*EH1120.1*
February 28, 2024
ENGROSSED
HOUSE BILL No. 1120
_____
DIGEST OF HB 1120 (Updated February 27, 2024 9:46 am - DI 120)
Citations Affected: IC 6-1.1; 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.
Allows that, for purposes of various property tax deductions, an
individual has until January 15 of a calendar year in which property
taxes are first due and payable to complete, date, and file the required
certified statement with the county auditor. Extends through 2025 the
expiration of 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 political subdivision's total debt service tax rate does not include
a tax rate approved by voters for a referendum debt service tax levy.
Extends through 2026 the calculation to be used in determining the
maximum levy growth quotient as added in the 2023 session in house
bill 1499. 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
(Continued next page)
Effective: Upon passage; January 1, 2023 (retroactive); January 1,
2024 (retroactive); July 1, 2024; January 1, 2025.
Thompson, Clere, Cherry
(SENATE SPONSOR — HOLDMAN)
January 8, 2024, read first time and referred to Committee on Ways and Means.
January 25, 2024, amended, reported — Do Pass.
January 29, 2024, read second time, amended, ordered engrossed.
January 30, 2024, engrossed. Read third time, passed. Yeas 73, nays 21.
SENATE ACTION
February 7, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
February 27, 2024, amended, reported favorably — Do Pass.
EH 1120—LS 6559/DI 120 Digest Continued
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. 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. Requires the state and local tax review task
force established in the 2023 session in senate bill 3 to study the
following topics: (1) Changing the qualification requirements for a civil
taxing unit to be eligible for a levy increase in excess of limitations. (2)
Requiring certain projects of a political subdivision to be subject to:
(A) the petition and remonstrance process if the political subdivision's
total debt service tax rate is more than $0.40 per $100 dollars of
assessed value, but less than $0.80 per $100 of assessed value; or (B)
the referendum process if the political subdivision's total debt service
tax rate is at least $0.80 per $100 of assessed value. (3) Capping the
total amount of operating referendum tax that may be levied by a
school corporation. Makes technical corrections. Makes conforming
changes.
EH 1120—LS 6559/DI 120EH 1120—LS 6559/DI 120 February 28, 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.
ENGROSSED
HOUSE BILL No. 1120
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-12-10.1, AS AMENDED BY P.L.257-2019,
2 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2025]: Sec. 10.1. (a) Except as provided in section 17.8
4 of this chapter and subject to section 45 of this chapter, an individual
5 who desires to claim the deduction provided by section 9 of this
6 chapter must file a sworn statement, on forms prescribed by the
7 department of local government finance, with the auditor of the county
8 in which the real property, mobile home, or manufactured home is
9 located. To obtain the deduction for a desired calendar year in which
10 property taxes are first due and payable, the statement must be
11 completed, and dated, in the immediately preceding calendar year and
12 filed with the county auditor on or before January 5 15 of the calendar
13 year in which the property taxes are first due and payable. The
14 statement may be filed in person or by mail. If mailed, the mailing must
15 be postmarked on or before the last day for filing.
16 (b) The statement referred to in subsection (a) shall be in affidavit
17 form or require verification under penalties of perjury. The statement
EH 1120—LS 6559/DI 120 2
1 must be filed in duplicate if the applicant owns, or is buying under a
2 contract, real property, a mobile home, or a manufactured home subject
3 to assessment in more than one (1) county or in more than one (1)
4 taxing district in the same county. The statement shall contain:
5 (1) the source and exact amount of gross income received by the
6 individual and the individual's spouse during the preceding
7 calendar year;
8 (2) the description and assessed value of the real property, mobile
9 home, or manufactured home;
10 (3) the individual's full name and complete residence address;
11 (4) the record number and page where the contract or
12 memorandum of the contract is recorded if the individual is
13 buying the real property, mobile home, or manufactured home on
14 contract; and
15 (5) any additional information which the department of local
16 government finance may require.
17 (c) In order to substantiate the deduction statement, the applicant
18 shall submit for inspection by the county auditor a copy of the
19 applicant's and a copy of the applicant's spouse's income tax returns
20 that were originally due in the calendar year immediately preceding the
21 desired calendar year in which the property taxes are first due and
22 payable and for which the applicant and the applicant's spouse desire
23 to claim the deduction. If either was not required to file an income tax
24 return, the applicant shall subscribe to that fact in the deduction
25 statement.
26 SECTION 2. IC 6-1.1-12-12, AS AMENDED BY P.L.257-2019,
27 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JANUARY 1, 2025]: Sec. 12. (a) Except as provided in section 17.8 of
29 this chapter and subject to section 45 of this chapter, a person who
30 desires to claim the deduction provided in section 11 of this chapter
31 must file an application, on forms prescribed by the department of local
32 government finance, with the auditor of the county in which the real
33 property, mobile home not assessed as real property, or manufactured
34 home not assessed as real property is located. To obtain the deduction
35 for a desired calendar year in which property taxes are first due and
36 payable, the application must be completed, and dated, in the
37 immediately preceding calendar year and filed with the county auditor
38 on or before January 5 15 of the calendar year in which the property
39 taxes are first due and payable. The application may be filed in person
40 or by mail. If mailed, the mailing must be postmarked on or before the
41 last day for filing.
42 (b) Proof of blindness may be supported by:
EH 1120—LS 6559/DI 120 3
1 (1) the records of the division of family resources or the division
2 of disability and rehabilitative services; or
3 (2) the written statement of a physician who is licensed by this
4 state and skilled in the diseases of the eye or of a licensed
5 optometrist.
6 (c) The application required by this section must contain the record
7 number and page where the contract or memorandum of the contract
8 is recorded if the individual is buying the real property, mobile home,
9 or manufactured home on a contract that provides that the individual
10 is to pay property taxes on the real property, mobile home, or
11 manufactured home.
12 SECTION 3. IC 6-1.1-12-14, AS AMENDED BY P.L.174-2022,
13 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 14. (a) Except as
15 provided in subsection (c) and except as provided in section 40.5 of
16 this chapter, an individual may have the sum of fourteen thousand
17 dollars ($14,000) deducted from the assessed value of the real property,
18 mobile home not assessed as real property, or manufactured home not
19 assessed as real property that the individual owns (or the real property,
20 mobile home not assessed as real property, or manufactured home not
21 assessed as real property that the individual is buying under a contract
22 that provides that the individual is to pay property taxes on the real
23 property, mobile home, or manufactured home if the contract or a
24 memorandum of the contract is recorded in the county recorder's office)
25 if:
26 (1) the individual served in the military or naval forces of the
27 United States for at least ninety (90) days;
28 (2) the individual received an honorable discharge;
29 (3) the individual either:
30 (A) has a total disability; or
31 (B) is at least sixty-two (62) years old and has a disability of at
32 least ten percent (10%);
33 (4) the individual's disability is evidenced by:
34 (A) a pension certificate or an award of compensation issued
35 by the United States Department of Veterans Affairs; or
36 (B) a certificate of eligibility issued to the individual by the
37 Indiana department of veterans' affairs after the Indiana
38 department of veterans' affairs has determined that the
39 individual's disability qualifies the individual to receive a
40 deduction under this section; and
41 (5) the individual:
42 (A) owns the real property, mobile home, or manufactured
EH 1120—LS 6559/DI 120 4
1 home; or
2 (B) is buying the real property, mobile home, or manufactured
3 home under contract;
4 on the date the statement required by section 15 of this chapter is
5 filed.
6 (b) Except as provided in subsections (c) and (d), the surviving
7 spouse of an individual may receive the deduction provided by this
8 section if:
9 (1) the individual satisfied the requirements of subsection (a)(1)
10 through (a)(4) at the time of death; or
11 (2) the individual:
12 (A) was killed in action;
13 (B) died while serving on active duty in the military or naval
14 forces of the United States; or
15 (C) died while performing inactive duty training in the military
16 or naval forces of the United States; and
17 the surviving spouse satisfies the requirement of subsection (a)(5) at
18 the time the deduction statement is filed. The surviving spouse is
19 entitled to the deduction regardless of whether the property for which
20 the deduction is claimed was owned by the deceased veteran or the
21 surviving spouse before the deceased veteran's death.
22 (c) Except as provided in subsection (f), no one is entitled to the
23 deduction provided by this section if the assessed value of the
24 individual's Indiana real property, Indiana mobile home not assessed as
25 real property, and Indiana manufactured home not assessed as real
26 property, as shown by the tax duplicate, exceeds the assessed value
27 limit specified in subsection (d).
28 (d) Except as provided in subsection (f), for the:
29 (1) January 1, 2017, January 1, 2018, and January 1, 2019,
30 assessment dates, the assessed value limit for purposes of
31 subsection (c) is one hundred seventy-five thousand dollars
32 ($175,000); and
33 (2) January 1, 2020, January 1, 2021, January 1, 2022, and
34 January 1, 2023, assessment dates, assessment date and for each
35 assessment date thereafter, the assessed value limit for purposes
36 of subsection (c) is two hundred thousand dollars ($200,000); and
37 (3) January 1, 2024, assessment date and for each assessment
38 date thereafter, the assessed value limit for purposes of
39 subsection (c) is two hundred forty thousand dollars
40 ($240,000).
41 (e) An individual who has sold real property, a mobile home not
42 assessed as real property, or a manufactured home not assessed as real
EH 1120—LS 6559/DI 120 5
1 property to another person under a contract that provides that the
2 contract buyer is to pay the property taxes on the real property, mobile
3 home, or manufactured home may not claim the deduction provided
4 under this section against that real property, mobile home, or
5 manufactured home.
6 (f) For purposes of determining the assessed value of the real
7 property, mobile home, or manufactured home under subsection (d) for
8 an individual who has received a deduction under this section in a
9 previous year, increases in assessed value that occur after the later of:
10 (1) December 31, 2019; or
11 (2) the first year that the individual has received the deduction;
12 are not considered unless the increase in assessed value is attributable
13 to substantial renovation or new improvements. Where there is an
14 increase in assessed value for purposes of the deduction under this
15 section, the assessor shall provide a report to the county auditor
16 describing the substantial renovation or new improvements, if any, that
17 were made to the property prior to the increase in assessed value.
18 SECTION 4. IC 6-1.1-12-15, AS AMENDED BY P.L.156-2020,
19 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JANUARY 1, 2025]: Sec. 15. (a) Except as provided in section 17.8 of
21 this chapter and subject to section 45 of this chapter, an individual who
22 desires to claim the deduction provided by section 13 or 14 of this
23 chapter must file a statement with the auditor of the county in which
24 the individual resides. To obtain the deduction for a desired calendar
25 year in which property taxes are first due and payable, the statement
26 must be completed, and dated, in the immediately preceding calendar
27 year and filed with the county auditor on or before January 5 15 of the
28 calendar year in which the property taxes are first due and payable. The
29 statement may be filed in person or by mail. If mailed, the mailing must
30 be postmarked on or before the last day for filing. The statement shall
31 contain a sworn declaration that the individual is entitled to the
32 deduction.
33 (b) In addition to the statement, the individual shall submit to the
34 county auditor for the auditor's inspection:
35 (1) a pension certificate, an award of compensation, or a disability
36 compensation check issued by the United States Department of
37 Veterans Affairs if the individual claims the deduction provided
38 by section 13 of this chapter;
39 (2) a pension certificate or an award of compensation issued by
40 the United States Department of Veterans Affairs if the individual
41 claims the deduction provided by section 14 of this chapter; or
42 (3) the appropriate certificate of eligibility issued to the individual
EH 1120—LS 6559/DI 120 6
1 by the Indiana department of veterans' affairs if the individual
2 claims the deduction provided by section 13 or 14 of this chapter.
3 (c) If the individual claiming the deduction is under guardianship,
4 the guardian shall file the statement required by this section. If a
5 deceased veteran's surviving spouse is claiming the deduction, the
6 surviving spouse shall provide the documentation necessary to
7 establish that at the time of death the deceased veteran satisfied the
8 requirements of section 13(a)(1) through 13(a)(4) of this chapter,
9 section 14(a)(1) through 14(a)(4) of this chapter, or section 14(b)(2) of
10 this chapter, whichever applies.
11 (d) If the individual claiming a deduction under section 13 or 14 of
12 this chapter is buying real property, a mobile home not assessed as real
13 property, or a manufactured home not assessed as real property under
14 a contract that provides that the individual is to pay property taxes for
15 the real estate, mobile home, or manufactured home, the statement
16 required by this section must contain the record number and page
17 where the contract or memorandum of the contract is recorded.
18 SECTION 5. IC 6-1.1-12-17, AS AMENDED BY P.L.257-2019,
19 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JANUARY 1, 2025]: Sec. 17. Except as provided in section 17.8 of this
21 chapter and subject to section 45 of this chapter, a surviving spouse
22 who desires to claim the deduction provided by section 16 of this
23 chapter must file a statement with the auditor of the county in which
24 the surviving spouse resides. To obtain the deduction for a desired
25 calendar year in which property taxes are first due and payable, the
26 statement must be completed, and dated, in the immediately preceding
27 calendar year and filed with the county auditor on or before January 5
28 15 of the calendar year in which the property taxes are first due and
29 payable. The statement may be filed in person or by mail. If mailed, the
30 mailing must be postmarked on or before the last day for filing. The
31 statement shall contain:
32 (1) a sworn statement that the surviving spouse is entitled to the
33 deduction; and
34 (2) the record number and page where the contract or
35 memorandum of the contract is recorded, if the individual is
36 buying the real property on a contract that provides that the
37 individual is to pay property taxes on the real property.
38 In addition to the statement, the surviving spouse shall submit to the
39 county auditor for the auditor's inspection a letter or certificate from the
40 United States Department of Veterans Affairs establishing the service
41 of the deceased spouse in the military or naval forces of the United
42 States before November 12, 1918.
EH 1120—LS 6559/DI 120 7
1 SECTION 6. IC 6-1.1-12-27.1, AS AMENDED BY P.L.257-2019,
2 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2025]: Sec. 27.1. Except as provided in sections 36 and
4 44 of this chapter and subject to section 45 of this chapter, a person
5 who desires to claim the deduction provided by section 26 or 26.1 of
6 this chapter must file a certified statement in duplicate, on forms
7 prescribed by the department of local government finance, with the
8 auditor of the county in which the real property, mobile home,
9 manufactured home, or solar power device is subject to assessment. To
10 obtain the deduction for a desired calendar year in which property taxes
11 are first due and payable, the person must complete, and date, the
12 certified statement in the immediately preceding calendar year and file
13 the certified statement with the county auditor on or before January 5
14 15 of the calendar year in which the property taxes are first due and
15 payable. The person must:
16 (1) own the real property, mobile home, or manufactured home or
17 own the solar power device;
18 (2) be buying the real property, mobile home, manufactured
19 home, or solar power device under contract; or
20 (3) be leasing the real property from the real property owner and
21 be subject to assessment and property taxation with respect to the
22 solar power device;
23 on the date the statement is filed under this section. The statement may
24 be filed in person or by mail. If mailed, the mailing must be postmarked
25 on or before the last day for filing. On verification of the statement by
26 the assessor of the township in which the real property, mobile home,
27 manufactured home, or solar power device is subject to assessment, or
28 the county assessor if there is no township assessor for the township,
29 the county auditor shall allow the deduction.
30 SECTION 7. IC 6-1.1-12-30, AS AMENDED BY P.L.257-2019,
31 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JANUARY 1, 2025]: Sec. 30. Except as provided in sections 36 and 44
33 of this chapter and subject to section 45 of this chapter, a person who
34 desires to claim the deduction provided by section 29 of this chapter
35 must file a certified statement in duplicate, on forms prescribed by the
36 department of local government finance, with the auditor of the county
37 in which the real property or mobile home is subject to assessment. To
38 obtain the deduction for a desired calendar year in which property taxes
39 are first due and payable, the person must complete, and date, the
40 statement in the immediately preceding calendar year and file the
41 statement with the county auditor on or before January 5 15 of the
42 calendar year in which the property taxes are first due and payable. The
EH 1120—LS 6559/DI 120 8
1 person must:
2 (1) own the real property, mobile home, or manufactured home;
3 or
4 (2) be buying the real property, mobile home, or manufactured
5 home under contract;
6 on the date the statement is filed under this section. On verification of
7 the statement by the assessor of the township in which the real property
8 or mobile home is subject to assessment, or the county assessor if there
9 is no township assessor for the township, the county auditor shall allow
10 the deduction.
11 SECTION 8. IC 6-1.1-12-35.5, AS AMENDED BY P.L.236-2023,
12 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JANUARY 1, 2025]: Sec. 35.5. (a) Except as provided in section 36 or
14 44 of this chapter and subject to section 45 of this chapter, a person
15 who desires to claim the deduction provided by section 33 or 34 of this
16 chapter must file a certified statement in duplicate, on forms prescribed
17 by the department of local government finance and proof of
18 certification under subsection (b) with the auditor of the county in
19 which the property for which the deduction is claimed is subject to
20 assessment. To obtain the deduction for a desired calendar year in
21 which property taxes are first due and payable, the person must
22 complete, and date, the certified statement in the immediately
23 preceding calendar year and file the certified statement with the county
24 auditor on or before January 5 15 of the calendar year in which the
25 property taxes are first due and payable. The statement may be filed in
26 person or by mail. If mailed, the mailing must be postmarked on or
27 before the last day for filing. On verification of the statement by the
28 assessor of the township in which the property for which the deduction
29 is claimed is subject to assessment, or the county assessor if there is no
30 township assessor for the township, the county auditor shall allow the
31 deduction.
32 (b) The department of environmental management, upon application
33 by a property owner, shall determine whether a system or device
34 qualifies for a deduction provided by section 33 or 34 of this chapter.
35 If the department determines that a system or device qualifies for a
36 deduction, it shall certify the system or device and provide proof of the
37 certification to the property owner. The department shall prescribe the
38 form and manner of the certification process required by this
39 subsection.
40 (c) If the department of environmental management receives an
41 application for certification, the department shall determine whether
42 the system or device qualifies for a deduction. If the department fails
EH 1120—LS 6559/DI 120 9
1 to make a determination under this subsection before December 31 of
2 the year in which the application is received, the system or device is
3 considered certified.
4 (d) A denial of a deduction claimed under section 33 or 34 of this
5 chapter may be appealed as provided in IC 6-1.1-15. The appeal is
6 limited to a review of a determination made by the township assessor
7 county property tax assessment board of appeals, or department of local
8 government finance.
9 (e) Notwithstanding any other law, if there is a change in ownership
10 of real property, or a mobile home that is not assessed as real property:
11 (1) that is equipped with a geothermal energy heating or cooling
12 device; and
13 (2) whose previous owner received a property tax deduction under
14 section 34 of this chapter for the geothermal energy heating or
15 cooling device prior to the change in ownership;
16 the new owner shall be eligible for the property tax deduction following
17 the change in ownership and, in subsequent taxable years, shall not be
18 required to obtain a determination of qualification from the department
19 of environmental management under subsection (b) and shall not be
20 required to file a certified statement of qualification with the county
21 auditor under subsection (a) to remain eligible for the property tax
22 deduction.
23 SECTION 9. IC 6-1.1-12-37, AS AMENDED BY P.L.236-2023,
24 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JANUARY 1, 2025]: Sec. 37. (a) The following definitions apply
26 throughout this section:
27 (1) "Dwelling" means any of the following:
28 (A) Residential real property improvements that an individual
29 uses as the individual's residence, limited to a single house and
30 a single garage, regardless of whether the single garage is
31 attached to the single house or detached from the single house.
32 (B) A mobile home that is not assessed as real property that an
33 individual uses as the individual's residence.
34 (C) A manufactured home that is not assessed as real property
35 that an individual uses as the individual's residence.
36 (2) "Homestead" means an individual's principal place of
37 residence:
38 (A) that is located in Indiana;
39 (B) that:
40 (i) the individual owns;
41 (ii) the individual is buying under a contract recorded in the
42 county recorder's office, or evidenced by a memorandum of
EH 1120—LS 6559/DI 120 10
1 contract recorded in the county recorder's office under
2 IC 36-2-11-20, that provides that the individual is to pay the
3 property taxes on the residence, and that obligates the owner
4 to convey title to the individual upon completion of all of the
5 individual's contract obligations;
6 (iii) the individual is entitled to occupy as a
7 tenant-stockholder (as defined in 26 U.S.C. 216) of a
8 cooperative housing corporation (as defined in 26 U.S.C.
9 216); or
10 (iv) is a residence described in section 17.9 of this chapter
11 that is owned by a trust if the individual is an individual
12 described in section 17.9 of this chapter; and
13 (C) that consists of a dwelling and includes up to one (1) acre
14 of land immediately surrounding that dwelling, and any of the
15 following improvements:
16 (i) Any number of decks, patios, gazebos, or pools.
17 (ii) One (1) additional building that is not part of the
18 dwelling if the building is predominantly used for a
19 residential purpose and is not used as an investment property
20 or as a rental property.
21 (iii) One (1) additional residential yard structure other than
22 a deck, patio, gazebo, or pool.
23 The term does not include property owned by a corporation,
24 partnership, limited liability company, or other entity not
25 described in this subdivision.
26 (b) Each year a homestead is eligible for a standard deduction from
27 the assessed value of the homestead for an assessment date. Except as
28 provided in subsection (m), (n), the deduction provided by this section
29 applies to property taxes first due and payable for an assessment date
30 only if an individual has an interest in the homestead described in
31 subsection (a)(2)(B) on:
32 (1) the assessment date; or
33 (2) any date in the same year after an assessment date that a
34 statement is filed under subsection (e) or section 44 of this
35 chapter, if the property consists of real property.
36 If more than one (1) individual or entity qualifies property as a
37 homestead under subsection (a)(2)(B) for an assessment date, only one
38 (1) standard deduction from the assessed value of the homestead may
39 be applied for the assessment date. Subject to subsection (c), the
40 auditor of the county shall record and make the deduction for the
41 individual or entity qualifying for the deduction.
42 (c) Except as provided in section 40.5 of this chapter, the total
EH 1120—LS 6559/DI 120 11
1 amount of the deduction that a person may receive under this section
2 for a particular year is the lesser of:
3 (1) sixty percent (60%) of the assessed value of the real property,
4 mobile home not assessed as real property, or manufactured home
5 not assessed as real property; or
6 (2) for assessment dates:
7 (A) before January 1, 2023, forty-five thousand dollars
8 ($45,000); or
9 (B) after December 31, 2022, forty-eight thousand dollars
10 ($48,000).
