Introduced Version
HOUSE BILL No. 1120
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1; IC 36-7-14-39; IC 36-8-13.
Synopsis: Property taxes. Increases the assessed value limit for the
disabled veteran property tax deduction from $200,000 to $240,000.
Extends the current cap on operating referendum tax that may be levied
by a school corporation to taxes first due and payable in 2025 at not
more than 3% over the maximum operating referendum tax that the
school corporation could have levied in the previous year using the
maximum referendum rate for that year. Adds a provision to allow a
redevelopment commission to expend revenues from its allocation fund
that are allocated for police and fire services on both capital
expenditures and operating expenses as authorized in the 2023 session
in House Bill 1454. Provides that, if a township transitions from a
single township firefighting and emergency services fund to two
separate funds as authorized under current law, the township legislative
body must approve a transfer of the remaining cash balance from the
single fund to the two new separate funds and determine the amounts
attributable to each fund.
Effective: Upon passage; January 1, 2023 (retroactive); January 1,
2024 (retroactive); July 1, 2024.
Thompson
January 8, 2024, read first time and referred to Committee on Ways and Means.
2024 IN 1120—LS 6559/DI 120 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1120
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 6-1.1-12-14, AS AMENDED BY P.L.174-2022,
2 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 14. (a) Except as
4 provided in subsection (c) and except as provided in section 40.5 of
5 this chapter, an individual may have the sum of fourteen thousand
6 dollars ($14,000) deducted from the assessed value of the real property,
7 mobile home not assessed as real property, or manufactured home not
8 assessed as real property that the individual owns (or the real property,
9 mobile home not assessed as real property, or manufactured home not
10 assessed as real property that the individual is buying under a contract
11 that provides that the individual is to pay property taxes on the real
12 property, mobile home, or manufactured home if the contract or a
13 memorandum of the contract is recorded in the county recorder's office)
14 if:
15 (1) the individual served in the military or naval forces of the
16 United States for at least ninety (90) days;
17 (2) the individual received an honorable discharge;
2024 IN 1120—LS 6559/DI 120 2
1 (3) the individual either:
2 (A) has a total disability; or
3 (B) is at least sixty-two (62) years old and has a disability of at
4 least ten percent (10%);
5 (4) the individual's disability is evidenced by:
6 (A) a pension certificate or an award of compensation issued
7 by the United States Department of Veterans Affairs; or
8 (B) a certificate of eligibility issued to the individual by the
9 Indiana department of veterans' affairs after the Indiana
10 department of veterans' affairs has determined that the
11 individual's disability qualifies the individual to receive a
12 deduction under this section; and
13 (5) the individual:
14 (A) owns the real property, mobile home, or manufactured
15 home; or
16 (B) is buying the real property, mobile home, or manufactured
17 home under contract;
18 on the date the statement required by section 15 of this chapter is
19 filed.
20 (b) Except as provided in subsections (c) and (d), the surviving
21 spouse of an individual may receive the deduction provided by this
22 section if:
23 (1) the individual satisfied the requirements of subsection (a)(1)
24 through (a)(4) at the time of death; or
25 (2) the individual:
26 (A) was killed in action;
27 (B) died while serving on active duty in the military or naval
28 forces of the United States; or
29 (C) died while performing inactive duty training in the military
30 or naval forces of the United States; and
31 the surviving spouse satisfies the requirement of subsection (a)(5) at
32 the time the deduction statement is filed. The surviving spouse is
33 entitled to the deduction regardless of whether the property for which
34 the deduction is claimed was owned by the deceased veteran or the
35 surviving spouse before the deceased veteran's death.
36 (c) Except as provided in subsection (f), no one is entitled to the
37 deduction provided by this section if the assessed value of the
38 individual's Indiana real property, Indiana mobile home not assessed as
39 real property, and Indiana manufactured home not assessed as real
40 property, as shown by the tax duplicate, exceeds the assessed value
41 limit specified in subsection (d).
42 (d) Except as provided in subsection (f), for the:
2024 IN 1120—LS 6559/DI 120 3
1 (1) January 1, 2017, January 1, 2018, and January 1, 2019,
2 assessment dates, the assessed value limit for purposes of
3 subsection (c) is one hundred seventy-five thousand dollars
4 ($175,000); and
5 (2) January 1, 2020, January 1, 2021, January 1, 2022, and
6 January 1, 2023, assessment dates, assessment date and for each
7 assessment date thereafter, the assessed value limit for purposes
8 of subsection (c) is two hundred thousand dollars ($200,000); and
9 (3) January 1, 2024, assessment date and for each assessment
10 date thereafter, the assessed value limit for purposes of
11 subsection (c) is two hundred forty thousand dollars
12 ($240,000).
13 (e) An individual who has sold real property, a mobile home not
14 assessed as real property, or a manufactured home not assessed as real
15 property to another person under a contract that provides that the
16 contract buyer is to pay the property taxes on the real property, mobile
17 home, or manufactured home may not claim the deduction provided
18 under this section against that real property, mobile home, or
19 manufactured home.
