Indiana 2025 Regular Session

Indiana House Bill HB1402 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. 1402
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 5-1-14-14; IC 5-16-9-3; IC 6-1.1;
7	7	IC 6-3-2-27.5; IC 6-3.5; IC 6-3.6; IC 6-6; IC 6-9-10.5-8; IC 8-9.5-8-17;
8	8	IC 8-18-22-6; IC 8-22-3.5-9; IC 12-20-25; IC 36-1-8-5.1; IC 36-4-14;
9	9	IC 36-7; IC 36-7.5-4-2.5; IC 36-8-19-7.5; IC 36-8-19-8.
10	10	Synopsis: Local government finance. Phases in a total exemption for
11	11	business personal property that is placed in service after January 1,
12	12	2025. Specifies that the exemption does not apply to business personal
13	13	property that is placed in service on or before January 1, 2025.
14	14	Increases the acquisition cost threshold for the business personal
15	15	property tax exemption from $80,000 to $200,000 over six years.
16	16	Provides that the 30% minimum valuation limitation does not apply to
17	17	business personal property placed in service after January 1, 2025.
18	18	Phases down the minimum valuation percentage from 30% to zero for
19	19	business personal property placed in service on or before January 1,
20	20	2025. Phases down the homestead standard deduction over five years
21	21	to zero beginning for taxes due and payable in 2031. Phases in an
22	22	increase in the supplemental homestead deduction over five years to
23	23	2/3 of the assessed value (AV) of the homestead. Provides an AV
24	24	deduction for all property that is subject to the 2% circuit breaker credit
25	25	for excessive property taxes for assessment dates beginning in 2025.
26	26	Provides that the amount of the AV deduction is increased over a five
27	27	year period from a 7% AV deduction for taxes due and payable in 2026
28	28	to a 1/3 AV deduction for taxes due and payable in 2031, and each
29	29	taxable year thereafter. Expires certain property tax deductions allowed
30	30	(Continued next page)
31	31	Effective: Upon passage; January 1, 2025 (retroactive); July 1, 2025;
32	32	January 1, 2026; June 30, 2026; July 1, 2026; January 1, 2027.
33	33	Thompson, Clere
34	34	January 13, 2025, read first time and referred to Committee on Ways and Means.
35	35	2025 IN 1402—LS 7150/DI 120 Digest Continued
36	36	in current law, and instead allows a credit against local property taxes
37	37	in certain instances. Increases, beginning in 2027, the maximum local
38	38	income tax (LIT) expenditure rate for all counties to 2.9%. Authorizes
39	39	a city or town to impose a municipal LIT rate beginning in 2027 not to
40	40	exceed 1.2%. Provides four rate categories within the county's total
41	41	expenditure rate that a county may adopt: (1) up to a 1.2% rate for
42	42	county general purpose revenue; (2) up to a 0.4% rate for fire
43	43	protection and emergency medical services; (3) up to a 0.2% rate for
44	44	nonmunicipal civil taxing unit general purpose revenue; and (4) up to
45	45	1.2% for certain cities and towns that are not eligible to adopt a
46	46	municipal LIT rate. Defines "nonmunicipal civil taxing units".
47	47	Eliminates the imposition of the LIT on individuals who maintain a
48	48	principal place of business or employment in a county with a LIT but
49	49	do not reside in the county. Eliminates provisions that provide for a
50	50	distribution of LIT expenditure rate revenue to schools and civil taxing
51	51	units in counties that imposed a rate under the prior county adjusted
52	52	gross income tax (CAGIT). Expires the authority to impose a property
53	53	tax relief rate under the LIT and repeals the levy freeze rate. Provides
54	54	that an ordinance adopted to impose a LIT property tax relief rate shall
55	55	expire December 31, 2026. Provides that, in order to continue to
56	56	impose an expenditure tax rate after 2026, each county must adopt a
57	57	new ordinance in 2026 (on or before October 1, 2026) to impose the
58	58	rate. Provides that, for counties that fail to adopt an ordinance to renew
59	59	an existing expenditure tax rate in 2026, the expenditure tax rate for the
60	60	county in 2027 shall be the minimum tax rate necessary for existing
61	61	debt service. Specifies that this does not prevent the county from
62	62	renewing, imposing, or modifying an expenditure tax rate in
63	63	subsequent years. Eliminates local income tax councils beginning July
64	64	1, 2026, and instead provides that the county fiscal body is the adopting
65	65	body in all counties for purposes of the county LIT, and the city or
66	66	town fiscal body is the adopting body in the case of a municipal LIT.
67	67	Requires the budget agency to determine the difference between the
68	68	balance in a county's local income tax trust account as of December 31,
69	69	2025, minus the county's certified distribution amount for 2027, and
70	70	beginning in 2027, make five consecutive special distributions to
71	71	counties over a five year period equal to 20% of that amount each year.
72	72	Establishes the local income tax holding account within the state
73	73	general fund for purposes of local income tax distributions. Provides
74	74	that the budget agency shall administer the account. Requires the
75	75	budget agency to maintain an accounting for each county imposing a
76	76	local income tax based on annual returns filed by or for county
77	77	taxpayers (same as current law). Requires undistributed amounts so
78	78	accounted to be held for purposes of the local income tax holding
79	79	account beginning after December 31, 2026. (Under current law,
80	80	undistributed amounts are required to be held in reserve separate from
81	81	the state general fund.) Requires the budget agency to present each
82	82	December to the budget committee a report of the following: (1) An
83	83	estimate of the monthly certified distribution amounts for the
84	84	immediately succeeding calendar year. (2) A description of the method
85	85	used to determine the monthly estimates. (3) The balance in the local
86	86	income tax holding account, including an accounting of the
87	87	undistributed amounts held for purposes of the account. Beginning in
88	88	2027, requires the budget agency to make monthly transfers to the local
89	89	income tax holding account of the amount determined for the month in
90	90	its report to the budget committee. Repeals a provision that requires the
91	91	budget agency to adjust the certified distribution of a county for the
92	92	succeeding year following a tax rate change. Makes technical
93	93	corrections. Makes a continuous appropriation.
94	94	2025 IN 1402—LS 7150/DI 1202025 IN 1402—LS 7150/DI 120 Introduced
95	95	First Regular Session of the 124th General Assembly (2025)
96	96	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
97	97	Constitution) is being amended, the text of the existing provision will appear in this style type,
98	98	additions will appear in this style type, and deletions will appear in this style type.
99	99	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
100	100	provision adopted), the text of the new provision will appear in this style type. Also, the
101	101	word NEW will appear in that style type in the introductory clause of each SECTION that adds
102	102	a new provision to the Indiana Code or the Indiana Constitution.
103	103	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
104	104	between statutes enacted by the 2024 Regular Session of the General Assembly.
105	105	HOUSE BILL No. 1402
106	106	A BILL FOR AN ACT to amend the Indiana Code concerning
107	107	taxation and to make an appropriation.
108	108	Be it enacted by the General Assembly of the State of Indiana:
109	109	1 SECTION 1. IC 5-1-14-14, AS AMENDED BY P.L.197-2016,
110	110	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
111	111	3 JULY 1, 2026]: Sec. 14. (a) Notwithstanding any other law, a
112	112	4 municipality may sell the municipality's interest in any notes payable
113	113	5 to the municipality at a negotiated sale.
114	114	6 (b) A county or municipality may establish a revolving fund from
115	115	7 grants, the revenue received by the county or municipality under
116	116	8 IC 6-3.6-9 and allocated for economic development purposes, under
117	117	9 IC 6-3.6-6-9, the proceeds of the sale of notes, or the proceeds of bonds
118	118	10 issued under this section and IC 36-9-32. The county or municipality
119	119	11 may loan the money in the revolving fund to any borrower if the county
120	120	12 or municipal fiscal body finds that the loan will be used by the
121	121	13 borrower for one (1) or more of the following economic development
122	122	14 purposes:
123	123	15 (1) Promoting significant opportunities for the gainful
124	124	2025 IN 1402—LS 7150/DI 120 2
125	125	1 employment of the county's or municipality's residents.
126	126	2 (2) Attracting a major new business enterprise to the county or
127	127	3 municipality.
128	128	4 (3) Retaining or expanding a significant business enterprise in the
129	129	5 county or municipality.
130	130	6 (c) Activities that may be undertaken by the borrower in carrying
131	131	7 out an economic development purpose include expenditures for any of
132	132	8 the following:
133	133	9 (1) Acquisition of land.
134	134	10 (2) Acquisition of property interests.
135	135	11 (3) Site improvements.
136	136	12 (4) Infrastructure improvements.
137	137	13 (5) Buildings.
138	138	14 (6) Structures.
139	139	15 (7) Rehabilitation, renovation, or enlargement of buildings or
140	140	16 structures.
141	141	17 (8) Machinery.
142	142	18 (9) Equipment.
143	143	19 (10) Furnishings.
144	144	20 (d) Local governmental entities may borrow under subsection (b) if
145	145	21 the local governmental entity's jurisdiction includes the geographic area
146	146	22 within the boundaries of the county or municipality that established the
147	147	23 revolving fund. Notwithstanding any other law, the following
148	148	24 provisions apply to the borrowing:
149	149	25 (1) The county or municipality that established the revolving fund
150	150	26 and the local governmental entity borrower may each authorize
151	151	27 the loan from the revolving fund and the issuance of notes
152	152	28 evidencing the loan by resolution. In each case, the resolution
153	153	29 shall be adopted by the body with control over fiscal matters.
154	154	30 (2) A resolution adopted under subdivision (1) must approve:
155	155	31 (A) the term of the loan;
156	156	32 (B) the interest rate;
157	157	33 (C) the form of the note or notes;
158	158	34 (D) the medium of payment;
159	159	35 (E) the place and manner of payment;
160	160	36 (F) the manner of execution of the note or notes;
161	161	37 (G) the terms of redemption;
162	162	38 (H) the funds or sources of funds from which the note or notes
163	163	39 are payable, which may be any funds and sources of funds
164	164	40 available to the borrower; and
165	165	41 (I) any other provisions not inconsistent with this section.
166	166	42 (3) The notes and the authorization, issuance, sale, and delivery
167	167	2025 IN 1402—LS 7150/DI 120 3
168	168	1 of the notes are not subject to any general statute concerning
169	169	2 obligations issued by the local governmental entity borrower. This
170	170	3 section contains full and complete authority for the making of the
171	171	4 loan, the authorization, issuance, sale, and delivery of the notes,
172	172	5 and the repayment of the loan by the borrower, and no law,
173	173	6 procedure, proceedings, publications, notices, consents,
174	174	7 approvals, orders, or acts by any officer, department, agency, or
175	175	8 instrument of the state or of any political subdivision is required
176	176	9 to make the loan, issue the notes, or repay the loan except as
177	177	10 prescribed in this section.
178	178	11 (4) The notes issued by a local governmental entity borrower are
179	179	12 exempt from taxation for all purposes and are exempt from any
180	180	13 security registration requirements provided for in Indiana statutes.
181	181	14 (5) Notes issued by a local governmental entity borrower under
182	182	15 this section are obligations for all purposes of this chapter.
183	183	16 (e) A municipality may issue bonds under IC 36-9-32-7(b) through
184	184	17 IC 36-9-32-7(j) for the economic development purposes listed in
185	185	18 subsection (c) and may repay the indebtedness solely from revenues
186	186	19 derived from the repayment of any notes, including notes evidencing
187	187	20 loans made under subsection (b).
188	188	21 (f) To the extent a revolving fund under subsection (b) is funded
189	189	22 from:
190	190	23 (1) revenues received by the county under IC 6-3.6-9 and
191	191	24 allocated for economic development purposes; under
192	192	25 IC 6-3.6-6-9; or
193	193	26 (2) repayments of principal and interest on loans from the
194	194	27 revolving fund that were funded with revenues described in
195	195	28 subdivision (1);
196	196	29 money in the revolving fund may at any time be transferred in whole
197	197	30 or in part to the unit's economic development income tax fund, as
198	198	31 determined by ordinance of the unit's fiscal body.
199	199	32 (g) The general assembly finds that counties and municipalities in
200	200	33 Indiana have a need to foster economic development and industrial and
201	201	34 commercial growth. The general assembly finds that it is necessary and
202	202	35 proper to provide an alternative method for municipalities to foster the
203	203	36 following:
204	204	37 (1) Economic development.
205	205	38 (2) Industrial and commercial growth.
206	206	39 (3) Employment opportunities.
207	207	40 (4) Diversification of industry and commerce.
208	208	41 It is declared that the fostering of economic development under this
209	209	42 section for the benefit of the general public, including industrial and
210	210	2025 IN 1402—LS 7150/DI 120 4
211	211	1 commercial enterprises, is a public purpose.
212	212	2 SECTION 2. IC 5-16-9-3, AS AMENDED BY P.L.197-2016,
213	213	3 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
214	214	4 JULY 1, 2026]: Sec. 3. (a) If a public agency has no parking facility
215	215	5 under its jurisdiction or control available to private persons who desire
216	216	6 to conduct business with the public agency, the public agency shall
217	217	7 direct the local authority having jurisdiction over the portion of the
218	218	8 streets which are adjacent to the facilities of the public agency to
219	219	9 reserve parking spaces for the use of persons with physical disabilities.
220	220	10 (b) If a retail shopping mall is constructed in whole or in part with
221	221	11 revenue derived from a local income tax imposed under IC 6-3.6-6 and
222	222	12 allocated for economic development purposes, under IC 6-3.6-6-9, the
223	223	13 local authority having jurisdiction over the portion of the streets
224	224	14 adjacent to the retail shopping mall shall reserve parking spaces for the
225	225	15 use of persons with physical disabilities.
226	226	16 SECTION 3. IC 6-1.1-2-11 IS ADDED TO THE INDIANA CODE
227	227	17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
228	228	18 UPON PASSAGE]: Sec. 11. (a) As used in this section, "tax
229	229	19 increment financing allocation area" means any area authorized
230	230	20 by statute in which ad valorem property taxes are allocated,
231	231	21 including the following:
232	232	22 (1) IC 6-1.1-39 (economic development districts).
233	233	23 (2) IC 8-22-3.5 (airport development zones).
234	234	24 (3) IC 36-7-14 (redevelopment of areas needing
235	235	25 redevelopment generally).
236	236	26 (4) IC 36-7-15.1 (redevelopment of areas in Marion County).
237	237	27 (5) IC 36-7-30 (reuse of federal military bases).
238	238	28 (6) IC 36-7-30.5 (development of multicounty federal military
239	239	29 bases).
240	240	30 (7) IC 36-7-32 (certified technology parks).
241	241	31 (8) IC 36-7-32.5 (innovation development districts).
242	242	32 (9) IC 36-7.5-4.5 (rail transit development districts).
243	243	33 (b) The department of local government finance shall, in each
244	244	34 year beginning after December 31, 2025, and ending before
245	245	35 January 1, 2032, adjust the base assessed value of each tax
246	246	36 increment financing allocation area to neutralize the effect of the
247	247	37 changing tax rates resulting year to year from the business
248	248	38 personal property tax exemption under IC 6-1.1-10.4, the
249	249	39 homestead deduction under IC 6-1.1-12-37(c)(2) and
250	250	40 IC 6-1.1-12-37.5(c), and the deduction for eligible property under
251	251	41 IC 6-1.1-12-47. It is the intent of the general assembly that an
252	252	42 increase in revenue from a change in tax rates resulting from these
253	253	2025 IN 1402—LS 7150/DI 120 5
254	254	1 statutes accrue only to the base assessed value and not to the tax
255	255	2 increment financing allocation area. However, in the case of a
256	256	3 decrease in revenue from a change in tax rates resulting from these
257	257	4 statutes, the department of local government finance may
258	258	5 neutralize the change under this subsection in a positive manner
259	259	6 with regard to the tax increment financing allocation area to
260	260	7 protect the ability to pay bonds based on incremental revenue, if
261	261	8 the tax increment financing allocation area demonstrates to the
262	262	9 department that an adjustment is needed before the department
263	263	10 calculates a positive neutralization adjustment.
264	264	11 SECTION 4. IC 6-1.1-3-7.2, AS AMENDED BY P.L.137-2022,
265	265	12 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
266	266	13 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7.2. (a) This section
267	267	14 applies to assessment dates occurring after December 31, 2015.
268	268	15 (b) As used in this section, "affiliate" means an entity that
269	269	16 effectively controls or is controlled by a taxpayer or is associated with
270	270	17 a taxpayer under common ownership or control, whether by
271	271	18 shareholdings or other means.
272	272	19 (c) As used in this section, "business personal property" means
273	273	20 personal property that:
274	274	21 (1) is otherwise subject to assessment and taxation under this
275	275	22 article;
276	276	23 (2) is used in a trade or business or otherwise held, used, or
277	277	24 consumed in connection with the production of income; and
278	278	25 (3) was:
279	279	26 (A) acquired by the taxpayer in an arms length transaction
280	280	27 from an entity that is not an affiliate of the taxpayer, if the
281	281	28 personal property has been previously used in Indiana before
282	282	29 being placed in service in the county; or
283	283	30 (B) acquired in any manner, if the personal property has never
284	284	31 been previously used in Indiana before being placed in service
285	285	32 in the county.
286	286	33 The term does not include mobile homes assessed under IC 6-1.1-7,
287	287	34 personal property held as an investment, or personal property that is
288	288	35 assessed under IC 6-1.1-8 and is owned by a public utility subject to
289	289	36 regulation by the Indiana utility regulatory commission. However, the
290	290	37 term does include the personal property of a telephone company or a
291	291	38 communications service provider if that personal property meets the
292	292	39 requirements of subdivisions (1) through (3), regardless of whether that
293	293	40 personal property is assessed under IC 6-1.1-8 and regardless of
294	294	41 whether the telephone company or communications service provider is
295	295	42 subject to regulation by the Indiana utility regulatory commission.
296	296	2025 IN 1402—LS 7150/DI 120 6
297	297	1 (d) Notwithstanding section 7 of this chapter, if the acquisition cost
298	298	2 of a taxpayer's total business personal property in a county is less than:
299	299	3 (1) eighty thousand dollars ($80,000) for that assessment date,
300	300	4 assessment dates before 2025;
301	301	5 (2) one hundred thousand dollars ($100,000) for the 2025
302	302	6 assessment date;
303	303	7 (3) one hundred twenty thousand dollars ($120,000) for the
304	304	8 2026 assessment date;
305	305	9 (4) one hundred forty thousand dollars ($140,000) for the
306	306	10 2027 assessment date;
307	307	11 (5) one hundred sixty thousand dollars ($160,000) for the 2028
308	308	12 assessment date;
309	309	13 (6) one hundred eighty thousand dollars ($180,000) for the
310	310	14 2029 assessment date; or
311	311	15 (7) two hundred thousand dollars ($200,000) for the 2030
312	312	16 assessment date, and each assessment date thereafter;
313	313	17 the taxpayer's business personal property in the county for that
314	314	18 assessment date is exempt from taxation.
315	315	19 (e) Subject to subsection (f), a taxpayer that is eligible for the
316	316	20 exemption under this section for an assessment date shall include the
317	317	21 following information on the taxpayer's personal property tax return:
318	318	22 (1) A declaration that the taxpayer's business personal property in
319	319	23 the county is exempt from property taxation.
320	320	24 (2) Whether the taxpayer's business personal property within the
321	321	25 county is in one (1) location or multiple locations.
322	322	26 (3) An address for the location of the property.
323	323	27 If the business personal property is in multiple locations within a
324	324	28 county, the taxpayer shall provide an address for the location where the
325	325	29 sum of acquisition costs for business personal property is greatest. If
326	326	30 two (2) or more addresses contain the greatest equivalent sum of
327	327	31 acquisition costs for business personal property within a given county,
328	328	32 the taxpayer shall choose only one (1) address to list on the return.
329	329	33 (f) Beginning after December 31, 2022, a taxpayer that has included
330	330	34 the information required under subsection (e) on the taxpayer's
331	331	35 personal property tax return to claim the exemption under this section
332	332	36 is not required to file a personal property return for the taxpayer's
333	333	37 business personal property for an assessment date that occurs after the
334	334	38 assessment date for which the information is first provided under
335	335	39 subsection (e), unless or until the taxpayer no longer qualifies for the
336	336	40 exemption under subsection (d) for a subsequent assessment date.
337	337	41 SECTION 5. IC 6-1.1-3-22, AS AMENDED BY P.L.159-2020,
338	338	42 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
339	339	2025 IN 1402—LS 7150/DI 120 7
340	340	1 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 22. (a) Except to the
341	341	2 extent that it conflicts with a statute and subject to subsection (f), 50
342	342	3 IAC 4.2 (as in effect January 1, 2001), which was formerly
343	343	4 incorporated by reference into this section, is reinstated as a rule.
344	344	5 (b) Tangible personal property within the scope of 50 IAC 4.2 (as
345	345	6 in effect January 1, 2001) shall be assessed on the assessment dates in
346	346	7 calendar years 2003 and thereafter in conformity with 50 IAC 4.2 (as
347	347	8 in effect January 1, 2001).
348	348	9 (c) The publisher of the Indiana Administrative Code shall publish
349	349	10 50 IAC 4.2 (as in effect January 1, 2001) in the Indiana Administrative
350	350	11 Code.
351	351	12 (d) 50 IAC 4.3 and any other rule to the extent that it conflicts with
352	352	13 this section is void.
353	353	14 (e) A reference in 50 IAC 4.2 to a governmental entity that has been
354	354	15 terminated or a statute that has been repealed or amended shall be
355	355	16 treated as a reference to its successor.
356	356	17 (f) The department of local government finance may not amend or
357	357	18 repeal the following (all as in effect January 1, 2001):
358	358	19 (1) 50 IAC 4.2-4-3(f).
359	359	20 (2) 50 IAC 4.2-4-7.
360	360	21 (3) 50 IAC 4.2-4-9.
361	361	22 (4) 50 IAC 4.2-5-7.
362	362	23 (5) 50 IAC 4.2-5-13.
363	363	24 (6) 50 IAC 4.2-6-1.
364	364	25 (7) 50 IAC 4.2-6-2.
365	365	26 (8) 50 IAC 4.2-8-9.
366	366	27 However, the department of local government finance may amend
367	367	28 these rules to conform with statutory changes.
368	368	29 (g) Notwithstanding any other provision of this section, 50
369	369	30 IAC 4.2-4-6(c) is void effective July 1, 2015. The publisher of the
370	370	31 Indiana Administrative Code and the Indiana Register shall remove this
371	371	32 provision from the Indiana Administrative Code.
372	372	33 (h) Notwithstanding any other provision of this section, the
373	373	34 department of local government finance may adopt rules amending
374	374	35 50 IAC 4.2 to reflect the enactment of section 29 of this chapter and
375	375	36 the enactment of the exemption for business personal property
376	376	37 placed in service after January 1, 2025, under IC 6-1.1-10.4.
377	377	38 SECTION 6. IC 6-1.1-3-23, AS AMENDED BY P.L.220-2011,
378	378	39 SECTION 119, IS AMENDED TO READ AS FOLLOWS
379	379	40 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 23. (a) In
380	380	41 enacting this section, the general assembly finds the following:
381	381	42 (1) The economy of northern Indiana has historically been heavily
382	382	2025 IN 1402—LS 7150/DI 120 8
383	383	1 dependent upon:
384	384	2 (A) the domestic steel industry, particularly the integrated steel
385	385	3 mill business, which produces steel from basic raw materials
386	386	4 through blast furnace and related operations; and
387	387	5 (B) the oil refining and petrochemical industry.
388	388	6 (2) Northern Indiana is the only area of Indiana with integrated
389	389	7 steelmaking facilities.
390	390	8 (3) During the last thirty (30) years, the domestic steel industry
391	391	9 has experienced significant financial difficulties. More than
392	392	10 one-half (1/2) of the integrated steel mills in the United States
393	393	11 were shut down or deintegrated, with the remainder requiring
394	394	12 significant investment and the addition of new processes to make
395	395	13 the facilities economically competitive with newer foreign and
396	396	14 domestic steelmaking facilities and processes.
397	397	15 (4) The United States needs to protect the capacity of the oil
398	398	16 refining and petrochemical industry. No oil refineries have been
399	399	17 built in the United States since 1976.
400	400	18 (5) Given the economic conditions affecting older integrated
401	401	19 steelmaking facilities, integrated steel mills claimed abnormal
402	402	20 obsolescence in reporting the assessed value of equipment located
403	403	21 at the integrated steelmaking facilities that began operations
404	404	22 before 1970, thereby reporting the equipment's assessed value at
405	405	23 far below thirty percent (30%) of the equipment's total cost (far
406	406	24 below the "thirty percent (30%) floor" value generally applicable
407	407	25 to equipment exhibiting only normal obsolescence under the
408	408	26 current department of local government finance rules).
409	409	27 (6) Current law existing before January 1, 2003, obligates the
410	410	28 taxpayers making abnormal obsolescence claims to pay personal
411	411	29 property taxes based only on, and permits communities to
412	412	30 determine property tax budgets and rates based only on, the
413	413	31 reported personal property assessed values until the personal
414	414	32 property appeals are resolved. Consequently, as a result of
415	415	33 abnormal obsolescence claims, the property tax base of
416	416	34 communities in northern Indiana is severely reduced for an
417	417	35 indeterminate period (if not permanently). The prospect of future
418	418	36 appeals and their attendant problems on an ongoing basis must be
419	419	37 addressed.
420	420	38 (7) A new, optional method for valuing the equipment of
421	421	39 integrated steel mills and entities that are at least fifty percent
422	422	40 (50%) owned by an affiliate of an integrated steel mill ("related
423	423	41 entities") and the oil refining and petrochemical industry in
424	424	42 northern Indiana is needed. That optional method:
425	425	2025 IN 1402—LS 7150/DI 120 9
426	426	1 (A) recognizes the loss of value and difficulty in valuing
427	427	2 equipment at integrated steelmaking facilities and facilities of
428	428	3 the oil refining and petrochemical industry that commenced
429	429	4 operations decades ago and at the facilities of related entities;
430	430	5 (B) recognizes that depreciable personal property used in
431	431	6 integrated steelmaking and in oil refinery or petrochemical
432	432	7 operations and by related entities is affected by different
433	433	8 economic and market forces than depreciable personal
434	434	9 property used in other industries and certain other segments of
435	435	10 the steel industry and therefore experiences different amounts
436	436	11 of obsolescence and depreciation; and
437	437	12 (C) can be used to simply and efficiently arrive at a value
438	438	13 commensurate with that property's age, use, obsolescence, and
439	439	14 market circumstances instead of the current method and its
440	440	15 potentially contentious and lengthy appeals. Such an optional
441	441	16 method would benefit the communities where these older
442	442	17 facilities are located.
443	443	18 (8) Such an optional method would be to authorize a fifth pool in
444	444	19 the depreciation schedule for valuing the equipment of integrated
445	445	20 steel mills, related entities, and the oil refining and petrochemical
446	446	21 industry that reflects all adjustments to the value of that
447	447	22 equipment for depreciation and obsolescence, including abnormal
448	448	23 obsolescence, which precludes any taxpayer electing such a
449	449	24 method from taking any other obsolescence adjustment for the
450	450	25 equipment, and which applies only at the election of the taxpayer.
451	451	26 (9) The purpose for authorizing the Pool 5 method is to provide
452	452	27 a more simplified and efficient method for valuing the equipment
453	453	28 of integrated steel mills and the oil refining and petrochemical
454	454	29 industry that recognizes the loss of value and unusual problems
455	455	30 associated with the valuation of the equipment or facilities that
456	456	31 began operations before 1970 in those industries in northern
457	457	32 Indiana, as well as for valuing the equipment of related entities,
458	458	33 to stabilize local property tax revenue by eliminating the need for
459	459	34 abnormal obsolescence claims, and to encourage those industries
460	460	35 to continue to invest in northern Indiana, thereby contributing to
461	461	36 the economic life and well-being of communities in northern
462	462	37 Indiana, the residents of northern Indiana, and Indiana generally.
463	463	38 (10) The specific circumstances described in this section do not
464	464	39 exist throughout the rest of Indiana.
465	465	40 (b) For purposes of this section:
466	466	41 (1) "adjusted cost" refers to the adjusted cost established in 50
467	467	42 IAC 4.2-4-4 (as in effect on January 1, 2003);
468	468	2025 IN 1402—LS 7150/DI 120 10
469	469	1 (2) "depreciable personal property" has the meaning set forth in
470	470	2 50 IAC 4.2-4-1 (as in effect on January 1, 2003);
471	471	3 (3) "integrated steel mill" means a person, including a subsidiary
472	472	4 of a corporation, that produces steel by processing iron ore and
473	473	5 other raw materials in a blast furnace in Indiana;
474	474	6 (4) "oil refinery/petrochemical company" means a person that
475	475	7 produces a variety of petroleum products by processing an annual
476	476	8 average of at least one hundred thousand (100,000) barrels of
477	477	9 crude oil per day;
478	478	10 (5) "permanently retired depreciable personal property" has the
479	479	11 meaning set forth in 50 IAC 4.2-4-3 (as in effect on January 1,
480	480	12 2003);
481	481	13 (6) "pool" refers to a pool established in 50 IAC 4.2-4-5(a) (as in
482	482	14 effect on January 1, 2003);
483	483	15 (7) "special integrated steel mill or oil refinery/petrochemical
484	484	16 equipment" means depreciable personal property, other than
485	485	17 special tools and permanently retired depreciable personal
486	486	18 property:
487	487	19 (A) that:
488	488	20 (i) is owned, leased, or used by an integrated steel mill or an
489	489	21 entity that is at least fifty percent (50%) owned by an
490	490	22 affiliate of an integrated steel mill; and
491	491	23 (ii) falls within Asset Class 33.4 as set forth in IRS Rev.
492	492	24 Proc. 87-56, 1987-2, C.B. 647; or
493	493	25 (B) that:
494	494	26 (i) is owned, leased, or used as an integrated part of an oil
495	495	27 refinery/petrochemical company or its affiliate; and
496	496	28 (ii) falls within Asset Class 13.3 or 28.0 as set forth in IRS
497	497	29 Rev. Proc. 87-56, 1987-2, C.B. 647;
498	498	30 (8) "special tools" has the meaning set forth in 50 IAC 4.2-6-2 (as
499	499	31 in effect on January 1, 2003); and
500	500	32 (9) "year of acquisition" refers to the year of acquisition
501	501	33 determined under 50 IAC 4.2-4-6 (as in effect on January 1,
502	502	34 2003).
503	503	35 (c) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50
504	504	36 IAC 4.2-4-7, a taxpayer may elect to calculate the true tax value of the
505	505	37 taxpayer's special integrated steel mill or oil refinery/petrochemical
506	506	38 equipment by multiplying the adjusted cost of that equipment by the
507	507	39 percentage set forth in the following table:
508	508	40 Year of Acquisition Percentage
509	509	41 1 40%
510	510	42 2 56%
511	511	2025 IN 1402—LS 7150/DI 120 11
512	512	1 3 42%
513	513	2 4 32%
514	514	3 5 24%
515	515	4 6 18%
516	516	5 7 15%
517	517	6 8 and older 10%
518	518	7 (d) The department of local government finance shall designate the
519	519	8 table under subsection (c) as "Pool No. 5" on the business personal
520	520	9 property tax return.
521	521	10 (e) The percentage factors in the table under subsection (c)
522	522	11 automatically reflect all adjustments for depreciation and obsolescence,
523	523	12 including abnormal obsolescence, for special integrated steel mill or oil
524	524	13 refinery/petrochemical equipment. The equipment is entitled to all
525	525	14 exemptions, credits, and deductions for which it qualifies.
526	526	15 (f) The minimum valuation limitations under 50 IAC 4.2-4-9
527	527	16 section 29 of this chapter do not apply to special integrated steel mill
528	528	17 or oil refinery/petrochemical equipment valued under this section. The
529	529	18 value of the equipment is not included in the calculation of that
530	530	19 minimum valuation limitation for the taxpayer's other assessable
531	531	20 depreciable personal property in the taxing district.
532	532	21 (g) An election to value special integrated steel mill or oil
533	533	22 refinery/petrochemical equipment under this section:
534	534	23 (1) must be made by reporting the equipment under this section
535	535	24 on a business personal property tax return;
536	536	25 (2) applies to all of the taxpayer's special integrated steel mill or
537	537	26 oil refinery/petrochemical equipment located in the state (whether
538	538	27 owned or leased, or used as an integrated part of the equipment);
539	539	28 and
540	540	29 (3) is binding on the taxpayer for the assessment date for which
541	541	30 the election is made.
542	542	31 The department of local government finance shall prescribe the forms
543	543	32 to make the election beginning with the March 1, 2003, assessment
544	544	33 date. Any special integrated steel mill or oil refinery/petrochemical
545	545	34 equipment acquired by a taxpayer that has made an election under this
546	546	35 section is valued under this section.
547	547	36 (h) If fifty percent (50%) or more of the adjusted cost of a taxpayer's
548	548	37 property that would, notwithstanding this section, be reported in a pool
549	549	38 other than Pool No. 5 is attributable to special integrated steel mill or
550	550	39 oil refinery/petrochemical equipment, the taxpayer may elect to
551	551	40 calculate the true tax value of all of that property as special integrated
552	552	41 steel mill or oil refinery/petrochemical equipment. The true tax value
553	553	42 of property for which an election is made under this subsection is
554	554	2025 IN 1402—LS 7150/DI 120 12
555	555	1 calculated under subsections (c) through (g).
556	556	2 SECTION 7. IC 6-1.1-3-23.5, AS AMENDED BY P.L.236-2023,
557	557	3 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
558	558	4 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 23.5. (a) For purposes of
559	559	5 this section:
560	560	6 (1) "adjusted cost" has the meaning set forth in section 23(b)(1)
561	561	7 of this chapter;
562	562	8 (2) "depreciable personal property" has the meaning set forth in
563	563	9 section 23(b)(2) of this chapter;
564	564	10 (3) "mini-mill" means a person, including a subsidiary of a
565	565	11 corporation, that produces steel using an electric arc furnace in
566	566	12 Indiana;
567	567	13 (4) "permanently retired depreciable personal property" has the
568	568	14 meaning set forth in section 23(b)(5) of this chapter;
569	569	15 (5) "pool" has the meaning set forth in section 23(b)(6) of this
570	570	16 chapter;
571	571	17 (6) "mini-mill equipment" means depreciable personal property,
572	572	18 other than special tools and permanently retired depreciable
573	573	19 personal property, that is owned, leased, or used by a mini-mill or
574	574	20 an entity that is at least fifty percent (50%) owned by an affiliate
575	575	21 of a mini-mill in the production of steel;
576	576	22 (7) "special tools" has the meaning set forth in section 23(b)(8) of
577	577	23 this chapter; and
578	578	24 (8) "year of acquisition" for purposes of applying the table in
579	579	25 section 23(c) of this chapter, has the meaning set forth in section
580	580	26 23(b)(9) of this chapter.
581	581	27 (b) Notwithstanding 50 IAC 4.2-4-4, 50 IAC 4.2-4-6, and 50
582	582	28 IAC 4.2-4-7, beginning with the January 1, 2023, assessment date, a
583	583	29 taxpayer may elect to calculate the true tax value of the taxpayer's
584	584	30 mini-mill equipment by multiplying the adjusted cost of that equipment
585	585	31 by the applicable percentage set forth in the table designated as "Pool
586	586	32 No. 5" under section 23(c) and 23(d) of this chapter.
587	587	33 (c) The percentage factors in the table under section 23(c) of this
588	588	34 chapter automatically reflect all adjustments for depreciation and
589	589	35 obsolescence, including abnormal obsolescence, for mini-mill
590	590	36 equipment. The equipment is entitled to all exemptions, credits, and
591	591	37 deductions for which it qualifies.
592	592	38 (d) The minimum valuation limitations under 50 IAC 4.2-4-9
593	593	39 section 29 of this chapter do not apply to mini-mill equipment valued
594	594	40 under this section. The value of the equipment is not included in the
595	595	41 calculation of that minimum valuation limitation for the taxpayer's
596	596	42 other assessable depreciable personal property in the taxing district.
597	597	2025 IN 1402—LS 7150/DI 120 13
598	598	1 (e) An election to value mini-mill equipment under this section:
599	599	2 (1) must be made by reporting the equipment under this section
600	600	3 on a business personal property tax return;
601	601	4 (2) applies to all of the taxpayer's mini-mill equipment located in
602	602	5 the state (whether owned or leased, or used as an integrated part
603	603	6 of the equipment); and
604	604	7 (3) is binding on the taxpayer for the assessment date for which
605	605	8 the election is made.
606	606	9 The department of local government finance shall prescribe the forms
607	607	10 to make the election beginning with the January 1, 2023, assessment
608	608	11 date. Any mini-mill equipment acquired by a taxpayer that has made
609	609	12 an election under this section is valued under this section.
610	610	13 (f) If fifty percent (50%) or more of the adjusted cost of a taxpayer's
611	611	14 property that would, notwithstanding this section, be reported in a pool
612	612	15 other than "Pool No. 5" (as designated under section 23 of this chapter)
613	613	16 is attributable to mini-mill equipment, the taxpayer may elect to
614	614	17 calculate the true tax value of all of that property as mini-mill
615	615	18 equipment. The true tax value of property for which an election is made
616	616	19 under this subsection is calculated under subsections (b) through (e).
617	617	20 SECTION 8. IC 6-1.1-3-25, AS ADDED BY P.L.238-2017,
618	618	21 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
619	619	22 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 25. (a) As used in this
620	620	23 section, "district" refers to an entrepreneur and enterprise district
621	621	24 designated under IC 5-28-15.5.
622	622	25 (b) Notwithstanding section 22(b) of this chapter and
623	623	26 IC 6-1.1-8-44(b), assessable depreciable personal property that:
624	624	27 (1) is located in a district;
625	625	28 (2) is placed in service in the district by the owner of the property
626	626	29 after the designation of the district under IC 5-28-15.5; and
627	627	30 (3) is used within the district by one (1) or more employees who
628	628	31 perform the majority of their service within the district;
629	629	32 is not subject to the valuation limitations in 50 IAC 4.2-4-9 section 29
630	630	33 of this chapter or 50 IAC 5.1-6-9. IC 6-1.1-8-45.
631	631	34 SECTION 9. IC 6-1.1-3-29 IS ADDED TO THE INDIANA CODE
632	632	35 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
633	633	36 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 29. (a) This subsection
634	634	37 applies only to a taxpayer's assessable depreciable personal
635	635	38 property that is placed in service on or before January 1, 2025.
636	636	39 Except as provided in subsections (b) and (c), the total valuation of
637	637	40 a taxpayer's assessable depreciable personal property in a single
638	638	41 taxing district may not be less than the following percentage of the
639	639	42 adjusted cost of all the taxpayer's assessable depreciable personal
640	640	2025 IN 1402—LS 7150/DI 120 14
641	641	1 property in the taxing district:
642	642	2 (1) Thirty percent (30%) for assessment dates before January
643	643	3 1, 2026.
644	644	4 (2) Twenty-five percent (25%) for an assessment date after
645	645	5 December 31, 2025, and before January 1, 2027.
646	646	6 (3) Twenty percent (20%) for an assessment date after
647	647	7 December 31, 2026, and before January 1, 2028.
648	648	8 (4) Fifteen percent (15%) for an assessment date after
649	649	9 December 31, 2027, and before January 1, 2029.
650	650	10 (5) Ten percent (10%) for an assessment date after December
651	651	11 31, 2028, and before January 1, 2030.
652	652	12 (6) Five percent (5%) for an assessment date after December
653	653	13 31, 2029, and before January 1, 2031.
654	654	14 (7) Zero percent (0%) for an assessment date after December
655	655	15 31, 2030.
656	656	16 (b) The limitation set forth in subsection (a) is to be applied
657	657	17 before any special adjustment for abnormal obsolescence. The
658	658	18 limitation does not apply to equipment not placed in service,
659	659	19 special tooling, and permanently retired depreciable personal
660	660	20 property.
661	661	21 (c) Depreciable personal property that is placed in service after
662	662	22 January 1, 2025, is not subject to the minimum valuation limitation
663	663	23 under this section.
664	664	24 SECTION 10. IC 6-1.1-8-44, AS AMENDED BY P.L.38-2021,
665	665	25 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
666	666	26 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 44. (a) Except to the
667	667	27 extent that it conflicts with a statute and subject to subsection (f), 50
668	668	28 IAC 5.1 (as in effect January 1, 2001), which was formerly
669	669	29 incorporated by reference into this section, is reinstated as a rule.
670	670	30 (b) Tangible personal property within the scope of 50 IAC 5.1 (as
671	671	31 in effect January 1, 2001) shall be assessed on the assessment dates in
672	672	32 calendar years 2003 and thereafter in conformity with 50 IAC 5.1 (as
673	673	33 in effect January 1, 2001).
674	674	34 (c) The publisher of the Indiana Administrative Code shall publish
675	675	35 50 IAC 5.1 (as in effect January 1, 2001) in the Indiana Administrative
676	676	36 Code.
677	677	37 (d) 50 IAC 5.2 and any other rule to the extent that it conflicts with
678	678	38 this section is void.
679	679	39 (e) A reference in 50 IAC 5.1 to a governmental entity that has been
680	680	40 terminated or a statute that has been repealed or amended shall be
681	681	41 treated as a reference to its successor.
682	682	42 (f) The department of local government finance may not amend or
683	683	2025 IN 1402—LS 7150/DI 120 15
684	684	1 repeal the following (all as in effect January 1, 2001):
685	685	2 (1) 50 IAC 5.1-6-6.
686	686	3 (2) 50 IAC 5.1-6-7.
687	687	4 (3) 50 IAC 5.1-6-8.
688	688	5 (4) 50 IAC 5.1-6-9.
689	689	6 (5) 50 IAC 5.1-8-1.
690	690	7 (6) 50 IAC 5.1-9-1.
691	691	8 (7) 50 IAC 5.1-9-2.
692	692	9 However, the department of local government finance may amend
693	693	10 these rules to reflect statutory changes.
694	694	11 (g) Notwithstanding any other provision of this section, the
695	695	12 department of local government finance may adopt rules amending
696	696	13 50 IAC 5.1 to reflect the enactment of section 45 of this chapter and
697	697	14 the enactment of the exemption for business personal property
698	698	15 placed in service after January 1, 2025, under IC 6-1.1-10.4.
699	699	16 SECTION 11. IC 6-1.1-8-45 IS ADDED TO THE INDIANA CODE
700	700	17 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
701	701	18 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 45. (a) This subsection
702	702	19 applies only to a taxpayer's assessable depreciable personal
703	703	20 property that is placed in service on or before January 1, 2025.
704	704	21 Except as provided in subsections (b) and (c), the total valuation of
705	705	22 a taxpayer's assessable depreciable personal property in a single
706	706	23 taxing district may not be less than the following percentage of the
707	707	24 adjusted cost of all the taxpayer's assessable depreciable personal
708	708	25 property in the taxing district:
709	709	26 (1) Thirty percent (30%) for assessment dates before January
710	710	27 1, 2026.
711	711	28 (2) Twenty-five percent (25%) for an assessment date after
712	712	29 December 31, 2025, and before January 1, 2027.
713	713	30 (3) Twenty percent (20%) for an assessment date after
714	714	31 December 31, 2026, and before January 1, 2028.
715	715	32 (4) Fifteen percent (15%) for an assessment date after
716	716	33 December 31, 2027, and before January 1, 2029.
717	717	34 (5) Ten percent (10%) for an assessment date after December
718	718	35 31, 2028, and before January 1, 2030.
719	719	36 (6) Five percent (5%) for an assessment date after December
720	720	37 31, 2029, and before January 1, 2031.
721	721	38 (7) Zero percent (0%) for an assessment date after December
722	722	39 31, 2030.
723	723	40 (b) The limitation set forth in subsection (a) is to be applied
724	724	41 before any special adjustment for abnormal obsolescence. The
725	725	42 limitation does not apply to equipment not placed in service,
726	726	2025 IN 1402—LS 7150/DI 120 16
727	727	1 special tooling, and permanently retired depreciable personal
728	728	2 property.
729	729	3 (c) Depreciable personal property that is placed in service after
730	730	4 January 1, 2025, is not subject to the minimum valuation limitation
731	731	5 under this section.
732	732	6 SECTION 12. IC 6-1.1-10.3-2 IS REPEALED [EFFECTIVE JULY
733	733	7 1, 2026]. Sec. 2. As used in this chapter, "local income tax council"
734	734	8 refers to the local income tax council established by IC 6-3.6-3-1 for a
735	735	9 county.
736	736	10 SECTION 13. IC 6-1.1-10.3-3, AS AMENDED BY P.L.197-2016,
737	737	11 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
738	738	12 JULY 1, 2026]: Sec. 3. As used in this chapter, "exemption ordinance"
739	739	13 refers to an ordinance adopted under section 5 of this chapter by a local
740	740	14 income tax council (before July 1, 2026) or by a county adopting
741	741	15 body specified in IC 6-3.6-3-1(a) (after June 30, 2026).
742	742	16 SECTION 14. IC 6-1.1-10.3-5, AS AMENDED BY P.L.197-2016,
743	743	17 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
744	744	18 JULY 1, 2026]: Sec. 5. (a) A local income tax council county adopting
745	745	19 body specified in IC 6-3.6-3-1(a) may adopt an exemption ordinance
746	746	20 that exempts new personal property located in the county from property
747	747	21 taxation as provided in section 6 of this chapter.
748	748	22 (b) For purposes of adopting an exemption ordinance under this
749	749	23 chapter, a local income tax council is comprised of the same members
750	750	24 as the local income tax council that is established by IC 6-3.6-3-1 for
751	751	25 the county, regardless of whether a local income tax is in effect in the
752	752	26 county and regardless of how the local income tax in effect in the
753	753	27 county is allocated. Except as provided in this chapter, the local income
754	754	28 tax council county adopting body shall use the same procedures that
755	755	29 apply to county adopting bodies under IC 6-3.6-3 when acting under
756	756	30 this chapter.
757	757	31 (c) Before adopting an exemption ordinance under this section, a
758	758	32 local income tax council county adopting body must conduct a public
759	759	33 hearing on the proposed exemption ordinance. The local income tax
760	760	34 council county adopting body must publish notice of the public
761	761	35 hearing in accordance with IC 5-3-1.
762	762	36 (d) The local income tax council county adopting body shall
763	763	37 provide a certified copy of an adopted exemption ordinance to the
764	764	38 department of local government finance and the county auditor.
765	765	39 SECTION 15. IC 6-1.1-10.3-7, AS AMENDED BY P.L.197-2016,
766	766	40 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
767	767	41 JULY 1, 2026]: Sec. 7. A local income tax council county adopting
768	768	42 body specified in IC 6-3.6-3-1(a) may repeal or amend an exemption
769	769	2025 IN 1402—LS 7150/DI 120 17
770	770	1 ordinance. However, if a local income tax council county adopting
771	771	2 body repeals or amends an exemption ordinance, any new personal
772	772	3 property that was exempt under the exemption ordinance on the date
773	773	4 the new personal property was placed into service by a taxpayer
774	774	5 remains exempt from property taxation, regardless of whether or not
775	775	6 the ownership of the new personal property changes after the date the
776	776	7 exemption ordinance is amended or repealed.
777	777	8 SECTION 16. IC 6-1.1-10.4 IS ADDED TO THE INDIANA CODE
778	778	9 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
779	779	10 JANUARY 1, 2025 (RETROACTIVE)]:
780	780	11 Chapter 10.4. Business Personal Property Exemption
781	781	12 Sec. 1. This chapter applies only to business personal property
782	782	13 placed in service after January 1, 2025.
783	783	14 Sec. 2. As used in this chapter, "business personal property"
784	784	15 means personal property that:
785	785	16 (1) is otherwise subject to assessment and taxation under this
786	786	17 article; and
787	787	18 (2) is used in a trade or business or otherwise held, used, or
788	788	19 consumed in connection with the production of income.
789	789	20 The term does not include personal property held as an investment.
790	790	21 Sec. 3. For assessments made in 2026 through 2029, business
791	791	22 personal property is partially exempt from taxation as set forth in
792	792	23 this section. The amount of the exemption is equal to:
793	793	24 (1) twenty percent (20%) of the taxpayer's assessed value for
794	794	25 assessments made in 2026 for property taxes first due and
795	795	26 payable in 2027;
796	796	27 (2) forty percent (40%) of the taxpayer's assessed value for
797	797	28 assessments made in 2027 for property taxes first due and
798	798	29 payable in 2028;
799	799	30 (3) sixty percent (60%) of the taxpayer's assessed value for
800	800	31 assessments made in 2028 for property taxes first due and
801	801	32 payable in 2029; and
802	802	33 (4) eighty percent (80%) of the taxpayer's assessed value for
803	803	34 assessments made in 2029 for property taxes first due and
804	804	35 payable in 2030;
805	805	36 after the application of any deductions or other exemptions that
806	806	37 may apply to the taxpayer's business personal property under this
807	807	38 article. The partial exemption under this section shall be applied by
808	808	39 the taxpayer on the taxpayer's personal property tax return as
809	809	40 prescribed by the department of local government finance.
810	810	41 Sec. 4. For assessments made in 2030, and for assessments made
811	811	42 in each taxable year thereafter, business personal property is
812	812	2025 IN 1402—LS 7150/DI 120 18
813	813	1 totally exempt from property taxation. A taxpayer is not required
814	814	2 to file a personal property return for the taxpayer's business
815	815	3 personal property for the assessment dates set forth in this section.
816	816	4 SECTION 17. IC 6-1.1-12-0.7, AS AMENDED BY P.L.99-2007,
817	817	5 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
818	818	6 JULY 1, 2025]: Sec. 0.7. Any individual who is sixty-five (65) years of
819	819	7 age, is blind, or has a disability (within the meaning of section 11 of
820	820	8 this chapter, before its expiration) may appoint an individual eighteen
821	821	9 (18) years of age or older to act on the individual's behalf for purposes
822	822	10 of filing property tax deduction statements for any deductions provided
823	823	11 by this chapter. If a statement is filed by an appointee, the appointee's
824	824	12 name, address, and telephone number must be included in the
825	825	13 statement.
826	826	14 SECTION 18. IC 6-1.1-12-9, AS AMENDED BY P.L.239-2023,
827	827	15 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
828	828	16 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 9. (a) An individual may
829	829	17 obtain a deduction from the assessed value of the individual's real
830	830	18 property, or mobile home or manufactured home which is not assessed
831	831	19 as real property, if:
832	832	20 (1) the individual is at least sixty-five (65) years of age on or
833	833	21 before December 31 of the calendar year preceding the year in
834	834	22 which the deduction is claimed;
835	835	23 (2) for assessment dates before January 1, 2020, the combined
836	836	24 adjusted gross income (as defined in Section 62 of the Internal
837	837	25 Revenue Code) of:
838	838	26 (A) the individual and the individual's spouse; or
839	839	27 (B) the individual and all other individuals with whom:
840	840	28 (i) the individual shares ownership; or
841	841	29 (ii) the individual is purchasing the property under a
842	842	30 contract;
843	843	31 as joint tenants or tenants in common;
844	844	32 for the calendar year preceding the year in which the deduction is
845	845	33 claimed did not exceed twenty-five thousand dollars ($25,000);
846	846	34 (3) for assessment dates after December 31, 2019:
847	847	35 (A) the individual had, in the case of an individual who filed
848	848	36 a single return, adjusted gross income (as defined in Section
849	849	37 62 of the Internal Revenue Code) not exceeding thirty
850	850	38 thousand dollars ($30,000), and beginning for the January 1,
851	851	39 2023, assessment date, and each assessment date thereafter,
852	852	40 adjusted annually by an amount equal to the percentage cost
853	853	41 of living increase applied for Social Security benefits for the
854	854	42 immediately preceding calendar year;
855	855	2025 IN 1402—LS 7150/DI 120 19
856	856	1 (B) the individual had, in the case of an individual who filed
857	857	2 a joint income tax return with the individual's spouse,
858	858	3 combined adjusted gross income (as defined in Section 62 of
859	859	4 the Internal Revenue Code) not exceeding forty thousand
860	860	5 dollars ($40,000), and beginning for the January 1, 2023,
861	861	6 assessment date, and each assessment date thereafter, adjusted
862	862	7 annually by an amount equal to the percentage cost of living
863	863	8 increase applied for Social Security benefits for the
864	864	9 immediately preceding calendar year; or
865	865	10 (C) the combined adjusted gross income (as defined in Section
866	866	11 62 of the Internal Revenue Code) of the individual and all
867	867	12 other individuals with whom:
868	868	13 (i) the individual shares ownership; or
869	869	14 (ii) the individual is purchasing the property under a
870	870	15 contract;
871	871	16 as joint tenants or tenants in common did not exceed forty
872	872	17 thousand dollars ($40,000), and beginning for the January 1,
873	873	18 2023, assessment date, and each assessment date thereafter,
874	874	19 adjusted annually by an amount equal to the percentage cost
875	875	20 of living increase applied for Social Security benefits for the
876	876	21 immediately preceding calendar year;
877	877	22 for the calendar year preceding by two (2) years the calendar year
878	878	23 in which the property taxes are first due and payable;
879	879	24 (4) the individual has owned the real property, mobile home, or
880	880	25 manufactured home for at least one (1) year before claiming the
881	881	26 deduction; or the individual has been buying the real property,
882	882	27 mobile home, or manufactured home under a contract that
883	883	28 provides that the individual is to pay the property taxes on the real
884	884	29 property, mobile home, or manufactured home for at least one (1)
885	885	30 year before claiming the deduction, and the contract or a
886	886	31 memorandum of the contract is recorded in the county recorder's
887	887	32 office;
888	888	33 (5) for assessment dates:
889	889	34 (A) before January 1, 2020, the individual and any individuals
890	890	35 covered by subdivision (2)(B) reside on the real property,
891	891	36 mobile home, or manufactured home; or
892	892	37 (B) after December 31, 2019, the individual and any
893	893	38 individuals covered by subdivision (3)(C) reside on the real
894	894	39 property, mobile home, or manufactured home;
895	895	40 (6) except as provided in subsection (i), the assessed value of the
896	896	41 real property, mobile home, or manufactured home does not
897	897	42 exceed two hundred forty thousand dollars ($240,000);
898	898	2025 IN 1402—LS 7150/DI 120 20
899	899	1 (7) the individual receives no other property tax deduction for the
900	900	2 year in which the deduction is claimed, except the deductions
901	901	3 provided by sections 37, (for assessment dates after February 28,
902	902	4 2008) 37.5, and 38 of this chapter; and
903	903	5 (8) the person:
904	904	6 (A) owns the real property, mobile home, or manufactured
905	905	7 home; or
906	906	8 (B) is buying the real property, mobile home, or manufactured
907	907	9 home under contract;
908	908	10 on the date the statement required by section 10.1 of this chapter
909	909	11 is filed.
910	910	12 For purposes of applying the annual cost of living increases described
911	911	13 in subdivision (3)(A) through (3)(C), the annual percentage increase is
912	912	14 applied to the adjusted amount of income from the immediately
913	913	15 preceding year.
914	914	16 (b) Except as provided in subsection (h), in the case of real property,
915	915	17 an individual's deduction under this section equals the lesser of:
916	916	18 (1) one-half (1/2) of the assessed value of the real property; or
917	917	19 (2) fourteen thousand dollars ($14,000).
918	918	20 (c) Except as provided in subsection (h) and section 40.5 of this
919	919	21 chapter, in the case of a mobile home that is not assessed as real
920	920	22 property or a manufactured home which is not assessed as real
921	921	23 property, an individual's deduction under this section equals the lesser
922	922	24 of:
923	923	25 (1) one-half (1/2) of the assessed value of the mobile home or
924	924	26 manufactured home; or
925	925	27 (2) fourteen thousand dollars ($14,000).
926	926	28 (d) An individual may not be denied the deduction provided under
927	927	29 this section because the individual is absent from the real property,
928	928	30 mobile home, or manufactured home while in a nursing home or
929	929	31 hospital.
930	930	32 (e) For purposes of this section, if real property, a mobile home, or
931	931	33 a manufactured home is owned by:
932	932	34 (1) tenants by the entirety;
933	933	35 (2) joint tenants; or
934	934	36 (3) tenants in common;
935	935	37 only one (1) deduction may be allowed. However, the age requirement
936	936	38 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
937	937	39 of age.
938	938	40 (f) A surviving spouse is entitled to the deduction provided by this
939	939	41 section if:
940	940	42 (1) the surviving spouse is at least sixty (60) years of age on or
941	941	2025 IN 1402—LS 7150/DI 120 21
942	942	1 before December 31 of the calendar year preceding the year in
943	943	2 which the deduction is claimed;
944	944	3 (2) the surviving spouse's deceased husband or wife was at least
945	945	4 sixty-five (65) years of age at the time of a death;
946	946	5 (3) the surviving spouse has not remarried; and
947	947	6 (4) the surviving spouse satisfies the requirements prescribed in
948	948	7 subsection (a)(2) through (a)(8).
949	949	8 (g) An individual who has sold real property to another person
950	950	9 under a contract that provides that the contract buyer is to pay the
951	951	10 property taxes on the real property may not claim the deduction
952	952	11 provided under this section against that real property.
953	953	12 (h) In the case of tenants covered by subsection (a)(2)(B) or
954	954	13 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
955	955	14 age, the deduction allowed under this section shall be reduced by an
956	956	15 amount equal to the deduction multiplied by a fraction. The numerator
957	957	16 of the fraction is the number of tenants who are not at least sixty-five
958	958	17 (65) years of age, and the denominator is the total number of tenants.
959	959	18 (i) For purposes of determining the assessed value of the real
960	960	19 property, mobile home, or manufactured home under subsection (a)(6)
961	961	20 for an individual who has received a deduction under this section in a
962	962	21 previous year, increases in assessed value that occur after the later of:
963	963	22 (1) December 31, 2019; or
964	964	23 (2) the first year that the individual has received the deduction;
965	965	24 are not considered unless the increase in assessed value is attributable
966	966	25 to substantial renovation or new improvements. Where there is an
967	967	26 increase in assessed value for purposes of the deduction under this
968	968	27 section, the assessor shall provide a report to the county auditor
969	969	28 describing the substantial renovation or new improvements, if any, that
970	970	29 were made to the property prior to the increase in assessed value.
971	971	30 (j) This section applies only to property taxes imposed for an
972	972	31 assessment date before January 1, 2025.
973	973	32 (k) This section expires January 1, 2027.
974	974	33 SECTION 19. IC 6-1.1-12-10.1, AS AMENDED BY P.L.136-2024,
975	975	34 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
976	976	35 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 10.1. (a) Except as
977	977	36 provided in section 17.8 of this chapter and subject to section 45 of this
978	978	37 chapter, an individual who desires to claim the deduction provided by
979	979	38 section 9 of this chapter must file a sworn statement, on forms
980	980	39 prescribed by the department of local government finance, with the
981	981	40 auditor of the county in which the real property, mobile home, or
982	982	41 manufactured home is located. To obtain the deduction for a desired
983	983	42 calendar year in which property taxes are first due and payable, the
984	984	2025 IN 1402—LS 7150/DI 120 22
985	985	1 statement must be completed, dated, and filed with the county auditor
986	986	2 on or before January 15 of the calendar year in which the property taxes
987	987	3 are first due and payable. The statement may be filed in person or by
988	988	4 mail. If mailed, the mailing must be postmarked on or before the last
989	989	5 day for filing.
990	990	6 (b) The statement referred to in subsection (a) shall be in affidavit
991	991	7 form or require verification under penalties of perjury. The statement
992	992	8 must be filed in duplicate if the applicant owns, or is buying under a
993	993	9 contract, real property, a mobile home, or a manufactured home subject
994	994	10 to assessment in more than one (1) county or in more than one (1)
995	995	11 taxing district in the same county. The statement shall contain:
996	996	12 (1) the source and exact amount of gross income received by the
997	997	13 individual and the individual's spouse during the preceding
998	998	14 calendar year;
999	999	15 (2) the description and assessed value of the real property, mobile
1000	1000	16 home, or manufactured home;
1001	1001	17 (3) the individual's full name and complete residence address;
1002	1002	18 (4) the record number and page where the contract or
1003	1003	19 memorandum of the contract is recorded if the individual is
1004	1004	20 buying the real property, mobile home, or manufactured home on
1005	1005	21 contract; and
1006	1006	22 (5) any additional information which the department of local
1007	1007	23 government finance may require.
1008	1008	24 (c) In order to substantiate the deduction statement, the applicant
1009	1009	25 shall submit for inspection by the county auditor a copy of the
1010	1010	26 applicant's and a copy of the applicant's spouse's income tax returns
1011	1011	27 that were originally due in the calendar year immediately preceding the
1012	1012	28 desired calendar year in which the property taxes are first due and
1013	1013	29 payable and for which the applicant and the applicant's spouse desire
1014	1014	30 to claim the deduction. If either was not required to file an income tax
1015	1015	31 return, the applicant shall subscribe to that fact in the deduction
1016	1016	32 statement.
1017	1017	33 (d) This section applies only to property taxes imposed for an
1018	1018	34 assessment date before January 1, 2025.
1019	1019	35 (e) This section expires January 1, 2027.
1020	1020	36 SECTION 20. IC 6-1.1-12-11, AS AMENDED BY P.L.148-2015,
1021	1021	37 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1022	1022	38 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 11. (a) Except as
1023	1023	39 provided in section 40.5 of this chapter, an individual may have the
1024	1024	40 sum of twelve thousand four hundred eighty dollars ($12,480) deducted
1025	1025	41 from the assessed value of real property, mobile home not assessed as
1026	1026	42 real property, or manufactured home not assessed as real property that
1027	1027	2025 IN 1402—LS 7150/DI 120 23
1028	1028	1 the individual owns, or that the individual is buying under a contract
1029	1029	2 that provides that the individual is to pay property taxes on the real
1030	1030	3 property, mobile home, or manufactured home, if the contract or a
1031	1031	4 memorandum of the contract is recorded in the county recorder's office,
1032	1032	5 and if:
1033	1033	6 (1) the individual is blind or the individual has a disability;
1034	1034	7 (2) the real property, mobile home, or manufactured home is
1035	1035	8 principally used and occupied by the individual as the individual's
1036	1036	9 residence;
1037	1037	10 (3) the individual's taxable gross income for the calendar year
1038	1038	11 preceding the year in which the deduction is claimed did not
1039	1039	12 exceed seventeen thousand dollars ($17,000); and
1040	1040	13 (4) the individual:
1041	1041	14 (A) owns the real property, mobile home, or manufactured
1042	1042	15 home; or
1043	1043	16 (B) is buying the real property, mobile home, or manufactured
1044	1044	17 home under contract;
1045	1045	18 on the date the statement required by section 12 of this chapter is
1046	1046	19 filed.
1047	1047	20 (b) For purposes of this section, taxable gross income does not
1048	1048	21 include income which is not taxed under the federal income tax laws.
1049	1049	22 (c) For purposes of this section, "blind" has the same meaning as the
1050	1050	23 definition contained in IC 12-7-2-21(1).
1051	1051	24 (d) For purposes of this section, "individual with a disability" means
1052	1052	25 a person unable to engage in any substantial gainful activity by reason
1053	1053	26 of a medically determinable physical or mental impairment which:
1054	1054	27 (1) can be expected to result in death; or
1055	1055	28 (2) has lasted or can be expected to last for a continuous period of
1056	1056	29 not less than twelve (12) months.
1057	1057	30 (e) An individual with a disability filing a claim under this section
1058	1058	31 shall submit proof of the disability. Proof that a claimant is eligible to
1059	1059	32 receive disability benefits under the federal Social Security Act (42
1060	1060	33 U.S.C. 301 et seq.) shall constitute proof of disability for purposes of
1061	1061	34 this section.
1062	1062	35 (f) An individual with a disability not covered under the federal
1063	1063	36 Social Security Act shall be examined by a physician and the
1064	1064	37 individual's status as an individual with a disability determined by
1065	1065	38 using the same standards as used by the Social Security Administration.
1066	1066	39 The costs of this examination shall be borne by the claimant.
1067	1067	40 (g) An individual who has sold real property, a mobile home not
1068	1068	41 assessed as real property, or a manufactured home not assessed as real
1069	1069	42 property to another person under a contract that provides that the
1070	1070	2025 IN 1402—LS 7150/DI 120 24
1071	1071	1 contract buyer is to pay the property taxes on the real property, mobile
1072	1072	2 home, or manufactured home may not claim the deduction provided
1073	1073	3 under this section against that real property, mobile home, or
1074	1074	4 manufactured home.
1075	1075	5 (h) This section applies only to property taxes imposed for an
1076	1076	6 assessment date before January 1, 2025.
1077	1077	7 (i) This section expires January 1, 2027.
1078	1078	8 SECTION 21. IC 6-1.1-12-12, AS AMENDED BY P.L.136-2024,
1079	1079	9 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1080	1080	10 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 12. (a) Except as
1081	1081	11 provided in section 17.8 of this chapter and subject to section 45 of this
1082	1082	12 chapter, a person who desires to claim the deduction provided in
1083	1083	13 section 11 of this chapter must file an application, on forms prescribed
1084	1084	14 by the department of local government finance, with the auditor of the
1085	1085	15 county in which the real property, mobile home not assessed as real
1086	1086	16 property, or manufactured home not assessed as real property is
1087	1087	17 located. To obtain the deduction for a desired calendar year in which
1088	1088	18 property taxes are first due and payable, the application must be
1089	1089	19 completed, dated, and filed with the county auditor on or before
1090	1090	20 January 15 of the calendar year in which the property taxes are first due
1091	1091	21 and payable. The application may be filed in person or by mail. If
1092	1092	22 mailed, the mailing must be postmarked on or before the last day for
1093	1093	23 filing.
1094	1094	24 (b) Proof of blindness may be supported by:
1095	1095	25 (1) the records of the division of family resources or the division
1096	1096	26 of disability and rehabilitative services; or
1097	1097	27 (2) the written statement of a physician who is licensed by this
1098	1098	28 state and skilled in the diseases of the eye or of a licensed
1099	1099	29 optometrist.
1100	1100	30 (c) The application required by this section must contain the record
1101	1101	31 number and page where the contract or memorandum of the contract
1102	1102	32 is recorded if the individual is buying the real property, mobile home,
1103	1103	33 or manufactured home on a contract that provides that the individual
1104	1104	34 is to pay property taxes on the real property, mobile home, or
1105	1105	35 manufactured home.
1106	1106	36 (d) This section applies only to property taxes imposed for an
1107	1107	37 assessment date before January 1, 2025.
1108	1108	38 (e) This section expires January 1, 2027.
1109	1109	39 SECTION 22. IC 6-1.1-12-13, AS AMENDED BY
1110	1110	40 P.L.293-2013(ts), SECTION 1, IS AMENDED TO READ AS
1111	1111	41 FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
1112	1112	42 Sec. 13. (a) Except as provided in section 40.5 of this chapter, an
1113	1113	2025 IN 1402—LS 7150/DI 120 25
1114	1114	1 individual may have twenty-four thousand nine hundred sixty dollars
1115	1115	2 ($24,960) deducted from the assessed value of the taxable tangible
1116	1116	3 property that the individual owns, or real property, a mobile home not
1117	1117	4 assessed as real property, or a manufactured home not assessed as real
1118	1118	5 property that the individual is buying under a contract that provides
1119	1119	6 that the individual is to pay property taxes on the real property, mobile
1120	1120	7 home, or manufactured home, if the contract or a memorandum of the
1121	1121	8 contract is recorded in the county recorder's office and if:
1122	1122	9 (1) the individual served in the military or naval forces of the
1123	1123	10 United States during any of its wars;
1124	1124	11 (2) the individual received an honorable discharge;
1125	1125	12 (3) the individual has a disability with a service connected
1126	1126	13 disability of ten percent (10%) or more;
1127	1127	14 (4) the individual's disability is evidenced by:
1128	1128	15 (A) a pension certificate, an award of compensation, or a
1129	1129	16 disability compensation check issued by the United States
1130	1130	17 Department of Veterans Affairs; or
1131	1131	18 (B) a certificate of eligibility issued to the individual by the
1132	1132	19 Indiana department of veterans' affairs after the Indiana
1133	1133	20 department of veterans' affairs has determined that the
1134	1134	21 individual's disability qualifies the individual to receive a
1135	1135	22 deduction under this section; and
1136	1136	23 (5) the individual:
1137	1137	24 (A) owns the real property, mobile home, or manufactured
1138	1138	25 home; or
1139	1139	26 (B) is buying the real property, mobile home, or manufactured
1140	1140	27 home under contract;
1141	1141	28 on the date the statement required by section 15 of this chapter is
1142	1142	29 filed.
1143	1143	30 (b) The surviving spouse of an individual may receive the deduction
1144	1144	31 provided by this section if the individual satisfied the requirements of
1145	1145	32 subsection (a)(1) through (a)(4) at the time of death and the surviving
1146	1146	33 spouse satisfies the requirement of subsection (a)(5) at the time the
1147	1147	34 deduction statement is filed. The surviving spouse is entitled to the
1148	1148	35 deduction regardless of whether the property for which the deduction
1149	1149	36 is claimed was owned by the deceased veteran or the surviving spouse
1150	1150	37 before the deceased veteran's death.
1151	1151	38 (c) One who receives the deduction provided by this section may not
1152	1152	39 receive the deduction provided by section 16 of this chapter. However,
1153	1153	40 the individual may receive any other property tax deduction which the
1154	1154	41 individual is entitled to by law.
1155	1155	42 (d) An individual who has sold real property, a mobile home not
1156	1156	2025 IN 1402—LS 7150/DI 120 26
1157	1157	1 assessed as real property, or a manufactured home not assessed as real
1158	1158	2 property to another person under a contract that provides that the
1159	1159	3 contract buyer is to pay the property taxes on the real property, mobile
1160	1160	4 home, or manufactured home may not claim the deduction provided
1161	1161	5 under this section against that real property, mobile home, or
1162	1162	6 manufactured home.
1163	1163	7 (e) This section applies only to property taxes imposed for an
1164	1164	8 assessment date before January 1, 2025.
1165	1165	9 (f) This section expires January 1, 2027.
1166	1166	10 SECTION 23. IC 6-1.1-12-14, AS AMENDED BY P.L.136-2024,
1167	1167	11 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1168	1168	12 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 14. (a) Except as
1169	1169	13 provided in subsection (c) and except as provided in section 40.5 of
1170	1170	14 this chapter, an individual may have the sum of fourteen thousand
1171	1171	15 dollars ($14,000) deducted from the assessed value of the real property,
1172	1172	16 mobile home not assessed as real property, or manufactured home not
1173	1173	17 assessed as real property that the individual owns (or the real property,
1174	1174	18 mobile home not assessed as real property, or manufactured home not
1175	1175	19 assessed as real property that the individual is buying under a contract
1176	1176	20 that provides that the individual is to pay property taxes on the real
1177	1177	21 property, mobile home, or manufactured home if the contract or a
1178	1178	22 memorandum of the contract is recorded in the county recorder's office)
1179	1179	23 if:
1180	1180	24 (1) the individual served in the military or naval forces of the
1181	1181	25 United States for at least ninety (90) days;
1182	1182	26 (2) the individual received an honorable discharge;
1183	1183	27 (3) the individual either:
1184	1184	28 (A) has a total disability; or
1185	1185	29 (B) is at least sixty-two (62) years old and has a disability of at
1186	1186	30 least ten percent (10%);
1187	1187	31 (4) the individual's disability is evidenced by:
1188	1188	32 (A) a pension certificate or an award of compensation issued
1189	1189	33 by the United States Department of Veterans Affairs; or
1190	1190	34 (B) a certificate of eligibility issued to the individual by the
1191	1191	35 Indiana department of veterans' affairs after the Indiana
1192	1192	36 department of veterans' affairs has determined that the
1193	1193	37 individual's disability qualifies the individual to receive a
1194	1194	38 deduction under this section; and
1195	1195	39 (5) the individual:
1196	1196	40 (A) owns the real property, mobile home, or manufactured
1197	1197	41 home; or
1198	1198	42 (B) is buying the real property, mobile home, or manufactured
1199	1199	2025 IN 1402—LS 7150/DI 120 27
1200	1200	1 home under contract;
1201	1201	2 on the date the statement required by section 15 of this chapter is
1202	1202	3 filed.
1203	1203	4 (b) Except as provided in subsections (c) and (d), the surviving
1204	1204	5 spouse of an individual may receive the deduction provided by this
1205	1205	6 section if:
1206	1206	7 (1) the individual satisfied the requirements of subsection (a)(1)
1207	1207	8 through (a)(4) at the time of death; or
1208	1208	9 (2) the individual:
1209	1209	10 (A) was killed in action;
1210	1210	11 (B) died while serving on active duty in the military or naval
1211	1211	12 forces of the United States; or
1212	1212	13 (C) died while performing inactive duty training in the military
1213	1213	14 or naval forces of the United States; and
1214	1214	15 the surviving spouse satisfies the requirement of subsection (a)(5) at
1215	1215	16 the time the deduction statement is filed. The surviving spouse is
1216	1216	17 entitled to the deduction regardless of whether the property for which
1217	1217	18 the deduction is claimed was owned by the deceased veteran or the
1218	1218	19 surviving spouse before the deceased veteran's death.
1219	1219	20 (c) Except as provided in subsection (f), no one is entitled to the
1220	1220	21 deduction provided by this section if the assessed value of the
1221	1221	22 individual's Indiana real property, Indiana mobile home not assessed as
1222	1222	23 real property, and Indiana manufactured home not assessed as real
1223	1223	24 property, as shown by the tax duplicate, exceeds the assessed value
1224	1224	25 limit specified in subsection (d).
1225	1225	26 (d) Except as provided in subsection (f), for the:
1226	1226	27 (1) January 1, 2017, January 1, 2018, and January 1, 2019,
1227	1227	28 assessment dates, the assessed value limit for purposes of
1228	1228	29 subsection (c) is one hundred seventy-five thousand dollars
1229	1229	30 ($175,000);
1230	1230	31 (2) January 1, 2020, January 1, 2021, January 1, 2022, and
1231	1231	32 January 1, 2023, assessment dates, the assessed value limit for
1232	1232	33 purposes of subsection (c) is two hundred thousand dollars
1233	1233	34 ($200,000); and
1234	1234	35 (3) January 1, 2024, assessment date and for each assessment date
1235	1235	36 thereafter, the assessed value limit for purposes of subsection (c)
1236	1236	37 is two hundred forty thousand dollars ($240,000).
1237	1237	38 (e) An individual who has sold real property, a mobile home not
1238	1238	39 assessed as real property, or a manufactured home not assessed as real
1239	1239	40 property to another person under a contract that provides that the
1240	1240	41 contract buyer is to pay the property taxes on the real property, mobile
1241	1241	42 home, or manufactured home may not claim the deduction provided
1242	1242	2025 IN 1402—LS 7150/DI 120 28
1243	1243	1 under this section against that real property, mobile home, or
1244	1244	2 manufactured home.
1245	1245	3 (f) For purposes of determining the assessed value of the real
1246	1246	4 property, mobile home, or manufactured home under subsection (d) for
1247	1247	5 an individual who has received a deduction under this section in a
1248	1248	6 previous year, increases in assessed value that occur after the later of:
1249	1249	7 (1) December 31, 2019; or
1250	1250	8 (2) the first year that the individual has received the deduction;
1251	1251	9 are not considered unless the increase in assessed value is attributable
1252	1252	10 to substantial renovation or new improvements. Where there is an
1253	1253	11 increase in assessed value for purposes of the deduction under this
1254	1254	12 section, the assessor shall provide a report to the county auditor
1255	1255	13 describing the substantial renovation or new improvements, if any, that
1256	1256	14 were made to the property prior to the increase in assessed value.
1257	1257	15 (g) This section applies only to property taxes imposed for an
1258	1258	16 assessment date before January 1, 2025.
1259	1259	17 (h) This section expires January 1, 2027.
1260	1260	18 SECTION 24. IC 6-1.1-12-14.5, AS ADDED BY P.L.100-2016,
1261	1261	19 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1262	1262	20 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 14.5. (a) As used in this
1263	1263	21 section, "homestead" has the meaning set forth in IC 6-1.1-12-37.
1264	1264	22 section 37 of this chapter.
1265	1265	23 (b) An individual may claim a deduction from the assessed value of
1266	1266	24 the individual's homestead if:
1267	1267	25 (1) the individual served in the military or naval forces of the
1268	1268	26 United States for at least ninety (90) days;
1269	1269	27 (2) the individual received an honorable discharge;
1270	1270	28 (3) the individual has a disability of at least fifty percent (50%);
1271	1271	29 (4) the individual's disability is evidenced by:
1272	1272	30 (A) a pension certificate or an award of compensation issued
1273	1273	31 by the United States Department of Veterans Affairs; or
1274	1274	32 (B) a certificate of eligibility issued to the individual by the
1275	1275	33 Indiana department of veterans' affairs after the Indiana
1276	1276	34 department of veterans' affairs has determined that the
1277	1277	35 individual's disability qualifies the individual to receive a
1278	1278	36 deduction under this section; and
1279	1279	37 (5) the homestead was conveyed without charge to the individual
1280	1280	38 who is the owner of the homestead by an organization that is
1281	1281	39 exempt from income taxation under the federal Internal Revenue
1282	1282	40 Code.
1283	1283	41 (c) If an individual is entitled to a deduction from assessed value
1284	1284	42 under subsection (b) for the individual's homestead, the amount of the
1285	1285	2025 IN 1402—LS 7150/DI 120 29
1286	1286	1 deduction is determined as follows:
1287	1287	2 (1) If the individual is totally disabled, the deduction is equal to
1288	1288	3 one hundred percent (100%) of the assessed value of the
1289	1289	4 homestead.
1290	1290	5 (2) If the individual has a disability of at least ninety percent
1291	1291	6 (90%) but the individual is not totally disabled, the deduction is
1292	1292	7 equal to ninety percent (90%) of the assessed value of the
1293	1293	8 homestead.
