*HB1120.1*
January 25, 2024
HOUSE BILL No. 1120
_____
DIGEST OF HB 1120 (Updated January 24, 2024 5:50 pm - DI 125)
Citations Affected: IC 6-1.1; IC 8-22; IC 20-26; IC 20-28; IC 20-40;
IC 36-7; IC 36-8; noncode.
Synopsis: Property taxes. Increases the assessed value limit for the
disabled veteran property tax deduction from $200,000 to $240,000.
Requires a county assessor to apply throughout the county an influence
factor to recognize the reduced acreage value of residential excess land.
Provides that the influence factor required must reduce the base land
value of residential excess land by no less than 50%. Provides,
however, that the assessed value per acre of the residential excess land
may not be less than the base rate of agricultural land unless a different
classification of land with a lower assessed value per acre applies.
Allows that, for purposes of the standard homestead deduction, an
individual has until January 15 of a calendar year in which property
taxes are first due and payable to: (1) complete, date, and file the
required certified statement with the county auditor; and (2) satisfy any
recording requirements required to own a principal place of residence
or buy a principal place of residence under contract. Increases the
amount by which a civil taxing unit must exceed the statewide average
assessed value growth for purposes of an appeal for relief from
property tax levy limits. Extends the current cap on operating
referendum tax that may be levied by a school corporation. Provides a
formula for determining the cap on the operating referendum tax levy
using the school corporation's recent average daily membership counts.
Extends the threshold amounts used for determining whether a political
subdivision's project is a controlled project and whether the petition
and remonstrance process or the referendum process applies based on
the political subdivision's total debt service tax rate. Specifies that a
(Continued next page)
Effective: Upon passage; January 1, 2023 (retroactive); January 1,
2024 (retroactive); July 1, 2024; January 1, 2025.
Thompson, Clere, Cherry
January 8, 2024, read first time and referred to Committee on Ways and Means.
January 25, 2024, amended, reported — Do Pass.
HB 1120—LS 6559/DI 120 Digest Continued
political subdivision's total debt service tax rate does not include a tax
rate approved by voters for a referendum debt service tax levy.
Provides that distributions for curricular materials may not be
considered for purposes of determining whether a school corporation
met the requirement to expend a minimum amount of state tuition
support for teacher compensation. Repeals the requirement that each
school maintained by a school corporation and each charter school
establish a curricular materials account. Requires a public school to
deposit distributions for curricular materials in: (1) the education fund
of the school corporation that maintains the school; or (2) the fund in
which a charter school receives state tuition support. Prohibits a
redevelopment commission from removing a parcel of real property
from an existing economic development district or an existing tax
increment financing district, and subsequently adding the same parcel
of real property back into the economic development district or tax
increment financing district during the life of the economic
development district or tax increment financing district. 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. Makes conforming
changes.
HB 1120—LS 6559/DI 120HB 1120—LS 6559/DI 120 January 25, 2024
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 6-1.1-4-44.5, AS ADDED BY P.L.249-2015,
2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2025]: Sec. 44.5. (a) This section applies to a real
4 property assessment:
5 (1) for the 2015 assessment date and assessment dates thereafter;
6 and
7 (2) that includes land classified as residential excess land.
8 (b) A county assessor may shall apply throughout the county an
9 influence factor to recognize the reduced acreage value of residential
10 excess land. The influence factor may be applied on a per acre basis or
11 based on acreage categories. The influence factor may not be used as
12 an alternative to determining the value of farmland as provided in
13 section 13 of this chapter.
14 (c) The influence factor required under subsection (b) must
15 reduce the base land value of residential excess land by no less than
16 fifty percent (50%).
17 (d) Notwithstanding subsection (c), the assessed value per acre
HB 1120—LS 6559/DI 120 2
1 of the residential excess land may not be less than the base rate of
2 agricultural land (as defined in IC 6-1.1-20.6-0.5) unless a different
3 classification of land with a lower assessed value per acre applies.
4 SECTION 2. IC 6-1.1-12-14, AS AMENDED BY P.L.174-2022,
5 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 14. (a) Except as
7 provided in subsection (c) and except as provided in section 40.5 of
8 this chapter, an individual may have the sum of fourteen thousand
9 dollars ($14,000) deducted from the assessed value of the real property,
10 mobile home not assessed as real property, or manufactured home not
11 assessed as real property that the individual owns (or the real property,
12 mobile home not assessed as real property, or manufactured home not
13 assessed as real property that the individual is buying under a contract
14 that provides that the individual is to pay property taxes on the real
15 property, mobile home, or manufactured home if the contract or a
16 memorandum of the contract is recorded in the county recorder's office)
17 if:
18 (1) the individual served in the military or naval forces of the
19 United States for at least ninety (90) days;
20 (2) the individual received an honorable discharge;
21 (3) the individual either:
22 (A) has a total disability; or
23 (B) is at least sixty-two (62) years old and has a disability of at
24 least ten percent (10%);
25 (4) the individual's disability is evidenced by:
26 (A) a pension certificate or an award of compensation issued
27 by the United States Department of Veterans Affairs; or
28 (B) a certificate of eligibility issued to the individual by the
29 Indiana department of veterans' affairs after the Indiana
30 department of veterans' affairs has determined that the
31 individual's disability qualifies the individual to receive a
32 deduction under this section; and
33 (5) the individual:
34 (A) owns the real property, mobile home, or manufactured
35 home; or
36 (B) is buying the real property, mobile home, or manufactured
37 home under contract;
38 on the date the statement required by section 15 of this chapter is
39 filed.
40 (b) Except as provided in subsections (c) and (d), the surviving
41 spouse of an individual may receive the deduction provided by this
42 section if:
HB 1120—LS 6559/DI 120 3
1 (1) the individual satisfied the requirements of subsection (a)(1)
2 through (a)(4) at the time of death; or
3 (2) the individual:
4 (A) was killed in action;
5 (B) died while serving on active duty in the military or naval
6 forces of the United States; or
7 (C) died while performing inactive duty training in the military
8 or naval forces of the United States; and
9 the surviving spouse satisfies the requirement of subsection (a)(5) at
10 the time the deduction statement is filed. The surviving spouse is
11 entitled to the deduction regardless of whether the property for which
12 the deduction is claimed was owned by the deceased veteran or the
13 surviving spouse before the deceased veteran's death.
14 (c) Except as provided in subsection (f), no one is entitled to the
15 deduction provided by this section if the assessed value of the
16 individual's Indiana real property, Indiana mobile home not assessed as
17 real property, and Indiana manufactured home not assessed as real
18 property, as shown by the tax duplicate, exceeds the assessed value
19 limit specified in subsection (d).
20 (d) Except as provided in subsection (f), for the:
21 (1) January 1, 2017, January 1, 2018, and January 1, 2019,
22 assessment dates, the assessed value limit for purposes of
23 subsection (c) is one hundred seventy-five thousand dollars
24 ($175,000); and
25 (2) January 1, 2020, January 1, 2021, January 1, 2022, and
26 January 1, 2023, assessment dates, assessment date and for each
27 assessment date thereafter, the assessed value limit for purposes
28 of subsection (c) is two hundred thousand dollars ($200,000); and
29 (3) January 1, 2024, assessment date and for each assessment
30 date thereafter, the assessed value limit for purposes of
31 subsection (c) is two hundred forty thousand dollars
32 ($240,000).
33 (e) An individual who has sold real property, a mobile home not
34 assessed as real property, or a manufactured home not assessed as real
35 property to another person under a contract that provides that the
36 contract buyer is to pay the property taxes on the real property, mobile
37 home, or manufactured home may not claim the deduction provided
38 under this section against that real property, mobile home, or
39 manufactured home.
40 (f) For purposes of determining the assessed value of the real
41 property, mobile home, or manufactured home under subsection (d) for
42 an individual who has received a deduction under this section in a
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1 previous year, increases in assessed value that occur after the later of:
2 (1) December 31, 2019; or
3 (2) the first year that the individual has received the deduction;
4 are not considered unless the increase in assessed value is attributable
5 to substantial renovation or new improvements. Where there is an
6 increase in assessed value for purposes of the deduction under this
7 section, the assessor shall provide a report to the county auditor
8 describing the substantial renovation or new improvements, if any, that
9 were made to the property prior to the increase in assessed value.
10 SECTION 3. IC 6-1.1-12-37, AS AMENDED BY P.L.236-2023,
11 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JANUARY 1, 2025]: Sec. 37. (a) The following definitions apply
13 throughout this section:
14 (1) "Dwelling" means any of the following:
15 (A) Residential real property improvements that an individual
16 uses as the individual's residence, limited to a single house and
17 a single garage, regardless of whether the single garage is
18 attached to the single house or detached from the single house.
19 (B) A mobile home that is not assessed as real property that an
20 individual uses as the individual's residence.
21 (C) A manufactured home that is not assessed as real property
22 that an individual uses as the individual's residence.
23 (2) "Homestead" means an individual's principal place of
24 residence:
25 (A) that is located in Indiana;
26 (B) that:
27 (i) the individual owns;
28 (ii) the individual is buying under a contract recorded in the
29 county recorder's office, or evidenced by a memorandum of
30 contract recorded in the county recorder's office under
31 IC 36-2-11-20, that provides that the individual is to pay the
32 property taxes on the residence, and that obligates the owner
33 to convey title to the individual upon completion of all of the
34 individual's contract obligations;
35 (iii) the individual is entitled to occupy as a
36 tenant-stockholder (as defined in 26 U.S.C. 216) of a
37 cooperative housing corporation (as defined in 26 U.S.C.
38 216); or
39 (iv) is a residence described in section 17.9 of this chapter
40 that is owned by a trust if the individual is an individual
41 described in section 17.9 of this chapter; and
42 (C) that consists of a dwelling and includes up to one (1) acre
HB 1120—LS 6559/DI 120 5
1 of land immediately surrounding that dwelling, and any of the
2 following improvements:
3 (i) Any number of decks, patios, gazebos, or pools.
4 (ii) One (1) additional building that is not part of the
5 dwelling if the building is predominantly used for a
6 residential purpose and is not used as an investment property
7 or as a rental property.
8 (iii) One (1) additional residential yard structure other than
9 a deck, patio, gazebo, or pool.
10 The term does not include property owned by a corporation,
11 partnership, limited liability company, or other entity not
12 described in this subdivision.
13 (b) Each year a homestead is eligible for a standard deduction from
14 the assessed value of the homestead for an assessment date. Except as
15 provided in subsection (m), (n), the deduction provided by this section
16 applies to property taxes first due and payable for an assessment date
17 only if an individual has an interest in the homestead described in
18 subsection (a)(2)(B) on:
19 (1) the assessment date; or
20 (2) any date in the same year after an assessment date that a
21 statement is filed under subsection (e) or section 44 of this
22 chapter, if the property consists of real property.
23 If more than one (1) individual or entity qualifies property as a
24 homestead under subsection (a)(2)(B) for an assessment date, only one
25 (1) standard deduction from the assessed value of the homestead may
26 be applied for the assessment date. Subject to subsection (c), the
27 auditor of the county shall record and make the deduction for the
28 individual or entity qualifying for the deduction.
29 (c) Except as provided in section 40.5 of this chapter, the total
30 amount of the deduction that a person may receive under this section
31 for a particular year is the lesser of:
32 (1) sixty percent (60%) of the assessed value of the real property,
33 mobile home not assessed as real property, or manufactured home
34 not assessed as real property; or
35 (2) for assessment dates:
36 (A) before January 1, 2023, forty-five thousand dollars
37 ($45,000); or
38 (B) after December 31, 2022, forty-eight thousand dollars
39 ($48,000).
40 (d) A person who has sold real property, a mobile home not assessed
41 as real property, or a manufactured home not assessed as real property
42 to another person under a contract that provides that the contract buyer
HB 1120—LS 6559/DI 120 6
1 is to pay the property taxes on the real property, mobile home, or
2 manufactured home may not claim the deduction provided under this
3 section with respect to that real property, mobile home, or
4 manufactured home.
5 (e) Except as provided in sections 17.8 and 44 of this chapter and
6 subject to section 45 of this chapter, an individual who desires to claim
7 the deduction provided by this section must file a certified statement on
8 forms prescribed by the department of local government finance, with
9 the auditor of the county in which the homestead is located. The
10 statement must include:
11 (1) the parcel number or key number of the property and the name
12 of the city, town, or township in which the property is located;
13 (2) the name of any other location in which the applicant or the
14 applicant's spouse owns, is buying, or has a beneficial interest in
15 residential real property;
16 (3) the names of:
17 (A) the applicant and the applicant's spouse (if any):
18 (i) as the names appear in the records of the United States
19 Social Security Administration for the purposes of the
20 issuance of a Social Security card and Social Security
21 number; or
22 (ii) that they use as their legal names when they sign their
23 names on legal documents;
24 if the applicant is an individual; or
25 (B) each individual who qualifies property as a homestead
26 under subsection (a)(2)(B) and the individual's spouse (if any):
27 (i) as the names appear in the records of the United States
28 Social Security Administration for the purposes of the
29 issuance of a Social Security card and Social Security
30 number; or
31 (ii) that they use as their legal names when they sign their
32 names on legal documents;
33 if the applicant is not an individual; and
34 (4) either:
35 (A) the last five (5) digits of the applicant's Social Security
36 number and the last five (5) digits of the Social Security
37 number of the applicant's spouse (if any); or
38 (B) if the applicant or the applicant's spouse (if any) does not
39 have a Social Security number, any of the following for that
40 individual:
41 (i) The last five (5) digits of the individual's driver's license
42 number.
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1 (ii) The last five (5) digits of the individual's state
2 identification card number.
3 (iii) The last five (5) digits of a preparer tax identification
4 number that is obtained by the individual through the
5 Internal Revenue Service of the United States.
6 (iv) If the individual does not have a driver's license, a state
7 identification card, or an Internal Revenue Service preparer
8 tax identification number, the last five (5) digits of a control
9 number that is on a document issued to the individual by the
10 United States government.
11 If a form or statement provided to the county auditor under this section,
12 IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
13 part or all of the Social Security number of a party or other number
14 described in subdivision (4)(B) of a party, the telephone number and
15 the Social Security number or other number described in subdivision
16 (4)(B) included are confidential. The statement may be filed in person
17 or by mail. If the statement is mailed, the mailing must be postmarked
18 on or before the last day for filing. The statement applies for that first
19 year and any succeeding year for which the deduction is allowed. To
20 obtain the deduction for a desired calendar year in which property taxes
21 are first due and payable, the statement must be completed and dated
22 in the immediately preceding calendar year and filed with the county
23 auditor on or before January 5 of the calendar year in which the
24 property taxes are first due and payable.
25 (f) To obtain the deduction for a desired calendar year under
26 this section in which property taxes are first due and payable, the
27 individual desiring to claim the deduction must do the following as
28 applicable:
29 (1) Complete, date, and file the certified statement described
30 in subsection (e) on or before January 15 of the calendar year
31 in which the property taxes are first due and payable.
32 (2) Satisfy any recording requirements on or before January
33 15 of the calendar year in which the property taxes are first
34 due and payable for a homestead described in subsection
35 (a)(2).
36 (f) (g) Except as provided in subsection (k), (l), if a person who is
37 receiving, or seeks to receive, the deduction provided by this section in
38 the person's name:
39 (1) changes the use of the individual's property so that part or all
40 of the property no longer qualifies for the deduction under this
41 section; or
42 (2) is not eligible for a deduction under this section because the
HB 1120—LS 6559/DI 120 8
1 person is already receiving:
2 (A) a deduction under this section in the person's name as an
3 individual or a spouse; or
4 (B) a deduction under the law of another state that is
5 equivalent to the deduction provided by this section;
6 the person must file a certified statement with the auditor of the county,
7 notifying the auditor of the person's ineligibility, not more than sixty
8 (60) days after the date of the change in eligibility. A person who fails
9 to file the statement required by this subsection may, under
10 IC 6-1.1-36-17, be liable for any additional taxes that would have been
11 due on the property if the person had filed the statement as required by
12 this subsection plus a civil penalty equal to ten percent (10%) of the
13 additional taxes due. The civil penalty imposed under this subsection
14 is in addition to any interest and penalties for a delinquent payment that
15 might otherwise be due. One percent (1%) of the total civil penalty
16 collected under this subsection shall be transferred by the county to the
17 department of local government finance for use by the department in
18 establishing and maintaining the homestead property data base under
19 subsection (i) (j) and, to the extent there is money remaining, for any
20 other purposes of the department. This amount becomes part of the
21 property tax liability for purposes of this article.
22 (g) (h) The department of local government finance may adopt rules
23 or guidelines concerning the application for a deduction under this
24 section.
25 (h) (i) This subsection does not apply to property in the first year for
26 which a deduction is claimed under this section if the sole reason that
27 a deduction is claimed on other property is that the individual or
28 married couple maintained a principal residence at the other property
29 on the assessment date in the same year in which an application for a
30 deduction is filed under this section or, if the application is for a
31 homestead that is assessed as personal property, on the assessment date
32 in the immediately preceding year and the individual or married couple
33 is moving the individual's or married couple's principal residence to the
34 property that is the subject of the application. Except as provided in
35 subsection (k), (l), the county auditor may not grant an individual or a
36 married couple a deduction under this section if:
37 (1) the individual or married couple, for the same year, claims the
38 deduction on two (2) or more different applications for the
39 deduction; and
40 (2) the applications claim the deduction for different property.
41 (i) (j) The department of local government finance shall provide
42 secure access to county auditors to a homestead property data base that
HB 1120—LS 6559/DI 120 9
1 includes access to the homestead owner's name and the numbers
2 required from the homestead owner under subsection (e)(4) for the sole
3 purpose of verifying whether an owner is wrongly claiming a deduction
4 under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
5 IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit
6 data on deductions applicable to the current tax year on or before
7 March 15 of each year in a manner prescribed by the department of
8 local government finance.
9 (j) (k) A county auditor may require an individual to provide
10 evidence proving that the individual's residence is the individual's
11 principal place of residence as claimed in the certified statement filed
12 under subsection (e). The county auditor may limit the evidence that an
13 individual is required to submit to a state income tax return, a valid
14 driver's license, or a valid voter registration card showing that the
15 residence for which the deduction is claimed is the individual's
16 principal place of residence. The county auditor may not deny an
17 application filed under section 44 of this chapter because the applicant
18 does not have a valid driver's license or state identification card with
19 the address of the homestead property. The department of local
20 government finance shall work with county auditors to develop
21 procedures to determine whether a property owner that is claiming a
22 standard deduction or homestead credit is not eligible for the standard
23 deduction or homestead credit because the property owner's principal
24 place of residence is outside Indiana.
25 (k) (l) A county auditor shall grant an individual a deduction under
26 this section regardless of whether the individual and the individual's
27 spouse claim a deduction on two (2) different applications and each
28 application claims a deduction for different property if the property
29 owned by the individual's spouse is located outside Indiana and the
30 individual files an affidavit with the county auditor containing the
31 following information:
32 (1) The names of the county and state in which the individual's
33 spouse claims a deduction substantially similar to the deduction
34 allowed by this section.
35 (2) A statement made under penalty of perjury that the following
36 are true:
37 (A) That the individual and the individual's spouse maintain
38 separate principal places of residence.
39 (B) That neither the individual nor the individual's spouse has
40 an ownership interest in the other's principal place of
41 residence.
42 (C) That neither the individual nor the individual's spouse has,
HB 1120—LS 6559/DI 120 10
1 for that same year, claimed a standard or substantially similar
2 deduction for any property other than the property maintained
3 as a principal place of residence by the respective individuals.
4 A county auditor may require an individual or an individual's spouse to
5 provide evidence of the accuracy of the information contained in an
6 affidavit submitted under this subsection. The evidence required of the
7 individual or the individual's spouse may include state income tax
8 returns, excise tax payment information, property tax payment
9 information, driver license information, and voter registration
10 information.
11 (l) (m) If:
12 (1) a property owner files a statement under subsection (e) to
13 claim the deduction provided by this section for a particular
14 property; and
15 (2) the county auditor receiving the filed statement determines
16 that the property owner's property is not eligible for the deduction;
17 the county auditor shall inform the property owner of the county
18 auditor's determination in writing. If a property owner's property is not
19 eligible for the deduction because the county auditor has determined
20 that the property is not the property owner's principal place of
21 residence, the property owner may appeal the county auditor's
22 determination as provided in IC 6-1.1-15. The county auditor shall
23 inform the property owner of the owner's right to appeal when the
24 county auditor informs the property owner of the county auditor's
25 determination under this subsection.
26 (m) (n) An individual is entitled to the deduction under this section
27 for a homestead for a particular assessment date if:
28 (1) either:
29 (A) the individual's interest in the homestead as described in
30 subsection (a)(2)(B) is conveyed to the individual after the
31 assessment date, but within the calendar year in which the
32 assessment date occurs; or
33 (B) the individual contracts to purchase the homestead after
34 the assessment date, but within the calendar year in which the
35 assessment date occurs;
36 (2) on the assessment date:
37 (A) the property on which the homestead is currently located
38 was vacant land; or
39 (B) the construction of the dwelling that constitutes the
40 homestead was not completed; and
41 (3) either:
42 (A) the individual files the certified statement required by
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1 subsection (e); or
2 (B) a sales disclosure form that meets the requirements of
3 section 44 of this chapter is submitted to the county assessor
4 on or before December 31 of the calendar year for the
5 individual's purchase of the homestead.
6 An individual who satisfies the requirements of subdivisions (1)
7 through (3) is entitled to the deduction under this section for the
8 homestead for the assessment date, even if on the assessment date the
9 property on which the homestead is currently located was vacant land
10 or the construction of the dwelling that constitutes the homestead was
11 not completed. The county auditor shall apply the deduction for the
12 assessment date and for the assessment date in any later year in which
13 the homestead remains eligible for the deduction. A homestead that
14 qualifies for the deduction under this section as provided in this
15 subsection is considered a homestead for purposes of section 37.5 of
16 this chapter and IC 6-1.1-20.6.
17 (n) (o) This subsection applies to an application for the deduction
18 provided by this section that is filed for an assessment date occurring
19 after December 31, 2013. Notwithstanding any other provision of this
20 section, an individual buying a mobile home that is not assessed as real
21 property or a manufactured home that is not assessed as real property
22 under a contract providing that the individual is to pay the property
23 taxes on the mobile home or manufactured home is not entitled to the
24 deduction provided by this section unless the parties to the contract
25 comply with IC 9-17-6-17.
26 (o) (p) This subsection:
27 (1) applies to an application for the deduction provided by this
28 section that is filed for an assessment date occurring after
29 December 31, 2013; and
30 (2) does not apply to an individual described in subsection (n).
31 (o).
32 The owner of a mobile home that is not assessed as real property or a
33 manufactured home that is not assessed as real property must attach a
34 copy of the owner's title to the mobile home or manufactured home to
35 the application for the deduction provided by this section.
36 (p) (q) For assessment dates after 2013, the term "homestead"
37 includes property that is owned by an individual who:
38 (1) is serving on active duty in any branch of the armed forces of
39 the United States;
40 (2) was ordered to transfer to a location outside Indiana; and
41 (3) was otherwise eligible, without regard to this subsection, for
42 the deduction under this section for the property for the
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1 assessment date immediately preceding the transfer date specified
2 in the order described in subdivision (2).
3 For property to qualify under this subsection for the deduction provided
4 by this section, the individual described in subdivisions (1) through (3)
5 must submit to the county auditor a copy of the individual's transfer
6 orders or other information sufficient to show that the individual was
7 ordered to transfer to a location outside Indiana. The property continues
8 to qualify for the deduction provided by this section until the individual
9 ceases to be on active duty, the property is sold, or the individual's
10 ownership interest is otherwise terminated, whichever occurs first.
11 Notwithstanding subsection (a)(2), the property remains a homestead
12 regardless of whether the property continues to be the individual's
13 principal place of residence after the individual transfers to a location
14 outside Indiana. The property continues to qualify as a homestead
15 under this subsection if the property is leased while the individual is
16 away from Indiana and is serving on active duty, if the individual has
17 lived at the property at any time during the past ten (10) years.
18 Otherwise, the property ceases to qualify as a homestead under this
19 subsection if the property is leased while the individual is away from
20 Indiana. Property that qualifies as a homestead under this subsection
21 shall also be construed as a homestead for purposes of section 37.5 of
22 this chapter.
23 SECTION 4. IC 6-1.1-12-44, AS AMENDED BY P.L.236-2023,
24 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JANUARY 1, 2025]: Sec. 44. (a) A sales disclosure form under
26 IC 6-1.1-5.5:
27 (1) that is submitted:
28 (A) as a paper form; or
29 (B) electronically;
30 on or before December 31 January 15 of a calendar year in
31 which property taxes are first due and payable to the county
32 assessor by or on behalf of the purchaser of a homestead (as
33 defined in section 37 of this chapter) assessed as real property;
34 (2) that is accurate and complete;
35 (3) that is approved by the county assessor as eligible for filing
36 with the county auditor; and
37 (4) that is filed:
38 (A) as a paper form; or
39 (B) electronically;
40 with the county auditor by or on behalf of the purchaser;
41 constitutes an application for the deductions provided by sections 26,
42 29, 33, 34, and 37 of this chapter with respect to property taxes first
HB 1120—LS 6559/DI 120 13
1 due and payable in the calendar year that immediately succeeds the
2 calendar year referred to in subdivision (1). The county auditor may not
3 deny an application for the deductions provided by section 37 of this
4 chapter because the applicant does not have a valid driver's license or
5 state identification card with the address of the homestead property.
6 (b) Except as provided in subsection (c), if:
7 (1) the county auditor receives in a calendar year a sales
8 disclosure form that meets the requirements of subsection (a); and
9 (2) the homestead for which the sales disclosure form is submitted
10 is otherwise eligible for a deduction referred to in subsection (a);
11 the county auditor shall apply the deduction to the homestead for
12 property taxes first due and payable in the calendar year for which the
13 homestead qualifies under subsection (a) and in any later year in which
14 the homestead remains eligible for the deduction.
15 (c) Subsection (b) does not apply if the county auditor, after
16 receiving a sales disclosure form from or on behalf of a purchaser
17 under subsection (a)(4), determines that the homestead is ineligible for
18 the deduction.
19 SECTION 5. IC 6-1.1-17-3.1, AS ADDED BY P.L.239-2023,
20 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 UPON PASSAGE]: Sec. 3.1. (a) This section:
22 (1) applies only to an operating referendum tax levy under
23 IC 20-46-1 approved by the voters before January 1, 2023, that is
24 imposed by a school corporation for taxes first due and payable in
25 2024 and subsequent years; and
26 (2) does not apply to an operating referendum tax levy under
27 IC 20-46-1 approved by the voters after December 31, 2022, and
28 before January 1, 2024, that is imposed by a school corporation
29 for taxes first due and payable in 2024 or subsequent years. and
30 (3) does not apply to any other tax year.
31 (b) As used in this section, "ADM" has the meaning set forth in
32 IC 20-43-1-6.
33 (b) (c) Notwithstanding any increase in the assessed value of
34 property from the previous assessment date, for taxes first due and
35 payable in 2024, the total amount of operating referendum tax that
36 may be levied by a school corporation may not exceed the lesser of:
37 (1) the maximum operating referendum tax that could be have
38 been levied by the school corporation if the maximum
39 referendum rate was imposed for taxes first due and payable in
40 2023 multiplied by one and three-hundredths (1.03); or
41 (2) the maximum operating referendum tax that could otherwise
42 be levied by the school corporation for taxes first due and payable
HB 1120—LS 6559/DI 120 14
1 in 2024.
2 The tax rate for an operating referendum tax levy shall be decreased,
3 if necessary, to comply with this limitation.
4 (c) This section expires July 1, 2025.
5 (d) Notwithstanding any increase in the assessed value of
6 property from the previous assessment date, for taxes first due and
7 payable in 2025 and subsequent years, the total amount of
8 operating referendum tax that may be levied by a school
9 corporation may not exceed the lesser of the following:
10 (1) The maximum operating referendum tax that could have
11 been levied by the school corporation if the maximum
12 referendum rate was imposed for taxes first due and payable
13 in the immediately preceding calendar year, as adjusted by
14 this section, multiplied by the result determined under STEP
15 SIX of the following formula:
16 STEP ONE: Subtract:
17 (i) the school corporation's spring count of ADM made
18 in the calendar year preceding by five (5) years the
19 calendar year in which the property taxes are first due
20 and payable; from
21 (ii) the school corporation's spring count of ADM made
22 in the immediately preceding calendar year.
23 STEP TWO: Divide the STEP ONE result by four (4).
24 STEP THREE: Divide the STEP TWO result by the school
25 corporation's spring count of ADM made in the calendar
26 year preceding by five (5) years the calendar year in which
27 the property taxes are first due and payable.
28 STEP FOUR: Add the STEP THREE result and one and
29 three-hundredths (1.03).
30 STEP FIVE: Determine the greater of the STEP FOUR
31 result or one (1).
32 STEP SIX: Determine the lesser of the STEP FIVE result
33 or one and eight-hundredths (1.08).
34 (2) The maximum operating referendum tax that could
35 otherwise be levied by the school corporation for taxes first
36 due and payable in the current calendar year.
37 The tax rate for an operating referendum tax levy shall be
38 decreased, if necessary, to comply with this limitation.
39 (e) The department of education shall provide to the department
40 of local government finance each school corporation's applicable
41 ADM counts as needed to make the determinations under this
42 section.
HB 1120—LS 6559/DI 120 15
1 SECTION 6. IC 6-1.1-18.5-1, AS AMENDED BY P.L.236-2023,
2 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 1. As used in this chapter:
4 "Ad valorem property tax levy for an ensuing calendar year" means
5 the total property taxes imposed by a civil taxing unit for current
6 property taxes collectible in that ensuing calendar year. However, if a
7 township elects to establish both a township firefighting levy and a
8 township emergency services levy under IC 36-8-13-4(b)(2),
9 IC 36-8-13-4(c)(2), the township firefighting levy and township
10 emergency services levy shall be combined and considered as a single
11 levy for purposes of this chapter.
12 "Civil taxing unit" means any taxing unit except a school
13 corporation.
14 "Maximum permissible ad valorem property tax levy for the
15 preceding calendar year" means, for purposes of determining a
16 maximum permissible ad valorem property tax levy under section 3 of
17 this chapter for property taxes imposed for an assessment date after
18 January 15, 2011, the civil taxing unit's maximum permissible ad
19 valorem property tax levy for the calendar year immediately preceding
20 the ensuing calendar year, as that levy was determined under section 3
21 of this chapter (regardless of whether the taxing unit imposed the entire
22 amount of the maximum permissible ad valorem property tax levy in
23 the immediately preceding year).
24 "Taxable property" means all tangible property that is subject to the
25 tax imposed by this article and is not exempt from the tax under
26 IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
27 chapter, the term "taxable property" is further defined in section 6 of
28 this chapter.
29 SECTION 7. IC 6-1.1-18.5-13, AS AMENDED BY P.L.174-2022,
30 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2024]: Sec. 13. (a) With respect to an appeal filed under
32 section 12 of this chapter, the department may find that a civil taxing
33 unit should receive any one (1) or more of the following types of relief:
34 (1) Permission to the civil taxing unit to increase its levy in excess
35 of the limitations established under section 3 or 25 of this chapter,
36 as applicable, if in the judgment of the department the increase is
37 reasonably necessary due to increased costs of the civil taxing
38 unit resulting from annexation, consolidation, or other extensions
39 of governmental services by the civil taxing unit to additional
40 geographic areas. With respect to annexation, consolidation, or
41 other extensions of governmental services in a calendar year, if
42 those increased costs are incurred by the civil taxing unit in that
HB 1120—LS 6559/DI 120 16
1 calendar year and more than one (1) immediately succeeding
2 calendar year, the unit may appeal under section 12 of this chapter
3 for permission to increase its levy under this subdivision based on
4 those increased costs in any of the following:
5 (A) The first calendar year in which those costs are incurred.
