Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1120
AN ACT to amend the Indiana Code concerning state and local
administration.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 5-10-1.1-3.5, AS AMENDED BY THE
TECHNICAL CORRECTIONS BILL OF THE 2024 GENERAL
ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.5. (a) This section applies to an individual
who becomes an employee of the state after June 30, 2007.
(b) Unless an employee notifies the state that the employee does not
want to enroll in the deferred compensation plan or makes an
affirmative election under subsection (h), on day thirty-one (31) of
the employee's employment:
(1) the employee is automatically enrolled in the deferred
compensation plan; and
(2) the state is authorized to begin deductions as otherwise
allowed under this chapter.
(c) The auditor of state comptroller shall provide notice to an
employee of the provisions of this chapter. The notice provided under
this subsection must:
(1) contain a statement concerning:
(A) the purposes of;
(B) procedures for notifying the state that the employee does
not want to enroll in;
(C) the tax consequences of; and
(D) the details of the state match for employee contribution to;
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the deferred compensation plan; and
(2) list the telephone number, electronic mail address, and other
contact information for the plan administrator.
(d) This subsection applies to contributions made before July 1,
2011. Notwithstanding IC 22-2-6, except as provided by subsection (h),
the state shall deduct from an employee's compensation as a
contribution to the deferred compensation plan established by the state
under this chapter an amount equal to the maximum amount of any
match provided by the state on behalf of the employee to a defined
contribution plan established under section 1.5(a) of this chapter.
(e) This subsection applies to contributions made after June 30,
2011, and before July 1, 2013. Notwithstanding IC 22-2-6 and except
as provided by subsection (h), during the first year an employee is
enrolled under subsection (b) in the deferred compensation plan, the
state shall deduct each pay period from the employee's compensation
as a contribution to the deferred compensation plan an amount equal
to the greater of the following:
(1) The maximum amount of any match provided by the state on
behalf of the employee to a defined contribution plan established
under section 1.5(a) of this chapter.
(2) One-half percent (0.5%) of the employee's base salary.
(f) This subsection applies to contributions made after June 30,
2013. Notwithstanding IC 22-2-6 and except as provided by subsection
(h), during the first year an employee is enrolled under subsection (b)
in the deferred compensation plan, the state shall deduct each pay
period from the employee's compensation as a contribution to the
deferred compensation plan an amount equal to the greater of the
following:
(1) The maximum amount of any match provided by the state on
behalf of the employee to a defined contribution plan established
under section 1.5(a) of this chapter.
(2) Two percent (2%) of the employee's base salary.
(g) This subsection applies to a year:
(1) after the first year in which an employee is enrolled in the
deferred compensation plan; and
(2) in which the employee does not affirmatively choose a
contribution amount under subsection (h).
The percentage of the employee's base salary used for the year in
subsection (e)(2) or (f)(2) to determine the employee's contribution
increases by one-half percent (0.5%) from the percentage determined
in the immediately preceding year. The maximum percentage of an
employee's base salary that may be deducted under this subsection is
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five percent (5%). The contribution increase occurs on the anniversary
date of the employee's enrollment in the deferred compensation plan.
(h) An employee may affirmatively elect to enroll in the deferred
compensation plan in the amount described in subsections (d)
through (g). An employee may contribute to the deferred
compensation plan established by the state under this chapter an
amount other than the amount described in subsections (d) through (g)
by affirmatively choosing to contribute:
(1) a higher amount;
(2) a lower amount; or
(3) zero (0).
SECTION 2. IC 5-10-5.5-22, AS AMENDED BY P.L.145-2020,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 22. (a) As used in this section, "DROP" refers to
a deferred retirement option plan established under this section.
(b) As used in this section, "DROP entry date" means the date that
a participant's election to enter a DROP becomes effective.
(c) As used in this section, "DROP frozen benefit" refers to an
annual retirement allowance computed under section 10 of this chapter
based on a participant's:
(1) average annual salary; and
(2) years of creditable service;
on the date the participant enters the DROP.
(d) As used in this section, "DROP retirement date" means the
future retirement date selected by a participant at the time the
participant elects to enter the DROP.
(e) Only a participant who is eligible to receive an unreduced annual
retirement allowance immediately upon termination of employment
may elect to enter a DROP. A participant who elects to enter the DROP
must shall do the following:
(1) Agree to the following:
(1) (A) The participant shall execute an irrevocable election to
retire on the DROP retirement date and must remain in active
service until that date.
(2) (B) While in the DROP, the participant shall continue to
make contributions under section 8 of this chapter.
(3) (C) The participant shall select a DROP retirement date not
less than twelve (12) months and not more than:
(i) thirty-six (36) months after the participant's DROP entry
date, for a participant who executes an election described
in clause (A) before July 1, 2024; or
(ii) sixty (60) months after the participant's DROP entry
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date, for a participant who executes an election
described in clause (A) after June 30, 2024.
(4) (D) The participant may not remain in the DROP after the
date the participant reaches the mandatory retirement age
under section 9 of this chapter.
(5) (E) The participant may make an election to enter the
DROP only once in the participant's lifetime.
(2) Notify the participant's employer of the DROP election
within thirty (30) days of the election.
(f) Notwithstanding subsection (e), a participant that entered the
DROP before July 1, 2024, and that has not exited the DROP may
elect to extend the participant's DROP retirement date up to sixty
(60) months after the participant's DROP entry date.
(g) A participant that makes the election described in subsection
(f) shall notify the participant's employer within thirty (30) days of
the election.
(f) (h) Contributions or payments provided by the general assembly
under section 4(b)(4) of this chapter continue for a participant while
the participant is in the DROP.
(g) (i) A participant shall exit the DROP on the earliest of the
following:
(1) The participant's DROP retirement date.
(2) Either:
(A) thirty-six (36) months after the participant's DROP entry
date, if the participant:
(i) executes an election described in subsection (e) before
July 1, 2024; and
(ii) does not execute an extension described in subsection
(f); or
(B) sixty (60) months after the participant's DROP entry
date, if the participant:
(i) executes an election described in subsection (e) after
June 30, 2024; or
(ii) executes an extension described in subsection (f).
(3) The participant's mandatory retirement age.
(4) The date the participant retires because of a disability as
provided by subsection (k). (m).
(h) (j) A participant who retires on the participant's DROP
retirement date or on the date the participant retires because of a
disability as provided by subsection (k) (m) may elect to receive an
annual retirement allowance:
(1) computed under section 10 of this chapter as if the participant
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had never entered the DROP; or
(2) consisting of:
(A) the DROP frozen benefit; plus
(B) an additional amount, paid as the participant elects under
subsection (i), (k), determined by multiplying:
(i) the DROP frozen benefit; by
(ii) the number of months the participant was in the DROP.
(i) (k) The participant shall elect, at the participant's retirement, to
receive the additional amount calculated under subsection (h)(2)(B)
(j)(2)(B) in one (1) of the following ways:
(1) A lump sum paid on:
(A) the participant's DROP retirement date; or
(B) the date the participant retires because of a disability as
provided by subsection (k). (m).
(2) Three (3) equal annual payments:
(A) commencing on:
(i) the participant's DROP retirement date; or
(ii) the date the participant retires because of a disability as
provided by subsection (k); (m); and
(B) thereafter paid on:
(i) the anniversary of the participant's DROP retirement
date; or
(ii) the date the participant retires because of a disability as
provided by subsection (k). (m).
(j) (l) A cost of living increase determined under section 21(c) of
this chapter does not apply to the additional amount calculated under
subsection (h)(2)(B) (j)(2)(B) at the participant's DROP retirement date
or the date the participant retires because of a disability as provided by
subsection (k). (m). No cost of living increase is applied to a DROP
frozen benefit while the participant is in the DROP. After the
participant's DROP retirement date or the date the participant retires
because of a disability as provided by subsection (k), (m), cost of living
increases determined under section 21(c) of this chapter apply to the
participant's annual retirement allowance computed under this section.
(k) (m) If a participant becomes disabled, in the line of duty or other
than in the line of duty while in the DROP, the participant's annual
retirement allowance is computed as follows:
(1) If the participant retires because of a disability less than
twelve (12) months after the date the participant enters the DROP,
the participant's annual retirement allowance is calculated as if
the participant had never entered the DROP.
(2) If the participant retires because of a disability at least twelve
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(12) months after the date the participant enters the DROP, the
participant's annual retirement allowance is calculated under this
section, and the participant's retirement date is the date the
member retires because of a disability rather than the participant's
DROP retirement date.
(l) (n) If, before payment of the participant's annual retirement
allowance begins, the participant dies in the line of duty or other than
in the line of duty, death benefits are payable to the participant's
surviving spouse. If there is no surviving spouse, the death benefits
must be divided equally among the participant's surviving children. If
there are no surviving children, the death benefits are paid to the
participant's parents. If there are no surviving parents, the death
benefits are paid to the participant's estate. The death benefits are
determined as follows:
(1) If the participant dies less than twelve (12) months after the
date the participant enters the DROP, the death benefits are
calculated as if the participant had never entered the DROP.
(2) If the participant dies at least twelve (12) months after the date
the participant enters the DROP, the death benefits consist of both
of the following:
(A) At the election of the survivor or survivors to whom the
benefit is payable, the benefit calculated under subsection
(h)(2)(B) (j)(2)(B) is paid in either:
(i) a lump sum; or
(ii) three (3) equal annual payments, the first as soon as
practicable after the date of the participant's death, the
second on the first anniversary of the participant's death, and
the third on the second anniversary of the participant's death.
(B) A benefit is paid on the DROP frozen benefit under the
terms of the retirement plan created by this chapter.
(m) (o) Except as provided under subsections (k) (m) and (l), (n),
the annual retirement allowance for a participant who exits the DROP
for any reason other than retirement on the participant's DROP
retirement date is calculated as if the participant had never entered the
DROP.
SECTION 3. IC 5-11-20-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 1.5. (a) As used in this chapter, "delinquent
political subdivision" means a political subdivision offering an
employee retirement plan described in section 3(b) of this chapter
that:
(1) received less than the actuarially determined contribution
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for at least three (3) out of the last five (5) immediately
preceding fiscal years, as determined by the system or its
agent; or
(2) was less than fifty percent (50%) funded at any time
during the immediately preceding fiscal year, as determined
by the system or its agent.
(b) As used in this chapter, "delinquent political subdivision"
does not include a political subdivision offering an employee
retirement plan described in section 3(b) of this chapter that:
(1) satisfies subsection (a)(1) or (a)(2) but is subject to an
existing court order requiring the political subdivision to fund
the plan benefits; or
(2) satisfies subsection (a)(1) or (a)(2) but was established
some time during the last five (5) immediately preceding fiscal
years.
(c) A police benefit fund qualifies as a delinquent political
subdivision if it satisfies subsection (a)(1). A police benefit fund
does not qualify as a delinquent political subdivision if it satisfies
subsection (a)(2) but does not satisfy subsection (a)(1).
