Indiana 2025 Regular Session

Indiana House Bill HB1229 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1229
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 3-8-1-23; IC 3-10-2-13; IC 3-11-2-12;
7	7	IC 3-13-10-3; IC 6-1.1; IC 6-1.2; IC 6-2.5; IC 6-3.6-5-1;
8	8	IC 8-22-3.5-0.5; IC 20-46; IC 36-2-15; IC 36-6-5; IC 36-7;
9	9	IC 36-7.5-4.5-0.2.
10	10	Synopsis: Local government finance. Abolishes the assessment of
11	11	tangible property after December 31, 2025, and the imposition of
12	12	property taxes after December 31, 2026. Provides that a political
13	13	subdivision may not issue any new bonds, notes, or warrants, or enter
14	14	into any leases or obligations to be paid from property tax revenue, or
15	15	that include a pledge to levy property taxes if other funds are
16	16	insufficient. Provides that: (1) no property tax increment financing
17	17	district or allocation area may be established, amended, or renewed;
18	18	and (2) no bonds, leases, or other obligations may be issued, entered
19	19	into, or extended for a property tax increment financing district or
20	20	allocation area. Provides that a school corporation may impose an
21	21	annual fee to replace the loss of revenue previously collected by the
22	22	school corporation from the imposition of an operating referendum tax
23	23	levy or school safety referendum tax levy. Prescribes procedures for the
24	24	fixing and reviewing of a political subdivision's budget. Prohibits the
25	25	imposition of new levies for controlled projects, operating referenda,
26	26	and school safety referenda. Abolishes the offices of county assessor
27	27	and township assessor. Extends the sales and use tax application to
28	28	(Continued next page)
29	29	Effective: Upon passage; July 1, 2025; July 1, 2026; January 1, 2027.
30	30	Prescott, Haggard
31	31	January 9, 2025, read first time and referred to Committee on Ways and Means.
32	32	2025 IN 1229—LS 7042/DI 125 Digest Continued
33	33	transactions involving services, except for health or mental health
34	34	services (including insurance premiums for policies covering these
35	35	services) and services provided for charitable tax exempt purposes.
36	36	Establishes the local revenue sharing fund (fund) into which revenue
37	37	from the portion of revenue from the extended sales and use tax is to
38	38	be deposited. Requires the state comptroller to distribute to taxing units
39	39	the portion of all the state sales and use tax revenue attributable to
40	40	services from the fund. Continually appropriates money from the fund.
41	41	Requires the legislative services agency to prepare legislation for
42	42	introduction in the 2026 regular session of the general assembly to
43	43	make appropriate required changes in statutes. Makes corresponding
44	44	changes.
45	45	2025 IN 1229—LS 7042/DI 1252025 IN 1229—LS 7042/DI 125 Introduced
46	46	First Regular Session of the 124th General Assembly (2025)
47	47	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
48	48	Constitution) is being amended, the text of the existing provision will appear in this style type,
49	49	additions will appear in this style type, and deletions will appear in this style type.
50	50	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
51	51	provision adopted), the text of the new provision will appear in this style type. Also, the
52	52	word NEW will appear in that style type in the introductory clause of each SECTION that adds
53	53	a new provision to the Indiana Code or the Indiana Constitution.
54	54	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
55	55	between statutes enacted by the 2024 Regular Session of the General Assembly.
56	56	HOUSE BILL No. 1229
57	57	A BILL FOR AN ACT to amend the Indiana Code concerning
58	58	taxation and to make an appropriation.
59	59	Be it enacted by the General Assembly of the State of Indiana:
60	60	1 SECTION 1. IC 3-8-1-23, AS AMENDED BY P.L.167-2015,
61	61	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
62	62	3 JULY 1, 2025]: Sec. 23. This section does not apply to elections in
63	63	4 2026 and thereafter. A candidate for the office of county assessor
64	64	5 must satisfy the following:
65	65	6 (1) The candidate must have resided in the county for at least one
66	66	7 (1) year before the election, as provided in Article 6, Section 4 of
67	67	8 the Constitution of the State of Indiana.
68	68	9 (2) The candidate must own real property located in the county
69	69	10 upon taking office.
70	70	11 SECTION 2. IC 3-10-2-13, AS AMENDED BY P.L.278-2019,
71	71	12 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
72	72	13 JULY 1, 2025]: Sec. 13. The following public officials shall be elected
73	73	14 at the general election before their terms of office expire and every four
74	74	15 (4) years thereafter:
75	75	2025 IN 1229—LS 7042/DI 125 2
76	76	1 (1) Clerk of the circuit court.
77	77	2 (2) County auditor.
78	78	3 (3) County recorder.
79	79	4 (4) County treasurer.
80	80	5 (5) County sheriff.
81	81	6 (6) County coroner.
82	82	7 (7) County surveyor.
83	83	8 (8) County assessor. This subdivision does not apply to
84	84	9 elections in 2026 and thereafter.
85	85	10 (9) County commissioner.
86	86	11 (10) County council member.
87	87	12 (11) Township trustee.
88	88	13 (12) Township board member.
89	89	14 (13) Township assessor (only in a township referred to in
90	90	15 IC 36-6-5-1(d)). This subdivision does not apply to elections in
91	91	16 2026 and thereafter.
92	92	17 (14) Judge of a small claims court.
93	93	18 (15) Constable of a small claims court.
94	94	19 SECTION 3. IC 3-11-2-12, AS AMENDED BY P.L.227-2023,
95	95	20 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
96	96	21 JULY 1, 2025]: Sec. 12. (a) The following offices shall be placed on
97	97	22 the general election ballot in the following order after the public
98	98	23 questions described in section 10(a) of this chapter:
99	99	24 (1) Federal and state offices:
100	100	25 (A) President and Vice President of the United States.
101	101	26 (B) United States Senator.
102	102	27 (C) Governor and lieutenant governor.
103	103	28 (D) Secretary of state.
104	104	29 (E) Auditor of state.
105	105	30 (F) Treasurer of state.
106	106	31 (G) Attorney general.
107	107	32 (H) United States Representative. If an election to fill a
108	108	33 vacancy in an office of United States Representative under
109	109	34 IC 3-10-8 is held on the same day as the election for the next
110	110	35 term of the same office, the ballot shall list the election to fill
111	111	36 the vacancy in the office immediately after the election for the
112	112	37 next term of the office.
113	113	38 (2) Legislative offices:
114	114	39 (A) State senator.
115	115	40 (B) State representative.
116	116	41 (3) Circuit offices and county judicial offices:
117	117	42 (A) Judge of the circuit court, and unless otherwise specified
118	118	2025 IN 1229—LS 7042/DI 125 3
119	119	1 under IC 33, with each division separate if there is more than
120	120	2 one (1) judge of the circuit court.
121	121	3 (B) Judge of the superior court, and unless otherwise specified
122	122	4 under IC 33, with each division separate if there is more than
123	123	5 one (1) judge of the superior court.
124	124	6 (C) Judge of the probate court.
125	125	7 (D) Prosecuting attorney.
126	126	8 (E) Clerk of the circuit court.
127	127	9 (4) County offices:
128	128	10 (A) County auditor.
129	129	11 (B) County recorder.
130	130	12 (C) County treasurer.
131	131	13 (D) County sheriff.
132	132	14 (E) County coroner.
133	133	15 (F) County surveyor.
134	134	16 (G) County assessor. This clause does not apply to elections
135	135	17 in 2026 and thereafter.
136	136	18 (H) County commissioner.
137	137	19 (I) County council member.
138	138	20 (5) Township offices:
139	139	21 (A) Township assessor (only in a township referred to in
140	140	22 IC 36-6-5-1(d)). This clause does not apply to elections in
141	141	23 2026 and thereafter.
142	142	24 (B) Township trustee.
143	143	25 (C) Township board member.
144	144	26 (D) Judge of the small claims court.
145	145	27 (E) Constable of the small claims court.
146	146	28 (6) City offices:
147	147	29 (A) Mayor.
148	148	30 (B) Clerk or clerk-treasurer.
149	149	31 (C) Judge of the city court.
150	150	32 (D) City-county council member or common council member.
151	151	33 (7) Town offices:
152	152	34 (A) Clerk-treasurer.
153	153	35 (B) Judge of the town court.
154	154	36 (C) Town council member.
155	155	37 (b) If a major political party does not nominate a candidate for an
156	156	38 office on a general, municipal, or special election ballot then the county
157	157	39 election board may print "NO CANDIDATE FILED" in the place on
158	158	40 the ballot where the name of the major political party's nominee would
159	159	41 be printed.
160	160	42 SECTION 4. IC 3-13-10-3 IS REPEALED [EFFECTIVE JULY 1,
161	161	2025 IN 1229—LS 7042/DI 125 4
162	162	1 2025]. Sec. 3. (a) This section applies to a vacancy in the office of
163	163	2 township assessor not covered by section 1 of this chapter.
164	164	3 (b) A vacancy shall be filled by the county assessor, subject to the
165	165	4 approval of the department of local government finance. Except as
166	166	5 provided in subsection (c), the county assessor shall make the
167	167	6 appointment not later than thirty (30) days after the vacancy occurs. If
168	168	7 the vacancy occurred because the elected township assessor failed to
169	169	8 qualify or was removed, the person who is appointed must be of the
170	170	9 same political party as the elected township assessor.
171	171	10 (c) If a vacancy exists because of the death of the township assessor,
172	172	11 the county assessor shall make the appointment required by subsection
173	173	12 (b) not later than thirty (30) days after the county assessor receives
174	174	13 notice of the death under IC 5-8-6. The county assessor may not fill the
175	175	14 vacancy as required by subsection (b) until the county assessor receives
176	176	15 notice of the death under IC 5-8-6.
177	177	16 SECTION 5. IC 6-1.1-1-24 IS REPEALED [EFFECTIVE JULY 1,
178	178	17 2025]. Sec. 24. If a transfer from a township assessor to the county
179	179	18 assessor of the assessment duties prescribed by this article occurs as
180	180	19 described in IC 36-2-15-5(c), a reference to the township assessor in
181	181	20 this article is considered to be a reference to the county assessor.
182	182	21 SECTION 6. IC 6-1.1-2-1 IS AMENDED TO READ AS
183	183	22 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 1. (a) Except as
184	184	23 otherwise provided by law, Before January 1, 2026, and subject to
185	185	24 subsection (b), all tangible property which is within the jurisdiction of
186	186	25 this state on the assessment date of a year is subject to assessment and
187	187	26 taxation for that year. Notwithstanding any other law, tangible
188	188	27 property which is within the jurisdiction of this state may not be
189	189	28 assessed after December 31, 2025, and property taxes on tangible
190	190	29 property may not be first imposed or first due after December 31,
191	191	30 2026.
192	192	31 (b) Nothing in this section may be construed as limiting or
193	193	32 otherwise affecting:
194	194	33 (1) the collection of any property taxes or penalties imposed;
195	195	34 or
196	196	35 (2) any property tax exemptions or property tax deductions
197	197	36 allowed;
198	198	37 under this article or any other law before January 1, 2027.
199	199	38 SECTION 7. IC 6-1.1-2-1.5, AS ADDED BY P.L.111-2014,
200	200	39 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
201	201	40 JULY 1, 2025]: Sec. 1.5. (a) Except as provided in subsection (b), the
202	202	41 annual assessment date for tangible property is:
203	203	42 (1) March 1 in a year ending before January 1, 2016; and
204	204	2025 IN 1229—LS 7042/DI 125 5
205	205	1 (2) January 1 in a year beginning after December 31, 2015, and
206	206	2 ending before January 1, 2026.
207	207	3 (b) This subsection applies to mobile homes (including
208	208	4 manufactured homes) subject to assessment under IC 6-1.1-7. Mobile
209	209	5 homes are assessed in the year following the year containing the related
210	210	6 assessment date for other property. The annual assessment date for
211	211	7 mobile homes is:
212	212	8 (1) January 15 in a year ending before January 1, 2017; and
213	213	9 (2) January 1 in a year beginning after December 31, 2016, and
214	214	10 ending before January 1, 2026.
215	215	11 SECTION 8. IC 6-1.1-2-3 IS REPEALED [EFFECTIVE JANUARY
216	216	12 1, 2027]. Sec. 3. The total tax rate to be imposed on each one hundred
217	217	13 dollars ($100) of the assessed value of property shall be determined in
218	218	14 the manner provided by law. Property tax revenues shall be used for
219	219	15 state expenditures and for the support of the political subdivisions of
220	220	16 this state.
221	221	17 SECTION 9. IC 6-1.1-3-1, AS AMENDED BY P.L.249-2015,
222	222	18 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
223	223	19 JULY 1, 2025]: Sec. 1. (a) Before January 1, 2026, and except as
224	224	20 provided in subsection (c), personal property which is owned by a
225	225	21 person who is a resident of this state shall be assessed at the place
226	226	22 where the owner resides on the assessment date of the year for which
227	227	23 the assessment is made.
228	228	24 (b) Before January 1, 2026, and except as provided in subsection
229	229	25 (c), personal property which is owned by a person who is not a resident
230	230	26 of this state shall be assessed at the place where the owner's principal
231	231	27 office within this state is located on the assessment date of the year for
232	232	28 which the assessment is made.
233	233	29 (c) Before January 1, 2026, personal property shall be assessed at
234	234	30 the place where it is situated on the assessment date of the year for
235	235	31 which the assessment is made if the property is:
236	236	32 (1) regularly used or permanently located where it is situated; or
237	237	33 (2) owned by a nonresident who does not have a principal office
238	238	34 within this state.
239	239	35 (d) If a personal property return is filed pursuant to subsection (c),
240	240	36 the owner of the property shall provide, within forty-five (45) days after
241	241	37 the filing deadline, a copy or other written evidence of the filing of the
242	242	38 return to the assessor of the county in which the owner resides. If such
243	243	39 evidence is not filed within forty-five (45) days after the filing
244	244	40 deadline, the county assessor for the area where the owner resides shall
245	245	41 determine if the owner filed a personal property return in the township
246	246	42 or county where the property is situated. If such a return was filed, the
247	247	2025 IN 1229—LS 7042/DI 125 6
248	248	1 property shall be assessed where it is situated. If such a return was not
249	249	2 filed, the county assessor for the area where the owner resides shall
250	250	3 notify the assessor of the township or county where the property is
251	251	4 situated, and the property shall be assessed where it is situated. This
252	252	5 subsection does not apply to a taxpayer who is required by the
253	253	6 department of local government finance to file a summary of the
254	254	7 taxpayer's business tangible personal property returns.
255	255	8 SECTION 10. IC 6-1.1-15-1.1, AS AMENDED BY P.L.9-2024,
256	256	9 SECTION 167, IS AMENDED TO READ AS FOLLOWS
257	257	10 [EFFECTIVE UPON PASSAGE]: Sec. 1.1. (a) A taxpayer may appeal
258	258	11 an assessment of a taxpayer's tangible property by filing a notice in
259	259	12 writing with, before May 10, 2025, the township assessor, or the
260	260	13 county assessor if the township is not served by a township assessor,
261	261	14 and after May 9, 2025, with the county auditor. Except as provided
262	262	15 in subsections (e) and (h), an appeal under this section may raise any
263	263	16 claim of an error related to the following:
264	264	17 (1) The assessed value of the property.
265	265	18 (2) The assessment was against the wrong person.
266	266	19 (3) The approval denial or omission of a deduction, credit,
267	267	20 exemption, abatement, or tax cap.
268	268	21 (4) A clerical, mathematical, or typographical mistake.
269	269	22 (5) The description of the real property.
270	270	23 (6) The legality or constitutionality of a property tax or
271	271	24 assessment.
272	272	25 A written notice under this section must be made on a form designated
273	273	26 by the department of local government finance. A taxpayer must file a
274	274	27 separate petition for each parcel.
275	275	28 (b) A taxpayer may appeal an error in the assessed value of the
276	276	29 property under subsection (a)(1) any time after the official's action, but
277	277	30 not later than the following:
278	278	31 (1) For assessments before January 1, 2019, the earlier of:
279	279	32 (A) forty-five (45) days after the date on which the notice of
280	280	33 assessment is mailed by the county; or
281	281	34 (B) forty-five (45) days after the date on which the tax
282	282	35 statement is mailed by the county treasurer, regardless of
283	283	36 whether the assessing official changes the taxpayer's
284	284	37 assessment.
285	285	38 (2) For assessments of real property, after December 31, 2018, the
286	286	39 earlier of:
287	287	40 (A) June 15 of the assessment year, if the notice of assessment
288	288	41 is mailed by the county before May 1 of the assessment year;
289	289	42 or
290	290	2025 IN 1229—LS 7042/DI 125 7
291	291	1 (B) June 15 of the year in which the tax statement is mailed by
292	292	2 the county treasurer, if the notice of assessment is mailed by
293	293	3 the county on or after May 1 of the assessment year.
294	294	4 (3) For assessments of personal property, forty-five (45) days after
295	295	5 the date on which the county mails the notice under
296	296	6 IC 6-1.1-3-20.
297	297	7 A taxpayer may appeal an error in the assessment under subsection
298	298	8 (a)(2), (a)(3), (a)(4), (a)(5), or (a)(6) not later than three (3) years after
299	299	9 the taxes were first due.
300	300	10 (c) Except as provided in subsection (d), an appeal under this
301	301	11 section applies only to the tax year corresponding to the tax statement
302	302	12 or other notice of action.
303	303	13 (d) An appeal under this section applies to a prior tax year if a
304	304	14 county official took action regarding a prior tax year, and such action
305	305	15 is reflected for the first time in the tax statement. A taxpayer who has
306	306	16 timely filed a written notice of appeal under this section may be
307	307	17 required to file a petition for each tax year, and each petition filed later
308	308	18 must be considered timely.
309	309	19 (e) A taxpayer may not appeal under this section any claim of error
310	310	20 related to the following:
311	311	21 (1) The denial of a deduction, exemption, abatement, or credit if
312	312	22 the authority to approve or deny is not vested in the county board,
313	313	23 county auditor, county assessor, or township assessor.
314	314	24 (2) The calculation of interest and penalties.
315	315	25 (3) A matter under subsection (a) if a separate appeal or review
316	316	26 process is statutorily prescribed.
317	317	27 However, a claim may be raised under this section regarding the
318	318	28 omission or application of a deduction approved by an authority other
319	319	29 than the county board, county auditor, county assessor, or township
320	320	30 assessor.
321	321	31 (f) The filing of a written notice under this section constitutes a
322	322	32 request by the taxpayer for a preliminary informal meeting with:
323	323	33 (1) in the case of a notice filed before May 10, 2025, the
324	324	34 township assessor, or the county assessor if the township is not
325	325	35 served by a township assessor; and
326	326	36 (2) in the case of a notice filed after May 9, 2025, the county
327	327	37 auditor.
328	328	38 (g) A county or township official, or county auditor, as applicable,
329	329	39 who receives a written notice under this section shall forward the
330	330	40 notice to:
331	331	41 (1) the county board; and
332	332	42 (2) in the case of a notice filed with a county or township
333	333	2025 IN 1229—LS 7042/DI 125 8
334	334	1 official before May 10, 2025, the county auditor. if the taxpayer
335	335	2 raises a claim regarding a matter that is in the discretion of the
336	336	3 county auditor.
337	337	4 (h) A taxpayer may not raise any claim in an appeal under this
338	338	5 section related to the legality or constitutionality of:
339	339	6 (1) a user fee (as defined in IC 33-23-1-10.5);
340	340	7 (2) any other charge, fee, or rate imposed by a political
341	341	8 subdivision under any other law; or
342	342	9 (3) any tax imposed by a political subdivision other than a
343	343	10 property tax.
344	344	11 (i) This subsection applies only to an appeal based on a claim of
345	345	12 error in the determination of property that is or is not eligible for a
346	346	13 standard homestead deduction under IC 6-1.1-12-37 and only for an
347	347	14 assessment date occurring before January 1, 2024. A taxpayer may
348	348	15 appeal an error in the assessment of property as described in this
349	349	16 subsection any time after the official's action, but not later than one (1)
350	350	17 year after the date on which the property that is the subject of the
351	351	18 appeal was assessed.
352	352	19 SECTION 11. IC 6-1.1-15-1.2, AS AMENDED BY P.L.9-2024,
353	353	20 SECTION 168, IS AMENDED TO READ AS FOLLOWS
354	354	21 [EFFECTIVE UPON PASSAGE]: Sec. 1.2. (a) A county or township
355	355	22 official, or county auditor, as applicable, who receives a written
356	356	23 notice under section 1.1 of this chapter shall schedule, at a time during
357	357	24 business hours that is convenient to the taxpayer, a preliminary
358	358	25 informal meeting with the taxpayer in order to resolve the appeal. If the
359	359	26 taxpayer raises a claim regarding a matter that is in the discretion of the
360	360	27 county auditor, the An informal meeting held after May 9, 2025, must
361	361	28 include the county auditor, if the county auditor did not receive the
362	362	29 written notice under section 1.1 of this chapter. At the preliminary
363	363	30 informal meeting, in order to facilitate understanding and the resolution
364	364	31 of disputed issues:
365	365	32 (1) a county or township official;
366	366	33 (2) the county auditor; if the matter is in the discretion of the
367	367	34 county auditor; and
368	368	35 (3) the taxpayer;
369	369	36 shall exchange the information that each party is relying on at the time
370	370	37 of the preliminary informal meeting to support the party's respective
371	371	38 position on each disputed issue concerning the assessment or
372	372	39 deduction. If additional information is obtained by the county or
373	373	40 township official, the county auditor, or the taxpayer after the
374	374	41 preliminary informal meeting and before the hearing held by the county
375	375	42 board, the party obtaining the information shall provide the information
376	376	2025 IN 1229—LS 7042/DI 125 9
377	377	1 to the other party. If the county or township official, the county auditor,
378	378	2 or the taxpayer obtains additional information and provides the
379	379	3 information to the other party for the first time at the hearing held by
380	380	4 the county board, the county board, unless waived by the receiving
381	381	5 party, shall continue the hearing until a future hearing date of the
382	382	6 county board so that the receiving party has an opportunity to review
383	383	7 all the information that the offering party is relying on to support the
384	384	8 offering party's positions on the disputed issues concerning the
385	385	9 assessment or deduction.