1294	1294	9 (3) If the individual has a disability of at least eighty percent
1295	1295	10 (80%) but less than ninety percent (90%), the deduction is equal
1296	1296	11 to eighty percent (80%) of the assessed value of the homestead.
1297	1297	12 (4) If the individual has a disability of at least seventy percent
1298	1298	13 (70%) but less than eighty percent (80%), the deduction is equal
1299	1299	14 to seventy percent (70%) of the assessed value of the homestead.
1300	1300	15 (5) If the individual has a disability of at least sixty percent (60%)
1301	1301	16 but less than seventy percent (70%), the deduction is equal to
1302	1302	17 sixty percent (60%) of the assessed value of the homestead.
1303	1303	18 (6) If the individual has a disability of at least fifty percent (50%)
1304	1304	19 but less than sixty percent (60%), the deduction is equal to fifty
1305	1305	20 percent (50%) of the assessed value of the homestead.
1306	1306	21 (d) An individual who claims a deduction under this section for an
1307	1307	22 assessment date may not also claim a deduction under section 13 or 14
1308	1308	23 of this chapter (before their expiration) for that same assessment date.
1309	1309	24 (e) An individual who desires to claim the deduction under this
1310	1310	25 section must claim the deduction in the manner specified by the
1311	1311	26 department of local government finance.
1312	1312	27 SECTION 25. IC 6-1.1-12-15, AS AMENDED BY P.L.136-2024,
1313	1313	28 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1314	1314	29 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 15. (a) Except as
1315	1315	30 provided in section 17.8 of this chapter and subject to section 45 of this
1316	1316	31 chapter, an individual who desires to claim the deduction provided by
1317	1317	32 section 13 or 14 of this chapter must file a statement with the auditor
1318	1318	33 of the county in which the individual resides. To obtain the deduction
1319	1319	34 for a desired calendar year in which property taxes are first due and
1320	1320	35 payable, the statement must be completed, dated, and filed with the
1321	1321	36 county auditor on or before January 15 of the calendar year in which
1322	1322	37 the property taxes are first due and payable. The statement may be filed
1323	1323	38 in person or by mail. If mailed, the mailing must be postmarked on or
1324	1324	39 before the last day for filing. The statement shall contain a sworn
1325	1325	40 declaration that the individual is entitled to the deduction.
1326	1326	41 (b) In addition to the statement, the individual shall submit to the
1327	1327	42 county auditor for the auditor's inspection:
1328	1328	2025 IN 1402—LS 7150/DI 120 30
1329	1329	1 (1) a pension certificate, an award of compensation, or a disability
1330	1330	2 compensation check issued by the United States Department of
1331	1331	3 Veterans Affairs if the individual claims the deduction provided
1332	1332	4 by section 13 of this chapter;
1333	1333	5 (2) a pension certificate or an award of compensation issued by
1334	1334	6 the United States Department of Veterans Affairs if the individual
1335	1335	7 claims the deduction provided by section 14 of this chapter; or
1336	1336	8 (3) the appropriate certificate of eligibility issued to the individual
1337	1337	9 by the Indiana department of veterans' affairs if the individual
1338	1338	10 claims the deduction provided by section 13 or 14 of this chapter.
1339	1339	11 (c) If the individual claiming the deduction is under guardianship,
1340	1340	12 the guardian shall file the statement required by this section. If a
1341	1341	13 deceased veteran's surviving spouse is claiming the deduction, the
1342	1342	14 surviving spouse shall provide the documentation necessary to
1343	1343	15 establish that at the time of death the deceased veteran satisfied the
1344	1344	16 requirements of section 13(a)(1) through 13(a)(4) of this chapter,
1345	1345	17 section 14(a)(1) through 14(a)(4) of this chapter, or section 14(b)(2) of
1346	1346	18 this chapter, whichever applies.
1347	1347	19 (d) If the individual claiming a deduction under section 13 or 14 of
1348	1348	20 this chapter is buying real property, a mobile home not assessed as real
1349	1349	21 property, or a manufactured home not assessed as real property under
1350	1350	22 a contract that provides that the individual is to pay property taxes for
1351	1351	23 the real estate, mobile home, or manufactured home, the statement
1352	1352	24 required by this section must contain the record number and page
1353	1353	25 where the contract or memorandum of the contract is recorded.
1354	1354	26 (e) This section applies only to property taxes imposed for an
1355	1355	27 assessment date before January 1, 2025.
1356	1356	28 (f) This section expires January 1, 2027.
1357	1357	29 SECTION 26. IC 6-1.1-12-16, AS AMENDED BY P.L.1-2009,
1358	1358	30 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1359	1359	31 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 16. (a) Except as
1360	1360	32 provided in section 40.5 of this chapter, a surviving spouse may have
1361	1361	33 the sum of eighteen thousand seven hundred twenty dollars ($18,720)
1362	1362	34 deducted from the assessed value of his or her the surviving spouse's
1363	1363	35 tangible property, or real property, mobile home not assessed as real
1364	1364	36 property, or manufactured home not assessed as real property that the
1365	1365	37 surviving spouse is buying under a contract that provides that the
1366	1366	38 surviving spouse is to pay property taxes on the real property, mobile
1367	1367	39 home, or manufactured home, if the contract or a memorandum of the
1368	1368	40 contract is recorded in the county recorder's office, and if:
1369	1369	41 (1) the deceased spouse served in the military or naval forces of
1370	1370	42 the United States before November 12, 1918;
1371	1371	2025 IN 1402—LS 7150/DI 120 31
1372	1372	1 (2) the deceased spouse received an honorable discharge; and
1373	1373	2 (3) the surviving spouse:
1374	1374	3 (A) owns the real property, mobile home, or manufactured
1375	1375	4 home; or
1376	1376	5 (B) is buying the real property, mobile home, or manufactured
1377	1377	6 home under contract;
1378	1378	7 on the date the statement required by section 17 of this chapter is
1379	1379	8 filed.
1380	1380	9 (b) A surviving spouse who receives the deduction provided by this
1381	1381	10 section may not receive the deduction provided by section 13 of this
1382	1382	11 chapter. However, he or she the surviving spouse may receive any
1383	1383	12 other deduction which he or she the surviving spouse is entitled to by
1384	1384	13 law.
1385	1385	14 (c) An individual who has sold real property, a mobile home not
1386	1386	15 assessed as real property, or a manufactured home not assessed as real
1387	1387	16 property to another person under a contract that provides that the
1388	1388	17 contract buyer is to pay the property taxes on the real property, mobile
1389	1389	18 home, or manufactured home may not claim the deduction provided
1390	1390	19 under this section against that real property, mobile home, or
1391	1391	20 manufactured home.
1392	1392	21 (d) This section applies only to property taxes imposed for an
1393	1393	22 assessment date before January 1, 2025.
1394	1394	23 (e) This section expires January 1, 2027.
1395	1395	24 SECTION 27. IC 6-1.1-12-17, AS AMENDED BY P.L.136-2024,
1396	1396	25 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1397	1397	26 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 17. (a) Except as
1398	1398	27 provided in section 17.8 of this chapter and subject to section 45 of this
1399	1399	28 chapter, a surviving spouse who desires to claim the deduction
1400	1400	29 provided by section 16 of this chapter must file a statement with the
1401	1401	30 auditor of the county in which the surviving spouse resides. To obtain
1402	1402	31 the deduction for a desired calendar year in which property taxes are
1403	1403	32 first due and payable, the statement must be completed, dated, and filed
1404	1404	33 with the county auditor on or before January 15 of the calendar year in
1405	1405	34 which the property taxes are first due and payable. The statement may
1406	1406	35 be filed in person or by mail. If mailed, the mailing must be postmarked
1407	1407	36 on or before the last day for filing. The statement shall contain:
1408	1408	37 (1) a sworn statement that the surviving spouse is entitled to the
1409	1409	38 deduction; and
1410	1410	39 (2) the record number and page where the contract or
1411	1411	40 memorandum of the contract is recorded, if the individual is
1412	1412	41 buying the real property on a contract that provides that the
1413	1413	42 individual is to pay property taxes on the real property.
1414	1414	2025 IN 1402—LS 7150/DI 120 32
1415	1415	1 In addition to the statement, the surviving spouse shall submit to the
1416	1416	2 county auditor for the auditor's inspection a letter or certificate from the
1417	1417	3 United States Department of Veterans Affairs establishing the service
1418	1418	4 of the deceased spouse in the military or naval forces of the United
1419	1419	5 States before November 12, 1918.
1420	1420	6 (b) This section applies only to property taxes imposed for an
1421	1421	7 assessment date before January 1, 2025.
1422	1422	8 (c) This section expires January 1, 2027.
1423	1423	9 SECTION 28. IC 6-1.1-12-17.8, AS AMENDED BY THE
1424	1424	10 TECHNICAL CORRECTIONS BILL OF THE 2025 GENERAL
1425	1425	11 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1426	1426	12 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 17.8. (a) An individual
1427	1427	13 who receives a deduction provided under section 9 (before its
1428	1428	14 expiration), 11 (before its expiration), 13 (before its expiration), 14
1429	1429	15 (before its expiration), 16 (before its expiration), 17.4 (before its
1430	1430	16 expiration), or 37 of this chapter in a particular year and who remains
1431	1431	17 eligible for the deduction in the following year is not required to file a
1432	1432	18 statement to apply for the deduction in the following year. However, for
1433	1433	19 purposes of a deduction under section 37 of this chapter, the county
1434	1434	20 auditor may, in the county auditor's discretion, terminate the deduction
1435	1435	21 for assessment dates after January 15, 2012, if the individual does not
1436	1436	22 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
1437	1437	23 1, 2015), as determined by the county auditor, before January 1, 2013.
1438	1438	24 Before the county auditor terminates the deduction because the
1439	1439	25 taxpayer claiming the deduction did not comply with the requirement
1440	1440	26 in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
1441	1441	27 2013, the county auditor shall mail notice of the proposed termination
1442	1442	28 of the deduction to:
1443	1443	29 (1) the last known address of each person liable for any property
1444	1444	30 taxes or special assessment, as shown on the tax duplicate or
1445	1445	31 special assessment records; or
1446	1446	32 (2) the last known address of the most recent owner shown in the
1447	1447	33 transfer book.
1448	1448	34 (b) An individual who receives a deduction provided under section
1449	1449	35 9 (before its expiration), 11 (before its expiration), 13 (before its
1450	1450	36 expiration), 14 (before its expiration), 16 (before its expiration), or
1451	1451	37 17.4 (before its expiration) of this chapter in a particular year and who
1452	1452	38 becomes ineligible for the deduction in the following year shall notify
1453	1453	39 the auditor of the county in which the real property, mobile home, or
1454	1454	40 manufactured home for which the individual claims the deduction is
1455	1455	41 located of the individual's ineligibility in the year in which the
1456	1456	42 individual becomes ineligible. An individual who becomes ineligible
1457	1457	2025 IN 1402—LS 7150/DI 120 33
1458	1458	1 for a deduction under section 37 of this chapter shall notify the county
1459	1459	2 auditor of the county in which the property is located in conformity
1460	1460	3 with section 37 of this chapter.
1461	1461	4 (c) The auditor of each county shall, in a particular year, apply a
1462	1462	5 deduction provided under section 9 (before its expiration), 11 (before
1463	1463	6 its expiration), 13 (before its expiration), 14 (before its expiration),
1464	1464	7 16 (before its expiration), 17.4 (before its expiration), or 37 of this
1465	1465	8 chapter to each individual who received the deduction in the preceding
1466	1466	9 year unless the auditor determines that the individual is no longer
1467	1467	10 eligible for the deduction.
1468	1468	11 (d) An individual who receives a deduction provided under section
1469	1469	12 9 (before its expiration), 11 (before its expiration), 13 (before its
1470	1470	13 expiration), 14 (before its expiration), 16 (before its expiration),
1471	1471	14 17.4 (before its expiration), or 37 of this chapter for property that is
1472	1472	15 jointly held with another owner in a particular year and remains eligible
1473	1473	16 for the deduction in the following year is not required to file a
1474	1474	17 statement to reapply for the deduction following the removal of the
1475	1475	18 joint owner if:
1476	1476	19 (1) the individual is the sole owner of the property following the
1477	1477	20 death of the individual's spouse; or
1478	1478	21 (2) the individual is the sole owner of the property following the
1479	1479	22 death of a joint owner who was not the individual's spouse.
1480	1480	23 If a county auditor terminates a deduction under section 9 of this
1481	1481	24 chapter (before its expiration), a deduction under section 37 of this
1482	1482	25 chapter, or a credit under IC 6-1.1-20.6-8.5 after June 30, 2017, and
1483	1483	26 before May 1, 2019, because the taxpayer claiming the deduction or
1484	1484	27 credit did not comply with a requirement added to this subsection by
1485	1485	28 P.L.255-2017 to reapply for the deduction or credit, the county auditor
1486	1486	29 shall reinstate the deduction or credit if the taxpayer provides proof that
1487	1487	30 the taxpayer is eligible for the deduction or credit and is not claiming
1488	1488	31 the deduction or credit for any other property.
1489	1489	32 (e) A trust entitled to a deduction under section 9 (before its
1490	1490	33 expiration), 11 (before its expiration), 13 (before its expiration), 14
1491	1491	34 (before its expiration), 16 (before its expiration), 17.4 (before its
1492	1492	35 expiration), or 37 of this chapter for real property owned by the trust
1493	1493	36 and occupied by an individual in accordance with section 17.9 of this
1494	1494	37 chapter (before its expiration) is not required to file a statement to
1495	1495	38 apply for the deduction, if:
1496	1496	39 (1) the individual who occupies the real property receives a
1497	1497	40 deduction provided under section 9 (before its expiration), 11
1498	1498	41 (before its expiration), 13 (before its expiration), 14 (before its
1499	1499	42 expiration), 16 (before its expiration), 17.4 (before its
1500	1500	2025 IN 1402—LS 7150/DI 120 34
1501	1501	1 expiration), or 37 of this chapter in a particular year; and
1502	1502	2 (2) the trust remains eligible for the deduction in the following
1503	1503	3 year.
1504	1504	4 However, for purposes of a deduction under section 37 of this chapter,
1505	1505	5 the individuals that qualify the trust for a deduction must comply with
1506	1506	6 the requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015)
1507	1507	7 before January 1, 2013.
1508	1508	8 (f) A cooperative housing corporation (as defined in 26 U.S.C. 216)
1509	1509	9 that is entitled to a deduction under section 37 of this chapter in the
1510	1510	10 immediately preceding calendar year for a homestead (as defined in
1511	1511	11 section 37 of this chapter) is not required to file a statement to apply for
1512	1512	12 the deduction for the current calendar year if the cooperative housing
1513	1513	13 corporation remains eligible for the deduction for the current calendar
1514	1514	14 year. However, the county auditor may, in the county auditor's
1515	1515	15 discretion, terminate the deduction for assessment dates after January
1516	1516	16 15, 2012, if the individual does not comply with the requirement in
1517	1517	17 IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as determined by the
1518	1518	18 county auditor, before January 1, 2013. Before the county auditor
1519	1519	19 terminates a deduction because the taxpayer claiming the deduction did
1520	1520	20 not comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired
1521	1521	21 January 1, 2015) before January 1, 2013, the county auditor shall mail
1522	1522	22 notice of the proposed termination of the deduction to:
1523	1523	23 (1) the last known address of each person liable for any property
1524	1524	24 taxes or special assessment, as shown on the tax duplicate or
1525	1525	25 special assessment records; or
1526	1526	26 (2) the last known address of the most recent owner shown in the
1527	1527	27 transfer book.
1528	1528	28 (g) An individual who:
1529	1529	29 (1) was eligible for a homestead credit under IC 6-1.1-20.9
1530	1530	30 (repealed) for property taxes imposed for the March 1, 2007, or
1531	1531	31 January 15, 2008, assessment date; or
1532	1532	32 (2) would have been eligible for a homestead credit under
1533	1533	33 IC 6-1.1-20.9 (repealed) for property taxes imposed for the March
1534	1534	34 1, 2008, or January 15, 2009, assessment date if IC 6-1.1-20.9 had
1535	1535	35 not been repealed;
1536	1536	36 is not required to file a statement to apply for a deduction under section
1537	1537	37 37 of this chapter if the individual remains eligible for the deduction in
1538	1538	38 the current year. An individual who filed for a homestead credit under
1539	1539	39 IC 6-1.1-20.9 (repealed) for an assessment date after March 1, 2007 (if
1540	1540	40 the property is real property), or after January 1, 2008 (if the property
1541	1541	41 is personal property), shall be treated as an individual who has filed for
1542	1542	42 a deduction under section 37 of this chapter. However, the county
1543	1543	2025 IN 1402—LS 7150/DI 120 35
1544	1544	1 auditor may, in the county auditor's discretion, terminate the deduction
1545	1545	2 for assessment dates after January 15, 2012, if the individual does not
1546	1546	3 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
1547	1547	4 1, 2015), as determined by the county auditor, before January 1, 2013.
1548	1548	5 Before the county auditor terminates the deduction because the
1549	1549	6 taxpayer claiming the deduction did not comply with the requirement
1550	1550	7 in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
1551	1551	8 2013, the county auditor shall mail notice of the proposed termination
1552	1552	9 of the deduction to the last known address of each person liable for any
1553	1553	10 property taxes or special assessment, as shown on the tax duplicate or
1554	1554	11 special assessment records, or to the last known address of the most
1555	1555	12 recent owner shown in the transfer book.
1556	1556	13 (h) If a county auditor terminates a deduction because the taxpayer
1557	1557	14 claiming the deduction did not comply with the requirement in
1558	1558	15 IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, 2013,
1559	1559	16 the county auditor shall reinstate the deduction if the taxpayer provides
1560	1560	17 proof that the taxpayer is eligible for the deduction and is not claiming
1561	1561	18 the deduction for any other property.
1562	1562	19 (i) A taxpayer described in section 37(q) 37(r) of this chapter is not
1563	1563	20 required to file a statement to apply for the deduction provided by
1564	1564	21 section 37 of this chapter if the property owned by the taxpayer remains
1565	1565	22 eligible for the deduction for that calendar year.
1566	1566	23 SECTION 29. IC 6-1.1-12-17.9, AS AMENDED BY P.L.190-2016,
1567	1567	24 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1568	1568	25 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 17.9. (a) A trust is
1569	1569	26 entitled to a deduction under section 9 (before its expiration), 11
1570	1570	27 (before its expiration), 13 (before its expiration), 14 (before its
1571	1571	28 expiration), 16 (before its expiration), or 17.4 (before its expiration)
1572	1572	29 of this chapter for real property owned by the trust and occupied by an
1573	1573	30 individual if the county auditor determines that the individual:
1574	1574	31 (1) upon verification in the body of the deed or otherwise, has
1575	1575	32 either:
1576	1576	33 (A) a beneficial interest in the trust; or
1577	1577	34 (B) the right to occupy the real property rent free under the
1578	1578	35 terms of a qualified personal residence trust created by the
1579	1579	36 individual under United States Treasury Regulation
1580	1580	37 25.2702-5(c)(2); and
1581	1581	38 (2) otherwise qualifies for the deduction.
1582	1582	39 (b) This section applies only to property taxes imposed for an
1583	1583	40 assessment date before January 1, 2025.
1584	1584	41 (c) This section expires January 1, 2027.
1585	1585	42 SECTION 30. IC 6-1.1-12-18, AS AMENDED BY P.L.181-2016,
1586	1586	2025 IN 1402—LS 7150/DI 120 36
1587	1587	1 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1588	1588	2 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 18. (a) This section
1589	1589	3 applies only to:
1590	1590	4 (1) rehabilitation of residential real property that occurs before
1591	1591	5 January 2, 2017; and
1592	1592	6 (2) property taxes imposed for an assessment date before
1593	1593	7 January 1, 2025.
1594	1594	8 (b) If the assessed value of residential real property described in
1595	1595	9 subsection (e) is increased because it has been rehabilitated, the owner
1596	1596	10 may have deducted from the assessed value of the property an amount
1597	1597	11 not to exceed the lesser of:
1598	1598	12 (1) the total increase in assessed value resulting from the
1599	1599	13 rehabilitation (excluding an increase in assessed value that occurs
1600	1600	14 after January 1, 2017); or
1601	1601	15 (2) eighteen thousand seven hundred twenty dollars ($18,720) per
1602	1602	16 rehabilitated dwelling unit.
1603	1603	17 The owner is entitled to this deduction annually for a five (5) year
1604	1604	18 period, or if subsection (f) applies, the period established under
1605	1605	19 subsection (f).
1606	1606	20 (c) For purposes of this section, the term "rehabilitation" means
1607	1607	21 significant repairs, replacements, or improvements to an existing
1608	1608	22 structure which are intended to increase the livability, utility, safety, or
1609	1609	23 value of the property under rules adopted by the department of local
1610	1610	24 government finance.
1611	1611	25 (d) For the purposes of this section, the term "owner" or "property
1612	1612	26 owner" includes any person who has the legal obligation, or has
1613	1613	27 otherwise assumed the obligation, to pay the real property taxes on the
1614	1614	28 rehabilitated property.
1615	1615	29 (e) The deduction provided by this section applies only:
1616	1616	30 (1) for the rehabilitation of residential real property which is
1617	1617	31 located within this state and which is described in one (1) of the
1618	1618	32 following classifications:
1619	1619	33 (A) A single family dwelling if before rehabilitation the
1620	1620	34 assessed value (excluding any exemptions or deductions) of
1621	1621	35 the improvements does not exceed thirty-seven thousand four
1622	1622	36 hundred forty dollars ($37,440).
1623	1623	37 (B) A two (2) family dwelling if before rehabilitation the
1624	1624	38 assessed value (excluding exemptions or deductions) of the
1625	1625	39 improvements does not exceed forty-nine thousand nine
1626	1626	40 hundred twenty dollars ($49,920).
1627	1627	41 (C) A dwelling with more than two (2) family units if before
1628	1628	42 rehabilitation the assessed value (excluding any exemptions or
1629	1629	2025 IN 1402—LS 7150/DI 120 37
1630	1630	1 deductions) of the improvements does not exceed eighteen
1631	1631	2 thousand seven hundred twenty dollars ($18,720) per dwelling
1632	1632	3 unit; and
1633	1633	4 (2) if the property owner:
1634	1634	5 (A) owns the residential real property; or
1635	1635	6 (B) is buying the residential real property under contract;
1636	1636	7 on the assessment date of the year in which an application must
1637	1637	8 be filed under section 20 of this chapter.
1638	1638	9 (f) A county, city, or town fiscal body may adopt an ordinance to
1639	1639	10 establish a deduction period that is longer than five (5) years but not to
1640	1640	11 exceed fifteen (15) years for any rehabilitated property covered by this
1641	1641	12 section that has also been determined to be abandoned or vacant for
1642	1642	13 purposes of IC 6-1.1-24.
1643	1643	14 (g) This section expires January 1, 2033. 2027.
1644	1644	15 SECTION 31. IC 6-1.1-12-21 IS AMENDED TO READ AS
1645	1645	16 FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
1646	1646	17 Sec. 21. When real property is reassessed because it has been
1647	1647	18 rehabilitated, the assessing official who, or the county property tax
1648	1648	19 assessment board of appeals which, makes the reassessment shall give
1649	1649	20 the owner notice of the property tax deductions provided by sections 18
1650	1650	21 and 22 of this chapter (before their expiration). The official or county
1651	1651	22 property tax assessment board of appeals shall attach the notice to the
1652	1652	23 reassessment notice required by IC 6-1.1-4-22.
1653	1653	24 SECTION 32. IC 6-1.1-12-26, AS AMENDED BY P.L.113-2010,
1654	1654	25 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1655	1655	26 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 26. (a) The owner of real
1656	1656	27 property, or a mobile home which is not assessed as real property,
1657	1657	28 which is equipped with a solar energy heating or cooling system may
1658	1658	29 have deducted annually from the assessed value of the real property or
1659	1659	30 mobile home an amount which is equal to the out-of-pocket
1660	1660	31 expenditures by the owner (or a previous owner) of the real property or
1661	1661	32 mobile home for:
1662	1662	33 (1) the components; and
1663	1663	34 (2) the labor involved in installing the components;
1664	1664	35 that are unique to the system and that are needed to collect, store, or
1665	1665	36 distribute solar energy.
1666	1666	37 (b) The tangible property to which subsection (a) applies includes
1667	1667	38 a solar thermal air system and any solar energy heating or cooling
1668	1668	39 system used for:
1669	1669	40 (1) domestic hot water or space heat, or both, including pool
1670	1670	41 heating; or
1671	1671	42 (2) preheating for an industrial process.
1672	1672	2025 IN 1402—LS 7150/DI 120 38
1673	1673	1 (c) Subsection (a) does not apply to tangible property that would not
1674	1674	2 be subject to assessment and taxation under this article if this section
1675	1675	3 did not apply.
1676	1676	4 (d) For purposes of subsection (a), proof of out-of-pocket
1677	1677	5 expenditures may be demonstrated by invoices or other evidence of a
1678	1678	6 purchase and installation, as determined under rules or guidelines
1679	1679	7 prescribed by the department of local government finance.
1680	1680	8 (e) This section applies only to property taxes imposed for an
1681	1681	9 assessment date before January 1, 2025.
1682	1682	10 (f) This section expires January 1, 2027.
1683	1683	11 SECTION 33. IC 6-1.1-12-26.1, AS ADDED BY P.L.137-2012,
1684	1684	12 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1685	1685	13 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 26.1. (a) This section
1686	1686	14 applies only to a solar power device that is installed after December 31,
1687	1687	15 2011.
1688	1688	16 (b) This section does not apply to a solar power device that is owned
1689	1689	17 or operated by a person that provides electricity at wholesale or retail
1690	1690	18 for consideration other than a person that:
1691	1691	19 (1) participates in a net metering or feed-in-tariff program offered
1692	1692	20 by an electric utility with respect to the solar power device; or
1693	1693	21 (2) is the owner or host of the solar power device site and a person
1694	1694	22 consumes on the site the equivalent amount of electricity that is
1695	1695	23 generated by the solar power device on an annual basis even if the
1696	1696	24 electricity is sold to a public utility, including a solar power
1697	1697	25 device directly serving a public utility's business operations site.
1698	1698	26 (c) For purposes of this section, "solar power device" means a
1699	1699	27 device, such as a solar thermal, a photovoltaic, or other solar energy
1700	1700	28 system, that is designed to use the radiant light or heat from the sun to
1701	1701	29 produce electricity.
1702	1702	30 (d) The owner of real property equipped with a solar power device
1703	1703	31 that is assessed as a real property improvement may have deducted
1704	1704	32 annually from the assessed value of the real property an amount equal
1705	1705	33 to:
1706	1706	34 (1) the assessed value of the real property with the solar power
1707	1707	35 device included; minus
1708	1708	36 (2) the assessed value of the real property without the solar power
1709	1709	37 device.
1710	1710	38 (e) The owner of a solar power device that is assessed as:
1711	1711	39 (1) distributable property under IC 6-1.1-8; or
1712	1712	40 (2) personal property;
1713	1713	41 may have deducted annually the assessed value of the solar power
1714	1714	42 device.
1715	1715	2025 IN 1402—LS 7150/DI 120 39
1716	1716	1 (f) This section applies only to property taxes imposed for an
1717	1717	2 assessment date before January 1, 2025.
1718	1718	3 (g) This section expires January 1, 2027.
1719	1719	4 SECTION 34. IC 6-1.1-12-27.1, AS AMENDED BY P.L.136-2024,
1720	1720	5 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1721	1721	6 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 27.1. (a) Except as
1722	1722	7 provided in sections 36 and 44 of this chapter and subject to section 45
1723	1723	8 of this chapter, a person who desires to claim the deduction provided
1724	1724	9 by section 26 or 26.1 of this chapter must file a certified statement in
1725	1725	10 duplicate, on forms prescribed by the department of local government
1726	1726	11 finance, with the auditor of the county in which the real property,
1727	1727	12 mobile home, manufactured home, or solar power device is subject to
1728	1728	13 assessment. To obtain the deduction for a desired calendar year in
1729	1729	14 which property taxes are first due and payable, the person must
1730	1730	15 complete, date, and file the certified statement with the county auditor
1731	1731	16 on or before January 15 of the calendar year in which the property taxes
1732	1732	17 are first due and payable. The person must:
1733	1733	18 (1) own the real property, mobile home, or manufactured home or
1734	1734	19 own the solar power device;
1735	1735	20 (2) be buying the real property, mobile home, manufactured
1736	1736	21 home, or solar power device under contract; or
1737	1737	22 (3) be leasing the real property from the real property owner and
1738	1738	23 be subject to assessment and property taxation with respect to the
1739	1739	24 solar power device;
1740	1740	25 on the date the statement is filed under this section. The statement may
1741	1741	26 be filed in person or by mail. If mailed, the mailing must be postmarked
1742	1742	27 on or before the last day for filing. On verification of the statement by
1743	1743	28 the assessor of the township in which the real property, mobile home,
1744	1744	29 manufactured home, or solar power device is subject to assessment, or
1745	1745	30 the county assessor if there is no township assessor for the township,
1746	1746	31 the county auditor shall allow the deduction.
1747	1747	32 (b) This section applies only to property taxes imposed for an
1748	1748	33 assessment date before January 1, 2025.
1749	1749	34 (c) This section expires January 1, 2027.
1750	1750	35 SECTION 35. IC 6-1.1-12-28.5, AS AMENDED BY P.L.146-2008,
1751	1751	36 SECTION 112, IS AMENDED TO READ AS FOLLOWS
1752	1752	37 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 28.5. (a)
1753	1753	38 For purposes of this section:
1754	1754	39 (1) "Hazardous waste" has the meaning set forth in
1755	1755	40 IC 13-11-2-99(a) and includes a waste determined to be a
1756	1756	41 hazardous waste under IC 13-22-2-3(b).
1757	1757	42 (2) "Resource recovery system" means tangible property directly
1758	1758	2025 IN 1402—LS 7150/DI 120 40
1759	1759	1 used to dispose of solid waste or hazardous waste by converting
1760	1760	2 it into energy or other useful products.
1761	1761	3 (3) "Solid waste" has the meaning set forth in IC 13-11-2-205(a)
1762	1762	4 but does not include dead animals or any animal solid or
1763	1763	5 semisolid wastes.
1764	1764	6 (b) Except as provided in this section, the owner of a resource
1765	1765	7 recovery system is entitled to an annual deduction in an amount equal
1766	1766	8 to ninety-five percent (95%) of the assessed value of the system if:
1767	1767	9 (1) the system was certified by the department of environmental
1768	1768	10 management for the 1993 assessment year or a prior assessment
1769	1769	11 year; and
1770	1770	12 (2) the owner filed a timely application for the deduction for the
1771	1771	13 1993 assessment year.
1772	1772	14 For purposes of this section, a system includes tangible property that
1773	1773	15 replaced tangible property in the system after the certification by the
1774	1774	16 department of environmental management.
1775	1775	17 (c) The owner of a resource recovery system that is directly used to
1776	1776	18 dispose of hazardous waste is not entitled to the deduction provided by
1777	1777	19 this section for a particular assessment year if during that assessment
1778	1778	20 year the owner:
1779	1779	21 (1) is convicted of any violation under IC 13-7-13-3 (repealed),
1780	1780	22 IC 13-7-13-4 (repealed), or a criminal statute under IC 13; or
1781	1781	23 (2) is subject to an order or a consent decree with respect to
1782	1782	24 property located in Indiana based upon a violation of a federal or
1783	1783	25 state rule, regulation, or statute governing the treatment, storage,
1784	1784	26 or disposal of hazardous wastes that had a major or moderate
1785	1785	27 potential for harm.
1786	1786	28 (d) The certification of a resource recovery system by the
1787	1787	29 department of environmental management for the 1993 assessment
1788	1788	30 year or a prior assessment year is valid through the 1997 assessment
1789	1789	31 year so long as the property is used as a resource recovery system. If
1790	1790	32 the property is no longer used for the purpose for which the property
1791	1791	33 was used when the property was certified, the owner of the property
1792	1792	34 shall notify the county auditor. However, the deduction from the
1793	1793	35 assessed value of the system is:
1794	1794	36 (1) ninety-five percent (95%) for the 1994 assessment year;
1795	1795	37 (2) ninety percent (90%) for the 1995 assessment year;
1796	1796	38 (3) seventy-five percent (75%) for the 1996 assessment year; and
1797	1797	39 (4) sixty percent (60%) for the 1997 assessment year.
1798	1798	40 Notwithstanding this section as it existed before 1995, for the 1994
1799	1799	41 assessment year, the portion of any tangible property comprising a
1800	1800	42 resource recovery system that was assessed and first deducted for the
1801	1801	2025 IN 1402—LS 7150/DI 120 41
1802	1802	1 1994 assessment year may not be deducted for property taxes first due
1803	1803	2 and payable in 1995 or later.
1804	1804	3 (e) In order to qualify for a deduction under this section, the person
1805	1805	4 who desires to claim the deduction must file an application with the
1806	1806	5 county auditor after February 28 and before May 16 of the current
1807	1807	6 assessment year. An application must be filed in each year for which
1808	1808	7 the person desires to obtain the deduction. The application may be filed
1809	1809	8 in person or by mail. If mailed, the mailing must be postmarked on or
1810	1810	9 before the last day for filing. If the application is not filed before the
1811	1811	10 applicable deadline under this subsection, the deduction is waived. The
1812	1812	11 application must be filed on a form prescribed by the department of
1813	1813	12 local government finance. The application for a resource recovery
1814	1814	13 system deduction must include:
1815	1815	14 (1) a certification by the department of environmental
1816	1816	15 management for the 1993 assessment year or a prior assessment
1817	1817	16 year as described in subsection (d); or
1818	1818	17 (2) the certification by the department of environmental
1819	1819	18 management for the 1993 assessment year as described in
1820	1820	19 subsection (g).
1821	1821	20 Beginning with the 1995 assessment year a person must also file an
1822	1822	21 itemized list of all property on which a deduction is claimed. The list
1823	1823	22 must include the date of purchase of the property and the cost to
1824	1824	23 acquire the property.
1825	1825	24 (f) Before July 1, 1995, the department of environmental
1826	1826	25 management shall transfer all the applications, records, or other
1827	1827	26 material the department has with respect to resource recovery system
1828	1828	27 deductions under this section for the 1993 and 1994 assessment years.
1829	1829	28 The township assessor, or the county assessor if there is no township
1830	1830	29 assessor for the township, shall verify each deduction application filed
1831	1831	30 under this section and the county auditor shall determine the deduction.
1832	1832	31 The county auditor shall send to the department of local government
1833	1833	32 finance a copy of each deduction application. The county auditor shall
1834	1834	33 notify the county property tax assessment board of appeals of all
1835	1835	34 deductions allowed under this section. A denial of a deduction claimed
1836	1836	35 under this subsection may be appealed as provided in IC 6-1.1-15. The
1837	1837	36 appeal is limited to a review of a determination made by the township
1838	1838	37 assessor, the county assessor, or the county auditor.
1839	1839	38 (g) Notwithstanding subsection (d), the certification for the 1993
1840	1840	39 assessment year of a resource recovery system in regard to which a
1841	1841	40 political subdivision is liable for the payment of the property taxes
1842	1842	41 remains valid at the ninety-five percent (95%) deduction level allowed
1843	1843	42 before 1994 as long as the political subdivision remains liable for the
1844	1844	2025 IN 1402—LS 7150/DI 120 42
1845	1845	1 payment of the property taxes on the system.
1846	1846	2 (h) This section applies only to property taxes imposed for an
1847	1847	3 assessment date before January 1, 2025.
1848	1848	4 (i) This section expires January 1, 2027.
1849	1849	5 SECTION 36. IC 6-1.1-12-29, AS AMENDED BY P.L.46-2011,
1850	1850	6 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1851	1851	7 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 29. (a) This section does
1852	1852	8 not apply to a wind power device that is owned or operated by:
1853	1853	9 (1) a public utility (as defined in IC 8-1-2-1(a)); or
1854	1854	10 (2) another entity that provides electricity at wholesale or retail
1855	1855	11 for consideration, other than a person who participates in a net
1856	1856	12 metering program offered by an electric utility.
1857	1857	13 This subsection shall be interpreted to clarify and not to change the
1858	1858	14 general assembly's intent with respect to this section.
1859	1859	15 (b) For purposes of this section, "wind power device" means a
1860	1860	16 device, such as a windmill or a wind turbine, that is designed to utilize
1861	1861	17 the kinetic energy of moving air to provide mechanical energy or to
1862	1862	18 produce electricity.
1863	1863	19 (c) The owner of real property, or a mobile home that is not assessed
1864	1864	20 as real property, that is equipped with a wind power device is entitled
1865	1865	21 to an annual property tax deduction. The amount of the deduction
1866	1866	22 equals the remainder of (1) the assessed value of the real property or
1867	1867	23 mobile home with the wind power device included, minus (2) the
1868	1868	24 assessed value of the real property or mobile home without the wind
1869	1869	25 power device.
1870	1870	26 (d) This section applies only to property taxes imposed for an
1871	1871	27 assessment date before January 1, 2025.
1872	1872	28 (e) This section expires January 1, 2027.
1873	1873	29 SECTION 37. IC 6-1.1-12-30, AS AMENDED BY P.L.136-2024,
1874	1874	30 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1875	1875	31 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 30. (a) Except as
1876	1876	32 provided in sections 36 and 44 of this chapter and subject to section 45
1877	1877	33 of this chapter, a person who desires to claim the deduction provided
1878	1878	34 by section 29 of this chapter must file a certified statement in duplicate,
1879	1879	35 on forms prescribed by the department of local government finance,
1880	1880	36 with the auditor of the county in which the real property or mobile
1881	1881	37 home is subject to assessment. To obtain the deduction for a desired
1882	1882	38 calendar year in which property taxes are first due and payable, the
1883	1883	39 person must complete, date, and file the statement with the county
1884	1884	40 auditor on or before January 15 of the calendar year in which the
1885	1885	41 property taxes are first due and payable. The person must:
1886	1886	42 (1) own the real property, mobile home, or manufactured home;
1887	1887	2025 IN 1402—LS 7150/DI 120 43
1888	1888	1 or
1889	1889	2 (2) be buying the real property, mobile home, or manufactured
1890	1890	3 home under contract;
1891	1891	4 on the date the statement is filed under this section. On verification of
1892	1892	5 the statement by the assessor of the township in which the real property
1893	1893	6 or mobile home is subject to assessment, or the county assessor if there
1894	1894	7 is no township assessor for the township, the county auditor shall allow
1895	1895	8 the deduction.
1896	1896	9 (b) This section applies only to property taxes imposed for an
1897	1897	10 assessment date before January 1, 2025.
1898	1898	11 (c) This section expires January 1, 2027.
1899	1899	12 SECTION 38. IC 6-1.1-12-33, AS AMENDED BY P.L.144-2008,
1900	1900	13 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1901	1901	14 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 33. (a) For purposes of
1902	1902	15 this section "hydroelectric power device" means a device which is
1903	1903	16 installed after December 31, 1981, and is designed to utilize the kinetic
1904	1904	17 power of moving water to provide mechanical energy or to produce
1905	1905	18 electricity.
1906	1906	19 (b) The owner of real property, or a mobile home that is not assessed
1907	1907	20 as real property, that is equipped with a hydroelectric power device is
1908	1908	21 annually entitled to a property tax deduction. The amount of the
1909	1909	22 deduction equals the remainder of:
1910	1910	23 (1) the assessed value of the real property or mobile home with
1911	1911	24 the hydroelectric power device; minus
1912	1912	25 (2) the assessed value of the real property or mobile home without
1913	1913	26 the hydroelectric power device.
1914	1914	27 (c) The deduction provided by this section applies only if the
1915	1915	28 property owner:
1916	1916	29 (1) owns the real property or mobile home; or
1917	1917	30 (2) is buying the real property or mobile home under contract;
1918	1918	31 on the date the statement is filed under section 35.5 of this chapter.
1919	1919	32 (d) This section applies only to property taxes imposed for an
1920	1920	33 assessment date before January 1, 2025.
1921	1921	34 (e) This section expires January 1, 2027.
1922	1922	35 SECTION 39. IC 6-1.1-12-34, AS AMENDED BY P.L.144-2008,
1923	1923	36 SECTION 33, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1924	1924	37 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 34. (a) For purposes of
1925	1925	38 this section, "geothermal energy heating or cooling device" means a
1926	1926	39 device that is installed after December 31, 1981, and is designed to
1927	1927	40 utilize the natural heat from the earth to provide hot water, produce
1928	1928	41 electricity, or generate heating or cooling.
1929	1929	42 (b) The owner of real property, or a mobile home that is not assessed
1930	1930	2025 IN 1402—LS 7150/DI 120 44
1931	1931	1 as real property, that is equipped with a geothermal energy heating or
1932	1932	2 cooling device is annually entitled to a property tax deduction. The
1933	1933	3 amount of the deduction equals the remainder of: (1) the assessed value
1934	1934	4 of the real property or mobile home with the geothermal heating or
1935	1935	5 cooling device; minus (2) the assessed value of the real property or
1936	1936	6 mobile home without the geothermal heating or cooling device.
1937	1937	7 (c) The deduction provided by this section applies only if the
1938	1938	8 property owner:
1939	1939	9 (1) owns the real property or mobile home; or
1940	1940	10 (2) is buying the real property or mobile home under contract;
1941	1941	11 on the date the statement is filed under section 35.5 of this chapter.
1942	1942	12 (d) This section applies only to property taxes imposed for an
1943	1943	13 assessment date before January 1, 2025.
1944	1944	14 (e) This section expires January 1, 2027.
1945	1945	15 SECTION 40. IC 6-1.1-12-35.5, AS AMENDED BY P.L.136-2024,
1946	1946	16 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1947	1947	17 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 35.5. (a) Except as
1948	1948	18 provided in section 36 or 44 of this chapter and subject to section 45 of
1949	1949	19 this chapter, a person who desires to claim the deduction provided by
1950	1950	20 section 33 (before its expiration) or 34 (before its expiration) of this
1951	1951	21 chapter must file a certified statement in duplicate, on forms prescribed
1952	1952	22 by the department of local government finance and proof of
1953	1953	23 certification under subsection (b) with the auditor of the county in
1954	1954	24 which the property for which the deduction is claimed is subject to
1955	1955	25 assessment. To obtain the deduction for a desired calendar year in
1956	1956	26 which property taxes are first due and payable, the person must
1957	1957	27 complete, date, and file the certified statement with the county auditor
1958	1958	28 on or before January 15 of the calendar year in which the property taxes
1959	1959	29 are first due and payable. The statement may be filed in person or by
1960	1960	30 mail. If mailed, the mailing must be postmarked on or before the last
1961	1961	31 day for filing. On verification of the statement by the assessor of the
1962	1962	32 township in which the property for which the deduction is claimed is
1963	1963	33 subject to assessment, or the county assessor if there is no township
1964	1964	34 assessor for the township, the county auditor shall allow the deduction.
1965	1965	35 (b) The department of environmental management, upon application
1966	1966	36 by a property owner, shall determine whether a system or device
1967	1967	37 qualifies for a deduction provided by section 33 (before its expiration)
1968	1968	38 or 34 (before its expiration) of this chapter. If the department
1969	1969	39 determines that a system or device qualifies for a deduction, it shall
1970	1970	40 certify the system or device and provide proof of the certification to the
1971	1971	41 property owner. The department shall prescribe the form and manner
1972	1972	42 of the certification process required by this subsection.
1973	1973	2025 IN 1402—LS 7150/DI 120 45
1974	1974	1 (c) If the department of environmental management receives an
1975	1975	2 application for certification, the department shall determine whether
1976	1976	3 the system or device qualifies for a deduction. If the department fails
1977	1977	4 to make a determination under this subsection before December 31 of
1978	1978	5 the year in which the application is received, the system or device is
1979	1979	6 considered certified.
1980	1980	7 (d) A denial of a deduction claimed under section 33 (before its
1981	1981	8 expiration) or 34 (before its expiration) of this chapter may be
1982	1982	9 appealed as provided in IC 6-1.1-15. The appeal is limited to a review
1983	1983	10 of a determination made by the township assessor county property tax
1984	1984	11 assessment board of appeals, or department of local government
1985	1985	12 finance.
1986	1986	13 (e) Notwithstanding any other law, if there is a change in ownership
1987	1987	14 of real property, or a mobile home that is not assessed as real property:
1988	1988	15 (1) that is equipped with a geothermal energy heating or cooling
1989	1989	16 device; and
1990	1990	17 (2) whose previous owner received a property tax deduction under
1991	1991	18 section 34 of this chapter (before its expiration) for the
1992	1992	19 geothermal energy heating or cooling device prior to the change
1993	1993	20 in ownership;
1994	1994	21 the new owner shall be eligible for the property tax deduction following
1995	1995	22 the change in ownership and, in subsequent taxable years, shall not be
1996	1996	23 required to obtain a determination of qualification from the department
1997	1997	24 of environmental management under subsection (b) and shall not be
1998	1998	25 required to file a certified statement of qualification with the county
1999	1999	26 auditor under subsection (a) to remain eligible for the property tax
2000	2000	27 deduction.
2001	2001	28 (f) This section applies only to property taxes imposed for an
2002	2002	29 assessment date before January 1, 2025.
2003	2003	30 (g) This section expires January 1, 2027.
2004	2004	31 SECTION 41. IC 6-1.1-12-36, AS AMENDED BY P.L.214-2019,
2005	2005	32 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2006	2006	33 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 36. (a) A person who
2007	2007	34 receives a deduction provided under section 26 (before its expiration),
2008	2008	35 29 (before its expiration), 33 (before its expiration), 34 (before its
2009	2009	36 expiration), or 38 of this chapter (before its expiration) for a
2010	2010	37 particular year and who remains eligible for the deduction for the
2011	2011	38 following year is not required to file a statement to apply for the
2012	2012	39 deduction for the following year.
2013	2013	40 (b) A person who receives a deduction provided under section 26
2014	2014	41 (before its expiration), 29 (before its expiration), 33 (before its
2015	2015	42 expiration), 34 (before its expiration), or 38 of this chapter (before
2016	2016	2025 IN 1402—LS 7150/DI 120 46
2017	2017	1 its expiration) for a particular year and who becomes ineligible for the
2018	2018	2 deduction for the following year shall notify the auditor of the county
2019	2019	3 in which the real property or mobile home for which the person
2020	2020	4 received the deduction is located of the person's ineligibility before
2021	2021	5 March 31 of the year for which the person becomes ineligible.
2022	2022	6 (c) The auditor of each county shall, in a particular year, apply a
2023	2023	7 deduction provided under section 26 (before its expiration), 29
2024	2024	8 (before its expiration), 33 (before its expiration), 34 (before its
2025	2025	9 expiration), or 38 of this chapter (before its expiration) to each
2026	2026	10 person who received the deduction in the preceding year unless the
2027	2027	11 auditor determines that the person is no longer eligible for the
2028	2028	12 deduction.
2029	2029	13 (d) This section applies only to property taxes imposed for an
2030	2030	14 assessment date before January 1, 2025.
2031	2031	15 (e) This section expires January 1, 2027.
2032	2032	16 SECTION 42. IC 6-1.1-12-37, AS AMENDED BY P.L.156-2024,
2033	2033	17 SECTION 11, AND AS AMENDED BY P.L.136-2024, SECTION 14,
2034	2034	18 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
2035	2035	19 OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
2036	2036	20 AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1,
2037	2037	21 2025 (RETROACTIVE)]: Sec. 37. (a) The following definitions apply
2038	2038	22 throughout this section:
2039	2039	23 (1) "Dwelling" means any of the following:
2040	2040	24 (A) Residential real property improvements that an individual
2041	2041	25 uses as the individual's residence, limited to a single house and
2042	2042	26 a single garage, regardless of whether the single garage is
2043	2043	27 attached to the single house or detached from the single house.
2044	2044	28 (B) A mobile home that is not assessed as real property that an
2045	2045	29 individual uses as the individual's residence.
2046	2046	30 (C) A manufactured home that is not assessed as real property
2047	2047	31 that an individual uses as the individual's residence.
2048	2048	32 (2) "Homestead" means an individual's principal place of
2049	2049	33 residence:
2050	2050	34 (A) that is located in Indiana;
2051	2051	35 (B) that:
2052	2052	36 (i) the individual owns;
2053	2053	37 (ii) the individual is buying under a contract recorded in the
2054	2054	38 county recorder's office, or evidenced by a memorandum of
2055	2055	39 contract recorded in the county recorder's office under
2056	2056	40 IC 36-2-11-20, that provides that the individual is to pay the
2057	2057	41 property taxes on the residence, and that obligates the owner
2058	2058	42 to convey title to the individual upon completion of all of the
2059	2059	2025 IN 1402—LS 7150/DI 120 47
2060	2060	1 individual's contract obligations;
2061	2061	2 (iii) the individual is entitled to occupy as a
2062	2062	3 tenant-stockholder (as defined in 26 U.S.C. 216) of a
2063	2063	4 cooperative housing corporation (as defined in 26 U.S.C.
2064	2064	5 216); or
2065	2065	6 (iv) is a residence described in section 17.9 of this chapter
2066	2066	7 (before its expiration) that is owned by a trust if the
2067	2067	8 individual is an individual described in section 17.9 of this
2068	2068	9 chapter (before its expiration); and
2069	2069	10 (C) that consists of a dwelling and includes up to one (1) acre
2070	2070	11 of land immediately surrounding that dwelling, and any of the
2071	2071	12 following improvements:
2072	2072	13 (i) Any number of decks, patios, gazebos, or pools.
2073	2073	14 (ii) One (1) additional building that is not part of the
2074	2074	15 dwelling if the building is predominantly used for a
2075	2075	16 residential purpose and is not used as an investment property
2076	2076	17 or as a rental property.
2077	2077	18 (iii) One (1) additional residential yard structure other than
2078	2078	19 a deck, patio, gazebo, or pool.
2079	2079	20 Except as provided in subsection (q), (r), the term does not
2080	2080	21 include property owned by a corporation, partnership, limited
2081	2081	22 liability company, or other entity not described in this
2082	2082	23 subdivision.
2083	2083	24 (b) Each year a homestead is eligible for a standard deduction from
2084	2084	25 the assessed value of the homestead for an assessment date. Except as
2085	2085	26 provided in subsection (m), (n), the deduction provided by this section
2086	2086	27 applies to property taxes first due and payable for an assessment date
2087	2087	28 only if an individual has an interest in the homestead described in
2088	2088	29 subsection (a)(2)(B) on:
2089	2089	30 (1) the assessment date; or
2090	2090	31 (2) any date in the same year after an assessment date that a
2091	2091	32 statement is filed under subsection (e) or section 44 of this
2092	2092	33 chapter, if the property consists of real property.
2093	2093	34 If more than one (1) individual or entity qualifies property as a
2094	2094	35 homestead under subsection (a)(2)(B) for an assessment date, only one
2095	2095	36 (1) standard deduction from the assessed value of the homestead may
2096	2096	37 be applied for the assessment date. Subject to subsection (c), the
2097	2097	38 auditor of the county shall record and make the deduction for the
2098	2098	39 individual or entity qualifying for the deduction.
2099	2099	40 (c) Except as provided in section 40.5 of this chapter, the total
2100	2100	41 amount of the deduction that a person may receive under this section
2101	2101	42 for a particular year is: the lesser of:
2102	2102	2025 IN 1402—LS 7150/DI 120 48
2103	2103	1 (1) for assessment dates before January 1, 2025, the lesser of:
2104	2104	2 (A) sixty percent (60%) of the assessed value of the real
2105	2105	3 property, mobile home not assessed as real property, or
2106	2106	4 manufactured home not assessed as real property; or
2107	2107	5 (B) forty-eight thousand dollars ($48,000); or
2108	2108	6 (2) for assessment dates:
2109	2109	7 (A) before January 1, 2023, forty-five thousand dollars
2110	2110	8 ($45,000); or
2111	2111	9 (B) after December 31, 2022, forty-eight thousand dollars
2112	2112	10 ($48,000).
2113	2113	11 (2) for assessment dates after December 31, 2024:
2114	2114	12 (A) in 2025, forty-eight thousand dollars ($48,000);
2115	2115	13 (B) in 2026, forty thousand dollars ($40,000);
2116	2116	14 (C) in 2027, thirty thousand dollars ($30,000);
2117	2117	15 (D) in 2028, twenty thousand dollars ($20,000); and
2118	2118	16 (E) in 2029, ten thousand dollars ($10,000).
2119	2119	17 Beginning with the 2030 assessment date, and each assessment date
2120	2120	18 thereafter, the deduction amount under this section is zero (0).
2121	2121	19 Application of the phase down under this section for assessment
2122	2122	20 dates after December 31, 2024, with regard to mobile homes that
2123	2123	21 are not assessed as real property and manufactured homes not
2124	2124	22 assessed as real property shall be construed and applied in the
2125	2125	23 same manner in terms of timing and consistent with its application
2126	2126	24 for real property.
2127	2127	25 (d) A person who has sold real property, a mobile home not assessed
2128	2128	26 as real property, or a manufactured home not assessed as real property
2129	2129	27 to another person under a contract that provides that the contract buyer
2130	2130	28 is to pay the property taxes on the real property, mobile home, or
2131	2131	29 manufactured home may not claim the deduction provided under this
2132	2132	30 section with respect to that real property, mobile home, or
2133	2133	31 manufactured home.
2134	2134	32 (e) Except as provided in sections 17.8 and 44 of this chapter and
2135	2135	33 subject to section 45 of this chapter, an individual who desires to claim
2136	2136	34 the deduction provided by this section must file a certified statement on
2137	2137	35 forms prescribed by the department of local government finance, with
2138	2138	36 the auditor of the county in which the homestead is located. The
2139	2139	37 statement must include:
2140	2140	38 (1) the parcel number or key number of the property and the name
2141	2141	39 of the city, town, or township in which the property is located;
2142	2142	40 (2) the name of any other location in which the applicant or the
2143	2143	41 applicant's spouse owns, is buying, or has a beneficial interest in
2144	2144	42 residential real property;
2145	2145	2025 IN 1402—LS 7150/DI 120 49
2146	2146	1 (3) the names of:
2147	2147	2 (A) the applicant and the applicant's spouse (if any):
2148	2148	3 (i) as the names appear in the records of the United States
2149	2149	4 Social Security Administration for the purposes of the
2150	2150	5 issuance of a Social Security card and Social Security
2151	2151	6 number; or
2152	2152	7 (ii) that they use as their legal names when they sign their
2153	2153	8 names on legal documents;
2154	2154	9 if the applicant is an individual; or
2155	2155	10 (B) each individual who qualifies property as a homestead
2156	2156	11 under subsection (a)(2)(B) and the individual's spouse (if any):
2157	2157	12 (i) as the names appear in the records of the United States
2158	2158	13 Social Security Administration for the purposes of the
2159	2159	14 issuance of a Social Security card and Social Security
2160	2160	15 number; or
2161	2161	16 (ii) that they use as their legal names when they sign their
2162	2162	17 names on legal documents;
2163	2163	18 if the applicant is not an individual; and
2164	2164	19 (4) either:
2165	2165	20 (A) the last five (5) digits of the applicant's Social Security
2166	2166	21 number and the last five (5) digits of the Social Security
2167	2167	22 number of the applicant's spouse (if any); or
2168	2168	23 (B) if the applicant or the applicant's spouse (if any) does not
2169	2169	24 have a Social Security number, any of the following for that
2170	2170	25 individual:
2171	2171	26 (i) The last five (5) digits of the individual's driver's license
2172	2172	27 number.
2173	2173	28 (ii) The last five (5) digits of the individual's state
2174	2174	29 identification card number.
2175	2175	30 (iii) The last five (5) digits of a preparer tax identification
2176	2176	31 number that is obtained by the individual through the
2177	2177	32 Internal Revenue Service of the United States.
2178	2178	33 (iv) If the individual does not have a driver's license, a state
2179	2179	34 identification card, or an Internal Revenue Service preparer
2180	2180	35 tax identification number, the last five (5) digits of a control
2181	2181	36 number that is on a document issued to the individual by the
2182	2182	37 United States government.
2183	2183	38 If a form or statement provided to the county auditor under this section,
2184	2184	39 IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
2185	2185	40 part or all of the Social Security number of a party or other number
2186	2186	41 described in subdivision (4)(B) of a party, the telephone number and
2187	2187	42 the Social Security number or other number described in subdivision
2188	2188	2025 IN 1402—LS 7150/DI 120 50
2189	2189	1 (4)(B) included are confidential. The statement may be filed in person
2190	2190	2 or by mail. If the statement is mailed, the mailing must be postmarked
2191	2191	3 on or before the last day for filing. The statement applies for that first
2192	2192	4 year and any succeeding year for which the deduction is allowed. To
2193	2193	5 obtain the deduction for a desired calendar year in which property
2194	2194	6 taxes are first due and payable, the statement must be completed and
2195	2195	7 dated in the immediately preceding calendar year and filed with the
2196	2196	8 county auditor on or before January 5 of the calendar year in which
2197	2197	9 the property taxes are first due and payable.
2198	2198	10 (f) To obtain the deduction for a desired calendar year under this
2199	2199	11 section in which property taxes are first due and payable, the
2200	2200	12 individual desiring to claim the deduction must do the following as
2201	2201	13 applicable:
2202	2202	14 (1) Complete, date, and file the certified statement described in
2203	2203	15 subsection (e) on or before January 15 of the calendar year in
2204	2204	16 which the property taxes are first due and payable.
2205	2205	17 (2) Satisfy any recording requirements on or before January 15
2206	2206	18 of the calendar year in which the property taxes are first due and
2207	2207	19 payable for a homestead described in subsection (a)(2).
2208	2208	20 (f) (g) Except as provided in subsection (k), (l), if a person who is
2209	2209	21 receiving, or seeks to receive, the deduction provided by this section in
2210	2210	22 the person's name:
2211	2211	23 (1) changes the use of the individual's property so that part or all
2212	2212	24 of the property no longer qualifies for the deduction under this
2213	2213	25 section; or
2214	2214	26 (2) is not eligible for a deduction under this section because the
2215	2215	27 person is already receiving:
2216	2216	28 (A) a deduction under this section in the person's name as an
2217	2217	29 individual or a spouse; or
2218	2218	30 (B) a deduction under the law of another state that is
2219	2219	31 equivalent to the deduction provided by this section;
2220	2220	32 the person must file a certified statement with the auditor of the county,
2221	2221	33 notifying the auditor of the person's ineligibility, not more than sixty
2222	2222	34 (60) days after the date of the change in eligibility. A person who fails
2223	2223	35 to file the statement required by this subsection may, under
2224	2224	36 IC 6-1.1-36-17, be liable for any additional taxes that would have been
2225	2225	37 due on the property if the person had filed the statement as required by
2226	2226	38 this subsection plus a civil penalty equal to ten percent (10%) of the
2227	2227	39 additional taxes due. The civil penalty imposed under this subsection
2228	2228	40 is in addition to any interest and penalties for a delinquent payment that
2229	2229	41 might otherwise be due. One percent (1%) of the total civil penalty
2230	2230	42 collected under this subsection shall be transferred by the county to the
2231	2231	2025 IN 1402—LS 7150/DI 120 51
2232	2232	1 department of local government finance for use by the department in
2233	2233	2 establishing and maintaining the homestead property data base under
2234	2234	3 subsection (i) (j) and, to the extent there is money remaining, for any
2235	2235	4 other purposes of the department. This amount becomes part of the
2236	2236	5 property tax liability for purposes of this article.
2237	2237	6 (g) (h) The department of local government finance may adopt rules
2238	2238	7 or guidelines concerning the application for a deduction under this
2239	2239	8 section.
2240	2240	9 (h) (i) This subsection does not apply to property in the first year for
2241	2241	10 which a deduction is claimed under this section if the sole reason that
2242	2242	11 a deduction is claimed on other property is that the individual or
2243	2243	12 married couple maintained a principal residence at the other property
2244	2244	13 on the assessment date in the same year in which an application for a
2245	2245	14 deduction is filed under this section or, if the application is for a
2246	2246	15 homestead that is assessed as personal property, on the assessment date
2247	2247	16 in the immediately preceding year and the individual or married couple
2248	2248	17 is moving the individual's or married couple's principal residence to the
2249	2249	18 property that is the subject of the application. Except as provided in
2250	2250	19 subsection (k), (l), the county auditor may not grant an individual or a
2251	2251	20 married couple a deduction under this section if:
2252	2252	21 (1) the individual or married couple, for the same year, claims the
2253	2253	22 deduction on two (2) or more different applications for the
2254	2254	23 deduction; and
2255	2255	24 (2) the applications claim the deduction for different property.
2256	2256	25 (i) (j) The department of local government finance shall provide
2257	2257	26 secure access to county auditors to a homestead property data base that
2258	2258	27 includes access to the homestead owner's name and the numbers
2259	2259	28 required from the homestead owner under subsection (e)(4) for the sole
2260	2260	29 purpose of verifying whether an owner is wrongly claiming a deduction
2261	2261	30 under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
2262	2262	31 IC 6-3.6-5 (after December 31, 2016). (before its expiration). Each
2263	2263	32 county auditor shall submit data on deductions applicable to the current
2264	2264	33 tax year on or before March 15 of each year in a manner prescribed by
2265	2265	34 the department of local government finance.
2266	2266	35 (j) (k) A county auditor may require an individual to provide
2267	2267	36 evidence proving that the individual's residence is the individual's
2268	2268	37 principal place of residence as claimed in the certified statement filed
2269	2269	38 under subsection (e). The county auditor may limit the evidence that an
2270	2270	39 individual is required to submit to a state income tax return, a valid
2271	2271	40 driver's license, or a valid voter registration card showing that the
2272	2272	41 residence for which the deduction is claimed is the individual's
2273	2273	42 principal place of residence. The county auditor may not deny an
2274	2274	2025 IN 1402—LS 7150/DI 120 52
2275	2275	1 application filed under section 44 of this chapter because the applicant
2276	2276	2 does not have a valid driver's license or state identification card with
2277	2277	3 the address of the homestead property. The department of local
2278	2278	4 government finance shall work with county auditors to develop
2279	2279	5 procedures to determine whether a property owner that is claiming a
2280	2280	6 standard deduction or homestead credit is not eligible for the standard
2281	2281	7 deduction or homestead credit because the property owner's principal
2282	2282	8 place of residence is outside Indiana.
2283	2283	9 (k) (l) A county auditor shall grant an individual a deduction under
2284	2284	10 this section regardless of whether the individual and the individual's
2285	2285	11 spouse claim a deduction on two (2) different applications and each
2286	2286	12 application claims a deduction for different property if the property
2287	2287	13 owned by the individual's spouse is located outside Indiana and the
2288	2288	14 individual files an affidavit with the county auditor containing the
2289	2289	15 following information:
2290	2290	16 (1) The names of the county and state in which the individual's
2291	2291	17 spouse claims a deduction substantially similar to the deduction
2292	2292	18 allowed by this section.
2293	2293	19 (2) A statement made under penalty of perjury that the following
2294	2294	20 are true:
2295	2295	21 (A) That the individual and the individual's spouse maintain
2296	2296	22 separate principal places of residence.
2297	2297	23 (B) That neither the individual nor the individual's spouse has
2298	2298	24 an ownership interest in the other's principal place of
2299	2299	25 residence.
2300	2300	26 (C) That neither the individual nor the individual's spouse has,
2301	2301	27 for that same year, claimed a standard or substantially similar
2302	2302	28 deduction for any property other than the property maintained
2303	2303	29 as a principal place of residence by the respective individuals.
2304	2304	30 A county auditor may require an individual or an individual's spouse to
2305	2305	31 provide evidence of the accuracy of the information contained in an
2306	2306	32 affidavit submitted under this subsection. The evidence required of the
2307	2307	33 individual or the individual's spouse may include state income tax
2308	2308	34 returns, excise tax payment information, property tax payment
2309	2309	35 information, driver driver's license information, and voter registration
2310	2310	36 information.
2311	2311	37 (l) (m) If:
2312	2312	38 (1) a property owner files a statement under subsection (e) to
2313	2313	39 claim the deduction provided by this section for a particular
2314	2314	40 property; and
2315	2315	41 (2) the county auditor receiving the filed statement determines
2316	2316	42 that the property owner's property is not eligible for the deduction;
2317	2317	2025 IN 1402—LS 7150/DI 120 53
2318	2318	1 the county auditor shall inform the property owner of the county
2319	2319	2 auditor's determination in writing. If a property owner's property is not
2320	2320	3 eligible for the deduction because the county auditor has determined
2321	2321	4 that the property is not the property owner's principal place of
2322	2322	5 residence, the property owner may appeal the county auditor's
2323	2323	6 determination as provided in IC 6-1.1-15. The county auditor shall
2324	2324	7 inform the property owner of the owner's right to appeal when the
2325	2325	8 county auditor informs the property owner of the county auditor's
2326	2326	9 determination under this subsection.
2327	2327	10 (m) (n) An individual is entitled to the deduction under this section
2328	2328	11 for a homestead for a particular assessment date if:
2329	2329	12 (1) either:
2330	2330	13 (A) the individual's interest in the homestead as described in
2331	2331	14 subsection (a)(2)(B) is conveyed to the individual after the
2332	2332	15 assessment date, but within the calendar year in which the
2333	2333	16 assessment date occurs; or
2334	2334	17 (B) the individual contracts to purchase the homestead after
2335	2335	18 the assessment date, but within the calendar year in which the
2336	2336	19 assessment date occurs;
2337	2337	20 (2) on the assessment date:
2338	2338	21 (A) the property on which the homestead is currently located
2339	2339	22 was vacant land; or
2340	2340	23 (B) the construction of the dwelling that constitutes the
2341	2341	24 homestead was not completed; and
2342	2342	25 (3) either:
2343	2343	26 (A) the individual files the certified statement required by
2344	2344	27 subsection (e); or
2345	2345	28 (B) a sales disclosure form that meets the requirements of
2346	2346	29 section 44 of this chapter is submitted to the county assessor
2347	2347	30 on or before December 31 of the calendar year for the
2348	2348	31 individual's purchase of the homestead.
2349	2349	32 An individual who satisfies the requirements of subdivisions (1)
2350	2350	33 through (3) is entitled to the deduction under this section for the
2351	2351	34 homestead for the assessment date, even if on the assessment date the
2352	2352	35 property on which the homestead is currently located was vacant land
2353	2353	36 or the construction of the dwelling that constitutes the homestead was
2354	2354	37 not completed. The county auditor shall apply the deduction for the
2355	2355	38 assessment date and for the assessment date in any later year in which
2356	2356	39 the homestead remains eligible for the deduction. A homestead that
2357	2357	40 qualifies for the deduction under this section as provided in this
2358	2358	41 subsection is considered a homestead for purposes of section 37.5 of
2359	2359	42 this chapter and IC 6-1.1-20.6.
2360	2360	2025 IN 1402—LS 7150/DI 120 54
2361	2361	1 (n) (o) This subsection applies to an application for the deduction
2362	2362	2 provided by this section that is filed for an assessment date occurring
2363	2363	3 after December 31, 2013. Notwithstanding any other provision of this
2364	2364	4 section, an individual buying a mobile home that is not assessed as real
2365	2365	5 property or a manufactured home that is not assessed as real property
2366	2366	6 under a contract providing that the individual is to pay the property
2367	2367	7 taxes on the mobile home or manufactured home is not entitled to the
2368	2368	8 deduction provided by this section unless the parties to the contract
2369	2369	9 comply with IC 9-17-6-17.
2370	2370	10 (o) (p) This subsection:
2371	2371	11 (1) applies to an application for the deduction provided by this
2372	2372	12 section that is filed for an assessment date occurring after
2373	2373	13 December 31, 2013; and
2374	2374	14 (2) does not apply to an individual described in subsection (n).
2375	2375	15 (o).
2376	2376	16 The owner of a mobile home that is not assessed as real property or a
2377	2377	17 manufactured home that is not assessed as real property must attach a
2378	2378	18 copy of the owner's title to the mobile home or manufactured home to
2379	2379	19 the application for the deduction provided by this section.
2380	2380	20 (p) (q) For assessment dates after 2013, the term "homestead"
2381	2381	21 includes property that is owned by an individual who:
2382	2382	22 (1) is serving on active duty in any branch of the armed forces of
2383	2383	23 the United States;
2384	2384	24 (2) was ordered to transfer to a location outside Indiana; and
2385	2385	25 (3) was otherwise eligible, without regard to this subsection, for
2386	2386	26 the deduction under this section for the property for the
2387	2387	27 assessment date immediately preceding the transfer date specified
2388	2388	28 in the order described in subdivision (2).
2389	2389	29 For property to qualify under this subsection for the deduction provided
2390	2390	30 by this section, the individual described in subdivisions (1) through (3)
2391	2391	31 must submit to the county auditor a copy of the individual's transfer
2392	2392	32 orders or other information sufficient to show that the individual was
2393	2393	33 ordered to transfer to a location outside Indiana. The property continues
2394	2394	34 to qualify for the deduction provided by this section until the individual
2395	2395	35 ceases to be on active duty, the property is sold, or the individual's
2396	2396	36 ownership interest is otherwise terminated, whichever occurs first.
2397	2397	37 Notwithstanding subsection (a)(2), the property remains a homestead
2398	2398	38 regardless of whether the property continues to be the individual's
2399	2399	39 principal place of residence after the individual transfers to a location
2400	2400	40 outside Indiana. The property continues to qualify as a homestead
2401	2401	41 under this subsection if the property is leased while the individual is
2402	2402	42 away from Indiana and is serving on active duty, if the individual has
2403	2403	2025 IN 1402—LS 7150/DI 120 55
2404	2404	1 lived at the property at any time during the past ten (10) years.
2405	2405	2 Otherwise, the property ceases to qualify as a homestead under this
2406	2406	3 subsection if the property is leased while the individual is away from
2407	2407	4 Indiana. Property that qualifies as a homestead under this subsection
2408	2408	5 shall also be construed as a homestead for purposes of section 37.5 of
2409	2409	6 this chapter.
2410	2410	7 (q) (r) As used in this section, "homestead" includes property that
2411	2411	8 satisfies each of the following requirements:
2412	2412	9 (1) The property is located in Indiana and consists of a dwelling
2413	2413	10 and includes up to one (1) acre of land immediately surrounding
2414	2414	11 that dwelling, and any of the following improvements:
2415	2415	12 (A) Any number of decks, patios, gazebos, or pools.
2416	2416	13 (B) One (1) additional building that is not part of the dwelling
2417	2417	14 if the building is predominately used for a residential purpose
2418	2418	15 and is not used as an investment property or as a rental
2419	2419	16 property.
2420	2420	17 (C) One (1) additional residential yard structure other than a
2421	2421	18 deck, patio, gazebo, or pool.
2422	2422	19 (2) The property is the principal place of residence of an
2423	2423	20 individual.
2424	2424	21 (3) The property is owned by an entity that is not described in
2425	2425	22 subsection (a)(2)(B).
2426	2426	23 (4) The individual residing on the property is a shareholder,
2427	2427	24 partner, or member of the entity that owns the property.
2428	2428	25 (5) The property was eligible for the standard deduction under
2429	2429	26 this section on March 1, 2009.
2430	2430	27 SECTION 43. IC 6-1.1-12-37.5, AS AMENDED BY P.L.239-2023,
2431	2431	28 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2432	2432	29 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 37.5. (a) A person who
2433	2433	30 is entitled to a standard deduction from the assessed value of property
2434	2434	31 under section 37 of this chapter is also entitled to receive a
2435	2435	32 supplemental deduction from the assessed value of the homestead to
2436	2436	33 which the standard deduction applies after the application of the
2437	2437	34 standard deduction but before the application of any other deduction,
2438	2438	35 exemption, or credit for which the person is eligible.
2439	2439	36 (b) This subsection applies to taxes first due and payable before
2440	2440	37 January 1, 2026. The amount of the deduction under this section is
2441	2441	38 equal to the sum of the following:
2442	2442	39 (1) For property taxes first due and payable:
2443	2443	40 (A) before January 1, 2024, thirty-five percent (35%);
2444	2444	41 (B) in 2024, forty percent (40%);
2445	2445	42 (C) in 2025, thirty-seven and five-tenths percent (37.5%); and
2446	2446	2025 IN 1402—LS 7150/DI 120 56
2447	2447	1 (D) after December 31, 2025, thirty-five percent (35%);
2448	2448	2 of the assessed value determined under subsection (a) that is not
2449	2449	3 more than six hundred thousand dollars ($600,000).
2450	2450	4 (2) For property taxes first due and payable:
2451	2451	5 (A) before January 1, 2024, twenty-five percent (25%);
2452	2452	6 (B) in 2024, thirty percent (30%);
2453	2453	7 (C) in 2025, twenty-seven and five-tenths percent (27.5%);
2454	2454	8 and
2455	2455	9 (D) after December 31, 2025, twenty-five percent (25%);
2456	2456	10 of the assessed value determined under subsection (a) that is more
2457	2457	11 than six hundred thousand dollars ($600,000).
2458	2458	12 (c) This subsection applies to taxes first due and payable after
2459	2459	13 December 31, 2025. The amount of the deduction under this section
2460	2460	14 is equal to:
2461	2461	15 (1) the assessed value of property reduced by the deduction
2462	2462	16 amount under section 37 of this chapter for the property for
2463	2463	17 the particular tax year; multiplied by
2464	2464	18 (2) the following:
2465	2465	19 (A) Forty-three percent (43%) for taxes first due and
2466	2466	20 payable in 2026.
2467	2467	21 (B) Forty-eight percent (48%) for taxes first due and
2468	2468	22 payable in 2027.
2469	2469	23 (C) Fifty-three percent (53%) for taxes first due and
2470	2470	24 payable in 2028.
2471	2471	25 (D) Fifty-eight percent (58%) for taxes first due and
2472	2472	26 payable in 2029.
2473	2473	27 (E) Sixty-two percent (62%) for taxes first due and payable
2474	2474	28 in 2030.
2475	2475	29 (F) Sixty-six and seven-tenths percent (66.7%) for taxes
2476	2476	30 first due and payable in 2031, and each year thereafter.
2477	2477	31 (c) (d) The auditor of the county shall record and make the
2478	2478	32 deduction for the person qualifying for the deduction.
2479	2479	33 (d) (e) The deduction granted under this section shall not be
2480	2480	34 considered in applying section 40.5 of this chapter to the deductions
2481	2481	35 applicable to property. Section 40.5 of this chapter does not apply to
2482	2482	36 the deduction granted under this section.
2483	2483	37 SECTION 44. IC 6-1.1-12-38, AS AMENDED BY P.L.136-2024,
2484	2484	38 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2485	2485	39 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 38. (a) A person is
2486	2486	40 entitled to a deduction from the assessed value of the person's property
2487	2487	41 in an amount equal to the difference between:
2488	2488	42 (1) the assessed value of the person's property, including the
2489	2489	2025 IN 1402—LS 7150/DI 120 57
2490	2490	1 assessed value of the improvements made to comply with the
2491	2491	2 fertilizer storage rules adopted by the state chemist under
2492	2492	3 IC 15-16-2-44 and the pesticide storage rules adopted by the state
2493	2493	4 chemist under IC 15-16-4-52; minus
2494	2494	5 (2) the assessed value of the person's property, excluding the
2495	2495	6 assessed value of the improvements made to comply with the
2496	2496	7 fertilizer storage rules adopted by the state chemist under
2497	2497	8 IC 15-16-2-44 and the pesticide storage rules adopted by the state
2498	2498	9 chemist under IC 15-16-4-52.
2499	2499	10 (b) To obtain the deduction under this section, a person must file a
2500	2500	11 certified statement in duplicate, on forms prescribed by the department
2501	2501	12 of local government finance, with the auditor of the county in which the
2502	2502	13 property is subject to assessment. In addition to the certified statement,
2503	2503	14 the person must file a certification by the state chemist listing the
2504	2504	15 improvements that were made to comply with the fertilizer storage
2505	2505	16 rules adopted under IC 15-16-2-44 and the pesticide storage rules
2506	2506	17 adopted by the state chemist under IC 15-16-4-52. Subject to section
2507	2507	18 45 of this chapter, the statement must be completed, dated, and filed
2508	2508	19 with the county auditor on or before January 15 of the immediately
2509	2509	20 succeeding calendar year. Upon the verification of the statement and
2510	2510	21 certification by the assessor of the township in which the property is
2511	2511	22 subject to assessment, or the county assessor if there is no township
2512	2512	23 assessor for the township, the county auditor shall allow the deduction.
2513	2513	24 (c) The deduction provided by this section applies only if the
2514	2514	25 person:
2515	2515	26 (1) owns the property; or
2516	2516	27 (2) is buying the property under contract;
2517	2517	28 on the assessment date for which the deduction applies.
2518	2518	29 (d) This section applies only to property taxes imposed for an
2519	2519	30 assessment date before January 1, 2025.
2520	2520	31 (e) This section expires January 1, 2027.
2521	2521	32 SECTION 45. IC 6-1.1-12-40 IS AMENDED TO READ AS
2522	2522	33 FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
2523	2523	34 Sec. 40. (a) This section applies only to real property that is located in
2524	2524	35 an enterprise zone established in a county containing a consolidated
2525	2525	36 city.
2526	2526	37 (b) The owner of real property described in subsection (a) is entitled
2527	2527	38 to a deduction under this section if:
2528	2528	39 (1) an obsolescence depreciation adjustment for either functional
2529	2529	40 obsolescence or economic obsolescence was allowed for the
2530	2530	41 property for property taxes assessed in the year preceding the year
2531	2531	42 in which the owner purchased the property;
2532	2532	2025 IN 1402—LS 7150/DI 120 58
2533	2533	1 (2) the property owner submits an application requesting the
2534	2534	2 deduction to the fiscal body of the county in which the property
2535	2535	3 is located; and
2536	2536	4 (3) the fiscal body of the county approves the deduction.