SECTION 4. IC 5-11-20-2.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.5. As used in this chapter, "system"
refers to the Indiana public retirement system established by
IC 5-10.5-2-1.
SECTION 5. IC 5-11-20-6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) On or before June 15 of each year,
the system shall send a delinquency notice to a delinquent political
subdivision. The delinquency notice must inform the delinquent
political subdivision that:
(1) an employee retirement plan offered by the delinquent
political subdivision:
(A) received less than ninety-five percent (95%) of the
actuarially determined contribution for the immediately
preceding fiscal year, as determined by the system or its
agent; or
(B) was less than fifty percent (50%) funded at any time
during the immediately preceding fiscal year, as
determined by the system or its agent; and
(2) the delinquent political subdivision must take the steps
described in subsection (b).
(b) After receiving the notice described in subsection (a), a
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political subdivision shall make a presentation that includes a
remediation plan to the interim study committee on pension
management oversight (established by IC 2-5-1.3-4) regarding the
delinquent employee retirement plan described in subsection (a).
SECTION 6. 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
(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
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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 7. 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.
SECTION 8. IC 6-1.1-12-14, AS AMENDED BY P.L.174-2022,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2024 (RETROACTIVE)]: Sec. 14. (a) Except as
provided in subsection (c) and except as provided in section 40.5 of
this chapter, an individual may have the sum of fourteen thousand
dollars ($14,000) deducted from the assessed value of the real property,
mobile home not assessed as real property, or manufactured home not
assessed as real property that the individual owns (or the real property,
mobile home not assessed as real property, or manufactured home not
assessed as real property that the individual is buying under a contract
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that provides that the individual is to pay property taxes on the real
property, mobile home, or manufactured home if the contract or a
memorandum of the contract is recorded in the county recorder's office)
if:
(1) the individual served in the military or naval forces of the
United States for at least ninety (90) days;
(2) the individual received an honorable discharge;
(3) the individual either:
(A) has a total disability; or
(B) is at least sixty-two (62) years old and has a disability of at
least ten percent (10%);
(4) the individual's disability is evidenced by:
(A) a pension certificate or an award of compensation issued
by the United States Department of Veterans Affairs; or
(B) a certificate of eligibility issued to the individual by the
Indiana department of veterans' affairs after the Indiana
department of veterans' affairs has determined that the
individual's disability qualifies the individual to receive a
deduction under this section; and
(5) the individual:
(A) owns the real property, mobile home, or manufactured
home; or
(B) is buying the real property, mobile home, or manufactured
home under contract;
on the date the statement required by section 15 of this chapter is
filed.
(b) Except as provided in subsections (c) and (d), the surviving
spouse of an individual may receive the deduction provided by this
section if:
(1) the individual satisfied the requirements of subsection (a)(1)
through (a)(4) at the time of death; or
(2) the individual:
(A) was killed in action;
(B) died while serving on active duty in the military or naval
forces of the United States; or
(C) died while performing inactive duty training in the military
or naval forces of the United States; and
the surviving spouse satisfies the requirement of subsection (a)(5) at
the time the deduction statement is filed. The surviving spouse is
entitled to the deduction regardless of whether the property for which
the deduction is claimed was owned by the deceased veteran or the
surviving spouse before the deceased veteran's death.
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(c) Except as provided in subsection (f), no one is entitled to the
deduction provided by this section if the assessed value of the
individual's Indiana real property, Indiana mobile home not assessed as
real property, and Indiana manufactured home not assessed as real
property, as shown by the tax duplicate, exceeds the assessed value
limit specified in subsection (d).
(d) Except as provided in subsection (f), for the:
(1) January 1, 2017, January 1, 2018, and January 1, 2019,
assessment dates, the assessed value limit for purposes of
subsection (c) is one hundred seventy-five thousand dollars
($175,000); and
(2) January 1, 2020, January 1, 2021, January 1, 2022, and
January 1, 2023, assessment dates, assessment date and for each
assessment date thereafter, the assessed value limit for purposes
of subsection (c) is two hundred thousand dollars ($200,000); and
(3) January 1, 2024, assessment date and for each assessment
date thereafter, the assessed value limit for purposes of
subsection (c) is two hundred forty thousand dollars
($240,000).
(e) An individual 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 against that real property, mobile home, or
manufactured home.
(f) For purposes of determining the assessed value of the real
property, mobile home, or manufactured home under subsection (d) for
an individual who has received a deduction under this section in a
previous year, increases in assessed value that occur after the later of:
(1) December 31, 2019; or
(2) the first year that the individual has received the deduction;
are not considered unless the increase in assessed value is attributable
to substantial renovation or new improvements. Where there is an
increase in assessed value for purposes of the deduction under this
section, the assessor shall provide a report to the county auditor
describing the substantial renovation or new improvements, if any, that
were made to the property prior to the increase in assessed value.
SECTION 9. IC 6-1.1-12-15, AS AMENDED BY P.L.156-2020,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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
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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 10. IC 6-1.1-12-17, AS AMENDED BY P.L.257-2019,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
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
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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 11. 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
(3) be leasing the real property from the real property owner and
be subject to assessment and property taxation with respect to the
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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 12. 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 13. 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
assessment. To obtain the deduction for a desired calendar year in
which property taxes are first due and payable, the person must
HEA 1120 — CC 1 15
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
required to file a certified statement of qualification with the county
auditor under subsection (a) to remain eligible for the property tax
HEA 1120 — CC 1 16
deduction.
SECTION 14. 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.
(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
HEA 1120 — CC 1 17
a deck, patio, gazebo, or pool.
Except as provided in subsection (r), 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.
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
HEA 1120 — CC 1 18
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
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
HEA 1120 — CC 1 19
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
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
HEA 1120 — CC 1 20
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
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.
HEA 1120 — CC 1 21
(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
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
HEA 1120 — CC 1 22
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
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
HEA 1120 — CC 1 23
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
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
HEA 1120 — CC 1 24
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.
(r) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a
dwelling and includes up to one (1) acre of land immediately
surrounding that dwelling, and any of the following
improvements:
(A) Any number of decks, patios, gazebos, or pools.
(B) One (1) additional building that is not part of the
dwelling if the building is predominately used for a
residential purpose and is not used as an investment
property or as a rental property.
(C) One (1) additional residential yard structure other
than a deck, patio, gazebo, or pool.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction
under this section on March 1, 2009.
SECTION 15. 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
HEA 1120 — CC 1 25
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.
SECTION 16. 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
HEA 1120 — CC 1 26
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 17. 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
HEA 1120 — CC 1 27
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
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 18. 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 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 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.
HEA 1120 — CC 1 28
(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 19. 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:
(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
HEA 1120 — CC 1 29
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.
SECTION 20. 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
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 2025;
(2) does not apply to an operating referendum tax levy under
IC 20-46-1:
(A) approved by the voters during a time that the school
corporation imposing the levy was designated as a
distressed political subdivision; or
(B) approved by the voters after December 31, 2022, and
before January 1, 2024, 2025, that is imposed by a school
corporation for taxes first due and payable in 2024 or 2025;
and
(3) does not apply to any other tax year.
(b) As used in this section, "ADM" 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.
(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
HEA 1120 — CC 1 30
(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, 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
SEVEN 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.
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: Multiply the STEP THREE amount by one
and five-tenths (1.5).
STEP FIVE: Add the STEP FOUR result and one and
six-hundredths (1.06).
STEP SIX: Determine the greater of the STEP FIVE result
or one and six-hundredths (1.06).
STEP SEVEN: Determine the lesser of the STEP SIX
result or one and twelve-hundredths (1.12).
(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.
HEA 1120 — CC 1 31
(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.
SECTION 21. IC 6-1.1-18.5-1, AS AMENDED BY P.L.236-2023,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 1. As used in this chapter:
"Ad valorem property tax levy for an ensuing calendar year" means
the total property taxes imposed by a civil taxing unit for current
property taxes collectible in that ensuing calendar year. However, if a
township elects to establish both a township firefighting levy and a
township emergency services levy under IC 36-8-13-4(b)(2),
IC 36-8-13-4(c)(2), the township firefighting levy and township
emergency services levy shall be combined and considered as a single
levy for purposes of this chapter.
"Civil taxing unit" means any taxing unit except a school
corporation.
"Maximum permissible ad valorem property tax levy for the
preceding calendar year" means, for purposes of determining a
maximum permissible ad valorem property tax levy under section 3 of
this chapter for property taxes imposed for an assessment date after
January 15, 2011, the civil taxing unit's maximum permissible ad
valorem property tax levy for the calendar year immediately preceding
the ensuing calendar year, as that levy was determined under section 3
of this chapter (regardless of whether the taxing unit imposed the entire
amount of the maximum permissible ad valorem property tax levy in
the immediately preceding year).
"Taxable property" means all tangible property that is subject to the
tax imposed by this article and is not exempt from the tax under
IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
chapter, the term "taxable property" is further defined in section 6 of
this chapter.
SECTION 22. 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:
HEA 1120 — CC 1 32
(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
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
HEA 1120 — CC 1 33
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;
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
HEA 1120 — CC 1 34
(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. 2025. 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 23. 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
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
HEA 1120 — CC 1 35
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
(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
HEA 1120 — CC 1 36
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) A controlled project funded by debt service if the scope of
the project changes from the purpose of the project initially
advertised to taxpayers as determined under section 4.2(c) of
this chapter.
(4) (5) 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)
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. 2025. 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 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
HEA 1120 — CC 1 37
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:
(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
HEA 1120 — CC 1 38
(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
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
HEA 1120 — CC 1 39
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) 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
HEA 1120 — CC 1 40
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
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.
HEA 1120 — CC 1 41
(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
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
HEA 1120 — CC 1 42
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 24. 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:
(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
HEA 1120 — CC 1 43
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
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
HEA 1120 — CC 1 44
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) A controlled project funded by debt service if the scope
of the project changes from the purpose of the project
initially advertised to taxpayers as determined under
section 4.3(c) of this chapter.
(D) (E) 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 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.
2025. 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
HEA 1120 — CC 1 45
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
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:
HEA 1120 — CC 1 46
(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) (a)(1)(E) (before its expiration).
After notice is given, a petition requesting the application of the
local 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) (a)(1)(E) (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
HEA 1120 — CC 1 47
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) (a)(1)(E) (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 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) (a)(1)(E) (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) (a)(1)(E) (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
HEA 1120 — CC 1 48
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) (a)(1)(E) (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 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
HEA 1120 — CC 1 49
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) (a)(1)(E) (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) (a)(1)(E) (before its expiration).
If a 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
HEA 1120 — CC 1 50
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 25. 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
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) 3.5(a)(1)(E) 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
HEA 1120 — CC 1 51
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
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
HEA 1120 — CC 1 52
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
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
HEA 1120 — CC 1 53
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
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
HEA 1120 — CC 1 54
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
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
HEA 1120 — CC 1 55
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
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
HEA 1120 — CC 1 56
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
(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:
HEA 1120 — CC 1 57
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.