386	386	10 (b) The official or county auditor, as applicable, shall report on a
387	387	11 form prescribed by the department of local government finance the
388	388	12 results of the informal meeting. If the taxpayer and the official or
389	389	13 county auditor, as applicable, agree on the resolution of all issues in
390	390	14 the appeal, the report shall state the agreed resolution of the matter and
391	391	15 be signed by the official or county auditor, as applicable, and the
392	392	16 taxpayer. If an informal meeting is not held, or the informal meeting is
393	393	17 unsuccessful, the official or county auditor, as applicable, shall
394	394	18 report those facts on the form. The official or county auditor, as
395	395	19 applicable, shall forward the report on the informal meeting to the
396	396	20 county board.
397	397	21 (c) If the county board receives a report on the informal meeting
398	398	22 indicating an agreed resolution of the matter, the county board shall
399	399	23 vote to accept or deny the agreed resolution. If the county board accepts
400	400	24 the agreed resolution, the county board shall issue a notification of final
401	401	25 assessment determination adopting the agreed resolution and vacating
402	402	26 the hearing if scheduled.
403	403	27 (d) The county board, upon receipt of a written notice under section
404	404	28 1.1 of this chapter, shall hold a hearing on the appeal not later than one
405	405	29 hundred eighty (180) days after the filing date of the written notice.
406	406	30 The county board shall, by mail, give at least thirty (30) days notice of
407	407	31 the date, time, and place fixed for the hearing to the taxpayer, the
408	408	32 county or township official with whom the taxpayer filed the written
409	409	33 notice, and the county auditor. If the county board has notice that the
410	410	34 taxpayer is represented by a third person, any hearing notice shall be
411	411	35 mailed to the representative.
412	412	36 (e) If good cause is shown, the county board shall grant a request for
413	413	37 continuance filed in writing at least ten (10) days before the hearing,
414	414	38 and reschedule the hearing under subsection (d).
415	415	39 (f) A taxpayer may withdraw an appeal by filing a written request
416	416	40 at least ten (10) days before the hearing. The county board shall issue
417	417	41 a notification of final assessment determination indicating the
418	418	42 withdrawal and no change in the assessment. A withdrawal waives a
419	419	2025 IN 1229—LS 7042/DI 125 10
420	420	1 taxpayer's right to appeal to the Indiana board.
421	421	2 (g) The county board shall determine an appeal without a hearing if
422	422	3 requested by the taxpayer in writing at least twenty (20) days before the
423	423	4 hearing.
424	424	5 (h) If a taxpayer appeals the assessment of tangible property under
425	425	6 section 1.1 of this chapter, the taxpayer is not required to have an
426	426	7 appraisal of the property in order to initiate the appeal or prosecute the
427	427	8 appeal. If the taxpayer presents an appraisal to the county board that:
428	428	9 (1) is prepared by a certified appraiser in compliance with the
429	429	10 Uniform Standards of Professional Appraisal Practice to
430	430	11 determine the market value in use;
431	431	12 (2) is addressed to the property owner or the assessor's office;
432	432	13 (3) is commissioned for the purpose of the assessment appeal; and
433	433	14 (4) has an effective date that is the same date as the date of the
434	434	15 assessment that is the subject of the appeal;
435	435	16 the value of the property contained in the appraisal is presumed to be
436	436	17 correct. If the county board disagrees with the taxpayer's appraisal, the
437	437	18 county board may seek review of the appraisal by a third party
438	438	19 independent certified appraiser or obtain an independent appraisal
439	439	20 report conducted by a certified appraiser in compliance with the
440	440	21 Uniform Standards of Professional Appraisal Practice. If the county
441	441	22 board's appraisal differs from the taxpayer's appraisal, the county board
442	442	23 shall weigh the evidence and determine the true tax value of the
443	443	24 property based on the totality of the probative evidence before the
444	444	25 county board. The county board's determination of the property's true
445	445	26 tax value may be higher or lower than the assessment but may not be
446	446	27 lower than the lowest appraisal presented to or obtained by the county
447	447	28 board, or higher than the highest appraisal presented to or obtained by
448	448	29 the county board. After the assignment of value, the parties shall retain
449	449	30 their rights to appeal the assessment or assessments to the Indiana
450	450	31 board, which must hear the appeal de novo.
451	451	32 (i) At a hearing under subsection (d), the taxpayer shall have the
452	452	33 opportunity to present testimony and evidence regarding the matters on
453	453	34 appeal. If the matters on appeal are in the discretion of the county
454	454	35 auditor, The county auditor or the county auditor's representative shall
455	455	36 attend the hearing. A county or township official, or the county auditor
456	456	37 or the county auditor's representative, shall have an opportunity to
457	457	38 present testimony and evidence regarding the matters on appeal. The
458	458	39 county board may adjourn and continue the hearing to a later date in
459	459	40 order to make a physical inspection or consider the evidence presented.
460	460	41 (j) The county board shall determine the assessment by motion and
461	461	42 majority vote. Except as provided in subsection (m), a county board
462	462	2025 IN 1229—LS 7042/DI 125 11
463	463	1 may, based on the evidence before it, increase an assessment. The
464	464	2 county board shall issue a written decision. Written notice of the
465	465	3 decision shall be given to the township official, county official, county
466	466	4 auditor, and the taxpayer.
467	467	5 (k) If more than one hundred eighty (180) days have passed since
468	468	6 the date the notice of appeal was filed, and the county board has not
469	469	7 issued a determination, a taxpayer may initiate any appeal with the
470	470	8 Indiana board of tax review under section 3 of this chapter.
471	471	9 (l) The county assessor or county auditor, as applicable, may
472	472	10 assess a penalty of fifty dollars ($50) against the taxpayer if the
473	473	11 taxpayer or representative fails to appear at a hearing under subsection
474	474	12 (d) and, under subsection (e), the taxpayer's request for continuance is
475	475	13 denied, or the taxpayer's request for continuance, request for the board
476	476	14 to take action without a hearing, or withdrawal is not timely filed. A
477	477	15 taxpayer may appeal the assessment of the penalty to the Indiana board
478	478	16 or directly to the tax court. The penalty may not be added as an amount
479	479	17 owed on the property tax statement under IC 6-1.1-22 or IC 6-1.1-22.5.
480	480	18 (m) The determination of an appealed assessed value of tangible
481	481	19 property by a county or township official, or county auditor, as
482	482	20 applicable, resulting from an informal meeting under subsection (a),
483	483	21 or by a county board resulting from an appeal hearing under subsection
484	484	22 (d), may be less than or equal to the tangible property's original
485	485	23 appealed assessed value at issue, but may not exceed the original
486	486	24 appealed assessed value at issue. However, an increase in assessed
487	487	25 value that is attributable to substantial renovation, new improvements,
488	488	26 zoning change, or use change is excluded from the limitation under this
489	489	27 subsection.
490	490	28 SECTION 12. IC 6-1.1-15-3, AS AMENDED BY P.L.154-2020,
491	491	29 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
492	492	30 UPON PASSAGE]: Sec. 3. (a) A taxpayer may obtain a review by the
493	493	31 Indiana board of:
494	494	32 (1) a county board's action with respect to a claim under section
495	495	33 1.1 of this chapter; or
496	496	34 (2) a denial by the county auditor, the county assessor, or the
497	497	35 county treasurer of a claim for refund under IC 6-1.1-9-10(c)(2)
498	498	36 that is appealed to the Indiana board as authorized in
499	499	37 IC 6-1.1-26-2.1(d)(2).
500	500	38 (b) The county assessor (before the abolishment of the office) and
501	501	39 the county auditor is the party are parties to a review under
502	502	40 subsection (a)(1) to defend the determination of the county board. The
503	503	41 county auditor may appear as an additional party to the review if the
504	504	42 determination concerns a matter that is in the discretion of the county
505	505	2025 IN 1229—LS 7042/DI 125 12
506	506	1 auditor. At the time the notice of that determination is given to the
507	507	2 taxpayer, the taxpayer shall also be informed in writing of:
508	508	3 (1) the taxpayer's opportunity for review under subsection (a)(1);
509	509	4 and
510	510	5 (2) the procedures the taxpayer must follow in order to obtain
511	511	6 review under this section.
512	512	7 (c) A county assessor or county auditor who dissents from the
513	513	8 determination of the county board may obtain a review by the Indiana
514	514	9 board. A county auditor who dissents from the determination of the
515	515	10 county board concerning a matter that is in the discretion of the county
516	516	11 auditor may obtain a review by the Indiana board.
517	517	12 (d) In order to obtain a review by the Indiana board under
518	518	13 subsection (a)(1), the party must, not later than forty-five (45) days
519	519	14 after the date of the notice given to the party or parties of the
520	520	15 determination of the county board:
521	521	16 (1) file a petition for review with the Indiana board; and
522	522	17 (2) mail a copy of the petition to the other party.
523	523	18 (e) The Indiana board shall prescribe the form of the petition for
524	524	19 review under this chapter. The Indiana board shall issue instructions for
525	525	20 completion of the form. The form and the instructions must be clear,
526	526	21 simple, and understandable to the average individual. A petition for
527	527	22 review of such a determination must be made on the form prescribed
528	528	23 by the Indiana board. The form must require the petitioner to specify
529	529	24 the reasons why the petitioner believes that the determination by the
530	530	25 county board is erroneous.
531	531	26 (f) If the action for which a taxpayer seeks review under this section
532	532	27 is the assessment of tangible property, the taxpayer is not required to
533	533	28 have an appraisal of the property in order to do the following:
534	534	29 (1) Initiate the review.
535	535	30 (2) Prosecute the review.
536	536	31 (g) If an owner petitions the Indiana board under IC 6-1.1-11-7(d),
537	537	32 the Indiana board is authorized to approve or disapprove an exemption
538	538	33 application:
539	539	34 (1) previously submitted to a county board under IC 6-1.1-11-6;
540	540	35 and
541	541	36 (2) that is not approved or disapproved by the county board within
542	542	37 one hundred eighty (180) days after the owner filed the
543	543	38 application for exemption under IC 6-1.1-11.
544	544	39 The county assessor (before the abolishment of the office) and after
545	545	40 May 9, 2025, the county auditor, is a party are parties to a petition
546	546	41 to the Indiana board under IC 6-1.1-11-7(d).
547	547	42 (h) This subsection applies only to the review by the Indiana board
548	548	2025 IN 1229—LS 7042/DI 125 13
549	549	1 of a denial of a refund claim described in subsection (a)(2). The county
550	550	2 assessor (before the abolishment of the office) and after May 9,
551	551	3 2025, the county auditor, is the party are parties to a review under
552	552	4 subsection (a)(2) to defend the denial of the refund under
553	553	5 IC 6-1.1-26-2.1. In order to obtain a review by the Indiana board under
554	554	6 subsection (a)(2), the taxpayer must, within forty-five (45) days of the
555	555	7 notice of denial under IC 6-1.1-26-2.1(d):
556	556	8 (1) file a petition for review with the Indiana board; and
557	557	9 (2) mail a copy of the petition to the county auditor.
558	558	10 SECTION 13. IC 6-1.1-15-4, AS AMENDED BY P.L.156-2020,
559	559	11 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
560	560	12 UPON PASSAGE]: Sec. 4. (a) After receiving a petition for review
561	561	13 which is filed under section 3 of this chapter, the Indiana board shall
562	562	14 conduct a hearing at its earliest opportunity. The Indiana board may
563	563	15 correct any errors related to a claim under section 1.1 of this chapter
564	564	16 that is within the jurisdiction of the Indiana board under IC 6-1.5-4-1.
565	565	17 (b) If the Indiana board conducts a site inspection of the property as
566	566	18 part of its review of the petition, the Indiana board shall give notice to
567	567	19 all parties of the date and time of the site inspection. The Indiana board
568	568	20 is not required to assess the property in question. The Indiana board
569	569	21 shall give notice of the date fixed for the hearing, by mail, to the parties
570	570	22 or a party's representative. The Indiana board shall give these notices
571	571	23 at least thirty (30) days before the day fixed for the hearing unless the
572	572	24 parties agree to a shorter period. With respect to a petition for review
573	573	25 filed by a county assessor or county auditor, the county board that
574	574	26 made the determination under review under this section may file an
575	575	27 amicus curiae brief in the review proceeding under this section. The
576	576	28 expenses incurred by the county board in filing the amicus curiae brief
577	577	29 shall be paid from the property reassessment fund under
578	578	30 IC 6-1.1-4-27.5 of the county in which the property is located. The
579	579	31 executive of a taxing unit may file an amicus curiae brief in the review
580	580	32 proceeding under this section if the property that is the subject of the
581	581	33 appeal is subject to assessment by that taxing unit.
582	582	34 (c) If a petition for review does not comply with the Indiana board's
583	583	35 instructions for completing the form prescribed under section 3 of this
584	584	36 chapter, the Indiana board shall return the petition to the petitioner and
585	585	37 include a notice describing the defect in the petition. The petitioner
586	586	38 then has thirty (30) days from the date on the notice to cure the defect
587	587	39 and file a corrected petition. The Indiana board shall deny a corrected
588	588	40 petition for review if it does not substantially comply with the Indiana
589	589	41 board's instructions for completing the form prescribed under section
590	590	42 3 of this chapter.
591	591	2025 IN 1229—LS 7042/DI 125 14
592	592	1 (d) After the hearing, the Indiana board shall give the parties and
593	593	2 any entity that filed an amicus curiae brief, or their representatives:
594	594	3 (1) notice, by mail, of its final determination; and
595	595	4 (2) for parties entitled to appeal the final determination, notice of
596	596	5 the procedures they must follow in order to obtain court review
597	597	6 under section 5 of this chapter.
598	598	7 (e) The Indiana board shall conduct a hearing not later than one (1)
599	599	8 year after a petition in proper form is filed with the Indiana board.
600	600	9 (f) The Indiana board shall issue a determination not later than the
601	601	10 later of:
602	602	11 (1) ninety (90) days after the hearing; or
603	603	12 (2) the date set in an extension order issued by the Indiana board.
604	604	13 The board may not extend the date by more than one hundred
605	605	14 eighty (180) days.
606	606	15 (g) The time periods described in subsections (e) and (f) do not
607	607	16 include any period of time that is attributable to a party's:
608	608	17 (1) request for a continuance, stay, extension, or summary
609	609	18 disposition;
610	610	19 (2) consent to a case management order, stipulated record, or
611	611	20 proposed hearing date;
612	612	21 (3) failure to comply with the board's orders or rules; or
613	613	22 (4) waiver of a deadline.
614	614	23 (h) If the Indiana board fails to take action required under
615	615	24 subsection (e) or (f), the entity that initiated the petition may:
616	616	25 (1) take no action and wait for the Indiana board to hear the
617	617	26 matter and issue a final determination; or
618	618	27 (2) petition for judicial review under section 5 of this chapter.
619	619	28 (i) This subsection applies when the board has not held a hearing.
620	620	29 A person may not seek judicial review under subsection (h)(2) until:
621	621	30 (1) the person requests a hearing in writing; and
622	622	31 (2) sixty (60) days have passed after the person requests a hearing
623	623	32 under subdivision (1) and the matter has not been heard or
624	624	33 otherwise extended under subsection (g).
625	625	34 (j) A final determination must include separately stated findings of
626	626	35 fact for all aspects of the determination. Findings of ultimate fact must
627	627	36 be accompanied by a concise statement of the underlying basic facts of
628	628	37 record to support the findings. Findings must be based exclusively
629	629	38 upon the evidence on the record in the proceeding and on matters
630	630	39 officially noticed in the proceeding. Findings must be based upon a
631	631	40 preponderance of the evidence.
632	632	41 (k) The Indiana board may limit the scope of the appeal to the issues
633	633	42 raised in the petition and the evaluation of the evidence presented to
634	634	2025 IN 1229—LS 7042/DI 125 15
635	635	1 the county board in support of those issues only if all parties
636	636	2 participating in the hearing required under subsection (a) agree to the
637	637	3 limitation. A party participating in the hearing required under
638	638	4 subsection (a) is entitled to introduce evidence that is otherwise proper
639	639	5 and admissible without regard to whether that evidence has previously
640	640	6 been introduced at a hearing before the county board.
641	641	7 (l) The Indiana board may require the parties to the appeal:
642	642	8 (1) to file not more than five (5) business days before the date of
643	643	9 the hearing required under subsection (a) documentary evidence
644	644	10 or summaries of statements of testimonial evidence; and
645	645	11 (2) to file not more than fifteen (15) business days before the date
646	646	12 of the hearing required under subsection (a) lists of witnesses and
647	647	13 exhibits to be introduced at the hearing.
648	648	14 (m) A party to a proceeding before the Indiana board shall provide
649	649	15 to all other parties to the proceeding the information described in
650	650	16 subsection (l) if the other party requests the information in writing at
651	651	17 least ten (10) days before the deadline for filing of the information
652	652	18 under subsection (l).
653	653	19 (n) The Indiana board may base its final determination on a
654	654	20 stipulation between the respondent and the petitioner. If the final
655	655	21 determination is based on a stipulated assessed valuation of tangible
656	656	22 property, the Indiana board may order the placement of a notation on
657	657	23 the permanent assessment record of the tangible property that the
658	658	24 assessed valuation was determined by stipulation. The Indiana board
659	659	25 may:
660	660	26 (1) order that a final determination under this subsection has no
661	661	27 precedential value; or
662	662	28 (2) specify a limited precedential value of a final determination
663	663	29 under this subsection.
664	664	30 (o) If a party to a proceeding, or a party's authorized representative,
665	665	31 elects to receive any notice under this section by electronic mail, the
666	666	32 notice is considered effective in the same manner as if the notice had
667	667	33 been sent by United States mail, with postage prepaid, to the party's or
668	668	34 representative's mailing address of record.
669	669	35 (p) At a hearing under this section, the Indiana board shall admit
670	670	36 into evidence an appraisal report, prepared by an appraiser, unless the
671	671	37 appraisal report is ruled inadmissible on grounds besides a hearsay
672	672	38 objection. This exception to the hearsay rule shall not be construed to
673	673	39 limit the discretion of the Indiana board, as trier of fact, to review the
674	674	40 probative value of an appraisal report.
675	675	41 SECTION 14. IC 6-1.1-15-5, AS AMENDED BY P.L.156-2020,
676	676	42 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
677	677	2025 IN 1229—LS 7042/DI 125 16
678	678	1 UPON PASSAGE]: Sec. 5. (a) Not later than fifteen (15) days after the
679	679	2 Indiana board gives notice of its final determination under section 4 of
680	680	3 this chapter to the party or the maximum allowable time for the
681	681	4 issuance of a final determination by the Indiana board under section 4
682	682	5 of this chapter expires, a party to the proceeding may request a
683	683	6 rehearing before the Indiana board. The Indiana board may conduct a
684	684	7 rehearing and affirm or modify its final determination, giving the same
685	685	8 notices after the rehearing as are required by section 4 of this chapter.
686	686	9 The Indiana board has fifteen (15) days after receiving a petition for a
687	687	10 rehearing to determine whether to grant a rehearing. Failure to grant a
688	688	11 rehearing not later than fifteen (15) days after receiving the petition
689	689	12 shall be treated as a final determination to deny the petition. A petition
690	690	13 for a rehearing does not toll the time in which to file a petition for
691	691	14 judicial review unless the petition for rehearing is granted. If the
692	692	15 Indiana board determines to rehear a final determination, the Indiana
693	693	16 board:
694	694	17 (1) may conduct the additional hearings that the Indiana board
695	695	18 determines necessary or review the written record without
696	696	19 additional hearings; and
697	697	20 (2) shall issue a final determination not later than ninety (90) days
698	698	21 after notifying the parties that the Indiana board will rehear the
699	699	22 final determination.
700	700	23 If the Indiana board fails to make a final determination within the time
701	701	24 allowed under subdivision (2), the entity that initiated the petition for
702	702	25 rehearing may take no action and wait for the Indiana board to make a
703	703	26 final determination or petition for judicial review under subsection (g).
704	704	27 (b) A party may petition for judicial review of the final
705	705	28 determination of the Indiana board. In order to obtain judicial review
706	706	29 under this section, a party must:
707	707	30 (1) file a petition with the Indiana tax court;
708	708	31 (2) serve a copy of the petition on:
709	709	32 (A) the parties to the review by the Indiana board;
710	710	33 (B) the attorney general; and
711	711	34 (C) any entity that filed an amicus curiae brief with the Indiana
712	712	35 board; and
713	713	36 (3) file a written notice of appeal with the Indiana board
714	714	37 informing the Indiana board of the party's intent to obtain judicial
715	715	38 review.
716	716	39 Petitions for judicial review may be consolidated at the request of the
717	717	40 appellants if it can be done in the interest of justice. The department of
718	718	41 local government finance may intervene in an action taken under this
719	719	42 subsection if the interpretation of a rule of the department is at issue in
720	720	2025 IN 1229—LS 7042/DI 125 17
721	721	1 the action. The county assessor (before the abolishment of the office)
722	722	2 and after May 9, 2025, the county auditor, is a party are parties to
723	723	3 the review under this section.