2537	2537	5 (c) If a county fiscal body approves a deduction under this section,
2538	2538	6 it must notify the county auditor of the approval of the deduction.
2539	2539	7 (d) A deduction may be claimed under this section for not more than
2540	2540	8 four (4) years. The amount of the deduction under this section equals:
2541	2541	9 (1) the amount of the obsolescence depreciation adjustment for
2542	2542	10 either functional obsolescence or economic obsolescence that was
2543	2543	11 allowed for the property for property taxes assessed in the year
2544	2544	12 preceding the year in which the owner purchased the property;
2545	2545	13 multiplied by
2546	2546	14 (2) the following percentages:
2547	2547	15 (A) One hundred percent (100%), for property taxes assessed
2548	2548	16 in the year in which the owner purchased the property.
2549	2549	17 (B) Seventy-five percent (75%), for property taxes assessed in
2550	2550	18 the year after the year in which the owner purchased the
2551	2551	19 property.
2552	2552	20 (C) Fifty percent (50%), for property taxes assessed in the
2553	2553	21 second year after the year in which the owner purchased the
2554	2554	22 property.
2555	2555	23 (D) Twenty-five percent (25%), for property taxes assessed in
2556	2556	24 the third year after the year in which the owner purchased the
2557	2557	25 property.
2558	2558	26 (e) This section applies only to property taxes imposed for an
2559	2559	27 assessment date before January 1, 2025.
2560	2560	28 (f) This section expires January 1, 2027.
2561	2561	29 SECTION 46. IC 6-1.1-12-42, AS AMENDED BY P.L.146-2008,
2562	2562	30 SECTION 119, IS AMENDED TO READ AS FOLLOWS
2563	2563	31 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 42. (a) As
2564	2564	32 used in this section, "assessed value of inventory" means the assessed
2565	2565	33 value determined after the application of any deductions or adjustments
2566	2566	34 that apply by statute or rule to the assessment of inventory, other than
2567	2567	35 the deduction established in subsection (c).
2568	2568	36 (b) As used in this section, "inventory" has the meaning set forth in
2569	2569	37 IC 6-1.1-3-11 (repealed).
2570	2570	38 (c) A taxpayer is entitled to a deduction from assessed value equal
2571	2571	39 to one hundred percent (100%) of the taxpayer's assessed value of
2572	2572	40 inventory for assessments made in 2006 for property taxes first due and
2573	2573	41 payable in 2007.
2574	2574	42 (d) A taxpayer is not required to file an application to qualify for the
2575	2575	2025 IN 1402—LS 7150/DI 120 59
2576	2576	1 deduction established by this section.
2577	2577	2 (e) The department of local government finance shall incorporate
2578	2578	3 the deduction established by this section in the personal property return
2579	2579	4 form to be used each year for filing under IC 6-1.1-3-7 or
2580	2580	5 IC 6-1.1-3-7.5 to permit the taxpayer to enter the deduction on the
2581	2581	6 form. If a taxpayer fails to enter the deduction on the form, the
2582	2582	7 township assessor, or the county assessor if there is no township
2583	2583	8 assessor for the township, shall:
2584	2584	9 (1) determine the amount of the deduction; and
2585	2585	10 (2) within the period established in IC 6-1.1-16-1, issue a notice
2586	2586	11 of assessment to the taxpayer that reflects the application of the
2587	2587	12 deduction to the inventory assessment.
2588	2588	13 (f) The deduction established by this section must be applied to any
2589	2589	14 inventory assessment made by:
2590	2590	15 (1) an assessing official;
2591	2591	16 (2) a county property tax assessment board of appeals; or
2592	2592	17 (3) the department of local government finance.
2593	2593	18 (g) This section applies only to property taxes imposed for an
2594	2594	19 assessment date before January 1, 2025.
2595	2595	20 (h) This section expires January 1, 2027.
2596	2596	21 SECTION 47. IC 6-1.1-12-43, AS AMENDED BY P.L.174-2022,
2597	2597	22 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2598	2598	23 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 43. (a) For purposes of
2599	2599	24 this section:
2600	2600	25 (1) "benefit" refers to a deduction under section 9 (before its
2601	2601	26 expiration), 11 (before its expiration), 13 (before its
2602	2602	27 expiration), 14 (before its expiration), 16 (before its
2603	2603	28 expiration), 17.4 (before its expiration), 26 (before its
2604	2604	29 expiration), 29 (before its expiration), 33 (before its
2605	2605	30 expiration), 34 (before its expiration), 37, or 37.5 of this
2606	2606	31 chapter;
2607	2607	32 (2) "closing agent" means a person that closes a transaction;
2608	2608	33 (3) "customer" means an individual who obtains a loan in a
2609	2609	34 transaction; and
2610	2610	35 (4) "transaction" means a single family residential:
2611	2611	36 (A) first lien purchase money mortgage transaction; or
2612	2612	37 (B) refinancing transaction.
2613	2613	38 (b) Before closing a transaction after December 31, 2004, a closing
2614	2614	39 agent must provide to the customer the form referred to in subsection
2615	2615	40 (c).
2616	2616	41 (c) Before June 1, 2004, the department of local government finance
2617	2617	42 shall prescribe the form to be provided by closing agents to customers
2618	2618	2025 IN 1402—LS 7150/DI 120 60
2619	2619	1 under subsection (b). The department shall make the form available to
2620	2620	2 closing agents, county assessors, county auditors, and county treasurers
2621	2621	3 in hard copy and electronic form. County assessors, county auditors,
2622	2622	4 and county treasurers shall make the form available to the general
2623	2623	5 public. The form must:
2624	2624	6 (1) on one (1) side:
2625	2625	7 (A) list each benefit; and
2626	2626	8 (B) list the eligibility criteria for each benefit;
2627	2627	9 (2) on the other side indicate:
2628	2628	10 (A) each action by and each type of documentation from the
2629	2629	11 customer required to file for each benefit; and
2630	2630	12 (B) sufficient instructions and information to permit a party to
2631	2631	13 terminate a standard deduction under section 37 of this chapter
2632	2632	14 on any property on which the party or the spouse of the party
2633	2633	15 will no longer be eligible for the standard deduction under
2634	2634	16 section 37 of this chapter after the party or the party's spouse
2635	2635	17 begins to reside at the property that is the subject of the
2636	2636	18 closing, including an explanation of the tax consequences and
2637	2637	19 applicable penalties, if a party unlawfully claims a standard
2638	2638	20 deduction under section 37 of this chapter; and
2639	2639	21 (3) be printed in one (1) of two (2) or more colors prescribed by
2640	2640	22 the department of local government finance that distinguish the
2641	2641	23 form from other documents typically used in a closing referred to
2642	2642	24 in subsection (b).
2643	2643	25 (d) A closing agent:
2644	2644	26 (1) may reproduce the form referred to in subsection (c);
2645	2645	27 (2) in reproducing the form, must use a print color prescribed by
2646	2646	28 the department of local government finance; and
2647	2647	29 (3) is not responsible for the content of the form referred to in
2648	2648	30 subsection (c) and shall be held harmless by the department of
2649	2649	31 local government finance from any liability for the content of the
2650	2650	32 form.
2651	2651	33 (e) This subsection applies to a transaction that is closed after
2652	2652	34 December 31, 2009. In addition to providing the customer the form
2653	2653	35 described in subsection (c) before closing the transaction, a closing
2654	2654	36 agent shall do the following as soon as possible after the closing, and
2655	2655	37 within the time prescribed by the department of insurance under
2656	2656	38 IC 27-7-3-15.5:
2657	2657	39 (1) To the extent determinable, input the information described in
2658	2658	40 IC 27-7-3-15.5(c)(2) into the system maintained by the
2659	2659	41 department of insurance under IC 27-7-3-15.5.
2660	2660	42 (2) Submit the form described in IC 27-7-3-15.5(c) to the data
2661	2661	2025 IN 1402—LS 7150/DI 120 61
2662	2662	1 base described in IC 27-7-3-15.5(c)(2)(D).
2663	2663	2 (f) A closing agent to which this section applies shall document the
2664	2664	3 closing agent's compliance with this section with respect to each
2665	2665	4 transaction in the form of verification of compliance signed by the
2666	2666	5 customer.
2667	2667	6 (g) Subject to IC 27-7-3-15.5(d), a closing agent is subject to a civil
2668	2668	7 penalty of twenty-five dollars ($25) for each instance in which the
2669	2669	8 closing agent fails to comply with this section with respect to a
2670	2670	9 customer. The penalty:
2671	2671	10 (1) may be enforced by the state agency that has administrative
2672	2672	11 jurisdiction over the closing agent in the same manner that the
2673	2673	12 agency enforces the payment of fees or other penalties payable to
2674	2674	13 the agency; and
2675	2675	14 (2) shall be paid into:
2676	2676	15 (A) the state general fund, if the closing agent fails to comply
2677	2677	16 with subsection (b); or
2678	2678	17 (B) the home ownership education account established by
2679	2679	18 IC 5-20-1-27, if the closing agent fails to comply with
2680	2680	19 subsection (e) in a transaction that is closed after December
2681	2681	20 31, 2009.
2682	2682	21 (h) A closing agent is not liable for any other damages claimed by
2683	2683	22 a customer because of:
2684	2684	23 (1) the closing agent's mere failure to provide the appropriate
2685	2685	24 document to the customer under subsection (b); or
2686	2686	25 (2) with respect to a transaction that is closed after December 31,
2687	2687	26 2009, the closing agent's failure to input the information or submit
2688	2688	27 the form described in subsection (e).
2689	2689	28 (i) The state agency that has administrative jurisdiction over a
2690	2690	29 closing agent shall:
2691	2691	30 (1) examine the closing agent to determine compliance with this
2692	2692	31 section; and
2693	2693	32 (2) impose and collect penalties under subsection (g).
2694	2694	33 SECTION 48. IC 6-1.1-12-44, AS AMENDED BY P.L.136-2024,
2695	2695	34 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2696	2696	35 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 44. (a) A sales disclosure
2697	2697	36 form under IC 6-1.1-5.5:
2698	2698	37 (1) that is submitted:
2699	2699	38 (A) as a paper form; or
2700	2700	39 (B) electronically;
2701	2701	40 on or before January 15 of a calendar year in which property taxes
2702	2702	41 are first due and payable to the county assessor by or on behalf of
2703	2703	42 the purchaser of a homestead (as defined in section 37 of this
2704	2704	2025 IN 1402—LS 7150/DI 120 62
2705	2705	1 chapter) assessed as real property;
2706	2706	2 (2) that is accurate and complete;
2707	2707	3 (3) that is approved by the county assessor as eligible for filing
2708	2708	4 with the county auditor; and
2709	2709	5 (4) that is filed:
2710	2710	6 (A) as a paper form; or
2711	2711	7 (B) electronically;
2712	2712	8 with the county auditor by or on behalf of the purchaser;
2713	2713	9 constitutes an application for the deductions provided by sections 26
2714	2714	10 (before its expiration), 29 (before its expiration), 33 (before its
2715	2715	11 expiration), 34 (before its expiration), and 37 of this chapter with
2716	2716	12 respect to property taxes first due and payable in the calendar year
2717	2717	13 referred to in subdivision (1). The county auditor may not deny an
2718	2718	14 application for the deductions provided by section 37 of this chapter
2719	2719	15 because the applicant does not have a valid driver's license or state
2720	2720	16 identification card with the address of the homestead property.
2721	2721	17 (b) Except as provided in subsection (c), if:
2722	2722	18 (1) the county auditor receives in a calendar year a sales
2723	2723	19 disclosure form that meets the requirements of subsection (a); and
2724	2724	20 (2) the homestead for which the sales disclosure form is submitted
2725	2725	21 is otherwise eligible for a deduction referred to in subsection (a);
2726	2726	22 the county auditor shall apply the deduction to the homestead for
2727	2727	23 property taxes first due and payable in the calendar year for which the
2728	2728	24 homestead qualifies under subsection (a) and in any later year in which
2729	2729	25 the homestead remains eligible for the deduction.
2730	2730	26 (c) Subsection (b) does not apply if the county auditor, after
2731	2731	27 receiving a sales disclosure form from or on behalf of a purchaser
2732	2732	28 under subsection (a)(4), determines that the homestead is ineligible for
2733	2733	29 the deduction.
2734	2734	30 SECTION 49. IC 6-1.1-12-46, AS AMENDED BY P.L.174-2022,
2735	2735	31 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2736	2736	32 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 46. (a) This section
2737	2737	33 applies to real property for an assessment date in 2011 or a later year
2738	2738	34 if:
2739	2739	35 (1) the real property is not exempt from property taxation for the
2740	2740	36 assessment date;
2741	2741	37 (2) title to the real property is transferred after the assessment date
2742	2742	38 and on or before the December 31 that next succeeds the
2743	2743	39 assessment date;
2744	2744	40 (3) the transferee of the real property applies for an exemption
2745	2745	41 under IC 6-1.1-11 for the next succeeding assessment date; and
2746	2746	42 (4) the county property tax assessment board of appeals
2747	2747	2025 IN 1402—LS 7150/DI 120 63
2748	2748	1 determines that the real property is exempt from property taxation
2749	2749	2 for that next succeeding assessment date.
2750	2750	3 (b) For the assessment date referred to in subsection (a)(1), real
2751	2751	4 property is eligible for any deductions for which the transferor under
2752	2752	5 subsection (a)(2) was eligible for that assessment date under the
2753	2753	6 following:
2754	2754	7 (1) IC 6-1.1-12-1 (before its repeal).
2755	2755	8 (2) IC 6-1.1-12-9 (before its expiration).
2756	2756	9 (3) IC 6-1.1-12-11 (before its expiration).
2757	2757	10 (4) IC 6-1.1-12-13 (before its expiration).
2758	2758	11 (5) IC 6-1.1-12-14 (before its expiration).
2759	2759	12 (6) IC 6-1.1-12-16 (before its expiration).
2760	2760	13 (7) IC 6-1.1-12-17.4 (before its expiration).
2761	2761	14 (8) IC 6-1.1-12-18 (before its expiration).
2762	2762	15 (9) IC 6-1.1-12-22 (before its expiration).
2763	2763	16 (10) IC 6-1.1-12-37.
2764	2764	17 (11) IC 6-1.1-12-37.5.
2765	2765	18 (c) For the payment date applicable to the assessment date referred
2766	2766	19 to in subsection (a)(1), real property is eligible for the credit for
2767	2767	20 excessive residential property taxes under IC 6-1.1-20.6 for which the
2768	2768	21 transferor under subsection (a)(2) would be eligible for that payment
2769	2769	22 date if the transfer had not occurred.
2770	2770	23 SECTION 50. IC 6-1.1-12-47 IS ADDED TO THE INDIANA
2771	2771	24 CODE AS A NEW SECTION TO READ AS FOLLOWS
2772	2772	25 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 47. (a)
2773	2773	26 This section applies to assessment dates beginning after December
2774	2774	27 31, 2024.
2775	2775	28 (b) As used in the section, "eligible property" means all
2776	2776	29 property that is subject to the credit for excessive property taxes
2777	2777	30 under IC 6-1.1-20.6-7.5(a)(2) through IC 6-1.1-20.6-7.5(a)(4).
2778	2778	31 (c) A taxpayer is entitled to a deduction from the assessed value
2779	2779	32 of the taxpayer's eligible property after the application of any
2780	2780	33 other deductions that apply under this article equal to:
2781	2781	34 (1) seven percent (7%) of the taxpayer's assessed value for
2782	2782	35 assessments made in 2025 for property taxes first due and
2783	2783	36 payable in 2026;
2784	2784	37 (2) fourteen percent (14%) of the taxpayer's assessed value
2785	2785	38 for assessments made in 2026 for property taxes first due and
2786	2786	39 payable in 2027;
2787	2787	40 (3) twenty-one percent (21%) of the taxpayer's assessed value
2788	2788	41 for assessments made in 2027 for property taxes first due and
2789	2789	42 payable in 2028;
2790	2790	2025 IN 1402—LS 7150/DI 120 64
2791	2791	1 (4) twenty-six percent (26%) of the taxpayer's assessed value
2792	2792	2 for assessments made in 2028 for property taxes first due and
2793	2793	3 payable in 2029;
2794	2794	4 (5) thirty percent (30%) of the taxpayer's assessed value for
2795	2795	5 assessments made in 2029 for property taxes first due and
2796	2796	6 payable in 2030; and
2797	2797	7 (6) thirty-three and three-tenths percent (33.3%) of the
2798	2798	8 taxpayer's assessed value for assessments made in 2030 for
2799	2799	9 property taxes first due and payable in 2031, and for
2800	2800	10 assessments made in each taxable year thereafter.
2801	2801	11 (d) A taxpayer is not required to file an application to qualify
2802	2802	12 for the deduction established by this section. A county auditor shall
2803	2803	13 apply the deduction to eligible property in the county as set forth
2804	2804	14 in this section.
2805	2805	15 SECTION 51. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.8-2022,
2806	2806	16 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2807	2807	17 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 4.5. (a) An applicant
2808	2808	18 must provide a statement of benefits to the designating body. The
2809	2809	19 applicant must provide the completed statement of benefits form to the
2810	2810	20 designating body before the hearing specified in section 2.5(c) of this
2811	2811	21 chapter or before the installation of the new manufacturing equipment,
2812	2812	22 new farm equipment, new research and development equipment, new
2813	2813	23 logistical distribution equipment, or new information technology
2814	2814	24 equipment for which the person desires to claim a deduction under this
2815	2815	25 chapter. The department of local government finance shall prescribe a
2816	2816	26 form for the statement of benefits. The statement of benefits must
2817	2817	27 include the following information:
2818	2818	28 (1) A description of the new manufacturing equipment, new farm
2819	2819	29 equipment, new research and development equipment, new
2820	2820	30 logistical distribution equipment, or new information technology
2821	2821	31 equipment that the person proposes to acquire. A statement of
2822	2822	32 benefits for new farm equipment must describe each piece of new
2823	2823	33 farm equipment with sufficient detail to afford identification.
2824	2824	34 (2) With respect to:
2825	2825	35 (A) new manufacturing equipment not used to dispose of solid
2826	2826	36 waste or hazardous waste by converting the solid waste or
2827	2827	37 hazardous waste into energy or other useful products; and
2828	2828	38 (B) new farm equipment, new research and development
2829	2829	39 equipment, new logistical distribution equipment, or new
2830	2830	40 information technology equipment;
2831	2831	41 an estimate of the number of individuals who will be employed or
2832	2832	42 whose employment will be retained by the person as a result of
2833	2833	2025 IN 1402—LS 7150/DI 120 65
2834	2834	1 the installation of the new manufacturing equipment, new farm
2835	2835	2 equipment, new research and development equipment, new
2836	2836	3 logistical distribution equipment, or new information technology
2837	2837	4 equipment and an estimate of the annual salaries of these
2838	2838	5 individuals.
2839	2839	6 (3) An estimate of the cost of the new manufacturing equipment,
2840	2840	7 new farm equipment, new research and development equipment,
2841	2841	8 new logistical distribution equipment, or new information
2842	2842	9 technology equipment.
2843	2843	10 (4) With respect to new manufacturing equipment used to dispose
2844	2844	11 of solid waste or hazardous waste by converting the solid waste
2845	2845	12 or hazardous waste into energy or other useful products, an
2846	2846	13 estimate of the amount of solid waste or hazardous waste that will
2847	2847	14 be converted into energy or other useful products by the new
2848	2848	15 manufacturing equipment.
2849	2849	16 The statement of benefits may be incorporated in a designation
2850	2850	17 application. Notwithstanding any other law, a statement of benefits is
2851	2851	18 a public record that may be inspected and copied under IC 5-14-3-3.
2852	2852	19 (b) The designating body must review the statement of benefits
2853	2853	20 required under subsection (a). The designating body shall determine
2854	2854	21 whether an area should be designated an economic revitalization area
2855	2855	22 or whether the deduction shall be allowed, based on (and after it has
2856	2856	23 made) the following findings:
2857	2857	24 (1) Whether the estimate of the cost of the new manufacturing
2858	2858	25 equipment, new farm equipment, new research and development
2859	2859	26 equipment, new logistical distribution equipment, or new
2860	2860	27 information technology equipment is reasonable for equipment of
2861	2861	28 that type.
2862	2862	29 (2) With respect to:
2863	2863	30 (A) new manufacturing equipment not used to dispose of solid
2864	2864	31 waste or hazardous waste by converting the solid waste or
2865	2865	32 hazardous waste into energy or other useful products; and
2866	2866	33 (B) new farm equipment, new research and development
2867	2867	34 equipment, new logistical distribution equipment, or new
2868	2868	35 information technology equipment;
2869	2869	36 whether the estimate of the number of individuals who will be
2870	2870	37 employed or whose employment will be retained can be
2871	2871	38 reasonably expected to result from the installation of the new
2872	2872	39 manufacturing equipment, new farm equipment, new research and
2873	2873	40 development equipment, new logistical distribution equipment, or
2874	2874	41 new information technology equipment.
2875	2875	42 (3) Whether the estimate of the annual salaries of those
2876	2876	2025 IN 1402—LS 7150/DI 120 66
2877	2877	1 individuals who will be employed or whose employment will be
2878	2878	2 retained can be reasonably expected to result from the proposed
2879	2879	3 installation of new manufacturing equipment, new farm
2880	2880	4 equipment, new research and development equipment, new
2881	2881	5 logistical distribution equipment, or new information technology
2882	2882	6 equipment.
2883	2883	7 (4) With respect to new manufacturing equipment used to dispose
2884	2884	8 of solid waste or hazardous waste by converting the solid waste
2885	2885	9 or hazardous waste into energy or other useful products, whether
2886	2886	10 the estimate of the amount of solid waste or hazardous waste that
2887	2887	11 will be converted into energy or other useful products can be
2888	2888	12 reasonably expected to result from the installation of the new
2889	2889	13 manufacturing equipment.
2890	2890	14 (5) Whether any other benefits about which information was
2891	2891	15 requested are benefits that can be reasonably expected to result
2892	2892	16 from the proposed installation of new manufacturing equipment,
2893	2893	17 new farm equipment, new research and development equipment,
2894	2894	18 new logistical distribution equipment, or new information
2895	2895	19 technology equipment.
2896	2896	20 (6) Whether the totality of benefits is sufficient to justify the
2897	2897	21 deduction.
2898	2898	22 The designating body may not designate an area an economic
2899	2899	23 revitalization area or approve the deduction unless it makes the
2900	2900	24 findings required by this subsection in the affirmative.
2901	2901	25 (c) Except as provided in subsection (f), and subject to subsection
2902	2902	26 (g) and section 15 of this chapter, an owner of new manufacturing
2903	2903	27 equipment, new farm equipment, new research and development
2904	2904	28 equipment, new logistical distribution equipment, or new information
2905	2905	29 technology equipment whose statement of benefits is approved is
2906	2906	30 entitled to a deduction from the assessed value of that equipment for
2907	2907	31 the number of years determined by the designating body under section
2908	2908	32 17 or 18 of this chapter. Except as provided in subsection (d) and in
2909	2909	33 section 2(i)(3) of this chapter, and subject to subsection (g) and section
2910	2910	34 15 of this chapter, the amount of the deduction that an owner is entitled
2911	2911	35 to for a particular year equals the product of:
2912	2912	36 (1) the assessed value of the new manufacturing equipment, new
2913	2913	37 farm equipment, new research and development equipment, new
2914	2914	38 logistical distribution equipment, or new information technology
2915	2915	39 equipment in the year of deduction under the abatement schedule
2916	2916	40 established under section 17 or 18 of this chapter; multiplied by
2917	2917	41 (2) the percentage prescribed by the designating body under
2918	2918	42 section 17 or 18 of this chapter.
2919	2919	2025 IN 1402—LS 7150/DI 120 67
2920	2920	1 (d) With respect to new manufacturing equipment and new research
2921	2921	2 and development equipment installed before March 2, 2001, the
2922	2922	3 deduction under this section is the amount that causes the net assessed
2923	2923	4 value of the property after the application of the deduction under this
2924	2924	5 section to equal the net assessed value after the application of the
2925	2925	6 deduction under this section that results from computing:
2926	2926	7 (1) the deduction under this section as in effect on March 1, 2001;
2927	2927	8 and
2928	2928	9 (2) the assessed value of the property under 50 IAC 4.2, as in
2929	2929	10 effect on March 1, 2001, or, in the case of property subject to
2930	2930	11 IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
2931	2931	12 (e) The designating body shall determine the number of years the
2932	2932	13 deduction is allowed under section 17 or 18 of this chapter. Except as
2933	2933	14 provided by section 18 of this chapter, the deduction may not be
2934	2934	15 allowed for more than ten (10) years. This determination shall be made:
2935	2935	16 (1) as part of the resolution adopted under section 2.5 of this
2936	2936	17 chapter; or
2937	2937	18 (2) by resolution adopted within sixty (60) days after receiving a
2938	2938	19 copy of a property owner's certified deduction application from
2939	2939	20 the county auditor. A certified copy of the resolution shall be sent
2940	2940	21 to the county auditor.
2941	2941	22 A determination about the number of years the deduction is allowed
2942	2942	23 that is made under subdivision (1) is final and may not be changed by
2943	2943	24 following the procedure under subdivision (2).
2944	2944	25 (f) The owner of new manufacturing equipment that is directly used
2945	2945	26 to dispose of hazardous waste is not entitled to the deduction provided
2946	2946	27 by this section for a particular assessment year if during that
2947	2947	28 assessment year the owner:
2948	2948	29 (1) is convicted of a criminal violation under IC 13, including
2949	2949	30 IC 13-7-13-3 (repealed) or IC 13-7-13-4 (repealed); or
2950	2950	31 (2) is subject to an order or a consent decree with respect to
2951	2951	32 property located in Indiana based on a violation of a federal or
2952	2952	33 state rule, regulation, or statute governing the treatment, storage,
2953	2953	34 or disposal of hazardous wastes that had a major or moderate
2954	2954	35 potential for harm.
2955	2955	36 (g) For purposes of subsection (c), the assessed value of new
2956	2956	37 manufacturing equipment, new farm equipment, new research and
2957	2957	38 development equipment, new logistical distribution equipment, or new
2958	2958	39 information technology equipment that is part of an owner's assessable
2959	2959	40 depreciable personal property in a single taxing district subject to the
2960	2960	41 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9
2961	2961	42 IC 6-1.1-8-45 is the product of:
2962	2962	2025 IN 1402—LS 7150/DI 120 68
2963	2963	1 (1) the assessed value of the equipment determined without
2964	2964	2 regard to the valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29
2965	2965	3 or 50 IAC 5.1-6-9; IC 6-1.1-8-45; multiplied by
2966	2966	4 (2) the quotient of:
2967	2967	5 (A) the amount of the valuation limitation determined under
2968	2968	6 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9 IC 6-1.1-8-45
2969	2969	7 for all of the owner's depreciable personal property in the
2970	2970	8 taxing district; divided by
2971	2971	9 (B) the total true tax value of all of the owner's depreciable
2972	2972	10 personal property in the taxing district that is subject to the
2973	2973	11 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
2974	2974	12 IAC 5.1-6-9 IC 6-1.1-8-45 determined:
2975	2975	13 (i) under the depreciation schedules in the rules of the
2976	2976	14 department of local government finance before any
2977	2977	15 adjustment for abnormal obsolescence; and
2978	2978	16 (ii) without regard to the valuation limitation in 50
2979	2979	17 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9.
2980	2980	18 IC 6-1.1-8-45.
2981	2981	19 SECTION 52. IC 6-1.1-12.1-5.4, AS AMENDED BY P.L.8-2022,
2982	2982	20 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2983	2983	21 JULY 1, 2025]: Sec. 5.4. (a) A person that desires to obtain the
2984	2984	22 deduction provided by section 4.5 of this chapter must file a certified
2985	2985	23 deduction schedule with the person's personal property return on a form
2986	2986	24 prescribed by the department of local government finance with the
2987	2987	25 township assessor of the township in which the new manufacturing
2988	2988	26 equipment, new farm equipment, new research and development
2989	2989	27 equipment, new logistical distribution equipment, or new information
2990	2990	28 technology equipment is located, or with the county assessor if there is
2991	2991	29 no township assessor for the township. Except as provided in
2992	2992	30 subsection (e), the deduction is applied in the amount claimed in a
2993	2993	31 certified schedule that a person files with:
2994	2994	32 (1) a timely personal property return under IC 6-1.1-3-7(a) or
2995	2995	33 IC 6-1.1-3-7(b); or
2996	2996	34 (2) a timely amended personal property return under
2997	2997	35 IC 6-1.1-3-7.5.
2998	2998	36 The township or county assessor shall forward to the county auditor a
2999	2999	37 copy of each certified deduction schedule filed under this subsection.
3000	3000	38 The township assessor shall forward to the county assessor a copy of
3001	3001	39 each certified deduction schedule filed with the township assessor
3002	3002	40 under this subsection.
3003	3003	41 (b) The deduction schedule required by this section must contain the
3004	3004	42 following information:
3005	3005	2025 IN 1402—LS 7150/DI 120 69
3006	3006	1 (1) The name of the owner of the new manufacturing equipment,
3007	3007	2 new farm equipment, new research and development equipment,
3008	3008	3 new logistical distribution equipment, or new information
3009	3009	4 technology equipment.
3010	3010	5 (2) A description of the new manufacturing equipment, new farm
3011	3011	6 equipment, new research and development equipment, new
3012	3012	7 logistical distribution equipment, or new information technology
3013	3013	8 equipment.
3014	3014	9 (3) The amount of the deduction claimed for the first year of the
3015	3015	10 deduction.
3016	3016	11 (c) If a determination about the number of years the deduction is
3017	3017	12 allowed has not been made in the resolution adopted under section 2.5
3018	3018	13 of this chapter, the county auditor shall notify the designating body, and
3019	3019	14 the designating body shall adopt a resolution under section 4.5(e)(2) of
3020	3020	15 this chapter.
3021	3021	16 (d) A deduction schedule must be filed under this section in the year
3022	3022	17 in which the new manufacturing equipment, new farm equipment, new
3023	3023	18 research and development equipment, new logistical distribution
3024	3024	19 equipment, or new information technology equipment is installed and
3025	3025	20 in each of the immediately succeeding years the deduction is allowed.
3026	3026	21 (e) The township assessor, or the county assessor if there is no
3027	3027	22 township assessor for the township, may:
3028	3028	23 (1) review the deduction schedule; and
3029	3029	24 (2) before the assessment date that next succeeds the assessment
3030	3030	25 date for which the deduction is claimed, deny or alter the amount
3031	3031	26 of the deduction.
3032	3032	27 If the township or county assessor does not deny the deduction, the
3033	3033	28 county auditor shall apply the deduction in the amount claimed in the
3034	3034	29 deduction schedule or in the amount as altered by the township or
3035	3035	30 county assessor. A township or county assessor who denies a deduction
3036	3036	31 under this subsection or alters the amount of the deduction shall notify
3037	3037	32 the person that claimed the deduction and the county auditor of the
3038	3038	33 assessor's action. The county auditor shall notify the designating body
3039	3039	34 and the county property tax assessment board of appeals of all
3040	3040	35 deductions applied under this section.
3041	3041	36 (f) Subject to subsection (j), if the ownership of new
3042	3042	37 manufacturing equipment, new farm equipment, new research and
3043	3043	38 development equipment, new logistical distribution equipment, or new
3044	3044	39 information technology equipment changes, the deduction provided
3045	3045	40 under section 4.5 of this chapter continues to apply to that equipment
3046	3046	41 if the new owner:
3047	3047	42 (1) continues to use the equipment:
3048	3048	2025 IN 1402—LS 7150/DI 120 70
3049	3049	1 (A) in compliance with any standards established under
3050	3050	2 section 2(g) of this chapter; and
3051	3051	3 (B) in the case of new farm equipment, on the same
3052	3052	4 agricultural land for which the deduction applies; and
3053	3053	5 (2) files the deduction schedules required by this section.
3054	3054	6 (g) Subject to subsection (j), the amount of the deduction is the
3055	3055	7 percentage under section 4.5 of this chapter that would have applied if
3056	3056	8 the ownership of the property had not changed multiplied by the
3057	3057	9 assessed value of the equipment for the year the deduction is claimed
3058	3058	10 by the new owner.
3059	3059	11 (h) A person may appeal a determination of the township or county
3060	3060	12 assessor under subsection (e) to deny or alter the amount of the
3061	3061	13 deduction by requesting in writing a preliminary conference with the
3062	3062	14 township or county assessor not more than forty-five (45) days after the
3063	3063	15 township or county assessor gives the person notice of the
3064	3064	16 determination. Except as provided in subsection (i), an appeal initiated
3065	3065	17 under this subsection is processed and determined in the same manner
3066	3066	18 that an appeal is processed and determined under IC 6-1.1-15.
3067	3067	19 (i) The county assessor is recused from any action the county
3068	3068	20 property tax assessment board of appeals takes with respect to an
3069	3069	21 appeal under subsection (h) of a determination by the county assessor.
3070	3070	22 (j) Notwithstanding any other provision of this chapter, a
3071	3071	23 deduction shall not be allowed under this chapter for any business
3072	3072	24 personal property that is totally exempt from property taxation
3073	3073	25 under IC 6-1.1-10.4-4 beginning in 2030.
3074	3074	26 SECTION 53. IC 6-1.1-12.1-6, AS AMENDED BY P.L.181-2016,
3075	3075	27 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3076	3076	28 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 6. (a) A property owner
3077	3077	29 may not receive a deduction under this chapter for repairs or
3078	3078	30 improvements to real property if the property owner receives a
3079	3079	31 deduction under either IC 6-1.1-12-18 (before its expiration) or
3080	3080	32 IC 6-1.1-12-22 (before its expiration) for those same repairs or
3081	3081	33 improvements. This subsection expires January 1, 2033.
3082	3082	34 (b) A property owner may not receive a deduction under this chapter
3083	3083	35 if the property owner receives a deduction under IC 6-1.1-12-28.5
3084	3084	36 (before its expiration) for the same property.
3085	3085	37 SECTION 54. IC 6-1.1-18.5-3, AS AMENDED BY P.L.247-2017,
3086	3086	38 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3087	3087	39 JANUARY 1, 2027]: Sec. 3. (a) A civil taxing unit may not impose an
3088	3088	40 ad valorem property tax levy for an ensuing calendar year that exceeds
3089	3089	41 the amount determined in the last STEP of the following STEPS:
3090	3090	42 STEP ONE: Determine the civil taxing unit's maximum
3091	3091	2025 IN 1402—LS 7150/DI 120 71
3092	3092	1 permissible ad valorem property tax levy for the preceding
3093	3093	2 calendar year.
3094	3094	3 STEP TWO: Multiply the amount determined in STEP ONE by
3095	3095	4 the amount determined in the last STEP of section 2(b) of this
3096	3096	5 chapter.
3097	3097	6 STEP THREE: Determine the lesser of one and fifteen hundredths
3098	3098	7 (1.15) or the quotient (rounded to the nearest ten-thousandth
3099	3099	8 (0.0001)), of the assessed value of all taxable property subject to
3100	3100	9 the civil taxing unit's ad valorem property tax levy for the ensuing
3101	3101	10 calendar year, divided by the assessed value of all taxable
3102	3102	11 property that is subject to the civil taxing unit's ad valorem
3103	3103	12 property tax levy for the ensuing calendar year and that is
3104	3104	13 contained within the geographic area that was subject to the civil
3105	3105	14 taxing unit's ad valorem property tax levy in the preceding
3106	3106	15 calendar year.
3107	3107	16 STEP FOUR: Determine the greater of the amount determined in
3108	3108	17 STEP THREE or one (1).
3109	3109	18 STEP FIVE: Multiply the amount determined in STEP TWO by
3110	3110	19 the amount determined in STEP FOUR.
3111	3111	20 STEP SIX: Add the amount determined under STEP TWO to the
3112	3112	21 amount of an excessive levy appeal granted under section 13 of
3113	3113	22 this chapter for the ensuing calendar year.
3114	3114	23 STEP SEVEN: Determine the greater of STEP FIVE or STEP
3115	3115	24 SIX.
3116	3116	25 (b) This subsection applies only to a civil taxing unit that is located
3117	3117	26 in a county that is covered by IC 6-3.6-11-1. For purposes of subsection
3118	3118	27 (a), revenue under IC 6-3.6-6 that is applied for purposes of a levy
3119	3119	28 freeze shall not be included in the amount determined under STEP
3120	3120	29 ONE of subsection (a) for the civil taxing unit. Notwithstanding any
3121	3121	30 provision in this section, any other section of this chapter, or
3122	3122	31 IC 12-20-21-3.2, and except as provided in subsection (c), if the
3123	3123	32 adopting body has adopted a resolution specifying that any increase in
3124	3124	33 the maximum levy is to be funded using local income tax revenue, the
3125	3125	34 maximum permissible ad valorem property tax levy calculated under
3126	3126	35 this section for the ensuing calendar year for the civil taxing unit is
3127	3127	36 equal to the civil taxing unit's maximum permissible ad valorem
3128	3128	37 property tax levy for the current calendar year. If the adopting body has
3129	3129	38 adopted a resolution specifying that any increase in the maximum levy
3130	3130	39 is not to be funded using local income tax revenue, the maximum
3131	3131	40 permissible ad valorem property tax levy for the civil taxing unit is
3132	3132	41 equal to the civil taxing unit's maximum permissible ad valorem
3133	3133	42 property tax levy calculated under this section for the ensuing calendar
3134	3134	2025 IN 1402—LS 7150/DI 120 72
3135	3135	1 year.
3136	3136	2 (c) In the case of a civil taxing unit that:
3137	3137	3 (1) is partially located in a county that is covered by
3138	3138	4 IC 6-3.6-11-1; and
3139	3139	5 (2) is partially located in a county that is not described in
3140	3140	6 subdivision (1);
3141	3141	7 the department of local government finance shall, notwithstanding
3142	3142	8 subsection (b), adjust the portion of the civil taxing unit's maximum
3143	3143	9 permissible ad valorem property tax levy that is attributable (as
3144	3144	10 determined by the department of local government finance) to the
3145	3145	11 county or counties described in subdivision (2). The department of
3146	3146	12 local government finance shall adjust this portion of the civil taxing
3147	3147	13 unit's maximum permissible ad valorem property tax levy so that,
3148	3148	14 notwithstanding subsection (b), this portion is allowed to increase as
3149	3149	15 otherwise provided in this section. If the department of local
3150	3150	16 government finance increases the civil taxing unit's maximum
3151	3151	17 permissible ad valorem property tax levy under this subsection, any
3152	3152	18 additional property taxes imposed by the civil taxing unit under the
3153	3153	19 adjustment shall be paid only by the taxpayers in the county or counties
3154	3154	20 described in subdivision (2).
3155	3155	21 (b) In the case of a county that was covered by IC 6-3.6-11-1
3156	3156	22 (before its repeal), the maximum permissible property tax levy for
3157	3157	23 the civil taxing unit under STEP ONE of subsection (a) shall be
3158	3158	24 increased to the extent and in the amount that revenue from a levy
3159	3159	25 freeze was applied to adjust the civil taxing unit's maximum
3160	3160	26 permissible property tax levy in the tax year immediately
3161	3161	27 preceding the repeal of IC 6-3.6-11-1. The increase shall apply to
3162	3162	28 each tax year after the repeal. Notwithstanding any other provision
3163	3163	29 of law, if a county has a stabilization fund, the county may use
3164	3164	30 money from that fund for operations of the county in lieu of levy
3165	3165	31 increases pursuant to this subsection. A county to which this
3166	3166	32 subsection applies shall adopt a plan to phase in a multi-year
3167	3167	33 gradual spend down of money in its stabilization fund or other
3168	3168	34 available funds over a specified number of years that allows for the
3169	3169	35 gradual increase of the county's levy in combination with money
3170	3170	36 from its stabilization fund.
3171	3171	37 SECTION 55. IC 6-1.1-18.5-19 IS AMENDED TO READ AS
3172	3172	38 FOLLOWS [EFFECTIVE JANUARY 1, 2027]: Sec. 19. (a) If a
3173	3173	39 township levied an ad valorem property tax levy for a township
3174	3174	40 firefighting fund under IC 36-8-13-4 for calendar year 1989, the
3175	3175	41 maximum permissible ad valorem property tax levy that will apply to
3176	3176	42 the township's firefighting fund under section 3 of this chapter for
3177	3177	2025 IN 1402—LS 7150/DI 120 73
3178	3178	1 calendar year 1990 is the amount determined in STEP FIVE of the
3179	3179	2 following STEPS:
3180	3180	3 STEP ONE: Determine the part of the township's ad valorem
3181	3181	4 property tax levy for calendar year 1989 that was dedicated to the
3182	3182	5 township firefighting fund.
3183	3183	6 STEP TWO: If the township incurred any loans or bonded
3184	3184	7 indebtedness to pay for fire protection or emergency services
3185	3185	8 during the period from January 1, 1987, through December 31,
3186	3186	9 1989 (excluding loans or bonded indebtedness used to purchase
3187	3187	10 firefighting apparatus or equipment or housing), determine the
3188	3188	11 number of calendar years during that period in which the
3189	3189	12 township incurred the loans or bonded indebtedness.
3190	3190	13 STEP THREE: Calculate the quotient of:
3191	3191	14 (A) the total amounts of loans or bonded indebtedness
3192	3192	15 incurred by the township for fire protection and emergency
3193	3193	16 services during the period from January 1, 1987, through
3194	3194	17 December 31, 1989 (excluding loans or bonded indebtedness
3195	3195	18 used to purchase firefighting apparatus or equipment or
3196	3196	19 housing); divided by
3197	3197	20 (B) the number determined in STEP TWO.
3198	3198	21 STEP FOUR: Add the result determined in STEP ONE to the
3199	3199	22 result determined in STEP THREE.
3200	3200	23 STEP FIVE: Calculate the maximum ad valorem property tax levy
3201	3201	24 that would result from making the calculations contained in
3202	3202	25 section 3 of this chapter as those calculations apply to the
3203	3203	26 township, using the result obtained in STEP FOUR for the civil
3204	3204	27 taxing unit's maximum permissible ad valorem property tax levy
3205	3205	28 for the preceding calendar year under section 3(a) or 3(b) of this
3206	3206	29 chapter (as in effect at the time of the calculation), whichever
3207	3207	30 applies to the township.
3208	3208	31 If the amount determined under this subsection is substantially lower
3209	3209	32 than the township's normal expenditure patterns for fire protection and
3210	3210	33 emergency services (excluding the expenditures for the purchase of
3211	3211	34 firefighting apparatus or equipment or housing), the township may
3212	3212	35 appeal to the local government tax control board for an increase in the
3213	3213	36 1990 maximum permissible ad valorem property tax levy for its
3214	3214	37 township firefighting fund. In considering the appeal, the local
3215	3215	38 government tax control board shall consider other sources of revenue
3216	3216	39 used by the township during calendar year 1989 to fund fire protection
3217	3217	40 and emergency services that are also available for such funding in 1990
3218	3218	41 and thereafter and the board shall also consider any other relevant
3219	3219	42 factors.
3220	3220	2025 IN 1402—LS 7150/DI 120 74
3221	3221	1 (b) If a township did not have a township firefighting fund under
3222	3222	2 IC 36-8-13-4 for calendar year 1989, but appropriated funds for fire
3223	3223	3 protection or emergency services for that calendar year, the township's
3224	3224	4 maximum ad valorem property tax levy that will apply to the township's
3225	3225	5 firefighting fund under section 3 of this chapter for calendar year 1990
3226	3226	6 is the amount determined in STEP FIVE of the following STEPS:
3227	3227	7 STEP ONE: Determine the amount that the township appropriated
3228	3228	8 from its general fund for fire protection and emergency services
3229	3229	9 (excluding appropriations for the purchase of firefighting
3230	3230	10 apparatus or equipment or housing).
3231	3231	11 STEP TWO: If the township incurred any loans or bonded
3232	3232	12 indebtedness to pay for fire protection or emergency services
3233	3233	13 during the period from January 1, 1987, through December 31,
3234	3234	14 1989 (excluding loans or bonded indebtedness used to purchase
3235	3235	15 firefighting apparatus or equipment or housing), determine the
3236	3236	16 number of calendar years during that period in which the
3237	3237	17 township incurred the loans or bonded indebtedness.
3238	3238	18 STEP THREE: Calculate the quotient of:
3239	3239	19 (A) the total amounts of loans or bonded indebtedness
3240	3240	20 incurred by the township for fire protection and emergency
3241	3241	21 services during the period from January 1, 1987, through
3242	3242	22 December 31, 1989 (excluding loans or bonded indebtedness
3243	3243	23 used to purchase firefighting apparatus or equipment or
3244	3244	24 housing); divided by
3245	3245	25 (B) the number determined in STEP TWO.
3246	3246	26 STEP FOUR: Add the result of STEP ONE to the result of STEP
3247	3247	27 THREE.
3248	3248	28 STEP FIVE: Calculate the maximum ad valorem property tax levy
3249	3249	29 that would result from making the calculations contained in
3250	3250	30 section 3 of this chapter, as those calculations apply to the
3251	3251	31 township, using the result obtained in STEP FOUR for the civil
3252	3252	32 taxing unit's maximum permissible ad valorem property tax levy
3253	3253	33 for the preceding calendar year under section 3(a) or 3(b) of this
3254	3254	34 chapter (as in effect at the time of the calculation), whichever
3255	3255	35 applies to the township.
3256	3256	36 If the amount determined under this subsection is substantially lower
3257	3257	37 than the township's normal expenditure patterns for fire protection and
3258	3258	38 emergency services (excluding the expenditures for the purchase of
3259	3259	39 firefighting apparatus or equipment or housing), the township may
3260	3260	40 appeal to the local government tax control board for an increase in its
3261	3261	41 1990 maximum permissible levy for its township firefighting fund. In
3262	3262	42 considering the appeal, the local government tax control board shall
3263	3263	2025 IN 1402—LS 7150/DI 120 75
3264	3264	1 consider other sources of revenue used by the township during calendar
3265	3265	2 year 1989 to fund fire protection and emergency services that are also
3266	3266	3 available for such funding in 1990 and thereafter and the board shall
3267	3267	4 also consider any other relevant factors.
3268	3268	5 (c) If for calendar year 1989:
3269	3269	6 (1) a township had a township firefighting fund under
3270	3270	7 IC 36-8-13-4 but did not have an ad valorem property tax levy for
3271	3271	8 that fund; or
3272	3272	9 (2) a township did not have a township firefighting fund and
3273	3273	10 appropriated no money for fire protection or emergency services;
3274	3274	11 the township's maximum permissible ad valorem property tax levy for
3275	3275	12 its township firefighting fund shall be determined under section 7 of
3276	3276	13 this chapter in the calendar year in which the township first establishes
3277	3277	14 such a levy.
3278	3278	15 SECTION 56. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.239-2023,
3279	3279	16 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3280	3280	17 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 8.5. (a) This section
3281	3281	18 applies to an individual who:
3282	3282	19 (1) qualified for a standard deduction granted under
3283	3283	20 IC 6-1.1-12-37 for the individual's homestead property in the
3284	3284	21 immediately preceding calendar year (or was married at the time
3285	3285	22 of death to a deceased spouse who qualified for a standard
3286	3286	23 deduction granted under IC 6-1.1-12-37 for the individual's
3287	3287	24 homestead property in the immediately preceding calendar year);
3288	3288	25 (2) qualifies for a standard deduction granted under
3289	3289	26 IC 6-1.1-12-37 for the same homestead property in the current
3290	3290	27 calendar year;
3291	3291	28 (3) is or will be at least sixty-five (65) years of age on or before
3292	3292	29 December 31 of the calendar year immediately preceding the
3293	3293	30 current calendar year; and
3294	3294	31 (4) had:
3295	3295	32 (A) in the case of an individual who filed a single return,
3296	3296	33 adjusted gross income (as defined in Section 62 of the Internal
3297	3297	34 Revenue Code) not exceeding thirty thousand dollars
3298	3298	35 ($30,000), and beginning for the January 1, 2023, assessment
3299	3299	36 date, and each assessment date thereafter, adjusted annually by
3300	3300	37 an amount equal to the percentage cost of living increase
3301	3301	38 applied for Social Security benefits for the immediately
3302	3302	39 preceding calendar year; or
3303	3303	40 (B) in the case of an individual who filed a joint income tax
3304	3304	41 return with the individual's spouse, combined adjusted gross
3305	3305	42 income (as defined in Section 62 of the Internal Revenue
3306	3306	2025 IN 1402—LS 7150/DI 120 76
3307	3307	1 Code) not exceeding forty thousand dollars ($40,000), and
3308	3308	2 beginning for the January 1, 2023, assessment date, and each
3309	3309	3 assessment date thereafter, adjusted annually by an amount
3310	3310	4 equal to the percentage cost of living increase applied for
3311	3311	5 Social Security benefits for the immediately preceding
3312	3312	6 calendar year;
3313	3313	7 for the calendar year preceding by two (2) years the calendar year
3314	3314	8 in which property taxes are first due and payable.
3315	3315	9 For purposes of applying the annual cost of living increases described
3316	3316	10 in subdivision (4)(A) and (4)(B), the annual percentage increase is
3317	3317	11 applied to the adjusted amount of income from the immediately
3318	3318	12 preceding year.
3319	3319	13 (b) Except as provided in subsection (g), this section does not apply
3320	3320	14 if:
3321	3321	15 (1) for an individual who received a credit under this section
3322	3322	16 before January 1, 2020, the gross assessed value of the homestead
3323	3323	17 on the assessment date for which property taxes are imposed is at
3324	3324	18 least two hundred thousand dollars ($200,000);
3325	3325	19 (2) for an individual who initially applies for a credit under this
3326	3326	20 section after December 31, 2019, and before January 1, 2023, the
3327	3327	21 assessed value of the individual's Indiana real property is at least
3328	3328	22 two hundred thousand dollars ($200,000); or
3329	3329	23 (3) for an individual who initially applies for a credit under this
3330	3330	24 section after December 31, 2022, the assessed value of the
3331	3331	25 individual's Indiana real property is at least two hundred forty
3332	3332	26 thousand dollars ($240,000).
3333	3333	27 (c) An individual is entitled to an additional credit under this section
3334	3334	28 for property taxes first due and payable for a calendar year on a
3335	3335	29 homestead if:
3336	3336	30 (1) the individual and the homestead qualify for the credit under
3337	3337	31 subsection (a) for the calendar year;
3338	3338	32 (2) the homestead is not disqualified for the credit under
3339	3339	33 subsection (b) for the calendar year; and
3340	3340	34 (3) the filing requirements under subsection (e) are met.
3341	3341	35 (d) The amount of the credit is equal to the greater of zero (0) or the
3342	3342	36 result of:
3343	3343	37 (1) the property tax liability first due and payable on the
3344	3344	38 homestead property for the calendar year; minus
3345	3345	39 (2) the result of:
3346	3346	40 (A) the property tax liability first due and payable on the
3347	3347	41 qualified homestead property for the immediately preceding
3348	3348	42 year after the application of the credit granted under this
3349	3349	2025 IN 1402—LS 7150/DI 120 77
3350	3350	1 section for that year; multiplied by
3351	3351	2 (B) one and two hundredths (1.02).
3352	3352	3 However, property tax liability imposed on any improvements to or
3353	3353	4 expansion of the homestead property after the assessment date for
3354	3354	5 which property tax liability described in subdivision (2) was imposed
3355	3355	6 shall not be considered in determining the credit granted under this
3356	3356	7 section in the current calendar year.
3357	3357	8 (e) Applications for a credit under this section shall be filed in the
3358	3358	9 manner provided for an application for a deduction under IC 6-1.1-12-9
3359	3359	10 (before its expiration). However, an individual who remains eligible
3360	3360	11 for the credit in the following year is not required to file a statement to
3361	3361	12 apply for the credit in the following year. An individual who receives
3362	3362	13 a credit under this section in a particular year and who becomes
3363	3363	14 ineligible for the credit in the following year shall notify the auditor of
3364	3364	15 the county in which the homestead is located of the individual's
3365	3365	16 ineligibility not later than sixty (60) days after the individual becomes
3366	3366	17 ineligible.
3367	3367	18 (f) The auditor of each county shall, in a particular year, apply a
3368	3368	19 credit provided under this section to each individual who received the
3369	3369	20 credit in the preceding year unless the auditor determines that the
3370	3370	21 individual is no longer eligible for the credit.
3371	3371	22 (g) For purposes of determining the:
3372	3372	23 (1) assessed value of the homestead on the assessment date for
3373	3373	24 which property taxes are imposed under subsection (b)(1);
3374	3374	25 (2) assessed value of the individual's Indiana real property under
3375	3375	26 subsection (b)(2); or
3376	3376	27 (3) assessed value of the individual's Indiana real property under
3377	3377	28 subsection (b)(3);
3378	3378	29 for an individual who has received a credit under this section in a
3379	3379	30 previous year, increases in assessed value that occur after the later of
3380	3380	31 December 31, 2019, or the first year that the individual has received
3381	3381	32 the credit are not considered unless the increase in assessed value is
3382	3382	33 attributable to substantial renovation or new improvements. Where
3383	3383	34 there is an increase in assessed value for purposes of the credit under
3384	3384	35 this section, the assessor shall provide a report to the county auditor
3385	3385	36 describing the substantial renovation or new improvements, if any, that
3386	3386	37 were made to the property prior to the increase in assessed value.
3387	3387	38 SECTION 57. IC 6-1.1-22-8.1, AS AMENDED BY P.L.159-2020,
3388	3388	39 SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3389	3389	40 JULY 1, 2026]: Sec. 8.1. (a) The county treasurer shall:
3390	3390	41 (1) except as provided in subsection (h), mail to the last known
3391	3391	42 address of each person liable for any property taxes or special
3392	3392	2025 IN 1402—LS 7150/DI 120 78
3393	3393	1 assessment, as shown on the tax duplicate or special assessment
3394	3394	2 records, or to the last known address of the most recent owner
3395	3395	3 shown in the transfer book; and
3396	3396	4 (2) transmit by written, electronic, or other means to a mortgagee
3397	3397	5 maintaining an escrow account for a person who is liable for any
3398	3398	6 property taxes or special assessments, as shown on the tax
3399	3399	7 duplicate or special assessment records;
3400	3400	8 a statement in the form required under subsection (b).
3401	3401	9 (b) The department of local government finance shall prescribe a
3402	3402	10 form, subject to the approval of the state board of accounts, for the
3403	3403	11 statement under subsection (a) that includes at least the following:
3404	3404	12 (1) A statement of the taxpayer's current and delinquent taxes and
3405	3405	13 special assessments.
3406	3406	14 (2) A breakdown showing the total property tax and special
3407	3407	15 assessment liability and the amount of the taxpayer's liability that
3408	3408	16 will be distributed to each taxing unit in the county.
3409	3409	17 (3) An itemized listing for each property tax levy, including:
3410	3410	18 (A) the amount of the tax rate;
3411	3411	19 (B) the entity levying the tax owed; and
3412	3412	20 (C) the dollar amount of the tax owed.
3413	3413	21 (4) Information designed to show the manner in which the taxes
3414	3414	22 and special assessments billed in the tax statement are to be used.
3415	3415	23 (5) Information regarding how a taxpayer can obtain information
3416	3416	24 regarding the taxpayer's notice of assessment or reassessment
3417	3417	25 under IC 6-1.1-4-22.
3418	3418	26 (6) A comparison showing any change in the assessed valuation
3419	3419	27 for the property as compared to the previous year.
3420	3420	28 (7) A comparison showing any change in the property tax and
3421	3421	29 special assessment liability for the property as compared to the
3422	3422	30 previous year. The information required under this subdivision
3423	3423	31 must identify:
3424	3424	32 (A) the amount of the taxpayer's liability distributable to each
3425	3425	33 taxing unit in which the property is located in the current year
3426	3426	34 and in the previous year; and
3427	3427	35 (B) the percentage change, if any, in the amount of the
3428	3428	36 taxpayer's liability distributable to each taxing unit in which
3429	3429	37 the property is located from the previous year to the current
3430	3430	38 year.
3431	3431	39 (8) An explanation of the following:
3432	3432	40 (A) Homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before
3433	3433	41 its expiration), or another law that are available in the taxing
3434	3434	42 district where the property is located.
3435	3435	2025 IN 1402—LS 7150/DI 120 79
3436	3436	1 (B) All property tax deductions that are available in the taxing
3437	3437	2 district where the property is located.
3438	3438	3 (C) The procedure and deadline for filing for any available
3439	3439	4 homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before its
3440	3440	5 expiration), or another law and each deduction.
3441	3441	6 (D) The procedure that a taxpayer must follow to:
3442	3442	7 (i) appeal a current assessment; or
3443	3443	8 (ii) petition for the correction of an error related to the
3444	3444	9 taxpayer's property tax and special assessment liability.
3445	3445	10 (E) The forms that must be filed for an appeal or a petition
3446	3446	11 described in clause (D).
3447	3447	12 (F) The procedure and deadline that a taxpayer must follow
3448	3448	13 and the forms that must be used if a credit or deduction has
3449	3449	14 been granted for the property and the taxpayer is no longer
3450	3450	15 eligible for the credit or deduction.
3451	3451	16 (G) Notice that an appeal described in clause (D) requires
3452	3452	17 evidence relevant to the true tax value of the taxpayer's
3453	3453	18 property as of the assessment date that is the basis for the taxes
3454	3454	19 payable on that property.
3455	3455	20 The department of local government finance shall provide the
3456	3456	21 explanation required by this subdivision to each county treasurer.
3457	3457	22 (9) A checklist that shows:
3458	3458	23 (A) homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before
3459	3459	24 its expiration), or another law and all property tax deductions;
3460	3460	25 and
3461	3461	26 (B) whether each homestead credit and property tax deduction
3462	3462	27 applies in the current statement for the property transmitted
3463	3463	28 under subsection (a).
3464	3464	29 (10) A remittance coupon indicating the payment amounts due at
3465	3465	30 each payment due date and other information determined by the
3466	3466	31 department of local government finance.
3467	3467	32 (c) The county treasurer shall mail or transmit the statement one (1)
3468	3468	33 time each year on or before April 15. Whenever a person's tax liability
3469	3469	34 for a year is due in one (1) installment under IC 6-1.1-7-7 or section 9
3470	3470	35 of this chapter, a statement that is mailed must include the date on
3471	3471	36 which the installment is due and denote the amount of money to be
3472	3472	37 paid for the installment. Whenever a person's tax liability is due in two
3473	3473	38 (2) installments, a statement that is mailed must contain the dates on
3474	3474	39 which the first and second installments are due and denote the amount
3475	3475	40 of money to be paid for each installment. If a statement is returned to
3476	3476	41 the county treasurer as undeliverable and the forwarding order is
3477	3477	42 expired, the county treasurer shall notify the county auditor of this fact.
3478	3478	2025 IN 1402—LS 7150/DI 120 80
3479	3479	1 Upon receipt of the county treasurer's notice, the county auditor may,
3480	3480	2 at the county auditor's discretion, treat the property as not being eligible
3481	3481	3 for any deductions under IC 6-1.1-12 or any homestead credits under
3482	3482	4 IC 6-1.1-20.4 and IC 6-3.6-5 (before its expiration).
3483	3483	5 (d) All payments of property taxes and special assessments shall be
3484	3484	6 made to the county treasurer. The county treasurer, when authorized by
3485	3485	7 the board of county commissioners, may open temporary offices for the
3486	3486	8 collection of taxes in cities and towns in the county other than the
3487	3487	9 county seat.
3488	3488	10 (e) The county treasurer, county auditor, and county assessor shall
3489	3489	11 cooperate to generate the information to be included in the statement
3490	3490	12 under subsection (b).
3491	3491	13 (f) The information to be included in the statement under subsection
3492	3492	14 (b) must be simply and clearly presented and understandable to the
3493	3493	15 average individual.
3494	3494	16 (g) After December 31, 2007, a reference in a law or rule to
3495	3495	17 IC 6-1.1-22-8 (expired January 1, 2008, and repealed) shall be treated
3496	3496	18 as a reference to this section.
3497	3497	19 (h) Transmission of statements and other information under this
3498	3498	20 subsection applies in a county only if the county legislative body adopts
3499	3499	21 an authorizing ordinance. Subject to subsection (i), in a county in
3500	3500	22 which an ordinance is adopted under this subsection for property taxes
3501	3501	23 and special assessments, a person may, in any manner permitted by
3502	3502	24 subsection (n), direct the county treasurer and county auditor to
3503	3503	25 transmit the following to the person by electronic mail:
3504	3504	26 (1) A statement that would otherwise be sent by the county
3505	3505	27 treasurer to the person by regular mail under subsection (a)(1),
3506	3506	28 including a statement that reflects installment payment due dates
3507	3507	29 under section 9.5 or 9.7 of this chapter.
3508	3508	30 (2) A provisional tax statement that would otherwise be sent by
3509	3509	31 the county treasurer to the person by regular mail under
3510	3510	32 IC 6-1.1-22.5-6.
3511	3511	33 (3) A reconciling tax statement that would otherwise be sent by
3512	3512	34 the county treasurer to the person by regular mail under any of the
3513	3513	35 following:
3514	3514	36 (A) Section 9 of this chapter.
3515	3515	37 (B) Section 9.7 of this chapter.
3516	3516	38 (C) IC 6-1.1-22.5-12, including a statement that reflects
3517	3517	39 installment payment due dates under IC 6-1.1-22.5-18.5.
3518	3518	40 (4) Any other information that:
3519	3519	41 (A) concerns the property taxes or special assessments; and
3520	3520	42 (B) would otherwise be sent:
3521	3521	2025 IN 1402—LS 7150/DI 120 81
3522	3522	1 (i) by the county treasurer or the county auditor to the person
3523	3523	2 by regular mail; and
3524	3524	3 (ii) before the last date the property taxes or special
3525	3525	4 assessments may be paid without becoming delinquent.
3526	3526	5 The information listed in this subsection may be transmitted to a person
3527	3527	6 by using electronic mail that provides a secure Internet link to the
3528	3528	7 information.
3529	3529	8 (i) For property with respect to which more than one (1) person is
3530	3530	9 liable for property taxes and special assessments, subsection (h) applies
3531	3531	10 only if all the persons liable for property taxes and special assessments
3532	3532	11 designate the electronic mail address for only one (1) individual
3533	3533	12 authorized to receive the statements and other information referred to
3534	3534	13 in subsection (h).
3535	3535	14 (j) The department of local government finance shall create a form
3536	3536	15 to be used to implement subsection (h). The county treasurer and
3537	3537	16 county auditor shall:
3538	3538	17 (1) make the form created under this subsection available to the
3539	3539	18 public;
3540	3540	19 (2) transmit a statement or other information by electronic mail
3541	3541	20 under subsection (h) to a person who files, on or before March 15,
3542	3542	21 the form created under this subsection:
3543	3543	22 (A) with the county treasurer; or
3544	3544	23 (B) with the county auditor; and
3545	3545	24 (3) publicize the availability of the electronic mail option under
3546	3546	25 this subsection through appropriate media in a manner reasonably
3547	3547	26 designed to reach members of the public.
3548	3548	27 (k) The form referred to in subsection (j) must:
3549	3549	28 (1) explain that a form filed as described in subsection (j)(2)
3550	3550	29 remains in effect until the person files a replacement form to:
3551	3551	30 (A) change the person's electronic mail address; or
3552	3552	31 (B) terminate the electronic mail option under subsection (h);
3553	3553	32 and
3554	3554	33 (2) allow a person to do at least the following with respect to the
3555	3555	34 electronic mail option under subsection (h):
3556	3556	35 (A) Exercise the option.
3557	3557	36 (B) Change the person's electronic mail address.
3558	3558	37 (C) Terminate the option.
3559	3559	38 (D) For a person other than an individual, designate the
3560	3560	39 electronic mail address for only one (1) individual authorized
3561	3561	40 to receive the statements and other information referred to in
3562	3562	41 subsection (h).
3563	3563	42 (E) For property with respect to which more than one (1)
3564	3564	2025 IN 1402—LS 7150/DI 120 82
3565	3565	1 person is liable for property taxes and special assessments,
3566	3566	2 designate the electronic mail address for only one (1)
3567	3567	3 individual authorized to receive the statements and other
3568	3568	4 information referred to in subsection (h).
3569	3569	5 (l) The form created under subsection (j) is considered filed with the
3570	3570	6 county treasurer or the county auditor on the postmark date or on the
3571	3571	7 date it is electronically submitted. If the postmark is missing or
3572	3572	8 illegible, the postmark is considered to be one (1) day before the date
3573	3573	9 of receipt of the form by the county treasurer or the county auditor.
3574	3574	10 (m) The county treasurer shall maintain a record that shows at least
3575	3575	11 the following:
3576	3576	12 (1) Each person to whom a statement or other information is
3577	3577	13 transmitted by electronic mail under this section.
3578	3578	14 (2) The information included in the statement.
3579	3579	15 (3) Whether the county treasurer received a notice that the
3580	3580	16 person's electronic mail was undeliverable.
3581	3581	17 (n) A person may direct the county treasurer and county auditor to
3582	3582	18 transmit information by electronic mail under subsection (h) on a form
3583	3583	19 prescribed by the department submitted:
3584	3584	20 (1) in person;
3585	3585	21 (2) by mail; or
3586	3586	22 (3) in an online format developed by the county and approved by
3587	3587	23 the department.
3588	3588	24 SECTION 58. IC 6-1.1-22.5-8, AS AMENDED BY P.L.93-2024,
3589	3589	25 SECTION 47, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3590	3590	26 JULY 1, 2026]: Sec. 8. (a) Subject to subsection (c), a provisional
3591	3591	27 statement must:
3592	3592	28 (1) be on a form prescribed by the department of local
3593	3593	29 government finance;
3594	3594	30 (2) except as provided in rules adopted under section 20 of this
3595	3595	31 chapter and subsection (b):
3596	3596	32 (A) for property taxes first due and payable after 2010 and
3597	3597	33 billed using a provisional statement under section 6 of this
3598	3598	34 chapter, indicate:
3599	3599	35 (i) that the first installment of the taxpayer's tax liability is
3600	3600	36 an amount equal to fifty percent (50%) of the tax liability
3601	3601	37 that was payable in the same year as the assessment date for
3602	3602	38 the property for which the provisional statement is issued,
3603	3603	39 subject to any adjustments to the tax liability authorized by
3604	3604	40 the department of local government finance under
3605	3605	41 subsection (e) and approved by the county treasurer; and
3606	3606	42 (ii) that the second installment is either the amount specified
3607	3607	2025 IN 1402—LS 7150/DI 120 83
3608	3608	1 in a reconciling statement or, if a reconciling statement is
3609	3609	2 not sent until after the second installment is due, an amount
3610	3610	3 equal to fifty percent (50%) of the tax liability that was
3611	3611	4 payable in the same year as the assessment date for the
3612	3612	5 property for which the provisional statement is issued,
3613	3613	6 subject to any adjustments to the tax liability authorized by
3614	3614	7 the department of local government finance under
3615	3615	8 subsection (e) and approved by the county treasurer; and
3616	3616	9 (B) for property taxes billed using a provisional statement
3617	3617	10 under section 6.5 of this chapter, except as provided in
3618	3618	11 subsection (d), indicate tax liability in an amount determined
3619	3619	12 by the department of local government finance based on:
3620	3620	13 (i) subject to subsection (c), for the cross-county entity, the
3621	3621	14 property tax rate of the cross-county entity for taxes first due
3622	3622	15 and payable in the immediately preceding calendar year; and
3623	3623	16 (ii) for all other taxing units that make up the taxing district
3624	3624	17 or taxing districts that comprise the cross-county area, the
3625	3625	18 property tax rates of the taxing units for taxes first due and
3626	3626	19 payable in the current calendar year;
3627	3627	20 (3) indicate:
3628	3628	21 (A) that the tax liability under the provisional statement is
3629	3629	22 determined as described in subdivision (2); and
3630	3630	23 (B) that property taxes billed on the provisional statement:
3631	3631	24 (i) are due and payable in the same manner as property taxes
3632	3632	25 billed on a tax statement under IC 6-1.1-22-8.1; and
3633	3633	26 (ii) will be credited against a reconciling statement;
3634	3634	27 (4) for property taxes billed using a provisional statement under
3635	3635	28 section 6 of this chapter, include a statement in the following or
3636	3636	29 a substantially similar form, as determined by the department of
3637	3637	30 local government finance:
3638	3638	31 "Under Indiana law, ________ County (insert county) has sent
3639	3639	32 provisional statements. The statement is due to be paid in
3640	3640	33 installments on __________ (insert date) and ________ (insert
3641	3641	34 date). The first installment is equal to fifty percent (50%) of your
3642	3642	35 tax liability for taxes payable in ______ (insert year), subject to
3643	3643	36 adjustment to the tax liability authorized by the department of
3644	3644	37 local government finance and approved by the county treasurer.
3645	3645	38 The second installment is either the amount specified in a
3646	3646	39 reconciling statement that will be sent to you, or (if a reconciling
3647	3647	40 statement is not sent until after the second installment is due) an
3648	3648	41 amount equal to fifty percent (50%) of your tax liability for taxes
3649	3649	42 payable in ______ (insert year), subject to adjustment to the tax
3650	3650	2025 IN 1402—LS 7150/DI 120 84
3651	3651	1 liability authorized by the department of local government finance
3652	3652	2 and approved by the county treasurer. After the abstract of
3653	3653	3 property is complete, you will receive a reconciling statement in
3654	3654	4 the amount of your actual tax liability for taxes payable in ______
3655	3655	5 (insert year) minus the amount you pay under this provisional
3656	3656	6 statement.";
3657	3657	7 (5) for property taxes billed using a provisional statement under
3658	3658	8 section 6.5 of this chapter, include a statement in the following or
3659	3659	9 a substantially similar form, as determined by the department of
3660	3660	10 local government finance:
3661	3661	11 "Under Indiana law, ________ County (insert county) has elected
3662	3662	12 to send provisional statements for the territory of
3663	3663	13 __________________ (insert cross-county entity) located in
3664	3664	14 ________ County (insert county) because the property tax rate for
3665	3665	15 ________________ (insert cross-county entity) was not available
3666	3666	16 in time to prepare final tax statements. The statement is due to be
3667	3667	17 paid in installments on __________ (insert date) and _________
3668	3668	18 (insert date). The statement is based on the property tax rate of
3669	3669	19 _________________ (insert cross-county entity) for taxes first
3670	3670	20 due and payable in _____ (insert immediately preceding calendar
3671	3671	21 year). After the property tax rate of ________________ (insert
3672	3672	22 cross-county entity) is determined, you will receive a reconciling
3673	3673	23 statement in the amount of your actual tax liability for taxes
3674	3674	24 payable in _____ (insert year) minus the amount you pay under
3675	3675	25 this provisional statement.";
3676	3676	26 (6) indicate any adjustment to tax liability under subdivision (2)
3677	3677	27 authorized by the department of local government finance under
3678	3678	28 subsection (e) and approved by the county treasurer for:
3679	3679	29 (A) delinquent:
3680	3680	30 (i) taxes; and
3681	3681	31 (ii) special assessments;
3682	3682	32 (B) penalties; and
3683	3683	33 (C) interest;
3684	3684	34 (7) in the case of a reconciling statement only, include:
3685	3685	35 (A) a checklist that shows:
3686	3686	36 (i) homestead credits under IC 6-1.1-20.4, IC 6-3.6-5
3687	3687	37 (before its expiration), or another law and all property tax
3688	3688	38 deductions; and
3689	3689	39 (ii) whether each homestead credit and property tax
3690	3690	40 deduction were applied in the current provisional statement;
3691	3691	41 (B) an explanation of the procedure and deadline that a
3692	3692	42 taxpayer must follow and the forms that must be used if a
3693	3693	2025 IN 1402—LS 7150/DI 120 85
3694	3694	1 credit or deduction has been granted for the property and the
3695	3695	2 taxpayer is no longer eligible for the credit or deduction; and
3696	3696	3 (C) an explanation of the tax consequences and applicable
3697	3697	4 penalties if a taxpayer unlawfully claims a standard deduction
3698	3698	5 under IC 6-1.1-12-37 on:
3699	3699	6 (i) more than one (1) parcel of property; or
3700	3700	7 (ii) property that is not the taxpayer's principal place of
3701	3701	8 residence or is otherwise not eligible for a standard
3702	3702	9 deduction; and
3703	3703	10 (8) include any other information the county treasurer requires.
3704	3704	11 (b) The county may apply a standard deduction, supplemental
3705	3705	12 standard deduction, or homestead credit calculated by the county's
3706	3706	13 property system on a provisional bill for a qualified property. If a
3707	3707	14 provisional bill has been used for property tax billings for two (2)
3708	3708	15 consecutive years and a property qualifies for a standard deduction,
3709	3709	16 supplemental standard deduction, or homestead credit for the second
3710	3710	17 year a provisional bill is used, the county shall apply the standard
3711	3711	18 deduction, supplemental standard deduction, or homestead credit
3712	3712	19 calculated by the county's property system on the provisional bill.
3713	3713	20 (c) For purposes of this section, property taxes that are:
3714	3714	21 (1) first due and payable in the current calendar year on a
3715	3715	22 provisional statement under section 6 or 6.5 of this chapter; and
3716	3716	23 (2) based on property taxes first due and payable in the
3717	3717	24 immediately preceding calendar year or on a percentage of those
3718	3718	25 property taxes;
3719	3719	26 are determined after excluding from the property taxes first due and
3720	3720	27 payable in the immediately preceding calendar year property taxes
3721	3721	28 imposed by one (1) or more taxing units in which the tangible property
3722	3722	29 is located that are attributable to a levy that no longer applies for
3723	3723	30 property taxes first due and payable in the current calendar year.
3724	3724	31 (d) If there was no property tax rate of the cross-county entity for
3725	3725	32 taxes first due and payable in the immediately preceding calendar year
3726	3726	33 for use under subsection (a)(2)(B), the department of local government
3727	3727	34 finance shall provide an estimated tax rate calculated to approximate
3728	3728	35 the actual tax rate that will apply when the tax rate is finally
3729	3729	36 determined.
3730	3730	37 (e) The department of local government finance shall:
3731	3731	38 (1) authorize the types of adjustments to tax liability that a county
3732	3732	39 treasurer may approve under subsection (a)(2)(A) including:
3733	3733	40 (A) adjustments for any new construction on the property or
3734	3734	41 any damage to the property;
3735	3735	42 (B) any necessary adjustments for credits, deductions, or the
3736	3736	2025 IN 1402—LS 7150/DI 120 86
3737	3737	1 local income tax;
3738	3738	2 (C) adjustments to include current year special assessments or
3739	3739	3 exclude special assessments payable in the year of the
3740	3740	4 assessment date but not payable in the current year;
3741	3741	5 (D) adjustments to include delinquent:
3742	3742	6 (i) taxes; and
3743	3743	7 (ii) special assessments;
3744	3744	8 (E) adjustments to include penalties that are due and owing;
3745	3745	9 and
3746	3746	10 (F) adjustments to include interest that is due and owing; and
3747	3747	11 (2) notify county treasurers in writing of the types of adjustments
3748	3748	12 authorized under subdivision (1).
3749	3749	13 SECTION 59. IC 6-1.1-31-14 IS ADDED TO THE INDIANA
3750	3750	14 CODE AS A NEW SECTION TO READ AS FOLLOWS
3751	3751	15 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 14. The
3752	3752	16 department of local government finance shall develop or amend
3753	3753	17 forms and returns for property taxation of assessable depreciable
3754	3754	18 personal property to reflect the enactment of the exemption for
3755	3755	19 business personal property placed in service after January 1, 2025,
3756	3756	20 under IC 6-1.1-10.4, the enactment of IC 6-1.1-3-29, and the
3757	3757	21 enactment of IC 6-1.1-8-45.
3758	3758	22 SECTION 60. IC 6-1.1-36-17, AS AMENDED BY P.L.85-2017,
3759	3759	23 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3760	3760	24 JULY 1, 2026]: Sec. 17. (a) As used in this section, "nonreverting
3761	3761	25 fund" refers to a nonreverting fund established under subsection (d).
3762	3762	26 (b) If a county auditor makes a determination that property was not
3763	3763	27 eligible for a standard deduction under IC 6-1.1-12-37 in a particular
3764	3764	28 year within three (3) years after the date on which taxes for the
3765	3765	29 particular year are first due, the county auditor may issue a notice of
3766	3766	30 taxes, interest, and penalties due to the owner that improperly received
3767	3767	31 the standard deduction and include a statement that the payment is to
3768	3768	32 be made payable to the county auditor. The additional taxes and civil
3769	3769	33 penalties that result from the removal of the deduction, if any, are
3770	3770	34 imposed for property taxes first due and payable for an assessment date
3771	3771	35 occurring before the earlier of the date of the notation made under
3772	3772	36 subsection (c)(2)(A) or the date a notice of an ineligible homestead lien
3773	3773	37 is recorded under subsection (e)(2) in the office of the county recorder.
3774	3774	38 The notice must require full payment of the amount owed within:
3775	3775	39 (1) one (1) year with no penalties and interest, if:
3776	3776	40 (A) the taxpayer did not comply with the requirement to return
3777	3777	41 the homestead verification form under IC 6-1.1-22-8.1(b)(9)
3778	3778	42 (expired January 1, 2015); and
3779	3779	2025 IN 1402—LS 7150/DI 120 87
3780	3780	1 (B) the county auditor allowed the taxpayer to receive the
3781	3781	2 standard deduction in error; or
3782	3782	3 (2) thirty (30) days, if subdivision (1) does not apply.
3783	3783	4 With respect to property subject to a determination made under this
3784	3784	5 subsection that is owned by a bona fide purchaser without knowledge
3785	3785	6 of the determination, no lien attaches for any additional taxes and civil
3786	3786	7 penalties that result from the removal of the deduction.