(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 26. IC 6-1.1-20-4.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4.2. (a) This section applies
only if, with respect to a particular controlled project that fulfilled
the petition and remonstrance process under sections 3.1 and 3.2
HEA 1120 — CC 1 58
of this chapter, the political subdivision subsequently changes the
scope of the controlled project beyond that initially presented.
(b) Notwithstanding any other provision in this chapter, if at
least ten (10) persons who are either owners of property within the
political subdivision or registered voters residing within the
political subdivision file a petition with the proper officers of the
political subdivision contending that the scope of a controlled
project has changed from how it was initially presented, the proper
officers of the political subdivision shall hold a public hearing to
determine whether any change in scope is significant enough to
warrant a new petition and remonstrance process. A petition under
this subsection must be filed not later than one (1) year after the
controlled project received final approval.
(c) Notwithstanding any other provision in this chapter, if it is
determined at the hearing described in subsection (b) that the
political subdivision has subsequently changed the scope of a
controlled project beyond that initially presented as described in
subsection (a), the political subdivision must complete the following
procedures under this section:
(1) The proper officers of the political subdivision shall give
notice of the applicability of the petition and remonstrance
process 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 section 3.1(b)(1) of this chapter.
A notice under this subdivision must include a statement that
any owners of property within the political subdivision or
registered voters residing within the political subdivision who
want to petition in favor of or remonstrate against the
proposed debt service or lease payments must file petitions
and remonstrances in compliance with subdivisions (2)
through (4) not earlier than thirty (30) days or later than sixty
(60) days after publication in accordance with IC 5-3-1.
(2) Not earlier than thirty (30) days or later than sixty (60)
days after the notice under subdivision (1) is given:
(A) petitions (described in subdivision (3)) in favor of the
bonds or lease; and
(B) remonstrances (described in subdivision (3)) against
the bonds or lease;
may be filed by an owner or owners of property within the
political subdivision or a registered voter residing within the
political subdivision. Each signature on a petition must be
HEA 1120 — CC 1 59
dated, and the date of signature may not be before the date on
which the petition and remonstrance forms may be issued
under subdivision (3). A petition described in clause (A) or a
remonstrance described in clause (B) must be verified in
compliance with subdivision (4) before the petition or
remonstrance is filed with the county voter registration office
under subdivision (4).
(3) 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 and remonstrance
forms to be used solely in the petition and remonstrance
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
or remonstrance 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;
(D) govern the closing date for the petition and
remonstrance period; and
(E) apply to the carrier under section 10 of this chapter.
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 or remonstrance must indicate whether the
person is signing the petition or remonstrance as a registered
voter within the political subdivision or is signing the petition
or remonstrance as the owner of property within the political
subdivision. A person who signs a petition or remonstrance as
a registered voter must indicate the address at which the
person is registered to vote. A person who signs a petition or
remonstrance as an owner of property must indicate the
address of the property owned by the person in the political
HEA 1120 — CC 1 60
subdivision. The county voter registration office may not issue
a petition or remonstrance form earlier than twenty-nine (29)
days after the notice is given under subdivision (1). The
county voter registration office shall certify the date of
issuance on each petition or remonstrance form that is
distributed under this subdivision.
(4) The petitions and remonstrances must be verified in the
manner prescribed by the state board of accounts and filed
with the county voter registration office within the sixty (60)
day period described in subdivision (2) in the manner set forth
in section 3.1 of this chapter relating to requests for a petition
and remonstrance process.
(5) The county voter registration office shall determine
whether each person who signed the petition or remonstrance
is a registered voter. The county voter registration office shall
not more than fifteen (15) business days after receiving a
petition or remonstrance forward a copy of the petition or
remonstrance to the county auditor. Not more than ten (10)
business days after receiving the copy of the petition or
remonstrance, the county auditor shall provide to the county
voter registration office a statement verifying:
(A) whether a person who signed the petition or
remonstrance 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 or
remonstrance as an owner of property within the political
subdivision does in fact own property within the political
subdivision.
(6) The county voter registration office shall not more than
ten (10) business days after receiving the statement from the
county auditor under subdivision (5) make the final
determination of:
(A) the number of registered voters in the political
subdivision that signed a petition and, based on the
statement provided by the county auditor, the number of
owners of property within the political subdivision that
signed a petition; and
(B) the number of registered voters in the political
subdivision that signed a remonstrance and, based on the
statement provided by the county auditor, the number of
HEA 1120 — CC 1 61
owners of property within the political subdivision that
signed a remonstrance.
Whenever the name of an individual who signs a petition or
remonstrance 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
individual is entitled to sign the petition or remonstrance
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
or remonstrance 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 or remonstrance 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 or
remonstrance, 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.
(7) The county voter registration office must file a certificate
and the petition or remonstrance with the body of the political
subdivision within thirty-five (35) business days of the filing
of a petition or remonstrance under subdivision (4),
whichever applies, containing ten thousand (10,000)
signatures or less. The county voter registration office may
take an additional five (5) days to review and certify the
petition or remonstrance for each additional five thousand
(5,000) signatures up to a maximum of sixty (60) days. The
HEA 1120 — CC 1 62
certificate must state the number of petitioners and
remonstrators that are owners of property within the political
subdivision and the number of petitioners who are registered
voters residing within the political subdivision.
(8) If a greater number of persons who are either owners of
property within the political subdivision or registered voters
residing within the political subdivision sign a remonstrance
than the number that signed a petition, the political
subdivision may not proceed with the changed scope of the
controlled project. In that case, the political subdivision may
either:
(A) proceed with the controlled project as it was initially
presented; or
(B) terminate the controlled project as it was initially
presented and initiate procedures for the controlled
project that reflects the change in scope.
Withdrawal of a petition carries the same consequences as a
defeat of the petition.
(9) After a political subdivision has gone through the petition
and remonstrance process set forth in this section, the
political subdivision is not required to follow any other
remonstrance or objection procedures under any other law
(including section 5 of this chapter) relating to bonds or leases
designed to protect owners of property within the political
subdivision from the imposition of property taxes to pay debt
service or lease rentals. However, the political subdivision
must still receive the approval of the department of local
government finance if required by:
(A) IC 6-1.1-18.5-8; or
(B) IC 20-46-7-8, IC 20-46-7-9, and IC 20-46-7-10.
SECTION 27. IC 6-1.1-20-4.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4.3. (a) This section applies
only if, with respect to a particular controlled project that fulfilled
the referendum process under sections 3.5 and 3.6 of this chapter,
the political subdivision subsequently changes the scope of the
controlled project beyond that initially presented.
(b) Notwithstanding any other provision in this chapter, if at
least ten (10) persons who are either owners of property within the
political subdivision or registered voters residing within the
political subdivision file a petition with the proper officers of the
political subdivision contending that the scope of a controlled
HEA 1120 — CC 1 63
project has changed from how it was initially presented, the proper
officers of the political subdivision shall hold a public hearing to
determine whether any change in scope is significant enough to
warrant a new referendum process. A petition under this
subsection must be filed not later than one (1) year after the
controlled project received final approval.
(c) Notwithstanding any other provision in this chapter, if it is
determined at the hearing described in subsection (b) that the
political subdivision has subsequently changed the scope of a
controlled project beyond that initially presented as described in
subsection (a), the following procedures apply:
(1) A petition requesting the application of the local public
question process under this section may be filed using, and in
compliance with, the provisions that initially applied to the
particular controlled project under section 3.5 of this chapter.
For purposes of this subdivision, the relevant provisions in
section 3.5 of this chapter shall be construed in a manner
consistent with this section.
(2) If a sufficient petition requesting the application of the
local public question process for purposes of this section has
been filed under subdivision (1), the following question shall
be submitted to the eligible voters at the election conducted
under this section:
"On ______ (insert date) the voters approved a public
question to increase property taxes paid to the _______ (insert
the type of taxing unit) by homeowners and businesses. The
political subdivision has determined that the scope of the
project for which the pubic question was placed on the ballot
has changed beyond that initially presented. To fund the
increase in the scope of the project, the average property tax
paid to the _______ (insert the type of taxing unit) per year on
a residence is estimated to increase by ______% (insert the
estimated average percentage of property tax increase paid to
the political subdivision on a residence within the political
subdivision) 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). Shall ________ (insert the name of the political
subdivision) increase property taxes paid to the _______
(insert the type of taxing unit) by homeowners and businesses
HEA 1120 — CC 1 64
to fund the increase in the scope of the project previously
approved? 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) 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).".
(3) The public question must appear on the ballot in the form
approved by the county election board. If the political
subdivision in which the particular controlled project 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
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 to the
department of local government finance for review.
(4) 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 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
HEA 1120 — CC 1 65
approval or recommendation of any additional modifications.
The public question may not be certified by the county
auditor under subdivision (5) unless the department of local
government finance has first certified the department's final
approval of the ballot language for the public question.
(5) 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:
(A) 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
(B) August 1 if the public question is to be placed on the
general or municipal election ballot.
(6) 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.
(7) The circuit court clerk shall certify the results of the public
question to the following:
(A) The county auditor of each county in which the
political subdivision is located.
(B) The department of local government finance.
(8) IC 3, to the extent not inconsistent with this section,
HEA 1120 — CC 1 66
applies to an election held under this section.
(9) If a majority of the eligible voters voting on the public
question vote in opposition to the public question, or if a
petition is not filed under subdivision (1), the political
subdivision may not proceed with the changed scope of the
controlled project. In that case, the political subdivision may
either:
(A) proceed with the controlled project as it was initially
presented; or
(B) terminate the controlled project as it was initially
presented and initiate procedures for the controlled
project that reflects the change in scope.
(10) If a majority of the eligible voters voting on the public
question vote in favor of the public question, the political
subdivision may impose property taxes to fund the increase in
the scope of the controlled project previously approved.
SECTION 28. 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) 3.5(a)(1)(E) 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) 3.5(a)(1)(E) 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
HEA 1120 — CC 1 67
to waive the application of section 3.5(a)(1)(D) 3.5(a)(1)(E) of this
chapter (before its expiration). If the department determines that the
condition is a maintenance emergency then section 3.5(a)(1)(D)
3.5(a)(1)(E) of this chapter (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) 3.5(a)(1)(E)
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. 2025.
SECTION 29. 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.
(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 30. IC 6-3.6-7-28 AS ADDED BY HEA 1121-2024,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 28. (a) This section applies to Grant County
and only if the county local income tax council repeals provisions of
its local income tax ordinance providing that under IC 6-3.6-10-2(7)
HEA 1120 — CC 1 68
one-hundredth of one percent (0.01%) of the county's special purpose
rate revenue is used to fund the Grant County Economic Growth
Council, Inc.
(b) The county local income tax council may, by ordinance,
determine that additional local income tax revenue is needed in the
county to do the following:
(1) Finance, construct, acquire, improve, renovate, and equip the
county jail, including costs related to the demolition of existing
buildings, the acquisition of land, and any other reasonably
related costs.