20 (f) For purposes of determining the assessed value of the real
21 property, mobile home, or manufactured home under subsection (d) for
22 an individual who has received a deduction under this section in a
23 previous year, increases in assessed value that occur after the later of:
24 (1) December 31, 2019; or
25 (2) the first year that the individual has received the deduction;
26 are not considered unless the increase in assessed value is attributable
27 to substantial renovation or new improvements. Where there is an
28 increase in assessed value for purposes of the deduction under this
29 section, the assessor shall provide a report to the county auditor
30 describing the substantial renovation or new improvements, if any, that
31 were made to the property prior to the increase in assessed value.
32 SECTION 2. IC 6-1.1-17-3.1, AS ADDED BY P.L.239-2023,
33 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 UPON PASSAGE]: Sec. 3.1. (a) This section:
35 (1) applies only to an operating referendum tax levy under
36 IC 20-46-1 approved by the voters before January 1, 2023, that is
37 imposed by a school corporation for taxes first due and payable in
38 2024 and in 2025;
39 (2) does not apply to an operating referendum tax levy under
40 IC 20-46-1 approved by the voters after December 31, 2022, and
41 before January 1, 2024, 2025, that is imposed by a school
42 corporation for taxes first due and payable in 2024 or 2025; and
2024 IN 1120—LS 6559/DI 120 4
1 (3) does not apply to any other tax year.
2 (b) Notwithstanding any increase in the assessed value of property
3 from the previous assessment date, the total amount of operating
4 referendum tax that may be levied by a school corporation may not
5 exceed the lesser of:
6 (1) for taxes first due and payable in 2024:
7 (1) (A) the maximum operating referendum tax that could be
8 have been levied by the school corporation if the maximum
9 referendum rate was taken for taxes first due and payable in
10 2023 multiplied by one and three-hundredths (1.03); or
11 (2) (B) the maximum operating referendum tax that could
12 otherwise be levied by the school corporation for taxes first
13 due and payable in 2024; or
14 (2) for taxes first due and payable in 2025:
15 (A) the maximum operating referendum tax that could
16 have been levied by the school corporation if the maximum
17 referendum rate was taken for taxes first due and payable
18 in 2024, as adjusted by this section, multiplied by one and
19 three-hundredths (1.03); or
20 (B) the maximum operating referendum tax that could
21 otherwise be levied by the school corporation for taxes first
22 due and payable in 2025.
23 The tax rate for an operating referendum tax levy shall be decreased,
24 if necessary, to comply with this limitation.
25 (c) This section expires July 1, 2025. 2026.
26 SECTION 3. IC 6-1.1-18.5-1, AS AMENDED BY P.L.236-2023,
27 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2024]: Sec. 1. As used in this chapter:
29 "Ad valorem property tax levy for an ensuing calendar year" means
30 the total property taxes imposed by a civil taxing unit for current
31 property taxes collectible in that ensuing calendar year. However, if a
32 township elects to establish both a township firefighting levy and a
33 township emergency services levy under IC 36-8-13-4(b)(2),
34 IC 36-8-13-4(c)(2), the township firefighting levy and township
35 emergency services levy shall be combined and considered as a single
36 levy for purposes of this chapter.
37 "Civil taxing unit" means any taxing unit except a school
38 corporation.
39 "Maximum permissible ad valorem property tax levy for the
40 preceding calendar year" means, for purposes of determining a
41 maximum permissible ad valorem property tax levy under section 3 of
42 this chapter for property taxes imposed for an assessment date after
2024 IN 1120—LS 6559/DI 120 5
1 January 15, 2011, the civil taxing unit's maximum permissible ad
2 valorem property tax levy for the calendar year immediately preceding
3 the ensuing calendar year, as that levy was determined under section 3
4 of this chapter (regardless of whether the taxing unit imposed the entire
5 amount of the maximum permissible ad valorem property tax levy in
6 the immediately preceding year).
7 "Taxable property" means all tangible property that is subject to the
8 tax imposed by this article and is not exempt from the tax under
9 IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
10 chapter, the term "taxable property" is further defined in section 6 of
11 this chapter.
12 SECTION 4. IC 36-7-14-39, AS AMENDED BY P.L.236-2023,
13 SECTION 179, IS AMENDED TO READ AS FOLLOWS
14 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) As
15 used in this section:
16 "Allocation area" means that part of a redevelopment project area
17 to which an allocation provision of a declaratory resolution adopted
18 under section 15 of this chapter refers for purposes of distribution and
19 allocation of property taxes.
20 "Base assessed value" means, subject to subsection (j), the
21 following:
22 (1) If an allocation provision is adopted after June 30, 1995, in a
23 declaratory resolution or an amendment to a declaratory
24 resolution establishing an economic development area:
25 (A) the net assessed value of all the property as finally
26 determined for the assessment date immediately preceding the
27 effective date of the allocation provision of the declaratory
28 resolution, as adjusted under subsection (h); plus
29 (B) to the extent that it is not included in clause (A), the net
30 assessed value of property that is assessed as residential
31 property under the rules of the department of local government
32 finance, within the allocation area, as finally determined for
33 the current assessment date.