3787	3787	8 (c) If a county auditor issues a notice of taxes, interest, and penalties
3788	3788	9 due to an owner under subsection (b), the county auditor shall:
3789	3789	10 (1) notify the county treasurer of the determination; and
3790	3790	11 (2) do one (1) or more of the following:
3791	3791	12 (A) Make a notation on the tax duplicate that the property is
3792	3792	13 ineligible for the standard deduction and indicate the date the
3793	3793	14 notation is made.
3794	3794	15 (B) Record a notice of an ineligible homestead lien under
3795	3795	16 subsection (e)(2).
3796	3796	17 (d) Each county auditor shall establish a nonreverting fund. Upon
3797	3797	18 collection of the adjustment in tax due (and any interest and penalties
3798	3798	19 on that amount) after the termination of a deduction or credit as
3799	3799	20 specified in subsection (b), the county treasurer shall deposit that
3800	3800	21 amount:
3801	3801	22 (1) in the nonreverting fund, if the county contains a consolidated
3802	3802	23 city; or
3803	3803	24 (2) if the county does not contain a consolidated city:
3804	3804	25 (A) in the nonreverting fund, to the extent that the amount
3805	3805	26 collected, after deducting the direct cost of any contract,
3806	3806	27 including contract related expenses, under which the
3807	3807	28 contractor is required to identify homestead deduction
3808	3808	29 eligibility, does not cause the total amount deposited in the
3809	3809	30 nonreverting fund under this subsection for the year during
3810	3810	31 which the amount is collected to exceed one hundred thousand
3811	3811	32 dollars ($100,000); or
3812	3812	33 (B) in the county general fund, to the extent that the amount
3813	3813	34 collected exceeds the amount that may be deposited in the
3814	3814	35 nonreverting fund under clause (A).
3815	3815	36 (e) Any part of the amount due under subsection (b) that is not
3816	3816	37 collected by the due date is subject to collection under one (1) or more
3817	3817	38 of the following:
3818	3818	39 (1) After being placed on the tax duplicate for the affected
3819	3819	40 property and collected in the same manner as other property taxes.
3820	3820	41 (2) Through a notice of an ineligible homestead lien recorded in
3821	3821	42 the county recorder's office without charge.
3822	3822	2025 IN 1402—LS 7150/DI 120 88
3823	3823	1 The adjustment in tax due (and any interest and penalties on that
3824	3824	2 amount) after the termination of a deduction or credit as specified in
3825	3825	3 subsection (b) shall be deposited as specified in subsection (d) only in
3826	3826	4 the first year in which that amount is collected. Upon the collection of
3827	3827	5 the amount due under subsection (b) or the release of a lien recorded
3828	3828	6 under subdivision (2), the county auditor shall submit the appropriate
3829	3829	7 documentation to the county recorder, who shall amend the information
3830	3830	8 recorded under subdivision (2) without charge to indicate that the lien
3831	3831	9 has been released or the amount has been paid in full.
3832	3832	10 (f) The amount to be deposited in the nonreverting fund or the
3833	3833	11 county general fund under subsection (d) includes adjustments in the
3834	3834	12 tax due as a result of the termination of deductions or credits available
3835	3835	13 only for property that satisfies the eligibility for a standard deduction
3836	3836	14 under IC 6-1.1-12-37, including the following:
3837	3837	15 (1) Supplemental deductions under IC 6-1.1-12-37.5.
3838	3838	16 (2) Homestead credits under IC 6-1.1-20.4, IC 6-3.6-5 (before its
3839	3839	17 expiration), IC 6-3.6-11-3 (before its expiration), or any other
3840	3840	18 law.
3841	3841	19 (3) Credit for excessive property taxes under IC 6-1.1-20.6-7.5 or
3842	3842	20 IC 6-1.1-20.6-8.5.
3843	3843	21 Any amount paid that exceeds the amount required to be deposited
3844	3844	22 under subsection (d)(1) or (d)(2) shall be distributed as property taxes.
3845	3845	23 (g) Money deposited under subsection (d)(1) or (d)(2) shall be
3846	3846	24 treated as miscellaneous revenue. Distributions shall be made from the
3847	3847	25 nonreverting fund established under this section upon appropriation by
3848	3848	26 the county fiscal body and shall be made only for the following
3849	3849	27 purposes:
3850	3850	28 (1) Fees and other costs incurred by the county auditor to discover
3851	3851	29 property that is eligible for a standard deduction under
3852	3852	30 IC 6-1.1-12-37.
3853	3853	31 (2) Other expenses of the office of the county auditor.
3854	3854	32 The amount of deposits in a reverting fund, the balance of a
3855	3855	33 nonreverting fund, and expenditures from a reverting fund may not be
3856	3856	34 considered in establishing the budget of the office of the county auditor
3857	3857	35 or in setting property tax levies that will be used in any part to fund the
3858	3858	36 office of the county auditor.
3859	3859	37 SECTION 61. IC 6-1.1-37-4 IS AMENDED TO READ AS
3860	3860	38 FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
3861	3861	39 Sec. 4. A person who makes a false statement, with intent to obtain the
3862	3862	40 property tax deduction provided in either IC 6-1.1-12-13 or
3863	3863	41 IC 6-1.1-12-14 (before their expiration), when he the person is not
3864	3864	42 entitled to the deduction, commits a Class B misdemeanor.
3865	3865	2025 IN 1402—LS 7150/DI 120 89
3866	3866	1 SECTION 62. IC 6-1.1-40-10, AS AMENDED BY
3867	3867	2 P.L.212-2018(ss), SECTION 16, IS AMENDED TO READ AS
3868	3868	3 FOLLOWS [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]:
3869	3869	4 Sec. 10. (a) The deduction under this section applies only to new
3870	3870	5 manufacturing equipment installed before July 1, 2018.
3871	3871	6 (b) Subject to subsection subsections (e) and (f), an owner of new
3872	3872	7 manufacturing equipment whose statement of benefits is approved is
3873	3873	8 entitled to a deduction from the assessed value of that equipment for a
3874	3874	9 period of ten (10) years. Except as provided in subsections (c) and (d),
3875	3875	10 and subject to subsection (e) and section 14 of this chapter, for the first
3876	3876	11 five (5) years, the amount of the deduction for new manufacturing
3877	3877	12 equipment that an owner is entitled to for a particular year equals the
3878	3878	13 assessed value of the new manufacturing equipment. Subject to
3879	3879	14 subsection (e) and section 14 of this chapter, for the sixth through the
3880	3880	15 tenth year, the amount of the deduction equals the product of:
3881	3881	16 (1) the assessed value of the new manufacturing equipment;
3882	3882	17 multiplied by
3883	3883	18 (2) the percentage prescribed in the following table:
3884	3884	19 YEAR OF DEDUCTION PERCENTAGE
3885	3885	20 6th 100%
3886	3886	21 7th 95%
3887	3887	22 8th 80%
3888	3888	23 9th 65%
3889	3889	24 10th 50%
3890	3890	25 11th and thereafter 0%
3891	3891	26 (c) A deduction under this section is not allowed in the first year the
3892	3892	27 deduction is claimed for new manufacturing equipment to the extent
3893	3893	28 that it would cause the assessed value of all of the personal property of
3894	3894	29 the owner in the taxing district in which the equipment is located to be
3895	3895	30 less than the assessed value of all of the personal property of the owner
3896	3896	31 in that taxing district in the immediately preceding year.
3897	3897	32 (d) If a deduction is not fully allowed under subsection (c) in the
3898	3898	33 first year the deduction is claimed, then the percentages specified in
3899	3899	34 subsection (b) apply in the subsequent years to the amount of deduction
3900	3900	35 that was allowed in the first year.
3901	3901	36 (e) For purposes of subsection (b), the assessed value of new
3902	3902	37 manufacturing equipment that is part of an owner's assessable
3903	3903	38 depreciable personal property in a single taxing district subject to the
3904	3904	39 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9
3905	3905	40 IC 6-1.1-8-45 is the product of:
3906	3906	41 (1) the assessed value of the equipment (excluding equipment
3907	3907	42 installed after June 30, 2018) determined without regard to the
3908	3908	2025 IN 1402—LS 7150/DI 120 90
3909	3909	1 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
3910	3910	2 IAC 5.1-6-9; IC 6-1.1-8-45; multiplied by
3911	3911	3 (2) the quotient of:
3912	3912	4 (A) the amount of the valuation limitation determined under
3913	3913	5 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9 IC 6-1.1-8-45
3914	3914	6 for all of the owner's depreciable personal property in the
3915	3915	7 taxing district; divided by
3916	3916	8 (B) the total true tax value of all of the owner's depreciable
3917	3917	9 personal property in the taxing district that is subject to the
3918	3918	10 valuation limitation in 50 IAC 4.2-4-9 IC 6-1.1-3-29 or 50
3919	3919	11 IAC 5.1-6-9 IC 6-1.1-8-45 determined:
3920	3920	12 (i) under the depreciation schedules in the rules of the
3921	3921	13 department of local government finance before any
3922	3922	14 adjustment for abnormal obsolescence; and
3923	3923	15 (ii) without regard to the valuation limitation in 50
3924	3924	16 IAC 4.2-4-9 IC 6-1.1-3-29 or 50 IAC 5.1-6-9.
3925	3925	17 IC 6-1.1-8-45.
3926	3926	18 (f) Notwithstanding any other provision of this chapter, a
3927	3927	19 deduction shall not be allowed under this chapter for any business
3928	3928	20 personal property that is totally exempt from property taxation
3929	3929	21 under IC 6-1.1-10.4-4 beginning in 2030.
3930	3930	22 SECTION 63. IC 6-1.1-42-22, AS AMENDED BY P.L.181-2016,
3931	3931	23 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3932	3932	24 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 22. (a) The designating
3933	3933	25 body shall determine whether to approve a deduction.
3934	3934	26 (b) A designating body may not grant a deduction for a facility
3935	3935	27 described in IC 6-1.1-12.1-3(e).
3936	3936	28 (c) A property owner may not receive a deduction under this chapter
3937	3937	29 for repairs or improvements to real property if the owner receives a
3938	3938	30 deduction under either IC 6-1.1-12.1, IC 6-1.1-12-18 (before its
3939	3939	31 expiration), IC 6-1.1-12-22 (before its expiration), or IC 6-1.1-12-28.5
3940	3940	32 (before its expiration) for the same property.
3941	3941	33 (d) A designating body may approve a deduction only if the
3942	3942	34 following findings are made in the affirmative:
3943	3943	35 (1) The applicant:
3944	3944	36 (A) has never had an ownership interest in an entity that
3945	3945	37 contributed; and
3946	3946	38 (B) has not contributed;
3947	3947	39 a contaminant (as defined in IC 13-11-2-42) that is the subject of
3948	3948	40 the voluntary remediation, as determined under the written
3949	3949	41 standards adopted by the department of environmental
3950	3950	42 management.
3951	3951	2025 IN 1402—LS 7150/DI 120 91
3952	3952	1 (2) The proposed improvement or property will be located in a
3953	3953	2 zone.
3954	3954	3 (3) The estimate of the value of the remediation and
3955	3955	4 redevelopment is reasonable for projects of that nature.
3956	3956	5 (4) The estimate of the number of individuals who will be
3957	3957	6 employed or whose employment will be retained can be
3958	3958	7 reasonably expected to result from the proposed described
3959	3959	8 remediation and redevelopment.
3960	3960	9 (5) The estimate of the annual salaries of those individuals who
3961	3961	10 will be employed or whose employment will be retained can be
3962	3962	11 reasonably expected to result from the proposed described
3963	3963	12 remediation and redevelopment.
3964	3964	13 (6) Any other benefits about which information was requested are
3965	3965	14 benefits that can be reasonably expected to result from the
3966	3966	15 proposed described remediation and redevelopment.
3967	3967	16 (7) The totality of benefits is sufficient to justify the deduction.
3968	3968	17 SECTION 64. IC 6-1.1-42-28, AS AMENDED BY P.L.86-2018,
3969	3969	18 SECTION 66, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3970	3970	19 JULY 1, 2025]: Sec. 28. (a) Subject to this section and section 34 of
3971	3971	20 this chapter, the amount of the deduction which the property owner is
3972	3972	21 entitled to receive under this chapter for a particular year equals the
3973	3973	22 product of:
3974	3974	23 (1) the increase in the assessed value resulting from the
3975	3975	24 remediation and redevelopment in the zone or the location of
3976	3976	25 personal property in the zone, or both; multiplied by
3977	3977	26 (2) the percentage determined under subsection (b).
3978	3978	27 (b) The percentage to be used in calculating the deduction under
3979	3979	28 subsection (a) is as follows:
3980	3980	29 (1) For deductions allowed over a three (3) year period:
3981	3981	30 YEAR OF DEDUCTION PERCENTAGE
3982	3982	31 1st 100%
3983	3983	32 2nd 66%
3984	3984	33 3rd 33%
3985	3985	34 (2) For deductions allowed over a six (6) year period:
3986	3986	35 YEAR OF DEDUCTION PERCENTAGE
3987	3987	36 1st 100%
3988	3988	37 2nd 85%
3989	3989	38 3rd 66%
3990	3990	39 4th 50%
3991	3991	40 5th 34%
3992	3992	41 6th 17%
3993	3993	42 (3) For deductions allowed over a ten (10) year period:
3994	3994	2025 IN 1402—LS 7150/DI 120 92
3995	3995	1 YEAR OF DEDUCTION PERCENTAGE
3996	3996	2 1st 100%
3997	3997	3 2nd 95%
3998	3998	4 3rd 80%
3999	3999	5 4th 65%
4000	4000	6 5th 50%
4001	4001	7 6th 40%
4002	4002	8 7th 30%
4003	4003	9 8th 20%
4004	4004	10 9th 10%
4005	4005	11 10th 5%
4006	4006	12 (c) The amount of the deduction determined under subsection (a)
4007	4007	13 shall be adjusted in accordance with this subsection in the following
4008	4008	14 circumstances:
4009	4009	15 (1) If a reassessment under a county's reassessment plan prepared
4010	4010	16 under IC 6-1.1-4-4.2 occurs within the particular period of the
4011	4011	17 deduction, the amount determined under subsection (a)(1) shall
4012	4012	18 be adjusted to reflect the percentage increase or decrease in
4013	4013	19 assessed valuation that resulted from the reassessment.
4014	4014	20 (2) If an appeal of an assessment is approved that results in a
4015	4015	21 reduction of the assessed value of the redeveloped or rehabilitated
4016	4016	22 property, the amount of any deduction shall be adjusted to reflect
4017	4017	23 the percentage decrease that resulted from the appeal.
4018	4018	24 (3) The amount of the deduction may not exceed the limitations
4019	4019	25 imposed by the designating body under section 23 of this chapter.
4020	4020	26 (4) The amount of the deduction must be proportionally reduced
4021	4021	27 by the proportionate ownership of the property by a person that:
4022	4022	28 (A) has an ownership interest in an entity that contributed; or
4023	4023	29 (B) has contributed;
4024	4024	30 a contaminant (as defined in IC 13-11-2-42) that is the subject of
4025	4025	31 the voluntary remediation, as determined under the written
4026	4026	32 standards adopted by the department of environmental
4027	4027	33 management.
4028	4028	34 The department of local government finance may adopt rules under
4029	4029	35 IC 4-22-2 to implement this subsection.
4030	4030	36 (d) Notwithstanding any other provision of this chapter, a
4031	4031	37 deduction shall not be allowed under this chapter for any business
4032	4032	38 personal property that is totally exempt from property taxation
4033	4033	39 under IC 6-1.1-10.4-4 beginning in 2030.
4034	4034	40 SECTION 65. IC 6-1.1-45-12, AS AMENDED BY P.L.238-2017,
4035	4035	41 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4036	4036	42 JULY 1, 2025]: Sec. 12. (a) Subject to subsection subsections (b) and
4037	4037	2025 IN 1402—LS 7150/DI 120 93
4038	4038	1 (c), a taxpayer may claim a deduction under this chapter for property
4039	4039	2 other than property located in a consolidated city for an assessment
4040	4040	3 date that occurs after:
4041	4041	4 (1) the expiration of the enterprise zone in which the enterprise
4042	4042	5 zone property for which the taxpayer made the qualified
4043	4043	6 investment is located; or
4044	4044	7 (2) the expiration of the entrepreneur and enterprise district in
4045	4045	8 which the entrepreneur and enterprise district property for which
4046	4046	9 the taxpayer made the qualified investment under IC 5-28-15.5 is
4047	4047	10 located.
4048	4048	11 (b) A taxpayer may not claim a deduction under this chapter for
4049	4049	12 more than ten (10) years.
4050	4050	13 (c) Notwithstanding any other provision of this chapter, a
4051	4051	14 deduction shall not be allowed under this chapter for any business
4052	4052	15 personal property that is totally exempt from property taxation
4053	4053	16 under IC 6-1.1-10.4-4 beginning in 2030.
4054	4054	17 SECTION 66. IC 6-1.1-51 IS ADDED TO THE INDIANA CODE
4055	4055	18 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
4056	4056	19 JANUARY 1, 2026]:
4057	4057	20 Chapter 51. Local Property Tax Credits
4058	4058	21 Sec. 1. (a) An individual is entitled to a credit against local
4059	4059	22 property taxes imposed on the individual's real property, or mobile
4060	4060	23 home or manufactured home within the county, if:
4061	4061	24 (1) the individual is at least sixty-five (65) years of age on or
4062	4062	25 before December 31 of the calendar year preceding the year
4063	4063	26 in which the credit is claimed;
4064	4064	27 (2) the individual has owned the real property, mobile home,
4065	4065	28 or manufactured home for at least one (1) year before
4066	4066	29 claiming the credit; or the individual has been buying the real
4067	4067	30 property, mobile home, or manufactured home under a
4068	4068	31 contract that provides that the individual is to pay the
4069	4069	32 property taxes on the real property, mobile home, or
4070	4070	33 manufactured home for at least one (1) year before claiming
4071	4071	34 the credit, and the contract or a memorandum of the contract
4072	4072	35 is recorded in the county recorder's office; and
4073	4073	36 (3) the individual:
4074	4074	37 (A) owns the real property, mobile home, or manufactured
4075	4075	38 home; or
4076	4076	39 (B) is buying the real property, mobile home, or
4077	4077	40 manufactured home under contract;
4078	4078	41 on the date the credit is claimed.
4079	4079	42 (b) The amount of the credit is equal to one hundred fifty dollars
4080	4080	2025 IN 1402—LS 7150/DI 120 94
4081	4081	1 ($150).
4082	4082	2 (c) An individual may not be denied the credit provided under
4083	4083	3 this section because the individual is absent from the real property,
4084	4084	4 mobile home, or manufactured home while in a nursing home or
4085	4085	5 hospital.
4086	4086	6 (d) For purposes of this section, if real property, a mobile home,
4087	4087	7 or a manufactured home is owned by:
4088	4088	8 (1) tenants by the entirety;
4089	4089	9 (2) joint tenants; or
4090	4090	10 (3) tenants in common;
4091	4091	11 only one (1) credit may be allowed. However, the age requirement
4092	4092	12 is satisfied if any one (1) of the tenants is at least sixty-five (65)
4093	4093	13 years of age.
4094	4094	14 (e) A surviving spouse is entitled to the credit provided by this
4095	4095	15 section if:
4096	4096	16 (1) the surviving spouse is at least sixty (60) years of age on or
4097	4097	17 before December 31 of the calendar year preceding the year
4098	4098	18 in which the credit is claimed;
4099	4099	19 (2) the surviving spouse's deceased husband or wife was at
4100	4100	20 least sixty-five (65) years of age at the time of a death; and
4101	4101	21 (3) the surviving spouse has not remarried.
4102	4102	22 (f) An individual who has sold real property to another person
4103	4103	23 under a contract that provides that the contract buyer is to pay the
4104	4104	24 property taxes on the real property may not claim the credit
4105	4105	25 provided under this section against that real property.
4106	4106	26 (g) If individuals share ownership or are purchasing the
4107	4107	27 property under a contract as joint tenants or tenants in common
4108	4108	28 and all of the tenants are not at least sixty-five (65) years of age, the
4109	4109	29 credit allowed under this section shall be reduced by an amount
4110	4110	30 equal to the credit multiplied by a fraction. The numerator of the
4111	4111	31 fraction is the number of tenants who are not at least sixty-five (65)
4112	4112	32 years of age, and the denominator is the total number of tenants.
4113	4113	33 (h) An individual wishing to claim a credit under this section
4114	4114	34 must file a statement, on forms prescribed by the department of
4115	4115	35 local government finance, with the county auditor and provide
4116	4116	36 documentation necessary to substantiate the individual's eligibility
4117	4117	37 for the credit. The statement must be completed and dated on or
4118	4118	38 before January 5 of the calendar year in which the property taxes
4119	4119	39 are first due and payable. The statement may be filed in person or
4120	4120	40 by mail. If mailed, the mailing must be postmarked on or before
4121	4121	41 the last day for filing. An individual who remains eligible for the
4122	4122	42 credit in the following year is not required to file a statement to
4123	4123	2025 IN 1402—LS 7150/DI 120 95
4124	4124	1 apply for the credit in the following year. However, an individual
4125	4125	2 who receives a credit under this section in a particular year and
4126	4126	3 who becomes ineligible for the credit in the following year shall
4127	4127	4 notify the auditor of the county in which the homestead is located
4128	4128	5 of the individual's ineligibility not later than sixty (60) days after
4129	4129	6 the individual becomes ineligible.
4130	4130	7 Sec. 2. (a) An individual is entitled to a credit against local
4131	4131	8 property taxes imposed on the individual's real property, or mobile
4132	4132	9 home or manufactured home within the county, if:
4133	4133	10 (1) the individual is blind or the individual has a disability;
4134	4134	11 (2) the real property, mobile home, or manufactured home is
4135	4135	12 principally used and occupied by the individual as the
4136	4136	13 individual's residence; and
4137	4137	14 (3) the individual:
4138	4138	15 (A) owns the real property, mobile home, or manufactured
4139	4139	16 home; or
4140	4140	17 (B) is buying the real property, mobile home, or
4141	4141	18 manufactured home under contract;
4142	4142	19 on the date the credit is claimed, and in the case of clause (B),
4143	4143	20 the contract or a memorandum of the contract is recorded in
4144	4144	21 the county recorder's office.
4145	4145	22 (b) The amount of the credit is equal to one hundred twenty-five
4146	4146	23 dollars ($125).
4147	4147	24 (c) For purposes of this section, "blind" has the same meaning
4148	4148	25 as the definition contained in IC 12-7-2-21(1).
4149	4149	26 (d) For purposes of this section, "individual with a disability"
4150	4150	27 means a person unable to engage in any substantial gainful activity
4151	4151	28 by reason of a medically determinable physical or mental
4152	4152	29 impairment which:
4153	4153	30 (1) can be expected to result in death; or
4154	4154	31 (2) has lasted or can be expected to last for a continuous
4155	4155	32 period of not less than twelve (12) months.
4156	4156	33 (e) An individual with a disability filing a claim under this
4157	4157	34 section shall submit proof of the disability. Proof that a claimant is
4158	4158	35 eligible to receive disability benefits under the federal Social
4159	4159	36 Security Act (42 U.S.C. 301 et seq.) shall constitute proof of
4160	4160	37 disability for purposes of this section.
4161	4161	38 (f) An individual with a disability not covered under the federal
4162	4162	39 Social Security Act shall be examined by a physician and the
4163	4163	40 individual's status as an individual with a disability determined by
4164	4164	41 using the same standards as used by the Social Security
4165	4165	42 Administration. The costs of this examination shall be borne by the
4166	4166	2025 IN 1402—LS 7150/DI 120 96
4167	4167	1 claimant.
4168	4168	2 (g) An individual who receives the credit provided by this
4169	4169	3 section may not receive the credit provided by IC 6-1.1-20.6-8.5.
4170	4170	4 However, the individual may receive any other property tax credit
4171	4171	5 that the individual is entitled to by law.
4172	4172	6 (h) An individual who has sold real property, a mobile home not
4173	4173	7 assessed as real property, or a manufactured home not assessed as
4174	4174	8 real property to another person under a contract that provides that
4175	4175	9 the contract buyer is to pay the property taxes on the real
4176	4176	10 property, mobile home, or manufactured home may not claim the
4177	4177	11 credit provided under this section against that real property,
4178	4178	12 mobile home, or manufactured home.
4179	4179	13 (i) An individual wishing to claim a credit under this section
4180	4180	14 must file a statement, on forms prescribed by the department of
4181	4181	15 local government finance, with the county auditor and provide
4182	4182	16 documentation necessary to substantiate the individual's eligibility
4183	4183	17 for the credit. The statement must be completed and dated on or
4184	4184	18 before January 5 of the calendar year in which the property taxes
4185	4185	19 are first due and payable. The statement may be filed in person or
4186	4186	20 by mail. If mailed, the mailing must be postmarked on or before
4187	4187	21 the last day for filing. An individual who remains eligible for the
4188	4188	22 credit in the following year is not required to file a statement to
4189	4189	23 apply for the credit in the following year. However, an individual
4190	4190	24 who receives a credit under this section in a particular year and
4191	4191	25 who becomes ineligible for the credit in the following year shall
4192	4192	26 notify the auditor of the county in which the homestead is located
4193	4193	27 of the individual's ineligibility not later than sixty (60) days after
4194	4194	28 the individual becomes ineligible.
4195	4195	29 Sec. 3. (a) An individual is entitled to a credit against local
4196	4196	30 property taxes imposed on the individual's real property, or mobile
4197	4197	31 home or manufactured home within the county, if:
4198	4198	32 (1) the individual served in the military or naval forces of the
4199	4199	33 United States for at least ninety (90) days;
4200	4200	34 (2) the individual received an honorable discharge;
4201	4201	35 (3) the individual either:
4202	4202	36 (A) has a total disability; or
4203	4203	37 (B) is at least sixty-two (62) years of age and has a
4204	4204	38 disability of at least ten percent (10%);
4205	4205	39 (4) the individual's disability is evidenced by:
4206	4206	40 (A) a pension certificate or an award of compensation
4207	4207	41 issued by the United States Department of Veterans
4208	4208	42 Affairs; or
4209	4209	2025 IN 1402—LS 7150/DI 120 97
4210	4210	1 (B) a certificate of eligibility issued to the individual by the
4211	4211	2 Indiana department of veterans' affairs after the Indiana
4212	4212	3 department of veterans' affairs has determined that the
4213	4213	4 individual's disability qualifies the individual to receive a
4214	4214	5 credit under this section; and
4215	4215	6 (5) the individual:
4216	4216	7 (A) owns the real property, mobile home, or manufactured
4217	4217	8 home; or
4218	4218	9 (B) is buying the real property, mobile home, or
4219	4219	10 manufactured home under contract;
4220	4220	11 on the date the credit is claimed, and in the case of clause (B),
4221	4221	12 the contract or a memorandum of the contract is recorded in
4222	4222	13 the county recorder's office.
4223	4223	14 (b) The amount of the credit is equal to one hundred fifty dollars
4224	4224	15 ($150).
4225	4225	16 (c) The surviving spouse of an individual may receive the credit
4226	4226	17 provided by this section if:
4227	4227	18 (1) the individual satisfied the requirements of subsection
4228	4228	19 (a)(1) through (a)(4) at the time of death; or
4229	4229	20 (2) the individual:
4230	4230	21 (A) was killed in action;
4231	4231	22 (B) died while serving on active duty in the military or
4232	4232	23 naval forces of the United States; or
4233	4233	24 (C) died while performing inactive duty training in the
4234	4234	25 military or naval forces of the United States; and
4235	4235	26 the surviving spouse satisfies the requirement of subsection (a)(5)
4236	4236	27 at the time the credit is claimed. The surviving spouse is entitled to
4237	4237	28 the credit regardless of whether the property for which the credit
4238	4238	29 is claimed was owned by the deceased veteran or the surviving
4239	4239	30 spouse before the deceased veteran's death.
4240	4240	31 (d) One who receives the credit provided by this section may not
4241	4241	32 receive the credit provided by section 1 of this chapter. However,
4242	4242	33 the individual may receive any other property tax credit which the
4243	4243	34 individual is entitled to by law.
4244	4244	35 (e) An individual who has sold real property or a mobile home
4245	4245	36 or manufactured home to another person under a contract that
4246	4246	37 provides that the contract buyer is to pay the property taxes on the
4247	4247	38 real property, mobile home, or manufactured home may not claim
4248	4248	39 the credit provided under this section against that real property,
4249	4249	40 mobile home, or manufactured home.
4250	4250	41 (f) An individual wishing to claim a credit under this section
4251	4251	42 must file a statement, on forms prescribed by the department of
4252	4252	2025 IN 1402—LS 7150/DI 120 98
4253	4253	1 local government finance, with the county auditor and provide
4254	4254	2 documentation necessary to substantiate the individual's eligibility
4255	4255	3 for the credit. The statement must be completed and dated on or
4256	4256	4 before January 5 of the calendar year in which the property taxes
4257	4257	5 are first due and payable. The statement may be filed in person or
4258	4258	6 by mail. If mailed, the mailing must be postmarked on or before
4259	4259	7 the last day for filing. An individual who remains eligible for the
4260	4260	8 credit in the following year is not required to file a statement to
4261	4261	9 apply for the credit in the following year. However, an individual
4262	4262	10 who receives a credit under this section in a particular year and
4263	4263	11 who becomes ineligible for the credit in the following year shall
4264	4264	12 notify the auditor of the county in which the homestead is located
4265	4265	13 of the individual's ineligibility not later than sixty (60) days after
4266	4266	14 the individual becomes ineligible.
4267	4267	15 Sec. 4. (a) An individual is entitled to a credit against local
4268	4268	16 property taxes imposed on the individual's real property, or mobile
4269	4269	17 home or manufactured home within the county, if:
4270	4270	18 (1) the individual served in the military or naval forces of the
4271	4271	19 United States during any of its wars;
4272	4272	20 (2) the individual received an honorable discharge;
4273	4273	21 (3) the individual has a disability with a service connected
4274	4274	22 disability of ten percent (10%) or more;
4275	4275	23 (4) the individual's disability is evidenced by:
4276	4276	24 (A) a pension certificate, an award of compensation, or a
4277	4277	25 disability compensation check issued by the United States
4278	4278	26 Department of Veterans Affairs; or
4279	4279	27 (B) a certificate of eligibility issued to the individual by the
4280	4280	28 Indiana department of veterans' affairs after the Indiana
4281	4281	29 department of veterans' affairs has determined that the
4282	4282	30 individual's disability qualifies the individual to receive a
4283	4283	31 credit under this section; and
4284	4284	32 (5) the individual:
4285	4285	33 (A) owns the real property, mobile home, or manufactured
4286	4286	34 home; or
4287	4287	35 (B) is buying the real property, mobile home, or
4288	4288	36 manufactured home under contract;
4289	4289	37 on the date the credit is claimed, and in the case of clause (B),
4290	4290	38 the contract or a memorandum of the contract is recorded in
4291	4291	39 the county recorder's office.
4292	4292	40 (b) The amount of the credit is equal to two hundred fifty
4293	4293	41 dollars ($250).
4294	4294	42 (c) The surviving spouse of an individual may receive the credit
4295	4295	2025 IN 1402—LS 7150/DI 120 99
4296	4296	1 provided by this section if the individual satisfied the requirements
4297	4297	2 of subsection (a)(1) through (a)(4) at the time of death and the
4298	4298	3 surviving spouse satisfies the requirement of subsection (a)(5) at
4299	4299	4 the time the credit is claimed. The surviving spouse is entitled to
4300	4300	5 the credit regardless of whether the property for which the credit
4301	4301	6 is claimed was owned by the deceased veteran or the surviving
4302	4302	7 spouse before the deceased veteran's death.
4303	4303	8 (d) One who receives the credit provided by this section may not
4304	4304	9 receive the credit provided by section 1 of this chapter. However,
4305	4305	10 the individual may receive any other property tax credit which the
4306	4306	11 individual is entitled to by law.
4307	4307	12 (e) An individual who has sold real property or a mobile home
4308	4308	13 or manufactured home to another person under a contract that
4309	4309	14 provides that the contract buyer is to pay the property taxes on the
4310	4310	15 real property, mobile home, or manufactured home may not claim
4311	4311	16 the credit provided under this section against that real property,
4312	4312	17 mobile home, or manufactured home.
4313	4313	18 (f) An individual wishing to claim a credit under this section
4314	4314	19 must file a statement, on forms prescribed by the department of
4315	4315	20 local government finance, with the county auditor and provide
4316	4316	21 documentation necessary to substantiate the individual's eligibility
4317	4317	22 for the credit. The statement must be completed and dated on or
4318	4318	23 before January 5 of the calendar year in which the property taxes
4319	4319	24 are first due and payable. The statement may be filed in person or
4320	4320	25 by mail. If mailed, the mailing must be postmarked on or before
4321	4321	26 the last day for filing. An individual who remains eligible for the
4322	4322	27 credit in the following year is not required to file a statement to
4323	4323	28 apply for the credit in the following year. However, an individual
4324	4324	29 who receives a credit under this section in a particular year and
4325	4325	30 who becomes ineligible for the credit in the following year shall
4326	4326	31 notify the auditor of the county in which the homestead is located
4327	4327	32 of the individual's ineligibility not later than sixty (60) days after
4328	4328	33 the individual becomes ineligible.
4329	4329	34 SECTION 67. IC 6-3-2-27.5, AS ADDED BY P.L.194-2023,
4330	4330	35 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4331	4331	36 JULY 1, 2026]: Sec. 27.5. (a) As used in this section, "compensation"
4332	4332	37 means any wages, salaries, tips, or similar income that is subject to the
4333	4333	38 withholding requirements under IC 6-3-4-8, or would otherwise be
4334	4334	39 subject to the withholding requirements under IC 6-3-4-8 if not for the
4335	4335	40 application of:
4336	4336	41 (1) IC 6-3-4-8(d);
4337	4337	42 (2) IC 6-3-5; or
4338	4338	2025 IN 1402—LS 7150/DI 120 100
4339	4339	1 (3) this section.
4340	4340	2 (b) As used in this section, "professional athlete" means:
4341	4341	3 (1) an athlete, other than a team member (as defined in section
4342	4342	4 2.7(a)(4) of this chapter) or a race team member (as defined in
4343	4343	5 section 3.2(a)(4) of this chapter), who performs services in a
4344	4344	6 professional athletic event for compensation;
4345	4345	7 (2) a team member (as defined in section 2.7(a)(4) of this chapter)
4346	4346	8 who has at least one (1) duty day in Indiana during a taxable year;
4347	4347	9 or
4348	4348	10 (3) a race team member (as defined in section 3.2(a)(4) of this
4349	4349	11 chapter) who has at least one (1) duty day in Indiana during a
4350	4350	12 taxable year.
4351	4351	13 (c) As used in this section, "professional entertainer" means a
4352	4352	14 person who performs services in the professional performing arts for
4353	4353	15 compensation on a per-event basis.
4354	4354	16 (d) As used in this section, "public figure" means a person of
4355	4355	17 prominence who performs services at discrete events, including
4356	4356	18 speeches, public appearances, and similar events, for compensation on
4357	4357	19 a per-event basis.
4358	4358	20 (e) As used in this section, "time and attendance system" means a
4359	4359	21 system:
4360	4360	22 (1) through which an employee is required, on a contemporaneous
4361	4361	23 basis, to record the employee's work location for each day worked
4362	4362	24 outside the state in which the employee's employment duties are
4363	4363	25 primarily performed; and
4364	4364	26 (2) which is designed to allow the employer to allocate the
4365	4365	27 employee's compensation for income tax purposes among all
4366	4366	28 states in which the employee performs employment duties.
4367	4367	29 (f) Except as provided in subsection (j), compensation is exempt
4368	4368	30 from the adjusted gross income tax imposed under this article and
4369	4369	31 IC 6-3.6 if all of the following conditions are met:
4370	4370	32 (1) The individual is not a resident of Indiana at any time during
4371	4371	33 the calendar year in which the employee performs employment
4372	4372	34 duties.
4373	4373	35 (2) The individual receives compensation for employment duties
4374	4374	36 performed by the individual in Indiana for thirty (30) days or less
4375	4375	37 during the calendar year.
4376	4376	38 (3) The compensation is not paid for employment duties
4377	4377	39 performed by the individual in the individual's capacity as a
4378	4378	40 professional athlete, professional entertainer, or public figure.
4379	4379	41 (g) Except as otherwise provided in this section, an employer is not
4380	4380	42 required to withhold taxes imposed under this article or IC 6-3.6 from
4381	4381	2025 IN 1402—LS 7150/DI 120 101
4382	4382	1 compensation paid to an employee described in subsection (f).
4383	4383	2 However, if the number of days that an employee performs
4384	4384	3 employment duties in Indiana exceeds thirty (30) days, the employer
4385	4385	4 shall withhold and remit tax to the state of Indiana from all
4386	4386	5 compensation paid to the employee for every day on which the
4387	4387	6 employee performed employment duties in Indiana, including the first
4388	4388	7 thirty (30) days.
4389	4389	8 (h) The department may not require payment of any penalties
4390	4390	9 otherwise applicable for a failure to deduct and withhold income taxes
4391	4391	10 under IC 6-3-4-8, if, when making the determination of whether
4392	4392	11 withholding was required, either of the following applied:
4393	4393	12 (1) The employer relied on a time and attendance system
4394	4394	13 maintained by the employer specifically designed to allocate
4395	4395	14 employee wages for income tax purposes among all taxing
4396	4396	15 jurisdictions in which the employee performs employment duties
4397	4397	16 for the employer.
4398	4398	17 (2) The employer did not maintain a time and attendance system
4399	4399	18 and the employer relied on the employee's annual determination
4400	4400	19 of the time the employee expected to spend performing
4401	4401	20 employment duties in Indiana, if:
4402	4402	21 (A) the employer did not have actual knowledge of fraud on
4403	4403	22 the part of the employee in making the determination; and
4404	4404	23 (B) the employer and the employee did not collude to evade
4405	4405	24 taxation in making the determination.
4406	4406	25 An employer's maintaining of records as described in subdivision (1)
4407	4407	26 does not preclude an employer's ability to rely on an employee's
4408	4408	27 determination of the time the employee expected to spend performing
4409	4409	28 employment duties in Indiana as described in subdivision (2) when
4410	4410	29 making the determination of whether withholding is required.
4411	4411	30 (i) For purposes of this section:
4412	4412	31 (1) subject to subdivision (3), an employee shall be considered
4413	4413	32 present and performing employment duties within Indiana if the
4414	4414	33 employee performs more of the employee's employment duties
4415	4415	34 within Indiana than in any other state during a particular day;
4416	4416	35 (2) any portion of the day during which an employee is in transit
4417	4417	36 may not be considered in determining the location of the
4418	4418	37 employee's performance of employment duties; and
4419	4419	38 (3) if an employee performs employment duties in the employee's
4420	4420	39 state of residence and in only one (1) nonresident state during a
4421	4421	40 particular day, the employee shall be considered to have
4422	4422	41 performed more of the employee's employment duties in the
4423	4423	42 nonresident state than in the state of residence for that day.
4424	4424	2025 IN 1402—LS 7150/DI 120 102
4425	4425	1 (j) The following apply for purposes of this section:
4426	4426	2 (1) If an individual receives compensation for employment duties
4427	4427	3 performed by the individual both:
4428	4428	4 (A) in the individual's capacity as a professional athlete,
4429	4429	5 professional entertainer, or public figure; and
4430	4430	6 (B) in some capacity other than the individual's capacity as a
4431	4431	7 professional athlete, professional entertainer, or public figure;
4432	4432	8 the exemption under this section may not be applied to the portion
4433	4433	9 of compensation described in clause (B).
4434	4434	10 (2) If an employee is working at a location other than a physical
4435	4435	11 location of the employer, the employee shall be considered to be
4436	4436	12 working in the state or states in which the services for the
4437	4437	13 employer are performed, regardless of the physical location of the
4438	4438	14 employer.
4439	4439	15 (3) If an individual performs employment duties in Indiana for
4440	4440	16 more than thirty (30) days during a calendar year, compensation
4441	4441	17 received by the individual is not eligible for the exemption under
4442	4442	18 this section.
4443	4443	19 (4) If an individual performs substantially similar job duties for an
4444	4444	20 employer both while designated as an employee and in some
4445	4445	21 capacity other than as an employee during a calendar year, the
4446	4446	22 number of days for which the individual shall be considered to
4447	4447	23 have worked in Indiana with regard to that employer must be
4448	4448	24 determined by aggregating the days for which the individual
4449	4449	25 performed duties for the employer, whether designated as an
4450	4450	26 employee or not.
4451	4451	27 (5) If an employer or individual reasonably believes that an
4452	4452	28 individual is an employee for a calendar year but the individual is
4453	4453	29 later determined to not be an employee, the individual:
4454	4454	30 (A) is subject to tax under this article and IC 6-3.6 on any
4455	4455	31 income that otherwise would have been exempt under this
4456	4456	32 section; and
4457	4457	33 (B) is not subject to penalties under IC 6-3-4-4.1 or
4458	4458	34 IC 6-8.1-10-2.1 based on the inclusion of amounts claimed as
4459	4459	35 exempt under this section as income.
4460	4460	36 (6) If an individual is not a resident of Indiana, amounts paid for
4461	4461	37 vacation, sick, personal, or any other type of leave may not be
4462	4462	38 considered as compensation in Indiana, and any day for which a
4463	4463	39 type of leave is used may not be considered as a day for which the
4464	4464	40 individual performed services for an employer unless the
4465	4465	41 individual performed services for the employer in Indiana on that
4466	4466	42 day and the day would otherwise be counted as a day of services
4467	4467	2025 IN 1402—LS 7150/DI 120 103
4468	4468	1 performed in Indiana under this section.
4469	4469	2 (7) The exemption provided under this section shall not apply to
4470	4470	3 an individual's compensation that is deferred or delayed from a
4471	4471	4 previous calendar year to a subsequent calendar year unless:
4472	4472	5 (A) the individual was exempt from taxation under this section
4473	4473	6 on the compensation for the calendar year in which the
4474	4474	7 compensation was earned; and
4475	4475	8 (B) the individual is not a resident of Indiana when the
4476	4476	9 individual includes the compensation in the individual's
4477	4477	10 federal gross income.
4478	4478	11 (k) Nothing in this section may be construed to prevent an
4479	4479	12 individual from being considered a local taxpayer (as defined in
4480	4480	13 IC 6-3.6-2-13(2)), (as defined in IC 6-3.6), regardless of whether the
4481	4481	14 individual's compensation is exempt under this section.
4482	4482	15 SECTION 68. IC 6-3.5-4-1, AS AMENDED BY P.L.256-2017,
4483	4483	16 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4484	4484	17 JULY 1, 2026]: Sec. 1. The following definitions apply throughout this
4485	4485	18 chapter:
4486	4486	19 (1) "Adopting entity" means either the county council or the local
4487	4487	20 income tax council established by IC 6-3.6-3-1 for the county,
4488	4488	21 whichever adopts an ordinance to impose a surtax first. the
4489	4489	22 adopting body specified in IC 6-3.6-3-1(a).
4490	4490	23 (2) "County council" includes the city-county council of a county
4491	4491	24 that contains a consolidated city of the first class.
4492	4492	25 (3) "Vehicle" has the meaning set forth in IC 6-6-5-1(b).
4493	4493	26 (4) "Net vehicle excise tax" means the tax due under IC 6-6-5
4494	4494	27 after the application of the adjustments and credits provided by
4495	4495	28 that chapter.
4496	4496	29 (5) "Surtax" means the county vehicle excise tax imposed by an
4497	4497	30 adopting entity under this chapter.
4498	4498	31 (6) "Transportation asset management plan" includes planning for
4499	4499	32 drainage systems and rights-of-way that affect transportation
4500	4500	33 assets.
4501	4501	34 SECTION 69. IC 6-3.5-4-1.1, AS AMENDED BY P.L.197-2016,
4502	4502	35 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4503	4503	36 JULY 1, 2026]: Sec. 1.1. For purposes of acting as the adopting entity
4504	4504	37 under this chapter, a local income tax council is comprised of the same
4505	4505	38 members as the local income tax council that is established by
4506	4506	39 IC 6-3.6-3-1 for the county. The local income tax council adopting
4507	4507	40 entity shall use the same procedures that apply under IC 6-3.6-3 when
4508	4508	41 acting as an adopting entity under this chapter.
4509	4509	42 SECTION 70. IC 6-3.5-5-1, AS AMENDED BY P.L.256-2017,
4510	4510	2025 IN 1402—LS 7150/DI 120 104
4511	4511	1 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4512	4512	2 JULY 1, 2026]: Sec. 1. The following definitions apply throughout this
4513	4513	3 chapter:
4514	4514	4 (1) "Adopting entity" means either the county council or the local
4515	4515	5 income tax council established by IC 6-3.6-3-1 for the county,
4516	4516	6 whichever adopts an ordinance to impose a wheel tax first. the
4517	4517	7 adopting body specified in IC 6-3.6-3-1(a).
4518	4518	8 (2) "Bus" has the meaning set forth in IC 9-13-2-17.
4519	4519	9 (3) "Commercial vehicle" has the meaning set forth in
4520	4520	10 IC 6-6-5.5-1(b).
4521	4521	11 (4) "County council" includes the city-county council of a county
4522	4522	12 that contains a consolidated city of the first class.
4523	4523	13 (5) "In-state miles" has the meaning set forth in IC 6-6-5.5-1(b).
4524	4524	14 (6) "Political subdivision" has the meaning set forth in
4525	4525	15 IC 34-6-2-110.
4526	4526	16 (7) "Recreational vehicle" has the meaning set forth in
4527	4527	17 IC 9-13-2-150.
4528	4528	18 (8) "School bus" has the meaning set forth in IC 9-13-2-161(a).
4529	4529	19 (9) "Semitrailer" has the meaning set forth in IC 9-13-2-164(a).
4530	4530	20 (10) "State agency" has the meaning set forth in IC 34-6-2-141.
4531	4531	21 (11) "Tractor" has the meaning set forth in IC 9-13-2-180.
4532	4532	22 (12) "Trailer" has the meaning set forth in IC 9-13-2-184(a).
4533	4533	23 (13) "Transportation asset management plan" includes planning
4534	4534	24 for drainage systems and rights-of-way that affect transportation
4535	4535	25 assets.
4536	4536	26 (14) "Truck" has the meaning set forth in IC 9-13-2-188(a).
4537	4537	27 (15) "Wheel tax" means the tax imposed under this chapter.
4538	4538	28 SECTION 71. IC 6-3.5-5-1.1, AS AMENDED BY P.L.197-2016,
4539	4539	29 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4540	4540	30 JULY 1, 2026]: Sec. 1.1. For purposes of acting as the adopting entity
4541	4541	31 under this chapter, a local income tax council is comprised of the same
4542	4542	32 members as the local income tax council that is established by
4543	4543	33 IC 6-3.6-3-1 for the county. The local income tax council adopting
4544	4544	34 entity shall use the same procedures that apply under IC 6-3.6-3 when
4545	4545	35 acting as an adopting entity under this chapter.
4546	4546	36 SECTION 72. IC 6-3.6-1-1, AS AMENDED BY P.L.130-2018,
4547	4547	37 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4548	4548	38 JULY 1, 2026]: Sec. 1. (a) The purpose of this article is to consolidate
4549	4549	39 and simplify the various local income tax laws (referred to as a "former
4550	4550	40 tax" in this article) that are in effect on May 1, 2016, into a uniform law
4551	4551	41 that transitions each county from the former taxes to the tax governed
4552	4552	42 by this article.
4553	4553	2025 IN 1402—LS 7150/DI 120 105
4554	4554	1 (b) Notwithstanding the effective date of the repeal of the former tax
4555	4555	2 laws on January 1, 2017, an adopting body may not adopt any
4556	4556	3 ordinances under a former tax after June 30, 2016. In addition,
4557	4557	4 notwithstanding the effective date of this article being July 1, 2015, an
4558	4558	5 adopting body may not take any action under this article before July 1,
4559	4559	6 2016.
4560	4560	7 (c) To carry out the transition, the office of management and budget,
4561	4561	8 along with the appropriate state agencies and in cooperation with each
4562	4562	9 county, shall do the following:
4563	4563	10 (1) Document all terms, conditions, limitations, and obligations
4564	4564	11 that exist under the former taxes.
4565	4565	12 (2) Categorize the tax rate under the former taxes into the
4566	4566	13 appropriate tax rate or rates under this article to provide revenue
4567	4567	14 for all the same purposes for which revenue under a former tax
4568	4568	15 was used in 2016, except to the extent required under this article
4569	4569	16 and to the extent that an adopting body takes action under this
4570	4570	17 article after June 30, 2016, to change the purposes and allocation
4571	4571	18 of the revenue as permitted under this article. Matching the
4572	4572	19 purposes of a former tax to the purposes under this article,
4573	4573	20 including the apportionment, allocation, and distribution of
4574	4574	21 revenue under this article shall be accomplished by using the best
4575	4575	22 information available. These purposes include, but are not limited
4576	4576	23 to, one (1) or more of the following:
4577	4577	24 (A) Property tax credits using the options set forth in
4578	4578	25 IC 6-3.6-5 (before its expiration). This categorization is
4579	4579	26 limited to former tax rates that were dedicated to providing
4580	4580	27 credits against property taxes under IC 6-3.5-1.1-26 (repealed),
4581	4581	28 IC 6-3.5-6 (repealed), or IC 6-3.5-7 (repealed).
4582	4582	29 (B) School corporation distributions and additional revenue.
4583	4583	30 All former tax rates not used for a specified project or
4584	4584	31 categorized under clause (A) shall be categorized under
4585	4585	32 IC 6-3.6-6 using the former tax rates or dollar amounts that
4586	4586	33 were dedicated for school corporation distributions, public
4587	4587	34 safety, economic development, and certified shares.
4588	4588	35 (C) A special purpose project (IC 6-3.6-7) using the former tax
4589	4589	36 rate that was dedicated to the project.
4590	4590	37 (d) The transition under this article shall be completed by August 1,
4591	4591	38 2016, for purposes of local government budgets for 2017 and for
4592	4592	39 purposes of the distribution and allocation of revenue under this article
4593	4593	40 after December 31, 2016.
4594	4594	41 SECTION 73. IC 6-3.6-1-1.5, AS ADDED BY P.L.197-2016,
4595	4595	42 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4596	4596	2025 IN 1402—LS 7150/DI 120 106
4597	4597	1 JULY 1, 2026]: Sec. 1.5. (a) In counties that adopted a homestead
4598	4598	2 credit under IC 6-3.5-6-13 (before its repeal January 1, 2017), the
4599	4599	3 transition from the former taxes to the taxes governed under this article
4600	4600	4 shall include the transition of the homestead credit under IC 6-3.5-6-13
4601	4601	5 (before its repeal January 1, 2017) to a property tax relief rate under
4602	4602	6 IC 6-3.6-5 (before its expiration).
4603	4603	7 (b) To accomplish the transition under this section, the department
4604	4604	8 of local government finance shall determine the portion of the income
4605	4605	9 tax rate under IC 6-3.5-6-8 (before its repeal January 1, 2017) that is
4606	4606	10 attributable to the homestead credit approved under IC 6-3.5-6-13
4607	4607	11 (before its repeal January 1, 2017) and shall allocate that portion of the
4608	4608	12 income tax rate that is attributable to the homestead credit under
4609	4609	13 IC 6-3.5-6-13 (before its repeal January 1, 2017) to the property tax
4610	4610	14 relief rate under IC 6-3.6-5 (before its expiration).
4611	4611	15 (c) The department of local government finance shall notify each
4612	4612	16 affected county of the rate that will be allocated to the property tax
4613	4613	17 relief rate not later than July 1, 2016. In addition, the department of
4614	4614	18 local government finance shall notify the state budget agency of the
4615	4615	19 transition under this section.
4616	4616	20 (d) The approval of the local income tax council is not required for
4617	4617	21 the transition of the homestead credit under IC 6-3.5-6-13 (before its
4618	4618	22 repeal January 1, 2017) to a property tax relief rate as set forth in this
4619	4619	23 section.
4620	4620	24 (d) This section expires July 1, 2027.
4621	4621	25 SECTION 74. IC 6-3.6-1-3, AS AMENDED BY P.L.197-2016,
4622	4622	26 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4623	4623	27 JULY 1, 2026]: Sec. 3. (a) Except to the extent that taxes imposed in
4624	4624	28 a county under or determined under:
4625	4625	29 (1) IC 6-3.5-1.1 (repealed);
4626	4626	30 (2) IC 6-3.5-1.5 (repealed);
4627	4627	31 (3) IC 6-3.5-6 (repealed); or
4628	4628	32 (4) IC 6-3.5-7 (repealed);
4629	4629	33 are increased, decreased, or rescinded under this article, the total tax
4630	4630	34 rate in effect in a county under the provisions described in subdivisions
4631	4631	35 (1) through (4) on May 1, 2016, continue in effect after May 1, 2016,
4632	4632	36 and shall be treated as taxes imposed under this article.
4633	4633	37 (b) Notwithstanding subsection (a) or any other provision of this
4634	4634	38 article, a property tax relief rate imposed in a county under
4635	4635	39 IC 6-3.6-5 (before its expiration) expires December 31, 2026.
4636	4636	40 SECTION 75. IC 6-3.6-1-4, AS AMENDED BY P.L.197-2016,
4637	4637	41 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4638	4638	42 JULY 1, 2026]: Sec. 4. Notwithstanding:
4639	4639	2025 IN 1402—LS 7150/DI 120 107
4640	4640	1 (1) IC 6-3.5-1.1 (repealed);
4641	4641	2 (2) IC 6-3.5-1.5 (repealed);
4642	4642	3 (3) IC 6-3.5-6 (repealed); or
4643	4643	4 (4) IC 6-3.5-7 (repealed);
4644	4644	5 a change in a tax imposed under a provision described in subdivisions
4645	4645	6 (1) through (4), credits related to property taxes provided under
4646	4646	7 IC 6-3.6-5 (before its expiration), allocations of tax revenue, and
4647	4647	8 pledges for payment from tax revenue after December 31, 2016, must
4648	4648	9 be made under this article and not under the provisions described in
4649	4649	10 subdivisions (1) through (4).
4650	4650	11 SECTION 76. IC 6-3.6-2-2, AS AMENDED BY P.L.239-2017,
4651	4651	12 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4652	4652	13 JANUARY 1, 2027]: Sec. 2. "Adjusted gross income" has the meaning
4653	4653	14 set forth in IC 6-3-1-3.5. However:
4654	4654	15 (1) except as provided in subdivision (3), in the case of a local
4655	4655	16 taxpayer who is not treated as a resident local taxpayer of a
4656	4656	17 county, the term includes only adjusted gross income derived
4657	4657	18 from the taxpayer's principal place of business or employment;
4658	4658	19 (2) (1) in the case of a resident local taxpayer of Perry County, the
4659	4659	20 term does not include adjusted gross income described in
4660	4660	21 IC 6-3.6-8-7; and
4661	4661	22 (3) (2) in the case of a local taxpayer described in section 13(3)
4662	4662	23 13(2) of this chapter, the term includes only that part of the
4663	4663	24 individual's total income that:
4664	4664	25 (A) is apportioned to Indiana under IC 6-3-2-2.7 or
4665	4665	26 IC 6-3-2-3.2; and
4666	4666	27 (B) is paid to the individual as compensation for services
4667	4667	28 rendered in the county (or municipality in the case of a local
4668	4668	29 income tax imposed under IC 6-3.6-6-22) as a team member
4669	4669	30 or race team member.
4670	4670	31 SECTION 77. IC 6-3.6-2-4 IS REPEALED [EFFECTIVE JULY 1,
4671	4671	32 2026]. Sec. 4. "Attributed allocation amount" equals the sum of the
4672	4672	33 following:
4673	4673	34 (1) The allocation amount of the civil taxing unit for that calendar
4674	4674	35 year.
4675	4675	36 (2) In the case of a county taxing unit, the welfare allocation
4676	4676	37 amount.
4677	4677	38 SECTION 78. IC 6-3.6-2-5, AS ADDED BY P.L.243-2015,
4678	4678	39 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4679	4679	40 JULY 1, 2026]: Sec. 5. "Certified distribution" refers to the amount
4680	4680	41 certified under IC 6-3.6-9-5(b), IC 6-3.6-9-5(a), as adjusted under
4681	4681	42 IC 6-3.6-9.
4682	4682	2025 IN 1402—LS 7150/DI 120 108
4683	4683	1 SECTION 79. IC 6-3.6-2-7.4 IS REPEALED [EFFECTIVE JULY
4684	4684	2 1, 2026]. Sec. 7.4. "County with a single voting bloc" means a county
4685	4685	3 that has a local income tax council in which one (1) city that is a
4686	4686	4 member of the local income tax council or one (1) town that is a
4687	4687	5 member of the local income tax council is allocated more than fifty
4688	4688	6 percent (50%) of the total one hundred (100) votes allocated under
4689	4689	7 IC 6-3.6-3-6(d). This section expires May 31, 2025.
4690	4690	8 SECTION 80. IC 6-3.6-2-12 IS REPEALED [EFFECTIVE JULY
4691	4691	9 1, 2026]. Sec. 12. "Local income tax council" means a council
4692	4692	10 established by IC 6-3.6-3-1.
4693	4693	11 SECTION 81. IC 6-3.6-2-13, AS AMENDED BY P.L.239-2017,
4694	4694	12 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4695	4695	13 JANUARY 1, 2027]: Sec. 13. "Local taxpayer", as it relates to a
4696	4696	14 particular county (or municipality in the case of a local income tax
4697	4697	15 imposed under IC 6-3.6-6-22), means any of the following:
4698	4698	16 (1) An individual who resides in that county (or municipality in
4699	4699	17 the case of a local income tax imposed under IC 6-3.6-6-22) on
4700	4700	18 the date specified in IC 6-3.6-8-3.
4701	4701	19 (2) An individual who maintains the taxpayer's principal place of
4702	4702	20 business or employment in that county on the date specified in
4703	4703	21 IC 6-3.6-8-3 and who does not reside on that same date in another
4704	4704	22 county in Indiana in which a tax under this article is in effect.
4705	4705	23 (3) (2) An individual who:
4706	4706	24 (A) has income apportioned to Indiana as:
4707	4707	25 (i) a team member under IC 6-3-2-2.7; or
4708	4708	26 (ii) a race team member under IC 6-3-2-3.2;
4709	4709	27 for services rendered in the county; and
4710	4710	28 (B) is not described in subdivision (1). or (2).
4711	4711	29 SECTION 82. IC 6-3.6-2-15, AS ADDED BY P.L.243-2015,
4712	4712	30 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4713	4713	31 JANUARY 1, 2027]: Sec. 15. "Resident local taxpayer", as it relates to
4714	4714	32 a particular county (or municipality in the case of a local income tax
4715	4715	33 imposed under IC 6-3.6-6-22), means any local taxpayer who resides
4716	4716	34 in that county (or municipality in the case of a local income tax
4717	4717	35 imposed under IC 6-3.6-6-22) on the date specified in IC 6-3.6-8-3.
4718	4718	36 SECTION 83. IC 6-3.6-3-1, AS AMENDED BY P.L.137-2024,
4719	4719	37 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4720	4720	38 JULY 1, 2026]: Sec. 1. (a) The fiscal body of the county is the
4721	4721	39 adopting body for a county.
4722	4722	40 (b) The fiscal body of the city or town is the adopting body for
4723	4723	41 a city or town for purposes of adopting a municipal rate under
4724	4724	42 IC 6-3.6-6-22. following is the adopting body for a county:
4725	4725	2025 IN 1402—LS 7150/DI 120 109
4726	4726	1 (1) The local income tax council in a county in which the county
4727	4727	2 income tax council adopted either:
4728	4728	3 (A) a county option income tax under IC 6-3.5-6 (repealed)
4729	4729	4 that was in effect on January 1, 2015; or
4730	4730	5 (B) a county economic development income tax for the county
4731	4731	6 under IC 6-3.5-7 (repealed) that was in effect on January 1,
4732	4732	7 2015.
4733	4733	8 (2) The county fiscal body in any other county.
4734	4734	9 (3) The county fiscal body for purposes of adopting a rate
4735	4735	10 dedicated to paying for a PSAP in the county as permitted by
4736	4736	11 IC 6-3.6-6-2.5.
4737	4737	12 (4) The county fiscal body for purposes of adopting a rate
4738	4738	13 dedicated to paying for acute care hospitals in the county as
4739	4739	14 permitted by IC 6-3.6-6-2.6.
4740	4740	15 (5) The county fiscal body for purposes of adopting a rate
4741	4741	16 dedicated to paying for correctional facilities and rehabilitation
4742	4742	17 facilities in the county as permitted by IC 6-3.6-6-2.7.
4743	4743	18 (b) A local income tax council is established for each county. The
4744	4744	19 membership of each county's local income tax council consists of the
4745	4745	20 fiscal body of the county and the fiscal body of each city or town that
4746	4746	21 lies either partially or entirely within that county.
4747	4747	22 SECTION 84. IC 6-3.6-3-3, AS AMENDED BY P.L.236-2023,
4748	4748	23 SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4749	4749	24 JULY 1, 2026]: Sec. 3. (a) Except as provided in subsection (f), an
4750	4750	25 ordinance adopted by a county under this article takes effect as
4751	4751	26 provided in this section.
4752	4752	27 (b) An ordinance that adopts, increases, decreases, or rescinds a tax
4753	4753	28 or a tax rate takes effect as follows:
4754	4754	29 (1) An ordinance adopted after December 31 of the immediately
4755	4755	30 preceding year and before September 1 of the current year takes
4756	4756	31 effect on October 1 of the current year.
4757	4757	32 (2) An ordinance adopted after August 31 and before November
4758	4758	33 1 of the current year takes effect on January 1 of the following
4759	4759	34 year.
4760	4760	35 (3) An ordinance adopted after October 31 of the current year and
4761	4761	36 before January 1 of the following year takes effect on October 1
4762	4762	37 of the following year.
4763	4763	38 (1) An ordinance adopted on or before October 1 of a
4764	4764	39 calendar year shall take effect on January 1 of the calendar
4765	4765	40 year that immediately succeeds the year in which the
4766	4766	41 ordinance is adopted.
4767	4767	42 (2) An ordinance adopted after October 1 of a calendar year
4768	4768	2025 IN 1402—LS 7150/DI 120 110
4769	4769	1 shall take effect on January 1 of the second succeeding
4770	4770	2 calendar year following the year the ordinance is adopted.
4771	4771	3 (c) An ordinance that grants, increases, decreases, rescinds, or
4772	4772	4 changes a credit against the property tax liability of a taxpayer under
4773	4773	5 IC 6-3.6-5 (before its expiration) takes effect as follows:
4774	4774	6 (1) An ordinance adopted after December 31 of the immediately
4775	4775	7 preceding year and before November 2 of the current year takes
4776	4776	8 effect on January 1 of, and applies to property taxes first due and
4777	4777	9 payable in, the year immediately following the year in which the
4778	4778	10 ordinance is adopted.
4779	4779	11 (2) An ordinance adopted after November 1 of the current year
4780	4780	12 and before January 1 of the immediately succeeding year takes
4781	4781	13 effect on January 1 of, and applies to property taxes first due and
4782	4782	14 payable in, the year that follows the current year by two (2) years.
4783	4783	15 This subsection expires December 31, 2026.
4784	4784	16 (d) An ordinance that grants, increases, decreases, rescinds, or
4785	4785	17 changes a distribution or allocation of taxes takes effect as follows:
4786	4786	18 (1) An ordinance adopted after December 31 of the immediately
4787	4787	19 preceding year and before November 2 of the current year takes
4788	4788	20 effect January 1 of the year immediately following the year in
4789	4789	21 which the ordinance is adopted.
4790	4790	22 (2) An ordinance adopted after November 1 of the current year
4791	4791	23 and before January 1 of the immediately succeeding year takes
4792	4792	24 effect January 1 of the year that follows the current year by two
4793	4793	25 (2) years.
4794	4794	26 (1) An ordinance adopted on or before October 1 of a
4795	4795	27 calendar year shall take effect on January 1 of the calendar
4796	4796	28 year that immediately succeeds the year in which the
4797	4797	29 ordinance is adopted.
4798	4798	30 (2) An ordinance adopted after October 1 of a calendar year
4799	4799	31 shall take effect on January 1 of the second succeeding
4800	4800	32 calendar year following the year the ordinance is adopted.
4801	4801	33 (e) An ordinance not described in subsections (b) through (d) takes
4802	4802	34 effect as provided under IC 36 for other ordinances of the
4803	4803	35 governmental entity adopting the ordinance.
4804	4804	36 (f) An ordinance described in section 7(e) or 7.5(e) of this chapter
4805	4805	37 that changes a tax rate or changes the allocation of revenue received
4806	4806	38 from a tax rate does not take effect as provided under this section if the
4807	4807	39 county adopting body fails to meet the required deadlines for notice
4808	4808	40 described in section 7(e) or 7.5(e) of this chapter. If an ordinance does
4809	4809	41 not take effect, the tax rate or allocation, as applicable, that is subject
4810	4810	42 to the proposed change in the ordinance shall be the lesser of the:
4811	4811	2025 IN 1402—LS 7150/DI 120 111
4812	4812	1 (1) applicable distribution schedule for the certified distribution
4813	4813	2 for the upcoming calendar year; or
4814	4814	3 (2) applicable distribution schedule for the certified distribution
4815	4815	4 for the current calendar year;
4816	4816	5 unless, or until, a subsequent ordinance is adopted and the required
4817	4817	6 deadlines for notice described in section 7(e) or 7.5(e) of this chapter
4818	4818	7 are met. This subsection expires January 1, 2025.
4819	4819	8 SECTION 85. IC 6-3.6-3-3.3 IS ADDED TO THE INDIANA
4820	4820	9 CODE AS A NEW SECTION TO READ AS FOLLOWS
4821	4821	10 [EFFECTIVE JULY 1, 2026]: Sec. 3.3. (a) This section applies to an
4822	4822	11 ordinance adopted by a city or town that adopts, increases,
4823	4823	12 decreases, or rescinds a tax or a tax rate under IC 6-3.6-6-22.
4824	4824	13 (b) An ordinance adopted by a city or town on or before
4825	4825	14 October 1 of a calendar year shall take effect on January 1 of the
4826	4826	15 calendar year that immediately succeeds the year in which the
4827	4827	16 ordinance is adopted.
4828	4828	17 (c) An ordinance adopted by a city or town after October 1 of a
4829	4829	18 calendar year shall take effect on January 1 of the second
4830	4830	19 succeeding calendar year following the year the ordinance is
4831	4831	20 adopted.
4832	4832	21 SECTION 86. IC 6-3.6-3-4, AS AMENDED BY P.L.236-2023,
4833	4833	22 SECTION 76, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4834	4834	23 JULY 1, 2026]: Sec. 4. (a) Except for a tax rate that has an expiration
4835	4835	24 date, and except as provided in section 3(f) of this chapter (before its
4836	4836	25 expiration), a tax rate remains in effect until the effective date of an
4837	4837	26 ordinance that increases, decreases, or rescinds that tax rate.
4838	4838	27 (b) A tax rate may not be changed more than once each year under
4839	4839	28 this article.
4840	4840	29 (c) A local income tax expenditure tax rate that is imposed in a
4841	4841	30 county under IC 6-3.6-6 continues in effect after December 31,
4842	4842	31 2026, only if the adopting body adopts an ordinance to renew the
4843	4843	32 expenditure tax rate beginning January 1, 2027. An ordinance
4844	4844	33 under this subsection must be adopted by the adopting body on or
4845	4845	34 before October 1, 2026, as set forth in section 3(b)(1) of this
4846	4846	35 chapter. However, this subsection shall not be construed to
4847	4847	36 prohibit an adopting body that fails to adopt an ordinance to
4848	4848	37 continue an expenditure tax rate after December 31, 2026, from
4849	4849	38 adopting an ordinance under this article to impose, renew, or
4850	4850	39 modify an expenditure tax rate under IC 6-3.6-6 beginning
4851	4851	40 January 1, 2028, or any year thereafter.
4852	4852	41 SECTION 87. IC 6-3.6-3-5, AS AMENDED BY P.L.137-2024,
4853	4853	42 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4854	4854	2025 IN 1402—LS 7150/DI 120 112
4855	4855	1 JULY 1, 2026]: Sec. 5. (a) The auditor of a county (or the fiscal
4856	4856	2 officer of a municipality in the case of a local income tax imposed
4857	4857	3 under IC 6-3.6-6-22) shall record all votes taken on ordinances
4858	4858	4 presented for a vote under this article and not more than ten (10) days
4859	4859	5 after the vote, send a certified copy of the results to:
4860	4860	6 (1) the commissioner of the department of state revenue; and
4861	4861	7 (2) the commissioner of the department of local government
4862	4862	8 finance;
4863	4863	9 in an electronic format approved by the commissioner of the
4864	4864	10 department of local government finance.
4865	4865	11 (b) Except as provided in subsection (c), this subsection applies only
4866	4866	12 to a county that has a local income tax council. The county auditor may
4867	4867	13 cease sending certified copies after the county auditor sends a certified
4868	4868	14 copy of results showing that members of the local income tax council
4869	4869	15 have cast a majority of the votes on the local income tax council for or
4870	4870	16 against the proposed ordinance.
4871	4871	17 (c) This subsection applies only to a county with a single voting bloc
4872	4872	18 that proposes to increase (but not decrease) a tax rate in the county. The
4873	4873	19 county auditor may cease sending certified copies of the votes on the
4874	4874	20 local income tax council voting as a whole under section 9.5 of this
4875	4875	21 chapter after the county auditor sends a certified copy of results
4876	4876	22 showing that the individuals who sit on the fiscal bodies of the county,
4877	4877	23 cities, and towns that are members of the local income tax council have
4878	4878	24 cast a majority of the votes on the local income tax council voting as a
4879	4879	25 whole under section 9.5 of this chapter for or against the proposed
4880	4880	26 ordinance. This subsection expires May 31, 2025.
4881	4881	27 SECTION 88. IC 6-3.6-3-6 IS REPEALED [EFFECTIVE JULY 1,
4882	4882	28 2026]. Sec. 6. (a) This section applies to a county in which the county
4883	4883	29 adopting body is a local income tax council.
4884	4884	30 (b) In the case of a city or town that lies within more than one (1)
4885	4885	31 county, the county auditor of each county shall base the allocations
4886	4886	32 required by subsections (d) and (e) on the population of that part of the
4887	4887	33 city or town that lies within the county for which the allocations are
4888	4888	34 being made.
4889	4889	35 (c) Each local income tax council has a total of one hundred (100)
4890	4890	36 votes.
4891	4891	37 (d) Each county, city, or town that is a member of a local income tax
4892	4892	38 council is allocated a percentage of the total one hundred (100) votes
4893	4893	39 that may be cast. The percentage that a city or town is allocated for a
4894	4894	40 year equals the same percentage that the population of the city or town
4895	4895	41 bears to the population of the county. The percentage that the county
4896	4896	42 is allocated for a year equals the same percentage that the population
4897	4897	2025 IN 1402—LS 7150/DI 120 113
4898	4898	1 of all areas in the county not located in a city or town bears to the
4899	4899	2 population of the county.
4900	4900	3 (e) This subsection applies only to a county with a single voting
4901	4901	4 bloc. Each individual who sits on the fiscal body of a county, city, or
4902	4902	5 town that is a member of the local income tax council is allocated for
4903	4903	6 a year the number of votes equal to the total number of votes allocated
4904	4904	7 to the particular county, city, or town under subsection (d) divided by
4905	4905	8 the number of members on the fiscal body of the county, city, or town.
4906	4906	9 This subsection expires May 31, 2025.
4907	4907	10 (f) On or before January 1 of each year, the county auditor shall
4908	4908	11 certify to each member of the local income tax council the number of
4909	4909	12 votes, rounded to the nearest one hundredth (0.01), each member has
4910	4910	13 for that year.
4911	4911	14 (g) This subsection applies only to a county with a single voting
4912	4912	15 bloc. On or before January 1 of each year, in addition to the
4913	4913	16 certification to each member of the local income tax council under
4914	4914	17 subsection (f), the county auditor shall certify to each individual who
4915	4915	18 sits on the fiscal body of each county, city, or town that is a member of
4916	4916	19 the local income tax council the number of votes, rounded to the
4917	4917	20 nearest one hundredth (0.01), each individual has under subsection (e)
4918	4918	21 for that year. This subsection expires May 31, 2025.
4919	4919	22 SECTION 89. IC 6-3.6-3-7 IS REPEALED [EFFECTIVE JULY 1,
4920	4920	23 2026]. Sec. 7. (a) This section applies to a county in which the county
4921	4921	24 adopting body is a local income tax council.
4922	4922	25 (b) Before a member of the local income tax council may propose
4923	4923	26 an ordinance under section 8 of this chapter, or vote on a proposed
4924	4924	27 ordinance (including a proposed ordinance under section 8(e) of this
4925	4925	28 chapter that is being considered by the local income tax council as a
4926	4926	29 whole as required under section 9.5 of this chapter (before its
4927	4927	30 expiration)), the member must hold a public hearing on the proposed
4928	4928	31 ordinance and provide the public with notice of the time and place
4929	4929	32 where the public hearing will be held.
4930	4930	33 (c) The notice required by subsection (b) must be given in
4931	4931	34 accordance with IC 5-3-1 and include the proposed ordinance or
4932	4932	35 resolution to propose an ordinance.
4933	4933	36 (d) In addition to the notice required by subsection (b), the adopting
4934	4934	37 body shall also provide a copy of the notice to all taxing units in the
4935	4935	38 county at least ten (10) days before the public hearing.
4936	4936	39 (e) If a county adopting body makes any fiscal decision that has a
4937	4937	40 financial impact to an underlying local taxing unit, the decision must
4938	4938	41 be made, and notice must be given to the affected local taxing unit, by
4939	4939	42 August 1 of a year. If a county adopting body passes an ordinance
4940	4940	2025 IN 1402—LS 7150/DI 120 114
4941	4941	1 changing the allocation of local income tax revenue to a local taxing
4942	4942	2 unit, the county adopting body must provide direct notice, in addition
4943	4943	3 to the public notice described in subsection (b), to the affected local
4944	4944	4 taxing unit within fifteen (15) days of the passage of the ordinance. The
4945	4945	5 county adopting body must provide confirmation to the department of
4946	4946	6 state revenue and the department of local government finance that
4947	4947	7 direct notice was provided to the affected local taxing units within
4948	4948	8 fifteen (15) days of the passage of the ordinance.
4949	4949	9 SECTION 90. IC 6-3.6-3-8 IS REPEALED [EFFECTIVE JULY 1,
4950	4950	10 2026]. Sec. 8. (a) This section applies to a county in which the county
4951	4951	11 adopting body is a local income tax council.
4952	4952	12 (b) Except as provided in subsection (e), any member of a local
4953	4953	13 income tax council may present an ordinance for passage. To do so, the
4954	4954	14 member must adopt a resolution to propose the ordinance to the local
4955	4955	15 income tax council and distribute a copy of the proposed ordinance to
4956	4956	16 the county auditor. The county auditor shall treat any proposed
4957	4957	17 ordinance distributed to the auditor under this section as a casting of all
4958	4958	18 that member's votes in favor of the proposed ordinance.
4959	4959	19 (c) Except as provided in subsection (f), the county auditor shall
4960	4960	20 deliver copies of a proposed ordinance the auditor receives to all
4961	4961	21 members of the local income tax council within ten (10) days after
4962	4962	22 receipt. Subject to subsection (d), once a member receives a proposed
4963	4963	23 ordinance from the county auditor, the member shall vote on it within
4964	4964	24 thirty (30) days after receipt.
4965	4965	25 (d) Except as provided in subsection (h), if, before the elapse of
4966	4966	26 thirty (30) days after receipt of a proposed ordinance, the county
4967	4967	27 auditor notifies the member that the members of the local income tax
4968	4968	28 council have cast a majority of the votes on the local income tax
4969	4969	29 council for or against the proposed ordinance the member need not
4970	4970	30 vote on the proposed ordinance.
4971	4971	31 (e) This subsection applies only to a county with a single voting bloc
4972	4972	32 that proposes to increase (but not decrease) a tax rate in the county. The
4973	4973	33 fiscal body of any county, city, or town that is a member of a local
4974	4974	34 income tax council may adopt a resolution to propose an ordinance to
4975	4975	35 increase a tax rate in the county to be voted on by the local income tax
4976	4976	36 council as a whole as required under section 9.5 of this chapter and
4977	4977	37 distribute a copy of the proposed ordinance to the county auditor. The
4978	4978	38 county auditor shall treat the vote tally on the resolution adopted under
4979	4979	39 this subsection for each individual who is a member of the fiscal body
4980	4980	40 of the county, city, or town as the voting record for that individual
4981	4981	41 either for or against the ordinance being proposed for consideration by
4982	4982	42 the local income tax council as a whole under section 9.5 of this
4983	4983	2025 IN 1402—LS 7150/DI 120 115
4984	4984	1 chapter. This subsection expires May 31, 2025.
4985	4985	2 (f) This subsection applies only to a county with a single voting bloc
4986	4986	3 that proposes to increase (but not decrease) a tax rate in the county. The
4987	4987	4 county auditor shall deliver copies of a proposed ordinance the auditor
4988	4988	5 receives under subsection (e) to the fiscal officers of all members of the
4989	4989	6 local income tax council (other than the member proposing the
4990	4990	7 ordinance under subsection (e)) within ten (10) days after receipt.
4991	4991	8 Subject to subsection (h), once a member receives a proposed
4992	4992	9 ordinance from the county auditor, the member shall vote on it within
4993	4993	10 thirty (30) days after receipt. This subsection expires May 31, 2025.
