed in subdivision (1).
1617	1617	19 (c) For the purpose of allocating taxes levied by or for any taxing
1618	1618	20 unit or units, the assessed value of taxable property in a territory in the
1619	1619	21 allocation area that is annexed by any taxing unit after the effective
1620	1620	22 date of the allocation provision of the resolution is the lesser of:
1621	1621	23 (1) the assessed value of the property for the assessment date with
1622	1622	24 respect to which the allocation and distribution is made; or
1623	1623	25 (2) the base assessed value.
1624	1624	26 (d) Property tax proceeds allocable to the redevelopment district
1625	1625	27 under subsection (b)(3) may, subject to subsection (b)(4), be
1626	1626	28 irrevocably pledged by the redevelopment district for payment as set
1627	1627	29 forth in subsection (b)(3).
1628	1628	30 (e) Notwithstanding any other law, each assessor shall, upon
1629	1629	31 petition of the commission, reassess the taxable property situated upon
1630	1630	32 or in, or added to, the allocation area, effective on the next assessment
1631	1631	33 date after the petition.
1632	1632	34 (f) Notwithstanding any other law, the assessed value of all taxable
1633	1633	35 property in the allocation area, for purposes of tax limitation, property
1634	1634	36 tax replacement, and formulation of the budget, tax rate, and tax levy
1635	1635	37 for each political subdivision in which the property is located is the
1636	1636	38 lesser of:
1637	1637	39 (1) the assessed value of the property as valued without regard to
1638	1638	40 this section; or
1639	1639	41 (2) the base assessed value.
1640	1640	42 (g) If any part of the allocation area is located in an enterprise zone
1641	1641	2023 IN 45—LS 6138/DI 120 39
1642	1642	1 created under IC 5-28-15, the unit that designated the allocation area
1643	1643	2 shall create funds as specified in this subsection. A unit that has
1644	1644	3 obligations, bonds, or leases payable from allocated tax proceeds under
1645	1645	4 subsection (b)(3) shall establish an allocation fund for the purposes
1646	1646	5 specified in subsection (b)(3) and a special zone fund. Such a unit
1647	1647	6 shall, until the end of the enterprise zone phase out period, deposit each
1648	1648	7 year in the special zone fund the amount in the allocation fund derived
1649	1649	8 from property tax proceeds in excess of those described in subsection
1650	1650	9 (b)(1) and (b)(2) from property located in the enterprise zone that
1651	1651	10 exceeds the amount sufficient for the purposes specified in subsection
1652	1652	11 (b)(3) for the year. A unit that has no obligations, bonds, or leases
1653	1653	12 payable from allocated tax proceeds under subsection (b)(3) shall
1654	1654	13 establish a special zone fund and deposit all the property tax proceeds
1655	1655	14 in excess of those described in subsection (b)(1) and (b)(2) in the fund
1656	1656	15 derived from property tax proceeds in excess of those described in
1657	1657	16 subsection (b)(1) and (b)(2) from property located in the enterprise
1658	1658	17 zone. The unit that creates the special zone fund shall use the fund,
1659	1659	18 based on the recommendations of the urban enterprise association, for
1660	1660	19 one (1) or more of the following purposes:
1661	1661	20 (1) To pay for programs in job training, job enrichment, and basic
1662	1662	21 skill development designed to benefit residents and employers in
1663	1663	22 the enterprise zone. The programs must reserve at least one-half
1664	1664	23 (1/2) of the enrollment in any session for residents of the
1665	1665	24 enterprise zone.
1666	1666	25 (2) To make loans and grants for the purpose of stimulating
1667	1667	26 business activity in the enterprise zone or providing employment
1668	1668	27 for enterprise zone residents in the enterprise zone. These loans
1669	1669	28 and grants may be made to the following:
1670	1670	29 (A) Businesses operating in the enterprise zone.
1671	1671	30 (B) Businesses that will move their operations to the enterprise
1672	1672	31 zone if such a loan or grant is made.
1673	1673	32 (3) To provide funds to carry out other purposes specified in
1674	1674	33 subsection (b)(3). However, where reference is made in
1675	1675	34 subsection (b)(3) to the allocation area, the reference refers for
1676	1676	35 purposes of payments from the special zone fund only to that part
1677	1677	36 of the allocation area that is also located in the enterprise zone.
1678	1678	37 (h) The state board of accounts and department of local government
1679	1679	38 finance shall make the rules and prescribe the forms and procedures
1680	1680	39 that they consider expedient for the implementation of this chapter.
1681	1681	40 After each reassessment under a reassessment plan prepared under
1682	1682	41 IC 6-1.1-4-4.2, the department of local government finance shall adjust
1683	1683	42 the base assessed value one (1) time to neutralize any effect of the
1684	1684	2023 IN 45—LS 6138/DI 120 40
1685	1685	1 reassessment of the real property in the area on the property tax
1686	1686	2 proceeds allocated to the redevelopment district under this section.
1687	1687	3 After each annual adjustment for agricultural land under
1688	1688	4 IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the department of local government
1689	1689	5 finance shall adjust the base assessed value to neutralize any effect of
1690	1690	6 the annual adjustment on the property tax proceeds allocated to the
1691	1691	7 redevelopment district under this section. However, the adjustments
1692	1692	8 under this subsection may not include the effect of property tax
1693	1693	9 abatements under IC 6-1.1-12.1, and these adjustments may not
1694	1694	10 produce less property tax proceeds allocable to the redevelopment
1695	1695	11 district under subsection (b)(3) than would otherwise have been
1696	1696	12 received if the reassessment under the reassessment plan or annual
1697	1697	13 adjustment for agricultural land had not occurred. The department of
1698	1698	14 local government finance may prescribe procedures for county and
1699	1699	15 township officials to follow to assist the department in making the
1700	1700	16 adjustments.
1701	1701	17 (i) The allocation deadline referred to in subsection (b) is
1702	1702	18 determined in the following manner:
1703	1703	19 (1) The initial allocation deadline is December 31, 2011.
1704	1704	20 (2) Subject to subdivision (3), the initial allocation deadline and
1705	1705	21 subsequent allocation deadlines are automatically extended in
1706	1706	22 increments of five (5) years, so that allocation deadlines
1707	1707	23 subsequent to the initial allocation deadline fall on December 31,
1708	1708	24 2016, and December 31 of each fifth year thereafter.
1709	1709	25 (3) At least one (1) year before the date of an allocation deadline
1710	1710	26 determined under subdivision (2), the general assembly may enact
1711	1711	27 a law that:
1712	1712	28 (A) terminates the automatic extension of allocation deadlines
1713	1713	29 under subdivision (2); and
1714	1714	30 (B) specifically designates a particular date as the final
1715	1715	31 allocation deadline.
1716	1716	32 (j) If the commission adopts a declaratory resolution or an
1717	1717	33 amendment to a declaratory resolution that contains an allocation
1718	1718	34 provision and the commission makes either of the filings required
1719	1719	35 under section 10(e) of this chapter after the first anniversary of the
1720	1720	36 effective date of the allocation provision, the auditor of the county in
1721	1721	37 which the unit is located shall compute the base assessed value for the
1722	1722	38 allocation area using the assessment date immediately preceding the
1723	1723	39 later of:
1724	1724	40 (1) the date on which the documents are filed with the county
1725	1725	41 auditor; or
1726	1726	42 (2) the date on which the documents are filed with the department
1727	1727	2023 IN 45—LS 6138/DI 120 41
1728	1728	1 of local government finance.