11 (d) A person who has sold real property, a mobile home not assessed
12 as real property, or a manufactured home not assessed as real property
13 to another person under a contract that provides that the contract buyer
14 is to pay the property taxes on the real property, mobile home, or
15 manufactured home may not claim the deduction provided under this
16 section with respect to that real property, mobile home, or
17 manufactured home.
18 (e) Except as provided in sections 17.8 and 44 of this chapter and
19 subject to section 45 of this chapter, an individual who desires to claim
20 the deduction provided by this section must file a certified statement on
21 forms prescribed by the department of local government finance, with
22 the auditor of the county in which the homestead is located. The
23 statement must include:
24 (1) the parcel number or key number of the property and the name
25 of the city, town, or township in which the property is located;
26 (2) the name of any other location in which the applicant or the
27 applicant's spouse owns, is buying, or has a beneficial interest in
28 residential real property;
29 (3) the names of:
30 (A) the applicant and the applicant's spouse (if any):
31 (i) as the names appear in the records of the United States
32 Social Security Administration for the purposes of the
33 issuance of a Social Security card and Social Security
34 number; or
35 (ii) that they use as their legal names when they sign their
36 names on legal documents;
37 if the applicant is an individual; or
38 (B) each individual who qualifies property as a homestead
39 under subsection (a)(2)(B) and the individual's spouse (if any):
40 (i) as the names appear in the records of the United States
41 Social Security Administration for the purposes of the
42 issuance of a Social Security card and Social Security
EH 1120—LS 6559/DI 120 12
1 number; or
2 (ii) that they use as their legal names when they sign their
3 names on legal documents;
4 if the applicant is not an individual; and
5 (4) either:
6 (A) the last five (5) digits of the applicant's Social Security
7 number and the last five (5) digits of the Social Security
8 number of the applicant's spouse (if any); or
9 (B) if the applicant or the applicant's spouse (if any) does not
10 have a Social Security number, any of the following for that
11 individual:
12 (i) The last five (5) digits of the individual's driver's license
13 number.
14 (ii) The last five (5) digits of the individual's state
15 identification card number.
16 (iii) The last five (5) digits of a preparer tax identification
17 number that is obtained by the individual through the
18 Internal Revenue Service of the United States.
19 (iv) If the individual does not have a driver's license, a state
20 identification card, or an Internal Revenue Service preparer
21 tax identification number, the last five (5) digits of a control
22 number that is on a document issued to the individual by the
23 United States government.
24 If a form or statement provided to the county auditor under this section,
25 IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
26 part or all of the Social Security number of a party or other number
27 described in subdivision (4)(B) of a party, the telephone number and
28 the Social Security number or other number described in subdivision
29 (4)(B) included are confidential. The statement may be filed in person
30 or by mail. If the statement is mailed, the mailing must be postmarked
31 on or before the last day for filing. The statement applies for that first
32 year and any succeeding year for which the deduction is allowed. To
33 obtain the deduction for a desired calendar year in which property taxes
34 are first due and payable, the statement must be completed and dated
35 in the immediately preceding calendar year and filed with the county
36 auditor on or before January 5 of the calendar year in which the
37 property taxes are first due and payable.
38 (f) To obtain the deduction for a desired calendar year under
39 this section in which property taxes are first due and payable, the
40 individual desiring to claim the deduction must do the following as
41 applicable:
42 (1) Complete, date, and file the certified statement described
EH 1120—LS 6559/DI 120 13
1 in subsection (e) on or before January 15 of the calendar year
2 in which the property taxes are first due and payable.
3 (2) Satisfy any recording requirements on or before January
4 15 of the calendar year in which the property taxes are first
5 due and payable for a homestead described in subsection
6 (a)(2).
7 (f) (g) Except as provided in subsection (k), (l), if a person who is
8 receiving, or seeks to receive, the deduction provided by this section in
9 the person's name:
10 (1) changes the use of the individual's property so that part or all
11 of the property no longer qualifies for the deduction under this
12 section; or
13 (2) is not eligible for a deduction under this section because the
14 person is already receiving:
15 (A) a deduction under this section in the person's name as an
16 individual or a spouse; or
17 (B) a deduction under the law of another state that is
18 equivalent to the deduction provided by this section;
19 the person must file a certified statement with the auditor of the county,
20 notifying the auditor of the person's ineligibility, not more than sixty
21 (60) days after the date of the change in eligibility. A person who fails
22 to file the statement required by this subsection may, under
23 IC 6-1.1-36-17, be liable for any additional taxes that would have been
24 due on the property if the person had filed the statement as required by
25 this subsection plus a civil penalty equal to ten percent (10%) of the
26 additional taxes due. The civil penalty imposed under this subsection
27 is in addition to any interest and penalties for a delinquent payment that
28 might otherwise be due. One percent (1%) of the total civil penalty
29 collected under this subsection shall be transferred by the county to the
30 department of local government finance for use by the department in
31 establishing and maintaining the homestead property data base under
32 subsection (i) (j) and, to the extent there is money remaining, for any
33 other purposes of the department. This amount becomes part of the
34 property tax liability for purposes of this article.
35 (g) (h) The department of local government finance may adopt rules
36 or guidelines concerning the application for a deduction under this
37 section.
38 (h) (i) This subsection does not apply to property in the first year for
39 which a deduction is claimed under this section if the sole reason that
40 a deduction is claimed on other property is that the individual or
41 married couple maintained a principal residence at the other property
42 on the assessment date in the same year in which an application for a
EH 1120—LS 6559/DI 120 14
1 deduction is filed under this section or, if the application is for a
2 homestead that is assessed as personal property, on the assessment date
3 in the immediately preceding year and the individual or married couple
4 is moving the individual's or married couple's principal residence to the
5 property that is the subject of the application. Except as provided in
6 subsection (k), (l), the county auditor may not grant an individual or a
7 married couple a deduction under this section if:
8 (1) the individual or married couple, for the same year, claims the
9 deduction on two (2) or more different applications for the
10 deduction; and
11 (2) the applications claim the deduction for different property.
12 (i) (j) The department of local government finance shall provide
13 secure access to county auditors to a homestead property data base that
14 includes access to the homestead owner's name and the numbers
15 required from the homestead owner under subsection (e)(4) for the sole
16 purpose of verifying whether an owner is wrongly claiming a deduction
17 under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
18 IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit
19 data on deductions applicable to the current tax year on or before
20 March 15 of each year in a manner prescribed by the department of
21 local government finance.
22 (j) (k) A county auditor may require an individual to provide
23 evidence proving that the individual's residence is the individual's
24 principal place of residence as claimed in the certified statement filed
25 under subsection (e). The county auditor may limit the evidence that an
26 individual is required to submit to a state income tax return, a valid
27 driver's license, or a valid voter registration card showing that the
28 residence for which the deduction is claimed is the individual's
29 principal place of residence. The county auditor may not deny an
30 application filed under section 44 of this chapter because the applicant
31 does not have a valid driver's license or state identification card with
32 the address of the homestead property. The department of local
33 government finance shall work with county auditors to develop
34 procedures to determine whether a property owner that is claiming a
35 standard deduction or homestead credit is not eligible for the standard
36 deduction or homestead credit because the property owner's principal
37 place of residence is outside Indiana.
38 (k) (l) A county auditor shall grant an individual a deduction under
39 this section regardless of whether the individual and the individual's
40 spouse claim a deduction on two (2) different applications and each
41 application claims a deduction for different property if the property
42 owned by the individual's spouse is located outside Indiana and the
EH 1120—LS 6559/DI 120 15
1 individual files an affidavit with the county auditor containing the
2 following information:
3 (1) The names of the county and state in which the individual's
4 spouse claims a deduction substantially similar to the deduction
5 allowed by this section.
6 (2) A statement made under penalty of perjury that the following
7 are true:
8 (A) That the individual and the individual's spouse maintain
9 separate principal places of residence.
10 (B) That neither the individual nor the individual's spouse has
11 an ownership interest in the other's principal place of
12 residence.
13 (C) That neither the individual nor the individual's spouse has,
14 for that same year, claimed a standard or substantially similar
15 deduction for any property other than the property maintained
16 as a principal place of residence by the respective individuals.
17 A county auditor may require an individual or an individual's spouse to
18 provide evidence of the accuracy of the information contained in an
19 affidavit submitted under this subsection. The evidence required of the
20 individual or the individual's spouse may include state income tax
21 returns, excise tax payment information, property tax payment
22 information, driver license information, and voter registration
23 information.
24 (l) (m) If:
25 (1) a property owner files a statement under subsection (e) to
26 claim the deduction provided by this section for a particular
27 property; and
28 (2) the county auditor receiving the filed statement determines
29 that the property owner's property is not eligible for the deduction;
30 the county auditor shall inform the property owner of the county
31 auditor's determination in writing. If a property owner's property is not
32 eligible for the deduction because the county auditor has determined
33 that the property is not the property owner's principal place of
34 residence, the property owner may appeal the county auditor's
35 determination as provided in IC 6-1.1-15. The county auditor shall
36 inform the property owner of the owner's right to appeal when the
37 county auditor informs the property owner of the county auditor's
38 determination under this subsection.
39 (m) (n) An individual is entitled to the deduction under this section
40 for a homestead for a particular assessment date if:
41 (1) either:
42 (A) the individual's interest in the homestead as described in
EH 1120—LS 6559/DI 120 16
1 subsection (a)(2)(B) is conveyed to the individual after the
2 assessment date, but within the calendar year in which the
3 assessment date occurs; or
4 (B) the individual contracts to purchase the homestead after
5 the assessment date, but within the calendar year in which the
6 assessment date occurs;
7 (2) on the assessment date:
8 (A) the property on which the homestead is currently located
9 was vacant land; or
10 (B) the construction of the dwelling that constitutes the
11 homestead was not completed; and
12 (3) either:
13 (A) the individual files the certified statement required by
14 subsection (e); or
15 (B) a sales disclosure form that meets the requirements of
16 section 44 of this chapter is submitted to the county assessor
17 on or before December 31 of the calendar year for the
18 individual's purchase of the homestead.
19 An individual who satisfies the requirements of subdivisions (1)
20 through (3) is entitled to the deduction under this section for the
21 homestead for the assessment date, even if on the assessment date the
22 property on which the homestead is currently located was vacant land
23 or the construction of the dwelling that constitutes the homestead was
24 not completed. The county auditor shall apply the deduction for the
25 assessment date and for the assessment date in any later year in which
26 the homestead remains eligible for the deduction. A homestead that
27 qualifies for the deduction under this section as provided in this
28 subsection is considered a homestead for purposes of section 37.5 of
29 this chapter and IC 6-1.1-20.6.
30 (n) (o) This subsection applies to an application for the deduction
31 provided by this section that is filed for an assessment date occurring
32 after December 31, 2013. Notwithstanding any other provision of this
33 section, an individual buying a mobile home that is not assessed as real
34 property or a manufactured home that is not assessed as real property
35 under a contract providing that the individual is to pay the property
36 taxes on the mobile home or manufactured home is not entitled to the
37 deduction provided by this section unless the parties to the contract
38 comply with IC 9-17-6-17.
39 (o) (p) This subsection:
40 (1) applies to an application for the deduction provided by this
41 section that is filed for an assessment date occurring after
42 December 31, 2013; and
EH 1120—LS 6559/DI 120 17
1 (2) does not apply to an individual described in subsection (n).
2 (o).
3 The owner of a mobile home that is not assessed as real property or a
4 manufactured home that is not assessed as real property must attach a
5 copy of the owner's title to the mobile home or manufactured home to
6 the application for the deduction provided by this section.
7 (p) (q) For assessment dates after 2013, the term "homestead"
8 includes property that is owned by an individual who:
9 (1) is serving on active duty in any branch of the armed forces of
10 the United States;
11 (2) was ordered to transfer to a location outside Indiana; and
12 (3) was otherwise eligible, without regard to this subsection, for
13 the deduction under this section for the property for the
14 assessment date immediately preceding the transfer date specified
15 in the order described in subdivision (2).
16 For property to qualify under this subsection for the deduction provided
17 by this section, the individual described in subdivisions (1) through (3)
18 must submit to the county auditor a copy of the individual's transfer
19 orders or other information sufficient to show that the individual was
20 ordered to transfer to a location outside Indiana. The property continues
21 to qualify for the deduction provided by this section until the individual
22 ceases to be on active duty, the property is sold, or the individual's
23 ownership interest is otherwise terminated, whichever occurs first.
24 Notwithstanding subsection (a)(2), the property remains a homestead
25 regardless of whether the property continues to be the individual's
26 principal place of residence after the individual transfers to a location
27 outside Indiana. The property continues to qualify as a homestead
28 under this subsection if the property is leased while the individual is
29 away from Indiana and is serving on active duty, if the individual has
30 lived at the property at any time during the past ten (10) years.
31 Otherwise, the property ceases to qualify as a homestead under this
32 subsection if the property is leased while the individual is away from
33 Indiana. Property that qualifies as a homestead under this subsection
34 shall also be construed as a homestead for purposes of section 37.5 of
35 this chapter.
36 SECTION 10. IC 6-1.1-12-38, AS AMENDED BY P.L.183-2014,
37 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JANUARY 1, 2025]: Sec. 38. (a) A person is entitled to a deduction
39 from the assessed value of the person's property in an amount equal to
40 the difference between:
41 (1) the assessed value of the person's property, including the
42 assessed value of the improvements made to comply with the
EH 1120—LS 6559/DI 120 18
1 fertilizer storage rules adopted by the state chemist under
2 IC 15-16-2-44 and the pesticide storage rules adopted by the state
3 chemist under IC 15-16-4-52; minus
4 (2) the assessed value of the person's property, excluding the
5 assessed value of the improvements made to comply with the
6 fertilizer storage rules adopted by the state chemist under
7 IC 15-16-2-44 and the pesticide storage rules adopted by the state
8 chemist under IC 15-16-4-52.
9 (b) To obtain the deduction under this section, a person must file a
10 certified statement in duplicate, on forms prescribed by the department
11 of local government finance, with the auditor of the county in which the
12 property is subject to assessment. In addition to the certified statement,
13 the person must file a certification by the state chemist listing the
14 improvements that were made to comply with the fertilizer storage
15 rules adopted under IC 15-16-2-44 and the pesticide storage rules
16 adopted by the state chemist under IC 15-16-4-52. Subject to section
17 45 of this chapter, the statement must be completed, and dated, in the
18 calendar year for which the person wishes to obtain the deduction, and
19 the statement and certification must be and filed with the county
20 auditor on or before January 5 15 of the immediately succeeding
21 calendar year. Upon the verification of the statement and certification
22 by the assessor of the township in which the property is subject to
23 assessment, or the county assessor if there is no township assessor for
24 the township, the county auditor shall allow the deduction.
25 (c) The deduction provided by this section applies only if the
26 person:
27 (1) owns the property; or
28 (2) is buying the property under contract;
29 on the assessment date for which the deduction applies.
30 SECTION 11. IC 6-1.1-12-44, AS AMENDED BY P.L.236-2023,
31 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JANUARY 1, 2025]: Sec. 44. (a) A sales disclosure form under
33 IC 6-1.1-5.5:
34 (1) that is submitted:
35 (A) as a paper form; or
36 (B) electronically;
37 on or before December 31 January 15 of a calendar year in
38 which property taxes are first due and payable to the county
39 assessor by or on behalf of the purchaser of a homestead (as
40 defined in section 37 of this chapter) assessed as real property;
41 (2) that is accurate and complete;
42 (3) that is approved by the county assessor as eligible for filing
EH 1120—LS 6559/DI 120 19
1 with the county auditor; and
2 (4) that is filed:
3 (A) as a paper form; or
4 (B) electronically;
5 with the county auditor by or on behalf of the purchaser;
6 constitutes an application for the deductions provided by sections 26,
7 29, 33, 34, and 37 of this chapter with respect to property taxes first
8 due and payable in the calendar year that immediately succeeds the
9 calendar year referred to in subdivision (1). The county auditor may not
10 deny an application for the deductions provided by section 37 of this
11 chapter because the applicant does not have a valid driver's license or
12 state identification card with the address of the homestead property.
13 (b) Except as provided in subsection (c), if:
14 (1) the county auditor receives in a calendar year a sales
15 disclosure form that meets the requirements of subsection (a); and
16 (2) the homestead for which the sales disclosure form is submitted
17 is otherwise eligible for a deduction referred to in subsection (a);
18 the county auditor shall apply the deduction to the homestead for
19 property taxes first due and payable in the calendar year for which the
20 homestead qualifies under subsection (a) and in any later year in which
21 the homestead remains eligible for the deduction.
22 (c) Subsection (b) does not apply if the county auditor, after
23 receiving a sales disclosure form from or on behalf of a purchaser
24 under subsection (a)(4), determines that the homestead is ineligible for
25 the deduction.
26 SECTION 12. IC 6-1.1-12-45, AS AMENDED BY P.L.174-2022,
27 SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JANUARY 1, 2025]: Sec. 45. (a) Subject to subsections (b) and (c), a
29 deduction under this chapter applies for an assessment date and for the
30 property taxes due and payable based on the assessment for that
31 assessment date, regardless of whether with respect to the real property
32 or mobile home or manufactured home not assessed as real property:
33 (1) the title is conveyed one (1) or more times; or
34 (2) one (1) or more contracts to purchase are entered into;
35 after that assessment date and on or before the next succeeding
36 assessment date.
37 (b) Subsection (a) applies regardless of whether:
38 (1) one (1) or more grantees of title under subsection (a)(1); or
39 (2) one (1) or more contract purchasers under subsection (a)(2);
40 file a statement under this chapter to claim the deduction.
41 (c) A deduction applies under subsection (a) for only one (1) year.
42 The requirements of this chapter for filing a statement to apply for a
EH 1120—LS 6559/DI 120 20
1 deduction under this chapter apply to subsequent years. A person who
2 fails to apply for a deduction or credit under this article by the
3 deadlines prescribed by this article may not apply for the deduction or
4 credit retroactively.
5 (d) If:
6 (1) a taxpayer wishes to claim a deduction under this chapter for
7 a desired calendar year in which property taxes are first due and
8 payable;
9 (2) the taxpayer files a statement under this chapter on or before
10 January 5 15 of the calendar year in which the property taxes are
11 first due and payable; and
12 (3) the eligibility criteria for the deduction are met;
13 the deduction applies for the desired calendar year in which the
14 property taxes are first due and payable.
15 (e) A person who is required to record a contract with a county
16 recorder in order to qualify for a deduction under this article must
17 record the contract, or a memorandum of the contract, before, or
18 concurrently with, the filing of the corresponding deduction
19 application.
20 (f) Before a county auditor terminates a deduction under this article,
21 the county auditor shall give to the person claiming the deduction
22 written notice that states the county auditor's intention to terminate the
23 deduction and the county auditor's reason for terminating the
24 deduction. The county auditor may send the notice to the taxpayer
25 claiming the deduction by first class mail or by electronic mail. A
26 notice issued under this subsection is not appealable under IC 6-1.1-15.
27 However, after a deduction is terminated by a county auditor, the
28 taxpayer may appeal the county auditor's action under IC 6-1.1-15.
29 SECTION 13. IC 6-1.1-12.6-3, AS AMENDED BY P.L.148-2015,
30 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JANUARY 1, 2025]: Sec. 3. (a) A property owner that qualifies for the
32 deduction under this chapter and that desires to receive the deduction
33 for a calendar year must complete and date a statement containing the
34 information required by subsection (b) in the calendar year for which
35 the person desires to obtain the deduction and file the statement with
36 the county auditor on or before January 5 15 of the immediately
37 succeeding calendar year. The township assessor shall verify each
38 statement filed under this section, and the county auditor shall:
39 (1) make the deductions; and
40 (2) notify the county property tax assessment board of appeals of
41 all deductions approved;
42 under this section.
EH 1120—LS 6559/DI 120 21
1 (b) The statement referred to in subsection (a) must be verified
2 under penalties for perjury and must contain the following information:
3 (1) The assessed value of the real property for which the person
4 is claiming the deduction.
5 (2) The full name and complete business address of the person
6 claiming the deduction.
7 (3) The complete address and a brief description of the real
8 property for which the person is claiming the deduction.
9 (4) The name of any other county in which the person has applied
10 for a deduction under this chapter for that assessment date.
11 (5) The complete address and a brief description of any other real
12 property for which the person has applied for a deduction under
13 this chapter for that assessment date.
14 SECTION 14. IC 6-1.1-12.8-4, AS AMENDED BY P.L.148-2015,
15 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JANUARY 1, 2025]: Sec. 4. (a) A property owner that qualifies for the
17 deduction under this chapter and that desires to receive the deduction
18 for a calendar year must complete and date a statement containing the
19 information required by subsection (b) in the calendar year for which
20 the person desires to obtain the deduction and file the statement with
21 the county auditor on or before January 5 15 of the immediately
22 succeeding calendar year. The township assessor, or the county
23 assessor if there is no township assessor for the township, shall verify
24 each statement filed under this section, and the county auditor shall:
25 (1) make the deductions; and
26 (2) notify the county property tax assessment board of appeals of
27 all deductions approved;
28 under this section.
29 (b) The statement referred to in subsection (a) must be verified
30 under penalties for perjury and must contain the following information:
31 (1) The assessed value of the real property for which the person
32 is claiming the deduction.
33 (2) The full name and complete business address of the person
34 claiming the deduction.
35 (3) The complete address and a brief description of the real
36 property for which the person is claiming the deduction.
37 (4) The name of any other county in which the person has applied
38 for a deduction under this chapter for that assessment date.
39 (5) The complete address and a brief description of any other real
40 property for which the person has applied for a deduction under
41 this chapter for that assessment date.
42 (6) An affirmation by the owner that the owner is receiving not
EH 1120—LS 6559/DI 120 22
1 more than three (3) deductions under this chapter, including the
2 deduction being applied for by the owner, either:
3 (A) as the owner of the residence in inventory; or
4 (B) as an owner that is part of an affiliated group.
5 (7) An affirmation that the real property has not been leased and
6 will not be leased for any purpose during the term of the
7 deduction.
