Introduced Version
SENATE BILL No. 347
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-1-8-20.5; IC 36-7-32.5-14.5.
Synopsis: Indiana economic development corporation. Allows the
fiscal body of a county, city, or town to adopt an ordinance to require
the Indiana economic development corporation (corporation) to make
payments in lieu of taxes (PILOTS) with respect to real property that
satisfies each of the following conditions: (1) The corporation is the
owner of any real property that is exempt from property taxes. (2) The
corporation has been the owner of such real property for at least one
year on the date that an ordinance is adopted. Specifies that the
assessed value of the real property subject to PILOTS is equal to the
assessed value of the real property on the assessment date of the
calendar year in which the corporation purchased the real property
while the ordinance is in effect. Provides for the submission of an
annual report of the activities of an innovation development district as
to financial information pertaining to tax increment financing districts
in an innovation development district to the: (1) fiscal body of the
county, city, or town; and (2) department of local government finance.
Continuously appropriates from the state general fund the amount
necessary for the corporation to pay the required PILOTS.
Effective: July 1, 2025.
Buchanan
January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 347—LS 7281/DI 129 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 347
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 36-1-8-20.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2025]: Sec. 20.5. (a) As used in this section, the following terms
4 have the meanings set forth in IC 6-1.1-1:
5 (1) Assessed value.
6 (2) Assessment date.
7 (3) Exemption.
8 (4) Owner.
9 (5) Person.
10 (6) Property taxation.
11 (b) As used in this section, "assessor" means a:
12 (1) county assessor; or
13 (2) township assessor (if any).
14 (c) As used in this section, "PILOTS" means payments in lieu of
15 taxes.
16 (d) The fiscal body of a county, city, or town may adopt an
17 ordinance to require the corporation to pay PILOTS at times set
2025 IN 347—LS 7281/DI 129 2
1 forth in the ordinance with respect to real property that meets each
2 of the following conditions:
3 (1) The corporation is the owner of any real property that is
4 exempt from property taxes.
5 (2) The corporation has been the owner of the real property
6 described in subdivision (1) for at least one (1) year on the
7 date that an ordinance is adopted under this section.
8 The ordinance remains in full force and effect until repealed or
9 modified by the fiscal body.
10 (e) The PILOTS must be calculated so that the PILOTS do not
11 exceed the amount of property taxes that would have been levied
12 by the fiscal body for the county, city, or town upon the real
13 property described in subsection (d) if the property were not
14 exempt from property taxation. The PILOTS shall be imposed as
15 are property taxes, and, subject to subsection (f), shall be based on
16 the assessed value of the real property described in subsection (d).
17 (f) The assessor shall assess the real property described in
18 subsection (d) as though the real property were not exempt.
19 However, the assessed value of the real property subject to
20 PILOTS is equal to the assessed value of the real property on the
21 assessment date of the calendar year in which the corporation
22 purchased the real property while the ordinance is in effect.
23 (g) PILOTS shall be deposited in the general fund of the county,
24 city, or town and used for any purpose for which the general fund
25 may be used.
26 (h) PILOTS shall be due as set forth in the ordinance and bear
27 interest, if unpaid, as in the case of other taxes on property.
28 PILOTS shall be treated in the same manner as property taxes for
29 purposes of all procedural and substantive provisions of law.
30 (i) There is continuously appropriated from the state general
31 fund the amount necessary for the corporation to pay the PILOTS
32 required by an ordinance adopted under this section.
33 SECTION 2. IC 36-7-32.5-14.5 IS ADDED TO THE INDIANA
34 CODE AS A NEW SECTION TO READ AS FOLLOWS
35 [EFFECTIVE JULY 1, 2025]: Sec. 14.5. (a) Not later than April 15
36 of each year, the corporation and the executive of a county, city, or
37 town in which an innovation development district is designated
38 under section 9 of this chapter shall submit a report setting out the
39 innovation development district's activities during the preceding
40 calendar year to the:
41 (1) fiscal body of the county, city, or town; and
42 (2) department of local government finance in an electronic
2025 IN 347—LS 7281/DI 129 3
1 format.
2 (b) The report required under subsection (a) must also include
3 the following information set forth for each tax increment
4 financing district regarding the previous year:
5 (1) Revenues received.
6 (2) Expenses paid.
7 (3) Fund balances.
8 (4) The amount and maturity date for all outstanding
9 obligations.
10 (5) The amount paid on outstanding obligations.
11 (6) A list of all the parcels and the depreciable personal
12 property of any designated taxpayer included in each tax
13 increment financing district allocation area and the base
14 assessed value and incremental assessed value for each parcel
15 and the depreciable personal property of any designated
16 taxpayer in the list.
17 (7) Amounts distributed to cities, towns, counties, or school
18 corporations as described in section 19(e) of this chapter.
2025 IN 347—LS 7281/DI 129