34 (2) If an allocation provision is adopted after June 30, 1997, in a
35 declaratory resolution or an amendment to a declaratory
36 resolution establishing a redevelopment project area:
37 (A) the net assessed value of all the property as finally
38 determined for the assessment date immediately preceding the
39 effective date of the allocation provision of the declaratory
40 resolution, as adjusted under subsection (h); plus
41 (B) to the extent that it is not included in clause (A), the net
42 assessed value of property that is assessed as residential
2024 IN 1120—LS 6559/DI 120 6
1 property under the rules of the department of local government
2 finance, as finally determined for the current assessment date.
3 (3) If:
4 (A) an allocation provision adopted before June 30, 1995, in
5 a declaratory resolution or an amendment to a declaratory
6 resolution establishing a redevelopment project area expires
7 after June 30, 1997; and
8 (B) after June 30, 1997, a new allocation provision is included
9 in an amendment to the declaratory resolution;
10 the net assessed value of all the property as finally determined for
11 the assessment date immediately preceding the effective date of
12 the allocation provision adopted after June 30, 1997, as adjusted
13 under subsection (h).
14 (4) Except as provided in subdivision (5), for all other allocation
15 areas, the net assessed value of all the property as finally
16 determined for the assessment date immediately preceding the
17 effective date of the allocation provision of the declaratory
18 resolution, as adjusted under subsection (h).
19 (5) If an allocation area established in an economic development
20 area before July 1, 1995, is expanded after June 30, 1995, the
21 definition in subdivision (1) applies to the expanded part of the
22 area added after June 30, 1995.
23 (6) If an allocation area established in a redevelopment project
24 area before July 1, 1997, is expanded after June 30, 1997, the
25 definition in subdivision (2) applies to the expanded part of the
26 area added after June 30, 1997.
27 Except as provided in section 39.3 of this chapter, "property taxes"
28 means taxes imposed under IC 6-1.1 on real property. However, upon
29 approval by a resolution of the redevelopment commission adopted
30 before June 1, 1987, "property taxes" also includes taxes imposed
31 under IC 6-1.1 on depreciable personal property. If a redevelopment
32 commission adopted before June 1, 1987, a resolution to include within
33 the definition of property taxes, taxes imposed under IC 6-1.1 on
34 depreciable personal property that has a useful life in excess of eight
35 (8) years, the commission may by resolution determine the percentage
36 of taxes imposed under IC 6-1.1 on all depreciable personal property
37 that will be included within the definition of property taxes. However,
38 the percentage included must not exceed twenty-five percent (25%) of
39 the taxes imposed under IC 6-1.1 on all depreciable personal property.
40 (b) A declaratory resolution adopted under section 15 of this chapter
41 on or before the allocation deadline determined under subsection (i)
42 may include a provision with respect to the allocation and distribution
2024 IN 1120—LS 6559/DI 120 7
1 of property taxes for the purposes and in the manner provided in this
2 section. A declaratory resolution previously adopted may include an
3 allocation provision by the amendment of that declaratory resolution on
4 or before the allocation deadline determined under subsection (i) in
5 accordance with the procedures required for its original adoption. A
6 declaratory resolution or amendment that establishes an allocation
7 provision must include a specific finding of fact, supported by
8 evidence, that the adoption of the allocation provision will result in
9 new property taxes in the area that would not have been generated but
10 for the adoption of the allocation provision. For an allocation area
11 established before July 1, 1995, the expiration date of any allocation
12 provisions for the allocation area is June 30, 2025, or the last date of
13 any obligations that are outstanding on July 1, 2015, whichever is later.
14 A declaratory resolution or an amendment that establishes an allocation
15 provision after June 30, 1995, must specify an expiration date for the
16 allocation provision. For an allocation area established before July 1,
17 2008, the expiration date may not be more than thirty (30) years after
18 the date on which the allocation provision is established. For an
19 allocation area established after June 30, 2008, the expiration date may
20 not be more than twenty-five (25) years after the date on which the first
21 obligation was incurred to pay principal and interest on bonds or lease
22 rentals on leases payable from tax increment revenues. However, with
23 respect to bonds or other obligations that were issued before July 1,
24 2008, if any of the bonds or other obligations that were scheduled when
25 issued to mature before the specified expiration date and that are
26 payable only from allocated tax proceeds with respect to the allocation
27 area remain outstanding as of the expiration date, the allocation
28 provision does not expire until all of the bonds or other obligations are
29 no longer outstanding. Notwithstanding any other law, in the case of an
30 allocation area that is established after June 30, 2019, and that is
31 located in a redevelopment project area described in section
32 25.1(c)(3)(C) of this chapter, an economic development area described
33 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
34 area described in section 25.1(c)(3)(C) of this chapter, the expiration
35 date of the allocation provision may not be more than thirty-five (35)
36 years after the date on which the allocation provision is established.