8 SECTION 15. IC 6-1.1-18.5-1, AS AMENDED BY P.L.236-2023,
9 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2024]: Sec. 1. As used in this chapter:
11 "Ad valorem property tax levy for an ensuing calendar year" means
12 the total property taxes imposed by a civil taxing unit for current
13 property taxes collectible in that ensuing calendar year. However, if a
14 township elects to establish both a township firefighting levy and a
15 township emergency services levy under IC 36-8-13-4(b)(2),
16 IC 36-8-13-4(c)(2), the township firefighting levy and township
17 emergency services levy shall be combined and considered as a single
18 levy for purposes of this chapter.
19 "Civil taxing unit" means any taxing unit except a school
20 corporation.
21 "Maximum permissible ad valorem property tax levy for the
22 preceding calendar year" means, for purposes of determining a
23 maximum permissible ad valorem property tax levy under section 3 of
24 this chapter for property taxes imposed for an assessment date after
25 January 15, 2011, the civil taxing unit's maximum permissible ad
26 valorem property tax levy for the calendar year immediately preceding
27 the ensuing calendar year, as that levy was determined under section 3
28 of this chapter (regardless of whether the taxing unit imposed the entire
29 amount of the maximum permissible ad valorem property tax levy in
30 the immediately preceding year).
31 "Taxable property" means all tangible property that is subject to the
32 tax imposed by this article and is not exempt from the tax under
33 IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
34 chapter, the term "taxable property" is further defined in section 6 of
35 this chapter.
36 SECTION 16. IC 6-1.1-18.5-2, AS AMENDED BY P.L.239-2023,
37 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JULY 1, 2024]: Sec. 2. (a) As used in this section, "Indiana nonfarm
39 personal income" means the estimate of total nonfarm personal income
40 for Indiana in a calendar year as computed by the federal Bureau of
41 Economic Analysis using any actual data for the calendar year and any
42 estimated data determined appropriate by the federal Bureau of
EH 1120—LS 6559/DI 120 23
1 Economic Analysis.
2 (b) Except as provided in subsections (c) and (e), for purposes of
3 determining a civil taxing unit's maximum permissible ad valorem
4 property tax levy for an ensuing calendar year, the civil taxing unit
5 shall use the maximum levy growth quotient determined in the last
6 STEP of the following STEPS:
7 STEP ONE: For each of the six (6) calendar years immediately
8 preceding the year in which a budget is adopted under
9 IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
10 nonfarm personal income for the calendar year by the Indiana
11 nonfarm personal income for the calendar year immediately
12 preceding that calendar year, rounding to the nearest
13 one-thousandth (0.001).
14 STEP TWO: Determine the sum of the STEP ONE results.
15 STEP THREE: Divide the STEP TWO result by six (6), rounding
16 to the nearest one-thousandth (0.001).
17 STEP FOUR: Determine the lesser of the following:
18 (A) The STEP THREE quotient.
19 (B) One and six-hundredths (1.06).
20 (c) Except as provided in subsection (f), a school corporation shall
21 use for its operations fund maximum levy calculation under
22 IC 20-46-8-1 the maximum levy growth quotient determined in the last
23 STEP of the following STEPS:
24 STEP ONE: Determine for each school corporation, the average
25 annual growth in net assessed value using the three (3) calendar
26 years immediately preceding the year in which a budget is
27 adopted under IC 6-1.1-17-5 for the ensuing calendar year.
28 STEP TWO: Determine the greater of:
29 (A) zero (0); or
30 (B) the STEP ONE amount minus the sum of:
31 (i) the maximum levy growth quotient determined under
32 subsection (b) minus one (1); plus
33 (ii) two-hundredths (0.02).
34 STEP THREE: Determine the lesser of:
35 (A) the STEP TWO amount; or
36 (B) four-hundredths (0.04).
37 STEP FOUR: Determine the sum of:
38 (A) the STEP THREE amount; plus
39 (B) the maximum levy growth quotient determined under
40 subsection (b).
41 STEP FIVE: Determine the greater of:
42 (A) the STEP FOUR amount; or
EH 1120—LS 6559/DI 120 24
1 (B) the maximum levy growth quotient determined under
2 subsection (b).
3 (d) The budget agency shall provide the maximum levy growth
4 quotient for the ensuing year to civil taxing units, school corporations,
5 and the department of local government finance before July 1 of each
6 year.
7 (e) This subsection applies only for purposes of determining the
8 maximum levy growth quotient to be used in determining a civil taxing
9 unit's maximum permissible ad valorem property tax levy in calendar
10 years 2024, and 2025, and 2026. For purposes of determining the
11 maximum levy growth quotient in calendar years 2024, and 2025, and
12 2026, instead of the result determined in the last STEP in subsection
13 (b), the maximum levy growth quotient is determined in the last STEP
14 of the following STEPS:
15 STEP ONE: Determine the result of STEP FOUR of subsection
16 (b), calculated as if this subsection was not in effect.
17 STEP TWO: Subtract one (1) from the STEP ONE result.
18 STEP THREE: Multiply the STEP TWO result by eight-tenths
19 (0.8).
20 STEP FOUR: Add one (1) to the STEP THREE result.
21 STEP FIVE: Determine the lesser of:
22 (A) the STEP FOUR result; or
23 (B) one and four-hundredths (1.04).
24 (f) This subsection applies only for purposes of determining the
25 maximum levy growth quotient to be used in determining a school
26 corporation's operations fund maximum levy in calendar years 2024,
27 and 2025, and 2026. For purposes of determining the maximum levy
28 growth quotient in calendar years 2024, and 2025, and 2026, instead
29 of the result determined in the last STEP in subsection (c), the
30 maximum levy growth quotient is determined in the last STEP of the
31 following STEPS:
32 STEP ONE: Determine the result of STEP FIVE of subsection (c),
33 calculated as if this subsection was not in effect.
34 STEP TWO: Subtract one (1) from the STEP ONE result.
35 STEP THREE: Multiply the STEP TWO result by eight-tenths
36 (0.8).
37 STEP FOUR: Add one (1) to the STEP THREE result.
38 STEP FIVE: Determine the lesser of:
39 (A) the STEP FOUR result; or
40 (B) one and four-hundredths (1.04).
41 SECTION 17. IC 6-1.1-20-1.1, AS AMENDED BY P.L.236-2023,
42 SECTION 35, AND AS AMENDED BY P.L.239-2023, SECTION 6,
EH 1120—LS 6559/DI 120 25
1 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
2 OF THE 2024 GENERAL ASSEMBLY, IS CORRECTED AND
3 AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
4 2024 (RETROACTIVE)]: Sec. 1.1. (a) As used in this chapter,
5 "controlled project" means any project financed by bonds or a lease,
6 except for the following:
7 (1) A project for which the political subdivision reasonably
8 expects to pay:
9 (A) debt service; or
10 (B) lease rentals;
11 from funds other than property taxes that are exempt from the
12 levy limitations of IC 6-1.1-18.5 or (before January 1, 2009)
13 IC 20-45-3. A project is not a controlled project even though the
14 political subdivision has pledged to levy property taxes to pay the
15 debt service or lease rentals if those other funds are insufficient.
16 (2) Subject to subsection (b), a project that will not cost the
17 political subdivision more than the lesser of the following:
18 (A) An amount equal to the following:
19 (i) In the case of an ordinance or resolution adopted before
20 January 1, 2018, making a preliminary determination to
21 issue bonds or enter into a lease for the project, two million
22 dollars ($2,000,000).
23 (ii) In the case of an ordinance or resolution adopted after
24 December 31, 2017, and before January 1, 2019, making a
25 preliminary determination to issue bonds or enter into a
26 lease for the project, five million dollars ($5,000,000).
27 (iii) In the case of an ordinance or resolution adopted in a
28 calendar year after December 31, 2018, making a
29 preliminary determination to issue bonds or enter into a
30 lease for the project, an amount (as determined by the
31 department of local government finance) equal to the result
32 of the maximum levy growth quotient determined under
33 IC 6-1.1-18.5-2 for the year multiplied by the amount
34 determined under this clause for the preceding calendar
35 year.
36 The department of local government finance shall publish the
37 threshold determined under item (iii) in the Indiana Register
38 under IC 4-22-7-7 not more than sixty (60) days after the date
39 the budget agency releases the maximum levy growth quotient
40 for the ensuing year under IC 6-1.1-18.5-2.
41 (B) An amount equal to the following:
42 (i) One percent (1%) of the total gross assessed value of
EH 1120—LS 6559/DI 120 26
1 property within the political subdivision on the last
2 assessment date, if that total gross assessed value is more
3 than one hundred million dollars ($100,000,000).
4 (ii) One million dollars ($1,000,000), if the total gross
5 assessed value of property within the political subdivision
6 on the last assessment date is not more than one hundred
7 million dollars ($100,000,000).
8 (3) A project that is being refinanced for the purpose of providing
9 gross or net present value savings to taxpayers.
10 (4) A project for which bonds were issued or leases were entered
11 into before January 1, 1996, or where the state board of tax
12 commissioners has approved the issuance of bonds or the
13 execution of leases before January 1, 1996.
14 (5) A project that:
15 (A) is required by a court order holding that a federal law
16 mandates the project; or
17 (B) is in response to a court order holding that:
18 (i) a federal law has been violated; and
19 (ii) the project is to address the deficiency or violation.
20 (6) A project that is in response to:
21 (A) a natural disaster;
22 (B) an accident; or
23 (C) an emergency;
24 in the political subdivision that makes a building or facility
25 unavailable for its intended use.
26 (7) A project that was not a controlled project under this section
27 as in effect on June 30, 2008, and for which:
28 (A) the bonds or lease for the project were issued or entered
29 into before July 1, 2008; or
30 (B) the issuance of the bonds or the execution of the lease for
31 the project was approved by the department of local
32 government finance before July 1, 2008.
33 (8) A project of the Little Calumet River basin development
34 commission for which bonds are payable from special
35 assessments collected under IC 14-13-2-18.6.
36 (9) A project for engineering, land and right-of-way acquisition,
37 construction, resurfacing, maintenance, restoration, and
38 rehabilitation exclusively for or of:
39 (A) local road and street systems, including bridges that are
40 designated as being in a local road and street system;
41 (B) arterial road and street systems, including bridges that are
42 designated as being in an arterial road and street system; or
EH 1120—LS 6559/DI 120 27
1 (C) any combination of local and arterial road and street
2 systems, including designated bridges.
3 (b) This subsection does not apply to a project for which a public
4 hearing to issue bonds or enter into a lease has been conducted under
5 IC 20-26-7-37 before July 1, 2023. If:
6 (1) a political subdivision's total debt service tax rate is more
7 than forty cents ($0.40) per one hundred dollars ($100) of
8 assessed value; and
9 (2) subsection (a)(1) and subsection (a)(3) through (a)(9) are not
10 applicable;
11 the term includes any project to be financed by bonds or a lease,
12 including a project that does not otherwise meet the threshold amount
13 provided in subsection (a)(2). This subsection expires December 31,
14 2024. 2025. For purposes of this subsection, a political subdivision's
15 total debt service tax rate does not include a tax rate imposed in a
16 referendum debt service tax levy approved by voters.
17 SECTION 18. IC 6-1.1-20-3.1, AS AMENDED BY P.L.239-2023,
18 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.1. (a) Subject to section
20 3.5(a)(1)(C) of this chapter, this section applies only to the following:
21 (1) A controlled project (as defined in section 1.1 of this chapter
22 as in effect June 30, 2008) for which the proper officers of a
23 political subdivision make a preliminary determination in the
24 manner described in subsection (b) before July 1, 2008.
25 (2) An elementary school building, middle school building, high
26 school building, or other school building for academic instruction
27 that:
28 (A) is a controlled project;
29 (B) will be used for any combination of kindergarten through
30 grade 12; and
31 (C) will not cost more than the lesser of the following:
32 (i) The threshold amount determined under this item. In the
33 case of an ordinance or resolution adopted before January 1,
34 2018, making a preliminary determination to issue bonds or
35 enter into a lease for the project, the threshold amount is ten
36 million dollars ($10,000,000). In the case of an ordinance or
37 resolution adopted after December 31, 2017, and before
38 January 1, 2019, making a preliminary determination to
39 issue bonds or enter into a lease for the project, the threshold
40 amount is fifteen million dollars ($15,000,000). In the case
41 of an ordinance or resolution adopted in a calendar year after
42 December 31, 2018, making a preliminary determination to
EH 1120—LS 6559/DI 120 28
1 issue bonds or enter into a lease for the project, the threshold
2 amount is an amount (as determined by the department of
3 local government finance) equal to the result of the
4 maximum levy growth quotient determined under
5 IC 6-1.1-18.5-2 for the year multiplied by the threshold
6 amount determined under this item for the preceding
7 calendar year. In the case of a threshold amount determined
8 under this item that applies for a calendar year after
9 December 31, 2018, the department of local government
10 finance shall publish the threshold in the Indiana Register
11 under IC 4-22-7-7 not more than sixty (60) days after the
12 date the budget agency releases the maximum levy growth
13 quotient for the ensuing year under IC 6-1.1-18.5-2.
14 (ii) An amount equal to one percent (1%) of the total gross
15 assessed value of property within the political subdivision
16 on the last assessment date, if that total gross assessed value
17 is more than one billion dollars ($1,000,000,000), or ten
18 million dollars ($10,000,000), if the total gross assessed
19 value of property within the political subdivision on the last
20 assessment date is not more than one billion dollars
21 ($1,000,000,000).
22 (3) Any other controlled project that:
23 (A) is not a controlled project described in subdivision (1) or
24 (2); and
25 (B) will not cost the political subdivision more than the lesser
26 of the following:
27 (i) The threshold amount determined under this item. In the
28 case of an ordinance or resolution adopted before January 1,
29 2018, making a preliminary determination to issue bonds or
30 enter into a lease for the project, the threshold amount is
31 twelve million dollars ($12,000,000). In the case of an
32 ordinance or resolution adopted after December 31, 2017,
33 and before January 1, 2019, making a preliminary
34 determination to issue bonds or enter into a lease for the
35 project, the threshold amount is fifteen million dollars
36 ($15,000,000). In the case of an ordinance or resolution
37 adopted in a calendar year after December 31, 2018, making
38 a preliminary determination to issue bonds or enter into a
39 lease for the project, the threshold amount is an amount (as
40 determined by the department of local government finance)
41 equal to the result of the maximum levy growth quotient
42 determined under IC 6-1.1-18.5-2 for the year multiplied by
EH 1120—LS 6559/DI 120 29
1 the threshold amount determined under this item for the
2 preceding calendar year. In the case of a threshold amount
3 determined under this item that applies for a calendar year
4 after December 31, 2018, the department of local
5 government finance shall publish the threshold in the
6 Indiana Register under IC 4-22-7-7 not more than sixty (60)
7 days after the date the budget agency releases the maximum
8 levy growth quotient for the ensuing year under
9 IC 6-1.1-18.5-2.
10 (ii) An amount equal to one percent (1%) of the total gross
11 assessed value of property within the political subdivision
12 on the last assessment date, if that total gross assessed value
13 is more than one hundred million dollars ($100,000,000), or
14 one million dollars ($1,000,000), if the total gross assessed
15 value of property within the political subdivision on the last
16 assessment date is not more than one hundred million
17 dollars ($100,000,000).
18 (4) This subdivision does not apply to a project for which a public
19 hearing to issue bonds or enter into a lease has been conducted
20 under IC 20-26-7-37 before July 1, 2023. Any other controlled
21 project if both of the following apply:
22 (A) The political subdivision's total debt service tax rate is
23 more than forty cents ($0.40) per one hundred dollars ($100)
24 of assessed value, but less than eighty cents ($0.80) per one
25 hundred dollars ($100) of assessed value.
26 (B) The controlled project is not otherwise described in section
27 3.5(a)(1) of this chapter.
28 This subdivision expires December 31, 2024. 2025. For purposes
29 of this subdivision, a political subdivision's total debt service
30 tax rate does not include a tax rate imposed in a referendum
31 debt service tax levy approved by voters.
32 (b) A political subdivision may not impose property taxes to pay
33 debt service on bonds or lease rentals on a lease for a controlled project
34 without completing the following procedures:
35 (1) The proper officers of a political subdivision shall publish
36 notice in accordance with IC 5-3-1 and send notice by first class
37 mail to the circuit court clerk and to any organization that delivers
38 to the officers, before January 1 of that year, an annual written
39 request for such notices of any meeting to consider adoption of a
40 resolution or an ordinance making a preliminary determination to
41 issue bonds or enter into a lease and shall conduct at least two (2)
42 public hearings on a preliminary determination before adoption
EH 1120—LS 6559/DI 120 30
1 of the resolution or ordinance. The political subdivision must at
2 each of the public hearings on the preliminary determination
3 allow the public to testify regarding the preliminary determination
4 and must make the following information available to the public
5 at each of the public hearings on the preliminary determination,
6 in addition to any other information required by law:
7 (A) The result of the political subdivision's current and
8 projected annual debt service payments divided by the net
9 assessed value of taxable property within the political
10 subdivision.
11 (B) The result of:
12 (i) the sum of the political subdivision's outstanding long
13 term debt plus the outstanding long term debt of other taxing
14 units that include any of the territory of the political
15 subdivision; divided by
16 (ii) the net assessed value of taxable property within the
17 political subdivision.
18 (C) The information specified in subdivision (3)(A) through
19 (3)(H).
20 (2) When the proper officers of a political subdivision make a
21 preliminary determination to issue bonds or enter into a lease for
22 a controlled project, the officers shall give notice of the
23 preliminary determination by:
24 (A) publication in accordance with IC 5-3-1; and
25 (B) first class mail to the circuit court clerk and to the
26 organizations described in subdivision (1).
27 (3) A notice under subdivision (2) of the preliminary
28 determination of the political subdivision to issue bonds or enter
29 into a lease for a controlled project must include the following
30 information:
31 (A) The maximum term of the bonds or lease.
32 (B) The maximum principal amount of the bonds or the
33 maximum lease rental for the lease.
34 (C) The estimated interest rates that will be paid and the total
35 interest costs associated with the bonds or lease.
36 (D) The purpose of the bonds or lease.
37 (E) A statement that any owners of property within the
38 political subdivision or registered voters residing within the
39 political subdivision who want to initiate a petition and
40 remonstrance process against the proposed debt service or
41 lease payments must file a petition that complies with
42 subdivisions (4) and (5) not later than thirty (30) days after
EH 1120—LS 6559/DI 120 31
1 publication in accordance with IC 5-3-1.
2 (F) With respect to bonds issued or a lease entered into to
3 open:
4 (i) a new school facility; or
5 (ii) an existing facility that has not been used for at least
6 three (3) years and that is being reopened to provide
7 additional classroom space;
8 the estimated costs the school corporation expects to incur
9 annually to operate the facility.
10 (G) A statement of whether the school corporation expects to
11 appeal for a new facility adjustment (as defined in
12 IC 20-45-1-16 (repealed) before January 1, 2009) for an
13 increased maximum permissible tuition support levy to pay the
14 estimated costs described in clause (F).
15 (H) The following information:
16 (i) The political subdivision's current debt service levy and
17 rate.
18 (ii) The estimated increase to the political subdivision's debt
19 service levy and rate that will result if the political
20 subdivision issues the bonds or enters into the lease.
21 (iii) The estimated amount of the political subdivision's debt
22 service levy and rate that will result during the following ten
23 (10) years if the political subdivision issues the bonds or
24 enters into the lease, after also considering any changes that
25 will occur to the debt service levy and rate during that
26 period on account of any outstanding bonds or lease
27 obligations that will mature or terminate during that period.
28 (I) The information specified in subdivision (1)(A) through
29 (1)(B).
30 (4) After notice is given, a petition requesting the application of
31 a petition and remonstrance process may be filed by the lesser of:
32 (A) five hundred (500) persons who are either owners of
33 property within the political subdivision or registered voters
34 residing within the political subdivision; or
35 (B) five percent (5%) of the registered voters residing within
36 the political subdivision.
37 (5) The state board of accounts shall design and, upon request by
38 the county voter registration office, deliver to the county voter
39 registration office or the county voter registration office's
40 designated printer the petition forms to be used solely in the
41 petition process described in this section. The county voter
42 registration office shall issue to an owner or owners of property
EH 1120—LS 6559/DI 120 32
1 within the political subdivision or a registered voter residing
2 within the political subdivision the number of petition forms
3 requested by the owner or owners or the registered voter. Each
4 form must be accompanied by instructions detailing the
5 requirements that:
6 (A) the carrier and signers must be owners of property or
7 registered voters;
8 (B) the carrier must be a signatory on at least one (1) petition;
9 (C) after the signatures have been collected, the carrier must
10 swear or affirm before a notary public that the carrier
11 witnessed each signature; and
12 (D) govern the closing date for the petition period.
13 Persons requesting forms may be required to identify themselves
14 as owners of property or registered voters and may be allowed to
15 pick up additional copies to distribute to other owners of property
16 or registered voters. Each person signing a petition must indicate
17 whether the person is signing the petition as a registered voter
18 within the political subdivision or is signing the petition as the
19 owner of property within the political subdivision. A person who
20 signs a petition as a registered voter must indicate the address at
21 which the person is registered to vote. A person who signs a
22 petition as an owner of property must indicate the address of the
23 property owned by the person in the political subdivision.
24 (6) Each petition must be verified under oath by at least one (1)
25 qualified petitioner in a manner prescribed by the state board of
26 accounts before the petition is filed with the county voter
27 registration office under subdivision (7).
28 (7) Each petition must be filed with the county voter registration
29 office not more than thirty (30) days after publication under
30 subdivision (2) of the notice of the preliminary determination.
31 (8) The county voter registration office shall determine whether
32 each person who signed the petition is a registered voter.
33 However, after the county voter registration office has determined
34 that at least five hundred twenty-five (525) persons who signed
35 the petition are registered voters within the political subdivision,
36 the county voter registration office is not required to verify
37 whether the remaining persons who signed the petition are
38 registered voters. If the county voter registration office does not
39 determine that at least five hundred twenty-five (525) persons
40 who signed the petition are registered voters, the county voter
41 registration office shall, not more than fifteen (15) business days
42 after receiving a petition, forward a copy of the petition to the
EH 1120—LS 6559/DI 120 33
1 county auditor. Not more than ten (10) business days after
2 receiving the copy of the petition, the county auditor shall provide
3 to the county voter registration office a statement verifying:
4 (A) whether a person who signed the petition as a registered
5 voter but is not a registered voter, as determined by the county
6 voter registration office, is the owner of property in the
7 political subdivision; and
8 (B) whether a person who signed the petition as an owner of
9 property within the political subdivision does in fact own
10 property within the political subdivision.
