IN
Indiana Senate Bill SB0290

Indiana 2025 Regular Session

Indiana Senate Bill SB0290 Compare Versions

OldNewDifferences
1-*SB0290.1*
2-February 12, 2025
1+
2+Introduced Version
33 SENATE BILL No. 290
44 _____
5-DIGEST OF SB 290 (Updated February 11, 2025 10:52 am - DI 129)
6-Citations Affected: IC 6-1.1; IC 6-3.6.
5+DIGEST OF INTRODUCED BILL
6+Citations Affected: IC 6-1.1-18.5-31; IC 6-3.6.
77 Synopsis: Local taxes in certain municipalities. Requires the
88 department of local government finance to increase the maximum
99 permissible property tax levy for certain qualifying municipalities for
1010 property taxes first due and payable in 2025 to include all debt service
1111 levies of the qualifying municipality for property taxes first due and
1212 payable in 2025. Specifies that the adjustment is a one time and
1313 permanent increase. Changes the local income tax trust account
1414 threshold percentage of a county that contains a qualifying
1515 municipality, which is used for purposes of determining whether the
1616 county shall receive a supplemental distribution. Modifies the certified
17-share allocation determination for a qualifying municipality. Prohibits
18-the use of funds from the state general fund to make up certain local
19-income tax related shortfalls.
17+share allocation determination for a qualifying municipality.
2018 Effective: Upon passage.
21-Walker K, Holdman,
22-Randolph Lonnie M
19+Walker K, Holdman
2320 January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
24-February 11, 2025, amended, reported favorably — Do Pass.
25-SB 290—LS 6791/DI 120 February 12, 2025
21+2025 IN 290—LS 6791/DI 120 Introduced
2622 First Regular Session of the 124th General Assembly (2025)
2723 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
2824 Constitution) is being amended, the text of the existing provision will appear in this style type,
2925 additions will appear in this style type, and deletions will appear in this style type.
3026 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
3127 provision adopted), the text of the new provision will appear in this style type. Also, the
3228 word NEW will appear in that style type in the introductory clause of each SECTION that adds
3329 a new provision to the Indiana Code or the Indiana Constitution.
3430 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
3531 between statutes enacted by the 2024 Regular Session of the General Assembly.
3632 SENATE BILL No. 290
3733 A BILL FOR AN ACT to amend the Indiana Code concerning
3834 taxation.
3935 Be it enacted by the General Assembly of the State of Indiana:
4036 1 SECTION 1. IC 6-1.1-18.5-31 IS ADDED TO THE INDIANA
4137 2 CODE AS A NEW SECTION TO READ AS FOLLOWS
4238 3 [EFFECTIVE UPON PASSAGE]: Sec. 31. (a) This section applies
4339 4 only to counties that contain at least four (4) municipalities each
4440 5 with a population greater than forty thousand (40,000), as
4541 6 determined by the most recent federal decennial census.
4642 7 (b) As used in this section, "maximum levy to assessed value
4743 8 comparison" refers to the maximum property tax levy to property
4844 9 assessed value comparison determined under subsection (e).
4945 10 (c) As used in this section, "municipality" means a city or town.
5046 11 (d) As used in this section, "qualifying municipality" means a
5147 12 municipality that meets the condition set forth in subsection (f).
5248 13 (e) The department of local government finance shall, before
5349 14 August 1, determine a maximum property tax levy to property
5450 15 assessed value comparison for all municipalities statewide using the
5551 16 following formula:
5652 17 STEP ONE: For each municipality, determine the
57-SB 290—LS 6791/DI 120 2
53+2025 IN 290—LS 6791/DI 120 2
5854 1 municipality's maximum permissible ad valorem property tax
5955 2 levy for taxes first due and payable in 2024.
6056 3 STEP TWO: For each municipality, determine the total
6157 4 property assessed value of the municipality, as certified by the
6258 5 county auditor, for taxes first due and payable in 2024.
6359 6 STEP THREE: For each municipality, determine the quotient
6460 7 of:
6561 8 (A) STEP ONE; divided by
6662 9 (B) STEP TWO;
6763 10 expressed as a percentage.
6864 11 (f) This section applies only to a municipality in which for taxes
6965 12 first due and payable in 2025, the municipality has a maximum
7066 13 levy to assessed value comparison that is in the lowest twentieth
7167 14 percentile of municipalities under STEP THREE of subsection (e)
7268 15 when compared to all municipalities statewide.