724	724	4 (c) Except as provided in subsection (g), to initiate a proceeding for
725	725	5 judicial review under this section, a party must take the action required
726	726	6 by subsection (b) not later than:
727	727	7 (1) forty-five (45) days after the Indiana board gives the person
728	728	8 notice of its final determination, unless a rehearing is conducted
729	729	9 under subsection (a); or
730	730	10 (2) forty-five (45) days after the Indiana board gives the person
731	731	11 notice under subsection (a) of its final determination, if a
732	732	12 rehearing is conducted under subsection (a) or the maximum time
733	733	13 elapses for the Indiana board to make a determination under this
734	734	14 section.
735	735	15 (d) The failure of the Indiana board to conduct a hearing within the
736	736	16 period prescribed in section 4(e) of this chapter does not constitute
737	737	17 notice to the party of an Indiana board final determination.
738	738	18 (e) The county assessor or county auditor may petition for judicial
739	739	19 review to the tax court in the manner prescribed in this section. If the
740	740	20 county auditor appeared before the Indiana board concerning the
741	741	21 matter, the county auditor may petition for judicial review to the tax
742	742	22 court in the manner prescribed in this section.
743	743	23 (f) The county assessor or county auditor may not be represented
744	744	24 by the attorney general in a judicial review initiated under subsection
745	745	25 (b) by the county assessor or county auditor.
746	746	26 (g) If the maximum time elapses for the Indiana board to give notice
747	747	27 of its final determination under subsection (a) or section 4 of this
748	748	28 chapter, a party may initiate a proceeding for judicial review by taking
749	749	29 the action required by subsection (b) at any time after the maximum
750	750	30 time elapses. If:
751	751	31 (1) a judicial proceeding is initiated under this subsection; and
752	752	32 (2) the Indiana board has not issued a determination;
753	753	33 the tax court shall determine the matter de novo.
754	754	34 SECTION 15. IC 6-1.1-15-19, AS ADDED BY P.L.244-2015,
755	755	35 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
756	756	36 UPON PASSAGE]: Sec. 19. (a) Before July 1, 2025, a county
757	757	37 assessor, and after June 30, 2025, a county auditor, shall quarterly
758	758	38 send a notice to the fiscal officer of each taxing unit affected by an
759	759	39 appeal prosecuted under this chapter, including the fiscal officer of an
760	760	40 affected redevelopment commission established under IC 36-7. The
761	761	41 notice must include the following information:
762	762	42 (1) The date on which a notice for review was filed.
763	763	2025 IN 1229—LS 7042/DI 125 18
764	764	1 (2) The name and address of the taxpayer who filed the notice for
765	765	2 review.
766	766	3 (3) The assessed value for the assessment date the year before the
767	767	4 appeal, and the assessed value on the most recent assessment
768	768	5 date.
769	769	6 (4) The status of the taxpayer's appeal.
770	770	7 (b) Each township assessor (if any) shall furnish to the county
771	771	8 assessor all requested information necessary for purposes of providing
772	772	9 the quarterly notices under this section. This subsection expires July
773	773	10 1, 2025.
774	774	11 (c) A notice required by this section may be provided to the
775	775	12 appropriate fiscal officer in an electronic format.
776	776	13 SECTION 16. IC 6-1.1-17-0.2 IS ADDED TO THE INDIANA
777	777	14 CODE AS A NEW SECTION TO READ AS FOLLOWS
778	778	15 [EFFECTIVE JULY 1, 2025]: Sec. 0.2. This chapter applies only in
779	779	16 calendar years before January 1, 2026.
780	780	17 SECTION 17. IC 6-1.1-20-0.3 IS ADDED TO THE INDIANA
781	781	18 CODE AS A NEW SECTION TO READ AS FOLLOWS
782	782	19 [EFFECTIVE UPON PASSAGE]: Sec. 0.3. (a) Notwithstanding any
783	783	20 other law, after May 9, 2025, a political subdivision may not issue
784	784	21 any bonds, notes, or warrants, or enter into any leases or
785	785	22 obligations to be paid from property tax revenue, or that include
786	786	23 a pledge to levy property taxes if other funds are insufficient.
787	787	24 (b) This section may not be construed to prohibit the refunding
788	788	25 or refinancing of obligations incurred before May 10, 2025.
789	789	26 SECTION 18. IC 6-1.1-39-0.2 IS ADDED TO THE INDIANA
790	790	27 CODE AS A NEW SECTION TO READ AS FOLLOWS
791	791	28 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. (a) Notwithstanding any
792	792	29 other law:
793	793	30 (1) no economic development district or allocation area may
794	794	31 be established, amended, or renewed; and
795	795	32 (2) no bonds, leases, or other obligations may be issued,
796	796	33 entered into, or extended for an economic development
797	797	34 district or allocation area;
798	798	35 under this chapter after May 9, 2025.
799	799	36 (b) This section may not be construed to prohibit the refunding
800	800	37 or refinancing of obligations incurred before May 10, 2025.
801	801	38 SECTION 19. IC 6-1.2 IS ADDED TO THE INDIANA CODE AS
802	802	39 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
803	803	40 PASSAGE]:
804	804	41 ARTICLE 1.2. PROPERTY TAX REVENUE REPLACEMENT
805	805	42 Chapter 1. General Applicability and Definitions
806	806	2025 IN 1229—LS 7042/DI 125 19
807	807	1 Sec. 1. The definitions and rules of construction contained in
808	808	2 IC 6-1.1-1 apply throughout this article unless the context clearly
809	809	3 requires otherwise.
810	810	4 Sec. 2. The definitions contained in this chapter apply
811	811	5 throughout this article unless the context clearly requires
812	812	6 otherwise.
813	813	7 Sec. 3. "ADM" has the meaning set forth in IC 20-43-1-6.
814	814	8 Sec. 4. "Allocation area" refers to an area that is established
815	815	9 under the authority of any of the following statutes and in which,
816	816	10 before January 1, 2027, property tax revenues are collected:
817	817	11 (1) IC 6-1.1-39.
818	818	12 (2) IC 8-22-3.5.
819	819	13 (3) IC 36-7-13.
820	820	14 (4) IC 36-7-14.
821	821	15 (5) IC 36-7-14.5.
822	822	16 (6) IC 36-7-15.1.
823	823	17 (7) IC 36-7-30.
824	824	18 (8) IC 36-7-30.5.
825	825	19 (9) IC 36-7-32.
826	826	20 (10) IC 36-7.5-4.5.
827	827	21 (11) Any other provision that authorizes the establishment of
828	828	22 an allocation area in which, before January 1, 2027, property
829	829	23 tax revenues are collected.
830	830	24 Sec. 5. "Fund" refers to the local revenue sharing fund
831	831	25 established by IC 6-1.2-3-2.
832	832	26 Sec. 6. "Governing body" means the following:
833	833	27 (1) For an allocation area created under IC 6-1.1-39, the fiscal
834	834	28 body of the county (as defined in IC 36-1-2-6).
835	835	29 (2) For an allocation area created under IC 8-22-3.5, the
836	836	30 commission (as defined in IC 8-22-3.5-2).
837	837	31 (3) For an allocation area created under IC 36-7-13, the
838	838	32 county, city, or town.
839	839	33 (4) For an allocation area created under IC 36-7-14, the
840	840	34 redevelopment commission.
841	841	35 (5) For an allocation area created under IC 36-7-14.5, the
842	842	36 redevelopment authority.
843	843	37 (6) For an allocation area created under IC 36-7-15.1, the
844	844	38 metropolitan development commission.
845	845	39 (7) For an allocation area created under IC 36-7-30, the
846	846	40 military base reuse authority.
847	847	41 (8) For an allocation area created under IC 36-7-30.5, the
848	848	42 military base development authority.
849	849	2025 IN 1229—LS 7042/DI 125 20
850	850	1 (9) For an allocation area created under IC 36-7-32, the
851	851	2 redevelopment commission.
852	852	3 (10) For an allocation area created under IC 36-7.5-4.5, the
853	853	4 development authority.
854	854	5 Sec. 7. "Municipality" has the meaning set forth in IC 36-1-2-11.
855	855	6 Sec. 8. "Obligation" means an obligation to repay:
856	856	7 (1) the principal and interest on bonds;
857	857	8 (2) lease rentals on leases; or
858	858	9 (3) any other contractual obligation;
859	859	10 payable from property tax increment revenues. The term includes
860	860	11 a guarantee of repayment from property tax increment revenues
861	861	12 if other revenues are insufficient to make a payment.
862	862	13 Chapter 2. Abolishment of Property Tax
863	863	14 Sec. 1. (a) Notwithstanding IC 6-1.1 or any other law to the
864	864	15 contrary, but subject to subsection (b), tangible property may not
865	865	16 be assessed after December 31, 2025, and property taxes on
866	866	17 tangible property may not be first imposed or first due after
867	867	18 December 31, 2026.
868	868	19 (b) Nothing in this article may be construed as limiting or
869	869	20 otherwise affecting:
870	870	21 (1) the collection of any property taxes or penalties imposed;
871	871	22 or
872	872	23 (2) any property tax exemptions or property tax deductions
873	873	24 allowed;
874	874	25 under IC 6-1.1 or any other law before January 1, 2027.
875	875	26 Sec. 2. If a provision of this article conflicts with any other law,
876	876	27 including IC 6-1.1, the provision in this article controls. A
877	877	28 provision contained in IC 6-1.1 is not applicable after the
878	878	29 abolishment of the imposition of property tax if the context clearly
879	879	30 renders the provision inapplicable.
880	880	31 Sec. 3. This article does not prohibit the assessment and levying
881	881	32 of a fee or payment otherwise authorized by law or the imposing of
882	882	33 a special assessment (including a ditch or drainage assessment,
883	883	34 Barrett Law assessment, improvement assessment, sewer
884	884	35 assessment, or sewage assessment) otherwise authorized by law to
885	885	36 be imposed on property to be benefitted by an improvement.
886	886	37 Sec. 4. A pledge of property tax made before May 10, 2025, for
887	887	38 the payment of bonds, leases, or other expenditures shall be treated
888	888	39 as a pledge of the distributions from the fund under this article for
889	889	40 the same purpose. Notwithstanding the abolishment of the
890	890	41 imposition of property tax and the enactment of this article, any
891	891	42 pledge of revenues received from a tax imposed under IC 6-1.1
892	892	2025 IN 1229—LS 7042/DI 125 21
893	893	1 prior to the abolishment of the imposition of property tax to the
894	894	2 payment, in whole or in part, of:
895	895	3 (1) the principal of and interest on bonds;
896	896	4 (2) lease rentals due under a lease; and
897	897	5 (3) the payment of any other obligation;
898	898	6 is binding and enforceable and remains in full force and effect as
899	899	7 long as the principal of and interest on any bonds, the lease rentals
900	900	8 due under any lease, or the payment of any obligation remains
901	901	9 unpaid. The enactment of this article does not affect any rights,
902	902	10 duties, obligations, proceedings, or liabilities accrued before
903	903	11 enactment of this article. Those rights, duties, obligations,
904	904	12 proceedings, or liabilities continue and shall be imposed and
905	905	13 enforced under prior law as if this article had not been enacted and
906	906	14 the imposition of property tax had not been abolished.
907	907	15 Sec. 5. For purposes of limitations on indebtedness of political
908	908	16 or municipal corporations imposed by Article 13, Section 1 of the
909	909	17 Constitution of the State of Indiana, to determine a taxing unit's
910	910	18 value of taxable property after the abolishment of the imposition
911	911	19 of property tax under this article, the most recent assessed value of
912	912	20 taxable property for the entire territory must be used to determine
913	913	21 the debt limit.
914	914	22 Chapter 3. Local Revenue Sharing Fund
915	915	23 Sec. 1. Not later than December 1, 2026, and each December 1
916	916	24 thereafter, each governing body shall file with the department of
917	917	25 local government finance and, if applicable, with the authorizing
918	918	26 unit's executive and fiscal body, a certified report setting out the
919	919	27 amount per month needed to:
920	920	28 (1) make all payments that are due in the next calendar year
921	921	29 on obligations incurred before May 10, 2025, and payable
922	922	30 from property tax revenues in allocation areas; plus
923	923	31 (2) maintain any revenue to obligation payment ratio required
924	924	32 by an agreement on which any of the obligations are based.
925	925	33 The report must be filed in the manner prescribed by the
926	926	34 department of local government finance.
927	927	35 Sec. 2. (a) The local revenue sharing fund is established. The
928	928	36 purpose of the fund is to allocate and distribute to taxing units the
929	929	37 portion of all the state gross retail and use tax revenue attributable
930	930	38 to services for use as set forth in section 4 of this chapter. The fund
931	931	39 shall be administered by the department.
932	932	40 (b) The fund consists of the following:
933	933	41 (1) Appropriations to the fund.
934	934	42 (2) Amounts deposited in the fund under IC 6-2.5-10-1(e).
935	935	2025 IN 1229—LS 7042/DI 125 22
936	936	1 (3) Interest and other earnings derived from investment of
937	937	2 money in the fund.
938	938	3 (c) Money in the fund is continuously appropriated for the
939	939	4 purposes of this chapter.
940	940	5 (d) The money in the fund may not be used for the costs of
941	941	6 administering this chapter.
942	942	7 (e) Money in the fund at the end of a state fiscal year does not
943	943	8 revert to the state general fund.
944	944	9 Sec. 3. This section applies after December 31, 2026. Before the
945	945	10 last day of each month, the state comptroller shall allocate and the
946	946	11 treasurer of state shall distribute money in the fund to the fiscal
947	947	12 officer of each taxing unit according to the following:
948	948	13 (1) The state comptroller shall first distribute an amount
949	949	14 equal to forty-five percent (45%) of the amount in the fund
950	950	15 according to the following formula:
951	951	16 STEP ONE: In collaboration with the department of
952	952	17 education, determine the:
953	953	18 (i) number of students who received a choice scholarship
954	954	19 and not more than fifty percent (50%) virtual instruction
955	955	20 in the current school year; and
956	956	21 (ii) number of students in item (i) who attended each
957	957	22 eligible school in the current school year.
958	958	23 STEP TWO: Add the:
959	959	24 (i) total statewide current ADM of students who receive
960	960	25 not more than fifty percent (50%) virtual instruction for
961	961	26 all school corporations;
962	962	27 (ii) total statewide current ADM of students who receive
963	963	28 not more than fifty percent (50%) virtual instruction for
964	964	29 all charter schools; plus
965	965	30 (iii) number of students who received a choice
966	966	31 scholarship and not more than fifty percent (50%)
967	967	32 virtual instruction in the current school year.
968	968	33 STEP THREE: Determine the:
969	969	34 (i) amount that is equal to forty-five percent (45%) of the
970	970	35 amount remaining in the fund; divided by
971	971	36 (ii) the STEP TWO result;
972	972	37 to determine per student funding.
973	973	38 STEP FOUR: Distribute to each school corporation,
974	974	39 charter school, and eligible school:
975	975	40 (i) the STEP THREE result; multiplied by
976	976	41 (ii) the current ADM of students who receive not more
977	977	42 than fifty percent (50%) virtual instruction for the
978	978	2025 IN 1229—LS 7042/DI 125 23
979	979	1 school corporation, the current ADM of students who
980	980	2 receive not more than fifty percent (50%) virtual
981	981	3 instruction for the charter school, or the number of
982	982	4 students who received a choice scholarship, did receive
983	983	5 not more than fifty percent (50%) virtual instruction,
984	984	6 and attended the eligible school in the current school
985	985	7 year, as applicable.
986	986	8 (2) After making the distributions under subdivision (1), the
987	987	9 state comptroller shall next distribute to each governing body
988	988	10 the amount needed for the subsequent month as provided in
989	989	11 the governing body's report for the calendar year submitted
990	990	12 under section 1 of this chapter.
991	991	13 (3) This subdivision does not apply to school corporations.
992	992	14 After making the distributions under subdivisions (1) and (2),
993	993	15 the state comptroller shall distribute the remaining money in
994	994	16 the fund to taxing units according to the following:
995	995	17 STEP ONE: Determine, for each type of taxing unit the
996	996	18 amount of that particular type of taxing unit's statewide
997	997	19 average net levy for calendar years 2022, 2023, 2024, 2025,
998	998	20 and 2026.
999	999	21 STEP TWO: Determine the sum of all five (5) year average
1000	1000	22 net levy results determined under STEP ONE for all types
1001	1001	23 of taxing units.
1002	1002	24 STEP THREE: For each type of taxing unit, determine:
1003	1003	25 (i) the STEP ONE result for the type of taxing unit;
1004	1004	26 divided by
1005	1005	27 (ii) the STEP TWO result.
1006	1006	28 STEP FOUR: To determine the aggregate allocation
1007	1007	29 amount for each type of taxing unit, multiply:
1008	1008	30 (i) the STEP THREE result for the type of taxing unit;
1009	1009	31 by
1010	1010	32 (ii) the amount of money remaining in the fund after the
1011	1011	33 distributions under subdivisions (1) and (2).
1012	1012	34 STEP FIVE: Of the aggregate allocation amount
1013	1013	35 determined for counties under STEP FOUR, distribute:
1014	1014	36 (i) seventy-five percent (75%) of the aggregate allocation
1015	1015	37 amount among the counties proportionately based on the
1016	1016	38 population of a particular county compared to all
1017	1017	39 counties; and
1018	1018	40 (ii) twenty-five percent (25%) of the aggregate allocation
1019	1019	41 amount among the counties proportionately based on the
1020	1020	42 total miles of county roads in a particular county
1021	1021	2025 IN 1229—LS 7042/DI 125 24
1022	1022	1 compared to all counties.
1023	1023	2 STEP SIX: Of the aggregate allocation amount determined
1024	1024	3 for municipalities under STEP FOUR, distribute:
1025	1025	4 (i) seventy-five percent (75%) of the aggregate allocation
1026	1026	5 amount among the municipalities proportionately based
1027	1027	6 on the population of a particular municipality compared
1028	1028	7 to all municipalities; and
1029	1029	8 (ii) twenty-five percent (25%) of the aggregate allocation
1030	1030	9 amount among the municipalities proportionately based
1031	1031	10 on the total miles of municipality roads in a particular
1032	1032	11 municipality compared to all municipalities.
1033	1033	12 STEP SEVEN: Of the aggregate allocation amount
1034	1034	13 determined under STEP FOUR for libraries, distribute a
1035	1035	14 proportionate amount to each library based on the
1036	1036	15 population of the particular library compared to all
1037	1037	16 libraries.
1038	1038	17 STEP EIGHT: Of the aggregate allocation amount
1039	1039	18 determined under STEP FOUR for townships and fire
1040	1040	19 protection territories for which a township is the provider
1041	1041	20 unit, distribute a proportionate amount to the county
1042	1042	21 auditor in which the township is located based on the
1043	1043	22 population of the particular township compared to all
1044	1044	23 townships. The county council in the county in which the
1045	1045	24 township is located shall determine how to allocate the
1046	1046	25 money among the townships in the county. In determining
1047	1047	26 how to allocate the money, the county council may consider
1048	1048	27 whether one (1) or more townships located in the county
1049	1049	28 will merge with any other township in the county.
1050	1050	29 STEP NINE: For all other taxing unit types, respectively,
1051	1051	30 distribute a proportionate amount to each taxing unit type
1052	1052	31 based on the particular taxing unit type's average net levy
1053	1053	32 for calendar years 2022, 2023, 2024, 2025, and 2026
1054	1054	33 compared to the average net levy for 2022, 2023, 2024,
1055	1055	34 2025, and 2026 of all taxing units by type set to receive a
1056	1056	35 distribution under this subdivision.
1057	1057	36 Sec. 4. (a) Money distributed under section 3(1) and 3(3) of this
1058	1058	37 chapter must first be used by the respective taxing unit for the
1059	1059	38 payment of any outstanding bonds, leases, or other expenditures
1060	1060	39 for which any property tax revenues were pledged prior to the
1061	1061	40 abolishment of the imposition of property tax under this article.
1062	1062	41 (b) After a taxing unit makes any required payments described
1063	1063	42 in subsection (a), money distributed under section 3(1) and 3(3) of
1064	1064	2025 IN 1229—LS 7042/DI 125 25
1065	1065	1 this chapter may be used for any legal purposes of the taxing unit.
1066	1066	2 Sec. 5. If the amount distributed to a taxing unit or governing
1067	1067	3 body under section 3 of this chapter in a month is insufficient to
1068	1068	4 make a required payment on any outstanding bonds, leases, or
1069	1069	5 other expenditures for which any property tax revenues were
1070	1070	6 pledged prior to the abolishment of the imposition of property tax
1071	1071	7 under this article, the state comptroller shall supplement the taxing
1072	1072	8 unit's or governing body's distribution using money from the state
1073	1073	9 general fund in an amount that, when combined with the
1074	1074	10 distribution from the fund to the taxing unit or governing body,
1075	1075	11 does not exceed the amount needed to make the required payment.
1076	1076	12 Chapter 4. School Corporation Operating Referenda Funding
1077	1077	13 Sec. 1. This chapter applies only:
1078	1078	14 (1) to a school corporation that imposed:
1079	1079	15 (A) an operating referendum tax levy under IC 20-46-1; or
1080	1080	16 (B) a school safety referendum tax levy under IC 20-46-9;
1081	1081	17 that was approved by the voters of the school corporation
1082	1082	18 before May 10, 2025; and
1083	1083	19 (2) beginning in calendar year 2027, and in each calendar year
1084	1084	20 thereafter, until the expiration of the tax levy described in
1085	1085	21 subdivision (1) as set out when approved by the voters of the
1086	1086	22 school corporation.
1087	1087	23 Sec. 2. Each owner of a parcel located in a school corporation's
1088	1088	24 territory is liable for an annual fee to replace the loss of revenue
1089	1089	25 previously collected by the school corporation from the imposition
1090	1090	26 of an operating referendum tax levy or school safety referendum
1091	1091	27 tax levy prior to the abolishment of the imposition of property tax
1092	1092	28 under this article.