11 (9) The county voter registration office, not more than ten (10)
12 business days after determining that at least five hundred
13 twenty-five (525) persons who signed the petition are registered
14 voters or receiving the statement from the county auditor under
15 subdivision (8), as applicable, shall make the final determination
16 of the number of petitioners that are registered voters in the
17 political subdivision and, based on the statement provided by the
18 county auditor, the number of petitioners that own property within
19 the political subdivision. Whenever the name of an individual
20 who signs a petition form as a registered voter contains a minor
21 variation from the name of the registered voter as set forth in the
22 records of the county voter registration office, the signature is
23 presumed to be valid, and there is a presumption that the
24 individual is entitled to sign the petition under this section. Except
25 as otherwise provided in this chapter, in determining whether an
26 individual is a registered voter, the county voter registration office
27 shall apply the requirements and procedures used under IC 3 to
28 determine whether a person is a registered voter for purposes of
29 voting in an election governed by IC 3. However, an individual is
30 not required to comply with the provisions concerning providing
31 proof of identification to be considered a registered voter for
32 purposes of this chapter. A person is entitled to sign a petition
33 only one (1) time in a particular petition and remonstrance
34 process under this chapter, regardless of whether the person owns
35 more than one (1) parcel of real property, mobile home assessed
36 as personal property, or manufactured home assessed as personal
37 property, or a combination of those types of property within the
38 subdivision and regardless of whether the person is both a
39 registered voter in the political subdivision and the owner of
40 property within the political subdivision. Notwithstanding any
41 other provision of this section, if a petition is presented to the
42 county voter registration office within forty-five (45) days before
EH 1120—LS 6559/DI 120 34
1 an election, the county voter registration office may defer acting
2 on the petition, and the time requirements under this section for
3 action by the county voter registration office do not begin to run
4 until five (5) days after the date of the election.
5 (10) The county voter registration office must file a certificate and
6 each petition with:
7 (A) the township trustee, if the political subdivision is a
8 township, who shall present the petition or petitions to the
9 township board; or
10 (B) the body that has the authority to authorize the issuance of
11 the bonds or the execution of a lease, if the political
12 subdivision is not a township;
13 within thirty-five (35) business days of the filing of the petition
14 requesting a petition and remonstrance process. The certificate
15 must state the number of petitioners that are owners of property
16 within the political subdivision and the number of petitioners who
17 are registered voters residing within the political subdivision.
18 If a sufficient petition requesting a petition and remonstrance process
19 is not filed by owners of property or registered voters as set forth in this
20 section, the political subdivision may issue bonds or enter into a lease
21 by following the provisions of law relating to the bonds to be issued or
22 lease to be entered into.
23 (c) A political subdivision may not divide a controlled project in
24 order to avoid the requirements of this section and section 3.2 of this
25 chapter. A person that owns property within a political subdivision or
26 a person that is a registered voter residing within a political subdivision
27 may file a petition with the department of local government finance
28 objecting that the political subdivision has divided a controlled project
29 in order to avoid the requirements of this section and section 3.2 of this
30 chapter. The petition must be filed not more than ten (10) days after the
31 political subdivision gives notice of the political subdivision's decision
32 to issue bonds or enter into leases for a capital project that the person
33 believes is the result of a division of a controlled project that is
34 prohibited by this subsection. If the department of local government
35 finance receives a petition under this subsection, the department shall
36 not later than thirty (30) days after receiving the petition make a final
37 determination on the issue of whether the political subdivision divided
38 a controlled project in order to avoid the requirements of this section
39 and section 3.2 of this chapter. If the department of local government
40 finance determines that a political subdivision divided a controlled
41 project in order to avoid the requirements of this section and section
42 3.2 of this chapter and the political subdivision continues to desire to
EH 1120—LS 6559/DI 120 35
1 proceed with the project, the political subdivision shall fulfill the
2 requirements of this section and section 3.2 of this chapter, if
3 applicable, regardless of the cost of the project in dispute. A political
4 subdivision shall be considered to have divided a capital project in
5 order to avoid the requirements of this section and section 3.2 of this
6 chapter if the result of one (1) or more of the subprojects cannot
7 reasonably be considered an independently desirable end in itself
8 without reference to another capital project. This subsection does not
9 prohibit a political subdivision from undertaking a series of capital
10 projects in which the result of each capital project can reasonably be
11 considered an independently desirable end in itself without reference
12 to another capital project.
13 SECTION 19. IC 6-1.1-20-3.5, AS AMENDED BY P.L.239-2023,
14 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.5. (a) This section
16 applies only to a controlled project that meets the following conditions:
17 (1) The controlled project is described in one (1) of the following
18 categories:
19 (A) An elementary school building, middle school building,
20 high school building, or other school building for academic
21 instruction that will be used for any combination of
22 kindergarten through grade 12 and will cost more than the
23 lesser of the following:
24 (i) The threshold amount determined under this item. In the
25 case of an ordinance or resolution adopted before January 1,
26 2018, making a preliminary determination to issue bonds or
27 enter into a lease for the project, the threshold amount is ten
28 million dollars ($10,000,000). In the case of an ordinance or
29 resolution adopted after December 31, 2017, and before
30 January 1, 2019, making a preliminary determination to
31 issue bonds or enter into a lease for the project, the threshold
32 amount is fifteen million dollars ($15,000,000). In the case
33 of an ordinance or resolution adopted in a calendar year after
34 December 31, 2018, making a preliminary determination to
35 issue bonds or enter into a lease for the project, the threshold
36 amount is an amount (as determined by the department of
37 local government finance) equal to the result of the
38 maximum levy growth quotient determined under
39 IC 6-1.1-18.5-2 for the year multiplied by the threshold
40 amount determined under this item for the preceding
41 calendar year. In the case of a threshold amount determined
42 under this item that applies for a calendar year after
EH 1120—LS 6559/DI 120 36
1 December 31, 2018, the department of local government
2 finance shall publish the threshold in the Indiana Register
3 under IC 4-22-7-7 not more than sixty (60) days after the
4 date the budget agency releases the maximum levy growth
5 quotient for the ensuing year under IC 6-1.1-18.5-2.
6 (ii) An amount equal to one percent (1%) of the total gross
7 assessed value of property within the political subdivision
8 on the last assessment date, if that total gross assessed value
9 is more than one billion dollars ($1,000,000,000), or ten
10 million dollars ($10,000,000), if the total gross assessed
11 value of property within the political subdivision on the last
12 assessment date is not more than one billion dollars
13 ($1,000,000,000).
14 (B) Any other controlled project that is not a controlled project
15 described in clause (A) and will cost the political subdivision
16 more than the lesser of the following:
17 (i) The threshold amount determined under this item. In the
18 case of an ordinance or resolution adopted before January 1,
19 2018, making a preliminary determination to issue bonds or
20 enter into a lease for the project, the threshold amount is
21 twelve million dollars ($12,000,000). In the case of an
22 ordinance or resolution adopted after December 31, 2017,
23 and before January 1, 2019, making a preliminary
24 determination to issue bonds or enter into a lease for the
25 project, the threshold amount is fifteen million dollars
26 ($15,000,000). In the case of an ordinance or resolution
27 adopted in a calendar year after December 31, 2018, making
28 a preliminary determination to issue bonds or enter into a
29 lease for the project, the threshold amount is an amount (as
30 determined by the department of local government finance)
31 equal to the result of the maximum levy growth quotient
32 determined under IC 6-1.1-18.5-2 for the year multiplied by
33 the threshold amount determined under this item for the
34 preceding calendar year. In the case of a threshold amount
35 determined under this item that applies for a calendar year
36 after December 31, 2018, the department of local
37 government finance shall publish the threshold in the
38 Indiana Register under IC 4-22-7-7 not more than sixty (60)
39 days after the date the budget agency releases the maximum
40 levy growth quotient for the ensuing year under
41 IC 6-1.1-18.5-2.
42 (ii) An amount equal to one percent (1%) of the total gross
EH 1120—LS 6559/DI 120 37
1 assessed value of property within the political subdivision
2 on the last assessment date, if that total gross assessed value
3 is more than one hundred million dollars ($100,000,000), or
4 one million dollars ($1,000,000), if the total gross assessed
5 value of property within the political subdivision on the last
6 assessment date is not more than one hundred million
7 dollars ($100,000,000).
8 (C) Any other controlled project for which a political
9 subdivision adopts an ordinance or resolution making a
10 preliminary determination to issue bonds or enter into a lease
11 for the project, if the sum of:
12 (i) the cost of that controlled project; plus
13 (ii) the costs of all other controlled projects for which the
14 political subdivision has previously adopted within the
15 preceding three hundred sixty-five (365) days an ordinance
16 or resolution making a preliminary determination to issue
17 bonds or enter into a lease for those other controlled
18 projects;
19 exceeds twenty-five million dollars ($25,000,000).
20 (D) This clause does not apply to a project for which a public
21 hearing to issue bonds or enter into a lease has been conducted
22 under IC 20-26-7-37 before July 1, 2023. Except as provided
23 in section 4.5 of this chapter, any other controlled project if the
24 political subdivision's total debt service tax rate is at least
25 eighty cents ($0.80) per one hundred dollars ($100) of
26 assessed value. This clause expires December 31, 2024. 2025.
27 For purposes of this clause, a political subdivision's total
28 debt service tax rate does not include a tax rate imposed in
29 a referendum debt service tax levy approved by voters.
30 (2) The proper officers of the political subdivision make a
31 preliminary determination after June 30, 2008, in the manner
32 described in subsection (b) to issue bonds or enter into a lease for
33 the controlled project.
34 (b) Subject to subsection (d), a political subdivision may not impose
35 property taxes to pay debt service on bonds or lease rentals on a lease
36 for a controlled project without completing the following procedures:
37 (1) The proper officers of a political subdivision shall publish
38 notice in accordance with IC 5-3-1 and send notice by first class
39 mail to the circuit court clerk and to any organization that delivers
40 to the officers, before January 1 of that year, an annual written
41 request for notices of any meeting to consider the adoption of an
42 ordinance or a resolution making a preliminary determination to
EH 1120—LS 6559/DI 120 38
1 issue bonds or enter into a lease and shall conduct at least two (2)
2 public hearings on the preliminary determination before adoption
3 of the ordinance or resolution. The political subdivision must at
4 each of the public hearings on the preliminary determination
5 allow the public to testify regarding the preliminary determination
6 and must make the following information available to the public
7 at each of the public hearings on the preliminary determination,
8 in addition to any other information required by law:
9 (A) The result of the political subdivision's current and
10 projected annual debt service payments divided by the net
11 assessed value of taxable property within the political
12 subdivision.
13 (B) The result of:
14 (i) the sum of the political subdivision's outstanding long
15 term debt plus the outstanding long term debt of other taxing
16 units that include any of the territory of the political
17 subdivision; divided by
18 (ii) the net assessed value of taxable property within the
19 political subdivision.
20 (C) The information specified in subdivision (3)(A) through
21 (3)(G).
22 (2) If the proper officers of a political subdivision make a
23 preliminary determination to issue bonds or enter into a lease, the
24 officers shall give notice of the preliminary determination by:
25 (A) publication in accordance with IC 5-3-1; and
26 (B) first class mail to the circuit court clerk and to the
27 organizations described in subdivision (1).
28 (3) A notice under subdivision (2) of the preliminary
29 determination of the political subdivision to issue bonds or enter
30 into a lease must include the following information:
31 (A) The maximum term of the bonds or lease.
32 (B) The maximum principal amount of the bonds or the
33 maximum lease rental for the lease.
34 (C) The estimated interest rates that will be paid and the total
35 interest costs associated with the bonds or lease.
36 (D) The purpose of the bonds or lease.
37 (E) A statement that the proposed debt service or lease
38 payments must be approved in an election on a local public
39 question held under section 3.6 of this chapter.
40 (F) With respect to bonds issued or a lease entered into to
41 open:
42 (i) a new school facility; or
EH 1120—LS 6559/DI 120 39
1 (ii) an existing facility that has not been used for at least
2 three (3) years and that is being reopened to provide
3 additional classroom space;
4 the estimated costs the school corporation expects to annually
5 incur to operate the facility.
6 (G) The following information:
7 (i) The political subdivision's current debt service levy and
8 rate.
9 (ii) The estimated increase to the political subdivision's debt
10 service levy and rate that will result if the political
11 subdivision issues the bonds or enters into the lease.
12 (iii) The estimated amount of the political subdivision's debt
13 service levy and rate that will result during the following ten
14 (10) years if the political subdivision issues the bonds or
15 enters into the lease, after also considering any changes that
16 will occur to the debt service levy and rate during that
17 period on account of any outstanding bonds or lease
18 obligations that will mature or terminate during that period.
19 (H) The information specified in subdivision (1)(A) through
20 (1)(B).
21 (4) This subdivision does not apply to a controlled project
22 described in subsection (a)(1)(D) (before its expiration). After
23 notice is given, a petition requesting the application of the local
24 public question process under section 3.6 of this chapter may be
25 filed by the lesser of:
26 (A) five hundred (500) persons who are either owners of
27 property within the political subdivision or registered voters
28 residing within the political subdivision; or
29 (B) five percent (5%) of the registered voters residing within
30 the political subdivision.
31 (5) This subdivision does not apply to a controlled project
32 described in subsection (a)(1)(D) (before its expiration). The state
33 board of accounts shall design and, upon request by the county
34 voter registration office, deliver to the county voter registration
35 office or the county voter registration office's designated printer
36 the petition forms to be used solely in the petition process
37 described in this section. The county voter registration office shall
38 issue to an owner or owners of property within the political
39 subdivision or a registered voter residing within the political
40 subdivision the number of petition forms requested by the owner
41 or owners or the registered voter. Each form must be
42 accompanied by instructions detailing the requirements that:
EH 1120—LS 6559/DI 120 40
1 (A) the carrier and signers must be owners of property or
2 registered voters;
3 (B) the carrier must be a signatory on at least one (1) petition;
4 (C) after the signatures have been collected, the carrier must
5 swear or affirm before a notary public that the carrier
6 witnessed each signature; and
7 (D) govern the closing date for the petition period.
8 Persons requesting forms may be required to identify themselves
9 as owners of property or registered voters and may be allowed to
10 pick up additional copies to distribute to other owners of property
11 or registered voters. Each person signing a petition must indicate
12 whether the person is signing the petition as a registered voter
13 within the political subdivision or is signing the petition as the
14 owner of property within the political subdivision. A person who
15 signs a petition as a registered voter must indicate the address at
16 which the person is registered to vote. A person who signs a
17 petition as an owner of property must indicate the address of the
18 property owned by the person in the political subdivision.
19 (6) This subdivision does not apply to a controlled project
20 described in subsection (a)(1)(D) (before its expiration). Each
21 petition must be verified under oath by at least one (1) qualified
22 petitioner in a manner prescribed by the state board of accounts
23 before the petition is filed with the county voter registration office
24 under subdivision (7).
25 (7) This subdivision does not apply to a controlled project
26 described in subsection (a)(1)(D) (before its expiration). Each
27 petition must be filed with the county voter registration office not
28 more than thirty (30) days after publication under subdivision (2)
29 of the notice of the preliminary determination.
30 (8) This subdivision does not apply to a controlled project
31 described in subsection (a)(1)(D) (before its expiration). The
32 county voter registration office shall determine whether each
33 person who signed the petition is a registered voter. However,
34 after the county voter registration office has determined that at
35 least five hundred twenty-five (525) persons who signed the
36 petition are registered voters within the political subdivision, the
37 county voter registration office is not required to verify whether
38 the remaining persons who signed the petition are registered
39 voters. If the county voter registration office does not determine
40 that at least five hundred twenty-five (525) persons who signed
41 the petition are registered voters, the county voter registration
42 office, not more than fifteen (15) business days after receiving a
EH 1120—LS 6559/DI 120 41
1 petition, shall forward a copy of the petition to the county auditor.
2 Not more than ten (10) business days after receiving the copy of
3 the petition, the county auditor shall provide to the county voter
4 registration office a statement verifying:
5 (A) whether a person who signed the petition as a registered
6 voter but is not a registered voter, as determined by the county
7 voter registration office, is the owner of property in the
8 political subdivision; and
9 (B) whether a person who signed the petition as an owner of
10 property within the political subdivision does in fact own
11 property within the political subdivision.
12 (9) This subdivision does not apply to a controlled project
13 described in subsection (a)(1)(D) (before its expiration). The
14 county voter registration office, not more than ten (10) business
15 days after determining that at least five hundred twenty-five (525)
16 persons who signed the petition are registered voters or after
17 receiving the statement from the county auditor under subdivision
18 (8), as applicable, shall make the final determination of whether
19 a sufficient number of persons have signed the petition. Whenever
20 the name of an individual who signs a petition form as a
21 registered voter contains a minor variation from the name of the
22 registered voter as set forth in the records of the county voter
23 registration office, the signature is presumed to be valid, and there
24 is a presumption that the individual is entitled to sign the petition
25 under this section. Except as otherwise provided in this chapter,
26 in determining whether an individual is a registered voter, the
27 county voter registration office shall apply the requirements and
28 procedures used under IC 3 to determine whether a person is a
29 registered voter for purposes of voting in an election governed by
30 IC 3. However, an individual is not required to comply with the
31 provisions concerning providing proof of identification to be
32 considered a registered voter for purposes of this chapter. A
33 person is entitled to sign a petition only one (1) time in a
34 particular referendum process under this chapter, regardless of
35 whether the person owns more than one (1) parcel of real
36 property, mobile home assessed as personal property, or
37 manufactured home assessed as personal property or a
38 combination of those types of property within the political
39 subdivision and regardless of whether the person is both a
40 registered voter in the political subdivision and the owner of
41 property within the political subdivision. Notwithstanding any
42 other provision of this section, if a petition is presented to the
EH 1120—LS 6559/DI 120 42
1 county voter registration office within forty-five (45) days before
2 an election, the county voter registration office may defer acting
3 on the petition, and the time requirements under this section for
4 action by the county voter registration office do not begin to run
5 until five (5) days after the date of the election.
6 (10) This subdivision does not apply to a controlled project
7 described in subsection (a)(1)(D) (before its expiration). The
8 county voter registration office must file a certificate and each
9 petition with:
10 (A) the township trustee, if the political subdivision is a
11 township, who shall present the petition or petitions to the
12 township board; or
13 (B) the body that has the authority to authorize the issuance of
14 the bonds or the execution of a lease, if the political
15 subdivision is not a township;
16 within thirty-five (35) business days of the filing of the petition
17 requesting the referendum process. The certificate must state the
18 number of petitioners who are owners of property within the
19 political subdivision and the number of petitioners who are
20 registered voters residing within the political subdivision.
21 (11) This subdivision does not apply to a controlled project
22 described in subsection (a)(1)(D) (before its expiration). If a
23 sufficient petition requesting the local public question process is
24 not filed by owners of property or registered voters as set forth in
25 this section, the political subdivision may issue bonds or enter
26 into a lease by following the provisions of law relating to the
27 bonds to be issued or lease to be entered into.
28 (c) If the proper officers of a political subdivision make a
29 preliminary determination to issue bonds or enter into a lease, the
30 officers shall provide to the county auditor:
31 (1) a copy of the notice required by subsection (b)(2); and
32 (2) any other information the county auditor requires to fulfill the
33 county auditor's duties under section 3.6 of this chapter.
34 (d) In addition to the procedures in subsection (b), if any capital
35 improvement components addressed in the most recent:
36 (1) threat assessment of the buildings within the school
37 corporation; or
38 (2) school safety plan (as described in IC 20-26-18.2-2(b));
39 concerning a particular school have not been completed or require
40 additional funding to be completed, before the school corporation may
41 impose property taxes to pay debt service on bonds or lease rentals for
42 a lease for a controlled project, and in addition to any other components
EH 1120—LS 6559/DI 120 43
1 of the controlled project, the controlled project must include any capital
2 improvements necessary to complete those components described in
3 subdivisions (1) and (2) that have not been completed or that require
4 additional funding to be completed.
5 (e) In addition to the other procedures in this section, an ordinance
6 or resolution making a preliminary determination to issue bonds or
7 enter into leases that is considered for adoption must include a
8 statement of:
9 (1) the maximum annual debt service for the controlled project for
10 each year in which the debt service will be paid; and
11 (2) the schedule of the estimated annual tax levy and rate over a
12 ten (10) year period;
13 factoring in changes that will occur to the debt service levy and tax rate
14 during the period on account of any outstanding bonds or lease
15 obligations that will mature or terminate during the period.
16 SECTION 20. IC 6-1.1-20-3.6, AS AMENDED BY P.L.239-2023,
17 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 3.6. (a) Except as
19 provided in sections 3.7 and 3.8 of this chapter, this section applies
20 only to a controlled project described in section 3.5(a) of this chapter.
21 (b) In the case of a controlled project:
22 (1) described in section 3.5(a)(1)(A) through 3.5(a)(1)(C) of this
23 chapter, if a sufficient petition requesting the application of the
24 local public question process has been filed as set forth in section
25 3.5 of this chapter; or
26 (2) described in section 3.5(a)(1)(D) of this chapter (before its
27 expiration);
28 a political subdivision may not impose property taxes to pay debt
29 service on bonds or lease rentals on a lease for a controlled project
30 unless the political subdivision's proposed debt service or lease rental
31 is approved in an election on a local public question held under this
32 section.
33 (c) Except as provided in subsection (k), the following question
34 shall be submitted to the eligible voters at the election conducted under
35 this section:
36 "Shall ________ (insert the name of the political subdivision)
37 increase property taxes paid to the _______ (insert the type of
38 taxing unit) by homeowners and businesses? If this public
39 question is approved by the voters, the average property tax paid
40 to the _______ (insert the type of taxing unit) per year on a
41 residence would increase by ______% (insert the estimated
42 average percentage of property tax increase paid to the political
EH 1120—LS 6559/DI 120 44
1 subdivision on a residence within the political subdivision as
2 determined under subsection (n)) and the average property tax
3 paid to the _____ (insert the type of taxing unit) per year on a
4 business property would increase by ______% (insert the
5 estimated average percentage of property tax increase paid to the
6 political subdivision on a business property within the political
7 subdivision as determined under subsection (o)). The political
8 subdivision may issue bonds or enter into a lease to ________
9 (insert a brief description of the controlled project), which is
10 estimated to cost _______ (insert the total cost of the project)
11 over ______ (insert number of years to bond maturity or
12 termination of lease) years. The most recent property tax
13 referendum within the boundaries of the political subdivision for
14 which this public question is being considered was proposed by
15 ________ (insert name of political subdivision) in ______ (insert
16 year of most recent property tax referendum) and ________
17 (insert whether the measure passed or failed).".
