Introduced Version
SENATE BILL No. 45
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1; IC 8-22-3.5-11; IC 36-7.
Synopsis: Elimination of annual adjustments to assessed values.
Eliminates the annual adjustments (or "trending") to assessed values of
certain real property for assessment dates beginning after December 31,
2023. Retains the provisions in current law that require four year
cyclical reassessments. Allows a reassessment plan for the four year
cyclical reassessments to include trending factors in the plan. Does not
eliminate the annual adjustment for agricultural land. Makes
conforming changes. Makes technical corrections.
Effective: January 1, 2024.
Niemeyer
January 9, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
2023 IN 45—LS 6138/DI 120 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
SENATE BILL No. 45
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-4-4.2, AS AMENDED BY P.L.111-2014,
2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2024]: Sec. 4.2. (a) The county assessor of each county
4 shall, before July 1, 2013, and before May 1 of every fourth year
5 thereafter, prepare and submit to the department of local government
6 finance a reassessment plan for the county. The following apply to a
7 reassessment plan prepared and submitted under this section:
8 (1) The reassessment plan is subject to approval by the
9 department of local government finance. The department of local
10 government finance shall complete its review and approval of the
11 reassessment plan before:
12 (A) March 1, 2015; and
13 (B) January 1 of each subsequent year that follows a year in
14 which the reassessment plan is submitted by the county.
15 (2) The department of local government finance shall determine
16 the classes of real property to be used for purposes of this section.
17 (3) Except as provided in subsection (b), the reassessment plan
2023 IN 45—LS 6138/DI 120 2
1 must divide all parcels of real property in the county into four (4)
2 different groups of parcels. Each group of parcels must contain
3 approximately twenty-five percent (25%) of the parcels within
4 each class of real property in the county.
5 (4) Except as provided in subsection (b), all real property in each
6 group of parcels shall be reassessed under the county's
7 reassessment plan once during each four (4) year cycle.
8 (5) The reassessment of a group of parcels in a particular class of
9 real property shall begin on May 1 of a year.
10 (6) The reassessment of parcels:
11 (A) must include a physical inspection of each parcel of real
12 property in the group of parcels that is being reassessed; and
13 (B) shall be completed on or before January 1 of the year after
14 the year in which the reassessment of the group of parcels
15 begins.
16 (7) For real property included in a group of parcels that is
17 reassessed, the reassessment is the basis for taxes payable in the
18 year following the year in which the reassessment is to be
19 completed.
20 (8) The reassessment plan must specify the dates by which the
21 assessor must submit land values under section 13.6 of this
22 chapter to the county property tax assessment board of appeals.
23 (9) Subject to review and approval by the department of local
24 government finance, the county assessor may modify the
25 reassessment plan.
26 (10) Beginning after December 31, 2023, a reassessment plan
27 may include a system for adjusting the assessed value of
28 groups of parcels that are reassessed under the plan to
29 account for changes in value in those years since a
30 reassessment of the parcels last took effect. A system must
31 include characteristics that do the following:
32 (A) Promote uniform and equal assessment of real
33 property within and across classifications.
34 (B) Require that assessing officials:
35 (i) reevaluate the factors that affect value;
36 (ii) express the interactions of those factors
37 mathematically;
38 (iii) use mass appraisal techniques to estimate updated
39 property values within statistical measures of accuracy;
40 and
41 (iv) provide notice to taxpayers of an assessment increase
42 that results from the application of annual adjustments.
2023 IN 45—LS 6138/DI 120 3
1 (C) Prescribe procedures that permit the application of the
2 adjustment percentages in an efficient manner by assessing
3 officials.
4 (b) A county may submit a reassessment plan that provides for
5 reassessing more than twenty-five percent (25%) of all parcels of real
6 property in the county in a particular year. A plan may provide that all
7 parcels are to be reassessed in one (1) year. However, a plan must
8 cover a four (4) year period. All real property in each group of parcels
9 shall be reassessed under the county's reassessment plan once during
10 each reassessment cycle.
11 (c) The reassessment of the first group of parcels under a county's
12 reassessment plan shall begin on July 1, 2014, and shall be completed
13 on or before January 1, 2015.
14 (d) The department of local government finance may adopt rules to
15 govern the reassessment of property under county reassessment plans.
16 SECTION 2. IC 6-1.1-4-4.5 IS REPEALED [EFFECTIVE
17 JANUARY 1, 2024]. Sec. 4.5. (a) The department of local government
18 finance shall adopt rules establishing a system for annually adjusting
19 the assessed value of real property to account for changes in value in
20 those years since a reassessment under section 4.2 of this chapter for
21 the property last took effect.
22 (b) Subject to subsection (f), the system must be applied to adjust
23 assessed values beginning with the 2006 assessment date and each year
24 thereafter that is not a year in which a reassessment under section 4.2
25 of this chapter for the property becomes effective.
26 (c) The rules adopted under subsection (a) must include the
27 following characteristics in the system:
28 (1) Promote uniform and equal assessment of real property within
29 and across classifications.
30 (2) Require that assessing officials:
31 (A) reevaluate the factors that affect value;
32 (B) express the interactions of those factors mathematically;
33 (C) use mass appraisal techniques to estimate updated property
34 values within statistical measures of accuracy; and
35 (D) provide notice to taxpayers of an assessment increase that
36 results from the application of annual adjustments.
37 (3) Prescribe procedures that permit the application of the
38 adjustment percentages in an efficient manner by assessing
39 officials.
40 (d) The department of local government finance must review and
41 certify each annual adjustment determined under this section.
42 (e) For an assessment beginning after December 31, 2022,
2023 IN 45—LS 6138/DI 120 4
1 agricultural improvements such as but not limited to barns, grain bins,
2 or silos on land assessed as agricultural shall not be adjusted using
3 factors, such as neighborhood delineation, that are appropriate for use
4 in adjusting residential, commercial, and industrial real property. Those
5 portions of agricultural parcels that include land and buildings not used
6 for an agricultural purpose, such as homes, homesites, and excess
7 residential land and commercial or industrial land and buildings, shall
8 be adjusted by the factor or factors developed for other similar property
9 within the geographic stratification. The residential portion of
10 agricultural properties shall be adjusted by the factors applied to
11 similar residential purposes.
12 (f) In making the annual determination of the base rate to satisfy the
13 requirement for an annual adjustment for each assessment date, the
14 department of local government finance shall not later than March 1 of
15 each year determine the base rate using the methodology reflected in
16 Table 2-18 of Book 1, Chapter 2 of the department of local government
17 finance's Real Property Assessment Guidelines (as in effect on January
18 1, 2005), except that the department shall adjust the methodology as
19 follows:
20 (1) Use a six (6) year rolling average adjusted under subdivision
21 (3) instead of a four (4) year rolling average.
22 (2) Use the data from the six (6) most recent years preceding the
23 year in which the assessment date occurs for which data is
24 available, before one (1) of those six (6) years is eliminated under
25 subdivision (3) when determining the rolling average.
26 (3) Eliminate in the calculation of the rolling average the year
27 among the six (6) years for which the highest market value in use
28 of agricultural land is determined.
29 (4) After determining a preliminary base rate that would apply for
30 the assessment date without applying the adjustment under this
31 subdivision, the department of local government finance shall
32 adjust the preliminary base rate as follows:
33 (A) If the preliminary base rate for the assessment date would
34 be at least ten percent (10%) greater than the final base rate
35 determined for the preceding assessment date, a capitalization
36 rate of eight percent (8%) shall be used to determine the final
37 base rate.
38 (B) If the preliminary base rate for the assessment date would
39 be at least ten percent (10%) less than the final base rate
40 determined for the preceding assessment date, a capitalization
41 rate of six percent (6%) shall be used to determine the final
42 base rate.
2023 IN 45—LS 6138/DI 120 5
1 (C) If neither clause (A) nor clause (B) applies, a capitalization
2 rate of seven percent (7%) shall be used to determine the final
3 base rate.
4 (D) In the case of a market value in use for a year that is used
5 in the calculation of the six (6) year rolling average under
6 subdivision (1) for purposes of determining the base rate for
7 the assessment date:
8 (i) that market value in use shall be recalculated by using the
9 capitalization rate determined under clauses (A) through (C)
10 for the calculation of the base rate for the assessment date;
11 and
12 (ii) the market value in use recalculated under item (i) shall
13 be used in the calculation of the six (6) year rolling average
14 under subdivision (1).
15 (g) For assessment dates after December 31, 2009, an adjustment in
16 the assessed value of real property under this section shall be based on
17 the estimated true tax value of the property on the assessment date that
18 is the basis for taxes payable on that real property.
19 (h) The department shall release the department's annual
20 determination of the base rate on or before March 1 of each year.
21 SECTION 3. IC 6-1.1-4-4.6 IS REPEALED [EFFECTIVE
22 JANUARY 1, 2024]. Sec. 4.6. (a) If a county assessor fails before July
23 2 of a particular year for which an adjustment to the assessed value of
24 real property applies under section 4.5 of this chapter to prepare and
25 deliver to the county auditor a complete detailed list of all of the real
26 property listed for taxation in the county as required by IC 6-1.1-5-14
27 and at least one hundred eighty (180) days have elapsed after the
28 deadline specified in IC 6-1.1-5-14 for the county assessor to deliver
29 the list, the department of local government finance may develop
30 annual adjustment factors under this section for that year. In developing
31 annual adjustment factors under this section, the department of local
32 government finance shall use data in its possession that is obtained
33 from:
34 (1) the county assessor; or
35 (2) any of the sources listed in the rule, including county or state
36 sales data, government studies, ratio studies, cost and depreciation
37 tables, and other market analyses.
38 (b) Using the data described in subsection (a), the department of
39 local government finance shall propose to establish annual adjustment
40 factors for the affected tax districts for one (1) or more of the classes
41 of real property. The proposal may provide for the equalization of
42 annual adjustment factors in the affected township or county and in
2023 IN 45—LS 6138/DI 120 6
1 adjacent areas. The department of local government finance shall issue
2 notice and provide opportunity for hearing in accordance with
3 IC 6-1.1-14-4 and IC 6-1.1-14-9, as applicable, before issuing final
4 annual adjustment factors.
5 (c) The annual adjustment factors finally determined by the
6 department of local government finance after the hearing required
7 under subsection (b) apply to the annual adjustment of real property
8 under section 4.5 of this chapter for:
9 (1) the assessment date; and
10 (2) the real property;
11 specified in the final determination of the department of local
12 government finance.
13 SECTION 4. IC 6-1.1-4-4.9 IS ADDED TO THE INDIANA CODE
14 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
15 JANUARY 1, 2024]: Sec. 4.9. Except as provided in section 13.2 of
16 this chapter, the annual adjustments to assessed value of real
17 property under section 4.5 of this chapter (before its repeal on
18 January 1, 2024) and section 4.6 of this chapter (before its repeal
19 on January 1, 2024) apply only to assessment dates before January
20 1, 2024.
21 SECTION 5. IC 6-1.1-4-13.2, AS AMENDED BY P.L.180-2016,
22 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JANUARY 1, 2024]: Sec. 13.2. (a) The assessed value of
24 agricultural land shall be annually adjusted to account for changes
25 in value in those years since a reassessment under section 4.2 of
26 this chapter for the property last took effect.
27 (b) The department of local government finance shall review
28 and certify each annual adjustment determined for agricultural
29 land under this section.
30 (c) Notwithstanding the provisions of this chapter and any real
31 property assessment guidelines of the department of local government
32 finance, for the property tax assessment of agricultural land for the
33 2015 assessment date, the statewide agricultural land base rate value
34 per acre used to determine the value of agricultural land is two
35 thousand fifty dollars ($2,050).
36 (d) In making the annual determination of the base rate to
37 satisfy the requirement for an annual adjustment under subsection
38 (a) for the January 1, 2016, assessment date and each assessment
39 date thereafter, the department of local government finance shall
40 not later than March 1 of each year determine the base rate using
41 the methodology reflected in Table 2-18 of Book 1, Chapter 2 of the
42 department of local government finance's Real Property
2023 IN 45—LS 6138/DI 120 7
1 Assessment Guidelines (as in effect on January 1, 2005), except that
2 the department shall adjust the methodology as follows:
3 (1) Use a six (6) year rolling average adjusted under
4 subdivision (3) instead of a four (4) year rolling average.
5 (2) Use the data from the six (6) most recent years preceding
6 the year in which the assessment date occurs for which data
7 is available, before one (1) of those six (6) years is eliminated
8 under subdivision (3) when determining the rolling average.
9 (3) Eliminate in the calculation of the rolling average the year
10 among the six (6) years for which the highest market value in
11 use of agricultural land is determined.
12 (4) After determining a preliminary base rate that would
13 apply for the assessment date without applying the
14 adjustment under this subdivision, the department of local
15 government finance shall adjust the preliminary base rate as
16 follows:
17 (A) If the preliminary base rate for the assessment date
18 would be at least ten percent (10%) greater than the final
19 base rate determined for the preceding assessment date, a
20 capitalization rate of eight percent (8%) shall be used to
21 determine the final base rate.
22 (B) If the preliminary base rate for the assessment date
23 would be at least ten percent (10%) less than the final base
24 rate determined for the preceding assessment date, a
25 capitalization rate of six percent (6%) shall be used to
26 determine the final base rate.
27 (C) If neither clause (A) nor clause (B) applies, a
28 capitalization rate of seven percent (7%) shall be used to
29 determine the final base rate.
30 (D) In the case of a market value in use for a year that is
31 used in the calculation of the six (6) year rolling average
32 under subdivision (1) for purposes of determining the base
33 rate for the assessment date:
34 (i) that market value in use shall be recalculated by using
35 the capitalization rate determined under clauses (A)
36 through (C) for the calculation of the base rate for the
37 assessment date; and
38 (ii) the market value in use recalculated under item (i)
39 shall be used in the calculation of the six (6) year rolling
40 average under subdivision (1).
41 (e) For assessment dates after December 31, 2009, an
42 adjustment in the assessed value of real property under this section
2023 IN 45—LS 6138/DI 120 8
1 shall be based on the estimated true tax value of the property on
2 the assessment date that is the basis for taxes payable on that real
3 property.
4 (f) The department shall release the department's annual
5 determination of the base rate on or before March 1 of each year.
6 SECTION 6. IC 6-1.1-4-16, AS AMENDED BY P.L.86-2018,
7 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JANUARY 1, 2024]: Sec. 16. (a) For purposes of making a
9 reassessment of real property under section 4.2 of this chapter or
10 annual adjustments under section 4.5 13.2 of this chapter for
11 agricultural land, a township assessor (if any) and a county assessor
12 may employ:
13 (1) deputies;
14 (2) employees; and
15 (3) technical advisors who are:
16 (A) qualified to determine real property values;
17 (B) professional appraisers certified under 50 IAC 15; and
18 (C) employed either on a full-time or a part-time basis, subject
19 to sections 18.5 and 19.5 of this chapter.
20 (b) The county council of each county shall appropriate the funds
21 necessary for the employment of deputies, employees, or technical
22 advisors employed under subsection (a). of this section.
23 SECTION 7. IC 6-1.1-4-22, AS AMENDED BY P.L.178-2021,
24 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JANUARY 1, 2024]: Sec. 22. (a) If any assessing official assesses or
26 reassesses any real property under this article (including an annual
27 adjustment for agricultural land under section 4.5 13.2 of this
28 chapter), the official shall give notice to the taxpayer and the county
29 assessor, by mail or by using electronic mail that includes a secure
30 Internet link to the information in the notice, of the amount of the
31 assessment or reassessment.