1093	1093	29 Sec. 3. (a) The county treasurer shall mail to the owner of each
1094	1094	30 parcel located in a school corporation's territory a statement in the
1095	1095	31 form required under subsection (b).
1096	1096	32 (b) The department of local government finance shall prescribe
1097	1097	33 a form, subject to the approval of the state board of accounts, for
1098	1098	34 the statement under subsection (a) that includes at least the
1099	1099	35 following:
1100	1100	36 (1) The total amount owed for the parcel for the year.
1101	1101	37 (2) Information designed to show the manner in which the fee
1102	1102	38 is to be used.
1103	1103	39 (c) The county treasurer shall mail or transmit the statement
1104	1104	40 one (1) time each year on or before April 15. The statement must
1105	1105	41 contain the dates on which the first and second installments are
1106	1106	42 due and denote the amount of money to be paid for each
1107	1107	2025 IN 1229—LS 7042/DI 125 26
1108	1108	1 installment.
1109	1109	2 (d) All payments under this chapter shall be made to the county
1110	1110	3 treasurer. The county treasurer, when authorized by the board of
1111	1111	4 county commissioners, may open temporary offices for the
1112	1112	5 collection of fees in cities and towns in the county other than the
1113	1113	6 county seat.
1114	1114	7 (e) The school corporation, county treasurer, and county
1115	1115	8 auditor shall cooperate to generate the information to be included
1116	1116	9 in the statement under subsection (b).
1117	1117	10 (f) The information to be included in the statement under
1118	1118	11 subsection (b) must be simply and clearly presented and
1119	1119	12 understandable to the average individual.
1120	1120	13 Sec. 4. An annual fee due under this chapter is due in two (2)
1121	1121	14 equal installments on May 10 and November 10 of the calendar
1122	1122	15 year in the total amount determined in STEP THREE of the
1123	1123	16 following formula:
1124	1124	17 STEP ONE: Determine the total amount received by the
1125	1125	18 school corporation from property tax revenue for the
1126	1126	19 operating referendum or school safety referendum in
1127	1127	20 calendar year 2026.
1128	1128	21 STEP TWO: Multiply the STEP ONE result by the net
1129	1129	22 assessed value for property taxes first due and payable in
1130	1130	23 2026 for each property.
1131	1131	24 STEP THREE: Divide the STEP TWO result by the net
1132	1132	25 assessed value for property taxes first due and payable in
1133	1133	26 2026 of all tangible property.
1134	1134	27 Chapter 5. Procedures for Fixing and Reviewing Budgets
1135	1135	28 Sec. 1. This chapter applies in calendar year 2026 and each
1136	1136	29 calendar year thereafter.
1137	1137	30 Sec. 2. Before June 15 of each year, the fiscal officer of each
1138	1138	31 political subdivision shall provide the department of local
1139	1139	32 government finance with an estimate of the total amount of the
1140	1140	33 political subdivision's debt service obligations (as defined in
1141	1141	34 IC 6-1.1-20.6-9.8) that will be due in the last six (6) months of the
1142	1142	35 current year and in the ensuing year.
1143	1143	36 Sec. 3. (a) When formulating an annual budget estimate, the
1144	1144	37 proper officers of a political subdivision shall prepare an estimate
1145	1145	38 of the amount of revenue which the political subdivision will
1146	1146	39 receive from the state for and during the budget year for which the
1147	1147	40 budget is being formulated. However, this section does not apply
1148	1148	41 to funds to be received from the state or the federal government
1149	1149	42 for:
1150	1150	2025 IN 1229—LS 7042/DI 125 27
1151	1151	1 (1) township assistance;
1152	1152	2 (2) unemployment relief;
1153	1153	3 (3) old age pensions; or
1154	1154	4 (4) other funds which may at any time be made available
1155	1155	5 under "The Economic Security Act" or under any other
1156	1156	6 federal act which provides for civil and public works projects.
1157	1157	7 (b) When formulating an annual budget estimate, the proper
1158	1158	8 officers of a political subdivision shall prepare an estimate of the
1159	1159	9 amount of revenue that the political subdivision will receive under
1160	1160	10 a development agreement (as defined in IC 36-1-8-9.5) for and
1161	1161	11 during the budget year for which the budget is being formulated.
1162	1162	12 Sec. 4. (a) The proper officers of a political subdivision shall
1163	1163	13 formulate its estimated budget and expected revenue on the form
1164	1164	14 prescribed by the department of local government finance and
1165	1165	15 approved by the state board of accounts. In formulating a political
1166	1166	16 subdivision's estimated budget under this section, the proper
1167	1167	17 officers of the political subdivision must consider the distributions
1168	1168	18 from the fund that will be collected by the political subdivision
1169	1169	19 during the ensuing year, after taking into account the estimate of
1170	1170	20 miscellaneous revenue that the political subdivision will receive in
1171	1171	21 the ensuing year, and after taking into account all payments for
1172	1172	22 debt service obligations that are to be made by the political
1173	1173	23 subdivision during the ensuing year. The political subdivision shall
1174	1174	24 submit the following information to the department's computer
1175	1175	25 gateway:
1176	1176	26 (1) The estimated budget, including estimated expenditures
1177	1177	27 and revenue from all sources.
1178	1178	28 (2) The time and place at which the political subdivision or
1179	1179	29 appropriate fiscal body will hold a public hearing on the items
1180	1180	30 described in subdivision (1).
1181	1181	31 (3) The time and place at which the political subdivision or
1182	1182	32 appropriate fiscal body will meet to fix the budget under
1183	1183	33 section 5 of this chapter.
1184	1184	34 (4) The date, time, and place of the final adoption of the
1185	1185	35 budget under section 5 of this chapter.
1186	1186	36 Except as provided in section 9(b) of this chapter, the political
1187	1187	37 subdivision or appropriate fiscal body shall submit this
1188	1188	38 information to the department's computer gateway at least ten (10)
1189	1189	39 days before the public hearing required by this subsection in the
1190	1190	40 manner prescribed by the department. If the date, time, or place of
1191	1191	41 the final adoption subsequently changes, the political subdivision
1192	1192	42 shall update the information submitted to the department's
1193	1193	2025 IN 1229—LS 7042/DI 125 28
1194	1194	1 computer gateway. The department shall make this information
1195	1195	2 available to taxpayers, at least ten (10) days before the public
1196	1196	3 hearing, through its computer gateway and provide a telephone
1197	1197	4 number through which taxpayers may request mailed copies of a
1198	1198	5 political subdivision's information under this subsection. The
1199	1199	6 department's computer gateway must allow a taxpayer to search
1200	1200	7 for the information under this subsection by the taxpayer's
1201	1201	8 address. The department shall review only the submission to the
1202	1202	9 department's computer gateway for compliance with this section.
1203	1203	10 (b) The board of directors of a solid waste management district
1204	1204	11 established under IC 13-21 or IC 13-9.5-2 (before its repeal) may
1205	1205	12 conduct the public hearing required under subsection (a):
1206	1206	13 (1) in any county of the solid waste management district; and
1207	1207	14 (2) in accordance with the annual notice of meetings published
1208	1208	15 under IC 13-21-5-2.
1209	1209	16 (c) If a political subdivision or appropriate fiscal body timely
1210	1210	17 submits the information under subsection (a) but subsequently
1211	1211	18 discovers the information contains an error, the political
1212	1212	19 subdivision or appropriate fiscal body may submit amended
1213	1213	20 information to the department's computer gateway. However,
1214	1214	21 submission of an amendment to information described in
1215	1215	22 subsection (a)(1) must occur at least ten (10) days before the public
1216	1216	23 hearing held under subsection (a), and submission of an
1217	1217	24 amendment to information described in subsection (a)(3) must
1218	1218	25 occur at least twenty-four (24) hours before the time in which the
1219	1219	26 meeting to fix the budget, tax rate, and levy was originally
1220	1220	27 advertised to commence.
1221	1221	28 Sec. 5. (a) Not later than November 1 each year, the officers of
1222	1222	29 political subdivisions shall meet each year to fix the budget of their
1223	1223	30 respective subdivisions for the ensuing budget year. Except in a
1224	1224	31 consolidated city and county and in a second class city, the public
1225	1225	32 hearing required by section 4 of this chapter must be completed at
1226	1226	33 least ten (10) days before the proper officers of the political
1227	1227	34 subdivision meet to fix the budget. In a consolidated city and
1228	1228	35 county and in a second class city, that public hearing, by any
1229	1229	36 committee or by the entire fiscal body, may be held at any time
1230	1230	37 after introduction of the budget.
1231	1231	38 (b) Ten (10) or more taxpayers may object to a budget of a
1232	1232	39 political subdivision fixed under subsection (a) by filing an
1233	1233	40 objection petition with the proper officers of the political
1234	1234	41 subdivision not more than seven (7) days after the hearing. The
1235	1235	42 objection petition must specifically identify the provisions of the
1236	1236	2025 IN 1229—LS 7042/DI 125 29
1237	1237	1 budget to which the taxpayers object.
1238	1238	2 (c) If a petition is filed under subsection (b), the fiscal body of
1239	1239	3 the political subdivision shall adopt with its budget a finding
1240	1240	4 concerning the objections in the petition and any testimony
1241	1241	5 presented at the adoption hearing.
1242	1242	6 (d) A political subdivision shall file the budget adopted by the
1243	1243	7 political subdivision with the department of local government
1244	1244	8 finance not later than five (5) business days after the budget is
1245	1245	9 adopted under subsection (a). The filing with the department of
1246	1246	10 local government finance must be in a manner prescribed by the
1247	1247	11 department.
1248	1248	12 (e) In a consolidated city and county and in a second class city,
1249	1249	13 the clerk of the fiscal body shall, notwithstanding subsection (d),
1250	1250	14 file the adopted budget and tax ordinances with the department of
1251	1251	15 local government finance within five (5) business days after the
1252	1252	16 ordinances are signed by the executive, or within five (5) business
1253	1253	17 days after action is taken by the fiscal body to override a veto of
1254	1254	18 the ordinances, whichever is later.
1255	1255	19 (f) If a fiscal body does not fix the budget of the political
1256	1256	20 subdivisions for the ensuing budget year as required under this
1257	1257	21 section, the most recent annual appropriations are continued for
1258	1258	22 the ensuing budget year.
1259	1259	23 (g) When fixing a budget under subsection (a), the political
1260	1260	24 subdivision shall indicate on its adopting document, in the manner
1261	1261	25 prescribed by the department, whether the political subdivision
1262	1262	26 intends to issue debt after December 1 of the year preceding the
1263	1263	27 budget year.
1264	1264	28 Sec. 6. If an ordinance to fix a city budget is:
1265	1265	29 (1) vetoed by the city executive under IC 36-4-6-16(a)(2); or
1266	1266	30 (2) considered vetoed under IC 36-4-6-16(b);
1267	1267	31 and the veto is effective on a date later than October 1, the city's
1268	1268	32 legislative body has thirty (30) days from the effective date of the
1269	1269	33 veto to override the veto in accordance with IC 36-4-6-16(c) to fix
1270	1270	34 the budget for the ensuing budget year.
1271	1271	35 Sec. 7. A school corporation shall specify in its proposed budget
1272	1272	36 the anticipated amount that will be transferred from the total
1273	1273	37 revenue deposited in the school corporation's education fund to its
1274	1274	38 operations fund during the next calendar year. At its public
1275	1275	39 hearing to adopt a budget under this chapter, the school
1276	1276	40 corporation shall acknowledge whether the school corporation's
1277	1277	41 anticipated transfer amount will be more than fifteen percent
1278	1278	42 (15%) of the total revenue deposited in the school corporation's
1279	1279	2025 IN 1229—LS 7042/DI 125 30
1280	1280	1 education fund to its operations fund during the next calendar
1281	1281	2 year.
1282	1282	3 Sec. 8. (a) Not later than March 2 of each year, the executive of
1283	1283	4 a political subdivision shall submit a statement to the department
1284	1284	5 of local government finance attesting that the political subdivision
1285	1285	6 uploaded any contract entered into during the immediately
1286	1286	7 preceding year related to the provision of fire services or
1287	1287	8 emergency medical services to the Indiana transparency website as
1288	1288	9 required by IC 5-14-3.8-3.5(d).
1289	1289	10 (b) The department of local government finance may not
1290	1290	11 approve the budget of a political subdivision or a supplemental
1291	1291	12 appropriation for a political subdivision until the political
1292	1292	13 subdivision files the attestation under subsection (a).
1293	1293	14 Sec. 9. (a) Each school corporation may elect to adopt a budget
1294	1294	15 under this section that applies from July 1 of the year through June
1295	1295	16 30 of the following year. In the initial budget adopted by a school
1296	1296	17 corporation under this section, the first six (6) months of that
1297	1297	18 initial budget must be consistent with the last six (6) months of the
1298	1298	19 budget adopted by the school corporation for the calendar year in
1299	1299	20 which the school corporation elects by resolution to begin adopting
1300	1300	21 budgets that correspond to the state fiscal year. A corporation shall
1301	1301	22 submit a copy of the resolution to the department of local
1302	1302	23 government finance and the department of education not more
1303	1303	24 than thirty (30) days after the date the governing body adopts the
1304	1304	25 resolution.
1305	1305	26 (b) Before April 1 of each year, the officers of the school
1306	1306	27 corporation shall meet to fix the budget for the school corporation
1307	1307	28 for the ensuing budget year, with notice given by the same officers.
1308	1308	29 The school corporation shall submit the information described in
1309	1309	30 section 3(a) of this chapter to the department's computer gateway
1310	1310	31 at least ten (10) days before the meeting required by this subsection
1311	1311	32 in the manner prescribed by the department. The department shall
1312	1312	33 make this information available to taxpayers at least ten (10) days
1313	1313	34 before the public hearing through its computer gateway, and
1314	1314	35 provide a telephone number through which taxpayers may request
1315	1315	36 mailed copies of a political subdivision's information under this
1316	1316	37 subsection. However, if a resolution adopted under subsection (d)
1317	1317	38 is in effect, the officers shall meet to fix the budget for the ensuing
1318	1318	39 budget year before November 1. A school corporation that adopts
1319	1319	40 a resolution under subsection (d) shall submit the information
1320	1320	41 described in section 3(a) of this chapter in the manner prescribed
1321	1321	42 by that section.
1322	1322	2025 IN 1229—LS 7042/DI 125 31
1323	1323	1 (c) A school corporation that adopts a budget as provided in this
1324	1324	2 section shall file the budget adopted by the school corporation with
1325	1325	3 the department of local government finance not later than five (5)
1326	1326	4 business days after the budget is adopted under subsection (b). The
1327	1327	5 filing with the department of local government finance must be in
1328	1328	6 a manner prescribed by the department.
1329	1329	7 (d) The governing body of the school corporation may adopt a
1330	1330	8 resolution to cease using a school year budget year and return to
1331	1331	9 using a calendar year budget year. A resolution adopted under this
1332	1332	10 subsection must be adopted after January 1 and before July 1. The
1333	1333	11 school corporation's initial calendar year budget year following the
1334	1334	12 adoption of a resolution under this subsection begins on January
1335	1335	13 1 of the year following the year the resolution is adopted. The first
1336	1336	14 six (6) months of the initial calendar year budget for the school
1337	1337	15 corporation must be consistent with the last six (6) months of the
1338	1338	16 final school year budget fixed by the department of local
1339	1339	17 government finance before the adoption of a resolution under this
1340	1340	18 subsection.
1341	1341	19 (e) A resolution adopted under subsection (d) may be rescinded
1342	1342	20 by a subsequent resolution adopted by the governing body. If the
1343	1343	21 governing body of the school corporation rescinds a resolution
1344	1344	22 adopted under subsection (d) and returns to a school year budget
1345	1345	23 year, the school corporation's initial school year budget year
1346	1346	24 begins on July 1 following the adoption of the rescinding resolution
1347	1347	25 and ends on June 30 of the following year. The first six (6) months
1348	1348	26 of the initial school year budget for the school corporation must be
1349	1349	27 consistent with the last six (6) months of the last calendar year
1350	1350	28 budget fixed by the department of local government finance before
1351	1351	29 the adoption of a rescinding resolution under this subsection.
1352	1352	30 Sec. 10. If the boundaries of a political subdivision cross one (1)
1353	1353	31 or more county lines, the budget, tax levy, and tax rate fixed by the
1354	1354	32 political subdivision shall be filed with the county auditor of each
1355	1355	33 affected county in the manner prescribed in section 5 or 9 of this
1356	1356	34 chapter.
1357	1357	35 SECTION 20. IC 6-2.5-1-1, AS AMENDED BY P.L.146-2020,
1358	1358	36 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1359	1359	37 JULY 1, 2026]: Sec. 1. (a) Except as provided in subsection (b) or (c),
1360	1360	38 "unitary transaction" includes all items of personal property and
1361	1361	39 services which are furnished under a single order or agreement and for
1362	1362	40 which a total combined charge or price is calculated.
1363	1363	41 (b) "Unitary transaction" does not include a transaction that meets
1364	1364	42 one (1) of the exceptions exception in section 11.5(d) 11.5(c) of this
1365	1365	2025 IN 1229—LS 7042/DI 125 32
1366	1366	1 chapter.
1367	1367	2 (c) "Unitary transaction" as it applies to the furnishing of public
1368	1368	3 utility commodities or services means the public utility commodities
1369	1369	4 and services which are invoiced in a single bill or statement for
1370	1370	5 payment by the consumer.
1371	1371	6 SECTION 21. IC 6-2.5-1-5, AS AMENDED BY P.L.199-2021,
1372	1372	7 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1373	1373	8 JULY 1, 2026]: Sec. 5. (a) Except as provided in subsection (b), "gross
1374	1374	9 retail income" means the total amount of consideration, including cash,
1375	1375	10 credit, property, and services, for which tangible personal property or
1376	1376	11 a service is sold, leased, or rented, valued in money, whether received
1377	1377	12 in money or otherwise, without any deduction for:
1378	1378	13 (1) the seller's cost of the property sold;
1379	1379	14 (2) the cost of materials used, labor or service cost, interest,
1380	1380	15 losses, all costs of transportation to the seller, all taxes imposed
1381	1381	16 on the seller, and any other expense of the seller;
1382	1382	17 (3) charges by the seller for any services necessary to complete
1383	1383	18 the sale; other than delivery and installation charges;
1384	1384	19 (4) delivery charges; or
1385	1385	20 (5) consideration received by the seller from a third party if:
1386	1386	21 (A) the seller actually receives consideration from a party
1387	1387	22 other than the purchaser and the consideration is directly
1388	1388	23 related to a price reduction or discount on the sale;
1389	1389	24 (B) the seller has an obligation to pass the price reduction or
1390	1390	25 discount through to the purchaser;
1391	1391	26 (C) the amount of the consideration attributable to the sale is
1392	1392	27 fixed and determinable by the seller at the time of the sale of
1393	1393	28 the item to the purchaser; and
1394	1394	29 (D) the price reduction or discount is identified as a third party
1395	1395	30 price reduction or discount on the invoice received by the
1396	1396	31 purchaser or on a coupon, certificate, or other documentation
1397	1397	32 presented by the purchaser.
1398	1398	33 For purposes of subdivision (4), delivery charges are charges by the
1399	1399	34 seller for preparation and delivery of the property to a location
1400	1400	35 designated by the purchaser of property, including but not limited to
1401	1401	36 transportation, shipping, postage charges that are not separately stated
1402	1402	37 on the invoice, bill of sale, or similar document, handling, crating, and
1403	1403	38 packing. Delivery charges do not include postage charges that are
1404	1404	39 separately stated on the invoice, bill of sale, or similar document.
1405	1405	40 (b) "Gross retail income" does not include that part of the gross
1406	1406	41 receipts attributable to:
1407	1407	42 (1) the value of any tangible personal property received in a like
1408	1408	2025 IN 1229—LS 7042/DI 125 33
1409	1409	1 kind exchange in the retail transaction, if the value of the property
1410	1410	2 given in exchange is separately stated on the invoice, bill of sale,
1411	1411	3 or similar document given to the purchaser;
1412	1412	4 (2) the receipts received in a retail transaction which constitute
1413	1413	5 interest or finance charges or insurance premiums on either a
1414	1414	6 promissory note or an installment sales contract;
1415	1415	7 (3) discounts, including cash, terms, or coupons that are not
1416	1416	8 reimbursed by a third party that are allowed by a seller and taken
1417	1417	9 by a purchaser on a sale;
1418	1418	10 (4) interest, financing, and carrying charges from credit extended
1419	1419	11 on the sale of personal property or services if the amount is
1420	1420	12 separately stated on the invoice, bill of sale, or similar document
1421	1421	13 given to the purchaser;
1422	1422	14 (5) any taxes legally imposed directly on the consumer that are
1423	1423	15 separately stated on the invoice, bill of sale, or similar document
1424	1424	16 given to the purchaser, including an excise tax imposed under
1425	1425	17 IC 6-6-15;
1426	1426	18 (6) installation charges that are separately stated on the invoice,
1427	1427	19 bill of sale, or similar document given to the purchaser;
1428	1428	20 (7) (6) telecommunications nonrecurring charges; or
1429	1429	21 (8) (7) postage charges that are separately stated on the invoice,
1430	1430	22 bill of sale, or similar document. or
1431	1431	23 (9) charges for serving or delivering food and food ingredients
1432	1432	24 furnished, prepared, or served for consumption at a location, or on
1433	1433	25 equipment, provided by the retail merchant, to the extent that the
1434	1434	26 charges for the serving or delivery are stated separately from the
1435	1435	27 price of the food and food ingredients when the purchaser pays
1436	1436	28 the charges.