18 The public question must appear on the ballot in the form approved by
19 the county election board. If the political subdivision proposing to issue
20 bonds or enter into a lease is located in more than one (1) county, the
21 county election board of each county shall jointly approve the form of
22 the public question that will appear on the ballot in each county. The
23 form approved by the county election board may differ from the
24 language certified to the county election board by the county auditor.
25 If the county election board approves the language of a public question
26 under this subsection, the county election board shall submit the
27 language and the certification of the county auditor described in
28 subsection (p) to the department of local government finance for
29 review.
30 (d) The department of local government finance shall review the
31 language of the public question to evaluate whether the description of
32 the controlled project is accurate and is not biased against either a vote
33 in favor of the controlled project or a vote against the controlled
34 project. The department of local government finance shall post the
35 estimated average percentage of property tax increases to be paid to a
36 political subdivision on a residence and business property that are
37 certified by the county auditor under subsection (p) on the department's
38 Internet web site. The department of local government finance may
39 either approve the ballot language as submitted or recommend that the
40 ballot language be modified as necessary to ensure that the description
41 of the controlled project is accurate and is not biased. The department
42 of local government finance shall certify its approval or
EH 1120—LS 6559/DI 120 45
1 recommendations to the county auditor and the county election board
2 not more than ten (10) days after the language of the public question is
3 submitted to the department for review. If the department of local
4 government finance recommends a modification to the ballot language,
5 the county election board shall, after reviewing the recommendations
6 of the department of local government finance, submit modified ballot
7 language to the department for the department's approval or
8 recommendation of any additional modifications. The public question
9 may not be certified by the county auditor under subsection (e) unless
10 the department of local government finance has first certified the
11 department's final approval of the ballot language for the public
12 question.
13 (e) The county auditor shall certify the finally approved public
14 question under IC 3-10-9-3 to the county election board of each county
15 in which the political subdivision is located. The certification must
16 occur not later than noon:
17 (1) seventy-four (74) days before a primary election if the public
18 question is to be placed on the primary or municipal primary
19 election ballot; or
20 (2) August 1 if the public question is to be placed on the general
21 or municipal election ballot.
22 Subject to the certification requirements and deadlines under this
23 subsection and except as provided in subsection (j), the public question
24 shall be placed on the ballot at the next primary election, general
25 election or municipal election in which all voters of the political
26 subdivision are entitled to vote. However, if a primary election, general
27 election, or municipal election will not be held during the first year in
28 which the public question is eligible to be placed on the ballot under
29 this section and if the political subdivision requests the public question
30 to be placed on the ballot at a special election, the public question shall
31 be placed on the ballot at a special election to be held on the first
32 Tuesday after the first Monday in May or November of the year. The
33 certification must occur not later than noon seventy-four (74) days
34 before a special election to be held in May (if the special election is to
35 be held in May) or noon on August 1 (if the special election is to be
36 held in November). The fiscal body of the political subdivision that
37 requests the special election shall pay the costs of holding the special
38 election. The county election board shall give notice under IC 5-3-1 of
39 a special election conducted under this subsection. A special election
40 conducted under this subsection is under the direction of the county
41 election board. The county election board shall take all steps necessary
42 to carry out the special election.
EH 1120—LS 6559/DI 120 46
1 (f) The circuit court clerk shall certify the results of the public
2 question to the following:
3 (1) The county auditor of each county in which the political
4 subdivision is located.
5 (2) The department of local government finance.
6 (g) Subject to the requirements of IC 6-1.1-18.5-8, the political
7 subdivision may issue the proposed bonds or enter into the proposed
8 lease rental if a majority of the eligible voters voting on the public
9 question vote in favor of the public question.
10 (h) If a majority of the eligible voters voting on the public question
11 vote in opposition to the public question, both of the following apply:
12 (1) The political subdivision may not issue the proposed bonds or
13 enter into the proposed lease rental.
14 (2) Another public question under this section on the same or a
15 substantially similar project may not be submitted to the voters
16 earlier than:
17 (A) except as provided in clause (B), seven hundred (700)
18 days after the date of the public question; or
19 (B) three hundred fifty (350) days after the date of the election,
20 if a petition that meets the requirements of subsection (m) is
21 submitted to the county auditor.
22 (i) IC 3, to the extent not inconsistent with this section, applies to an
23 election held under this section.
24 (j) A political subdivision may not divide a controlled project in
25 order to avoid the requirements of this section and section 3.5 of this
26 chapter. A person that owns property within a political subdivision or
27 a person that is a registered voter residing within a political subdivision
28 may file a petition with the department of local government finance
29 objecting that the political subdivision has divided a controlled project
30 into two (2) or more capital projects in order to avoid the requirements
31 of this section and section 3.5 of this chapter. The petition must be filed
32 not more than ten (10) days after the political subdivision gives notice
33 of the political subdivision's decision under section 3.5 of this chapter
34 or a determination under section 5 of this chapter to issue bonds or
35 enter into leases for a capital project that the person believes is the
36 result of a division of a controlled project that is prohibited by this
37 subsection. If the department of local government finance receives a
38 petition under this subsection, the department shall not later than thirty
39 (30) days after receiving the petition make a final determination on the
40 issue of whether the political subdivision divided a controlled project
41 in order to avoid the requirements of this section and section 3.5 of this
42 chapter. If the department of local government finance determines that
EH 1120—LS 6559/DI 120 47
1 a political subdivision divided a controlled project in order to avoid the
2 requirements of this section and section 3.5 of this chapter and the
3 political subdivision continues to desire to proceed with the project, the
4 political subdivision may appeal the determination of the department
5 of local government finance to the Indiana board of tax review. A
6 political subdivision shall be considered to have divided a capital
7 project in order to avoid the requirements of this section and section
8 3.5 of this chapter if the result of one (1) or more of the subprojects
9 cannot reasonably be considered an independently desirable end in
10 itself without reference to another capital project. This subsection does
11 not prohibit a political subdivision from undertaking a series of capital
12 projects in which the result of each capital project can reasonably be
13 considered an independently desirable end in itself without reference
14 to another capital project.
15 (k) This subsection applies to a political subdivision for which a
16 petition requesting a public question has been submitted under section
17 3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
18 the political subdivision may adopt a resolution to withdraw a
19 controlled project from consideration in a public question. If the
20 legislative body provides a certified copy of the resolution to the county
21 auditor and the county election board not later than sixty-three (63)
22 days before the election at which the public question would be on the
23 ballot, the public question on the controlled project shall not be placed
24 on the ballot and the public question on the controlled project shall not
25 be held, regardless of whether the county auditor has certified the
26 public question to the county election board. If the withdrawal of a
27 public question under this subsection requires the county election
28 board to reprint ballots, the political subdivision withdrawing the
29 public question shall pay the costs of reprinting the ballots. If a political
30 subdivision withdraws a public question under this subsection that
31 would have been held at a special election and the county election
32 board has printed the ballots before the legislative body of the political
33 subdivision provides a certified copy of the withdrawal resolution to
34 the county auditor and the county election board, the political
35 subdivision withdrawing the public question shall pay the costs
36 incurred by the county in printing the ballots. If a public question on a
37 controlled project is withdrawn under this subsection, a public question
38 under this section on the same controlled project or a substantially
39 similar controlled project may not be submitted to the voters earlier
40 than three hundred fifty (350) days after the date the resolution
41 withdrawing the public question is adopted.
42 (l) If a public question regarding a controlled project is placed on
EH 1120—LS 6559/DI 120 48
1 the ballot to be voted on at an election under this section, the political
2 subdivision shall submit to the department of local government finance,
3 at least thirty (30) days before the election, the following information
4 regarding the proposed controlled project for posting on the
5 department's Internet web site:
6 (1) The cost per square foot of any buildings being constructed as
7 part of the controlled project.
8 (2) The effect that approval of the controlled project would have
9 on the political subdivision's property tax rate.
10 (3) The maximum term of the bonds or lease.
11 (4) The maximum principal amount of the bonds or the maximum
12 lease rental for the lease.
13 (5) The estimated interest rates that will be paid and the total
14 interest costs associated with the bonds or lease.
15 (6) The purpose of the bonds or lease.
16 (7) In the case of a controlled project proposed by a school
17 corporation:
18 (A) the current and proposed square footage of school building
19 space per student;
20 (B) enrollment patterns within the school corporation; and
21 (C) the age and condition of the current school facilities.
22 (m) If a majority of the eligible voters voting on the public question
23 vote in opposition to the public question, a petition may be submitted
24 to the county auditor to request that the limit under subsection
25 (h)(2)(B) apply to the holding of a subsequent public question by the
26 political subdivision. If such a petition is submitted to the county
27 auditor and is signed by the lesser of:
28 (1) five hundred (500) persons who are either owners of property
29 within the political subdivision or registered voters residing
30 within the political subdivision; or
31 (2) five percent (5%) of the registered voters residing within the
32 political subdivision;
33 the limit under subsection (h)(2)(B) applies to the holding of a second
34 public question by the political subdivision and the limit under
35 subsection (h)(2)(A) does not apply to the holding of a second public
36 question by the political subdivision.
37 (n) At the request of a political subdivision that proposes to impose
38 property taxes to pay debt service on bonds or lease rentals on a lease
39 for a controlled project, the county auditor of a county in which the
40 political subdivision is located shall determine the estimated average
41 percentage of property tax increase on a homestead to be paid to the
42 political subdivision that must be included in the public question under
EH 1120—LS 6559/DI 120 49
1 subsection (c) as follows:
2 STEP ONE: Determine the average assessed value of a homestead
3 located within the political subdivision.
4 STEP TWO: For purposes of determining the net assessed value
5 of the average homestead located within the political subdivision,
6 subtract:
7 (A) an amount for the homestead standard deduction under
8 IC 6-1.1-12-37 as if the homestead described in STEP ONE
9 was eligible for the deduction; and
10 (B) an amount for the supplemental homestead deduction
11 under IC 6-1.1-12-37.5 as if the homestead described in STEP
12 ONE was eligible for the deduction;
13 from the result of STEP ONE.
14 STEP THREE: Divide the result of STEP TWO by one hundred
15 (100).
16 STEP FOUR: Determine the overall average tax rate per one
17 hundred dollars ($100) of assessed valuation for the current year
18 imposed on property located within the political subdivision.
19 STEP FIVE: For purposes of determining net property tax liability
20 of the average homestead located within the political subdivision:
21 (A) multiply the result of STEP THREE by the result of STEP
22 FOUR; and
23 (B) as appropriate, apply any currently applicable county
24 property tax credit rates and the credit for excessive property
25 taxes under IC 6-1.1-20.6-7.5(a)(1).
26 STEP SIX: Determine the amount of the political subdivision's
27 part of the result determined in STEP FIVE.
28 STEP SEVEN: Determine the estimated tax rate that will be
29 imposed if the public question is approved by the voters.
30 STEP EIGHT: Multiply the result of STEP SEVEN by the result
31 of STEP THREE.
32 STEP NINE: Divide the result of STEP EIGHT by the result of
33 STEP SIX, expressed as a percentage.
34 (o) At the request of a political subdivision that proposes to impose
35 property taxes to pay debt service on bonds or lease rentals on a lease
36 for a controlled project, the county auditor of a county in which the
37 political subdivision is located shall determine the estimated average
38 percentage of property tax increase on a business property to be paid
39 to the political subdivision that must be included in the public question
40 under subsection (c) as follows:
41 STEP ONE: Determine the average assessed value of business
42 property located within the political subdivision.
EH 1120—LS 6559/DI 120 50
1 STEP TWO: Divide the result of STEP ONE by one hundred
2 (100).
3 STEP THREE: Determine the overall average tax rate per one
4 hundred dollars ($100) of assessed valuation for the current year
5 imposed on property located within the political subdivision.
6 STEP FOUR: For purposes of determining net property tax
7 liability of the average business property located within the
8 political subdivision:
9 (A) multiply the result of STEP TWO by the result of STEP
10 THREE; and
11 (B) as appropriate, apply any currently applicable county
12 property tax credit rates and the credit for excessive property
13 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
14 was three percent (3%).
15 STEP FIVE: Determine the amount of the political subdivision's
16 part of the result determined in STEP FOUR.
17 STEP SIX: Determine the estimated tax rate that will be imposed
18 if the public question is approved by the voters.
19 STEP SEVEN: Multiply the result of STEP TWO by the result of
20 STEP SIX.
21 STEP EIGHT: Divide the result of STEP SEVEN by the result of
22 STEP FIVE, expressed as a percentage.
23 (p) The county auditor shall certify the estimated average
24 percentage of property tax increase on a homestead to be paid to the
25 political subdivision determined under subsection (n), and the
26 estimated average percentage of property tax increase on a business
27 property to be paid to the political subdivision determined under
28 subsection (o), in a manner prescribed by the department of local
29 government finance, and provide the certification to the political
30 subdivision that proposes to impose property taxes. The political
31 subdivision shall provide the certification to the county election board
32 and include the estimated average percentages in the language of the
33 public question at the time the language of the public question is
34 submitted to the county election board for approval as described in
35 subsection (c).
36 SECTION 21. IC 6-1.1-20-4.5, AS ADDED BY P.L.239-2023,
37 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
38 JANUARY 1, 2024 (RETROACTIVE)]: Sec. 4.5. (a) As used in this
39 section, "maintenance emergency" refers to a response to a condition
40 that is not otherwise subject to the application of section 1.1(a)(6) of
41 this chapter and includes:
42 (1) repair of a boiler or chiller system;
EH 1120—LS 6559/DI 120 51
1 (2) roof repair;
2 (3) storm damage repair; or
3 (4) any other repair that the department determines is a
4 maintenance emergency for which waiver of the application of
5 section 3.5(a)(1)(D) of this chapter (before its expiration) is
6 warranted.
7 (b) A political subdivision may submit a request to the department
8 to waive the application of section 3.5(a)(1)(D) of this chapter (before
9 its expiration), if the proposed controlled project of the political
10 subdivision is to address a maintenance emergency with respect to a
11 building owned or leased by the political subdivision.
12 (c) The department shall require the political subdivision to submit
13 any information that the department considers necessary to determine
14 whether the condition that the political subdivision contends is a
15 maintenance emergency.
16 (d) The department shall review a request and issue a determination
17 not later than forty-five (45) days after the department receives a
18 request under this section determining whether the condition that the
19 political subdivision contends is a maintenance emergency is sufficient
20 to waive the application of section 3.5(a)(1)(D) of this chapter (before
21 its expiration). If the department determines that the condition is a
22 maintenance emergency then section 3.5(a)(1)(D) of this chapter
23 (before its expiration) is waived and does not apply to the proposed
24 controlled project.
25 (e) A waiver of the application of section 3.5(a)(1)(D) of this
26 chapter (before its expiration) in accordance with this section may not
27 be construed as a waiver of any other requirement of this chapter with
28 respect to the proposed controlled project.
29 (f) This section expires December 31, 2024. 2025.
30 SECTION 22. 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.
EH 1120—LS 6559/DI 120 52
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 23. IC 20-26-12-1, AS AMENDED BY P.L.201-2023,
16 SECTION 163, IS AMENDED TO READ AS FOLLOWS
17 [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Except as provided in
18 subsection (b) but notwithstanding any other law, each governing body
19 of a school corporation and each organizer of a charter school shall
20 purchase from a publisher, either individually or through a purchasing
21 cooperative of school corporations, as applicable, the curricular
22 materials selected by the proper local officials, and shall provide at no
23 cost the curricular materials to each student enrolled in the school
24 corporation or charter school. Curricular materials provided to a
25 student under this section remain the property of the governing body of
26 the school corporation or organizer of the charter school.
27 (b) This section does not prohibit a governing body of a school
28 corporation or an organizer of a charter school from assessing and
29 collecting a reasonable fee for lost or significantly damaged curricular
30 materials in accordance with rules established by the state board under
31 subsection (c). Fees collected under this subsection must be deposited
32 in the: separate curricular materials account established under
33 IC 20-40-22-9 for
34 (1) education fund of the school corporation; or
35 (2) education fund of the charter school, or, if the charter
36 school does not have an education fund, the same fund into
37 which state tuition support is deposited for the charter school;
38 in which the student was enrolled at the time the fee was imposed.
39 (c) The state board shall adopt rules under IC 4-22-2, including
40 emergency rules in the manner provided in IC 4-22-2-37.1, to
41 implement this section.
42 SECTION 24. IC 20-26-12-2, AS AMENDED BY P.L.201-2023,
EH 1120—LS 6559/DI 120 53
1 SECTION 164, IS AMENDED TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2024]: Sec. 2. (a) A governing body or an
3 organizer of a charter school may purchase from a publisher any
4 curricular material selected by the proper local officials. The governing
5 body or the organizer of a charter school may not rent the curricular
6 materials to students enrolled in any public school.
7 (b) A governing body may rent curricular materials to students
8 enrolled in any nonpublic school that is located within the attendance
9 unit served by the governing body. An organizer of a charter school
10 may rent curricular materials to students enrolled in any nonpublic
11 school.
12 (c) A governing body or an organizer of a charter school may
13 negotiate the rental rate for the curricular materials rented to any
14 nonpublic school under subsection (b).
15 (d) A governing body shall collect and deposit the amounts received
16 from the rental of curricular materials to a nonpublic school into the
17 curricular materials account, in accordance with IC 20-40-22-9, in
18 equal amounts for each public school of the school corporation. school
19 corporation's education fund.
20 (e) An organizer of a charter school shall deposit all money received
21 from the rental of curricular materials to a nonpublic school into the
22 charter school's curricular materials account described in
23 IC 20-40-22-9. education fund, or, if the charter school does not
24 have an education fund, the same fund into which state tuition
25 support is deposited for the charter school.
26 (f) This section does not limit other laws.
27 SECTION 25. IC 20-28-9-28, AS AMENDED BY P.L.246-2023,
28 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2024]: Sec. 28. (a) Subject to subsection (g), for each school
30 year in a state fiscal year beginning after June 30, 2023, a school
31 corporation shall expend an amount for teacher compensation that is
32 not less than an amount equal to sixty-two percent (62%) of the state
33 tuition support distributed to the school corporation during the state
34 fiscal year. For purposes of determining whether a school corporation
35 has complied with this requirement, the amount a school corporation
36 expends for teacher compensation shall include the amount the school
37 corporation expends for adjunct teachers, supplemental pay for
38 teachers, stipends, and for participating in a special education
39 cooperative or an interlocal agreement or consortium that is directly
40 attributable to the compensation of teachers employed by the
41 cooperative or interlocal agreement or consortium. Teacher benefits
42 include all benefit categories collected by the department for Form 9
EH 1120—LS 6559/DI 120 54
1 purposes.
2 (b) If a school corporation determines that the school corporation
3 cannot comply with the requirement under subsection (a) for a
4 particular school year, the school corporation shall apply for a waiver
5 from the department.
6 (c) The waiver application must include an explanation of the
7 financial challenges, with detailed data, that preclude the school
8 corporation from meeting the requirement under subsection (a) and
9 describe the cost saving measures taken by the school corporation in
10 attempting to meet the requirement in subsection (a). The waiver may
11 also include an explanation of an innovative or efficient approach in
12 delivering instruction that is responsible for the school corporation
13 being unable to meet the requirement under subsection (a).
14 (d) If, after review, the department determines that the school
15 corporation has exhausted all reasonable efforts in attempting to meet
16 the requirement in subsection (a), the department may grant the school
17 corporation a one (1) year exception from the requirement.
18 (e) A school corporation that receives a waiver under this section
19 shall work with the department to develop a plan to identify additional
20 cost saving measures and any other steps that may be taken to allow the
21 school corporation to meet the requirement under subsection (a).
22 (f) A school corporation may not receive more than three (3)
23 waivers under this section.
24 (g) For purposes of determining whether a school corporation
25 has complied with the requirement in subsection (a), distributions
26 from the curricular materials fund established by IC 20-40-22-5
27 that are deposited in a school corporation's education fund in a
28 state fiscal year are not considered to be state tuition support
29 distributed to the school corporation during the state fiscal year.
30 (g) (h) Before November 1, 2022, and before November 1 of each
31 year thereafter, the department shall submit a report to the legislative
32 council in an electronic format under IC 5-14-6 and the state budget
33 committee that contains information as to:
34 (1) the percent and amount that each school corporation expended
35 and the statewide total expended for teacher compensation;
36 (2) the percent and amount that each school corporation expended
37 and statewide total expended for teacher benefits, including
38 health, dental, life insurance, and pension benefits;
39 (3) whether the school corporation met the requirement set forth
40 in subsection (a); and
41 (4) whether the school corporation received a waiver under
42 subsection (d).
EH 1120—LS 6559/DI 120 55
1 SECTION 26. IC 20-40-2-3, AS AMENDED BY P.L.244-2017,
2 SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 3. Distributions of:
4 (1) tuition support; and
5 (2) money for curricular materials;
6 shall be received in the education fund.
7 SECTION 27. IC 20-40-2-4, AS AMENDED BY P.L.201-2023,
8 SECTION 182, IS AMENDED TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2024]: Sec. 4. Except as provided in
10 IC 36-1-8-5.1 (school corporation rainy day fund), the education fund
11 of the school corporation or, if applicable, a charter school, shall be
12 used only to pay for expenses:
13 (1) allocated to student instruction and learning under IC 20-42.5;
14 and
15 (2) related to the cost of providing curricular materials.
16 The fund may not be used to pay directly any expenses that are not
17 allocated to student instruction and learning under IC 20-42.5, are not
18 expenses related to the cost of providing curricular materials, or
19 expenses permitted to be paid from the school corporation's or charter
20 school's operations fund.
21 SECTION 28. IC 20-40-2-5.5 IS ADDED TO THE INDIANA
22 CODE AS A NEW SECTION TO READ AS FOLLOWS
23 [EFFECTIVE JULY 1, 2024]: Sec. 5.5. The department may take
24 action, including the establishment of an account code, to track
25 expenditures of money distributed for curricular materials.