32 (b) Each township or county assessor shall provide the notice
33 required by this section by the earlier of:
34 (1) ninety (90) days after the assessor:
35 (A) completes the appraisal of a parcel; or
36 (B) receives a report for a parcel from a professional appraiser
37 or professional appraisal firm; or
38 (2) April 10 of the year containing the assessment date for which
39 the assessment or reassessment first applies, if the assessment
40 date occurs in a year that ends before January 1, 2016, and
41 February 10 of the year containing the assessment date for which
42 the assessment or reassessment first applies, if the assessment
2023 IN 45—LS 6138/DI 120 9
1 date occurs in a year that begins after December 31, 2015.
2 (c) The notice required by this section is in addition to any required
3 notice of assessment or reassessment included in a property tax
4 statement under IC 6-1.1-22 or IC 6-1.1-22.5.
5 (d) The notice required by this section must include notice to the
6 person of the opportunity to appeal the assessed valuation under
7 IC 6-1.1-15-1.1.
8 (e) Notice of the opportunity to appeal the assessed valuation
9 required under subsection (d) must include the following:
10 (1) The procedure that a taxpayer must follow to appeal the
11 assessment or reassessment.
12 (2) The forms that must be filed for an appeal of the assessment
13 or reassessment.
14 (3) Notice that an appeal of the assessment or reassessment
15 requires evidence relevant to the true tax value of the taxpayer's
16 property as of the assessment date.
17 (f) The notice required by this section must include notice to the
18 taxpayer of the taxpayer's right to submit a written complaint to the
19 department under IC 6-1.1-35.7-4(b) if a taxpayer has reason to believe
20 that the township assessor, the county assessor, an employee of the
21 township assessor or county assessor, or an appraiser has violated
22 IC 6-1.1-35.7-3 or IC 6-1.1-35.7-4(a). The notice required under this
23 subsection must include the procedure that a taxpayer must follow to
24 submit the written complaint to the department.
25 SECTION 8. IC 6-1.1-4-27.5, AS AMENDED BY P.L.5-2015,
26 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JANUARY 1, 2024]: Sec. 27.5. (a) The auditor of each county shall
28 establish a property reassessment fund. The county treasurer shall
29 deposit all collections resulting from the property taxes that the county
30 levies for the county's property reassessment fund.
31 (b) With respect to a reassessment of real property under a county's
32 reassessment plan under section 4.2 of this chapter, the county council
33 of each county shall, for property taxes due each year, levy against all
34 the taxable property in the county an amount equal to the estimated
35 costs of the reassessment under section 28.5 of this chapter for the
36 group of parcels to be reassessed in that year.
37 (c) The county assessor may petition the county fiscal body to
38 increase the levy under subsection (b) to pay for the costs of:
39 (1) a reassessment of one (1) or more groups of parcels under a
40 county's reassessment plan prepared under section 4.2 of this
41 chapter;
42 (2) verification under 50 IAC 27-4-7 of sales disclosure forms
2023 IN 45—LS 6138/DI 120 10
1 forwarded to the county assessor under IC 6-1.1-5.5-3; or
2 (3) processing annual adjustments for agricultural land under
3 section 4.5 13.2 of this chapter.
4 The assessor must document the needs and reasons for the increased
5 funding.
6 (d) This subsection applies to an assessment date beginning after
7 December 31, 2023. If a county fiscal body increased the levy under
8 subsection (b) to pay for the costs of processing annual adjustments
9 under section 4.5 of this chapter (before its repeal on January 1,
10 2024), the county fiscal body shall reduce the levy under subsection
11 (b) by an amount equal to:
12 (1) the amount of the prior increase imposed to pay for the
13 costs of processing annual adjustments before January 1,
14 2024; minus
15 (2) the relative amount of the prior increase in subdivision (1)
16 that is attributable to the costs of processing annual
17 adjustments for agricultural land under section 13.2 of this
18 chapter.
19 (d) (e) If the county fiscal body denies a petition under subsection
20 (c), the county assessor may appeal to the department of local
21 government finance. The department of local government finance shall:
22 (1) hear the appeal; and
23 (2) determine whether the additional levy is necessary.
24 SECTION 9. IC 6-1.1-4-28.5, AS AMENDED BY P.L.86-2018,
25 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JANUARY 1, 2024]: Sec. 28.5. (a) Money assigned to a property
27 reassessment fund under section 27.5 of this chapter may be used only
28 to pay the costs of:
29 (1) the reassessment of one (1) or more groups of parcels under
30 a county's reassessment plan prepared under section 4.2 of this
31 chapter, including the computerization of assessment records;
32 (2) payments to assessing officials and hearing officers for county
33 property tax assessment boards of appeals under IC 6-1.1-35.2;
34 (3) the development or updating of detailed soil survey data by
35 the United States Department of Agriculture or its successor
36 agency;
37 (4) the updating of plat books;
38 (5) payments for the salary of permanent staff or for the
39 contractual services of temporary staff who are necessary to assist
40 assessing officials;
41 (6) making annual adjustments for agricultural land under
42 section 4.5 13.2 of this chapter; and
2023 IN 45—LS 6138/DI 120 11
1 (7) the verification under 50 IAC 27-4-7 of sales disclosure forms
2 forwarded to:
3 (A) the county assessor; or
4 (B) township assessors (if any);
5 under IC 6-1.1-5.5-3.
6 Money in a property reassessment fund may not be transferred or
7 reassigned to any other fund and may not be used for any purposes
8 other than those set forth in this section.
9 (b) All counties shall use modern, detailed soil maps in the
10 reassessment of agricultural land.
11 (c) The county treasurer of each county shall, in accordance with
12 IC 5-13-9, invest any money accumulated in the property reassessment
13 fund. Any interest received from investment of the money shall be paid
14 into the property reassessment fund.
15 (d) An appropriation under this section must be approved by the
16 fiscal body of the county after the review and recommendation of the
17 county assessor. However, in a county with a township assessor in
18 every township, the county assessor does not review an appropriation
19 under this section, and only the fiscal body must approve an
20 appropriation under this section.
21 SECTION 10. IC 6-1.1-4-42, AS AMENDED BY P.L.159-2020,
22 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JANUARY 1, 2024]: Sec. 42. (a) This section applies to assessment
24 dates after January 15, 2010.
25 (b) The following definitions apply throughout this section:
26 (1) "Golf course" means an area of land predominately used to
27 play the game of golf and associated yard improvements. A golf
28 course consists of a series of holes, each consisting of a teeing
29 area, fairway, rough and other hazards, and the green with the pin
30 and cup.
31 (2) "Yard improvements" include a clubhouse, irrigation systems,
32 a pro shop, a maintenance building, a driving range, a structure
33 for food and beverage services, or other buildings associated with
34 the operation of and included in the net operating income of a golf
35 course.
36 (c) The true tax value of real property regularly used as a golf course
37 is the valuation determined by applying the income capitalization
38 appraisal approach. The income capitalization approach used to
39 determine the true tax value of a golf course must:
40 (1) incorporate an applicable income capitalization method and
41 appropriate capitalization rates that are developed and used in
42 computations that lead to an indication of value commensurate
2023 IN 45—LS 6138/DI 120 12
1 with the risks for the subject property use;
2 (2) provide for the uniform and equal assessment of golf courses;
3 and
4 (3) exclude the value of personal property, intangible property,
5 and income derived from personal or intangible property.
6 (d) For assessment dates after January 15, 2010, and before March
7 1, 2012, a township assessor (if any) or the county assessor shall gather
8 and process information from the owner of a golf course to carry out
9 this section in accordance with the rules adopted by the department of
10 local government finance under IC 4-22-2.
11 (e) For assessment dates after February 28, 2012, the department of
12 local government finance shall, by rules adopted under IC 4-22-2,
13 establish uniform income capitalization rates annually and procedures
14 to be used for the assessment of golf courses. The department of local
15 government finance may rely on recognized sources of industry
16 capitalization rates. Assessing officials shall use the procedures
17 adopted by the department of local government finance to assess and
18 reassess and annually adjust the assessed value of golf courses.
19 (f) The department of local government finance may prescribe
20 procedures, forms, and due dates for the collection from the owners or
21 operators of golf courses of the necessary earnings, income, profits,
22 losses, and expenditures data necessary to carry out this section. An
23 owner or operator of a golf course shall comply with the procedures
24 and reporting schedules prescribed by the department of local
25 government finance.
26 (g) On or before December 31 of each year, assessing officials shall
27 solicit, and the owners or operators of a golf course shall provide to the
28 assessing officials, data for the gross income and allowable operating
29 expenses for the three (3) years immediately preceding the year in
30 which the solicitation and submission of data is being made. Assessing
31 officials may use federal tax returns or other similar evidence as
32 verification that the submissions are correct.
33 (h) For each assessment date, assessing officials shall examine and
34 evaluate the three (3) consecutive years of financial records and federal
35 tax returns that are submitted under subsection (g) in the year
36 immediately preceding the year of the assessment date to obtain the
37 average net operating income. The three (3) year average should
38 include the most current completed financial records and filed federal
39 tax returns of the golf course as of the assessment date to ensure that
40 the appropriate income and expense information for the subject
41 property is used.
42 (i) All income and expense information provided to the assessing
2023 IN 45—LS 6138/DI 120 13
1 official under this section is confidential under IC 6-1.1-35-9.
2 SECTION 11. IC 6-1.1-12.4-2, AS AMENDED BY P.L.86-2018,
3 SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JANUARY 1, 2024]: Sec. 2. (a) For purposes of this section, an
5 increase in the assessed value of real property is determined in the
6 same manner that an increase in the assessed value of real property is
7 determined for purposes of IC 6-1.1-12.1.
8 (b) This subsection applies only to a development, redevelopment,
9 or rehabilitation that is first assessed after March 1, 2005, and before
10 March 2, 2007. Except as provided in subsection (h) and sections 4, 5,
11 and 8 of this chapter, an owner of real property that:
12 (1) develops, redevelops, or rehabilitates the real property; and
13 (2) creates or retains employment from the development,
14 redevelopment, or rehabilitation;
15 is entitled to a deduction from the assessed value of the real property.
16 (c) Subject to section 14 of this chapter, the deduction under this
17 section is first available in the year in which the increase in assessed
18 value resulting from the development, redevelopment, or rehabilitation
19 occurs and continues for the following two (2) years. The amount of the
20 deduction that a property owner may receive with respect to real
21 property located in a county for a particular year equals the lesser of:
22 (1) two million dollars ($2,000,000); or
23 (2) the product of:
24 (A) the increase in assessed value resulting from the
25 development, rehabilitation, or redevelopment; multiplied by
26 (B) the percentage from the following table:
27 YEAR OF DEDUCTION PERCENTAGE
28 1st 75%
29 2nd 50%
30 3rd 25%
31 (d) A property owner that qualifies for the deduction under this
32 section must file a notice to claim the deduction. The township
33 assessor, or the county assessor if there is no township assessor for the
34 township, shall:
35 (1) inform the county auditor of the real property eligible for the
36 deduction as contained in the notice filed by the taxpayer under
37 this subsection; and
38 (2) inform the county auditor of the deduction amount.
39 (e) The county auditor shall:
40 (1) make the deductions; and
41 (2) notify the county property tax assessment board of appeals of
42 all deductions approved;
2023 IN 45—LS 6138/DI 120 14
1 under this section.
2 (f) The amount of the deduction determined under subsection (c)(2)
3 is adjusted to reflect the percentage increase or decrease in assessed
4 valuation that results from
5 (1) a reassessment under a county's reassessment plan prepared
6 under IC 6-1.1-4-4.2. or
7 (2) an annual adjustment under IC 6-1.1-4-4.5.
8 (g) If an appeal of an assessment is approved that results in a
9 reduction of the assessed value of the real property, the amount of the
10 deduction under this section is adjusted to reflect the percentage
11 decrease that results from the appeal.
12 (h) The deduction under this section does not apply to a facility
13 listed in IC 6-1.1-12.1-3(e).
14 SECTION 12. IC 6-1.1-18-12, AS AMENDED BY P.L.174-2022,
15 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JANUARY 1, 2024]: Sec. 12. (a) For purposes of this section,
17 "maximum rate" refers to the maximum:
18 (1) property tax rate or rates; or
19 (2) special benefits tax rate or rates;
20 referred to in the statutes listed in subsection (d).
21 (b) The maximum rate for taxes first due and payable after 2003 is
22 the maximum rate that would have been determined under subsection
23 (e) for taxes first due and payable in 2003 if subsection (e) had applied
24 for taxes first due and payable in 2003.
25 (c) The maximum rate must be adjusted each year to account for the
26 change in assessed value of real property that results from:
27 (1) an annual adjustment of the assessed value of real property
28 agricultural land under IC 6-1.1-4-4.5; IC 6-1.1-4-13.2; or
29 (2) a reassessment under a county's reassessment plan prepared
30 under IC 6-1.1-4-4.2.
31 (d) The statutes to which subsection (a) refers are:
32 (1) IC 8-10-5-17 (for taxes due and payable before January 1,
33 2023);
34 (2) IC 8-22-3-11;
35 (3) IC 8-22-3-25 (for taxes due and payable before January 1,
36 2023);
37 (4) IC 12-29-1-1;
38 (5) IC 12-29-1-2;
39 (6) IC 12-29-1-3;
40 (7) IC 12-29-3-6;
41 (8) IC 13-21-3-12;
42 (9) IC 13-21-3-15;
2023 IN 45—LS 6138/DI 120 15
1 (10) IC 14-27-6-30;
2 (11) IC 14-33-7-3;
3 (12) IC 14-33-21-5 (for taxes due and payable before January 1,
4 2023);
5 (13) IC 15-14-7-4;
6 (14) IC 15-14-9-1;
7 (15) IC 15-14-9-2;
8 (16) IC 16-20-2-18;
9 (17) IC 16-20-4-27;
10 (18) IC 16-20-7-2;
11 (19) IC 16-22-14;
12 (20) IC 16-23-1-29;
13 (21) IC 16-23-3-6;
14 (22) IC 16-23-4-2;
15 (23) IC 16-23-5-6;
16 (24) IC 16-23-7-2;
17 (25) IC 16-23-8-2;
18 (26) IC 16-23-9-2;
19 (27) IC 16-41-15-5;
20 (28) IC 16-41-33-4;
21 (29) IC 20-46-2-3 (before its repeal on January 1, 2009);
22 (30) IC 20-46-6-5 (before its repeal on January 1, 2019);
23 (31) IC 20-49-2-10;
24 (32) IC 36-1-19-1;
25 (33) IC 23-14-66-2;
26 (34) IC 23-14-67-3;
27 (35) IC 36-7-13-4;
28 (36) IC 36-7-14-28;
29 (37) IC 36-7-15.1-16;
30 (38) IC 36-8-19-8.5 (for taxes due and payable before January 1,
31 2023);
32 (39) IC 36-9-6.1-2;
33 (40) IC 36-9-17.5-4 (for taxes due and payable before January 1,
34 2023);
35 (41) IC 36-9-27-73;
36 (42) IC 36-9-29-31;
37 (43) IC 36-9-29.1-15;
38 (44) IC 36-10-6-2;
39 (45) IC 36-10-7-7;
40 (46) IC 36-10-7-8;
41 (47) IC 36-10-7.5-19 (for taxes due and payable before January 1,
42 2023);
2023 IN 45—LS 6138/DI 120 16
1 (48) IC 36-10-13-5 (before the power to impose a levy was
2 removed on January 1, 2019);
3 (49) IC 36-10-13-7 (before the power to impose a levy was
4 removed on January 1, 2019);
5 (50) IC 36-10-14-4 (before its repeal on January 1, 2019);
6 (51) IC 36-12-7-7;
7 (52) IC 36-12-7-8;
8 (53) IC 36-12-12-10;
9 (54) a statute listed in IC 6-1.1-18.5-9.8 (for taxes due and
10 payable before January 1, 2023); and
11 (55) any statute enacted after December 31, 2003, that:
12 (A) establishes a maximum rate for any part of the:
13 (i) property taxes; or
14 (ii) special benefits taxes;
15 imposed by a political subdivision; and
16 (B) does not exempt the maximum rate from the adjustment
17 under this section.