6 (B) One (1) or more of the immediately succeeding four (4)
7 calendar years.
8 (2) Permission to the civil taxing unit to increase its levy in excess
9 of the limitations established under section 3 or 25 of this chapter,
10 as applicable, if the department finds that the quotient determined
11 under STEP SIX of the following formula is equal to or greater
12 than one and two-hundredths (1.02): one and four-hundredths
13 (1.04):
14 STEP ONE: Determine the three (3) calendar years that most
15 immediately precede the ensuing calendar year.
16 STEP TWO: Compute separately, for each of the calendar
17 years determined in STEP ONE, the quotient (rounded to the
18 nearest ten-thousandth (0.0001)) of the sum of the civil taxing
19 unit's total assessed value of all taxable property divided by the
20 sum determined under this STEP for the calendar year
21 immediately preceding the particular calendar year.
22 STEP THREE: Divide the sum of the three (3) quotients
23 computed in STEP TWO by three (3).
24 STEP FOUR: Compute separately, for each of the calendar
25 years determined in STEP ONE, the quotient (rounded to the
26 nearest ten-thousandth (0.0001)) of the sum of the total
27 assessed value of all taxable property in all counties divided by
28 the sum determined under this STEP for the calendar year
29 immediately preceding the particular calendar year.
30 STEP FIVE: Divide the sum of the three (3) quotients
31 computed in STEP FOUR by three (3).
32 STEP SIX: Divide the STEP THREE amount by the STEP
33 FIVE amount.
34 The civil taxing unit may increase its levy by a percentage not
35 greater than the percentage by which the STEP THREE amount
36 exceeds the percentage by which the civil taxing unit may
37 increase its levy under section 3 or 25 of this chapter, as
38 applicable, based on the maximum levy growth quotient
39 determined under section 2 of this chapter.
40 (3) A levy increase may be granted under this subdivision only for
41 property taxes first due and payable after December 31, 2008.
42 Permission to a civil taxing unit to increase its levy in excess of
HB 1120—LS 6559/DI 120 17
1 the limitations established under section 3 or 25 of this chapter,
2 as applicable, if the civil taxing unit cannot carry out its
3 governmental functions for an ensuing calendar year under the
4 levy limitations imposed by section 3 or 25 of this chapter, as
5 applicable, due to a natural disaster, an accident, or another
6 unanticipated emergency.
7 (b) The department of local government finance shall increase the
8 maximum permissible ad valorem property tax levy under section 3 of
9 this chapter for the city of Goshen for 2012 and thereafter by an
10 amount equal to the greater of zero (0) or the result of:
11 (1) the city's total pension costs in 2009 for the 1925 police
12 pension fund (IC 36-8-6) and the 1937 firefighters' pension fund
13 (IC 36-8-7); minus
14 (2) the sum of:
15 (A) the total amount of state funds received in 2009 by the city
16 and used to pay benefits to members of the 1925 police
17 pension fund (IC 36-8-6) or the 1937 firefighters' pension fund
18 (IC 36-8-7); plus
19 (B) any previous permanent increases to the city's levy that
20 were authorized to account for the transfer to the state of the
21 responsibility to pay benefits to members of the 1925 police
22 pension fund (IC 36-8-6) and the 1937 firefighters' pension
23 fund (IC 36-8-7).
24 SECTION 8. IC 6-1.1-20-1.1, AS AMENDED BY P.L.236-2023,
25 SECTION 35, AND AS AMENDED BY P.L.239-2023, SECTION 6,
26 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
27 OF THE 2024 GENERAL ASSEMBLY, IS CORRECTED AND
28 AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
29 2024 (RETROACTIVE)]: Sec. 1.1. (a) As used in this chapter,
30 "controlled project" means any project financed by bonds or a lease,
31 except for the following:
32 (1) A project for which the political subdivision reasonably
33 expects to pay:
34 (A) debt service; or
35 (B) lease rentals;
36 from funds other than property taxes that are exempt from the
37 levy limitations of IC 6-1.1-18.5 or (before January 1, 2009)
38 IC 20-45-3. A project is not a controlled project even though the
39 political subdivision has pledged to levy property taxes to pay the
40 debt service or lease rentals if those other funds are insufficient.
41 (2) Subject to subsection (b), a project that will not cost the
42 political subdivision more than the lesser of the following:
HB 1120—LS 6559/DI 120 18
1 (A) An amount equal to the following:
2 (i) In the case of an ordinance or resolution adopted before
3 January 1, 2018, making a preliminary determination to
4 issue bonds or enter into a lease for the project, two million
5 dollars ($2,000,000).
6 (ii) In the case of an ordinance or resolution adopted after
7 December 31, 2017, and before January 1, 2019, making a
8 preliminary determination to issue bonds or enter into a
9 lease for the project, five million dollars ($5,000,000).
10 (iii) In the case of an ordinance or resolution adopted in a
11 calendar year after December 31, 2018, making a
12 preliminary determination to issue bonds or enter into a
13 lease for the project, an amount (as determined by the
14 department of local government finance) equal to the result
15 of the maximum levy growth quotient determined under
16 IC 6-1.1-18.5-2 for the year multiplied by the amount
17 determined under this clause for the preceding calendar
18 year.
19 The department of local government finance shall publish the
20 threshold determined under item (iii) in the Indiana Register
21 under IC 4-22-7-7 not more than sixty (60) days after the date
22 the budget agency releases the maximum levy growth quotient
23 for the ensuing year under IC 6-1.1-18.5-2.
24 (B) An amount equal to the following:
25 (i) One percent (1%) of the total gross assessed value of
26 property within the political subdivision on the last
27 assessment date, if that total gross assessed value is more
28 than one hundred million dollars ($100,000,000).
29 (ii) One million dollars ($1,000,000), if the total gross
30 assessed value of property within the political subdivision
31 on the last assessment date is not more than one hundred
32 million dollars ($100,000,000).
33 (3) A project that is being refinanced for the purpose of providing
34 gross or net present value savings to taxpayers.
35 (4) A project for which bonds were issued or leases were entered
36 into before January 1, 1996, or where the state board of tax
37 commissioners has approved the issuance of bonds or the
38 execution of leases before January 1, 1996.
39 (5) A project that:
40 (A) is required by a court order holding that a federal law
41 mandates the project; or
42 (B) is in response to a court order holding that:
HB 1120—LS 6559/DI 120 19
1 (i) a federal law has been violated; and
2 (ii) the project is to address the deficiency or violation.
3 (6) A project that is in response to:
4 (A) a natural disaster;
5 (B) an accident; or
6 (C) an emergency;
7 in the political subdivision that makes a building or facility
8 unavailable for its intended use.
9 (7) A project that was not a controlled project under this section
10 as in effect on June 30, 2008, and for which:
11 (A) the bonds or lease for the project were issued or entered
12 into before July 1, 2008; or
13 (B) the issuance of the bonds or the execution of the lease for
14 the project was approved by the department of local
15 government finance before July 1, 2008.
16 (8) A project of the Little Calumet River basin development
17 commission for which bonds are payable from special
18 assessments collected under IC 14-13-2-18.6.
19 (9) A project for engineering, land and right-of-way acquisition,
20 construction, resurfacing, maintenance, restoration, and
21 rehabilitation exclusively for or of:
22 (A) local road and street systems, including bridges that are
23 designated as being in a local road and street system;
24 (B) arterial road and street systems, including bridges that are
25 designated as being in an arterial road and street system; or
26 (C) any combination of local and arterial road and street
27 systems, including designated bridges.
28 (b) This subsection does not apply to a project for which a public
29 hearing to issue bonds or enter into a lease has been conducted under
30 IC 20-26-7-37 before July 1, 2023. If:
31 (1) a political subdivision's total debt service tax rate is more
32 than forty cents ($0.40) per one hundred dollars ($100) of
33 assessed value; and
34 (2) subsection (a)(1) and subsection (a)(3) through (a)(9) are not
35 applicable;
36 the term includes any project to be financed by bonds or a lease,
37 including a project that does not otherwise meet the threshold amount
38 provided in subsection (a)(2). This subsection expires December 31,
39 2024. For purposes of this subsection, a political subdivision's total
40 debt service tax rate does not include a tax rate imposed in a
41 referendum debt service tax levy approved by voters.
42 SECTION 9. IC 6-1.1-20-3.1, AS AMENDED BY P.L.239-2023,
HB 1120—LS 6559/DI 120 20
1 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.1. (a) Subject to section
3 3.5(a)(1)(C) of this chapter, this section applies only to the following:
4 (1) A controlled project (as defined in section 1.1 of this chapter
5 as in effect June 30, 2008) for which the proper officers of a
6 political subdivision make a preliminary determination in the
7 manner described in subsection (b) before July 1, 2008.
8 (2) An elementary school building, middle school building, high
9 school building, or other school building for academic instruction
10 that:
11 (A) is a controlled project;
12 (B) will be used for any combination of kindergarten through
13 grade 12; and
14 (C) will not cost more than the lesser of the following:
15 (i) The threshold amount determined under this item. In the
16 case of an ordinance or resolution adopted before January 1,
17 2018, making a preliminary determination to issue bonds or
18 enter into a lease for the project, the threshold amount is ten
19 million dollars ($10,000,000). In the case of an ordinance or
20 resolution adopted after December 31, 2017, and before
21 January 1, 2019, making a preliminary determination to
22 issue bonds or enter into a lease for the project, the threshold
23 amount is fifteen million dollars ($15,000,000). In the case
24 of an ordinance or resolution adopted in a calendar year after
25 December 31, 2018, making a preliminary determination to
26 issue bonds or enter into a lease for the project, the threshold
27 amount is an amount (as determined by the department of
28 local government finance) equal to the result of the
29 maximum levy growth quotient determined under
30 IC 6-1.1-18.5-2 for the year multiplied by the threshold
31 amount determined under this item for the preceding
32 calendar year. In the case of a threshold amount determined
33 under this item that applies for a calendar year after
34 December 31, 2018, the department of local government
35 finance shall publish the threshold in the Indiana Register
36 under IC 4-22-7-7 not more than sixty (60) days after the
37 date the budget agency releases the maximum levy growth
38 quotient for the ensuing year under IC 6-1.1-18.5-2.
39 (ii) An amount equal to one percent (1%) of the total gross
40 assessed value of property within the political subdivision
41 on the last assessment date, if that total gross assessed value
42 is more than one billion dollars ($1,000,000,000), or ten
HB 1120—LS 6559/DI 120 21
1 million dollars ($10,000,000), if the total gross assessed
2 value of property within the political subdivision on the last
3 assessment date is not more than one billion dollars
4 ($1,000,000,000).
5 (3) Any other controlled project that:
6 (A) is not a controlled project described in subdivision (1) or
7 (2); and
8 (B) will not cost the political subdivision more than the lesser
9 of the following:
10 (i) The threshold amount determined under this item. In the
11 case of an ordinance or resolution adopted before January 1,
12 2018, making a preliminary determination to issue bonds or
13 enter into a lease for the project, the threshold amount is
14 twelve million dollars ($12,000,000). In the case of an
15 ordinance or resolution adopted after December 31, 2017,
16 and before January 1, 2019, making a preliminary
17 determination to issue bonds or enter into a lease for the
18 project, the threshold amount is fifteen million dollars
19 ($15,000,000). In the case of an ordinance or resolution
20 adopted in a calendar year after December 31, 2018, making
21 a preliminary determination to issue bonds or enter into a
22 lease for the project, the threshold amount is an amount (as
23 determined by the department of local government finance)
24 equal to the result of the maximum levy growth quotient
25 determined under IC 6-1.1-18.5-2 for the year multiplied by
26 the threshold amount determined under this item for the
27 preceding calendar year. In the case of a threshold amount
28 determined under this item that applies for a calendar year
29 after December 31, 2018, the department of local
30 government finance shall publish the threshold in the
31 Indiana Register under IC 4-22-7-7 not more than sixty (60)
32 days after the date the budget agency releases the maximum
33 levy growth quotient for the ensuing year under
34 IC 6-1.1-18.5-2.
35 (ii) An amount equal to one percent (1%) of the total gross
36 assessed value of property within the political subdivision
37 on the last assessment date, if that total gross assessed value
38 is more than one hundred million dollars ($100,000,000), or
39 one million dollars ($1,000,000), if the total gross assessed
40 value of property within the political subdivision on the last
41 assessment date is not more than one hundred million
42 dollars ($100,000,000).
HB 1120—LS 6559/DI 120 22
1 (4) This subdivision does not apply to a project for which a public
2 hearing to issue bonds or enter into a lease has been conducted
3 under IC 20-26-7-37 before July 1, 2023. Any other controlled
4 project if both of the following apply:
5 (A) The political subdivision's total debt service tax rate is
6 more than forty cents ($0.40) per one hundred dollars ($100)
7 of assessed value, but less than eighty cents ($0.80) per one
8 hundred dollars ($100) of assessed value.
9 (B) The controlled project is not otherwise described in section
10 3.5(a)(1) of this chapter.
11 This subdivision expires December 31, 2024. For purposes of
12 this subdivision, a political subdivision's total debt service tax
13 rate does not include a tax rate imposed in a referendum debt
14 service tax levy approved by voters.
15 (b) A political subdivision may not impose property taxes to pay
16 debt service on bonds or lease rentals on a lease for a controlled project
17 without completing the following procedures:
18 (1) The proper officers of a political subdivision shall publish
19 notice in accordance with IC 5-3-1 and send notice by first class
20 mail to the circuit court clerk and to any organization that delivers
21 to the officers, before January 1 of that year, an annual written
22 request for such notices of any meeting to consider adoption of a
23 resolution or an ordinance making a preliminary determination to
24 issue bonds or enter into a lease and shall conduct at least two (2)
25 public hearings on a preliminary determination before adoption
26 of the resolution or ordinance. The political subdivision must at
27 each of the public hearings on the preliminary determination
28 allow the public to testify regarding the preliminary determination
29 and must make the following information available to the public
30 at each of the public hearings on the preliminary determination,
31 in addition to any other information required by law:
32 (A) The result of the political subdivision's current and
33 projected annual debt service payments divided by the net
34 assessed value of taxable property within the political
35 subdivision.
36 (B) The result of:
37 (i) the sum of the political subdivision's outstanding long
38 term debt plus the outstanding long term debt of other taxing
39 units that include any of the territory of the political
40 subdivision; divided by
41 (ii) the net assessed value of taxable property within the
42 political subdivision.
HB 1120—LS 6559/DI 120 23
1 (C) The information specified in subdivision (3)(A) through
2 (3)(H).
3 (2) When the proper officers of a political subdivision make a
4 preliminary determination to issue bonds or enter into a lease for
5 a controlled project, the officers shall give notice of the
6 preliminary determination by:
7 (A) publication in accordance with IC 5-3-1; and
8 (B) first class mail to the circuit court clerk and to the
9 organizations described in subdivision (1).
10 (3) A notice under subdivision (2) of the preliminary
11 determination of the political subdivision to issue bonds or enter
12 into a lease for a controlled project must include the following
13 information:
14 (A) The maximum term of the bonds or lease.
15 (B) The maximum principal amount of the bonds or the
16 maximum lease rental for the lease.
17 (C) The estimated interest rates that will be paid and the total
18 interest costs associated with the bonds or lease.
19 (D) The purpose of the bonds or lease.
20 (E) A statement that any owners of property within the
21 political subdivision or registered voters residing within the
22 political subdivision who want to initiate a petition and
23 remonstrance process against the proposed debt service or
24 lease payments must file a petition that complies with
25 subdivisions (4) and (5) not later than thirty (30) days after
26 publication in accordance with IC 5-3-1.
27 (F) With respect to bonds issued or a lease entered into to
28 open:
29 (i) a new school facility; or
30 (ii) an existing facility that has not been used for at least
31 three (3) years and that is being reopened to provide
32 additional classroom space;
33 the estimated costs the school corporation expects to incur
34 annually to operate the facility.
35 (G) A statement of whether the school corporation expects to
36 appeal for a new facility adjustment (as defined in
37 IC 20-45-1-16 (repealed) before January 1, 2009) for an
38 increased maximum permissible tuition support levy to pay the
39 estimated costs described in clause (F).
40 (H) The following information:
41 (i) The political subdivision's current debt service levy and
42 rate.
HB 1120—LS 6559/DI 120 24
1 (ii) The estimated increase to the political subdivision's debt
2 service levy and rate that will result if the political
3 subdivision issues the bonds or enters into the lease.
4 (iii) The estimated amount of the political subdivision's debt
5 service levy and rate that will result during the following ten
6 (10) years if the political subdivision issues the bonds or
7 enters into the lease, after also considering any changes that
8 will occur to the debt service levy and rate during that
9 period on account of any outstanding bonds or lease
10 obligations that will mature or terminate during that period.
11 (I) The information specified in subdivision (1)(A) through
12 (1)(B).
13 (4) After notice is given, a petition requesting the application of
14 a petition and remonstrance process may be filed by the lesser of:
15 (A) five hundred (500) persons who are either owners of
16 property within the political subdivision or registered voters
17 residing within the political subdivision; or
18 (B) five percent (5%) of the registered voters residing within
19 the political subdivision.
20 (5) The state board of accounts shall design and, upon request by
21 the county voter registration office, deliver to the county voter
22 registration office or the county voter registration office's
23 designated printer the petition forms to be used solely in the
24 petition process described in this section. The county voter
25 registration office shall issue to an owner or owners of property
26 within the political subdivision or a registered voter residing
27 within the political subdivision the number of petition forms
28 requested by the owner or owners or the registered voter. Each
29 form must be accompanied by instructions detailing the
30 requirements that:
31 (A) the carrier and signers must be owners of property or
32 registered voters;
33 (B) the carrier must be a signatory on at least one (1) petition;
34 (C) after the signatures have been collected, the carrier must
35 swear or affirm before a notary public that the carrier
36 witnessed each signature; and
37 (D) govern the closing date for the petition period.
38 Persons requesting forms may be required to identify themselves
39 as owners of property or registered voters and may be allowed to
40 pick up additional copies to distribute to other owners of property
41 or registered voters. Each person signing a petition must indicate
42 whether the person is signing the petition as a registered voter
HB 1120—LS 6559/DI 120 25
1 within the political subdivision or is signing the petition as the
2 owner of property within the political subdivision. A person who
3 signs a petition as a registered voter must indicate the address at
4 which the person is registered to vote. A person who signs a
5 petition as an owner of property must indicate the address of the
6 property owned by the person in the political subdivision.
7 (6) Each petition must be verified under oath by at least one (1)
8 qualified petitioner in a manner prescribed by the state board of
9 accounts before the petition is filed with the county voter
10 registration office under subdivision (7).
11 (7) Each petition must be filed with the county voter registration
12 office not more than thirty (30) days after publication under
13 subdivision (2) of the notice of the preliminary determination.
14 (8) The county voter registration office shall determine whether
15 each person who signed the petition is a registered voter.
16 However, after the county voter registration office has determined
17 that at least five hundred twenty-five (525) persons who signed
18 the petition are registered voters within the political subdivision,
19 the county voter registration office is not required to verify
20 whether the remaining persons who signed the petition are
21 registered voters. If the county voter registration office does not
22 determine that at least five hundred twenty-five (525) persons
23 who signed the petition are registered voters, the county voter
24 registration office shall, not more than fifteen (15) business days
25 after receiving a petition, forward a copy of the petition to the
26 county auditor. Not more than ten (10) business days after
27 receiving the copy of the petition, the county auditor shall provide
28 to the county voter registration office a statement verifying:
29 (A) whether a person who signed the petition as a registered
30 voter but is not a registered voter, as determined by the county
31 voter registration office, is the owner of property in the
32 political subdivision; and
33 (B) whether a person who signed the petition as an owner of
34 property within the political subdivision does in fact own
35 property within the political subdivision.
36 (9) The county voter registration office, not more than ten (10)
37 business days after determining that at least five hundred
38 twenty-five (525) persons who signed the petition are registered
39 voters or receiving the statement from the county auditor under
40 subdivision (8), as applicable, shall make the final determination
41 of the number of petitioners that are registered voters in the
42 political subdivision and, based on the statement provided by the
HB 1120—LS 6559/DI 120 26
1 county auditor, the number of petitioners that own property within
2 the political subdivision. Whenever the name of an individual
3 who signs a petition form as a registered voter contains a minor
4 variation from the name of the registered voter as set forth in the
5 records of the county voter registration office, the signature is
6 presumed to be valid, and there is a presumption that the
7 individual is entitled to sign the petition under this section. Except
8 as otherwise provided in this chapter, in determining whether an
9 individual is a registered voter, the county voter registration office
10 shall apply the requirements and procedures used under IC 3 to
11 determine whether a person is a registered voter for purposes of
12 voting in an election governed by IC 3. However, an individual is
13 not required to comply with the provisions concerning providing
14 proof of identification to be considered a registered voter for
15 purposes of this chapter. A person is entitled to sign a petition
16 only one (1) time in a particular petition and remonstrance
17 process under this chapter, regardless of whether the person owns
18 more than one (1) parcel of real property, mobile home assessed
19 as personal property, or manufactured home assessed as personal
20 property, or a combination of those types of property within the
21 subdivision and regardless of whether the person is both a
22 registered voter in the political subdivision and the owner of
23 property within the political subdivision. Notwithstanding any
24 other provision of this section, if a petition is presented to the
25 county voter registration office within forty-five (45) days before
26 an election, the county voter registration office may defer acting
27 on the petition, and the time requirements under this section for
28 action by the county voter registration office do not begin to run
29 until five (5) days after the date of the election.
30 (10) The county voter registration office must file a certificate and
31 each petition with:
32 (A) the township trustee, if the political subdivision is a
33 township, who shall present the petition or petitions to the
34 township board; or
35 (B) the body that has the authority to authorize the issuance of
36 the bonds or the execution of a lease, if the political
37 subdivision is not a township;
38 within thirty-five (35) business days of the filing of the petition
39 requesting a petition and remonstrance process. The certificate
40 must state the number of petitioners that are owners of property
41 within the political subdivision and the number of petitioners who
42 are registered voters residing within the political subdivision.
HB 1120—LS 6559/DI 120 27
1 If a sufficient petition requesting a petition and remonstrance process
2 is not filed by owners of property or registered voters as set forth in this
3 section, the political subdivision may issue bonds or enter into a lease
4 by following the provisions of law relating to the bonds to be issued or
5 lease to be entered into.
6 (c) A political subdivision may not divide a controlled project in
7 order to avoid the requirements of this section and section 3.2 of this
8 chapter. A person that owns property within a political subdivision or
9 a person that is a registered voter residing within a political subdivision
10 may file a petition with the department of local government finance
11 objecting that the political subdivision has divided a controlled project
12 in order to avoid the requirements of this section and section 3.2 of this
13 chapter. The petition must be filed not more than ten (10) days after the
14 political subdivision gives notice of the political subdivision's decision
15 to issue bonds or enter into leases for a capital project that the person
16 believes is the result of a division of a controlled project that is
17 prohibited by this subsection. If the department of local government
18 finance receives a petition under this subsection, the department shall
19 not later than thirty (30) days after receiving the petition make a final
20 determination on the issue of whether the political subdivision divided
21 a controlled project in order to avoid the requirements of this section
22 and section 3.2 of this chapter. If the department of local government
23 finance determines that a political subdivision divided a controlled
24 project in order to avoid the requirements of this section and section
25 3.2 of this chapter and the political subdivision continues to desire to
26 proceed with the project, the political subdivision shall fulfill the
27 requirements of this section and section 3.2 of this chapter, if
28 applicable, regardless of the cost of the project in dispute. A political
29 subdivision shall be considered to have divided a capital project in
30 order to avoid the requirements of this section and section 3.2 of this
31 chapter if the result of one (1) or more of the subprojects cannot
32 reasonably be considered an independently desirable end in itself
33 without reference to another capital project. This subsection does not
34 prohibit a political subdivision from undertaking a series of capital
35 projects in which the result of each capital project can reasonably be
36 considered an independently desirable end in itself without reference
37 to another capital project.
38 SECTION 10. IC 6-1.1-20-3.5, AS AMENDED BY P.L.239-2023,
39 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.5. (a) This section
41 applies only to a controlled project that meets the following conditions:
42 (1) The controlled project is described in one (1) of the following
HB 1120—LS 6559/DI 120 28
1 categories:
2 (A) An elementary school building, middle school building,
3 high school building, or other school building for academic
4 instruction that will be used for any combination of
5 kindergarten through grade 12 and will cost more than the
6 lesser of the following:
7 (i) The threshold amount determined under this item. In the
8 case of an ordinance or resolution adopted before January 1,
9 2018, making a preliminary determination to issue bonds or
10 enter into a lease for the project, the threshold amount is ten
11 million dollars ($10,000,000). In the case of an ordinance or
12 resolution adopted after December 31, 2017, and before
13 January 1, 2019, making a preliminary determination to
14 issue bonds or enter into a lease for the project, the threshold
15 amount is fifteen million dollars ($15,000,000). In the case
16 of an ordinance or resolution adopted in a calendar year after
17 December 31, 2018, making a preliminary determination to
18 issue bonds or enter into a lease for the project, the threshold
19 amount is an amount (as determined by the department of
20 local government finance) equal to the result of the
21 maximum levy growth quotient determined under
22 IC 6-1.1-18.5-2 for the year multiplied by the threshold
23 amount determined under this item for the preceding
24 calendar year. In the case of a threshold amount determined
25 under this item that applies for a calendar year after
26 December 31, 2018, the department of local government
27 finance shall publish the threshold in the Indiana Register
28 under IC 4-22-7-7 not more than sixty (60) days after the
29 date the budget agency releases the maximum levy growth
30 quotient for the ensuing year under IC 6-1.1-18.5-2.
31 (ii) An amount equal to one percent (1%) of the total gross
32 assessed value of property within the political subdivision
33 on the last assessment date, if that total gross assessed value
34 is more than one billion dollars ($1,000,000,000), or ten
35 million dollars ($10,000,000), if the total gross assessed
36 value of property within the political subdivision on the last
37 assessment date is not more than one billion dollars
38 ($1,000,000,000).
39 (B) Any other controlled project that is not a controlled project
40 described in clause (A) and will cost the political subdivision
41 more than the lesser of the following:
42 (i) The threshold amount determined under this item. In the
HB 1120—LS 6559/DI 120 29
1 case of an ordinance or resolution adopted before January 1,
2 2018, making a preliminary determination to issue bonds or
3 enter into a lease for the project, the threshold amount is
4 twelve million dollars ($12,000,000). In the case of an
5 ordinance or resolution adopted after December 31, 2017,
6 and before January 1, 2019, making a preliminary
7 determination to issue bonds or enter into a lease for the
8 project, the threshold amount is fifteen million dollars
9 ($15,000,000). In the case of an ordinance or resolution
10 adopted in a calendar year after December 31, 2018, making
11 a preliminary determination to issue bonds or enter into a
12 lease for the project, the threshold amount is an amount (as
13 determined by the department of local government finance)
14 equal to the result of the maximum levy growth quotient
15 determined under IC 6-1.1-18.5-2 for the year multiplied by
16 the threshold amount determined under this item for the
17 preceding calendar year. In the case of a threshold amount
18 determined under this item that applies for a calendar year
19 after December 31, 2018, the department of local
20 government finance shall publish the threshold in the
21 Indiana Register under IC 4-22-7-7 not more than sixty (60)
22 days after the date the budget agency releases the maximum
23 levy growth quotient for the ensuing year under
24 IC 6-1.1-18.5-2.
25 (ii) An amount equal to one percent (1%) of the total gross
26 assessed value of property within the political subdivision
27 on the last assessment date, if that total gross assessed value
28 is more than one hundred million dollars ($100,000,000), or
29 one million dollars ($1,000,000), if the total gross assessed
30 value of property within the political subdivision on the last
31 assessment date is not more than one hundred million
32 dollars ($100,000,000).
33 (C) Any other controlled project for which a political
34 subdivision adopts an ordinance or resolution making a
35 preliminary determination to issue bonds or enter into a lease
36 for the project, if the sum of:
37 (i) the cost of that controlled project; plus
38 (ii) the costs of all other controlled projects for which the
39 political subdivision has previously adopted within the
40 preceding three hundred sixty-five (365) days an ordinance
41 or resolution making a preliminary determination to issue
42 bonds or enter into a lease for those other controlled
HB 1120—LS 6559/DI 120 30
1 projects;
2 exceeds twenty-five million dollars ($25,000,000).
3 (D) This clause does not apply to a project for which a public
4 hearing to issue bonds or enter into a lease has been conducted
5 under IC 20-26-7-37 before July 1, 2023. Except as provided
6 in section 4.5 of this chapter, any other controlled project if the
7 political subdivision's total debt service tax rate is at least
8 eighty cents ($0.80) per one hundred dollars ($100) of
9 assessed value. This clause expires December 31, 2024. For
10 purposes of this clause, a political subdivision's total debt
11 service tax rate does not include a tax rate imposed in a
12 referendum debt service tax levy approved by voters.
13 (2) The proper officers of the political subdivision make a
14 preliminary determination after June 30, 2008, in the manner
15 described in subsection (b) to issue bonds or enter into a lease for
16 the controlled project.
17 (b) Subject to subsection (d), a political subdivision may not impose
18 property taxes to pay debt service on bonds or lease rentals on a lease
19 for a controlled project without completing the following procedures:
20 (1) The proper officers of a political subdivision shall publish
21 notice in accordance with IC 5-3-1 and send notice by first class
22 mail to the circuit court clerk and to any organization that delivers
23 to the officers, before January 1 of that year, an annual written
24 request for notices of any meeting to consider the adoption of an
25 ordinance or a resolution making a preliminary determination to
26 issue bonds or enter into a lease and shall conduct at least two (2)
27 public hearings on the preliminary determination before adoption
28 of the ordinance or resolution. The political subdivision must at
29 each of the public hearings on the preliminary determination
30 allow the public to testify regarding the preliminary determination
31 and must make the following information available to the public
32 at each of the public hearings on the preliminary determination,
33 in addition to any other information required by law:
34 (A) The result of the political subdivision's current and
35 projected annual debt service payments divided by the net
36 assessed value of taxable property within the political
37 subdivision.
38 (B) The result of:
39 (i) the sum of the political subdivision's outstanding long
40 term debt plus the outstanding long term debt of other taxing
41 units that include any of the territory of the political
42 subdivision; divided by
HB 1120—LS 6559/DI 120 31
1 (ii) the net assessed value of taxable property within the
2 political subdivision.
3 (C) The information specified in subdivision (3)(A) through
4 (3)(G).
5 (2) If the proper officers of a political subdivision make a
6 preliminary determination to issue bonds or enter into a lease, the
7 officers shall give notice of the preliminary determination by:
8 (A) publication in accordance with IC 5-3-1; and
9 (B) first class mail to the circuit court clerk and to the
10 organizations described in subdivision (1).
11 (3) A notice under subdivision (2) of the preliminary
12 determination of the political subdivision to issue bonds or enter
13 into a lease must include the following information:
14 (A) The maximum term of the bonds or lease.
15 (B) The maximum principal amount of the bonds or the
16 maximum lease rental for the lease.
17 (C) The estimated interest rates that will be paid and the total
18 interest costs associated with the bonds or lease.
19 (D) The purpose of the bonds or lease.
20 (E) A statement that the proposed debt service or lease
21 payments must be approved in an election on a local public
22 question held under section 3.6 of this chapter.
23 (F) With respect to bonds issued or a lease entered into to
24 open:
25 (i) a new school facility; or
26 (ii) an existing facility that has not been used for at least
27 three (3) years and that is being reopened to provide
28 additional classroom space;
29 the estimated costs the school corporation expects to annually
30 incur to operate the facility.
31 (G) The following information:
32 (i) The political subdivision's current debt service levy and
33 rate.
34 (ii) The estimated increase to the political subdivision's debt
35 service levy and rate that will result if the political
36 subdivision issues the bonds or enters into the lease.