26 SECTION 29. IC 20-40-2-6, AS AMENDED BY P.L.201-2023,
27 SECTION 183, IS AMENDED TO READ AS FOLLOWS
28 [EFFECTIVE JULY 1, 2024]: Sec. 6. (a) Each school corporation and,
29 if applicable, charter school, shall make every reasonable effort to
30 transfer not more than fifteen percent (15%) of the total revenue
31 deposited in the school corporation's or, if applicable, charter school's,
32 education fund from the school corporation's or, if applicable, charter
33 school's, education fund to the school corporation's or, if applicable,
34 charter school's, operations fund during a calendar year.
35 (b) Only after the transfer is authorized by the governing body in a
36 public meeting with public notice, money in the education fund may be
37 transferred to the operations fund to cover expenditures that are not
38 allocated to student instruction and learning under IC 20-42.5 or
39 related to the cost of providing curricular materials. The amount
40 transferred from the education fund to the operations fund shall be
41 reported by the school corporation or, if applicable, charter school, to
42 the department. The transfers made during the:
EH 1120—LS 6559/DI 120 56
1 (1) first six (6) months of each state fiscal year shall be reported
2 before January 31 of the following year; and
3 (2) last six (6) months of each state fiscal year shall be reported
4 before July 31 of that year.
5 (c) The report must include information as required by the
6 department and in the form required by the department.
7 (d) The department must post the report submitted under subsection
8 (b) on the department's website.
9 (e) Beginning in 2020, the department shall track for each school
10 corporation or, if applicable, charter school, transfers from the school
11 corporation's or, if applicable, charter school's, education fund to its
12 operations fund for the preceding six (6) month period. Beginning in
13 2021, before March 1 of each year, the department shall compile an
14 excessive education fund transfer list comprised of all school
15 corporations or, if applicable, charter schools, that transferred more
16 than fifteen percent (15%) of the total revenue deposited in the school
17 corporation's or, if applicable, charter school's, education fund from the
18 school corporation's or, if applicable, charter school's, education fund
19 to the school corporation's or, if applicable, charter school's, operations
20 fund during the immediately preceding calendar year. A school
21 corporation or, if applicable, charter school, that is not included on the
22 excessive education fund transfer list is considered to have met the
23 education fund transfer target percentage for the immediately preceding
24 calendar year.
25 SECTION 30. IC 20-40-2-7, AS ADDED BY P.L.244-2017,
26 SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2024]: Sec. 7. (a) On January 1, 2019, the balance, as of
28 December 31, 2018, in the school corporation's general fund shall be
29 transferred to the education fund.
30 (b) Before March 1, 2019, the governing body of a school
31 corporation may transfer to the school corporation's operations fund,
32 from the amounts transferred from the school corporation's general
33 fund under subsection (a), any amounts that are not allocated to student
34 instruction and learning under IC 20-42.5 or related to the cost of
35 providing curricular materials. A school corporation may make a
36 transfer under this section only after complying with section 6 of this
37 chapter, including the requirements for public notice and a public
38 hearing.
39 SECTION 31. IC 20-40-22-9 IS REPEALED [EFFECTIVE JULY
40 1, 2024]. Sec. 9. Each public school shall establish a separate curricular
41 materials account for the purpose of receiving distributions under this
42 chapter, amounts received from the rental of curricular materials to
EH 1120—LS 6559/DI 120 57
1 nonpublic schools, and fees collected under IC 20-26-12-1(b) for lost
2 or significantly damaged curricular materials. A public school that
3 receives a distribution of money from the curricular materials fund
4 under this chapter shall deposit the distributed amount in the public
5 school's curricular materials account. Money in the account may be
6 used only for the costs of curricular materials.
7 SECTION 32. IC 20-40-22-10 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE JULY 1, 2024]: Sec. 10. (a) A school maintained by a
10 school corporation that receives a distribution of money from the
11 curricular materials fund under this chapter shall deposit the
12 amount in the education fund of the school corporation that
13 maintains the school. A charter school that receives a distribution
14 of money from the curricular materials fund under this chapter
15 shall deposit the amount in the charter school's education fund, or,
16 if the charter school does not have an education fund, in the same
17 fund into which state tuition support is deposited for the charter
18 school.
19 (b) Money received from the curricular materials fund under
20 this chapter by a public school may be used only for the costs of
21 curricular materials and shall not be subject to collective
22 bargaining.
23 (c) The department may take action, including the establishment
24 of an account code for the funds into which distributions are
25 deposited under this section, to track expenditures of money
26 distributed for curricular materials.
27 SECTION 33. IC 36-7-14-39, AS AMENDED BY P.L.236-2023,
28 SECTION 179, IS AMENDED TO READ AS FOLLOWS
29 [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) As
30 used in this section:
31 "Allocation area" means that part of a redevelopment project area
32 to which an allocation provision of a declaratory resolution adopted
33 under section 15 of this chapter refers for purposes of distribution and
34 allocation of property taxes.
35 "Base assessed value" means, subject to subsection (j), the
36 following:
37 (1) If an allocation provision is adopted after June 30, 1995, in a
38 declaratory resolution or an amendment to a declaratory
39 resolution establishing an economic development area:
40 (A) the net assessed value of all the property as finally
41 determined for the assessment date immediately preceding the
42 effective date of the allocation provision of the declaratory
EH 1120—LS 6559/DI 120 58
1 resolution, as adjusted under subsection (h); plus
2 (B) to the extent that it is not included in clause (A), the net
3 assessed value of property that is assessed as residential
4 property under the rules of the department of local government
5 finance, within the allocation area, as finally determined for
6 the current assessment date.
7 (2) If an allocation provision is adopted after June 30, 1997, in a
8 declaratory resolution or an amendment to a declaratory
9 resolution establishing a redevelopment project area:
10 (A) the net assessed value of all the property as finally
11 determined for the assessment date immediately preceding the
12 effective date of the allocation provision of the declaratory
13 resolution, as adjusted under subsection (h); plus
14 (B) to the extent that it is not included in clause (A), the net
15 assessed value of property that is assessed as residential
16 property under the rules of the department of local government
17 finance, as finally determined for the current assessment date.
18 (3) If:
19 (A) an allocation provision adopted before June 30, 1995, in
20 a declaratory resolution or an amendment to a declaratory
21 resolution establishing a redevelopment project area expires
22 after June 30, 1997; and
23 (B) after June 30, 1997, a new allocation provision is included
24 in an amendment to the declaratory resolution;
25 the net assessed value of all the property as finally determined for
26 the assessment date immediately preceding the effective date of
27 the allocation provision adopted after June 30, 1997, as adjusted
28 under subsection (h).
29 (4) Except as provided in subdivision (5), for all other allocation
30 areas, the net assessed value of all the property as finally
31 determined for the assessment date immediately preceding the
32 effective date of the allocation provision of the declaratory
33 resolution, as adjusted under subsection (h).
34 (5) If an allocation area established in an economic development
35 area before July 1, 1995, is expanded after June 30, 1995, the
36 definition in subdivision (1) applies to the expanded part of the
37 area added after June 30, 1995.
38 (6) If an allocation area established in a redevelopment project
39 area before July 1, 1997, is expanded after June 30, 1997, the
40 definition in subdivision (2) applies to the expanded part of the
41 area added after June 30, 1997.
42 Except as provided in section 39.3 of this chapter, "property taxes"
EH 1120—LS 6559/DI 120 59
1 means taxes imposed under IC 6-1.1 on real property. However, upon
2 approval by a resolution of the redevelopment commission adopted
3 before June 1, 1987, "property taxes" also includes taxes imposed
4 under IC 6-1.1 on depreciable personal property. If a redevelopment
5 commission adopted before June 1, 1987, a resolution to include within
6 the definition of property taxes, taxes imposed under IC 6-1.1 on
7 depreciable personal property that has a useful life in excess of eight
8 (8) years, the commission may by resolution determine the percentage
9 of taxes imposed under IC 6-1.1 on all depreciable personal property
10 that will be included within the definition of property taxes. However,
11 the percentage included must not exceed twenty-five percent (25%) of
12 the taxes imposed under IC 6-1.1 on all depreciable personal property.
13 (b) A declaratory resolution adopted under section 15 of this chapter
14 on or before the allocation deadline determined under subsection (i)
15 may include a provision with respect to the allocation and distribution
16 of property taxes for the purposes and in the manner provided in this
17 section. A declaratory resolution previously adopted may include an
18 allocation provision by the amendment of that declaratory resolution on
19 or before the allocation deadline determined under subsection (i) in
20 accordance with the procedures required for its original adoption. A
21 declaratory resolution or amendment that establishes an allocation
22 provision must include a specific finding of fact, supported by
23 evidence, that the adoption of the allocation provision will result in
24 new property taxes in the area that would not have been generated but
25 for the adoption of the allocation provision. For an allocation area
26 established before July 1, 1995, the expiration date of any allocation
27 provisions for the allocation area is June 30, 2025, or the last date of
28 any obligations that are outstanding on July 1, 2015, whichever is later.
29 A declaratory resolution or an amendment that establishes an allocation
30 provision after June 30, 1995, must specify an expiration date for the
31 allocation provision. For an allocation area established before July 1,
32 2008, the expiration date may not be more than thirty (30) years after
33 the date on which the allocation provision is established. For an
34 allocation area established after June 30, 2008, the expiration date may
35 not be more than twenty-five (25) years after the date on which the first
36 obligation was incurred to pay principal and interest on bonds or lease
37 rentals on leases payable from tax increment revenues. However, with
38 respect to bonds or other obligations that were issued before July 1,
39 2008, if any of the bonds or other obligations that were scheduled when
40 issued to mature before the specified expiration date and that are
41 payable only from allocated tax proceeds with respect to the allocation
42 area remain outstanding as of the expiration date, the allocation
EH 1120—LS 6559/DI 120 60
1 provision does not expire until all of the bonds or other obligations are
2 no longer outstanding. Notwithstanding any other law, in the case of an
3 allocation area that is established after June 30, 2019, and that is
4 located in a redevelopment project area described in section
5 25.1(c)(3)(C) of this chapter, an economic development area described
6 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
7 area described in section 25.1(c)(3)(C) of this chapter, the expiration
8 date of the allocation provision may not be more than thirty-five (35)
9 years after the date on which the allocation provision is established.
10 The allocation provision may apply to all or part of the redevelopment
11 project area. The allocation provision must require that any property
12 taxes subsequently levied by or for the benefit of any public body
13 entitled to a distribution of property taxes on taxable property in the
14 allocation area be allocated and distributed as follows:
15 (1) Except as otherwise provided in this section, the proceeds of
16 the taxes attributable to the lesser of:
17 (A) the assessed value of the property for the assessment date
18 with respect to which the allocation and distribution is made;
19 or
20 (B) the base assessed value;
21 shall be allocated to and, when collected, paid into the funds of
22 the respective taxing units.
23 (2) This subdivision applies to a fire protection territory
24 established after December 31, 2022. If a unit becomes a
25 participating unit of a fire protection territory that is established
26 after a declaratory resolution is adopted under section 15 of this
27 chapter, the excess of the proceeds of the property taxes
28 attributable to an increase in the property tax rate for the
29 participating unit of a fire protection territory:
30 (A) except as otherwise provided by this subdivision, shall be
31 determined as follows:
32 STEP ONE: Divide the unit's tax rate for fire protection for
33 the year before the establishment of the fire protection
34 territory by the participating unit's tax rate as part of the fire
35 protection territory.
36 STEP TWO: Subtract the STEP ONE amount from one (1).
37 STEP THREE: Multiply the STEP TWO amount by the
38 allocated property tax attributable to the participating unit of
39 the fire protection territory; and
40 (B) to the extent not otherwise included in subdivisions (1)
41 and (3), the amount determined under STEP THREE of clause
42 (A) shall be allocated to and distributed in the form of an
EH 1120—LS 6559/DI 120 61
1 allocated property tax revenue pass back to the participating
2 unit of the fire protection territory for the assessment date with
3 respect to which the allocation is made.
4 However, if the redevelopment commission determines that it is
5 unable to meet its debt service obligations with regards to the
6 allocation area without all or part of the allocated property tax
7 revenue pass back to the participating unit of a fire protection area
8 under this subdivision, then the allocated property tax revenue
9 pass back under this subdivision shall be reduced by the amount
10 necessary for the redevelopment commission to meet its debt
11 service obligations of the allocation area. The calculation under
12 this subdivision must be made by the redevelopment commission
13 in collaboration with the county auditor and the applicable fire
14 protection territory. Any calculation determined according to
15 clause (A) must be submitted to the department of local
16 government finance in the manner prescribed by the department
17 of local government finance. The department of local government
18 finance shall verify the accuracy of each calculation.
19 (3) The excess of the proceeds of the property taxes imposed for
20 the assessment date with respect to which the allocation and
21 distribution is made that are attributable to taxes imposed after
22 being approved by the voters in a referendum or local public
23 question conducted after April 30, 2010, not otherwise included
24 in subdivisions (1) and (2) shall be allocated to and, when
25 collected, paid into the funds of the taxing unit for which the
26 referendum or local public question was conducted.
27 (4) Except as otherwise provided in this section, property tax
28 proceeds in excess of those described in subdivisions (1), (2), and
29 (3) shall be allocated to the redevelopment district and, when
30 collected, paid into an allocation fund for that allocation area that
31 may be used by the redevelopment district only to do one (1) or
32 more of the following:
33 (A) Pay the principal of and interest on any obligations
34 payable solely from allocated tax proceeds which are incurred
35 by the redevelopment district for the purpose of financing or
36 refinancing the redevelopment of that allocation area.
37 (B) Establish, augment, or restore the debt service reserve for
38 bonds payable solely or in part from allocated tax proceeds in
39 that allocation area.
40 (C) Pay the principal of and interest on bonds payable from
41 allocated tax proceeds in that allocation area and from the
42 special tax levied under section 27 of this chapter.
EH 1120—LS 6559/DI 120 62
1 (D) Pay the principal of and interest on bonds issued by the
2 unit to pay for local public improvements that are physically
3 located in or physically connected to that allocation area.
4 (E) Pay premiums on the redemption before maturity of bonds
5 payable solely or in part from allocated tax proceeds in that
6 allocation area.
7 (F) Make payments on leases payable from allocated tax
8 proceeds in that allocation area under section 25.2 of this
9 chapter.
10 (G) Reimburse the unit for expenditures made by it for local
11 public improvements (which include buildings, parking
12 facilities, and other items described in section 25.1(a) of this
13 chapter) that are physically located in or physically connected
14 to that allocation area.
15 (H) Reimburse the unit for rentals paid by it for a building or
16 parking facility that is physically located in or physically
17 connected to that allocation area under any lease entered into
18 under IC 36-1-10.
19 (I) For property taxes first due and payable before January 1,
20 2009, pay all or a part of a property tax replacement credit to
21 taxpayers in an allocation area as determined by the
22 redevelopment commission. This credit equals the amount
23 determined under the following STEPS for each taxpayer in a
24 taxing district (as defined in IC 6-1.1-1-20) that contains all or
25 part of the allocation area:
26 STEP ONE: Determine that part of the sum of the amounts
27 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
28 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
29 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
30 the taxing district.
31 STEP TWO: Divide:
32 (i) that part of each county's eligible property tax
33 replacement amount (as defined in IC 6-1.1-21-2 (before its
34 repeal)) for that year as determined under IC 6-1.1-21-4
35 (before its repeal) that is attributable to the taxing district;
36 by
37 (ii) the STEP ONE sum.
38 STEP THREE: Multiply:
39 (i) the STEP TWO quotient; times
40 (ii) the total amount of the taxpayer's taxes (as defined in
41 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
42 that have been allocated during that year to an allocation
EH 1120—LS 6559/DI 120 63
1 fund under this section.
2 If not all the taxpayers in an allocation area receive the credit
3 in full, each taxpayer in the allocation area is entitled to
4 receive the same proportion of the credit. A taxpayer may not
5 receive a credit under this section and a credit under section
6 39.5 of this chapter (before its repeal) in the same year.
7 (J) Pay expenses incurred by the redevelopment commission
8 for local public improvements that are in the allocation area or
9 serving the allocation area. Public improvements include
10 buildings, parking facilities, and other items described in
11 section 25.1(a) of this chapter.
12 (K) Reimburse public and private entities for expenses
13 incurred in training employees of industrial facilities that are
14 located:
15 (i) in the allocation area; and
16 (ii) on a parcel of real property that has been classified as
17 industrial property under the rules of the department of local
18 government finance.
19 However, the total amount of money spent for this purpose in
20 any year may not exceed the total amount of money in the
21 allocation fund that is attributable to property taxes paid by the
22 industrial facilities described in this clause. The
23 reimbursements under this clause must be made within three
24 (3) years after the date on which the investments that are the
25 basis for the increment financing are made.
26 (L) Pay the costs of carrying out an eligible efficiency project
27 (as defined in IC 36-9-41-1.5) within the unit that established
28 the redevelopment commission. However, property tax
29 proceeds may be used under this clause to pay the costs of
30 carrying out an eligible efficiency project only if those
31 property tax proceeds exceed the amount necessary to do the
32 following:
33 (i) Make, when due, any payments required under clauses
34 (A) through (K), including any payments of principal and
35 interest on bonds and other obligations payable under this
36 subdivision, any payments of premiums under this
37 subdivision on the redemption before maturity of bonds, and
38 any payments on leases payable under this subdivision.
39 (ii) Make any reimbursements required under this
40 subdivision.
41 (iii) Pay any expenses required under this subdivision.
42 (iv) Establish, augment, or restore any debt service reserve
EH 1120—LS 6559/DI 120 64
1 under this subdivision.
2 (M) Expend money and provide financial assistance as
3 authorized in section 12.2(a)(27) of this chapter.
4 (N) Expend revenues that are allocated for police and fire
5 services on both capital expenditures and operating
6 expenses as authorized in section 12.2(a)(28) of this
7 chapter.
8 The allocation fund may not be used for operating expenses of the
9 commission.
10 (5) Except as provided in subsection (g), before June 15 of each
11 year, the commission shall do the following:
12 (A) Determine the amount, if any, by which the assessed value
13 of the taxable property in the allocation area for the most
14 recent assessment date minus the base assessed value, when
15 multiplied by the estimated tax rate of the allocation area, will
16 exceed the amount of assessed value needed to produce the
17 property taxes necessary to make, when due, principal and
18 interest payments on bonds described in subdivision (4), plus
19 the amount necessary for other purposes described in
20 subdivision (4).
21 (B) Provide a written notice to the county auditor, the fiscal
22 body of the county or municipality that established the
23 department of redevelopment, and the officers who are
24 authorized to fix budgets, tax rates, and tax levies under
25 IC 6-1.1-17-5 for each of the other taxing units that is wholly
26 or partly located within the allocation area. The county auditor,
27 upon receiving the notice, shall forward this notice (in an
28 electronic format) to the department of local government
29 finance not later than June 15 of each year. The notice must:
30 (i) state the amount, if any, of excess assessed value that the
31 commission has determined may be allocated to the
32 respective taxing units in the manner prescribed in
33 subdivision (1); or
34 (ii) state that the commission has determined that there is no
35 excess assessed value that may be allocated to the respective
36 taxing units in the manner prescribed in subdivision (1).
37 The county auditor shall allocate to the respective taxing units
38 the amount, if any, of excess assessed value determined by the
39 commission. The commission may not authorize an allocation
40 of assessed value to the respective taxing units under this
41 subdivision if to do so would endanger the interests of the
42 holders of bonds described in subdivision (4) or lessors under
EH 1120—LS 6559/DI 120 65
1 section 25.3 of this chapter.
2 (C) If:
3 (i) the amount of excess assessed value determined by the
4 commission is expected to generate more than two hundred
5 percent (200%) of the amount of allocated tax proceeds
6 necessary to make, when due, principal and interest
7 payments on bonds described in subdivision (4); plus
8 (ii) the amount necessary for other purposes described in
9 subdivision (4);
10 the commission shall submit to the legislative body of the unit
11 its determination of the excess assessed value that the
12 commission proposes to allocate to the respective taxing units
13 in the manner prescribed in subdivision (1). The legislative
14 body of the unit may approve the commission's determination
15 or modify the amount of the excess assessed value that will be
16 allocated to the respective taxing units in the manner
17 prescribed in subdivision (1).
18 (6) Notwithstanding subdivision (5), in the case of an allocation
19 area that is established after June 30, 2019, and that is located in
20 a redevelopment project area described in section 25.1(c)(3)(C)
21 of this chapter, an economic development area described in
22 section 25.1(c)(3)(C) of this chapter, or an urban renewal project
23 area described in section 25.1(c)(3)(C) of this chapter, for each
24 year the allocation provision is in effect, if the amount of excess
25 assessed value determined by the commission under subdivision
26 (5)(A) is expected to generate more than two hundred percent
27 (200%) of:
28 (A) the amount of allocated tax proceeds necessary to make,
29 when due, principal and interest payments on bonds described
30 in subdivision (4) for the project; plus
31 (B) the amount necessary for other purposes described in
32 subdivision (4) for the project;
33 the amount of the excess assessed value that generates more than
34 two hundred percent (200%) of the amounts described in clauses
35 (A) and (B) shall be allocated to the respective taxing units in the
36 manner prescribed by subdivision (1).
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 allocation area that is annexed by any taxing unit after the effective
40 date of the allocation provision of the declaratory resolution is the
41 lesser of:
42 (1) the assessed value of the property for the assessment date with
EH 1120—LS 6559/DI 120 66
1 respect to which the allocation and distribution is made; or
2 (2) the base assessed value.
3 (d) Property tax proceeds allocable to the redevelopment district
4 under subsection (b)(4) may, subject to subsection (b)(5), be
5 irrevocably pledged by the redevelopment district for payment as set
6 forth in subsection (b)(4).
7 (e) Notwithstanding any other law, each assessor shall, upon
8 petition of the redevelopment commission, reassess the taxable
9 property situated upon or in, or added to, the allocation area, effective
10 on the next assessment date after the petition.
11 (f) Notwithstanding any other law, the assessed value of all taxable
12 property in the allocation area, for purposes of tax limitation, property
13 tax replacement, and formulation of the budget, tax rate, and tax levy
14 for each political subdivision in which the property is located is the
15 lesser of:
16 (1) the assessed value of the property as valued without regard to
17 this section; or
18 (2) the base assessed value.