37 The allocation provision may apply to all or part of the redevelopment
38 project area. The allocation provision must require that any property
39 taxes subsequently levied by or for the benefit of any public body
40 entitled to a distribution of property taxes on taxable property in the
41 allocation area be allocated and distributed as follows:
42 (1) Except as otherwise provided in this section, the proceeds of
2024 IN 1120—LS 6559/DI 120 8
1 the taxes attributable to the lesser of:
2 (A) the assessed value of the property for the assessment date
3 with respect to which the allocation and distribution is made;
4 or
5 (B) the base assessed value;
6 shall be allocated to and, when collected, paid into the funds of
7 the respective taxing units.
8 (2) This subdivision applies to a fire protection territory
9 established after December 31, 2022. If a unit becomes a
10 participating unit of a fire protection territory that is established
11 after a declaratory resolution is adopted under section 15 of this
12 chapter, the excess of the proceeds of the property taxes
13 attributable to an increase in the property tax rate for the
14 participating unit of a fire protection territory:
15 (A) except as otherwise provided by this subdivision, shall be
16 determined as follows:
17 STEP ONE: Divide the unit's tax rate for fire protection for
18 the year before the establishment of the fire protection
19 territory by the participating unit's tax rate as part of the fire
20 protection territory.
21 STEP TWO: Subtract the STEP ONE amount from one (1).
22 STEP THREE: Multiply the STEP TWO amount by the
23 allocated property tax attributable to the participating unit of
24 the fire protection territory; and
25 (B) to the extent not otherwise included in subdivisions (1)
26 and (3), the amount determined under STEP THREE of clause
27 (A) shall be allocated to and distributed in the form of an
28 allocated property tax revenue pass back to the participating
29 unit of the fire protection territory for the assessment date with
30 respect to which the allocation is made.
31 However, if the redevelopment commission determines that it is
32 unable to meet its debt service obligations with regards to the
33 allocation area without all or part of the allocated property tax
34 revenue pass back to the participating unit of a fire protection area
35 under this subdivision, then the allocated property tax revenue
36 pass back under this subdivision shall be reduced by the amount
37 necessary for the redevelopment commission to meet its debt
38 service obligations of the allocation area. The calculation under
39 this subdivision must be made by the redevelopment commission
40 in collaboration with the county auditor and the applicable fire
41 protection territory. Any calculation determined according to
42 clause (A) must be submitted to the department of local
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1 government finance in the manner prescribed by the department
2 of local government finance. The department of local government
3 finance shall verify the accuracy of each calculation.
4 (3) The excess of the proceeds of the property taxes imposed for
5 the assessment date with respect to which the allocation and
6 distribution is made that are attributable to taxes imposed after
7 being approved by the voters in a referendum or local public
8 question conducted after April 30, 2010, not otherwise included
9 in subdivisions (1) and (2) shall be allocated to and, when
10 collected, paid into the funds of the taxing unit for which the
11 referendum or local public question was conducted.
12 (4) Except as otherwise provided in this section, property tax
13 proceeds in excess of those described in subdivisions (1), (2), and
14 (3) shall be allocated to the redevelopment district and, when
15 collected, paid into an allocation fund for that allocation area that
16 may be used by the redevelopment district only to do one (1) or
17 more of the following:
18 (A) Pay the principal of and interest on any obligations
19 payable solely from allocated tax proceeds which are incurred
20 by the redevelopment district for the purpose of financing or
21 refinancing the redevelopment of that allocation area.
22 (B) Establish, augment, or restore the debt service reserve for
23 bonds payable solely or in part from allocated tax proceeds in
24 that allocation area.
25 (C) Pay the principal of and interest on bonds payable from
26 allocated tax proceeds in that allocation area and from the
27 special tax levied under section 27 of this chapter.
28 (D) Pay the principal of and interest on bonds issued by the
29 unit to pay for local public improvements that are physically
30 located in or physically connected to that allocation area.
31 (E) Pay premiums on the redemption before maturity of bonds
32 payable solely or in part from allocated tax proceeds in that
33 allocation area.
34 (F) Make payments on leases payable from allocated tax
35 proceeds in that allocation area under section 25.2 of this
36 chapter.
37 (G) Reimburse the unit for expenditures made by it for local
38 public improvements (which include buildings, parking
39 facilities, and other items described in section 25.1(a) of this
40 chapter) that are physically located in or physically connected
41 to that allocation area.
42 (H) Reimburse the unit for rentals paid by it for a building or
2024 IN 1120—LS 6559/DI 120 10
1 parking facility that is physically located in or physically
2 connected to that allocation area under any lease entered into
3 under IC 36-1-10.
4 (I) For property taxes first due and payable before January 1,
5 2009, pay all or a part of a property tax replacement credit to
6 taxpayers in an allocation area as determined by the
7 redevelopment commission. This credit equals the amount
8 determined under the following STEPS for each taxpayer in a
9 taxing district (as defined in IC 6-1.1-1-20) that contains all or
10 part of the allocation area:
11 STEP ONE: Determine that part of the sum of the amounts
12 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
13 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
14 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
15 the taxing district.