1729	1729	2 (k) For an allocation area established after June 30, 2024,
1730	1730	3 "residential property" refers to the assessed value of property that is
1731	1731	4 allocated to the one percent (1%) homestead land and improvement
1732	1732	5 categories in the county tax and billing software system, along with the
1733	1733	6 residential assessed value as defined for purposes of calculating the
1734	1734	7 rate for the local income tax property tax relief credit designated for
1735	1735	8 residential property under IC 6-3.6-5-6(d)(3).
1736	1736	9 SECTION 18. IC 36-7-15.1-53, AS AMENDED BY P.L.174-2022,
1737	1737	10 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1738	1738	11 JANUARY 1, 2024]: Sec. 53. (a) As used in this section:
1739	1739	12 "Allocation area" means that part of a redevelopment project area
1740	1740	13 to which an allocation provision of a resolution adopted under section
1741	1741	14 40 of this chapter refers for purposes of distribution and allocation of
1742	1742	15 property taxes.
1743	1743	16 "Base assessed value" means, subject to subsection (j):
1744	1744	17 (1) the net assessed value of all the property as finally determined
1745	1745	18 for the assessment date immediately preceding the effective date
1746	1746	19 of the allocation provision of the declaratory resolution, as
1747	1747	20 adjusted under subsection (h); plus
1748	1748	21 (2) to the extent that it is not included in subdivision (1), the net
1749	1749	22 assessed value of property that is assessed as residential property
1750	1750	23 under the rules of the department of local government finance, as
1751	1751	24 finally determined for the current assessment date.
1752	1752	25 Except as provided in section 55 of this chapter, "property taxes"
1753	1753	26 means taxes imposed under IC 6-1.1 on real property.
1754	1754	27 (b) A resolution adopted under section 40 of this chapter on or
1755	1755	28 before the allocation deadline determined under subsection (i) may
1756	1756	29 include a provision with respect to the allocation and distribution of
1757	1757	30 property taxes for the purposes and in the manner provided in this
1758	1758	31 section. A resolution previously adopted may include an allocation
1759	1759	32 provision by the amendment of that resolution on or before the
1760	1760	33 allocation deadline determined under subsection (i) in accordance with
1761	1761	34 the procedures required for its original adoption. A declaratory
1762	1762	35 resolution or an amendment that establishes an allocation provision
1763	1763	36 must be approved by resolution of the legislative body of the excluded
1764	1764	37 city and must specify an expiration date for the allocation provision.
1765	1765	38 For an allocation area established before July 1, 2008, the expiration
1766	1766	39 date may not be more than thirty (30) years after the date on which the
1767	1767	40 allocation provision is established. For an allocation area established
1768	1768	41 after June 30, 2008, the expiration date may not be more than
1769	1769	42 twenty-five (25) years after the date on which the first obligation was
1770	1770	2023 IN 45—LS 6138/DI 120 42
1771	1771	1 incurred to pay principal and interest on bonds or lease rentals on
1772	1772	2 leases payable from tax increment revenues. However, with respect to
1773	1773	3 bonds or other obligations that were issued before July 1, 2008, if any
1774	1774	4 of the bonds or other obligations that were scheduled when issued to
1775	1775	5 mature before the specified expiration date and that are payable only
1776	1776	6 from allocated tax proceeds with respect to the allocation area remain
1777	1777	7 outstanding as of the expiration date, the allocation provision does not
1778	1778	8 expire until all of the bonds or other obligations are no longer
1779	1779	9 outstanding. The allocation provision may apply to all or part of the
1780	1780	10 redevelopment project area. The allocation provision must require that
1781	1781	11 any property taxes subsequently levied by or for the benefit of any
1782	1782	12 public body entitled to a distribution of property taxes on taxable
1783	1783	13 property in the allocation area be allocated and distributed as follows:
1784	1784	14 (1) Except as otherwise provided in this section, the proceeds of
1785	1785	15 the taxes attributable to the lesser of:
1786	1786	16 (A) the assessed value of the property for the assessment date
1787	1787	17 with respect to which the allocation and distribution is made;
1788	1788	18 or
1789	1789	19 (B) the base assessed value;
1790	1790	20 shall be allocated to and, when collected, paid into the funds of
1791	1791	21 the respective taxing units.
1792	1792	22 (2) The excess of the proceeds of the property taxes imposed for
1793	1793	23 the assessment date with respect to which the allocation and
1794	1794	24 distribution is made that are attributable to taxes imposed after
1795	1795	25 being approved by the voters in a referendum or local public
1796	1796	26 question conducted after April 30, 2010, not otherwise included
1797	1797	27 in subdivision (1) shall be allocated to and, when collected, paid
1798	1798	28 into the funds of the taxing unit for which the referendum or local
1799	1799	29 public question was conducted.
1800	1800	30 (3) Except as otherwise provided in this section, property tax
1801	1801	31 proceeds in excess of those described in subdivisions (1) and (2)
1802	1802	32 shall be allocated to the redevelopment district and, when
1803	1803	33 collected, paid into a special fund for that allocation area that may
1804	1804	34 be used by the redevelopment district only to do one (1) or more
1805	1805	35 of the following:
1806	1806	36 (A) Pay the principal of and interest on any obligations
1807	1807	37 payable solely from allocated tax proceeds that are incurred by
1808	1808	38 the redevelopment district for the purpose of financing or
1809	1809	39 refinancing the redevelopment of that allocation area.
1810	1810	40 (B) Establish, augment, or restore the debt service reserve for
1811	1811	41 bonds payable solely or in part from allocated tax proceeds in
1812	1812	42 that allocation area.
1813	1813	2023 IN 45—LS 6138/DI 120 43
1814	1814	1 (C) Pay the principal of and interest on bonds payable from
1815	1815	2 allocated tax proceeds in that allocation area and from the
1816	1816	3 special tax levied under section 50 of this chapter.
1817	1817	4 (D) Pay the principal of and interest on bonds issued by the
1818	1818	5 excluded city to pay for local public improvements that are
1819	1819	6 physically located in or physically connected to that allocation
1820	1820	7 area.
1821	1821	8 (E) Pay premiums on the redemption before maturity of bonds
1822	1822	9 payable solely or in part from allocated tax proceeds in that
1823	1823	10 allocation area.
1824	1824	11 (F) Make payments on leases payable from allocated tax
1825	1825	12 proceeds in that allocation area under section 46 of this
1826	1826	13 chapter.
1827	1827	14 (G) Reimburse the excluded city for expenditures for local
1828	1828	15 public improvements (which include buildings, park facilities,
1829	1829	16 and other items set forth in section 45 of this chapter) that are
1830	1830	17 physically located in or physically connected to that allocation
1831	1831	18 area.
1832	1832	19 (H) Reimburse the unit for rentals paid by it for a building or
1833	1833	20 parking facility that is physically located in or physically
1834	1834	21 connected to that allocation area under any lease entered into
1835	1835	22 under IC 36-1-10.
1836	1836	23 (I) Reimburse public and private entities for expenses incurred
1837	1837	24 in training employees of industrial facilities that are located:
1838	1838	25 (i) in the allocation area; and
1839	1839	26 (ii) on a parcel of real property that has been classified as
1840	1840	27 industrial property under the rules of the department of local
1841	1841	28 government finance.