19 (g) If any part of the allocation area is located in an enterprise zone
20 created under IC 5-28-15, the unit that designated the allocation area
21 shall create funds as specified in this subsection. A unit that has
22 obligations, bonds, or leases payable from allocated tax proceeds under
23 subsection (b)(4) shall establish an allocation fund for the purposes
24 specified in subsection (b)(4) and a special zone fund. Such a unit
25 shall, until the end of the enterprise zone phase out period, deposit each
26 year in the special zone fund any amount in the allocation fund derived
27 from property tax proceeds in excess of those described in subsection
28 (b)(1), (b)(2), and (b)(3) from property located in the enterprise zone
29 that exceeds the amount sufficient for the purposes specified in
30 subsection (b)(4) for the year. The amount sufficient for purposes
31 specified in subsection (b)(4) for the year shall be determined based on
32 the pro rata portion of such current property tax proceeds from the part
33 of the enterprise zone that is within the allocation area as compared to
34 all such current property tax proceeds derived from the allocation area.
35 A unit that has no obligations, bonds, or leases payable from allocated
36 tax proceeds under subsection (b)(4) shall establish a special zone fund
37 and deposit all the property tax proceeds in excess of those described
38 in subsection (b)(1), (b)(2), and (b)(3) in the fund derived from
39 property tax proceeds in excess of those described in subsection (b)(1),
40 (b)(2), and (b)(3) from property located in the enterprise zone. The unit
41 that creates the special zone fund shall use the fund (based on the
42 recommendations of the urban enterprise association) for programs in
EH 1120—LS 6559/DI 120 67
1 job training, job enrichment, and basic skill development that are
2 designed to benefit residents and employers in the enterprise zone or
3 other purposes specified in subsection (b)(4), except that where
4 reference is made in subsection (b)(4) to allocation area it shall refer
5 for purposes of payments from the special zone fund only to that part
6 of the allocation area that is also located in the enterprise zone. Those
7 programs shall reserve at least one-half (1/2) of their enrollment in any
8 session for residents of the enterprise zone.
9 (h) The state board of accounts and department of local government
10 finance shall make the rules and prescribe the forms and procedures
11 that they consider expedient for the implementation of this chapter.
12 After each reassessment in an area under a reassessment plan prepared
13 under IC 6-1.1-4-4.2, the department of local government finance shall
14 adjust the base assessed value one (1) time to neutralize any effect of
15 the reassessment of the real property in the area on the property tax
16 proceeds allocated to the redevelopment district under this section.
17 After each annual adjustment under IC 6-1.1-4-4.5, the department of
18 local government finance shall adjust the base assessed value one (1)
19 time to neutralize any effect of the annual adjustment on the property
20 tax proceeds allocated to the redevelopment district under this section.
21 However, the adjustments under this subsection:
22 (1) may not include the effect of phasing in assessed value due to
23 property tax abatements under IC 6-1.1-12.1;
24 (2) may not produce less property tax proceeds allocable to the
25 redevelopment district under subsection (b)(4) than would
26 otherwise have been received if the reassessment under the
27 reassessment plan or the annual adjustment had not occurred; and
28 (3) may decrease base assessed value only to the extent that
29 assessed values in the allocation area have been decreased due to
30 annual adjustments or the reassessment under the reassessment
31 plan.
32 Assessed value increases attributable to the application of an abatement
33 schedule under IC 6-1.1-12.1 may not be included in the base assessed
34 value of an allocation area. The department of local government
35 finance may prescribe procedures for county and township officials to
36 follow to assist the department in making the adjustments.
37 (i) The allocation deadline referred to in subsection (b) is
38 determined in the following manner:
39 (1) The initial allocation deadline is December 31, 2011.
40 (2) Subject to subdivision (3), the initial allocation deadline and
41 subsequent allocation deadlines are automatically extended in
42 increments of five (5) years, so that allocation deadlines
EH 1120—LS 6559/DI 120 68
1 subsequent to the initial allocation deadline fall on December 31,
2 2016, and December 31 of each fifth year thereafter.
3 (3) At least one (1) year before the date of an allocation deadline
4 determined under subdivision (2), the general assembly may enact
5 a law that:
6 (A) terminates the automatic extension of allocation deadlines
7 under subdivision (2); and
8 (B) specifically designates a particular date as the final
9 allocation deadline.
10 (j) If a redevelopment commission adopts a declaratory resolution
11 or an amendment to a declaratory resolution that contains an allocation
12 provision and the redevelopment commission makes either of the
13 filings required under section 17(e) of this chapter after the first
14 anniversary of the effective date of the allocation provision, the auditor
15 of the county in which the unit is located shall compute the base
16 assessed value for the allocation area using the assessment date
17 immediately preceding the later of:
18 (1) the date on which the documents are filed with the county
19 auditor; or
20 (2) the date on which the documents are filed with the department
21 of local government finance.
22 (k) For an allocation area established after June 30, 2024,
23 "residential property" refers to the assessed value of property that is
24 allocated to the one percent (1%) homestead land and improvement
25 categories in the county tax and billing software system, along with the
26 residential assessed value as defined for purposes of calculating the
27 rate for the local income tax property tax relief credit designated for
28 residential property under IC 6-3.6-5-6(d)(3).
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
EH 1120—LS 6559/DI 120 69
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
EH 1120—LS 6559/DI 120 70
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
EH 1120—LS 6559/DI 120 71
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
EH 1120—LS 6559/DI 120 72
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. P.L.163-2023, SECTION 1, IS AMENDED TO
18 READ AS FOLLOWS [EFFECTIVE UPON PASSAGE] SECTION 1
19 (a) As used in this SECTION, "task force" refers to the state and local
20 tax review task force established by subsection (b).
21 (b) The state and local tax review task force is established.
22 (c) The task force consists of the following members:
23 (1) The chairperson of the senate tax and fiscal policy committee.
24 (2) The ranking minority member of the senate tax and fiscal
25 policy committee.
26 (3) The chairperson of the senate appropriations committee.
27 (4) The ranking minority member of the senate appropriations
28 committee.
29 (5) The chairperson of the house ways and means committee.
30 (6) One (1) member of the house ways and means committee who
31 is a member of the majority party of the house, appointed by the
32 speaker of the house of representatives.
33 (7) The ranking minority member of the house ways and means
34 committee.
35 (8) One (1) member of the house ways and means committee who
36 is a member of the minority party of the house, appointed by the
37 minority leader of the house of representatives.
38 (9) The director of the office of management and budget.
39 (10) The director of the budget agency.
40 (11) The public finance director of the Indiana finance authority.
41 (12) One (1) member who is an economist employed at a state
42 educational institution (as defined in IC 21-7-13-32), appointed
EH 1120—LS 6559/DI 120 73
1 jointly by the president pro tempore of the senate and the speaker
2 of the house of representatives.
3 (d) If a vacancy occurs, the appointing authority that appointed the
4 member whose position is vacant shall appoint an individual to fill the
5 vacancy.
6 (e) Not later than July 1, 2023, the:
7 (1) chairperson of the legislative council shall select a member of
8 the task force to serve as the chairperson of the task force; and
9 (2) vice chairperson of the legislative council shall select a
10 member of the task force to serve as the vice chairperson of the
11 task force.
12 The members selected under subdivisions (1) and (2) shall serve as
13 chairperson and vice chairperson until May 1, 2024. Beginning May 1,
14 2024, the member initially appointed under subdivision (2) shall
15 instead serve as the chairperson of the task force, and the member
16 initially appointed under subdivision (1) shall instead serve as the vice
17 chairperson of the task force.
18 (f) The following apply to the mileage, per diem, and travel
19 expenses for members of the task force:
20 (1) Each member of the task force who is a state employee is
21 entitled to reimbursement for traveling expenses as provided
22 under IC 4-13-1-4 and other expenses actually incurred in
23 connection with the member's duties as provided in the state
24 policies and procedures established by the Indiana department of
25 administration and approved by the budget agency.
26 (2) Each member of the task force who is a member of the general
27 assembly or who is not a state employee is entitled to receive the
28 same per diem, mileage, and travel allowances paid to individuals
29 who serve as legislative and lay members, respectively, of interim
30 study committees established by the legislative council.
31 (g) The task force shall review the following:
32 (1) The state's near term and long term financial outlook and
33 overall fiscal position.
34 (2) The state's appropriation backed debt obligations.
35 (3) The funded status of pension funds managed by the state,
36 including methods to reduce the unfunded actuarial accrued
37 liability of the pre-1996 account within the Indiana state teachers'
38 retirement fund.
39 (4) The individual income tax, including methods to reduce or
40 eliminate the individual income tax.
41 (5) The corporate income tax.
42 (6) The state gross retail and use tax, including a review of the
EH 1120—LS 6559/DI 120 74
1 state gross retail tax base.
2 (7) The property tax, including methods to reduce or eliminate the
3 tax on homestead properties and reduce or eliminate the tax on
4 business personal property.
5 (8) Local option taxes, including the local income tax, food and
6 beverage taxes, and innkeeper's taxes.
7 (h) In addition, during the 2024 legislative interim the task force
8 shall study the following topics:
9 (1) Changing the qualification requirements for a civil taxing
10 unit to be eligible for a levy increase in excess of limitations
11 under IC 6-1.1-18.5-13(a)(2).
12 (2) Requiring certain projects of a political subdivision to be
13 subject to:
14 (A) the petition and remonstrance process under
15 IC 6-1.1-20 if the political subdivision's total debt service
16 tax rate is more than forty cents ($0.40) per one hundred
17 dollars ($100) of assessed value, but less than eighty cents
18 ($0.80) per one hundred dollars ($100) of assessed value;
19 or
20 (B) the referendum process under IC 6-1.1-20 if the
21 political subdivision's total debt service tax rate is at least
22 eighty cents ($0.80) per one hundred dollars ($100) of
23 assessed value.
24 (3) Capping the total amount of operating referendum tax
25 that may be levied by a school corporation.
26 (h) (i) The legislative services agency shall provide staff support to
27 the task force.
28 (i) (j) The meetings of the task force must be held in public as
29 provided under IC 5-14-1.5. However, the task force is permitted to
30 meet in executive session as determined necessary by the chairperson
31 of the task force.
32 (j) (k) The task force shall meet at least four (4) times in calendar
33 year 2023, and at least four (4) times in calendar year 2024 at the call
34 of the chairperson.
35 (k) (l) On or before December 1, 2024, the task force shall prepare
36 and submit a report to the legislative council, in an electronic format
37 under IC 5-14-6, that sets forth the topics reviewed by the task force
38 and the task force's findings and recommendations.
39 (l) (m) This SECTION expires June 30, 2025.
40 SECTION 38. An emergency is declared for this act.
EH 1120—LS 6559/DI 120 75
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.
EH 1120—LS 6559/DI 120 76
(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.
EH 1120—LS 6559/DI 120 77
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
EH 1120—LS 6559/DI 120 78
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
EH 1120—LS 6559/DI 120 79
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
EH 1120—LS 6559/DI 120 80
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
EH 1120—LS 6559/DI 120 81
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
EH 1120—LS 6559/DI 120 82
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
EH 1120—LS 6559/DI 120 83
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.
EH 1120—LS 6559/DI 120 84
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
EH 1120—LS 6559/DI 120 85
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.
EH 1120—LS 6559/DI 120 86
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)
EH 1120—LS 6559/DI 120 87
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.
EH 1120—LS 6559/DI 120 88
(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
EH 1120—LS 6559/DI 120 89
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;
EH 1120—LS 6559/DI 120 90
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
EH 1120—LS 6559/DI 120 91
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
EH 1120—LS 6559/DI 120 92
(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)
EH 1120—LS 6559/DI 120 93
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:
EH 1120—LS 6559/DI 120 94
(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
EH 1120—LS 6559/DI 120 95
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.
EH 1120—LS 6559/DI 120 96
(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
EH 1120—LS 6559/DI 120 97
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
EH 1120—LS 6559/DI 120 98
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:
EH 1120—LS 6559/DI 120 99
(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
EH 1120—LS 6559/DI 120 100
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
EH 1120—LS 6559/DI 120 101
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
EH 1120—LS 6559/DI 120 102
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
EH 1120—LS 6559/DI 120 103
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
EH 1120—LS 6559/DI 120 104
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
EH 1120—LS 6559/DI 120 105
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
EH 1120—LS 6559/DI 120 106
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
EH 1120—LS 6559/DI 120 107
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
EH 1120—LS 6559/DI 120 108
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
EH 1120—LS 6559/DI 120 109
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
EH 1120—LS 6559/DI 120 110
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
EH 1120—LS 6559/DI 120 111
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
EH 1120—LS 6559/DI 120 112
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
EH 1120—LS 6559/DI 120 113
(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.
EH 1120—LS 6559/DI 120 114
(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
EH 1120—LS 6559/DI 120 115
(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
EH 1120—LS 6559/DI 120 116
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,
EH 1120—LS 6559/DI 120 117
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.
EH 1120—LS 6559/DI 120 118
(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,
EH 1120—LS 6559/DI 120 119
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.
EH 1120—LS 6559/DI 120 120
(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
EH 1120—LS 6559/DI 120 121
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.
EH 1120—LS 6559/DI 120 122
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
EH 1120—LS 6559/DI 120 123
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
EH 1120—LS 6559/DI 120 124
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
EH 1120—LS 6559/DI 120 125
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
EH 1120—LS 6559/DI 120 126
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
EH 1120—LS 6559/DI 120 127
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
EH 1120—LS 6559/DI 120 128
[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.
EH 1120—LS 6559/DI 120 129
(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
EH 1120—LS 6559/DI 120 130
[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
EH 1120—LS 6559/DI 120 131
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
EH 1120—LS 6559/DI 120 132
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.
EH 1120—LS 6559/DI 120 133
(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
EH 1120—LS 6559/DI 120 134
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
EH 1120—LS 6559/DI 120 135
[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
EH 1120—LS 6559/DI 120 136
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.
EH 1120—LS 6559/DI 120 137
(Reference is to HB 1120 as introduced.)
THOMPSON
Committee Vote: yeas 16, nays 8.
_____
HOUSE MOTION
Mr. Speaker: I move that House Bill 1120 be amended to read as
follows:
Page 2, between lines 3 and 4, begin a new paragraph and insert:
"SECTION 2. IC 6-1.1-12-10.1, AS AMENDED BY P.L.257-2019,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 10.1. (a) Except as provided in section 17.8
of this chapter and subject to section 45 of this chapter, an individual
who desires to claim the deduction provided by section 9 of this
chapter must file a sworn statement, on forms prescribed by the
department of local government finance, with the auditor of the county
in which the real property, mobile home, or manufactured home is
located. 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 auditor on or before January 5 15 of the calendar
year in which the property taxes are first due and payable. The
statement may be filed in person or by mail. If mailed, the mailing must
be postmarked on or before the last day for filing.
(b) The statement referred to in subsection (a) shall be in affidavit
form or require verification under penalties of perjury. The statement
must be filed in duplicate if the applicant owns, or is buying under a
contract, real property, a mobile home, or a manufactured home subject
to assessment in more than one (1) county or in more than one (1)
taxing district in the same county. The statement shall contain:
(1) the source and exact amount of gross income received by the
individual and the individual's spouse during the preceding
calendar year;
(2) the description and assessed value of the real property, mobile
home, or manufactured home;
(3) the individual's full name and complete residence address;
(4) the record number and page where the contract or
memorandum of the contract is recorded if the individual is
buying the real property, mobile home, or manufactured home on
contract; and
EH 1120—LS 6559/DI 120 138
(5) any additional information which the department of local
government finance may require.
(c) In order to substantiate the deduction statement, the applicant
shall submit for inspection by the county auditor a copy of the
applicant's and a copy of the applicant's spouse's income tax returns
that were originally due in the calendar year immediately preceding the
desired calendar year in which the property taxes are first due and
payable and for which the applicant and the applicant's spouse desire
to claim the deduction. If either was not required to file an income tax
return, the applicant shall subscribe to that fact in the deduction
statement.
SECTION 3. IC 6-1.1-12-12, AS AMENDED BY P.L.257-2019,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 12. (a) Except as provided in section 17.8 of
this chapter and subject to section 45 of this chapter, a person who
desires to claim the deduction provided in section 11 of this chapter
must file an application, on forms prescribed by the department of local
government finance, with the auditor of the county in which the real
property, mobile home not assessed as real property, or manufactured
home not assessed as real property is located. To obtain the deduction
for a desired calendar year in which property taxes are first due and
payable, the application must be completed, and dated, in the
immediately preceding calendar year and filed with the county auditor
on or before January 5 15 of the calendar year in which the property
taxes are first due and payable. The application may be filed in person
or by mail. If mailed, the mailing must be postmarked on or before the
last day for filing.
(b) Proof of blindness may be supported by:
(1) the records of the division of family resources or the division
of disability and rehabilitative services; or
(2) the written statement of a physician who is licensed by this
state and skilled in the diseases of the eye or of a licensed
optometrist.
(c) The application required by this section must contain the record
number and page where the contract or memorandum of the contract
is recorded if the individual is buying the real property, mobile home,
or manufactured home on a contract that provides that the individual
is to pay property taxes on the real property, mobile home, or
manufactured home.".
Page 4, between lines 9 and 10, begin a new paragraph and insert:
"SECTION 5. IC 6-1.1-12-15, AS AMENDED BY P.L.156-2020,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
EH 1120—LS 6559/DI 120 139
JANUARY 1, 2025]: Sec. 15. (a) Except as provided in section 17.8 of
this chapter and subject to section 45 of this chapter, an individual who
desires to claim the deduction provided by section 13 or 14 of this
chapter must file a statement with the auditor of the county in which
the individual resides. 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 auditor on or before January 5 15 of the
calendar year in which the property taxes are first due and payable. The
statement may be filed in person or by mail. If mailed, the mailing must
be postmarked on or before the last day for filing. The statement shall
contain a sworn declaration that the individual is entitled to the
deduction.
(b) In addition to the statement, the individual shall submit to the
county auditor for the auditor's inspection:
(1) a pension certificate, an award of compensation, or a disability
compensation check issued by the United States Department of
Veterans Affairs if the individual claims the deduction provided
by section 13 of this chapter;
(2) a pension certificate or an award of compensation issued by
the United States Department of Veterans Affairs if the individual
claims the deduction provided by section 14 of this chapter; or
(3) the appropriate certificate of eligibility issued to the individual
by the Indiana department of veterans' affairs if the individual
claims the deduction provided by section 13 or 14 of this chapter.
(c) If the individual claiming the deduction is under guardianship,
the guardian shall file the statement required by this section. If a
deceased veteran's surviving spouse is claiming the deduction, the
surviving spouse shall provide the documentation necessary to
establish that at the time of death the deceased veteran satisfied the
requirements of section 13(a)(1) through 13(a)(4) of this chapter,
section 14(a)(1) through 14(a)(4) of this chapter, or section 14(b)(2) of
this chapter, whichever applies.
(d) If the individual claiming a deduction under section 13 or 14 of
this chapter is buying real property, a mobile home not assessed as real
property, or a manufactured home not assessed as real property under
a contract that provides that the individual is to pay property taxes for
the real estate, mobile home, or manufactured home, the statement
required by this section must contain the record number and page
where the contract or memorandum of the contract is recorded.
SECTION 6. IC 6-1.1-12-17, AS AMENDED BY P.L.257-2019,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
EH 1120—LS 6559/DI 120 140
JANUARY 1, 2025]: Sec. 17. Except as provided in section 17.8 of this
chapter and subject to section 45 of this chapter, a surviving spouse
who desires to claim the deduction provided by section 16 of this
chapter must file a statement with the auditor of the county in which
the surviving spouse resides. 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 auditor on or before January 5
15 of the calendar year in which the property taxes are first due and
payable. The statement may be filed in person or by mail. If mailed, the
mailing must be postmarked on or before the last day for filing. The
statement shall contain:
(1) a sworn statement that the surviving spouse is entitled to the
deduction; and
(2) the record number and page where the contract or
memorandum of the contract is recorded, if the individual is
buying the real property on a contract that provides that the
individual is to pay property taxes on the real property.
In addition to the statement, the surviving spouse shall submit to the
county auditor for the auditor's inspection a letter or certificate from the
United States Department of Veterans Affairs establishing the service
of the deceased spouse in the military or naval forces of the United
States before November 12, 1918.
SECTION 7. IC 6-1.1-12-27.1, AS AMENDED BY P.L.257-2019,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 27.1. Except as provided in sections 36 and
44 of this chapter and subject to section 45 of this chapter, a person
who desires to claim the deduction provided by section 26 or 26.1 of
this chapter must file a certified statement in duplicate, on forms
prescribed by the department of local government finance, with the
auditor of the county in which the real property, mobile home,
manufactured home, or solar power device is subject to assessment. To
obtain the deduction for a desired calendar year in which property taxes
are first due and payable, the person must complete, and date, the
certified statement in the immediately preceding calendar year and file
the certified statement with the county auditor on or before January 5
15 of the calendar year in which the property taxes are first due and
payable. The person must:
(1) own the real property, mobile home, or manufactured home or
own the solar power device;
(2) be buying the real property, mobile home, manufactured
home, or solar power device under contract; or
EH 1120—LS 6559/DI 120 141
(3) be leasing the real property from the real property owner and
be subject to assessment and property taxation with respect to the
solar power device;
on the date the statement is filed under this section. The statement may
be filed in person or by mail. If mailed, the mailing must be postmarked
on or before the last day for filing. On verification of the statement by
the assessor of the township in which the real property, mobile home,
manufactured home, or solar power device is subject to assessment, or
the county assessor if there is no township assessor for the township,
the county auditor shall allow the deduction.
SECTION 8. IC 6-1.1-12-30, AS AMENDED BY P.L.257-2019,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 30. Except as provided in sections 36 and 44
of this chapter and subject to section 45 of this chapter, a person who
desires to claim the deduction provided by section 29 of this chapter
must file a certified statement in duplicate, on forms prescribed by the
department of local government finance, with the auditor of the county
in which the real property or mobile home is subject to assessment. To
obtain the deduction for a desired calendar year in which property taxes
are first due and payable, the person must complete, and date, the
statement in the immediately preceding calendar year and file the
statement with the county auditor on or before January 5 15 of the
calendar year in which the property taxes are first due and payable. The
person must:
(1) own the real property, mobile home, or manufactured home;
or
(2) be buying the real property, mobile home, or manufactured
home under contract;
on the date the statement is filed under this section. On verification of
the statement by the assessor of the township in which the real property
or mobile home is subject to assessment, or the county assessor if there
is no township assessor for the township, the county auditor shall allow
the deduction.