4994	4994	11 (g) This subsection applies only to a county with a single voting
4995	4995	12 bloc that proposes to increase (but not decrease) a tax rate in the
4996	4996	13 county. The fiscal body of each county, city, or town voting on a
4997	4997	14 resolution to propose an ordinance under subsection (e), or voting on
4998	4998	15 a proposed ordinance being considered by the local income tax council
4999	4999	16 as a whole under section 9.5 of this chapter, must take a roll call vote
5000	5000	17 on the resolution or the proposed ordinance. If an individual who sits
5001	5001	18 on the fiscal body is absent from the meeting in which a vote is taken
5002	5002	19 or abstains from voting on the resolution or proposed ordinance, the
5003	5003	20 fiscal officer of the county, city, or town shall nevertheless consider
5004	5004	21 that individual's vote as a "no" vote against the resolution or the
5005	5005	22 proposed ordinance being considered, whichever is applicable, for
5006	5006	23 purposes of the vote tally under this section and shall note on the vote
5007	5007	24 tally that the individual's "no" vote is due to absence or abstention. The
5008	5008	25 fiscal body of each county, city, or town shall certify the roll call vote
5009	5009	26 on a resolution or a proposed ordinance, either for or against, to the
5010	5010	27 county auditor as set forth under this chapter. This subsection expires
5011	5011	28 May 31, 2025.
5012	5012	29 (h) This subsection applies only to a county with a single voting
5013	5013	30 bloc that proposes to increase (but not decrease) a tax rate in the
5014	5014	31 county. If, before the elapse of thirty (30) days after receipt of a
5015	5015	32 proposed ordinance under subsection (e), the county auditor notifies
5016	5016	33 the member that the individuals who sit on the fiscal bodies of the
5017	5017	34 county, cities, and towns that are members of the local income tax
5018	5018	35 council have cast a majority of the votes on the local income tax
5019	5019	36 council for or against a proposed ordinance voting as a whole under
5020	5020	37 section 9.5 of this chapter, the member need not vote on the proposed
5021	5021	38 ordinance under subsection (e). This subsection expires May 31, 2025.
5022	5022	39 SECTION 91. IC 6-3.6-3-9 IS REPEALED [EFFECTIVE JULY 1,
5023	5023	40 2026]. Sec. 9. (a) Except as provided in subsection (d), this section
5024	5024	41 applies to a county in which the county adopting body is a local income
5025	5025	42 tax council.
5026	5026	2025 IN 1402—LS 7150/DI 120 116
5027	5027	1 (b) A member of the local income tax council may exercise its votes
5028	5028	2 by passing a resolution and transmitting the resolution to the county
5029	5029	3 auditor.
5030	5030	4 (c) A resolution passed by a member of the local income tax council
5031	5031	5 exercises all votes of the member on the proposed ordinance, and those
5032	5032	6 votes may not be changed during the year.
5033	5033	7 (d) This section does not apply to a county in which the county
5034	5034	8 adopting body is a local income tax council to which section 9.5 of this
5035	5035	9 chapter applies. This subsection expires May 31, 2024.
5036	5036	10 SECTION 92. IC 6-3.6-3-9.5 IS REPEALED [EFFECTIVE JULY
5037	5037	11 1, 2026]. Sec. 9.5. (a) This section applies to a county:
5038	5038	12 (1) in which the county adopting body is a local income tax
5039	5039	13 council;
5040	5040	14 (2) that is a county with a single voting bloc; and
5041	5041	15 (3) that proposes to increase a tax rate in the county.
5042	5042	16 However, the provisions under section 9 of this chapter shall apply to
5043	5043	17 a county described in subdivisions (1) and (2) that proposes to decrease
5044	5044	18 a tax rate in the county.
5045	5045	19 (b) A local income tax council described in subsection (a) must vote
5046	5046	20 as a whole to exercise its authority to increase a tax rate under this
5047	5047	21 article.
5048	5048	22 (c) A resolution passed by the fiscal body of a county, city, or town
5049	5049	23 that is a member of the local income tax council exercises the vote of
5050	5050	24 each individual who sits on the fiscal body of the county, city, or town
5051	5051	25 on the proposed ordinance, and the individual's vote may not be
5052	5052	26 changed during the year.
5053	5053	27 (d) This section expires May 31, 2025.
5054	5054	28 SECTION 93. IC 6-3.6-3-10 IS REPEALED [EFFECTIVE JULY
5055	5055	29 1, 2026]. Sec. 10. (a) This section applies to a county in which the
5056	5056	30 county adopting body is a local income tax council.
5057	5057	31 (b) A local income tax council may pass only one (1) ordinance
5058	5058	32 adopting, increasing, decreasing, or rescinding a tax in one (1) year.
5059	5059	33 Once the ordinance has been passed, the county auditor shall:
5060	5060	34 (1) cease distributing those types of proposed ordinances for the
5061	5061	35 rest of the year; and
5062	5062	36 (2) withdraw from the membership any other of those types of
5063	5063	37 proposed ordinances.
5064	5064	38 Any votes subsequently received by the county auditor on those types
5065	5065	39 of proposed ordinances during that same year are void.
5066	5066	40 (c) The local income tax council may not vote on, nor may the
5067	5067	41 county auditor distribute to the members of the local income tax
5068	5068	42 council, any proposed ordinance during a year, if previously during that
5069	5069	2025 IN 1402—LS 7150/DI 120 117
5070	5070	1 same year the county auditor received and distributed to the members
5071	5071	2 of the local income tax council a proposed ordinance whose passage
5072	5072	3 would have substantially the same effect.
5073	5073	4 SECTION 94. IC 6-3.6-4-1, AS ADDED BY P.L.243-2015,
5074	5074	5 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5075	5075	6 JANUARY 1, 2027]: Sec. 1. (a) Except as otherwise provided in
5076	5076	7 IC 6-3.6-6-22, a tax is imposed on the adjusted gross income of local
5077	5077	8 taxpayers at a tax rate that is a sum of the tax rates imposed by the
5078	5078	9 county's adopting body and in effect in the county.
5079	5079	10 (b) Except as otherwise provided in IC 6-3.6-6-22, the combined
5080	5080	11 tax rates imposed under IC 6-3.6-5 (before its expiration), IC 6-3.6-6,
5081	5081	12 and IC 6-3.6-7 constitute the tax imposed on the adjusted gross income
5082	5082	13 of local taxpayers in the county.
5083	5083	14 (c) In addition to the tax imposed in the county under subsection
5084	5084	15 (a), a tax is imposed on the adjusted gross income of local
5085	5085	16 taxpayers in a municipality at a tax rate that is imposed by the
5086	5086	17 municipality under IC 6-3.6-6-22 and in effect in the municipality.
5087	5087	18 SECTION 95. IC 6-3.6-4-2, AS ADDED BY P.L.243-2015,
5088	5088	19 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5089	5089	20 JANUARY 1, 2027]: Sec. 2. Subject to section 3 of this chapter, a tax
5090	5090	21 rate authorized under IC 6-3.6-5, IC 6-3.6-6 or IC 6-3.6-7 may be
5091	5091	22 adopted, increased, decreased, or rescinded without adopting,
5092	5092	23 increasing, decreasing, or rescinding a tax rate authorized by either of
5093	5093	24 the two (2) other chapters. chapter. However, an adopting body may:
5094	5094	25 (1) adopt, increase, decrease, or rescind a tax authorized under a
5095	5095	26 particular chapter of this article; and
5096	5096	27 (2) adopt, increase, decrease, or rescind a tax authorized under
5097	5097	28 another chapter of this article;
5098	5098	29 in the same ordinance.
5099	5099	30 SECTION 96. IC 6-3.6-4-3, AS ADDED BY P.L.243-2015,
5100	5100	31 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5101	5101	32 JANUARY 1, 2027]: Sec. 3. If there are bonds or leases outstanding
5102	5102	33 that are payable from a tax imposed under IC 6-3.5-1.1 (before its
5103	5103	34 repeal January 1, 2017), IC 6-3.5-6 (before its repeal January 1, 2017),
5104	5104	35 IC 6-3.5-7 (before its repeal January 1, 2017), IC 6-3.6-6, or IC 6-3.6-7,
5105	5105	36 (but not IC 6-3.6-5), the adopting body may not reduce the tax rate
5106	5106	37 below a rate that would produce one and twenty-five hundredths (1.25)
5107	5107	38 times the total of the highest annual outstanding debt service plus the
5108	5108	39 highest annual lease payments plus any amount required under the
5109	5109	40 agreements for the bonds or leases to be deposited in a sinking fund or
5110	5110	41 other reserve, unless:
5111	5111	42 (1) the adopting body; or
5112	5112	2025 IN 1402—LS 7150/DI 120 118
5113	5113	1 (2) any city, town, or county;
5114	5114	2 pledges all or a part of its share of revenues from the tax imposed under
5115	5115	3 IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5) for the life of the bonds or
5116	5116	4 the term of the lease, in an amount that is sufficient, when combined
5117	5117	5 with the amount pledged by the city, town, or county that issued the
5118	5118	6 bonds, to produce one and twenty-five hundredths (1.25) times the total
5119	5119	7 of the highest annual outstanding debt service plus the highest annual
5120	5120	8 lease payments plus the amount required under the agreements for the
5121	5121	9 bonds or leases to be deposited in a sinking fund or other reserve.
5122	5122	10 SECTION 97. IC 6-3.6-5-7 IS ADDED TO THE INDIANA CODE
5123	5123	11 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
5124	5124	12 1, 2026]: Sec. 7. This chapter expires December 31, 2026.
5125	5125	13 SECTION 98. IC 6-3.6-6-0.5 IS ADDED TO THE INDIANA
5126	5126	14 CODE AS A NEW SECTION TO READ AS FOLLOWS
5127	5127	15 [EFFECTIVE JULY 1, 2026]: Sec. 0.5. As used in this chapter,
5128	5128	16 "nonmunicipal civil taxing unit" means townships, libraries, and
5129	5129	17 all other civil taxing units that imposed an ad valorem property tax
5130	5130	18 levy in the county for the calendar year preceding the distribution
5131	5131	19 year, except that the term does not include counties, cities, towns,
5132	5132	20 or school corporations. The term does include those civil taxing
5133	5133	21 units whose budgets require binding review by another local unit.
5134	5134	22 SECTION 99. IC 6-3.6-6-2, AS ADDED BY P.L.243-2015,
5135	5135	23 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5136	5136	24 JULY 1, 2026]: Sec. 2. (a) This section applies to all counties.
5137	5137	25 (b) The adopting body may impose a tax rate under this chapter that
5138	5138	26 does not exceed:
5139	5139	27 (1) two and five-tenths percent (2.5%) in all counties other than
5140	5140	28 Marion County; and
5141	5141	29 (2) two and seventy-five hundredths percent (2.75%) in Marion
5142	5142	30 County;
5143	5143	31 on the adjusted gross income of local taxpayers in the county served by
5144	5144	32 the adopting body.
5145	5145	33 (b) The adopting body may by ordinance and subject to
5146	5146	34 subsections (c) through (e), impose one (1) or more of the following
5147	5147	35 component rates not to exceed a total expenditure tax rate under
5148	5148	36 this chapter of two and nine-tenths percent (2.9%) on the adjusted
5149	5149	37 gross income of taxpayers who reside in the county:
5150	5150	38 (1) A tax rate not to exceed one and two-tenths percent (1.2%)
5151	5151	39 for general purpose revenue for county services (as provided
5152	5152	40 in section 4 of this chapter), subject to subsection (c).
5153	5153	41 (2) A tax rate not to exceed four-tenths of one percent (0.4%)
5154	5154	42 for providers of fire protection and emergency medical
5155	5155	2025 IN 1402—LS 7150/DI 120 119
5156	5156	1 services located within the county (as provided in section 4.3
5157	5157	2 of this chapter), subject to subsection (c).
5158	5158	3 (3) A tax rate not to exceed two-tenths of one percent (0.2%)
5159	5159	4 for general purpose revenue for distribution to nonmunicipal
5160	5160	5 civil taxing units (excluding fire protection districts) located
5161	5161	6 within the county (as provided in section 4.5 of this chapter),
5162	5162	7 subject to subsection (c).
5163	5163	8 (4) A tax rate not to exceed one and two-tenths percent (1.2%)
5164	5164	9 for general purpose revenue for municipal services for
5165	5165	10 distribution to municipalities located within the county that
5166	5166	11 are not eligible to adopt a municipal tax rate under section 22
5167	5167	12 of this chapter or that have made an election under section
5168	5168	13 23(b)(3) of this chapter to be treated as such.
5169	5169	14 (c) The combined component rates imposed by an adopting
5170	5170	15 body under subsection (b)(1) through (b)(3) shall not exceed one
5171	5171	16 and seven-tenths percent (1.7%).
5172	5172	17 (d) A tax rate adopted under subsection (b)(4) may only be
5173	5173	18 imposed on taxpayers who do not reside in a municipality that is
5174	5174	19 eligible to adopt a municipal tax rate under section 22 of this
5175	5175	20 chapter.
5176	5176	21 (e) Beginning after December 31, 2029, a tax rate imposed under
5177	5177	22 subsection (a) shall expire on December 31 of each calendar year.
5178	5178	23 An adopting body wishing to continue, increase, or decrease a tax
5179	5179	24 rate in the succeeding year must pass an ordinance to readopt a tax
5180	5180	25 rate in accordance with IC 6-3.6-3-3. This subsection applies
5181	5181	26 regardless of whether there is a modification in the tax rate or the
5182	5182	27 component rates or the rates are unchanged from the previous
5183	5183	28 year.
5184	5184	29 SECTION 100. IC 6-3.6-6-2.5 IS REPEALED [EFFECTIVE
5185	5185	30 JANUARY 1, 2027]. Sec. 2.5. (a) This section applies to a county in
5186	5186	31 which the adopting body:
5187	5187	32 (1) is the local income tax council; and
5188	5188	33 (2) did not allocate the revenue under this chapter from an
5189	5189	34 expenditure rate of at least one-tenth of one percent (0.1%) to pay
5190	5190	35 for a PSAP in the county for a year.
5191	5191	36 (b) A county fiscal body may adopt an ordinance to impose a tax
5192	5192	37 rate for a PSAP in the county. The tax rate must be in increments of
5193	5193	38 one-hundredth of one percent (0.01%) and may not exceed one-tenth
5194	5194	39 of one percent (0.1%).
5195	5195	40 (c) The revenue generated by a tax rate imposed under this section
5196	5196	41 must be distributed directly to the county before the remainder of the
5197	5197	42 expenditure rate revenue is distributed. The revenue shall be
5198	5198	2025 IN 1402—LS 7150/DI 120 120
5199	5199	1 maintained in a separate dedicated county fund and used only for
5200	5200	2 paying for a PSAP in the county.
5201	5201	3 SECTION 101. IC 6-3.6-6-2.6 IS REPEALED [EFFECTIVE
5202	5202	4 JANUARY 1, 2027]. Sec. 2.6. (a) As used in this section, "acute care
5203	5203	5 hospital" means an acute care hospital that is:
5204	5204	6 (1) established and operated under IC 16-22-2, IC 16-22-8, or
5205	5205	7 IC 16-23; and
5206	5206	8 (2) licensed under IC 16-21.
5207	5207	9 (b) A county fiscal body may adopt an ordinance to impose a tax
5208	5208	10 rate for acute care hospitals located in the county. The tax rate must be
5209	5209	11 in increments of one-hundredth of one percent (0.01%) and may not
5210	5210	12 exceed one-tenth of one percent (0.1%).
5211	5211	13 (c) The revenue generated by a tax rate imposed under this section
5212	5212	14 must be distributed directly to the county before the remainder of the
5213	5213	15 expenditure rate revenue is distributed. The revenue shall be
5214	5214	16 maintained in a separate dedicated county fund and used only for the
5215	5215	17 operating expenses of the acute care hospital located in the county.
5216	5216	18 SECTION 102. IC 6-3.6-6-2.7 IS REPEALED [EFFECTIVE
5217	5217	19 JANUARY 1, 2027]. Sec. 2.7. (a) A county fiscal body may adopt an
5218	5218	20 ordinance to impose a tax rate for correctional facilities and
5219	5219	21 rehabilitation facilities in the county. The tax rate must be in
5220	5220	22 increments of:
5221	5221	23 (1) in the case of a county with bonds or lease agreements
5222	5222	24 outstanding on July 1, 2023, for which a pledge of tax revenue
5223	5223	25 from revenue received under a tax rate imposed under this section
5224	5224	26 is made, one-hundredth of one percent (0.01%) and may not
5225	5225	27 exceed three-tenths of one percent (0.3%); and
5226	5226	28 (2) in the case of a county with no bonds or lease agreements
5227	5227	29 outstanding on July 1, 2023, for which a pledge of tax revenue
5228	5228	30 from revenue received under a tax rate imposed under this section
5229	5229	31 is made, one-hundredth of one percent (0.01%) and may not
5230	5230	32 exceed two-tenths of one percent (0.2%).
5231	5231	33 (b) The tax rate imposed under this section may not be in effect for
5232	5232	34 more than:
5233	5233	35 (1) twenty-two (22) years, in the case of a tax rate imposed in an
5234	5234	36 ordinance adopted before January 1, 2019; or
5235	5235	37 (2) twenty-five (25) years, in the case of a tax rate imposed in an
5236	5236	38 ordinance adopted on or after January 1, 2019.
5237	5237	39 (c) The revenue generated by a tax rate imposed under this section
5238	5238	40 must be distributed directly to the county before the remainder of the
5239	5239	41 expenditure rate revenue is distributed. The revenue shall be
5240	5240	42 maintained in a separate dedicated county fund and used by the county
5241	5241	2025 IN 1402—LS 7150/DI 120 121
5242	5242	1 only for paying for correctional facilities and rehabilitation facilities in
5243	5243	2 the county.
5244	5244	3 (d) If a county fiscal body imposes a tax rate:
5245	5245	4 (1) under subsection (a)(1) or (a)(2) in an increment that does not
5246	5246	5 exceed two-tenths of one percent (0.2%), one hundred percent
5247	5247	6 (100%) of the revenue collected from the total tax rate; or
5248	5248	7 (2) under subsection (a)(1) in an increment that exceeds
5249	5249	8 two-tenths of one percent (0.2%):
5250	5250	9 (A) one hundred percent (100%) of the revenue collected from
5251	5251	10 that portion of the total tax rate that does not exceed an
5252	5252	11 increment of two-tenths of one percent (0.2%); and
5253	5253	12 (B) no revenue collected from that portion of the total tax rate
5254	5254	13 that exceeds an increment of two-tenths of one percent (0.2%);
5255	5255	14 may be used for operating expenses for correctional facilities and
5256	5256	15 rehabilitation facilities in the county.
5257	5257	16 SECTION 103. IC 6-3.6-6-2.8 IS REPEALED [EFFECTIVE
5258	5258	17 JANUARY 1, 2027]. Sec. 2.8. (a) As used in this section, "emergency
5259	5259	18 medical services" has the meaning set forth in IC 16-18-2-110.
5260	5260	19 (b) The fiscal body of a county may adopt an ordinance to impose
5261	5261	20 a tax rate for emergency medical services in the county. The tax rate
5262	5262	21 must be in increments of one-hundredth of one percent (0.01%) and
5263	5263	22 may not exceed two-tenths of one percent (0.2%). The tax rate may not
5264	5264	23 be in effect for more than twenty-five (25) years.
5265	5265	24 (c) The revenue generated by a tax rate imposed under this section
5266	5266	25 must be distributed directly to the county before the remainder of the
5267	5267	26 expenditure rate revenue is distributed. The revenue shall be
5268	5268	27 maintained in a separate dedicated county fund and used by the county
5269	5269	28 only for paying for operating costs incurred by the county for
5270	5270	29 emergency medical services that are provided throughout the county.
5271	5271	30 SECTION 104. IC 6-3.6-6-2.9 IS REPEALED [EFFECTIVE
5272	5272	31 JANUARY 1, 2027]. Sec. 2.9. (a) For purposes of this section,
5273	5273	32 "courtroom costs" includes staffing costs only for the court reporter,
5274	5274	33 court bailiff, or court administrator.
5275	5275	34 (b) A county fiscal body may adopt an ordinance to impose a tax
5276	5276	35 rate for:
5277	5277	36 (1) in the case of a tax rate adopted under this section before
5278	5278	37 January 1, 2024, county staff expenses of the state judicial system
5279	5279	38 in the county; or
5280	5280	39 (2) in the case of a tax rate adopted under this section after
5281	5281	40 December 31, 2023, courtroom costs of the state judicial system
5282	5282	41 in the county.
5283	5283	42 The tax rate must be in increments of one-hundredth of one percent
5284	5284	2025 IN 1402—LS 7150/DI 120 122
5285	5285	1 (0.01%) and may not exceed two-tenths of one percent (0.2%). The tax
5286	5286	2 rate may not be in effect for more than twenty-five (25) years.
5287	5287	3 (c) The revenue generated by a tax rate imposed under this section
5288	5288	4 must be distributed directly to the county before the remainder of the
5289	5289	5 expenditure rate revenue is distributed. The revenue shall be
5290	5290	6 maintained in a separate dedicated county fund. The revenue shall be
5291	5291	7 used by the county:
5292	5292	8 (1) in the case of a tax rate adopted under this section before
5293	5293	9 January 1, 2024, only for paying for county staff expenses of the
5294	5294	10 state judicial system in the county; and
5295	5295	11 (2) in the case of a tax rate adopted under this section after
5296	5296	12 December 31, 2023, only for paying the courtroom costs of the
5297	5297	13 state judicial system in the county.
5298	5298	14 (d) This subsection applies to a tax rate adopted under subsection
5299	5299	15 (b)(1). The local income tax revenue budgeted and spent under this
5300	5300	16 section by each county may not comprise more than fifty percent (50%)
5301	5301	17 of the county's total budgeted operational staffing expenses related to
5302	5302	18 the state judicial system in any given year.
5303	5303	19 (e) This subsection applies to a tax rate adopted under subsection
5304	5304	20 (b)(2). The local income tax revenue spent under this section by each
5305	5305	21 county may not comprise more than fifty percent (50%) of the county's
5306	5306	22 total operational staffing expenses related to the courtroom costs of the
5307	5307	23 state judicial system in any given year.
5308	5308	24 (f) Counties that enact an ordinance to impose a tax rate under this
5309	5309	25 section shall annually report the following information for the prior
5310	5310	26 calendar year by May 1 to the justice reinvestment advisory council
5311	5311	27 established by IC 33-38-9.5-2:
5312	5312	28 (1) The types of court positions paid with local income tax
5313	5313	29 revenue generated by this section.
5314	5314	30 (2) The number of court positions by type paid for with local
5315	5315	31 income tax revenue generated by this section.
5316	5316	32 (3) The average salary by type of court position paid for with local
5317	5317	33 income tax revenue generated by this section.
5318	5318	34 (4) The county's total budgeted and actual staffing expenses or
5319	5319	35 courtroom costs, whichever is applicable, related to the state
5320	5320	36 judicial system.
5321	5321	37 (5) The county's portion of local income tax revenue that was
5322	5322	38 actually spent on staffing expenses or courtroom costs, whichever
5323	5323	39 is applicable, related to the state judicial system.
5324	5324	40 (g) The justice reinvestment advisory council shall annually compile
5325	5325	41 and report to the legislative council prior to July 1 of each year the
5326	5326	42 information required in subsection (f) for each county. The report must
5327	5327	2025 IN 1402—LS 7150/DI 120 123
5328	5328	1 be in an electronic format under IC 5-14-6.
5329	5329	2 SECTION 105. IC 6-3.6-6-3, AS AMENDED BY P.L.137-2024,
5330	5330	3 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5331	5331	4 JULY 1, 2026]: Sec. 3. (a) Revenue raised from a tax imposed under
5332	5332	5 this chapter shall be treated as follows:
5333	5333	6 (1) To make the following distributions:
5334	5334	7 (A) If an ordinance described in section 2.5 of this chapter is
5335	5335	8 in effect in a county, to make a distribution to the county equal
5336	5336	9 to the amount of revenue generated by the rate imposed under
5337	5337	10 section 2.5 of this chapter.
5338	5338	11 (B) If an ordinance described in section 2.6 of this chapter is
5339	5339	12 in effect in a county, to make a distribution to the county equal
5340	5340	13 to the amount of revenue generated by the rate imposed under
5341	5341	14 section 2.6 of this chapter.
5342	5342	15 (C) If an ordinance described in section 2.7 of this chapter is
5343	5343	16 in effect in a county, to make a distribution to the county equal
5344	5344	17 to the amount of revenue generated by the rate imposed under
5345	5345	18 section 2.7 of this chapter.
5346	5346	19 (D) If an ordinance described in section 2.8 of this chapter is
5347	5347	20 in effect in a county, to make a distribution to the county equal
5348	5348	21 to the amount of revenue generated by the rate imposed under
5349	5349	22 section 2.8 of this chapter.
5350	5350	23 (2) After making the distributions described in subdivision (1), if
5351	5351	24 any, to make distributions to school corporations and civil taxing
5352	5352	25 units in counties that formerly imposed a tax under IC 6-3.5-1.1
5353	5353	26 (repealed). The revenue categorized from the next twenty-five
5354	5354	27 hundredths percent (0.25%) of the rate for a former tax adopted
5355	5355	28 under IC 6-3.5-1.1 (repealed) shall be allocated to school
5356	5356	29 corporations and civil taxing units. The amount of the allocation
5357	5357	30 to a school corporation or civil taxing unit shall be determined
5358	5358	31 using the allocation amounts for civil taxing units and school
5359	5359	32 corporations in the county.
5360	5360	33 (3) After making the distributions described in subdivisions (1)
5361	5361	34 and (2), the remaining revenue shall be treated as additional
5362	5362	35 revenue (referred to as "additional revenue" in this chapter).
5363	5363	36 Additional revenue may not be considered by the department of
5364	5364	37 local government finance in determining:
5365	5365	38 (A) any taxing unit's maximum permissible property tax levy
5366	5366	39 limit under IC 6-1.1-18.5; or
5367	5367	40 (B) the approved property tax rate for any fund.
5368	5368	41 (b) In the case of a civil taxing unit that has pledged the tax from
5369	5369	42 additional general purpose revenue for the payment of bonds, leases,
5370	5370	2025 IN 1402—LS 7150/DI 120 124
5371	5371	1 or other obligations as reported by the civil taxing unit under IC 5-1-18,
5372	5372	2 the adopting body may not under section 4 of this chapter, reduce the
5373	5373	3 proportional allocation of the additional general purpose revenue that
5374	5374	4 was allocated in the preceding year if the reduction for that year would
5375	5375	5 result in an amount less than the amount necessary for the payment of
5376	5376	6 bonds, leases, or other obligations payable or required to be deposited
5377	5377	7 in a sinking fund or other reserve in that year for the bonds, leases, or
5378	5378	8 other obligations for which the tax from additional general purpose
5379	5379	9 revenue has been pledged. To inform an adopting body with regard to
5380	5380	10 allocations that affect the payment of bonds, leases, or other
5381	5381	11 obligations, a taxing unit may provide the adopting body with
5382	5382	12 information regarding any outstanding bonds, leases, or other
5383	5383	13 obligations that are secured by additional general purpose revenue.
5384	5384	14 The information must be provided before the date of the public hearing
5385	5385	15 at which the adopting body may change the allocation of additional
5386	5386	16 general purpose revenue under section 4 of this chapter.
5387	5387	17 SECTION 106. IC 6-3.6-6-4, AS AMENDED BY P.L.247-2017,
5388	5388	18 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5389	5389	19 JULY 1, 2026]: Sec. 4. (a) General purpose revenue raised from a
5390	5390	20 tax rate under section 2(b)(1) of this chapter must be distributed
5391	5391	21 directly to the county. The money may be used by the county fiscal
5392	5392	22 body for any of the purposes of the county, including for:
5393	5393	23 (1) public safety, including funding for a PSAP;
5394	5394	24 (2) economic development purposes described in IC 6-3.6-10;
5395	5395	25 (3) acute care hospitals;
5396	5396	26 (4) correctional facilities and rehabilitation facilities; and
5397	5397	27 (5) county staff expenses of the state judicial system.
5398	5398	28 (b) The adopting body shall, by ordinance, determine how the
5399	5399	29 additional general purpose revenue from a tax under this chapter must
5400	5400	30 be allocated in subsequent years. The allocations are subject to
5401	5401	31 IC 6-3.6-11. The ordinance must be adopted as provided in IC 6-3.6-3
5402	5402	32 and takes effect and applies as specified in IC 6-3.6-3-3. The ordinance
5403	5403	33 continues to apply thereafter until it is rescinded or modified. The
5404	5404	34 revenue must be allocated among one (1) or more of the following uses
5405	5405	35 as provided in this chapter:
5406	5406	36 (1) Public safety.
5407	5407	37 (2) Economic development projects.
5408	5408	38 (3) Certified shares.
5409	5409	39 The ordinance must describe the allocation of additional revenue by
5410	5410	40 use of percentages.
5411	5411	41 SECTION 107. IC 6-3.6-6-4.3 IS ADDED TO THE INDIANA
5412	5412	42 CODE AS A NEW SECTION TO READ AS FOLLOWS
5413	5413	2025 IN 1402—LS 7150/DI 120 125
5414	5414	1 [EFFECTIVE JULY 1, 2026]: Sec. 4.3. (a) Revenue raised from a tax
5415	5415	2 rate for fire protection and emergency medical services under
5416	5416	3 section 2(b)(2) of this chapter shall be distributed by the county to
5417	5417	4 each fire protection district, fire protection territory, and
5418	5418	5 municipal fire department located within the county. At the
5419	5419	6 discretion of the county council, the county may distribute revenue
5420	5420	7 raised from a tax rate for fire protection and emergency medical
5421	5421	8 services under section 2(b)(2) of this chapter to township fire
5422	5422	9 departments and volunteer fire departments.
5423	5423	10 (b) Revenue raised from a tax rate for fire protection and
5424	5424	11 emergency medical services under section 2(b)(2) of this chapter
5425	5425	12 shall be allocated to each fire protection district, fire protection
5426	5426	13 territory, municipal fire department, and if applicable township
5427	5427	14 fire departments and volunteer fire departments, based on the
5428	5428	15 following formula:
5429	5429	16 STEP ONE: For each provider of fire protection and
5430	5430	17 emergency medical services located within the county that is
5431	5431	18 eligible to receive revenue under this section, determine the
5432	5432	19 population living within the service boundaries of the
5433	5433	20 provider using the most recent federal decennial census.
5434	5434	21 STEP TWO: For each provider of fire protection and
5435	5435	22 emergency medical services located within the county that is
5436	5436	23 eligible to receive revenue under this section, determine the
5437	5437	24 number of square miles within the service boundaries of the
5438	5438	25 provider.
5439	5439	26 STEP THREE: For each provider of fire protection and
5440	5440	27 emergency medical services located within the county that is
5441	5441	28 eligible to receive revenue under this section, determine the
5442	5442	29 product of:
5443	5443	30 (A) the STEP TWO amount; multiplied by
5444	5444	31 (B) twenty (20).
5445	5445	32 STEP FOUR: For each provider of fire protection and
5446	5446	33 emergency medical services located within the county that is
5447	5447	34 eligible to receive revenue under this section, determine the
5448	5448	35 sum of:
5449	5449	36 (A) the STEP ONE result; plus
5450	5450	37 (B) the STEP THREE result.
5451	5451	38 STEP FIVE: Determine the sum total of the STEP FOUR
5452	5452	39 results for each provider of fire protection and emergency
5453	5453	40 medical services located within the county that is eligible to
5454	5454	41 receive revenue under this section.
5455	5455	42 STEP SIX: The percentage of revenue that shall be
5456	5456	2025 IN 1402—LS 7150/DI 120 126
5457	5457	1 distributed to each provider of fire protection and emergency
5458	5458	2 medical services located within the county that is eligible to
5459	5459	3 receive revenue under this section is equal to:
5460	5460	4 (A) the STEP FOUR result for the provider; divided by
5461	5461	5 (B) the STEP FIVE result.
5462	5462	6 SECTION 108. IC 6-3.6-6-4.5 IS ADDED TO THE INDIANA
5463	5463	7 CODE AS A NEW SECTION TO READ AS FOLLOWS
5464	5464	8 [EFFECTIVE JULY 1, 2026]: Sec. 4.5. (a) Revenue raised from a tax
5465	5465	9 rate for nonmunicipal civil taxing units under section 2(b)(3) of this
5466	5466	10 chapter may be distributed by the county to nonmunicipal civil
5467	5467	11 taxing units subject to the provisions of this section.
5468	5468	12 (b) Subject to the maximum aggregate tax rate of not more than
5469	5469	13 two-tenths of one percent (0.2%) under section 2(b)(3) of this
5470	5470	14 chapter, the adopting body may adopt a tax rate for each type of
5471	5471	15 nonmunicipal civil taxing unit, which may not exceed more than
5472	5472	16 five-hundredths of one percent (0.05%) for any given unit type.
5473	5473	17 The revenue raised from a tax rate for a specific type of
5474	5474	18 nonmunicipal civil taxing unit shall be allocated to all
5475	5475	19 nonmunicipal civil taxing units of that same type located within the
5476	5476	20 county on a pro rata per capita basis, subject to subsection (e).
5477	5477	21 (c) A county solid waste management district (as defined in
5478	5478	22 IC 13-11-2-47) or a joint solid waste management district (as
5479	5479	23 defined in IC 13-11-2-113) is not an eligible nonmunicipal civil
5480	5480	24 taxing unit for the purpose of receiving an allocation of general
5481	5481	25 purpose revenue under this chapter unless a majority of the
5482	5482	26 members of each of the county fiscal bodies of the counties within
5483	5483	27 the district passes a resolution approving the distribution.
5484	5484	28 (d) A resolution passed by a county fiscal body under subsection
5485	5485	29 (c) may:
5486	5486	30 (1) expire on a date specified in the resolution; or
5487	5487	31 (2) remain in effect until the county fiscal body revokes or
5488	5488	32 rescinds the resolution.
5489	5489	33 (e) A nonmunicipal civil taxing unit wishing to receive a share
5490	5490	34 of revenue under this section in a year must adopt a resolution
5491	5491	35 requesting the distribution from the county and must provide a
5492	5492	36 certified copy of the resolution to the adopting body not later than
5493	5493	37 December 1 of the year immediately preceding the distribution
5494	5494	38 year. If a nonmunicipal civil taxing unit adopts a resolution under
5495	5495	39 this subsection and provides the resolution to the adopting body as
5496	5496	40 set forth in this subsection, the county shall distribute to the
5497	5497	41 nonmunicipal civil taxing unit an amount of revenue raised from
5498	5498	42 the tax rate under section 2(b)(3) of this chapter for the
5499	5499	2025 IN 1402—LS 7150/DI 120 127
5500	5500	1 distribution year as set forth in subsection (f).
5501	5501	2 (f) If one (1) or more, but not all, nonmunicipal civil taxing units
5502	5502	3 adopt a resolution under subsection (e) requesting a distribution in
5503	5503	4 a given year, the county may either distribute the total amount of
5504	5504	5 revenue raised from the tax rate under section 2(b)(3) of this
5505	5505	6 chapter to only those nonmunicipal civil taxing units that have
5506	5506	7 provided a resolution request, or the county may distribute the
5507	5507	8 total amount of revenue raised from a tax rate under section
5508	5508	9 2(b)(3) of this chapter to all nonmunicipal civil taxing units as set
5509	5509	10 forth in this section. If no nonmunicipal civil taxing units adopt a
5510	5510	11 resolution to request a distribution in a given year, the county may
5511	5511	12 retain the revenue raised from a tax rate for nonmunicipal civil
5512	5512	13 taxing units for that year and use the revenue as general purpose
5513	5513	14 revenue for the county under section 4 of this chapter.
5514	5514	15 SECTION 109. IC 6-3.6-6-6.1 IS ADDED TO THE INDIANA
5515	5515	16 CODE AS A NEW SECTION TO READ AS FOLLOWS
5516	5516	17 [EFFECTIVE JULY 1, 2026]: Sec. 6.1. (a) Revenue raised from a tax
5517	5517	18 rate for certain cities and towns under section 2(b)(4) of this
5518	5518	19 chapter may be distributed by the county to those cities and towns
5519	5519	20 subject to the provisions of this section.
5520	5520	21 (b) The revenue raised from a tax rate under section 2(b)(4) of
5521	5521	22 this chapter shall be allocated to the cities and towns based on the
5522	5522	23 population of the city or the population of the town, whichever is
5523	5523	24 applicable, compared to the population of all the cities or the
5524	5524	25 population of all the towns, whichever is applicable, that are
5525	5525	26 eligible for a distribution, subject to subsection (d). For purposes
5526	5526	27 of this determination, if the boundaries of a city or town are
5527	5527	28 located in more than one (1) county, only the portion of the
5528	5528	29 population of the city or town that is located within the county
5529	5529	30 imposing the tax rate under section 2(b)(4) of this chapter shall be
5530	5530	31 considered.
5531	5531	32 (c) The money may be used by the city or town fiscal body for
5532	5532	33 any of the purposes of the city or town, including public safety (as
5533	5533	34 defined in IC 6-3.6-2-14) and economic development purposes
5534	5534	35 described in IC 6-3.6-10. The city or town fiscal body may pledge
5535	5535	36 its general purpose revenue to the payment of bonds or to lease
5536	5536	37 payments as set forth in this chapter.
5537	5537	38 (d) An eligible city or town wishing to receive a share of revenue
5538	5538	39 under this section in a year must adopt a resolution requesting the
5539	5539	40 distribution from the county and must provide a certified copy of
5540	5540	41 the resolution to the adopting body not later than December 1 of
5541	5541	42 the year immediately preceding the distribution year. If an eligible
5542	5542	2025 IN 1402—LS 7150/DI 120 128
5543	5543	1 city or town adopts an resolution under this subsection and
5544	5544	2 provides the resolution to the adopting body as set forth in this
5545	5545	3 subsection, the county shall distribute to the eligible city or town
5546	5546	4 unit an amount of revenue raised from the tax rate under section
5547	5547	5 2(b)(4) of this chapter for the distribution year as set forth in
5548	5548	6 subsection (e).
5549	5549	7 (e) If one (1) or more, but not all, eligible cities or towns adopt
5550	5550	8 a resolution under subsection (d) requesting a distribution in a
5551	5551	9 given year, the county may either distribute the total amount of
5552	5552	10 revenue raised from the tax rate under section 2(b)(4) of this
5553	5553	11 chapter to only those eligible cities or towns that have provided a
5554	5554	12 resolution request, or the county may distribute the total amount
5555	5555	13 of revenue raised from a tax rate under section 2(b)(4) of this
5556	5556	14 chapter to all eligible cities or towns as set forth in this section. If
5557	5557	15 no eligible city or town adopts a resolution to request a distribution
5558	5558	16 in a given year, the county may retain the revenue raised from a
5559	5559	17 tax rate for the eligible city or town for that year and use the
5560	5560	18 revenue as general purpose revenue for the county under section
5561	5561	19 4 of this chapter.
5562	5562	20 SECTION 110. IC 6-3.6-6-8, AS AMENDED BY P.L.101-2024,
5563	5563	21 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5564	5564	22 JULY 1, 2026]: Sec. 8. (a) This section applies to the allocation of
5565	5565	23 additional revenue from a tax under this chapter to public safety
5566	5566	24 purposes. Funding dedicated for a PSAP under a former tax continues
5567	5567	25 to apply under this chapter until it is rescinded or modified. If funding
5568	5568	26 was not dedicated for a PSAP under a former tax, the adopting body
5569	5569	27 may adopt a resolution providing that all or part of the additional
5570	5570	28 revenue allocated to public safety is to be dedicated for a PSAP. The
5571	5571	29 resolution first applies in the following year and then thereafter until it
5572	5572	30 is rescinded or modified. Funding dedicated for a PSAP shall be
5573	5573	31 allocated and distributed as provided in IC 6-3.6-11-4.
5574	5574	32 (b) Except as provided in subsections (c) and (d), the amount of the
5575	5575	33 certified distribution that is allocated to public safety purposes, and
5576	5576	34 after making allocations under IC 6-3.6-11, shall be allocated to the
5577	5577	35 county and to each municipality in the county that is carrying out or
5578	5578	36 providing at least one (1) public safety purpose. For purposes of this
5579	5579	37 subsection, in the case of a consolidated city, the total property taxes
5580	5580	38 imposed by the consolidated city include the property taxes imposed by
5581	5581	39 the consolidated city and all special taxing districts (except for a public
5582	5582	40 library district, a public transportation corporation, and a health and
5583	5583	41 hospital corporation), and all special service districts. The amount
5584	5584	42 allocated under this subsection to a county or municipality is equal to
5585	5585	2025 IN 1402—LS 7150/DI 120 129
5586	5586	1 the result of:
5587	5587	2 (1) the amount of the remaining certified distribution that is
5588	5588	3 allocated to public safety purposes; multiplied by
5589	5589	4 (2) a fraction equal to:
5590	5590	5 (A) in the case of a county that initially imposed a rate for
5591	5591	6 public safety under IC 6-3.5-6 (repealed), the result of the total
5592	5592	7 property taxes imposed in the county by the county or
5593	5593	8 municipality for the calendar year preceding the distribution
5594	5594	9 year, divided by the sum of the total property taxes imposed in
5595	5595	10 the county by the county and each municipality in the county
5596	5596	11 that is entitled to a distribution under this section for that
5597	5597	12 calendar year; or
5598	5598	13 (B) in the case of a county that initially imposed a rate for
5599	5599	14 public safety under IC 6-3.5-1.1 (repealed) or a county that did
5600	5600	15 not impose a rate for public safety under either IC 6-3.5-1.1
5601	5601	16 (repealed) or IC 6-3.5-6 (repealed), the result of the attributed
5602	5602	17 allocation amount of the county or municipality for the
5603	5603	18 calendar year preceding the distribution year, divided by the
5604	5604	19 sum of the attributed allocation amounts of the county and
5605	5605	20 each municipality in the county that is entitled to a distribution
5606	5606	21 under this section for that calendar year.
5607	5607	22 (c) (a) A fire department, volunteer fire department, or emergency
5608	5608	23 medical services provider that:
5609	5609	24 (1) provides fire protection or emergency medical services within
5610	5610	25 the county; and
5611	5611	26 (2) is operated by or serves a political subdivision that is not
5612	5612	27 otherwise entitled to receive a distribution of tax revenue under
5613	5613	28 this section;
5614	5614	29 may, before July 1 of a year, apply to the adopting body for a
5615	5615	30 distribution of tax revenue under this section 4.3 of this chapter during
5616	5616	31 the following calendar year. The adopting body shall review an
5617	5617	32 application submitted under this subsection. However, after giving
5618	5618	33 notice under IC 5-3-1, the adopting body shall review an application by
5619	5619	34 a township that provided fire protection or emergency medical services
5620	5620	35 in the most recent calendar year and imposed a property tax levy for the
5621	5621	36 provision of fire protection or emergency medical services within the
5622	5622	37 county in the most recent calendar year at a public hearing. The
5623	5623	38 adopting body may review multiple applications submitted under this
5624	5624	39 subsection at one (1) public hearing. If applicable, a township shall
5625	5625	40 present and explain its application at the public hearing. Not later than
5626	5626	41 ten (10) days after the public hearing, if applicable, but before
5627	5627	42 September 1 of a year, the adopting body may adopt a resolution
5628	5628	2025 IN 1402—LS 7150/DI 120 130
5629	5629	1 requiring that one (1) or more of the applicants shall receive a specified
5630	5630	2 amount of the tax revenue to be distributed under this section 4.3 of
5631	5631	3 this chapter during the following calendar year. The adopting body
5632	5632	4 shall provide a copy of the resolution to the county auditor and the
5633	5633	5 department of local government finance not more than fifteen (15) days
5634	5634	6 after the resolution is adopted. A resolution adopted under this
5635	5635	7 subsection and provided in a timely manner to the county auditor and
5636	5636	8 the department applies only to distributions in the following calendar
5637	5637	9 year. Any amount of tax revenue distributed under this subsection to a
5638	5638	10 fire department, volunteer fire department, or emergency medical
5639	5639	11 services provider shall be distributed before the remainder of the tax
5640	5640	12 revenue is allocated under subsection (b).
5641	5641	13 (d) (b) A township fire department, volunteer fire department, fire
5642	5642	14 protection territory, or fire protection district that:
5643	5643	15 (1) provides fire protection or emergency medical services within
5644	5644	16 a county; and
5645	5645	17 (2) is operated by or serves a political subdivision;
5646	5646	18 may, before July 1 of a year, apply to the adopting body for a
5647	5647	19 distribution of tax revenue under this section 4.3 of this chapter during
5648	5648	20 the following calendar year. The adopting body shall review an
5649	5649	21 application submitted under this subsection. However, after giving
5650	5650	22 notice under IC 5-3-1, the adopting body shall review an application
5651	5651	23 submitted by a township that provided fire protection or emergency
5652	5652	24 medical services in the most recent calendar year and that imposed a
5653	5653	25 property tax levy for the provision of fire protection or emergency
5654	5654	26 medical services within the county in the most recent calendar year at
5655	5655	27 a public hearing. The adopting body may review multiple applications
5656	5656	28 submitted under this subsection at one (1) public hearing. If applicable,
5657	5657	29 a township shall present and explain its application at the public
5658	5658	30 hearing. From the amount of the certified distribution that is allocated
5659	5659	31 to public safety purposes, and after making allocations under
5660	5660	32 IC 6-3.6-11, the adopting body may adopt a resolution that one (1) or
5661	5661	33 more township fire departments, volunteer fire departments, fire
5662	5662	34 protection territories, or fire protection districts shall receive an amount
5663	5663	35 of the tax revenue to be distributed under this section 4.3 of this
5664	5664	36 chapter during the following calendar year up to one hundred percent
5665	5665	37 (100%) of the revenue collected from that portion of the tax rate
5666	5666	38 imposed for allocations for public safety purposes that does not exceed
5667	5667	39 a rate of five one-hundredths of one percent (0.05%). A resolution
5668	5668	40 adopted under this subsection must include information on the service
5669	5669	41 area for each township fire department, volunteer fire department, fire
5670	5670	42 protection territory, or fire protection district, as applicable. Any
5671	5671	2025 IN 1402—LS 7150/DI 120 131
5672	5672	1 distribution under this subsection must be based on the assessed value
5673	5673	2 of real property, not including land, that is served by each township fire
5674	5674	3 department, volunteer fire department, fire protection territory, or fire
5675	5675	4 protection district, as applicable. The adopting body shall provide a
5676	5676	5 copy of the resolution to the county auditor and the department of local
5677	5677	6 government finance not more than fifteen (15) days after the resolution
5678	5678	7 is adopted. A resolution adopted under this subsection and provided in
5679	5679	8 a timely manner to the county auditor and the department applies only
5680	5680	9 to distributions in the following calendar year. Any amount of tax
5681	5681	10 revenue distributed under this subsection to a township fire department,
5682	5682	11 volunteer fire department, fire protection territory, or fire protection
5683	5683	12 district, as applicable, shall be distributed before the remainder of the
5684	5684	13 tax revenue is allocated under subsection (b).
5685	5685	14 SECTION 111. IC 6-3.6-6-8.5, AS AMENDED BY P.L.104-2022,
5686	5686	15 SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5687	5687	16 JULY 1, 2026]: Sec. 8.5. (a) This section applies only to Marion
5688	5688	17 County.
5689	5689	18 (b) The adopting body may allocate additional general purpose
5690	5690	19 revenue to fund the operation of a public library in Marion County as
5691	5691	20 provided in an election, if any, made by the county fiscal body under
5692	5692	21 IC 36-3-7-6. An allocation under this section shall be made from the
5693	5693	22 part of the additional revenue that would otherwise be allocated as
5694	5694	23 certified shares.
5695	5695	24 (c) The adopting body may allocate additional general purpose
5696	5696	25 revenue to fund the operation of a public transportation corporation as
5697	5697	26 provided in an election, if any, made by the county fiscal body under
5698	5698	27 IC 36-9-4-42. An allocation under this section shall be made from the
5699	5699	28 part of the additional revenue that would otherwise be allocated as
5700	5700	29 certified shares.
5701	5701	30 (d) The adopting body may allocate additional general purpose
5702	5702	31 revenue to fund the operation of a public communications systems and
5703	5703	32 computer facilities district as provided in an election, if any, made by
5704	5704	33 the county fiscal body under IC 36-8-15-19(b). The additional revenue
5705	5705	34 shall be allocated and distributed before the allocation and distribution
5706	5706	35 of the remaining tax revenue under this chapter.
5707	5707	36 SECTION 112. IC 6-3.6-6-9 IS REPEALED [EFFECTIVE JULY
5708	5708	37 1, 2026]. Sec. 9. (a) This section applies to the allocation of additional
5709	5709	38 revenue from a tax under this chapter for economic development
5710	5710	39 purposes.
5711	5711	40 (b) Money designated for economic development purposes shall be
5712	5712	41 allocated to the county, cities, and towns for use by the taxing unit's
5713	5713	42 fiscal body for any of the purposes described in IC 6-3.6-10. Except as
5714	5714	2025 IN 1402—LS 7150/DI 120 132
5715	5715	1 provided in subsections (c) and (d) and IC 6-3.6-11, and subject to
5716	5716	2 adjustment as provided in IC 36-8-19-7.5, the amount of the certified
5717	5717	3 distribution allocated to economic development purposes that the
5718	5718	4 county and each city or town in a county is entitled to receive each
5719	5719	5 month of each year equals the amount determined using the following
5720	5720	6 formula:
5721	5721	7 STEP ONE: Determine the sum of:
5722	5722	8 (A) the total property taxes being imposed by the county, city,
5723	5723	9 or town during the calendar year preceding the distribution
5724	5724	10 year; plus
5725	5725	11 (B) for a county, the welfare allocation amount.
5726	5726	12 STEP TWO: Determine the quotient of:
5727	5727	13 (A) The STEP ONE amount; divided by
5728	5728	14 (B) the sum of the total property taxes that are first due and
5729	5729	15 payable to the county and all cities and towns of the county
5730	5730	16 during the calendar year preceding the distribution year plus
5731	5731	17 the welfare allocation amount.
5732	5732	18 STEP THREE: Determine the product of:
5733	5733	19 (A) the amount of the certified distribution allocated to
5734	5734	20 economic development purposes for that month; multiplied by
5735	5735	21 (B) the STEP TWO amount.
5736	5736	22 (c) The body imposing the tax may adopt an ordinance before
5737	5737	23 August 2 of a year to provide for a distribution of the amount allocated
5738	5738	24 to economic development purposes based on population instead of a
5739	5739	25 distribution under subsection (b). The following apply if an ordinance
5740	5740	26 is adopted under this subsection:
5741	5741	27 (1) The ordinance is effective January 1 of the following year.
5742	5742	28 (2) The amount of the certified distribution allocated to economic
5743	5743	29 development purposes that the county and each city and town in
5744	5744	30 the county are entitled to receive during each month of each year
5745	5745	31 equals the product of:
5746	5746	32 (A) the amount of the certified distribution that is allocated to
5747	5747	33 economic development purposes for the month; multiplied by
5748	5748	34 (B) the quotient of:
5749	5749	35 (i) for a city or town, the population of the city or the town
5750	5750	36 that is located in the county and for a county, the population
5751	5751	37 of the part of the county that is not located in a city or town;
5752	5752	38 divided by
5753	5753	39 (ii) the population of the entire county.
5754	5754	40 (3) The ordinance may be made irrevocable for the duration of
5755	5755	41 specified lease rental or debt service payments.
5756	5756	42 (d) In a county having a consolidated city, only the consolidated city
5757	5757	2025 IN 1402—LS 7150/DI 120 133
5758	5758	1 is entitled to the amount of the certified distribution that is allocated to
5759	5759	2 economic development purposes.
5760	5760	3 SECTION 113. IC 6-3.6-6-9.5, AS ADDED BY P.L.243-2015,
5761	5761	4 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5762	5762	5 JULY 1, 2026]: Sec. 9.5. (a) The executive of a county, city, or town
5763	5763	6 may:
5764	5764	7 (1) adopt a capital improvement plan specifying the uses of the
5765	5765	8 additional general purpose revenue to be allocated for economic
5766	5766	9 development purposes; or
5767	5767	10 (2) designate the county or a city or town in the county as the
5768	5768	11 recipient of all or a part of its share of the additional general
5769	5769	12 purpose revenue that is distributed to it for economic
5770	5770	13 development purposes.
5771	5771	14 (b) If a designation is made under subsection (a)(2), the county
5772	5772	15 treasurer shall transfer the share or part of the share to the designated
5773	5773	16 unit unless that unit does not have a capital improvement plan.
5774	5774	17 (c) A county, city, or town that fails to adopt a capital improvement
5775	5775	18 plan may not receive
5776	5776	19 (1) its fractional amount of the additional revenue to be allocated
5777	5777	20 for economic development purposes; or
5778	5778	21 (2) any amount designated under subsection (a)(2)
5779	5779	22 for the year or years in which the unit does not have a plan. The county
5780	5780	23 treasurer shall retain the amounts not distributed for such a unit in a
5781	5781	24 separate account until the unit adopts a plan. Interest on the separate
5782	5782	25 account becomes part of the account. If a unit fails to adopt a plan for
5783	5783	26 a period of three (3) years, the balance in the separate account shall be
5784	5784	27 distributed to the other units in the county in the same manner that
5785	5785	28 other additional general purpose revenue allocated for economic
5786	5786	29 development purposes is distributed.
5787	5787	30 (d) A capital improvement plan must include the following
5788	5788	31 components:
5789	5789	32 (1) Identification and general description of each project that
5790	5790	33 would be funded by other additional general purpose revenue
5791	5791	34 allocated for economic development purposes.
5792	5792	35 (2) The estimated total cost of the project.
5793	5793	36 (3) Identification of all sources of funds expected to be used for
5794	5794	37 each project.
5795	5795	38 (4) The planning, development, and construction schedule of each
5796	5796	39 project.
5797	5797	40 (e) A capital improvement plan:
5798	5798	41 (1) must encompass a period of not less than two (2) years; and
5799	5799	42 (2) must incorporate projects the cost of which is at least
5800	5800	2025 IN 1402—LS 7150/DI 120 134
5801	5801	1 seventy-five percent (75%) of the fractional amount of additional
5802	5802	2 general purpose revenue allocated for economic development
5803	5803	3 purposes that is expected to be received by the county, city, or
5804	5804	4 town in that period.
5805	5805	5 (f) In making a designation under subsection (a)(2), the executive
5806	5806	6 must specify the purpose and duration of the designation. If the
5807	5807	7 designation is made to provide for the payment of lease rentals or bond
5808	5808	8 payments, the executive may specify that the designation and its
5809	5809	9 duration are irrevocable.
5810	5810	10 SECTION 114. IC 6-3.6-6-10 IS REPEALED [EFFECTIVE JULY
5811	5811	11 1, 2026]. Sec. 10. (a) This section applies to additional revenue from
5812	5812	12 a tax under this chapter that is allocated for certified shares.
5813	5813	13 (b) Additional revenue remaining from a tax imposed under this
5814	5814	14 chapter, after deducting the amounts allocated to public safety purposes
5815	5815	15 and economic development purposes, shall be allocated among the civil
5816	5816	16 taxing units as certified shares.
5817	5817	17 SECTION 115. IC 6-3.6-6-11 IS REPEALED [EFFECTIVE JULY
5818	5818	18 1, 2026]. Sec. 11. (a) Except as provided in this chapter and
5819	5819	19 IC 6-3.6-11, this section applies to an allocation of certified shares in
5820	5820	20 all counties.
5821	5821	21 (b) Any civil taxing unit that imposed an ad valorem property tax
5822	5822	22 levy in the county for the calendar year preceding the distribution year
5823	5823	23 is eligible for an allocation for the distribution year under this chapter.
5824	5824	24 (c) A school corporation is not a civil taxing unit for the purpose of
5825	5825	25 receiving an allocation of certified shares under this chapter. The
5826	5826	26 distributions to school corporations and civil taxing units in counties
5827	5827	27 that formerly imposed a tax under IC 6-3.5-1.1 (repealed) as provided
5828	5828	28 in section 3(a)(2) of this chapter is not considered an allocation of
5829	5829	29 certified shares. A school corporation's allocation amount for purposes
5830	5830	30 of section 3(a)(2) of this chapter shall be determined under section 12
5831	5831	31 of this chapter.
5832	5832	32 (d) A county solid waste management district (as defined in
5833	5833	33 IC 13-11-2-47) or a joint solid waste management district (as defined
5834	5834	34 in IC 13-11-2-113) is not a civil taxing unit for the purpose of receiving
5835	5835	35 an allocation of certified shares under this chapter unless a majority of
5836	5836	36 the members of each of the county fiscal bodies of the counties within
5837	5837	37 the district passes a resolution approving the distribution.
5838	5838	38 (e) A resolution passed by a county fiscal body under subsection (d)
5839	5839	39 may:
5840	5840	40 (1) expire on a date specified in the resolution; or
5841	5841	41 (2) remain in effect until the county fiscal body revokes or
5842	5842	42 rescinds the resolution.
5843	5843	2025 IN 1402—LS 7150/DI 120 135
5844	5844	1 SECTION 116. IC 6-3.6-6-12 IS REPEALED [EFFECTIVE JULY
5845	5845	2 1, 2026]. Sec. 12. (a) Except as provided in this chapter and
5846	5846	3 IC 6-3.6-11, this section applies to an allocation of certified shares in
5847	5847	4 all counties.
5848	5848	5 (b) The allocation amount of a civil taxing unit during a calendar
5849	5849	6 year must be based on the amounts for the calendar year preceding the
5850	5850	7 distribution year and is equal to the amount determined using the
5851	5851	8 following formula:
5852	5852	9 STEP ONE: Determine the sum of the total property taxes being
5853	5853	10 imposed by the civil taxing unit.
5854	5854	11 STEP TWO: Determine the sum of the following:
5855	5855	12 (A) Amounts appropriated from property taxes to pay the
5856	5856	13 principal of or interest on any debenture or other debt
5857	5857	14 obligation issued after June 30, 2005, other than an obligation
5858	5858	15 described in subsection (c).
5859	5859	16 (B) Amounts appropriated from property taxes to make
5860	5860	17 payments on any lease entered into after June 30, 2005, other
5861	5861	18 than a lease described in subsection (d).
5862	5862	19 STEP THREE: Subtract the STEP TWO amount from the STEP
5863	5863	20 ONE amount.
5864	5864	21 STEP FOUR: Determine the sum of:
5865	5865	22 (A) the STEP THREE amount; plus
5866	5866	23 (B) the civil taxing unit's certified shares plus the amount
5867	5867	24 distributed under section 3(a)(2) of this chapter for the
5868	5868	25 previous calendar year.
5869	5869	26 The allocation amount is subject to adjustment as provided in
5870	5870	27 IC 36-8-19-7.5.
5871	5871	28 (c) Except as provided in this subsection, an appropriation for the
5872	5872	29 calendar year preceding the distribution year from property taxes to
5873	5873	30 repay interest and principal of a debt obligation is not deducted from
5874	5874	31 the allocation amount for a civil taxing unit if:
5875	5875	32 (1) the debt obligation was issued; and
5876	5876	33 (2) the proceeds were appropriated from property taxes;
5877	5877	34 to refund or otherwise refinance a debt obligation or a lease issued
5878	5878	35 before July 1, 2005. However, an appropriation from property taxes
5879	5879	36 related to a debt obligation issued after June 30, 2005, is deducted if
5880	5880	37 the debt extends payments on a debt or lease beyond the time in which
5881	5881	38 the debt or lease would have been payable if the debt or lease had not
5882	5882	39 been refinanced or increases the total amount that must be paid on a
5883	5883	40 debt or lease in excess of the amount that would have been paid if the
5884	5884	41 debt or lease had not been refinanced. The amount of the deduction is
5885	5885	42 the annual amount for each year of the extension period or the annual
5886	5886	2025 IN 1402—LS 7150/DI 120 136
5887	5887	1 amount of the increase over the amount that would have been paid.
5888	5888	2 (d) Except as provided in this subsection, an appropriation for the
5889	5889	3 calendar year preceding the distribution year from property taxes to
5890	5890	4 make payments on a lease is not deducted from the allocation amount
5891	5891	5 for a civil taxing unit if:
5892	5892	6 (1) the lease was issued; and
5893	5893	7 (2) the proceeds were appropriated from property taxes;
5894	5894	8 to refinance a debt obligation or lease issued before July 1, 2005.
5895	5895	9 However, an appropriation from property taxes related to a lease
5896	5896	10 entered into after June 30, 2005, is deducted if the lease extends
5897	5897	11 payments on a debt or lease beyond the time in which the debt or lease
5898	5898	12 would have been payable if the debt or lease had not been refinanced
5899	5899	13 or increases the total amount that must be paid on a debt or lease in
5900	5900	14 excess of the amount that would have been paid if the debt or lease had
5901	5901	15 not been refinanced. The amount of the deduction is the annual amount
5902	5902	16 for each year of the extension period or the annual amount of the
5903	5903	17 increase over the amount that would have been paid.
5904	5904	18 SECTION 117. IC 6-3.6-6-14 IS REPEALED [EFFECTIVE JULY
5905	5905	19 1, 2026]. Sec. 14. (a) This section applies to an allocation of certified
5906	5906	20 shares in a county other than Marion County.
5907	5907	21 (b) Subject to this chapter, certified shares must be allocated among
5908	5908	22 civil taxing units based on the attributed allocation amount.
5909	5909	23 (c) The amount of certified shares to be allocated to each civil
5910	5910	24 taxing unit is equal to:
5911	5911	25 (1) the total amount of the certified distribution that is allocated
5912	5912	26 to certified shares for the county for the month; multiplied by
5913	5913	27 (2) the quotient of:
5914	5914	28 (A) the attributed allocation amount for the civil taxing unit in
5915	5915	29 the county during the calendar year; divided by
5916	5916	30 (B) the sum of the attributed allocation amounts for all civil
5917	5917	31 taxing units in the county during the calendar year.
5918	5918	32 SECTION 118. IC 6-3.6-6-15 IS REPEALED [EFFECTIVE JULY
5919	5919	33 1, 2026]. Sec. 15. (a) This section applies to an allocation or
5920	5920	34 distribution, or both, of certified shares that is required to be made to
5921	5921	35 a civil taxing unit in a county other than Marion County.
5922	5922	36 (b) IC 36-8-19-7.5 applies to the adjustment of the amounts
5923	5923	37 distributed to a civil taxing unit that participates in a fire protection
5924	5924	38 territory.
5925	5925	39 SECTION 119. IC 6-3.6-6-16 IS REPEALED [EFFECTIVE JULY
5926	5926	40 1, 2026]. Sec. 16. IC 6-3.6-11 applies to the allocation of certified
5927	5927	41 shares in Marion County.
5928	5928	42 SECTION 120. IC 6-3.6-6-17, AS ADDED BY P.L.243-2015,
5929	5929	2025 IN 1402—LS 7150/DI 120 137
5930	5930	1 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5931	5931	2 JULY 1, 2026]: Sec. 17. A county, city, town, or nonmunicipal civil
5932	5932	3 taxing unit may use its certified shares general purpose revenue for
5933	5933	4 any of the purposes of the civil taxing unit.
5934	5934	5 SECTION 121. IC 6-3.6-6-18, AS ADDED BY P.L.243-2015,
5935	5935	6 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5936	5936	7 JULY 1, 2026]: Sec. 18. (a) A county, city, town, or nonmunicipal
5937	5937	8 civil taxing unit may pledge its certified shares general purpose
5938	5938	9 revenue to the payment of bonds or to lease payments for:
5939	5939	10 (1) any purpose of the civil taxing unit;
5940	5940	11 (2) any purpose of another governmental entity located in any part
5941	5941	12 in the county, including a governmental entity organized on a
5942	5942	13 regional basis; or
5943	5943	14 (3) any purpose for which certified shares general purpose
5944	5944	15 revenue may be used by the unit under IC 6-3.6-10. this
5945	5945	16 chapter.
5946	5946	17 (b) The pledge must be approved in an ordinance adopted by the
5947	5947	18 fiscal body of the political subdivision.
5948	5948	19 SECTION 122. IC 6-3.6-6-19, AS ADDED BY P.L.243-2015,
5949	5949	20 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5950	5950	21 JULY 1, 2026]: Sec. 19. (a) A county, city, town, or nonmunicipal
5951	5951	22 civil taxing unit may distribute any part of its certified shares general
5952	5952	23 purpose revenue to any governmental entity located in any part of its
5953	5953	24 county to:
5954	5954	25 (1) carry out a joint purpose; or
5955	5955	26 (2) fund the purposes of the other governmental entity;
5956	5956	27 including a governmental entity organized on a regional basis to serve
5957	5957	28 an area in more than one (1) county.
5958	5958	29 (b) The distribution must be authorized by ordinance of the fiscal
5959	5959	30 body of the civil taxing unit to which the revenue is allocated by this
5960	5960	31 chapter. An ordinance must specify the purpose of the designation and
5961	5961	32 its duration.
5962	5962	33 (c) The fiscal body officer of the civil taxing unit may direct the
5963	5963	34 county auditor in accordance with the ordinance to withhold from the
5964	5964	35 civil taxing unit's allocation the amount that is the subject of the
5965	5965	36 ordinance and distribute the amount directly to the other governmental
5966	5966	37 entity authorized to receive the money.
5967	5967	38 SECTION 123. IC 6-3.6-6-20 IS REPEALED [EFFECTIVE JULY
5968	5968	39 1, 2026]. Sec. 20. (a) This section does not apply to distributions of
5969	5969	40 revenue under section 9 of this chapter.
5970	5970	41 (b) This section applies only to the following:
5971	5971	42 (1) Any allocation or distribution of revenue under section 3(a)(2)
5972	5972	2025 IN 1402—LS 7150/DI 120 138
5973	5973	1 of this chapter that is made on the basis of property tax levies in
5974	5974	2 counties that formerly imposed a tax under IC 6-3.5-1.1 (before
5975	5975	3 its repeal January 1, 2017).
5976	5976	4 (2) Any allocation or distribution of revenue under section 3(a)(3)
5977	5977	5 of this chapter that is made on the basis of property tax levies in
5978	5978	6 counties that formerly imposed a tax under IC 6-3.5-6 (before its
5979	5979	7 repeal January 1, 2017).
5980	5980	8 (c) Subject to subsection (b), if a school corporation or civil taxing
5981	5981	9 unit of an adopting county does not impose a property tax levy that is
5982	5982	10 first due and payable in the calendar year preceding the year in which
5983	5983	11 revenue under section 3(a)(2) or 3(a)(3) of this chapter is being
5984	5984	12 allocated or distributed, that school corporation or civil taxing unit is
5985	5985	13 entitled to receive a part of the revenue under section 3(a)(2) or 3(a)(3)
5986	5986	14 of this chapter (as appropriate) to be distributed within the county. The
5987	5987	15 fractional amount that such a school corporation or civil taxing unit is
5988	5988	16 entitled to receive each month during that calendar year equals the
5989	5989	17 product of:
5990	5990	18 (1) the amount of revenue under section 3(a)(2) or 3(a)(3) of this
5991	5991	19 chapter to be distributed on the basis of property tax levies during
5992	5992	20 that month; multiplied by
5993	5993	21 (2) a fraction. The numerator of the fraction equals the budget of
5994	5994	22 that school corporation or civil taxing unit for the distribution
5995	5995	23 year. The denominator of the fraction equals the aggregate
5996	5996	24 budgets of all school corporations or civil taxing units of that
5997	5997	25 county for the distribution year.
5998	5998	26 (d) Subject to subsection (b), if for a calendar year a school
5999	5999	27 corporation or civil taxing unit is allocated a part of a county's revenue
6000	6000	28 under section 3(a)(2) or 3(a)(3) of this chapter by subsection (c), the
6001	6001	29 calculations used to determine the shares of revenue of all other school
6002	6002	30 corporations and civil taxing units under section 3(a)(2) or 3(a)(3) of
6003	6003	31 this chapter (as appropriate) shall be changed each month for that same
6004	6004	32 year by reducing the amount of revenue to be distributed by the amount
6005	6005	33 of revenue under section 3(a)(2) or 3(a)(3) of this chapter allocated
6006	6006	34 under subsection (c) for that same month. The department of local
6007	6007	35 government finance shall make any adjustments required by this
6008	6008	36 subsection and provide them to the appropriate county auditors.
6009	6009	37 SECTION 124. IC 6-3.6-6-21, AS ADDED BY P.L.229-2017,
6010	6010	38 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6011	6011	39 JULY 1, 2026]: Sec. 21. A county, city, town, or nonmunicipal civil
6012	6012	40 taxing unit may contribute any part of its certified shares general
6013	6013	41 purpose revenue to the regional development infrastructure fund
6014	6014	42 established by IC 36-9-43-9. The contribution must be approved in an
6015	6015	2025 IN 1402—LS 7150/DI 120 139
6016	6016	1 ordinance adopted by the fiscal body of the political subdivision.
6017	6017	2 SECTION 125. IC 6-3.6-6-21.2 IS REPEALED [EFFECTIVE JULY
6018	6018	3 1, 2026]. Sec. 21.2. A school corporation that receives a distribution of
6019	6019	4 revenue under section 3 of this chapter may allocate the revenue among
6020	6020	5 any of its funds.
6021	6021	6 SECTION 126. IC 6-3.6-6-21.3, AS ADDED BY P.L.137-2024,
6022	6022	7 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6023	6023	8 JULY 1, 2026]: Sec. 21.3. (a) This section applies to distributions of
6024	6024	9 revenue before January 1, 2027. This section:
6025	6025	10 (1) does not apply to:
6026	6026	11 (A) distributions made under this chapter to a civil taxing unit
6027	6027	12 for fire protection services within a fire protection territory
6028	6028	13 established under IC 36-8-19; or
6029	6029	14 (B) distributions of revenue under section 9 of this chapter
6030	6030	15 (before its repeal); and
6031	6031	16 (2) applies only to the following:
6032	6032	17 (A) Any allocation or distribution of revenue under section
6033	6033	18 3(a)(2) of this chapter (as in effect before July 1, 2026) that
6034	6034	19 is made on the basis of property tax levies in counties that
6035	6035	20 formerly imposed a tax under IC 6-3.5-1.1 (before its repeal on
6036	6036	21 January 1, 2017).
6037	6037	22 (B) Any allocation or distribution of revenue under section
6038	6038	23 3(a)(3) of this chapter (as in effect before July 1, 2026) that
6039	6039	24 is made on the basis of property tax levies in counties that
6040	6040	25 formerly imposed a tax under IC 6-3.5-6 (before its repeal on
6041	6041	26 January 1, 2017).
6042	6042	27 (b) Subject to subsection (a), if two (2) or more:
6043	6043	28 (1) school corporations; or
6044	6044	29 (2) civil taxing units;
6045	6045	30 of an adopting county merge or consolidate to form a single school
6046	6046	31 corporation or civil taxing unit, the school corporation or civil taxing
6047	6047	32 unit that is in existence on January 1 of the current year is entitled to
6048	6048	33 the combined pro rata distribution of the revenue under section 3(a)(2)
6049	6049	34 or 3(a)(3) (as in effect before July 1, 2026) of this chapter (as
6050	6050	35 appropriate) allocated to each applicable school corporation or civil
6051	6051	36 taxing unit in existence on January 1 of the immediately preceding
6052	6052	37 calendar year prior to the merger or consolidation.
6053	6053	38 (c) The department of local government finance shall make
6054	6054	39 adjustments to civil taxing units in accordance with IC 6-1.1-18.5-7.
6055	6055	40 SECTION 127. IC 6-3.6-6-22 IS ADDED TO THE INDIANA
6056	6056	41 CODE AS A NEW SECTION TO READ AS FOLLOWS
6057	6057	42 [EFFECTIVE JULY 1, 2026]: Sec. 22. (a) As used in this section,
6058	6058	2025 IN 1402—LS 7150/DI 120 140
6059	6059	1 "municipality" means only a city or town that:
6060	6060	2 (1) has a population of three thousand five hundred (3,500) or
6061	6061	3 more; and
6062	6062	4 (2) in the case of a city or town whose population decreased in
6063	6063	5 the most recent federal decennial census from three thousand
6064	6064	6 five hundred (3,500) or more to less than three thousand five
6065	6065	7 hundred (3,500), has elected by ordinance to continue to use
6066	6066	8 its previous population of three thousand five hundred (3,500)
6067	6067	9 or more as set forth in section 23(b)(2) of this chapter for
6068	6068	10 purposes of the allocation determination under section 6.1 of
6069	6069	11 this chapter.
6070	6070	12 The term does not include a city or town that has made an election
6071	6071	13 under section 23(b)(3) of this chapter.
6072	6072	14 (b) Beginning after December 31, 2026, the fiscal body of a
6073	6073	15 municipality may by ordinance and subject to subsection (e),
6074	6074	16 impose a local income tax rate on the adjusted gross income of
6075	6075	17 local taxpayers in the municipality that does not exceed one and
6076	6076	18 two-tenths percent (1.2%).
6077	6077	19 (c) The following apply if a municipality imposes a local income
6078	6078	20 tax rate under this section:
6079	6079	21 (1) A local income tax rate imposed by a municipality under
6080	6080	22 this section applies only to local taxpayers within the territory
6081	6081	23 of the municipality.
6082	6082	24 (2) The local income tax is imposed in addition to a tax
6083	6083	25 imposed by the county in which the municipality is located in
6084	6084	26 accordance with IC 6-3.6-4-1(a) and IC 6-3.6-4-1(c).
6085	6085	27 (3) The following provisions of this article apply to a local
6086	6086	28 income tax rate imposed by a municipality under subsection
6087	6087	29 (b):
6088	6088	30 (A) IC 6-3.6-3 (adoption of the tax), including the effective
6089	6089	31 date of an ordinance under IC 6-3.6-3-3.3.
6090	6090	32 (B) IC 6-3.6-4 (imposition of the tax), except that
6091	6091	33 IC 6-3.6-4-2 and IC 6-3.6-4-3 do not apply.
6092	6092	34 (C) IC 6-3.6-8 (administration of the tax).
6093	6093	35 (4) A local income tax rate imposed by a municipality shall
6094	6094	36 apply to professional athletes who compete in the
6095	6095	37 municipality, unless exempted under IC 6-3-2-27.5 or other
6096	6096	38 provision of law.
6097	6097	39 (d) The amount of the tax revenue that is from the local income
6098	6098	40 tax rate imposed under this section and that is collected for a
6099	6099	41 calendar year shall be treated as general purpose revenue and
6100	6100	42 must be distributed to the fiscal officer of the municipality that
6101	6101	2025 IN 1402—LS 7150/DI 120 141
6102	6102	1 imposed the tax before July 1 of the next calendar year.
6103	6103	2 (e) Beginning after December 31, 2029, a tax rate imposed under
6104	6104	3 subsection (b) shall expire on December 31 of each calendar year.
6105	6105	4 A municipality wishing to continue, increase, or decrease a tax rate
6106	6106	5 in the succeeding year must pass an ordinance to readopt a tax rate
6107	6107	6 in accordance with IC 6-3.6-3-3.3. This subsection applies
6108	6108	7 regardless of whether there is a modification in the tax rate or the
6109	6109	8 rate is unchanged from the previous year.
6110	6110	9 SECTION 128. IC 6-3.6-6-23 IS ADDED TO THE INDIANA
6111	6111	10 CODE AS A NEW SECTION TO READ AS FOLLOWS
6112	6112	11 [EFFECTIVE JULY 1, 2026]: Sec. 23. (a) This section applies in
6113	6113	12 determining the population of a city or town for the purposes of
6114	6114	13 this chapter.
6115	6115	14 (b) The following apply:
6116	6116	15 (1) Except as provided in subdivisions (2) and (3), the
6117	6117	16 population of a city or town is the population of the city or
6118	6118	17 town that is reported by the 2020 federal decennial census.
6119	6119	18 (2) Beginning after 2030, if the population of a city or town:
6120	6120	19 (A) increases from a population of less than three thousand
6121	6121	20 five hundred (3,500) as reported by the immediately
6122	6122	21 preceding federal decennial census to a population of three
6123	6123	22 thousand five hundred (3,500) or more as reported by the
6124	6124	23 most recent federal decennial census, or, if applicable, any
6125	6125	24 corrected population count (as defined in IC 1-1-3.5-1.5)
6126	6126	25 issued for the city or town in the year succeeding the most
6127	6127	26 recent federal decennial census; or
6128	6128	27 (B) decreases from a population of three thousand five
6129	6129	28 hundred (3,500) or more as reported by the immediately
6130	6130	29 preceding federal decennial census to a population of less
6131	6131	30 than three thousand five hundred (3,500) as reported by
6132	6132	31 the most recent federal decennial census, or, if applicable,
6133	6133	32 any corrected population count (as defined in
6134	6134	33 IC 1-1-3.5-1.5) issued for the city or town in the year
6135	6135	34 succeeding the most recent federal decennial census;
6136	6136	35 the fiscal body of the city or town may adopt an ordinance on
6137	6137	36 or before September 1 of the calendar year immediately
6138	6138	37 succeeding the most recent federal decennial census to
6139	6139	38 continue to use the population of the city or town as reported
6140	6140	39 by the immediately preceding federal decennial census and
6141	6141	40 the resulting determination for the city or town under section
6142	6142	41 22 of this chapter, notwithstanding the increase or decrease in
6143	6143	42 its population as reported by the most recent federal
6144	6144	2025 IN 1402—LS 7150/DI 120 142
6145	6145	1 decennial census as described in this subdivision. An
6146	6146	2 ordinance adopted under this subdivision shall take effect on
6147	6147	3 January 1 of the calendar year that immediately succeeds the
6148	6148	4 year in which the ordinance is adopted. The fiscal officer of
6149	6149	5 the city or town shall provide a certified copy of an ordinance
6150	6150	6 adopted under this subdivision to the department of local
6151	6151	7 government finance.