18 (e) For property tax rates imposed for property taxes first due and
19 payable after December 31, 2013, the new maximum rate under a
20 statute listed in subsection (d) is the tax rate determined under STEP
21 EIGHT of the following STEPS:
22 STEP ONE: Determine the maximum rate for the political
23 subdivision levying a property tax or special benefits tax under
24 the statute for the previous calendar year.
25 STEP TWO: Determine the actual percentage change (rounded to
26 the nearest one-hundredth percent (0.01%)) in the assessed value
27 of the taxable property from the previous calendar year to the year
28 in which the affected property taxes will be imposed.
29 STEP THREE: Determine the three (3) calendar years that
30 immediately precede the year in which the affected property taxes
31 will be imposed.
32 STEP FOUR: Compute separately, for each of the calendar years
33 determined in STEP THREE, the actual percentage change
34 (rounded to the nearest one-hundredth percent (0.01%)) in the
35 assessed value, before the adjustment, if any, under IC 6-1.1-4-4.5
36 (before its repeal on January 1, 2024), or before the
37 adjustment, if any, for agricultural land under IC 6-1.1-4-13.2
38 (beginning after December 31, 2023) of the taxable property
39 from the preceding year.
40 STEP FIVE: Divide the sum of the three (3) quotients computed
41 in STEP FOUR by three (3).
42 STEP SIX: Determine the greater of the following:
2023 IN 45—LS 6138/DI 120 17
1 (A) Zero (0).
2 (B) The STEP FIVE result.
3 STEP SEVEN: Determine the greater of the following:
4 (A) Zero (0).
5 (B) The result of the STEP TWO percentage minus the STEP
6 SIX percentage, if any.
7 STEP EIGHT: Determine the quotient of the STEP ONE tax rate
8 divided by the sum of one (1) plus the STEP SEVEN percentage,
9 if any.
10 (f) The department of local government finance shall compute the
11 maximum rate allowed under subsection (e) and provide the rate to
12 each political subdivision with authority to levy a tax under a statute
13 listed in subsection (d).
14 SECTION 13. IC 6-1.1-37-9, AS AMENDED BY P.L.232-2017,
15 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JANUARY 1, 2024]: Sec. 9. (a) This section applies when:
17 (1) an assessment is made or increased after the date or dates on
18 which the taxes for the year for which the assessment is made
19 were originally due;
20 (2) the assessment upon which a taxpayer has been paying taxes
21 under IC 6-1.1-15-10(a)(1) or IC 6-1.1-15-10(a)(2) while a
22 petition for review or a judicial proceeding has been pending is
23 less than the assessment that results from the final determination
24 of the petition for review or judicial proceeding; or
25 (3) the collection of certain ad valorem property taxes has been
26 enjoined under IC 33-26-6-2, and under the final determination of
27 the petition for judicial review the taxpayer is liable for at least
28 part of those taxes.
29 (b) Except as provided in subsections (c) and (g), a taxpayer shall
30 pay interest on the taxes the taxpayer is required to pay as a result of an
31 action or a determination described in subsection (a) at the rate
32 established by the commissioner of the department of state revenue
33 under IC 6-8.1-10-1 from the original due date or dates for those taxes
34 to:
35 (1) the date of payment; or
36 (2) the date on which penalties for the late payment of a tax
37 installment may be charged under subsection (e) or (f);
38 whichever occurs first. The interest shall be computed using the rate in
39 effect for each particular year in which the interest accrued.
40 (c) Except as provided in subsection (g), a taxpayer shall pay
41 interest on the taxes the taxpayer is ultimately required to pay in excess
42 of the amount that the taxpayer is required to pay under
2023 IN 45—LS 6138/DI 120 18
1 IC 6-1.1-15-10(a)(1) while a petition for review or a judicial
2 proceeding has been pending at the overpayment rate established under
3 Section 6621(c)(1) of the Internal Revenue Code in effect on the
4 original due date or dates for those taxes from the original due date or
5 dates for those taxes to:
6 (1) the date of payment; or
7 (2) the date on which penalties for the late payment of a tax
8 installment may be charged under subsection (e) or (f);
9 whichever occurs first.
10 (d) With respect to an action or determination described in
11 subsection (a), the taxpayer shall pay the taxes resulting from that
12 action or determination and the interest prescribed under subsection (b)
13 or (c) on or before:
14 (1) the next May 10; or
15 (2) the next November 10;
16 whichever occurs first.
17 (e) A taxpayer shall begin paying the penalty prescribed in section
18 10 of this chapter on the day after the date for payment prescribed in
19 subsection (d) if:
20 (1) the taxpayer has not paid the amount of taxes resulting from
21 the action or determination; and
22 (2) the taxpayer either:
23 (A) received notice of the taxes the taxpayer is required to pay
24 as a result of the action or determination at least thirty (30)
25 days before the date for payment; or
26 (B) voluntarily signed and filed an assessment return for the
27 taxes.
28 (f) If subsection (e) does not apply, a taxpayer who has not paid the
29 amount of taxes resulting from the action or determination shall begin
30 paying the penalty prescribed in section 10 of this chapter on:
31 (1) the next May 10 which follows the date for payment
32 prescribed in subsection (d); or
33 (2) the next November 10 which follows the date for payment
34 prescribed in subsection (d);
35 whichever occurs first.
36 (g) A taxpayer is not subject to the payment of interest on real
37 property assessments under subsection (b) or (c) if:
38 (1) an assessment is made or increased after the date or dates on
39 which the taxes for the year for which the assessment is made
40 were due;
41 (2) the assessment or the assessment increase is made as the result
42 of error or neglect by the assessor or by any other official
2023 IN 45—LS 6138/DI 120 19
1 involved with the assessment of property or the collection of
2 property taxes; and
3 (3) the assessment:
4 (A) would have been made on the normal assessment date if
5 the error or neglect had not occurred; or
6 (B) increase would have been included in the assessment on
7 the normal annual assessment date if the error or neglect had
8 not occurred.
9 SECTION 14. IC 6-1.1-39-5, AS AMENDED BY P.L.214-2019,
10 SECTION 22, AND AS AMENDED BY P.L.257-2019, SECTION 68,
11 IS CORRECTED AND AMENDED TO READ AS FOLLOWS
12 [EFFECTIVE JANUARY 1, 2024]: Sec. 5. (a) A declaratory ordinance
13 adopted under section 2 of this chapter and confirmed under section 3
14 of this chapter must include a provision with respect to the allocation
15 and distribution of property taxes for the purposes and in the manner
16 provided in this section. The allocation provision must apply to the
17 entire economic development district. The allocation provisions must
18 require that any property taxes subsequently levied by or for the benefit
19 of any public body entitled to a distribution of property taxes on taxable
20 property in the economic development district be allocated and
21 distributed as follows:
22 (1) Except as otherwise provided in this section, the proceeds of
23 the taxes attributable to the lesser of:
24 (A) the assessed value of the property for the assessment date
25 with respect to which the allocation and distribution is made;
26 or
27 (B) the base assessed value;
28 shall be allocated to and, when collected, paid into the funds of
29 the respective taxing units. However, if the effective date of the
30 allocation provision of a declaratory ordinance is after March 1,
31 1985, and before January 1, 1986, and if an improvement to
32 property was partially completed on March 1, 1985, the unit may
33 provide in the declaratory ordinance that the taxes attributable to
34 the assessed value of the property as finally determined for March
35 1, 1984, shall be allocated to and, when collected, paid into the
36 funds of the respective taxing units.
37 (2) Except as otherwise provided in this section, part or all of the
38 property tax proceeds in excess of those described in subdivision
39 (1), as specified in the declaratory ordinance, shall be allocated to
40 the unit for the economic development district and, when
41 collected, paid into a special fund established by the unit for that
42 economic development district that may be used only to pay the
2023 IN 45—LS 6138/DI 120 20
1 principal of and interest on obligations owed by the unit under
2 IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
3 industrial development programs in, or serving, that economic
4 development district. The amount not paid into the special fund
5 shall be paid to the respective units in the manner prescribed by
6 subdivision (1).
7 (3) When the money in the fund is sufficient to pay all
8 outstanding principal of and interest (to the earliest date on which
9 the obligations can be redeemed) on obligations owed by the unit
10 under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
11 of industrial development programs in, or serving, that economic
12 development district, money in the special fund in excess of that
13 amount shall be paid to the respective taxing units in the manner
14 prescribed by subdivision (1).
15 (b) Property tax proceeds allocable to the economic development
16 district under subsection (a)(2) must, subject to subsection (a)(3), be
17 irrevocably pledged by the unit for payment as set forth in subsection
18 (a)(2).
19 (c) For the purpose of allocating taxes levied by or for any taxing
20 unit or units, the assessed value of taxable property in a territory in the
21 economic development district that is annexed by any taxing unit after
22 the effective date of the allocation provision of the declaratory
23 ordinance is the lesser of:
24 (1) the assessed value of the property for the assessment date with
25 respect to which the allocation and distribution is made; or
26 (2) the base assessed value.
27 (d) Notwithstanding any other law, each assessor shall, upon
28 petition of the fiscal body, reassess the taxable property situated upon
29 or in, or added to, the economic development district effective on the
30 next assessment date after the petition.
31 (e) Notwithstanding any other law, the assessed value of all taxable
32 property in the economic development district, for purposes of tax
33 limitation, property tax replacement, and formulation of the budget, tax
34 rate, and tax levy for each political subdivision in which the property
35 is located, is the lesser of:
36 (1) the assessed value of the property as valued without regard to
37 this section; or
38 (2) the base assessed value.
39 (f) The state board of accounts and department of local government
40 finance shall make the rules and prescribe the forms and procedures
41 that they consider expedient for the implementation of this chapter.
42 After each reassessment of a group of parcels under a reassessment
2023 IN 45—LS 6138/DI 120 21
1 plan prepared under IC 6-1.1-4-4.2 the department of local government
2 finance shall adjust the base assessed value one (1) time to neutralize
3 any effect of the reassessment on the property tax proceeds allocated
4 to the district under this section. After each annual adjustment for
5 agricultural land under IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the
6 department of local government finance shall adjust the base assessed
7 value to neutralize any effect of the annual adjustment on the property
8 tax proceeds allocated to the district under this section. However, the
9 adjustments under this subsection may not include the effect of
10 property tax abatements under IC 6-1.1-12.1.
11 (g) As used in this section, "property taxes" means:
12 (1) taxes imposed under this article on real property; and
13 (2) any part of the taxes imposed under this article on depreciable
14 personal property that the unit has by ordinance allocated to the
15 economic development district. However, the ordinance may not
16 limit the allocation to taxes on depreciable personal property with
17 any particular useful life or lives.
18 If a unit had, by ordinance adopted before May 8, 1987, allocated to an
19 economic development district property taxes imposed under IC 6-1.1
20 on depreciable personal property that has a useful life in excess of eight
21 (8) years, the ordinance continues in effect until an ordinance is
22 adopted by the unit under subdivision (2).
23 (h) As used in this section, "base assessed value" means, subject to
24 subsection (i):
25 (1) the net assessed value of all the property as finally determined
26 for the assessment date immediately preceding the effective date
27 of the allocation provision of the declaratory resolution, as
28 adjusted under subsection (f); plus
29 (2) to the extent that it is not included in subdivision (1), the net
30 assessed value of property that is assessed as residential property
31 under the rules of the department of local government finance,
32 within the economic development district, as finally determined
33 for any the current assessment date. after the effective date of the
34 allocation provision.
35 Subdivision (2) applies only to economic development districts
36 established after June 30, 1997, and to additional areas established
37 after June 30, 1997.
38 (i) If a fiscal body confirms, or modifies and confirms, an ordinance
39 under section 3 of this chapter and the fiscal body makes either of the
40 filings required under section 3(d) of this chapter after the first
41 anniversary of the effective date of the allocation provision in the
42 ordinance, the auditor of the county in which the unit is located shall
2023 IN 45—LS 6138/DI 120 22
1 compute the base assessed value for the allocation area using the
2 assessment date immediately preceding the later of:
3 (1) the date on which the documents are filed with the county
4 auditor; or
5 (2) the date on which the documents are filed with the
6 department.
7 SECTION 15. IC 8-22-3.5-11, AS AMENDED BY P.L.86-2018,
8 SECTION 144, IS AMENDED TO READ AS FOLLOWS
9 [EFFECTIVE JANUARY 1, 2024]: Sec. 11. (a) The state board of
10 accounts and the department of local government finance shall make
11 the rules and prescribe the forms and procedures that the state board of
12 accounts and department consider appropriate for the implementation
13 of this chapter.
14 (b) After each reassessment under IC 6-1.1-4, the department of
15 local government finance shall adjust the base assessed value (as
16 defined in section 9 of this chapter) one (1) time to neutralize any effect
17 of the reassessment on the property tax proceeds allocated to the airport
18 development zone's special funds under section 9 of this chapter.
19 (c) After each annual adjustment for agricultural land under
20 IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the department of local government
21 finance shall adjust the base assessed value (as defined in section 9 of
22 this chapter) to neutralize any effect of the annual adjustment on the
23 property tax proceeds allocated to the airport development zone's
24 special funds under section 9 of this chapter.
25 SECTION 16. IC 36-7-14-39, AS AMENDED BY P.L.174-2022,
26 SECTION 71, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JANUARY 1, 2024]: Sec. 39. (a) As used in this section:
28 "Allocation area" means that part of a redevelopment project area
29 to which an allocation provision of a declaratory resolution adopted
30 under section 15 of this chapter refers for purposes of distribution and
31 allocation of property taxes.
32 "Base assessed value" means, subject to subsection (j), the
33 following:
34 (1) If an allocation provision is adopted after June 30, 1995, in a
35 declaratory resolution or an amendment to a declaratory
36 resolution establishing an economic development area:
37 (A) the net assessed value of all the property as finally
38 determined for the assessment date immediately preceding the
39 effective date of the allocation provision of the declaratory
40 resolution, as adjusted under subsection (h); plus
41 (B) to the extent that it is not included in clause (A), the net
42 assessed value of property that is assessed as residential
2023 IN 45—LS 6138/DI 120 23
1 property under the rules of the department of local government
2 finance, within the allocation area, as finally determined for
3 the current assessment date.