1437	1437	29 (c) Notwithstanding subsection (b)(5):
1438	1438	30 (1) in the case of retail sales of special fuel (as defined in
1439	1439	31 IC 6-6-2.5-22), the gross retail income is the total sales price of
1440	1440	32 the special fuel minus the part of that price attributable to tax
1441	1441	33 imposed under IC 6-6-2.5 or Section 4041 or Section 4081 of the
1442	1442	34 Internal Revenue Code;
1443	1443	35 (2) in the case of retail sales of cigarettes (as defined in
1444	1444	36 IC 6-7-1-2), the gross retail income is the total sales price of the
1445	1445	37 cigarettes including the tax imposed under IC 6-7-1; and
1446	1446	38 (3) in the case of retail sales of consumable material (as defined
1447	1447	39 in IC 6-7-4-2), vapor products (as defined in IC 6-7-4-8), and
1448	1448	40 closed system cartridges (as defined in IC 6-7-2-0.5) under the
1449	1449	41 closed system cartridge tax, the gross retail income received from
1450	1450	42 selling at retail is the total sales price of the consumable material
1451	1451	2025 IN 1229—LS 7042/DI 125 34
1452	1452	1 (as defined in IC 6-7-4-2), vapor products (as defined in
1453	1453	2 IC 6-7-4-8), and closed system cartridges (as defined in
1454	1454	3 IC 6-7-2-0.5) including the tax imposed under IC 6-7-4 and
1455	1455	4 IC 6-7-2-7.5.
1456	1456	5 (d) Gross retail income is only taxable under this article to the
1457	1457	6 extent that the income represents
1458	1458	7 (1) the price of the property transferred without the rendition of
1459	1459	8 any or the services and
1460	1460	9 (2) except as provided in subsection (b), any bona fide charges
1461	1461	10 which are made for preparation, fabrication, alteration,
1462	1462	11 modification, finishing, completion, delivery, or other service
1463	1463	12 performed in respect to the property transferred before its transfer
1464	1464	13 and which are separately stated on the transferor's records. For
1465	1465	14 purposes of this subdivision, a transfer is considered to have
1466	1466	15 occurred after the delivery of the property to the purchaser.
1467	1467	16 performed by the seller, or both.
1468	1468	17 (e) A public utility's or a power subsidiary's gross retail income
1469	1469	18 includes all gross retail income received by the public utility or power
1470	1470	19 subsidiary, including any minimum charge, flat charge, membership
1471	1471	20 fee, or any other form of charge or billing.
1472	1472	21 SECTION 22. IC 6-2.5-1-11.5, AS AMENDED BY P.L.146-2020,
1473	1473	22 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1474	1474	23 JULY 1, 2026]: Sec. 11.5. (a) This section applies to retail transactions
1475	1475	24 occurring after December 31, 2007.
1476	1476	25 (b) (a) "Bundled transaction" means a retail sale of two (2) or more
1477	1477	26 products or services, except real property and services to real property,
1478	1478	27 that are:
1479	1479	28 (1) distinct;
1480	1480	29 (2) identifiable; and
1481	1481	30 (3) sold for one (1) nonitemized price.
1482	1482	31 (c) (b) The term does not include a retail sale in which the sales
1483	1483	32 price of a product or a service varies, or is negotiable, based on other
1484	1484	33 products or services that the purchaser selects for inclusion in the
1485	1485	34 transaction.
1486	1486	35 (d) (c) The term does not include a retail sale that:
1487	1487	36 (1) is comprised of:
1488	1488	37 (A) a service that is the true object of the transaction; and
1489	1489	38 (B) tangible personal property that:
1490	1490	39 (i) is essential to the use of the service; and
1491	1491	40 (ii) is provided exclusively in connection with the service;
1492	1492	41 (2) (1) includes both taxable and nontaxable products or services
1493	1493	42 in which:
1494	1494	2025 IN 1229—LS 7042/DI 125 35
1495	1495	1 (A) the seller's purchase price; or
1496	1496	2 (B) the sales price;
1497	1497	3 of the taxable products or services does not exceed ten percent
1498	1498	4 (10%) of the total purchase price or the total sales price of the
1499	1499	5 bundled products; or
1500	1500	6 (3) (2) includes both exempt tangible personal property and
1501	1501	7 taxable tangible personal property:
1502	1502	8 (A) any of which is classified as:
1503	1503	9 (i) food and food ingredients;
1504	1504	10 (ii) drugs;
1505	1505	11 (iii) durable medical equipment;
1506	1506	12 (iv) mobility enhancing equipment;
1507	1507	13 (v) over-the-counter drugs;
1508	1508	14 (vi) prosthetic devices; or
1509	1509	15 (vii) medical supplies; and
1510	1510	16 (B) for which:
1511	1511	17 (i) the seller's purchase price; or
1512	1512	18 (ii) the sales price;
1513	1513	19 of the taxable tangible personal property is fifty percent (50%)
1514	1514	20 or less of the total purchase price or the total sales price of the
1515	1515	21 bundled tangible personal property.
1516	1516	22 The determination under clause (B) must be made on the basis of
1517	1517	23 either individual item purchase prices or individual item sale
1518	1518	24 prices.
1519	1519	25 (e) (d) A transaction that meets one (1) of the exceptions in
1520	1520	26 subsection (d) (c) shall be excluded from the definition of unitary
1521	1521	27 transaction under section 1(a) of this chapter.
1522	1522	28 SECTION 23. IC 6-2.5-1-22.1 IS ADDED TO THE INDIANA
1523	1523	29 CODE AS A NEW SECTION TO READ AS FOLLOWS
1524	1524	30 [EFFECTIVE JULY 1, 2026]: Sec. 22.1. As used in this article,
1525	1525	31 "NAICS code" refers to the code used to classify a particular
1526	1526	32 industry in the current edition of the North American Industry
1527	1527	33 Classification System Manual - United States, published by the
1528	1528	34 National Technical Information Service of the United States
1529	1529	35 Department of Commerce.
1530	1530	36 SECTION 24. IC 6-2.5-1-25.7 IS ADDED TO THE INDIANA
1531	1531	37 CODE AS A NEW SECTION TO READ AS FOLLOWS
1532	1532	38 [EFFECTIVE JULY 1, 2026]: Sec. 25.7. (a) "Service" means any
1533	1533	39 activity engaged in for another person for consideration.
1534	1534	40 (b) The term does not include either of the following:
1535	1535	41 (1) A service rendered by an employee for the employee's
1536	1536	42 employer.
1537	1537	2025 IN 1229—LS 7042/DI 125 36
1538	1538	1 (2) A lease or rental of residential real property for a period
1539	1539	2 of more than thirty (30) days.
1540	1540	3 SECTION 25. IC 6-2.5-2-1, AS AMENDED BY P.L.118-2024,
1541	1541	4 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1542	1542	5 JULY 1, 2026]: Sec. 1. (a) An excise tax, known as the state gross
1543	1543	6 retail tax, is imposed on retail transactions made in Indiana.
1544	1544	7 (b) The person who acquires property or receives a service in a
1545	1545	8 retail transaction is liable for the tax on the transaction and, except as
1546	1546	9 otherwise provided in this chapter, shall pay the tax to the retail
1547	1547	10 merchant as a separate added amount to the consideration in the
1548	1548	11 transaction. A retail merchant that has either physical presence in
1549	1549	12 Indiana as described in subsection (c) or that meets the threshold in
1550	1550	13 subsection (d) shall collect the tax as agent for the state.
1551	1551	14 (c) A retail merchant has physical presence in Indiana when the
1552	1552	15 retail merchant:
1553	1553	16 (1) maintains an office, place of distribution, sales location,
1554	1554	17 sample location, warehouse, storage place, or other place of
1555	1555	18 business which is located in Indiana and which the retail
1556	1556	19 merchant maintains, occupies, or uses, either permanently or
1557	1557	20 temporarily, either directly or indirectly, and either by the retail
1558	1558	21 merchant or through a representative, agent, or subsidiary;
1559	1559	22 (2) maintains a representative, agent, salesperson, canvasser, or
1560	1560	23 solicitor who, while operating in Indiana under the authority of
1561	1561	24 and on behalf of the retail merchant or a subsidiary of the retail
1562	1562	25 merchant, sells, delivers, installs, repairs, assembles, sets up,
1563	1563	26 accepts returns of, bills, invoices, or takes orders for sales of
1564	1564	27 tangible personal property or services to be used, stored, or
1565	1565	28 consumed in Indiana; or
1566	1566	29 (3) is otherwise required to register as a retail merchant under
1567	1567	30 IC 6-2.5-8-1.
1568	1568	31 (d) A retail merchant that does not have a physical presence in
1569	1569	32 Indiana shall, as an agent for the state, collect the gross retail tax on a
1570	1570	33 retail transaction made in Indiana, remit the gross retail tax as provided
1571	1571	34 in this article, and comply with all applicable procedures and
1572	1572	35 requirements of this article as if the retail merchant has a physical
1573	1573	36 presence in Indiana, if the retail merchant's gross revenue from any
1574	1574	37 combination of:
1575	1575	38 (1) the sale of tangible personal property that is delivered into
1576	1576	39 Indiana;
1577	1577	40 (2) a product transferred electronically into Indiana; or
1578	1578	41 (3) a service delivered in Indiana;
1579	1579	42 exceeds one hundred thousand dollars ($100,000) for the calendar year
1580	1580	2025 IN 1229—LS 7042/DI 125 37
1581	1581	1 in which the retail transaction is made or for the calendar year
1582	1582	2 preceding the calendar year in which the retail transaction is made.
1583	1583	3 (e) A marketplace facilitator must include both transactions made
1584	1584	4 on its own behalf and transactions facilitated for sellers under
1585	1585	5 IC 6-2.5-4-18 for purposes of establishing the requirement to collect
1586	1586	6 gross retail tax without having a physical presence in Indiana for
1587	1587	7 purposes of subsection (d). In addition, except in instances where the
1588	1588	8 marketplace facilitator has not met the threshold in subsection (d), the
1589	1589	9 transactions of the seller made through the marketplace are not counted
1590	1590	10 toward the seller for purposes of determining whether the seller has
1591	1591	11 met the threshold in subsection (d).
1592	1592	12 SECTION 26. IC 6-2.5-3-1, AS AMENDED BY P.L.146-2020,
1593	1593	13 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1594	1594	14 JULY 1, 2026]: Sec. 1. For purposes of this chapter:
1595	1595	15 (a) "Use" means either of the following:
1596	1596	16 (1) The exercise of any right or power of ownership over tangible
1597	1597	17 personal property.
1598	1598	18 (2) The employment of a service for its intended purpose.
1599	1599	19 (b) "Storage" means the keeping or retention of tangible personal
1600	1600	20 property in Indiana for any purpose except temporary storage.
1601	1601	21 (c) "Temporary storage" means the keeping or retention of tangible
1602	1602	22 personal property in Indiana for a period of not more than one hundred
1603	1603	23 eighty (180) days and only for the purpose of the subsequent use of that
1604	1604	24 property solely outside Indiana.
1605	1605	25 (d) Notwithstanding any other provision of this section, tangible or
1606	1606	26 intangible property that is:
1607	1607	27 (1) owned or leased by a person that has contracted with a
1608	1608	28 commercial printer for printing; and
1609	1609	29 (2) located at the premises of the commercial printer;
1610	1610	30 shall not be considered to be, or to create, an office, a place of
1611	1611	31 distribution, a sales location, a sample location, a warehouse, a storage
1612	1612	32 place, or other place of business maintained, occupied, or used in any
1613	1613	33 way by the person. A commercial printer with which a person has
1614	1614	34 contracted for printing shall not be considered to be in any way a
1615	1615	35 representative, an agent, a salesman, a canvasser, or a solicitor for the
1616	1616	36 person.
1617	1617	37 SECTION 27. IC 6-2.5-3-2, AS AMENDED BY P.L.181-2016,
1618	1618	38 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1619	1619	39 JULY 1, 2026]: Sec. 2. (a) An excise tax, known as the use tax, is
1620	1620	40 imposed on the storage, use, or consumption of tangible personal
1621	1621	41 property or the use of a service in Indiana if the property or service
1622	1622	42 was acquired in a retail transaction, regardless of the location of that
1623	1623	2025 IN 1229—LS 7042/DI 125 38
1624	1624	1 transaction or of the retail merchant making that transaction.
1625	1625	2 (b) The use tax is also imposed on the storage, use, or consumption
1626	1626	3 of a vehicle, an aircraft, or a watercraft, if the vehicle, aircraft, or
1627	1627	4 watercraft:
1628	1628	5 (1) is acquired in a transaction that is an isolated or occasional
1629	1629	6 sale; and
1630	1630	7 (2) is required to be titled, licensed, or registered by this state for
1631	1631	8 use in Indiana.
1632	1632	9 (c) The use tax is imposed on a contractor's conversion of
1633	1633	10 construction material into real property if that construction material
1634	1634	11 was purchased by the contractor. However, the use tax does not apply
1635	1635	12 to conversions of construction material described in this subsection, if:
1636	1636	13 (1) the state gross retail or use tax has been previously imposed
1637	1637	14 on the contractor's acquisition or use of that construction material;
1638	1638	15 (2) the person for whom the construction material is being
1639	1639	16 converted could have purchased the material exempt from the
1640	1640	17 state gross retail and use taxes, as evidenced by a properly issued
1641	1641	18 exemption certificate, if that person had directly purchased the
1642	1642	19 construction material from a retail merchant in a retail
1643	1643	20 transaction; or
1644	1644	21 (3) the conversion of the construction material into real property
1645	1645	22 is governed by a time and material contract as described in
1646	1646	23 IC 6-2.5-4-9(b).
1647	1647	24 (d) The use tax is imposed on a person who:
1648	1648	25 (1) manufactures, fabricates, or assembles tangible personal
1649	1649	26 property from materials either within or outside Indiana; and
1650	1650	27 (2) uses, stores, distributes, or consumes tangible personal
1651	1651	28 property in Indiana.
1652	1652	29 (e) Notwithstanding any other provision of this section, the use tax
1653	1653	30 is not imposed on the keeping, retaining, or exercising of any right or
1654	1654	31 power over tangible personal property, if:
1655	1655	32 (1) the property is delivered into Indiana by or for the purchaser
1656	1656	33 of the property;
1657	1657	34 (2) the property is delivered in Indiana for the sole purpose of
1658	1658	35 being processed, printed, fabricated, or manufactured into,
1659	1659	36 attached to, or incorporated into other tangible personal property;
1660	1660	37 and
1661	1661	38 (3) the property is subsequently transported out of state for use
1662	1662	39 solely outside Indiana.
1663	1663	40 (f) As used in subsection (g) and IC 6-2.5-5-42:
1664	1664	41 (1) "completion work" means the addition of tangible personal
1665	1665	42 property to or reconfiguration of the interior of an aircraft, if the
1666	1666	2025 IN 1229—LS 7042/DI 125 39
1667	1667	1 work requires the issuance of an airworthiness certificate from
1668	1668	2 the:
1669	1669	3 (A) Federal Aviation Administration; or
1670	1670	4 (B) equivalent foreign regulatory authority;
1671	1671	5 due to the change in the type certification basis of the aircraft
1672	1672	6 resulting from the addition to or reconfiguration of the interior of
1673	1673	7 the aircraft;
1674	1674	8 (2) "delivery" means the physical delivery of the aircraft
1675	1675	9 regardless of who holds title; and
1676	1676	10 (3) "prepurchase evaluation" means an examination of an aircraft
1677	1677	11 by a potential purchaser for the purpose of obtaining information
1678	1678	12 relevant to the potential purchase of the aircraft.
1679	1679	13 (g) Notwithstanding any other provision of this section, the use tax
1680	1680	14 is not imposed on the keeping, retaining, or exercising of any right or
1681	1681	15 power over an aircraft, if:
1682	1682	16 (1) the aircraft is or will be titled, registered, or based (as defined
1683	1683	17 in IC 6-6-6.5-1(m)) in another state or country;
1684	1684	18 (2) the aircraft is delivered to Indiana by or for a nonresident
1685	1685	19 owner or purchaser of the aircraft;
1686	1686	20 (3) the aircraft is delivered to Indiana for the sole purpose of
1687	1687	21 being repaired, refurbished, remanufactured, or subjected to
1688	1688	22 completion work or a prepurchase evaluation; and
1689	1689	23 (4) after completion of the repair, refurbishment, remanufacture,
1690	1690	24 completion work, or prepurchase evaluation, the aircraft is
1691	1691	25 transported to a destination outside Indiana.
1692	1692	26 (h) The amendments made to this section by P.L.153-2012 shall be
1693	1693	27 interpreted to specify and not to change the general assembly's intent
1694	1694	28 with respect to this section.
1695	1695	29 SECTION 28. IC 6-2.5-3-4, AS AMENDED BY P.L.137-2022,
1696	1696	30 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1697	1697	31 JULY 1, 2026]: Sec. 4. (a) The storage, use, and consumption of
1698	1698	32 tangible personal property or the use of a service in Indiana is exempt
1699	1699	33 from the use tax if:
1700	1700	34 (1) the property or service was acquired in a retail transaction and
1701	1701	35 the state gross retail tax has been paid on the acquisition of that
1702	1702	36 property or service; or
1703	1703	37 (2) the property or service was acquired in a transaction that is
1704	1704	38 wholly or partially exempt from the state gross retail tax under
1705	1705	39 any part of IC 6-2.5-5 and the property or service is being used,
1706	1706	40 stored, or consumed for the purpose for which it was exempted.
1707	1707	41 (b) If a person issues a state gross retail or use tax exemption
1708	1708	42 certificate for the acquisition of tangible personal property or a service
1709	1709	2025 IN 1229—LS 7042/DI 125 40
1710	1710	1 and subsequently uses, stores, or consumes that property or service for
1711	1711	2 a nonexempt purpose, then the person shall pay the use tax.
1712	1712	3 SECTION 29. IC 6-2.5-3-5 IS AMENDED TO READ AS
1713	1713	4 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 5. A person is entitled
1714	1714	5 to a credit against the use tax imposed on the use, storage, or
1715	1715	6 consumption of a particular item of tangible personal property or the
1716	1716	7 use of a service equal to the amount, if any, of sales tax, purchase tax,
1717	1717	8 or use tax paid to another state, territory, or possession of the United
1718	1718	9 States for the acquisition of that property or service.
1719	1719	10 SECTION 30. IC 6-2.5-3-6, AS AMENDED BY P.L.146-2020,
1720	1720	11 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1721	1721	12 JULY 1, 2026]: Sec. 6. (a) For purposes of this section, "person"
1722	1722	13 includes an individual who is personally liable for use tax under
1723	1723	14 IC 6-2.5-9-3.
1724	1724	15 (b) The person who uses, stores, or consumes the tangible personal
1725	1725	16 property or uses the service acquired in a retail transaction is
1726	1726	17 personally liable for the use tax.
1727	1727	18 (c) The person liable for the use tax shall pay the use tax to the
1728	1728	19 department.
1729	1729	20 (d) Notwithstanding subsection (c), a person liable for the use tax
1730	1730	21 imposed in respect to a vehicle, watercraft, or aircraft under section
1731	1731	22 2(b) of this chapter shall pay the tax:
1732	1732	23 (1) to the titling agency when the person applies for a title for the
1733	1733	24 vehicle or the watercraft;
1734	1734	25 (2) to the registering agency when the person registers the
1735	1735	26 aircraft; or
1736	1736	27 (3) to the registering agency when the person registers the
1737	1737	28 watercraft because it is a United States Coast Guard documented
1738	1738	29 vessel;
1739	1739	30 unless the person presents proof to the agency that the use tax or state
1740	1740	31 gross retail tax has already been paid with respect to the purchase of
1741	1741	32 the vehicle, watercraft, or aircraft or proof that the taxes are
1742	1742	33 inapplicable because of an exemption under this article.
1743	1743	34 (e) At the time a person pays the use tax for the purchase of a
1744	1744	35 vehicle to a titling agency pursuant to subsection (d), the titling agency
1745	1745	36 shall compute the tax due based on the presumption that the sale price
1746	1746	37 was the average selling price for that vehicle, as determined under a
1747	1747	38 used vehicle buying guide to be chosen by the titling agency. However,
1748	1748	39 the titling agency shall compute the tax due based on the actual sale
1749	1749	40 price of the vehicle if the buyer, at the time the buyer pays the tax to the
1750	1750	41 titling agency, presents documentation to the titling agency sufficient
1751	1751	42 to rebut the presumption set forth in this subsection and to establish the
1752	1752	2025 IN 1229—LS 7042/DI 125 41
1753	1753	1 actual selling price of the vehicle.
1754	1754	2 SECTION 31. IC 6-2.5-3-7, AS AMENDED BY P.L.211-2007,
1755	1755	3 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1756	1756	4 JULY 1, 2026]: Sec. 7. (a) A person who acquires tangible personal
1757	1757	5 property or a service, or both, from a retail merchant for delivery in
1758	1758	6 Indiana is presumed to have:
1759	1759	7 (1) acquired the property for storage, use, or consumption in
1760	1760	8 Indiana; and
1761	1761	9 (2) received the service in Indiana.
1762	1762	10 However, the person or the retail merchant can produce evidence to
1763	1763	11 rebut that presumption.
1764	1764	12 (b) A retail merchant is not required to produce evidence of
1765	1765	13 nontaxability under subsection (a) if the retail merchant receives from
1766	1766	14 the person who acquired the property or service an exemption
1767	1767	15 certificate which certifies, in the form prescribed by the department,
1768	1768	16 that the acquisition is exempt from the use tax.