16 STEP TWO: Divide:
17 (i) that part of each county's eligible property tax
18 replacement amount (as defined in IC 6-1.1-21-2 (before its
19 repeal)) for that year as determined under IC 6-1.1-21-4
20 (before its repeal) that is attributable to the taxing district;
21 by
22 (ii) the STEP ONE sum.
23 STEP THREE: Multiply:
24 (i) the STEP TWO quotient; times
25 (ii) the total amount of the taxpayer's taxes (as defined in
26 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
27 that have been allocated during that year to an allocation
28 fund under this section.
29 If not all the taxpayers in an allocation area receive the credit
30 in full, each taxpayer in the allocation area is entitled to
31 receive the same proportion of the credit. A taxpayer may not
32 receive a credit under this section and a credit under section
33 39.5 of this chapter (before its repeal) in the same year.
34 (J) Pay expenses incurred by the redevelopment commission
35 for local public improvements that are in the allocation area or
36 serving the allocation area. Public improvements include
37 buildings, parking facilities, and other items described in
38 section 25.1(a) of this chapter.
39 (K) Reimburse public and private entities for expenses
40 incurred in training employees of industrial facilities that are
41 located:
42 (i) in the allocation area; and
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1 (ii) on a parcel of real property that has been classified as
2 industrial property under the rules of the department of local
3 government finance.
4 However, the total amount of money spent for this purpose in
5 any year may not exceed the total amount of money in the
6 allocation fund that is attributable to property taxes paid by the
7 industrial facilities described in this clause. The
8 reimbursements under this clause must be made within three
9 (3) years after the date on which the investments that are the
10 basis for the increment financing are made.
11 (L) Pay the costs of carrying out an eligible efficiency project
12 (as defined in IC 36-9-41-1.5) within the unit that established
13 the redevelopment commission. However, property tax
14 proceeds may be used under this clause to pay the costs of
15 carrying out an eligible efficiency project only if those
16 property tax proceeds exceed the amount necessary to do the
17 following:
18 (i) Make, when due, any payments required under clauses
19 (A) through (K), including any payments of principal and
20 interest on bonds and other obligations payable under this
21 subdivision, any payments of premiums under this
22 subdivision on the redemption before maturity of bonds, and
23 any payments on leases payable under this subdivision.
24 (ii) Make any reimbursements required under this
25 subdivision.
26 (iii) Pay any expenses required under this subdivision.
27 (iv) Establish, augment, or restore any debt service reserve
28 under this subdivision.
29 (M) Expend money and provide financial assistance as
30 authorized in section 12.2(a)(27) of this chapter.
31 (N) Expend revenues that are allocated for police and fire
32 services on both capital expenditures and operating
33 expenses as authorized in section 12.2(a)(28) of this
34 chapter.
35 The allocation fund may not be used for operating expenses of the
36 commission.
37 (5) Except as provided in subsection (g), before June 15 of each
38 year, the commission shall do the following:
39 (A) Determine the amount, if any, by which the assessed value
40 of the taxable property in the allocation area for the most
41 recent assessment date minus the base assessed value, when
42 multiplied by the estimated tax rate of the allocation area, will
2024 IN 1120—LS 6559/DI 120 12
1 exceed the amount of assessed value needed to produce the
2 property taxes necessary to make, when due, principal and
3 interest payments on bonds described in subdivision (4), plus
4 the amount necessary for other purposes described in
5 subdivision (4).
6 (B) Provide a written notice to the county auditor, the fiscal
7 body of the county or municipality that established the
8 department of redevelopment, and the officers who are
9 authorized to fix budgets, tax rates, and tax levies under
10 IC 6-1.1-17-5 for each of the other taxing units that is wholly
11 or partly located within the allocation area. The county auditor,
12 upon receiving the notice, shall forward this notice (in an
13 electronic format) to the department of local government
14 finance not later than June 15 of each year. The notice must:
15 (i) state the amount, if any, of excess assessed value that the
16 commission has determined may be allocated to the
17 respective taxing units in the manner prescribed in
18 subdivision (1); or
19 (ii) state that the commission has determined that there is no
20 excess assessed value that may be allocated to the respective
21 taxing units in the manner prescribed in subdivision (1).
22 The county auditor shall allocate to the respective taxing units
23 the amount, if any, of excess assessed value determined by the
24 commission. The commission may not authorize an allocation
25 of assessed value to the respective taxing units under this
26 subdivision if to do so would endanger the interests of the
27 holders of bonds described in subdivision (4) or lessors under
28 section 25.3 of this chapter.
29 (C) If:
30 (i) the amount of excess assessed value determined by the
31 commission is expected to generate more than two hundred
32 percent (200%) of the amount of allocated tax proceeds
33 necessary to make, when due, principal and interest
34 payments on bonds described in subdivision (4); plus
35 (ii) the amount necessary for other purposes described in
36 subdivision (4);
37 the commission shall submit to the legislative body of the unit
38 its determination of the excess assessed value that the
39 commission proposes to allocate to the respective taxing units
40 in the manner prescribed in subdivision (1). The legislative
41 body of the unit may approve the commission's determination
42 or modify the amount of the excess assessed value that will be
2024 IN 1120—LS 6559/DI 120 13
1 allocated to the respective taxing units in the manner
2 prescribed in subdivision (1).