37 (iii) The estimated amount of the political subdivision's debt
38 service levy and rate that will result during the following ten
39 (10) years if the political subdivision issues the bonds or
40 enters into the lease, after also considering any changes that
41 will occur to the debt service levy and rate during that
42 period on account of any outstanding bonds or lease
HB 1120—LS 6559/DI 120 32
1 obligations that will mature or terminate during that period.
2 (H) The information specified in subdivision (1)(A) through
3 (1)(B).
4 (4) This subdivision does not apply to a controlled project
5 described in subsection (a)(1)(D). (before its expiration). After
6 notice is given, a petition requesting the application of the local
7 public question process under section 3.6 of this chapter may be
8 filed by the lesser of:
9 (A) five hundred (500) persons who are either owners of
10 property within the political subdivision or registered voters
11 residing within the political subdivision; or
12 (B) five percent (5%) of the registered voters residing within
13 the political subdivision.
14 (5) This subdivision does not apply to a controlled project
15 described in subsection (a)(1)(D). (before its expiration). The
16 state board of accounts shall design and, upon request by the
17 county voter registration office, deliver to the county voter
18 registration office or the county voter registration office's
19 designated printer the petition forms to be used solely in the
20 petition process described in this section. The county voter
21 registration office shall issue to an owner or owners of property
22 within the political subdivision or a registered voter residing
23 within the political subdivision the number of petition forms
24 requested by the owner or owners or the registered voter. Each
25 form must be accompanied by instructions detailing the
26 requirements that:
27 (A) the carrier and signers must be owners of property or
28 registered voters;
29 (B) the carrier must be a signatory on at least one (1) petition;
30 (C) after the signatures have been collected, the carrier must
31 swear or affirm before a notary public that the carrier
32 witnessed each signature; and
33 (D) govern the closing date for the petition period.
34 Persons requesting forms may be required to identify themselves
35 as owners of property or registered voters and may be allowed to
36 pick up additional copies to distribute to other owners of property
37 or registered voters. Each person signing a petition must indicate
38 whether the person is signing the petition as a registered voter
39 within the political subdivision or is signing the petition as the
40 owner of property within the political subdivision. A person who
41 signs a petition as a registered voter must indicate the address at
42 which the person is registered to vote. A person who signs a
HB 1120—LS 6559/DI 120 33
1 petition as an owner of property must indicate the address of the
2 property owned by the person in the political subdivision.
3 (6) This subdivision does not apply to a controlled project
4 described in subsection (a)(1)(D). (before its expiration). Each
5 petition must be verified under oath by at least one (1) qualified
6 petitioner in a manner prescribed by the state board of accounts
7 before the petition is filed with the county voter registration office
8 under subdivision (7).
9 (7) This subdivision does not apply to a controlled project
10 described in subsection (a)(1)(D). (before its expiration). Each
11 petition must be filed with the county voter registration office not
12 more than thirty (30) days after publication under subdivision (2)
13 of the notice of the preliminary determination.
14 (8) This subdivision does not apply to a controlled project
15 described in subsection (a)(1)(D). (before its expiration). The
16 county voter registration office shall determine whether each
17 person who signed the petition is a registered voter. However,
18 after the county voter registration office has determined that at
19 least five hundred twenty-five (525) persons who signed the
20 petition are registered voters within the political subdivision, the
21 county voter registration office is not required to verify whether
22 the remaining persons who signed the petition are registered
23 voters. If the county voter registration office does not determine
24 that at least five hundred twenty-five (525) persons who signed
25 the petition are registered voters, the county voter registration
26 office, not more than fifteen (15) business days after receiving a
27 petition, shall forward a copy of the petition to the county auditor.
28 Not more than ten (10) business days after receiving the copy of
29 the petition, the county auditor shall provide to the county voter
30 registration office a statement verifying:
31 (A) whether a person who signed the petition as a registered
32 voter but is not a registered voter, as determined by the county
33 voter registration office, is the owner of property in the
34 political subdivision; and
35 (B) whether a person who signed the petition as an owner of
36 property within the political subdivision does in fact own
37 property within the political subdivision.
38 (9) This subdivision does not apply to a controlled project
39 described in subsection (a)(1)(D). (before its expiration). The
40 county voter registration office, not more than ten (10) business
41 days after determining that at least five hundred twenty-five (525)
42 persons who signed the petition are registered voters or after
HB 1120—LS 6559/DI 120 34
1 receiving the statement from the county auditor under subdivision
2 (8), as applicable, shall make the final determination of whether
3 a sufficient number of persons have signed the petition. Whenever
4 the name of an individual who signs a petition form as a
5 registered voter contains a minor variation from the name of the
6 registered voter as set forth in the records of the county voter
7 registration office, the signature is presumed to be valid, and there
8 is a presumption that the individual is entitled to sign the petition
9 under this section. Except as otherwise provided in this chapter,
10 in determining whether an individual is a registered voter, the
11 county voter registration office shall apply the requirements and
12 procedures used under IC 3 to determine whether a person is a
13 registered voter for purposes of voting in an election governed by
14 IC 3. However, an individual is not required to comply with the
15 provisions concerning providing proof of identification to be
16 considered a registered voter for purposes of this chapter. A
17 person is entitled to sign a petition only one (1) time in a
18 particular referendum process under this chapter, regardless of
19 whether the person owns more than one (1) parcel of real
20 property, mobile home assessed as personal property, or
21 manufactured home assessed as personal property or a
22 combination of those types of property within the political
23 subdivision and regardless of whether the person is both a
24 registered voter in the political subdivision and the owner of
25 property within the political subdivision. Notwithstanding any
26 other provision of this section, if a petition is presented to the
27 county voter registration office within forty-five (45) days before
28 an election, the county voter registration office may defer acting
29 on the petition, and the time requirements under this section for
30 action by the county voter registration office do not begin to run
31 until five (5) days after the date of the election.
32 (10) This subdivision does not apply to a controlled project
33 described in subsection (a)(1)(D). (before its expiration). The
34 county voter registration office must file a certificate and each
35 petition with:
36 (A) the township trustee, if the political subdivision is a
37 township, who shall present the petition or petitions to the
38 township board; or
39 (B) the body that has the authority to authorize the issuance of
40 the bonds or the execution of a lease, if the political
41 subdivision is not a township;
42 within thirty-five (35) business days of the filing of the petition
HB 1120—LS 6559/DI 120 35
1 requesting the referendum process. The certificate must state the
2 number of petitioners who are owners of property within the
3 political subdivision and the number of petitioners who are
4 registered voters residing within the political subdivision.
5 (11) This subdivision does not apply to a controlled project
6 described in subsection (a)(1)(D). (before its expiration). If a
7 sufficient petition requesting the local public question process is
8 not filed by owners of property or registered voters as set forth in
9 this section, the political subdivision may issue bonds or enter
10 into a lease by following the provisions of law relating to the
11 bonds to be issued or lease to be entered into.
12 (c) If the proper officers of a political subdivision make a
13 preliminary determination to issue bonds or enter into a lease, the
14 officers shall provide to the county auditor:
15 (1) a copy of the notice required by subsection (b)(2); and
16 (2) any other information the county auditor requires to fulfill the
17 county auditor's duties under section 3.6 of this chapter.
18 (d) In addition to the procedures in subsection (b), if any capital
19 improvement components addressed in the most recent:
20 (1) threat assessment of the buildings within the school
21 corporation; or
22 (2) school safety plan (as described in IC 20-26-18.2-2(b));
23 concerning a particular school have not been completed or require
24 additional funding to be completed, before the school corporation may
25 impose property taxes to pay debt service on bonds or lease rentals for
26 a lease for a controlled project, and in addition to any other components
27 of the controlled project, the controlled project must include any capital
28 improvements necessary to complete those components described in
29 subdivisions (1) and (2) that have not been completed or that require
30 additional funding to be completed.
31 (e) In addition to the other procedures in this section, an ordinance
32 or resolution making a preliminary determination to issue bonds or
33 enter into leases that is considered for adoption must include a
34 statement of:
35 (1) the maximum annual debt service for the controlled project for
36 each year in which the debt service will be paid; and
37 (2) the schedule of the estimated annual tax levy and rate over a
38 ten (10) year period;
39 factoring in changes that will occur to the debt service levy and tax rate
40 during the period on account of any outstanding bonds or lease
41 obligations that will mature or terminate during the period.
42 SECTION 11. IC 6-1.1-20-3.6, AS AMENDED BY P.L.239-2023,
HB 1120—LS 6559/DI 120 36
1 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.6. (a) Except as
3 provided in sections 3.7 and 3.8 of this chapter, this section applies
4 only to a controlled project described in section 3.5(a) of this chapter.
5 (b) In the case of a controlled project:
6 (1) described in section 3.5(a)(1)(A) through 3.5(a)(1)(C) of this
7 chapter, if a sufficient petition requesting the application of the
8 local public question process has been filed as set forth in section
9 3.5 of this chapter; or
10 (2) described in section 3.5(a)(1)(D) of this chapter; (before its
11 expiration);
12 a political subdivision may not impose property taxes to pay debt
13 service on bonds or lease rentals on a lease for a controlled project
14 unless the political subdivision's proposed debt service or lease rental
15 is approved in an election on a local public question held under this
16 section.
17 (c) Except as provided in subsection (k), the following question
18 shall be submitted to the eligible voters at the election conducted under
19 this section:
20 "Shall ________ (insert the name of the political subdivision)
21 increase property taxes paid to the _______ (insert the type of
22 taxing unit) by homeowners and businesses? If this public
23 question is approved by the voters, the average property tax paid
24 to the _______ (insert the type of taxing unit) per year on a
25 residence would increase by ______% (insert the estimated
26 average percentage of property tax increase paid to the political
27 subdivision on a residence within the political subdivision as
28 determined under subsection (n)) and the average property tax
29 paid to the _____ (insert the type of taxing unit) per year on a
30 business property would increase by ______% (insert the
31 estimated average percentage of property tax increase paid to the
32 political subdivision on a business property within the political
33 subdivision as determined under subsection (o)). The political
34 subdivision may issue bonds or enter into a lease to ________
35 (insert a brief description of the controlled project), which is
36 estimated to cost _______ (insert the total cost of the project)
37 over ______ (insert number of years to bond maturity or
38 termination of lease) years. The most recent property tax
39 referendum within the boundaries of the political subdivision for
40 which this public question is being considered was proposed by
41 ________ (insert name of political subdivision) in ______ (insert
42 year of most recent property tax referendum) and ________
HB 1120—LS 6559/DI 120 37
1 (insert whether the measure passed or failed).".
2 The public question must appear on the ballot in the form approved by
3 the county election board. If the political subdivision proposing to issue
4 bonds or enter into a lease is located in more than one (1) county, the
5 county election board of each county shall jointly approve the form of
6 the public question that will appear on the ballot in each county. The
7 form approved by the county election board may differ from the
8 language certified to the county election board by the county auditor.
9 If the county election board approves the language of a public question
10 under this subsection, the county election board shall submit the
11 language and the certification of the county auditor described in
12 subsection (p) to the department of local government finance for
13 review.
14 (d) The department of local government finance shall review the
15 language of the public question to evaluate whether the description of
16 the controlled project is accurate and is not biased against either a vote
17 in favor of the controlled project or a vote against the controlled
18 project. The department of local government finance shall post the
19 estimated average percentage of property tax increases to be paid to a
20 political subdivision on a residence and business property that are
21 certified by the county auditor under subsection (p) on the department's
22 Internet web site. The department of local government finance may
23 either approve the ballot language as submitted or recommend that the
24 ballot language be modified as necessary to ensure that the description
25 of the controlled project is accurate and is not biased. The department
26 of local government finance shall certify its approval or
27 recommendations to the county auditor and the county election board
28 not more than ten (10) days after the language of the public question is
29 submitted to the department for review. If the department of local
30 government finance recommends a modification to the ballot language,
31 the county election board shall, after reviewing the recommendations
32 of the department of local government finance, submit modified ballot
33 language to the department for the department's approval or
34 recommendation of any additional modifications. The public question
35 may not be certified by the county auditor under subsection (e) unless
36 the department of local government finance has first certified the
37 department's final approval of the ballot language for the public
38 question.
39 (e) The county auditor shall certify the finally approved public
40 question under IC 3-10-9-3 to the county election board of each county
41 in which the political subdivision is located. The certification must
42 occur not later than noon:
HB 1120—LS 6559/DI 120 38
1 (1) seventy-four (74) days before a primary election if the public
2 question is to be placed on the primary or municipal primary
3 election ballot; or
4 (2) August 1 if the public question is to be placed on the general
5 or municipal election ballot.
6 Subject to the certification requirements and deadlines under this
7 subsection and except as provided in subsection (j), the public question
8 shall be placed on the ballot at the next primary election, general
9 election or municipal election in which all voters of the political
10 subdivision are entitled to vote. However, if a primary election, general
11 election, or municipal election will not be held during the first year in
12 which the public question is eligible to be placed on the ballot under
13 this section and if the political subdivision requests the public question
14 to be placed on the ballot at a special election, the public question shall
15 be placed on the ballot at a special election to be held on the first
16 Tuesday after the first Monday in May or November of the year. The
17 certification must occur not later than noon seventy-four (74) days
18 before a special election to be held in May (if the special election is to
19 be held in May) or noon on August 1 (if the special election is to be
20 held in November). The fiscal body of the political subdivision that
21 requests the special election shall pay the costs of holding the special
22 election. The county election board shall give notice under IC 5-3-1 of
23 a special election conducted under this subsection. A special election
24 conducted under this subsection is under the direction of the county
25 election board. The county election board shall take all steps necessary
26 to carry out the special election.
27 (f) The circuit court clerk shall certify the results of the public
28 question to the following:
29 (1) The county auditor of each county in which the political
30 subdivision is located.
31 (2) The department of local government finance.
32 (g) Subject to the requirements of IC 6-1.1-18.5-8, the political
33 subdivision may issue the proposed bonds or enter into the proposed
34 lease rental if a majority of the eligible voters voting on the public
35 question vote in favor of the public question.
36 (h) If a majority of the eligible voters voting on the public question
37 vote in opposition to the public question, both of the following apply:
38 (1) The political subdivision may not issue the proposed bonds or
39 enter into the proposed lease rental.
40 (2) Another public question under this section on the same or a
41 substantially similar project may not be submitted to the voters
42 earlier than:
HB 1120—LS 6559/DI 120 39
1 (A) except as provided in clause (B), seven hundred (700)
2 days after the date of the public question; or
3 (B) three hundred fifty (350) days after the date of the election,
4 if a petition that meets the requirements of subsection (m) is
5 submitted to the county auditor.
6 (i) IC 3, to the extent not inconsistent with this section, applies to an
7 election held under this section.
8 (j) A political subdivision may not divide a controlled project in
9 order to avoid the requirements of this section and section 3.5 of this
10 chapter. A person that owns property within a political subdivision or
11 a person that is a registered voter residing within a political subdivision
12 may file a petition with the department of local government finance
13 objecting that the political subdivision has divided a controlled project
14 into two (2) or more capital projects in order to avoid the requirements
15 of this section and section 3.5 of this chapter. The petition must be filed
16 not more than ten (10) days after the political subdivision gives notice
17 of the political subdivision's decision under section 3.5 of this chapter
18 or a determination under section 5 of this chapter to issue bonds or
19 enter into leases for a capital project that the person believes is the
20 result of a division of a controlled project that is prohibited by this
21 subsection. If the department of local government finance receives a
22 petition under this subsection, the department shall not later than thirty
23 (30) days after receiving the petition make a final determination on the
24 issue of whether the political subdivision divided a controlled project
25 in order to avoid the requirements of this section and section 3.5 of this
26 chapter. If the department of local government finance determines that
27 a political subdivision divided a controlled project in order to avoid the
28 requirements of this section and section 3.5 of this chapter and the
29 political subdivision continues to desire to proceed with the project, the
30 political subdivision may appeal the determination of the department
31 of local government finance to the Indiana board of tax review. A
32 political subdivision shall be considered to have divided a capital
33 project in order to avoid the requirements of this section and section
34 3.5 of this chapter if the result of one (1) or more of the subprojects
35 cannot reasonably be considered an independently desirable end in
36 itself without reference to another capital project. This subsection does
37 not prohibit a political subdivision from undertaking a series of capital
38 projects in which the result of each capital project can reasonably be
39 considered an independently desirable end in itself without reference
40 to another capital project.
41 (k) This subsection applies to a political subdivision for which a
42 petition requesting a public question has been submitted under section
HB 1120—LS 6559/DI 120 40
1 3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
2 the political subdivision may adopt a resolution to withdraw a
3 controlled project from consideration in a public question. If the
4 legislative body provides a certified copy of the resolution to the county
5 auditor and the county election board not later than sixty-three (63)
6 days before the election at which the public question would be on the
7 ballot, the public question on the controlled project shall not be placed
8 on the ballot and the public question on the controlled project shall not
9 be held, regardless of whether the county auditor has certified the
10 public question to the county election board. If the withdrawal of a
11 public question under this subsection requires the county election
12 board to reprint ballots, the political subdivision withdrawing the
13 public question shall pay the costs of reprinting the ballots. If a political
14 subdivision withdraws a public question under this subsection that
15 would have been held at a special election and the county election
16 board has printed the ballots before the legislative body of the political
17 subdivision provides a certified copy of the withdrawal resolution to
18 the county auditor and the county election board, the political
19 subdivision withdrawing the public question shall pay the costs
20 incurred by the county in printing the ballots. If a public question on a
21 controlled project is withdrawn under this subsection, a public question
22 under this section on the same controlled project or a substantially
23 similar controlled project may not be submitted to the voters earlier
24 than three hundred fifty (350) days after the date the resolution
25 withdrawing the public question is adopted.
26 (l) If a public question regarding a controlled project is placed on
27 the ballot to be voted on at an election under this section, the political
28 subdivision shall submit to the department of local government finance,
29 at least thirty (30) days before the election, the following information
30 regarding the proposed controlled project for posting on the
31 department's Internet web site:
32 (1) The cost per square foot of any buildings being constructed as
33 part of the controlled project.
34 (2) The effect that approval of the controlled project would have
35 on the political subdivision's property tax rate.
36 (3) The maximum term of the bonds or lease.
37 (4) The maximum principal amount of the bonds or the maximum
38 lease rental for the lease.
39 (5) The estimated interest rates that will be paid and the total
40 interest costs associated with the bonds or lease.
41 (6) The purpose of the bonds or lease.
42 (7) In the case of a controlled project proposed by a school
HB 1120—LS 6559/DI 120 41
1 corporation:
2 (A) the current and proposed square footage of school building
3 space per student;
4 (B) enrollment patterns within the school corporation; and
5 (C) the age and condition of the current school facilities.
6 (m) If a majority of the eligible voters voting on the public question
7 vote in opposition to the public question, a petition may be submitted
8 to the county auditor to request that the limit under subsection
9 (h)(2)(B) apply to the holding of a subsequent public question by the
10 political subdivision. If such a petition is submitted to the county
11 auditor and is signed by the lesser of:
12 (1) five hundred (500) persons who are either owners of property
13 within the political subdivision or registered voters residing
14 within the political subdivision; or
15 (2) five percent (5%) of the registered voters residing within the
16 political subdivision;
17 the limit under subsection (h)(2)(B) applies to the holding of a second
18 public question by the political subdivision and the limit under
19 subsection (h)(2)(A) does not apply to the holding of a second public
20 question by the political subdivision.
21 (n) At the request of a political subdivision that proposes to impose
22 property taxes to pay debt service on bonds or lease rentals on a lease
23 for a controlled project, the county auditor of a county in which the
24 political subdivision is located shall determine the estimated average
25 percentage of property tax increase on a homestead to be paid to the
26 political subdivision that must be included in the public question under
27 subsection (c) as follows:
28 STEP ONE: Determine the average assessed value of a homestead
29 located within the political subdivision.
30 STEP TWO: For purposes of determining the net assessed value
31 of the average homestead located within the political subdivision,
32 subtract:
33 (A) an amount for the homestead standard deduction under
34 IC 6-1.1-12-37 as if the homestead described in STEP ONE
35 was eligible for the deduction; and
36 (B) an amount for the supplemental homestead deduction
37 under IC 6-1.1-12-37.5 as if the homestead described in STEP
38 ONE was eligible for the deduction;
39 from the result of STEP ONE.
40 STEP THREE: Divide the result of STEP TWO by one hundred
41 (100).
42 STEP FOUR: Determine the overall average tax rate per one
HB 1120—LS 6559/DI 120 42
1 hundred dollars ($100) of assessed valuation for the current year
2 imposed on property located within the political subdivision.
3 STEP FIVE: For purposes of determining net property tax liability
4 of the average homestead located within the political subdivision:
5 (A) multiply the result of STEP THREE by the result of STEP
6 FOUR; and
7 (B) as appropriate, apply any currently applicable county
8 property tax credit rates and the credit for excessive property
9 taxes under IC 6-1.1-20.6-7.5(a)(1).
10 STEP SIX: Determine the amount of the political subdivision's
11 part of the result determined in STEP FIVE.
12 STEP SEVEN: Determine the estimated tax rate that will be
13 imposed if the public question is approved by the voters.
14 STEP EIGHT: Multiply the result of STEP SEVEN by the result
15 of STEP THREE.
16 STEP NINE: Divide the result of STEP EIGHT by the result of
17 STEP SIX, expressed as a percentage.
18 (o) At the request of a political subdivision that proposes to impose
19 property taxes to pay debt service on bonds or lease rentals on a lease
20 for a controlled project, the county auditor of a county in which the
21 political subdivision is located shall determine the estimated average
22 percentage of property tax increase on a business property to be paid
23 to the political subdivision that must be included in the public question
24 under subsection (c) as follows:
25 STEP ONE: Determine the average assessed value of business
26 property located within the political subdivision.
27 STEP TWO: Divide the result of STEP ONE by one hundred
28 (100).
29 STEP THREE: Determine the overall average tax rate per one
30 hundred dollars ($100) of assessed valuation for the current year
31 imposed on property located within the political subdivision.
32 STEP FOUR: For purposes of determining net property tax
33 liability of the average business property located within the
34 political subdivision:
35 (A) multiply the result of STEP TWO by the result of STEP
36 THREE; and
37 (B) as appropriate, apply any currently applicable county
38 property tax credit rates and the credit for excessive property
39 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
40 was three percent (3%).
41 STEP FIVE: Determine the amount of the political subdivision's
42 part of the result determined in STEP FOUR.
HB 1120—LS 6559/DI 120 43
1 STEP SIX: Determine the estimated tax rate that will be imposed
2 if the public question is approved by the voters.
3 STEP SEVEN: Multiply the result of STEP TWO by the result of
4 STEP SIX.
5 STEP EIGHT: Divide the result of STEP SEVEN by the result of
6 STEP FIVE, expressed as a percentage.
7 (p) The county auditor shall certify the estimated average
8 percentage of property tax increase on a homestead to be paid to the
9 political subdivision determined under subsection (n), and the
10 estimated average percentage of property tax increase on a business
11 property to be paid to the political subdivision determined under
12 subsection (o), in a manner prescribed by the department of local
13 government finance, and provide the certification to the political
14 subdivision that proposes to impose property taxes. The political
15 subdivision shall provide the certification to the county election board
16 and include the estimated average percentages in the language of the
17 public question at the time the language of the public question is
18 submitted to the county election board for approval as described in
19 subsection (c).
20 SECTION 12. IC 6-1.1-20-4.5, AS ADDED BY P.L.239-2023,
21 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 4.5. (a) As used in this
23 section, "maintenance emergency" refers to a response to a condition
24 that is not otherwise subject to the application of section 1.1(a)(6) of
25 this chapter and includes:
26 (1) repair of a boiler or chiller system;
27 (2) roof repair;
28 (3) storm damage repair; or
29 (4) any other repair that the department determines is a
30 maintenance emergency for which waiver of the application of
31 section 3.5(a)(1)(D) of this chapter (before its expiration) is
32 warranted.
33 (b) A political subdivision may submit a request to the department
34 to waive the application of section 3.5(a)(1)(D) of this chapter, (before
35 its expiration), if the proposed controlled project of the political
36 subdivision is to address a maintenance emergency with respect to a
37 building owned or leased by the political subdivision.
38 (c) The department shall require the political subdivision to submit
39 any information that the department considers necessary to determine
40 whether the condition that the political subdivision contends is a
41 maintenance emergency.
42 (d) The department shall review a request and issue a determination
HB 1120—LS 6559/DI 120 44
1 not later than forty-five (45) days after the department receives a
2 request under this section determining whether the condition that the
3 political subdivision contends is a maintenance emergency is sufficient
4 to waive the application of section 3.5(a)(1)(D) of this chapter. (before
5 its expiration). If the department determines that the condition is a
6 maintenance emergency then section 3.5(a)(1)(D) of this chapter
7 (before its expiration) is waived and does not apply to the proposed
8 controlled project.
9 (e) A waiver of the application of section 3.5(a)(1)(D) of this
10 chapter (before its expiration) in accordance with this section may not
11 be construed as a waiver of any other requirement of this chapter with
12 respect to the proposed controlled project.
13 (f) This section expires December 31, 2024.
14 SECTION 13. IC 6-1.1-39-3, AS AMENDED BY P.L.257-2019,
15 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2024]: Sec. 3. (a) The fiscal body shall publish notice of the
17 adoption and substance of the ordinance in accordance with IC 5-3-1
18 after:
19 (1) the adoption of the ordinance under section 2 of this chapter;
20 and
21 (2) the fiscal body receives preliminary certification from the
22 Indiana economic development corporation under section 2.5 of
23 this chapter that the proposed industrial development project
24 qualifies as a qualified industrial development project and that
25 there is a reasonable likelihood that a loan from the industrial
26 development fund will be approved under IC 5-28-9-12.
27 The notice must state the general boundaries of the area designated as
28 an economic development district and must state that written
29 remonstrances may be filed with the fiscal body until the time
30 designated for the hearing. The notice must also name the place, date,
31 and time when the fiscal body will receive and hear remonstrances and
32 objections from persons interested in or affected by the proceedings
33 pertaining to the proposed economic development district designation
34 and will determine the public utility and benefit of the proposed
35 economic development district designation. All persons affected in any
36 manner by the hearing, including all taxpayers of the economic
37 development district, shall be considered notified of the pendency of
38 the hearing and of subsequent acts, hearings, adjournments, and orders
39 of the fiscal body affecting the economic development district if the
40 fiscal body gives the notice required by this section.
41 (b) A copy of the notice of the hearing shall be filed with the office
42 of the unit's plan commission, board of zoning appeals, works board,
HB 1120—LS 6559/DI 120 45
1 park board, building commissioner, and any other departments, bodies,
2 or officers of the unit having to do with unit planning, variances from
3 zoning ordinances, land use, or the issuance of building permits.
4 (c) At the hearing, which may be recessed and reconvened from
5 time to time, the fiscal body shall hear all persons interested in the
6 proceedings and shall consider all written remonstrances and
7 objections that have been filed. After considering the evidence
8 presented, the fiscal body shall take final action determining the public
9 utility and benefit of the proposed economic development district
10 designation and confirming, modifying and confirming, or rescinding
11 the ordinance. The final action taken by the fiscal body shall be
12 recorded and is final and conclusive, except that an appeal may be
13 taken in the manner prescribed by section 4 of this chapter.
14 (d) If the fiscal body confirms, or modifies and confirms, the
15 ordinance, the fiscal body shall file a copy of the ordinance with both
16 the auditor of the county in which the unit is located and the
17 department, together with any supporting documents that are relevant
18 to the computation of assessed values in the allocation area, within
19 thirty (30) days after the date on which the fiscal body takes final action
20 on the ordinance.
21 (e) A fiscal body is prohibited from removing a parcel of real
22 property from an existing economic development district or an
23 existing tax increment financing district, as applicable under this
24 chapter, and subsequently adding the same parcel of real property
25 back into the economic development district or tax increment
26 financing district during the life of the economic development
27 district or tax increment financing district.
28 SECTION 14. IC 6-1.1-39-5, AS AMENDED BY P.L.257-2019,
29 SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2024]: Sec. 5. (a) A declaratory ordinance adopted under
31 section 2 of this chapter and confirmed under section 3 of this chapter
32 must include a provision with respect to the allocation and distribution
33 of property taxes for the purposes and in the manner provided in this
34 section. The allocation provision must apply to the entire economic
35 development district. The allocation provisions must require that any
36 property taxes subsequently levied by or for the benefit of any public
37 body entitled to a distribution of property taxes on taxable property in
38 the economic development district be allocated and distributed as
39 follows:
40 (1) Except as otherwise provided in this section, the proceeds of
41 the taxes attributable to the lesser of:
42 (A) the assessed value of the property for the assessment date
HB 1120—LS 6559/DI 120 46
1 with respect to which the allocation and distribution is made;
2 or
3 (B) the base assessed value;
4 shall be allocated to and, when collected, paid into the funds of
5 the respective taxing units. However, if the effective date of the
6 allocation provision of a declaratory ordinance is after March 1,
7 1985, and before January 1, 1986, and if an improvement to
8 property was partially completed on March 1, 1985, the unit may
9 provide in the declaratory ordinance that the taxes attributable to
10 the assessed value of the property as finally determined for March
11 1, 1984, shall be allocated to and, when collected, paid into the
12 funds of the respective taxing units.
13 (2) Except as otherwise provided in this section, part or all of the
14 property tax proceeds in excess of those described in subdivision
15 (1), as specified in the declaratory ordinance, shall be allocated to
16 the unit for the economic development district and, when
17 collected, paid into a special fund established by the unit for that
18 economic development district that may be used only to pay the
19 principal of and interest on obligations owed by the unit under
20 IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
21 industrial development programs in, or serving, that economic
22 development district. The amount not paid into the special fund
23 shall be paid to the respective units in the manner prescribed by
24 subdivision (1).
25 (3) When the money in the fund is sufficient to pay all
26 outstanding principal of and interest (to the earliest date on which
27 the obligations can be redeemed) on obligations owed by the unit
28 under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
29 of industrial development programs in, or serving, that economic
30 development district, money in the special fund in excess of that
31 amount shall be paid to the respective taxing units in the manner
32 prescribed by subdivision (1).
33 (b) Property tax proceeds allocable to the economic development
34 district under subsection (a)(2) must, subject to subsection (a)(3), be
35 irrevocably pledged by the unit for payment as set forth in subsection
36 (a)(2).
37 (c) For the purpose of allocating taxes levied by or for any taxing
38 unit or units, the assessed value of taxable property in a territory in the
39 economic development district that is annexed by any taxing unit after
40 the effective date of the allocation provision of the declaratory
41 ordinance is the lesser of:
42 (1) the assessed value of the property for the assessment date with
HB 1120—LS 6559/DI 120 47
1 respect to which the allocation and distribution is made; or
2 (2) the base assessed value.
3 (d) Notwithstanding any other law, each assessor shall, upon
4 petition of the fiscal body, reassess the taxable property situated upon
5 or in, or added to, the economic development district effective on the
6 next assessment date after the petition.
7 (e) Notwithstanding any other law, the assessed value of all taxable
8 property in the economic development district, for purposes of tax
9 limitation, property tax replacement, and formulation of the budget, tax
10 rate, and tax levy for each political subdivision in which the property
11 is located, is the lesser of:
12 (1) the assessed value of the property as valued without regard to
13 this section; or
14 (2) the base assessed value.
15 (f) The state board of accounts and department of local government
16 finance shall make the rules and prescribe the forms and procedures
17 that they consider expedient for the implementation of this chapter.
18 After each reassessment of a group of parcels under a reassessment
19 plan prepared under IC 6-1.1-4-4.2 the department of local government
20 finance shall adjust the base assessed value one (1) time to neutralize
21 any effect of the reassessment on the property tax proceeds allocated
22 to the district under this section. After each annual adjustment under
23 IC 6-1.1-4-4.5, the department of local government finance shall adjust
24 the base assessed value to neutralize any effect of the annual
25 adjustment on the property tax proceeds allocated to the district under
26 this section. However, the adjustments under this subsection may not
27 include the effect of property tax abatements under IC 6-1.1-12.1.