4 (2) If an allocation provision is adopted after June 30, 1997, in a
5 declaratory resolution or an amendment to a declaratory
6 resolution establishing a redevelopment project area:
7 (A) the net assessed value of all the property as finally
8 determined for the assessment date immediately preceding the
9 effective date of the allocation provision of the declaratory
10 resolution, as adjusted under subsection (h); plus
11 (B) to the extent that it is not included in clause (A), the net
12 assessed value of property that is assessed as residential
13 property under the rules of the department of local government
14 finance, as finally determined for the current assessment date.
15 (3) If:
16 (A) an allocation provision adopted before June 30, 1995, in
17 a declaratory resolution or an amendment to a declaratory
18 resolution establishing a redevelopment project area expires
19 after June 30, 1997; and
20 (B) after June 30, 1997, a new allocation provision is included
21 in an amendment to the declaratory resolution;
22 the net assessed value of all the property as finally determined for
23 the assessment date immediately preceding the effective date of
24 the allocation provision adopted after June 30, 1997, as adjusted
25 under subsection (h).
26 (4) Except as provided in subdivision (5), for all other allocation
27 areas, the net assessed value of all the property as finally
28 determined for the assessment date immediately preceding the
29 effective date of the allocation provision of the declaratory
30 resolution, as adjusted under subsection (h).
31 (5) If an allocation area established in an economic development
32 area before July 1, 1995, is expanded after June 30, 1995, the
33 definition in subdivision (1) applies to the expanded part of the
34 area added after June 30, 1995.
35 (6) If an allocation area established in a redevelopment project
36 area before July 1, 1997, is expanded after June 30, 1997, the
37 definition in subdivision (2) applies to the expanded part of the
38 area added after June 30, 1997.
39 Except as provided in section 39.3 of this chapter, "property taxes"
40 means taxes imposed under IC 6-1.1 on real property. However, upon
41 approval by a resolution of the redevelopment commission adopted
42 before June 1, 1987, "property taxes" also includes taxes imposed
2023 IN 45—LS 6138/DI 120 24
1 under IC 6-1.1 on depreciable personal property. If a redevelopment
2 commission adopted before June 1, 1987, a resolution to include within
3 the definition of property taxes, taxes imposed under IC 6-1.1 on
4 depreciable personal property that has a useful life in excess of eight
5 (8) years, the commission may by resolution determine the percentage
6 of taxes imposed under IC 6-1.1 on all depreciable personal property
7 that will be included within the definition of property taxes. However,
8 the percentage included must not exceed twenty-five percent (25%) of
9 the taxes imposed under IC 6-1.1 on all depreciable personal property.
10 (b) A declaratory resolution adopted under section 15 of this chapter
11 on or before the allocation deadline determined under subsection (i)
12 may include a provision with respect to the allocation and distribution
13 of property taxes for the purposes and in the manner provided in this
14 section. A declaratory resolution previously adopted may include an
15 allocation provision by the amendment of that declaratory resolution on
16 or before the allocation deadline determined under subsection (i) in
17 accordance with the procedures required for its original adoption. A
18 declaratory resolution or amendment that establishes an allocation
19 provision must include a specific finding of fact, supported by
20 evidence, that the adoption of the allocation provision will result in
21 new property taxes in the area that would not have been generated but
22 for the adoption of the allocation provision. For an allocation area
23 established before July 1, 1995, the expiration date of any allocation
24 provisions for the allocation area is June 30, 2025, or the last date of
25 any obligations that are outstanding on July 1, 2015, whichever is later.
26 A declaratory resolution or an amendment that establishes an allocation
27 provision after June 30, 1995, must specify an expiration date for the
28 allocation provision. For an allocation area established before July 1,
29 2008, the expiration date may not be more than thirty (30) years after
30 the date on which the allocation provision is established. For an
31 allocation area established after June 30, 2008, the expiration date may
32 not be more than twenty-five (25) years after the date on which the first
33 obligation was incurred to pay principal and interest on bonds or lease
34 rentals on leases payable from tax increment revenues. However, with
35 respect to bonds or other obligations that were issued before July 1,
36 2008, if any of the bonds or other obligations that were scheduled when
37 issued to mature before the specified expiration date and that are
38 payable only from allocated tax proceeds with respect to the allocation
39 area remain outstanding as of the expiration date, the allocation
40 provision does not expire until all of the bonds or other obligations are
41 no longer outstanding. Notwithstanding any other law, in the case of an
42 allocation area that is established after June 30, 2019, and that is
2023 IN 45—LS 6138/DI 120 25
1 located in a redevelopment project area described in section
2 25.1(c)(3)(C) of this chapter, an economic development area described
3 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
4 area described in section 25.1(c)(3)(C) of this chapter, the expiration
5 date of the allocation provision may not be more than thirty-five (35)
6 years after the date on which the allocation provision is established.
7 The allocation provision may apply to all or part of the redevelopment
8 project area. The allocation provision must require that any property
9 taxes subsequently levied by or for the benefit of any public body
10 entitled to a distribution of property taxes on taxable property in the
11 allocation area be allocated and distributed as follows:
12 (1) Except as otherwise provided in this section, the proceeds of
13 the taxes attributable to the lesser of:
14 (A) the assessed value of the property for the assessment date
15 with respect to which the allocation and distribution is made;
16 or
17 (B) the base assessed value;
18 shall be allocated to and, when collected, paid into the funds of
19 the respective taxing units.
20 (2) The excess of the proceeds of the property taxes imposed for
21 the assessment date with respect to which the allocation and
22 distribution is made that are attributable to taxes imposed after
23 being approved by the voters in a referendum or local public
24 question conducted after April 30, 2010, not otherwise included
25 in subdivision (1) shall be allocated to and, when collected, paid
26 into the funds of the taxing unit for which the referendum or local
27 public question was conducted.
28 (3) Except as otherwise provided in this section, property tax
29 proceeds in excess of those described in subdivisions (1) and (2)
30 shall be allocated to the redevelopment district and, when
31 collected, paid into an allocation fund for that allocation area that
32 may be used by the redevelopment district only to do one (1) or
33 more of the following:
34 (A) Pay the principal of and interest on any obligations
35 payable solely from allocated tax proceeds which are incurred
36 by the redevelopment district for the purpose of financing or
37 refinancing the redevelopment of that allocation area.
38 (B) Establish, augment, or restore the debt service reserve for
39 bonds payable solely or in part from allocated tax proceeds in
40 that allocation area.
41 (C) Pay the principal of and interest on bonds payable from
42 allocated tax proceeds in that allocation area and from the
2023 IN 45—LS 6138/DI 120 26
1 special tax levied under section 27 of this chapter.
2 (D) Pay the principal of and interest on bonds issued by the
3 unit to pay for local public improvements that are physically
4 located in or physically connected to that allocation area.
5 (E) Pay premiums on the redemption before maturity of bonds
6 payable solely or in part from allocated tax proceeds in that
7 allocation area.
8 (F) Make payments on leases payable from allocated tax
9 proceeds in that allocation area under section 25.2 of this
10 chapter.
11 (G) Reimburse the unit for expenditures made by it for local
12 public improvements (which include buildings, parking
13 facilities, and other items described in section 25.1(a) of this
14 chapter) that are physically located in or physically connected
15 to that allocation area.
16 (H) Reimburse the unit for rentals paid by it for a building or
17 parking facility that is physically located in or physically
18 connected to that allocation area under any lease entered into
19 under IC 36-1-10.
20 (I) For property taxes first due and payable before January 1,
21 2009, pay all or a part of a property tax replacement credit to
22 taxpayers in an allocation area as determined by the
23 redevelopment commission. This credit equals the amount
24 determined under the following STEPS for each taxpayer in a
25 taxing district (as defined in IC 6-1.1-1-20) that contains all or
26 part of the allocation area:
27 STEP ONE: Determine that part of the sum of the amounts
28 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
29 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
30 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
31 the taxing district.
32 STEP TWO: Divide:
33 (i) that part of each county's eligible property tax
34 replacement amount (as defined in IC 6-1.1-21-2 (before its
35 repeal)) for that year as determined under IC 6-1.1-21-4
36 (before its repeal) that is attributable to the taxing district;
37 by
38 (ii) the STEP ONE sum.
39 STEP THREE: Multiply:
40 (i) the STEP TWO quotient; times
41 (ii) the total amount of the taxpayer's taxes (as defined in
42 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
2023 IN 45—LS 6138/DI 120 27
1 that have been allocated during that year to an allocation
2 fund under this section.
3 If not all the taxpayers in an allocation area receive the credit
4 in full, each taxpayer in the allocation area is entitled to
5 receive the same proportion of the credit. A taxpayer may not
6 receive a credit under this section and a credit under section
7 39.5 of this chapter (before its repeal) in the same year.
8 (J) Pay expenses incurred by the redevelopment commission
9 for local public improvements that are in the allocation area or
10 serving the allocation area. Public improvements include
11 buildings, parking facilities, and other items described in
12 section 25.1(a) of this chapter.
13 (K) Reimburse public and private entities for expenses
14 incurred in training employees of industrial facilities that are
15 located:
16 (i) in the allocation area; and
17 (ii) on a parcel of real property that has been classified as
18 industrial property under the rules of the department of local
19 government finance.
20 However, the total amount of money spent for this purpose in
21 any year may not exceed the total amount of money in the
22 allocation fund that is attributable to property taxes paid by the
23 industrial facilities described in this clause. The
24 reimbursements under this clause must be made within three
25 (3) years after the date on which the investments that are the
26 basis for the increment financing are made.
27 (L) Pay the costs of carrying out an eligible efficiency project
28 (as defined in IC 36-9-41-1.5) within the unit that established
29 the redevelopment commission. However, property tax
30 proceeds may be used under this clause to pay the costs of
31 carrying out an eligible efficiency project only if those
32 property tax proceeds exceed the amount necessary to do the
33 following:
34 (i) Make, when due, any payments required under clauses
35 (A) through (K), including any payments of principal and
36 interest on bonds and other obligations payable under this
37 subdivision, any payments of premiums under this
38 subdivision on the redemption before maturity of bonds, and
39 any payments on leases payable under this subdivision.
40 (ii) Make any reimbursements required under this
41 subdivision.
42 (iii) Pay any expenses required under this subdivision.
2023 IN 45—LS 6138/DI 120 28
1 (iv) Establish, augment, or restore any debt service reserve
2 under this subdivision.
3 (M) Expend money and provide financial assistance as
4 authorized in section 12.2(a)(27) of this chapter.
5 The allocation fund may not be used for operating expenses of the
6 commission.
7 (4) Except as provided in subsection (g), before June 15 of each
8 year, the commission shall do the following:
9 (A) Determine the amount, if any, by which the assessed value
10 of the taxable property in the allocation area for the most
11 recent assessment date minus the base assessed value, when
12 multiplied by the estimated tax rate of the allocation area, will
13 exceed the amount of assessed value needed to produce the
14 property taxes necessary to make, when due, principal and
15 interest payments on bonds described in subdivision (3), plus
16 the amount necessary for other purposes described in
17 subdivision (3).
18 (B) Provide a written notice to the county auditor, the fiscal
19 body of the county or municipality that established the
20 department of redevelopment, and the officers who are
21 authorized to fix budgets, tax rates, and tax levies under
22 IC 6-1.1-17-5 for each of the other taxing units that is wholly
23 or partly located within the allocation area. The county auditor,
24 upon receiving the notice, shall forward this notice (in an
25 electronic format) to the department of local government
26 finance not later than June 15 of each year. The notice must:
27 (i) state the amount, if any, of excess assessed value that the
28 commission has determined may be allocated to the
29 respective taxing units in the manner prescribed in
30 subdivision (1); or
31 (ii) state that the commission has determined that there is no
32 excess assessed value that may be allocated to the respective
33 taxing units in the manner prescribed in subdivision (1).
34 The county auditor shall allocate to the respective taxing units
35 the amount, if any, of excess assessed value determined by the
36 commission. The commission may not authorize an allocation
37 of assessed value to the respective taxing units under this
38 subdivision if to do so would endanger the interests of the
39 holders of bonds described in subdivision (3) or lessors under
40 section 25.3 of this chapter.
41 (C) If:
42 (i) the amount of excess assessed value determined by the
2023 IN 45—LS 6138/DI 120 29
1 commission is expected to generate more than two hundred
2 percent (200%) of the amount of allocated tax proceeds
3 necessary to make, when due, principal and interest
4 payments on bonds described in subdivision (3); plus
5 (ii) the amount necessary for other purposes described in
6 subdivision (3);
7 the commission shall submit to the legislative body of the unit
8 its determination of the excess assessed value that the
9 commission proposes to allocate to the respective taxing units
10 in the manner prescribed in subdivision (1). The legislative
11 body of the unit may approve the commission's determination
12 or modify the amount of the excess assessed value that will be
13 allocated to the respective taxing units in the manner
14 prescribed in subdivision (1).
15 (5) Notwithstanding subdivision (4), in the case of an allocation
16 area that is established after June 30, 2019, and that is located in
17 a redevelopment project area described in section 25.1(c)(3)(C)
18 of this chapter, an economic development area described in
19 section 25.1(c)(3)(C) of this chapter, or an urban renewal project
20 area described in section 25.1(c)(3)(C) of this chapter, for each
21 year the allocation provision is in effect, if the amount of excess
22 assessed value determined by the commission under subdivision
23 (4)(A) is expected to generate more than two hundred percent
24 (200%) of:
25 (A) the amount of allocated tax proceeds necessary to make,
26 when due, principal and interest payments on bonds described
27 in subdivision (3) for the project; plus
28 (B) the amount necessary for other purposes described in
29 subdivision (3) for the project;
30 the amount of the excess assessed value that generates more than
31 two hundred percent (200%) of the amounts described in clauses
32 (A) and (B) shall be allocated to the respective taxing units in the
33 manner prescribed by subdivision (1).
34 (c) For the purpose of allocating taxes levied by or for any taxing
35 unit or units, the assessed value of taxable property in a territory in the
36 allocation area that is annexed by any taxing unit after the effective
37 date of the allocation provision of the declaratory resolution is the
38 lesser of:
39 (1) the assessed value of the property for the assessment date with
40 respect to which the allocation and distribution is made; or
41 (2) the base assessed value.
42 (d) Property tax proceeds allocable to the redevelopment district
2023 IN 45—LS 6138/DI 120 30
1 under subsection (b)(3) may, subject to subsection (b)(4), be
2 irrevocably pledged by the redevelopment district for payment as set
3 forth in subsection (b)(3).
4 (e) Notwithstanding any other law, each assessor shall, upon
5 petition of the redevelopment commission, reassess the taxable
6 property situated upon or in, or added to, the allocation area, effective
7 on the next assessment date after the petition.
8 (f) Notwithstanding any other law, the assessed value of all taxable
9 property in the allocation area, for purposes of tax limitation, property
10 tax replacement, and formulation of the budget, tax rate, and tax levy
11 for each political subdivision in which the property is located is the
12 lesser of:
13 (1) the assessed value of the property as valued without regard to
14 this section; or
15 (2) the base assessed value.