7369 16 (g) If this section applies, the executive of a qualified
7470 17 municipality may, not later than July 1, 2025, and after receiving
7571 18 approval by the legislative body, submit a petition to the
7672 19 department of local government finance to increase the maximum
7773 20 permissible ad valorem property tax levy of a qualified
7874 21 municipality under this subsection. If a petition is submitted under
7975 22 this subsection, the department of local government finance shall
8076 23 increase the maximum permissible ad valorem property tax levy
8177 24 of the qualifying municipality for property taxes first due and
8278 25 payable in 2025 to include all debt service levies of the qualifying
8379 26 municipality for property taxes first due and payable in 2025.
8480 27 (h) An adjustment under this section is a one (1) time and
8581 28 permanent increase. The qualifying municipality's ad valorem
8682 29 property tax levy for property taxes first due and payable in 2025,
8783 30 as adjusted under this section, shall be used in the determination
8884 31 of the qualifying municipality's maximum permissible ad valorem
8985 32 property tax levy under this chapter for property taxes first due
9086 33 and payable in 2026 and thereafter.
9187 34 (i) Notwithstanding STEP ONE of section 3(a) of this chapter,
9288 35 for purposes of determining a qualified municipality's maximum
9389 36 permissible ad valorem property tax levy for property taxes first due
9490 37 and payable in 2026, the amount determined in STEP ONE of section
9591 38 3(a) of this chapter shall be the result determined in STEP TWO of the
9692 39 following calculation:
9793 40 STEP ONE: Determine a qualified municipality's maximum
9894 41 permissible ad valorem property tax levy for property taxes
9995 42 first due and payable in 2025 without regard to the
100-SB 290—LS 6791/DI 120 3
96+2025 IN 290—LS 6791/DI 120 3
10197 1 adjustment under this section.
10298 2 STEP TWO: Determine the sum of:
10399 3 (A) STEP ONE; plus
104100 4 (B) the amount of the adjustment under this section.
105101 5 This calculation only applies to determining a qualified
106102 6 municipality's maximum ad valorem property tax levy for
107103 7 property taxes first due and payable in 2026 and not to a
108104 8 determination for any other tax year.
109105 9 (j) This section expires June 30, 2030.
110106 10 SECTION 2. IC 6-3.6-6-12, AS AMENDED BY P.L.247-2017,
111107 11 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
112108 12 UPON PASSAGE]: Sec. 12. (a) Except as provided in this chapter and
113109 13 IC 6-3.6-11, this section applies to an allocation of certified shares in
114110 14 all counties.
115111 15 (b) The allocation amount of a civil taxing unit during a calendar
116112 16 year must be based on the amounts for the calendar year preceding the
117113 17 distribution year and is equal to the amount determined using the
118114 18 following formula:
119115 19 STEP ONE: Determine the sum of the total property taxes being
120116 20 imposed by the civil taxing unit.
121117 21 STEP TWO: Determine the sum of the following:
122118 22 (A) Amounts appropriated from property taxes to pay the
123119 23 principal of or interest on any debenture or other debt
124120 24 obligation issued after June 30, 2005, other than an obligation
125121 25 described in subsection (c).
126122 26 (B) Amounts appropriated from property taxes to make
127123 27 payments on any lease entered into after June 30, 2005, other
128124 28 than a lease described in subsection (d).
129125 29 STEP THREE: Subtract the STEP TWO amount from the STEP
130126 30 ONE amount.
131-31 STEP FOUR: In the case of a qualifying municipality as
132-32 defined in IC 6-1.1-18.5-31(d) that is located in a county
133-33 described in IC 6-1.1-18.5-31(a), and only for the allocation of
134-34 certified shares in 2027 and 2028, STEP THREE multiplied
135-35 by seventy percent (70%).