3 (6) Notwithstanding subdivision (5), in the case of an allocation
4 area that is established after June 30, 2019, and that is located in
5 a redevelopment project area described in section 25.1(c)(3)(C)
6 of this chapter, an economic development area described in
7 section 25.1(c)(3)(C) of this chapter, or an urban renewal project
8 area described in section 25.1(c)(3)(C) of this chapter, for each
9 year the allocation provision is in effect, if the amount of excess
10 assessed value determined by the commission under subdivision
11 (5)(A) is expected to generate more than two hundred percent
12 (200%) of:
13 (A) the amount of allocated tax proceeds necessary to make,
14 when due, principal and interest payments on bonds described
15 in subdivision (4) for the project; plus
16 (B) the amount necessary for other purposes described in
17 subdivision (4) for the project;
18 the amount of the excess assessed value that generates more than
19 two hundred percent (200%) of the amounts described in clauses
20 (A) and (B) shall be allocated to the respective taxing units in the
21 manner prescribed by subdivision (1).
22 (c) For the purpose of allocating taxes levied by or for any taxing
23 unit or units, the assessed value of taxable property in a territory in the
24 allocation area that is annexed by any taxing unit after the effective
25 date of the allocation provision of the declaratory resolution is the
26 lesser of:
27 (1) the assessed value of the property for the assessment date with
28 respect to which the allocation and distribution is made; or
29 (2) the base assessed value.
30 (d) Property tax proceeds allocable to the redevelopment district
31 under subsection (b)(4) may, subject to subsection (b)(5), be
32 irrevocably pledged by the redevelopment district for payment as set
33 forth in subsection (b)(4).
34 (e) Notwithstanding any other law, each assessor shall, upon
35 petition of the redevelopment commission, reassess the taxable
36 property situated upon or in, or added to, the allocation area, effective
37 on the next assessment date after the petition.
38 (f) Notwithstanding any other law, the assessed value of all taxable
39 property in the allocation area, for purposes of tax limitation, property
40 tax replacement, and formulation of the budget, tax rate, and tax levy
41 for each political subdivision in which the property is located is the
42 lesser of:
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1 (1) the assessed value of the property as valued without regard to
2 this section; or
3 (2) the base assessed value.
4 (g) If any part of the allocation area is located in an enterprise zone
5 created under IC 5-28-15, the unit that designated the allocation area
6 shall create funds as specified in this subsection. A unit that has
7 obligations, bonds, or leases payable from allocated tax proceeds under
8 subsection (b)(4) shall establish an allocation fund for the purposes
9 specified in subsection (b)(4) and a special zone fund. Such a unit
10 shall, until the end of the enterprise zone phase out period, deposit each
11 year in the special zone fund any amount in the allocation fund derived
12 from property tax proceeds in excess of those described in subsection
13 (b)(1), (b)(2), and (b)(3) from property located in the enterprise zone
14 that exceeds the amount sufficient for the purposes specified in
15 subsection (b)(4) for the year. The amount sufficient for purposes
16 specified in subsection (b)(4) for the year shall be determined based on
17 the pro rata portion of such current property tax proceeds from the part
18 of the enterprise zone that is within the allocation area as compared to
19 all such current property tax proceeds derived from the allocation area.
20 A unit that has no obligations, bonds, or leases payable from allocated
21 tax proceeds under subsection (b)(4) shall establish a special zone fund
22 and deposit all the property tax proceeds in excess of those described
23 in subsection (b)(1), (b)(2), and (b)(3) in the fund derived from
24 property tax proceeds in excess of those described in subsection (b)(1),
25 (b)(2), and (b)(3) from property located in the enterprise zone. The unit
26 that creates the special zone fund shall use the fund (based on the
27 recommendations of the urban enterprise association) for programs in
28 job training, job enrichment, and basic skill development that are
29 designed to benefit residents and employers in the enterprise zone or
30 other purposes specified in subsection (b)(4), except that where
31 reference is made in subsection (b)(4) to allocation area it shall refer
32 for purposes of payments from the special zone fund only to that part
33 of the allocation area that is also located in the enterprise zone. Those
34 programs shall reserve at least one-half (1/2) of their enrollment in any
35 session for residents of the enterprise zone.
36 (h) The state board of accounts and department of local government
37 finance shall make the rules and prescribe the forms and procedures
38 that they consider expedient for the implementation of this chapter.
39 After each reassessment in an area under a reassessment plan prepared
40 under IC 6-1.1-4-4.2, the department of local government finance shall
41 adjust the base assessed value one (1) time to neutralize any effect of
42 the reassessment of the real property in the area on the property tax
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1 proceeds allocated to the redevelopment district under this section.