28 (g) As used in this section, "property taxes" means:
29 (1) taxes imposed under this article on real property; and
30 (2) any part of the taxes imposed under this article on depreciable
31 personal property that the unit has by ordinance allocated to the
32 economic development district. However, the ordinance may not
33 limit the allocation to taxes on depreciable personal property with
34 any particular useful life or lives.
35 If a unit had, by ordinance adopted before May 8, 1987, allocated to an
36 economic development district property taxes imposed under IC 6-1.1
37 on depreciable personal property that has a useful life in excess of eight
38 (8) years, the ordinance continues in effect until an ordinance is
39 adopted by the unit under subdivision (2).
40 (h) As used in this section, "base assessed value" means, subject to
41 subsection (i):
42 (1) the net assessed value of all the property as finally determined
HB 1120—LS 6559/DI 120 48
1 for the assessment date immediately preceding the effective date
2 of the allocation provision of the declaratory resolution, as
3 adjusted under subsection (f); plus
4 (2) to the extent that it is not included in subdivision (1), the net
5 assessed value of property that is assessed as residential property
6 under the rules of the department of local government finance,
7 within the economic development district, as finally determined
8 for the current assessment date.
9 Subdivision (2) applies only to economic development districts
10 established after June 30, 1997, and to additional areas established
11 after June 30, 1997.
12 (i) If a fiscal body confirms, or modifies and confirms, an ordinance
13 under section 3 of this chapter and the fiscal body makes either of the
14 filings required under section 3(d) of this chapter after the first
15 anniversary of the effective date of the allocation provision in the
16 ordinance, the auditor of the county in which the unit is located shall
17 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
22 department.
23 (j) A fiscal body is prohibited from removing a parcel of real
24 property from an existing economic development district or an
25 existing tax increment financing district, as applicable under this
26 chapter, and subsequently adding the same parcel of real property
27 back into the economic development district or tax increment
28 financing district during the life of the economic development
29 district or tax increment financing district.
30 SECTION 15. IC 6-1.1-49-10, AS ADDED BY P.L.95-2023,
31 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JANUARY 1, 2025]: Sec. 10. (a) If an individual who is receiving the
33 credit provided by this chapter:
34 (1) knows or should have known that the individual does not
35 qualify for the credit under this chapter; or
36 (2) changes the use of the individual's property so that part or all
37 of the property no longer qualifies for the credit under this
38 chapter;
39 the individual must file a certified statement with the county auditor,
40 notifying the county auditor that subdivision (1) or (2) applies, not
41 more than sixty (60) days after the date subdivision (1) or (2) first
42 applies.
HB 1120—LS 6559/DI 120 49
1 (b) An individual who fails to file the statement required by this
2 section is liable for any additional taxes that would have been due on
3 the property if the individual had filed the statement as required by this
4 section, plus a civil penalty equal to ten percent (10%) of the additional
5 taxes due. The additional taxes owed plus the civil penalty become part
6 of the property tax liability for purposes of this article.
7 (c) The civil penalty imposed under this section is in addition to any
8 interest and penalties for a delinquent payment that might otherwise be
9 due. One percent (1%) of the total civil penalty collected under this
10 section shall be transferred by the county to the department of local
11 government finance for use by the department in establishing and
12 maintaining the homestead property data base under IC 6-1.1-12-37(i)
13 IC 6-1.1-12-37(j) and, to the extent there is money remaining, for any
14 other purposes of the department.
15 SECTION 16. IC 8-22-3.5-6, AS AMENDED BY P.L.257-2019,
16 SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2024]: Sec. 6. (a) After adoption of the resolution under
18 section 5 of this chapter, the commission shall:
19 (1) publish notice of the adoption and substance of the resolution
20 in accordance with IC 5-3-1; and
21 (2) file the following information with each taxing unit that has
22 authority to levy property taxes in the geographic area where the
23 airport development zone is located:
24 (A) A copy of the notice required by subdivision (1).
25 (B) A statement disclosing the impact of the airport
26 development zone, including the following:
27 (i) The estimated economic benefits and costs incurred by
28 the airport development zone, as measured by increased
29 employment and anticipated growth of real property
30 assessed values.
31 (ii) The anticipated impact on tax revenues of each taxing
32 unit.
33 The notice must state the general boundaries of the area designated as
34 an airport development zone and must state that written remonstrances
35 may be filed with the commission until the time designated for the
36 hearing. The notice must also name the place, date, and time when the
37 commission will receive and hear remonstrances and objections from
38 persons interested in or affected by the proceedings pertaining to the
39 proposed airport development zone designation and will determine the
40 public utility and benefit of the proposed airport development zone
41 designation. The commission shall file the information required by
42 subdivision (2) with the officers of the taxing unit who are authorized
HB 1120—LS 6559/DI 120 50
1 to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 at least ten
2 (10) days before the date of the public hearing. All persons affected in
3 any manner by the hearing, including all taxpayers within the taxing
4 district of the airport authority, shall be considered notified of the
5 pendency of the hearing and of subsequent acts, hearings,
6 adjournments, and orders of the commission affecting the airport
7 development zone if the commission gives the notice required by this
8 section.
9 (b) At the hearing, which may be recessed and reconvened from
10 time to time, the commission shall hear all persons interested in the
11 proceedings and shall consider all written remonstrances and
12 objections that have been filed. After considering the evidence
13 presented, the commission shall take final action determining the
14 public utility and benefit of the proposed airport development zone
15 designation and confirming, modifying and confirming, or rescinding
16 the resolution. The final action taken by the commission shall be
17 recorded and is final and conclusive, except that an appeal may be
18 taken in the manner prescribed by section 7 of this chapter.
19 (c) If the commission confirms, or modifies and confirms, the
20 resolution, the commission shall file a copy of the resolution with both
21 the auditor of the county in which the airport development zone is
22 located and the department of local government finance, together with
23 any supporting documents that are relevant to the computation of
24 assessed values in the airport development zone, within thirty (30) days
25 after the date on which the commission takes final action on the
26 resolution.
27 (d) A commission is prohibited from removing a parcel of real
28 property from an existing airport development zone or an existing
29 tax increment financing district, as applicable under this chapter,
30 and subsequently adding the same parcel of real property back into
31 the airport development zone or tax increment financing district
32 during the life of the airport development zone or tax increment
33 financing district.
34 SECTION 17. IC 8-22-3.5-9, AS AMENDED BY P.L.174-2022,
35 SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2024]: Sec. 9. (a) As used in this section, "base assessed
37 value" means, subject to subsection (k):
38 (1) the net assessed value of all the tangible property as finally
39 determined for the assessment date immediately preceding the
40 effective date of the allocation provision of the commission's
41 resolution adopted under section 5 or 9.5 of this chapter,
42 notwithstanding the date of the final action taken under section 6
HB 1120—LS 6559/DI 120 51
1 of this chapter; plus
2 (2) to the extent it is not included in subdivision (1), the net
3 assessed value of property that is assessed as residential property
4 under the rules of the department of local government finance,
5 within the airport development zone, as finally determined for the
6 current assessment date.
7 However, subdivision (2) applies only to an airport development zone
8 established after June 30, 1997, and the portion of an airport
9 development zone established before June 30, 1997, that is added to an
10 existing airport development zone.
11 (b) A resolution adopted under section 5 of this chapter and
12 confirmed under section 6 of this chapter must include a provision with
13 respect to the allocation and distribution of property taxes for the
14 purposes and in the manner provided in this section.
15 (c) The allocation provision must:
16 (1) apply to the entire airport development zone; and
17 (2) require that any property tax on taxable tangible property
18 subsequently levied by or for the benefit of any public body
19 entitled to a distribution of property taxes in the airport
20 development zone be allocated and distributed as provided in
21 subsections (d) and (e).
22 (d) Except as otherwise provided in this section:
23 (1) the proceeds of the taxes attributable to the lesser of:
24 (A) the assessed value of the tangible property for the
25 assessment date with respect to which the allocation and
26 distribution is made; or
27 (B) the base assessed value;
28 shall be allocated and, when collected, paid into the funds of the
29 respective taxing units; and
30 (2) the excess of the proceeds of the property taxes imposed for
31 the assessment date with respect to which the allocation and
32 distribution are made that are attributable to taxes imposed after
33 being approved by the voters in a referendum or local public
34 question conducted after April 30, 2010, not otherwise included
35 in subdivision (1) shall be allocated to and, when collected, paid
36 into the funds of the taxing unit for which the referendum or local
37 public question was conducted.
38 (e) All of the property tax proceeds in excess of those described in
39 subsection (d) shall be allocated to the eligible entity for the airport
40 development zone and, when collected, paid into special funds as
41 follows:
42 (1) The commission may determine that a portion of tax proceeds
HB 1120—LS 6559/DI 120 52
1 shall be allocated to a training grant fund to be expended by the
2 commission without appropriation solely for the purpose of
3 reimbursing training expenses incurred by public or private
4 entities in the training of employees for the qualified airport
5 development project.
6 (2) The commission may determine that a portion of tax proceeds
7 shall be allocated to a debt service fund and dedicated to the
8 payment of principal and interest on revenue bonds or a loan
9 contract of the board of aviation commissioners or airport
10 authority for a qualified airport development project, to the
11 payment of leases for a qualified airport development project, or
12 to the payment of principal and interest on bonds issued by an
13 eligible entity to pay for qualified airport development projects in
14 the airport development zone or serving the airport development
15 zone.
16 (3) The commission may determine that a part of the tax proceeds
17 shall be allocated to a project fund and used to pay expenses
18 incurred by the commission for a qualified airport development
19 project that is in the airport development zone or is serving the
20 airport development zone.
21 (4) Except as provided in subsection (f), all remaining tax
22 proceeds after allocations are made under subdivisions (1), (2),
23 and (3) shall be allocated to a project fund and dedicated to the
24 reimbursement of expenditures made by the commission for a
25 qualified airport development project that is in the airport
26 development zone or is serving the airport development zone.
27 (f) Before July 15 of each year, the commission shall do the
28 following:
29 (1) Determine the amount, if any, by which tax proceeds allocated
30 to the project fund in subsection (e)(3) in the following year will
31 exceed the amount necessary to satisfy amounts required under
32 subsection (e).
33 (2) Provide a written notice to the county auditor and the officers
34 who are authorized to fix budgets, tax rates, and tax levies under
35 IC 6-1.1-17-5 for each of the other taxing units that is wholly or
36 partly located within the allocation area. The notice must:
37 (A) state the amount, if any, of excess tax proceeds that the
38 commission has determined may be allocated to the respective
39 taxing units in the manner prescribed in subsection (d)(1); or
40 (B) state that the commission has determined that there are no
41 excess tax proceeds that may be allocated to the respective
42 taxing units in the manner prescribed in subsection (d)(1).
HB 1120—LS 6559/DI 120 53
1 The county auditor shall allocate to the respective taxing units the
2 amount, if any, of excess tax proceeds determined by the
3 commission.
4 (g) When money in the debt service fund and in the project fund is
5 sufficient to pay all outstanding principal and interest (to the earliest
6 date on which the obligations can be redeemed) on revenue bonds
7 issued by the board of aviation commissioners or airport authority for
8 the financing of qualified airport development projects, all lease rentals
9 payable on leases of qualified airport development projects, and all
10 costs and expenditures associated with all qualified airport
11 development projects, money in the debt service fund and in the project
12 fund in excess of those amounts shall be paid to the respective taxing
13 units in the manner prescribed by subsection (d)(1).
14 (h) Property tax proceeds allocable to the debt service fund under
15 subsection (e)(2) must, subject to subsection (g), be irrevocably
16 pledged by the eligible entity for the purpose set forth in subsection
17 (e)(2).
18 (i) Notwithstanding any other law, each assessor shall, upon petition
19 of the commission, reassess the taxable tangible property situated upon
20 or in, or added to, the airport development zone effective on the next
21 assessment date after the petition.
22 (j) Notwithstanding any other law, the assessed value of all taxable
23 tangible property in the airport development zone, for purposes of tax
24 limitation, property tax replacement, and formulation of the budget, tax
25 rate, and tax levy for each political subdivision in which the property
26 is located is the lesser of:
27 (1) the assessed value of the tangible property as valued without
28 regard to this section; or
29 (2) the base assessed value.
30 (k) If the commission confirms, or modifies and confirms, a
31 resolution under section 6 of this chapter and the commission makes
32 either of the filings required under section 6(c) of this chapter after the
33 first anniversary of the effective date of the allocation provision, the
34 auditor of the county in which the airport development zone is located
35 shall compute the base assessed value for the allocation area using the
36 assessment date immediately preceding the later of:
37 (1) the date on which the documents are filed with the county
38 auditor; or
39 (2) the date on which the documents are filed with the department
40 of local government finance.
41 (l) For an airport development zone established after June 30, 2024,
42 "residential property" refers to the assessed value of property that is
HB 1120—LS 6559/DI 120 54
1 allocated to the one percent (1%) homestead land and improvement
2 categories in the county tax and billing software system, along with the
3 residential assessed value as defined for purposes of calculating the
4 rate for the local income tax property tax relief credit designated for
5 residential property under IC 6-3.6-5-6(d)(3).
6 (m) A commission is prohibited from removing a parcel of real
7 property from an existing airport development zone or an existing
8 tax increment financing district, as applicable under this chapter,
9 and subsequently adding the same parcel of real property back into
10 the airport development zone or tax increment financing district
11 during the life of the airport development zone or tax increment
12 financing district.
13 SECTION 18. IC 20-26-12-1, AS AMENDED BY P.L.201-2023,
14 SECTION 163, IS AMENDED TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Except as provided in
16 subsection (b) but notwithstanding any other law, each governing body
17 of a school corporation and each organizer of a charter school shall
18 purchase from a publisher, either individually or through a purchasing
19 cooperative of school corporations, as applicable, the curricular
20 materials selected by the proper local officials, and shall provide at no
21 cost the curricular materials to each student enrolled in the school
22 corporation or charter school. Curricular materials provided to a
23 student under this section remain the property of the governing body of
24 the school corporation or organizer of the charter school.
25 (b) This section does not prohibit a governing body of a school
26 corporation or an organizer of a charter school from assessing and
27 collecting a reasonable fee for lost or significantly damaged curricular
28 materials in accordance with rules established by the state board under
29 subsection (c). Fees collected under this subsection must be deposited
30 in the: separate curricular materials account established under
31 IC 20-40-22-9 for
32 (1) education fund of the school corporation; or
33 (2) education fund of the charter school, or, if the charter
34 school does not have an education fund, the same fund into
35 which state tuition support is deposited for the charter school;
36 in which the student was enrolled at the time the fee was imposed.
37 (c) The state board shall adopt rules under IC 4-22-2, including
38 emergency rules in the manner provided in IC 4-22-2-37.1, to
39 implement this section.
40 SECTION 19. IC 20-26-12-2, AS AMENDED BY P.L.201-2023,
41 SECTION 164, IS AMENDED TO READ AS FOLLOWS
42 [EFFECTIVE JULY 1, 2024]: Sec. 2. (a) A governing body or an
HB 1120—LS 6559/DI 120 55
1 organizer of a charter school may purchase from a publisher any
2 curricular material selected by the proper local officials. The governing
3 body or the organizer of a charter school may not rent the curricular
4 materials to students enrolled in any public school.
5 (b) A governing body may rent curricular materials to students
6 enrolled in any nonpublic school that is located within the attendance
7 unit served by the governing body. An organizer of a charter school
8 may rent curricular materials to students enrolled in any nonpublic
9 school.
10 (c) A governing body or an organizer of a charter school may
11 negotiate the rental rate for the curricular materials rented to any
12 nonpublic school under subsection (b).
13 (d) A governing body shall collect and deposit the amounts received
14 from the rental of curricular materials to a nonpublic school into the
15 curricular materials account, in accordance with IC 20-40-22-9, in
16 equal amounts for each public school of the school corporation. school
17 corporation's education fund.
18 (e) An organizer of a charter school shall deposit all money received
19 from the rental of curricular materials to a nonpublic school into the
20 charter school's curricular materials account described in
21 IC 20-40-22-9. education fund, or, if the charter school does not
22 have an education fund, the same fund into which state tuition
23 support is deposited for the charter school.
24 (f) This section does not limit other laws.
25 SECTION 20. IC 20-28-9-28, AS AMENDED BY P.L.246-2023,
26 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2024]: Sec. 28. (a) Subject to subsection (g), for each school
28 year in a state fiscal year beginning after June 30, 2023, a school
29 corporation shall expend an amount for teacher compensation that is
30 not less than an amount equal to sixty-two percent (62%) of the state
31 tuition support distributed to the school corporation during the state
32 fiscal year. For purposes of determining whether a school corporation
33 has complied with this requirement, the amount a school corporation
34 expends for teacher compensation shall include the amount the school
35 corporation expends for adjunct teachers, supplemental pay for
36 teachers, stipends, and for participating in a special education
37 cooperative or an interlocal agreement or consortium that is directly
38 attributable to the compensation of teachers employed by the
39 cooperative or interlocal agreement or consortium. Teacher benefits
40 include all benefit categories collected by the department for Form 9
41 purposes.
42 (b) If a school corporation determines that the school corporation
HB 1120—LS 6559/DI 120 56
1 cannot comply with the requirement under subsection (a) for a
2 particular school year, the school corporation shall apply for a waiver
3 from the department.
4 (c) The waiver application must include an explanation of the
5 financial challenges, with detailed data, that preclude the school
6 corporation from meeting the requirement under subsection (a) and
7 describe the cost saving measures taken by the school corporation in
8 attempting to meet the requirement in subsection (a). The waiver may
9 also include an explanation of an innovative or efficient approach in
10 delivering instruction that is responsible for the school corporation
11 being unable to meet the requirement under subsection (a).
12 (d) If, after review, the department determines that the school
13 corporation has exhausted all reasonable efforts in attempting to meet
14 the requirement in subsection (a), the department may grant the school
15 corporation a one (1) year exception from the requirement.
16 (e) A school corporation that receives a waiver under this section
17 shall work with the department to develop a plan to identify additional
18 cost saving measures and any other steps that may be taken to allow the
19 school corporation to meet the requirement under subsection (a).
20 (f) A school corporation may not receive more than three (3)
21 waivers under this section.
22 (g) For purposes of determining whether a school corporation
23 has complied with the requirement in subsection (a), distributions
24 from the curricular materials fund established by IC 20-40-22-5
25 that are deposited in a school corporation's education fund in a
26 state fiscal year are not considered to be state tuition support
27 distributed to the school corporation during the state fiscal year.
28 (g) (h) Before November 1, 2022, and before November 1 of each
29 year thereafter, the department shall submit a report to the legislative
30 council in an electronic format under IC 5-14-6 and the state budget
31 committee that contains information as to:
32 (1) the percent and amount that each school corporation expended
33 and the statewide total expended for teacher compensation;
34 (2) the percent and amount that each school corporation expended
35 and statewide total expended for teacher benefits, including
36 health, dental, life insurance, and pension benefits;
37 (3) whether the school corporation met the requirement set forth
38 in subsection (a); and
39 (4) whether the school corporation received a waiver under
40 subsection (d).
41 SECTION 21. IC 20-40-2-3, AS AMENDED BY P.L.244-2017,
42 SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
HB 1120—LS 6559/DI 120 57
1 JULY 1, 2024]: Sec. 3. Distributions of:
2 (1) tuition support; and
3 (2) money for curricular materials;
4 shall be received in the education fund.
5 SECTION 22. IC 20-40-2-4, AS AMENDED BY P.L.201-2023,
6 SECTION 182, IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2024]: Sec. 4. Except as provided in
8 IC 36-1-8-5.1 (school corporation rainy day fund), the education fund
9 of the school corporation or, if applicable, a charter school, shall be
10 used only to pay for expenses:
11 (1) allocated to student instruction and learning under IC 20-42.5;
12 and
13 (2) related to the cost of providing curricular materials.
14 The fund may not be used to pay directly any expenses that are not
15 allocated to student instruction and learning under IC 20-42.5, are not
16 expenses related to the cost of providing curricular materials, or
17 expenses permitted to be paid from the school corporation's or charter
18 school's operations fund.
19 SECTION 23. IC 20-40-2-5.5 IS ADDED TO THE INDIANA
20 CODE AS A NEW SECTION TO READ AS FOLLOWS
21 [EFFECTIVE JULY 1, 2024]: Sec. 5.5. The department may take
22 action, including the establishment of an account code, to track
23 expenditures of money distributed for curricular materials.
24 SECTION 24. IC 20-40-2-6, AS AMENDED BY P.L.201-2023,
25 SECTION 183, IS AMENDED TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2024]: Sec. 6. (a) Each school corporation and,
27 if applicable, charter school, shall make every reasonable effort to
28 transfer not more than fifteen percent (15%) of the total revenue
29 deposited in the school corporation's or, if applicable, charter school's,
30 education fund from the school corporation's or, if applicable, charter
31 school's, education fund to the school corporation's or, if applicable,
32 charter school's, operations fund during a calendar year.
33 (b) Only after the transfer is authorized by the governing body in a
34 public meeting with public notice, money in the education fund may be
35 transferred to the operations fund to cover expenditures that are not
36 allocated to student instruction and learning under IC 20-42.5 or
37 related to the cost of providing curricular materials. The amount
38 transferred from the education fund to the operations fund shall be
39 reported by the school corporation or, if applicable, charter school, to
40 the department. The transfers made during the:
41 (1) first six (6) months of each state fiscal year shall be reported
42 before January 31 of the following year; and
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1 (2) last six (6) months of each state fiscal year shall be reported
2 before July 31 of that year.
3 (c) The report must include information as required by the
4 department and in the form required by the department.
5 (d) The department must post the report submitted under subsection
6 (b) on the department's website.
7 (e) Beginning in 2020, the department shall track for each school
8 corporation or, if applicable, charter school, transfers from the school
9 corporation's or, if applicable, charter school's, education fund to its
10 operations fund for the preceding six (6) month period. Beginning in
11 2021, before March 1 of each year, the department shall compile an
12 excessive education fund transfer list comprised of all school
13 corporations or, if applicable, charter schools, that transferred more
14 than fifteen percent (15%) of the total revenue deposited in the school
15 corporation's or, if applicable, charter school's, education fund from the
16 school corporation's or, if applicable, charter school's, education fund
17 to the school corporation's or, if applicable, charter school's, operations
18 fund during the immediately preceding calendar year. A school
19 corporation or, if applicable, charter school, that is not included on the
20 excessive education fund transfer list is considered to have met the
21 education fund transfer target percentage for the immediately preceding
22 calendar year.
23 SECTION 25. IC 20-40-2-7, AS ADDED BY P.L.244-2017,
24 SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2024]: Sec. 7. (a) On January 1, 2019, the balance, as of
26 December 31, 2018, in the school corporation's general fund shall be
27 transferred to the education fund.
28 (b) Before March 1, 2019, the governing body of a school
29 corporation may transfer to the school corporation's operations fund,
30 from the amounts transferred from the school corporation's general
31 fund under subsection (a), any amounts that are not allocated to student
32 instruction and learning under IC 20-42.5 or related to the cost of
33 providing curricular materials. A school corporation may make a
34 transfer under this section only after complying with section 6 of this
35 chapter, including the requirements for public notice and a public
36 hearing.
37 SECTION 26. IC 20-40-22-9 IS REPEALED [EFFECTIVE JULY
38 1, 2024]. Sec. 9. Each public school shall establish a separate curricular
39 materials account for the purpose of receiving distributions under this
40 chapter, amounts received from the rental of curricular materials to
41 nonpublic schools, and fees collected under IC 20-26-12-1(b) for lost
42 or significantly damaged curricular materials. A public school that
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1 receives a distribution of money from the curricular materials fund
2 under this chapter shall deposit the distributed amount in the public
3 school's curricular materials account. Money in the account may be
4 used only for the costs of curricular materials.
5 SECTION 27. IC 20-40-22-10 IS ADDED TO THE INDIANA
6 CODE AS A NEW SECTION TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) A school maintained by a
8 school corporation that receives a distribution of money from the
9 curricular materials fund under this chapter shall deposit the
10 amount in the education fund of the school corporation that
11 maintains the school. A charter school that receives a distribution
12 of money from the curricular materials fund under this chapter
13 shall deposit the amount in the charter school's education fund, or,
14 if the charter school does not have an education fund, in the same
15 fund into which state tuition support is deposited for the charter
16 school.
17 (b) Money received from the curricular materials fund under
18 this chapter by a public school may be used only for the costs of
19 curricular materials.
20 (c) The department may take action, including the establishment
21 of an account code for the funds into which distributions are
22 deposited under this section, to track expenditures of money
23 distributed for curricular materials.
24 SECTION 28. IC 36-7-14-17.5, AS AMENDED BY P.L.146-2008,
25 SECTION 729, IS AMENDED TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2024]: Sec. 17.5. (a) In addition to the
27 requirements of section 17 of this chapter, if the resolution or plan for
28 an existing redevelopment project area is proposed to be amended in
29 a way that changes:
30 (1) parts of the area that are to be devoted to a public way, levee,
31 sewerage, park, playground, or other public purposes;
32 (2) the proposed use of the land in the area; or
33 (3) requirements for rehabilitation, building requirements,
34 proposed zoning, maximum densities, or similar requirements;
35 the commission must, at least ten (10) days before the public hearing
36 under section 17 of this chapter, send the notice required by section 17
37 of this chapter by first class mail to affected neighborhood associations.
38 (b) In addition to the requirements of section 17 of this chapter, if
39 the resolution or plan for an existing redevelopment project area is
40 proposed to be amended in a way that:
41 (1) enlarges the boundaries of the area; or
42 (2) adds one (1) or more parcels to the list of parcels to be
HB 1120—LS 6559/DI 120 60
1 acquired;
2 the commission must, at least ten (10) days before the public hearing
3 under section 17 of this chapter, send the notice required by section 17
4 of this chapter by first class mail to affected neighborhood associations
5 and to persons owning property that is in the proposed enlargement of
6 the area or that is proposed to be added to the acquisition list. If the
7 enlargement of an area is proposed, notice must also be filed in
8 accordance with section 17(b) of this chapter, and agencies and officers
9 may not take actions prohibited by section 17(b) of this chapter in the
10 proposed enlarged area.
11 (c) The commission may require that neighborhood associations
12 register with the commission. The commission may adopt a rule that
13 requires that a neighborhood association encompass a part of the
14 geographic area included in or proposed to be included in a
15 redevelopment project area, urban renewal area, or economic
16 development area to qualify as an affected neighborhood association.
17 (d) A commission is prohibited from removing a parcel of real
18 property from an existing redevelopment project area or an
19 existing tax increment financing district, as applicable under this
20 chapter, and subsequently adding the same parcel of real property
21 back into the redevelopment project area or tax increment
22 financing district during the life of the redevelopment project area
23 or tax increment financing district.
24 SECTION 29. IC 36-7-14-39, AS AMENDED BY P.L.236-2023,
25 SECTION 179, IS AMENDED TO READ AS FOLLOWS
26 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) As
27 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
HB 1120—LS 6559/DI 120 61
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
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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
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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) This subdivision applies to a fire protection territory
21 established after December 31, 2022. If a unit becomes a
22 participating unit of a fire protection territory that is established
23 after a declaratory resolution is adopted under section 15 of this
24 chapter, the excess of the proceeds of the property taxes
25 attributable to an increase in the property tax rate for the
26 participating unit of a fire protection territory:
27 (A) except as otherwise provided by this subdivision, shall be
28 determined as follows:
29 STEP ONE: Divide the unit's tax rate for fire protection for
30 the year before the establishment of the fire protection
31 territory by the participating unit's tax rate as part of the fire
32 protection territory.
33 STEP TWO: Subtract the STEP ONE amount from one (1).
34 STEP THREE: Multiply the STEP TWO amount by the
35 allocated property tax attributable to the participating unit of
36 the fire protection territory; and
37 (B) to the extent not otherwise included in subdivisions (1)
38 and (3), the amount determined under STEP THREE of clause
39 (A) shall be allocated to and distributed in the form of an
40 allocated property tax revenue pass back to the participating
41 unit of the fire protection territory for the assessment date with
42 respect to which the allocation is made.
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1 However, if the redevelopment commission determines that it is
2 unable to meet its debt service obligations with regards to the
3 allocation area without all or part of the allocated property tax
4 revenue pass back to the participating unit of a fire protection area
5 under this subdivision, then the allocated property tax revenue
6 pass back under this subdivision shall be reduced by the amount
7 necessary for the redevelopment commission to meet its debt
8 service obligations of the allocation area. The calculation under
9 this subdivision must be made by the redevelopment commission
10 in collaboration with the county auditor and the applicable fire
11 protection territory. Any calculation determined according to
12 clause (A) must be submitted to the department of local
13 government finance in the manner prescribed by the department
14 of local government finance. The department of local government
15 finance shall verify the accuracy of each calculation.
16 (3) The excess of the proceeds of the property taxes imposed for
17 the assessment date with respect to which the allocation and
18 distribution is made that are attributable to taxes imposed after
19 being approved by the voters in a referendum or local public
20 question conducted after April 30, 2010, not otherwise included
21 in subdivisions (1) and (2) shall be allocated to and, when
22 collected, paid into the funds of the taxing unit for which the
23 referendum or local public question was conducted.
24 (4) Except as otherwise provided in this section, property tax
25 proceeds in excess of those described in subdivisions (1), (2), and
26 (3) shall be allocated to the redevelopment district and, when
27 collected, paid into an allocation fund for that allocation area that
28 may be used by the redevelopment district only to do one (1) or
29 more of the following:
30 (A) Pay the principal of and interest on any obligations
31 payable solely from allocated tax proceeds which are incurred
32 by the redevelopment district for the purpose of financing or
33 refinancing the redevelopment of that allocation area.
34 (B) Establish, augment, or restore the debt service reserve for
35 bonds payable solely or in part from allocated tax proceeds in
36 that allocation area.
37 (C) Pay the principal of and interest on bonds payable from
38 allocated tax proceeds in that allocation area and from the
39 special tax levied under section 27 of this chapter.
40 (D) Pay the principal of and interest on bonds issued by the
41 unit to pay for local public improvements that are physically
42 located in or physically connected to that allocation area.
HB 1120—LS 6559/DI 120 65
1 (E) Pay premiums on the redemption before maturity of bonds
2 payable solely or in part from allocated tax proceeds in that
3 allocation area.
4 (F) Make payments on leases payable from allocated tax
5 proceeds in that allocation area under section 25.2 of this
6 chapter.
7 (G) Reimburse the unit for expenditures made by it for local
8 public improvements (which include buildings, parking
9 facilities, and other items described in section 25.1(a) of this
10 chapter) that are physically located in or physically connected
11 to that allocation area.
12 (H) Reimburse the unit for rentals paid by it for a building or
13 parking facility that is physically located in or physically
14 connected to that allocation area under any lease entered into
15 under IC 36-1-10.
16 (I) For property taxes first due and payable before January 1,
17 2009, pay all or a part of a property tax replacement credit to
18 taxpayers in an allocation area as determined by the
19 redevelopment commission. This credit equals the amount
20 determined under the following STEPS for each taxpayer in a
21 taxing district (as defined in IC 6-1.1-1-20) that contains all or
22 part of the allocation area:
23 STEP ONE: Determine that part of the sum of the amounts
24 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
25 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
26 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
27 the taxing district.
28 STEP TWO: Divide:
29 (i) that part of each county's eligible property tax
30 replacement amount (as defined in IC 6-1.1-21-2 (before its
31 repeal)) for that year as determined under IC 6-1.1-21-4
32 (before its repeal) that is attributable to the taxing district;
33 by
34 (ii) the STEP ONE sum.
35 STEP THREE: Multiply:
36 (i) the STEP TWO quotient; times
37 (ii) the total amount of the taxpayer's taxes (as defined in
38 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
39 that have been allocated during that year to an allocation
40 fund under this section.