136-36 STEP FOUR: FIVE: Determine the sum of:
137-37 (A) the:
138-38 (i) STEP THREE amount; or
139-39 (ii) STEP FOUR amount in the case of a qualifying
140-40 municipality as defined in IC 6-1.1-18.5-31(d) that is
141-41 located in a county described in IC 6-1.1-18.5-31(a); plus
142-42 (B) the civil taxing unit's certified shares plus the amount
143-SB 290—LS 6791/DI 120 4
144-1 distributed under section 3(a)(2) of this chapter for the
145-2 previous calendar year; plus
146-3 (C) in the case of a qualifying municipality as defined in
147-4 IC 6-1.1-18.5-31(d) that is located in a county described in
148-5 IC 6-1.1-18.5-31(a), and only for the allocation of certified
149-6 shares in 2026, the amount of the levy for the
150-7 municipality's debt service and lease rental funds that was
151-8 certified in 2025 multiplied by fifty-four and five-tenths
152-9 percent (54.5%). This clause expires January 1, 2027.
153-10 The allocation amount is subject to adjustment as provided in
154-11 IC 36-8-19-7.5.
155-12 (c) Except as provided in this subsection, an appropriation for the
156-13 calendar year preceding the distribution year from property taxes to
157-14 repay interest and principal of a debt obligation is not deducted from
158-15 the allocation amount for a civil taxing unit if:
159-16 (1) the debt obligation was issued; and
160-17 (2) the proceeds were appropriated from property taxes;
161-18 to refund or otherwise refinance a debt obligation or a lease issued
162-19 before July 1, 2005. However, an appropriation from property taxes
163-20 related to a debt obligation issued after June 30, 2005, is deducted if
164-21 the debt extends payments on a debt or lease beyond the time in which
165-22 the debt or lease would have been payable if the debt or lease had not
166-23 been refinanced or increases the total amount that must be paid on a
167-24 debt or lease in excess of the amount that would have been paid if the
168-25 debt or lease had not been refinanced. The amount of the deduction is
169-26 the annual amount for each year of the extension period or the annual
170-27 amount of the increase over the amount that would have been paid.
171-28 (d) Except as provided in this subsection, an appropriation for the
172-29 calendar year preceding the distribution year from property taxes to
173-30 make payments on a lease is not deducted from the allocation amount
174-31 for a civil taxing unit if:
175-32 (1) the lease was issued; and
176-33 (2) the proceeds were appropriated from property taxes;
177-34 to refinance a debt obligation or lease issued before July 1, 2005.
178-35 However, an appropriation from property taxes related to a lease
179-36 entered into after June 30, 2005, is deducted if the lease extends
180-37 payments on a debt or lease beyond the time in which the debt or lease
181-38 would have been payable if the debt or lease had not been refinanced
182-39 or increases the total amount that must be paid on a debt or lease in
183-40 excess of the amount that would have been paid if the debt or lease had
184-41 not been refinanced. The amount of the deduction is the annual amount
185-42 for each year of the extension period or the annual amount of the
186-SB 290—LS 6791/DI 120 5
187-1 increase over the amount that would have been paid.
188-2 SECTION 3. IC 6-3.6-9-15, AS AMENDED BY P.L.239-2023,
189-3 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
190-4 UPON PASSAGE]: Sec. 15. (a) If the budget agency determines that
191-5 the balance in a county trust account exceeds fifteen percent (15%) (or
192-6 the percentage set forth in subsection (g), if applicable) of the
193-7 certified distributions to be made to the county in the determination
194-8 year, the budget agency shall make a supplemental distribution to the
195-9 county from the county's trust account. The budget agency shall use the
196-10 trust account balance as of December 31 of the year that precedes the
197-11 determination year by two (2) years (referred to as the "trust account
198-12 balance year" in this section).
199-13 (b) A supplemental distribution described in subsection (a) must be:
200-14 (1) made at the same time as the determinations are provided to
201-15 the county auditor under subsection (d)(3); and
202-16 (2) allocated in the same manner as certified distributions for the
203-17 purposes described in this article.
204-18 (c) The amount of a supplemental distribution described in
205-19 subsection (a) is equal to the amount by which:
206-20 (1) the balance in the county trust account; minus
207-21 (2) the amount of any supplemental or special distribution that has
208-22 not yet been accounted for in the last known balance of the
209-23 county's trust account;
210-24 exceeds fifteen percent (15%) (or the percentage set forth in
211-25 subsection (g), if applicable) of the certified distributions to be made
212-26 to the county in the determination year.
213-27 (d) For a county that qualifies for a supplemental distribution under
214-28 this section in a year, the following apply:
215-29 (1) Before February 15, the budget agency shall update the
216-30 information described in section 9 of this chapter to include the
217-31 excess account balances to be distributed under this section.