(2) Repay bonds issued or leases entered into for the purposes
described in subdivision (1)
(c) If the county local income tax council makes the determination
set forth in subsection (b), the county local income tax council may
impose a tax on the adjusted gross income of local taxpayers at a tax
rate that does not exceed the lesser of the following:
(1) Five-tenths percent (0.5%).
(2) The rate necessary to carry out the purposes described in this
section.
The tax rate may not be greater than the rate necessary to pay for the
purposes described in subsection (b).
(d) The tax rate used to pay for the purposes described in subsection
(b)(1) and (b)(2) may be imposed only until the latest of the following
dates:
(1) The date on which the financing, construction, acquisition,
improvement, renovation, and equipping of the facilities as
described in subsection (b) are completed.
(2) The date on which the last of any bonds issued (including
refunding bonds) or leases entered into to finance the
construction, acquisition, improvement, renovation, and
equipping of the facilities described in subsection (b) are fully
paid.
(3) The date on which an ordinance adopted under subsection (c)
is rescinded.
(e) The tax rate under this section may be imposed beginning in the
year following the year the ordinance is adopted and until the date on
which the ordinance adopted under this section is rescinded.
(f) The term of a bond issued (including any refunding bond) or a
lease entered into under subsection (b) may not exceed twenty-five (25)
years.
(g) The county treasurer shall establish a county jail revenue fund
to be used only for the purposes described in this section. Local income
HEA 1120 — CC 1 69
tax revenues derived from the tax rate imposed under this section shall
be deposited in the county jail revenue fund.
(h) Local income tax revenues derived from the tax rate imposed
under this section:
(1) may be used only for the purposes described in this section;
(2) may not be considered by the department of local government
finance in determining the county's maximum permissible
property tax levy limit under IC 6-1.1-18.5; and
(3) may be pledged to the repayment of bonds issued or leases
entered into for the purposes described in subsection (b).
(i) Grant County possesses unique governmental challenges and
opportunities due to deficiencies in the current county jail. The use of
local income tax revenues as provided in this section is necessary for
the county to provide adequate jail capacity in the county and to
maintain low property tax rates essential to economic development.
The use of local income tax revenues as provided in this section to pay
any bonds issued or leases entered into to finance the construction,
acquisition, improvement, renovation, and equipping of the facilities
described in subsection (b), rather than the use of property taxes,
promotes those purposes.
(j) Money accumulated from the local income tax rate imposed
under this section after the termination of the tax under this section
shall be transferred to the county rainy day fund under IC 36-1-8-5.1.
SECTION 31. IC 6-9-18-3, AS AMENDED BY THE TECHNICAL
CORRECTIONS BILL OF THE 2024 GENERAL ASSEMBLY, IS
AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON
PASSAGE]: Sec. 3. (a) The fiscal body of a county may levy a tax on
every person engaged in the business of renting or furnishing, for
periods of less than thirty (30) days, any room or rooms, lodgings, or
accommodations in any:
(1) hotel;
(2) motel;
(3) boat motel;
(4) inn;
(5) college or university memorial union;
(6) college or university residence hall or dormitory; or
(7) tourist cabin;
located in the county.
(b) The tax does not apply to gross income received in a transaction
in which:
(1) a student rents lodgings in a college or university residence
hall while that student participates in a course of study for which
HEA 1120 — CC 1 70
the student receives college credit from a college or university
located in the county; or
(2) a person rents a room, lodging, or accommodations for a
period of thirty (30) days or more.
(c) The tax may not exceed:
(1) the rate of five percent (5%) in a county other than a county
subject to subdivision (2), (3), or (4);
(2) after June 30, 2019, and except as provided in section 6.7 of
this chapter, the rate of eight percent (8%) in Howard County;
(3) after June 30, 2021, the rate of nine percent (9%) in Daviess
County; or
(4) after June 30, 2023, the rate of eight percent (8%) in Parke
County.
The tax is imposed on the gross retail income derived from lodging
income only and is in addition to the state gross retail tax imposed
under IC 6-2.5.
(d) The county fiscal body may adopt an ordinance to require that
the tax shall be paid monthly to the county treasurer. If such an
ordinance is adopted, the tax shall be paid to the county treasurer not
more than twenty (20) days after the end of the month the tax is
collected. If such an ordinance is not adopted, the tax shall be imposed,
paid, and collected in exactly the same manner as the state gross retail
tax is imposed, paid, and collected under IC 6-2.5.
(e) All of the provisions of IC 6-2.5 relating to rights, duties,
liabilities, procedures, penalties, definitions, exemptions, and
administration are applicable to the imposition and administration of
the tax imposed under this section except to the extent those provisions
are in conflict or inconsistent with the specific provisions of this
chapter or the requirements of the county treasurer. If the tax is paid to
the department of state revenue, the return to be filed for the payment
of the tax under this section may be either a separate return or may be
combined with the return filed for the payment of the state gross retail
tax as the department of state revenue may, by rule, determine.
(f) If the tax is paid to the department of state revenue, the amounts
received from the tax imposed under this section shall be paid monthly
by the treasurer of state to the county treasurer upon warrants issued by
the auditor of state comptroller.
SECTION 32. IC 6-9-18-6.7 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6.7. (a) This section applies only to Howard
County.
(b) This section applies only to rooms, lodgings, or
HEA 1120 — CC 1 71
accommodations located within:
(1) an inn;
(2) a hotel; or
(3) a motel.
(c) As used in this section, "innkeeper's tax" means the tax that
except as provided in this section is imposed on a person engaged
in the business of renting or furnishing any rooms, lodgings, or
accommodations for a duration of less than thirty (30) days.
(d) As used in this section, "person" means an individual, a
corporation, a limited liability company, a partnership, a
marketplace facilitator under IC 6-9-29-6, or any other legal entity.
(e) If the county fiscal body finds that:
(1) an economic development project with a capital
investment of at least two billion dollars ($2,000,000,000) will
be under construction in the county during the time in which
the ordinance would be in effect; and
(2) the construction of the economic development project will
require workers that must relocate to the county for a period
of more than thirty (30) days;
the county fiscal body may adopt an ordinance to extend the thirty
(30) day duration described in subsection (c) for existing or newly
built inns, hotels, or motels while the ordinance is in effect.
(f) An ordinance adopted under this section does not apply to a
person that, prior to January 1, 2024, rented or furnished rooms,
lodgings, or accommodations that were not subject to the
innkeeper's tax because the rental or furnishing period exceeded
the thirty (30) day duration described in subsection (c).
(g) An ordinance adopted under this section:
(1) may not become effective until after April 30, 2024; and
(2) must expire before July 1, 2025.
(h) An ordinance adopted under this section must become
effective on the first day of a month and must expire on the last day
of a month.
(i) If the county fiscal body adopts an ordinance under this
section, the county fiscal body shall reduce the innkeeper's tax rate
for any person subject to the innkeeper's tax rate from the current
rate of eight percent (8%) to the rate of six percent (6%),
beginning with the month that the ordinance becomes effective and
effective until the ordinance expires.
(j) Beginning with the first month after an ordinance under this
section expires, the county fiscal body may return the innkeeper's
tax rate for any person subject to the innkeeper's tax to a
HEA 1120 — CC 1 72
maximum rate of eight percent (8%) as described in section 3(c)(2)
of this chapter.
(k) If the county fiscal body adopts an ordinance under this
section, the county fiscal body shall:
(1) specify the effective date of the ordinance to provide that
the ordinance does not take effect before May 1, 2024;
(2) specify that the ordinance will expire before July 1, 2025;
and
(3) immediately send a certified copy of the ordinance to the
commissioner of the department of state revenue.
(l) If the county fiscal body does not immediately send a
certified copy of the ordinance to the commissioner of the
department of state revenue as required under subsection (k), the
department of state revenue shall treat an extension of the duration
under this section for which an innkeeper's tax is imposed as
having been adopted on the later of:
(1) the first day of the month that is not less than thirty (30)
days after the ordinance is sent to the commissioner of the
department of state revenue; or
(2) the effective date specified in the ordinance.
The department of state revenue shall collect the tax imposed on
the days subject to an ordinance adopted under this section unless
the extension exceeds the maximum period allowable under this
section.
(m) If an ordinance does not specify an effective date, the
ordinance shall be considered effective on the earliest date
allowable under this section.
SECTION 33. IC 7.1-4-3-2, AS AMENDED BY SEA 228-2024,
SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 2. (a) Except as provided in subsections (b)
and (c), the liquor excise tax shall be levied against a permittee who
holds an artisan distiller's permit, a distiller's permit, a rectifier's permit,
a liquor wholesaler's permit, a dining car liquor permit, a vintner's
permit, a wine wholesaler's permit, a dining car wine permit, or a boat
wine permit, whether the sale or gift, or withdrawal for sale or gift, is
to a person authorized to purchase or receive it or not. However, the
same article shall be taxed only once for liquor excise tax purposes.
(b) In the case of a permittee referenced in subsection (a) receiving
liquor from an unpermitted seller outside Indiana, the permittee is
liable for the liquor excise tax imposed upon the transaction.
(c) In the case of a permittee referenced in subsection (a) receiving,
selling, or giving liquor within Indiana from or to another permittee,
HEA 1120 — CC 1 73
the permittee who first receives the liquor in Indiana is liable for the
liquor excise tax imposed upon the transaction.
(d) For purposes of subsection (b), nothing in that subsection
shall be construed to:
(1) authorize an otherwise unlawful sale of liquor in Indiana;
or
(2) relieve an out-of-state seller from having to obtain a
permit described in subsection (a) that the out-of-state seller
is required to obtain under this article prior to the sale of
liquor in Indiana.
SECTION 34. IC 7.1-4-4-3, AS AMENDED BY SEA 228-2024,
SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 3. (a) Except as provided in subsections (b)
and (c), the wine excise tax shall be paid by the holder of a vintner's
permit, a farm winery permit, a wine wholesaler's permit, a direct wine
seller's permit, a dining car wine permit, or a boat wine permit on the
alcoholic beverage to which the tax is applicable and which has been
manufactured or imported by the permit holder into this state.
However, the same article shall be taxed only once for wine excise tax
purposes.
(b) In the case of a permittee referenced in subsection (a) receiving
wine from an unpermitted seller outside Indiana, the permittee is liable
for the wine excise tax imposed upon the transaction.
(c) In the case of a permittee referenced in subsection (a) receiving,
selling, or giving wine within Indiana from or to another permittee, the
permittee who first receives the wine in Indiana is liable for the wine
excise tax imposed upon the transaction.
(d) For purposes of subsection (b), nothing in that subsection
shall be construed to:
(1) authorize an otherwise unlawful sale of wine in Indiana;
or
(2) relieve an out-of-state seller from having to obtain a
permit described in subsection (a) that the out-of-state seller
is required to obtain under this article prior to the sale of
wine in Indiana.