41 If not all the taxpayers in an allocation area receive the credit
42 in full, each taxpayer in the allocation area is entitled to
HB 1120—LS 6559/DI 120 66
1 receive the same proportion of the credit. A taxpayer may not
2 receive a credit under this section and a credit under section
3 39.5 of this chapter (before its repeal) in the same year.
4 (J) Pay expenses incurred by the redevelopment commission
5 for local public improvements that are in the allocation area or
6 serving the allocation area. Public improvements include
7 buildings, parking facilities, and other items described in
8 section 25.1(a) of this chapter.
9 (K) Reimburse public and private entities for expenses
10 incurred in training employees of industrial facilities that are
11 located:
12 (i) in the allocation area; and
13 (ii) on a parcel of real property that has been classified as
14 industrial property under the rules of the department of local
15 government finance.
16 However, the total amount of money spent for this purpose in
17 any year may not exceed the total amount of money in the
18 allocation fund that is attributable to property taxes paid by the
19 industrial facilities described in this clause. The
20 reimbursements under this clause must be made within three
21 (3) years after the date on which the investments that are the
22 basis for the increment financing are made.
23 (L) Pay the costs of carrying out an eligible efficiency project
24 (as defined in IC 36-9-41-1.5) within the unit that established
25 the redevelopment commission. However, property tax
26 proceeds may be used under this clause to pay the costs of
27 carrying out an eligible efficiency project only if those
28 property tax proceeds exceed the amount necessary to do the
29 following:
30 (i) Make, when due, any payments required under clauses
31 (A) through (K), including any payments of principal and
32 interest on bonds and other obligations payable under this
33 subdivision, any payments of premiums under this
34 subdivision on the redemption before maturity of bonds, and
35 any payments on leases payable under this subdivision.
36 (ii) Make any reimbursements required under this
37 subdivision.
38 (iii) Pay any expenses required under this subdivision.
39 (iv) Establish, augment, or restore any debt service reserve
40 under this subdivision.
41 (M) Expend money and provide financial assistance as
42 authorized in section 12.2(a)(27) of this chapter.
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1 (N) Expend revenues that are allocated for police and fire
2 services on both capital expenditures and operating
3 expenses as authorized in section 12.2(a)(28) of this
4 chapter.
5 The allocation fund may not be used for operating expenses of the
6 commission.
7 (5) 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 (4), plus
16 the amount necessary for other purposes described in
17 subdivision (4).
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 (4) or lessors under
40 section 25.3 of this chapter.
41 (C) If:
42 (i) the amount of excess assessed value determined by the
HB 1120—LS 6559/DI 120 68
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 (4); plus
5 (ii) the amount necessary for other purposes described in
6 subdivision (4);
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 (6) Notwithstanding subdivision (5), 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 (5)(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 (4) for the project; plus
28 (B) the amount necessary for other purposes described in
29 subdivision (4) 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
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1 under subsection (b)(4) may, subject to subsection (b)(5), be
2 irrevocably pledged by the redevelopment district for payment as set
3 forth in subsection (b)(4).
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)(4) shall establish an allocation fund for the purposes
21 specified in subsection (b)(4) 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), (b)(2), and (b)(3) from property located in the enterprise zone
26 that exceeds the amount sufficient for the purposes specified in
27 subsection (b)(4) for the year. The amount sufficient for purposes
28 specified in subsection (b)(4) for the year shall be determined based on
29 the pro rata portion of such current property tax proceeds from the part
30 of the enterprise zone that is within the allocation area as compared to
31 all such current property tax proceeds derived from the allocation area.
32 A unit that has no obligations, bonds, or leases payable from allocated
33 tax proceeds under subsection (b)(4) shall establish a special zone fund
34 and deposit all the property tax proceeds in excess of those described
35 in subsection (b)(1), (b)(2), and (b)(3) in the fund derived from
36 property tax proceeds in excess of those described in subsection (b)(1),
37 (b)(2), and (b)(3) from property located in the enterprise zone. The unit
38 that creates the special zone fund shall use the fund (based on the
39 recommendations of the urban enterprise association) for programs in
40 job training, job enrichment, and basic skill development that are
41 designed to benefit residents and employers in the enterprise zone or
42 other purposes specified in subsection (b)(4), except that where
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1 reference is made in subsection (b)(4) to allocation area it shall refer
2 for purposes of payments from the special zone fund only to that part
3 of the allocation area that is also located in the enterprise zone. Those
4 programs shall reserve at least one-half (1/2) of their enrollment in any
5 session for 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 under IC 6-1.1-4-4.5, the department of
15 local government finance shall adjust the base assessed value one (1)
16 time to neutralize any effect of the annual adjustment on the property
17 tax proceeds allocated to the redevelopment district under this section.
18 However, the adjustments under this subsection:
19 (1) may not include the effect of phasing in assessed value due to
20 property tax abatements under IC 6-1.1-12.1;
21 (2) may not produce less property tax proceeds allocable to the
22 redevelopment district under subsection (b)(4) than would
23 otherwise have been received if the reassessment under the
24 reassessment plan or the annual adjustment had not occurred; and
25 (3) may decrease base assessed value only to the extent that
26 assessed values in the allocation area have been decreased due to
27 annual adjustments or the reassessment under the reassessment
28 plan.
29 Assessed value increases attributable to the application of an abatement
30 schedule under IC 6-1.1-12.1 may not be included in the base assessed
31 value of an allocation area. The department of local government
32 finance may prescribe procedures for county and township officials to
33 follow to assist the department in making the adjustments.
34 (i) The allocation deadline referred to in subsection (b) is
35 determined in the following manner:
36 (1) The initial allocation deadline is December 31, 2011.
37 (2) Subject to subdivision (3), the initial allocation deadline and
38 subsequent allocation deadlines are automatically extended in
39 increments of five (5) years, so that allocation deadlines
40 subsequent to the initial allocation deadline fall on December 31,
41 2016, and December 31 of each fifth year thereafter.
42 (3) At least one (1) year before the date of an allocation deadline
HB 1120—LS 6559/DI 120 71
1 determined under subdivision (2), the general assembly may enact
2 a law that:
3 (A) terminates the automatic extension of allocation deadlines
4 under subdivision (2); and
5 (B) specifically designates a particular date as the final
6 allocation deadline.
7 (j) If a redevelopment commission adopts a declaratory resolution
8 or an amendment to a declaratory resolution that contains an allocation
9 provision and the redevelopment commission makes either of the
10 filings required under section 17(e) of this chapter after the first
11 anniversary of the effective date of the allocation provision, the auditor
12 of the county in which the unit is located shall compute the base
13 assessed value for the allocation area using the assessment date
14 immediately preceding the later of:
15 (1) the date on which the documents are filed with the county
16 auditor; or
17 (2) the date on which the documents are filed with the department
18 of local government finance.
19 (k) For an allocation area established after June 30, 2024,
20 "residential property" refers to the assessed value of property that is
21 allocated to the one percent (1%) homestead land and improvement
22 categories in the county tax and billing software system, along with the
23 residential assessed value as defined for purposes of calculating the
24 rate for the local income tax property tax relief credit designated for
25 residential property under IC 6-3.6-5-6(d)(3).
26 SECTION 30. IC 36-7-15.1-10.5, AS AMENDED BY
27 P.L.146-2008, SECTION 748, IS AMENDED TO READ AS
28 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10.5. (a) In addition to
29 the requirements of section 10 of this chapter, if the resolution or plan
30 for an existing redevelopment project area or urban renewal area is
31 proposed to be amended in a way that changes:
32 (1) parts of the area that are to be devoted to a public way, levee,
33 sewerage, park, playground, or other public purpose;
34 (2) the proposed use of the land in the area; or
35 (3) requirements for rehabilitation, building requirements,
36 proposed zoning, maximum densities, or similar requirements;
37 the commission must, at least ten (10) days before the public hearing
38 under section 10 of this chapter, send the notice required by section 10
39 of this chapter by first class mail to affected neighborhood associations.
40 (b) In addition to the requirements of section 10 of this chapter, if
41 the resolution or plan for an existing redevelopment project area or
42 urban renewal area is proposed to be amended in a way that:
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1 (1) enlarges the boundaries of the area; or
2 (2) adds one (1) or more parcels to the list of parcels to be
3 acquired;
4 the commission must, at least ten (10) days before the public hearing
5 under section 10 of this chapter, send the notice required by section 10
6 of this chapter by first class mail to affected neighborhood associations
7 and to persons owning property that is in the proposed enlargement of
8 the area or that is proposed to be added to the acquisition list. If the
9 enlargement of an area is proposed, notice must also be filed in
10 accordance with section 10(b) of this chapter, and agencies and officers
11 may not take actions prohibited by section 10(b) in the proposed
12 enlarged area.
13 (c) The commission may require that neighborhood associations
14 register with the commission. The commission may adopt a rule that
15 requires that a neighborhood association encompass a part of the
16 geographic area included in or proposed to be included in a
17 redevelopment project area, urban renewal area, or economic
18 development area to qualify as an affected neighborhood association.
19 (d) A commission is prohibited from removing a parcel of real
20 property from an existing redevelopment project area or urban
21 renewal area or an existing tax increment financing district, as
22 applicable under this chapter, and subsequently adding the same
23 parcel of real property back into the redevelopment project area,
24 urban renewal area, or tax increment financing district during the
25 life of the redevelopment project area, urban renewal area, or tax
26 increment financing district.
27 SECTION 31. IC 36-7-30-13, AS AMENDED BY P.L.257-2019,
28 SECTION 136, IS AMENDED TO READ AS FOLLOWS
29 [EFFECTIVE JULY 1, 2024]: Sec. 13. (a) The reuse authority must
30 conduct a public hearing before amending a resolution or plan for a
31 military base reuse area. The reuse authority shall give notice of the
32 hearing in accordance with IC 5-3-1. The notice must do the following:
33 (1) Set forth the substance of the proposed amendment.
34 (2) State the time and place where written remonstrances against
35 the proposed amendment may be filed.
36 (3) Set forth the time and place of the hearing.
37 (4) State that the reuse authority will hear any person who has
38 filed a written remonstrance during the filing period set forth in
39 subdivision (2).
40 (b) For the purposes of this section, the consolidation of areas is not
41 considered the enlargement of the boundaries of an area.
42 (c) If the reuse authority proposes to amend a resolution or plan, the
HB 1120—LS 6559/DI 120 73
1 military base reuse authority is not required to have evidence or make
2 findings that were required for the establishment of the original
3 military base reuse area. However, the reuse authority must make the
4 following findings before approving the amendment:
5 (1) The amendment is reasonable and appropriate when
6 considered in relation to the original resolution or plan and the
7 purposes of this chapter.
8 (2) The resolution or plan, with the proposed amendment,
9 conforms to the comprehensive plan for the unit.
10 (d) Notwithstanding subsections (a) and (c), if the resolution or plan
11 is proposed to be amended in a way that enlarges the original
12 boundaries of the area by more than twenty percent (20%), the reuse
13 authority must use the procedure provided for the original
14 establishment of areas and must comply with sections 10 through 12 of
15 this chapter.
16 (e) At the hearing on the amendments, the reuse authority shall
17 consider written remonstrances that are filed. The action of the reuse
18 authority on the amendment is final and conclusive, except that an
19 appeal of the reuse authority's action may be taken under section 14 of
20 this chapter.
21 (f) If the reuse authority confirms, or modifies and confirms, the
22 resolution and the resolution includes a provision establishing or
23 amending an allocation provision under section 25 of this chapter, the
24 reuse authority shall file a copy of the resolution with both the auditor
25 of the county in which the proposed project is located and the
26 department of local government finance, together with any supporting
27 documents that are relevant to the computation of assessed values in
28 the allocation area, within thirty (30) days after the date on which the
29 reuse authority takes final action on the resolution.
30 (g) A reuse authority is prohibited from removing a parcel of
31 real property from an existing military base reuse area or an
32 existing tax increment financing district, as applicable under this
33 chapter, and subsequently adding the same parcel of real property
34 back into the military base reuse area or tax increment financing
35 district during the life of the military base reuse area or tax
36 increment financing district.
37 SECTION 32. IC 36-7-30.5-18, AS AMENDED BY P.L.257-2019,
38 SECTION 140, IS AMENDED TO READ AS FOLLOWS
39 [EFFECTIVE JULY 1, 2024]: Sec. 18. (a) The development authority
40 must conduct a public hearing before amending a resolution or plan for
41 a military base development area. The development authority shall give
42 notice of the hearing in accordance with IC 5-3-1. The notice must do
HB 1120—LS 6559/DI 120 74
1 the following:
2 (1) Set forth the substance of the proposed amendment.
3 (2) State the time and place where written remonstrances against
4 the proposed amendment may be filed.
5 (3) Set forth the date, time, and place of the hearing.
6 (4) State that the development authority will hear any person who
7 has filed a written remonstrance during the filing period set forth
8 in subdivision (2).
9 (b) For the purposes of this section, the consolidation of areas is not
10 considered the enlargement of the boundaries of an area.
11 (c) If the development authority proposes to amend a resolution or
12 plan, the development authority is not required to have evidence or
13 make findings that were required for the establishment of the original
14 military base development area. However, the development authority
15 must make the following findings before approving the amendment:
16 (1) The amendment is reasonable and appropriate when
17 considered in relation to the original resolution or plan and the
18 purposes of this chapter.
19 (2) The resolution or plan, with the proposed amendment,
20 conforms to the comprehensive plan for an affected unit.
21 (d) Notwithstanding subsections (a) and (c), if the resolution or plan
22 is proposed to be amended in a way that enlarges the original
23 boundaries of the area by more than twenty percent (20%), the
24 development authority must use the procedure provided for the original
25 establishment of areas and must comply with sections 16 through 17 of
26 this chapter.
27 (e) At the hearing on the amendments, the development authority
28 shall consider written remonstrances that are filed. The action of the
29 development authority on the amendment is final and conclusive,
30 except that an appeal of the development authority's action may be
31 taken under section 19 of this chapter.
32 (f) If the development authority confirms, or modifies and confirms,
33 the resolution and the resolution includes a provision establishing or
34 amending an allocation provision under section 30 of this chapter, the
35 development authority shall file a copy of the resolution with both the
36 auditor of the county in which the proposed project is located and the
37 department of local government finance, together with any supporting
38 documents that are relevant to the computation of assessed values in
39 the allocation area, within thirty (30) days after the date on which the
40 development authority takes final action on the resolution.
41 (g) A development authority is prohibited from removing a
42 parcel of real property from an existing military base development
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1 area or an existing tax increment financing district, as applicable
2 under this chapter, and subsequently adding the same parcel of
3 real property back into the military base development area or tax
4 increment financing district during the life of the military base
5 development area or tax increment financing district.
6 SECTION 33. IC 36-7-32-15, AS AMENDED BY P.L.257-2019,
7 SECTION 144, IS AMENDED TO READ AS FOLLOWS
8 [EFFECTIVE JULY 1, 2024]: Sec. 15. (a) Subject to the approval of
9 the legislative body of the unit that established the redevelopment
10 commission, the redevelopment commission may adopt a resolution
11 designating a certified technology park as an allocation area for
12 purposes of the allocation and distribution of property taxes.
13 (b) After adoption of the resolution under subsection (a), the
14 redevelopment commission shall:
15 (1) publish notice of the adoption and substance of the resolution
16 in accordance with IC 5-3-1; and
17 (2) file the following information with each taxing unit that has
18 authority to levy property taxes in the geographic area where the
19 certified technology park is located:
20 (A) A copy of the notice required by subdivision (1).
21 (B) A statement disclosing the impact of the certified
22 technology park, including the following:
23 (i) The estimated economic benefits and costs incurred by
24 the certified technology park, as measured by increased
25 employment and anticipated growth of real property
26 assessed values.
27 (ii) The anticipated impact on tax revenues of each taxing
28 unit.
29 The notice must state the general boundaries of the certified technology
30 park and must state that written remonstrances may be filed with the
31 redevelopment commission until the time designated for the hearing.
32 The notice must also name the place, date, and time when the
33 redevelopment commission will receive and hear remonstrances and
34 objections from persons interested in or affected by the proceedings
35 pertaining to the proposed allocation area and will determine the public
36 utility and benefit of the proposed allocation area. The commission
37 shall file the information required by subdivision (2) with the officers
38 of the taxing unit who are authorized to fix budgets, tax rates, and tax
39 levies under IC 6-1.1-17-5 at least ten (10) days before the date of the
40 public hearing. All persons affected in any manner by the hearing,
41 including all taxpayers within the taxing district of the redevelopment
42 commission, shall be considered notified of the pendency of the
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1 hearing and of subsequent acts, hearings, adjournments, and orders of
2 the redevelopment commission affecting the allocation area if the
3 redevelopment commission gives the notice required by this section.
4 (c) At the hearing, which may be recessed and reconvened
5 periodically, the redevelopment commission shall hear all persons
6 interested in the proceedings and shall consider all written
7 remonstrances and objections that have been filed. After considering
8 the evidence presented, the redevelopment commission shall take final
9 action determining the public utility and benefit of the proposed
10 allocation area confirming, modifying and confirming, or rescinding
11 the resolution. The final action taken by the redevelopment commission
12 shall be recorded and is final and conclusive, except that an appeal may
13 be taken in the manner prescribed by section 16 of this chapter.
14 (d) If the redevelopment commission confirms, or modifies and
15 confirms, the resolution, the redevelopment commission shall file a
16 copy of the resolution with both the auditor of the county in which the
17 certified technology park is located and the department of local
18 government finance, together with any supporting documents that are
19 relevant to the computation of assessed values in the allocation area,
20 within thirty (30) days after the date on which the redevelopment
21 commission takes final action on the resolution.
22 (e) A redevelopment commission is prohibited from removing
23 a parcel of real property from an existing certified technology park
24 or an existing tax increment financing district, as applicable under
25 this chapter, and subsequently adding the same parcel of real
26 property back into the certified technology park or tax increment
27 financing district during the life of the certified technology park or
28 tax increment financing district.
29 SECTION 34. IC 36-8-13-4, AS AMENDED BY P.L.236-2023,
30 SECTION 203, IS AMENDED TO READ AS FOLLOWS
31 [EFFECTIVE JULY 1, 2024]: Sec. 4. (a) Each township shall annually
32 establish either:
33 (1) a township firefighting and emergency services fund which is
34 to be used by the township for the payment of costs attributable
35 to providing fire protection or emergency services under the
36 methods prescribed in section 3 of this chapter and for no other
37 purposes; or
38 (2) two (2) separate funds consisting of:
39 (A) a township firefighting fund that is to be used by the
40 township for the payment of costs attributable to providing fire
41 protection under the methods prescribed in section 3 of this
42 chapter and for no other purposes; and
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1 (B) a township emergency services fund that is to be used by
2 the township for the payment of costs attributable to providing
3 emergency services under the methods prescribed in section 3
4 of this chapter and for no other purposes.
5 The money in the funds described in either subdivision (1) or (2) may
6 be paid out by the township executive with the consent of the township
7 legislative body.
8 (b) If a township transitions from a single township firefighting
9 and emergency services fund under subsection (a)(1) to two (2)
10 separate funds as allowed under subsection (a)(2), the township
11 legislative body shall approve a transfer of the remaining cash
12 balance in the township firefighting and emergency services fund
13 to the two (2) new separate funds. As part of the transfer under
14 this subsection, the legislative body shall determine the amounts of
15 the remaining cash balance that will be attributable to the
16 township firefighting fund and the township emergency services
17 fund.
18 (b) (c) Each township may levy, for each year, a tax for either:
19 (1) the township firefighting and emergency services fund
20 described in subsection (a)(1); or
21 (2) both:
22 (A) the township firefighting fund; and
23 (B) the township emergency services fund;
24 described in subsection (a)(2).
25 Other than a township providing fire protection or emergency services
26 or both to municipalities in the township under section 3(b) or 3(c) of
27 this chapter, the tax levy is on all taxable real and personal property in
28 the township outside the corporate boundaries of municipalities.
29 Subject to the levy limitations contained in IC 6-1.1-18.5, the township
30 firefighting and emergency services levy is to be in an amount
31 sufficient to pay costs attributable to fire protection and emergency
32 services that are not paid from other revenues available to the fund. If
33 a township establishes a township firefighting fund and a township
34 emergency services fund described in subdivision (2), the combined
35 levies are to be an amount sufficient to pay costs attributable to fire
36 protection and emergency services. However, fire protection services
37 may be paid only from the township firefighting fund and emergency
38 services may be paid only from the township emergency services fund,
39 and each fund may pay costs attributable to the respective fund for
40 services that are not paid from other revenues available to either
41 applicable fund. The tax rate and levy for a levy described in this
42 subsection shall be established in accordance with the procedures set
HB 1120—LS 6559/DI 120 78
1 forth in IC 6-1.1-17.
2 (c) (d) In addition to the tax levy and service charges received under
3 IC 36-8-12-13 and IC 36-8-12-16, the executive may accept donations
4 to the township for the purpose of firefighting and other emergency
5 services and shall place them in the township firefighting and
6 emergency services fund established under subsection (a)(1), or if
7 applicable, the township firefighting fund established under subsection
8 (a)(2)(A) if the purpose of the donation is for firefighting, or in the
9 township emergency services fund established under subsection
10 (a)(2)(B) if the purpose of the donation is for emergency services,
11 keeping an accurate record of the sums received. A person may also
12 donate partial payment of any purchase of firefighting or other
13 emergency services equipment made by the township.
14 (d) (e) If a fire department serving a township dispatches fire
15 apparatus or personnel to a building or premises in the township in
16 response to:
17 (1) an alarm caused by improper installation or improper
18 maintenance; or
19 (2) a drill or test, if the fire department is not previously notified
20 that the alarm is a drill or test;
21 the township may impose a fee or service charge upon the owner of the
22 property. However, if the owner of property that constitutes the owner's
23 residence establishes that the alarm is under a maintenance contract
24 with an alarm company and that the alarm company has been notified
25 of the improper installation or maintenance of the alarm, the alarm
26 company is liable for the payment of the fee or service charge.
27 (e) (f) The amount of a fee or service charge imposed under
28 subsection (d) (e) shall be determined by the township legislative body.
29 All money received by the township from the fee or service charge
30 must be deposited in the township's firefighting and emergency
31 services fund or the township's firefighting fund.
32 SECTION 35. IC 36-8-13-4.7, AS AMENDED BY P.L.236-2023,
33 SECTION 206, IS AMENDED TO READ AS FOLLOWS
34 [EFFECTIVE JULY 1, 2024]: Sec. 4.7. (a) For a township that elects
35 to have the township provide fire protection and emergency services
36 under section 3(c) of this chapter, the department of local government
37 finance shall adjust the township's maximum permissible levy
38 described in section 4(b)(1) or 4(b)(2) 4(c)(1) or 4(c)(2) of this
39 chapter, as applicable, in the year following the year in which the
40 change is elected, as determined under IC 6-1.1-18.5-3, to reflect the
41 change from providing fire protection or emergency services under a
42 contract between the municipality and the township to allowing the
HB 1120—LS 6559/DI 120 79
1 township to impose a property tax levy on the taxable property located
2 within the corporate boundaries of each municipality. For the ensuing
3 calendar year, the township's maximum permissible property tax levy
4 described in section 4(b)(1) 4(c)(1) of this chapter, or the combined
5 levies described in section 4(b)(2) 4(c)(2) of this chapter, which is
6 considered a single levy for purposes of this section, shall be increased
7 by the product of:
8 (1) one and five-hundredths (1.05); multiplied by
9 (2) the amount the township contracted or billed to receive,
10 regardless of whether the amount was collected:
11 (A) in the year in which the change is elected; and
12 (B) as fire protection or emergency service payments from the
13 municipalities or residents of the municipalities covered by the
14 election under section 3(c) of this chapter.
15 The maximum permissible levy for a general fund or other fund of a
16 municipality covered by the election under section 3(c) of this chapter
17 shall be reduced for the ensuing calendar year to reflect the change to
18 allowing the township to impose a property tax levy on the taxable
19 property located within the corporate boundaries of the municipality.
20 The total reduction in the maximum permissible levies for all electing
21 municipalities must equal the amount that the maximum permissible
22 levy for the township described in section 4(b)(1) 4(c)(1) of this
23 chapter or the combined levies described in section 4(b)(2) 4(c)(2) of
24 this chapter, as applicable, is increased under this subsection for
25 contracts or billings, regardless of whether the amount was collected,
26 less the amount actually paid from sources other than property tax
27 revenue.
28 (b) For purposes of determining a township's and each
29 municipality's maximum permissible ad valorem property tax levy
30 under IC 6-1.1-18.5-3 for years following the first year after the year in
31 which the change is elected, a township's and each municipality's
32 maximum permissible ad valorem property tax levy is the levy (or in
33 the case of a township electing to establish levies described in section
34 4(b)(2) 4(c)(2) of this chapter, the combined levies) after the
35 adjustment made under subsection (a).
36 (c) The township may use the amount of a maximum permissible
37 property tax levy (or in the case of a township electing to establish
38 levies described in section 4(b)(2) 4(c)(2) of this chapter, the combined
39 levies) computed under this section in setting budgets and property tax
40 levies for any year in which the election in section 3(c) of this chapter
41 is in effect.
42 (d) Section 4.6 of this chapter does not apply to a property tax levy
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1 or a maximum property tax levy subject to this section.
2 SECTION 36. [EFFECTIVE UPON PASSAGE] (a) As used in this
3 SECTION, "public school" has the meaning set forth in
4 IC 20-40-22-4.
5 (b) Any balance in a public school's curricular materials
6 account established under IC 20-40-22-9, as repealed by this act,
7 shall be transferred to:
8 (1) in the case of a school maintained by a school corporation,
9 the education fund of the school corporation that maintains
10 the school; and
11 (2) in the case of a charter school, the education fund of the
12 charter school, or, if the charter school does not have an
13 education fund, the same fund into which state tuition support
14 is deposited for the charter school;
15 on June 30, 2024.
16 (c) This SECTION expires July 1, 2024.
17 SECTION 37. An emergency is declared for this act.
HB 1120—LS 6559/DI 120 81
COMMITTEE REPORT
Mr. Speaker: Your Committee on Ways and Means, to which was
referred House Bill 1120, has had the same under consideration and
begs leave to report the same back to the House with the
recommendation that said bill be amended as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 6-1.1-4-44.5, AS ADDED BY P.L.249-2015,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 44.5. (a) This section applies to a real
property assessment:
(1) for the 2015 assessment date and assessment dates thereafter;
and
(2) that includes land classified as residential excess land.
(b) A county assessor may shall apply throughout the county an
influence factor to recognize the reduced acreage value of residential
excess land. The influence factor may be applied on a per acre basis or
based on acreage categories. The influence factor may not be used as
an alternative to determining the value of farmland as provided in
section 13 of this chapter.
(c) The influence factor required under subsection (b) must
reduce the base land value of residential excess land by no less than
fifty percent (50%).
(d) Notwithstanding subsection (c), the assessed value per acre
of the residential excess land may not be less than the base rate of
agricultural land (as defined in IC 6-1.1-20.6-0.5) unless a different
classification of land with a lower assessed value per acre applies.".
Page 3, delete lines 32 through 42, begin a new paragraph and
insert:
"SECTION 3. IC 6-1.1-12-37, AS AMENDED BY P.L.236-2023,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 37. (a) The following definitions apply
throughout this section:
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual
uses as the individual's residence, limited to a single house and
a single garage, regardless of whether the single garage is
attached to the single house or detached from the single house.
(B) A mobile home that is not assessed as real property that an
individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property
that an individual uses as the individual's residence.
HB 1120—LS 6559/DI 120 82
(2) "Homestead" means an individual's principal place of
residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a contract recorded in the
county recorder's office, or evidenced by a memorandum of
contract recorded in the county recorder's office under
IC 36-2-11-20, that provides that the individual is to pay the
property taxes on the residence, and that obligates the owner
to convey title to the individual upon completion of all of the
individual's contract obligations;
(iii) the individual is entitled to occupy as a
tenant-stockholder (as defined in 26 U.S.C. 216) of a
cooperative housing corporation (as defined in 26 U.S.C.
216); or
(iv) is a residence described in section 17.9 of this chapter
that is owned by a trust if the individual is an individual
described in section 17.9 of this chapter; and
(C) that consists of a dwelling and includes up to one (1) acre
of land immediately surrounding that dwelling, and any of the
following improvements:
(i) Any number of decks, patios, gazebos, or pools.
(ii) One (1) additional building that is not part of the
dwelling if the building is predominantly used for a
residential purpose and is not used as an investment property
or as a rental property.
(iii) One (1) additional residential yard structure other than
a deck, patio, gazebo, or pool.
The term does not include property owned by a corporation,
partnership, limited liability company, or other entity not
described in this subdivision.
(b) Each year a homestead is eligible for a standard deduction from
the assessed value of the homestead for an assessment date. Except as
provided in subsection (m), (n), the deduction provided by this section
applies to property taxes first due and payable for an assessment date
only if an individual has an interest in the homestead described in
subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
HB 1120—LS 6559/DI 120 83
If more than one (1) individual or entity qualifies property as a
homestead under subsection (a)(2)(B) for an assessment date, only one
(1) standard deduction from the assessed value of the homestead may
be applied for the assessment date. Subject to subsection (c), the
auditor of the county shall record and make the deduction for the
individual or entity qualifying for the deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) sixty percent (60%) of the assessed value of the real property,
mobile home not assessed as real property, or manufactured home
not assessed as real property; or
(2) for assessment dates:
(A) before January 1, 2023, forty-five thousand dollars
($45,000); or
(B) after December 31, 2022, forty-eight thousand dollars
($48,000).
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement on
forms prescribed by the department of local government finance, with
the auditor of the county in which the homestead is located. The
statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
HB 1120—LS 6559/DI 120 84
names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead
under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is not an individual; and
(4) either:
(A) the last five (5) digits of the applicant's Social Security
number and the last five (5) digits of the Social Security
number of the applicant's spouse (if any); or
(B) if the applicant or the applicant's spouse (if any) does not
have a Social Security number, any of the following for that
individual:
(i) The last five (5) digits of the individual's driver's license
number.
(ii) The last five (5) digits of the individual's state
identification card number.
(iii) The last five (5) digits of a preparer tax identification
number that is obtained by the individual through the
Internal Revenue Service of the United States.
(iv) If the individual does not have a driver's license, a state
identification card, or an Internal Revenue Service preparer
tax identification number, the last five (5) digits of a control
number that is on a document issued to the individual by the
United States government.
If a form or statement provided to the county auditor under this section,
IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
part or all of the Social Security number of a party or other number
described in subdivision (4)(B) of a party, the telephone number and
the Social Security number or other number described in subdivision
(4)(B) included are confidential. The statement may be filed in person
or by mail. If the statement is mailed, the mailing must be postmarked
on or before the last day for filing. The statement applies for that first
year and any succeeding year for which the deduction is allowed. To
obtain the deduction for a desired calendar year in which property taxes
are first due and payable, the statement must be completed and dated
in the immediately preceding calendar year and filed with the county
HB 1120—LS 6559/DI 120 85
auditor on or before January 5 of the calendar year in which the
property taxes are first due and payable.
(f) To obtain the deduction for a desired calendar year under
this section in which property taxes are first due and payable, the
individual desiring to claim the deduction must do the following as
applicable:
(1) Complete, date, and file the certified statement described
in subsection (e) on or before January 15 of the calendar year
in which the property taxes are first due and payable.
(2) Satisfy any recording requirements on or before January
15 of the calendar year in which the property taxes are first
due and payable for a homestead described in subsection
(a)(2).