6152	6152	8 (3) This subdivision applies only to cities and towns with a
6153	6153	9 population of more than three thousand five hundred (3,500)
6154	6154	10 but less than seven thousand (7,000). Notwithstanding any
6155	6155	11 other provision, a fiscal body of a city or town may adopt an
6156	6156	12 ordinance to elect to be treated as if the city's or town's
6157	6157	13 population is less than three thousand five hundred (3,500) for
6158	6158	14 purposes of a county local income tax rate and distribution
6159	6159	15 under this chapter. An ordinance adopted under this
6160	6160	16 subdivision shall take effect on January 1 of the calendar year
6161	6161	17 that immediately succeeds the year in which the ordinance is
6162	6162	18 adopted. The fiscal officer of the city or town shall provide a
6163	6163	19 certified copy of an ordinance adopted under this subdivision
6164	6164	20 to the department of local government finance. An ordinance
6165	6165	21 adopted by a city or town under this subdivision is not
6166	6166	22 revocable and shall not expire following the next federal
6167	6167	23 decennial census.
6168	6168	24 SECTION 129. IC 6-3.6-7-9, AS AMENDED BY P.L.239-2023,
6169	6169	25 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6170	6170	26 JULY 1, 2026]: Sec. 9. (a) This section applies only to Hancock
6171	6171	27 County.
6172	6172	28 (b) The county fiscal body may, by ordinance, allocate part of the
6173	6173	29 tax rate imposed under IC 6-3.6-5 (before its expiration), not to
6174	6174	30 exceed a tax rate of fifteen hundredths percent (0.15%), to a property
6175	6175	31 tax credit against the property tax liability imposed for public libraries
6176	6176	32 in the county, if all territory in the county is included in a library
6177	6177	33 district. The county treasurer shall establish a library property tax
6178	6178	34 replacement fund to be used only for the purposes described in this
6179	6179	35 section. Tax revenues derived from the part of the tax rate imposed
6180	6180	36 under IC 6-3-5 IC 6-3.6-5 (before its expiration) that is designated for
6181	6181	37 property tax replacement credits under this section shall be deposited
6182	6182	38 in the library property tax replacement fund. Any interest earned on
6183	6183	39 money in the library property tax replacement fund shall be credited to
6184	6184	40 the library property tax replacement fund.
6185	6185	41 (c) The amount of property tax replacement credits that each public
6186	6186	42 library in the county is entitled to receive during a calendar year under
6187	6187	2025 IN 1402—LS 7150/DI 120 143
6188	6188	1 this section (before the expiration of IC 6-3.6-5) equals the lesser of:
6189	6189	2 (1) the product of:
6190	6190	3 (A) the amount of revenue deposited by the county auditor in
6191	6191	4 the library property tax replacement fund; multiplied by
6192	6192	5 (B) a fraction described as follows:
6193	6193	6 (i) The numerator of the fraction equals the sum of the total
6194	6194	7 property taxes that would have been collected by the public
6195	6195	8 library during the previous calendar year from taxpayers
6196	6196	9 located within the library district if the property tax
6197	6197	10 replacement under this section had not been in effect.
6198	6198	11 (ii) The denominator of the fraction equals the sum of the
6199	6199	12 total property taxes that would have been collected during
6200	6200	13 the previous year from taxpayers located within the county
6201	6201	14 by all public libraries that are eligible to receive property tax
6202	6202	15 replacement credits under this section if the property tax
6203	6203	16 replacement under this section had not been in effect; or
6204	6204	17 (2) the total property taxes that would otherwise be collected by
6205	6205	18 the public library for the calendar year if the property tax
6206	6206	19 replacement credit under this section were not in effect.
6207	6207	20 The department of local government finance shall make any
6208	6208	21 adjustments necessary to account for the expansion of a library district.
6209	6209	22 However, a public library is eligible to receive property tax
6210	6210	23 replacement credits under this section only if it has entered into
6211	6211	24 reciprocal borrowing agreements with all other public libraries in the
6212	6212	25 county. If the total amount of tax revenue deposited by the county
6213	6213	26 auditor in the library property tax replacement fund for a calendar year
6214	6214	27 exceeds the total property tax liability that would otherwise be imposed
6215	6215	28 for public libraries in the county for the year, the excess must remain
6216	6216	29 in the library property tax replacement fund and may be used for library
6217	6217	30 property tax replacement purposes in the following calendar year.
6218	6218	31 (d) A public library receiving property tax replacement credits under
6219	6219	32 this section shall allocate the credits among each fund for which a
6220	6220	33 distinct property tax levy is imposed in proportion to the property taxes
6221	6221	34 levied for each fund. However, if a public library did not impose a
6222	6222	35 property tax levy during the previous calendar year or did not impose
6223	6223	36 a property tax levy for a particular fund during the previous calendar
6224	6224	37 year, but the public library is imposing a property tax levy in the
6225	6225	38 current calendar year or is imposing a property tax levy for the
6226	6226	39 particular fund in the current calendar year, the department of local
6227	6227	40 government finance shall adjust the amount of property tax
6228	6228	41 replacement credits allocated among the various funds of the public
6229	6229	42 library and shall provide the adjustment to the county auditor. If a
6230	6230	2025 IN 1402—LS 7150/DI 120 144
6231	6231	1 public library receiving property tax replacement credits under this
6232	6232	2 section does not impose a property tax levy for a particular fund that is
6233	6233	3 first due and payable in a calendar year in which the property tax
6234	6234	4 replacement credits are being distributed, the public library is not
6235	6235	5 required to allocate to that fund a part of the property tax replacement
6236	6236	6 credits to be distributed to the public library. Notwithstanding
6237	6237	7 IC 6-1.1-20-1.1(a)(1), a public library that receives property tax
6238	6238	8 replacement credits under this section is subject to the procedures for
6239	6239	9 the issuance of bonds set forth in IC 6-1.1-20.
6240	6240	10 (e) A public library shall treat property tax replacement credits
6241	6241	11 received during a particular calendar year under this section as a part
6242	6242	12 of the public library's property tax levy for each fund for that same
6243	6243	13 calendar year for purposes of fixing the public library's budget and for
6244	6244	14 purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
6245	6245	15 (f) For the purpose of allocating tax revenue under IC 6-3.6-6 and
6246	6246	16 computing and distributing tax revenue under IC 6-5.5 or IC 6-6-5, the
6247	6247	17 property tax replacement credits that are received under this section
6248	6248	18 shall be treated as though they were property taxes that were due and
6249	6249	19 payable during that same calendar year.
6250	6250	20 SECTION 130. IC 6-3.6-7-28, AS AMENDED BY P.L.136-2024,
6251	6251	21 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6252	6252	22 JULY 1, 2026]: Sec. 28. (a) This section applies to Grant County and
6253	6253	23 only if the local income tax council county adopting body repeals
6254	6254	24 provisions of its local income tax ordinance providing that under
6255	6255	25 IC 6-3.6-10-2(7) one-hundredth of one percent (0.01%) of the county's
6256	6256	26 special purpose rate revenue is used to fund the Grant County
6257	6257	27 Economic Growth Council, Inc.
6258	6258	28 (b) The local income tax council county adopting body may, by
6259	6259	29 ordinance, determine that additional local income tax revenue is
6260	6260	30 needed in the county to do the following:
6261	6261	31 (1) Finance, construct, acquire, improve, renovate, and equip the
6262	6262	32 county jail, including costs related to the demolition of existing
6263	6263	33 buildings, the acquisition of land, and any other reasonably
6264	6264	34 related costs.
6265	6265	35 (2) Repay bonds issued or leases entered into for the purposes
6266	6266	36 described in subdivision (1).
6267	6267	37 (c) If the local income tax council county adopting body makes the
6268	6268	38 determination set forth in subsection (b), the local income tax council
6269	6269	39 county adopting body may impose a tax on the adjusted gross income
6270	6270	40 of local taxpayers at a tax rate that does not exceed the lesser of the
6271	6271	41 following:
6272	6272	42 (1) Five-tenths percent (0.5%).
6273	6273	2025 IN 1402—LS 7150/DI 120 145
6274	6274	1 (2) The rate necessary to carry out the purposes described in this
6275	6275	2 section.
6276	6276	3 The tax rate may not be greater than the rate necessary to pay for the
6277	6277	4 purposes described in subsection (b).
6278	6278	5 (d) The tax rate used to pay for the purposes described in subsection
6279	6279	6 (b)(1) and (b)(2) may be imposed only until the latest of the following
6280	6280	7 dates:
6281	6281	8 (1) The date on which the financing, construction, acquisition,
6282	6282	9 improvement, renovation, and equipping of the facilities as
6283	6283	10 described in subsection (b) are completed.
6284	6284	11 (2) The date on which the last of any bonds issued (including
6285	6285	12 refunding bonds) or leases entered into to finance the
6286	6286	13 construction, acquisition, improvement, renovation, and
6287	6287	14 equipping of the facilities described in subsection (b) are fully
6288	6288	15 paid.
6289	6289	16 (3) The date on which an ordinance adopted under subsection (c)
6290	6290	17 is rescinded.
6291	6291	18 (e) The tax rate under this section may be imposed beginning in the
6292	6292	19 year following the year the ordinance is adopted and until the date on
6293	6293	20 which the ordinance adopted under this section is rescinded.
6294	6294	21 (f) The term of a bond issued (including any refunding bond) or a
6295	6295	22 lease entered into under subsection (b) may not exceed twenty-five (25)
6296	6296	23 years.
6297	6297	24 (g) The county treasurer shall establish a county jail revenue fund
6298	6298	25 to be used only for the purposes described in this section. Local income
6299	6299	26 tax revenues derived from the tax rate imposed under this section shall
6300	6300	27 be deposited in the county jail revenue fund.
6301	6301	28 (h) Local income tax revenues derived from the tax rate imposed
6302	6302	29 under this section:
6303	6303	30 (1) may be used only for the purposes described in this section;
6304	6304	31 (2) may not be considered by the department of local government
6305	6305	32 finance in determining the county's maximum permissible
6306	6306	33 property tax levy limit under IC 6-1.1-18.5; and
6307	6307	34 (3) may be pledged to the repayment of bonds issued or leases
6308	6308	35 entered into for the purposes described in subsection (b).
6309	6309	36 (i) Grant County possesses unique governmental challenges and
6310	6310	37 opportunities due to deficiencies in the current county jail. The use of
6311	6311	38 local income tax revenues as provided in this section is necessary for
6312	6312	39 the county to provide adequate jail capacity in the county and to
6313	6313	40 maintain low property tax rates essential to economic development.
6314	6314	41 The use of local income tax revenues as provided in this section to pay
6315	6315	42 any bonds issued or leases entered into to finance the construction,
6316	6316	2025 IN 1402—LS 7150/DI 120 146
6317	6317	1 acquisition, improvement, renovation, and equipping of the facilities
6318	6318	2 described in subsection (b), rather than the use of property taxes,
6319	6319	3 promotes those purposes.
6320	6320	4 (j) Money accumulated from the local income tax rate imposed
6321	6321	5 under this section after the termination of the tax under this section
6322	6322	6 shall be transferred to the county rainy day fund under IC 36-1-8-5.1.
6323	6323	7 SECTION 131. IC 6-3.6-8-3, AS ADDED BY P.L.243-2015,
6324	6324	8 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6325	6325	9 JANUARY 1, 2027]: Sec. 3. (a) For purposes of this article, an
6326	6326	10 individual shall be treated as a resident of the county (or the
6327	6327	11 municipality in the case of a local income tax imposed under
6328	6328	12 IC 6-3.6-6-22) in which the individual:
6329	6329	13 (1) maintains a home, if the individual maintains only one (1)
6330	6330	14 home in Indiana;
6331	6331	15 (2) if subdivision (1) does not apply, is registered to vote;
6332	6332	16 (3) if subdivision (1) or (2) does not apply, registers the
6333	6333	17 individual's personal automobile; or
6334	6334	18 (4) spent the majority of the individual's time in Indiana during
6335	6335	19 the taxable year in question, if subdivision (1), (2), or (3) does not
6336	6336	20 apply.
6337	6337	21 (b) The residence or principal place of business or employment of
6338	6338	22 an individual is to be determined on January 1 of the calendar year in
6339	6339	23 which the individual's taxable year commences. If an individual
6340	6340	24 changes the location of the individual's residence or principal place of
6341	6341	25 employment or business to another county (or municipality in the
6342	6342	26 case of a local income tax imposed under IC 6-3.6-6-22) in Indiana
6343	6343	27 during a calendar year, the individual's liability for tax is not affected.
6344	6344	28 (c) Notwithstanding subsection (b), if an individual becomes a local
6345	6345	29 taxpayer for purposes of IC 36-7-27 during a calendar year because the
6346	6346	30 individual
6347	6347	31 (1) changes the location of the individual's residence to a county
6348	6348	32 or municipality in which the individual begins employment or
6349	6349	33 business at a qualified economic development tax project (as
6350	6350	34 defined in IC 36-7-27-9), or
6351	6351	35 (2) changes the location of the individual's principal place of
6352	6352	36 employment or business to a qualified economic development tax
6353	6353	37 project and does not reside in another county in which a tax is in
6354	6354	38 effect;
6355	6355	39 the individual's adjusted gross income attributable to employment or
6356	6356	40 business at the qualified economic development tax project is taxable
6357	6357	41 only by the county or municipality containing the qualified economic
6358	6358	42 development tax project.
6359	6359	2025 IN 1402—LS 7150/DI 120 147
6360	6360	1 SECTION 132. IC 6-3.6-8-4, AS ADDED BY P.L.243-2015,
6361	6361	2 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6362	6362	3 JULY 1, 2026]: Sec. 4. (a) Using procedures provided under this
6363	6363	4 chapter, the adopting body of any adopting county or municipality
6364	6364	5 may pass an ordinance to enter into reciprocity agreements with the
6365	6365	6 taxing authority of any city, town, municipality, county, or other similar
6366	6366	7 local governmental entity of any other state. The reciprocity
6367	6367	8 agreements must provide that the income of resident local taxpayers is
6368	6368	9 exempt from income taxation by the other local governmental entity to
6369	6369	10 the extent income of the residents of the other local governmental
6370	6370	11 entity is exempt from the tax in the adopting county or municipality.
6371	6371	12 (b) A reciprocity agreement adopted under this section may not
6372	6372	13 become effective until it is also made effective in the other local
6373	6373	14 governmental entity that is a party to the agreement.
6374	6374	15 (c) The form and effective date of any reciprocity agreement
6375	6375	16 described in this section must be approved by the department.
6376	6376	17 SECTION 133. IC 6-3.6-8-5, AS AMENDED BY P.L.197-2016,
6377	6377	18 SECTION 64, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6378	6378	19 JANUARY 1, 2027]: Sec. 5. (a) Except as otherwise provided in
6379	6379	20 subsection (b) and the other provisions of this article, all provisions of
6380	6380	21 the adjusted gross income tax law (IC 6-3) concerning:
6381	6381	22 (1) definitions;
6382	6382	23 (2) declarations of estimated tax;
6383	6383	24 (3) filing of returns;
6384	6384	25 (4) deductions or exemptions from adjusted gross income;
6385	6385	26 (5) remittances;
6386	6386	27 (6) incorporation of the provisions of the Internal Revenue Code;
6387	6387	28 (7) penalties and interest; and
6388	6388	29 (8) exclusion of military pay credits for withholding;
6389	6389	30 apply to the imposition, collection, and administration of the tax
6390	6390	31 imposed by this article.
6391	6391	32 (b) IC 6-3-3-3, IC 6-3-3-5, and IC 6-3-5-1 do not apply to the tax
6392	6392	33 imposed by this article.
6393	6393	34 (c) Notwithstanding subsections (a) and (b), each employer shall
6394	6394	35 report to the department of state revenue the amount of withholdings
6395	6395	36 attributable to each county (or each municipality in the case of a
6396	6396	37 local income tax imposed under IC 6-3.6-6-22). This report shall be
6397	6397	38 submitted to the department of state revenue:
6398	6398	39 (1) each time the employer remits to the department the tax that
6399	6399	40 is withheld; and
6400	6400	41 (2) annually along with the employer's annual withholding report.
6401	6401	42 SECTION 134. IC 6-3.6-9-1, AS AMENDED BY P.L.165-2021,
6402	6402	2025 IN 1402—LS 7150/DI 120 148
6403	6403	1 SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6404	6404	2 JULY 1, 2026]: Sec. 1. (a) The budget agency shall maintain an
6405	6405	3 accounting for each county imposing a tax based on annual returns
6406	6406	4 filed by or for county taxpayers. Any undistributed amounts so
6407	6407	5 accounted for shall be held in reserve for the respective counties
6408	6408	6 separate from the state general fund.
6409	6409	7 (b) Undistributed amounts shall be invested by the treasurer of state
6410	6410	8 and the income earned shall be credited to the counties based on each
6411	6411	9 county's undistributed amount.
6412	6412	10 (c) This section expires December 31, 2026.
6413	6413	11 SECTION 135. IC 6-3.6-9-1.1 IS ADDED TO THE INDIANA
6414	6414	12 CODE AS A NEW SECTION TO READ AS FOLLOWS
6415	6415	13 [EFFECTIVE JULY 1, 2026]: Sec. 1.1. As used in this chapter, "local
6416	6416	14 income tax holding account" refers to the local income tax holding
6417	6417	15 account established by section 20 of this chapter.
6418	6418	16 SECTION 136. IC 6-3.6-9-4, AS AMENDED BY P.L.137-2022,
6419	6419	17 SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6420	6420	18 JULY 1, 2026]: Sec. 4. Revenue derived from the imposition of the tax
6421	6421	19 shall, in the manner prescribed by this chapter, be distributed to the
6422	6422	20 county that imposed it. The amount that is to be distributed to a county
6423	6423	21 during an ensuing calendar year equals the amount of tax revenue that
6424	6424	22 the budget agency determines has been:
6425	6425	23 (1) attributed to that county for a taxable year ending in a calendar
6426	6426	24 year preceding the calendar year in which the determination is
6427	6427	25 made; and
6428	6428	26 (2) reported on an annual return or amended return filed by or for
6429	6429	27 a county taxpayer and processed by the department in the state
6430	6430	28 fiscal year ending before July 1, or for a federal income tax
6431	6431	29 deadline set after July 1, a date set by the department for a period
6432	6432	30 of not more than sixty (60) days beyond the federal deadline, of
6433	6433	31 the calendar year in which the determination is made;
6434	6434	32 without adjustment based on the enactment of a tax rate change
6435	6435	33 under IC 6-3.6-6-2 or IC 6-3.6-6-22 in the first preceding calendar
6436	6436	34 year it becomes effective.
6437	6437	35 SECTION 137. IC 6-3.6-9-4.1, AS ADDED BY P.L.165-2021,
6438	6438	36 SECTION 95, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6439	6439	37 JULY 1, 2026]: Sec. 4.1. The budget agency shall adjust the amounts
6440	6440	38 determined under section 4 of this chapter for the credits claimed
6441	6441	39 against local income taxes under IC 6-3.6-8-6 and IC 6-3.1-19. The
6442	6442	40 adjustments made by the budget agency may be phased-in over several
6443	6443	41 fiscal calendar years until the credits are fully accounted for.
6444	6444	42 SECTION 138. IC 6-3.6-9-5, AS AMENDED BY P.L.32-2021,
6445	6445	2025 IN 1402—LS 7150/DI 120 149
6446	6446	1 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6447	6447	2 JULY 1, 2026]: Sec. 5. (a) Before August 2 of each calendar year, the
6448	6448	3 budget agency shall provide to the department of local government
6449	6449	4 finance and the county auditor of each adopting county an estimate of
6450	6450	5 the amount determined under section 4 of this chapter that will be
6451	6451	6 distributed to the county, based on known tax rates. Subject to
6452	6452	7 subsection (c), not later than fifteen (15) days after receiving the
6453	6453	8 estimate of the certified distribution, the department of local
6454	6454	9 government finance shall determine for each taxing unit and notify the
6455	6455	10 county auditor of the estimated amount of property tax credits, school
6456	6456	11 distributions, public safety revenue, economic development revenue,
6457	6457	12 certified shares, and special purpose revenue that will be distributed to
6458	6458	13 the taxing unit under this chapter during the ensuing calendar year. Not
6459	6459	14 later than thirty (30) days after receiving the department's estimate, the
6460	6460	15 county auditor shall notify each taxing unit of the amounts estimated
6461	6461	16 for the taxing unit.
6462	6462	17 (b) (a) Before October 1 of each calendar year, the budget agency
6463	6463	18 shall certify to the department of local government finance and the
6464	6464	19 county auditor of each adopting county
6465	6465	20 (1) the amount determined under section sections 4 and 4.1 of
6466	6466	21 this chapter. and
6467	6467	22 (2) the amount of interest in the county's account that has accrued
6468	6468	23 and has not been included in a certification made in a preceding
6469	6469	24 year.
6470	6470	25 The amount certified is the county's certified distribution for the
6471	6471	26 immediately succeeding calendar year. The amount certified shall be
6472	6472	27 adjusted, as necessary, under sections 6, 7, and 8 6 and 7 of this
6473	6473	28 chapter. Subject to subsection (d), (b), not later than fifteen (15) days
6474	6474	29 thirty (30) days after receiving the amount of the certified distribution,
6475	6475	30 the department of local government finance shall determine for each
6476	6476	31 taxing unit and notify the county auditor of the certified amount of
6477	6477	32 property tax credits, school distributions, public safety revenue,
6478	6478	33 economic development revenue, certified shares, and special purpose
6479	6479	34 revenue that will be distributed to the taxing unit under this chapter
6480	6480	35 during the ensuing calendar year. Not later than thirty (30) days after
6481	6481	36 receiving the department's estimate, the county auditor shall notify each
6482	6482	37 taxing unit of the certified amounts for the taxing unit.
6483	6483	38 (c) This subsection applies to Lake County. When the department
6484	6484	39 of local government finance notifies the county auditor of the estimated
6485	6485	40 amount of property tax credits, school distributions, public safety
6486	6486	41 revenue, economic development revenue, certified shares, and special
6487	6487	42 purpose revenue that will be distributed to the taxing unit under this
6488	6488	2025 IN 1402—LS 7150/DI 120 150
6489	6489	1 chapter during the ensuing calendar year, the department of local
6490	6490	2 government finance shall also determine the amount of additional
6491	6491	3 revenue allocated for economic development purposes that will be
6492	6492	4 distributed to each civil taxing unit, reduced by an amount that is equal
6493	6493	5 to the following percentages of the tax revenue that would otherwise be
6494	6494	6 allocated for economic development purposes and distributed to the
6495	6495	7 civil taxing unit:
6496	6496	8 (1) For Lake County, an amount equal to twenty-five percent
6497	6497	9 (25%).
6498	6498	10 (2) For Crown Point, an amount equal to ten percent (10%).
6499	6499	11 (3) For Dyer, an amount equal to fifteen percent (15%).
6500	6500	12 (4) For Gary, an amount equal to seven and five-tenths percent
6501	6501	13 (7.5%).
6502	6502	14 (5) For Hammond, an amount equal to fifteen percent (15%).
6503	6503	15 (6) For Highland, an amount equal to twelve percent (12%).
6504	6504	16 (7) For Hobart, an amount equal to eighteen percent (18%).
6505	6505	17 (8) For Lake Station, an amount equal to twenty percent (20%).
6506	6506	18 (9) For Lowell, an amount equal to fifteen percent (15%).
6507	6507	19 (10) For Merrillville, an amount equal to twenty-two percent
6508	6508	20 (22%).
6509	6509	21 (11) For Munster, an amount equal to thirty-four percent (34%).
6510	6510	22 (12) For New Chicago, an amount equal to one percent (1%).
6511	6511	23 (13) For Schererville, an amount equal to ten percent (10%).
6512	6512	24 (14) For Schneider, an amount equal to twenty percent (20%).
6513	6513	25 (15) For Whiting, an amount equal to twenty-five percent (25%).
6514	6514	26 (16) For Winfield, an amount equal to fifteen percent (15%).
6515	6515	27 The department of local government finance shall notify the county
6516	6516	28 auditor of the amounts of the reductions and the remaining amounts to
6517	6517	29 be distributed.
6518	6518	30 (d) (b) This subsection applies to Lake County. When the
6519	6519	31 department of local government finance notifies the county auditor of
6520	6520	32 the certified amount of property tax credits, school distributions, public
6521	6521	33 safety revenue, economic development revenue, certified shares, and
6522	6522	34 special purpose revenue that will be distributed to the taxing unit under
6523	6523	35 this chapter during the ensuing calendar year, the department of local
6524	6524	36 government finance shall also determine the amount of additional
6525	6525	37 revenue general purpose revenue allocated for economic development
6526	6526	38 purposes that will be distributed to each civil taxing unit, reduced by
6527	6527	39 an amount that is equal to the following percentages of the tax revenue
6528	6528	40 that would otherwise be allocated for economic development purposes
6529	6529	41 and distributed to the civil taxing unit:
6530	6530	42 (1) For Lake County, an amount equal to twenty-five percent
6531	6531	2025 IN 1402—LS 7150/DI 120 151
6532	6532	1 (25%).
6533	6533	2 (2) For Crown Point, an amount equal to ten percent (10%).
6534	6534	3 (3) For Dyer, an amount equal to fifteen percent (15%).
6535	6535	4 (4) For Gary, an amount equal to seven and five-tenths percent
6536	6536	5 (7.5%).
6537	6537	6 (5) For Hammond, an amount equal to fifteen percent (15%).
6538	6538	7 (6) For Highland, an amount equal to twelve percent (12%).
6539	6539	8 (7) For Hobart, an amount equal to eighteen percent (18%).
6540	6540	9 (8) For Lake Station, an amount equal to twenty percent (20%).
6541	6541	10 (9) For Lowell, an amount equal to fifteen percent (15%).
6542	6542	11 (10) For Merrillville, an amount equal to twenty-two percent
6543	6543	12 (22%).
6544	6544	13 (11) For Munster, an amount equal to thirty-four percent (34%).
6545	6545	14 (12) For New Chicago, an amount equal to one percent (1%).
6546	6546	15 (13) For Schererville, an amount equal to ten percent (10%).
6547	6547	16 (14) For Schneider, an amount equal to twenty percent (20%).
6548	6548	17 (15) For Whiting, an amount equal to twenty-five percent (25%).
6549	6549	18 (16) For Winfield, an amount equal to fifteen percent (15%).
6550	6550	19 The department of local government finance shall notify the county
6551	6551	20 auditor of the remaining amounts to be distributed and the amounts of
6552	6552	21 the reductions that will be withheld under IC 6-3.6-11-5.5.
6553	6553	22 SECTION 139. IC 6-3.6-9-6, AS ADDED BY P.L.243-2015,
6554	6554	23 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6555	6555	24 JULY 1, 2026]: Sec. 6. The budget agency shall certify an amount less
6556	6556	25 than the amount determined under section 5(b) 5(a) of this chapter if
6557	6557	26 the budget agency determines that the reduced distribution is necessary
6558	6558	27 to offset overpayments made in a calendar year before the calendar year
6559	6559	28 of the distribution. The budget agency may reduce the amount of the
6560	6560	29 certified distribution over several calendar years so that any
6561	6561	30 overpayments are offset over several years rather than in one (1) lump
6562	6562	31 sum.
6563	6563	32 SECTION 140. IC 6-3.6-9-7, AS ADDED BY P.L.243-2015,
6564	6564	33 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6565	6565	34 JULY 1, 2026]: Sec. 7. (a) The budget agency shall adjust the certified
6566	6566	35 distribution of a county to correct for any clerical or mathematical
6567	6567	36 errors made in any previous certification under this section. The budget
6568	6568	37 agency may reduce the amount of the certified distribution over several
6569	6569	38 calendar years so that any adjustment under this subsection is offset
6570	6570	39 over several years rather than in one (1) lump sum.
6571	6571	40 (b) The budget agency may not reduce, adjust, or modify a
6572	6572	41 certified distribution of a county after it has been presented as part
6573	6573	42 of the report to the budget committee for the immediately
6574	6574	2025 IN 1402—LS 7150/DI 120 152
6575	6575	1 succeeding calendar year under section 21 of this chapter, except
6576	6576	2 in the case of clerical and mathematical errors.
6577	6577	3 SECTION 141. IC 6-3.6-9-8 IS REPEALED [EFFECTIVE JULY
6578	6578	4 1, 2026]. Sec. 8. This section applies to a county that imposes,
6579	6579	5 increases, decreases, or rescinds a tax or tax rate under this article
6580	6580	6 before November 1 in the same calendar year in which the budget
6581	6581	7 agency makes a certification under this section. The budget agency
6582	6582	8 shall adjust the certified distribution of a county to provide for a
6583	6583	9 distribution in the immediately following calendar year and in each
6584	6584	10 calendar year thereafter. The budget agency shall provide for a full
6585	6585	11 transition to certification of distributions as provided in section 4(1)
6586	6586	12 through 4(2) of this chapter in the manner provided in section 6 of this
6587	6587	13 chapter. If the county imposes, increases, decreases, or rescinds a tax
6588	6588	14 or tax rate under this article after the date for which a certification
6589	6589	15 under section 5(b) of this chapter is based, the budget agency shall
6590	6590	16 adjust the certified distribution of the county after October 1 and before
6591	6591	17 December 1 of the calendar year. The adjustment must reflect any other
6592	6592	18 adjustment required under sections 6 and 7 of this chapter. The
6593	6593	19 adjusted certification shall be treated as the county's certified
6594	6594	20 distribution for the immediately succeeding calendar year. The budget
6595	6595	21 agency shall certify the adjusted certified distribution to the county
6596	6596	22 auditor for the county and provide the county council with an
6597	6597	23 informative summary of the calculations that revises the informative
6598	6598	24 summary provided in section 9 of this chapter and reflects the changes
6599	6599	25 made in the adjustment.
6600	6600	26 SECTION 142. IC 6-3.6-9-8.5 IS REPEALED [EFFECTIVE JULY
6601	6601	27 1, 2026]. Sec. 8.5. (a) The budget agency shall before February 1,
6602	6602	28 2018, transfer to the state general fund from each county's trust account
6603	6603	29 established under IC 6-3.6 an amount equal to:
6604	6604	30 (1) the amount of the county's certified distribution under IC 6-3.6
6605	6605	31 that is allocated to certified shares under IC 6-3.6-6 for calendar
6606	6606	32 year 2017; multiplied by
6607	6607	33 (2) five-tenths of one percent (0.5%);
6608	6608	34 to reimburse the state general fund for expenditures related to the
6609	6609	35 department's information technology modernization project.
6610	6610	36 (b) To the extent that the balance in a county's trust account is
6611	6611	37 insufficient for the budget agency to make the entire amount of the
6612	6612	38 transfer required under subsection (a) before February 1, 2018, the
6613	6613	39 budget agency shall make any remaining part of the required transfer
6614	6614	40 from the county's trust account in subsequent years on a schedule
6615	6615	41 determined by the budget agency until the entire amount of the
6616	6616	42 required transfer has been made.
6617	6617	2025 IN 1402—LS 7150/DI 120 153
6618	6618	1 SECTION 143. IC 6-3.6-9-9, AS AMENDED BY P.L.257-2019,
6619	6619	2 SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6620	6620	3 JULY 1, 2026]: Sec. 9. The budget agency shall provide the adopting
6621	6621	4 body with an informative summary of the calculations used to
6622	6622	5 determine the certified distribution. The summary of calculations must
6623	6623	6 include:
6624	6624	7 (1) the amount reported on individual income tax returns
6625	6625	8 processed by the department during the previous fiscal year;
6626	6626	9 (2) adjustments for over distributions in prior years; and
6627	6627	10 (3) adjustments for clerical or mathematical errors in prior years.
6628	6628	11 and
6629	6629	12 (4) adjustments for tax rate changes.
6630	6630	13 SECTION 144. IC 6-3.6-9-10, AS AMENDED BY P.L.137-2024,
6631	6631	14 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6632	6632	15 JULY 1, 2026]: Sec. 10. The budget agency shall also certify
6633	6633	16 information concerning the part of the certified distribution that is
6634	6634	17 attributable to each of the following:
6635	6635	18 (1) The tax rate imposed under IC 6-3.6-5 (before its expiration).
6636	6636	19 This subdivision expires July 1, 2027.
6637	6637	20 (2) The tax rate imposed under IC 6-3.6-6, separately stating:
6638	6638	21 (A) the part of the distribution attributable to a tax rate
6639	6639	22 imposed under IC 6-3.6-6-2.5 (before its repeal);
6640	6640	23 (B) the part of the distribution attributable to a tax rate
6641	6641	24 imposed under IC 6-3.6-6-2.6 (before its repeal); and
6642	6642	25 (C) the part of the distribution attributable to a tax rate
6643	6643	26 imposed under IC 6-3.6-6-2.7 (before its repeal);
6644	6644	27 (D) the part of the distribution attributable to a tax rate
6645	6645	28 imposed under IC 6-3.6-6-2.8 (before its repeal); and
6646	6646	29 (E) the part of the distribution attributable to a tax rate
6647	6647	30 imposed under IC 6-3.6-6-2.9 (before its repeal).
6648	6648	31 (3) Each tax rate imposed under IC 6-3.6-7.
6649	6649	32 (4) In the case of Marion County, the local income taxes paid by
6650	6650	33 local taxpayers described in IC 6-3.6-2-13(3) (before January 1,
6651	6651	34 2027) or IC 6-3.6-2-13(2) (after December 31, 2026).
6652	6652	35 The amount certified shall be adjusted to reflect any adjustment in the
6653	6653	36 certified distribution under this chapter.
6654	6654	37 SECTION 145. IC 6-3.6-9-11, AS AMENDED BY P.L.197-2016,
6655	6655	38 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6656	6656	39 JULY 1, 2026]: Sec. 11. The information described in sections 9 and
6657	6657	40 10 of this chapter must be certified to the county auditor, to the fiscal
6658	6658	41 officer of each taxing unit in the county, and to the department of local
6659	6659	42 government finance not later than the later of the following:
6660	6660	2025 IN 1402—LS 7150/DI 120 154
6661	6661	1 (1) October 1 of each calendar year.
6662	6662	2 (2) Thirty (30) days after the adopting body certifies a new rate to
6663	6663	3 the budget agency.
6664	6664	4 SECTION 146. IC 6-3.6-9-12, AS ADDED BY P.L.243-2015,
6665	6665	5 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6666	6666	6 JULY 1, 2026]: Sec. 12. One-twelfth (1/12) of each adopting county's
6667	6667	7 certified distribution for a calendar year shall be distributed:
6668	6668	8 (1) before January 1, 2027, from its trust account established
6669	6669	9 under this chapter; and
6670	6670	10 (2) after December 31, 2026, from the local income tax
6671	6671	11 holding account established under this chapter;
6672	6672	12 to the appropriate county treasurer on the first regular business day of
6673	6673	13 each month of that calendar year.
6674	6674	14 SECTION 147. IC 6-3.6-9-13, AS AMENDED BY P.L.9-2024,
6675	6675	15 SECTION 192, IS AMENDED TO READ AS FOLLOWS
6676	6676	16 [EFFECTIVE JULY 1, 2026]: Sec. 13. (a) All distributions from a trust
6677	6677	17 account established under this chapter shall be made by warrants issued
6678	6678	18 by the state comptroller to the treasurer of state ordering the
6679	6679	19 appropriate payments.
6680	6680	20 (b) This section expires December 31, 2026.
6681	6681	21 SECTION 148. IC 6-3.6-9-14 IS REPEALED [EFFECTIVE JULY
6682	6682	22 1, 2026]. Sec. 14. Before November 2 of each year, the budget agency
6683	6683	23 shall submit a report to each county auditor indicating the balance in
6684	6684	24 the county's trust account as of the cutoff date set by the budget agency.
6685	6685	25 SECTION 149. IC 6-3.6-9-15 IS REPEALED [EFFECTIVE
6686	6686	26 JANUARY 1, 2027]. Sec. 15. (a) If the budget agency determines that
6687	6687	27 the balance in a county trust account exceeds fifteen percent (15%) of
6688	6688	28 the certified distributions to be made to the county in the determination
6689	6689	29 year, the budget agency shall make a supplemental distribution to the
6690	6690	30 county from the county's trust account. The budget agency shall use the
6691	6691	31 trust account balance as of December 31 of the year that precedes the
6692	6692	32 determination year by two (2) years (referred to as the "trust account
6693	6693	33 balance year" in this section).
6694	6694	34 (b) A supplemental distribution described in subsection (a) must be:
6695	6695	35 (1) made at the same time as the determinations are provided to
6696	6696	36 the county auditor under subsection (d)(3); and
6697	6697	37 (2) allocated in the same manner as certified distributions for the
6698	6698	38 purposes described in this article.
6699	6699	39 (c) The amount of a supplemental distribution described in
6700	6700	40 subsection (a) is equal to the amount by which:
6701	6701	41 (1) the balance in the county trust account; minus
6702	6702	42 (2) the amount of any supplemental or special distribution that has
6703	6703	2025 IN 1402—LS 7150/DI 120 155
6704	6704	1 not yet been accounted for in the last known balance of the
6705	6705	2 county's trust account;
6706	6706	3 exceeds fifteen percent (15%) of the certified distributions to be made
6707	6707	4 to the county in the determination year.
6708	6708	5 (d) For a county that qualifies for a supplemental distribution under
6709	6709	6 this section in a year, the following apply:
6710	6710	7 (1) Before February 15, the budget agency shall update the
6711	6711	8 information described in section 9 of this chapter to include the
6712	6712	9 excess account balances to be distributed under this section.
6713	6713	10 (2) Before May 2, the budget agency shall provide the amount of
6714	6714	11 the supplemental distribution for the county to the department of
6715	6715	12 local government finance and to the county auditor.
6716	6716	13 (3) The department of local government finance shall determine
6717	6717	14 for the county and each taxing unit within the county:
6718	6718	15 (A) the amount and allocation of the supplemental distribution
6719	6719	16 attributable to the taxes that were imposed as of December 31
6720	6720	17 of the trust account balance year, including any specific
6721	6721	18 distributions for that year; and
6722	6722	19 (B) the amount of the allocation for each of the purposes set
6723	6723	20 forth in this article, using the allocation percentages in effect
6724	6724	21 in the trust account balance year.
6725	6725	22 The department of local government finance shall provide these
6726	6726	23 determinations to the county auditor before May 16 of the
6727	6727	24 determination year.
6728	6728	25 (4) Before June 1, the county auditor shall distribute to each
6729	6729	26 taxing unit the amount of the supplemental distribution that is
6730	6730	27 allocated to the taxing unit under subdivision (3). However, for a
6731	6731	28 county with a former tax to provide for a levy freeze under
6732	6732	29 IC 6-3.6-11-1, the supplemental distribution shall first be
6733	6733	30 distributed as determined in any resolution adopted under
6734	6734	31 IC 6-3.6-11-1(d).
6735	6735	32 For determinations before 2019, the tax rates in effect under and the
6736	6736	33 allocation methods specified in the former income tax laws shall be
6737	6737	34 used for the determinations under subdivision (3).
6738	6738	35 (e) For any part of a supplemental distribution attributable to
6739	6739	36 property tax credits under a former income tax or IC 6-3.6-5, the
6740	6740	37 adopting body for the county may allocate the supplemental
6741	6741	38 distribution to property tax credits for not more than the three (3) years
6742	6742	39 after the year the supplemental distribution is received.
6743	6743	40 (f) Any income earned on money held in a trust account established
6744	6744	41 for a county under this chapter shall be deposited in that trust account.
6745	6745	42 SECTION 150. IC 6-3.6-9-16, AS ADDED BY P.L.243-2015,
6746	6746	2025 IN 1402—LS 7150/DI 120 156
6747	6747	1 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6748	6748	2 JULY 1, 2026]: Sec. 16. Upon receipt, each monthly payment of a
6749	6749	3 county's certified distribution or supplemental distribution shall be
6750	6750	4 allocated and distributed to the appropriate entities in accordance with
6751	6751	5 this article and the allocation ordinances adopted under this article.
6752	6752	6 SECTION 151. IC 6-3.6-9-17.5 IS ADDED TO THE INDIANA
6753	6753	7 CODE AS A NEW SECTION TO READ AS FOLLOWS
6754	6754	8 [EFFECTIVE JULY 1, 2026]: Sec. 17.5. (a) As used in this section,
6755	6755	9 "trust account" refers to a trust account maintained for a county
6756	6756	10 under this chapter before January 1, 2027.
6757	6757	11 (b) Before December 1, 2026, the budget agency shall determine
6758	6758	12 the greater of zero (0) or the result of the difference between:
6759	6759	13 (1) the county's trust account balance as of December 31,
6760	6760	14 2025; minus
6761	6761	15 (2) the county's certified distribution amount for 2027;
6762	6762	16 and distribute that amount as set forth in this section.
6763	6763	17 (c) Before May 1, 2027, and before May 1 of each calendar year
6764	6764	18 through 2031, the budget agency shall make an annual special
6765	6765	19 distribution to each county equal to twenty percent (20%) of the
6766	6766	20 amount determined for the county under subsection (b).
6767	6767	21 (d) Before May 1, 2027, and before May 1 of each calendar year
6768	6768	22 through 2031, the budget agency and the department of local
6769	6769	23 government finance shall jointly determine and provide to the
6770	6770	24 county auditor the following:
6771	6771	25 (1) The county's trust account balance.
6772	6772	26 (2) Each taxing unit's allocation amount as determined under
6773	6773	27 this article.
6774	6774	28 (e) Before June 1, 2027, and before June 1 of each calendar year
6775	6775	29 through 2031, the county auditor shall distribute to each taxing
6776	6776	30 unit an amount equal to the taxing unit's allocation amount.
6777	6777	31 (f) Money distributed to a county, city, or town may be used by
6778	6778	32 the county, city, or town for any of the purposes of the county, city,
6779	6779	33 or town.
6780	6780	34 (g) After December 31, 2026, the county's certified distribution
6781	6781	35 amount for 2027 shall be maintained in the accounting for the
6782	6782	36 county under section 21 of this chapter and transferred as set forth
6783	6783	37 in section 21 of this chapter.
6784	6784	38 (h) This section expires January 1, 2032.
6785	6785	39 SECTION 152. IC 6-3.6-9-20 IS ADDED TO THE INDIANA
6786	6786	40 CODE AS A NEW SECTION TO READ AS FOLLOWS
6787	6787	41 [EFFECTIVE JULY 1, 2026]: Sec. 20. (a) The local income tax
6788	6788	42 holding account is established within the state general fund for the
6789	6789	2025 IN 1402—LS 7150/DI 120 157
6790	6790	1 purposes of this chapter. The budget agency shall administer the
6791	6791	2 account. The account consists of the following:
6792	6792	3 (1) Money transferred to the account under section 21 of this
6793	6793	4 chapter.
6794	6794	5 (2) Money transferred to the account from any other source.
6795	6795	6 (3) Interest that accrues from money in the account.
6796	6796	7 (b) The treasurer of state shall invest the money in the account
6797	6797	8 not currently needed for the purposes of the account in the same
6798	6798	9 manner as other public funds may be invested.
6799	6799	10 (c) Money in the account is continuously appropriated for the
6800	6800	11 purposes of this chapter.
6801	6801	12 (d) Money in the account at the end of a state fiscal year does
6802	6802	13 not revert to the state general fund.
6803	6803	14 (e) Money transferred to the account shall be distributed and
6804	6804	15 allocated as set forth in this chapter.
6805	6805	16 SECTION 153. IC 6-3.6-9-21 IS ADDED TO THE INDIANA
6806	6806	17 CODE AS A NEW SECTION TO READ AS FOLLOWS
6807	6807	18 [EFFECTIVE JULY 1, 2026]: Sec. 21. (a) The budget agency shall
6808	6808	19 maintain an accounting for each county imposing a tax based on
6809	6809	20 annual returns filed by or for county taxpayers. Beginning after
6810	6810	21 December 31, 2026, any undistributed amounts so accounted shall
6811	6811	22 be held for purposes of the local income tax holding account.
6812	6812	23 (b) After December 1, but before December 31 of each year, the
6813	6813	24 budget agency shall present to the budget committee a report of the
6814	6814	25 following:
6815	6815	26 (1) An estimate of the monthly certified distribution amounts
6816	6816	27 for the immediately succeeding calendar year.
6817	6817	28 (2) A description of the method used to determine the monthly
6818	6818	29 estimates under subdivision (1).
6819	6819	30 (3) The balance in the local income tax holding account, which
6820	6820	31 shall include an accounting of the undistributed amounts held
6821	6821	32 for each county under subsection (a).
6822	6822	33 (c) Beginning in 2027, and in each calendar year thereafter, the
6823	6823	34 budget agency shall each month transfer to the local income tax
6824	6824	35 holding account the amount determined for the month under
6825	6825	36 subsection (b)(1) for distribution under this chapter.
6826	6826	37 SECTION 154. IC 6-3.6-10-2, AS AMENDED BY P.L.247-2017,
6827	6827	38 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6828	6828	39 JANUARY 1, 2027]: Sec. 2. A county, city, or town may use revenue
6829	6829	40 allocated for economic development purposes under IC 6-3.6-6-9
6830	6830	41 IC 6-3.6-6 for any combination of the following purposes:
6831	6831	42 (1) To pay all or a part of the interest owed by a private developer
6832	6832	2025 IN 1402—LS 7150/DI 120 158
6833	6833	1 or user on a loan extended by a financial institution or other
6834	6834	2 lender to the developer or user if the proceeds of the loan are or
6835	6835	3 are to be used to finance an economic development project.
6836	6836	4 (2) For the retirement of bonds for economic development
6837	6837	5 projects.
6838	6838	6 (3) For leases or for leases or bonds entered into or issued before
6839	6839	7 the date the county economic development income tax (IC 6-3.5-7
6840	6840	8 repealed) was imposed if the purpose of the lease or bonds would
6841	6841	9 have qualified as a purpose under this article at the time the lease
6842	6842	10 was entered into or the bonds were issued.
6843	6843	11 (4) The construction or acquisition of, or remedial action with
6844	6844	12 respect to, a capital project for which the unit is empowered to
6845	6845	13 issue general obligation bonds or establish a fund under any
6846	6846	14 statute listed in IC 6-1.1-18.5-9.8.
6847	6847	15 (5) The retirement of bonds issued under any provision of Indiana
6848	6848	16 law for a capital project.
6849	6849	17 (6) The payment of lease rentals under any statute for a capital
6850	6850	18 project.
6851	6851	19 (7) Contract payments to a nonprofit corporation whose primary
6852	6852	20 corporate purpose is to assist government in planning and
6853	6853	21 implementing economic development projects.
6854	6854	22 (8) Operating expenses of a governmental entity that plans or
6855	6855	23 implements economic development projects.
6856	6856	24 (9) Funding of a revolving fund established under IC 5-1-14-14.
6857	6857	25 (10) For a regional venture capital fund or a local venture capital
6858	6858	26 fund.
6859	6859	27 (11) For any lawful purpose for which money in any of its other
6860	6860	28 funds may be used.
6861	6861	29 SECTION 155. IC 6-3.6-10-3, AS ADDED BY P.L.243-2015,
6862	6862	30 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6863	6863	31 JANUARY 1, 2027]: Sec. 3. (a) The fiscal body of a county, city, or
6864	6864	32 town may issue bonds payable from revenue under IC 6-3.6-6. The
6865	6865	33 bonds must be for economic development projects.
6866	6866	34 (b) The fiscal body of a county, city, or town may issue bonds
6867	6867	35 payable from revenue described in section 2 of this chapter for any
6868	6868	36 capital project for which the fiscal body is authorized to issue general
6869	6869	37 obligation bonds. The bonds issued under this section may be payable
6870	6870	38 from the tax if the county option income tax (IC 6-3.5-6 repealed), the
6871	6871	39 county adjusted gross income tax (IC 6-3.5-1.1 repealed), or a tax
6872	6872	40 under IC 6-3.6-6 is also in effect in the county at the time the bonds are
6873	6873	41 issued.
6874	6874	42 (c) If there are bonds outstanding that have been issued under this
6875	6875	2025 IN 1402—LS 7150/DI 120 159
6876	6876	1 section, or leases in effect under section 4 of this chapter, the adopting
6877	6877	2 body may not reduce the tax imposed under IC 6-3.6-6, or an allocation
6878	6878	3 under IC 6-3.6-6-9, IC 6-3.6-6, or certified shares general purpose
6879	6879	4 revenue pledged to repay bonds, as appropriate, below a rate that
6880	6880	5 would produce one and twenty-five hundredths (1.25) times the total
6881	6881	6 of the highest annual debt service on the bonds to their final maturity,
6882	6882	7 plus the highest annual lease payments, unless:
6883	6883	8 (1) the body that imposed a tax under IC 6-3.6-6; or
6884	6884	9 (2) any city, town, or county;
6885	6885	10 pledges all or a part of its certified shares general purpose revenue for
6886	6886	11 the life of the bonds or the term of the lease, in an amount that is
6887	6887	12 sufficient, when combined with the amount pledged by the city, town,
6888	6888	13 or county that issued the bonds, to produce one and twenty-five
6889	6889	14 hundredths (1.25) times the total of the highest outstanding annual debt
6890	6890	15 service plus the highest annual lease payments.
6891	6891	16 (d) For purposes of subsection (c), the determination of a tax rate
6892	6892	17 sufficient to produce one and twenty-five hundredths (1.25) times the
6893	6893	18 total of the highest outstanding annual debt service plus the highest
6894	6894	19 annual lease payments must be based on an average of the immediately
6895	6895	20 preceding three (3) years tax collections, if the tax has been imposed
6896	6896	21 for the last preceding three (3) years. If the tax has not been imposed
6897	6897	22 for the last preceding three (3) years, the body that imposed the tax may
6898	6898	23 not reduce the rate below a rate that would produce one and twenty-five
6899	6899	24 hundredths (1.25) times the total of the highest annual debt service,
6900	6900	25 plus the highest annual lease payments, based upon a study by a
6901	6901	26 qualified public accountant or financial advisor.
6902	6902	27 (e) IC 6-1.1-20 does not apply to the issuance of bonds under this
6903	6903	28 section.
6904	6904	29 (f) Bonds issued under this section may be sold at a public sale in
6905	6905	30 accordance with IC 5-1-11 or may be sold at a negotiated sale.
6906	6906	31 (g) After a sale of bonds under this section, the county auditor shall
6907	6907	32 prepare a debt service schedule for the bonds.
6908	6908	33 (h) The general assembly covenants that it will not repeal or amend
6909	6909	34 this article in a manner that would adversely affect owners of
6910	6910	35 outstanding bonds issued, or payment of any lease rentals due, under
6911	6911	36 this section.
6912	6912	37 SECTION 156. IC 6-3.6-10-5, AS ADDED BY P.L.243-2015,
6913	6913	38 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6914	6914	39 JANUARY 1, 2027]: Sec. 5. Notwithstanding any other law and
6915	6915	40 subject to IC 6-3.6-6-18(b), if a civil taxing unit desires to issue
6916	6916	41 obligations, or enter into leases, payable wholly or in part by the taxes
6917	6917	42 imposed under IC 6-3.6-6 or IC 6-3.6-7, (but not IC 6-3.6-5), the
6918	6918	2025 IN 1402—LS 7150/DI 120 160
6919	6919	1 obligations of the civil taxing unit or any lessor may be sold at public
6920	6920	2 sale in accordance with IC 5-1-11 or at negotiated sale.
6921	6921	3 SECTION 157. IC 6-3.6-10-6, AS ADDED BY P.L.243-2015,
6922	6922	4 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6923	6923	5 JANUARY 1, 2027]: Sec. 6. (a) A pledge of revenues from a tax
6924	6924	6 imposed under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5 before its
6925	6925	7 expiration) is enforceable in accordance with IC 5-1-14.
6926	6926	8 (b) With respect to obligations for which a pledge has been made
6927	6927	9 under IC 6-3.6-6 or IC 6-3.6-7 (but not IC 6-3.6-5 before its
6928	6928	10 expiration), the general assembly covenants with the county and the
6929	6929	11 purchasers or owners of those obligations that this article will not be
6930	6930	12 repealed or amended in any manner that will adversely affect the tax
6931	6931	13 collected under this article as long as the principal of or interest on
6932	6932	14 those obligations is unpaid.
6933	6933	15 SECTION 158. IC 6-3.6-11-1 IS REPEALED [EFFECTIVE
6934	6934	16 JANUARY 1, 2027]. Sec. 1. (a) This section applies to any county that
6935	6935	17 imposed a former tax to provide for a levy freeze.
6936	6936	18 (b) The tax rate used to provide for a levy freeze shall be part of the
6937	6937	19 tax rate under IC 6-3.6-6. The maximum tax rate that may be applied
6938	6938	20 for a levy freeze is one percent (1%). The levy freeze tax rate may be
6939	6939	21 increased but not decreased or rescinded unless an adopting body
6940	6940	22 adopts a resolution to request approval from the department of local
6941	6941	23 government finance to lower the levy freeze tax rate.
6942	6942	24 (c) The department of local government finance shall approve a
6943	6943	25 lower levy freeze tax rate if it finds that the lower rate, in addition to:
6944	6944	26 (1) the supplemental distribution as determined in a resolution
6945	6945	27 adopted under subsection (d); and
6946	6946	28 (2) the amount in the stabilization fund established under
6947	6947	29 IC 6-3.5-1.1-24 (repealed) or IC 6-3.5-6-30 (repealed), as
6948	6948	30 applicable;
6949	6949	31 would fund the levy freeze dollar amount (the total amount of foregone
6950	6950	32 maximum levy increases for all taxing units for all years). If the
6951	6951	33 department approves a lower levy freeze tax rate, the adopting body
6952	6952	34 must adopt an ordinance to lower the levy freeze tax rate before the
6953	6953	35 lower rate may take effect. The county shall provide the department
6954	6954	36 with a determination of the amount in the stabilization funds for
6955	6955	37 purposes of this subsection.
6956	6956	38 (d) A county may adopt a resolution to require that a supplemental
6957	6957	39 distribution amount to be distributed under IC 6-3.6-9-15(d)(4) shall
6958	6958	40 first be used to lower the levy freeze tax rate in subsection (c). If a
6959	6959	41 resolution is adopted, the supplemental distribution under
6960	6960	42 IC 6-3.6-9-15(d)(4) shall first be used to lower a county's levy freeze
6961	6961	2025 IN 1402—LS 7150/DI 120 161
6962	6962	1 tax rate and any additional supplemental distribution calculated that is
6963	6963	2 above the amount needed to lower the levy freeze tax rate shall be
6964	6964	3 distributed to each taxing unit as provided under IC 6-3.6-9-15(d)(4).
6965	6965	4 (e) The revenue from the tax rate shall continue to be applied under
6966	6966	5 this article as it was applied under the former tax, including the use of
6967	6967	6 a stabilization fund.
6968	6968	7 (f) The distributions of income tax revenue attributable to a levy
6969	6969	8 freeze tax rate shall be made before allocating or distributing the
6970	6970	9 remaining revenue under IC 6-3.6-6 or applying the property tax credits
6971	6971	10 funded by a tax rate under IC 6-3.6-5.
6972	6972	11 SECTION 159. IC 6-3.6-11-3, AS AMENDED BY P.L.197-2016,
6973	6973	12 SECTION 70, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6974	6974	13 JULY 1, 2026]: Sec. 3. (a) This section applies to Lake County's
6975	6975	14 categorizations, allocations, and distributions under IC 6-3.6-5 (before
6976	6976	15 its expiration).
6977	6977	16 (b) The rate under the former tax in Lake County that was used for
6978	6978	17 any of the following shall be categorized under IC 6-3.6-5 (before its
6979	6979	18 expiration), and the Lake County council may adopt an ordinance
6980	6980	19 providing that the revenue from the tax rate under this section may be
6981	6981	20 used for any of the following:
6982	6982	21 (1) To reduce all property tax levies imposed by the county by the
6983	6983	22 granting of property tax replacement credits against those
6984	6984	23 property tax levies.
6985	6985	24 (2) To provide local property tax replacement credits in Lake
6986	6986	25 County in the following manner:
6987	6987	26 (A) The tax revenue under this section that is collected from
6988	6988	27 taxpayers within a particular municipality in Lake County (as
6989	6989	28 determined by the department of state revenue based on the
6990	6990	29 department's best estimate) shall be used only to provide a
6991	6991	30 local property tax credit against property taxes imposed by that
6992	6992	31 municipality.
6993	6993	32 (B) The tax revenue under this section that is collected from
6994	6994	33 taxpayers within the unincorporated area of Lake County (as
6995	6995	34 determined by the department of state revenue) shall be used
6996	6996	35 only to provide a local property tax credit against property
6997	6997	36 taxes imposed by the county. The local property tax credit for
6998	6998	37 the unincorporated area of Lake County shall be available only
6999	6999	38 to those taxpayers within the unincorporated area of the
7000	7000	39 county.
7001	7001	40 (3) To provide property tax credits in the following manner:
7002	7002	41 (A) Sixty percent (60%) of the tax revenue shall be used as
7003	7003	42 provided in subdivision (2).
7004	7004	2025 IN 1402—LS 7150/DI 120 162
7005	7005	1 (B) Forty percent (40%) of the tax revenue shall be used to
7006	7006	2 provide property tax replacement credits against property tax
7007	7007	3 levies of the county and each township and municipality in the
7008	7008	4 county. The percentage of the tax revenue distributed under
7009	7009	5 this item that shall be used as credits against the county's
7010	7010	6 levies or against a particular township's or municipality's levies
7011	7011	7 is equal to the percentage determined by dividing the
7012	7012	8 population of the county, township, or municipality by the sum
7013	7013	9 of the total population of the county, each township in the
7014	7014	10 county, and each municipality in the county.
7015	7015	11 The Lake County council shall determine whether the credits under
7016	7016	12 subdivision (1), (2), or (3) shall be provided to homesteads, to all
7017	7017	13 qualified residential property, or to all taxpayers. The department of
7018	7018	14 local government finance, with the assistance of the budget agency,
7019	7019	15 shall certify to the county auditor and the fiscal body of the county and
7020	7020	16 each township and municipality in the county the amount of property
7021	7021	17 tax credits under this section. The tax revenue under this section that
7022	7022	18 is used to provide credits under this section shall be treated for all
7023	7023	19 purposes as property tax levies but shall not be considered for purposes
7024	7024	20 of computing the maximum permissible property tax levy under
7025	7025	21 IC 6-1.1-18.5-3 or the credit under IC 6-1.1-20.6.
7026	7026	22 (c) Any ordinance adopted under subsection (b) expires
7027	7027	23 December 31, 2026.
7028	7028	24 (d) This section expires July 1, 2027.
7029	7029	25 SECTION 160. IC 6-3.6-11-4, AS AMENDED BY P.L.247-2017,
7030	7030	26 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7031	7031	27 JANUARY 1, 2027]: Sec. 4. This section applies to the allocation of
7032	7032	28 the tax revenue under IC 6-3.6-6 that is dedicated to public safety and
7033	7033	29 funding for a PSAP (as defined in IC 36-8-16.7-20) that is part of the
7034	7034	30 statewide 911 system (as defined in IC 36-8-16.7-22) and located
7035	7035	31 within the county. as provided in IC 6-3.6-6-8. This tax revenue shall
7036	7036	32 be allocated and distributed to the PSAP before the allocation and
7037	7037	33 distribution to any taxing units of the remaining tax revenue allocated
7038	7038	34 to public safety as provided in IC 6-3.6-6.
7039	7039	35 SECTION 161. IC 6-3.6-11-5.5, AS AMENDED BY P.L.9-2024,
7040	7040	36 SECTION 193, IS AMENDED TO READ AS FOLLOWS
7041	7041	37 [EFFECTIVE JANUARY 1, 2027]: Sec. 5.5. (a) This section applies
7042	7042	38 to Lake County for purposes of categorizations, allocations, and
7043	7043	39 distributions of additional revenue general purpose revenue that is
7044	7044	40 allocated each year for economic development purposes. under
7045	7045	41 IC 6-3.6-6-9 and of certified shares under IC 6-3.6-6. Additional
7046	7046	42 revenue General purpose revenue that is allocated each year for
7047	7047	2025 IN 1402—LS 7150/DI 120 163
7048	7048	1 economic development purposes by a civil taxing unit listed in
7049	7049	2 IC 6-3.6-9-5(d) IC 6-3.6-9-5(b) must first be used to provide funding
7050	7050	3 for a rail project (as defined in IC 36-7.5-1-13.5).
7051	7051	4 (b) Before the state comptroller may make a certified distribution of
7052	7052	5 additional revenue general purpose revenue allocated for economic
7053	7053	6 development purposes, under IC 6-3.6-6-9, the state comptroller shall
7054	7054	7 withhold the total amount determined by the department of local
7055	7055	8 government finance under IC 6-3.6-9-5(d) IC 6-3.6-9-5(b) from the
7056	7056	9 certified distribution allocated to economic development. The amount
7057	7057	10 withheld by the state comptroller under this section shall be paid to the
7058	7058	11 secretary-treasurer of the northwest Indiana regional development
7059	7059	12 authority (IC 36-7.5) before a certified distribution allocated to
7060	7060	13 economic development is made to the county and before the county
7061	7061	14 auditor may otherwise allocate or distribute tax revenue under this
7062	7062	15 article.
7063	7063	16 SECTION 162. IC 6-3.6-11-6, AS AMENDED BY P.L.9-2024,
7064	7064	17 SECTION 194, IS AMENDED TO READ AS FOLLOWS
7065	7065	18 [EFFECTIVE JANUARY 1, 2027]: Sec. 6. (a) This section applies to
7066	7066	19 Lake County, LaPorte County, Porter County, and any municipality in
7067	7067	20 those counties that is a member of the northwest Indiana regional
7068	7068	21 development authority (IC 36-7.5) for purposes of categorizations,
7069	7069	22 allocations, and distributions of additional revenue general purpose
7070	7070	23 revenue that is allocated each year for economic development purposes
7071	7071	24 under IC 6-3.6-6-9. IC 6-3.6-6.
7072	7072	25 (b) This subsection applies only to Lake County. The county or a
7073	7073	26 city described in IC 36-7.5-2-3(b) may use additional revenue general
7074	7074	27 purpose revenue that is allocated each year for economic development
7075	7075	28 purposes under IC 6-3.6-6-9 IC 6-3.6-6 for making transfers required
7076	7076	29 by IC 36-7.5-4-2 or to provide rail project funding under IC 36-7.5-4.5.
7077	7077	30 The additional revenue general purpose revenue allocated for
7078	7078	31 economic development and used to make the transfers required by
7079	7079	32 IC 36-7.5-4-2 or to provide rail project funding shall be paid by the
7080	7080	33 treasurer of state to the treasurer of the northwest Indiana regional
7081	7081	34 development authority before certified distributions are made to the
7082	7082	35 county or any cities or towns in the county. The county or a city or town
7083	7083	36 in the county may use additional revenue that is allocated each year for
7084	7084	37 economic development purposes under IC 6-3.6-6-9 to provide
7085	7085	38 homestead credits in the county, city, or town. The following apply to
7086	7086	39 homestead credits provided under this subsection:
7087	7087	40 (1) The county, city, or town fiscal body must adopt an ordinance
7088	7088	41 authorizing the homestead credits. The ordinance must specify the
7089	7089	42 amount of additional revenue that will be used to provide
7090	7090	2025 IN 1402—LS 7150/DI 120 164
7091	7091	1 homestead credits in the following year.
7092	7092	2 (2) The county, city, or town fiscal body that adopts an ordinance
7093	7093	3 under this subsection must forward a copy of the ordinance to the
7094	7094	4 county auditor and the department of local government finance
7095	7095	5 not more than thirty (30) days after the ordinance is adopted.
7096	7096	6 (3) The homestead credits must be applied uniformly to provide
7097	7097	7 a homestead credit for homesteads in the county, city, or town.
7098	7098	8 (4) The homestead credits shall be treated for all purposes as
7099	7099	9 property tax levies.
7100	7100	10 (5) The homestead credits shall be applied to the net property
7101	7101	11 taxes due on the homestead after the application of all other
7102	7102	12 assessed value deductions or property tax deductions and credits
7103	7103	13 that apply to the amount owed under IC 6-1.1.
7104	7104	14 (6) The state comptroller shall determine the homestead credit
7105	7105	15 percentage for a particular year based on the amount of additional
7106	7106	16 revenue that will be used under this subsection to provide
7107	7107	17 homestead credits in that year.
7108	7108	18 (c) This subsection applies only to LaPorte County as follows:
7109	7109	19 (1) This subsection applies if:
7110	7110	20 (A) the county fiscal body has adopted an ordinance under
7111	7111	21 IC 36-7.5-2-3(d) providing that the county is joining the
7112	7112	22 northwest Indiana regional development authority; and
7113	7113	23 (B) the fiscal body of the city described in IC 36-7.5-2-3(d)
7114	7114	24 has adopted an ordinance under IC 36-7.5-2-3(d) providing
7115	7115	25 that the city is joining the development authority.
7116	7116	26 (2) Additional revenue that is allocated each year for economic
7117	7117	27 development purposes under IC 6-3.6-6-9 may be used by a
7118	7118	28 county or a city described in IC 36-7.5-2-3(d) for making transfers
7119	7119	29 required by IC 36-7.5-4-2. In addition, if the allocation of
7120	7120	30 additional revenue for economic development purposes under
7121	7121	31 IC 6-3.6-6-9 is increased in the county, the first three million five
7122	7122	32 hundred thousand dollars ($3,500,000) of the tax revenue that
7123	7123	33 results each year from the allocation increase shall be used by the
7124	7124	34 county only to make the county's transfer required by
7125	7125	35 IC 36-7.5-4-2 and shall be paid by the treasurer of state to the
7126	7126	36 treasurer of the northwest Indiana regional development authority
7127	7127	37 under IC 36-7.5-4-2 before certified distributions are made to the
7128	7128	38 county or any cities or towns in the county.
7129	7129	39 (3) All of the additional revenue allocated for economic
7130	7130	40 development purposes under IC 6-3.6-6-9 that results each year
7131	7131	41 from an allocation increase described in subdivision (2) and that
7132	7132	42 is in excess of the first three million five hundred thousand dollars
7133	7133	2025 IN 1402—LS 7150/DI 120 165
7134	7134	1 ($3,500,000) must be used by the county and cities and towns in
7135	7135	2 the county for homestead credits under this subsection. The
7136	7136	3 following apply to homestead credits provided under this
7137	7137	4 subsection:
7138	7138	5 (A) The homestead credits must be applied uniformly to
7139	7139	6 provide a homestead credit for homesteads in the county, city,
7140	7140	7 or town.
7141	7141	8 (B) The homestead credits shall be treated for all purposes as
7142	7142	9 property tax levies.
7143	7143	10 (C) The homestead credits shall be applied to the net property
7144	7144	11 taxes due on the homestead after the application of all other
7145	7145	12 assessed value deductions or property tax deductions and
7146	7146	13 credits that apply to the amount owed under IC 6-1.1.
7147	7147	14 (D) The state comptroller shall determine the homestead credit
7148	7148	15 percentage for a particular year based on the amount of
7149	7149	16 additional revenue that will be used under this subdivision to
7150	7150	17 provide homestead credits in that year.
7151	7151	18 (d) This subsection applies only to Porter County. The additional
7152	7152	19 revenue designated each year for economic development purposes
7153	7153	20 under IC 6-3.6-6 shall be allocated and used as follows:
7154	7154	21 (1) First, the revenue attributable to an income tax rate of
7155	7155	22 twenty-five hundredths percent (0.25%) shall be allocated to the
7156	7156	23 county and cities and towns as provided in IC 6-3.6-6-9.
7157	7157	24 (2) Second, the next three million five hundred thousand dollars
7158	7158	25 ($3,500,000) of the revenue shall be used for the county or for
7159	7159	26 eligible municipalities (as defined in IC 36-7.5-1-11.3) in the
7160	7160	27 county, to make transfers as provided in and required under
7161	7161	28 IC 36-7.5-4-2. The additional revenue used to make the transfers
7162	7162	29 as provided in IC 36-7.5-4-2 shall be paid by the treasurer of state
7163	7163	30 to the treasurer of the northwest Indiana regional development
7164	7164	31 authority before certified distributions are made to the county or
7165	7165	32 any taxing unit in the county. If Porter County ceases to be a
7166	7166	33 member of the northwest Indiana regional development authority
7167	7167	34 under IC 36-7.5 but two (2) or more municipalities in the county
7168	7168	35 have become members of the northwest Indiana regional
7169	7169	36 development authority as authorized by IC 36-7.5-2-3(h), the
7170	7170	37 treasurer of state shall continue to transfer this amount to the
7171	7171	38 treasurer of the northwest Indiana regional development authority
7172	7172	39 under IC 36-7.5-4-2.
7173	7173	40 (3) Third, except as provided in IC 36-7.5-3-5, all of the revenue
7174	7174	41 each year that is in excess of the amounts described in
7175	7175	42 subdivisions (1) and (2) must be used by the county and cities and
7176	7176	2025 IN 1402—LS 7150/DI 120 166
7177	7177	1 towns in the county for homestead credits. The following apply to
7178	7178	2 homestead credits provided under this subdivision:
7179	7179	3 (A) The homestead credits must be applied uniformly to
7180	7180	4 provide a homestead credit for homesteads in the county, city,
7181	7181	5 or town.
7182	7182	6 (B) The homestead credits shall be treated for all purposes as
7183	7183	7 property tax levies.
7184	7184	8 (C) The homestead credits shall be applied to the net property
7185	7185	9 taxes due on the homestead after the application of all other
7186	7186	10 assessed value deductions or property tax deductions and
7187	7187	11 credits that apply to the amount owed under IC 6-1.1.
7188	7188	12 (D) The state comptroller shall determine the homestead credit
7189	7189	13 percentage for a particular year based on the amount of
7190	7190	14 additional revenue that will be used under this subdivision to
7191	7191	15 provide homestead credits in that year.
7192	7192	16 (e) (c) A transfer made on behalf of a city, town, or county under
7193	7193	17 this section after December 31, 2018, is to be considered a payment for
7194	7194	18 services provided to residents by a rail project as those services are
7195	7195	19 rendered.
7196	7196	20 (f) (d) A pledge by the northwest Indiana regional development
7197	7197	21 authority of transferred revenue under this section to the payment of
7198	7198	22 bonds, leases, or obligations under this article or IC 5-1.3:
7199	7199	23 (1) constitutes the obligations of the northwest Indiana regional
7200	7200	24 development authority; and
7201	7201	25 (2) does not constitute an indebtedness of:
7202	7202	26 (A) a county or municipality described in this section; or
7203	7203	27 (B) the state;
7204	7204	28 within the meaning or application of any constitutional or
7205	7205	29 statutory provision or limitation.
7206	7206	30 (g) (e) Neither the transfer of revenue nor the pledge of revenue
7207	7207	31 transferred under this section is an impairment of contract within the
7208	7208	32 meaning or application of any constitutional provision or limitation
7209	7209	33 because of the following:
7210	7210	34 (1) The statutes governing local income taxes, including the
7211	7211	35 transferred revenue, have been the subject of legislation annually
7212	7212	36 since 1973, and during that time the statutes have been revised,
7213	7213	37 amended, expanded, limited, and recodified dozens of times.
7214	7214	38 (2) Owners of bonds, leases, or other obligations to which local
7215	7215	39 income tax revenues have been pledged recognize that the
7216	7216	40 regulation of local income taxes has been extensive and
7217	7217	41 consistent.
7218	7218	42 (3) All bonds, leases, or other obligations, due to their essential
7219	7219	2025 IN 1402—LS 7150/DI 120 167
7220	7220	1 contractual nature, are subject to relevant state and federal law
7221	7221	2 that is enacted after the date of a contract.
7222	7222	3 (4) The state has a legitimate interest in assisting the northwest
7223	7223	4 Indiana regional development authority in financing rail projects
7224	7224	5 (as defined in IC 36-7.5-1-13.5).
7225	7225	6 (h) (f) All proceedings had and actions described in this section are
7226	7226	7 valid pledges under IC 5-1-14-4 as of the date of those pledges or
7227	7227	8 actions and are hereby legalized and declared valid if taken before
7228	7228	9 March 15, 2018.
7229	7229	10 SECTION 163. IC 6-3.6-11-7, AS AMENDED BY P.L.9-2024,
7230	7230	11 SECTION 195, IS AMENDED TO READ AS FOLLOWS
7231	7231	12 [EFFECTIVE JANUARY 1, 2027]: Sec. 7. (a) This section applies to
7232	7232	13 a civil taxing unit that has previously:
7233	7233	14 (1) entered into an interlocal cooperation or similar agreement;
7234	7234	15 (2) adopted an ordinance or resolution; or
7235	7235	16 (3) taken any other action;
7236	7236	17 offering to provide revenue to support and finance a rail project or rail
7237	7237	18 projects (as defined under IC 36-7.5-1-13.5).
7238	7238	19 (b) The additional revenue general purpose revenue that would
7239	7239	20 otherwise be allocated to a civil taxing unit described in subsection (a)
7240	7240	21 shall be withheld under section 5.5 of this chapter by the state
7241	7241	22 comptroller and shall be paid by the state comptroller to the
7242	7242	23 secretary-treasurer of the northwest Indiana regional development
7243	7243	24 authority under IC 36-7.5-4-2 before certified distributions are made to
7244	7244	25 the county and before the county auditor may allocate or distribute tax
7245	7245	26 revenue under this article to any civil taxing unit in the county or
7246	7246	27 counties in which the unit is located.
7247	7247	28 (c) Amounts:
7248	7248	29 (1) withheld under section 5.5 of this chapter; and
7249	7249	30 (2) transferred on behalf of a civil taxing unit under this section;
7250	7250	31 after December 31, 2018, are considered to be a payment for services
7251	7251	32 provided to residents by a rail project as such services are rendered.
7252	7252	33 (d) A pledge by the northwest Indiana regional development
7253	7253	34 authority of withheld or transferred revenue received under this chapter
7254	7254	35 to the payment of bonds, leases, or obligations under IC 36-7.5 or
7255	7255	36 IC 5-1.3:
7256	7256	37 (1) constitutes the obligations of the northwest Indiana regional
7257	7257	38 development authority; and
7258	7258	39 (2) does not constitute an indebtedness of:
7259	7259	40 (A) a unit described in this section; or
7260	7260	41 (B) the state;
7261	7261	42 within the meaning or application of any constitutional or
7262	7262	2025 IN 1402—LS 7150/DI 120 168
7263	7263	1 statutory provision or limitation.
7264	7264	2 (e) Neither the withholding or transfer of revenue nor the pledge of
7265	7265	3 revenue withheld or transferred under this chapter is an impairment of
7266	7266	4 contract within the meaning or application of any constitutional
7267	7267	5 provision or limitation because of the following:
7268	7268	6 (1) The statutes governing local income taxes, including the
7269	7269	7 withheld or transferred revenue, have been the subject of
7270	7270	8 legislation annually since 1973, and during that time the statutes
7271	7271	9 have been revised, amended, expanded, limited, and recodified
7272	7272	10 dozens of times.
7273	7273	11 (2) Owners of bonds, leases, or other obligations to which local
7274	7274	12 income tax revenues have been pledged recognize that the
7275	7275	13 regulation of local income taxes has been extensive and
7276	7276	14 consistent.
7277	7277	15 (3) All bonds, leases, or other obligations, due to their essential
7278	7278	16 contractual nature, are subject to relevant state and federal law
7279	7279	17 that is enacted after the date of a contract.
7280	7280	18 (4) The state has a legitimate interest in assisting the northwest
7281	7281	19 Indiana regional development authority in financing rail projects
7282	7282	20 (as defined in IC 36-7.5-1-13.5).
7283	7283	21 (f) All:
7284	7284	22 (1) agreements;
7285	7285	23 (2) ordinances or resolutions; and
7286	7286	24 (3) proceedings had and actions described in this chapter;
7287	7287	25 are valid pledges under IC 5-1-14-4 as of the date of those pledges or
7288	7288	26 actions and are hereby legalized and declared valid if taken before
7289	7289	27 April 30, 2019.
7290	7290	28 SECTION 164. IC 6-3.6-11-7.5, AS AMENDED BY P.L.9-2024,
7291	7291	29 SECTION 196, IS AMENDED TO READ AS FOLLOWS
7292	7292	30 [EFFECTIVE JANUARY 1, 2027]: Sec. 7.5. (a) An action challenging
7293	7293	31 any action taken under section 5.5, 5.7, 6, or 7 of this chapter to
7294	7294	32 withhold or transfer revenue to the secretary-treasurer of the northwest
7295	7295	33 Indiana regional developmental authority (IC 36-7.5) from a county's
7296	7296	34 certified distribution must be brought within ten (10) days after the date
7297	7297	35 on which the county auditor notifies the secretary-treasurer of the
7298	7298	36 northwest Indiana regional development authority (IC 36-7.5) of the
7299	7299	37 amount of certified tax revenue that will be distributed under
7300	7300	38 IC 6-3.6-9-5(d). IC 6-3.6-9-5(b).
7301	7301	39 (b) A court shall require a plaintiff to provide a bond with surety in
7302	7302	40 an amount equal to the total amounts of tax revenue estimated to be
7303	7303	41 withheld or transferred by the state comptroller from the date of the
7304	7304	42 filing until December 31, 2049.
7305	7305	2025 IN 1402—LS 7150/DI 120 169
7306	7306	1 (c) The burden of proof in an action under this section is on the
7307	7307	2 plaintiff.
7308	7308	3 (d) If the defendant prevails in an action under this section, the court
7309	7309	4 shall award attorney's fees to the defendant.