16 (g) If any part of the allocation area is located in an enterprise zone
17 created under IC 5-28-15, the unit that designated the allocation area
18 shall create funds as specified in this subsection. A unit that has
19 obligations, bonds, or leases payable from allocated tax proceeds under
20 subsection (b)(3) shall establish an allocation fund for the purposes
21 specified in subsection (b)(3) and a special zone fund. Such a unit
22 shall, until the end of the enterprise zone phase out period, deposit each
23 year in the special zone fund any amount in the allocation fund derived
24 from property tax proceeds in excess of those described in subsection
25 (b)(1) and (b)(2) from property located in the enterprise zone that
26 exceeds the amount sufficient for the purposes specified in subsection
27 (b)(3) for the year. The amount sufficient for purposes specified in
28 subsection (b)(3) for the year shall be determined based on the pro rata
29 portion of such current property tax proceeds from the part of the
30 enterprise zone that is within the allocation area as compared to all
31 such current property tax proceeds derived from the allocation area. A
32 unit that has no obligations, bonds, or leases payable from allocated tax
33 proceeds under subsection (b)(3) shall establish a special zone fund
34 and deposit all the property tax proceeds in excess of those described
35 in subsection (b)(1) and (b)(2) in the fund derived from property tax
36 proceeds in excess of those described in subsection (b)(1) and (b)(2)
37 from property located in the enterprise zone. The unit that creates the
38 special zone fund shall use the fund (based on the recommendations of
39 the urban enterprise association) for programs in job training, job
40 enrichment, and basic skill development that are designed to benefit
41 residents and employers in the enterprise zone or other purposes
42 specified in subsection (b)(3), except that where reference is made in
2023 IN 45—LS 6138/DI 120 31
1 subsection (b)(3) to allocation area it shall refer for purposes of
2 payments from the special zone fund only to that part of the allocation
3 area that is also located in the enterprise zone. Those programs shall
4 reserve at least one-half (1/2) of their enrollment in any session for
5 residents of the enterprise zone.
6 (h) The state board of accounts and department of local government
7 finance shall make the rules and prescribe the forms and procedures
8 that they consider expedient for the implementation of this chapter.
9 After each reassessment in an area under a reassessment plan prepared
10 under IC 6-1.1-4-4.2, the department of local government finance shall
11 adjust the base assessed value one (1) time to neutralize any effect of
12 the reassessment of the real property in the area on the property tax
13 proceeds allocated to the redevelopment district under this section.
14 After each annual adjustment for agricultural land under
15 IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the department of local government
16 finance shall adjust the base assessed value one (1) time to neutralize
17 any effect of the annual adjustment on the property tax proceeds
18 allocated to the redevelopment district under this section. However, the
19 adjustments under this subsection:
20 (1) may not include the effect of phasing in assessed value due to
21 property tax abatements under IC 6-1.1-12.1;
22 (2) may not produce less property tax proceeds allocable to the
23 redevelopment district under subsection (b)(3) than would
24 otherwise have been received if the reassessment under the
25 reassessment plan or the annual adjustment for agricultural land
26 had not occurred; and
27 (3) may decrease base assessed value only to the extent that
28 assessed values in the allocation area have been decreased due to
29 annual adjustments for agricultural land or the reassessment
30 under the reassessment plan.
31 Assessed value increases attributable to the application of an abatement
32 schedule under IC 6-1.1-12.1 may not be included in the base assessed
33 value of an allocation area. The department of local government
34 finance may prescribe procedures for county and township officials to
35 follow to assist the department in making the adjustments.
36 (i) The allocation deadline referred to in subsection (b) is
37 determined in the following manner:
38 (1) The initial allocation deadline is December 31, 2011.
39 (2) Subject to subdivision (3), the initial allocation deadline and
40 subsequent allocation deadlines are automatically extended in
41 increments of five (5) years, so that allocation deadlines
42 subsequent to the initial allocation deadline fall on December 31,
2023 IN 45—LS 6138/DI 120 32
1 2016, and December 31 of each fifth year thereafter.
2 (3) At least one (1) year before the date of an allocation deadline
3 determined under subdivision (2), the general assembly may enact
4 a law that:
5 (A) terminates the automatic extension of allocation deadlines
6 under subdivision (2); and
7 (B) specifically designates a particular date as the final
8 allocation deadline.
9 (j) If a redevelopment commission adopts a declaratory resolution
10 or an amendment to a declaratory resolution that contains an allocation
11 provision and the redevelopment commission makes either of the
12 filings required under section 17(e) of this chapter after the first
13 anniversary of the effective date of the allocation provision, the auditor
14 of the county in which the unit is located shall compute the base
15 assessed value for the allocation area using the assessment date
16 immediately preceding the later of:
17 (1) the date on which the documents are filed with the county
18 auditor; or
19 (2) the date on which the documents are filed with the department
20 of local government finance.
21 (k) For an allocation area established after June 30, 2024,
22 "residential property" refers to the assessed value of property that is
23 allocated to the one percent (1%) homestead land and improvement
24 categories in the county tax and billing software system, along with the
25 residential assessed value as defined for purposes of calculating the
26 rate for the local income tax property tax relief credit designated for
27 residential property under IC 6-3.6-5-6(d)(3).
28 SECTION 17. IC 36-7-15.1-26, AS AMENDED BY P.L.174-2022,
29 SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JANUARY 1, 2024]: Sec. 26. (a) As used in this section:
31 "Allocation area" means that part of a redevelopment project area
32 to which an allocation provision of a resolution adopted under section
33 8 of this chapter refers for purposes of distribution and allocation of
34 property taxes.
35 "Base assessed value" means, subject to subsection (j), the
36 following:
37 (1) If an allocation provision is adopted after June 30, 1995, in a
38 declaratory resolution or an amendment to a declaratory
39 resolution establishing an economic development area:
40 (A) the net assessed value of all the property as finally
41 determined for the assessment date immediately preceding the
42 effective date of the allocation provision of the declaratory
2023 IN 45—LS 6138/DI 120 33
1 resolution, as adjusted under subsection (h); plus
2 (B) to the extent that it is not included in clause (A), the net
3 assessed value of property that is assessed as residential
4 property under the rules of the department of local government
5 finance, within the allocation area, as finally determined for
6 the current assessment date.
7 (2) If an allocation provision is adopted after June 30, 1997, in a
8 declaratory resolution or an amendment to a declaratory
9 resolution establishing a redevelopment project area:
10 (A) the net assessed value of all the property as finally
11 determined for the assessment date immediately preceding the
12 effective date of the allocation provision of the declaratory
13 resolution, as adjusted under subsection (h); plus
14 (B) to the extent that it is not included in clause (A), the net
15 assessed value of property that is assessed as residential
16 property under the rules of the department of local government
17 finance, within the allocation area, as finally determined for
18 the current assessment date.
19 (3) If:
20 (A) an allocation provision adopted before June 30, 1995, in
21 a declaratory resolution or an amendment to a declaratory
22 resolution establishing a redevelopment project area expires
23 after June 30, 1997; and
24 (B) after June 30, 1997, a new allocation provision is included
25 in an amendment to the declaratory resolution;
26 the net assessed value of all the property as finally determined for
27 the assessment date immediately preceding the effective date of
28 the allocation provision adopted after June 30, 1997, as adjusted
29 under subsection (h).
30 (4) Except as provided in subdivision (5), for all other allocation
31 areas, the net assessed value of all the property as finally
32 determined for the assessment date immediately preceding the
33 effective date of the allocation provision of the declaratory
34 resolution, as adjusted under subsection (h).
35 (5) If an allocation area established in an economic development
36 area before July 1, 1995, is expanded after June 30, 1995, the
37 definition in subdivision (1) applies to the expanded part of the
38 area added after June 30, 1995.
39 (6) If an allocation area established in a redevelopment project
40 area before July 1, 1997, is expanded after June 30, 1997, the
41 definition in subdivision (2) applies to the expanded part of the
42 area added after June 30, 1997.
2023 IN 45—LS 6138/DI 120 34
1 Except as provided in section 26.2 of this chapter, "property taxes"
2 means taxes imposed under IC 6-1.1 on real property. However, upon
3 approval by a resolution of the redevelopment commission adopted
4 before June 1, 1987, "property taxes" also includes taxes imposed
5 under IC 6-1.1 on depreciable personal property. If a redevelopment
6 commission adopted before June 1, 1987, a resolution to include within
7 the definition of property taxes, taxes imposed under IC 6-1.1 on
8 depreciable personal property that has a useful life in excess of eight
9 (8) years, the commission may by resolution determine the percentage
10 of taxes imposed under IC 6-1.1 on all depreciable personal property
11 that will be included within the definition of property taxes. However,
12 the percentage included must not exceed twenty-five percent (25%) of
13 the taxes imposed under IC 6-1.1 on all depreciable personal property.
14 (b) A resolution adopted under section 8 of this chapter on or before
15 the allocation deadline determined under subsection (i) may include a
16 provision with respect to the allocation and distribution of property
17 taxes for the purposes and in the manner provided in this section. A
18 resolution previously adopted may include an allocation provision by
19 the amendment of that resolution on or before the allocation deadline
20 determined under subsection (i) in accordance with the procedures
21 required for its original adoption. A declaratory resolution or
22 amendment that establishes an allocation provision must include a
23 specific finding of fact, supported by evidence, that the adoption of the
24 allocation provision will result in new property taxes in the area that
25 would not have been generated but for the adoption of the allocation
26 provision. For an allocation area established before July 1, 1995, the
27 expiration date of any allocation provisions for the allocation area is
28 June 30, 2025, or the last date of any obligations that are outstanding
29 on July 1, 2015, whichever is later. However, for an allocation area
30 identified as the Consolidated Allocation Area in the report submitted
31 in 2013 to the fiscal body under section 36.3 of this chapter, the
32 expiration date of any allocation provisions for the allocation area is
33 January 1, 2051. A declaratory resolution or an amendment that
34 establishes an allocation provision after June 30, 1995, must specify an
35 expiration date for the allocation provision. For an allocation area
36 established before July 1, 2008, the expiration date may not be more
37 than thirty (30) years after the date on which the allocation provision
38 is established. For an allocation area established after June 30, 2008,
39 the expiration date may not be more than twenty-five (25) years after
40 the date on which the first obligation was incurred to pay principal and
41 interest on bonds or lease rentals on leases payable from tax increment
42 revenues. However, with respect to bonds or other obligations that were
2023 IN 45—LS 6138/DI 120 35
1 issued before July 1, 2008, if any of the bonds or other obligations that
2 were scheduled when issued to mature before the specified expiration
3 date and that are payable only from allocated tax proceeds with respect
4 to the allocation area remain outstanding as of the expiration date, the
5 allocation provision does not expire until all of the bonds or other
6 obligations are no longer outstanding. The allocation provision may
7 apply to all or part of the redevelopment project area. The allocation
8 provision must require that any property taxes subsequently levied by
9 or for the benefit of any public body entitled to a distribution of
10 property taxes on taxable property in the allocation area be allocated
11 and distributed as follows:
12 (1) Except as otherwise provided in this section, the proceeds of
13 the taxes attributable to the lesser of:
14 (A) the assessed value of the property for the assessment date
15 with respect to which the allocation and distribution is made;
16 or
17 (B) the base assessed value;
18 shall be allocated to and, when collected, paid into the funds of
19 the respective taxing units.
20 (2) The excess of the proceeds of the property taxes imposed for
21 the assessment date with respect to which the allocation and
22 distribution is made that are attributable to taxes imposed after
23 being approved by the voters in a referendum or local public
24 question conducted after April 30, 2010, not otherwise included
25 in subdivision (1) shall be allocated to and, when collected, paid
26 into the funds of the taxing unit for which the referendum or local
27 public question was conducted.
28 (3) Except as otherwise provided in this section, property tax
29 proceeds in excess of those described in subdivisions (1) and (2)
30 shall be allocated to the redevelopment district and, when
31 collected, paid into a special fund for that allocation area that may
32 be used by the redevelopment district only to do one (1) or more
33 of the following:
34 (A) Pay the principal of and interest on any obligations
35 payable solely from allocated tax proceeds that are incurred by
36 the redevelopment district for the purpose of financing or
37 refinancing the redevelopment of that allocation area.
38 (B) Establish, augment, or restore the debt service reserve for
39 bonds payable solely or in part from allocated tax proceeds in
40 that allocation area.
41 (C) Pay the principal of and interest on bonds payable from
42 allocated tax proceeds in that allocation area and from the
2023 IN 45—LS 6138/DI 120 36
1 special tax levied under section 19 of this chapter.
2 (D) Pay the principal of and interest on bonds issued by the
3 consolidated city to pay for local public improvements that are
4 physically located in or physically connected to that allocation
5 area.
6 (E) Pay premiums on the redemption before maturity of bonds
7 payable solely or in part from allocated tax proceeds in that
8 allocation area.
9 (F) Make payments on leases payable from allocated tax
10 proceeds in that allocation area under section 17.1 of this
11 chapter.
12 (G) Reimburse the consolidated city for expenditures for local
13 public improvements (which include buildings, parking
14 facilities, and other items set forth in section 17 of this
15 chapter) that are physically located in or physically connected
16 to that allocation area.
17 (H) Reimburse the unit for rentals paid by it for a building or
18 parking facility that is physically located in or physically
19 connected to that allocation area under any lease entered into
20 under IC 36-1-10.
21 (I) Reimburse public and private entities for expenses incurred
22 in training employees of industrial facilities that are located:
23 (i) in the allocation area; and
24 (ii) on a parcel of real property that has been classified as
25 industrial property under the rules of the department of local
26 government finance.
27 However, the total amount of money spent for this purpose in
28 any year may not exceed the total amount of money in the
29 allocation fund that is attributable to property taxes paid by the
30 industrial facilities described in this clause. The
31 reimbursements under this clause must be made within three
32 (3) years after the date on which the investments that are the
33 basis for the increment financing are made.
34 (J) Pay the costs of carrying out an eligible efficiency project
35 (as defined in IC 36-9-41-1.5) within the unit that established
36 the redevelopment commission. However, property tax
37 proceeds may be used under this clause to pay the costs of
38 carrying out an eligible efficiency project only if those
39 property tax proceeds exceed the amount necessary to do the
40 following:
41 (i) Make, when due, any payments required under clauses
42 (A) through (I), including any payments of principal and
2023 IN 45—LS 6138/DI 120 37
1 interest on bonds and other obligations payable under this
2 subdivision, any payments of premiums under this
3 subdivision on the redemption before maturity of bonds, and
4 any payments on leases payable under this subdivision.
5 (ii) Make any reimbursements required under this
6 subdivision.
7 (iii) Pay any expenses required under this subdivision.
8 (iv) Establish, augment, or restore any debt service reserve
9 under this subdivision.
10 (K) Expend money and provide financial assistance as
11 authorized in section 7(a)(21) of this chapter.
12 The special fund may not be used for operating expenses of the
13 commission.
14 (4) Before June 15 of each year, the commission shall do the
15 following:
16 (A) Determine the amount, if any, by which the assessed value
17 of the taxable property in the allocation area for the most
18 recent assessment date minus the base assessed value, when
19 multiplied by the estimated tax rate of the allocation area will
20 exceed the amount of assessed value needed to provide the
21 property taxes necessary to make, when due, principal and
22 interest payments on bonds described in subdivision (3) plus
23 the amount necessary for other purposes described in
24 subdivision (3) and subsection (g).
25 (B) Provide a written notice to the county auditor, the
26 legislative body of the consolidated city, the officers who are
27 authorized to fix budgets, tax rates, and tax levies under
28 IC 6-1.1-17-5 for each of the other taxing units that is wholly
29 or partly located within the allocation area, and (in an
30 electronic format) the department of local government finance.