SECTION 35. IC 7.1-4-4.5-3, AS AMENDED BY SEA 228-2024,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: Sec. 3. (a) Except as provided in subsections (b)
and (c), the hard cider excise tax shall be paid by the holder of a
vintner's permit, a farm winery permit, a wine wholesaler's permit, a
direct wine seller's permit, a beer wholesaler's permit, a dining car wine
permit, or a boat wine permit on the hard cider to which the tax is
HEA 1120 — CC 1 74
applicable and that is manufactured or imported by the person into this
state. However, an item may only be taxed once for hard cider excise
tax purposes.
(b) In the case of a permittee referenced in subsection (a) receiving
hard cider from an unpermitted seller outside Indiana, the permittee is
liable for the hard cider excise tax imposed upon the transaction.
(c) In the case of a permittee referenced in subsection (a) receiving,
selling, or giving hard cider within Indiana from or to another
permittee, the permittee who first receives the hard cider in Indiana is
liable for the hard cider excise tax imposed upon the transaction.
(d) For purposes of subsection (b), nothing in that subsection
shall be construed to:
(1) authorize an otherwise unlawful sale of hard cider in
Indiana; or
(2) relieve an out-of-state seller from having to obtain a
permit described in subsection (a) that the out-of-state seller
is required to obtain under this article prior to the sale of
hard cider in Indiana.
SECTION 36. IC 10-12-7 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]:
Chapter 7. Supplemental Allowance Reserve Account
Sec. 0.5. This chapter applies to the state police pre-1987 benefit
system covered by IC 10-12-3 and the state police 1987 benefit
system covered by IC 10-12-4.
Sec. 1. For purposes of this chapter, "account" means the
supplemental allowance reserve account described in section 2 of
this chapter.
Sec. 2. (a) The trustee shall maintain a separate supplemental
allowance reserve account for both the state police pre-1987 benefit
system under IC 10-12-3 and the state police 1987 benefit system
under IC 10-12-4 for the purpose of paying postretirement benefit
adjustments, including:
(1) postretirement benefit increases; and
(2) thirteenth checks;
granted by the general assembly to employee beneficiaries after
June 30, 2025.
(b) For purposes of subsection (a), "postretirement benefit
adjustments" does not include a supplemental pension benefit
under IC 10-12-5.
Sec. 3. The account consists of amounts appropriated or
transferred to the account by the general assembly.
HEA 1120 — CC 1 75
Sec. 4. The trustee may not:
(1) deposit money in the account; or
(2) transfer money to the account.
SECTION 37. IC 12-7-2-48.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 48.7. "Covered population",
for purposes of IC 12-15-13-1.8, has the meaning set forth in
IC 12-15-13-1.8(a).
SECTION 38. IC 12-15-13-1.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 1.8. (a) As used in this section,
"covered population" means all Medicaid recipients who meet the
criteria set forth in subsection (b).
(b) An individual is a member of the covered population if the
individual:
(1) is eligible to participate in the federal Medicare program
(42 U.S.C. 1395 et seq.) and receives nursing facility services;
or
(2) is:
(A) at least sixty (60) years of age;
(B) blind, aged, or disabled; and
(C) receiving services through one (1) of the following:
(i) The aged and disabled Medicaid waiver.
(ii) A risk based managed care program for aged, blind,
or disabled individuals who are not eligible to participate
in the federal Medicare program.
(iii) The state Medicaid plan.
(c) The office of the secretary may implement a risk based
managed care program for the covered population.
(d) The office of Medicaid policy and planning and the managed
care organizations that intend to participate in the risk based
managed care program established under subsection (c) shall
conduct a claims submission testing period before the risk based
managed care program is implemented under subsection (c).
(e) The office of Medicaid policy and planning shall convene a
workgroup for purposes of this section. The members of the
workgroup shall consist of the fiscal officer of the office of
Medicaid policy and planning, representatives of managed care
organizations that intend to participate in the risk based managed
care program established under subsection (c) who are appointed
by the director, and provider representatives appointed by the
director. The workgroup shall do the following:
HEA 1120 — CC 1 76
(1) Develop a uniform billing format to be used by the
managed care organizations participating in the risk based
managed care program established under subsection (c).
(2) Seek and receive feedback on the claims submission testing
period conducted under subsection (d).
(3) Advise the office of Medicaid policy and planning on claim
submission education and training needs of providers
participating in the risk based managed care program
established under subsection (c).
(4) Develop a policy for defining "claims submitted
appropriately" for the purposes of subsection (g)(1) and
(g)(2).
(f) Subsections (g) through (k) apply during the first two
hundred ten (210) days after the risk based managed care program
for the covered population is implemented under subsection (c).
(g) The office of Medicaid policy and planning shall establish a
temporary emergency financial assistance program for providers
that experience financial emergencies due to claims payment issues
while participating in the risk based managed care program
established under subsection (c). For purposes of the program
established under this subsection, a financial emergency exists:
(1) when the rate of denial of claims submitted in one (1)
billing period by the provider to a managed care organization
exceeds fifteen percent (15%) of claims submitted
appropriately by the provider to the managed care
organization under the risk based managed care program;
(2) when the provider, twenty-one (21) days after
appropriately submitting claims to a managed care
organization under the risk based managed care program, has
not received payment for at least twenty-five thousand dollars
($25,000) in aggregate claims from the managed care
organization;
(3) when, in the determination of the director, the claim
submission system of a managed care organization with which
the provider is contracted under the risk based managed care
program experiences failure or overload; or
(4) upon the occurrence of other circumstances that, in the
determination of the director, constitute a financial
emergency for a provider.
(h) To be eligible for a payment of temporary emergency
financial assistance under the program established under
subsection (g), a provider:
HEA 1120 — CC 1 77
(1) must have participated in the claims submission testing
period conducted under subsection (d) for all managed care
organizations with which the provider is contracted under the
risk based managed care program established under
subsection (c); and
(2) must submit to the office of Medicaid policy and planning
a written request that includes all of the following:
(A) Documentation providing evidence of the provider's
financial need for emergency assistance.
(B) Evidence that the provider's billing staff participated
in claims submission education and training offered
through the risk based managed care program established
under subsection (c).
(C) Evidence that the provider participated in the claims
submission testing period conducted under subsection (d)
for all managed care organizations with which the
provider is contracted under the risk based managed care
program established under subsection (c).
(D) Evidence of a consistent effort by the provider to
submit claims in accordance with the uniform billing
requirements developed under subsection (e)(1).
(i) The office of Medicaid policy and planning:
(1) shall determine whether a provider is experiencing a
financial emergency based upon the provider's submission of
a written request that meets the requirements of subsection
(h)(2); and
(2) shall make a determination whether a provider is
experiencing a financial emergency not more than seven (7)
calendar days after it receives a written request submitted by
a provider under subsection (h)(2).
(j) If the office of Medicaid policy and planning determines that
a provider is experiencing a financial emergency for purposes of
the program established under subsection (g), it shall direct each
managed care organization with which the provider is contracted
under the risk based managed care program established under
subsection (c) to provide a temporary emergency assistance
payment to the provider. A managed care organization directed to
provide a temporary emergency assistance payment to a provider
under this subsection shall provide the payment in not more than
seven (7) calendar days after the office directs the managed care
organization to provide the payment. The amount of the temporary
emergency assistance payment that a managed care organization
HEA 1120 — CC 1 78
shall make to a provider under this subsection is equal to
seventy-five percent (75%) of the monthly average of the
provider's long-term services and supports Medicaid claims for the
six (6) month period immediately preceding the implementation of
the risk based managed care program under subsection (c),
adjusted in proportion to the ratio of the managed care
organization's covered population membership to the total covered
population membership of the risk based managed care program
established under subsection (c).
(k) Upon issuing any payment of a temporary emergency
assistance to a provider under subsection (j), a managed care
organization shall set up a receivable to reconcile the temporary
emergency assistance funds with actual claims payment amounts.
A managed care organization shall reconcile the temporary
emergency assistance payment funds with actual claims payment
amounts on the first day of the month that is more than thirty-one
(31) days after the managed care organization issues the temporary
emergency assistance funds to the provider. If a temporary
emergency assistance payment is issued to a provider, managed
care organizations are still required to meet contract obligations
for reviewing and paying claims, specifically claims that total a
payment in excess of the temporary emergency assistance payment
reconciliation. However, if a managed care organization fails to
comply with a directive of the office of Medicaid policy and
planning under subsection (j) to provide a temporary emergency
assistance payment to a provider, the failure of the managed care
organization:
(1) is a violation of the claim processing requirements of the
managed care organization's contract; and
(2) makes the managed care organization subject to the
penalties set forth in the contract, including payment of
interest on the amount of the unpaid temporary emergency
assistance at the rate set forth in IC 12-15-21-3(7)(A).
SECTION 39. IC 15-13-7-1, AS AMENDED BY P.L.92-2019,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]: Sec. 1. (a) The commission and board shall hold one
(1) state agricultural fair each year. The fair must emphasize
agriculture and agribusiness.
(b) The commission is responsible for the following:
(1) Personnel.
(2) Management of the facilities.
(3) Contracts and contract procedures.
HEA 1120 — CC 1 79
(4) All fiduciary responsibilities.
(5) Approving future dates of the fair.
(c) The board is responsible for the following:
(1) Committees established under IC 15-13-5-5.5 to assist with
planning the fair.
(2) Approving the annual premium books for the fair that set forth
the general terms and conditions, schedule, loading and unloading
of livestock, qualifications, animal testing, breed specific terms
and conditions, entry fees, and premiums for all fair exhibits and
judges.
(3) Advising on matters related to agriculture and livestock,
including department staffing and judges.
(4) Approving breed champions to be included in the celebration
of champions, and establishing the formula for determining
monetary awards, based on recommendations of the Indiana State
Fair Foundation.
(5) Approving Advising the commission on future dates of the
fair.
(6) Fundraising to support youth development.
(7) Advocating for the fair within the community.
(8) Participating in the commission's strategic planning process.
(d) The board:
(1) shall assign a delegated board member to a committee of the
board; and
(2) may assign a delegated board member to at least one (1)
department during the fair.
With the assistance of staff, the delegated board member is responsible
for compliance with the terms and conditions established by the board
within the delegated board member's department during the fair.
(e) The board shall provide a list of recommendations to the
commission concerning the hiring of judges for livestock and
competitive events during the fair. The commission may use the
recommendations provided by the board to hire judges for livestock
and competitive events during the fair.
SECTION 40. IC 16-27-5.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]:
Chapter 5.5. Home Health Agency Cooperative Agreements
Sec. 1. The definitions in IC 16-27-1 apply throughout this
chapter.
Sec. 2. As used in this chapter, "office" refers to the office of the
secretary of family and social services established by IC 12-8-1.5-1.
HEA 1120 — CC 1 80
Sec. 3. As used in this chapter, "secretary" refers to the
secretary of family and social services appointed under
IC 12-8-1.5-2.
Sec. 4. Home health agencies may enter into cooperative
agreements to carry out the following activities:
(1) To form and operate, either directly or indirectly, one (1)
or more networks of home health agencies to arrange for the
provision of health care services through such networks,
including to contract either directly or indirectly through a
network.