1842	1842	29 However, the total amount of money spent for this purpose in
1843	1843	30 any year may not exceed the total amount of money in the
1844	1844	31 allocation fund that is attributable to property taxes paid by the
1845	1845	32 industrial facilities described in this clause. The
1846	1846	33 reimbursements under this clause must be made within three
1847	1847	34 (3) years after the date on which the investments that are the
1848	1848	35 basis for the increment financing are made.
1849	1849	36 The special fund may not be used for operating expenses of the
1850	1850	37 commission.
1851	1851	38 (4) Before June 15 of each year, the commission shall do the
1852	1852	39 following:
1853	1853	40 (A) Determine the amount, if any, by which the assessed value
1854	1854	41 of the taxable property in the allocation area for the most
1855	1855	42 recent assessment date minus the base assessed value, when
1856	1856	2023 IN 45—LS 6138/DI 120 44
1857	1857	1 multiplied by the estimated tax rate of the allocation area, will
1858	1858	2 exceed the amount of assessed value needed to provide the
1859	1859	3 property taxes necessary to make, when due, principal and
1860	1860	4 interest payments on bonds described in subdivision (3) plus
1861	1861	5 the amount necessary for other purposes described in
1862	1862	6 subdivision (3) and subsection (g).
1863	1863	7 (B) Provide a written notice to the county auditor, the fiscal
1864	1864	8 body of the county or municipality that established the
1865	1865	9 department of redevelopment, the officers who are authorized
1866	1866	10 to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
1867	1867	11 each of the other taxing units that is wholly or partly located
1868	1868	12 within the allocation area, and (in an electronic format) the
1869	1869	13 department of local government finance. The notice must:
1870	1870	14 (i) state the amount, if any, of excess assessed value that the
1871	1871	15 commission has determined may be allocated to the
1872	1872	16 respective taxing units in the manner prescribed in
1873	1873	17 subdivision (1); or
1874	1874	18 (ii) state that the commission has determined that there is no
1875	1875	19 excess assessed value that may be allocated to the respective
1876	1876	20 taxing units in the manner prescribed in subdivision (1).
1877	1877	21 The county auditor shall allocate to the respective taxing units
1878	1878	22 the amount, if any, of excess assessed value determined by the
1879	1879	23 commission. The commission may not authorize an allocation
1880	1880	24 to the respective taxing units under this subdivision if to do so
1881	1881	25 would endanger the interests of the holders of bonds described
1882	1882	26 in subdivision (3).
1883	1883	27 (c) For the purpose of allocating taxes levied by or for any taxing
1884	1884	28 unit or units, the assessed value of taxable property in a territory in the
1885	1885	29 allocation area that is annexed by any taxing unit after the effective
1886	1886	30 date of the allocation provision of the resolution is the lesser of:
1887	1887	31 (1) the assessed value of the property for the assessment date with
1888	1888	32 respect to which the allocation and distribution is made; or
1889	1889	33 (2) the base assessed value.
1890	1890	34 (d) Property tax proceeds allocable to the redevelopment district
1891	1891	35 under subsection (b)(3) may, subject to subsection (b)(4), be
1892	1892	36 irrevocably pledged by the redevelopment district for payment as set
1893	1893	37 forth in subsection (b)(3).
1894	1894	38 (e) Notwithstanding any other law, each assessor shall, upon
1895	1895	39 petition of the commission, reassess the taxable property situated upon
1896	1896	40 or in, or added to, the allocation area, effective on the next assessment
1897	1897	41 date after the petition.
1898	1898	42 (f) Notwithstanding any other law, the assessed value of all taxable
1899	1899	2023 IN 45—LS 6138/DI 120 45
1900	1900	1 property in the allocation area, for purposes of tax limitation, property
1901	1901	2 tax replacement, and formulation of the budget, tax rate, and tax levy
1902	1902	3 for each political subdivision in which the property is located, is the
1903	1903	4 lesser of:
1904	1904	5 (1) the assessed value of the property as valued without regard to
1905	1905	6 this section; or
1906	1906	7 (2) the base assessed value.
1907	1907	8 (g) If any part of the allocation area is located in an enterprise zone
1908	1908	9 created under IC 5-28-15, the unit that designated the allocation area
1909	1909	10 shall create funds as specified in this subsection. A unit that has
1910	1910	11 obligations, bonds, or leases payable from allocated tax proceeds under
1911	1911	12 subsection (b)(3) shall establish an allocation fund for the purposes
1912	1912	13 specified in subsection (b)(3) and a special zone fund. Such a unit
1913	1913	14 shall, until the end of the enterprise zone phase out period, deposit each
1914	1914	15 year in the special zone fund the amount in the allocation fund derived
1915	1915	16 from property tax proceeds in excess of those described in subsection
1916	1916	17 (b)(1) and (b)(2) from property located in the enterprise zone that
1917	1917	18 exceeds the amount sufficient for the purposes specified in subsection
1918	1918	19 (b)(3) for the year. A unit that has no obligations, bonds, or leases
1919	1919	20 payable from allocated tax proceeds under subsection (b)(3) shall
1920	1920	21 establish a special zone fund and deposit all the property tax proceeds
1921	1921	22 in excess of those described in subsection (b)(1) and (b)(2) in the fund
1922	1922	23 derived from property tax proceeds in excess of those described in
1923	1923	24 subsection (b)(1) and (b)(2) from property located in the enterprise
1924	1924	25 zone. The unit that creates the special zone fund shall use the fund,
1925	1925	26 based on the recommendations of the urban enterprise association, for
1926	1926	27 one (1) or more of the following purposes:
1927	1927	28 (1) To pay for programs in job training, job enrichment, and basic
1928	1928	29 skill development designed to benefit residents and employers in
1929	1929	30 the enterprise zone. The programs must reserve at least one-half
1930	1930	31 (1/2) of the enrollment in any session for residents of the
1931	1931	32 enterprise zone.
1932	1932	33 (2) To make loans and grants for the purpose of stimulating
1933	1933	34 business activity in the enterprise zone or providing employment
1934	1934	35 for enterprise zone residents in an enterprise zone. These loans
1935	1935	36 and grants may be made to the following:
1936	1936	37 (A) Businesses operating in the enterprise zone.
1937	1937	38 (B) Businesses that will move their operations to the enterprise
1938	1938	39 zone if such a loan or grant is made.
1939	1939	40 (3) To provide funds to carry out other purposes specified in
1940	1940	41 subsection (b)(3). However, where reference is made in
1941	1941	42 subsection (b)(3) to the allocation area, the reference refers, for
1942	1942	2023 IN 45—LS 6138/DI 120 46
1943	1943	1 purposes of payments from the special zone fund, only to that part
1944	1944	2 of the allocation area that is also located in the enterprise zone.
1945	1945	3 (h) The state board of accounts and department of local government
1946	1946	4 finance shall make the rules and prescribe the forms and procedures
1947	1947	5 that they consider expedient for the implementation of this chapter.
1948	1948	6 After each reassessment of real property in an area under a county's
1949	1949	7 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
1950	1950	8 local government finance shall adjust the base assessed value one (1)
1951	1951	9 time to neutralize any effect of the reassessment of the real property in
1952	1952	10 the area on the property tax proceeds allocated to the redevelopment
1953	1953	11 district under this section. After each annual adjustment for
1954	1954	12 agricultural land under IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the
1955	1955	13 department of local government finance shall adjust the base assessed
1956	1956	14 value to neutralize any effect of the annual adjustment on the property
1957	1957	15 tax proceeds allocated to the redevelopment district under this section.