(f) (g) Except as provided in subsection (k), (l), if a person who is
receiving, or seeks to receive, the deduction provided by this section in
the person's name:
(1) changes the use of the individual's property so that part or all
of the property no longer qualifies for the deduction under this
section; or
(2) is not eligible for a deduction under this section because the
person is already receiving:
(A) a deduction under this section in the person's name as an
individual or a spouse; or
(B) a deduction under the law of another state that is
equivalent to the deduction provided by this section;
the person must file a certified statement with the auditor of the county,
notifying the auditor of the person's ineligibility, not more than sixty
(60) days after the date of the change in eligibility. A person who fails
to file the statement required by this subsection may, under
IC 6-1.1-36-17, be liable for any additional taxes that would have been
due on the property if the person had filed the statement as required by
this subsection plus a civil penalty equal to ten percent (10%) of the
additional taxes due. The civil penalty imposed under this subsection
is in addition to any interest and penalties for a delinquent payment that
might otherwise be due. One percent (1%) of the total civil penalty
collected under this subsection shall be transferred by the county to the
department of local government finance for use by the department in
establishing and maintaining the homestead property data base under
subsection (i) (j) and, to the extent there is money remaining, for any
other purposes of the department. This amount becomes part of the
property tax liability for purposes of this article.
(g) (h) The department of local government finance may adopt rules
HB 1120—LS 6559/DI 120 86
or guidelines concerning the application for a deduction under this
section.
(h) (i) This subsection does not apply to property in the first year for
which a deduction is claimed under this section if the sole reason that
a deduction is claimed on other property is that the individual or
married couple maintained a principal residence at the other property
on the assessment date in the same year in which an application for a
deduction is filed under this section or, if the application is for a
homestead that is assessed as personal property, on the assessment date
in the immediately preceding year and the individual or married couple
is moving the individual's or married couple's principal residence to the
property that is the subject of the application. Except as provided in
subsection (k), (l), the county auditor may not grant an individual or a
married couple a deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(i) (j) The department of local government finance shall provide
secure access to county auditors to a homestead property data base that
includes access to the homestead owner's name and the numbers
required from the homestead owner under subsection (e)(4) for the sole
purpose of verifying whether an owner is wrongly claiming a deduction
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit
data on deductions applicable to the current tax year on or before
March 15 of each year in a manner prescribed by the department of
local government finance.
(j) (k) A county auditor may require an individual to provide
evidence proving that the individual's residence is the individual's
principal place of residence as claimed in the certified statement filed
under subsection (e). The county auditor may limit the evidence that an
individual is required to submit to a state income tax return, a valid
driver's license, or a valid voter registration card showing that the
residence for which the deduction is claimed is the individual's
principal place of residence. The county auditor may not deny an
application filed under section 44 of this chapter because the applicant
does not have a valid driver's license or state identification card with
the address of the homestead property. The department of local
government finance shall work with county auditors to develop
procedures to determine whether a property owner that is claiming a
standard deduction or homestead credit is not eligible for the standard
HB 1120—LS 6559/DI 120 87
deduction or homestead credit because the property owner's principal
place of residence is outside Indiana.
(k) (l) A county auditor shall grant an individual a deduction under
this section regardless of whether the individual and the individual's
spouse claim a deduction on two (2) different applications and each
application claims a deduction for different property if the property
owned by the individual's spouse is located outside Indiana and the
individual files an affidavit with the county auditor containing the
following information:
(1) The names of the county and state in which the individual's
spouse claims a deduction substantially similar to the deduction
allowed by this section.
(2) A statement made under penalty of perjury that the following
are true:
(A) That the individual and the individual's spouse maintain
separate principal places of residence.
(B) That neither the individual nor the individual's spouse has
an ownership interest in the other's principal place of
residence.
(C) That neither the individual nor the individual's spouse has,
for that same year, claimed a standard or substantially similar
deduction for any property other than the property maintained
as a principal place of residence by the respective individuals.
A county auditor may require an individual or an individual's spouse to
provide evidence of the accuracy of the information contained in an
affidavit submitted under this subsection. The evidence required of the
individual or the individual's spouse may include state income tax
returns, excise tax payment information, property tax payment
information, driver license information, and voter registration
information.
(l) (m) If:
(1) a property owner files a statement under subsection (e) to
claim the deduction provided by this section for a particular
property; and
(2) the county auditor receiving the filed statement determines
that the property owner's property is not eligible for the deduction;
the county auditor shall inform the property owner of the county
auditor's determination in writing. If a property owner's property is not
eligible for the deduction because the county auditor has determined
that the property is not the property owner's principal place of
residence, the property owner may appeal the county auditor's
determination as provided in IC 6-1.1-15. The county auditor shall
HB 1120—LS 6559/DI 120 88
inform the property owner of the owner's right to appeal when the
county auditor informs the property owner of the county auditor's
determination under this subsection.
(m) (n) An individual is entitled to the deduction under this section
for a homestead for a particular assessment date if:
(1) either:
(A) the individual's interest in the homestead as described in
subsection (a)(2)(B) is conveyed to the individual after the
assessment date, but within the calendar year in which the
assessment date occurs; or
(B) the individual contracts to purchase the homestead after
the assessment date, but within the calendar year in which the
assessment date occurs;
(2) on the assessment date:
(A) the property on which the homestead is currently located
was vacant land; or
(B) the construction of the dwelling that constitutes the
homestead was not completed; and
(3) either:
(A) the individual files the certified statement required by
subsection (e); or
(B) a sales disclosure form that meets the requirements of
section 44 of this chapter is submitted to the county assessor
on or before December 31 of the calendar year for the
individual's purchase of the homestead.
An individual who satisfies the requirements of subdivisions (1)
through (3) is entitled to the deduction under this section for the
homestead for the assessment date, even if on the assessment date the
property on which the homestead is currently located was vacant land
or the construction of the dwelling that constitutes the homestead was
not completed. The county auditor shall apply the deduction for the
assessment date and for the assessment date in any later year in which
the homestead remains eligible for the deduction. A homestead that
qualifies for the deduction under this section as provided in this
subsection is considered a homestead for purposes of section 37.5 of
this chapter and IC 6-1.1-20.6.
(n) (o) This subsection applies to an application for the deduction
provided by this section that is filed for an assessment date occurring
after December 31, 2013. Notwithstanding any other provision of this
section, an individual buying a mobile home that is not assessed as real
property or a manufactured home that is not assessed as real property
under a contract providing that the individual is to pay the property
HB 1120—LS 6559/DI 120 89
taxes on the mobile home or manufactured home is not entitled to the
deduction provided by this section unless the parties to the contract
comply with IC 9-17-6-17.
(o) (p) This subsection:
(1) applies to an application for the deduction provided by this
section that is filed for an assessment date occurring after
December 31, 2013; and
(2) does not apply to an individual described in subsection (n).
(o).
The owner of a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property must attach a
copy of the owner's title to the mobile home or manufactured home to
the application for the deduction provided by this section.
(p) (q) For assessment dates after 2013, the term "homestead"
includes property that is owned by an individual who:
(1) is serving on active duty in any branch of the armed forces of
the United States;
(2) was ordered to transfer to a location outside Indiana; and
(3) was otherwise eligible, without regard to this subsection, for
the deduction under this section for the property for the
assessment date immediately preceding the transfer date specified
in the order described in subdivision (2).
For property to qualify under this subsection for the deduction provided
by this section, the individual described in subdivisions (1) through (3)
must submit to the county auditor a copy of the individual's transfer
orders or other information sufficient to show that the individual was
ordered to transfer to a location outside Indiana. The property continues
to qualify for the deduction provided by this section until the individual
ceases to be on active duty, the property is sold, or the individual's
ownership interest is otherwise terminated, whichever occurs first.
Notwithstanding subsection (a)(2), the property remains a homestead
regardless of whether the property continues to be the individual's
principal place of residence after the individual transfers to a location
outside Indiana. The property continues to qualify as a homestead
under this subsection if the property is leased while the individual is
away from Indiana and is serving on active duty, if the individual has
lived at the property at any time during the past ten (10) years.
Otherwise, the property ceases to qualify as a homestead under this
subsection if the property is leased while the individual is away from
Indiana. Property that qualifies as a homestead under this subsection
shall also be construed as a homestead for purposes of section 37.5 of
this chapter.
HB 1120—LS 6559/DI 120 90
SECTION 4. IC 6-1.1-12-44, AS AMENDED BY P.L.236-2023,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 44. (a) A sales disclosure form under
IC 6-1.1-5.5:
(1) that is submitted:
(A) as a paper form; or
(B) electronically;
on or before December 31 January 15 of a calendar year in
which property taxes are first due and payable to the county
assessor by or on behalf of the purchaser of a homestead (as
defined in section 37 of this chapter) assessed as real property;
(2) that is accurate and complete;
(3) that is approved by the county assessor as eligible for filing
with the county auditor; and
(4) that is filed:
(A) as a paper form; or
(B) electronically;
with the county auditor by or on behalf of the purchaser;
constitutes an application for the deductions provided by sections 26,
29, 33, 34, and 37 of this chapter with respect to property taxes first
due and payable in the calendar year that immediately succeeds the
calendar year referred to in subdivision (1). The county auditor may not
deny an application for the deductions provided by section 37 of this
chapter because the applicant does not have a valid driver's license or
state identification card with the address of the homestead property.
(b) Except as provided in subsection (c), if:
(1) the county auditor receives in a calendar year a sales
disclosure form that meets the requirements of subsection (a); and
(2) the homestead for which the sales disclosure form is submitted
is otherwise eligible for a deduction referred to in subsection (a);
the county auditor shall apply the deduction to the homestead for
property taxes first due and payable in the calendar year for which the
homestead qualifies under subsection (a) and in any later year in which
the homestead remains eligible for the deduction.
(c) Subsection (b) does not apply if the county auditor, after
receiving a sales disclosure form from or on behalf of a purchaser
under subsection (a)(4), determines that the homestead is ineligible for
the deduction.
SECTION 5. IC 6-1.1-17-3.1, AS ADDED BY P.L.239-2023,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.1. (a) This section:
(1) applies only to an operating referendum tax levy under
HB 1120—LS 6559/DI 120 91
IC 20-46-1 approved by the voters before January 1, 2023, that is
imposed by a school corporation for taxes first due and payable in
2024 and subsequent years; and
(2) does not apply to an operating referendum tax levy under
IC 20-46-1 approved by the voters after December 31, 2022, and
before January 1, 2024, that is imposed by a school corporation
for taxes first due and payable in 2024 or subsequent years. and
(3) does not apply to any other tax year.
(b) As used in this section, "ADM" has the meaning set forth in
IC 20-43-1-6.
(b) (c) Notwithstanding any increase in the assessed value of
property from the previous assessment date, for taxes first due and
payable in 2024, the total amount of operating referendum tax that
may be levied by a school corporation may not exceed the lesser of:
(1) the maximum operating referendum tax that could be have
been levied by the school corporation if the maximum
referendum rate was imposed for taxes first due and payable in
2023 multiplied by one and three-hundredths (1.03); or
(2) the maximum operating referendum tax that could otherwise
be levied by the school corporation for taxes first due and payable
in 2024.
The tax rate for an operating referendum tax levy shall be decreased,
if necessary, to comply with this limitation.
(c) This section expires July 1, 2025.
(d) Notwithstanding any increase in the assessed value of
property from the previous assessment date, for taxes first due and
payable in 2025 and subsequent years, the total amount of
operating referendum tax that may be levied by a school
corporation may not exceed the lesser of the following:
(1) The maximum operating referendum tax that could have
been levied by the school corporation if the maximum
referendum rate was imposed for taxes first due and payable
in the immediately preceding calendar year, as adjusted by
this section, multiplied by the result determined under STEP
SIX of the following formula:
STEP ONE: Subtract:
(i) the school corporation's spring count of ADM made
in the calendar year preceding by five (5) years the
calendar year in which the property taxes are first due
and payable; from
(ii) the school corporation's spring count of ADM made
in the immediately preceding calendar year.
HB 1120—LS 6559/DI 120 92
STEP TWO: Divide the STEP ONE result by four (4).
STEP THREE: Divide the STEP TWO result by the school
corporation's spring count of ADM made in the calendar
year preceding by five (5) years the calendar year in which
the property taxes are first due and payable.
STEP FOUR: Add the STEP THREE result and one and
three-hundredths (1.03).
STEP FIVE: Determine the greater of the STEP FOUR
result or one (1).
STEP SIX: Determine the lesser of the STEP FIVE result
or one and eight-hundredths (1.08).
(2) The maximum operating referendum tax that could
otherwise be levied by the school corporation for taxes first
due and payable in the current calendar year.
The tax rate for an operating referendum tax levy shall be
decreased, if necessary, to comply with this limitation.
(e) The department of education shall provide to the department
of local government finance each school corporation's applicable
ADM counts as needed to make the determinations under this
section.".
Page 4, delete lines 1 through 25.
Page 5, between lines 11 and 12, begin a new paragraph and insert:
"SECTION 7. IC 6-1.1-18.5-13, AS AMENDED BY P.L.174-2022,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 13. (a) With respect to an appeal filed under
section 12 of this chapter, the department may find that a civil taxing
unit should receive any one (1) or more of the following types of relief:
(1) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 or 25 of this chapter,
as applicable, if in the judgment of the department the increase is
reasonably necessary due to increased costs of the civil taxing
unit resulting from annexation, consolidation, or other extensions
of governmental services by the civil taxing unit to additional
geographic areas. With respect to annexation, consolidation, or
other extensions of governmental services in a calendar year, if
those increased costs are incurred by the civil taxing unit in that
calendar year and more than one (1) immediately succeeding
calendar year, the unit may appeal under section 12 of this chapter
for permission to increase its levy under this subdivision based on
those increased costs in any of the following:
(A) The first calendar year in which those costs are incurred.
(B) One (1) or more of the immediately succeeding four (4)
HB 1120—LS 6559/DI 120 93
calendar years.
(2) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 or 25 of this chapter,
as applicable, if the department finds that the quotient determined
under STEP SIX of the following formula is equal to or greater
than one and two-hundredths (1.02): one and four-hundredths
(1.04):
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year.
STEP TWO: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the civil taxing
unit's total assessed value of all taxable property divided by the
sum determined under this STEP for the calendar year
immediately preceding the particular calendar year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties divided by
the sum determined under this STEP for the calendar year
immediately preceding the particular calendar year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 or 25 of this chapter, as
applicable, based on the maximum levy growth quotient
determined under section 2 of this chapter.
(3) A levy increase may be granted under this subdivision only for
property taxes first due and payable after December 31, 2008.
Permission to a civil taxing unit to increase its levy in excess of
the limitations established under section 3 or 25 of this chapter,
as applicable, if the civil taxing unit cannot carry out its
governmental functions for an ensuing calendar year under the
levy limitations imposed by section 3 or 25 of this chapter, as
applicable, due to a natural disaster, an accident, or another
unanticipated emergency.
HB 1120—LS 6559/DI 120 94
(b) The department of local government finance shall increase the
maximum permissible ad valorem property tax levy under section 3 of
this chapter for the city of Goshen for 2012 and thereafter by an
amount equal to the greater of zero (0) or the result of:
(1) the city's total pension costs in 2009 for the 1925 police
pension fund (IC 36-8-6) and the 1937 firefighters' pension fund
(IC 36-8-7); minus
(2) the sum of:
(A) the total amount of state funds received in 2009 by the city
and used to pay benefits to members of the 1925 police
pension fund (IC 36-8-6) or the 1937 firefighters' pension fund
(IC 36-8-7); plus
(B) any previous permanent increases to the city's levy that
were authorized to account for the transfer to the state of the
responsibility to pay benefits to members of the 1925 police
pension fund (IC 36-8-6) and the 1937 firefighters' pension
fund (IC 36-8-7).
SECTION 8. IC 6-1.1-20-1.1, AS AMENDED BY P.L.236-2023,
SECTION 35, AND AS AMENDED BY P.L.239-2023, SECTION 6,
AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
OF THE 2024 GENERAL ASSEMBLY, IS CORRECTED AND
AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
2024 (RETROACTIVE)]: Sec. 1.1. (a) As used in this chapter,
"controlled project" means any project financed by bonds or a lease,
except for the following:
(1) A project for which the political subdivision reasonably
expects to pay:
(A) debt service; or
(B) lease rentals;
from funds other than property taxes that are exempt from the
levy limitations of IC 6-1.1-18.5 or (before January 1, 2009)
IC 20-45-3. A project is not a controlled project even though the
political subdivision has pledged to levy property taxes to pay the
debt service or lease rentals if those other funds are insufficient.
(2) Subject to subsection (b), a project that will not cost the
political subdivision more than the lesser of the following:
(A) An amount equal to the following:
(i) In the case of an ordinance or resolution adopted before
January 1, 2018, making a preliminary determination to
issue bonds or enter into a lease for the project, two million
dollars ($2,000,000).
(ii) In the case of an ordinance or resolution adopted after
HB 1120—LS 6559/DI 120 95
December 31, 2017, and before January 1, 2019, making a
preliminary determination to issue bonds or enter into a
lease for the project, five million dollars ($5,000,000).
(iii) In the case of an ordinance or resolution adopted in a
calendar year after December 31, 2018, making a
preliminary determination to issue bonds or enter into a
lease for the project, an amount (as determined by the
department of local government finance) equal to the result
of the maximum levy growth quotient determined under
IC 6-1.1-18.5-2 for the year multiplied by the amount
determined under this clause for the preceding calendar
year.
The department of local government finance shall publish the
threshold determined under item (iii) in the Indiana Register
under IC 4-22-7-7 not more than sixty (60) days after the date
the budget agency releases the maximum levy growth quotient
for the ensuing year under IC 6-1.1-18.5-2.
(B) An amount equal to the following:
(i) One percent (1%) of the total gross assessed value of
property within the political subdivision on the last
assessment date, if that total gross assessed value is more
than one hundred million dollars ($100,000,000).
(ii) One million dollars ($1,000,000), if the total gross
assessed value of property within the political subdivision
on the last assessment date is not more than one hundred
million dollars ($100,000,000).
(3) A project that is being refinanced for the purpose of providing
gross or net present value savings to taxpayers.
(4) A project for which bonds were issued or leases were entered
into before January 1, 1996, or where the state board of tax
commissioners has approved the issuance of bonds or the
execution of leases before January 1, 1996.
(5) A project that:
(A) is required by a court order holding that a federal law
mandates the project; or
(B) is in response to a court order holding that:
(i) a federal law has been violated; and
(ii) the project is to address the deficiency or violation.
(6) A project that is in response to:
(A) a natural disaster;
(B) an accident; or
(C) an emergency;
HB 1120—LS 6559/DI 120 96
in the political subdivision that makes a building or facility
unavailable for its intended use.
(7) A project that was not a controlled project under this section
as in effect on June 30, 2008, and for which:
(A) the bonds or lease for the project were issued or entered
into before July 1, 2008; or
(B) the issuance of the bonds or the execution of the lease for
the project was approved by the department of local
government finance before July 1, 2008.
(8) A project of the Little Calumet River basin development
commission for which bonds are payable from special
assessments collected under IC 14-13-2-18.6.
(9) A project for engineering, land and right-of-way acquisition,
construction, resurfacing, maintenance, restoration, and
rehabilitation exclusively for or of:
(A) local road and street systems, including bridges that are
designated as being in a local road and street system;
(B) arterial road and street systems, including bridges that are
designated as being in an arterial road and street system; or
(C) any combination of local and arterial road and street
systems, including designated bridges.
(b) This subsection does not apply to a project for which a public
hearing to issue bonds or enter into a lease has been conducted under
IC 20-26-7-37 before July 1, 2023. If:
(1) a political subdivision's total debt service tax rate is more
than forty cents ($0.40) per one hundred dollars ($100) of
assessed value; and
(2) subsection (a)(1) and subsection (a)(3) through (a)(9) are not
applicable;
the term includes any project to be financed by bonds or a lease,
including a project that does not otherwise meet the threshold amount
provided in subsection (a)(2). This subsection expires December 31,
2024. For purposes of this subsection, a political subdivision's total
debt service tax rate does not include a tax rate imposed in a
referendum debt service tax levy approved by voters.
SECTION 9. IC 6-1.1-20-3.1, AS AMENDED BY P.L.239-2023,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.1. (a) Subject to section
3.5(a)(1)(C) of this chapter, this section applies only to the following:
(1) A controlled project (as defined in section 1.1 of this chapter
as in effect June 30, 2008) for which the proper officers of a
political subdivision make a preliminary determination in the
HB 1120—LS 6559/DI 120 97
manner described in subsection (b) before July 1, 2008.
(2) An elementary school building, middle school building, high
school building, or other school building for academic instruction
that:
(A) is a controlled project;
(B) will be used for any combination of kindergarten through
grade 12; and
(C) will not cost more than the lesser of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is ten
million dollars ($10,000,000). In the case of an ordinance or
resolution adopted after December 31, 2017, and before
January 1, 2019, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is fifteen million dollars ($15,000,000). In the case
of an ordinance or resolution adopted in a calendar year after
December 31, 2018, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is an amount (as determined by the department of
local government finance) equal to the result of the
maximum levy growth quotient determined under
IC 6-1.1-18.5-2 for the year multiplied by the threshold
amount determined under this item for the preceding
calendar year. In the case of a threshold amount determined
under this item that applies for a calendar year after
December 31, 2018, the department of local government
finance shall publish the threshold in the Indiana Register
under IC 4-22-7-7 not more than sixty (60) days after the
date the budget agency releases the maximum levy growth
quotient for the ensuing year under IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision
on the last assessment date, if that total gross assessed value
is more than one billion dollars ($1,000,000,000), or ten
million dollars ($10,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one billion dollars
($1,000,000,000).
(3) Any other controlled project that:
(A) is not a controlled project described in subdivision (1) or
HB 1120—LS 6559/DI 120 98
(2); and
(B) will not cost the political subdivision more than the lesser
of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is
twelve million dollars ($12,000,000). In the case of an
ordinance or resolution adopted after December 31, 2017,
and before January 1, 2019, making a preliminary
determination to issue bonds or enter into a lease for the
project, the threshold amount is fifteen million dollars
($15,000,000). In the case of an ordinance or resolution
adopted in a calendar year after December 31, 2018, making
a preliminary determination to issue bonds or enter into a
lease for the project, the threshold amount is an amount (as
determined by the department of local government finance)
equal to the result of the maximum levy growth quotient
determined under IC 6-1.1-18.5-2 for the year multiplied by
the threshold amount determined under this item for the
preceding calendar year. In the case of a threshold amount
determined under this item that applies for a calendar year
after December 31, 2018, the department of local
government finance shall publish the threshold in the
Indiana Register under IC 4-22-7-7 not more than sixty (60)
days after the date the budget agency releases the maximum
levy growth quotient for the ensuing year under
IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision
on the last assessment date, if that total gross assessed value
is more than one hundred million dollars ($100,000,000), or
one million dollars ($1,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one hundred million
dollars ($100,000,000).
(4) This subdivision does not apply to a project for which a public
hearing to issue bonds or enter into a lease has been conducted
under IC 20-26-7-37 before July 1, 2023. Any other controlled
project if both of the following apply:
(A) The political subdivision's total debt service tax rate is
more than forty cents ($0.40) per one hundred dollars ($100)
HB 1120—LS 6559/DI 120 99
of assessed value, but less than eighty cents ($0.80) per one
hundred dollars ($100) of assessed value.
(B) The controlled project is not otherwise described in section
3.5(a)(1) of this chapter.
This subdivision expires December 31, 2024. For purposes of
this subdivision, a political subdivision's total debt service tax
rate does not include a tax rate imposed in a referendum debt
service tax levy approved by voters.
(b) A political subdivision may not impose property taxes to pay
debt service on bonds or lease rentals on a lease for a controlled project
without completing the following procedures:
(1) The proper officers of a political subdivision shall publish
notice in accordance with IC 5-3-1 and send notice by first class
mail to the circuit court clerk and to any organization that delivers
to the officers, before January 1 of that year, an annual written
request for such notices of any meeting to consider adoption of a
resolution or an ordinance making a preliminary determination to
issue bonds or enter into a lease and shall conduct at least two (2)
public hearings on a preliminary determination before adoption
of the resolution or ordinance. The political subdivision must at
each of the public hearings on the preliminary determination
allow the public to testify regarding the preliminary determination
and must make the following information available to the public
at each of the public hearings on the preliminary determination,
in addition to any other information required by law:
(A) The result of the political subdivision's current and
projected annual debt service payments divided by the net
assessed value of taxable property within the political
subdivision.
(B) The result of:
(i) the sum of the political subdivision's outstanding long
term debt plus the outstanding long term debt of other taxing
units that include any of the territory of the political
subdivision; divided by
(ii) the net assessed value of taxable property within the
political subdivision.
(C) The information specified in subdivision (3)(A) through
(3)(H).
(2) When the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease for
a controlled project, the officers shall give notice of the
preliminary determination by:
HB 1120—LS 6559/DI 120 100
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the circuit court clerk and to the
organizations described in subdivision (1).
(3) A notice under subdivision (2) of the preliminary
determination of the political subdivision to issue bonds or enter
into a lease for a controlled project must include the following
information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the
maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that any owners of property within the
political subdivision or registered voters residing within the
political subdivision who want to initiate a petition and
remonstrance process against the proposed debt service or
lease payments must file a petition that complies with
subdivisions (4) and (5) not later than thirty (30) days after
publication in accordance with IC 5-3-1.
(F) With respect to bonds issued or a lease entered into to
open:
(i) a new school facility; or
(ii) an existing facility that has not been used for at least
three (3) years and that is being reopened to provide
additional classroom space;
the estimated costs the school corporation expects to incur
annually to operate the facility.
(G) A statement of whether the school corporation expects to
appeal for a new facility adjustment (as defined in
IC 20-45-1-16 (repealed) before January 1, 2009) for an
increased maximum permissible tuition support levy to pay the
estimated costs described in clause (F).
(H) The following information:
(i) The political subdivision's current debt service levy and
rate.
(ii) The estimated increase to the political subdivision's debt
service levy and rate that will result if the political
subdivision issues the bonds or enters into the lease.
(iii) The estimated amount of the political subdivision's debt
service levy and rate that will result during the following ten
(10) years if the political subdivision issues the bonds or
HB 1120—LS 6559/DI 120 101
enters into the lease, after also considering any changes that
will occur to the debt service levy and rate during that
period on account of any outstanding bonds or lease
obligations that will mature or terminate during that period.
(I) The information specified in subdivision (1)(A) through
(1)(B).
(4) After notice is given, a petition requesting the application of
a petition and remonstrance process may be filed by the lesser of:
(A) five hundred (500) persons who are either owners of
property within the political subdivision or registered voters
residing within the political subdivision; or
(B) five percent (5%) of the registered voters residing within
the political subdivision.
(5) The state board of accounts shall design and, upon request by
the county voter registration office, deliver to the county voter
registration office or the county voter registration office's
designated printer the petition forms to be used solely in the
petition process described in this section. The county voter
registration office shall issue to an owner or owners of property
within the political subdivision or a registered voter residing
within the political subdivision the number of petition forms
requested by the owner or owners or the registered voter. Each
form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of property or
registered voters;
(B) the carrier must be a signatory on at least one (1) petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier
witnessed each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may be required to identify themselves
as owners of property or registered voters and may be allowed to
pick up additional copies to distribute to other owners of property
or registered voters. Each person signing a petition must indicate
whether the person is signing the petition as a registered voter
within the political subdivision or is signing the petition as the
owner of property within the political subdivision. A person who
signs a petition as a registered voter must indicate the address at
which the person is registered to vote. A person who signs a
petition as an owner of property must indicate the address of the
property owned by the person in the political subdivision.
HB 1120—LS 6559/DI 120 102
(6) Each petition must be verified under oath by at least one (1)
qualified petitioner in a manner prescribed by the state board of
accounts before the petition is filed with the county voter
registration office under subdivision (7).
(7) Each petition must be filed with the county voter registration
office not more than thirty (30) days after publication under
subdivision (2) of the notice of the preliminary determination.
(8) The county voter registration office shall determine whether
each person who signed the petition is a registered voter.
However, after the county voter registration office has determined
that at least five hundred twenty-five (525) persons who signed
the petition are registered voters within the political subdivision,
the county voter registration office is not required to verify
whether the remaining persons who signed the petition are
registered voters. If the county voter registration office does not
determine that at least five hundred twenty-five (525) persons
who signed the petition are registered voters, the county voter
registration office shall, not more than fifteen (15) business days
after receiving a petition, forward a copy of the petition to the
county auditor. Not more than ten (10) business days after
receiving the copy of the petition, the county auditor shall provide
to the county voter registration office a statement verifying:
(A) whether a person who signed the petition as a registered
voter but is not a registered voter, as determined by the county
voter registration office, is the owner of property in the
political subdivision; and
(B) whether a person who signed the petition as an owner of
property within the political subdivision does in fact own
property within the political subdivision.
(9) The county voter registration office, not more than ten (10)
business days after determining that at least five hundred
twenty-five (525) persons who signed the petition are registered
voters or receiving the statement from the county auditor under
subdivision (8), as applicable, shall make the final determination
of the number of petitioners that are registered voters in the
political subdivision and, based on the statement provided by the
county auditor, the number of petitioners that own property within
the political subdivision. Whenever the name of an individual
who signs a petition form as a registered voter contains a minor
variation from the name of the registered voter as set forth in the
records of the county voter registration office, the signature is
presumed to be valid, and there is a presumption that the
HB 1120—LS 6559/DI 120 103
individual is entitled to sign the petition under this section. Except
as otherwise provided in this chapter, in determining whether an
individual is a registered voter, the county voter registration office
shall apply the requirements and procedures used under IC 3 to
determine whether a person is a registered voter for purposes of
voting in an election governed by IC 3. However, an individual is
not required to comply with the provisions concerning providing
proof of identification to be considered a registered voter for
purposes of this chapter. A person is entitled to sign a petition
only one (1) time in a particular petition and remonstrance
process under this chapter, regardless of whether the person owns
more than one (1) parcel of real property, mobile home assessed
as personal property, or manufactured home assessed as personal
property, or a combination of those types of property within the
subdivision and regardless of whether the person is both a
registered voter in the political subdivision and the owner of
property within the political subdivision. Notwithstanding any
other provision of this section, if a petition is presented to the
county voter registration office within forty-five (45) days before
an election, the county voter registration office may defer acting
on the petition, and the time requirements under this section for
action by the county voter registration office do not begin to run
until five (5) days after the date of the election.
(10) The county voter registration office must file a certificate and
each petition with:
(A) the township trustee, if the political subdivision is a
township, who shall present the petition or petitions to the
township board; or
(B) the body that has the authority to authorize the issuance of
the bonds or the execution of a lease, if the political
subdivision is not a township;
within thirty-five (35) business days of the filing of the petition
requesting a petition and remonstrance process. The certificate
must state the number of petitioners that are owners of property
within the political subdivision and the number of petitioners who
are registered voters residing within the political subdivision.
If a sufficient petition requesting a petition and remonstrance process
is not filed by owners of property or registered voters as set forth in this
section, the political subdivision may issue bonds or enter into a lease
by following the provisions of law relating to the bonds to be issued or
lease to be entered into.
(c) A political subdivision may not divide a controlled project in
HB 1120—LS 6559/DI 120 104
order to avoid the requirements of this section and section 3.2 of this
chapter. A person that owns property within a political subdivision or
a person that is a registered voter residing within a political subdivision
may file a petition with the department of local government finance
objecting that the political subdivision has divided a controlled project
in order to avoid the requirements of this section and section 3.2 of this
chapter. The petition must be filed not more than ten (10) days after the
political subdivision gives notice of the political subdivision's decision
to issue bonds or enter into leases for a capital project that the person
believes is the result of a division of a controlled project that is
prohibited by this subsection. If the department of local government
finance receives a petition under this subsection, the department shall
not later than thirty (30) days after receiving the petition make a final
determination on the issue of whether the political subdivision divided
a controlled project in order to avoid the requirements of this section
and section 3.2 of this chapter. If the department of local government
finance determines that a political subdivision divided a controlled
project in order to avoid the requirements of this section and section
3.2 of this chapter and the political subdivision continues to desire to
proceed with the project, the political subdivision shall fulfill the
requirements of this section and section 3.2 of this chapter, if
applicable, regardless of the cost of the project in dispute. A political
subdivision shall be considered to have divided a capital project in
order to avoid the requirements of this section and section 3.2 of this
chapter if the result of one (1) or more of the subprojects cannot
reasonably be considered an independently desirable end in itself
without reference to another capital project. This subsection does not
prohibit a political subdivision from undertaking a series of capital
projects in which the result of each capital project can reasonably be
considered an independently desirable end in itself without reference
to another capital project.