218-32 (2) Before May 2, the budget agency shall provide the amount of
219-33 the supplemental distribution for the county to the department of
220-34 local government finance and to the county auditor.
221-35 (3) The department of local government finance shall determine
222-36 for the county and each taxing unit within the county:
223-37 (A) the amount and allocation of the supplemental distribution
224-38 attributable to the taxes that were imposed as of December 31
225-39 of the trust account balance year, including any specific
226-40 distributions for that year; and
227-41 (B) the amount of the allocation for each of the purposes set
228-42 forth in this article, using the allocation percentages in effect
229-SB 290—LS 6791/DI 120 6
230-1 in the trust account balance year.
231-2 The department of local government finance shall provide these
232-3 determinations to the county auditor before May 16 of the
233-4 determination year.
234-5 (4) Before June 1, the county auditor shall distribute to each
235-6 taxing unit the amount of the supplemental distribution that is
236-7 allocated to the taxing unit under subdivision (3). However, for a
237-8 county with a former tax to provide for a levy freeze under
238-9 IC 6-3.6-11-1, the supplemental distribution shall first be
239-10 distributed as determined in any resolution adopted under
240-11 IC 6-3.6-11-1(d).
241-12 For determinations before 2019, the tax rates in effect under and the
242-13 allocation methods specified in the former income tax laws shall be
243-14 used for the determinations under subdivision (3).
244-15 (e) For any part of a supplemental distribution attributable to
245-16 property tax credits under a former income tax or IC 6-3.6-5, the
246-17 adopting body for the county may allocate the supplemental
247-18 distribution to property tax credits for not more than the three (3) years
248-19 after the year the supplemental distribution is received.
249-20 (f) Any income earned on money held in a trust account established
250-21 for a county under this chapter shall be deposited in that trust account.
251-22 (g) This subsection applies only to counties that contain at least
252-23 four (4) municipalities (cities or towns) each with a population
253-24 greater than forty thousand (40,000), as determined by the most
254-25 recent federal decennial census, in which at least one (1) of those
255-26 municipalities meets the definition of a qualifying municipality
256-27 under IC 6-1.1-18.5-31(d). The following percentages apply for
257-28 purposes of the determinations under subsections (a) and (c):
258-29 (1) For the determination year beginning after December 31,
259-30 2025, and ending before January 1, 2027, twelve and
260-31 five-tenths percent (12.5%).
261-32 (2) For the determination year beginning after December 31,
262-33 2026, and ending before January 1, 2028, ten percent (10%).
263-34 (3) For a determination year beginning after December 31,
264-35 2027, and ending before January 1, 2029, seven and
265-36 five-tenths percent (7.5%).
266-37 (4) For the determination year beginning after December 31,
267-38 2028, and ending before January 1, 2030, five percent (5%).
268-39 (5) For the determination year beginning after December 31,
269-40 2029, and ending before January 1, 2031, two and one-half
270-41 percent (2.5%).
271-42 (6) For the determination year beginning after December 31,
272-SB 290—LS 6791/DI 120 7
273-1 2030, one percent (1%).
274-2 SECTION 4. IC 6-3.6-9-17.6 IS ADDED TO THE INDIANA
275-3 CODE AS A NEW SECTION TO READ AS FOLLOWS
276-4 [EFFECTIVE UPON PASSAGE]: Sec. 17.6. (a) Notwithstanding any
277-5 other provision, funds from the state general fund shall not be used
278-6 to make up a shortfall in the:
279-7 (1) reserve account; or
280-8 (2) certified distribution.
281-9 (b) If a county reserve account runs out of funds for making a
282-10 certified distribution, funds may not be transferred from the state
283-11 general fund to the reserve account.
284-12 SECTION 5. An emergency is declared for this act.
285-SB 290—LS 6791/DI 120 8
286-COMMITTEE REPORT
287-Mr. President: The Senate Committee on Tax and Fiscal Policy, to
288-which was referred Senate Bill No. 290, has had the same under
289-consideration and begs leave to report the same back to the Senate with
290-the recommendation that said bill be AMENDED as follows:
291-Page 3, delete lines 10 through 42, begin a new paragraph and
292-insert:
293-"SECTION 2. IC 6-3.6-6-12, AS AMENDED BY P.L.247-2017,
294-SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
295-UPON PASSAGE]: Sec. 12. (a) Except as provided in this chapter and
296-IC 6-3.6-11, this section applies to an allocation of certified shares in
297-all counties.