(2) To contract, either directly or through such networks, with
the office, or the office's contractors, to provide:
(A) services to Medicaid beneficiaries; and
(B) health care services in an efficient and cost effective
manner on a prepaid, capitation, or other reimbursement
basis.
(3) To undertake other managed health care activities.
Sec. 5. (a) Any health care provider licensed under this title or
IC 25 may apply to become a participating provider in the
networks described in this chapter provided the services the
provider contracts for are within the lawful scope of the provider's
practice.
(b) This section does not require a plan or network to provide
coverage for any specific health care service.
Sec. 6. A home health agency may authorize any of the
following, or any combination of the following, to undertake or
effectuate any of the activities identified in this chapter:
(1) The Indiana Association for Home and Hospice Care, Inc.
(2) Any subsidiary of the corporation named in subdivision
(1).
Sec. 7. The secretary or the secretary's designee shall supervise
and oversee the activities described in this chapter and may take
the following actions:
(1) Gather relevant facts, collect data, conduct public
hearings, invite and receive public comments, investigate
market conditions, conduct studies, and review documentary
evidence or require the home health agencies or their third
party designee to do the same.
(2) Evaluate the substantive merits of any action to be taken
by the home health agencies and assess whether the action
comports with the standards established by the general
assembly.
HEA 1120 — CC 1 81
(3) Issue written decisions approving, modifying, or
disapproving the recommended action, and explaining the
reasons and rationale for the decision.
(4) Require home health agencies or their third party
designees to report annually on the extent of the benefits
realized by the actions taken under this chapter.
Sec. 8. The office shall report annually to the Medicaid oversight
committee established by IC 2-5-54-2 on the use and outcomes of
the home health agency cooperative agreements.
Sec. 9. The secretary may adopt rules under IC 4-22-2 to
implement this chapter.
Sec. 10. This chapter expires June 30, 2027.
SECTION 41. IC 20-26-12-1, AS AMENDED BY P.L.201-2023,
SECTION 163, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025]: 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 42. IC 20-26-12-2, AS AMENDED BY P.L.201-2023,
SECTION 164, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025]: Sec. 2. (a) A governing body or an
HEA 1120 — CC 1 82
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
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 43. IC 20-28-9-28, AS AMENDED BY P.L.246-2023,
SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: 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
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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
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 44. IC 20-40-2-3, AS AMENDED BY P.L.244-2017,
SECTION 68, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
HEA 1120 — CC 1 84
JANUARY 1, 2025]: Sec. 3. Distributions of:
(1) tuition support; and
(2) money for curricular materials;
shall be received in the education fund.
SECTION 45. IC 20-40-2-4, AS AMENDED BY P.L.201-2023,
SECTION 182, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025]: 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 46. IC 20-40-2-5.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025]: Sec. 5.5. The state board of
accounts may take action, including the establishment of an
account code, to track expenditures of money distributed for
curricular materials.
SECTION 47. IC 20-40-2-6, AS AMENDED BY P.L.201-2023,
SECTION 183, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025]: 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
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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.
(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 48. IC 20-40-2-7, AS ADDED BY P.L.244-2017,
SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2025]: 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 49. IC 20-40-22-9 IS REPEALED [EFFECTIVE
JANUARY 1, 2025]. 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
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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 50. IC 20-40-22-10 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2025]: 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 and shall not be subject to collective
bargaining.
(c) The state board of accounts 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 51. IC 21-34-6-6, AS AMENDED BY P.L.143-2014,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 6. (a) The board of trustees of a state
educational institution may issue bonds for the purpose of:
(1) reimbursing the state educational institution for funds
expended or advanced for interim financing of the cost of any
building facility or facilities before the issuance of bonds for the
facility or facilities; or
(2) subject to subsection (b) and to existing covenants and
agreements with the holders of the outstanding obligations:
(A) funding outstanding obligations incurred or refunding
outstanding bonds issued either under:
(i) this article; or
(ii) other applicable law;
for building facilities approved by the governor and the budget
agency or its predecessor; or
(B) in part for funding or refunding purposes and in part for
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any other purpose authorized by this article; and
may secure the payment of the bonds as provided in this article.
(b) Bonds for refunding or advance refunding of any outstanding
bonds approved under this article for which the general assembly has
made a fee replacement appropriation may not be issued by a state
educational institution under this chapter without the specific approval
of the budget agency and before the board of trustees of the issuing
state educational institution finds that the refunding or advance
refunding will benefit the state educational institution because:
(1) a net savings to the state educational institution will be
effected; or
(2) the net present value of principal and interest payments on the
bonds is less than the net present value of the principal and
interest payments on the outstanding bonds to be refunded.
The length of the term may not be extended for refunding or advance
refunding bonds that are approved under this subsection compared to
the term of the outstanding bonds being refunded.
SECTION 52. IC 36-1-32 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2024]:
Chapter 32. Sister City and Cooperative Agreements
Sec. 1. As used in this chapter, "prohibited person" means a
city, town, province, county, school, college, or university located
in a foreign adversary (as defined in 15 CFR 7.4).
Sec. 2. As used in this chapter, "unit" means a county, city,
town, or township.
Sec. 3. A unit may not enter into a sister city agreement or any
cooperative agreement with a prohibited person.
SECTION 53. IC 36-7-7.6-18, AS AMENDED BY P.L.197-2016,
SECTION 124, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 18. (a) The commission shall
prepare and adopt an annual appropriation budget for its operation. The
appropriation budget shall be apportioned to each participating county
on a pro rata per capita basis. After adoption of the appropriation
budget, any amount that does not exceed an amount for each
participating county equal to seventy cents ($0.70) the following
amounts per capita for each participating county shall be certified to
the respective county auditor. auditor:
(1) Seventy cents ($0.70) for calendar years ending before
January 1, 2025.
(2) Eighty-six cents ($0.86) for calendar years beginning after
December 31, 2024, and ending before January 1, 2026.
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(3) One dollar and two cents ($1.02) for calendar years
beginning after December 31, 2025, and ending before
January 1, 2027.
(4) One dollar and eighteen cents ($1.18) for calendar years
beginning after December 31, 2026, and ending before
January 1, 2028.
(5) One dollar and thirty-four cents ($1.34) for calendar years
beginning after December 31, 2027, and ending before
January 1, 2029.
(6) One dollar and fifty cents ($1.50) for calendar years
beginning after December 31, 2028, and ending before
January 1, 2030.
(b) For calendar years beginning after December 31, 2029, and
ending before January 1, 2031, and for each ensuing calendar year
thereafter, the commission shall, based on a participating county's
amount in calendar year 2029, or a participating county's amount
in the calendar year preceding an ensuing calendar year, as
applicable, adjust a participating county's portion of the
commission's appropriation budget for the ensuing year by the
greater of the following:
(1) The annual percentage change in the Consumer Price
Index for all Urban Consumers as published by the United
States Bureau of Labor Statistics for the year preceding the
ensuing year.
(2) The participating county's maximum levy growth quotient
for the ensuing year as determined under IC 6-1.1-18.5-2.
Not later than August 1 of each year, the department of local
government finance shall provide to the commission the value of
each participating county's maximum levy growth quotient under
IC 6-1.1-18.5-2 for the ensuing year.
(c) Any adjustment under subsection (b) that will result in an
appropriation in excess of one dollar and fifty cents ($1.50) per
capita in a participating county requires prior approval from the
fiscal body of the participating county.
(b) (d) A county's portion of the commission's appropriation budget
may be paid from any of the following, as determined by the county
fiscal body:
(1) Property tax revenue as provided in subsections (c) (e) and
(d). (f).
(2) Any other local revenue, other than property tax revenue,
received by the county, including local income tax revenue under
IC 6-3.6, excise tax revenue, riverboat admissions tax revenue,
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riverboat wagering tax revenue, riverboat incentive payments, and
any funds received from the state that may be used for this
purpose.
(3) Any combination of the sources set forth in subdivisions
(1) and (2).
(c) (e) The county auditor shall:
(1) advertise the amount of property taxes that the county fiscal
body determines will be levied to pay the county's portion of the
commission's appropriation budget, after the county fiscal body
determines the amount of other local revenue that will be paid
under subsection (b)(2); (d)(2); and
(2) establish the rate necessary to collect that property tax
revenue;
in the same manner as for other county budgets.
(d) (f) The tax levied under this section and certified shall be
estimated and entered upon the tax duplicates by the county auditor and
shall be collected and enforced by the county treasurer in the same
manner as other county taxes are estimated, entered, collected, and
enforced. The tax collected by the county treasurer shall be transferred
to the commission.
(e) (g) In fixing and determining the amount of the necessary levy
for the purpose provided in this section, the commission shall take into
consideration the amount of revenue, if any, to be derived from federal
grants, contractual services, and miscellaneous revenues above the
amount of those revenues considered necessary to be applied upon or
reserved upon the operation, maintenance, and administrative expenses
for working capital throughout the year.
(f) (h) After the budget is approved, amounts may not be expended
except as budgeted unless the commission authorizes their expenditure.
Before the expenditure of sums appropriated as provided in this
section, a claim must be filed and processed as other claims for
allowance or disallowance for payment as provided by law.
(g) (i) Any two (2) of the following officers may allow claims:
(1) Chairperson.
(2) Vice chairperson.
(3) Secretary.
(4) Treasurer.
(h) (j) The treasurer of the commission may receive, disburse, and
otherwise handle funds of the commission, subject to applicable
statutes and to procedures established by the commission.
(i) (k) The commission shall act as a board of finance under the
statutes relating to the deposit of public funds by political subdivisions.
HEA 1120 — CC 1 90
(j) (l) Any appropriated money remaining unexpended or
unencumbered at the end of a year becomes part of a nonreverting
cumulative fund to be held in the name of the commission. Unbudgeted
expenditures from this fund may be authorized by vote of the
commission and upon other approval as required by statute. The
commission is responsible for the safekeeping and deposit of the
amounts in the nonreverting cumulative fund, and the state board of
accounts shall prescribe the methods and forms for keeping the
accounts, records, and books to be used by the commission. The books,
records, and accounts of the commission shall be audited periodically
by the state board of accounts, and those audits shall be paid for as
provided by statute.
SECTION 54. IC 36-7-14-39, AS AMENDED BY P.L.236-2023,
SECTION 179, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]: Sec. 39. (a) As
used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution and
allocation of property taxes.
"Base assessed value" means, subject to subsection (j), the
following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) 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 (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, within the allocation area, as finally determined for
the current assessment date.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) 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 (h); plus
(B) to the extent that it is not included in clause (A), the net
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assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for the current assessment date.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, 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 (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes, taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
HEA 1120 — CC 1 92
may include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or amendment that establishes an allocation
provision must include a specific finding of fact, supported by
evidence, that the adoption of the allocation provision will result in
new property taxes in the area that would not have been generated but
for the adoption of the allocation provision. For an allocation area
established before July 1, 1995, the expiration date of any allocation
provisions for the allocation area is June 30, 2025, or the last date of
any obligations that are outstanding on July 1, 2015, whichever is later.
A declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision. For an allocation area established before July 1,
2008, the expiration date may not be more than thirty (30) years after
the date on which the allocation provision is established. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or lease
rentals on leases payable from tax increment revenues. However, with
respect to bonds or other obligations that were issued before July 1,
2008, if any of the bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. Notwithstanding any other law, in the case of an
allocation area that is established after June 30, 2019, and that is
located in a redevelopment project area described in section
25.1(c)(3)(C) of this chapter, an economic development area described
in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, the expiration
date of the allocation provision may not be more than thirty-five (35)
years after the date on which the allocation provision is established.
The allocation provision may apply to all or part of the redevelopment
project area. The allocation provision 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
allocation area be allocated and distributed as follows:
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(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.
(2) This subdivision applies to a fire protection territory
established after December 31, 2022. If a unit becomes a
participating unit of a fire protection territory that is established
after a declaratory resolution is adopted under section 15 of this
chapter, the excess of the proceeds of the property taxes
attributable to an increase in the property tax rate for the
participating unit of a fire protection territory:
(A) except as otherwise provided by this subdivision, shall be
determined as follows:
STEP ONE: Divide the unit's tax rate for fire protection for
the year before the establishment of the fire protection
territory by the participating unit's tax rate as part of the fire
protection territory.
STEP TWO: Subtract the STEP ONE amount from one (1).
STEP THREE: Multiply the STEP TWO amount by the
allocated property tax attributable to the participating unit of
the fire protection territory; and
(B) to the extent not otherwise included in subdivisions (1)
and (3), the amount determined under STEP THREE of clause
(A) shall be allocated to and distributed in the form of an
allocated property tax revenue pass back to the participating
unit of the fire protection territory for the assessment date with
respect to which the allocation is made.
However, if the redevelopment commission determines that it is
unable to meet its debt service obligations with regards to the
allocation area without all or part of the allocated property tax
revenue pass back to the participating unit of a fire protection area
under this subdivision, then the allocated property tax revenue
pass back under this subdivision shall be reduced by the amount
necessary for the redevelopment commission to meet its debt
service obligations of the allocation area. The calculation under
this subdivision must be made by the redevelopment commission
in collaboration with the county auditor and the applicable fire
protection territory. Any calculation determined according to
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clause (A) must be submitted to the department of local
government finance in the manner prescribed by the department
of local government finance. The department of local government
finance shall verify the accuracy of each calculation.
(3) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is 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 subdivisions (1) and (2) 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.
(4) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1), (2), and
(3) shall be allocated to the redevelopment district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the redevelopment district only to do one (1) or
more of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to that allocation area.
HEA 1120 — CC 1 95
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January 1,
2009, pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
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(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(M) Expend money and provide financial assistance as
authorized in section 12.2(a)(27) of this chapter.
(N) Expend revenues that are allocated for police and fire
services on both capital expenditures and operating
expenses as authorized in section 12.2(a)(28) of this
chapter.
The allocation fund may not be used for operating expenses of the
commission.
(5) Except as provided in subsection (g), before June 15 of each
year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
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multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to produce the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (4), plus
the amount necessary for other purposes described in
subdivision (4).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, 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 county auditor,
upon receiving the notice, shall forward this notice (in an
electronic format) to the department of local government
finance not later than June 15 of each year. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
of assessed value to the respective taxing units under this
subdivision if to do so would endanger the interests of the
holders of bonds described in subdivision (4) or lessors under
section 25.3 of this chapter.
(C) If:
(i) the amount of excess assessed value determined by the
commission is expected to generate more than two hundred
percent (200%) of the amount of allocated tax proceeds
necessary to make, when due, principal and interest
payments on bonds described in subdivision (4); plus
(ii) the amount necessary for other purposes described in
subdivision (4);
the commission shall submit to the legislative body of the unit
its determination of the excess assessed value that the
commission proposes to allocate to the respective taxing units
in the manner prescribed in subdivision (1). The legislative
body of the unit may approve the commission's determination
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or modify the amount of the excess assessed value that will be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
(6) Notwithstanding subdivision (5), in the case of an allocation
area that is established after June 30, 2019, and that is located in
a redevelopment project area described in section 25.1(c)(3)(C)
of this chapter, an economic development area described in
section 25.1(c)(3)(C) of this chapter, or an urban renewal project
area described in section 25.1(c)(3)(C) of this chapter, for each
year the allocation provision is in effect, if the amount of excess
assessed value determined by the commission under subdivision
(5)(A) is expected to generate more than two hundred percent
(200%) of:
(A) the amount of allocated tax proceeds necessary to make,
when due, principal and interest payments on bonds described
in subdivision (4) for the project; plus
(B) the amount necessary for other purposes described in
subdivision (4) for the project;
the amount of the excess assessed value that generates more than
two hundred percent (200%) of the amounts described in clauses
(A) and (B) shall be allocated to the respective taxing units in the
manner prescribed by subdivision (1).
(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
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution 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) Property tax proceeds allocable to the redevelopment district
under subsection (b)(4) may, subject to subsection (b)(5), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(4).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, 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
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lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(4) shall establish an allocation fund for the purposes
specified in subsection (b)(4) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1), (b)(2), and (b)(3) from property located in the enterprise zone
that exceeds the amount sufficient for the purposes specified in
subsection (b)(4) for the year. The amount sufficient for purposes
specified in subsection (b)(4) for the year shall be determined based on
the pro rata portion of such current property tax proceeds from the part
of the enterprise zone that is within the allocation area as compared to
all such current property tax proceeds derived from the allocation area.
A unit that has no obligations, bonds, or leases payable from allocated
tax proceeds under subsection (b)(4) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1), (b)(2), and (b)(3) in the fund derived from
property tax proceeds in excess of those described in subsection (b)(1),
(b)(2), and (b)(3) from property located in the enterprise zone. The unit
that creates the special zone fund shall use the fund (based on the
recommendations of the urban enterprise association) for programs in
job training, job enrichment, and basic skill development that are
designed to benefit residents and employers in the enterprise zone or
other purposes specified in subsection (b)(4), except that where
reference is made in subsection (b)(4) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. Those
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) 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 in an area 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
HEA 1120 — CC 1 100
the reassessment of the real property in the area on the property tax
proceeds allocated to the redevelopment 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 one (1)
time to neutralize any effect of the annual adjustment on the property
tax proceeds allocated to the redevelopment district under this section.
However, the adjustments under this subsection:
(1) may not include the effect of phasing in assessed value due to
property tax abatements under IC 6-1.1-12.1;
(2) may not produce less property tax proceeds allocable to the
redevelopment district under subsection (b)(4) than would
otherwise have been received if the reassessment under the
reassessment plan or the annual adjustment had not occurred; and
(3) may decrease base assessed value only to the extent that
assessed values in the allocation area have been decreased due to
annual adjustments or the reassessment under the reassessment
plan.
Assessed value increases attributable to the application of an abatement
schedule under IC 6-1.1-12.1 may not be included in the base assessed
value of an allocation area. The department of local government
finance may prescribe procedures for county and township officials to
follow to assist the department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(j) If a redevelopment commission adopts a declaratory resolution
or an amendment to a declaratory resolution that contains an allocation
provision and the redevelopment commission makes either of the
filings required under section 17(e) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
HEA 1120 — CC 1 101
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
of local government finance.
(k) For an allocation area established after June 30, 2024, 2025,
"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).
SECTION 55. IC 36-7-40-4, AS AMENDED BY HEA 1199-2024,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. After conducting a hearing under section
3.5 of this chapter, the legislative body of a city may adopt an
ordinance on or before December 31, 2024, establishing a special
assessment district known as the economic enhancement district. The
adopting ordinance must contain the following:
(1) The boundaries of the proposed economic enhancement
district, which may exceed the boundaries of the Mile Square area
of the city. However, the boundary must be the same distance in
length on all sides compared to the center of the city, but may not
exceed a two (2) mile square.
(2) A finding that the proposed economic enhancement projects
will provide special benefits to all property owners of the
economic enhancement district.
(3) A finding that excludes the following types of properties from
the assessment of benefits:
(A) Any property that receives a homestead standard
deduction under IC 6-1.1-12-37.
(B) Any property that is used for multi-unit residential
housing.
(C) Any property that is used for single-unit residential
housing.
However, notwithstanding the exclusion provisions, an owner of
property described in clause (A), or (B), or (C) and the owner of
any property located outside the economic enhancement district
may voluntarily opt-in to include their property in the economic
enhancement district assessment of benefits by notifying the
HEA 1120 — CC 1 102
county auditor in writing. If a property that is opted into the
economic enhancement district assessment of benefits is
subsequently sold, the new owner of the property shall have the
opportunity to determine whether or not they will opt-in to
include the property in the economic enhancement district
assessment of benefits. A determination to opt-in to the economic
enhancement district assessment of benefits is binding until a
property is sold.
(4) The formula to be used for the assessment of benefits, which
shall be as follows:
(A) The annual special benefits assessment shall be calculated
in a manner that will generate an amount not to exceed five
million five hundred thousand dollars ($5,500,000).
(B) For each taxable property in the district, the special
benefits assessment shall be calculated as follows:
(i) Residential properties shall be assessed a flat fee of two
hundred fifty dollars ($250) each.
(ii) All other nonresidential taxable property shall be
assessed at a rate equal to the total budget amount minus the
total amount raised from residential properties divided by
the total assessed value of all the nonresidential taxable
property in the district. This fraction shall be considered the
economic enhancement district assessment rate. The
economic enhancement district assessment rate shall be
multiplied by the assessed value of any nonresidential
taxable property to determine that property's assessment.
(5) An expiration date of the economic enhancement district,
which may not be later than ten (10) years from the date of the
adoption of the ordinance and may not be renewed. The adopting
ordinance must establish an economic enhancement district
board.
SECTION 56. IC 36-8-8.5-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 10. A member who
elects to enter the DROP shall do the following:
(1) Agree to the following:
(1) (A) The member shall execute an irrevocable election to
retire on the DROP retirement date and shall remain in active
service until that date.
(2) (B) While in the DROP, the member shall continue to
make contributions to the applicable fund under the provisions
of that fund.
(3) (C) The member shall elect a DROP retirement date not
HEA 1120 — CC 1 103
less than twelve (12) months and not more than:
(i) thirty-six (36) months after the member's DROP entry
date, for a member who executes an election described in
clause (A) before July 1, 2024; or
(ii) sixty (60) months after the member's DROP entry
date, for a member who executes an election described in
clause (A) after June 30, 2024.
(4) (D) The member may not remain in the DROP after the
date the member reaches any mandatory retirement age that
may apply to the member.
(5) (E) The member may make an election to enter the DROP
only once in the member's lifetime.
(2) Notify the member's employer of the DROP election
within thirty (30) days of the election.