31 The notice must:
32 (i) state the amount, if any, of excess assessed value that the
33 commission has determined may be allocated to the
34 respective taxing units in the manner prescribed in
35 subdivision (1); or
36 (ii) state that the commission has determined that there is no
37 excess assessed value that may be allocated to the respective
38 taxing units in the manner prescribed in subdivision (1).
39 The county auditor shall allocate to the respective taxing units
40 the amount, if any, of excess assessed value determined by the
41 commission. The commission may not authorize an allocation
42 to the respective taxing units under this subdivision if to do so
2023 IN 45—LS 6138/DI 120 38
1 would endanger the interests of the holders of bonds described
2 in subdivision (3).
3 (C) If:
4 (i) the amount of excess assessed value determined by the
5 commission is expected to generate more than two hundred
6 percent (200%) of the amount of allocated tax proceeds
7 necessary to make, when due, principal and interest
8 payments on bonds described in subdivision (3); plus
9 (ii) the amount necessary for other purposes described in
10 subdivision (3) and subsection (g);
11 the commission shall submit to the legislative body of the unit
12 the commission's determination of the excess assessed value
13 that the commission proposes to allocate to the respective
14 taxing units in the manner prescribed in subdivision (1). The
15 legislative body of the unit may approve the commission's
16 determination or modify the amount of the excess assessed
17 value that will be allocated to the respective taxing units in the
18 manner prescribed in subdivision (1).
19 (c) For the purpose of allocating taxes levied by or for any taxing
20 unit or units, the assessed value of taxable property in a territory in the
21 allocation area that is annexed by any taxing unit after the effective
22 date of the allocation provision of the resolution is the lesser of:
23 (1) the assessed value of the property for the assessment date with
24 respect to which the allocation and distribution is made; or
25 (2) the base assessed value.
26 (d) Property tax proceeds allocable to the redevelopment district
27 under subsection (b)(3) may, subject to subsection (b)(4), be
28 irrevocably pledged by the redevelopment district for payment as set
29 forth in subsection (b)(3).
30 (e) Notwithstanding any other law, each assessor shall, upon
31 petition of the commission, reassess the taxable property situated upon
32 or in, or added to, the allocation area, effective on the next assessment
33 date after the petition.
34 (f) Notwithstanding any other law, the assessed value of all taxable
35 property in the allocation area, for purposes of tax limitation, property
36 tax replacement, and formulation of the budget, tax rate, and tax levy
37 for each political subdivision in which the property is located is the
38 lesser of:
39 (1) the assessed value of the property as valued without regard to
40 this section; or
41 (2) the base assessed value.
42 (g) If any part of the allocation area is located in an enterprise zone
2023 IN 45—LS 6138/DI 120 39
1 created under IC 5-28-15, the unit that designated the allocation area
2 shall create funds as specified in this subsection. A unit that has
3 obligations, bonds, or leases payable from allocated tax proceeds under
4 subsection (b)(3) shall establish an allocation fund for the purposes
5 specified in subsection (b)(3) and a special zone fund. Such a unit
6 shall, until the end of the enterprise zone phase out period, deposit each
7 year in the special zone fund the amount in the allocation fund derived
8 from property tax proceeds in excess of those described in subsection
9 (b)(1) and (b)(2) from property located in the enterprise zone that
10 exceeds the amount sufficient for the purposes specified in subsection
11 (b)(3) for the year. A unit that has no obligations, bonds, or leases
12 payable from allocated tax proceeds under subsection (b)(3) shall
13 establish a special zone fund and deposit all the property tax proceeds
14 in excess of those described in subsection (b)(1) and (b)(2) in the fund
15 derived from property tax proceeds in excess of those described in
16 subsection (b)(1) and (b)(2) from property located in the enterprise
17 zone. The unit that creates the special zone fund shall use the fund,
18 based on the recommendations of the urban enterprise association, for
19 one (1) or more of the following purposes:
20 (1) To pay for programs in job training, job enrichment, and basic
21 skill development designed to benefit residents and employers in
22 the enterprise zone. The programs must reserve at least one-half
23 (1/2) of the enrollment in any session for residents of the
24 enterprise zone.
25 (2) To make loans and grants for the purpose of stimulating
26 business activity in the enterprise zone or providing employment
27 for enterprise zone residents in the enterprise zone. These loans
28 and grants may be made to the following:
29 (A) Businesses operating in the enterprise zone.
30 (B) Businesses that will move their operations to the enterprise
31 zone if such a loan or grant is made.
32 (3) To provide funds to carry out other purposes specified in
33 subsection (b)(3). However, where reference is made in
34 subsection (b)(3) to the allocation area, the reference refers for
35 purposes of payments from the special zone fund only to that part
36 of the allocation area that is also located in the enterprise zone.
37 (h) The state board of accounts and department of local government
38 finance shall make the rules and prescribe the forms and procedures
39 that they consider expedient for the implementation of this chapter.
40 After each reassessment under a reassessment plan prepared under
41 IC 6-1.1-4-4.2, the department of local government finance shall adjust
42 the base assessed value one (1) time to neutralize any effect of the
2023 IN 45—LS 6138/DI 120 40
1 reassessment of the real property in the area on the property tax
2 proceeds allocated to the redevelopment district under this section.
3 After each annual adjustment for agricultural land under
4 IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the department of local government
5 finance shall adjust the base assessed value to neutralize any effect of
6 the annual adjustment on the property tax proceeds allocated to the
7 redevelopment district under this section. However, the adjustments
8 under this subsection may not include the effect of property tax
9 abatements under IC 6-1.1-12.1, and these adjustments may not
10 produce less property tax proceeds allocable to the redevelopment
11 district under subsection (b)(3) than would otherwise have been
12 received if the reassessment under the reassessment plan or annual
13 adjustment for agricultural land had not occurred. The department of
14 local government finance may prescribe procedures for county and
15 township officials to follow to assist the department in making the
16 adjustments.
17 (i) The allocation deadline referred to in subsection (b) is
18 determined in the following manner:
19 (1) The initial allocation deadline is December 31, 2011.
20 (2) Subject to subdivision (3), the initial allocation deadline and
21 subsequent allocation deadlines are automatically extended in
22 increments of five (5) years, so that allocation deadlines
23 subsequent to the initial allocation deadline fall on December 31,
24 2016, and December 31 of each fifth year thereafter.
25 (3) At least one (1) year before the date of an allocation deadline
26 determined under subdivision (2), the general assembly may enact
27 a law that:
28 (A) terminates the automatic extension of allocation deadlines
29 under subdivision (2); and
30 (B) specifically designates a particular date as the final
31 allocation deadline.
32 (j) If the commission adopts a declaratory resolution or an
33 amendment to a declaratory resolution that contains an allocation
34 provision and the commission makes either of the filings required
35 under section 10(e) of this chapter after the first anniversary of the
36 effective date of the allocation provision, the auditor of the county in
37 which the unit is located shall compute the base assessed value for the
38 allocation area using the assessment date immediately preceding the
39 later of:
40 (1) the date on which the documents are filed with the county
41 auditor; or
42 (2) the date on which the documents are filed with the department
2023 IN 45—LS 6138/DI 120 41
1 of local government finance.
2 (k) For an allocation area established after June 30, 2024,
3 "residential property" refers to the assessed value of property that is
4 allocated to the one percent (1%) homestead land and improvement
5 categories in the county tax and billing software system, along with the
6 residential assessed value as defined for purposes of calculating the
7 rate for the local income tax property tax relief credit designated for
8 residential property under IC 6-3.6-5-6(d)(3).
9 SECTION 18. IC 36-7-15.1-53, AS AMENDED BY P.L.174-2022,
10 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JANUARY 1, 2024]: Sec. 53. (a) As used in this section:
12 "Allocation area" means that part of a redevelopment project area
13 to which an allocation provision of a resolution adopted under section
14 40 of this chapter refers for purposes of distribution and allocation of
15 property taxes.
16 "Base assessed value" means, subject to subsection (j):
17 (1) the net assessed value of all the property as finally determined
18 for the assessment date immediately preceding the effective date
19 of the allocation provision of the declaratory resolution, as
20 adjusted under subsection (h); plus
21 (2) to the extent that it is not included in subdivision (1), the net
22 assessed value of property that is assessed as residential property
23 under the rules of the department of local government finance, as
24 finally determined for the current assessment date.
25 Except as provided in section 55 of this chapter, "property taxes"
26 means taxes imposed under IC 6-1.1 on real property.
27 (b) A resolution adopted under section 40 of this chapter on or
28 before the allocation deadline determined under subsection (i) may
29 include a provision with respect to the allocation and distribution of
30 property taxes for the purposes and in the manner provided in this
31 section. A resolution previously adopted may include an allocation
32 provision by the amendment of that resolution on or before the
33 allocation deadline determined under subsection (i) in accordance with
34 the procedures required for its original adoption. A declaratory
35 resolution or an amendment that establishes an allocation provision
36 must be approved by resolution of the legislative body of the excluded
37 city and must specify an expiration date for the allocation provision.
38 For an allocation area established before July 1, 2008, the expiration
39 date may not be more than thirty (30) years after the date on which the
40 allocation provision is established. For an allocation area established
41 after June 30, 2008, the expiration date may not be more than
42 twenty-five (25) years after the date on which the first obligation was
2023 IN 45—LS 6138/DI 120 42
1 incurred to pay principal and interest on bonds or lease rentals on
2 leases payable from tax increment revenues. However, with respect to
3 bonds or other obligations that were issued before July 1, 2008, if any
4 of the bonds or other obligations that were scheduled when issued to
5 mature before the specified expiration date and that are payable only
6 from allocated tax proceeds with respect to the allocation area remain
7 outstanding as of the expiration date, the allocation provision does not
8 expire until all of the bonds or other obligations are no longer
9 outstanding. The allocation provision may apply to all or part of the
10 redevelopment project area. The allocation provision must require that
11 any property taxes subsequently levied by or for the benefit of any
12 public body entitled to a distribution of property taxes on taxable
13 property in the allocation area be allocated and distributed as follows:
14 (1) Except as otherwise provided in this section, the proceeds of
15 the taxes attributable to the lesser of:
16 (A) the assessed value of the property for the assessment date
17 with respect to which the allocation and distribution is made;
18 or
19 (B) the base assessed value;
20 shall be allocated to and, when collected, paid into the funds of
21 the respective taxing units.
22 (2) The excess of the proceeds of the property taxes imposed for
23 the assessment date with respect to which the allocation and
24 distribution is made that are attributable to taxes imposed after
25 being approved by the voters in a referendum or local public
26 question conducted after April 30, 2010, not otherwise included
27 in subdivision (1) shall be allocated to and, when collected, paid
28 into the funds of the taxing unit for which the referendum or local
29 public question was conducted.
30 (3) Except as otherwise provided in this section, property tax
31 proceeds in excess of those described in subdivisions (1) and (2)
32 shall be allocated to the redevelopment district and, when
33 collected, paid into a special fund for that allocation area that may
34 be used by the redevelopment district only to do one (1) or more
35 of the following:
36 (A) Pay the principal of and interest on any obligations
37 payable solely from allocated tax proceeds that are incurred by
38 the redevelopment district for the purpose of financing or
39 refinancing the redevelopment of that allocation area.
40 (B) Establish, augment, or restore the debt service reserve for
41 bonds payable solely or in part from allocated tax proceeds in
42 that allocation area.
2023 IN 45—LS 6138/DI 120 43
1 (C) Pay the principal of and interest on bonds payable from
2 allocated tax proceeds in that allocation area and from the
3 special tax levied under section 50 of this chapter.
4 (D) Pay the principal of and interest on bonds issued by the
5 excluded city to pay for local public improvements that are
6 physically located in or physically connected to that allocation
7 area.
8 (E) Pay premiums on the redemption before maturity of bonds
9 payable solely or in part from allocated tax proceeds in that
10 allocation area.
11 (F) Make payments on leases payable from allocated tax
12 proceeds in that allocation area under section 46 of this
13 chapter.
14 (G) Reimburse the excluded city for expenditures for local
15 public improvements (which include buildings, park facilities,
16 and other items set forth in section 45 of this chapter) that are
17 physically located in or physically connected to that allocation
18 area.
19 (H) Reimburse the unit for rentals paid by it for a building or
20 parking facility that is physically located in or physically
21 connected to that allocation area under any lease entered into
22 under IC 36-1-10.
23 (I) Reimburse public and private entities for expenses incurred
24 in training employees of industrial facilities that are located:
25 (i) in the allocation area; and
26 (ii) on a parcel of real property that has been classified as
27 industrial property under the rules of the department of local
28 government finance.
29 However, the total amount of money spent for this purpose in
30 any year may not exceed the total amount of money in the
31 allocation fund that is attributable to property taxes paid by the
32 industrial facilities described in this clause. The
33 reimbursements under this clause must be made within three
34 (3) years after the date on which the investments that are the
35 basis for the increment financing are made.
36 The special fund may not be used for operating expenses of the
37 commission.
38 (4) Before June 15 of each year, the commission shall do the
39 following:
40 (A) Determine the amount, if any, by which the assessed value
41 of the taxable property in the allocation area for the most
42 recent assessment date minus the base assessed value, when
2023 IN 45—LS 6138/DI 120 44
1 multiplied by the estimated tax rate of the allocation area, will
2 exceed the amount of assessed value needed to provide the
3 property taxes necessary to make, when due, principal and
4 interest payments on bonds described in subdivision (3) plus
5 the amount necessary for other purposes described in
6 subdivision (3) and subsection (g).
7 (B) Provide a written notice to the county auditor, the fiscal
8 body of the county or municipality that established the
9 department of redevelopment, the officers who are authorized
10 to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
11 each of the other taxing units that is wholly or partly located
12 within the allocation area, and (in an electronic format) the
13 department of local government finance. The notice must:
14 (i) state the amount, if any, of excess assessed value that the
15 commission has determined may be allocated to the
16 respective taxing units in the manner prescribed in
17 subdivision (1); or
18 (ii) state that the commission has determined that there is no
19 excess assessed value that may be allocated to the respective
20 taxing units in the manner prescribed in subdivision (1).
21 The county auditor shall allocate to the respective taxing units
22 the amount, if any, of excess assessed value determined by the
23 commission. The commission may not authorize an allocation
24 to the respective taxing units under this subdivision if to do so
25 would endanger the interests of the holders of bonds described
26 in subdivision (3).
27 (c) For the purpose of allocating taxes levied by or for any taxing
28 unit or units, the assessed value of taxable property in a territory in the
29 allocation area that is annexed by any taxing unit after the effective
30 date of the allocation provision of the resolution is the lesser of:
31 (1) the assessed value of the property for the assessment date with
32 respect to which the allocation and distribution is made; or
33 (2) the base assessed value.
34 (d) Property tax proceeds allocable to the redevelopment district
35 under subsection (b)(3) may, subject to subsection (b)(4), be
36 irrevocably pledged by the redevelopment district for payment as set
37 forth in subsection (b)(3).
38 (e) Notwithstanding any other law, each assessor shall, upon
39 petition of the commission, reassess the taxable property situated upon
40 or in, or added to, the allocation area, effective on the next assessment
41 date after the petition.
42 (f) Notwithstanding any other law, the assessed value of all taxable
2023 IN 45—LS 6138/DI 120 45
1 property in the allocation area, for purposes of tax limitation, property
2 tax replacement, and formulation of the budget, tax rate, and tax levy
3 for each political subdivision in which the property is located, is the
4 lesser of:
5 (1) the assessed value of the property as valued without regard to
6 this section; or
7 (2) the base assessed value.