1958	1958	16 However, the adjustments under this subsection may not include the
1959	1959	17 effect of property tax abatements under IC 6-1.1-12.1, and these
1960	1960	18 adjustments may not produce less property tax proceeds allocable to
1961	1961	19 the redevelopment district under subsection (b)(3) than would
1962	1962	20 otherwise have been received if the reassessment under the county's
1963	1963	21 reassessment plan or annual adjustment for agricultural land had not
1964	1964	22 occurred. The department of local government finance may prescribe
1965	1965	23 procedures for county and township officials to follow to assist the
1966	1966	24 department in making the adjustments.
1967	1967	25 (i) The allocation deadline referred to in subsection (b) is
1968	1968	26 determined in the following manner:
1969	1969	27 (1) The initial allocation deadline is December 31, 2011.
1970	1970	28 (2) Subject to subdivision (3), the initial allocation deadline and
1971	1971	29 subsequent allocation deadlines are automatically extended in
1972	1972	30 increments of five (5) years, so that allocation deadlines
1973	1973	31 subsequent to the initial allocation deadline fall on December 31,
1974	1974	32 2016, and December 31 of each fifth year thereafter.
1975	1975	33 (3) At least one (1) year before the date of an allocation deadline
1976	1976	34 determined under subdivision (2), the general assembly may enact
1977	1977	35 a law that:
1978	1978	36 (A) terminates the automatic extension of allocation deadlines
1979	1979	37 under subdivision (2); and
1980	1980	38 (B) specifically designates a particular date as the final
1981	1981	39 allocation deadline.
1982	1982	40 (j) If the commission adopts a declaratory resolution or an
1983	1983	41 amendment to a declaratory resolution that contains an allocation
1984	1984	42 provision and the commission makes either of the filings required
1985	1985	2023 IN 45—LS 6138/DI 120 47
1986	1986	1 under section 10(e) of this chapter after the first anniversary of the
1987	1987	2 effective date of the allocation provision, the auditor of the county in
1988	1988	3 which the unit is located shall compute the base assessed value for the
1989	1989	4 allocation area using the assessment date immediately preceding the
1990	1990	5 later of:
1991	1991	6 (1) the date on which the documents are filed with the county
1992	1992	7 auditor; or
1993	1993	8 (2) the date on which the documents are filed with the department
1994	1994	9 of local government finance.
1995	1995	10 (k) For an allocation area established after June 30, 2024,
1996	1996	11 "residential property" refers to the assessed value of property that is
1997	1997	12 allocated to the one percent (1%) homestead land and improvement
1998	1998	13 categories in the county tax and billing software system, along with the
1999	1999	14 residential assessed value as defined for purposes of calculating the
2000	2000	15 rate for the local income tax property tax relief credit designated for
2001	2001	16 residential property under IC 6-3.6-5-6(d)(3).
2002	2002	17 SECTION 19. IC 36-7-30-25, AS AMENDED BY P.L.174-2022,
2003	2003	18 SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2004	2004	19 JANUARY 1, 2024]: Sec. 25. (a) The following definitions apply
2005	2005	20 throughout this section:
2006	2006	21 (1) "Allocation area" means that part of a military base reuse area
2007	2007	22 to which an allocation provision of a declaratory resolution
2008	2008	23 adopted under section 10 of this chapter refers for purposes of
2009	2009	24 distribution and allocation of property taxes.
2010	2010	25 (2) "Base assessed value" means, subject to subsection (i):
2011	2011	26 (A) the net assessed value of all the property as finally
2012	2012	27 determined for the assessment date immediately preceding the
2013	2013	28 adoption date of the allocation provision of the declaratory
2014	2014	29 resolution, as adjusted under subsection (h); plus
2015	2015	30 (B) to the extent that it is not included in clause (A) or (C), the
2016	2016	31 net assessed value of any and all parcels or classes of parcels
2017	2017	32 identified as part of the base assessed value in the declaratory
2018	2018	33 resolution or an amendment thereto, as finally determined for
2019	2019	34 any subsequent assessment date; plus
2020	2020	35 (C) to the extent that it is not included in clause (A) or (B), the
2021	2021	36 net assessed value of property that is assessed as residential
2022	2022	37 property under the rules of the department of local government
2023	2023	38 finance, within the allocation area, as finally determined for
2024	2024	39 the current assessment date.
2025	2025	40 Clause (C) applies only to allocation areas established in a
2026	2026	41 military reuse area after June 30, 1997, and to the part of an
2027	2027	42 allocation area that was established before June 30, 1997, and that
2028	2028	2023 IN 45—LS 6138/DI 120 48
2029	2029	1 is added to an existing allocation area after June 30, 1997.
2030	2030	2 (3) "Property taxes" means taxes imposed under IC 6-1.1 on real
2031	2031	3 property.
2032	2032	4 (b) A declaratory resolution adopted under section 10 of this chapter
2033	2033	5 before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
2034	2034	6 resolutions adopted under IC 36-7-14-15 may include a provision with
2035	2035	7 respect to the allocation and distribution of property taxes for the
2036	2036	8 purposes and in the manner provided in this section. A declaratory
2037	2037	9 resolution previously adopted may include an allocation provision by
2038	2038	10 the amendment of that declaratory resolution in accordance with the
2039	2039	11 procedures set forth in section 13 of this chapter. The allocation
2040	2040	12 provision may apply to all or part of the military base reuse area. The
2041	2041	13 allocation provision must require that any property taxes subsequently
2042	2042	14 levied by or for the benefit of any public body entitled to a distribution
2043	2043	15 of property taxes on taxable property in the allocation area be allocated
2044	2044	16 and distributed as follows:
2045	2045	17 (1) Except as otherwise provided in this section, the proceeds of
2046	2046	18 the taxes attributable to the lesser of:
2047	2047	19 (A) the assessed value of the property for the assessment date
2048	2048	20 with respect to which the allocation and distribution is made;
2049	2049	21 or
2050	2050	22 (B) the base assessed value;
2051	2051	23 shall be allocated to and, when collected, paid into the funds of
2052	2052	24 the respective taxing units.
2053	2053	25 (2) The excess of the proceeds of the property taxes imposed for
2054	2054	26 the assessment date with respect to which the allocation and
2055	2055	27 distribution are made that are attributable to taxes imposed after
2056	2056	28 being approved by the voters in a referendum or local public
2057	2057	29 question conducted after April 30, 2010, not otherwise included
2058	2058	30 in subdivision (1) shall be allocated to and, when collected, paid
2059	2059	31 into the funds of the taxing unit for which the referendum or local
2060	2060	32 public question was conducted.
2061	2061	33 (3) Except as otherwise provided in this section, property tax
2062	2062	34 proceeds in excess of those described in subdivisions (1) and (2)
2063	2063	35 shall be allocated to the military base reuse district and, when
2064	2064	36 collected, paid into an allocation fund for that allocation area that
2065	2065	37 may be used by the military base reuse district and only to do one
2066	2066	38 (1) or more of the following:
2067	2067	39 (A) Pay the principal of and interest and redemption premium
2068	2068	40 on any obligations incurred by the military base reuse district
2069	2069	41 or any other entity for the purpose of financing or refinancing
2070	2070	42 military base reuse activities in or directly serving or
2071	2071	2023 IN 45—LS 6138/DI 120 49
2072	2072	1 benefiting that allocation area.
2073	2073	2 (B) Establish, augment, or restore the debt service reserve for
2074	2074	3 bonds payable solely or in part from allocated tax proceeds in
2075	2075	4 that allocation area or from other revenues of the reuse
2076	2076	5 authority, including lease rental revenues.