2 After each annual adjustment under IC 6-1.1-4-4.5, the department of
3 local government finance shall adjust the base assessed value one (1)
4 time to neutralize any effect of the annual adjustment on the property
5 tax proceeds allocated to the redevelopment district under this section.
6 However, the adjustments under this subsection:
7 (1) may not include the effect of phasing in assessed value due to
8 property tax abatements under IC 6-1.1-12.1;
9 (2) may not produce less property tax proceeds allocable to the
10 redevelopment district under subsection (b)(4) than would
11 otherwise have been received if the reassessment under the
12 reassessment plan or the annual adjustment had not occurred; and
13 (3) may decrease base assessed value only to the extent that
14 assessed values in the allocation area have been decreased due to
15 annual adjustments or the reassessment under the reassessment
16 plan.
17 Assessed value increases attributable to the application of an abatement
18 schedule under IC 6-1.1-12.1 may not be included in the base assessed
19 value of an allocation area. The department of local government
20 finance may prescribe procedures for county and township officials to
21 follow to assist the department in making the adjustments.
22 (i) The allocation deadline referred to in subsection (b) is
23 determined in the following manner:
24 (1) The initial allocation deadline is December 31, 2011.
25 (2) Subject to subdivision (3), the initial allocation deadline and
26 subsequent allocation deadlines are automatically extended in
27 increments of five (5) years, so that allocation deadlines
28 subsequent to the initial allocation deadline fall on December 31,
29 2016, and December 31 of each fifth year thereafter.
30 (3) At least one (1) year before the date of an allocation deadline
31 determined under subdivision (2), the general assembly may enact
32 a law that:
33 (A) terminates the automatic extension of allocation deadlines
34 under subdivision (2); and
35 (B) specifically designates a particular date as the final
36 allocation deadline.
37 (j) If a redevelopment commission adopts a declaratory resolution
38 or an amendment to a declaratory resolution that contains an allocation
39 provision and the redevelopment commission makes either of the
40 filings required under section 17(e) of this chapter after the first
41 anniversary of the effective date of the allocation provision, the auditor
42 of the county in which the unit is located shall compute the base
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1 assessed value for the allocation area using the assessment date
2 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 department
6 of local government finance.
7 (k) For an allocation area established after June 30, 2024,
8 "residential property" refers to the assessed value of property that is
9 allocated to the one percent (1%) homestead land and improvement
10 categories in the county tax and billing software system, along with the
11 residential assessed value as defined for purposes of calculating the
12 rate for the local income tax property tax relief credit designated for
13 residential property under IC 6-3.6-5-6(d)(3).
14 SECTION 5. IC 36-8-13-4, AS AMENDED BY P.L.236-2023,
15 SECTION 203, IS AMENDED TO READ AS FOLLOWS
16 [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) Each township shall annually
17 establish either:
18 (1) a township firefighting and emergency services fund which is
19 to be used by the township for the payment of costs attributable
20 to providing fire protection or emergency services under the
21 methods prescribed in section 3 of this chapter and for no other
22 purposes; or
23 (2) two (2) separate funds consisting of:
24 (A) a township firefighting fund that is to be used by the
25 township for the payment of costs attributable to providing fire
26 protection under the methods prescribed in section 3 of this
27 chapter and for no other purposes; and
28 (B) a township emergency services fund that is to be used by
29 the township for the payment of costs attributable to providing
30 emergency services under the methods prescribed in section 3
31 of this chapter and for no other purposes.
32 The money in the funds described in either subdivision (1) or (2) may
33 be paid out by the township executive with the consent of the township
34 legislative body.
35 (b) If a township transitions from a single township firefighting
36 and emergency services fund under subsection (a)(1) to two (2)
37 separate funds as allowed under subsection (a)(2), the township
38 legislative body shall approve a transfer of the remaining cash
39 balance in the township firefighting and emergency services fund
40 to the two (2) new separate funds. As part of the transfer under
41 this subsection, the legislative body shall determine the amounts of
42 the remaining cash balance that will be attributable to the
2024 IN 1120—LS 6559/DI 120 17
1 township firefighting fund and the township emergency services
2 fund.
3 (b) (c) Each township may levy, for each year, a tax for either:
4 (1) the township firefighting and emergency services fund
5 described in subsection (a)(1); or
6 (2) both:
7 (A) the township firefighting fund; and
8 (B) the township emergency services fund;
9 described in subsection (a)(2).
10 Other than a township providing fire protection or emergency services
11 or both to municipalities in the township under section 3(b) or 3(c) of
12 this chapter, the tax levy is on all taxable real and personal property in
13 the township outside the corporate boundaries of municipalities.
14 Subject to the levy limitations contained in IC 6-1.1-18.5, the township
15 firefighting and emergency services levy is to be in an amount
16 sufficient to pay costs attributable to fire protection and emergency
17 services that are not paid from other revenues available to the fund. If
18 a township establishes a township firefighting fund and a township
19 emergency services fund described in subdivision (2), the combined
20 levies are to be an amount sufficient to pay costs attributable to fire
21 protection and emergency services. However, fire protection services
22 may be paid only from the township firefighting fund and emergency
23 services may be paid only from the township emergency services fund,
24 and each fund may pay costs attributable to the respective fund for
25 services that are not paid from other revenues available to either
26 applicable fund. The tax rate and levy for a levy described in this
27 subsection shall be established in accordance with the procedures set
28 forth in IC 6-1.1-17.