SECTION 10. IC 6-1.1-20-3.5, AS AMENDED BY P.L.239-2023,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.5. (a) This section
applies only to a controlled project that meets the following conditions:
(1) The controlled project is described in one (1) of the following
categories:
(A) An elementary school building, middle school building,
high school building, or other school building for academic
instruction that will be used for any combination of
kindergarten through grade 12 and will cost more than the
lesser of the following:
HB 1120—LS 6559/DI 120 105
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is ten
million dollars ($10,000,000). In the case of an ordinance or
resolution adopted after December 31, 2017, and before
January 1, 2019, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is fifteen million dollars ($15,000,000). In the case
of an ordinance or resolution adopted in a calendar year after
December 31, 2018, making a preliminary determination to
issue bonds or enter into a lease for the project, the threshold
amount is an amount (as determined by the department of
local government finance) equal to the result of the
maximum levy growth quotient determined under
IC 6-1.1-18.5-2 for the year multiplied by the threshold
amount determined under this item for the preceding
calendar year. In the case of a threshold amount determined
under this item that applies for a calendar year after
December 31, 2018, the department of local government
finance shall publish the threshold in the Indiana Register
under IC 4-22-7-7 not more than sixty (60) days after the
date the budget agency releases the maximum levy growth
quotient for the ensuing year under IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision
on the last assessment date, if that total gross assessed value
is more than one billion dollars ($1,000,000,000), or ten
million dollars ($10,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one billion dollars
($1,000,000,000).
(B) Any other controlled project that is not a controlled project
described in clause (A) and will cost the political subdivision
more than the lesser of the following:
(i) The threshold amount determined under this item. In the
case of an ordinance or resolution adopted before January 1,
2018, making a preliminary determination to issue bonds or
enter into a lease for the project, the threshold amount is
twelve million dollars ($12,000,000). In the case of an
ordinance or resolution adopted after December 31, 2017,
and before January 1, 2019, making a preliminary
HB 1120—LS 6559/DI 120 106
determination to issue bonds or enter into a lease for the
project, the threshold amount is fifteen million dollars
($15,000,000). In the case of an ordinance or resolution
adopted in a calendar year after December 31, 2018, making
a preliminary determination to issue bonds or enter into a
lease for the project, the threshold amount is an amount (as
determined by the department of local government finance)
equal to the result of the maximum levy growth quotient
determined under IC 6-1.1-18.5-2 for the year multiplied by
the threshold amount determined under this item for the
preceding calendar year. In the case of a threshold amount
determined under this item that applies for a calendar year
after December 31, 2018, the department of local
government finance shall publish the threshold in the
Indiana Register under IC 4-22-7-7 not more than sixty (60)
days after the date the budget agency releases the maximum
levy growth quotient for the ensuing year under
IC 6-1.1-18.5-2.
(ii) An amount equal to one percent (1%) of the total gross
assessed value of property within the political subdivision
on the last assessment date, if that total gross assessed value
is more than one hundred million dollars ($100,000,000), or
one million dollars ($1,000,000), if the total gross assessed
value of property within the political subdivision on the last
assessment date is not more than one hundred million
dollars ($100,000,000).
(C) Any other controlled project for which a political
subdivision adopts an ordinance or resolution making a
preliminary determination to issue bonds or enter into a lease
for the project, if the sum of:
(i) the cost of that controlled project; plus
(ii) the costs of all other controlled projects for which the
political subdivision has previously adopted within the
preceding three hundred sixty-five (365) days an ordinance
or resolution making a preliminary determination to issue
bonds or enter into a lease for those other controlled
projects;
exceeds twenty-five million dollars ($25,000,000).
(D) This clause does not apply to a project for which a public
hearing to issue bonds or enter into a lease has been conducted
under IC 20-26-7-37 before July 1, 2023. Except as provided
in section 4.5 of this chapter, any other controlled project if the
HB 1120—LS 6559/DI 120 107
political subdivision's total debt service tax rate is at least
eighty cents ($0.80) per one hundred dollars ($100) of
assessed value. This clause expires December 31, 2024. For
purposes of this clause, a political subdivision's total debt
service tax rate does not include a tax rate imposed in a
referendum debt service tax levy approved by voters.
(2) The proper officers of the political subdivision make a
preliminary determination after June 30, 2008, in the manner
described in subsection (b) to issue bonds or enter into a lease for
the controlled project.
(b) Subject to subsection (d), a political subdivision may not impose
property taxes to pay debt service on bonds or lease rentals on a lease
for a controlled project without completing the following procedures:
(1) The proper officers of a political subdivision shall publish
notice in accordance with IC 5-3-1 and send notice by first class
mail to the circuit court clerk and to any organization that delivers
to the officers, before January 1 of that year, an annual written
request for notices of any meeting to consider the adoption of an
ordinance or a resolution making a preliminary determination to
issue bonds or enter into a lease and shall conduct at least two (2)
public hearings on the preliminary determination before adoption
of the ordinance or resolution. The political subdivision must at
each of the public hearings on the preliminary determination
allow the public to testify regarding the preliminary determination
and must make the following information available to the public
at each of the public hearings on the preliminary determination,
in addition to any other information required by law:
(A) The result of the political subdivision's current and
projected annual debt service payments divided by the net
assessed value of taxable property within the political
subdivision.
(B) The result of:
(i) the sum of the political subdivision's outstanding long
term debt plus the outstanding long term debt of other taxing
units that include any of the territory of the political
subdivision; divided by
(ii) the net assessed value of taxable property within the
political subdivision.
(C) The information specified in subdivision (3)(A) through
(3)(G).
(2) If the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
HB 1120—LS 6559/DI 120 108
officers shall give notice of the preliminary determination by:
(A) publication in accordance with IC 5-3-1; and
(B) first class mail to the circuit court clerk and to the
organizations described in subdivision (1).
(3) A notice under subdivision (2) of the preliminary
determination of the political subdivision to issue bonds or enter
into a lease must include the following information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the
maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that the proposed debt service or lease
payments must be approved in an election on a local public
question held under section 3.6 of this chapter.
(F) With respect to bonds issued or a lease entered into to
open:
(i) a new school facility; or
(ii) an existing facility that has not been used for at least
three (3) years and that is being reopened to provide
additional classroom space;
the estimated costs the school corporation expects to annually
incur to operate the facility.
(G) The following information:
(i) The political subdivision's current debt service levy and
rate.
(ii) The estimated increase to the political subdivision's debt
service levy and rate that will result if the political
subdivision issues the bonds or enters into the lease.
(iii) The estimated amount of the political subdivision's debt
service levy and rate that will result during the following ten
(10) years if the political subdivision issues the bonds or
enters into the lease, after also considering any changes that
will occur to the debt service levy and rate during that
period on account of any outstanding bonds or lease
obligations that will mature or terminate during that period.
(H) The information specified in subdivision (1)(A) through
(1)(B).
(4) This subdivision does not apply to a controlled project
described in subsection (a)(1)(D). (before its expiration). After
notice is given, a petition requesting the application of the local
HB 1120—LS 6559/DI 120 109
public question process under section 3.6 of this chapter may be
filed by the lesser of:
(A) five hundred (500) persons who are either owners of
property within the political subdivision or registered voters
residing within the political subdivision; or
(B) five percent (5%) of the registered voters residing within
the political subdivision.
(5) This subdivision does not apply to a controlled project
described in subsection (a)(1)(D). (before its expiration). The
state board of accounts shall design and, upon request by the
county voter registration office, deliver to the county voter
registration office or the county voter registration office's
designated printer the petition forms to be used solely in the
petition process described in this section. The county voter
registration office shall issue to an owner or owners of property
within the political subdivision or a registered voter residing
within the political subdivision the number of petition forms
requested by the owner or owners or the registered voter. Each
form must be accompanied by instructions detailing the
requirements that:
(A) the carrier and signers must be owners of property or
registered voters;
(B) the carrier must be a signatory on at least one (1) petition;
(C) after the signatures have been collected, the carrier must
swear or affirm before a notary public that the carrier
witnessed each signature; and
(D) govern the closing date for the petition period.
Persons requesting forms may be required to identify themselves
as owners of property or registered voters and may be allowed to
pick up additional copies to distribute to other owners of property
or registered voters. Each person signing a petition must indicate
whether the person is signing the petition as a registered voter
within the political subdivision or is signing the petition as the
owner of property within the political subdivision. A person who
signs a petition as a registered voter must indicate the address at
which the person is registered to vote. A person who signs a
petition as an owner of property must indicate the address of the
property owned by the person in the political subdivision.
(6) This subdivision does not apply to a controlled project
described in subsection (a)(1)(D). (before its expiration). Each
petition must be verified under oath by at least one (1) qualified
petitioner in a manner prescribed by the state board of accounts
HB 1120—LS 6559/DI 120 110
before the petition is filed with the county voter registration office
under subdivision (7).
(7) This subdivision does not apply to a controlled project
described in subsection (a)(1)(D). (before its expiration). Each
petition must be filed with the county voter registration office not
more than thirty (30) days after publication under subdivision (2)
of the notice of the preliminary determination.
(8) This subdivision does not apply to a controlled project
described in subsection (a)(1)(D). (before its expiration). The
county voter registration office shall determine whether each
person who signed the petition is a registered voter. However,
after the county voter registration office has determined that at
least five hundred twenty-five (525) persons who signed the
petition are registered voters within the political subdivision, the
county voter registration office is not required to verify whether
the remaining persons who signed the petition are registered
voters. If the county voter registration office does not determine
that at least five hundred twenty-five (525) persons who signed
the petition are registered voters, the county voter registration
office, not more than fifteen (15) business days after receiving a
petition, shall forward a copy of the petition to the county auditor.
Not more than ten (10) business days after receiving the copy of
the petition, the county auditor shall provide to the county voter
registration office a statement verifying:
(A) whether a person who signed the petition as a registered
voter but is not a registered voter, as determined by the county
voter registration office, is the owner of property in the
political subdivision; and
(B) whether a person who signed the petition as an owner of
property within the political subdivision does in fact own
property within the political subdivision.
(9) This subdivision does not apply to a controlled project
described in subsection (a)(1)(D). (before its expiration). The
county voter registration office, not more than ten (10) business
days after determining that at least five hundred twenty-five (525)
persons who signed the petition are registered voters or after
receiving the statement from the county auditor under subdivision
(8), as applicable, shall make the final determination of whether
a sufficient number of persons have signed the petition. Whenever
the name of an individual who signs a petition form as a
registered voter contains a minor variation from the name of the
registered voter as set forth in the records of the county voter
HB 1120—LS 6559/DI 120 111
registration office, the signature is presumed to be valid, and there
is a presumption that the individual is entitled to sign the petition
under this section. Except as otherwise provided in this chapter,
in determining whether an individual is a registered voter, the
county voter registration office shall apply the requirements and
procedures used under IC 3 to determine whether a person is a
registered voter for purposes of voting in an election governed by
IC 3. However, an individual is not required to comply with the
provisions concerning providing proof of identification to be
considered a registered voter for purposes of this chapter. A
person is entitled to sign a petition only one (1) time in a
particular referendum process under this chapter, regardless of
whether the person owns more than one (1) parcel of real
property, mobile home assessed as personal property, or
manufactured home assessed as personal property or a
combination of those types of property within the political
subdivision and regardless of whether the person is both a
registered voter in the political subdivision and the owner of
property within the political subdivision. Notwithstanding any
other provision of this section, if a petition is presented to the
county voter registration office within forty-five (45) days before
an election, the county voter registration office may defer acting
on the petition, and the time requirements under this section for
action by the county voter registration office do not begin to run
until five (5) days after the date of the election.
(10) This subdivision does not apply to a controlled project
described in subsection (a)(1)(D). (before its expiration). The
county voter registration office must file a certificate and each
petition with:
(A) the township trustee, if the political subdivision is a
township, who shall present the petition or petitions to the
township board; or
(B) the body that has the authority to authorize the issuance of
the bonds or the execution of a lease, if the political
subdivision is not a township;
within thirty-five (35) business days of the filing of the petition
requesting the referendum process. The certificate must state the
number of petitioners who are owners of property within the
political subdivision and the number of petitioners who are
registered voters residing within the political subdivision.
(11) This subdivision does not apply to a controlled project
described in subsection (a)(1)(D). (before its expiration). If a
HB 1120—LS 6559/DI 120 112
sufficient petition requesting the local public question process is
not filed by owners of property or registered voters as set forth in
this section, the political subdivision may issue bonds or enter
into a lease by following the provisions of law relating to the
bonds to be issued or lease to be entered into.
(c) If the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
officers shall provide to the county auditor:
(1) a copy of the notice required by subsection (b)(2); and
(2) any other information the county auditor requires to fulfill the
county auditor's duties under section 3.6 of this chapter.
(d) In addition to the procedures in subsection (b), if any capital
improvement components addressed in the most recent:
(1) threat assessment of the buildings within the school
corporation; or
(2) school safety plan (as described in IC 20-26-18.2-2(b));
concerning a particular school have not been completed or require
additional funding to be completed, before the school corporation may
impose property taxes to pay debt service on bonds or lease rentals for
a lease for a controlled project, and in addition to any other components
of the controlled project, the controlled project must include any capital
improvements necessary to complete those components described in
subdivisions (1) and (2) that have not been completed or that require
additional funding to be completed.
(e) In addition to the other procedures in this section, an ordinance
or resolution making a preliminary determination to issue bonds or
enter into leases that is considered for adoption must include a
statement of:
(1) the maximum annual debt service for the controlled project for
each year in which the debt service will be paid; and
(2) the schedule of the estimated annual tax levy and rate over a
ten (10) year period;
factoring in changes that will occur to the debt service levy and tax rate
during the period on account of any outstanding bonds or lease
obligations that will mature or terminate during the period.
SECTION 11. IC 6-1.1-20-3.6, AS AMENDED BY P.L.239-2023,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.6. (a) Except as
provided in sections 3.7 and 3.8 of this chapter, this section applies
only to a controlled project described in section 3.5(a) of this chapter.
(b) In the case of a controlled project:
(1) described in section 3.5(a)(1)(A) through 3.5(a)(1)(C) of this
HB 1120—LS 6559/DI 120 113
chapter, if a sufficient petition requesting the application of the
local public question process has been filed as set forth in section
3.5 of this chapter; or
(2) described in section 3.5(a)(1)(D) of this chapter; (before its
expiration);
a political subdivision may not impose property taxes to pay debt
service on bonds or lease rentals on a lease for a controlled project
unless the political subdivision's proposed debt service or lease rental
is approved in an election on a local public question held under this
section.
(c) Except as provided in subsection (k), the following question
shall be submitted to the eligible voters at the election conducted under
this section:
"Shall ________ (insert the name of the political subdivision)
increase property taxes paid to the _______ (insert the type of
taxing unit) by homeowners and businesses? If this public
question is approved by the voters, the average property tax paid
to the _______ (insert the type of taxing unit) per year on a
residence would increase by ______% (insert the estimated
average percentage of property tax increase paid to the political
subdivision on a residence within the political subdivision as
determined under subsection (n)) and the average property tax
paid to the _____ (insert the type of taxing unit) per year on a
business property would increase by ______% (insert the
estimated average percentage of property tax increase paid to the
political subdivision on a business property within the political
subdivision as determined under subsection (o)). The political
subdivision may issue bonds or enter into a lease to ________
(insert a brief description of the controlled project), which is
estimated to cost _______ (insert the total cost of the project)
over ______ (insert number of years to bond maturity or
termination of lease) years. The most recent property tax
referendum within the boundaries of the political subdivision for
which this public question is being considered was proposed by
________ (insert name of political subdivision) in ______ (insert
year of most recent property tax referendum) and ________
(insert whether the measure passed or failed).".
The public question must appear on the ballot in the form approved by
the county election board. If the political subdivision proposing to issue
bonds or enter into a lease is located in more than one (1) county, the
county election board of each county shall jointly approve the form of
the public question that will appear on the ballot in each county. The
HB 1120—LS 6559/DI 120 114
form approved by the county election board may differ from the
language certified to the county election board by the county auditor.
If the county election board approves the language of a public question
under this subsection, the county election board shall submit the
language and the certification of the county auditor described in
subsection (p) to the department of local government finance for
review.
(d) The department of local government finance shall review the
language of the public question to evaluate whether the description of
the controlled project is accurate and is not biased against either a vote
in favor of the controlled project or a vote against the controlled
project. The department of local government finance shall post the
estimated average percentage of property tax increases to be paid to a
political subdivision on a residence and business property that are
certified by the county auditor under subsection (p) on the department's
Internet web site. The department of local government finance may
either approve the ballot language as submitted or recommend that the
ballot language be modified as necessary to ensure that the description
of the controlled project is accurate and is not biased. The department
of local government finance shall certify its approval or
recommendations to the county auditor and the county election board
not more than ten (10) days after the language of the public question is
submitted to the department for review. If the department of local
government finance recommends a modification to the ballot language,
the county election board shall, after reviewing the recommendations
of the department of local government finance, submit modified ballot
language to the department for the department's approval or
recommendation of any additional modifications. The public question
may not be certified by the county auditor under subsection (e) unless
the department of local government finance has first certified the
department's final approval of the ballot language for the public
question.
(e) The county auditor shall certify the finally approved public
question under IC 3-10-9-3 to the county election board of each county
in which the political subdivision is located. The certification must
occur not later than noon:
(1) seventy-four (74) days before a primary election if the public
question is to be placed on the primary or municipal primary
election ballot; or
(2) August 1 if the public question is to be placed on the general
or municipal election ballot.
Subject to the certification requirements and deadlines under this
HB 1120—LS 6559/DI 120 115
subsection and except as provided in subsection (j), the public question
shall be placed on the ballot at the next primary election, general
election or municipal election in which all voters of the political
subdivision are entitled to vote. However, if a primary election, general
election, or municipal election will not be held during the first year in
which the public question is eligible to be placed on the ballot under
this section and if the political subdivision requests the public question
to be placed on the ballot at a special election, the public question shall
be placed on the ballot at a special election to be held on the first
Tuesday after the first Monday in May or November of the year. The
certification must occur not later than noon seventy-four (74) days
before a special election to be held in May (if the special election is to
be held in May) or noon on August 1 (if the special election is to be
held in November). The fiscal body of the political subdivision that
requests the special election shall pay the costs of holding the special
election. The county election board shall give notice under IC 5-3-1 of
a special election conducted under this subsection. A special election
conducted under this subsection is under the direction of the county
election board. The county election board shall take all steps necessary
to carry out the special election.
(f) The circuit court clerk shall certify the results of the public
question to the following:
(1) The county auditor of each county in which the political
subdivision is located.
(2) The department of local government finance.
(g) Subject to the requirements of IC 6-1.1-18.5-8, the political
subdivision may issue the proposed bonds or enter into the proposed
lease rental if a majority of the eligible voters voting on the public
question vote in favor of the public question.
(h) If a majority of the eligible voters voting on the public question
vote in opposition to the public question, both of the following apply:
(1) The political subdivision may not issue the proposed bonds or
enter into the proposed lease rental.
(2) Another public question under this section on the same or a
substantially similar project may not be submitted to the voters
earlier than:
(A) except as provided in clause (B), seven hundred (700)
days after the date of the public question; or
(B) three hundred fifty (350) days after the date of the election,
if a petition that meets the requirements of subsection (m) is
submitted to the county auditor.
(i) IC 3, to the extent not inconsistent with this section, applies to an
HB 1120—LS 6559/DI 120 116
election held under this section.
(j) A political subdivision may not divide a controlled project in
order to avoid the requirements of this section and section 3.5 of this
chapter. A person that owns property within a political subdivision or
a person that is a registered voter residing within a political subdivision
may file a petition with the department of local government finance
objecting that the political subdivision has divided a controlled project
into two (2) or more capital projects in order to avoid the requirements
of this section and section 3.5 of this chapter. The petition must be filed
not more than ten (10) days after the political subdivision gives notice
of the political subdivision's decision under section 3.5 of this chapter
or a determination under section 5 of this chapter to issue bonds or
enter into leases for a capital project that the person believes is the
result of a division of a controlled project that is prohibited by this
subsection. If the department of local government finance receives a
petition under this subsection, the department shall not later than thirty
(30) days after receiving the petition make a final determination on the
issue of whether the political subdivision divided a controlled project
in order to avoid the requirements of this section and section 3.5 of this
chapter. If the department of local government finance determines that
a political subdivision divided a controlled project in order to avoid the
requirements of this section and section 3.5 of this chapter and the
political subdivision continues to desire to proceed with the project, the
political subdivision may appeal the determination of the department
of local government finance to the Indiana board of tax review. A
political subdivision shall be considered to have divided a capital
project in order to avoid the requirements of this section and section
3.5 of this chapter if the result of one (1) or more of the subprojects
cannot reasonably be considered an independently desirable end in
itself without reference to another capital project. This subsection does
not prohibit a political subdivision from undertaking a series of capital
projects in which the result of each capital project can reasonably be
considered an independently desirable end in itself without reference
to another capital project.
(k) This subsection applies to a political subdivision for which a
petition requesting a public question has been submitted under section
3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
the political subdivision may adopt a resolution to withdraw a
controlled project from consideration in a public question. If the
legislative body provides a certified copy of the resolution to the county
auditor and the county election board not later than sixty-three (63)
days before the election at which the public question would be on the
HB 1120—LS 6559/DI 120 117
ballot, the public question on the controlled project shall not be placed
on the ballot and the public question on the controlled project shall not
be held, regardless of whether the county auditor has certified the
public question to the county election board. If the withdrawal of a
public question under this subsection requires the county election
board to reprint ballots, the political subdivision withdrawing the
public question shall pay the costs of reprinting the ballots. If a political
subdivision withdraws a public question under this subsection that
would have been held at a special election and the county election
board has printed the ballots before the legislative body of the political
subdivision provides a certified copy of the withdrawal resolution to
the county auditor and the county election board, the political
subdivision withdrawing the public question shall pay the costs
incurred by the county in printing the ballots. If a public question on a
controlled project is withdrawn under this subsection, a public question
under this section on the same controlled project or a substantially
similar controlled project may not be submitted to the voters earlier
than three hundred fifty (350) days after the date the resolution
withdrawing the public question is adopted.
(l) If a public question regarding a controlled project is placed on
the ballot to be voted on at an election under this section, the political
subdivision shall submit to the department of local government finance,
at least thirty (30) days before the election, the following information
regarding the proposed controlled project for posting on the
department's Internet web site:
(1) The cost per square foot of any buildings being constructed as
part of the controlled project.
(2) The effect that approval of the controlled project would have
on the political subdivision's property tax rate.
(3) The maximum term of the bonds or lease.
(4) The maximum principal amount of the bonds or the maximum
lease rental for the lease.
(5) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(6) The purpose of the bonds or lease.
(7) In the case of a controlled project proposed by a school
corporation:
(A) the current and proposed square footage of school building
space per student;
(B) enrollment patterns within the school corporation; and
(C) the age and condition of the current school facilities.
(m) If a majority of the eligible voters voting on the public question
HB 1120—LS 6559/DI 120 118
vote in opposition to the public question, a petition may be submitted
to the county auditor to request that the limit under subsection
(h)(2)(B) apply to the holding of a subsequent public question by the
political subdivision. If such a petition is submitted to the county
auditor and is signed by the lesser of:
(1) five hundred (500) persons who are either owners of property
within the political subdivision or registered voters residing
within the political subdivision; or
(2) five percent (5%) of the registered voters residing within the
political subdivision;
the limit under subsection (h)(2)(B) applies to the holding of a second
public question by the political subdivision and the limit under
subsection (h)(2)(A) does not apply to the holding of a second public
question by the political subdivision.
(n) At the request of a political subdivision that proposes to impose
property taxes to pay debt service on bonds or lease rentals on a lease
for a controlled project, the county auditor of a county in which the
political subdivision is located shall determine the estimated average
percentage of property tax increase on a homestead to be paid to the
political subdivision that must be included in the public question under
subsection (c) as follows:
STEP ONE: Determine the average assessed value of a homestead
located within the political subdivision.
STEP TWO: For purposes of determining the net assessed value
of the average homestead located within the political subdivision,
subtract:
(A) an amount for the homestead standard deduction under
IC 6-1.1-12-37 as if the homestead described in STEP ONE
was eligible for the deduction; and
(B) an amount for the supplemental homestead deduction
under IC 6-1.1-12-37.5 as if the homestead described in STEP
ONE was eligible for the deduction;
from the result of STEP ONE.
STEP THREE: Divide the result of STEP TWO by one hundred
(100).
STEP FOUR: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the political subdivision.
STEP FIVE: For purposes of determining net property tax liability
of the average homestead located within the political subdivision:
(A) multiply the result of STEP THREE by the result of STEP
FOUR; and
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(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5(a)(1).
STEP SIX: Determine the amount of the political subdivision's
part of the result determined in STEP FIVE.
STEP SEVEN: Determine the estimated tax rate that will be
imposed if the public question is approved by the voters.
STEP EIGHT: Multiply the result of STEP SEVEN by the result
of STEP THREE.
STEP NINE: Divide the result of STEP EIGHT by the result of
STEP SIX, expressed as a percentage.
(o) At the request of a political subdivision that proposes to impose
property taxes to pay debt service on bonds or lease rentals on a lease
for a controlled project, the county auditor of a county in which the
political subdivision is located shall determine the estimated average
percentage of property tax increase on a business property to be paid
to the political subdivision that must be included in the public question
under subsection (c) as follows:
STEP ONE: Determine the average assessed value of business
property located within the political subdivision.
STEP TWO: Divide the result of STEP ONE by one hundred
(100).
STEP THREE: Determine the overall average tax rate per one
hundred dollars ($100) of assessed valuation for the current year
imposed on property located within the political subdivision.
STEP FOUR: For purposes of determining net property tax
liability of the average business property located within the
political subdivision:
(A) multiply the result of STEP TWO by the result of STEP
THREE; and
(B) as appropriate, apply any currently applicable county
property tax credit rates and the credit for excessive property
taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
was three percent (3%).
STEP FIVE: Determine the amount of the political subdivision's
part of the result determined in STEP FOUR.
STEP SIX: Determine the estimated tax rate that will be imposed
if the public question is approved by the voters.
STEP SEVEN: Multiply the result of STEP TWO by the result of
STEP SIX.
STEP EIGHT: Divide the result of STEP SEVEN by the result of
STEP FIVE, expressed as a percentage.
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(p) The county auditor shall certify the estimated average
percentage of property tax increase on a homestead to be paid to the
political subdivision determined under subsection (n), and the
estimated average percentage of property tax increase on a business
property to be paid to the political subdivision determined under
subsection (o), in a manner prescribed by the department of local
government finance, and provide the certification to the political
subdivision that proposes to impose property taxes. The political
subdivision shall provide the certification to the county election board
and include the estimated average percentages in the language of the
public question at the time the language of the public question is
submitted to the county election board for approval as described in
subsection (c).
SECTION 12. IC 6-1.1-20-4.5, AS ADDED BY P.L.239-2023,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 4.5. (a) As used in this
section, "maintenance emergency" refers to a response to a condition
that is not otherwise subject to the application of section 1.1(a)(6) of
this chapter and includes:
(1) repair of a boiler or chiller system;
(2) roof repair;
(3) storm damage repair; or
(4) any other repair that the department determines is a
maintenance emergency for which waiver of the application of
section 3.5(a)(1)(D) of this chapter (before its expiration) is
warranted.
(b) A political subdivision may submit a request to the department
to waive the application of section 3.5(a)(1)(D) of this chapter, (before
its expiration), if the proposed controlled project of the political
subdivision is to address a maintenance emergency with respect to a
building owned or leased by the political subdivision.
(c) The department shall require the political subdivision to submit
any information that the department considers necessary to determine
whether the condition that the political subdivision contends is a
maintenance emergency.
(d) The department shall review a request and issue a determination
not later than forty-five (45) days after the department receives a
request under this section determining whether the condition that the
political subdivision contends is a maintenance emergency is sufficient
to waive the application of section 3.5(a)(1)(D) of this chapter. (before
its expiration). If the department determines that the condition is a
maintenance emergency then section 3.5(a)(1)(D) of this chapter
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(before its expiration) is waived and does not apply to the proposed
controlled project.
(e) A waiver of the application of section 3.5(a)(1)(D) of this
chapter (before its expiration) in accordance with this section may not
be construed as a waiver of any other requirement of this chapter with
respect to the proposed controlled project.
(f) This section expires December 31, 2024.
SECTION 13. IC 6-1.1-39-3, AS AMENDED BY P.L.257-2019,
SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 3. (a) The fiscal body shall publish notice of the
adoption and substance of the ordinance in accordance with IC 5-3-1
after:
(1) the adoption of the ordinance under section 2 of this chapter;
and
(2) the fiscal body receives preliminary certification from the
Indiana economic development corporation under section 2.5 of
this chapter that the proposed industrial development project
qualifies as a qualified industrial development project and that
there is a reasonable likelihood that a loan from the industrial
development fund will be approved under IC 5-28-9-12.
The notice must state the general boundaries of the area designated as
an economic development district and must state that written
remonstrances may be filed with the fiscal body until the time
designated for the hearing. The notice must also name the place, date,
and time when the fiscal body will receive and hear remonstrances and
objections from persons interested in or affected by the proceedings
pertaining to the proposed economic development district designation
and will determine the public utility and benefit of the proposed
economic development district designation. All persons affected in any
manner by the hearing, including all taxpayers of the economic
development district, shall be considered notified of the pendency of
the hearing and of subsequent acts, hearings, adjournments, and orders
of the fiscal body affecting the economic development district if the
fiscal body gives the notice required by this section.
(b) A copy of the notice of the hearing shall be filed with the office
of the unit's plan commission, board of zoning appeals, works board,
park board, building commissioner, and any other departments, bodies,
or officers of the unit having to do with unit planning, variances from
zoning ordinances, land use, or the issuance of building permits.
(c) At the hearing, which may be recessed and reconvened from
time to time, the fiscal body shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
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objections that have been filed. After considering the evidence
presented, the fiscal body shall take final action determining the public
utility and benefit of the proposed economic development district
designation and confirming, modifying and confirming, or rescinding
the ordinance. The final action taken by the fiscal body shall be
recorded and is final and conclusive, except that an appeal may be
taken in the manner prescribed by section 4 of this chapter.
(d) If the fiscal body confirms, or modifies and confirms, the
ordinance, the fiscal body shall file a copy of the ordinance with both
the auditor of the county in which the unit is located and the
department, together with any supporting documents that are relevant
to the computation of assessed values in the allocation area, within
thirty (30) days after the date on which the fiscal body takes final action
on the ordinance.
(e) A fiscal body is prohibited from removing a parcel of real
property from an existing economic development district or an
existing tax increment financing district, as applicable under this
chapter, and subsequently adding the same parcel of real property
back into the economic development district or tax increment
financing district during the life of the economic development
district or tax increment financing district.