298-(b) The allocation amount of a civil taxing unit during a calendar
299-year must be based on the amounts for the calendar year preceding the
300-distribution year and is equal to the amount determined using the
301-following formula:
302-STEP ONE: Determine the sum of the total property taxes being
303-imposed by the civil taxing unit.
304-STEP TWO: Determine the sum of the following:
305-(A) Amounts appropriated from property taxes to pay the
306-principal of or interest on any debenture or other debt
307-obligation issued after June 30, 2005, other than an obligation
308-described in subsection (c).
309-(B) Amounts appropriated from property taxes to make
310-payments on any lease entered into after June 30, 2005, other
311-than a lease described in subsection (d).
312-STEP THREE: Subtract the STEP TWO amount from the STEP
313-ONE amount.
314-STEP FOUR: In the case of a qualifying municipality as
315-defined in IC 6-1.1-18.5-31(d) that is located in a county
316-described in IC 6-1.1-18.5-31(a), and only for the allocation of
317-certified shares in 2027 and 2028, STEP THREE multiplied
318-by seventy percent (70%).
319-STEP FOUR: FIVE: Determine the sum of:
320-(A) the:
321-(i) STEP THREE amount; or
322-(ii) STEP FOUR amount in the case of a qualifying
323-municipality as defined in IC 6-1.1-18.5-31(d) that is
324-located in a county described in IC 6-1.1-18.5-31(a); plus
325-(B) the civil taxing unit's certified shares plus the amount
326-distributed under section 3(a)(2) of this chapter for the
327-SB 290—LS 6791/DI 120 9
328-previous calendar year; plus
329-(C) in the case of a qualifying municipality as defined in
330-IC 6-1.1-18.5-31(d) that is located in a county described in
331-IC 6-1.1-18.5-31(a), and only for the allocation of certified
332-shares in 2026, the amount of the levy for the
333-municipality's debt service and lease rental funds that was
334-certified in 2025 multiplied by fifty-four and five-tenths
335-percent (54.5%). This clause expires January 1, 2027.
336-The allocation amount is subject to adjustment as provided in
337-IC 36-8-19-7.5.
338-(c) Except as provided in this subsection, an appropriation for the
339-calendar year preceding the distribution year from property taxes to
340-repay interest and principal of a debt obligation is not deducted from
341-the allocation amount for a civil taxing unit if:
342-(1) the debt obligation was issued; and
343-(2) the proceeds were appropriated from property taxes;
344-to refund or otherwise refinance a debt obligation or a lease issued
345-before July 1, 2005. However, an appropriation from property taxes
346-related to a debt obligation issued after June 30, 2005, is deducted if
347-the debt extends payments on a debt or lease beyond the time in which
348-the debt or lease would have been payable if the debt or lease had not
349-been refinanced or increases the total amount that must be paid on a
350-debt or lease in excess of the amount that would have been paid if the
351-debt or lease had not been refinanced. The amount of the deduction is
352-the annual amount for each year of the extension period or the annual
353-amount of the increase over the amount that would have been paid.
354-(d) Except as provided in this subsection, an appropriation for the
355-calendar year preceding the distribution year from property taxes to
356-make payments on a lease is not deducted from the allocation amount
357-for a civil taxing unit if:
358-(1) the lease was issued; and
359-(2) the proceeds were appropriated from property taxes;
360-to refinance a debt obligation or lease issued before July 1, 2005.
361-However, an appropriation from property taxes related to a lease
362-entered into after June 30, 2005, is deducted if the lease extends
363-payments on a debt or lease beyond the time in which the debt or lease
364-would have been payable if the debt or lease had not been refinanced
365-or increases the total amount that must be paid on a debt or lease in
366-excess of the amount that would have been paid if the debt or lease had
367-not been refinanced. The amount of the deduction is the annual amount
368-for each year of the extension period or the annual amount of the
369-increase over the amount that would have been paid.".
370-SB 290—LS 6791/DI 120 10
371-Page 4, delete lines 1 through 33.
372-Page 6, line 25, delete "January 1, 2033," and insert "January 1,
373-2029,".
374-Page 6, between lines 26 and 27, begin a new line block indented
375-and insert:
376-"(4) For the determination year beginning after December 31,
377-2028, and ending before January 1, 2030, five percent (5%).