1769	1769	17 (c) A retail merchant that sells tangible personal property or a
1770	1770	18 service to a person that purchases the tangible personal property or
1771	1771	19 service for use or consumption in providing public transportation under
1772	1772	20 IC 6-2.5-5-27 may verify the exemption by obtaining the person's:
1773	1773	21 (1) name;
1774	1774	22 (2) address; and
1775	1775	23 (3) motor carrier number, United States Department of
1776	1776	24 Transportation number, or any other identifying number
1777	1777	25 authorized by the department.
1778	1778	26 The person engaged in public transportation shall provide a signature
1779	1779	27 to affirm under penalties of perjury that the information provided to the
1780	1780	28 retail merchant is correct and that the tangible personal property or
1781	1781	29 service is being purchased for an exempt purpose.
1782	1782	30 SECTION 32. IC 6-2.5-3-8 IS AMENDED TO READ AS
1783	1783	31 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 8. (a) When a retail
1784	1784	32 merchant collects the use tax from a person, he the retail merchant
1785	1785	33 shall, upon request, issue a receipt to that person for the use tax
1786	1786	34 collected.
1787	1787	35 (b) If the department assesses the use tax against a person for the
1788	1788	36 person's storage, use, or consumption of tangible personal property or
1789	1789	37 use of a service in Indiana, and if the person has already paid the use
1790	1790	38 tax in relation to that property or service to a retail merchant who is
1791	1791	39 registered under IC 6-2.5-6, to the department, or, in the case of a
1792	1792	40 vehicle or aircraft, to the proper state agency, then the person may
1793	1793	41 avoid paying the use tax to the department if he the person can
1794	1794	42 produce a receipt or other written evidence showing that he the person
1795	1795	2025 IN 1229—LS 7042/DI 125 42
1796	1796	1 has so made the use tax payment.
1797	1797	2 SECTION 33. IC 6-2.5-4-1, AS AMENDED BY P.L.137-2022,
1798	1798	3 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1799	1799	4 JULY 1, 2026]: Sec. 1. (a) A person is a retail merchant making a retail
1800	1800	5 transaction when the person engages in selling at retail.
1801	1801	6 (b) A person is engaged in selling at retail when, in the ordinary
1802	1802	7 course of the person's regularly conducted trade or business, the person
1803	1803	8 does either of the following:
1804	1804	9 (1) The person:
1805	1805	10 (A) acquires tangible personal property for the purpose of
1806	1806	11 resale; and
1807	1807	12 (2) (B) transfers that property to another person for
1808	1808	13 consideration.
1809	1809	14 (2) The person performs a service for consideration.
1810	1810	15 (c) For purposes of determining what constitutes selling at retail, it
1811	1811	16 does not matter whether:
1812	1812	17 (1) the property is transferred or the service is performed in the
1813	1813	18 same form as when it was acquired;
1814	1814	19 (2) the property is transferred or the service is performed alone
1815	1815	20 or in conjunction with other property or services; or
1816	1816	21 (3) the property is transferred or the service is performed
1817	1817	22 conditionally or otherwise.
1818	1818	23 (d) Notwithstanding any provision of this article, a person is not
1819	1819	24 making a retail transaction when the person:
1820	1820	25 (1) acquires tangible personal property owned by another person;
1821	1821	26 (2) provides industrial processing or servicing, including
1822	1822	27 enameling or plating, on the property; and
1823	1823	28 (3) (2) transfers the property back to the owner to be sold by that
1824	1824	29 owner either in the same form or as a part of other tangible
1825	1825	30 personal property produced by that owner in the owner's business
1826	1826	31 of manufacturing, assembling, constructing, refining, or
1827	1827	32 processing.
1828	1828	33 SECTION 34. IC 6-2.5-4-3 IS AMENDED TO READ AS
1829	1829	34 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 3. (a) A person is a
1830	1830	35 retail merchant making a retail transaction when he the person
1831	1831	36 regularly and occupationally engages in the business of softening and
1832	1832	37 conditioning water.
1833	1833	38 (b) For purposes of this section, the business of softening and
1834	1834	39 conditioning water includes the exchange of water softening and
1835	1835	40 conditioning tanks in the ordinary course of the business, but does not
1836	1836	41 include the preparatory plumbing and work necessary for the first
1837	1837	42 installation of tanks.
1838	1838	2025 IN 1229—LS 7042/DI 125 43
1839	1839	1 SECTION 35. IC 6-2.5-4-9, AS AMENDED BY P.L.181-2016,
1840	1840	2 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1841	1841	3 JULY 1, 2026]: Sec. 9. (a) A person is a retail merchant making a retail
1842	1842	4 transaction:
1843	1843	5 (1) when the person sells tangible personal property which: or
1844	1844	6 services;
1845	1845	7 (1) (2) when the tangible personal property is to be added to a
1846	1846	8 structure or facility or the service is used to add tangible
1847	1847	9 personal property to a structure or facility by the purchaser;
1848	1848	10 and
1849	1849	11 (2) (3) after its the addition to the structure or facility, the
1850	1850	12 tangible personal property would become a part of the real
1851	1851	13 estate on which the structure or facility is located.
1852	1852	14 (b) A contractor is a retail merchant making a retail transaction
1853	1853	15 when the contractor:
1854	1854	16 (1) disposes of tangible personal property; or
1855	1855	17 (2) converts tangible personal property into real property;
1856	1856	18 under a time and material contract. As such a retail merchant, a
1857	1857	19 contractor described in this subsection shall collect, as an agent of the
1858	1858	20 state, the state gross retail tax on the resale of the construction material
1859	1859	21 and remit the state gross retail tax as provided in this article.
1860	1860	22 (c) Notwithstanding subsections (a) and (b), a transaction described
1861	1861	23 in subsection (a) or (b) is not a retail transaction, if the ultimate
1862	1862	24 purchaser or recipient of the property to be added to a structure or
1863	1863	25 facility would be exempt from the state gross retail and use taxes if that
1864	1864	26 purchaser or recipient had directly purchased the property from the
1865	1865	27 supplier for addition to the structure or facility.
1866	1866	28 SECTION 36. IC 6-2.5-4-10, AS AMENDED BY P.L.108-2019,
1867	1867	29 SECTION 111, IS AMENDED TO READ AS FOLLOWS
1868	1868	30 [EFFECTIVE JULY 1, 2026]: Sec. 10. (a) A person, other than a public
1869	1869	31 utility, is a retail merchant making a retail transaction when the person
1870	1870	32 rents or leases tangible personal property to another person. other than
1871	1871	33 for subrent or sublease.
1872	1872	34 (b) A person is a retail merchant making a retail transaction when
1873	1873	35 the person sells any tangible personal property which has been rented
1874	1874	36 or leased in the regular course of the person's rental or leasing business.
1875	1875	37 (c) Notwithstanding subsection (a), a person is not a retail merchant
1876	1876	38 making a retail transaction when the person rents or leases motion
1877	1877	39 picture film, audio tape, or video tape to another person. However, this
1878	1878	40 exclusion only applies if:
1879	1879	41 (1) the person who pays to rent or lease the film charges
1880	1880	42 admission to those who view the film; or
1881	1881	2025 IN 1229—LS 7042/DI 125 44
1882	1882	1 (2) the person who pays to rent or lease the film or tape
1883	1883	2 broadcasts the film or tape for home viewing or listening.
1884	1884	3 (d) (c) The sharing of passenger motor vehicles and trucks through
1885	1885	4 a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) is
1886	1886	5 a retail transaction.
1887	1887	6 SECTION 37. IC 6-2.5-4-11, AS AMENDED BY P.L.2-2005,
1888	1888	7 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1889	1889	8 JULY 1, 2026]: Sec. 11. (a) A person is a retail merchant making a
1890	1890	9 retail transaction when the person furnishes cable television or radio
1891	1891	10 service or satellite television or radio service that terminates in Indiana.
1892	1892	11 (b) Notwithstanding subsection (a), A person is not a retail merchant
1893	1893	12 making a retail transaction when the person provides, installs,
1894	1894	13 constructs, services, or removes tangible personal property which is
1895	1895	14 used in connection with the furnishing of cable television or radio
1896	1896	15 service or satellite television or radio service.
1897	1897	16 SECTION 38. IC 6-2.5-4-14, AS AMENDED BY P.L.211-2007,
1898	1898	17 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1899	1899	18 JULY 1, 2026]: Sec. 14. The department of administration and each
1900	1900	19 purchasing agent for a state educational institution shall provide the
1901	1901	20 department with a list of every person who desires to enter into a
1902	1902	21 contract to sell tangible personal property or services to an agency (as
1903	1903	22 defined in IC 4-13-2-1) or a state educational institution. The
1904	1904	23 department shall notify the department of administration or the
1905	1905	24 purchasing agent of the state educational institution if a person on the
1906	1906	25 list does not have a registered retail merchant certificate or is
1907	1907	26 delinquent in remitting or paying amounts due to the department under
1908	1908	27 this article.
1909	1909	28 SECTION 39. IC 6-2.5-4-15, AS ADDED BY P.L.153-2006,
1910	1910	29 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1911	1911	30 JULY 1, 2026]: Sec. 15. (a) This section applies to retail transactions
1912	1912	31 occurring after December 31, 2007.
1913	1913	32 (b) A person is a retail merchant making a retail transaction when
1914	1914	33 the person sells tangible personal property or services as part of a
1915	1915	34 bundled transaction.
1916	1916	35 SECTION 40. IC 6-2.5-5-21, AS AMENDED BY P.L.118-2024,
1917	1917	36 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1918	1918	37 JULY 1, 2026]: Sec. 21. (a) Sales of food and food ingredients, and
1919	1919	38 delivery of food and food ingredients, are exempt from the state gross
1920	1920	39 retail tax if:
1921	1921	40 (1) the seller meets the filing requirements under subsection (c)
1922	1922	41 and is an organization described in section 25(a)(1) of this
1923	1923	42 chapter;
1924	1924	2025 IN 1229—LS 7042/DI 125 45
1925	1925	1 (2) the purchaser is a person confined to the purchaser's home
1926	1926	2 because of age, sickness, or infirmity;
1927	1927	3 (3) the seller delivers the food and food ingredients to the
1928	1928	4 purchaser; and
1929	1929	5 (4) the delivery is prescribed as medically necessary by a
1930	1930	6 physician licensed to practice medicine in Indiana.
1931	1931	7 (b) Sales of food and food ingredients, and delivery of food and
1932	1932	8 food ingredients, are exempt from the state gross retail tax if the seller
1933	1933	9 is an organization described in section 25(a)(1) of this chapter, and the
1934	1934	10 purchaser is a patient in a hospital operated by the seller.
1935	1935	11 (c) To obtain the exemption provided by this section, a taxpayer
1936	1936	12 must follow the procedures set forth in section 25(c) of this chapter.
1937	1937	13 SECTION 41. IC 6-2.5-5-26, AS AMENDED BY P.L.193-2023,
1938	1938	14 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1939	1939	15 JULY 1, 2026]: Sec. 26. (a) Sales of tangible personal property or the
1940	1940	16 rendering of services by an organization are exempt from the state
1941	1941	17 gross retail tax if either of the following apply:
1942	1942	18 (1) The organization:
1943	1943	19 (A) is described in section 25(a)(1)(A) through 25(a)(1)(C) of
1944	1944	20 this chapter, section 25(a)(1)(D)(i) through 25(a)(1)(D)(iii) of
1945	1945	21 this chapter, or section 25(a)(1)(D)(ix) of this chapter;
1946	1946	22 (B) makes the sale to make money to carry on a not-for-profit
1947	1947	23 purpose; and
1948	1948	24 (C) did not make more than one hundred thousand dollars
1949	1949	25 ($100,000) in sales in the current calendar year or the previous
1950	1950	26 calendar year.
1951	1951	27 (2) The organization:
1952	1952	28 (A) is described in section 25(a)(1)(D)(iv) through
1953	1953	29 25(a)(1)(D)(viii) of this chapter; or
1954	1954	30 (B) is a youth organization focused on agriculture.
1955	1955	31 Once sales of an organization that meets the qualifications under
1956	1956	32 subdivision (1), but does not meet the qualifications under subdivision
1957	1957	33 (2), exceed the amount described in subdivision (1), the organization
1958	1958	34 is required to collect state gross retail tax on sales on an ongoing basis
1959	1959	35 for the remainder of the calendar year and each calendar year thereafter
1960	1960	36 until the organization makes less than one hundred thousand dollars
1961	1961	37 ($100,000) in sales for two (2) consecutive years.
1962	1962	38 (b) For purposes of subsection (a), the sales of an organization
1963	1963	39 include sales made by all units operating under the organization's
1964	1964	40 registration pursuant to section 25(c) of this chapter.
1965	1965	41 (c) If the qualifications of subsection (a) are not met, sales of
1966	1966	42 tangible personal property or services by an organization described in
1967	1967	2025 IN 1229—LS 7042/DI 125 46
1968	1968	1 section 25(a)(1) of this chapter are exempt from the state gross retail
1969	1969	2 tax, if:
1970	1970	3 (1) the organization is not operated predominantly for social
1971	1971	4 purposes;
1972	1972	5 (2) the property or service sold is designed and intended
1973	1973	6 primarily either for the organization's educational, cultural, or
1974	1974	7 religious purposes, or for improvement of the work skills or
1975	1975	8 professional qualifications of the organization's members; and
1976	1976	9 (3) the property or service sold is not designed or intended
1977	1977	10 primarily for use in carrying on a private or proprietary business.
1978	1978	11 (d) Sales of tangible personal property by a public library, or a
1979	1979	12 charitable organization described in section 25(a)(1) of this chapter
1980	1980	13 formed to support a public library, are exempt from the state gross
1981	1981	14 retail tax if the property sold consists of:
1982	1982	15 (1) items in the library's circulated and publicly available
1983	1983	16 collections, including items from the library's holdings; or
1984	1984	17 (2) items that would typically be included in the library's
1985	1985	18 circulated and publicly available collections and that are donated
1986	1986	19 by individuals or organizations to a public library or to a
1987	1987	20 charitable organization described in section 25(a)(1) of this
1988	1988	21 chapter formed to support a public library.
1989	1989	22 The exemption provided by this subsection does not apply to any other
1990	1990	23 sales of tangible personal property by a public library.
1991	1991	24 (e) The exemption provided by this section does not apply to an
1992	1992	25 accredited college or university's sales of books, stationery,
1993	1993	26 haberdashery, supplies, or other property or noneducational services.
1994	1994	27 (f) To obtain the exemption provided by this section, a taxpayer
1995	1995	28 must follow the procedures set forth in section 25(c) of this chapter.
1996	1996	29 SECTION 42. IC 6-2.5-5-33 IS AMENDED TO READ AS
1997	1997	30 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 33. Sales of tangible
1998	1998	31 personal property or services purchased with food stamps are exempt
1999	1999	32 from the state gross retail tax.
2000	2000	33 SECTION 43. IC 6-2.5-5-58 IS ADDED TO THE INDIANA CODE
2001	2001	34 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2002	2002	35 1, 2026]: Sec. 58. Transactions involving the provision of an
2003	2003	36 educational service classified under NAICS code 61 are exempt
2004	2004	37 from the state gross retail tax.
2005	2005	38 SECTION 44. IC 6-2.5-5-59 IS ADDED TO THE INDIANA CODE
2006	2006	39 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2007	2007	40 1, 2026]: Sec. 59. Transactions involving the provision of a health
2008	2008	41 care and social assistance service classified under NAICS code 62
2009	2009	42 are exempt from the state gross retail tax.
2010	2010	2025 IN 1229—LS 7042/DI 125 47
2011	2011	1 SECTION 45. IC 6-2.5-5-60 IS ADDED TO THE INDIANA CODE
2012	2012	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2013	2013	3 1, 2026]: Sec. 60. Transactions involving the leasing or rental of
2014	2014	4 real property for at least thirty (30) consecutive days are exempt
2015	2015	5 from the state gross retail tax.
2016	2016	6 SECTION 46. IC 6-2.5-5-61 IS ADDED TO THE INDIANA CODE
2017	2017	7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
2018	2018	8 1, 2026]: Sec. 61. Transactions involving labor furnished to a
2019	2019	9 person by the person's employee are exempt from the state gross
2020	2020	10 retail tax.
2021	2021	11 SECTION 47. IC 6-2.5-6-9, AS AMENDED BY P.L.109-2015,
2022	2022	12 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2023	2023	13 JULY 1, 2026]: Sec. 9. (a) In determining the amount of state gross
2024	2024	14 retail and use taxes which a retail merchant must remit under section
2025	2025	15 7 of this chapter, the retail merchant shall, subject to subsections (c)
2026	2026	16 and (d), deduct from the retail merchant's gross retail income from
2027	2027	17 retail transactions made during a particular reporting period, an amount
2028	2028	18 equal to the retail merchant's receivables which:
2029	2029	19 (1) resulted from retail transactions in which the retail merchant
2030	2030	20 did not collect the state gross retail or use tax from the purchaser;
2031	2031	21 (2) resulted from retail transactions on which the retail merchant
2032	2032	22 has previously paid the state gross retail or use tax liability to the
2033	2033	23 department; and
2034	2034	24 (3) were written off as an uncollectible debt for federal tax
2035	2035	25 purposes under Section 166 of the Internal Revenue Code during
2036	2036	26 the particular reporting period.
2037	2037	27 (b) If a retail merchant deducts a receivable under subsection (a)
2038	2038	28 and subsequently collects all or part of that receivable, then the retail
2039	2039	29 merchant shall, subject to subsection (d)(6), include the amount
2040	2040	30 collected as part of the retail merchant's gross retail income from retail
2041	2041	31 transactions for the particular reporting period in which the retail
2042	2042	32 merchant makes the collection.
2043	2043	33 (c) This subsection applies only to retail transactions occurring after
2044	2044	34 December 31, 2006. As used in this subsection, "affiliated group"
2045	2045	35 means any combination of the following:
2046	2046	36 (1) An affiliated group within the meaning provided in Section
2047	2047	37 1504 of the Internal Revenue Code (except that the ownership
2048	2048	38 percentage in Section 1504(a)(2) of the Internal Revenue Code
2049	2049	39 shall be determined using fifty percent (50%) instead of eighty
2050	2050	40 percent (80%)) or a relationship described in Section 267(b)(11)
2051	2051	41 of the Internal Revenue Code.
2052	2052	42 (2) Two (2) or more partnerships (as defined in IC 6-3-1-19),
2053	2053	2025 IN 1229—LS 7042/DI 125 48
2054	2054	1 including limited liability companies and limited liability
2055	2055	2 partnerships, that have the same degree of mutual ownership as
2056	2056	3 an affiliated group described in subdivision (1), as determined
2057	2057	4 under the rules adopted by the department.
2058	2058	5 The right to a deduction under this section is not assignable to an
2059	2059	6 individual or entity that is not part of the same affiliated group as the
2060	2060	7 assignor.
2061	2061	8 (d) The following provisions apply to a deduction for a receivable
2062	2062	9 treated as uncollectible debt under subsection (a):
2063	2063	10 (1) The deduction does not include interest.
2064	2064	11 (2) The amount of the deduction shall be determined in the
2065	2065	12 manner provided by Section 166 of the Internal Revenue Code for
2066	2066	13 bad debts but shall be adjusted to exclude:
2067	2067	14 (A) financing charges or interest;
2068	2068	15 (B) sales or use taxes charged on the purchase price;
2069	2069	16 (C) uncollectible amounts on property that remain in the
2070	2070	17 possession of the seller or a service that is not delivered until
2071	2071	18 the full purchase price is paid;
2072	2072	19 (D) expenses incurred in attempting to collect any debt; and
2073	2073	20 (E) repossessed property.
2074	2074	21 (3) The deduction shall be claimed on the return for the period
2075	2075	22 during which the receivable is written off as uncollectible in the
2076	2076	23 claimant's books and records and is eligible to be deducted for
2077	2077	24 federal income tax purposes. For purposes of this subdivision, a
2078	2078	25 claimant who is not required to file federal income tax returns
2079	2079	26 may deduct an uncollectible receivable on a return filed for the
2080	2080	27 period in which the receivable is written off as uncollectible in the
2081	2081	28 claimant's books and records and would be eligible for a bad debt
2082	2082	29 deduction for federal income tax purposes if the claimant were
2083	2083	30 required to file a federal income tax return.
2084	2084	31 (4) If the amount of uncollectible receivables claimed as a
2085	2085	32 deduction by a retail merchant for a particular reporting period
2086	2086	33 exceeds the amount of the retail merchant's taxable sales for that
2087	2087	34 reporting period, the retail merchant may file a refund claim
2088	2088	35 under IC 6-8.1-9. However, the deadline for the refund claim shall
2089	2089	36 be measured from the due date of the return for the reporting
2090	2090	37 period on which the deduction for the uncollectible receivables
2091	2091	38 could first be claimed.
2092	2092	39 (5) If a retail merchant's filing responsibilities have been assumed
2093	2093	40 by a certified service provider (as defined in IC 6-2.5-11-2), the
2094	2094	41 certified service provider may claim, on behalf of the retail
2095	2095	42 merchant, any deduction or refund for uncollectible receivables
2096	2096	2025 IN 1229—LS 7042/DI 125 49
2097	2097	1 provided by this section. The certified service provider must
2098	2098	2 credit or refund the full amount of any deduction or refund
2099	2099	3 received to the retail merchant.
2100	2100	4 (6) For purposes of reporting a payment received on a previously
2101	2101	5 claimed uncollectible receivable, any payments made on a debt or
2102	2102	6 account shall be applied first proportionally to the taxable price
2103	2103	7 of the property or service and the state gross retail tax or use tax
2104	2104	8 thereon, and secondly to interest, service charges, and any other
2105	2105	9 charges.