8 (g) If any part of the allocation area is located in an enterprise zone
9 created under IC 5-28-15, the unit that designated the allocation area
10 shall create funds as specified in this subsection. A unit that has
11 obligations, bonds, or leases payable from allocated tax proceeds under
12 subsection (b)(3) shall establish an allocation fund for the purposes
13 specified in subsection (b)(3) and a special zone fund. Such a unit
14 shall, until the end of the enterprise zone phase out period, deposit each
15 year in the special zone fund the amount in the allocation fund derived
16 from property tax proceeds in excess of those described in subsection
17 (b)(1) and (b)(2) from property located in the enterprise zone that
18 exceeds the amount sufficient for the purposes specified in subsection
19 (b)(3) for the year. A unit that has no obligations, bonds, or leases
20 payable from allocated tax proceeds under subsection (b)(3) shall
21 establish a special zone fund and deposit all the property tax proceeds
22 in excess of those described in subsection (b)(1) and (b)(2) in the fund
23 derived from property tax proceeds in excess of those described in
24 subsection (b)(1) and (b)(2) from property located in the enterprise
25 zone. The unit that creates the special zone fund shall use the fund,
26 based on the recommendations of the urban enterprise association, for
27 one (1) or more of the following purposes:
28 (1) To pay for programs in job training, job enrichment, and basic
29 skill development designed to benefit residents and employers in
30 the enterprise zone. The programs must reserve at least one-half
31 (1/2) of the enrollment in any session for residents of the
32 enterprise zone.
33 (2) To make loans and grants for the purpose of stimulating
34 business activity in the enterprise zone or providing employment
35 for enterprise zone residents in an enterprise zone. These loans
36 and grants may be made to the following:
37 (A) Businesses operating in the enterprise zone.
38 (B) Businesses that will move their operations to the enterprise
39 zone if such a loan or grant is made.
40 (3) To provide funds to carry out other purposes specified in
41 subsection (b)(3). However, where reference is made in
42 subsection (b)(3) to the allocation area, the reference refers, for
2023 IN 45—LS 6138/DI 120 46
1 purposes of payments from the special zone fund, only to that part
2 of the allocation area that is also located in the enterprise zone.
3 (h) The state board of accounts and department of local government
4 finance shall make the rules and prescribe the forms and procedures
5 that they consider expedient for the implementation of this chapter.
6 After each reassessment of real property in an area under a county's
7 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
8 local government finance shall adjust the base assessed value one (1)
9 time to neutralize any effect of the reassessment of the real property in
10 the area on the property tax proceeds allocated to the redevelopment
11 district under this section. After each annual adjustment for
12 agricultural land under IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the
13 department of local government finance shall adjust the base assessed
14 value to neutralize any effect of the annual adjustment on the property
15 tax proceeds allocated to the redevelopment district under this section.
16 However, the adjustments under this subsection may not include the
17 effect of property tax abatements under IC 6-1.1-12.1, and these
18 adjustments may not produce less property tax proceeds allocable to
19 the redevelopment district under subsection (b)(3) than would
20 otherwise have been received if the reassessment under the county's
21 reassessment plan or annual adjustment for agricultural land had not
22 occurred. The department of local government finance may prescribe
23 procedures for county and township officials to follow to assist the
24 department in making the adjustments.
25 (i) The allocation deadline referred to in subsection (b) is
26 determined in the following manner:
27 (1) The initial allocation deadline is December 31, 2011.
28 (2) Subject to subdivision (3), the initial allocation deadline and
29 subsequent allocation deadlines are automatically extended in
30 increments of five (5) years, so that allocation deadlines
31 subsequent to the initial allocation deadline fall on December 31,
32 2016, and December 31 of each fifth year thereafter.
33 (3) At least one (1) year before the date of an allocation deadline
34 determined under subdivision (2), the general assembly may enact
35 a law that:
36 (A) terminates the automatic extension of allocation deadlines
37 under subdivision (2); and
38 (B) specifically designates a particular date as the final
39 allocation deadline.
40 (j) If the commission adopts a declaratory resolution or an
41 amendment to a declaratory resolution that contains an allocation
42 provision and the commission makes either of the filings required
2023 IN 45—LS 6138/DI 120 47
1 under section 10(e) of this chapter after the first anniversary of the
2 effective date of the allocation provision, the auditor of the county in
3 which the unit is located shall compute the base assessed value for the
4 allocation area using the assessment date immediately preceding the
5 later of:
6 (1) the date on which the documents are filed with the county
7 auditor; or
8 (2) the date on which the documents are filed with the department
9 of local government finance.
10 (k) For an allocation area established after June 30, 2024,
11 "residential property" refers to the assessed value of property that is
12 allocated to the one percent (1%) homestead land and improvement
13 categories in the county tax and billing software system, along with the
14 residential assessed value as defined for purposes of calculating the
15 rate for the local income tax property tax relief credit designated for
16 residential property under IC 6-3.6-5-6(d)(3).
17 SECTION 19. IC 36-7-30-25, AS AMENDED BY P.L.174-2022,
18 SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JANUARY 1, 2024]: Sec. 25. (a) The following definitions apply
20 throughout this section:
21 (1) "Allocation area" means that part of a military base reuse area
22 to which an allocation provision of a declaratory resolution
23 adopted under section 10 of this chapter refers for purposes of
24 distribution and allocation of property taxes.
25 (2) "Base assessed value" means, subject to subsection (i):
26 (A) the net assessed value of all the property as finally
27 determined for the assessment date immediately preceding the
28 adoption date of the allocation provision of the declaratory
29 resolution, as adjusted under subsection (h); plus
30 (B) to the extent that it is not included in clause (A) or (C), the
31 net assessed value of any and all parcels or classes of parcels
32 identified as part of the base assessed value in the declaratory
33 resolution or an amendment thereto, as finally determined for
34 any subsequent assessment date; plus
35 (C) to the extent that it is not included in clause (A) or (B), the
36 net assessed value of property that is assessed as residential
37 property under the rules of the department of local government
38 finance, within the allocation area, as finally determined for
39 the current assessment date.
40 Clause (C) applies only to allocation areas established in a
41 military reuse area after June 30, 1997, and to the part of an
42 allocation area that was established before June 30, 1997, and that
2023 IN 45—LS 6138/DI 120 48
1 is added to an existing allocation area after June 30, 1997.
2 (3) "Property taxes" means taxes imposed under IC 6-1.1 on real
3 property.
4 (b) A declaratory resolution adopted under section 10 of this chapter
5 before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
6 resolutions adopted under IC 36-7-14-15 may include a provision with
7 respect to the allocation and distribution of property taxes for the
8 purposes and in the manner provided in this section. A declaratory
9 resolution previously adopted may include an allocation provision by
10 the amendment of that declaratory resolution in accordance with the
11 procedures set forth in section 13 of this chapter. The allocation
12 provision may apply to all or part of the military base reuse area. The
13 allocation provision must require that any property taxes subsequently
14 levied by or for the benefit of any public body entitled to a distribution
15 of property taxes on taxable property in the allocation area be allocated
16 and distributed as follows:
17 (1) Except as otherwise provided in this section, the proceeds of
18 the taxes attributable to the lesser of:
19 (A) the assessed value of the property for the assessment date
20 with respect to which the allocation and distribution is made;
21 or
22 (B) the base assessed value;
23 shall be allocated to and, when collected, paid into the funds of
24 the respective taxing units.
25 (2) The excess of the proceeds of the property taxes imposed for
26 the assessment date with respect to which the allocation and
27 distribution are made that are attributable to taxes imposed after
28 being approved by the voters in a referendum or local public
29 question conducted after April 30, 2010, not otherwise included
30 in subdivision (1) shall be allocated to and, when collected, paid
31 into the funds of the taxing unit for which the referendum or local
32 public question was conducted.
33 (3) Except as otherwise provided in this section, property tax
34 proceeds in excess of those described in subdivisions (1) and (2)
35 shall be allocated to the military base reuse district and, when
36 collected, paid into an allocation fund for that allocation area that
37 may be used by the military base reuse district and only to do one
38 (1) or more of the following:
39 (A) Pay the principal of and interest and redemption premium
40 on any obligations incurred by the military base reuse district
41 or any other entity for the purpose of financing or refinancing
42 military base reuse activities in or directly serving or
2023 IN 45—LS 6138/DI 120 49
1 benefiting that allocation area.
2 (B) Establish, augment, or restore the debt service reserve for
3 bonds payable solely or in part from allocated tax proceeds in
4 that allocation area or from other revenues of the reuse
5 authority, including lease rental revenues.
6 (C) Make payments on leases payable solely or in part from
7 allocated tax proceeds in that allocation area.
8 (D) Reimburse any other governmental body for expenditures
9 made for local public improvements (or structures) in or
10 directly serving or benefiting that allocation area.
11 (E) Pay expenses incurred by the reuse authority, any other
12 department of the unit, or a department of another
13 governmental entity for local public improvements or
14 structures that are in the allocation area or directly serving or
15 benefiting the allocation area, including expenses for the
16 operation and maintenance of these local public improvements
17 or structures if the reuse authority determines those operation
18 and maintenance expenses are necessary or desirable to carry
19 out the purposes of this chapter.
20 (F) Reimburse public and private entities for expenses
21 incurred in training employees of industrial facilities that are
22 located:
23 (i) in the allocation area; and
24 (ii) on a parcel of real property that has been classified as
25 industrial property under the rules of the department of local
26 government finance.
27 However, the total amount of money spent for this purpose in
28 any year may not exceed the total amount of money in the
29 allocation fund that is attributable to property taxes paid by the
30 industrial facilities described in this clause. The
31 reimbursements under this clause must be made not more than
32 three (3) years after the date on which the investments that are
33 the basis for the increment financing are made.
34 (G) Expend money and provide financial assistance as
35 authorized in section 9(a)(25) of this chapter.
36 Except as provided in clause (E), the allocation fund may not be
37 used for operating expenses of the reuse authority.
38 (4) Except as provided in subsection (g), before July 15 of each
39 year the reuse authority shall do the following:
40 (A) Determine the amount, if any, by which property taxes
41 payable to the allocation fund in the following year will exceed
42 the amount of property taxes necessary to make, when due,
2023 IN 45—LS 6138/DI 120 50
1 principal and interest payments on bonds described in
2 subdivision (3) plus the amount necessary for other purposes
3 described in subdivision (3).
4 (B) Provide a written notice to the county auditor, the fiscal
5 body of the unit that established the reuse authority, and the
6 officers who are authorized to fix budgets, tax rates, and tax
7 levies under IC 6-1.1-17-5 for each of the other taxing units
8 that is wholly or partly located within the allocation area. The
9 notice must:
10 (i) state the amount, if any, of excess property taxes that the
11 reuse authority has determined may be paid to the respective
12 taxing units in the manner prescribed in subdivision (1); or
13 (ii) state that the reuse authority has determined that there
14 are no excess property tax proceeds that may be allocated to
15 the respective taxing units in the manner prescribed in
16 subdivision (1).
17 The county auditor shall allocate to the respective taxing units
18 the amount, if any, of excess property tax proceeds determined
19 by the reuse authority. The reuse authority may not authorize
20 a payment to the respective taxing units under this subdivision
21 if to do so would endanger the interest of the holders of bonds
22 described in subdivision (3) or lessors under section 19 of this
23 chapter.
24 (c) For the purpose of allocating taxes levied by or for any taxing
25 unit or units, the assessed value of taxable property in a territory in the
26 allocation area that is annexed by a taxing unit after the effective date
27 of the allocation provision of the declaratory resolution is the lesser of:
28 (1) the assessed value of the property for the assessment date with
29 respect to which the allocation and distribution is made; or
30 (2) the base assessed value.
31 (d) Property tax proceeds allocable to the military base reuse district
32 under subsection (b)(3) may, subject to subsection (b)(4), be
33 irrevocably pledged by the military base reuse district for payment as
34 set forth in subsection (b)(3).
35 (e) Notwithstanding any other law, each assessor shall, upon
36 petition of the reuse authority, reassess the taxable property situated
37 upon or in or added to the allocation area, effective on the next
38 assessment date after the petition.
39 (f) Notwithstanding any other law, the assessed value of all taxable
40 property in the allocation area, for purposes of tax limitation, property
41 tax replacement, and the making of the budget, tax rate, and tax levy
42 for each political subdivision in which the property is located is the
2023 IN 45—LS 6138/DI 120 51
1 lesser of:
2 (1) the assessed value of the property as valued without regard to
3 this section; or
4 (2) the base assessed value.
5 (g) If any part of the allocation area is located in an enterprise zone
6 created under IC 5-28-15, the unit that designated the allocation area
7 shall create funds as specified in this subsection. A unit that has
8 obligations, bonds, or leases payable from allocated tax proceeds under
9 subsection (b)(3) shall establish an allocation fund for the purposes
10 specified in subsection (b)(3) and a special zone fund. Such a unit
11 shall, until the end of the enterprise zone phase out period, deposit each
12 year in the special zone fund any amount in the allocation fund derived
13 from property tax proceeds in excess of those described in subsection
14 (b)(1) and (b)(2) from property located in the enterprise zone that
15 exceeds the amount sufficient for the purposes specified in subsection
16 (b)(3) for the year. The amount sufficient for purposes specified in
17 subsection (b)(3) for the year shall be determined based on the pro rata
18 part of such current property tax proceeds from the part of the
19 enterprise zone that is within the allocation area as compared to all
20 such current property tax proceeds derived from the allocation area. A
21 unit that does not have obligations, bonds, or leases payable from
22 allocated tax proceeds under subsection (b)(3) shall establish a special
23 zone fund and deposit all the property tax proceeds in excess of those
24 described in subsection (b)(1) and (b)(2) that are derived from property
25 in the enterprise zone in the fund. The unit that creates the special zone
26 fund shall use the fund (based on the recommendations of the urban
27 enterprise association) for programs in job training, job enrichment,
28 and basic skill development that are designed to benefit residents and
29 employers in the enterprise zone or other purposes specified in
30 subsection (b)(3), except that where reference is made in subsection
31 (b)(3) to allocation area it shall refer for purposes of payments from the
32 special zone fund only to that part of the allocation area that is also
33 located in the enterprise zone. The programs shall reserve at least
34 one-half (1/2) of their enrollment in any session for residents of the
35 enterprise zone.
36 (h) After each reassessment of real property in an area under the
37 county's reassessment plan under IC 6-1.1-4-4.2, the department of
38 local government finance shall adjust the base assessed value one (1)
39 time to neutralize any effect of the reassessment of the real property in
40 the area on the property tax proceeds allocated to the military base
41 reuse district under this section. After each annual adjustment for
42 agricultural land under IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the
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1 department of local government finance shall adjust the base assessed
2 value to neutralize any effect of the annual adjustment on the property
3 tax proceeds allocated to the military base reuse district under this
4 section. However, the adjustments under this subsection may not
5 include the effect of property tax abatements under IC 6-1.1-12.1, and
6 these adjustments may not produce less property tax proceeds allocable
7 to the military base reuse district under subsection (b)(3) than would
8 otherwise have been received if the reassessment under the county's
9 reassessment plan or annual adjustment for agricultural land had not
10 occurred. The department of local government finance may prescribe
11 procedures for county and township officials to follow to assist the
12 department in making the adjustments.