SECTION 9. IC 6-1.1-12-35.5, AS AMENDED BY P.L.236-2023,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 35.5. (a) Except as provided in section 36 or
44 of this chapter and subject to section 45 of this chapter, a person
who desires to claim the deduction provided by section 33 or 34 of this
chapter must file a certified statement in duplicate, on forms prescribed
by the department of local government finance and proof of
certification under subsection (b) with the auditor of the county in
which the property for which the deduction is claimed is subject to
EH 1120—LS 6559/DI 120 142
assessment. To obtain the deduction for a desired calendar year in
which property taxes are first due and payable, the person must
complete, and date, the certified statement in the immediately
preceding calendar year and file the certified statement with the county
auditor on or before January 5 15 of the calendar year in which the
property taxes are first due and payable. The statement may be filed in
person or by mail. If mailed, the mailing must be postmarked on or
before the last day for filing. On verification of the statement by the
assessor of the township in which the property for which the deduction
is claimed is subject to assessment, or the county assessor if there is no
township assessor for the township, the county auditor shall allow the
deduction.
(b) The department of environmental management, upon application
by a property owner, shall determine whether a system or device
qualifies for a deduction provided by section 33 or 34 of this chapter.
If the department determines that a system or device qualifies for a
deduction, it shall certify the system or device and provide proof of the
certification to the property owner. The department shall prescribe the
form and manner of the certification process required by this
subsection.
(c) If the department of environmental management receives an
application for certification, the department shall determine whether
the system or device qualifies for a deduction. If the department fails
to make a determination under this subsection before December 31 of
the year in which the application is received, the system or device is
considered certified.
(d) A denial of a deduction claimed under section 33 or 34 of this
chapter may be appealed as provided in IC 6-1.1-15. The appeal is
limited to a review of a determination made by the township assessor
county property tax assessment board of appeals, or department of local
government finance.
(e) Notwithstanding any other law, if there is a change in ownership
of real property, or a mobile home that is not assessed as real property:
(1) that is equipped with a geothermal energy heating or cooling
device; and
(2) whose previous owner received a property tax deduction under
section 34 of this chapter for the geothermal energy heating or
cooling device prior to the change in ownership;
the new owner shall be eligible for the property tax deduction following
the change in ownership and, in subsequent taxable years, shall not be
required to obtain a determination of qualification from the department
of environmental management under subsection (b) and shall not be
EH 1120—LS 6559/DI 120 143
required to file a certified statement of qualification with the county
auditor under subsection (a) to remain eligible for the property tax
deduction.".
Page 12, between lines 22 and 23, begin a new paragraph and insert:
"SECTION 11. IC 6-1.1-12-38, AS AMENDED BY P.L.183-2014,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 38. (a) A person is entitled to a deduction
from the assessed value of the person's property in an amount equal to
the difference between:
(1) the assessed value of the person's property, including the
assessed value of the improvements made to comply with the
fertilizer storage rules adopted by the state chemist under
IC 15-16-2-44 and the pesticide storage rules adopted by the state
chemist under IC 15-16-4-52; minus
(2) the assessed value of the person's property, excluding the
assessed value of the improvements made to comply with the
fertilizer storage rules adopted by the state chemist under
IC 15-16-2-44 and the pesticide storage rules adopted by the state
chemist under IC 15-16-4-52.
(b) To obtain the deduction under this section, a person must file a
certified statement in duplicate, on forms prescribed by the department
of local government finance, with the auditor of the county in which the
property is subject to assessment. In addition to the certified statement,
the person must file a certification by the state chemist listing the
improvements that were made to comply with the fertilizer storage
rules adopted under IC 15-16-2-44 and the pesticide storage rules
adopted by the state chemist under IC 15-16-4-52. Subject to section
45 of this chapter, the statement must be completed, and dated, in the
calendar year for which the person wishes to obtain the deduction, and
the statement and certification must be and filed with the county
auditor on or before January 5 15 of the immediately succeeding
calendar year. Upon the verification of the statement and certification
by the assessor of the township in which the property is subject to
assessment, or the county assessor if there is no township assessor for
the township, the county auditor shall allow the deduction.
(c) The deduction provided by this section applies only if the
person:
(1) owns the property; or
(2) is buying the property under contract;
on the assessment date for which the deduction applies.".
Page 13, line 1, strike "that immediately succeeds the".
Page 13, line 2, strike "calendar year".
EH 1120—LS 6559/DI 120 144
Page 13, between lines 18 and 19, begin a new paragraph and insert:
"SECTION 13. IC 6-1.1-12-45, AS AMENDED BY P.L.174-2022,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 45. (a) Subject to subsections (b) and (c), a
deduction under this chapter applies for an assessment date and for the
property taxes due and payable based on the assessment for that
assessment date, regardless of whether with respect to the real property
or mobile home or manufactured home not assessed as real property:
(1) the title is conveyed one (1) or more times; or
(2) one (1) or more contracts to purchase are entered into;
after that assessment date and on or before the next succeeding
assessment date.
(b) Subsection (a) applies regardless of whether:
(1) one (1) or more grantees of title under subsection (a)(1); or
(2) one (1) or more contract purchasers under subsection (a)(2);
file a statement under this chapter to claim the deduction.
(c) A deduction applies under subsection (a) for only one (1) year.
The requirements of this chapter for filing a statement to apply for a
deduction under this chapter apply to subsequent years. A person who
fails to apply for a deduction or credit under this article by the
deadlines prescribed by this article may not apply for the deduction or
credit retroactively.
(d) If:
(1) a taxpayer wishes to claim a deduction under this chapter for
a desired calendar year in which property taxes are first due and
payable;
(2) the taxpayer files a statement under this chapter on or before
January 5 15 of the calendar year in which the property taxes are
first due and payable; and
(3) the eligibility criteria for the deduction are met;
the deduction applies for the desired calendar year in which the
property taxes are first due and payable.
(e) A person who is required to record a contract with a county
recorder in order to qualify for a deduction under this article must
record the contract, or a memorandum of the contract, before, or
concurrently with, the filing of the corresponding deduction
application.
(f) Before a county auditor terminates a deduction under this article,
the county auditor shall give to the person claiming the deduction
written notice that states the county auditor's intention to terminate the
deduction and the county auditor's reason for terminating the
deduction. The county auditor may send the notice to the taxpayer
EH 1120—LS 6559/DI 120 145
claiming the deduction by first class mail or by electronic mail. A
notice issued under this subsection is not appealable under IC 6-1.1-15.
However, after a deduction is terminated by a county auditor, the
taxpayer may appeal the county auditor's action under IC 6-1.1-15.
SECTION 14. IC 6-1.1-12.6-3, AS AMENDED BY P.L.148-2015,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 3. (a) A property owner that qualifies for the
deduction under this chapter and that desires to receive the deduction
for a calendar must complete and date a statement containing the
information required by subsection (b) in the calendar year for which
the person desires to obtain the deduction and file the statement with
the county auditor on or before January 5 15 of the immediately
succeeding calendar year. The township assessor shall verify each
statement filed under this section, and the county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals of
all deductions approved;
under this section.
(b) The statement referred to in subsection (a) must be verified
under penalties for perjury and must contain the following information:
(1) The assessed value of the real property for which the person
is claiming the deduction.
(2) The full name and complete business address of the person
claiming the deduction.
(3) The complete address and a brief description of the real
property for which the person is claiming the deduction.
(4) The name of any other county in which the person has applied
for a deduction under this chapter for that assessment date.
(5) The complete address and a brief description of any other real
property for which the person has applied for a deduction under
this chapter for that assessment date.
SECTION 15. IC 6-1.1-12.8-4, AS AMENDED BY P.L.148-2015,
SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 4. (a) A property owner that qualifies for the
deduction under this chapter and that desires to receive the deduction
for a calendar year must complete and date a statement containing the
information required by subsection (b) in the calendar year for which
the person desires to obtain the deduction and file the statement with
the county auditor on or before January 5 15 of the immediately
succeeding calendar year. The township assessor, or the county
assessor if there is no township assessor for the township, shall verify
each statement filed under this section, and the county auditor shall:
EH 1120—LS 6559/DI 120 146
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals of
all deductions approved;
under this section.
(b) The statement referred to in subsection (a) must be verified
under penalties for perjury and must contain the following information:
(1) The assessed value of the real property for which the person
is claiming the deduction.
(2) The full name and complete business address of the person
claiming the deduction.
(3) The complete address and a brief description of the real
property for which the person is claiming the deduction.
(4) The name of any other county in which the person has applied
for a deduction under this chapter for that assessment date.
(5) The complete address and a brief description of any other real
property for which the person has applied for a deduction under
this chapter for that assessment date.
(6) An affirmation by the owner that the owner is receiving not
more than three (3) deductions under this chapter, including the
deduction being applied for by the owner, either:
(A) as the owner of the residence in inventory; or
(B) as an owner that is part of an affiliated group.
(7) An affirmation that the real property has not been leased and
will not be leased for any purpose during the term of the
deduction.".
Page 13, line 27, after "IC 20-46-1" insert ":
(A) approved by the voters during a time that the school
corporation imposing the levy was designated as a
distressed political subdivision; or
(B)".
Page 13, line 31, delete "has the meaning set forth in" and insert
"refers to the school corporation's average daily membership used
to determine the state tuition support distribution under IC 20-43.
In the case of a school corporation that has entered into an
agreement with one (1) or more charter schools to participate as an
innovation network charter school under IC 20-25.7-5, the term
includes the average daily membership of any innovation network
charter school that is treated as a school operated by the school
corporation when calculating the total amount of state tuition
support to be distributed to the school corporation.".
EH 1120—LS 6559/DI 120 147
Page 13, delete line 32.
Renumber all SECTIONS consecutively.
(Reference is to HB 1120 as printed January 25, 2024.)
THOMPSON
_____
COMMITTEE REPORT
Madam President: The Senate Committee on Tax and Fiscal Policy,
to which was referred House Bill No. 1120, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Page 1, delete lines 1 through 17.
Page 2, delete lines 1 through 3.
Page 21, line 11, after "calendar" insert "year".
Page 22, delete lines 28 through 42.
Delete page 23.
Page 24, delete lines 1 through 22.
Page 25, delete lines 9 through 42, begin a new paragraph and
insert:
"SECTION 16. IC 6-1.1-18.5-2, AS AMENDED BY P.L.239-2023,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 2. (a) As used in this section, "Indiana nonfarm
personal income" means the estimate of total nonfarm personal income
for Indiana in a calendar year as computed by the federal Bureau of
Economic Analysis using any actual data for the calendar year and any
estimated data determined appropriate by the federal Bureau of
Economic Analysis.
(b) Except as provided in subsections (c) and (e), for purposes of
determining a civil taxing unit's maximum permissible ad valorem
property tax levy for an ensuing calendar year, the civil taxing unit
shall use the maximum levy growth quotient determined in the last
STEP of the following STEPS:
STEP ONE: For each of the six (6) calendar years immediately
preceding the year in which a budget is adopted under
IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
nonfarm personal income for the calendar year by the Indiana
nonfarm personal income for the calendar year immediately
preceding that calendar year, rounding to the nearest
one-thousandth (0.001).
EH 1120—LS 6559/DI 120 148
STEP TWO: Determine the sum of the STEP ONE results.
STEP THREE: Divide the STEP TWO result by six (6), rounding
to the nearest one-thousandth (0.001).
STEP FOUR: Determine the lesser of the following:
(A) The STEP THREE quotient.
(B) One and six-hundredths (1.06).
(c) Except as provided in subsection (f), a school corporation shall
use for its operations fund maximum levy calculation under
IC 20-46-8-1 the maximum levy growth quotient determined in the last
STEP of the following STEPS:
STEP ONE: Determine for each school corporation, the average
annual growth in net assessed value using the three (3) calendar
years immediately preceding the year in which a budget is
adopted under IC 6-1.1-17-5 for the ensuing calendar year.
STEP TWO: Determine the greater of:
(A) zero (0); or
(B) the STEP ONE amount minus the sum of:
(i) the maximum levy growth quotient determined under
subsection (b) minus one (1); plus
(ii) two-hundredths (0.02).
STEP THREE: Determine the lesser of:
(A) the STEP TWO amount; or
(B) four-hundredths (0.04).
STEP FOUR: Determine the sum of:
(A) the STEP THREE amount; plus
(B) the maximum levy growth quotient determined under
subsection (b).
STEP FIVE: Determine the greater of:
(A) the STEP FOUR amount; or
(B) the maximum levy growth quotient determined under
subsection (b).
(d) The budget agency shall provide the maximum levy growth
quotient for the ensuing year to civil taxing units, school corporations,
and the department of local government finance before July 1 of each
year.
(e) This subsection applies only for purposes of determining the
maximum levy growth quotient to be used in determining a civil taxing
unit's maximum permissible ad valorem property tax levy in calendar
years 2024, and 2025, and 2026. For purposes of determining the
maximum levy growth quotient in calendar years 2024, and 2025, and
2026, instead of the result determined in the last STEP in subsection
(b), the maximum levy growth quotient is determined in the last STEP
EH 1120—LS 6559/DI 120 149
of the following STEPS:
STEP ONE: Determine the result of STEP FOUR of subsection
(b), calculated as if this subsection was not in effect.
STEP TWO: Subtract one (1) from the STEP ONE result.
STEP THREE: Multiply the STEP TWO result by eight-tenths
(0.8).
STEP FOUR: Add one (1) to the STEP THREE result.
STEP FIVE: Determine the lesser of:
(A) the STEP FOUR result; or
(B) one and four-hundredths (1.04).
(f) This subsection applies only for purposes of determining the
maximum levy growth quotient to be used in determining a school
corporation's operations fund maximum levy in calendar years 2024,
and 2025, and 2026. For purposes of determining the maximum levy
growth quotient in calendar years 2024, and 2025, and 2026, instead
of the result determined in the last STEP in subsection (c), the
maximum levy growth quotient is determined in the last STEP of the
following STEPS:
STEP ONE: Determine the result of STEP FIVE of subsection (c),
calculated as if this subsection was not in effect.
STEP TWO: Subtract one (1) from the STEP ONE result.
STEP THREE: Multiply the STEP TWO result by eight-tenths
(0.8).
STEP FOUR: Add one (1) to the STEP THREE result.
STEP FIVE: Determine the lesser of:
(A) the STEP FOUR result; or
(B) one and four-hundredths (1.04).".
Delete page 26.
Page 27, delete lines 1 through 3.
Page 29, line 18, reset in roman "This subsection expires December
31,".
Page 29, line 19, after "2024." insert "2025.".
Page 31, line 33, reset in roman "This subdivision expires December
31,".
Page 31, line 33, after "2024." insert "2025.".
Page 39, line 31, reset in roman "This clause expires December 31,".
Page 39, line 31, after "2024." insert "2025.".
Page 41, line 27, delete "(a)(1)(D)." and insert "(a)(1)(D)".
Page 41, line 27, reset in roman "(before its expiration).".
Page 41, line 37, delete "(a)(1)(D)." and insert "(a)(1)(D)".
Page 41, line 37, reset in roman "(before its expiration).".
Page 42, line 26, delete "(a)(1)(D)." and insert "(a)(1)(D)".
EH 1120—LS 6559/DI 120 150
Page 42, line 26, reset in roman "(before its expiration).".
Page 42, line 32, delete "(a)(1)(D)." and insert "(a)(1)(D)".
Page 42, line 32, reset in roman "(before its expiration).".
Page 42, line 37, delete "(a)(1)(D)." and insert "(a)(1)(D)".
Page 42, line 37, reset in roman "(before its expiration).".
Page 43, line 19, delete "(a)(1)(D)." and insert "(a)(1)(D)".
Page 43, line 19, reset in roman "(before its expiration).".
Page 44, line 13, delete "(a)(1)(D)." and insert "(a)(1)(D)".
Page 44, line 13, reset in roman "(before its expiration).".
Page 44, line 28, delete "(a)(1)(D)." and insert "(a)(1)(D)".
Page 44, line 28, reset in roman "(before its expiration).".
Page 45, line 32, delete "chapter;" and insert "chapter".
Page 45, line 32, reset in roman "(before its".
Page 45, line 33, reset in roman "expiration);".
Page 53, line 11, reset in roman "(before its expiration)".
Page 53, line 14, delete "chapter," and insert "chapter".
Page 53, line 14, reset in roman "(before".
Page 53, line 15, reset in roman "its expiration),".
Page 53, line 26, delete "chapter." and insert "chapter".
Page 53, line 26, reset in roman "(before".
Page 53, line 27, reset in roman "its expiration).".
Page 53, line 29, reset in roman "(before its expiration)".
Page 53, line 32, reset in roman "(before its expiration)".
Page 53, line 35, reset in roman "(f) This section expires December
31,".
Page 53, line 35, after "2024." insert "2025.".
Page 53, delete lines 36 through 42.
Delete pages 54 through 57.
Page 58, delete lines 1 through 9.
Page 58, delete lines 37 through 42.
Delete pages 59 through 62.
Page 63, delete lines 1 through 34.
Page 68, line 41, after "materials" delete "." and insert "and shall
not be subject to collective bargaining.".
Page 69, delete lines 4 through 42.
Page 70, delete lines 1 through 3.
Page 81, delete lines 6 through 42.
Delete pages 82 through 85.
Page 86, delete lines 1 through 8.
Page 89, between lines 38 and 39, begin a new paragraph and insert:
"SECTION 20. P.L.163-2023, SECTION 1, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE] SECTION 1
EH 1120—LS 6559/DI 120 151
(a) As used in this SECTION, "task force" refers to the state and local
tax review task force established by subsection (b).
(b) The state and local tax review task force is established.
(c) The task force consists of the following members:
(1) The chairperson of the senate tax and fiscal policy committee.
(2) The ranking minority member of the senate tax and fiscal
policy committee.
(3) The chairperson of the senate appropriations committee.
(4) The ranking minority member of the senate appropriations
committee.
(5) The chairperson of the house ways and means committee.
(6) One (1) member of the house ways and means committee who
is a member of the majority party of the house, appointed by the
speaker of the house of representatives.
(7) The ranking minority member of the house ways and means
committee.
(8) One (1) member of the house ways and means committee who
is a member of the minority party of the house, appointed by the
minority leader of the house of representatives.
(9) The director of the office of management and budget.
(10) The director of the budget agency.
(11) The public finance director of the Indiana finance authority.
(12) One (1) member who is an economist employed at a state
educational institution (as defined in IC 21-7-13-32), appointed
jointly by the president pro tempore of the senate and the speaker
of the house of representatives.
(d) If a vacancy occurs, the appointing authority that appointed the
member whose position is vacant shall appoint an individual to fill the
vacancy.
(e) Not later than July 1, 2023, the:
(1) chairperson of the legislative council shall select a member of
the task force to serve as the chairperson of the task force; and
(2) vice chairperson of the legislative council shall select a
member of the task force to serve as the vice chairperson of the
task force.
The members selected under subdivisions (1) and (2) shall serve as
chairperson and vice chairperson until May 1, 2024. Beginning May 1,
2024, the member initially appointed under subdivision (2) shall
instead serve as the chairperson of the task force, and the member
initially appointed under subdivision (1) shall instead serve as the vice
chairperson of the task force.
(f) The following apply to the mileage, per diem, and travel
EH 1120—LS 6559/DI 120 152
expenses for members of the task force:
(1) Each member of the task force who is a state employee is
entitled to reimbursement for traveling expenses as provided
under IC 4-13-1-4 and other expenses actually incurred in
connection with the member's duties as provided in the state
policies and procedures established by the Indiana department of
administration and approved by the budget agency.
(2) Each member of the task force who is a member of the general
assembly or who is not a state employee is entitled to receive the
same per diem, mileage, and travel allowances paid to individuals
who serve as legislative and lay members, respectively, of interim
study committees established by the legislative council.
(g) The task force shall review the following:
(1) The state's near term and long term financial outlook and
overall fiscal position.
(2) The state's appropriation backed debt obligations.
(3) The funded status of pension funds managed by the state,
including methods to reduce the unfunded actuarial accrued
liability of the pre-1996 account within the Indiana state teachers'
retirement fund.
(4) The individual income tax, including methods to reduce or
eliminate the individual income tax.
(5) The corporate income tax.
(6) The state gross retail and use tax, including a review of the
state gross retail tax base.
(7) The property tax, including methods to reduce or eliminate the
tax on homestead properties and reduce or eliminate the tax on
business personal property.
(8) Local option taxes, including the local income tax, food and
beverage taxes, and innkeeper's taxes.
(h) In addition, during the 2024 legislative interim the task force
shall study the following topics:
(1) Changing the qualification requirements for a civil taxing
unit to be eligible for a levy increase in excess of limitations
under IC 6-1.1-18.5-13(a)(2).
(2) Requiring certain projects of a political subdivision to be
subject to:
(A) the petition and remonstrance process under
IC 6-1.1-20 if the political subdivision's total debt service
tax rate is more than forty cents ($0.40) per one hundred
dollars ($100) of assessed value, but less than eighty cents
($0.80) per one hundred dollars ($100) of assessed value;
EH 1120—LS 6559/DI 120 153
or
(B) the referendum process under IC 6-1.1-20 if the
political subdivision's total debt service tax rate is at least
eighty cents ($0.80) per one hundred dollars ($100) of
assessed value.
(3) Capping the total amount of operating referendum tax
that may be levied by a school corporation.
(h) (i) The legislative services agency shall provide staff support to
the task force.
(i) (j) The meetings of the task force must be held in public as
provided under IC 5-14-1.5. However, the task force is permitted to
meet in executive session as determined necessary by the chairperson
of the task force.
(j) (k) The task force shall meet at least four (4) times in calendar
year 2023, and at least four (4) times in calendar year 2024 at the call
of the chairperson.
(k) (l) On or before December 1, 2024, the task force shall prepare
and submit a report to the legislative council, in an electronic format
under IC 5-14-6, that sets forth the topics reviewed by the task force
and the task force's findings and recommendations.
(l) (m) This SECTION expires June 30, 2025.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
(Reference is to HB 1120 as reprinted January 30, 2024.)
HOLDMAN, Chairperson
Committee Vote: Yeas 13, Nays 0.
EH 1120—LS 6559/DI 120