2106	2106	10 (7) A retail merchant claiming a deduction for an uncollectible
2107	2107	11 receivable may allocate that receivable among the states that are
2108	2108	12 members of the streamlined sales and use tax agreement if the
2109	2109	13 books and records of the retail merchant support that allocation.
2110	2110	14 SECTION 48. IC 6-2.5-8-4 IS AMENDED TO READ AS
2111	2111	15 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 4. (a) An organization
2112	2112	16 exempt from the state gross retail tax under IC 6-2.5-5-21,
2113	2113	17 IC 6-2.5-5-25, or IC 6-2.5-5-26 may register with the department as a
2114	2114	18 purchaser of property or services in exempt transactions. An exempt
2115	2115	19 organization wishing to register must file an application listing its
2116	2116	20 principal location, but the organization is not required to pay the fee.
2117	2117	21 (b) Upon receiving the application, the department may issue an
2118	2118	22 exempt organization certificate containing a serial number and the
2119	2119	23 principal location of the exempt organization.
2120	2120	24 SECTION 49. IC 6-2.5-10-1, AS AMENDED BY P.L.201-2023,
2121	2121	25 SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2122	2122	26 JULY 1, 2026]: Sec. 1. (a) The department shall account for all state
2123	2123	27 gross retail and use taxes that it collects.
2124	2124	28 (b) Of all the state gross retail and use taxes that the department
2125	2125	29 collects, the department shall determine separately the parts that:
2126	2126	30 (1) the department collects under IC 6-2.5-3.5 (gasoline use tax);
2127	2127	31 (2) the department collects under this article that are
2128	2128	32 attributable to a retail transaction for a service; and
2129	2129	33 (2) (3) the department collects under this article, less the amount
2130	2130	34 amounts described in subdivision (1). subdivisions (1) and (2).
2131	2131	35 (c) The department shall deposit the collections described in
2132	2132	36 subsection (b)(1) in the following manner:
2133	2133	37 (1) For state fiscal year 2017, the following:
2134	2134	38 (A) Fourteen and two hundred eighty-six thousandths percent
2135	2135	39 (14.286%) of the collections shall be deposited in the motor
2136	2136	40 vehicle highway account established under IC 8-14-1.
2137	2137	41 (B) Eighty-five and seven hundred fourteen thousandths
2138	2138	42 percent (85.714%) to the state general fund.
2139	2139	2025 IN 1229—LS 7042/DI 125 50
2140	2140	1 (2) For state fiscal year 2018, the following:
2141	2141	2 (A) Fourteen and two hundred eighty-six thousandths percent
2142	2142	3 (14.286%) of the collections shall be deposited in the motor
2143	2143	4 vehicle highway account established under IC 8-14-1.
2144	2144	5 (B) Fourteen and two hundred eighty-six thousandths percent
2145	2145	6 (14.286%) of the collections shall be deposited in the local
2146	2146	7 road and bridge matching grant fund established under
2147	2147	8 IC 8-23-30.
2148	2148	9 (C) Seventy-one and four hundred twenty-eight thousandths
2149	2149	10 percent (71.428%) to the state general fund.
2150	2150	11 (3) For state fiscal year 2019, the following:
2151	2151	12 (A) Fourteen and two hundred eighty-six thousandths percent
2152	2152	13 (14.286%) of the collections shall be deposited in the motor
2153	2153	14 vehicle highway account established under IC 8-14-1.
2154	2154	15 (B) Twenty-one and four hundred twenty-nine thousandths
2155	2155	16 percent (21.429%) of the collections shall be deposited in the
2156	2156	17 local road and bridge matching grant fund established under
2157	2157	18 IC 8-23-30.
2158	2158	19 (C) Sixty-four and two hundred eighty-five thousandths
2159	2159	20 percent (64.285%) shall be deposited in the state general fund.
2160	2160	21 (4) For state fiscal year 2020 and for each state fiscal year
2161	2161	22 thereafter, the following:
2162	2162	23 (A) Fourteen and two hundred eighty-six thousandths percent
2163	2163	24 (14.286%) of the collections shall be deposited in the motor
2164	2164	25 vehicle highway account established under IC 8-14-1.
2165	2165	26 (B) Twenty-one and four hundred twenty-nine thousandths
2166	2166	27 percent (21.429%) of the collections shall be deposited in the
2167	2167	28 local road and bridge matching grant fund established under
2168	2168	29 IC 8-23-30.
2169	2169	30 (C) The following shall be deposited in the state general fund:
2170	2170	31 (i) For state fiscal year 2020, fifty-three and five hundred
2171	2171	32 seventy-five thousandths percent (53.575%) shall be
2172	2172	33 deposited in the state general fund.
2173	2173	34 (ii) For state fiscal year 2021, forty-two and eight hundred
2174	2174	35 sixty-five thousandths percent (42.865%) shall be deposited
2175	2175	36 in the state general fund.
2176	2176	37 (iii) For state fiscal year 2022, thirty-two and one hundred
2177	2177	38 fifty-five thousandths percent (32.155%) shall be deposited
2178	2178	39 in the state general fund.
2179	2179	40 (iv) For state fiscal year 2023, twenty-one and four hundred
2180	2180	41 forty-five thousandths percent (21.445%) shall be deposited
2181	2181	42 in the state general fund.
2182	2182	2025 IN 1229—LS 7042/DI 125 51
2183	2183	1 (D) The following shall be deposited in the special
2184	2184	2 transportation flexibility fund established by IC 4-12-16.5-2:
2185	2185	3 (i) For state fiscal year 2020, eight and five hundred
2186	2186	4 sixty-eight thousands percent (8.568%) of the collections
2187	2187	5 shall be deposited in the special transportation flexibility
2188	2188	6 fund established by IC 4-12-16.5-2.
2189	2189	7 (ii) For state fiscal year 2021, twelve and eight hundred
2190	2190	8 fifty-two thousandths percent (12.852%) of the collections
2191	2191	9 shall be deposited in the special transportation flexibility
2192	2192	10 fund established by IC 4-12-16.5-2.
2193	2193	11 (iii) For state fiscal year 2022, twelve and eight hundred
2194	2194	12 fifty-two thousandths percent (12.852%) of the collections
2195	2195	13 shall be deposited in the special transportation flexibility
2196	2196	14 fund established by IC 4-12-16.5-2.
2197	2197	15 (iv) For state fiscal year 2023, eight and five hundred
2198	2198	16 sixty-eight thousands percent (8.568%) of the collections
2199	2199	17 shall be deposited in the special transportation flexibility
2200	2200	18 fund established by IC 4-12-16.5-2.
2201	2201	19 (E) The following shall be deposited in the state highway fund:
2202	2202	20 (i) For state fiscal year 2020, two and one hundred forty-two
2203	2203	21 thousandths percent (2.142%) of the collections shall be
2204	2204	22 deposited in the state highway fund.
2205	2205	23 (ii) For state fiscal year 2021, eight and five hundred
2206	2206	24 sixty-eight thousandths percent (8.568%) of the collections
2207	2207	25 shall be deposited in the state highway fund.
2208	2208	26 (iii) For state fiscal year 2022, nineteen and two hundred
2209	2209	27 seventy-eight thousandths percent (19.278%) of the
2210	2210	28 collections shall be deposited in the state highway fund.
2211	2211	29 (iv) For state fiscal year 2023, thirty-four and two hundred
2212	2212	30 seventy-two thousandths percent (34.272%) of the
2213	2213	31 collections shall be deposited in the state highway fund.
2214	2214	32 (v) For state fiscal year 2024 and for each state fiscal year
2215	2215	33 thereafter, sixty-four and two hundred eighty-five
2216	2216	34 thousandths percent (64.285%) of the collections shall be
2217	2217	35 deposited in the state highway fund.
2218	2218	36 (d) The department shall deposit those collections described in
2219	2219	37 subsection (b)(2) (b)(3) in the following manner:
2220	2220	38 (1) Ninety-nine and eight hundred thirty-eight thousandths
2221	2221	39 percent (99.838%) of the collections shall be paid into the state
2222	2222	40 general fund.
2223	2223	41 (2) Thirty-one thousandths of one percent (0.031%) of the
2224	2224	42 collections shall be deposited into the industrial rail service fund
2225	2225	2025 IN 1229—LS 7042/DI 125 52
2226	2226	1 established under IC 8-3-1.7-2.
2227	2227	2 (3) One hundred thirty-one thousandths of one percent (0.131%)
2228	2228	3 of the collections shall be deposited into the commuter rail service
2229	2229	4 fund established under IC 8-3-1.5-20.5.
2230	2230	5 (e) The department shall deposit the collections described in
2231	2231	6 subsection (b)(2) into the local revenue sharing fund established by
2232	2232	7 IC 6-1.2-3-2.
2233	2233	8 SECTION 50. IC 6-3.6-5-1, AS ADDED BY P.L.243-2015,
2234	2234	9 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2235	2235	10 JULY 1, 2025]: Sec. 1. (a) Except as provided in subsection (b), an
2236	2236	11 adopting body may impose a tax under section 6 of this chapter on the
2237	2237	12 adjusted gross income of local taxpayers in the county served by the
2238	2238	13 adopting body.
2239	2239	14 (b) Notwithstanding any other law, the portion of revenue
2240	2240	15 received from any tax imposed on the adjusted gross income of
2241	2241	16 local taxpayers for purposes of property tax relief under this
2242	2242	17 chapter, IC 6-3.6-7, or any other law, may not be distributed for
2243	2243	18 purposes of property tax relief under this chapter or any other law
2244	2244	19 after December 31, 2027.
2245	2245	20 SECTION 51. IC 8-22-3.5-0.5 IS ADDED TO THE INDIANA
2246	2246	21 CODE AS A NEW SECTION TO READ AS FOLLOWS
2247	2247	22 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. Notwithstanding any
2248	2248	23 other law:
2249	2249	24 (1) no airport development zone or allocation area may be
2250	2250	25 established, amended, or renewed; and
2251	2251	26 (2) no bonds, leases, or other obligations may be issued,
2252	2252	27 entered into, or extended for an airport development zone or
2253	2253	28 allocation area;
2254	2254	29 under this chapter after May 9, 2025.
2255	2255	30 SECTION 52. IC 20-46-1-0.5 IS ADDED TO THE INDIANA
2256	2256	31 CODE AS A NEW SECTION TO READ AS FOLLOWS
2257	2257	32 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
2258	2258	33 other law, after May 9, 2025, the governing body of a school
2259	2259	34 corporation may not adopt a resolution to impose an operating
2260	2260	35 referendum levy under section 8 or 8.5 of this chapter.
2261	2261	36 (b) Notwithstanding any other law, after December 31, 2026, an
2262	2262	37 operating referendum tax levy may not be imposed under this
2263	2263	38 chapter.
2264	2264	39 SECTION 53. IC 20-46-7-0.5 IS ADDED TO THE INDIANA
2265	2265	40 CODE AS A NEW SECTION TO READ AS FOLLOWS
2266	2266	41 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. Notwithstanding any
2267	2267	42 other law, after December 31, 2026, a property tax levy may not be
2268	2268	2025 IN 1229—LS 7042/DI 125 53
2269	2269	1 imposed under this chapter.
2270	2270	2 SECTION 54. IC 20-46-7-4, AS AMENDED BY P.L.169-2017,
2271	2271	3 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2272	2272	4 UPON PASSAGE]: Sec. 4. (a) Before January 1, 2027, the governing
2273	2273	5 body of each school corporation shall establish a levy in every calendar
2274	2274	6 year sufficient to pay all obligations.
2275	2275	7 (b) This subsection applies to a school corporation that consolidates
2276	2276	8 under IC 20-23-6-12.5. The governing body shall establish a levy for
2277	2277	9 each subunit (as defined in IC 20-23-6-0.5) in each calendar year
2278	2278	10 sufficient to pay the debts and obligations that the particular subunit
2279	2279	11 incurred before consolidating with one (1) or more school corporations
2280	2280	12 under IC 20-23-6-12.5.
2281	2281	13 SECTION 55. IC 20-46-8-0.5 IS ADDED TO THE INDIANA
2282	2282	14 CODE AS A NEW SECTION TO READ AS FOLLOWS
2283	2283	15 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. Notwithstanding any
2284	2284	16 other law, after December 31, 2026, a property tax levy may not be
2285	2285	17 imposed under this chapter.
2286	2286	18 SECTION 56. IC 20-46-8-1, AS AMENDED BY P.L.104-2022,
2287	2287	19 SECTION 129, IS AMENDED TO READ AS FOLLOWS
2288	2288	20 [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Before January 1, 2027,
2289	2289	21 a school corporation may impose an annual property tax levy for its
2290	2290	22 operations fund.
2291	2291	23 (b) For property taxes first due and payable in 2019, the maximum
2292	2292	24 permissible property tax levy a school corporation may impose for its
2293	2293	25 operations fund (IC 20-40-18) is the following:
2294	2294	26 STEP ONE: Determine the sum of the following:
2295	2295	27 (A) The 2018 maximum permissible transportation levy
2296	2296	28 determined under IC 20-46-4 (repealed January 1, 2019).
2297	2297	29 (B) The 2018 maximum permissible school bus replacement
2298	2298	30 levy determined under IC 20-46-5 (repealed January 1, 2019).
2299	2299	31 (C) The 2018 amount that would be raised from a capital
2300	2300	32 projects fund tax rate equal to the sum of:
2301	2301	33 (i) the maximum capital projects fund rate that the school
2302	2302	34 corporation was authorized to impose for 2018 under
2303	2303	35 IC 20-46-6 (repealed January 1, 2019), after any adjustment
2304	2304	36 under IC 6-1.1-18-12 (but excluding any rate imposed for
2305	2305	37 qualified utility and insurance costs); plus
2306	2306	38 (ii) the capital projects fund rate imposed for qualified utility
2307	2307	39 and insurance costs in 2018.
2308	2308	40 (D) For school corporations described in IC 36-10-13-7, the
2309	2309	41 2018 levy as provided in section 6 of this chapter (repealed
2310	2310	42 January 1, 2019) to provide funding for an art association.
2311	2311	2025 IN 1229—LS 7042/DI 125 54
2312	2312	1 (E) For a school corporation in a county having a population
2313	2313	2 of more than two hundred fifty thousand (250,000) and less
2314	2314	3 than three hundred thousand (300,000), the 2018 levy as
2315	2315	4 provided in section 7 of this chapter (repealed January 1,
2316	2316	5 2019) to provide funding for a historical society.
2317	2317	6 (F) For a school corporation described in IC 36-10-14-1, the
2318	2318	7 2018 levy as provided in section 8 of this chapter (repealed
2319	2319	8 January 1, 2019) to provide funding for a public playground.
2320	2320	9 STEP TWO: Determine the product of:
2321	2321	10 (A) The amount determined in STEP ONE, after eliminating
2322	2322	11 the effects of temporary excessive levy appeals and any other
2323	2323	12 temporary adjustments made to each of these levies for 2018
2324	2324	13 (regardless of whether the school corporation imposed the
2325	2325	14 entire amount of that maximum permissible levy for the
2326	2326	15 previous year); multiplied by
2327	2327	16 (B) the maximum levy growth quotient determined under
2328	2328	17 IC 6-1.1-18.5-2.
2329	2329	18 STEP THREE: Determine the result of the following:
2330	2330	19 (A) Determine the sum of:
2331	2331	20 (i) the amount determined in STEP TWO; plus
2332	2332	21 (ii) the amount granted due to an appeal to increase the levy
2333	2333	22 for transportation for 2019.
2334	2334	23 (B) Make the school bus replacement adjustment for 2019.
2335	2335	24 (c) After 2019, the maximum permissible property tax levy a school
2336	2336	25 corporation may impose for its operations fund for a particular year is
2337	2337	26 the following:
2338	2338	27 STEP ONE: Determine the product of:
2339	2339	28 (A) the maximum permissible property tax levy for the school
2340	2340	29 corporation's operations fund for the previous year, after
2341	2341	30 eliminating the effects of temporary excessive levy appeals
2342	2342	31 and any other temporary adjustments made to the levy for the
2343	2343	32 previous year (regardless of whether the school corporation
2344	2344	33 imposed the entire amount of the maximum permissible levy
2345	2345	34 for the previous year); multiplied by
2346	2346	35 (B) the maximum levy growth quotient determined under
2347	2347	36 IC 6-1.1-18.5-2.
2348	2348	37 STEP TWO: Determine the result of the following:
2349	2349	38 (A) Determine the sum of:
2350	2350	39 (i) the amount determined in STEP ONE; plus
2351	2351	40 (ii) the amount granted due to an appeal to increase the
2352	2352	41 maximum permissible operations fund levy for the year
2353	2353	42 under section 3 of this chapter for transportation.
2354	2354	2025 IN 1229—LS 7042/DI 125 55
2355	2355	1 (B) Make the school bus replacement adjustment permitted by
2356	2356	2 section 3 of this chapter.
2357	2357	3 SECTION 57. IC 20-46-9-0.5 IS ADDED TO THE INDIANA
2358	2358	4 CODE AS A NEW SECTION TO READ AS FOLLOWS
2359	2359	5 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
2360	2360	6 other law, after May 9, 2025, the governing body of a school
2361	2361	7 corporation may not adopt a resolution to impose a school safety
2362	2362	8 referendum levy under section 6 or 7 of this chapter.
2363	2363	9 (b) Notwithstanding any other law, after December 31, 2026, a
2364	2364	10 school safety referendum tax levy may not be imposed under this
2365	2365	11 chapter.
2366	2366	12 SECTION 58. IC 36-2-15-0.1 IS ADDED TO THE INDIANA
2367	2367	13 CODE AS A NEW SECTION TO READ AS FOLLOWS
2368	2368	14 [EFFECTIVE UPON PASSAGE]: Sec. 0.1. (a) This section applies to
2369	2369	15 the office of a county assessor who is serving on May 10, 2025.
2370	2370	16 (b) Upon the expiration of a county assessor's term, the office of
2371	2371	17 county assessor is abolished.
2372	2372	18 (c) Upon the expiration of a county assessor's term, all the
2373	2373	19 powers and duties of the county assessor are transferred to the
2374	2374	20 county auditor.
2375	2375	21 (d) Upon the expiration of a county assessor's term, all of the
2376	2376	22 following are transferred to the county auditor:
2377	2377	23 (1) All employment positions, as of the expiration of a county
2378	2378	24 assessor's term, of all employees of the county assessor.
2379	2379	25 (2) The real and personal property of the county assessor.
2380	2380	26 (3) The obligations outstanding, as of the expiration of a
2381	2381	27 county assessor's term, of the county assessor.
2382	2382	28 (4) The funds of the county assessor.
2383	2383	29 (e) The county auditor shall interview, or give the opportunity
2384	2384	30 to interview to, each individual who:
2385	2385	31 (1) is, as of the expiration of a county assessor's term, an
2386	2386	32 employee of the county assessor; and
2387	2387	33 (2) applies for an employment position referred to in
2388	2388	34 subsection (d)(1).
2389	2389	35 SECTION 59. IC 36-2-15-0.2 IS ADDED TO THE INDIANA
2390	2390	36 CODE AS A NEW SECTION TO READ AS FOLLOWS
2391	2391	37 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. (a) Each county assessor
2392	2392	38 whose duties will be transferred under section 0.1 of this chapter
2393	2393	39 shall:
2394	2394	40 (1) organize the records of the assessor's office relating to the
2395	2395	41 assessment of tangible property in a manner prescribed by the
2396	2396	42 department of local government finance; and
2397	2397	2025 IN 1229—LS 7042/DI 125 56
2398	2398	1 (2) transfer the records upon the expiration of a county
2399	2399	2 assessor's term as directed by the department of local
2400	2400	3 government finance.
2401	2401	4 (b) The department of local government finance shall determine
2402	2402	5 a procedure and schedule for the transfer of the records and
2403	2403	6 operations from the county assessor to the county auditor. The
2404	2404	7 assessors shall assist each other and coordinate their efforts to:
2405	2405	8 (1) ensure an orderly transfer of all records; and
2406	2406	9 (2) provide for an uninterrupted and professional transition
2407	2407	10 of any functions of assessors that remain following the
2408	2408	11 abolishment of the imposition of property tax under IC 6-1.2
2409	2409	12 and that are consistent with this chapter, IC 6-1.1, and the
2410	2410	13 directions of the department of local government finance.
2411	2411	14 SECTION 60. IC 36-2-15-2, AS AMENDED BY P.L.167-2015,
2412	2412	15 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2413	2413	16 JULY 1, 2025]: Sec. 2. (a) A county assessor shall be elected under
2414	2414	17 IC 3-10-2-13 by the voters of the county.
2415	2415	18 (b) To be eligible to serve as an assessor, an individual must meet
2416	2416	19 the following qualifications before taking office:
2417	2417	20 (1) If the individual has never held the office of county assessor,
2418	2418	21 the individual must have attained a level two assessor-appraiser
2419	2419	22 certification under IC 6-1.1-35.5.
2420	2420	23 (2) If the individual has held the office of county assessor, the
2421	2421	24 individual must have attained a level three assessor-appraiser
2422	2422	25 certification under IC 6-1.1-35.5.
2423	2423	26 (c) A county assessor must reside within the county as provided in
2424	2424	27 Article 6, Section 6 of the Constitution of the State of Indiana. The
2425	2425	28 assessor forfeits office if the assessor ceases to be a resident of the
2426	2426	29 county.
2427	2427	30 (d) The term of office of a county assessor is four (4) years,
2428	2428	31 beginning January 1 after election and continuing until a successor is
2429	2429	32 elected and qualified.
2430	2430	33 (e) This section expires July 1, 2025.