13 (i) If the reuse authority adopts a declaratory resolution or an
14 amendment to a declaratory resolution that contains an allocation
15 provision and the reuse authority makes either of the filings required
16 under section 12(c) or 13(f) of this chapter after the first anniversary of
17 the effective date of the allocation provision, the auditor of the county
18 in which the military base reuse district is located shall compute the
19 base assessed value for the allocation area using the assessment date
20 immediately preceding the later of:
21 (1) the date on which the documents are filed with the county
22 auditor; or
23 (2) the date on which the documents are filed with the department
24 of local government finance.
25 (j) For an allocation area established after June 30, 2024,
26 "residential property" refers to the assessed value of property that is
27 allocated to the one percent (1%) homestead land and improvement
28 categories in the county tax and billing software system, along with the
29 residential assessed value as defined for purposes of calculating the
30 rate for the local income tax property tax relief credit designated for
31 residential property under IC 6-3.6-5-6(d)(3).
32 SECTION 20. IC 36-7-30.5-30, AS AMENDED BY P.L.174-2022,
33 SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JANUARY 1, 2024]: Sec. 30. (a) The following definitions apply
35 throughout this section:
36 (1) "Allocation area" means that part of a military base
37 development area to which an allocation provision of a
38 declaratory resolution adopted under section 16 of this chapter
39 refers for purposes of distribution and allocation of property taxes.
40 (2) "Base assessed value" means, subject to subsection (i):
41 (A) the net assessed value of all the property as finally
42 determined for the assessment date immediately preceding the
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1 adoption date of the allocation provision of the declaratory
2 resolution, as adjusted under subsection (h); plus
3 (B) to the extent that it is not included in clause (A) or (C), the
4 net assessed value of any and all parcels or classes of parcels
5 identified as part of the base assessed value in the declaratory
6 resolution or an amendment to the declaratory resolution, as
7 finally determined for any subsequent assessment date; plus
8 (C) to the extent that it is not included in clause (A) or (B), the
9 net assessed value of property that is assessed as residential
10 property under the rules of the department of local government
11 finance, within the allocation area, as finally determined for
12 the current assessment date.
13 (3) "Property taxes" means taxes imposed under IC 6-1.1 on real
14 property.
15 (b) A declaratory resolution adopted under section 16 of this chapter
16 before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
17 resolutions adopted under IC 36-7-14-15 may include a provision with
18 respect to the allocation and distribution of property taxes for the
19 purposes and in the manner provided in this section. A declaratory
20 resolution previously adopted may include an allocation provision by
21 the amendment of that declaratory resolution in accordance with the
22 procedures set forth in section 18 of this chapter. The allocation
23 provision may apply to all or part of the military base development
24 area. The allocation provision must require that any property taxes
25 subsequently levied by or for the benefit of any public body entitled to
26 a distribution of property taxes on taxable property in the allocation
27 area be allocated and distributed as follows:
28 (1) Except as otherwise provided in this section, the proceeds of
29 the taxes attributable to the lesser of:
30 (A) the assessed value of the property for the assessment date
31 with respect to which the allocation and distribution is made;
32 or
33 (B) the base assessed value;
34 shall be allocated to and, when collected, paid into the funds of
35 the respective taxing units.
36 (2) The excess of the proceeds of the property taxes imposed for
37 the assessment date with respect to which the allocation and
38 distribution is made that are attributable to taxes imposed after
39 being approved by the voters in a referendum or local public
40 question conducted after April 30, 2010, not otherwise included
41 in subdivision (1) shall be allocated to and, when collected, paid
42 into the funds of the taxing unit for which the referendum or local
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1 public question was conducted.
2 (3) Except as otherwise provided in this section, property tax
3 proceeds in excess of those described in subdivisions (1) and (2)
4 shall be allocated to the development authority and, when
5 collected, paid into an allocation fund for that allocation area that
6 may be used by the development authority and only to do one (1)
7 or more of the following:
8 (A) Pay the principal of and interest and redemption premium
9 on any obligations incurred by the development authority or
10 any other entity for the purpose of financing or refinancing
11 military base development or reuse activities in or directly
12 serving or benefiting that allocation area.
13 (B) Establish, augment, or restore the debt service reserve for
14 bonds payable solely or in part from allocated tax proceeds in
15 that allocation area or from other revenues of the development
16 authority, including lease rental revenues.
17 (C) Make payments on leases payable solely or in part from
18 allocated tax proceeds in that allocation area.
19 (D) Reimburse any other governmental body for expenditures
20 made for local public improvements (or structures) in or
21 directly serving or benefiting that allocation area.
22 (E) For property taxes first due and payable before 2009, pay
23 all or a part of a property tax replacement credit to taxpayers
24 in an allocation area as determined by the development
25 authority. This credit equals the amount determined under the
26 following STEPS for each taxpayer in a taxing district (as
27 defined in IC 6-1.1-1-20) that contains all or part of the
28 allocation area:
29 STEP ONE: Determine that part of the sum of the amounts
30 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
31 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
32 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
33 the taxing district.
34 STEP TWO: Divide:
35 (i) that part of each county's eligible property tax
36 replacement amount (as defined in IC 6-1.1-21-2 (before its
37 repeal)) for that year as determined under IC 6-1.1-21-4
38 (before its repeal) that is attributable to the taxing district;
39 by
40 (ii) the STEP ONE sum.
41 STEP THREE: Multiply:
42 (i) the STEP TWO quotient; by
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1 (ii) the total amount of the taxpayer's taxes (as defined in
2 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
3 that have been allocated during that year to an allocation
4 fund under this section.
5 If not all the taxpayers in an allocation area receive the credit
6 in full, each taxpayer in the allocation area is entitled to
7 receive the same proportion of the credit. A taxpayer may not
8 receive a credit under this section and a credit under section
9 32 of this chapter (before its repeal) in the same year.
10 (F) Pay expenses incurred by the development authority for
11 local public improvements or structures that were in the
12 allocation area or directly serving or benefiting the allocation
13 area.
14 (G) Reimburse public and private entities for expenses
15 incurred in training employees of industrial facilities that are
16 located:
17 (i) in the allocation area; and
18 (ii) on a parcel of real property that has been classified as
19 industrial property under the rules of the department of local
20 government finance.
21 However, the total amount of money spent for this purpose in
22 any year may not exceed the total amount of money in the
23 allocation fund that is attributable to property taxes paid by the
24 industrial facilities described in this clause. The
25 reimbursements under this clause must be made not more than
26 three (3) years after the date on which the investments that are
27 the basis for the increment financing are made.
28 (H) Expend money and provide financial assistance as
29 authorized in section 15(26) of this chapter.
30 The allocation fund may not be used for operating expenses of the
31 development authority.
32 (4) Except as provided in subsection (g), before July 15 of each
33 year the development authority shall do the following:
34 (A) Determine the amount, if any, by which property taxes
35 payable to the allocation fund in the following year will exceed
36 the amount of property taxes necessary to make, when due,
37 principal and interest payments on bonds described in
38 subdivision (3) plus the amount necessary for other purposes
39 described in subdivisions (2) and (3).
40 (B) Provide a written notice to the appropriate county auditors
41 and the fiscal bodies and other officers who are authorized to
42 fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
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1 each of the other taxing units that is wholly or partly located
2 within the allocation area. The notice must:
3 (i) state the amount, if any, of the excess property taxes that
4 the development authority has determined may be paid to
5 the respective taxing units in the manner prescribed in
6 subdivision (1); or
7 (ii) state that the development authority has determined that
8 there is no excess assessed value that may be allocated to the
9 respective taxing units in the manner prescribed in
10 subdivision (1).
11 The county auditors shall allocate to the respective taxing units
12 the amount, if any, of excess assessed value determined by the
13 development authority. The development authority may not
14 authorize a payment to the respective taxing units under this
15 subdivision if to do so would endanger the interest of the
16 holders of bonds described in subdivision (3) or lessors under
17 section 24 of this chapter. Property taxes received by a taxing
18 unit under this subdivision before 2009 are eligible for the
19 property tax replacement credit provided under IC 6-1.1-21
20 (before its repeal).
21 (c) For the purpose of allocating taxes levied by or for any taxing
22 unit or units, the assessed value of taxable property in a territory in the
23 allocation area that is annexed by a taxing unit after the effective date
24 of the allocation provision of the declaratory resolution is the lesser of:
25 (1) the assessed value of the property for the assessment date with
26 respect to which the allocation and distribution is made; or
27 (2) the base assessed value.
28 (d) Property tax proceeds allocable to the military base development
29 district under subsection (b)(3) may, subject to subsection (b)(4), be
30 irrevocably pledged by the military base development district for
31 payment as set forth in subsection (b)(3).
32 (e) Notwithstanding any other law, each assessor shall, upon
33 petition of the development authority, reassess the taxable property
34 situated upon or in or added to the allocation area, effective on the next
35 assessment date after the petition.
36 (f) Notwithstanding any other law, the assessed value of all taxable
37 property in the allocation area, for purposes of tax limitation, property
38 tax replacement, and the making of the budget, tax rate, and tax levy
39 for each political subdivision in which the property is located is the
40 lesser of:
41 (1) the assessed value of the property as valued without regard to
42 this section; or
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1 (2) the base assessed value.
2 (g) If any part of the allocation area is located in an enterprise zone
3 created under IC 5-28-15, the development authority shall create funds
4 as specified in this subsection. A development authority that has
5 obligations, bonds, or leases payable from allocated tax proceeds under
6 subsection (b)(3) shall establish an allocation fund for the purposes
7 specified in subsection (b)(3) and a special zone fund. The
8 development authority shall, until the end of the enterprise zone phase
9 out period, deposit each year in the special zone fund any amount in the
10 allocation fund derived from property tax proceeds in excess of those
11 described in subsection (b)(1) and (b)(2) from property located in the
12 enterprise zone that exceeds the amount sufficient for the purposes
13 specified in subsection (b)(3) for the year. The amount sufficient for
14 purposes specified in subsection (b)(3) for the year shall be determined
15 based on the pro rata part of such current property tax proceeds from
16 the part of the enterprise zone that is within the allocation area as
17 compared to all such current property tax proceeds derived from the
18 allocation area. A development authority that does not have
19 obligations, bonds, or leases payable from allocated tax proceeds under
20 subsection (b)(3) shall establish a special zone fund and deposit all the
21 property tax proceeds in excess of those described in subsection (b)(1)
22 and (b)(2) that are derived from property in the enterprise zone in the
23 fund. The development authority that creates the special zone fund
24 shall use the fund (based on the recommendations of the urban
25 enterprise association) for programs in job training, job enrichment,
26 and basic skill development that are designed to benefit residents and
27 employers in the enterprise zone or for other purposes specified in
28 subsection (b)(3), except that where reference is made in subsection
29 (b)(3) to an allocation area it shall refer for purposes of payments from
30 the special zone fund only to that part of the allocation area that is also
31 located in the enterprise zone. The programs shall reserve at least
32 one-half (1/2) of their enrollment in any session for residents of the
33 enterprise zone.
34 (h) After each reassessment of real property in an area under a
35 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
36 local government finance shall adjust the base assessed value one (1)
37 time to neutralize any effect of the reassessment of the real property in
38 the area on the property tax proceeds allocated to the military base
39 development district under this section. After each annual adjustment
40 for agricultural land under IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the
41 department of local government finance shall adjust the base assessed
42 value to neutralize any effect of the annual adjustment on the property
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1 tax proceeds allocated to the military base development district under
2 this section. However, the adjustments under this subsection may not
3 include the effect of property tax abatements under IC 6-1.1-12.1, and
4 these adjustments may not produce less property tax proceeds allocable
5 to the military base development district under subsection (b)(3) than
6 would otherwise have been received if the reassessment under the
7 county's reassessment plan or annual adjustment for agricultural land
8 had not occurred. The department of local government finance may
9 prescribe procedures for county and township officials to follow to
10 assist the department in making the adjustments.
11 (i) If the development authority adopts a declaratory resolution or
12 an amendment to a declaratory resolution that contains an allocation
13 provision and the development authority makes either of the filings
14 required under section 17(e) or 18(f) of this chapter after the first
15 anniversary of the effective date of the allocation provision, the auditor
16 of the county in which the military base development district is located
17 shall compute the base assessed value for the allocation area using the
18 assessment date immediately preceding the later of:
19 (1) the date on which the documents are filed with the county
20 auditor; or
21 (2) the date on which the documents are filed with the department
22 of local government finance.
23 (j) For an allocation area established after June 30, 2024,
24 "residential property" refers to the assessed value of property that is
25 allocated to the one percent (1%) homestead land and improvement
26 categories in the county tax and billing software system, along with the
27 residential assessed value as defined for purposes of calculating the
28 rate for the local income tax property tax relief credit designated for
29 residential property under IC 6-3.6-5-6(d)(3).
30 SECTION 21. IC 36-7-32-19, AS AMENDED BY P.L.86-2018,
31 SECTION 349, IS AMENDED TO READ AS FOLLOWS
32 [EFFECTIVE JANUARY 1, 2024]: Sec. 19. (a) The state board of
33 accounts and department of local government finance shall make the
34 rules and prescribe the forms and procedures that the state board of
35 accounts and department of local government finance consider
36 appropriate for the implementation of an allocation area under this
37 chapter.
38 (b) After each reassessment of real property in an area under a
39 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
40 local government finance shall adjust the base assessed value one (1)
41 time to neutralize any effect of the reassessment of the real property in
42 the area on the property tax proceeds allocated to the certified
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1 technology park fund under section 17 of this chapter. After each
2 annual adjustment for agricultural land under IC 6-1.1-4-4.5,
3 IC 6-1.1-4-13.2, the department of local government finance shall
4 adjust the base assessed value to neutralize any effect of the annual
5 adjustment on the property tax proceeds allocated to the certified
6 technology park fund under section 17 of this chapter.
7 SECTION 22. IC 36-7-32.5-16, AS ADDED BY P.L.135-2022,
8 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JANUARY 1, 2024]: Sec. 16. (a) The state board of accounts, the
10 department of state revenue, and the department of local government
11 finance may adopt rules under IC 4-22-2 and prescribe the forms and
12 procedures that the state board of accounts, the department of state
13 revenue, and the department of local government finance consider
14 appropriate for the implementation of an innovation development
15 district under this chapter. However, before adopting rules under this
16 section, the state board of accounts, the department of state revenue,
17 and the department of local government finance shall submit a report
18 to the budget committee that:
19 (1) describes the rules proposed by the state board of accounts,
20 the department of state revenue, and the department of local
21 government finance; and
22 (2) recommends statutory changes necessary to implement the
23 provisions of this chapter.
24 (b) After each reassessment of real property in an area under a
25 county's reassessment plan prepared under IC 6-1.1-4-4.2, the
26 department of local government finance shall adjust the base assessed
27 value one (1) time to neutralize any effect of the reassessment of the
28 real property in the area on the property tax proceeds allocated to the
29 local innovation development district fund established by section 19 of
30 this chapter.
31 (c) After each annual adjustment for agricultural land under
32 IC 6-1.1-4-4.5, IC 6-1.1-4-13.2, the department of local government
33 finance shall adjust the base assessed value to neutralize any effect of
34 the annual adjustment on the property tax proceeds allocated to the
35 local innovation development district fund established by section 19 of
36 this chapter.
37
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