2077	2077	6 (C) Make payments on leases payable solely or in part from
2078	2078	7 allocated tax proceeds in that allocation area.
2079	2079	8 (D) Reimburse any other governmental body for expenditures
2080	2080	9 made for local public improvements (or structures) in or
2081	2081	10 directly serving or benefiting that allocation area.
2082	2082	11 (E) Pay expenses incurred by the reuse authority, any other
2083	2083	12 department of the unit, or a department of another
2084	2084	13 governmental entity for local public improvements or
2085	2085	14 structures that are in the allocation area or directly serving or
2086	2086	15 benefiting the allocation area, including expenses for the
2087	2087	16 operation and maintenance of these local public improvements
2088	2088	17 or structures if the reuse authority determines those operation
2089	2089	18 and maintenance expenses are necessary or desirable to carry
2090	2090	19 out the purposes of this chapter.
2091	2091	20 (F) Reimburse public and private entities for expenses
2092	2092	21 incurred in training employees of industrial facilities that are
2093	2093	22 located:
2094	2094	23 (i) in the allocation area; and
2095	2095	24 (ii) on a parcel of real property that has been classified as
2096	2096	25 industrial property under the rules of the department of local
2097	2097	26 government finance.
2098	2098	27 However, the total amount of money spent for this purpose in
2099	2099	28 any year may not exceed the total amount of money in the
2100	2100	29 allocation fund that is attributable to property taxes paid by the
2101	2101	30 industrial facilities described in this clause. The
2102	2102	31 reimbursements under this clause must be made not more than
2103	2103	32 three (3) years after the date on which the investments that are
2104	2104	33 the basis for the increment financing are made.
2105	2105	34 (G) Expend money and provide financial assistance as
2106	2106	35 authorized in section 9(a)(25) of this chapter.
2107	2107	36 Except as provided in clause (E), the allocation fund may not be
2108	2108	37 used for operating expenses of the reuse authority.
2109	2109	38 (4) Except as provided in subsection (g), before July 15 of each
2110	2110	39 year the reuse authority shall do the following:
2111	2111	40 (A) Determine the amount, if any, by which property taxes
2112	2112	41 payable to the allocation fund in the following year will exceed
2113	2113	42 the amount of property taxes necessary to make, when due,
2114	2114	2023 IN 45—LS 6138/DI 120 50
2115	2115	1 principal and interest payments on bonds described in
2116	2116	2 subdivision (3) plus the amount necessary for other purposes
2117	2117	3 described in subdivision (3).
2118	2118	4 (B) Provide a written notice to the county auditor, the fiscal
2119	2119	5 body of the unit that established the reuse authority, and the
2120	2120	6 officers who are authorized to fix budgets, tax rates, and tax
2121	2121	7 levies under IC 6-1.1-17-5 for each of the other taxing units
2122	2122	8 that is wholly or partly located within the allocation area. The
2123	2123	9 notice must:
2124	2124	10 (i) state the amount, if any, of excess property taxes that the
2125	2125	11 reuse authority has determined may be paid to the respective
2126	2126	12 taxing units in the manner prescribed in subdivision (1); or
2127	2127	13 (ii) state that the reuse authority has determined that there
2128	2128	14 are no excess property tax proceeds that may be allocated to
2129	2129	15 the respective taxing units in the manner prescribed in
2130	2130	16 subdivision (1).
2131	2131	17 The county auditor shall allocate to the respective taxing units
2132	2132	18 the amount, if any, of excess property tax proceeds determined
2133	2133	19 by the reuse authority. The reuse authority may not authorize
2134	2134	20 a payment to the respective taxing units under this subdivision
2135	2135	21 if to do so would endanger the interest of the holders of bonds
2136	2136	22 described in subdivision (3) or lessors under section 19 of this
2137	2137	23 chapter.
2138	2138	24 (c) For the purpose of allocating taxes levied by or for any taxing
2139	2139	25 unit or units, the assessed value of taxable property in a territory in the
2140	2140	26 allocation area that is annexed by a taxing unit after the effective date
2141	2141	27 of the allocation provision of the declaratory resolution is the lesser of:
2142	2142	28 (1) the assessed value of the property for the assessment date with
2143	2143	29 respect to which the allocation and distribution is made; or
2144	2144	30 (2) the base assessed value.
2145	2145	31 (d) Property tax proceeds allocable to the military base reuse district
2146	2146	32 under subsection (b)(3) may, subject to subsection (b)(4), be
2147	2147	33 irrevocably pledged by the military base reuse district for payment as
2148	2148	34 set forth in subsection (b)(3).
2149	2149	35 (e) Notwithstanding any other law, each assessor shall, upon
2150	2150	36 petition of the reuse authority, reassess the taxable property situated
2151	2151	37 upon or in or added to the allocation area, effective on the next
2152	2152	38 assessment date after the petition.
2153	2153	39 (f) Notwithstanding any other law, the assessed value of all taxable
2154	2154	40 property in the allocation area, for purposes of tax limitation, property
2155	2155	41 tax replacement, and the making of the budget, tax rate, and tax levy
2156	2156	42 for each political subdivision in which the property is located is the
2157	2157	2023 IN 45—LS 6138/DI 120 51
2158	2158	1 lesser of:
2159	2159	2 (1) the assessed value of the property as valued without regard to
2160	2160	3 this section; or
2161	2161	4 (2) the base assessed value.
2162	2162	5 (g) If any part of the allocation area is located in an enterprise zone
2163	2163	6 created under IC 5-28-15, the unit that designated the allocation area
2164	2164	7 shall create funds as specified in this subsection. A unit that has
2165	2165	8 obligations, bonds, or leases payable from allocated tax proceeds under
2166	2166	9 subsection (b)(3) shall establish an allocation fund for the purposes
2167	2167	10 specified in subsection (b)(3) and a special zone fund. Such a unit
2168	2168	11 shall, until the end of the enterprise zone phase out period, deposit each
2169	2169	12 year in the special zone fund any amount in the allocation fund derived
2170	2170	13 from property tax proceeds in excess of those described in subsection
2171	2171	14 (b)(1) and (b)(2) from property located in the enterprise zone that
2172	2172	15 exceeds the amount sufficient for the purposes specified in subsection
2173	2173	16 (b)(3) for the year. The amount sufficient for purposes specified in
2174	2174	17 subsection (b)(3) for the year shall be determined based on the pro rata
2175	2175	18 part of such current property tax proceeds from the part of the
2176	2176	19 enterprise zone that is within the allocation area as compared to all
2177	2177	20 such current property tax proceeds derived from the allocation area. A
2178	2178	21 unit that does not have obligations, bonds, or leases payable from
2179	2179	22 allocated tax proceeds under subsection (b)(3) shall establish a special
2180	2180	23 zone fund and deposit all the property tax proceeds in excess of those
2181	2181	24 described in subsection (b)(1) and (b)(2) that are derived from property
2182	2182	25 in the enterprise zone in the fund. The unit that creates the special zone
2183	2183	26 fund shall use the fund (based on the recommendations of the urban
2184	2184	27 enterprise association) for programs in job training, job enrichment,
2185	2185	28 and basic skill development that are designed to benefit residents and
2186	2186	29 employers in the enterprise zone or other purposes specified in
2187	2187	30 subsection (b)(3), except that where reference is made in subsection
2188	2188	31 (b)(3) to allocation area it shall refer for purposes of payments from the
2189	2189	32 special zone fund only to that part of the allocation area that is also
2190	2190	33 located in the enterprise zone. The programs shall reserve at least
2191	2191	34 one-half (1/2) of their enrollment in any session for residents of the
2192	2192	35 enterprise zone.