2431	2431	34 SECTION 61. IC 36-2-15-3, AS AMENDED BY P.L.146-2008,
2432	2432	35 SECTION 692, IS AMENDED TO READ AS FOLLOWS
2433	2433	36 [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) Subject to subsection (b), the
2434	2434	37 assessor shall keep the assessor's office in a building provided at the
2435	2435	38 county seat by the county executive. The assessor shall keep the office
2436	2436	39 open for business during regular business hours on every day of the
2437	2437	40 year except Sundays and legal holidays. However, the assessor may
2438	2438	41 close the office on days specified by the county executive according to
2439	2439	42 custom and practice of the county.
2440	2440	2025 IN 1229—LS 7042/DI 125 57
2441	2441	1 (b) After June 30, 2008, the county assessor may establish one (1)
2442	2442	2 or more satellite offices in the county.
2443	2443	3 (c) This section expires July 1, 2025.
2444	2444	4 SECTION 62. IC 36-2-15-5, AS AMENDED BY P.L.167-2015,
2445	2445	5 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2446	2446	6 JULY 1, 2025]: Sec. 5. (a) Subject to section 0.1 of this chapter, the
2447	2447	7 county assessor shall perform the functions assigned by statute to the
2448	2448	8 county assessor, including the following:
2449	2449	9 (1) Countywide equalization.
2450	2450	10 (2) Selection and maintenance of a countywide computer system.
2451	2451	11 (3) Certification of gross assessments to the county auditor.
2452	2452	12 (4) Discovery of omitted property.
2453	2453	13 (5) In
2454	2454	14 (A) a township in which the transfer of duties of the elected
2455	2455	15 township assessor is required by subsection (c); or
2456	2456	16 (B) a township in which the duties relating to the assessment
2457	2457	17 of tangible property are not required to be performed by a
2458	2458	18 township assessor elected under IC 36-6-5,
2459	2459	19 performance of the assessment duties prescribed by IC 6-1.1.
2460	2460	20 (b) A transfer of duties between assessors does not affect:
2461	2461	21 (1) any assessment, assessment appeal, or other official action
2462	2462	22 made by an assessor before the transfer; or
2463	2463	23 (2) any pending action against, or the rights of any party that may
2464	2464	24 possess a legal claim against, an assessor that is not described in
2465	2465	25 subdivision (1).
2466	2466	26 Any assessment, assessment appeal, or other official action of an
2467	2467	27 assessor made by the assessor within the scope of the assessor's official
2468	2468	28 duties before the transfer is considered as having been made by the
2469	2469	29 assessor to whom the duties are transferred.
2470	2470	30 (c) If the individual elected to the office of township assessor has
2471	2471	31 not attained the assessor-appraiser certification level required by
2472	2472	32 IC 36-6-5-1 before the date the term of office begins, the assessment
2473	2473	33 duties prescribed by IC 6-1.1 that would otherwise be performed in the
2474	2474	34 township by the township assessor are transferred to the county
2475	2475	35 assessor on that date. If assessment duties in a township are transferred
2476	2476	36 to the county assessor under this subsection, those assessment duties
2477	2477	37 are transferred back to the township assessor if at a later election an
2478	2478	38 individual who has attained the assessor-appraiser certification level
2479	2479	39 required by IC 36-6-5-1 is elected to the office of township assessor.
2480	2480	40 SECTION 63. IC 36-2-15-7, AS ADDED BY P.L.219-2007,
2481	2481	41 SECTION 109, IS AMENDED TO READ AS FOLLOWS
2482	2482	42 [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) Each county assessor, elected
2483	2483	2025 IN 1229—LS 7042/DI 125 58
2484	2484	1 township assessor, or township trustee-assessor whose assessment
2485	2485	2 duties prescribed by IC 6-1.1 will be transferred under section 5 of this
2486	2486	3 chapter shall:
2487	2487	4 (1) organize the records of the assessor's office relating to the
2488	2488	5 assessment of tangible property in a manner prescribed by the
2489	2489	6 department of local government finance; and
2490	2490	7 (2) transfer the records as directed by the department of local
2491	2491	8 government finance.
2492	2492	9 (b) The department of local government finance shall determine a
2493	2493	10 procedure and schedule for the transfer of the records and operations.
2494	2494	11 The assessors shall assist each other and coordinate their efforts to:
2495	2495	12 (1) ensure an orderly transfer of all records; and
2496	2496	13 (2) provide for an uninterrupted and professional transition of the
2497	2497	14 property assessment functions consistent with this chapter and the
2498	2498	15 directions of the department of local government finance.
2499	2499	16 (c) This section expires July 1, 2025.
2500	2500	17 SECTION 64. IC 36-6-5-0.3 IS ADDED TO THE INDIANA CODE
2501	2501	18 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
2502	2502	19 UPON PASSAGE]: Sec. 0.3. (a) This section applies to the office of
2503	2503	20 a township assessor who is serving on May 10, 2025.
2504	2504	21 (b) Upon the expiration of a township assessor's term, the office
2505	2505	22 of township assessor is abolished.
2506	2506	23 (c) Upon the expiration of a township assessor's term, all the
2507	2507	24 powers and duties of the township assessor are transferred to the
2508	2508	25 county auditor of the county in which the township is located.
2509	2509	26 (d) Upon the expiration of a township assessor's term, all of the
2510	2510	27 following are transferred to the county auditor:
2511	2511	28 (1) All employment positions, as of the expiration of a
2512	2512	29 township assessor's term, of all employees of each township
2513	2513	30 assessor in the county.
2514	2514	31 (2) The real and personal property of each township assessor
2515	2515	32 in the county.
2516	2516	33 (3) The obligations outstanding, as of the expiration of a
2517	2517	34 township assessor's term, of each township assessor in the
2518	2518	35 county.
2519	2519	36 (4) The funds of each township assessor in the county.
2520	2520	37 (e) The county auditor shall interview, or give the opportunity
2521	2521	38 to interview to, each individual who:
2522	2522	39 (1) is, as of the expiration of a township assessor's term, an
2523	2523	40 employee of a township assessor in the county; and
2524	2524	41 (2) applies for an employment position referred to in
2525	2525	42 subsection (d)(1).
2526	2526	2025 IN 1229—LS 7042/DI 125 59
2527	2527	1 SECTION 65. IC 36-6-5-0.5 IS ADDED TO THE INDIANA CODE
2528	2528	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
2529	2529	3 UPON PASSAGE]: Sec. 0.5. (a) Each township assessor whose
2530	2530	4 duties will be transferred under section 0.3 of this chapter shall:
2531	2531	5 (1) organize the records of the assessor's office relating to the
2532	2532	6 assessment of tangible property in a manner prescribed by the
2533	2533	7 department of local government finance; and
2534	2534	8 (2) transfer the records upon the expiration of a township
2535	2535	9 assessor's term, as directed by the department of local
2536	2536	10 government finance.
2537	2537	11 (b) The department of local government finance shall determine
2538	2538	12 a procedure and schedule for the transfer of the records and
2539	2539	13 operations from the township assessor to the county auditor. The
2540	2540	14 assessors shall assist each other and coordinate their efforts to:
2541	2541	15 (1) ensure an orderly transfer of all records; and
2542	2542	16 (2) provide for an uninterrupted and professional transition
2543	2543	17 of any functions of assessors that remain following the
2544	2544	18 abolishment of the imposition of property tax under IC 6-1.2
2545	2545	19 and that are consistent with this chapter, IC 6-1.1, and the
2546	2546	20 directions of the department of local government finance.
2547	2547	21 SECTION 66. IC 36-6-5-1, AS AMENDED BY P.L.167-2015,
2548	2548	22 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2549	2549	23 JULY 1, 2025]: Sec. 1. (a) Subject to subsection (g), before 2009, a
2550	2550	24 township assessor shall be elected under IC 3-10-2-13 by the voters of
2551	2551	25 each township:
2552	2552	26 (1) having:
2553	2553	27 (A) a population of more than eight thousand (8,000); or
2554	2554	28 (B) an elected township assessor or the authority to elect a
2555	2555	29 township assessor before January 1, 1979; and
2556	2556	30 (2) in which the number of parcels of real property on January 1,
2557	2557	31 2008, is at least fifteen thousand (15,000).
2558	2558	32 (b) Subject to subsection (g), before 2009, a township assessor shall
2559	2559	33 be elected under IC 3-10-2-14 (repealed effective July 1, 2008) in each
2560	2560	34 township:
2561	2561	35 (1) having a population of more than five thousand (5,000) but
2562	2562	36 not more than eight thousand (8,000), if:
2563	2563	37 (A) the legislative body of the township, by resolution,
2564	2564	38 declares that the office of township assessor is necessary; and
2565	2565	39 (B) the resolution is filed with the county election board not
2566	2566	40 later than the first date that a declaration of candidacy may be
2567	2567	41 filed under IC 3-8-2; and
2568	2568	42 (2) in which the number of parcels of real property on January 1,
2569	2569	2025 IN 1229—LS 7042/DI 125 60
2570	2570	1 2008, is at least fifteen thousand (15,000).
2571	2571	2 (c) Subject to subsection (g), a township government that is created
2572	2572	3 by merger under IC 36-6-1.5 shall elect only one (1) township assessor
2573	2573	4 under this section.
2574	2574	5 (d) Subject to subsection (g), after 2008 a township assessor shall
2575	2575	6 be elected under IC 3-10-2-13 only by the voters of each township in
2576	2576	7 which:
2577	2577	8 (1) the number of parcels of real property on January 1, 2008, is
2578	2578	9 at least fifteen thousand (15,000); and
2579	2579	10 (2) the transfer to the county assessor of the assessment duties
2580	2580	11 prescribed by IC 6-1.1 is disapproved in the referendum under
2581	2581	12 IC 36-2-15.
2582	2582	13 (e) The township assessor must reside within the township as
2583	2583	14 provided in Article 6, Section 6 of the Constitution of the State of
2584	2584	15 Indiana. The assessor forfeits office if the assessor ceases to be a
2585	2585	16 resident of the township.
2586	2586	17 (f) The term of office of a township assessor is four (4) years,
2587	2587	18 beginning January 1 after election and continuing until a successor is
2588	2588	19 elected and qualified. However, the term of office of a township
2589	2589	20 assessor elected at a general election in which no other township
2590	2590	21 officer is elected ends on December 31 after the next election in which
2591	2591	22 any other township officer is elected.
2592	2592	23 (g) To be eligible to serve as a township assessor, an individual
2593	2593	24 must meet the following qualifications before taking office:
2594	2594	25 (1) If the individual has never held the office of township
2595	2595	26 assessor, the individual must have attained a level two
2596	2596	27 assessor-appraiser certification under IC 6-1.1-35.5.
2597	2597	28 (2) If the individual has held the office of township assessor, the
2598	2598	29 individual must have attained a level three assessor-appraiser
2599	2599	30 certification under IC 6-1.1-35.5.
2600	2600	31 (h) After June 30, 2008, the county assessor shall perform the
2601	2601	32 assessment duties prescribed by IC 6-1.1 in a township in which the
2602	2602	33 number of parcels of real property on January 1, 2008, is less than
2603	2603	34 fifteen thousand (15,000).
2604	2604	35 (i) This section expires July 1, 2025.
2605	2605	36 SECTION 67. IC 36-6-5-3, AS AMENDED BY P.L.146-2008,
2606	2606	37 SECTION 711, IS AMENDED TO READ AS FOLLOWS
2607	2607	38 [EFFECTIVE JULY 1, 2025]: Sec. 3. (a) Except as provided in
2608	2608	39 subsection (b) and section 0.3 of this chapter, the assessor shall
2609	2609	40 perform the duties prescribed by statute, including assessment duties
2610	2610	41 prescribed by IC 6-1.1.
2611	2611	42 (b) Subsection (a) does not apply if the duties of the township
2612	2612	2025 IN 1229—LS 7042/DI 125 61
2613	2613	1 assessor have been transferred to the county assessor as described in
2614	2614	2 IC 6-1.1-1-24 or IC 36-2-15.
2615	2615	3 SECTION 68. IC 36-6-5-4, AS AMENDED BY P.L.167-2015,
2616	2616	4 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2617	2617	5 JULY 1, 2025]: Sec. 4. (a) Before July 1, 2017, an employee of a
2618	2618	6 township assessor who performs real property assessing duties must
2619	2619	7 have attained the level of certification under IC 6-1.1-35.5 that the
2620	2620	8 township assessor is required to attain under section 1(g) of this
2621	2621	9 chapter.
2622	2622	10 (b) After June 30, 2017, an employee of a township assessor who is
2623	2623	11 responsible for placing an assessed valuation on real property must
2624	2624	12 have attained the certification of a level three assessor-appraiser under
2625	2625	13 IC 6-1.1-35.5.
2626	2626	14 (c) This subsection applies after June 30, 2017. If the township
2627	2627	15 assessor has not attained the certification of a level three
2628	2628	16 assessor-appraiser under IC 6-1.1-35.5, the township fiscal body shall
2629	2629	17 authorize either of the following:
2630	2630	18 (1) The appointment of at least one (1) deputy or employee who
2631	2631	19 has attained the certification of a level three assessor-appraiser
2632	2632	20 under IC 6-1.1-35.5.
2633	2633	21 (2) Contracting with a person who has attained, or who employs
2634	2634	22 for purposes of the contract an individual who has attained, the
2635	2635	23 certification of a level three assessor-appraiser under
2636	2636	24 IC 6-1.1-35.5. The individual under contract with the township
2637	2637	25 assessor under this subdivision shall assist the township assessor
2638	2638	26 with assessment duties as determined by the township assessor.
2639	2639	27 Payment for the deputy, employee, or contractor shall be made from the
2640	2640	28 budget for the township assessor.
2641	2641	29 (d) This section expires July 1, 2025.
2642	2642	30 SECTION 69. IC 36-7-13-0.5 IS ADDED TO THE INDIANA
2643	2643	31 CODE AS A NEW SECTION TO READ AS FOLLOWS
2644	2644	32 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
2645	2645	33 other law:
2646	2646	34 (1) no district or allocation area may be established, amended,
2647	2647	35 or renewed; and
2648	2648	36 (2) no bonds, leases, or other obligations may be issued,
2649	2649	37 entered into, or extended for a district or allocation area;
2650	2650	38 under this chapter after May 9, 2025.
2651	2651	39 (b) This section may not be construed to prohibit the refunding
2652	2652	40 or refinancing of obligations incurred before May 10, 2025.
2653	2653	41 SECTION 70. IC 36-7-14-0.7 IS ADDED TO THE INDIANA
2654	2654	42 CODE AS A NEW SECTION TO READ AS FOLLOWS
2655	2655	2025 IN 1229—LS 7042/DI 125 62
2656	2656	1 [EFFECTIVE UPON PASSAGE]: Sec. 0.7. (a) As used in this section,
2657	2657	2 "project area" refers to:
2658	2658	3 (1) an area needing redevelopment;
2659	2659	4 (2) a redevelopment project area;
2660	2660	5 (3) an urban renewal project area;
2661	2661	6 (4) an economic development area;
2662	2662	7 (5) an area including a project for housing or age-restricted
2663	2663	8 housing;
2664	2664	9 (6) an area including a residential housing development
2665	2665	10 program; and
2666	2666	11 (7) any other development district or program by any other
2667	2667	12 name that is described in this chapter.
2668	2668	13 (b) Notwithstanding any other law:
2669	2669	14 (1) no project area or allocation area may be established,
2670	2670	15 amended, or renewed; and
2671	2671	16 (2) no bonds, leases, or other obligations may be issued,
2672	2672	17 entered into, or extended for a project area or allocation area;
2673	2673	18 under this chapter after May 9, 2025.
2674	2674	19 (c) This section may not be construed to prohibit the refunding
2675	2675	20 or refinancing of obligations incurred before May 10, 2025.
2676	2676	21 SECTION 71. IC 36-7-14.5-0.5 IS ADDED TO THE INDIANA
2677	2677	22 CODE AS A NEW SECTION TO READ AS FOLLOWS
2678	2678	23 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
2679	2679	24 other law:
2680	2680	25 (1) no economic development area, special taxing district, or
2681	2681	26 allocation area may be established, amended, or renewed; and
2682	2682	27 (2) no bonds, leases, or other obligations may be issued,
2683	2683	28 entered into, or extended for an economic development area,
2684	2684	29 special taxing district, or allocation area;
2685	2685	30 under this chapter after May 9, 2025.
2686	2686	31 (b) This section may not be construed to prohibit the refunding
2687	2687	32 or refinancing of obligations incurred before May 10, 2025.
2688	2688	33 SECTION 72. IC 36-7-15.1-0.5 IS ADDED TO THE INDIANA
2689	2689	34 CODE AS A NEW SECTION TO READ AS FOLLOWS
2690	2690	35 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) As used in this section,
2691	2691	36 "project area" refers to:
2692	2692	37 (1) an area needing redevelopment;
2693	2693	38 (2) a redevelopment project area;
2694	2694	39 (3) an urban renewal project area;
2695	2695	40 (4) an economic development area;
2696	2696	41 (5) an area including a project for housing or age-restricted
2697	2697	42 housing;
2698	2698	2025 IN 1229—LS 7042/DI 125 63
2699	2699	1 (6) an area including a residential housing development
2700	2700	2 program; and
2701	2701	3 (7) any other development district or program by any other
2702	2702	4 name that is described in this chapter.
2703	2703	5 (b) Notwithstanding any other law:
2704	2704	6 (1) no project area or allocation area may be established,
2705	2705	7 amended, or renewed; and
2706	2706	8 (2) no bonds, leases, or other obligations may be issued,
2707	2707	9 entered into, or extended for a project area or allocation area;
2708	2708	10 under this chapter after May 9, 2025.
2709	2709	11 (c) This section may not be construed to prohibit the refunding
2710	2710	12 or refinancing of obligations incurred before May 10, 2025.
2711	2711	13 SECTION 73. IC 36-7-30-0.5 IS ADDED TO THE INDIANA
2712	2712	14 CODE AS A NEW SECTION TO READ AS FOLLOWS
2713	2713	15 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
2714	2714	16 other law:
2715	2715	17 (1) no special taxing district or allocation area may be
2716	2716	18 established, amended, or renewed; and
2717	2717	19 (2) no bonds, leases, or other obligations may be issued,
2718	2718	20 entered into, or extended for a special taxing district or
2719	2719	21 allocation area;
2720	2720	22 under this chapter after May 9, 2025.
2721	2721	23 (b) This section may not be construed to prohibit the refunding
2722	2722	24 or refinancing of obligations incurred before May 10, 2025.
2723	2723	25 SECTION 74. IC 36-7-30.5-0.5 IS ADDED TO THE INDIANA
2724	2724	26 CODE AS A NEW SECTION TO READ AS FOLLOWS
2725	2725	27 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
2726	2726	28 other law:
2727	2727	29 (1) no military base development area or allocation area may
2728	2728	30 be established, amended, or renewed; and
2729	2729	31 (2) no bonds, leases, or other obligations may be issued,
2730	2730	32 entered into, or extended for a military base development
2731	2731	33 area or allocation area;
2732	2732	34 under this chapter after May 9, 2025.
2733	2733	35 (b) This section may not be construed to prohibit the refunding
2734	2734	36 or refinancing of obligations incurred before May 10, 2025.
2735	2735	37 SECTION 75. IC 36-7-32-0.5 IS ADDED TO THE INDIANA
2736	2736	38 CODE AS A NEW SECTION TO READ AS FOLLOWS
2737	2737	39 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
2738	2738	40 other law:
2739	2739	41 (1) no certified technology park or allocation area may be
2740	2740	42 established, amended, or renewed; and
2741	2741	2025 IN 1229—LS 7042/DI 125 64
2742	2742	1 (2) no bonds, leases, or other obligations may be issued,
2743	2743	2 entered into, or extended for a certified technology park or
2744	2744	3 allocation area;
2745	2745	4 under this chapter after May 9, 2025.
2746	2746	5 (b) This section may not be construed to prohibit the refunding
2747	2747	6 or refinancing of obligations incurred before May 10, 2025.
2748	2748	7 SECTION 76. IC 36-7.5-4.5-0.2 IS ADDED TO THE INDIANA
2749	2749	8 CODE AS A NEW SECTION TO READ AS FOLLOWS
2750	2750	9 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. (a) Notwithstanding any
2751	2751	10 other law:
2752	2752	11 (1) no allocation area capturing property tax revenue may be
2753	2753	12 established, amended, or renewed; and
2754	2754	13 (2) no bonds, leases, or other obligations may be issued,
2755	2755	14 entered into, or extended for an allocation area capturing
2756	2756	15 property tax revenue;
2757	2757	16 under this chapter after May 9, 2025.
2758	2758	17 (b) This section may not be construed to prohibit the refunding
2759	2759	18 or refinancing of obligations incurred before May 10, 2025.
2760	2760	19 SECTION 77. [EFFECTIVE JULY 1, 2026] (a) For purposes of
2761	2761	20 IC 6-2.5, as amended by this act, with respect to a transaction in
2762	2762	21 which services are delivered before July 1, 2026, and after June 30,
2763	2763	22 2026, by a retail merchant, only transactions for which the charges
2764	2764	23 are collected on original statements and billings dated after June
2765	2765	24 30, 2026, shall be considered as having occurred after June 30,
2766	2766	25 2026.
2767	2767	26 (b) This SECTION expires July 1, 2028.
2768	2768	27 SECTION 78. [EFFECTIVE JULY 1, 2025] (a) The legislative
2769	2769	28 services agency shall prepare legislation for introduction in the
2770	2770	29 2026 regular session of the general assembly to make appropriate
2771	2771	30 changes in statutes that are required by this act.
2772	2772	31 (b) This SECTION expires December 31, 2026.
2773	2773	32 SECTION 79. An emergency is declared for this act.
2774	2774	2025 IN 1229—LS 7042/DI 125