378-(5) For the determination year beginning after December 31,
379-2029, and ending before January 1, 2031, two and one-half
380-percent (2.5%).
381-(6) For the determination year beginning after December 31,
382-2030, one percent (1%).".
383-Page 6, delete lines 27 through 29, begin a new paragraph and
384-insert:
385-"SECTION 3. IC 6-3.6-9-17.6 IS ADDED TO THE INDIANA
386-CODE AS A NEW SECTION TO READ AS FOLLOWS
387-[EFFECTIVE UPON PASSAGE]: Sec. 17.6. (a) Notwithstanding any
388-other provision, funds from the state general fund shall not be used
389-to make up a shortfall in the:
390-(1) reserve account; or
391-(2) certified distribution.
392-(b) If a county reserve account runs out of funds for making a
393-certified distribution, funds may not be transferred from the state
394-general fund to the reserve account.".
395-Renumber all SECTIONS consecutively.
396-and when so amended that said bill do pass.
397-(Reference is to SB 290 as introduced.)
398-HOLDMAN, Chairperson
399-Committee Vote: Yeas 13, Nays 0.
400-SB 290—LS 6791/DI 120
127+31 STEP FOUR: Determine the sum of:
128+32 (A) the STEP THREE amount; plus
129+33 (B) the civil taxing unit's certified shares plus the amount
130+34 distributed under section 3(a)(2) of this chapter for the
131+35 previous calendar year; plus
132+36 (C) in the case of a qualifying municipality as defined in
133+37 IC 6-1.1-18.5-31(d) that is located in a county described in
134+38 IC 6-1.1-18.5-31(a), and only for the allocation of certified
135+39 shares in 2026, the amount of the levy for the
136+40 municipality's debt service and lease rental funds that was
137+41 certified in 2025. This clause expires January 1, 2027.
138+42 The allocation amount is subject to adjustment as provided in
139+2025 IN 290—LS 6791/DI 120 4
140+1 IC 36-8-19-7.5.
141+2 (c) Except as provided in this subsection, an appropriation for the
142+3 calendar year preceding the distribution year from property taxes to
143+4 repay interest and principal of a debt obligation is not deducted from
144+5 the allocation amount for a civil taxing unit if:
145+6 (1) the debt obligation was issued; and
146+7 (2) the proceeds were appropriated from property taxes;
147+8 to refund or otherwise refinance a debt obligation or a lease issued
148+9 before July 1, 2005. However, an appropriation from property taxes
149+10 related to a debt obligation issued after June 30, 2005, is deducted if
150+11 the debt extends payments on a debt or lease beyond the time in which
151+12 the debt or lease would have been payable if the debt or lease had not
152+13 been refinanced or increases the total amount that must be paid on a
153+14 debt or lease in excess of the amount that would have been paid if the
154+15 debt or lease had not been refinanced. The amount of the deduction is
155+16 the annual amount for each year of the extension period or the annual
156+17 amount of the increase over the amount that would have been paid.
157+18 (d) Except as provided in this subsection, an appropriation for the
158+19 calendar year preceding the distribution year from property taxes to
159+20 make payments on a lease is not deducted from the allocation amount
160+21 for a civil taxing unit if:
161+22 (1) the lease was issued; and
162+23 (2) the proceeds were appropriated from property taxes;
163+24 to refinance a debt obligation or lease issued before July 1, 2005.
164+25 However, an appropriation from property taxes related to a lease
165+26 entered into after June 30, 2005, is deducted if the lease extends
166+27 payments on a debt or lease beyond the time in which the debt or lease
167+28 would have been payable if the debt or lease had not been refinanced
168+29 or increases the total amount that must be paid on a debt or lease in
169+30 excess of the amount that would have been paid if the debt or lease had
170+31 not been refinanced. The amount of the deduction is the annual amount
171+32 for each year of the extension period or the annual amount of the
172+33 increase over the amount that would have been paid.