29 (c) (d) In addition to the tax levy and service charges received under
30 IC 36-8-12-13 and IC 36-8-12-16, the executive may accept donations
31 to the township for the purpose of firefighting and other emergency
32 services and shall place them in the township firefighting and
33 emergency services fund established under subsection (a)(1), or if
34 applicable, the township firefighting fund established under subsection
35 (a)(2)(A) if the purpose of the donation is for firefighting, or in the
36 township emergency services fund established under subsection
37 (a)(2)(B) if the purpose of the donation is for emergency services,
38 keeping an accurate record of the sums received. A person may also
39 donate partial payment of any purchase of firefighting or other
40 emergency services equipment made by the township.
41 (d) (e) If a fire department serving a township dispatches fire
42 apparatus or personnel to a building or premises in the township in
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1 response to:
2 (1) an alarm caused by improper installation or improper
3 maintenance; or
4 (2) a drill or test, if the fire department is not previously notified
5 that the alarm is a drill or test;
6 the township may impose a fee or service charge upon the owner of the
7 property. However, if the owner of property that constitutes the owner's
8 residence establishes that the alarm is under a maintenance contract
9 with an alarm company and that the alarm company has been notified
10 of the improper installation or maintenance of the alarm, the alarm
11 company is liable for the payment of the fee or service charge.
12 (e) (f) The amount of a fee or service charge imposed under
13 subsection (d) (e) shall be determined by the township legislative body.
14 All money received by the township from the fee or service charge
15 must be deposited in the township's firefighting and emergency
16 services fund or the township's firefighting fund.
17 SECTION 6. IC 36-8-13-4.7, AS AMENDED BY P.L.236-2023,
18 SECTION 206, IS AMENDED TO READ AS FOLLOWS
19 [EFFECTIVE JULY 1, 2024]: Sec. 4.7. (a) For a township that elects
20 to have the township provide fire protection and emergency services
21 under section 3(c) of this chapter, the department of local government
22 finance shall adjust the township's maximum permissible levy
23 described in section 4(b)(1) or 4(b)(2) 4(c)(1) or 4(c)(2) of this
24 chapter, as applicable, in the year following the year in which the
25 change is elected, as determined under IC 6-1.1-18.5-3, to reflect the
26 change from providing fire protection or emergency services under a
27 contract between the municipality and the township to allowing the
28 township to impose a property tax levy on the taxable property located
29 within the corporate boundaries of each municipality. For the ensuing
30 calendar year, the township's maximum permissible property tax levy
31 described in section 4(b)(1) 4(c)(1) of this chapter, or the combined
32 levies described in section 4(b)(2) 4(c)(2) of this chapter, which is
33 considered a single levy for purposes of this section, shall be increased
34 by the product of:
35 (1) one and five-hundredths (1.05); multiplied by
36 (2) the amount the township contracted or billed to receive,
37 regardless of whether the amount was collected:
38 (A) in the year in which the change is elected; and
39 (B) as fire protection or emergency service payments from the
40 municipalities or residents of the municipalities covered by the
41 election under section 3(c) of this chapter.
42 The maximum permissible levy for a general fund or other fund of a
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1 municipality covered by the election under section 3(c) of this chapter
2 shall be reduced for the ensuing calendar year to reflect the change to
3 allowing the township to impose a property tax levy on the taxable
4 property located within the corporate boundaries of the municipality.
5 The total reduction in the maximum permissible levies for all electing
6 municipalities must equal the amount that the maximum permissible
7 levy for the township described in section 4(b)(1) 4(c)(1) of this
8 chapter or the combined levies described in section 4(b)(2) 4(c)(2) of
9 this chapter, as applicable, is increased under this subsection for
10 contracts or billings, regardless of whether the amount was collected,
11 less the amount actually paid from sources other than property tax
12 revenue.
13 (b) For purposes of determining a township's and each
14 municipality's maximum permissible ad valorem property tax levy
15 under IC 6-1.1-18.5-3 for years following the first year after the year in
16 which the change is elected, a township's and each municipality's
17 maximum permissible ad valorem property tax levy is the levy (or in
18 the case of a township electing to establish levies described in section
19 4(b)(2) 4(c)(2) of this chapter, the combined levies) after the
20 adjustment made under subsection (a).
21 (c) The township may use the amount of a maximum permissible
22 property tax levy (or in the case of a township electing to establish
23 levies described in section 4(b)(2) 4(c)(2) of this chapter, the combined
24 levies) computed under this section in setting budgets and property tax
25 levies for any year in which the election in section 3(c) of this chapter
26 is in effect.
27 (d) Section 4.6 of this chapter does not apply to a property tax levy
28 or a maximum property tax levy subject to this section.
29 SECTION 7. An emergency is declared for this act.
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