2193	2193	36 (h) After each reassessment of real property in an area under the
2194	2194	37 county's reassessment plan under IC 6-1.1-4-4.2, the department of
2195	2195	38 local government finance shall adjust the base assessed value one (1)
2196	2196	39 time to neutralize any effect of the reassessment of the real property in
2197	2197	40 the area on the property tax proceeds allocated to the military base
2198	2198	41 reuse district under this section. After each annual adjustment for
2199	2199	42 agricultural land under IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the
2200	2200	2023 IN 45—LS 6138/DI 120 52
2201	2201	1 department of local government finance shall adjust the base assessed
2202	2202	2 value to neutralize any effect of the annual adjustment on the property
2203	2203	3 tax proceeds allocated to the military base reuse district under this
2204	2204	4 section. However, the adjustments under this subsection may not
2205	2205	5 include the effect of property tax abatements under IC 6-1.1-12.1, and
2206	2206	6 these adjustments may not produce less property tax proceeds allocable
2207	2207	7 to the military base reuse district under subsection (b)(3) than would
2208	2208	8 otherwise have been received if the reassessment under the county's
2209	2209	9 reassessment plan or annual adjustment for agricultural land had not
2210	2210	10 occurred. The department of local government finance may prescribe
2211	2211	11 procedures for county and township officials to follow to assist the
2212	2212	12 department in making the adjustments.
2213	2213	13 (i) If the reuse authority adopts a declaratory resolution or an
2214	2214	14 amendment to a declaratory resolution that contains an allocation
2215	2215	15 provision and the reuse authority makes either of the filings required
2216	2216	16 under section 12(c) or 13(f) of this chapter after the first anniversary of
2217	2217	17 the effective date of the allocation provision, the auditor of the county
2218	2218	18 in which the military base reuse district is located shall compute the
2219	2219	19 base assessed value for the allocation area using the assessment date
2220	2220	20 immediately preceding the later of:
2221	2221	21 (1) the date on which the documents are filed with the county
2222	2222	22 auditor; or
2223	2223	23 (2) the date on which the documents are filed with the department
2224	2224	24 of local government finance.
2225	2225	25 (j) For an allocation area established after June 30, 2024,
2226	2226	26 "residential property" refers to the assessed value of property that is
2227	2227	27 allocated to the one percent (1%) homestead land and improvement
2228	2228	28 categories in the county tax and billing software system, along with the
2229	2229	29 residential assessed value as defined for purposes of calculating the
2230	2230	30 rate for the local income tax property tax relief credit designated for
2231	2231	31 residential property under IC 6-3.6-5-6(d)(3).
2232	2232	32 SECTION 20. IC 36-7-30.5-30, AS AMENDED BY P.L.174-2022,
2233	2233	33 SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2234	2234	34 JANUARY 1, 2024]: Sec. 30. (a) The following definitions apply
2235	2235	35 throughout this section:
2236	2236	36 (1) "Allocation area" means that part of a military base
2237	2237	37 development area to which an allocation provision of a
2238	2238	38 declaratory resolution adopted under section 16 of this chapter
2239	2239	39 refers for purposes of distribution and allocation of property taxes.
2240	2240	40 (2) "Base assessed value" means, subject to subsection (i):
2241	2241	41 (A) the net assessed value of all the property as finally
2242	2242	42 determined for the assessment date immediately preceding the
2243	2243	2023 IN 45—LS 6138/DI 120 53
2244	2244	1 adoption date of the allocation provision of the declaratory
2245	2245	2 resolution, as adjusted under subsection (h); plus
2246	2246	3 (B) to the extent that it is not included in clause (A) or (C), the
2247	2247	4 net assessed value of any and all parcels or classes of parcels
2248	2248	5 identified as part of the base assessed value in the declaratory
2249	2249	6 resolution or an amendment to the declaratory resolution, as
2250	2250	7 finally determined for any subsequent assessment date; plus
2251	2251	8 (C) to the extent that it is not included in clause (A) or (B), the
2252	2252	9 net assessed value of property that is assessed as residential
2253	2253	10 property under the rules of the department of local government
2254	2254	11 finance, within the allocation area, as finally determined for
2255	2255	12 the current assessment date.
2256	2256	13 (3) "Property taxes" means taxes imposed under IC 6-1.1 on real
2257	2257	14 property.
2258	2258	15 (b) A declaratory resolution adopted under section 16 of this chapter
2259	2259	16 before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
2260	2260	17 resolutions adopted under IC 36-7-14-15 may include a provision with
2261	2261	18 respect to the allocation and distribution of property taxes for the
2262	2262	19 purposes and in the manner provided in this section. A declaratory
2263	2263	20 resolution previously adopted may include an allocation provision by
2264	2264	21 the amendment of that declaratory resolution in accordance with the
2265	2265	22 procedures set forth in section 18 of this chapter. The allocation
2266	2266	23 provision may apply to all or part of the military base development
2267	2267	24 area. The allocation provision must require that any property taxes
2268	2268	25 subsequently levied by or for the benefit of any public body entitled to
2269	2269	26 a distribution of property taxes on taxable property in the allocation
2270	2270	27 area be allocated and distributed as follows:
2271	2271	28 (1) Except as otherwise provided in this section, the proceeds of
2272	2272	29 the taxes attributable to the lesser of:
2273	2273	30 (A) the assessed value of the property for the assessment date
2274	2274	31 with respect to which the allocation and distribution is made;
2275	2275	32 or
2276	2276	33 (B) the base assessed value;
2277	2277	34 shall be allocated to and, when collected, paid into the funds of
2278	2278	35 the respective taxing units.
2279	2279	36 (2) The excess of the proceeds of the property taxes imposed for
2280	2280	37 the assessment date with respect to which the allocation and
2281	2281	38 distribution is made that are attributable to taxes imposed after
2282	2282	39 being approved by the voters in a referendum or local public
2283	2283	40 question conducted after April 30, 2010, not otherwise included
2284	2284	41 in subdivision (1) shall be allocated to and, when collected, paid
2285	2285	42 into the funds of the taxing unit for which the referendum or local
2286	2286	2023 IN 45—LS 6138/DI 120 54
2287	2287	1 public question was conducted.
2288	2288	2 (3) Except as otherwise provided in this section, property tax
2289	2289	3 proceeds in excess of those described in subdivisions (1) and (2)
2290	2290	4 shall be allocated to the development authority and, when
2291	2291	5 collected, paid into an allocation fund for that allocation area that
2292	2292	6 may be used by the development authority and only to do one (1)
2293	2293	7 or more of the following:
2294	2294	8 (A) Pay the principal of and interest and redemption premium
2295	2295	9 on any obligations incurred by the development authority or
2296	2296	10 any other entity for the purpose of financing or refinancing
2297	2297	11 military base development or reuse activities in or directly
2298	2298	12 serving or benefiting that allocation area.
2299	2299	13 (B) Establish, augment, or restore the debt service reserve for
2300	2300	14 bonds payable solely or in part from allocated tax proceeds in
2301	2301	15 that allocation area or from other revenues of the development
2302	2302	16 authority, including lease rental revenues.
2303	2303	17 (C) Make payments on leases payable solely or in part from
2304	2304	18 allocated tax proceeds in that allocation area.