173+34 SECTION 3. IC 6-3.6-9-15, AS AMENDED BY P.L.239-2023,
174+35 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
175+36 UPON PASSAGE]: Sec. 15. (a) If the budget agency determines that
176+37 the balance in a county trust account exceeds fifteen percent (15%) (or
177+38 the percentage set forth in subsection (g), if applicable) of the
178+39 certified distributions to be made to the county in the determination
179+40 year, the budget agency shall make a supplemental distribution to the
180+41 county from the county's trust account. The budget agency shall use the
181+42 trust account balance as of December 31 of the year that precedes the
182+2025 IN 290—LS 6791/DI 120 5
183+1 determination year by two (2) years (referred to as the "trust account
184+2 balance year" in this section).
185+3 (b) A supplemental distribution described in subsection (a) must be:
186+4 (1) made at the same time as the determinations are provided to
187+5 the county auditor under subsection (d)(3); and
188+6 (2) allocated in the same manner as certified distributions for the
189+7 purposes described in this article.
190+8 (c) The amount of a supplemental distribution described in
191+9 subsection (a) is equal to the amount by which:
192+10 (1) the balance in the county trust account; minus
193+11 (2) the amount of any supplemental or special distribution that has
194+12 not yet been accounted for in the last known balance of the
195+13 county's trust account;
196+14 exceeds fifteen percent (15%) (or the percentage set forth in
197+15 subsection (g), if applicable) of the certified distributions to be made
198+16 to the county in the determination year.
199+17 (d) For a county that qualifies for a supplemental distribution under
200+18 this section in a year, the following apply:
201+19 (1) Before February 15, the budget agency shall update the
202+20 information described in section 9 of this chapter to include the
203+21 excess account balances to be distributed under this section.
204+22 (2) Before May 2, the budget agency shall provide the amount of
205+23 the supplemental distribution for the county to the department of
206+24 local government finance and to the county auditor.
207+25 (3) The department of local government finance shall determine
208+26 for the county and each taxing unit within the county:
209+27 (A) the amount and allocation of the supplemental distribution
210+28 attributable to the taxes that were imposed as of December 31
211+29 of the trust account balance year, including any specific
212+30 distributions for that year; and
213+31 (B) the amount of the allocation for each of the purposes set
214+32 forth in this article, using the allocation percentages in effect
215+33 in the trust account balance year.
216+34 The department of local government finance shall provide these
217+35 determinations to the county auditor before May 16 of the
218+36 determination year.
219+37 (4) Before June 1, the county auditor shall distribute to each
220+38 taxing unit the amount of the supplemental distribution that is
221+39 allocated to the taxing unit under subdivision (3). However, for a
222+40 county with a former tax to provide for a levy freeze under
223+41 IC 6-3.6-11-1, the supplemental distribution shall first be
224+42 distributed as determined in any resolution adopted under
225+2025 IN 290—LS 6791/DI 120 6
226+1 IC 6-3.6-11-1(d).
227+2 For determinations before 2019, the tax rates in effect under and the
228+3 allocation methods specified in the former income tax laws shall be
229+4 used for the determinations under subdivision (3).
230+5 (e) For any part of a supplemental distribution attributable to
231+6 property tax credits under a former income tax or IC 6-3.6-5, the
232+7 adopting body for the county may allocate the supplemental
233+8 distribution to property tax credits for not more than the three (3) years
234+9 after the year the supplemental distribution is received.
235+10 (f) Any income earned on money held in a trust account established
236+11 for a county under this chapter shall be deposited in that trust account.
237+12 (g) This subsection applies only to counties that contain at least
238+13 four (4) municipalities (cities or towns) each with a population
239+14 greater than forty thousand (40,000), as determined by the most
240+15 recent federal decennial census, in which at least one (1) of those
241+16 municipalities meets the definition of a qualifying municipality
242+17 under IC 6-1.1-18.5-31(d). The following percentages apply for
243+18 purposes of the determinations under subsections (a) and (c):
244+19 (1) For the determination year beginning after December 31,
245+20 2025, and ending before January 1, 2027, twelve and
246+21 five-tenths percent (12.5%).
247+22 (2) For the determination year beginning after December 31,
248+23 2026, and ending before January 1, 2028, ten percent (10%).
249+24 (3) For a determination year beginning after December 31,
250+25 2027, and ending before January 1, 2033, seven and
251+26 five-tenths percent (7.5%).
252+27 The percentages under this subsection apply only to those years
253+28 specified in subdivisions (1) through (3) and not to any other years.
254+29 This subsection expires June 30, 2034.
255+30 SECTION 4. An emergency is declared for this act.
256+2025 IN 290—LS 6791/DI 120