SECTION 57. IC 36-8-8.5-10.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 10.5. (a) Notwithstanding section
10 of this chapter, a member that entered the DROP before July 1,
2024, and that has not exited the DROP may elect to extend the
member's DROP retirement date up to sixty (60) months after the
member's DROP entry date.
(b) A member that makes the election described in subsection
(a) shall notify the member's employer within thirty (30) days of
the election.
SECTION 58. IC 36-8-8.5-14, AS AMENDED BY P.L.156-2020,
SECTION 147, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 14. (a) Subject to subsection (b), a
member who enters the DROP established by this chapter shall exit the
DROP at the earliest of:
(1) the member's DROP retirement date;
(2) either:
(A) thirty-six (36) months after the member's DROP entry
date, if the member:
(i) executes an election described in section 10 of this
chapter before July 1, 2024; and
(ii) does not execute an extension described in section
10.5 of this chapter; or
(B) sixty (60) months after the member's DROP entry date,
if the member:
(i) executes an election described in section 10 of this
chapter after June 30, 2024; or
(ii) executes an extension described in section 10.5 of this
HEA 1120 — CC 1 104
chapter;
(3) the mandatory retirement age applicable to the member, if
any; or
(4) the date the member retires because of a disability as provided
under section 16.5(d) of this chapter.
(b) A member of the 1925 fund, the 1937 fund, or the 1953 fund
who enters the DROP established by this chapter must exit the DROP
on the date the authority of the board of trustees of the Indiana public
retirement system to distribute from the pension relief fund established
under IC 5-10.3-11-1 to units of local government (described in
IC 5-10.3-11-3) amounts determined under IC 5-10.3-11-4.7 expires.
SECTION 59. IC 36-8-13-4, AS AMENDED BY P.L.236-2023,
SECTION 203, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 4. (a) Each township shall annually
establish either:
(1) a township firefighting and emergency services fund which is
to be used by the township for the payment of costs attributable
to providing fire protection or emergency services under the
methods prescribed in section 3 of this chapter and for no other
purposes; or
(2) two (2) separate funds consisting of:
(A) a township firefighting fund that is to be used by the
township for the payment of costs attributable to providing fire
protection under the methods prescribed in section 3 of this
chapter and for no other purposes; and
(B) a township emergency services fund that is to be used by
the township for the payment of costs attributable to providing
emergency services under the methods prescribed in section 3
of this chapter and for no other purposes.
The money in the funds described in either subdivision (1) or (2) may
be paid out by the township executive with the consent of the township
legislative body.
(b) If a township transitions from a single township firefighting
and emergency services fund under subsection (a)(1) to two (2)
separate funds as allowed under subsection (a)(2), the township
legislative body shall approve a transfer of the remaining cash
balance in the township firefighting and emergency services fund
to the two (2) new separate funds. As part of the transfer under
this subsection, the legislative body shall determine the amounts of
the remaining cash balance that will be attributable to the
township firefighting fund and the township emergency services
fund.
HEA 1120 — CC 1 105
(b) (c) Each township may levy, for each year, a tax for either:
(1) the township firefighting and emergency services fund
described in subsection (a)(1); or
(2) both:
(A) the township firefighting fund; and
(B) the township emergency services fund;
described in subsection (a)(2).
Other than a township providing fire protection or emergency services
or both to municipalities in the township under section 3(b) or 3(c) of
this chapter, the tax levy is on all taxable real and personal property in
the township outside the corporate boundaries of municipalities.
Subject to the levy limitations contained in IC 6-1.1-18.5, the township
firefighting and emergency services levy is to be in an amount
sufficient to pay costs attributable to fire protection and emergency
services that are not paid from other revenues available to the fund. If
a township establishes a township firefighting fund and a township
emergency services fund described in subdivision (2), the combined
levies are to be an amount sufficient to pay costs attributable to fire
protection and emergency services. However, fire protection services
may be paid only from the township firefighting fund and emergency
services may be paid only from the township emergency services fund,
and each fund may pay costs attributable to the respective fund for
services that are not paid from other revenues available to either
applicable fund. The tax rate and levy for a levy described in this
subsection shall be established in accordance with the procedures set
forth in IC 6-1.1-17.
(c) (d) In addition to the tax levy and service charges received under
IC 36-8-12-13 and IC 36-8-12-16, the executive may accept donations
to the township for the purpose of firefighting and other emergency
services and shall place them in the township firefighting and
emergency services fund established under subsection (a)(1), or if
applicable, the township firefighting fund established under subsection
(a)(2)(A) if the purpose of the donation is for firefighting, or in the
township emergency services fund established under subsection
(a)(2)(B) if the purpose of the donation is for emergency services,
keeping an accurate record of the sums received. A person may also
donate partial payment of any purchase of firefighting or other
emergency services equipment made by the township.
(d) (e) If a fire department serving a township dispatches fire
apparatus or personnel to a building or premises in the township in
response to:
(1) an alarm caused by improper installation or improper
HEA 1120 — CC 1 106
maintenance; or
(2) a drill or test, if the fire department is not previously notified
that the alarm is a drill or test;
the township may impose a fee or service charge upon the owner of the
property. However, if the owner of property that constitutes the owner's
residence establishes that the alarm is under a maintenance contract
with an alarm company and that the alarm company has been notified
of the improper installation or maintenance of the alarm, the alarm
company is liable for the payment of the fee or service charge.
(e) (f) The amount of a fee or service charge imposed under
subsection (d) (e) shall be determined by the township legislative body.
All money received by the township from the fee or service charge
must be deposited in the township's firefighting and emergency
services fund or the township's firefighting fund.
SECTION 60. IC 36-8-13-4.7, AS AMENDED BY P.L.236-2023,
SECTION 206, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2024]: Sec. 4.7. (a) For a township that elects
to have the township provide fire protection and emergency services
under section 3(c) of this chapter, the department of local government
finance shall adjust the township's maximum permissible levy
described in section 4(b)(1) or 4(b)(2) 4(c)(1) or 4(c)(2) of this
chapter, as applicable, in the year following the year in which the
change is elected, as determined under IC 6-1.1-18.5-3, to reflect the
change from providing fire protection or emergency services under a
contract between the municipality and the township to allowing the
township to impose a property tax levy on the taxable property located
within the corporate boundaries of each municipality. For the ensuing
calendar year, the township's maximum permissible property tax levy
described in section 4(b)(1) 4(c)(1) of this chapter, or the combined
levies described in section 4(b)(2) 4(c)(2) of this chapter, which is
considered a single levy for purposes of this section, shall be increased
by the product of:
(1) one and five-hundredths (1.05); multiplied by
(2) the amount the township contracted or billed to receive,
regardless of whether the amount was collected:
(A) in the year in which the change is elected; and
(B) as fire protection or emergency service payments from the
municipalities or residents of the municipalities covered by the
election under section 3(c) of this chapter.
The maximum permissible levy for a general fund or other fund of a
municipality covered by the election under section 3(c) of this chapter
shall be reduced for the ensuing calendar year to reflect the change to
HEA 1120 — CC 1 107
allowing the township to impose a property tax levy on the taxable
property located within the corporate boundaries of the municipality.
The total reduction in the maximum permissible levies for all electing
municipalities must equal the amount that the maximum permissible
levy for the township described in section 4(b)(1) 4(c)(1) of this
chapter or the combined levies described in section 4(b)(2) 4(c)(2) of
this chapter, as applicable, is increased under this subsection for
contracts or billings, regardless of whether the amount was collected,
less the amount actually paid from sources other than property tax
revenue.
(b) For purposes of determining a township's and each
municipality's maximum permissible ad valorem property tax levy
under IC 6-1.1-18.5-3 for years following the first year after the year in
which the change is elected, a township's and each municipality's
maximum permissible ad valorem property tax levy is the levy (or in
the case of a township electing to establish levies described in section
4(b)(2) 4(c)(2) of this chapter, the combined levies) after the
adjustment made under subsection (a).
(c) The township may use the amount of a maximum permissible
property tax levy (or in the case of a township electing to establish
levies described in section 4(b)(2) 4(c)(2) of this chapter, the combined
levies) computed under this section in setting budgets and property tax
levies for any year in which the election in section 3(c) of this chapter
is in effect.
(d) Section 4.6 of this chapter does not apply to a property tax levy
or a maximum property tax levy subject to this section.
SECTION 61. [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 or before December 31, 2024.
(c) This SECTION expires July 1, 2025.
SECTION 62. [EFFECTIVE UPON PASSAGE] (a)
HEA 1120 — CC 1 108
Notwithstanding the two million five hundred thousand dollars
($2,500,000) per county maximum grant amount specified in
P.L.201-2023, SECTION 3 (HEA 1001-2023) that may be awarded
from the ten million dollar ($10,000,000) appropriation for the
state fiscal year ending June 30, 2024, for regional mental health
facility grants to counties for use in constructing new facilities or
renovating existing facilities to provide mental health services for
incarcerated individuals, the maximum grant amount for those
grants awarded after December 31, 2024, shall instead be five
million dollars ($5,000,000) per county.
(b) This SECTION expires July 1, 2026.
SECTION 63. [EFFECTIVE UPON PASSAGE] (a) Not later than
December 31, 2024, the office of the secretary of family and social
services shall prepare and present to the budget committee a policy
that shall be implemented to set a required minimum percentage
of the reimbursement for personal care services, including
structured family caregiving and attendant care, under the home
and community-based services waivers that must be paid to the
individual providing the direct service.
(b) Not later than November 1, 2024, the office of the secretary
of family and social services shall prepare and present to the
Medicaid oversight committee established by IC 2-5-54-2 a detailed
plan for monitoring expenses of the complete Medicaid program.
The plan and presentation must include information concerning
the following:
(1) Monitoring plans specific to the managed care programs
and the waiver programs.
(2) Information detailing how the office of the secretary of
family and social services will improve transparency
concerning Medicaid expenditures.
(3) A report of the agency's compliance with IC 12-15-27.
(4) An explanation of the issues that led to the deviations in
the presentation of Medicaid projections in the December
2023 budget committee meeting and improvements made to
the process of projecting program expenditures going
forward.
(5) Information concerning the transition from attendant care
provided by a legally responsible individual, as defined by the
office of the secretary of family and social services, to
structured family caregiving and the impact to families.
(c) This SECTION expires July 1, 2025.
SECTION 64. P.L.163-2023, SECTION 1, IS AMENDED TO
HEA 1120 — CC 1 109
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: SECTION
1. (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.
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(f) The following apply to the mileage, per diem, and travel
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
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($0.80) per one hundred dollars ($100) of assessed value;
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.
(4) The maximum levy growth quotient formula.
(5) The use of an influence factor or assessed value deduction
for assessment of excess residential acreage.
(6) The movement of parcels between allocation areas.
(7) The agricultural land base rate formula.
(8) The use of debt by school corporations.
(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.
SECTION 65. An emergency is declared for this act.
HEA 1120 — CC 1 Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
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