2305	2305	19 (D) Reimburse any other governmental body for expenditures
2306	2306	20 made for local public improvements (or structures) in or
2307	2307	21 directly serving or benefiting that allocation area.
2308	2308	22 (E) For property taxes first due and payable before 2009, pay
2309	2309	23 all or a part of a property tax replacement credit to taxpayers
2310	2310	24 in an allocation area as determined by the development
2311	2311	25 authority. This credit equals the amount determined under the
2312	2312	26 following STEPS for each taxpayer in a taxing district (as
2313	2313	27 defined in IC 6-1.1-1-20) that contains all or part of the
2314	2314	28 allocation area:
2315	2315	29 STEP ONE: Determine that part of the sum of the amounts
2316	2316	30 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
2317	2317	31 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
2318	2318	32 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
2319	2319	33 the taxing district.
2320	2320	34 STEP TWO: Divide:
2321	2321	35 (i) that part of each county's eligible property tax
2322	2322	36 replacement amount (as defined in IC 6-1.1-21-2 (before its
2323	2323	37 repeal)) for that year as determined under IC 6-1.1-21-4
2324	2324	38 (before its repeal) that is attributable to the taxing district;
2325	2325	39 by
2326	2326	40 (ii) the STEP ONE sum.
2327	2327	41 STEP THREE: Multiply:
2328	2328	42 (i) the STEP TWO quotient; by
2329	2329	2023 IN 45—LS 6138/DI 120 55
2330	2330	1 (ii) the total amount of the taxpayer's taxes (as defined in
2331	2331	2 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
2332	2332	3 that have been allocated during that year to an allocation
2333	2333	4 fund under this section.
2334	2334	5 If not all the taxpayers in an allocation area receive the credit
2335	2335	6 in full, each taxpayer in the allocation area is entitled to
2336	2336	7 receive the same proportion of the credit. A taxpayer may not
2337	2337	8 receive a credit under this section and a credit under section
2338	2338	9 32 of this chapter (before its repeal) in the same year.
2339	2339	10 (F) Pay expenses incurred by the development authority for
2340	2340	11 local public improvements or structures that were in the
2341	2341	12 allocation area or directly serving or benefiting the allocation
2342	2342	13 area.
2343	2343	14 (G) Reimburse public and private entities for expenses
2344	2344	15 incurred in training employees of industrial facilities that are
2345	2345	16 located:
2346	2346	17 (i) in the allocation area; and
2347	2347	18 (ii) on a parcel of real property that has been classified as
2348	2348	19 industrial property under the rules of the department of local
2349	2349	20 government finance.
2350	2350	21 However, the total amount of money spent for this purpose in
2351	2351	22 any year may not exceed the total amount of money in the
2352	2352	23 allocation fund that is attributable to property taxes paid by the
2353	2353	24 industrial facilities described in this clause. The
2354	2354	25 reimbursements under this clause must be made not more than
2355	2355	26 three (3) years after the date on which the investments that are
2356	2356	27 the basis for the increment financing are made.
2357	2357	28 (H) Expend money and provide financial assistance as
2358	2358	29 authorized in section 15(26) of this chapter.
2359	2359	30 The allocation fund may not be used for operating expenses of the
2360	2360	31 development authority.
2361	2361	32 (4) Except as provided in subsection (g), before July 15 of each
2362	2362	33 year the development authority shall do the following:
2363	2363	34 (A) Determine the amount, if any, by which property taxes
2364	2364	35 payable to the allocation fund in the following year will exceed
2365	2365	36 the amount of property taxes necessary to make, when due,
2366	2366	37 principal and interest payments on bonds described in
2367	2367	38 subdivision (3) plus the amount necessary for other purposes
2368	2368	39 described in subdivisions (2) and (3).
2369	2369	40 (B) Provide a written notice to the appropriate county auditors
2370	2370	41 and the fiscal bodies and other officers who are authorized to
2371	2371	42 fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
2372	2372	2023 IN 45—LS 6138/DI 120 56
2373	2373	1 each of the other taxing units that is wholly or partly located
2374	2374	2 within the allocation area. The notice must:
2375	2375	3 (i) state the amount, if any, of the excess property taxes that
2376	2376	4 the development authority has determined may be paid to
2377	2377	5 the respective taxing units in the manner prescribed in
2378	2378	6 subdivision (1); or
2379	2379	7 (ii) state that the development authority has determined that
2380	2380	8 there is no excess assessed value that may be allocated to the
2381	2381	9 respective taxing units in the manner prescribed in
2382	2382	10 subdivision (1).
2383	2383	11 The county auditors shall allocate to the respective taxing units
2384	2384	12 the amount, if any, of excess assessed value determined by the
2385	2385	13 development authority. The development authority may not
2386	2386	14 authorize a payment to the respective taxing units under this
2387	2387	15 subdivision if to do so would endanger the interest of the
2388	2388	16 holders of bonds described in subdivision (3) or lessors under
2389	2389	17 section 24 of this chapter. Property taxes received by a taxing
2390	2390	18 unit under this subdivision before 2009 are eligible for the
2391	2391	19 property tax replacement credit provided under IC 6-1.1-21
2392	2392	20 (before its repeal).
2393	2393	21 (c) For the purpose of allocating taxes levied by or for any taxing
2394	2394	22 unit or units, the assessed value of taxable property in a territory in the
2395	2395	23 allocation area that is annexed by a taxing unit after the effective date
2396	2396	24 of the allocation provision of the declaratory resolution is the lesser of:
2397	2397	25 (1) the assessed value of the property for the assessment date with
2398	2398	26 respect to which the allocation and distribution is made; or
2399	2399	27 (2) the base assessed value.
2400	2400	28 (d) Property tax proceeds allocable to the military base development
2401	2401	29 district under subsection (b)(3) may, subject to subsection (b)(4), be
2402	2402	30 irrevocably pledged by the military base development district for
2403	2403	31 payment as set forth in subsection (b)(3).
2404	2404	32 (e) Notwithstanding any other law, each assessor shall, upon
2405	2405	33 petition of the development authority, reassess the taxable property
2406	2406	34 situated upon or in or added to the allocation area, effective on the next
2407	2407	35 assessment date after the petition.
2408	2408	36 (f) Notwithstanding any other law, the assessed value of all taxable
2409	2409	37 property in the allocation area, for purposes of tax limitation, property
2410	2410	38 tax replacement, and the making of the budget, tax rate, and tax levy
2411	2411	39 for each political subdivision in which the property is located is the
2412	2412	40 lesser of:
2413	2413	41 (1) the assessed value of the property as valued without regard to
2414	2414	42 this section; or
2415	2415	2023 IN 45—LS 6138/DI 120 57
2416	2416	1 (2) the base assessed value.