7310	7310	5 SECTION 165. IC 6-6-5-5, AS AMENDED BY P.L.256-2017,
7311	7311	6 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7312	7312	7 JANUARY 1, 2027]: Sec. 5. A person that owns a vehicle and that is
7313	7313	8 entitled to a property tax deduction under IC 6-1.1-12-13,
7314	7314	9 IC 6-1.1-12-14, or IC 6-1.1-12-16 (before their expiration) is entitled
7315	7315	10 to a credit against the vehicle excise tax as follows: Any remaining
7316	7316	11 deduction from assessed valuation to which the person is entitled,
7317	7317	12 applicable to property taxes payable in the year in which the excise tax
7318	7318	13 imposed by this chapter is due, after allowance of the deduction on real
7319	7319	14 estate and personal property owned by the person, shall reduce the
7320	7320	15 vehicle excise tax in the amount of two dollars ($2) on each one
7321	7321	16 hundred dollars ($100) of taxable value or major portion thereof. The
7322	7322	17 county auditor shall, upon request, furnish a certified statement to the
7323	7323	18 person verifying the credit allowable under this section, and the
7324	7324	19 statement shall be presented to and retained by the bureau to support
7325	7325	20 the credit.
7326	7326	21 SECTION 166. IC 6-6-5-5.2, AS AMENDED BY P.L.256-2017,
7327	7327	22 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7328	7328	23 JANUARY 1, 2027]: Sec. 5.2. (a) This section applies to a registration
7329	7329	24 year beginning after December 31, 2013.
7330	7330	25 (b) Subject to subsection (d), an individual may claim a credit
7331	7331	26 against the tax imposed by this chapter upon a vehicle owned by the
7332	7332	27 individual if the individual is eligible for the credit under any of the
7333	7333	28 following:
7334	7334	29 (1) The individual meets all the following requirements:
7335	7335	30 (A) The individual served in the military or naval forces of the
7336	7336	31 United States during any of its wars.
7337	7337	32 (B) The individual received an honorable discharge.
7338	7338	33 (C) The individual has a disability with a service connected
7339	7339	34 disability of ten percent (10%) or more.
7340	7340	35 (D) The individual's disability is evidenced by:
7341	7341	36 (i) a pension certificate, an award of compensation, or a
7342	7342	37 disability compensation check issued by the United States
7343	7343	38 Department of Veterans Affairs; or
7344	7344	39 (ii) a certificate of eligibility issued to the individual by the
7345	7345	40 Indiana department of veterans' affairs after the Indiana
7346	7346	41 department of veterans' affairs has determined that the
7347	7347	42 individual's disability qualifies the individual to receive a
7348	7348	2025 IN 1402—LS 7150/DI 120 170
7349	7349	1 credit under this section.
7350	7350	2 (E) The individual does not own property to which a property
7351	7351	3 tax deduction may be applied under IC 6-1.1-12-13 (before its
7352	7352	4 expiration).
7353	7353	5 (2) The individual meets all the following requirements:
7354	7354	6 (A) The individual served in the military or naval forces of the
7355	7355	7 United States for at least ninety (90) days.
7356	7356	8 (B) The individual received an honorable discharge.
7357	7357	9 (C) The individual either:
7358	7358	10 (i) has a total disability; or
7359	7359	11 (ii) is at least sixty-two (62) years of age and has a disability
7360	7360	12 of at least ten percent (10%).
7361	7361	13 (D) The individual's disability is evidenced by:
7362	7362	14 (i) a pension certificate or an award of compensation issued
7363	7363	15 by the United States Department of Veterans Affairs; or
7364	7364	16 (ii) a certificate of eligibility issued to the individual by the
7365	7365	17 Indiana department of veterans' affairs after the Indiana
7366	7366	18 department of veterans' affairs has determined that the
7367	7367	19 individual's disability qualifies the individual to receive a
7368	7368	20 credit under this section.
7369	7369	21 (E) The individual does not own property to which a property
7370	7370	22 tax deduction may be applied under IC 6-1.1-12-14 (before its
7371	7371	23 expiration).
7372	7372	24 (3) The individual meets both of the following requirements:
7373	7373	25 (A) The individual is the surviving spouse of any of the
7374	7374	26 following:
7375	7375	27 (i) An individual who would have been eligible for a credit
7376	7376	28 under this section if the individual had been alive in 2013
7377	7377	29 and this section had been in effect in 2013.
7378	7378	30 (ii) An individual who received a credit under this section in
7379	7379	31 the previous calendar year.
7380	7380	32 (iii) A World War I veteran.
7381	7381	33 (B) The individual does not own property to which a property
7382	7382	34 tax deduction may be applied under IC 6-1.1-12-13,
7383	7383	35 IC 6-1.1-12-14, or IC 6-1.1-12-16 (before their expiration).
7384	7384	36 (c) The amount of the credit that may be claimed under this section
7385	7385	37 is equal to the lesser of the following:
7386	7386	38 (1) The amount of the excise tax liability for the individual's
7387	7387	39 vehicle as determined under section 3 or 3.5 of this chapter, as
7388	7388	40 applicable.
7389	7389	41 (2) Seventy dollars ($70).
7390	7390	42 (d) The maximum number of motor vehicles for which an individual
7391	7391	2025 IN 1402—LS 7150/DI 120 171
7392	7392	1 may claim a credit under this section is two (2).
7393	7393	2 (e) An individual may not claim a credit under both:
7394	7394	3 (1) this section; and
7395	7395	4 (2) section 5 of this chapter.
7396	7396	5 (f) The credit allowed by this section must be claimed on a form
7397	7397	6 prescribed by the bureau. An individual claiming the credit must attach
7398	7398	7 to the form an affidavit from the county auditor stating that the
7399	7399	8 claimant does not own property to which a property tax deduction may
7400	7400	9 be applied under IC 6-1.1-12-13, IC 6-1.1-12-14, or IC 6-1.1-12-16
7401	7401	10 (before their expiration).
7402	7402	11 SECTION 167. IC 6-6-6.5-13, AS AMENDED BY P.L.1-2009,
7403	7403	12 SECTION 55, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7404	7404	13 JANUARY 1, 2027]: Sec. 13. (a) As the basis for measuring the tax
7405	7405	14 imposed by this chapter, the department shall classify every taxable
7406	7406	15 aircraft in its proper class according to the following classification
7407	7407	16 plan:
7408	7408	17 CLASS DESCRIPTION
7409	7409	18 A Piston-driven
7410	7410	19 B Piston-driven,
7411	7411	20 and Pressurized
7412	7412	21 C Turbine driven
7413	7413	22 or other Powered
7414	7414	23 D Homebuilt, Gliders, or
7415	7415	24 Hot Air Balloons
7416	7416	25 (b) The tax imposed under this chapter is based on the age, class,
7417	7417	26 and maximum landing weight of the taxable aircraft. The amount of tax
7418	7418	27 imposed on the taxable aircraft is based on the following table:
7419	7419	28 Age Class A Class B Class C Class D
7420	7420	29 0-4 $.04/lb $.065/lb $.09/lb $.0175/lb
7421	7421	30 5-8 $.035/lb $.055/lb $.08/lb $.015/lb
7422	7422	31 9-12 $.03/lb $.05/lb $.07/lb $.0125/lb
7423	7423	32 13-16 $.025/lb $.025/lb $.025/lb$.01/lb
7424	7424	33 17-25 $.02/lb $.02/lb $.02/lb $.0075/lb
7425	7425	34 over 25$.01/lb $.01/lb $.01/lb $.005/lb
7426	7426	35 (c) An aircraft owner, who sells an aircraft on which the owner has
7427	7427	36 paid the tax imposed under this chapter, is entitled to a credit for the
7428	7428	37 tax paid. The credit equals excise tax paid on the aircraft that was sold,
7429	7429	38 times the lesser of:
7430	7430	39 (1) ninety percent (90%); or
7431	7431	40 (2) ten percent (10%) times the number of months remaining in
7432	7432	41 the registration year after the sale of the aircraft.
7433	7433	42 The credit may only be used to reduce the tax imposed under this
7434	7434	2025 IN 1402—LS 7150/DI 120 172
7435	7435	1 chapter on another aircraft purchased by that owner during the
7436	7436	2 registration year in which the credit accrues. A person may not receive
7437	7437	3 a refund for a credit under this subsection.
7438	7438	4 (d) A person who is entitled to a property tax deduction under
7439	7439	5 IC 6-1.1-12-13 or IC 6-1.1-12-14 (before their expiration) is entitled
7440	7440	6 to a credit against the tax imposed on the person's aircraft under this
7441	7441	7 chapter. The credit equals the amount of the property tax deduction to
7442	7442	8 which the person is entitled under IC 6-1.1-12-13 and IC 6-1.1-12-14
7443	7443	9 (before their expiration) minus the amount of that deduction used to
7444	7444	10 offset the person's property taxes or vehicle excise taxes, times seven
7445	7445	11 hundredths (.07). The credit may not exceed the amount of the tax due
7446	7446	12 under this chapter. The county auditor shall, upon the person's request,
7447	7447	13 furnish a certified statement showing the credit allowable under this
7448	7448	14 subsection. The department may not allow a credit under this
7449	7449	15 subsection until the auditor's statement has been filed in the
7450	7450	16 department's office.
7451	7451	17 SECTION 168. IC 6-9-10.5-8, AS AMENDED BY P.L.197-2016,
7452	7452	18 SECTION 78, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7453	7453	19 JULY 1, 2026]: Sec. 8. (a) If the tax levied under section 6 of this
7454	7454	20 chapter is increased by an ordinance adopted by the county fiscal body
7455	7455	21 after June 30, 2011, the county treasurer shall establish a county
7456	7456	22 promotion fund. The county treasurer shall deposit in the county
7457	7457	23 promotion fund the difference between:
7458	7458	24 (1) the amount received under section 6 of this chapter; minus
7459	7459	25 (2) the amount deposited in the lake enhancement fund under
7460	7460	26 section 7(c) of this chapter.
7461	7461	27 (b) In a county in which a commission has been established under
7462	7462	28 section 9 of this chapter, the county auditor shall issue a warrant
7463	7463	29 directing the county treasurer to transfer money from the county
7464	7464	30 promotion fund to the commission's treasurer if the commission
7465	7465	31 submits a written request for the transfer.
7466	7466	32 (c) Money in a county promotion fund, or money transferred from
7467	7467	33 such a fund under subsection (b), may be expended only to promote
7468	7468	34 and encourage conventions, visitors, tourism, and economic
7469	7469	35 development within the county. Expenditures that may be made under
7470	7470	36 this subsection include expenditures for advertising, promotional
7471	7471	37 activities, trade shows, special events, and recreation, and expenditures
7472	7472	38 that are authorized by IC 6-3.6-10-2 with respect to the county's
7473	7473	39 additional revenue that is allocated for economic development
7474	7474	40 purposes under IC 6-3.6-6-9. IC 6-3.6-6.
7475	7475	41 SECTION 169. IC 8-9.5-8-17, AS AMENDED BY P.L.99-2007,
7476	7476	42 SECTION 34, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7477	7477	2025 IN 1402—LS 7150/DI 120 173
7478	7478	1 JANUARY 1, 2027]: Sec. 17. The authority shall study and implement
7479	7479	2 programs to assist in the transportation of military veterans or
7480	7480	3 individuals with a disability (as defined in IC 6-1.1-12-11 before its
7481	7481	4 expiration) who travel on a toll road to or from a hospital for
7482	7482	5 treatment. However, a program may not be inconsistent with the trust
7483	7483	6 indenture securing the bonds of the toll road.
7484	7484	7 SECTION 170. IC 8-18-22-6, AS AMENDED BY P.L.256-2017,
7485	7485	8 SECTION 96, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7486	7486	9 JULY 1, 2026]: Sec. 6. (a) Except as provided in subsection (b), the
7487	7487	10 county fiscal body may pledge revenues for the payment of principal
7488	7488	11 and interest on the bonds and for other purposes under the ordinance
7489	7489	12 as provided by IC 5-1-14-4, including revenues from the following
7490	7490	13 sources:
7491	7491	14 (1) The motor vehicle highway account.
7492	7492	15 (2) The local road and street account.
7493	7493	16 (3) The county vehicle excise tax.
7494	7494	17 (4) The county wheel tax.
7495	7495	18 (5) The local income tax (IC 6-3.6).
7496	7496	19 (6) Assessments.
7497	7497	20 (7) Any other unappropriated or unencumbered money.
7498	7498	21 (b) The county fiscal body may not pledge to levy ad valorem
7499	7499	22 property taxes for these purposes, except for revenues from the
7500	7500	23 following:
7501	7501	24 (1) IC 8-16-3.
7502	7502	25 (2) IC 8-16-3.1.
7503	7503	26 (c) If the county fiscal body has pledged revenues from the local
7504	7504	27 income tax as set forth in subsection (a), the local income tax council
7505	7505	28 (as defined in IC 6-3.6-2-12) county fiscal body may covenant that the
7506	7506	29 council county fiscal body will not repeal or modify the tax in a
7507	7507	30 manner that would adversely affect owners of outstanding bonds issued
7508	7508	31 under this chapter. The local income tax council county fiscal body
7509	7509	32 may make the covenant by adopting an ordinance using procedures
7510	7510	33 described in IC 6-3.6-3.
7511	7511	34 SECTION 171. IC 8-22-3.5-9, AS AMENDED BY P.L.174-2022,
7512	7512	35 SECTION 50, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7513	7513	36 JULY 1, 2026]: Sec. 9. (a) As used in this section, "base assessed
7514	7514	37 value" means, subject to subsection (k):
7515	7515	38 (1) the net assessed value of all the tangible property as finally
7516	7516	39 determined for the assessment date immediately preceding the
7517	7517	40 effective date of the allocation provision of the commission's
7518	7518	41 resolution adopted under section 5 or 9.5 of this chapter,
7519	7519	42 notwithstanding the date of the final action taken under section 6
7520	7520	2025 IN 1402—LS 7150/DI 120 174
7521	7521	1 of this chapter; plus
7522	7522	2 (2) to the extent it is not included in subdivision (1), the net
7523	7523	3 assessed value of property that is assessed as residential property
7524	7524	4 under the rules of the department of local government finance,
7525	7525	5 within the airport development zone, as finally determined for the
7526	7526	6 current assessment date.
7527	7527	7 However, subdivision (2) applies only to an airport development zone
7528	7528	8 established after June 30, 1997, and the portion of an airport
7529	7529	9 development zone established before June 30, 1997, that is added to an
7530	7530	10 existing airport development zone.
7531	7531	11 (b) A resolution adopted under section 5 of this chapter and
7532	7532	12 confirmed under section 6 of this chapter must include a provision with
7533	7533	13 respect to the allocation and distribution of property taxes for the
7534	7534	14 purposes and in the manner provided in this section.
7535	7535	15 (c) The allocation provision must:
7536	7536	16 (1) apply to the entire airport development zone; and
7537	7537	17 (2) require that any property tax on taxable tangible property
7538	7538	18 subsequently levied by or for the benefit of any public body
7539	7539	19 entitled to a distribution of property taxes in the airport
7540	7540	20 development zone be allocated and distributed as provided in
7541	7541	21 subsections (d) and (e).
7542	7542	22 (d) Except as otherwise provided in this section:
7543	7543	23 (1) the proceeds of the taxes attributable to the lesser of:
7544	7544	24 (A) the assessed value of the tangible property for the
7545	7545	25 assessment date with respect to which the allocation and
7546	7546	26 distribution is made; or
7547	7547	27 (B) the base assessed value;
7548	7548	28 shall be allocated and, when collected, paid into the funds of the
7549	7549	29 respective taxing units; and
7550	7550	30 (2) the excess of the proceeds of the property taxes imposed for
7551	7551	31 the assessment date with respect to which the allocation and
7552	7552	32 distribution are made that are attributable to taxes imposed after
7553	7553	33 being approved by the voters in a referendum or local public
7554	7554	34 question conducted after April 30, 2010, not otherwise included
7555	7555	35 in subdivision (1) shall be allocated to and, when collected, paid
7556	7556	36 into the funds of the taxing unit for which the referendum or local
7557	7557	37 public question was conducted.
7558	7558	38 (e) All of the property tax proceeds in excess of those described in
7559	7559	39 subsection (d) shall be allocated to the eligible entity for the airport
7560	7560	40 development zone and, when collected, paid into special funds as
7561	7561	41 follows:
7562	7562	42 (1) The commission may determine that a portion of tax proceeds
7563	7563	2025 IN 1402—LS 7150/DI 120 175
7564	7564	1 shall be allocated to a training grant fund to be expended by the
7565	7565	2 commission without appropriation solely for the purpose of
7566	7566	3 reimbursing training expenses incurred by public or private
7567	7567	4 entities in the training of employees for the qualified airport
7568	7568	5 development project.
7569	7569	6 (2) The commission may determine that a portion of tax proceeds
7570	7570	7 shall be allocated to a debt service fund and dedicated to the
7571	7571	8 payment of principal and interest on revenue bonds or a loan
7572	7572	9 contract of the board of aviation commissioners or airport
7573	7573	10 authority for a qualified airport development project, to the
7574	7574	11 payment of leases for a qualified airport development project, or
7575	7575	12 to the payment of principal and interest on bonds issued by an
7576	7576	13 eligible entity to pay for qualified airport development projects in
7577	7577	14 the airport development zone or serving the airport development
7578	7578	15 zone.
7579	7579	16 (3) The commission may determine that a part of the tax proceeds
7580	7580	17 shall be allocated to a project fund and used to pay expenses
7581	7581	18 incurred by the commission for a qualified airport development
7582	7582	19 project that is in the airport development zone or is serving the
7583	7583	20 airport development zone.
7584	7584	21 (4) Except as provided in subsection (f), all remaining tax
7585	7585	22 proceeds after allocations are made under subdivisions (1), (2),
7586	7586	23 and (3) shall be allocated to a project fund and dedicated to the
7587	7587	24 reimbursement of expenditures made by the commission for a
7588	7588	25 qualified airport development project that is in the airport
7589	7589	26 development zone or is serving the airport development zone.
7590	7590	27 (f) Before July 15 of each year, the commission shall do the
7591	7591	28 following:
7592	7592	29 (1) Determine the amount, if any, by which tax proceeds allocated
7593	7593	30 to the project fund in subsection (e)(3) in the following year will
7594	7594	31 exceed the amount necessary to satisfy amounts required under
7595	7595	32 subsection (e).
7596	7596	33 (2) Provide a written notice to the county auditor and the officers
7597	7597	34 who are authorized to fix budgets, tax rates, and tax levies under
7598	7598	35 IC 6-1.1-17-5 for each of the other taxing units that is wholly or
7599	7599	36 partly located within the allocation area. The notice must:
7600	7600	37 (A) state the amount, if any, of excess tax proceeds that the
7601	7601	38 commission has determined may be allocated to the respective
7602	7602	39 taxing units in the manner prescribed in subsection (d)(1); or
7603	7603	40 (B) state that the commission has determined that there are no
7604	7604	41 excess tax proceeds that may be allocated to the respective
7605	7605	42 taxing units in the manner prescribed in subsection (d)(1).
7606	7606	2025 IN 1402—LS 7150/DI 120 176
7607	7607	1 The county auditor shall allocate to the respective taxing units the
7608	7608	2 amount, if any, of excess tax proceeds determined by the
7609	7609	3 commission.
7610	7610	4 (g) When money in the debt service fund and in the project fund is
7611	7611	5 sufficient to pay all outstanding principal and interest (to the earliest
7612	7612	6 date on which the obligations can be redeemed) on revenue bonds
7613	7613	7 issued by the board of aviation commissioners or airport authority for
7614	7614	8 the financing of qualified airport development projects, all lease rentals
7615	7615	9 payable on leases of qualified airport development projects, and all
7616	7616	10 costs and expenditures associated with all qualified airport
7617	7617	11 development projects, money in the debt service fund and in the project
7618	7618	12 fund in excess of those amounts shall be paid to the respective taxing
7619	7619	13 units in the manner prescribed by subsection (d)(1).
7620	7620	14 (h) Property tax proceeds allocable to the debt service fund under
7621	7621	15 subsection (e)(2) must, subject to subsection (g), be irrevocably
7622	7622	16 pledged by the eligible entity for the purpose set forth in subsection
7623	7623	17 (e)(2).
7624	7624	18 (i) Notwithstanding any other law, each assessor shall, upon petition
7625	7625	19 of the commission, reassess the taxable tangible property situated upon
7626	7626	20 or in, or added to, the airport development zone effective on the next
7627	7627	21 assessment date after the petition.
7628	7628	22 (j) Notwithstanding any other law, the assessed value of all taxable
7629	7629	23 tangible property in the airport development zone, for purposes of tax
7630	7630	24 limitation, property tax replacement, and formulation of the budget, tax
7631	7631	25 rate, and tax levy for each political subdivision in which the property
7632	7632	26 is located is the lesser of:
7633	7633	27 (1) the assessed value of the tangible property as valued without
7634	7634	28 regard to this section; or
7635	7635	29 (2) the base assessed value.
7636	7636	30 (k) If the commission confirms, or modifies and confirms, a
7637	7637	31 resolution under section 6 of this chapter and the commission makes
7638	7638	32 either of the filings required under section 6(c) of this chapter after the
7639	7639	33 first anniversary of the effective date of the allocation provision, the
7640	7640	34 auditor of the county in which the airport development zone is located
7641	7641	35 shall compute the base assessed value for the allocation area using the
7642	7642	36 assessment date immediately preceding the later of:
7643	7643	37 (1) the date on which the documents are filed with the county
7644	7644	38 auditor; or
7645	7645	39 (2) the date on which the documents are filed with the department
7646	7646	40 of local government finance.
7647	7647	41 (l) For an airport development zone established after June 30, 2024,
7648	7648	42 "residential property" refers to the assessed value of property that is
7649	7649	2025 IN 1402—LS 7150/DI 120 177
7650	7650	1 allocated to the one percent (1%) homestead land and improvement
7651	7651	2 categories in the county tax and billing software system, along with the
7652	7652	3 residential assessed value as defined for purposes of calculating the
7653	7653	4 rate for the local income tax property tax relief credit designated for
7654	7654	5 residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
7655	7655	6 SECTION 172. IC 12-20-25-34, AS AMENDED BY P.L.197-2016,
7656	7656	7 SECTION 103, IS AMENDED TO READ AS FOLLOWS
7657	7657	8 [EFFECTIVE JULY 1, 2026]: Sec. 34. The financial plan adopted
7658	7658	9 under section 33 of this chapter may include the following:
7659	7659	10 (1) The adoption in the current year of a local income tax rate
7660	7660	11 under IC 6-3.6 not to exceed one percent (1%). If a local income
7661	7661	12 tax rate is imposed under this chapter, the ordinance must specify
7662	7662	13 whether any revenue in excess of the rate needed to carry out the
7663	7663	14 financial plan is to be used for property tax relief (IC 6-3.6-5)
7664	7664	15 (before its expiration) or as additional revenue (IC 6-3.6-6). The
7665	7665	16 revenue from the tax rate under this section shall be distributed as
7666	7666	17 provided in this chapter. The adoption of a local income tax rate
7667	7667	18 under this chapter is in addition to the local income tax rate under
7668	7668	19 IC 6-3.6 that may already be in effect in the county.
7669	7669	20 (2) The payment of township assistance with county money.
7670	7670	21 (3) The elimination or reduction of township assistance services
7671	7671	22 not required under this article.
7672	7672	23 SECTION 173. IC 12-20-25-35, AS AMENDED BY P.L.197-2016,
7673	7673	24 SECTION 104, IS AMENDED TO READ AS FOLLOWS
7674	7674	25 [EFFECTIVE JULY 1, 2026]: Sec. 35. (a) The control board shall
7675	7675	26 report the following to the county fiscal body:
7676	7676	27 (1) The audit findings of the management committee.
7677	7677	28 (2) The financial plan adopted under section 33 of this chapter.
7678	7678	29 (b) Not more than thirty (30) days after notice, the county fiscal
7679	7679	30 body shall adopt one (1) of the following:
7680	7680	31 (1) An ordinance adopting the financial plan adopted by the
7681	7681	32 control board.
7682	7682	33 (2) An ordinance rejecting the financial plan adopted by the
7683	7683	34 control board.
7684	7684	35 (c) Notwithstanding IC 6-3.6-3, if:
7685	7685	36 (1) the financial plan adopted under section 33 of this chapter
7686	7686	37 includes a local income tax rate; and
7687	7687	38 (2) the fiscal body adopts an ordinance adopting the financial plan
7688	7688	39 under subsection (b);
7689	7689	40 the local income tax rate is imposed at the rate adopted in the financial
7690	7690	41 plan. Subject to the requirements of this chapter and notwithstanding
7691	7691	42 that the local income tax council may be the adopting body specified
7692	7692	2025 IN 1402—LS 7150/DI 120 178
7693	7693	1 in IC 6-3.6-3-1, the county fiscal body, rather than the local income tax
7694	7694	2 council, has the authority granted to a local income tax council by
7695	7695	3 IC 6-3.6-3 as long as the local income tax rate imposed under this
7696	7696	4 chapter remains in effect.
7697	7697	5 SECTION 174. IC 36-1-8-5.1, AS AMENDED BY P.L.38-2021,
7698	7698	6 SECTION 79, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7699	7699	7 JULY 1, 2026]: Sec. 5.1. (a) A political subdivision may establish a
7700	7700	8 rainy day fund by the adoption of:
7701	7701	9 (1) an ordinance, in the case of a county, city, or town; or
7702	7702	10 (2) a resolution, in the case of any other political subdivision.
7703	7703	11 (b) An ordinance or a resolution adopted under this section must
7704	7704	12 specify the following:
7705	7705	13 (1) The purposes of the rainy day fund.
7706	7706	14 (2) The sources of funding for the rainy day fund, which may
7707	7707	15 include the following:
7708	7708	16 (A) Unused and unencumbered funds under
7709	7709	17 (i) section 5 of this chapter. or
7710	7710	18 (ii) IC 6-3.6-9-15.
7711	7711	19 (B) Any other funding source:
7712	7712	20 (i) specified in the ordinance or resolution adopted under
7713	7713	21 this section; and
7714	7714	22 (ii) not otherwise prohibited by law.
7715	7715	23 (c) The rainy day fund is subject to the same appropriation process
7716	7716	24 as other funds that receive tax money.
7717	7717	25 (d) In any fiscal year, a political subdivision may, at any time, do the
7718	7718	26 following:
7719	7719	27 (1) Transfer any unused and unencumbered funds specified in
7720	7720	28 subsection (b)(2)(A) from any fiscal year to the rainy day fund.
7721	7721	29 (2) Transfer any other unobligated cash balances from any fiscal
7722	7722	30 year that are not otherwise identified in subsection (b)(2)(A) or
7723	7723	31 section 5 of this chapter to the rainy day fund as long as the
7724	7724	32 transfer satisfies the following requirements:
7725	7725	33 (A) The amount of the transfer is authorized by and identified
7726	7726	34 in an ordinance or resolution.
7727	7727	35 (B) The amount of the transfer is not more than:
7728	7728	36 (i) before January 1, 2021, ten percent (10%);
7729	7729	37 (ii) after December 31, 2020, and before January 1, 2025,
7730	7730	38 fifteen percent (15%); and
7731	7731	39 (iii) after December 31, 2024, ten percent (10%);
7732	7732	40 of the political subdivision's total annual budget adopted under
7733	7733	41 IC 6-1.1-17 for that fiscal year.
7734	7734	42 (C) The transfer is not made from a debt service fund.
7735	7735	2025 IN 1402—LS 7150/DI 120 179
7736	7736	1 (e) A political subdivision may use only the funding sources
7737	7737	2 specified in subsection (b)(2)(A) or in the ordinance or resolution
7738	7738	3 establishing the rainy day fund. The political subdivision may adopt a
7739	7739	4 subsequent ordinance or resolution authorizing the use of another
7740	7740	5 funding source.
7741	7741	6 (f) The department of local government finance may not reduce the
7742	7742	7 actual or maximum permissible levy of a political subdivision as a
7743	7743	8 result of a balance in the rainy day fund of the political subdivision.
7744	7744	9 (g) A county, city, or town may at any time, by ordinance or
7745	7745	10 resolution, transfer to:
7746	7746	11 (1) its general fund; or
7747	7747	12 (2) any other appropriated funds of the county, city, or town;
7748	7748	13 money that has been deposited in the rainy day fund of the county, city,
7749	7749	14 or town.
7750	7750	15 (h) A school corporation may at any time, by resolution, transfer to
7751	7751	16 its education fund or operations fund money that has been deposited in
7752	7752	17 its rainy day fund.
7753	7753	18 SECTION 175. IC 36-4-14 IS ADDED TO THE INDIANA CODE
7754	7754	19 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
7755	7755	20 JANUARY 1, 2027]:
7756	7756	21 Chapter 14. Operating Referendum Tax Levy for Certain Small
7757	7757	22 Cities and Towns
7758	7758	23 Sec. 1. This chapter applies only to eligible municipalities and
7759	7759	24 only if a local income tax rate is not imposed by the county for the
7760	7760	25 eligible municipality under IC 6-3.6-6-2(b)(4).
7761	7761	26 Sec. 2. As used in this chapter, "eligible municipality" refers
7762	7762	27 only to a city or town that:
7763	7763	28 (1) has a population of less than three thousand five hundred
7764	7764	29 (3,500);
7765	7765	30 (2) has a population of three thousand five hundred (3,500) or
7766	7766	31 more, but that adopted an ordinance to continue to use the
7767	7767	32 population of the city or town as reported by the immediately
7768	7768	33 preceding federal decennial census of less than three thousand
7769	7769	34 five hundred (3,500) for purposes of the local income tax
7770	7770	35 allocation factor under IC 6-3.6-6-23(b)(2); or
7771	7771	36 (3) does not impose a local income tax rate under
7772	7772	37 IC 6-3.6-6-22.
7773	7773	38 Sec. 3. As used in this chapter, "referendum" refers to a
7774	7774	39 referendum under this chapter.
7775	7775	40 Sec. 4. (a) A fiscal body of an eligible municipality may adopt a
7776	7776	41 resolution to place a referendum under this chapter on the ballot
7777	7777	42 for any of the following purposes:
7778	7778	2025 IN 1402—LS 7150/DI 120 180
7779	7779	1 (1) The fiscal body of the eligible municipality determines that
7780	7780	2 it cannot, in a calendar year, carry out its public duties unless
7781	7781	3 it imposes an operating referendum tax levy under this
7782	7782	4 chapter.
7783	7783	5 (2) The fiscal body of the eligible municipality determines that
7784	7784	6 an operating referendum tax levy under this chapter should
7785	7785	7 be imposed to replace property tax revenue that the eligible
7786	7786	8 municipality will not receive because of the application of the
7787	7787	9 credit under IC 6-1.1-20.6.
7788	7788	10 (b) The fiscal body of the eligible municipality shall certify a
7789	7789	11 copy of the resolution to place a referendum on the ballot to the
7790	7790	12 following:
7791	7791	13 (1) The department of local government finance, including the
7792	7792	14 language for the question required by section 5 of this
7793	7793	15 chapter. The department shall review the language for
7794	7794	16 compliance with section 5 of this chapter and either approve
7795	7795	17 or reject the language. The department shall send its decision
7796	7796	18 to the county fiscal body not more than ten (10) days after the
7797	7797	19 resolution is submitted to the department. If the language is
7798	7798	20 approved, the fiscal body of the eligible municipality shall
7799	7799	21 certify a copy of the resolution, including the language for the
7800	7800	22 question and the department's approval.
7801	7801	23 (2) The county fiscal body of each county in which the eligible
7802	7802	24 municipality is located (for informational purposes only).
7803	7803	25 (3) The circuit court clerk of each county in which the eligible
7804	7804	26 municipality is located.
7805	7805	27 Sec. 5. (a) The question to be submitted to the voters in the
7806	7806	28 referendum must read as follows:
7807	7807	29 "For the __ (insert number not exceeding eight (8)) calendar
7808	7808	30 year or years immediately following the holding of the
7809	7809	31 referendum, shall the eligible municipality impose a property
7810	7810	32 tax rate that does not exceed _____________ (insert amount)
7811	7811	33 cents ($0.__) (insert amount) on each one hundred dollars
7812	7812	34 ($100) of assessed valuation and that is in addition to all other
7813	7813	35 property taxes imposed by the eligible municipality for the
7814	7814	36 purpose of funding _____________________ (insert short
7815	7815	37 description of applicable purposes under section 12(c) of this
7816	7816	38 chapter)?".
7817	7817	39 (b) The voters in a referendum may not approve a levy that is
7818	7818	40 imposed for more than the following eight (8) years.
7819	7819	41 Sec. 6. Each circuit court clerk shall, upon receiving the
7820	7820	42 question certified by the fiscal body of the eligible municipality
7821	7821	2025 IN 1402—LS 7150/DI 120 181
7822	7822	1 under this chapter, call a meeting of the county election board to
7823	7823	2 make arrangements for the referendum.
7824	7824	3 Sec. 7. The referendum shall be held in the next general
7825	7825	4 municipal election in which all the registered voters who are
7826	7826	5 residents of the eligible municipality are entitled to vote after
7827	7827	6 certification of the question under IC 3-10-9-3. The certification of
7828	7828	7 the question must occur not later than noon on August 1 of the
7829	7829	8 year in which the referendum is held.
7830	7830	9 Sec. 8. Each county election board shall cause:
7831	7831	10 (1) the question certified to the circuit court clerk by the
7832	7832	11 county fiscal body to be placed on the ballot in the form
7833	7833	12 prescribed by IC 3-10-9-4; and
7834	7834	13 (2) an adequate supply of ballots and voting equipment to be
7835	7835	14 delivered to the precinct election board of each precinct in
7836	7836	15 which the referendum is to be held.
7837	7837	16 Sec. 9. The individuals entitled to vote in the referendum are all
7838	7838	17 of the registered voters resident in the eligible municipality to
7839	7839	18 which the referendum applies.
7840	7840	19 Sec. 10. Each precinct election board shall count the affirmative
7841	7841	20 votes and the negative votes cast in the referendum and shall
7842	7842	21 certify those two (2) totals to the county election board of each
7843	7843	22 county in which the referendum is held. The circuit court clerk of
7844	7844	23 each county shall, immediately after the votes cast in the
7845	7845	24 referendum have been counted, certify the results of the
7846	7846	25 referendum to the department of local government finance. If a
7847	7847	26 majority of the individuals who voted in the referendum voted
7848	7848	27 "yes" on the referendum question:
7849	7849	28 (1) the department of local government finance shall promptly
7850	7850	29 notify the eligible municipality that the eligible municipality
7851	7851	30 is authorized to collect, for the calendar year that next follows
7852	7852	31 the calendar year in which the referendum is held, a levy not
7853	7853	32 greater than the amount approved in the referendum;
7854	7854	33 (2) the levy may be imposed for the number of calendar years
7855	7855	34 approved by the voters following the referendum for the
7856	7856	35 eligible municipality in which the referendum is held; and
7857	7857	36 (3) the eligible municipality shall establish an operating
7858	7858	37 referendum tax levy fund under section 12 of this chapter.
7859	7859	38 Sec. 11. (a) If a majority of the persons who voted in the
7860	7860	39 referendum did not vote "yes" on the referendum question:
7861	7861	40 (1) the eligible municipality may not make any levy for its
7862	7862	41 operating referendum tax levy fund; and
7863	7863	42 (2) another referendum under this section may not be held
7864	7864	2025 IN 1402—LS 7150/DI 120 182
7865	7865	1 earlier than:
7866	7866	2 (A) except as provided in clause (B), seven hundred (700)
7867	7867	3 days after the date of the referendum; or
7868	7868	4 (B) three hundred fifty (350) days after the date of the
7869	7869	5 referendum, if a petition that meets the requirements of
7870	7870	6 subsection (b) is submitted to the county auditor.
7871	7871	7 (b) If a majority of the persons who voted in the referendum did
7872	7872	8 not vote "yes" on the referendum question, a petition may be
7873	7873	9 submitted to the county auditor to request that the limit under
7874	7874	10 subsection (a)(2)(B) apply to the holding of a subsequent
7875	7875	11 referendum by the eligible municipality. If such a petition is
7876	7876	12 submitted to the county auditor and is signed by at least:
7877	7877	13 (1) five hundred (500) persons who are either owners of
7878	7878	14 property within the eligible municipality or registered voters
7879	7879	15 residing within the eligible municipality; or
7880	7880	16 (2) five percent (5%) of the registered voters residing within
7881	7881	17 the eligible municipality;
7882	7882	18 the limit under subsection (a)(2)(B) applies to the holding of a
7883	7883	19 second referendum by the eligible municipality, and the limit under
7884	7884	20 subsection (a)(2)(A) does not apply to the holding of a second
7885	7885	21 referendum by the eligible municipality.
7886	7886	22 Sec. 12. (a) If a referendum is approved by the voters in an
7887	7887	23 eligible municipality under this chapter, the fiscal officer of the
7888	7888	24 eligible municipality shall establish an operating referendum tax
7889	7889	25 levy fund.
7890	7890	26 (b) All property tax revenue collected from a levy imposed
7891	7891	27 under this chapter shall be transferred to the operating
7892	7892	28 referendum tax levy fund of the eligible municipality in which the
7893	7893	29 levy is imposed.
7894	7894	30 (c) Money in an operating referendum tax levy fund of an
7895	7895	31 eligible municipality may be used to pay the general operating,
7896	7896	32 administrative, and capital expenses of the eligible municipality.
7897	7897	33 Sec. 13. Notwithstanding any other provision of this chapter, the
7898	7898	34 authority conveyed in a referendum that is approved by the voters
7899	7899	35 under this chapter ceases if a local income tax rate is subsequently
7900	7900	36 imposed by the county for the eligible municipality under
7901	7901	37 IC 6-3.6-6-2(b)(4). In that case, the levy imposed under the
7902	7902	38 referendum shall cease and shall not be collected beginning with
7903	7903	39 the assessment date that immediately succeeds the date the local
7904	7904	40 income tax rate is first imposed.
7905	7905	41 SECTION 176. IC 36-7-14-39, AS AMENDED BY P.L.136-2024,
7906	7906	42 SECTION 54, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7907	7907	2025 IN 1402—LS 7150/DI 120 183
7908	7908	1 JULY 1, 2026]: Sec. 39. (a) As used in this section:
7909	7909	2 "Allocation area" means that part of a redevelopment project area
7910	7910	3 to which an allocation provision of a declaratory resolution adopted
7911	7911	4 under section 15 of this chapter refers for purposes of distribution and
7912	7912	5 allocation of property taxes.
7913	7913	6 "Base assessed value" means, subject to subsection (j), the
7914	7914	7 following:
7915	7915	8 (1) If an allocation provision is adopted after June 30, 1995, in a
7916	7916	9 declaratory resolution or an amendment to a declaratory
7917	7917	10 resolution establishing an economic development area:
7918	7918	11 (A) the net assessed value of all the property as finally
7919	7919	12 determined for the assessment date immediately preceding the
7920	7920	13 effective date of the allocation provision of the declaratory
7921	7921	14 resolution, as adjusted under subsection (h); plus
7922	7922	15 (B) to the extent that it is not included in clause (A), the net
7923	7923	16 assessed value of property that is assessed as residential
7924	7924	17 property under the rules of the department of local government
7925	7925	18 finance, within the allocation area, as finally determined for
7926	7926	19 the current assessment date.
7927	7927	20 (2) If an allocation provision is adopted after June 30, 1997, in a
7928	7928	21 declaratory resolution or an amendment to a declaratory
7929	7929	22 resolution establishing a redevelopment project area:
7930	7930	23 (A) the net assessed value of all the property as finally
7931	7931	24 determined for the assessment date immediately preceding the
7932	7932	25 effective date of the allocation provision of the declaratory
7933	7933	26 resolution, as adjusted under subsection (h); plus
7934	7934	27 (B) to the extent that it is not included in clause (A), the net
7935	7935	28 assessed value of property that is assessed as residential
7936	7936	29 property under the rules of the department of local government
7937	7937	30 finance, as finally determined for the current assessment date.
7938	7938	31 (3) If:
7939	7939	32 (A) an allocation provision adopted before June 30, 1995, in
7940	7940	33 a declaratory resolution or an amendment to a declaratory
7941	7941	34 resolution establishing a redevelopment project area expires
7942	7942	35 after June 30, 1997; and
7943	7943	36 (B) after June 30, 1997, a new allocation provision is included
7944	7944	37 in an amendment to the declaratory resolution;
7945	7945	38 the net assessed value of all the property as finally determined for
7946	7946	39 the assessment date immediately preceding the effective date of
7947	7947	40 the allocation provision adopted after June 30, 1997, as adjusted
7948	7948	41 under subsection (h).
7949	7949	42 (4) Except as provided in subdivision (5), for all other allocation
7950	7950	2025 IN 1402—LS 7150/DI 120 184
7951	7951	1 areas, the net assessed value of all the property as finally
7952	7952	2 determined for the assessment date immediately preceding the
7953	7953	3 effective date of the allocation provision of the declaratory
7954	7954	4 resolution, as adjusted under subsection (h).
7955	7955	5 (5) If an allocation area established in an economic development
7956	7956	6 area before July 1, 1995, is expanded after June 30, 1995, the
7957	7957	7 definition in subdivision (1) applies to the expanded part of the
7958	7958	8 area added after June 30, 1995.
7959	7959	9 (6) If an allocation area established in a redevelopment project
7960	7960	10 area before July 1, 1997, is expanded after June 30, 1997, the
7961	7961	11 definition in subdivision (2) applies to the expanded part of the
7962	7962	12 area added after June 30, 1997.
7963	7963	13 Except as provided in section 39.3 of this chapter, "property taxes"
7964	7964	14 means taxes imposed under IC 6-1.1 on real property. However, upon
7965	7965	15 approval by a resolution of the redevelopment commission adopted
7966	7966	16 before June 1, 1987, "property taxes" also includes taxes imposed
7967	7967	17 under IC 6-1.1 on depreciable personal property. If a redevelopment
7968	7968	18 commission adopted before June 1, 1987, a resolution to include within
7969	7969	19 the definition of property taxes, taxes imposed under IC 6-1.1 on
7970	7970	20 depreciable personal property that has a useful life in excess of eight
7971	7971	21 (8) years, the commission may by resolution determine the percentage
7972	7972	22 of taxes imposed under IC 6-1.1 on all depreciable personal property
7973	7973	23 that will be included within the definition of property taxes. However,
7974	7974	24 the percentage included must not exceed twenty-five percent (25%) of
7975	7975	25 the taxes imposed under IC 6-1.1 on all depreciable personal property.
7976	7976	26 (b) A declaratory resolution adopted under section 15 of this chapter
7977	7977	27 on or before the allocation deadline determined under subsection (i)
7978	7978	28 may include a provision with respect to the allocation and distribution
7979	7979	29 of property taxes for the purposes and in the manner provided in this
7980	7980	30 section. A declaratory resolution previously adopted may include an
7981	7981	31 allocation provision by the amendment of that declaratory resolution on
7982	7982	32 or before the allocation deadline determined under subsection (i) in
7983	7983	33 accordance with the procedures required for its original adoption. A
7984	7984	34 declaratory resolution or amendment that establishes an allocation
7985	7985	35 provision must include a specific finding of fact, supported by
7986	7986	36 evidence, that the adoption of the allocation provision will result in
7987	7987	37 new property taxes in the area that would not have been generated but
7988	7988	38 for the adoption of the allocation provision. For an allocation area
7989	7989	39 established before July 1, 1995, the expiration date of any allocation
7990	7990	40 provisions for the allocation area is June 30, 2025, or the last date of
7991	7991	41 any obligations that are outstanding on July 1, 2015, whichever is later.
7992	7992	42 A declaratory resolution or an amendment that establishes an allocation
7993	7993	2025 IN 1402—LS 7150/DI 120 185
7994	7994	1 provision after June 30, 1995, must specify an expiration date for the
7995	7995	2 allocation provision. For an allocation area established before July 1,
7996	7996	3 2008, the expiration date may not be more than thirty (30) years after
7997	7997	4 the date on which the allocation provision is established. For an
7998	7998	5 allocation area established after June 30, 2008, the expiration date may
7999	7999	6 not be more than twenty-five (25) years after the date on which the first
8000	8000	7 obligation was incurred to pay principal and interest on bonds or lease
8001	8001	8 rentals on leases payable from tax increment revenues. However, with
8002	8002	9 respect to bonds or other obligations that were issued before July 1,
8003	8003	10 2008, if any of the bonds or other obligations that were scheduled when
8004	8004	11 issued to mature before the specified expiration date and that are
8005	8005	12 payable only from allocated tax proceeds with respect to the allocation
8006	8006	13 area remain outstanding as of the expiration date, the allocation
8007	8007	14 provision does not expire until all of the bonds or other obligations are
8008	8008	15 no longer outstanding. Notwithstanding any other law, in the case of an
8009	8009	16 allocation area that is established after June 30, 2019, and that is
8010	8010	17 located in a redevelopment project area described in section
8011	8011	18 25.1(c)(3)(C) of this chapter, an economic development area described
8012	8012	19 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project
8013	8013	20 area described in section 25.1(c)(3)(C) of this chapter, the expiration
8014	8014	21 date of the allocation provision may not be more than thirty-five (35)
8015	8015	22 years after the date on which the allocation provision is established.
8016	8016	23 The allocation provision may apply to all or part of the redevelopment
8017	8017	24 project area. The allocation provision must require that any property
8018	8018	25 taxes subsequently levied by or for the benefit of any public body
8019	8019	26 entitled to a distribution of property taxes on taxable property in the
8020	8020	27 allocation area be allocated and distributed as follows:
8021	8021	28 (1) Except as otherwise provided in this section, the proceeds of
8022	8022	29 the taxes attributable to the lesser of:
8023	8023	30 (A) the assessed value of the property for the assessment date
8024	8024	31 with respect to which the allocation and distribution is made;
8025	8025	32 or
8026	8026	33 (B) the base assessed value;
8027	8027	34 shall be allocated to and, when collected, paid into the funds of
8028	8028	35 the respective taxing units.
8029	8029	36 (2) This subdivision applies to a fire protection territory
8030	8030	37 established after December 31, 2022. If a unit becomes a
8031	8031	38 participating unit of a fire protection territory that is established
8032	8032	39 after a declaratory resolution is adopted under section 15 of this
8033	8033	40 chapter, the excess of the proceeds of the property taxes
8034	8034	41 attributable to an increase in the property tax rate for the
8035	8035	42 participating unit of a fire protection territory:
8036	8036	2025 IN 1402—LS 7150/DI 120 186
8037	8037	1 (A) except as otherwise provided by this subdivision, shall be
8038	8038	2 determined as follows:
8039	8039	3 STEP ONE: Divide the unit's tax rate for fire protection for
8040	8040	4 the year before the establishment of the fire protection
8041	8041	5 territory by the participating unit's tax rate as part of the fire
8042	8042	6 protection territory.
8043	8043	7 STEP TWO: Subtract the STEP ONE amount from one (1).
8044	8044	8 STEP THREE: Multiply the STEP TWO amount by the
8045	8045	9 allocated property tax attributable to the participating unit of
8046	8046	10 the fire protection territory; and
8047	8047	11 (B) to the extent not otherwise included in subdivisions (1)
8048	8048	12 and (3), the amount determined under STEP THREE of clause
8049	8049	13 (A) shall be allocated to and distributed in the form of an
8050	8050	14 allocated property tax revenue pass back to the participating
8051	8051	15 unit of the fire protection territory for the assessment date with
8052	8052	16 respect to which the allocation is made.
8053	8053	17 However, if the redevelopment commission determines that it is
8054	8054	18 unable to meet its debt service obligations with regards to the
8055	8055	19 allocation area without all or part of the allocated property tax
8056	8056	20 revenue pass back to the participating unit of a fire protection area
8057	8057	21 under this subdivision, then the allocated property tax revenue
8058	8058	22 pass back under this subdivision shall be reduced by the amount
8059	8059	23 necessary for the redevelopment commission to meet its debt
8060	8060	24 service obligations of the allocation area. The calculation under
8061	8061	25 this subdivision must be made by the redevelopment commission
8062	8062	26 in collaboration with the county auditor and the applicable fire
8063	8063	27 protection territory. Any calculation determined according to
8064	8064	28 clause (A) must be submitted to the department of local
8065	8065	29 government finance in the manner prescribed by the department
8066	8066	30 of local government finance. The department of local government
8067	8067	31 finance shall verify the accuracy of each calculation.
8068	8068	32 (3) The excess of the proceeds of the property taxes imposed for
8069	8069	33 the assessment date with respect to which the allocation and
8070	8070	34 distribution is made that are attributable to taxes imposed after
8071	8071	35 being approved by the voters in a referendum or local public
8072	8072	36 question conducted after April 30, 2010, not otherwise included
8073	8073	37 in subdivisions (1) and (2) shall be allocated to and, when
8074	8074	38 collected, paid into the funds of the taxing unit for which the
8075	8075	39 referendum or local public question was conducted.
8076	8076	40 (4) Except as otherwise provided in this section, property tax
8077	8077	41 proceeds in excess of those described in subdivisions (1), (2), and
8078	8078	42 (3) shall be allocated to the redevelopment district and, when
8079	8079	2025 IN 1402—LS 7150/DI 120 187
8080	8080	1 collected, paid into an allocation fund for that allocation area that
8081	8081	2 may be used by the redevelopment district only to do one (1) or
8082	8082	3 more of the following:
8083	8083	4 (A) Pay the principal of and interest on any obligations
8084	8084	5 payable solely from allocated tax proceeds which are incurred
8085	8085	6 by the redevelopment district for the purpose of financing or
8086	8086	7 refinancing the redevelopment of that allocation area.
8087	8087	8 (B) Establish, augment, or restore the debt service reserve for
8088	8088	9 bonds payable solely or in part from allocated tax proceeds in
8089	8089	10 that allocation area.
8090	8090	11 (C) Pay the principal of and interest on bonds payable from
8091	8091	12 allocated tax proceeds in that allocation area and from the
8092	8092	13 special tax levied under section 27 of this chapter.
8093	8093	14 (D) Pay the principal of and interest on bonds issued by the
8094	8094	15 unit to pay for local public improvements that are physically
8095	8095	16 located in or physically connected to that allocation area.
8096	8096	17 (E) Pay premiums on the redemption before maturity of bonds
8097	8097	18 payable solely or in part from allocated tax proceeds in that
8098	8098	19 allocation area.
8099	8099	20 (F) Make payments on leases payable from allocated tax
8100	8100	21 proceeds in that allocation area under section 25.2 of this
8101	8101	22 chapter.
8102	8102	23 (G) Reimburse the unit for expenditures made by it for local
8103	8103	24 public improvements (which include buildings, parking
8104	8104	25 facilities, and other items described in section 25.1(a) of this
8105	8105	26 chapter) that are physically located in or physically connected
8106	8106	27 to that allocation area.
8107	8107	28 (H) Reimburse the unit for rentals paid by it for a building or
8108	8108	29 parking facility that is physically located in or physically
8109	8109	30 connected to that allocation area under any lease entered into
8110	8110	31 under IC 36-1-10.
8111	8111	32 (I) For property taxes first due and payable before January 1,
8112	8112	33 2009, pay all or a part of a property tax replacement credit to
8113	8113	34 taxpayers in an allocation area as determined by the
8114	8114	35 redevelopment commission. This credit equals the amount
8115	8115	36 determined under the following STEPS for each taxpayer in a
8116	8116	37 taxing district (as defined in IC 6-1.1-1-20) that contains all or
8117	8117	38 part of the allocation area:
8118	8118	39 STEP ONE: Determine that part of the sum of the amounts
8119	8119	40 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
8120	8120	41 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
8121	8121	42 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
8122	8122	2025 IN 1402—LS 7150/DI 120 188
8123	8123	1 the taxing district.
8124	8124	2 STEP TWO: Divide:
8125	8125	3 (i) that part of each county's eligible property tax
8126	8126	4 replacement amount (as defined in IC 6-1.1-21-2 (before its
8127	8127	5 repeal)) for that year as determined under IC 6-1.1-21-4
8128	8128	6 (before its repeal) that is attributable to the taxing district;
8129	8129	7 by
8130	8130	8 (ii) the STEP ONE sum.
8131	8131	9 STEP THREE: Multiply:
8132	8132	10 (i) the STEP TWO quotient; times
8133	8133	11 (ii) the total amount of the taxpayer's taxes (as defined in
8134	8134	12 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
8135	8135	13 that have been allocated during that year to an allocation
8136	8136	14 fund under this section.
8137	8137	15 If not all the taxpayers in an allocation area receive the credit
8138	8138	16 in full, each taxpayer in the allocation area is entitled to
8139	8139	17 receive the same proportion of the credit. A taxpayer may not
8140	8140	18 receive a credit under this section and a credit under section
8141	8141	19 39.5 of this chapter (before its repeal) in the same year.
8142	8142	20 (J) Pay expenses incurred by the redevelopment commission
8143	8143	21 for local public improvements that are in the allocation area or
8144	8144	22 serving the allocation area. Public improvements include
8145	8145	23 buildings, parking facilities, and other items described in
8146	8146	24 section 25.1(a) of this chapter.
8147	8147	25 (K) Reimburse public and private entities for expenses
8148	8148	26 incurred in training employees of industrial facilities that are
8149	8149	27 located:
8150	8150	28 (i) in the allocation area; and
8151	8151	29 (ii) on a parcel of real property that has been classified as
8152	8152	30 industrial property under the rules of the department of local
8153	8153	31 government finance.
8154	8154	32 However, the total amount of money spent for this purpose in
8155	8155	33 any year may not exceed the total amount of money in the
8156	8156	34 allocation fund that is attributable to property taxes paid by the
8157	8157	35 industrial facilities described in this clause. The
8158	8158	36 reimbursements under this clause must be made within three
8159	8159	37 (3) years after the date on which the investments that are the
8160	8160	38 basis for the increment financing are made.
8161	8161	39 (L) Pay the costs of carrying out an eligible efficiency project
8162	8162	40 (as defined in IC 36-9-41-1.5) within the unit that established
8163	8163	41 the redevelopment commission. However, property tax
8164	8164	42 proceeds may be used under this clause to pay the costs of
8165	8165	2025 IN 1402—LS 7150/DI 120 189
8166	8166	1 carrying out an eligible efficiency project only if those
8167	8167	2 property tax proceeds exceed the amount necessary to do the
8168	8168	3 following:
8169	8169	4 (i) Make, when due, any payments required under clauses
8170	8170	5 (A) through (K), including any payments of principal and
8171	8171	6 interest on bonds and other obligations payable under this
8172	8172	7 subdivision, any payments of premiums under this
8173	8173	8 subdivision on the redemption before maturity of bonds, and
8174	8174	9 any payments on leases payable under this subdivision.
8175	8175	10 (ii) Make any reimbursements required under this
8176	8176	11 subdivision.
8177	8177	12 (iii) Pay any expenses required under this subdivision.
8178	8178	13 (iv) Establish, augment, or restore any debt service reserve
8179	8179	14 under this subdivision.
8180	8180	15 (M) Expend money and provide financial assistance as
8181	8181	16 authorized in section 12.2(a)(27) of this chapter.
8182	8182	17 (N) Expend revenues that are allocated for police and fire
8183	8183	18 services on both capital expenditures and operating expenses
8184	8184	19 as authorized in section 12.2(a)(28) of this chapter.
8185	8185	20 The allocation fund may not be used for operating expenses of the
8186	8186	21 commission.
8187	8187	22 (5) Except as provided in subsection (g), before June 15 of each
8188	8188	23 year, the commission shall do the following:
8189	8189	24 (A) Determine the amount, if any, by which the assessed value
8190	8190	25 of the taxable property in the allocation area for the most
8191	8191	26 recent assessment date minus the base assessed value, when
8192	8192	27 multiplied by the estimated tax rate of the allocation area, will
8193	8193	28 exceed the amount of assessed value needed to produce the
8194	8194	29 property taxes necessary to make, when due, principal and
8195	8195	30 interest payments on bonds described in subdivision (4), plus
8196	8196	31 the amount necessary for other purposes described in
8197	8197	32 subdivision (4).
8198	8198	33 (B) Provide a written notice to the county auditor, the fiscal
8199	8199	34 body of the county or municipality that established the
8200	8200	35 department of redevelopment, and the officers who are
8201	8201	36 authorized to fix budgets, tax rates, and tax levies under
8202	8202	37 IC 6-1.1-17-5 for each of the other taxing units that is wholly
8203	8203	38 or partly located within the allocation area. The county auditor,
8204	8204	39 upon receiving the notice, shall forward this notice (in an
8205	8205	40 electronic format) to the department of local government
8206	8206	41 finance not later than June 15 of each year. The notice must:
8207	8207	42 (i) state the amount, if any, of excess assessed value that the
8208	8208	2025 IN 1402—LS 7150/DI 120 190
8209	8209	1 commission has determined may be allocated to the
8210	8210	2 respective taxing units in the manner prescribed in
8211	8211	3 subdivision (1); or
8212	8212	4 (ii) state that the commission has determined that there is no
8213	8213	5 excess assessed value that may be allocated to the respective
8214	8214	6 taxing units in the manner prescribed in subdivision (1).
8215	8215	7 The county auditor shall allocate to the respective taxing units
8216	8216	8 the amount, if any, of excess assessed value determined by the
8217	8217	9 commission. The commission may not authorize an allocation
8218	8218	10 of assessed value to the respective taxing units under this
8219	8219	11 subdivision if to do so would endanger the interests of the
8220	8220	12 holders of bonds described in subdivision (4) or lessors under
8221	8221	13 section 25.3 of this chapter.
8222	8222	14 (C) If:
8223	8223	15 (i) the amount of excess assessed value determined by the
8224	8224	16 commission is expected to generate more than two hundred
8225	8225	17 percent (200%) of the amount of allocated tax proceeds
8226	8226	18 necessary to make, when due, principal and interest
8227	8227	19 payments on bonds described in subdivision (4); plus
8228	8228	20 (ii) the amount necessary for other purposes described in
8229	8229	21 subdivision (4);
8230	8230	22 the commission shall submit to the legislative body of the unit
8231	8231	23 its determination of the excess assessed value that the
8232	8232	24 commission proposes to allocate to the respective taxing units
8233	8233	25 in the manner prescribed in subdivision (1). The legislative
8234	8234	26 body of the unit may approve the commission's determination
8235	8235	27 or modify the amount of the excess assessed value that will be
8236	8236	28 allocated to the respective taxing units in the manner
8237	8237	29 prescribed in subdivision (1).
8238	8238	30 (6) Notwithstanding subdivision (5), in the case of an allocation
8239	8239	31 area that is established after June 30, 2019, and that is located in
8240	8240	32 a redevelopment project area described in section 25.1(c)(3)(C)
8241	8241	33 of this chapter, an economic development area described in
8242	8242	34 section 25.1(c)(3)(C) of this chapter, or an urban renewal project
8243	8243	35 area described in section 25.1(c)(3)(C) of this chapter, for each
8244	8244	36 year the allocation provision is in effect, if the amount of excess
8245	8245	37 assessed value determined by the commission under subdivision
8246	8246	38 (5)(A) is expected to generate more than two hundred percent
8247	8247	39 (200%) of:
8248	8248	40 (A) the amount of allocated tax proceeds necessary to make,
8249	8249	41 when due, principal and interest payments on bonds described
8250	8250	42 in subdivision (4) for the project; plus
8251	8251	2025 IN 1402—LS 7150/DI 120 191
8252	8252	1 (B) the amount necessary for other purposes described in
8253	8253	2 subdivision (4) for the project;
8254	8254	3 the amount of the excess assessed value that generates more than
8255	8255	4 two hundred percent (200%) of the amounts described in clauses
8256	8256	5 (A) and (B) shall be allocated to the respective taxing units in the
8257	8257	6 manner prescribed by subdivision (1).
8258	8258	7 (c) For the purpose of allocating taxes levied by or for any taxing
8259	8259	8 unit or units, the assessed value of taxable property in a territory in the
8260	8260	9 allocation area that is annexed by any taxing unit after the effective
8261	8261	10 date of the allocation provision of the declaratory resolution is the
8262	8262	11 lesser of:
8263	8263	12 (1) the assessed value of the property for the assessment date with
8264	8264	13 respect to which the allocation and distribution is made; or
8265	8265	14 (2) the base assessed value.
8266	8266	15 (d) Property tax proceeds allocable to the redevelopment district
8267	8267	16 under subsection (b)(4) may, subject to subsection (b)(5), be
8268	8268	17 irrevocably pledged by the redevelopment district for payment as set
8269	8269	18 forth in subsection (b)(4).
8270	8270	19 (e) Notwithstanding any other law, each assessor shall, upon
8271	8271	20 petition of the redevelopment commission, reassess the taxable
8272	8272	21 property situated upon or in, or added to, the allocation area, effective
8273	8273	22 on the next assessment date after the petition.
8274	8274	23 (f) Notwithstanding any other law, the assessed value of all taxable
8275	8275	24 property in the allocation area, for purposes of tax limitation, property
8276	8276	25 tax replacement, and formulation of the budget, tax rate, and tax levy
8277	8277	26 for each political subdivision in which the property is located is the
8278	8278	27 lesser of:
8279	8279	28 (1) the assessed value of the property as valued without regard to
8280	8280	29 this section; or
8281	8281	30 (2) the base assessed value.
8282	8282	31 (g) If any part of the allocation area is located in an enterprise zone
8283	8283	32 created under IC 5-28-15, the unit that designated the allocation area
8284	8284	33 shall create funds as specified in this subsection. A unit that has
8285	8285	34 obligations, bonds, or leases payable from allocated tax proceeds under
8286	8286	35 subsection (b)(4) shall establish an allocation fund for the purposes
8287	8287	36 specified in subsection (b)(4) and a special zone fund. Such a unit
8288	8288	37 shall, until the end of the enterprise zone phase out period, deposit each
8289	8289	38 year in the special zone fund any amount in the allocation fund derived
8290	8290	39 from property tax proceeds in excess of those described in subsection
8291	8291	40 (b)(1), (b)(2), and (b)(3) from property located in the enterprise zone
8292	8292	41 that exceeds the amount sufficient for the purposes specified in
8293	8293	42 subsection (b)(4) for the year. The amount sufficient for purposes
8294	8294	2025 IN 1402—LS 7150/DI 120 192
8295	8295	1 specified in subsection (b)(4) for the year shall be determined based on
8296	8296	2 the pro rata portion of such current property tax proceeds from the part
8297	8297	3 of the enterprise zone that is within the allocation area as compared to
8298	8298	4 all such current property tax proceeds derived from the allocation area.
8299	8299	5 A unit that has no obligations, bonds, or leases payable from allocated
8300	8300	6 tax proceeds under subsection (b)(4) shall establish a special zone fund
8301	8301	7 and deposit all the property tax proceeds in excess of those described
8302	8302	8 in subsection (b)(1), (b)(2), and (b)(3) in the fund derived from
8303	8303	9 property tax proceeds in excess of those described in subsection (b)(1),
8304	8304	10 (b)(2), and (b)(3) from property located in the enterprise zone. The unit
8305	8305	11 that creates the special zone fund shall use the fund (based on the
8306	8306	12 recommendations of the urban enterprise association) for programs in
8307	8307	13 job training, job enrichment, and basic skill development that are
8308	8308	14 designed to benefit residents and employers in the enterprise zone or
8309	8309	15 other purposes specified in subsection (b)(4), except that where
8310	8310	16 reference is made in subsection (b)(4) to allocation area it shall refer
8311	8311	17 for purposes of payments from the special zone fund only to that part
8312	8312	18 of the allocation area that is also located in the enterprise zone. Those
8313	8313	19 programs shall reserve at least one-half (1/2) of their enrollment in any
8314	8314	20 session for residents of the enterprise zone.
8315	8315	21 (h) The state board of accounts and department of local government
8316	8316	22 finance shall make the rules and prescribe the forms and procedures
8317	8317	23 that they consider expedient for the implementation of this chapter.
8318	8318	24 After each reassessment in an area under a reassessment plan prepared
8319	8319	25 under IC 6-1.1-4-4.2, the department of local government finance shall
8320	8320	26 adjust the base assessed value one (1) time to neutralize any effect of
8321	8321	27 the reassessment of the real property in the area on the property tax
8322	8322	28 proceeds allocated to the redevelopment district under this section.
8323	8323	29 After each annual adjustment under IC 6-1.1-4-4.5, the department of
8324	8324	30 local government finance shall adjust the base assessed value one (1)
8325	8325	31 time to neutralize any effect of the annual adjustment on the property
8326	8326	32 tax proceeds allocated to the redevelopment district under this section.
8327	8327	33 However, the adjustments under this subsection:
8328	8328	34 (1) may not include the effect of phasing in assessed value due to
8329	8329	35 property tax abatements under IC 6-1.1-12.1;
8330	8330	36 (2) may not produce less property tax proceeds allocable to the
8331	8331	37 redevelopment district under subsection (b)(4) than would
8332	8332	38 otherwise have been received if the reassessment under the
8333	8333	39 reassessment plan or the annual adjustment had not occurred; and
8334	8334	40 (3) may decrease base assessed value only to the extent that
8335	8335	41 assessed values in the allocation area have been decreased due to
8336	8336	42 annual adjustments or the reassessment under the reassessment
8337	8337	2025 IN 1402—LS 7150/DI 120 193
8338	8338	1 plan.
8339	8339	2 Assessed value increases attributable to the application of an abatement
8340	8340	3 schedule under IC 6-1.1-12.1 may not be included in the base assessed
8341	8341	4 value of an allocation area. The department of local government
8342	8342	5 finance may prescribe procedures for county and township officials to
8343	8343	6 follow to assist the department in making the adjustments.
8344	8344	7 (i) The allocation deadline referred to in subsection (b) is
8345	8345	8 determined in the following manner:
8346	8346	9 (1) The initial allocation deadline is December 31, 2011.
8347	8347	10 (2) Subject to subdivision (3), the initial allocation deadline and
8348	8348	11 subsequent allocation deadlines are automatically extended in
8349	8349	12 increments of five (5) years, so that allocation deadlines
8350	8350	13 subsequent to the initial allocation deadline fall on December 31,
8351	8351	14 2016, and December 31 of each fifth year thereafter.
8352	8352	15 (3) At least one (1) year before the date of an allocation deadline
8353	8353	16 determined under subdivision (2), the general assembly may enact
8354	8354	17 a law that:
8355	8355	18 (A) terminates the automatic extension of allocation deadlines
8356	8356	19 under subdivision (2); and
8357	8357	20 (B) specifically designates a particular date as the final
8358	8358	21 allocation deadline.
8359	8359	22 (j) If a redevelopment commission adopts a declaratory resolution
8360	8360	23 or an amendment to a declaratory resolution that contains an allocation
8361	8361	24 provision and the redevelopment commission makes either of the
8362	8362	25 filings required under section 17(e) of this chapter after the first
8363	8363	26 anniversary of the effective date of the allocation provision, the auditor
8364	8364	27 of the county in which the unit is located shall compute the base
8365	8365	28 assessed value for the allocation area using the assessment date
8366	8366	29 immediately preceding the later of:
8367	8367	30 (1) the date on which the documents are filed with the county
8368	8368	31 auditor; or
8369	8369	32 (2) the date on which the documents are filed with the department
8370	8370	33 of local government finance.
8371	8371	34 (k) For an allocation area established after June 30, 2025,
8372	8372	35 "residential property" refers to the assessed value of property that is
8373	8373	36 allocated to the one percent (1%) homestead land and improvement
8374	8374	37 categories in the county tax and billing software system, along with the
8375	8375	38 residential assessed value as defined for purposes of calculating the
8376	8376	39 rate for the local income tax property tax relief credit designated for
8377	8377	40 residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
8378	8378	41 SECTION 177. IC 36-7-15.1-26, AS AMENDED BY P.L.174-2022,
8379	8379	42 SECTION 72, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8380	8380	2025 IN 1402—LS 7150/DI 120 194
8381	8381	1 JULY 1, 2026]: Sec. 26. (a) As used in this section:
8382	8382	2 "Allocation area" means that part of a redevelopment project area
8383	8383	3 to which an allocation provision of a resolution adopted under section
8384	8384	4 8 of this chapter refers for purposes of distribution and allocation of
8385	8385	5 property taxes.
8386	8386	6 "Base assessed value" means, subject to subsection (j), the
8387	8387	7 following:
8388	8388	8 (1) If an allocation provision is adopted after June 30, 1995, in a
8389	8389	9 declaratory resolution or an amendment to a declaratory
8390	8390	10 resolution establishing an economic development area:
8391	8391	11 (A) the net assessed value of all the property as finally
8392	8392	12 determined for the assessment date immediately preceding the
8393	8393	13 effective date of the allocation provision of the declaratory
8394	8394	14 resolution, as adjusted under subsection (h); plus
8395	8395	15 (B) to the extent that it is not included in clause (A), the net
8396	8396	16 assessed value of property that is assessed as residential
8397	8397	17 property under the rules of the department of local government
8398	8398	18 finance, within the allocation area, as finally determined for
8399	8399	19 the current assessment date.
8400	8400	20 (2) If an allocation provision is adopted after June 30, 1997, in a
8401	8401	21 declaratory resolution or an amendment to a declaratory
8402	8402	22 resolution establishing a redevelopment project area:
8403	8403	23 (A) the net assessed value of all the property as finally
8404	8404	24 determined for the assessment date immediately preceding the
8405	8405	25 effective date of the allocation provision of the declaratory
8406	8406	26 resolution, as adjusted under subsection (h); plus
8407	8407	27 (B) to the extent that it is not included in clause (A), the net
8408	8408	28 assessed value of property that is assessed as residential
8409	8409	29 property under the rules of the department of local government
8410	8410	30 finance, within the allocation area, as finally determined for
8411	8411	31 the current assessment date.
8412	8412	32 (3) If:
8413	8413	33 (A) an allocation provision adopted before June 30, 1995, in
8414	8414	34 a declaratory resolution or an amendment to a declaratory
8415	8415	35 resolution establishing a redevelopment project area expires
8416	8416	36 after June 30, 1997; and
8417	8417	37 (B) after June 30, 1997, a new allocation provision is included
8418	8418	38 in an amendment to the declaratory resolution;
8419	8419	39 the net assessed value of all the property as finally determined for
8420	8420	40 the assessment date immediately preceding the effective date of
8421	8421	41 the allocation provision adopted after June 30, 1997, as adjusted
8422	8422	42 under subsection (h).
8423	8423	2025 IN 1402—LS 7150/DI 120 195
8424	8424	1 (4) Except as provided in subdivision (5), for all other allocation
8425	8425	2 areas, the net assessed value of all the property as finally
8426	8426	3 determined for the assessment date immediately preceding the
8427	8427	4 effective date of the allocation provision of the declaratory
8428	8428	5 resolution, as adjusted under subsection (h).
8429	8429	6 (5) If an allocation area established in an economic development
8430	8430	7 area before July 1, 1995, is expanded after June 30, 1995, the
8431	8431	8 definition in subdivision (1) applies to the expanded part of the
8432	8432	9 area added after June 30, 1995.
8433	8433	10 (6) If an allocation area established in a redevelopment project
8434	8434	11 area before July 1, 1997, is expanded after June 30, 1997, the
8435	8435	12 definition in subdivision (2) applies to the expanded part of the
8436	8436	13 area added after June 30, 1997.
8437	8437	14 Except as provided in section 26.2 of this chapter, "property taxes"
8438	8438	15 means taxes imposed under IC 6-1.1 on real property. However, upon
8439	8439	16 approval by a resolution of the redevelopment commission adopted
8440	8440	17 before June 1, 1987, "property taxes" also includes taxes imposed
8441	8441	18 under IC 6-1.1 on depreciable personal property. If a redevelopment
8442	8442	19 commission adopted before June 1, 1987, a resolution to include within
8443	8443	20 the definition of property taxes, taxes imposed under IC 6-1.1 on
8444	8444	21 depreciable personal property that has a useful life in excess of eight
8445	8445	22 (8) years, the commission may by resolution determine the percentage
8446	8446	23 of taxes imposed under IC 6-1.1 on all depreciable personal property
8447	8447	24 that will be included within the definition of property taxes. However,
8448	8448	25 the percentage included must not exceed twenty-five percent (25%) of
8449	8449	26 the taxes imposed under IC 6-1.1 on all depreciable personal property.
8450	8450	27 (b) A resolution adopted under section 8 of this chapter on or before
8451	8451	28 the allocation deadline determined under subsection (i) may include a
8452	8452	29 provision with respect to the allocation and distribution of property
8453	8453	30 taxes for the purposes and in the manner provided in this section. A
8454	8454	31 resolution previously adopted may include an allocation provision by
8455	8455	32 the amendment of that resolution on or before the allocation deadline
8456	8456	33 determined under subsection (i) in accordance with the procedures
8457	8457	34 required for its original adoption. A declaratory resolution or
8458	8458	35 amendment that establishes an allocation provision must include a
8459	8459	36 specific finding of fact, supported by evidence, that the adoption of the
8460	8460	37 allocation provision will result in new property taxes in the area that
8461	8461	38 would not have been generated but for the adoption of the allocation
8462	8462	39 provision. For an allocation area established before July 1, 1995, the
8463	8463	40 expiration date of any allocation provisions for the allocation area is
8464	8464	41 June 30, 2025, or the last date of any obligations that are outstanding
8465	8465	42 on July 1, 2015, whichever is later. However, for an allocation area
8466	8466	2025 IN 1402—LS 7150/DI 120 196
8467	8467	1 identified as the Consolidated Allocation Area in the report submitted
8468	8468	2 in 2013 to the fiscal body under section 36.3 of this chapter, the
8469	8469	3 expiration date of any allocation provisions for the allocation area is
8470	8470	4 January 1, 2051. A declaratory resolution or an amendment that
8471	8471	5 establishes an allocation provision after June 30, 1995, must specify an
8472	8472	6 expiration date for the allocation provision. For an allocation area
8473	8473	7 established before July 1, 2008, the expiration date may not be more
8474	8474	8 than thirty (30) years after the date on which the allocation provision
8475	8475	9 is established. For an allocation area established after June 30, 2008,
8476	8476	10 the expiration date may not be more than twenty-five (25) years after
8477	8477	11 the date on which the first obligation was incurred to pay principal and
8478	8478	12 interest on bonds or lease rentals on leases payable from tax increment
8479	8479	13 revenues. However, with respect to bonds or other obligations that were
8480	8480	14 issued before July 1, 2008, if any of the bonds or other obligations that
8481	8481	15 were scheduled when issued to mature before the specified expiration
8482	8482	16 date and that are payable only from allocated tax proceeds with respect
8483	8483	17 to the allocation area remain outstanding as of the expiration date, the
8484	8484	18 allocation provision does not expire until all of the bonds or other
8485	8485	19 obligations are no longer outstanding. The allocation provision may
8486	8486	20 apply to all or part of the redevelopment project area. The allocation
8487	8487	21 provision must require that any property taxes subsequently levied by
8488	8488	22 or for the benefit of any public body entitled to a distribution of
8489	8489	23 property taxes on taxable property in the allocation area be allocated
8490	8490	24 and distributed as follows:
8491	8491	25 (1) Except as otherwise provided in this section, the proceeds of
8492	8492	26 the taxes attributable to the lesser of:
8493	8493	27 (A) the assessed value of the property for the assessment date
8494	8494	28 with respect to which the allocation and distribution is made;
8495	8495	29 or
8496	8496	30 (B) the base assessed value;
8497	8497	31 shall be allocated to and, when collected, paid into the funds of
8498	8498	32 the respective taxing units.
8499	8499	33 (2) The excess of the proceeds of the property taxes imposed for
8500	8500	34 the assessment date with respect to which the allocation and
8501	8501	35 distribution is made that are attributable to taxes imposed after
8502	8502	36 being approved by the voters in a referendum or local public
8503	8503	37 question conducted after April 30, 2010, not otherwise included
8504	8504	38 in subdivision (1) shall be allocated to and, when collected, paid
8505	8505	39 into the funds of the taxing unit for which the referendum or local
8506	8506	40 public question was conducted.
8507	8507	41 (3) Except as otherwise provided in this section, property tax
8508	8508	42 proceeds in excess of those described in subdivisions (1) and (2)
8509	8509	2025 IN 1402—LS 7150/DI 120 197
8510	8510	1 shall be allocated to the redevelopment district and, when
8511	8511	2 collected, paid into a special fund for that allocation area that may
8512	8512	3 be used by the redevelopment district only to do one (1) or more
8513	8513	4 of the following:
8514	8514	5 (A) Pay the principal of and interest on any obligations
8515	8515	6 payable solely from allocated tax proceeds that are incurred by
8516	8516	7 the redevelopment district for the purpose of financing or
8517	8517	8 refinancing the redevelopment of that allocation area.
8518	8518	9 (B) Establish, augment, or restore the debt service reserve for
8519	8519	10 bonds payable solely or in part from allocated tax proceeds in
8520	8520	11 that allocation area.
8521	8521	12 (C) Pay the principal of and interest on bonds payable from
8522	8522	13 allocated tax proceeds in that allocation area and from the
8523	8523	14 special tax levied under section 19 of this chapter.
8524	8524	15 (D) Pay the principal of and interest on bonds issued by the
8525	8525	16 consolidated city to pay for local public improvements that are
8526	8526	17 physically located in or physically connected to that allocation
8527	8527	18 area.
8528	8528	19 (E) Pay premiums on the redemption before maturity of bonds
8529	8529	20 payable solely or in part from allocated tax proceeds in that
8530	8530	21 allocation area.
8531	8531	22 (F) Make payments on leases payable from allocated tax
8532	8532	23 proceeds in that allocation area under section 17.1 of this
8533	8533	24 chapter.
8534	8534	25 (G) Reimburse the consolidated city for expenditures for local
8535	8535	26 public improvements (which include buildings, parking
8536	8536	27 facilities, and other items set forth in section 17 of this
8537	8537	28 chapter) that are physically located in or physically connected
8538	8538	29 to that allocation area.
8539	8539	30 (H) Reimburse the unit for rentals paid by it for a building or
8540	8540	31 parking facility that is physically located in or physically
8541	8541	32 connected to that allocation area under any lease entered into
8542	8542	33 under IC 36-1-10.
8543	8543	34 (I) Reimburse public and private entities for expenses incurred
8544	8544	35 in training employees of industrial facilities that are located:
8545	8545	36 (i) in the allocation area; and
8546	8546	37 (ii) on a parcel of real property that has been classified as
8547	8547	38 industrial property under the rules of the department of local
8548	8548	39 government finance.