SECTION 14. IC 6-1.1-39-5, AS AMENDED BY P.L.257-2019,
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 5. (a) A declaratory ordinance adopted under
section 2 of this chapter and confirmed under section 3 of this chapter
must include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. The allocation provision must apply to the entire economic
development district. The allocation provisions must require that any
property taxes subsequently levied by or for the benefit of any public
body entitled to a distribution of property taxes on taxable property in
the economic development district be allocated and distributed as
follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units. However, if the effective date of the
allocation provision of a declaratory ordinance is after March 1,
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1985, and before January 1, 1986, and if an improvement to
property was partially completed on March 1, 1985, the unit may
provide in the declaratory ordinance that the taxes attributable to
the assessed value of the property as finally determined for March
1, 1984, shall be allocated to and, when collected, paid into the
funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of the
property tax proceeds in excess of those described in subdivision
(1), as specified in the declaratory ordinance, shall be allocated to
the unit for the economic development district and, when
collected, paid into a special fund established by the unit for that
economic development district that may be used only to pay the
principal of and interest on obligations owed by the unit under
IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
industrial development programs in, or serving, that economic
development district. The amount not paid into the special fund
shall be paid to the respective units in the manner prescribed by
subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on which
the obligations can be redeemed) on obligations owed by the unit
under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
of industrial development programs in, or serving, that economic
development district, money in the special fund in excess of that
amount shall be paid to the respective taxing units in the manner
prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
economic development district that is annexed by any taxing unit after
the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated upon
or in, or added to, the economic development district effective on the
next assessment date after the petition.
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(e) Notwithstanding any other law, the assessed value of all taxable
property in the economic development district, for purposes of tax
limitation, property tax replacement, and formulation of the budget, tax
rate, and tax levy for each political subdivision in which the property
is located, is the lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment of a group of parcels under a reassessment
plan prepared under IC 6-1.1-4-4.2 the department of local government
finance shall adjust the base assessed value one (1) time to neutralize
any effect of the reassessment on the property tax proceeds allocated
to the district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall adjust
the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the district under
this section. However, the adjustments under this subsection may not
include the effect of property tax abatements under IC 6-1.1-12.1.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on depreciable
personal property that the unit has by ordinance allocated to the
economic development district. However, the ordinance may not
limit the allocation to taxes on depreciable personal property with
any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to an
economic development district property taxes imposed under IC 6-1.1
on depreciable personal property that has a useful life in excess of eight
(8) years, the ordinance continues in effect until an ordinance is
adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means, subject to
subsection (i):
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance,
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within the economic development district, as finally determined
for the current assessment date.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997.
(i) If a fiscal body confirms, or modifies and confirms, an ordinance
under section 3 of this chapter and the fiscal body makes either of the
filings required under section 3(d) of this chapter after the first
anniversary of the effective date of the allocation provision in the
ordinance, the auditor of the county in which the unit is located shall
compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the
department.
(j) A fiscal body is prohibited from removing a parcel of real
property from an existing economic development district or an
existing tax increment financing district, as applicable under this
chapter, and subsequently adding the same parcel of real property
back into the economic development district or tax increment
financing district during the life of the economic development
district or tax increment financing district.
SECTION 15. IC 6-1.1-49-10, AS ADDED BY P.L.95-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 10. (a) If an individual who is receiving the
credit provided by this chapter:
(1) knows or should have known that the individual does not
qualify for the credit under this chapter; or
(2) changes the use of the individual's property so that part or all
of the property no longer qualifies for the credit under this
chapter;
the individual must file a certified statement with the county auditor,
notifying the county auditor that subdivision (1) or (2) applies, not
more than sixty (60) days after the date subdivision (1) or (2) first
applies.
(b) An individual who fails to file the statement required by this
section is liable for any additional taxes that would have been due on
the property if the individual had filed the statement as required by this
section, plus a civil penalty equal to ten percent (10%) of the additional
taxes due. The additional taxes owed plus the civil penalty become part
of the property tax liability for purposes of this article.
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(c) The civil penalty imposed under this section is in addition to any
interest and penalties for a delinquent payment that might otherwise be
due. One percent (1%) of the total civil penalty collected under this
section shall be transferred by the county to the department of local
government finance for use by the department in establishing and
maintaining the homestead property data base under IC 6-1.1-12-37(i)
IC 6-1.1-12-37(j) and, to the extent there is money remaining, for any
other purposes of the department.
SECTION 16. IC 8-22-3.5-6, AS AMENDED BY P.L.257-2019,
SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 6. (a) After adoption of the resolution under
section 5 of this chapter, the commission shall:
(1) publish notice of the adoption and substance of the resolution
in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit that has
authority to levy property taxes in the geographic area where the
airport development zone is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the airport
development zone, including the following:
(i) The estimated economic benefits and costs incurred by
the airport development zone, as measured by increased
employment and anticipated growth of real property
assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the area designated as
an airport development zone and must state that written remonstrances
may be filed with the commission until the time designated for the
hearing. The notice must also name the place, date, and time when the
commission will receive and hear remonstrances and objections from
persons interested in or affected by the proceedings pertaining to the
proposed airport development zone designation and will determine the
public utility and benefit of the proposed airport development zone
designation. The commission shall file the information required by
subdivision (2) with the officers of the taxing unit who are authorized
to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 at least ten
(10) days before the date of the public hearing. All persons affected in
any manner by the hearing, including all taxpayers within the taxing
district of the airport authority, shall be considered notified of the
pendency of the hearing and of subsequent acts, hearings,
adjournments, and orders of the commission affecting the airport
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development zone if the commission gives the notice required by this
section.
(b) At the hearing, which may be recessed and reconvened from
time to time, the commission shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the commission shall take final action determining the
public utility and benefit of the proposed airport development zone
designation and confirming, modifying and confirming, or rescinding
the resolution. The final action taken by the commission shall be
recorded and is final and conclusive, except that an appeal may be
taken in the manner prescribed by section 7 of this chapter.
(c) If the commission confirms, or modifies and confirms, the
resolution, the commission shall file a copy of the resolution with both
the auditor of the county in which the airport development zone is
located and the department of local government finance, together with
any supporting documents that are relevant to the computation of
assessed values in the airport development zone, within thirty (30) days
after the date on which the commission takes final action on the
resolution.
(d) A commission is prohibited from removing a parcel of real
property from an existing airport development zone or an existing
tax increment financing district, as applicable under this chapter,
and subsequently adding the same parcel of real property back into
the airport development zone or tax increment financing district
during the life of the airport development zone or tax increment
financing district.
SECTION 17. IC 8-22-3.5-9, AS AMENDED BY P.L.174-2022,
SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 9. (a) As used in this section, "base assessed
value" means, subject to subsection (k):
(1) the net assessed value of all the tangible property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
resolution adopted under section 5 or 9.5 of this chapter,
notwithstanding the date of the final action taken under section 6
of this chapter; plus
(2) to the extent it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance,
within the airport development zone, as finally determined for the
current assessment date.
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However, subdivision (2) applies only to an airport development zone
established after June 30, 1997, and the portion of an airport
development zone established before June 30, 1997, that is added to an
existing airport development zone.
(b) A resolution adopted under section 5 of this chapter and
confirmed under section 6 of this chapter must include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section.
(c) The allocation provision must:
(1) apply to the entire airport development zone; and
(2) require that any property tax on taxable tangible property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the airport
development zone be allocated and distributed as provided in
subsections (d) and (e).
(d) Except as otherwise provided in this section:
(1) the proceeds of the taxes attributable to the lesser of:
(A) the assessed value of the tangible property for the
assessment date with respect to which the allocation and
distribution is made; or
(B) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units; and
(2) the excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution are made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(e) All of the property tax proceeds in excess of those described in
subsection (d) shall be allocated to the eligible entity for the airport
development zone and, when collected, paid into special funds as
follows:
(1) The commission may determine that a portion of tax proceeds
shall be allocated to a training grant fund to be expended by the
commission without appropriation solely for the purpose of
reimbursing training expenses incurred by public or private
entities in the training of employees for the qualified airport
development project.
(2) The commission may determine that a portion of tax proceeds
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shall be allocated to a debt service fund and dedicated to the
payment of principal and interest on revenue bonds or a loan
contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
payment of leases for a qualified airport development project, or
to the payment of principal and interest on bonds issued by an
eligible entity to pay for qualified airport development projects in
the airport development zone or serving the airport development
zone.
(3) The commission may determine that a part of the tax proceeds
shall be allocated to a project fund and used to pay expenses
incurred by the commission for a qualified airport development
project that is in the airport development zone or is serving the
airport development zone.
(4) Except as provided in subsection (f), all remaining tax
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds allocated
to the project fund in subsection (e)(3) in the following year will
exceed the amount necessary to satisfy amounts required under
subsection (e).
(2) Provide a written notice to the county auditor and the officers
who are authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly or
partly located within the allocation area. The notice must:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1); or
(B) state that the commission has determined that there are no
excess tax proceeds that may be allocated to the respective
taxing units in the manner prescribed in subsection (d)(1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund is
sufficient to pay all outstanding principal and interest (to the earliest
date on which the obligations can be redeemed) on revenue bonds
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issued by the board of aviation commissioners or airport authority for
the financing of qualified airport development projects, all lease rentals
payable on leases of qualified airport development projects, and all
costs and expenditures associated with all qualified airport
development projects, money in the debt service fund and in the project
fund in excess of those amounts shall be paid to the respective taxing
units in the manner prescribed by subsection (d)(1).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon petition
of the commission, reassess the taxable tangible property situated upon
or in, or added to, the airport development zone effective on the next
assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all taxable
tangible property in the airport development zone, for purposes of tax
limitation, property tax replacement, and formulation of the budget, tax
rate, and tax levy for each political subdivision in which the property
is located is the lesser of:
(1) the assessed value of the tangible property as valued without
regard to this section; or
(2) the base assessed value.
(k) If the commission confirms, or modifies and confirms, a
resolution under section 6 of this chapter and the commission makes
either of the filings required under section 6(c) of this chapter after the
first anniversary of the effective date of the allocation provision, the
auditor of the county in which the airport development zone is located
shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(l) For an airport development zone established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system, along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3).
(m) A commission is prohibited from removing a parcel of real
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property from an existing airport development zone or an existing
tax increment financing district, as applicable under this chapter,
and subsequently adding the same parcel of real property back into
the airport development zone or tax increment financing district
during the life of the airport development zone or tax increment
financing district.
SECTION 18. IC 20-26-12-1, AS AMENDED BY P.L.201-2023,
SECTION 163, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Except as provided in
subsection (b) but notwithstanding any other law, each governing body
of a school corporation and each organizer of a charter school shall
purchase from a publisher, either individually or through a purchasing
cooperative of school corporations, as applicable, the curricular
materials selected by the proper local officials, and shall provide at no
cost the curricular materials to each student enrolled in the school
corporation or charter school. Curricular materials provided to a
student under this section remain the property of the governing body of
the school corporation or organizer of the charter school.
(b) This section does not prohibit a governing body of a school
corporation or an organizer of a charter school from assessing and
collecting a reasonable fee for lost or significantly damaged curricular
materials in accordance with rules established by the state board under
subsection (c). Fees collected under this subsection must be deposited
in the: separate curricular materials account established under
IC 20-40-22-9 for
(1) education fund of the school corporation; or
(2) education fund of the charter school, or, if the charter
school does not have an education fund, the same fund into
which state tuition support is deposited for the charter school;
in which the student was enrolled at the time the fee was imposed.
(c) The state board shall adopt rules under IC 4-22-2, including
emergency rules in the manner provided in IC 4-22-2-37.1, to
implement this section.
SECTION 19. IC 20-26-12-2, AS AMENDED BY P.L.201-2023,
SECTION 164, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 2. (a) A governing body or an
organizer of a charter school may purchase from a publisher any
curricular material selected by the proper local officials. The governing
body or the organizer of a charter school may not rent the curricular
materials to students enrolled in any public school.
(b) A governing body may rent curricular materials to students
enrolled in any nonpublic school that is located within the attendance
HB 1120—LS 6559/DI 120 132
unit served by the governing body. An organizer of a charter school
may rent curricular materials to students enrolled in any nonpublic
school.
(c) A governing body or an organizer of a charter school may
negotiate the rental rate for the curricular materials rented to any
nonpublic school under subsection (b).
(d) A governing body shall collect and deposit the amounts received
from the rental of curricular materials to a nonpublic school into the
curricular materials account, in accordance with IC 20-40-22-9, in
equal amounts for each public school of the school corporation. school
corporation's education fund.
(e) An organizer of a charter school shall deposit all money received
from the rental of curricular materials to a nonpublic school into the
charter school's curricular materials account described in
IC 20-40-22-9. education fund, or, if the charter school does not
have an education fund, the same fund into which state tuition
support is deposited for the charter school.
(f) This section does not limit other laws.
SECTION 20. IC 20-28-9-28, AS AMENDED BY P.L.246-2023,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 28. (a) Subject to subsection (g), for each school
year in a state fiscal year beginning after June 30, 2023, a school
corporation shall expend an amount for teacher compensation that is
not less than an amount equal to sixty-two percent (62%) of the state
tuition support distributed to the school corporation during the state
fiscal year. For purposes of determining whether a school corporation
has complied with this requirement, the amount a school corporation
expends for teacher compensation shall include the amount the school
corporation expends for adjunct teachers, supplemental pay for
teachers, stipends, and for participating in a special education
cooperative or an interlocal agreement or consortium that is directly
attributable to the compensation of teachers employed by the
cooperative or interlocal agreement or consortium. Teacher benefits
include all benefit categories collected by the department for Form 9
purposes.
(b) If a school corporation determines that the school corporation
cannot comply with the requirement under subsection (a) for a
particular school year, the school corporation shall apply for a waiver
from the department.
(c) The waiver application must include an explanation of the
financial challenges, with detailed data, that preclude the school
corporation from meeting the requirement under subsection (a) and
HB 1120—LS 6559/DI 120 133
describe the cost saving measures taken by the school corporation in
attempting to meet the requirement in subsection (a). The waiver may
also include an explanation of an innovative or efficient approach in
delivering instruction that is responsible for the school corporation
being unable to meet the requirement under subsection (a).
(d) If, after review, the department determines that the school
corporation has exhausted all reasonable efforts in attempting to meet
the requirement in subsection (a), the department may grant the school
corporation a one (1) year exception from the requirement.
(e) A school corporation that receives a waiver under this section
shall work with the department to develop a plan to identify additional
cost saving measures and any other steps that may be taken to allow the
school corporation to meet the requirement under subsection (a).
(f) A school corporation may not receive more than three (3)
waivers under this section.
(g) For purposes of determining whether a school corporation
has complied with the requirement in subsection (a), distributions
from the curricular materials fund established by IC 20-40-22-5
that are deposited in a school corporation's education fund in a
state fiscal year are not considered to be state tuition support
distributed to the school corporation during the state fiscal year.
(g) (h) Before November 1, 2022, and before November 1 of each
year thereafter, the department shall submit a report to the legislative
council in an electronic format under IC 5-14-6 and the state budget
committee that contains information as to:
(1) the percent and amount that each school corporation expended
and the statewide total expended for teacher compensation;
(2) the percent and amount that each school corporation expended
and statewide total expended for teacher benefits, including
health, dental, life insurance, and pension benefits;
(3) whether the school corporation met the requirement set forth
in subsection (a); and
(4) whether the school corporation received a waiver under
subsection (d).
SECTION 21. IC 20-40-2-3, AS AMENDED BY P.L.244-2017,
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 3. Distributions of:
(1) tuition support; and
(2) money for curricular materials;
shall be received in the education fund.
SECTION 22. IC 20-40-2-4, AS AMENDED BY P.L.201-2023,
SECTION 182, IS AMENDED TO READ AS FOLLOWS
HB 1120—LS 6559/DI 120 134
[EFFECTIVE JULY 1, 2024]: Sec. 4. Except as provided in
IC 36-1-8-5.1 (school corporation rainy day fund), the education fund
of the school corporation or, if applicable, a charter school, shall be
used only to pay for expenses:
(1) allocated to student instruction and learning under IC 20-42.5;
and
(2) related to the cost of providing curricular materials.
The fund may not be used to pay directly any expenses that are not
allocated to student instruction and learning under IC 20-42.5, are not
expenses related to the cost of providing curricular materials, or
expenses permitted to be paid from the school corporation's or charter
school's operations fund.
SECTION 23. IC 20-40-2-5.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 5.5. The department may take
action, including the establishment of an account code, to track
expenditures of money distributed for curricular materials.
SECTION 24. IC 20-40-2-6, AS AMENDED BY P.L.201-2023,
SECTION 183, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 6. (a) Each school corporation and,
if applicable, charter school, shall make every reasonable effort to
transfer not more than fifteen percent (15%) of the total revenue
deposited in the school corporation's or, if applicable, charter school's,
education fund from the school corporation's or, if applicable, charter
school's, education fund to the school corporation's or, if applicable,
charter school's, operations fund during a calendar year.
(b) Only after the transfer is authorized by the governing body in a
public meeting with public notice, money in the education fund may be
transferred to the operations fund to cover expenditures that are not
allocated to student instruction and learning under IC 20-42.5 or
related to the cost of providing curricular materials. The amount
transferred from the education fund to the operations fund shall be
reported by the school corporation or, if applicable, charter school, to
the department. The transfers made during the:
(1) first six (6) months of each state fiscal year shall be reported
before January 31 of the following year; and
(2) last six (6) months of each state fiscal year shall be reported
before July 31 of that year.
(c) The report must include information as required by the
department and in the form required by the department.
(d) The department must post the report submitted under subsection
(b) on the department's website.
HB 1120—LS 6559/DI 120 135
(e) Beginning in 2020, the department shall track for each school
corporation or, if applicable, charter school, transfers from the school
corporation's or, if applicable, charter school's, education fund to its
operations fund for the preceding six (6) month period. Beginning in
2021, before March 1 of each year, the department shall compile an
excessive education fund transfer list comprised of all school
corporations or, if applicable, charter schools, that transferred more
than fifteen percent (15%) of the total revenue deposited in the school
corporation's or, if applicable, charter school's, education fund from the
school corporation's or, if applicable, charter school's, education fund
to the school corporation's or, if applicable, charter school's, operations
fund during the immediately preceding calendar year. A school
corporation or, if applicable, charter school, that is not included on the
excessive education fund transfer list is considered to have met the
education fund transfer target percentage for the immediately preceding
calendar year.
SECTION 25. IC 20-40-2-7, AS ADDED BY P.L.244-2017,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 7. (a) On January 1, 2019, the balance, as of
December 31, 2018, in the school corporation's general fund shall be
transferred to the education fund.
(b) Before March 1, 2019, the governing body of a school
corporation may transfer to the school corporation's operations fund,
from the amounts transferred from the school corporation's general
fund under subsection (a), any amounts that are not allocated to student
instruction and learning under IC 20-42.5 or related to the cost of
providing curricular materials. A school corporation may make a
transfer under this section only after complying with section 6 of this
chapter, including the requirements for public notice and a public
hearing.
SECTION 26. IC 20-40-22-9 IS REPEALED [EFFECTIVE JULY
1, 2024]. Sec. 9. Each public school shall establish a separate curricular
materials account for the purpose of receiving distributions under this
chapter, amounts received from the rental of curricular materials to
nonpublic schools, and fees collected under IC 20-26-12-1(b) for lost
or significantly damaged curricular materials. A public school that
receives a distribution of money from the curricular materials fund
under this chapter shall deposit the distributed amount in the public
school's curricular materials account. Money in the account may be
used only for the costs of curricular materials.
SECTION 27. IC 20-40-22-10 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
HB 1120—LS 6559/DI 120 136
[EFFECTIVE JULY 1, 2024]: Sec. 10. (a) A school maintained by a
school corporation that receives a distribution of money from the
curricular materials fund under this chapter shall deposit the
amount in the education fund of the school corporation that
maintains the school. A charter school that receives a distribution
of money from the curricular materials fund under this chapter
shall deposit the amount in the charter school's education fund, or,
if the charter school does not have an education fund, in the same
fund into which state tuition support is deposited for the charter
school.
(b) Money received from the curricular materials fund under
this chapter by a public school may be used only for the costs of
curricular materials.
(c) The department may take action, including the establishment
of an account code for the funds into which distributions are
deposited under this section, to track expenditures of money
distributed for curricular materials.
SECTION 28. IC 36-7-14-17.5, AS AMENDED BY P.L.146-2008,
SECTION 729, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 17.5. (a) In addition to the
requirements of section 17 of this chapter, if the resolution or plan for
an existing redevelopment project area is proposed to be amended in
a way that changes:
(1) parts of the area that are to be devoted to a public way, levee,
sewerage, park, playground, or other public purposes;
(2) the proposed use of the land in the area; or
(3) requirements for rehabilitation, building requirements,
proposed zoning, maximum densities, or similar requirements;
the commission must, at least ten (10) days before the public hearing
under section 17 of this chapter, send the notice required by section 17
of this chapter by first class mail to affected neighborhood associations.
(b) In addition to the requirements of section 17 of this chapter, if
the resolution or plan for an existing redevelopment project area is
proposed to be amended in a way that:
(1) enlarges the boundaries of the area; or
(2) adds one (1) or more parcels to the list of parcels to be
acquired;
the commission must, at least ten (10) days before the public hearing
under section 17 of this chapter, send the notice required by section 17
of this chapter by first class mail to affected neighborhood associations
and to persons owning property that is in the proposed enlargement of
the area or that is proposed to be added to the acquisition list. If the
HB 1120—LS 6559/DI 120 137
enlargement of an area is proposed, notice must also be filed in
accordance with section 17(b) of this chapter, and agencies and officers
may not take actions prohibited by section 17(b) of this chapter in the
proposed enlarged area.
(c) The commission may require that neighborhood associations
register with the commission. The commission may adopt a rule that
requires that a neighborhood association encompass a part of the
geographic area included in or proposed to be included in a
redevelopment project area, urban renewal area, or economic
development area to qualify as an affected neighborhood association.
(d) A commission is prohibited from removing a parcel of real
property from an existing redevelopment project area or an
existing tax increment financing district, as applicable under this
chapter, and subsequently adding the same parcel of real property
back into the redevelopment project area or tax increment
financing district during the life of the redevelopment project area
or tax increment financing district.".
Page 16, between lines 13 and 14, begin a new paragraph and insert:
"SECTION 30. IC 36-7-15.1-10.5, AS AMENDED BY
P.L.146-2008, SECTION 748, IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10.5. (a) In addition to
the requirements of section 10 of this chapter, if the resolution or plan
for an existing redevelopment project area or urban renewal area is
proposed to be amended in a way that changes:
(1) parts of the area that are to be devoted to a public way, levee,
sewerage, park, playground, or other public purpose;
(2) the proposed use of the land in the area; or
(3) requirements for rehabilitation, building requirements,
proposed zoning, maximum densities, or similar requirements;
the commission must, at least ten (10) days before the public hearing
under section 10 of this chapter, send the notice required by section 10
of this chapter by first class mail to affected neighborhood associations.
(b) In addition to the requirements of section 10 of this chapter, if
the resolution or plan for an existing redevelopment project area or
urban renewal area is proposed to be amended in a way that:
(1) enlarges the boundaries of the area; or
(2) adds one (1) or more parcels to the list of parcels to be
acquired;
the commission must, at least ten (10) days before the public hearing
under section 10 of this chapter, send the notice required by section 10
of this chapter by first class mail to affected neighborhood associations
and to persons owning property that is in the proposed enlargement of
HB 1120—LS 6559/DI 120 138
the area or that is proposed to be added to the acquisition list. If the
enlargement of an area is proposed, notice must also be filed in
accordance with section 10(b) of this chapter, and agencies and officers
may not take actions prohibited by section 10(b) in the proposed
enlarged area.
(c) The commission may require that neighborhood associations
register with the commission. The commission may adopt a rule that
requires that a neighborhood association encompass a part of the
geographic area included in or proposed to be included in a
redevelopment project area, urban renewal area, or economic
development area to qualify as an affected neighborhood association.
(d) A commission is prohibited from removing a parcel of real
property from an existing redevelopment project area or urban
renewal area or an existing tax increment financing district, as
applicable under this chapter, and subsequently adding the same
parcel of real property back into the redevelopment project area,
urban renewal area, or tax increment financing district during the
life of the redevelopment project area, urban renewal area, or tax
increment financing district.
SECTION 31. IC 36-7-30-13, AS AMENDED BY P.L.257-2019,
SECTION 136, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 13. (a) The reuse authority must
conduct a public hearing before amending a resolution or plan for a
military base reuse area. The reuse authority shall give notice of the
hearing in accordance with IC 5-3-1. The notice must do the following:
(1) Set forth the substance of the proposed amendment.
(2) State the time and place where written remonstrances against
the proposed amendment may be filed.
(3) Set forth the time and place of the hearing.
(4) State that the reuse authority will hear any person who has
filed a written remonstrance during the filing period set forth in
subdivision (2).
(b) For the purposes of this section, the consolidation of areas is not
considered the enlargement of the boundaries of an area.
(c) If the reuse authority proposes to amend a resolution or plan, the
military base reuse authority is not required to have evidence or make
findings that were required for the establishment of the original
military base reuse area. However, the reuse authority must make the
following findings before approving the amendment:
(1) The amendment is reasonable and appropriate when
considered in relation to the original resolution or plan and the
purposes of this chapter.
HB 1120—LS 6559/DI 120 139
(2) The resolution or plan, with the proposed amendment,
conforms to the comprehensive plan for the unit.
(d) Notwithstanding subsections (a) and (c), if the resolution or plan
is proposed to be amended in a way that enlarges the original
boundaries of the area by more than twenty percent (20%), the reuse
authority must use the procedure provided for the original
establishment of areas and must comply with sections 10 through 12 of
this chapter.
(e) At the hearing on the amendments, the reuse authority shall
consider written remonstrances that are filed. The action of the reuse
authority on the amendment is final and conclusive, except that an
appeal of the reuse authority's action may be taken under section 14 of
this chapter.
(f) If the reuse authority confirms, or modifies and confirms, the
resolution and the resolution includes a provision establishing or
amending an allocation provision under section 25 of this chapter, the
reuse authority shall file a copy of the resolution with both the auditor
of the county in which the proposed project is located and the
department of local government finance, together with any supporting
documents that are relevant to the computation of assessed values in
the allocation area, within thirty (30) days after the date on which the
reuse authority takes final action on the resolution.
(g) A reuse authority is prohibited from removing a parcel of
real property from an existing military base reuse area or an
existing tax increment financing district, as applicable under this
chapter, and subsequently adding the same parcel of real property
back into the military base reuse area or tax increment financing
district during the life of the military base reuse area or tax
increment financing district.
SECTION 32. IC 36-7-30.5-18, AS AMENDED BY P.L.257-2019,
SECTION 140, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 18. (a) The development authority
must conduct a public hearing before amending a resolution or plan for
a military base development area. The development authority shall give
notice of the hearing in accordance with IC 5-3-1. The notice must do
the following:
(1) Set forth the substance of the proposed amendment.
(2) State the time and place where written remonstrances against
the proposed amendment may be filed.
(3) Set forth the date, time, and place of the hearing.
(4) State that the development authority will hear any person who
has filed a written remonstrance during the filing period set forth
HB 1120—LS 6559/DI 120 140
in subdivision (2).
(b) For the purposes of this section, the consolidation of areas is not
considered the enlargement of the boundaries of an area.
(c) If the development authority proposes to amend a resolution or
plan, the development authority is not required to have evidence or
make findings that were required for the establishment of the original
military base development area. However, the development authority
must make the following findings before approving the amendment:
(1) The amendment is reasonable and appropriate when
considered in relation to the original resolution or plan and the
purposes of this chapter.
(2) The resolution or plan, with the proposed amendment,
conforms to the comprehensive plan for an affected unit.
(d) Notwithstanding subsections (a) and (c), if the resolution or plan
is proposed to be amended in a way that enlarges the original
boundaries of the area by more than twenty percent (20%), the
development authority must use the procedure provided for the original
establishment of areas and must comply with sections 16 through 17 of
this chapter.
(e) At the hearing on the amendments, the development authority
shall consider written remonstrances that are filed. The action of the
development authority on the amendment is final and conclusive,
except that an appeal of the development authority's action may be
taken under section 19 of this chapter.
(f) If the development authority confirms, or modifies and confirms,
the resolution and the resolution includes a provision establishing or
amending an allocation provision under section 30 of this chapter, the
development authority shall file a copy of the resolution with both the
auditor of the county in which the proposed project is located and the
department of local government finance, together with any supporting
documents that are relevant to the computation of assessed values in
the allocation area, within thirty (30) days after the date on which the
development authority takes final action on the resolution.
(g) A development authority is prohibited from removing a
parcel of real property from an existing military base development
area or an existing tax increment financing district, as applicable
under this chapter, and subsequently adding the same parcel of
real property back into the military base development area or tax
increment financing district during the life of the military base
development area or tax increment financing district.
SECTION 33. IC 36-7-32-15, AS AMENDED BY P.L.257-2019,
SECTION 144, IS AMENDED TO READ AS FOLLOWS
HB 1120—LS 6559/DI 120 141
[EFFECTIVE JULY 1, 2024]: Sec. 15. (a) Subject to the approval of
the legislative body of the unit that established the redevelopment
commission, the redevelopment commission may adopt a resolution
designating a certified technology park as an allocation area for
purposes of the allocation and distribution of property taxes.
(b) After adoption of the resolution under subsection (a), the
redevelopment commission shall:
(1) publish notice of the adoption and substance of the resolution
in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit that has
authority to levy property taxes in the geographic area where the
certified technology park is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the certified
technology park, including the following:
(i) The estimated economic benefits and costs incurred by
the certified technology park, as measured by increased
employment and anticipated growth of real property
assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the certified technology
park and must state that written remonstrances may be filed with the
redevelopment commission until the time designated for the hearing.
The notice must also name the place, date, and time when the
redevelopment commission will receive and hear remonstrances and
objections from persons interested in or affected by the proceedings
pertaining to the proposed allocation area and will determine the public
utility and benefit of the proposed allocation area. The commission
shall file the information required by subdivision (2) with the officers
of the taxing unit who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 at least ten (10) days before the date of the
public hearing. All persons affected in any manner by the hearing,
including all taxpayers within the taxing district of the redevelopment
commission, shall be considered notified of the pendency of the
hearing and of subsequent acts, hearings, adjournments, and orders of
the redevelopment commission affecting the allocation area if the
redevelopment commission gives the notice required by this section.
(c) At the hearing, which may be recessed and reconvened
periodically, the redevelopment commission shall hear all persons
interested in the proceedings and shall consider all written
remonstrances and objections that have been filed. After considering
HB 1120—LS 6559/DI 120 142
the evidence presented, the redevelopment commission shall take final
action determining the public utility and benefit of the proposed
allocation area confirming, modifying and confirming, or rescinding
the resolution. The final action taken by the redevelopment commission
shall be recorded and is final and conclusive, except that an appeal may
be taken in the manner prescribed by section 16 of this chapter.
(d) If the redevelopment commission confirms, or modifies and
confirms, the resolution, the redevelopment commission shall file a
copy of the resolution with both the auditor of the county in which the
certified technology park is located and the department of local
government finance, together with any supporting documents that are
relevant to the computation of assessed values in the allocation area,
within thirty (30) days after the date on which the redevelopment
commission takes final action on the resolution.
(e) A redevelopment commission is prohibited from removing
a parcel of real property from an existing certified technology park
or an existing tax increment financing district, as applicable under
this chapter, and subsequently adding the same parcel of real
property back into the certified technology park or tax increment
financing district during the life of the certified technology park or
tax increment financing district.".
Page 19, between lines 28 and 29, begin a new paragraph and insert:
"SECTION 36. [EFFECTIVE UPON PASSAGE] (a) As used in
this SECTION, "public school" has the meaning set forth in
IC 20-40-22-4.
(b) Any balance in a public school's curricular materials
account established under IC 20-40-22-9, as repealed by this act,
shall be transferred to:
(1) in the case of a school maintained by a school corporation,
the education fund of the school corporation that maintains
the school; and
(2) in the case of a charter school, the education fund of the
charter school, or, if the charter school does not have an
education fund, the same fund into which state tuition support
is deposited for the charter school;
on June 30, 2024.
(c) This SECTION expires July 1, 2024.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
HB 1120—LS 6559/DI 120 143
(Reference is to HB 1120 as introduced.)
THOMPSON
Committee Vote: yeas 16, nays 8.
HB 1120—LS 6559/DI 120