2417	2417	2 (g) If any part of the allocation area is located in an enterprise zone
2418	2418	3 created under IC 5-28-15, the development authority shall create funds
2419	2419	4 as specified in this subsection. A development authority that has
2420	2420	5 obligations, bonds, or leases payable from allocated tax proceeds under
2421	2421	6 subsection (b)(3) shall establish an allocation fund for the purposes
2422	2422	7 specified in subsection (b)(3) and a special zone fund. The
2423	2423	8 development authority shall, until the end of the enterprise zone phase
2424	2424	9 out period, deposit each year in the special zone fund any amount in the
2425	2425	10 allocation fund derived from property tax proceeds in excess of those
2426	2426	11 described in subsection (b)(1) and (b)(2) from property located in the
2427	2427	12 enterprise zone that exceeds the amount sufficient for the purposes
2428	2428	13 specified in subsection (b)(3) for the year. The amount sufficient for
2429	2429	14 purposes specified in subsection (b)(3) for the year shall be determined
2430	2430	15 based on the pro rata part of such current property tax proceeds from
2431	2431	16 the part of the enterprise zone that is within the allocation area as
2432	2432	17 compared to all such current property tax proceeds derived from the
2433	2433	18 allocation area. A development authority that does not have
2434	2434	19 obligations, bonds, or leases payable from allocated tax proceeds under
2435	2435	20 subsection (b)(3) shall establish a special zone fund and deposit all the
2436	2436	21 property tax proceeds in excess of those described in subsection (b)(1)
2437	2437	22 and (b)(2) that are derived from property in the enterprise zone in the
2438	2438	23 fund. The development authority that creates the special zone fund
2439	2439	24 shall use the fund (based on the recommendations of the urban
2440	2440	25 enterprise association) for programs in job training, job enrichment,
2441	2441	26 and basic skill development that are designed to benefit residents and
2442	2442	27 employers in the enterprise zone or for other purposes specified in
2443	2443	28 subsection (b)(3), except that where reference is made in subsection
2444	2444	29 (b)(3) to an allocation area it shall refer for purposes of payments from
2445	2445	30 the special zone fund only to that part of the allocation area that is also
2446	2446	31 located in the enterprise zone. The programs shall reserve at least
2447	2447	32 one-half (1/2) of their enrollment in any session for residents of the
2448	2448	33 enterprise zone.
2449	2449	34 (h) After each reassessment of real property in an area under a
2450	2450	35 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
2451	2451	36 local government finance shall adjust the base assessed value one (1)
2452	2452	37 time to neutralize any effect of the reassessment of the real property in
2453	2453	38 the area on the property tax proceeds allocated to the military base
2454	2454	39 development district under this section. After each annual adjustment
2455	2455	40 for agricultural land under IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the
2456	2456	41 department of local government finance shall adjust the base assessed
2457	2457	42 value to neutralize any effect of the annual adjustment on the property
2458	2458	2023 IN 45—LS 6138/DI 120 58
2459	2459	1 tax proceeds allocated to the military base development district under
2460	2460	2 this section. However, the adjustments under this subsection may not
2461	2461	3 include the effect of property tax abatements under IC 6-1.1-12.1, and
2462	2462	4 these adjustments may not produce less property tax proceeds allocable
2463	2463	5 to the military base development district under subsection (b)(3) than
2464	2464	6 would otherwise have been received if the reassessment under the
2465	2465	7 county's reassessment plan or annual adjustment for agricultural land
2466	2466	8 had not occurred. The department of local government finance may
2467	2467	9 prescribe procedures for county and township officials to follow to
2468	2468	10 assist the department in making the adjustments.
2469	2469	11 (i) If the development authority adopts a declaratory resolution or
2470	2470	12 an amendment to a declaratory resolution that contains an allocation
2471	2471	13 provision and the development authority makes either of the filings
2472	2472	14 required under section 17(e) or 18(f) of this chapter after the first
2473	2473	15 anniversary of the effective date of the allocation provision, the auditor
2474	2474	16 of the county in which the military base development district is located
2475	2475	17 shall compute the base assessed value for the allocation area using the
2476	2476	18 assessment date immediately preceding the later of:
2477	2477	19 (1) the date on which the documents are filed with the county
2478	2478	20 auditor; or
2479	2479	21 (2) the date on which the documents are filed with the department
2480	2480	22 of local government finance.
2481	2481	23 (j) For an allocation area established after June 30, 2024,
2482	2482	24 "residential property" refers to the assessed value of property that is
2483	2483	25 allocated to the one percent (1%) homestead land and improvement
2484	2484	26 categories in the county tax and billing software system, along with the
2485	2485	27 residential assessed value as defined for purposes of calculating the
2486	2486	28 rate for the local income tax property tax relief credit designated for
2487	2487	29 residential property under IC 6-3.6-5-6(d)(3).
2488	2488	30 SECTION 21. IC 36-7-32-19, AS AMENDED BY P.L.86-2018,
2489	2489	31 SECTION 349, IS AMENDED TO READ AS FOLLOWS
2490	2490	32 [EFFECTIVE JANUARY 1, 2024]: Sec. 19. (a) The state board of
2491	2491	33 accounts and department of local government finance shall make the
2492	2492	34 rules and prescribe the forms and procedures that the state board of
2493	2493	35 accounts and department of local government finance consider
2494	2494	36 appropriate for the implementation of an allocation area under this
2495	2495	37 chapter.
2496	2496	38 (b) After each reassessment of real property in an area under a
2497	2497	39 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
2498	2498	40 local government finance shall adjust the base assessed value one (1)
2499	2499	41 time to neutralize any effect of the reassessment of the real property in
2500	2500	42 the area on the property tax proceeds allocated to the certified
2501	2501	2023 IN 45—LS 6138/DI 120 59
2502	2502	1 technology park fund under section 17 of this chapter. After each
2503	2503	2 annual adjustment for agricultural land under IC 6-1.1-4-4.5,
2504	2504	3 IC 6-1.1-4-13.2, the department of local government finance shall
2505	2505	4 adjust the base assessed value to neutralize any effect of the annual
2506	2506	5 adjustment on the property tax proceeds allocated to the certified
2507	2507	6 technology park fund under section 17 of this chapter.
2508	2508	7 SECTION 22. IC 36-7-32.5-16, AS ADDED BY P.L.135-2022,
2509	2509	8 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2510	2510	9 JANUARY 1, 2024]: Sec. 16. (a) The state board of accounts, the
2511	2511	10 department of state revenue, and the department of local government
2512	2512	11 finance may adopt rules under IC 4-22-2 and prescribe the forms and
2513	2513	12 procedures that the state board of accounts, the department of state
2514	2514	13 revenue, and the department of local government finance consider
2515	2515	14 appropriate for the implementation of an innovation development
2516	2516	15 district under this chapter. However, before adopting rules under this
2517	2517	16 section, the state board of accounts, the department of state revenue,
2518	2518	17 and the department of local government finance shall submit a report
2519	2519	18 to the budget committee that:
2520	2520	19 (1) describes the rules proposed by the state board of accounts,
2521	2521	20 the department of state revenue, and the department of local
2522	2522	21 government finance; and
2523	2523	22 (2) recommends statutory changes necessary to implement the
2524	2524	23 provisions of this chapter.
2525	2525	24 (b) After each reassessment of real property in an area under a
2526	2526	25 county's reassessment plan prepared under IC 6-1.1-4-4.2, the
2527	2527	26 department of local government finance shall adjust the base assessed
2528	2528	27 value one (1) time to neutralize any effect of the reassessment of the
2529	2529	28 real property in the area on the property tax proceeds allocated to the
2530	2530	29 local innovation development district fund established by section 19 of
2531	2531	30 this chapter.
2532	2532	31 (c) After each annual adjustment for agricultural land under
2533	2533	32 IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the department of local government
2534	2534	33 finance shall adjust the base assessed value to neutralize any effect of
2535	2535	34 the annual adjustment on the property tax proceeds allocated to the
2536	2536	35 local innovation development district fund established by section 19 of
2537	2537	36 this chapter.
2538	2538	37
2539	2539	2023 IN 45—LS 6138/DI 120