8549	8549	40 However, the total amount of money spent for this purpose in
8550	8550	41 any year may not exceed the total amount of money in the
8551	8551	42 allocation fund that is attributable to property taxes paid by the
8552	8552	2025 IN 1402—LS 7150/DI 120 198
8553	8553	1 industrial facilities described in this clause. The
8554	8554	2 reimbursements under this clause must be made within three
8555	8555	3 (3) years after the date on which the investments that are the
8556	8556	4 basis for the increment financing are made.
8557	8557	5 (J) Pay the costs of carrying out an eligible efficiency project
8558	8558	6 (as defined in IC 36-9-41-1.5) within the unit that established
8559	8559	7 the redevelopment commission. However, property tax
8560	8560	8 proceeds may be used under this clause to pay the costs of
8561	8561	9 carrying out an eligible efficiency project only if those
8562	8562	10 property tax proceeds exceed the amount necessary to do the
8563	8563	11 following:
8564	8564	12 (i) Make, when due, any payments required under clauses
8565	8565	13 (A) through (I), including any payments of principal and
8566	8566	14 interest on bonds and other obligations payable under this
8567	8567	15 subdivision, any payments of premiums under this
8568	8568	16 subdivision on the redemption before maturity of bonds, and
8569	8569	17 any payments on leases payable under this subdivision.
8570	8570	18 (ii) Make any reimbursements required under this
8571	8571	19 subdivision.
8572	8572	20 (iii) Pay any expenses required under this subdivision.
8573	8573	21 (iv) Establish, augment, or restore any debt service reserve
8574	8574	22 under this subdivision.
8575	8575	23 (K) Expend money and provide financial assistance as
8576	8576	24 authorized in section 7(a)(21) of this chapter.
8577	8577	25 The special fund may not be used for operating expenses of the
8578	8578	26 commission.
8579	8579	27 (4) Before June 15 of each year, the commission shall do the
8580	8580	28 following:
8581	8581	29 (A) Determine the amount, if any, by which the assessed value
8582	8582	30 of the taxable property in the allocation area for the most
8583	8583	31 recent assessment date minus the base assessed value, when
8584	8584	32 multiplied by the estimated tax rate of the allocation area will
8585	8585	33 exceed the amount of assessed value needed to provide the
8586	8586	34 property taxes necessary to make, when due, principal and
8587	8587	35 interest payments on bonds described in subdivision (3) plus
8588	8588	36 the amount necessary for other purposes described in
8589	8589	37 subdivision (3) and subsection (g).
8590	8590	38 (B) Provide a written notice to the county auditor, the
8591	8591	39 legislative body of the consolidated city, the officers who are
8592	8592	40 authorized to fix budgets, tax rates, and tax levies under
8593	8593	41 IC 6-1.1-17-5 for each of the other taxing units that is wholly
8594	8594	42 or partly located within the allocation area, and (in an
8595	8595	2025 IN 1402—LS 7150/DI 120 199
8596	8596	1 electronic format) the department of local government finance.
8597	8597	2 The notice must:
8598	8598	3 (i) state the amount, if any, of excess assessed value that the
8599	8599	4 commission has determined may be allocated to the
8600	8600	5 respective taxing units in the manner prescribed in
8601	8601	6 subdivision (1); or
8602	8602	7 (ii) state that the commission has determined that there is no
8603	8603	8 excess assessed value that may be allocated to the respective
8604	8604	9 taxing units in the manner prescribed in subdivision (1).
8605	8605	10 The county auditor shall allocate to the respective taxing units
8606	8606	11 the amount, if any, of excess assessed value determined by the
8607	8607	12 commission. The commission may not authorize an allocation
8608	8608	13 to the respective taxing units under this subdivision if to do so
8609	8609	14 would endanger the interests of the holders of bonds described
8610	8610	15 in subdivision (3).
8611	8611	16 (C) If:
8612	8612	17 (i) the amount of excess assessed value determined by the
8613	8613	18 commission is expected to generate more than two hundred
8614	8614	19 percent (200%) of the amount of allocated tax proceeds
8615	8615	20 necessary to make, when due, principal and interest
8616	8616	21 payments on bonds described in subdivision (3); plus
8617	8617	22 (ii) the amount necessary for other purposes described in
8618	8618	23 subdivision (3) and subsection (g);
8619	8619	24 the commission shall submit to the legislative body of the unit
8620	8620	25 the commission's determination of the excess assessed value
8621	8621	26 that the commission proposes to allocate to the respective
8622	8622	27 taxing units in the manner prescribed in subdivision (1). The
8623	8623	28 legislative body of the unit may approve the commission's
8624	8624	29 determination or modify the amount of the excess assessed
8625	8625	30 value that will be allocated to the respective taxing units in the
8626	8626	31 manner prescribed in subdivision (1).
8627	8627	32 (c) For the purpose of allocating taxes levied by or for any taxing
8628	8628	33 unit or units, the assessed value of taxable property in a territory in the
8629	8629	34 allocation area that is annexed by any taxing unit after the effective
8630	8630	35 date of the allocation provision of the resolution is the lesser of:
8631	8631	36 (1) the assessed value of the property for the assessment date with
8632	8632	37 respect to which the allocation and distribution is made; or
8633	8633	38 (2) the base assessed value.
8634	8634	39 (d) Property tax proceeds allocable to the redevelopment district
8635	8635	40 under subsection (b)(3) may, subject to subsection (b)(4), be
8636	8636	41 irrevocably pledged by the redevelopment district for payment as set
8637	8637	42 forth in subsection (b)(3).
8638	8638	2025 IN 1402—LS 7150/DI 120 200
8639	8639	1 (e) Notwithstanding any other law, each assessor shall, upon
8640	8640	2 petition of the commission, reassess the taxable property situated upon
8641	8641	3 or in, or added to, the allocation area, effective on the next assessment
8642	8642	4 date after the petition.
8643	8643	5 (f) Notwithstanding any other law, the assessed value of all taxable
8644	8644	6 property in the allocation area, for purposes of tax limitation, property
8645	8645	7 tax replacement, and formulation of the budget, tax rate, and tax levy
8646	8646	8 for each political subdivision in which the property is located is the
8647	8647	9 lesser of:
8648	8648	10 (1) the assessed value of the property as valued without regard to
8649	8649	11 this section; or
8650	8650	12 (2) the base assessed value.
8651	8651	13 (g) If any part of the allocation area is located in an enterprise zone
8652	8652	14 created under IC 5-28-15, the unit that designated the allocation area
8653	8653	15 shall create funds as specified in this subsection. A unit that has
8654	8654	16 obligations, bonds, or leases payable from allocated tax proceeds under
8655	8655	17 subsection (b)(3) shall establish an allocation fund for the purposes
8656	8656	18 specified in subsection (b)(3) and a special zone fund. Such a unit
8657	8657	19 shall, until the end of the enterprise zone phase out period, deposit each
8658	8658	20 year in the special zone fund the amount in the allocation fund derived
8659	8659	21 from property tax proceeds in excess of those described in subsection
8660	8660	22 (b)(1) and (b)(2) from property located in the enterprise zone that
8661	8661	23 exceeds the amount sufficient for the purposes specified in subsection
8662	8662	24 (b)(3) for the year. A unit that has no obligations, bonds, or leases
8663	8663	25 payable from allocated tax proceeds under subsection (b)(3) shall
8664	8664	26 establish a special zone fund and deposit all the property tax proceeds
8665	8665	27 in excess of those described in subsection (b)(1) and (b)(2) in the fund
8666	8666	28 derived from property tax proceeds in excess of those described in
8667	8667	29 subsection (b)(1) and (b)(2) from property located in the enterprise
8668	8668	30 zone. The unit that creates the special zone fund shall use the fund,
8669	8669	31 based on the recommendations of the urban enterprise association, for
8670	8670	32 one (1) or more of the following purposes:
8671	8671	33 (1) To pay for programs in job training, job enrichment, and basic
8672	8672	34 skill development designed to benefit residents and employers in
8673	8673	35 the enterprise zone. The programs must reserve at least one-half
8674	8674	36 (1/2) of the enrollment in any session for residents of the
8675	8675	37 enterprise zone.
8676	8676	38 (2) To make loans and grants for the purpose of stimulating
8677	8677	39 business activity in the enterprise zone or providing employment
8678	8678	40 for enterprise zone residents in the enterprise zone. These loans
8679	8679	41 and grants may be made to the following:
8680	8680	42 (A) Businesses operating in the enterprise zone.
8681	8681	2025 IN 1402—LS 7150/DI 120 201
8682	8682	1 (B) Businesses that will move their operations to the enterprise
8683	8683	2 zone if such a loan or grant is made.
8684	8684	3 (3) To provide funds to carry out other purposes specified in
8685	8685	4 subsection (b)(3). However, where reference is made in
8686	8686	5 subsection (b)(3) to the allocation area, the reference refers for
8687	8687	6 purposes of payments from the special zone fund only to that part
8688	8688	7 of the allocation area that is also located in the enterprise zone.
8689	8689	8 (h) The state board of accounts and department of local government
8690	8690	9 finance shall make the rules and prescribe the forms and procedures
8691	8691	10 that they consider expedient for the implementation of this chapter.
8692	8692	11 After each reassessment under a reassessment plan prepared under
8693	8693	12 IC 6-1.1-4-4.2, the department of local government finance shall adjust
8694	8694	13 the base assessed value one (1) time to neutralize any effect of the
8695	8695	14 reassessment of the real property in the area on the property tax
8696	8696	15 proceeds allocated to the redevelopment district under this section.
8697	8697	16 After each annual adjustment under IC 6-1.1-4-4.5, the department of
8698	8698	17 local government finance shall adjust the base assessed value to
8699	8699	18 neutralize any effect of the annual adjustment on the property tax
8700	8700	19 proceeds allocated to the redevelopment district under this section.
8701	8701	20 However, the adjustments under this subsection may not include the
8702	8702	21 effect of property tax abatements under IC 6-1.1-12.1, and these
8703	8703	22 adjustments may not produce less property tax proceeds allocable to
8704	8704	23 the redevelopment district under subsection (b)(3) than would
8705	8705	24 otherwise have been received if the reassessment under the
8706	8706	25 reassessment plan or annual adjustment had not occurred. The
8707	8707	26 department of local government finance may prescribe procedures for
8708	8708	27 county and township officials to follow to assist the department in
8709	8709	28 making the adjustments.
8710	8710	29 (i) The allocation deadline referred to in subsection (b) is
8711	8711	30 determined in the following manner:
8712	8712	31 (1) The initial allocation deadline is December 31, 2011.
8713	8713	32 (2) Subject to subdivision (3), the initial allocation deadline and
8714	8714	33 subsequent allocation deadlines are automatically extended in
8715	8715	34 increments of five (5) years, so that allocation deadlines
8716	8716	35 subsequent to the initial allocation deadline fall on December 31,
8717	8717	36 2016, and December 31 of each fifth year thereafter.
8718	8718	37 (3) At least one (1) year before the date of an allocation deadline
8719	8719	38 determined under subdivision (2), the general assembly may enact
8720	8720	39 a law that:
8721	8721	40 (A) terminates the automatic extension of allocation deadlines
8722	8722	41 under subdivision (2); and
8723	8723	42 (B) specifically designates a particular date as the final
8724	8724	2025 IN 1402—LS 7150/DI 120 202
8725	8725	1 allocation deadline.
8726	8726	2 (j) If the commission adopts a declaratory resolution or an
8727	8727	3 amendment to a declaratory resolution that contains an allocation
8728	8728	4 provision and the commission makes either of the filings required
8729	8729	5 under section 10(e) of this chapter after the first anniversary of the
8730	8730	6 effective date of the allocation provision, the auditor of the county in
8731	8731	7 which the unit is located shall compute the base assessed value for the
8732	8732	8 allocation area using the assessment date immediately preceding the
8733	8733	9 later of:
8734	8734	10 (1) the date on which the documents are filed with the county
8735	8735	11 auditor; or
8736	8736	12 (2) the date on which the documents are filed with the department
8737	8737	13 of local government finance.
8738	8738	14 (k) For an allocation area established after June 30, 2024,
8739	8739	15 "residential property" refers to the assessed value of property that is
8740	8740	16 allocated to the one percent (1%) homestead land and improvement
8741	8741	17 categories in the county tax and billing software system, along with the
8742	8742	18 residential assessed value as defined for purposes of calculating the
8743	8743	19 rate for the local income tax property tax relief credit designated for
8744	8744	20 residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
8745	8745	21 SECTION 178. IC 36-7-15.1-53, AS AMENDED BY P.L.174-2022,
8746	8746	22 SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8747	8747	23 JULY 1, 2026]: Sec. 53. (a) As used in this section:
8748	8748	24 "Allocation area" means that part of a redevelopment project area
8749	8749	25 to which an allocation provision of a resolution adopted under section
8750	8750	26 40 of this chapter refers for purposes of distribution and allocation of
8751	8751	27 property taxes.
8752	8752	28 "Base assessed value" means, subject to subsection (j):
8753	8753	29 (1) the net assessed value of all the property as finally determined
8754	8754	30 for the assessment date immediately preceding the effective date
8755	8755	31 of the allocation provision of the declaratory resolution, as
8756	8756	32 adjusted under subsection (h); plus
8757	8757	33 (2) to the extent that it is not included in subdivision (1), the net
8758	8758	34 assessed value of property that is assessed as residential property
8759	8759	35 under the rules of the department of local government finance, as
8760	8760	36 finally determined for the current assessment date.
8761	8761	37 Except as provided in section 55 of this chapter, "property taxes"
8762	8762	38 means taxes imposed under IC 6-1.1 on real property.
8763	8763	39 (b) A resolution adopted under section 40 of this chapter on or
8764	8764	40 before the allocation deadline determined under subsection (i) may
8765	8765	41 include a provision with respect to the allocation and distribution of
8766	8766	42 property taxes for the purposes and in the manner provided in this
8767	8767	2025 IN 1402—LS 7150/DI 120 203
8768	8768	1 section. A resolution previously adopted may include an allocation
8769	8769	2 provision by the amendment of that resolution on or before the
8770	8770	3 allocation deadline determined under subsection (i) in accordance with
8771	8771	4 the procedures required for its original adoption. A declaratory
8772	8772	5 resolution or an amendment that establishes an allocation provision
8773	8773	6 must be approved by resolution of the legislative body of the excluded
8774	8774	7 city and must specify an expiration date for the allocation provision.
8775	8775	8 For an allocation area established before July 1, 2008, the expiration
8776	8776	9 date may not be more than thirty (30) years after the date on which the
8777	8777	10 allocation provision is established. For an allocation area established
8778	8778	11 after June 30, 2008, the expiration date may not be more than
8779	8779	12 twenty-five (25) years after the date on which the first obligation was
8780	8780	13 incurred to pay principal and interest on bonds or lease rentals on
8781	8781	14 leases payable from tax increment revenues. However, with respect to
8782	8782	15 bonds or other obligations that were issued before July 1, 2008, if any
8783	8783	16 of the bonds or other obligations that were scheduled when issued to
8784	8784	17 mature before the specified expiration date and that are payable only
8785	8785	18 from allocated tax proceeds with respect to the allocation area remain
8786	8786	19 outstanding as of the expiration date, the allocation provision does not
8787	8787	20 expire until all of the bonds or other obligations are no longer
8788	8788	21 outstanding. The allocation provision may apply to all or part of the
8789	8789	22 redevelopment project area. The allocation provision must require that
8790	8790	23 any property taxes subsequently levied by or for the benefit of any
8791	8791	24 public body entitled to a distribution of property taxes on taxable
8792	8792	25 property in the allocation area be allocated and distributed as follows:
8793	8793	26 (1) Except as otherwise provided in this section, the proceeds of
8794	8794	27 the taxes attributable to the lesser of:
8795	8795	28 (A) the assessed value of the property for the assessment date
8796	8796	29 with respect to which the allocation and distribution is made;
8797	8797	30 or
8798	8798	31 (B) the base assessed value;
8799	8799	32 shall be allocated to and, when collected, paid into the funds of
8800	8800	33 the respective taxing units.
8801	8801	34 (2) The excess of the proceeds of the property taxes imposed for
8802	8802	35 the assessment date with respect to which the allocation and
8803	8803	36 distribution is made that are attributable to taxes imposed after
8804	8804	37 being approved by the voters in a referendum or local public
8805	8805	38 question conducted after April 30, 2010, not otherwise included
8806	8806	39 in subdivision (1) shall be allocated to and, when collected, paid
8807	8807	40 into the funds of the taxing unit for which the referendum or local
8808	8808	41 public question was conducted.
8809	8809	42 (3) Except as otherwise provided in this section, property tax
8810	8810	2025 IN 1402—LS 7150/DI 120 204
8811	8811	1 proceeds in excess of those described in subdivisions (1) and (2)
8812	8812	2 shall be allocated to the redevelopment district and, when
8813	8813	3 collected, paid into a special fund for that allocation area that may
8814	8814	4 be used by the redevelopment district only to do one (1) or more
8815	8815	5 of the following:
8816	8816	6 (A) Pay the principal of and interest on any obligations
8817	8817	7 payable solely from allocated tax proceeds that are incurred by
8818	8818	8 the redevelopment district for the purpose of financing or
8819	8819	9 refinancing the redevelopment of that allocation area.
8820	8820	10 (B) Establish, augment, or restore the debt service reserve for
8821	8821	11 bonds payable solely or in part from allocated tax proceeds in
8822	8822	12 that allocation area.
8823	8823	13 (C) Pay the principal of and interest on bonds payable from
8824	8824	14 allocated tax proceeds in that allocation area and from the
8825	8825	15 special tax levied under section 50 of this chapter.
8826	8826	16 (D) Pay the principal of and interest on bonds issued by the
8827	8827	17 excluded city to pay for local public improvements that are
8828	8828	18 physically located in or physically connected to that allocation
8829	8829	19 area.
8830	8830	20 (E) Pay premiums on the redemption before maturity of bonds
8831	8831	21 payable solely or in part from allocated tax proceeds in that
8832	8832	22 allocation area.
8833	8833	23 (F) Make payments on leases payable from allocated tax
8834	8834	24 proceeds in that allocation area under section 46 of this
8835	8835	25 chapter.
8836	8836	26 (G) Reimburse the excluded city for expenditures for local
8837	8837	27 public improvements (which include buildings, park facilities,
8838	8838	28 and other items set forth in section 45 of this chapter) that are
8839	8839	29 physically located in or physically connected to that allocation
8840	8840	30 area.
8841	8841	31 (H) Reimburse the unit for rentals paid by it for a building or
8842	8842	32 parking facility that is physically located in or physically
8843	8843	33 connected to that allocation area under any lease entered into
8844	8844	34 under IC 36-1-10.
8845	8845	35 (I) Reimburse public and private entities for expenses incurred
8846	8846	36 in training employees of industrial facilities that are located:
8847	8847	37 (i) in the allocation area; and
8848	8848	38 (ii) on a parcel of real property that has been classified as
8849	8849	39 industrial property under the rules of the department of local
8850	8850	40 government finance.
8851	8851	41 However, the total amount of money spent for this purpose in
8852	8852	42 any year may not exceed the total amount of money in the
8853	8853	2025 IN 1402—LS 7150/DI 120 205
8854	8854	1 allocation fund that is attributable to property taxes paid by the
8855	8855	2 industrial facilities described in this clause. The
8856	8856	3 reimbursements under this clause must be made within three
8857	8857	4 (3) years after the date on which the investments that are the
8858	8858	5 basis for the increment financing are made.
8859	8859	6 The special fund may not be used for operating expenses of the
8860	8860	7 commission.
8861	8861	8 (4) Before June 15 of each year, the commission shall do the
8862	8862	9 following:
8863	8863	10 (A) Determine the amount, if any, by which the assessed value
8864	8864	11 of the taxable property in the allocation area for the most
8865	8865	12 recent assessment date minus the base assessed value, when
8866	8866	13 multiplied by the estimated tax rate of the allocation area, will
8867	8867	14 exceed the amount of assessed value needed to provide the
8868	8868	15 property taxes necessary to make, when due, principal and
8869	8869	16 interest payments on bonds described in subdivision (3) plus
8870	8870	17 the amount necessary for other purposes described in
8871	8871	18 subdivision (3) and subsection (g).
8872	8872	19 (B) Provide a written notice to the county auditor, the fiscal
8873	8873	20 body of the county or municipality that established the
8874	8874	21 department of redevelopment, the officers who are authorized
8875	8875	22 to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
8876	8876	23 each of the other taxing units that is wholly or partly located
8877	8877	24 within the allocation area, and (in an electronic format) the
8878	8878	25 department of local government finance. The notice must:
8879	8879	26 (i) state the amount, if any, of excess assessed value that the
8880	8880	27 commission has determined may be allocated to the
8881	8881	28 respective taxing units in the manner prescribed in
8882	8882	29 subdivision (1); or
8883	8883	30 (ii) state that the commission has determined that there is no
8884	8884	31 excess assessed value that may be allocated to the respective
8885	8885	32 taxing units in the manner prescribed in subdivision (1).
8886	8886	33 The county auditor shall allocate to the respective taxing units
8887	8887	34 the amount, if any, of excess assessed value determined by the
8888	8888	35 commission. The commission may not authorize an allocation
8889	8889	36 to the respective taxing units under this subdivision if to do so
8890	8890	37 would endanger the interests of the holders of bonds described
8891	8891	38 in subdivision (3).
8892	8892	39 (c) For the purpose of allocating taxes levied by or for any taxing
8893	8893	40 unit or units, the assessed value of taxable property in a territory in the
8894	8894	41 allocation area that is annexed by any taxing unit after the effective
8895	8895	42 date of the allocation provision of the resolution is the lesser of:
8896	8896	2025 IN 1402—LS 7150/DI 120 206
8897	8897	1 (1) the assessed value of the property for the assessment date with
8898	8898	2 respect to which the allocation and distribution is made; or
8899	8899	3 (2) the base assessed value.
8900	8900	4 (d) Property tax proceeds allocable to the redevelopment district
8901	8901	5 under subsection (b)(3) may, subject to subsection (b)(4), be
8902	8902	6 irrevocably pledged by the redevelopment district for payment as set
8903	8903	7 forth in subsection (b)(3).
8904	8904	8 (e) Notwithstanding any other law, each assessor shall, upon
8905	8905	9 petition of the commission, reassess the taxable property situated upon
8906	8906	10 or in, or added to, the allocation area, effective on the next assessment
8907	8907	11 date after the petition.
8908	8908	12 (f) Notwithstanding any other law, the assessed value of all taxable
8909	8909	13 property in the allocation area, for purposes of tax limitation, property
8910	8910	14 tax replacement, and formulation of the budget, tax rate, and tax levy
8911	8911	15 for each political subdivision in which the property is located, is the
8912	8912	16 lesser of:
8913	8913	17 (1) the assessed value of the property as valued without regard to
8914	8914	18 this section; or
8915	8915	19 (2) the base assessed value.
8916	8916	20 (g) If any part of the allocation area is located in an enterprise zone
8917	8917	21 created under IC 5-28-15, the unit that designated the allocation area
8918	8918	22 shall create funds as specified in this subsection. A unit that has
8919	8919	23 obligations, bonds, or leases payable from allocated tax proceeds under
8920	8920	24 subsection (b)(3) shall establish an allocation fund for the purposes
8921	8921	25 specified in subsection (b)(3) and a special zone fund. Such a unit
8922	8922	26 shall, until the end of the enterprise zone phase out period, deposit each
8923	8923	27 year in the special zone fund the amount in the allocation fund derived
8924	8924	28 from property tax proceeds in excess of those described in subsection
8925	8925	29 (b)(1) and (b)(2) from property located in the enterprise zone that
8926	8926	30 exceeds the amount sufficient for the purposes specified in subsection
8927	8927	31 (b)(3) for the year. A unit that has no obligations, bonds, or leases
8928	8928	32 payable from allocated tax proceeds under subsection (b)(3) shall
8929	8929	33 establish a special zone fund and deposit all the property tax proceeds
8930	8930	34 in excess of those described in subsection (b)(1) and (b)(2) in the fund
8931	8931	35 derived from property tax proceeds in excess of those described in
8932	8932	36 subsection (b)(1) and (b)(2) from property located in the enterprise
8933	8933	37 zone. The unit that creates the special zone fund shall use the fund,
8934	8934	38 based on the recommendations of the urban enterprise association, for
8935	8935	39 one (1) or more of the following purposes:
8936	8936	40 (1) To pay for programs in job training, job enrichment, and basic
8937	8937	41 skill development designed to benefit residents and employers in
8938	8938	42 the enterprise zone. The programs must reserve at least one-half
8939	8939	2025 IN 1402—LS 7150/DI 120 207
8940	8940	1 (1/2) of the enrollment in any session for residents of the
8941	8941	2 enterprise zone.
8942	8942	3 (2) To make loans and grants for the purpose of stimulating
8943	8943	4 business activity in the enterprise zone or providing employment
8944	8944	5 for enterprise zone residents in an enterprise zone. These loans
8945	8945	6 and grants may be made to the following:
8946	8946	7 (A) Businesses operating in the enterprise zone.
8947	8947	8 (B) Businesses that will move their operations to the enterprise
8948	8948	9 zone if such a loan or grant is made.
8949	8949	10 (3) To provide funds to carry out other purposes specified in
8950	8950	11 subsection (b)(3). However, where reference is made in
8951	8951	12 subsection (b)(3) to the allocation area, the reference refers, for
8952	8952	13 purposes of payments from the special zone fund, only to that part
8953	8953	14 of the allocation area that is also located in the enterprise zone.
8954	8954	15 (h) The state board of accounts and department of local government
8955	8955	16 finance shall make the rules and prescribe the forms and procedures
8956	8956	17 that they consider expedient for the implementation of this chapter.
8957	8957	18 After each reassessment of real property in an area under a county's
8958	8958	19 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
8959	8959	20 local government finance shall adjust the base assessed value one (1)
8960	8960	21 time to neutralize any effect of the reassessment of the real property in
8961	8961	22 the area on the property tax proceeds allocated to the redevelopment
8962	8962	23 district under this section. After each annual adjustment under
8963	8963	24 IC 6-1.1-4-4.5, the department of local government finance shall adjust
8964	8964	25 the base assessed value to neutralize any effect of the annual
8965	8965	26 adjustment on the property tax proceeds allocated to the redevelopment
8966	8966	27 district under this section. However, the adjustments under this
8967	8967	28 subsection may not include the effect of property tax abatements under
8968	8968	29 IC 6-1.1-12.1, and these adjustments may not produce less property tax
8969	8969	30 proceeds allocable to the redevelopment district under subsection
8970	8970	31 (b)(3) than would otherwise have been received if the reassessment
8971	8971	32 under the county's reassessment plan or annual adjustment had not
8972	8972	33 occurred. The department of local government finance may prescribe
8973	8973	34 procedures for county and township officials to follow to assist the
8974	8974	35 department in making the adjustments.
8975	8975	36 (i) The allocation deadline referred to in subsection (b) is
8976	8976	37 determined in the following manner:
8977	8977	38 (1) The initial allocation deadline is December 31, 2011.
8978	8978	39 (2) Subject to subdivision (3), the initial allocation deadline and
8979	8979	40 subsequent allocation deadlines are automatically extended in
8980	8980	41 increments of five (5) years, so that allocation deadlines
8981	8981	42 subsequent to the initial allocation deadline fall on December 31,
8982	8982	2025 IN 1402—LS 7150/DI 120 208
8983	8983	1 2016, and December 31 of each fifth year thereafter.
8984	8984	2 (3) At least one (1) year before the date of an allocation deadline
8985	8985	3 determined under subdivision (2), the general assembly may enact
8986	8986	4 a law that:
8987	8987	5 (A) terminates the automatic extension of allocation deadlines
8988	8988	6 under subdivision (2); and
8989	8989	7 (B) specifically designates a particular date as the final
8990	8990	8 allocation deadline.
8991	8991	9 (j) If the commission adopts a declaratory resolution or an
8992	8992	10 amendment to a declaratory resolution that contains an allocation
8993	8993	11 provision and the commission makes either of the filings required
8994	8994	12 under section 10(e) of this chapter after the first anniversary of the
8995	8995	13 effective date of the allocation provision, the auditor of the county in
8996	8996	14 which the unit is located shall compute the base assessed value for the
8997	8997	15 allocation area using the assessment date immediately preceding the
8998	8998	16 later of:
8999	8999	17 (1) the date on which the documents are filed with the county
9000	9000	18 auditor; or
9001	9001	19 (2) the date on which the documents are filed with the department
9002	9002	20 of local government finance.
9003	9003	21 (k) For an allocation area established after June 30, 2024,
9004	9004	22 "residential property" refers to the assessed value of property that is
9005	9005	23 allocated to the one percent (1%) homestead land and improvement
9006	9006	24 categories in the county tax and billing software system, along with the
9007	9007	25 residential assessed value as defined for purposes of calculating the
9008	9008	26 rate for the local income tax property tax relief credit designated for
9009	9009	27 residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
9010	9010	28 SECTION 179. IC 36-7-30-25, AS AMENDED BY P.L.174-2022,
9011	9011	29 SECTION 74, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9012	9012	30 JULY 1, 2026]: Sec. 25. (a) The following definitions apply throughout
9013	9013	31 this section:
9014	9014	32 (1) "Allocation area" means that part of a military base reuse area
9015	9015	33 to which an allocation provision of a declaratory resolution
9016	9016	34 adopted under section 10 of this chapter refers for purposes of
9017	9017	35 distribution and allocation of property taxes.
9018	9018	36 (2) "Base assessed value" means, subject to subsection (i):
9019	9019	37 (A) the net assessed value of all the property as finally
9020	9020	38 determined for the assessment date immediately preceding the
9021	9021	39 adoption date of the allocation provision of the declaratory
9022	9022	40 resolution, as adjusted under subsection (h); plus
9023	9023	41 (B) to the extent that it is not included in clause (A) or (C), the
9024	9024	42 net assessed value of any and all parcels or classes of parcels
9025	9025	2025 IN 1402—LS 7150/DI 120 209
9026	9026	1 identified as part of the base assessed value in the declaratory
9027	9027	2 resolution or an amendment thereto, as finally determined for
9028	9028	3 any subsequent assessment date; plus
9029	9029	4 (C) to the extent that it is not included in clause (A) or (B), the
9030	9030	5 net assessed value of property that is assessed as residential
9031	9031	6 property under the rules of the department of local government
9032	9032	7 finance, within the allocation area, as finally determined for
9033	9033	8 the current assessment date.
9034	9034	9 Clause (C) applies only to allocation areas established in a
9035	9035	10 military reuse area after June 30, 1997, and to the part of an
9036	9036	11 allocation area that was established before June 30, 1997, and that
9037	9037	12 is added to an existing allocation area after June 30, 1997.
9038	9038	13 (3) "Property taxes" means taxes imposed under IC 6-1.1 on real
9039	9039	14 property.
9040	9040	15 (b) A declaratory resolution adopted under section 10 of this chapter
9041	9041	16 before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
9042	9042	17 resolutions adopted under IC 36-7-14-15 may include a provision with
9043	9043	18 respect to the allocation and distribution of property taxes for the
9044	9044	19 purposes and in the manner provided in this section. A declaratory
9045	9045	20 resolution previously adopted may include an allocation provision by
9046	9046	21 the amendment of that declaratory resolution in accordance with the
9047	9047	22 procedures set forth in section 13 of this chapter. The allocation
9048	9048	23 provision may apply to all or part of the military base reuse area. The
9049	9049	24 allocation provision must require that any property taxes subsequently
9050	9050	25 levied by or for the benefit of any public body entitled to a distribution
9051	9051	26 of property taxes on taxable property in the allocation area be allocated
9052	9052	27 and distributed as follows:
9053	9053	28 (1) Except as otherwise provided in this section, the proceeds of
9054	9054	29 the taxes attributable to the lesser of:
9055	9055	30 (A) the assessed value of the property for the assessment date
9056	9056	31 with respect to which the allocation and distribution is made;
9057	9057	32 or
9058	9058	33 (B) the base assessed value;
9059	9059	34 shall be allocated to and, when collected, paid into the funds of
9060	9060	35 the respective taxing units.
9061	9061	36 (2) The excess of the proceeds of the property taxes imposed for
9062	9062	37 the assessment date with respect to which the allocation and
9063	9063	38 distribution are made that are attributable to taxes imposed after
9064	9064	39 being approved by the voters in a referendum or local public
9065	9065	40 question conducted after April 30, 2010, not otherwise included
9066	9066	41 in subdivision (1) shall be allocated to and, when collected, paid
9067	9067	42 into the funds of the taxing unit for which the referendum or local
9068	9068	2025 IN 1402—LS 7150/DI 120 210
9069	9069	1 public question was conducted.
9070	9070	2 (3) Except as otherwise provided in this section, property tax
9071	9071	3 proceeds in excess of those described in subdivisions (1) and (2)
9072	9072	4 shall be allocated to the military base reuse district and, when
9073	9073	5 collected, paid into an allocation fund for that allocation area that
9074	9074	6 may be used by the military base reuse district and only to do one
9075	9075	7 (1) or more of the following:
9076	9076	8 (A) Pay the principal of and interest and redemption premium
9077	9077	9 on any obligations incurred by the military base reuse district
9078	9078	10 or any other entity for the purpose of financing or refinancing
9079	9079	11 military base reuse activities in or directly serving or
9080	9080	12 benefiting that allocation area.
9081	9081	13 (B) Establish, augment, or restore the debt service reserve for
9082	9082	14 bonds payable solely or in part from allocated tax proceeds in
9083	9083	15 that allocation area or from other revenues of the reuse
9084	9084	16 authority, including lease rental revenues.
9085	9085	17 (C) Make payments on leases payable solely or in part from
9086	9086	18 allocated tax proceeds in that allocation area.
9087	9087	19 (D) Reimburse any other governmental body for expenditures
9088	9088	20 made for local public improvements (or structures) in or
9089	9089	21 directly serving or benefiting that allocation area.
9090	9090	22 (E) Pay expenses incurred by the reuse authority, any other
9091	9091	23 department of the unit, or a department of another
9092	9092	24 governmental entity for local public improvements or
9093	9093	25 structures that are in the allocation area or directly serving or
9094	9094	26 benefiting the allocation area, including expenses for the
9095	9095	27 operation and maintenance of these local public improvements
9096	9096	28 or structures if the reuse authority determines those operation
9097	9097	29 and maintenance expenses are necessary or desirable to carry
9098	9098	30 out the purposes of this chapter.
9099	9099	31 (F) Reimburse public and private entities for expenses
9100	9100	32 incurred in training employees of industrial facilities that are
9101	9101	33 located:
9102	9102	34 (i) in the allocation area; and
9103	9103	35 (ii) on a parcel of real property that has been classified as
9104	9104	36 industrial property under the rules of the department of local
9105	9105	37 government finance.
9106	9106	38 However, the total amount of money spent for this purpose in
9107	9107	39 any year may not exceed the total amount of money in the
9108	9108	40 allocation fund that is attributable to property taxes paid by the
9109	9109	41 industrial facilities described in this clause. The
9110	9110	42 reimbursements under this clause must be made not more than
9111	9111	2025 IN 1402—LS 7150/DI 120 211
9112	9112	1 three (3) years after the date on which the investments that are
9113	9113	2 the basis for the increment financing are made.
9114	9114	3 (G) Expend money and provide financial assistance as
9115	9115	4 authorized in section 9(a)(25) of this chapter.
9116	9116	5 Except as provided in clause (E), the allocation fund may not be
9117	9117	6 used for operating expenses of the reuse authority.
9118	9118	7 (4) Except as provided in subsection (g), before July 15 of each
9119	9119	8 year the reuse authority shall do the following:
9120	9120	9 (A) Determine the amount, if any, by which property taxes
9121	9121	10 payable to the allocation fund in the following year will exceed
9122	9122	11 the amount of property taxes necessary to make, when due,
9123	9123	12 principal and interest payments on bonds described in
9124	9124	13 subdivision (3) plus the amount necessary for other purposes
9125	9125	14 described in subdivision (3).
9126	9126	15 (B) Provide a written notice to the county auditor, the fiscal
9127	9127	16 body of the unit that established the reuse authority, and the
9128	9128	17 officers who are authorized to fix budgets, tax rates, and tax
9129	9129	18 levies under IC 6-1.1-17-5 for each of the other taxing units
9130	9130	19 that is wholly or partly located within the allocation area. The
9131	9131	20 notice must:
9132	9132	21 (i) state the amount, if any, of excess property taxes that the
9133	9133	22 reuse authority has determined may be paid to the respective
9134	9134	23 taxing units in the manner prescribed in subdivision (1); or
9135	9135	24 (ii) state that the reuse authority has determined that there
9136	9136	25 are no excess property tax proceeds that may be allocated to
9137	9137	26 the respective taxing units in the manner prescribed in
9138	9138	27 subdivision (1).
9139	9139	28 The county auditor shall allocate to the respective taxing units
9140	9140	29 the amount, if any, of excess property tax proceeds determined
9141	9141	30 by the reuse authority. The reuse authority may not authorize
9142	9142	31 a payment to the respective taxing units under this subdivision
9143	9143	32 if to do so would endanger the interest of the holders of bonds
9144	9144	33 described in subdivision (3) or lessors under section 19 of this
9145	9145	34 chapter.
9146	9146	35 (c) For the purpose of allocating taxes levied by or for any taxing
9147	9147	36 unit or units, the assessed value of taxable property in a territory in the
9148	9148	37 allocation area that is annexed by a taxing unit after the effective date
9149	9149	38 of the allocation provision of the declaratory resolution is the lesser of:
9150	9150	39 (1) the assessed value of the property for the assessment date with
9151	9151	40 respect to which the allocation and distribution is made; or
9152	9152	41 (2) the base assessed value.
9153	9153	42 (d) Property tax proceeds allocable to the military base reuse district
9154	9154	2025 IN 1402—LS 7150/DI 120 212
9155	9155	1 under subsection (b)(3) may, subject to subsection (b)(4), be
9156	9156	2 irrevocably pledged by the military base reuse district for payment as
9157	9157	3 set forth in subsection (b)(3).
9158	9158	4 (e) Notwithstanding any other law, each assessor shall, upon
9159	9159	5 petition of the reuse authority, reassess the taxable property situated
9160	9160	6 upon or in or added to the allocation area, effective on the next
9161	9161	7 assessment date after the petition.
9162	9162	8 (f) Notwithstanding any other law, the assessed value of all taxable
9163	9163	9 property in the allocation area, for purposes of tax limitation, property
9164	9164	10 tax replacement, and the making of the budget, tax rate, and tax levy
9165	9165	11 for each political subdivision in which the property is located is the
9166	9166	12 lesser of:
9167	9167	13 (1) the assessed value of the property as valued without regard to
9168	9168	14 this section; or
9169	9169	15 (2) the base assessed value.
9170	9170	16 (g) If any part of the allocation area is located in an enterprise zone
9171	9171	17 created under IC 5-28-15, the unit that designated the allocation area
9172	9172	18 shall create funds as specified in this subsection. A unit that has
9173	9173	19 obligations, bonds, or leases payable from allocated tax proceeds under
9174	9174	20 subsection (b)(3) shall establish an allocation fund for the purposes
9175	9175	21 specified in subsection (b)(3) and a special zone fund. Such a unit
9176	9176	22 shall, until the end of the enterprise zone phase out period, deposit each
9177	9177	23 year in the special zone fund any amount in the allocation fund derived
9178	9178	24 from property tax proceeds in excess of those described in subsection
9179	9179	25 (b)(1) and (b)(2) from property located in the enterprise zone that
9180	9180	26 exceeds the amount sufficient for the purposes specified in subsection
9181	9181	27 (b)(3) for the year. The amount sufficient for purposes specified in
9182	9182	28 subsection (b)(3) for the year shall be determined based on the pro rata
9183	9183	29 part of such current property tax proceeds from the part of the
9184	9184	30 enterprise zone that is within the allocation area as compared to all
9185	9185	31 such current property tax proceeds derived from the allocation area. A
9186	9186	32 unit that does not have obligations, bonds, or leases payable from
9187	9187	33 allocated tax proceeds under subsection (b)(3) shall establish a special
9188	9188	34 zone fund and deposit all the property tax proceeds in excess of those
9189	9189	35 described in subsection (b)(1) and (b)(2) that are derived from property
9190	9190	36 in the enterprise zone in the fund. The unit that creates the special zone
9191	9191	37 fund shall use the fund (based on the recommendations of the urban
9192	9192	38 enterprise association) for programs in job training, job enrichment,
9193	9193	39 and basic skill development that are designed to benefit residents and
9194	9194	40 employers in the enterprise zone or other purposes specified in
9195	9195	41 subsection (b)(3), except that where reference is made in subsection
9196	9196	42 (b)(3) to allocation area it shall refer for purposes of payments from the
9197	9197	2025 IN 1402—LS 7150/DI 120 213
9198	9198	1 special zone fund only to that part of the allocation area that is also
9199	9199	2 located in the enterprise zone. The programs shall reserve at least
9200	9200	3 one-half (1/2) of their enrollment in any session for residents of the
9201	9201	4 enterprise zone.
9202	9202	5 (h) After each reassessment of real property in an area under the
9203	9203	6 county's reassessment plan under IC 6-1.1-4-4.2, the department of
9204	9204	7 local government finance shall adjust the base assessed value one (1)
9205	9205	8 time to neutralize any effect of the reassessment of the real property in
9206	9206	9 the area on the property tax proceeds allocated to the military base
9207	9207	10 reuse district under this section. After each annual adjustment under
9208	9208	11 IC 6-1.1-4-4.5, the department of local government finance shall adjust
9209	9209	12 the base assessed value to neutralize any effect of the annual
9210	9210	13 adjustment on the property tax proceeds allocated to the military base
9211	9211	14 reuse district under this section. However, the adjustments under this
9212	9212	15 subsection may not include the effect of property tax abatements under
9213	9213	16 IC 6-1.1-12.1, and these adjustments may not produce less property tax
9214	9214	17 proceeds allocable to the military base reuse district under subsection
9215	9215	18 (b)(3) than would otherwise have been received if the reassessment
9216	9216	19 under the county's reassessment plan or annual adjustment had not
9217	9217	20 occurred. The department of local government finance may prescribe
9218	9218	21 procedures for county and township officials to follow to assist the
9219	9219	22 department in making the adjustments.
9220	9220	23 (i) If the reuse authority adopts a declaratory resolution or an
9221	9221	24 amendment to a declaratory resolution that contains an allocation
9222	9222	25 provision and the reuse authority makes either of the filings required
9223	9223	26 under section 12(c) or 13(f) of this chapter after the first anniversary of
9224	9224	27 the effective date of the allocation provision, the auditor of the county
9225	9225	28 in which the military base reuse district is located shall compute the
9226	9226	29 base assessed value for the allocation area using the assessment date
9227	9227	30 immediately preceding the later of:
9228	9228	31 (1) the date on which the documents are filed with the county
9229	9229	32 auditor; or
9230	9230	33 (2) the date on which the documents are filed with the department
9231	9231	34 of local government finance.
9232	9232	35 (j) For an allocation area established after June 30, 2024,
9233	9233	36 "residential property" refers to the assessed value of property that is
9234	9234	37 allocated to the one percent (1%) homestead land and improvement
9235	9235	38 categories in the county tax and billing software system, along with the
9236	9236	39 residential assessed value as defined for purposes of calculating the
9237	9237	40 rate for the local income tax property tax relief credit designated for
9238	9238	41 residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
9239	9239	42 SECTION 180. IC 36-7-30.5-30, AS AMENDED BY P.L.174-2022,
9240	9240	2025 IN 1402—LS 7150/DI 120 214
9241	9241	1 SECTION 75, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9242	9242	2 JULY 1, 2026]: Sec. 30. (a) The following definitions apply throughout
9243	9243	3 this section:
9244	9244	4 (1) "Allocation area" means that part of a military base
9245	9245	5 development area to which an allocation provision of a
9246	9246	6 declaratory resolution adopted under section 16 of this chapter
9247	9247	7 refers for purposes of distribution and allocation of property taxes.
9248	9248	8 (2) "Base assessed value" means, subject to subsection (i):
9249	9249	9 (A) the net assessed value of all the property as finally
9250	9250	10 determined for the assessment date immediately preceding the
9251	9251	11 adoption date of the allocation provision of the declaratory
9252	9252	12 resolution, as adjusted under subsection (h); plus
9253	9253	13 (B) to the extent that it is not included in clause (A) or (C), the
9254	9254	14 net assessed value of any and all parcels or classes of parcels
9255	9255	15 identified as part of the base assessed value in the declaratory
9256	9256	16 resolution or an amendment to the declaratory resolution, as
9257	9257	17 finally determined for any subsequent assessment date; plus
9258	9258	18 (C) to the extent that it is not included in clause (A) or (B), the
9259	9259	19 net assessed value of property that is assessed as residential
9260	9260	20 property under the rules of the department of local government
9261	9261	21 finance, within the allocation area, as finally determined for
9262	9262	22 the current assessment date.
9263	9263	23 (3) "Property taxes" means taxes imposed under IC 6-1.1 on real
9264	9264	24 property.
9265	9265	25 (b) A declaratory resolution adopted under section 16 of this chapter
9266	9266	26 before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
9267	9267	27 resolutions adopted under IC 36-7-14-15 may include a provision with
9268	9268	28 respect to the allocation and distribution of property taxes for the
9269	9269	29 purposes and in the manner provided in this section. A declaratory
9270	9270	30 resolution previously adopted may include an allocation provision by
9271	9271	31 the amendment of that declaratory resolution in accordance with the
9272	9272	32 procedures set forth in section 18 of this chapter. The allocation
9273	9273	33 provision may apply to all or part of the military base development
9274	9274	34 area. The allocation provision must require that any property taxes
9275	9275	35 subsequently levied by or for the benefit of any public body entitled to
9276	9276	36 a distribution of property taxes on taxable property in the allocation
9277	9277	37 area be allocated and distributed as follows:
9278	9278	38 (1) Except as otherwise provided in this section, the proceeds of
9279	9279	39 the taxes attributable to the lesser of:
9280	9280	40 (A) the assessed value of the property for the assessment date
9281	9281	41 with respect to which the allocation and distribution is made;
9282	9282	42 or
9283	9283	2025 IN 1402—LS 7150/DI 120 215
9284	9284	1 (B) the base assessed value;
9285	9285	2 shall be allocated to and, when collected, paid into the funds of
9286	9286	3 the respective taxing units.
9287	9287	4 (2) The excess of the proceeds of the property taxes imposed for
9288	9288	5 the assessment date with respect to which the allocation and
9289	9289	6 distribution is made that are attributable to taxes imposed after
9290	9290	7 being approved by the voters in a referendum or local public
9291	9291	8 question conducted after April 30, 2010, not otherwise included
9292	9292	9 in subdivision (1) shall be allocated to and, when collected, paid
9293	9293	10 into the funds of the taxing unit for which the referendum or local
9294	9294	11 public question was conducted.
9295	9295	12 (3) Except as otherwise provided in this section, property tax
9296	9296	13 proceeds in excess of those described in subdivisions (1) and (2)
9297	9297	14 shall be allocated to the development authority and, when
9298	9298	15 collected, paid into an allocation fund for that allocation area that
9299	9299	16 may be used by the development authority and only to do one (1)
9300	9300	17 or more of the following:
9301	9301	18 (A) Pay the principal of and interest and redemption premium
9302	9302	19 on any obligations incurred by the development authority or
9303	9303	20 any other entity for the purpose of financing or refinancing
9304	9304	21 military base development or reuse activities in or directly
9305	9305	22 serving or benefiting that allocation area.
9306	9306	23 (B) Establish, augment, or restore the debt service reserve for
9307	9307	24 bonds payable solely or in part from allocated tax proceeds in
9308	9308	25 that allocation area or from other revenues of the development
9309	9309	26 authority, including lease rental revenues.
9310	9310	27 (C) Make payments on leases payable solely or in part from
9311	9311	28 allocated tax proceeds in that allocation area.
9312	9312	29 (D) Reimburse any other governmental body for expenditures
9313	9313	30 made for local public improvements (or structures) in or
9314	9314	31 directly serving or benefiting that allocation area.
9315	9315	32 (E) For property taxes first due and payable before 2009, pay
9316	9316	33 all or a part of a property tax replacement credit to taxpayers
9317	9317	34 in an allocation area as determined by the development
9318	9318	35 authority. This credit equals the amount determined under the
9319	9319	36 following STEPS for each taxpayer in a taxing district (as
9320	9320	37 defined in IC 6-1.1-1-20) that contains all or part of the
9321	9321	38 allocation area:
9322	9322	39 STEP ONE: Determine that part of the sum of the amounts
9323	9323	40 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
9324	9324	41 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
9325	9325	42 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to
9326	9326	2025 IN 1402—LS 7150/DI 120 216
9327	9327	1 the taxing district.
9328	9328	2 STEP TWO: Divide:
9329	9329	3 (i) that part of each county's eligible property tax
9330	9330	4 replacement amount (as defined in IC 6-1.1-21-2 (before its
9331	9331	5 repeal)) for that year as determined under IC 6-1.1-21-4
9332	9332	6 (before its repeal) that is attributable to the taxing district;
9333	9333	7 by
9334	9334	8 (ii) the STEP ONE sum.
9335	9335	9 STEP THREE: Multiply:
9336	9336	10 (i) the STEP TWO quotient; by
9337	9337	11 (ii) the total amount of the taxpayer's taxes (as defined in
9338	9338	12 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
9339	9339	13 that have been allocated during that year to an allocation
9340	9340	14 fund under this section.
9341	9341	15 If not all the taxpayers in an allocation area receive the credit
9342	9342	16 in full, each taxpayer in the allocation area is entitled to
9343	9343	17 receive the same proportion of the credit. A taxpayer may not
9344	9344	18 receive a credit under this section and a credit under section
9345	9345	19 32 of this chapter (before its repeal) in the same year.
9346	9346	20 (F) Pay expenses incurred by the development authority for
9347	9347	21 local public improvements or structures that were in the
9348	9348	22 allocation area or directly serving or benefiting the allocation
9349	9349	23 area.
9350	9350	24 (G) Reimburse public and private entities for expenses
9351	9351	25 incurred in training employees of industrial facilities that are
9352	9352	26 located:
9353	9353	27 (i) in the allocation area; and
9354	9354	28 (ii) on a parcel of real property that has been classified as
9355	9355	29 industrial property under the rules of the department of local
9356	9356	30 government finance.
9357	9357	31 However, the total amount of money spent for this purpose in
9358	9358	32 any year may not exceed the total amount of money in the
9359	9359	33 allocation fund that is attributable to property taxes paid by the
9360	9360	34 industrial facilities described in this clause. The
9361	9361	35 reimbursements under this clause must be made not more than
9362	9362	36 three (3) years after the date on which the investments that are
9363	9363	37 the basis for the increment financing are made.
9364	9364	38 (H) Expend money and provide financial assistance as
9365	9365	39 authorized in section 15(26) of this chapter.
9366	9366	40 The allocation fund may not be used for operating expenses of the
9367	9367	41 development authority.
9368	9368	42 (4) Except as provided in subsection (g), before July 15 of each
9369	9369	2025 IN 1402—LS 7150/DI 120 217
9370	9370	1 year the development authority shall do the following:
9371	9371	2 (A) Determine the amount, if any, by which property taxes
9372	9372	3 payable to the allocation fund in the following year will exceed
9373	9373	4 the amount of property taxes necessary to make, when due,
9374	9374	5 principal and interest payments on bonds described in
9375	9375	6 subdivision (3) plus the amount necessary for other purposes
9376	9376	7 described in subdivisions (2) and (3).
9377	9377	8 (B) Provide a written notice to the appropriate county auditors
9378	9378	9 and the fiscal bodies and other officers who are authorized to
9379	9379	10 fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for
9380	9380	11 each of the other taxing units that is wholly or partly located
9381	9381	12 within the allocation area. The notice must:
9382	9382	13 (i) state the amount, if any, of the excess property taxes that
9383	9383	14 the development authority has determined may be paid to
9384	9384	15 the respective taxing units in the manner prescribed in
9385	9385	16 subdivision (1); or
9386	9386	17 (ii) state that the development authority has determined that
9387	9387	18 there is no excess assessed value that may be allocated to the
9388	9388	19 respective taxing units in the manner prescribed in
9389	9389	20 subdivision (1).
9390	9390	21 The county auditors shall allocate to the respective taxing units
9391	9391	22 the amount, if any, of excess assessed value determined by the
9392	9392	23 development authority. The development authority may not
9393	9393	24 authorize a payment to the respective taxing units under this
9394	9394	25 subdivision if to do so would endanger the interest of the
9395	9395	26 holders of bonds described in subdivision (3) or lessors under
9396	9396	27 section 24 of this chapter. Property taxes received by a taxing
9397	9397	28 unit under this subdivision before 2009 are eligible for the
9398	9398	29 property tax replacement credit provided under IC 6-1.1-21
9399	9399	30 (before its repeal).
9400	9400	31 (c) For the purpose of allocating taxes levied by or for any taxing
9401	9401	32 unit or units, the assessed value of taxable property in a territory in the
9402	9402	33 allocation area that is annexed by a taxing unit after the effective date
9403	9403	34 of the allocation provision of the declaratory resolution is the lesser of:
9404	9404	35 (1) the assessed value of the property for the assessment date with
9405	9405	36 respect to which the allocation and distribution is made; or
9406	9406	37 (2) the base assessed value.
9407	9407	38 (d) Property tax proceeds allocable to the military base development
9408	9408	39 district under subsection (b)(3) may, subject to subsection (b)(4), be
9409	9409	40 irrevocably pledged by the military base development district for
9410	9410	41 payment as set forth in subsection (b)(3).
9411	9411	42 (e) Notwithstanding any other law, each assessor shall, upon
9412	9412	2025 IN 1402—LS 7150/DI 120 218
9413	9413	1 petition of the development authority, reassess the taxable property
9414	9414	2 situated upon or in or added to the allocation area, effective on the next
9415	9415	3 assessment date after the petition.
9416	9416	4 (f) Notwithstanding any other law, the assessed value of all taxable
9417	9417	5 property in the allocation area, for purposes of tax limitation, property
9418	9418	6 tax replacement, and the making of the budget, tax rate, and tax levy
9419	9419	7 for each political subdivision in which the property is located is the
9420	9420	8 lesser of:
9421	9421	9 (1) the assessed value of the property as valued without regard to
9422	9422	10 this section; or
9423	9423	11 (2) the base assessed value.
9424	9424	12 (g) If any part of the allocation area is located in an enterprise zone
9425	9425	13 created under IC 5-28-15, the development authority shall create funds
9426	9426	14 as specified in this subsection. A development authority that has
9427	9427	15 obligations, bonds, or leases payable from allocated tax proceeds under
9428	9428	16 subsection (b)(3) shall establish an allocation fund for the purposes
9429	9429	17 specified in subsection (b)(3) and a special zone fund. The
9430	9430	18 development authority shall, until the end of the enterprise zone phase
9431	9431	19 out period, deposit each year in the special zone fund any amount in the
9432	9432	20 allocation fund derived from property tax proceeds in excess of those
9433	9433	21 described in subsection (b)(1) and (b)(2) from property located in the
9434	9434	22 enterprise zone that exceeds the amount sufficient for the purposes
9435	9435	23 specified in subsection (b)(3) for the year. The amount sufficient for
9436	9436	24 purposes specified in subsection (b)(3) for the year shall be determined
9437	9437	25 based on the pro rata part of such current property tax proceeds from
9438	9438	26 the part of the enterprise zone that is within the allocation area as
9439	9439	27 compared to all such current property tax proceeds derived from the
9440	9440	28 allocation area. A development authority that does not have
9441	9441	29 obligations, bonds, or leases payable from allocated tax proceeds under
9442	9442	30 subsection (b)(3) shall establish a special zone fund and deposit all the
9443	9443	31 property tax proceeds in excess of those described in subsection (b)(1)
9444	9444	32 and (b)(2) that are derived from property in the enterprise zone in the
9445	9445	33 fund. The development authority that creates the special zone fund
9446	9446	34 shall use the fund (based on the recommendations of the urban
9447	9447	35 enterprise association) for programs in job training, job enrichment,
9448	9448	36 and basic skill development that are designed to benefit residents and
9449	9449	37 employers in the enterprise zone or for other purposes specified in
9450	9450	38 subsection (b)(3), except that where reference is made in subsection
9451	9451	39 (b)(3) to an allocation area it shall refer for purposes of payments from
9452	9452	40 the special zone fund only to that part of the allocation area that is also
9453	9453	41 located in the enterprise zone. The programs shall reserve at least
9454	9454	42 one-half (1/2) of their enrollment in any session for residents of the
9455	9455	2025 IN 1402—LS 7150/DI 120 219
9456	9456	1 enterprise zone.
9457	9457	2 (h) After each reassessment of real property in an area under a
9458	9458	3 reassessment plan prepared under IC 6-1.1-4-4.2, the department of
9459	9459	4 local government finance shall adjust the base assessed value one (1)
9460	9460	5 time to neutralize any effect of the reassessment of the real property in
9461	9461	6 the area on the property tax proceeds allocated to the military base
9462	9462	7 development district under this section. After each annual adjustment
9463	9463	8 under IC 6-1.1-4-4.5, the department of local government finance shall
9464	9464	9 adjust the base assessed value to neutralize any effect of the annual
9465	9465	10 adjustment on the property tax proceeds allocated to the military base
9466	9466	11 development district under this section. However, the adjustments
9467	9467	12 under this subsection may not include the effect of property tax
9468	9468	13 abatements under IC 6-1.1-12.1, and these adjustments may not
9469	9469	14 produce less property tax proceeds allocable to the military base
9470	9470	15 development district under subsection (b)(3) than would otherwise
9471	9471	16 have been received if the reassessment under the county's reassessment
9472	9472	17 plan or annual adjustment had not occurred. The department of local
9473	9473	18 government finance may prescribe procedures for county and township
9474	9474	19 officials to follow to assist the department in making the adjustments.
9475	9475	20 (i) If the development authority adopts a declaratory resolution or
9476	9476	21 an amendment to a declaratory resolution that contains an allocation
9477	9477	22 provision and the development authority makes either of the filings
9478	9478	23 required under section 17(e) or 18(f) of this chapter after the first
9479	9479	24 anniversary of the effective date of the allocation provision, the auditor
9480	9480	25 of the county in which the military base development district is located
9481	9481	26 shall compute the base assessed value for the allocation area using the
9482	9482	27 assessment date immediately preceding the later of:
9483	9483	28 (1) the date on which the documents are filed with the county
9484	9484	29 auditor; or
9485	9485	30 (2) the date on which the documents are filed with the department
9486	9486	31 of local government finance.
9487	9487	32 (j) For an allocation area established after June 30, 2024,
9488	9488	33 "residential property" refers to the assessed value of property that is
9489	9489	34 allocated to the one percent (1%) homestead land and improvement
9490	9490	35 categories in the county tax and billing software system, along with the
9491	9491	36 residential assessed value as defined for purposes of calculating the
9492	9492	37 rate for the local income tax property tax relief credit designated for
9493	9493	38 residential property under IC 6-3.6-5-6(d)(3) (before its expiration).
9494	9494	39 SECTION 181. IC 36-7-31-6, AS AMENDED BY P.L.239-2017,
9495	9495	40 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9496	9496	41 JANUARY 1, 2027]: Sec. 6. As used in this chapter, "covered taxes"
9497	9497	42 means the following:
9498	9498	2025 IN 1402—LS 7150/DI 120 220
9499	9499	1 (1) With respect to the professional sports development area as it
9500	9500	2 existed on December 31, 2008:
9501	9501	3 (A) The state gross retail tax imposed under IC 6-2.5-2-1 or
9502	9502	4 use tax imposed under IC 6-2.5-3-2.
9503	9503	5 (B) An adjusted gross income tax imposed under IC 6-3-2-1
9504	9504	6 on an individual.
9505	9505	7 (C) The local income tax imposed under IC 6-3.6, other than
9506	9506	8 local income taxes that are paid by local taxpayers described
9507	9507	9 in IC 6-3.6-2-13(3). IC 6-3.6-2-13(2).
9508	9508	10 (D) A food and beverage tax imposed under IC 6-9.
9509	9509	11 (2) With respect to an addition to the professional sports
9510	9510	12 development area after December 31, 2008:
9511	9511	13 (A) The state gross retail tax imposed under IC 6-2.5-2-1 or
9512	9512	14 use tax imposed under IC 6-2.5-3-2.
9513	9513	15 (B) An adjusted gross income tax imposed under IC 6-3-2-1
9514	9514	16 on an individual.
9515	9515	17 (C) The local income tax imposed under IC 6-3.6, other than
9516	9516	18 local income taxes that are paid by local taxpayers described
9517	9517	19 in IC 6-3.6-2-13(3). IC 6-3.6-2-13(2).
9518	9518	20 SECTION 182. IC 36-7-31.5-2, AS ADDED BY P.L.109-2019,
9519	9519	21 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9520	9520	22 JANUARY 1, 2027]: Sec. 2. The following definitions apply
9521	9521	23 throughout this chapter:
9522	9522	24 (1) "Bonds" means bonds, notes, or other evidence of
9523	9523	25 indebtedness.
9524	9524	26 (2) "Budget agency" means the budget agency created by
9525	9525	27 IC 4-12-1.
9526	9526	28 (3) "Budget committee" means the budget committee established
9527	9527	29 by IC 4-12-1-3.
9528	9528	30 (4) "Capital improvement" means any facility or complex of
9529	9529	31 facilities established as part of an additional professional sports
9530	9530	32 development area under section 4 of this chapter.
9531	9531	33 (5) "Capital improvement board" refers to the capital
9532	9532	34 improvement board of managers created by IC 36-10-9-3.
9533	9533	35 (6) "City" refers to the city of Indianapolis, Indiana.
9534	9534	36 (7) "Commission" refers to the metropolitan development
9535	9535	37 commission acting as the redevelopment commission of a
9536	9536	38 consolidated city.
9537	9537	39 (8) "Covered taxes" means the following:
9538	9538	40 (A) The state gross retail tax imposed under IC 6-2.5-2-1 or
9539	9539	41 use tax imposed under IC 6-2.5-3-2.
9540	9540	42 (B) An adjusted gross income tax imposed under IC 6-3-2-1
9541	9541	2025 IN 1402—LS 7150/DI 120 221
9542	9542	1 on an individual.
9543	9543	2 (C) The local income tax imposed under IC 6-3.6, other than
9544	9544	3 local income taxes that are paid by local taxpayers described
9545	9545	4 in IC 6-3.6-2-13(3). IC 6-3.6-2-13(2).
9546	9546	5 (D) A food and beverage tax imposed under IC 6-9.
9547	9547	6 (9) "Department" refers to the department of state revenue.
9548	9548	7 (10) "Facility" means all or any part of one (1) or more buildings,
9549	9549	8 structures, or improvements constituting a capital improvement.
9550	9550	9 The term refers to and includes a capital improvement.
9551	9551	10 (11) "Facilities authority" refers to the county convention and
9552	9552	11 recreational facilities authority created by IC 36-10-9.1.
9553	9553	12 (12) "Professional soccer team" means a professional soccer team
9554	9554	13 that holds its home professional sporting events in a facility
9555	9555	14 constituting a capital improvement.
9556	9556	15 (13) "Tax area" means a geographic area established by a
9557	9557	16 commission as an additional professional sports development area
9558	9558	17 under section 8 of this chapter.
9559	9559	18 (14) "Taxpayer" means a person that is liable for a covered tax.
9560	9560	19 SECTION 183. IC 36-7.5-4-2.5, AS ADDED BY P.L.189-2018,
9561	9561	20 SECTION 173, IS AMENDED TO READ AS FOLLOWS
9562	9562	21 [EFFECTIVE JULY 1, 2026]: Sec. 2.5. (a) This section applies to a
9563	9563	22 unit that has previously:
9564	9564	23 (1) entered into an interlocal cooperation or other similar
9565	9565	24 agreement;
9566	9566	25 (2) adopted an ordinance or resolution; or
9567	9567	26 (3) taken any other action offering to support and finance:
9568	9568	27 (A) a rail project or rail projects under this chapter; or
9569	9569	28 (B) the double tracking project under IC 36-7.5-4.5.
9570	9570	29 (b) The unit may use any legally available revenue to support and
9571	9571	30 finance the projects described in subsection (a)(3), including additional
9572	9572	31 revenue general purpose revenue allocated each year for economic
9573	9573	32 development under IC 6-3.6-6-9. IC 6-3.6-6.
9574	9574	33 (c) Additional revenue allocated for economic development to
9575	9575	34 support and finance the projects under this section shall be paid by the
9576	9576	35 treasurer of state to the treasurer of the northwest Indiana regional
9577	9577	36 development authority under section 2 of this chapter before certified
9578	9578	37 distributions are made to the county or any civil taxing unit in the
9579	9579	38 county or counties in which the unit is located.
9580	9580	39 (d) A transfer made on behalf of a unit under subsection (c) after
9581	9581	40 December 31, 2018, is considered to be a payment for services
9582	9582	41 provided to residents by a rail project as those services are rendered.
9583	9583	42 (e) A pledge by the development authority of transferred revenue
9584	9584	2025 IN 1402—LS 7150/DI 120 222
9585	9585	1 under this section to the payment of bonds, leases, or obligations under
9586	9586	2 this article or IC 5-1.3:
9587	9587	3 (1) constitutes the obligations of the northwest Indiana regional
9588	9588	4 development authority; and
9589	9589	5 (2) does not constitute an indebtedness of:
9590	9590	6 (A) a unit described in this section; or
9591	9591	7 (B) the state;
9592	9592	8 within the meaning or application of any constitutional or
9593	9593	9 statutory provision or limitation.
9594	9594	10 (f) Neither the transfer of revenue nor the pledge of revenue
9595	9595	11 transferred under this section is an impairment of contract within the
9596	9596	12 meaning or application of any constitutional provision or limitation
9597	9597	13 because of the following:
9598	9598	14 (1) The statutes governing local income taxes, including the
9599	9599	15 transferred revenue, have been the subject of legislation annually
9600	9600	16 since 1973, and during that time the statutes have been revised,
9601	9601	17 amended, expanded, limited, and recodified dozens of times.
9602	9602	18 (2) Owners of bonds, leases, or other obligations to which local
9603	9603	19 income tax revenues have been pledged recognize that the
9604	9604	20 regulation of local income taxes has been extensive and
9605	9605	21 consistent.
9606	9606	22 (3) All bonds, leases, or other obligations, due to their essential
9607	9607	23 contractual nature, are subject to relevant state and federal law
9608	9608	24 that is enacted after the date of a contract.
9609	9609	25 (4) The state of Indiana has a legitimate interest in assisting the
9610	9610	26 northwest Indiana regional development authority in financing
9611	9611	27 rail projects.
9612	9612	28 (g) All proceedings had and actions described in this section are
9613	9613	29 valid pledges under IC 5-1-14-4 as of the date of those proceedings or
9614	9614	30 actions and are hereby legalized and declared valid if taken before
9615	9615	31 March 15, 2018.
9616	9616	32 SECTION 184. IC 36-8-19-7.5, AS AMENDED BY P.L.38-2021,
9617	9617	33 SECTION 100, IS AMENDED TO READ AS FOLLOWS
9618	9618	34 [EFFECTIVE JANUARY 1, 2027]: Sec. 7.5. (a) This section applies
9619	9619	35 to:
9620	9620	36 (1) local income tax distributions; and
9621	9621	37 (2) excise tax distributions;
9622	9622	38 made after December 31, 2009.
9623	9623	39 (b) Except as provided in subsection (c), for purposes of allocating
9624	9624	40 local income tax distributions that are based on a taxing unit's
9625	9625	41 allocation amount before January 1, 2027, or that an adopting body
9626	9626	42 allocates under IC 6-3.6-6 to economic development before January
9627	9627	2025 IN 1402—LS 7150/DI 120 223
9628	9628	1 1, 2027, or excise tax distributions that are distributed based on the
9629	9629	2 amount of a taxing unit's property tax levies, each participating unit in
9630	9630	3 a territory is considered to have imposed a part of the property tax levy
9631	9631	4 imposed for the territory. The part of the property tax levy imposed for
9632	9632	5 the territory for a particular year that shall be attributed to a
9633	9633	6 participating unit is equal to the amount determined in the following
9634	9634	7 STEPS:
9635	9635	8 STEP ONE: Determine the total amount of all property taxes
9636	9636	9 imposed by the participating unit in the year before the year in
9637	9637	10 which a property tax levy was first imposed for the territory.
9638	9638	11 STEP TWO: Determine the sum of the STEP ONE amounts for
9639	9639	12 all participating units.
9640	9640	13 STEP THREE: Divide the STEP ONE result by the STEP TWO
9641	9641	14 result.
9642	9642	15 STEP FOUR: Multiply the STEP THREE result by the property
9643	9643	16 tax levy imposed for the territory for the particular year.
9644	9644	17 (c) This subsection applies to a determination under subsection (b)
9645	9645	18 made in calendar years 2018, 2019, and 2020. The department of local
9646	9646	19 government finance may, for distributions made in calendar year 2022,
9647	9647	20 adjust the allocation amount determined under subsection (b) to correct
9648	9648	21 for any clerical or mathematical errors made in any determination for
9649	9649	22 calendar year 2018, 2019, or 2020, as applicable, including the
9650	9650	23 allocation amount for any taxing unit whose distribution was affected
9651	9651	24 by the clerical or mathematical error in those years. The department of
9652	9652	25 local government finance may apply the adjustment to the allocation
9653	9653	26 amount for a taxing unit over a period not to exceed ten (10) years in
9654	9654	27 order to offset the effect of the adjustment on the distribution.
9655	9655	28 SECTION 185. IC 36-8-19-8, AS AMENDED BY P.L.236-2023,
9656	9656	29 SECTION 209, IS AMENDED TO READ AS FOLLOWS
9657	9657	30 [EFFECTIVE JULY 1, 2026]: Sec. 8. (a) Upon the adoption of
9658	9658	31 identical ordinances or resolutions, or both, by the participating units
9659	9659	32 under section 6 of this chapter, the designated provider unit must
9660	9660	33 establish a fire protection territory fund from which all expenses of
9661	9661	34 operating and maintaining the fire protection services within the
9662	9662	35 territory, including repairs, fees, salaries, depreciation on all
9663	9663	36 depreciable assets, rents, supplies, contingencies, and all other
9664	9664	37 expenses lawfully incurred within the territory shall be paid. The
9665	9665	38 purposes described in this subsection are the sole purposes of the fund,
9666	9666	39 and money in the fund may not be used for any other expenses. Except
9667	9667	40 as allowed in subsections (d) and (e) and section 8.5 of this chapter, the
9668	9668	41 provider unit is not authorized to transfer money out of the fund at any
9669	9669	42 time.
9670	9670	2025 IN 1402—LS 7150/DI 120 224
9671	9671	1 (b) The fund consists of the following:
9672	9672	2 (1) All receipts from the tax imposed under this section.
9673	9673	3 (2) Any money transferred to the fund by the provider unit as
9674	9674	4 authorized under subsection (d).
9675	9675	5 (3) Any receipts from a false alarm fee or service charge imposed
9676	9676	6 by the participating units under IC 36-8-13-4.
9677	9677	7 (4) Any money transferred to the fund by a participating unit
9678	9678	8 under section 8.6 of this chapter.
9679	9679	9 (5) Any receipts from a distribution made under IC 6-3.6-6-8(d),
9680	9680	10 IC 6-3.6-6-8(b), which shall be deposited in the fund.
9681	9681	11 (c) The provider unit, with the assistance of each of the other
9682	9682	12 participating units, shall annually budget the necessary money to meet
9683	9683	13 the expenses of operation and maintenance of the fire protection
9684	9684	14 services within the territory. The provider unit may maintain a
9685	9685	15 reasonable balance, not to exceed one hundred twenty percent (120%)
9686	9686	16 of the budgeted expenses. Except as provided in IC 6-1.1-18.5-10.5,
9687	9687	17 and subject to section 7(c) of this chapter, after estimating expenses
9688	9688	18 and receipts of money, the provider unit shall establish the tax levy
9689	9689	19 required to fund the estimated budget. Subject to IC 6-1.1-18.5-10.5(c),
9690	9690	20 the amount budgeted under this subsection shall be considered a part
9691	9691	21 of each of the participating unit's budget.
9692	9692	22 (d) If the amount levied in a particular year is insufficient to cover
9693	9693	23 the costs incurred in providing fire protection services within the
9694	9694	24 territory, the provider unit may transfer from available sources to the
9695	9695	25 fire protection territory fund the money needed to cover those costs. In
9696	9696	26 this case:
9697	9697	27 (1) the levy in the following year shall be increased by the amount
9698	9698	28 required to be transferred; and
9699	9699	29 (2) the provider unit is entitled to transfer the amount described
9700	9700	30 in subdivision (1) from the fund as reimbursement to the provider
9701	9701	31 unit.
9702	9702	32 (e) If the amount levied in a particular year exceeds the amount
9703	9703	33 necessary to cover the costs incurred in providing fire protection
9704	9704	34 services within the territory, the levy in the following year shall be
9705	9705	35 reduced by the amount of surplus money that is not transferred to the
9706	9706	36 equipment replacement fund established under section 8.5 of this
9707	9707	37 chapter. The amount that may be transferred to the equipment
9708	9708	38 replacement fund may not exceed five percent (5%) of the levy for that
9709	9709	39 fund for that year. Each participating unit must agree to the amount to
9710	9710	40 be transferred by adopting an ordinance (if the unit is a county or
9711	9711	41 municipality) or a resolution (if the unit is a township) that specifies an
9712	9712	42 identical amount to be transferred.
9713	9713	2025 IN 1402—LS 7150/DI 120 225
9714	9714	1 (f) The tax under this section is subject to the tax levy limitations
9715	9715	2 imposed under IC 6-1.1-18.5-10.5.
9716	9716	3 SECTION 186. [EFFECTIVE JANUARY 1, 2025
9717	9717	4 (RETROACTIVE)] (a) IC 6-1.1-51, as added by this act, applies to
9718	9718	5 property taxes imposed for assessment dates on or after January
9719	9719	6 1, 2025.
9720	9720	7 (b) This SECTION expires June 30, 2029.
9721	9721	8 SECTION 187. [EFFECTIVE JUNE 30, 2026] (a) Notwithstanding
9722	9722	9 the July 1, 2026, effective date for IC 6-3.6-6-0.5, IC 6-3.6-6-4.3,
9723	9723	10 IC 6-3.6-6-4.5, and IC 6-3.6-6-6.1, all as added by this act; the July
9724	9724	11 1, 2026, effective date for IC 6-3.6-6-2, IC 6-3.6-6-3, IC 6-3.6-6-4,
9725	9725	12 IC 6-3.6-6-8, IC 6-3.6-6-8.5, IC 6-3.6-6-9.5, IC 6-3.6-6-17,
9726	9726	13 IC 6-3.6-6-18, IC 6-3.6-6-19, and IC 6-3.6-6-21, all as amended by
9727	9727	14 this act; and the July 1, 2026, or January 1, 2027, repeal of
9728	9728	15 IC 6-3.6-6-2.5, IC 6-3.6-6-2.6, IC 6-3.6-6-2.7, IC 6-3.6-6-2.8,
9729	9729	16 IC 6-3.6-6-2.9, IC 6-3.6-6-9, IC 6-3.6-6-10, IC 6-3.6-6-11,
9730	9730	17 IC 6-3.6-6-12, IC 6-3.6-6-14, IC 6-3.6-6-15, IC 6-3.6-6-16, and
9731	9731	18 IC 6-3.6-6-20, all as repealed by this act; the method used to
9732	9732	19 determine the amount of a particular distribution of revenue
9733	9733	20 before July 1, 2026, shall continue to be used for these
9734	9734	21 determinations for all of 2026.
9735	9735	22 (b) Notwithstanding the adoption of different tax rates by a
9736	9736	23 county applicable after 2026 or the adoption of municipal tax rates
9737	9737	24 under IC 6-3.6-6-22 applicable after 2026, or any other provision
9738	9738	25 of law, the certified distribution methodology calculation for local
9739	9739	26 income tax distributions made in 2026 shall continue for local
9740	9740	27 income tax distributions made in 2027 and 2028 to account for the
9741	9741	28 transition to any new tax rates.
9742	9742	29 (c) This SECTION expires June 30, 2029.
9743	9743	30 SECTION 188. [EFFECTIVE JUNE 30, 2026] (a) As used in this
9744	9744	31 SECTION, "local income tax council" means a local income tax
9745	9745	32 council established under IC 6-3.6-3-1, before its amendment by
9746	9746	33 this act.
9747	9747	34 (b) On July 1, 2026, all powers, duties, and authorities of a local
9748	9748	35 income tax council are transferred to the fiscal body of the county
9749	9749	36 in which it is located.
9750	9750	37 (c) An ordinance adopted by a local income tax council under
9751	9751	38 IC 6-3.6 before July 1, 2026, continues in effect after June 30, 2026,
9752	9752	39 and is valid and binding until it is rescinded or otherwise amended
9753	9753	40 by the county fiscal body.
9754	9754	41 (d) On or before July 1, 2026, all records and property under
9755	9755	42 the control of a local income tax council shall be transferred to the
9756	9756	2025 IN 1402—LS 7150/DI 120 226
9757	9757	1 fiscal body of the county in which it is located.
9758	9758	2 (e) After June 30, 2026, a reference to a local income tax council
9759	9759	3 in any statute, rule, or other document is considered a reference to
9760	9760	4 the county fiscal body.
9761	9761	5 (f) This SECTION expires June 30, 2029.
9762	9762	6 SECTION 189. An emergency is declared for this act.
9763	9763	2025 IN 1402—LS 7150/DI 120