Bill Text: IN HB1088 | 2010 | Regular Session | Introduced
Bill Title: Real property reassessment.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2010-01-12 - Representative Noe added as coauthor [HB1088 Detail]
Download: Indiana-2010-HB1088-Introduced.html
Citations Affected: IC 6-1.1; IC 33-26-8; IC 36-2-7-13; IC 36-6-8-5;
IC 36-7.
Synopsis: Real property reassessment. Requires the county assessor
of each county to prepare and submit to the department of local
government finance (DLGF) a reassessment plan for the county.
Specifies that the reassessment plan is subject to approval by the
DLGF. Provides that the reassessment plan must divide all parcels of
real property in the county into different groups of parcels. Requires
that each group of parcels must contain at least 25% of the parcels
within each class of real property in the county. Provides that the
reassessment of the first group of parcels under a county's reassessment
plan must begin on July 1, 2011, and must be completed on or before
March 1, 2012. Provides that a petition for reassessment of a group of
parcels must be signed by not less than 100 real property owners of
parcels in the group or 5% of real property owners of parcels in the
group and must be filed with the DLGF not later than 45 days after
notice of assessment is provided. Provides that the county assessor
determines the values of all classes of land in the county. Provides that
a petition for the review of the land values determined by the county
assessor may be filed with the DLGF. Requires the petition to be
signed by at least the lesser of: (1) 100 property owners in the county;
or (2) 5% of the property owners in the county. Repeals the statute
requiring a general reassessment of real property to begin in 2010.
Effective: January 1, 2011.
January 5, 2010, read first time and referred to Committee on Rules and Legislative
Procedures.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) The reassessment plan is subject to approval by the department of local government finance.
(2) The department of local government finance shall determine the classes of real property to be used for purposes of this section.
(3) Except as provided in subsection (b), the reassessment plan must divide all parcels of real property in the county into four (4) different groups of parcels. Each group of parcels must contain approximately twenty-five percent (25%) of the parcels within each class of real property in the county.
(4) Except as provided in subsection (b), all real property in each group of parcels shall be reassessed under the county's reassessment plan once during each four (4) year cycle.
(5) The reassessment of a group of parcels in a particular class of real property shall begin on July 1 of a year.
(6) The reassessment of parcels:
(A) must include a physical inspection of each parcel of real property in the group of parcels that is being reassessed; and
(B) shall be completed on or before March 1 of the year after the year in which the reassessment of the group of parcels begins.
(7) For real property included in a group of parcels that is reassessed, the reassessment is the basis for taxes payable in the year following the year in which the reassessment is to be completed.
(b) A county may submit a reassessment plan that provides for reassessing more than twenty-five percent (25%) of all parcels of real property in the county in a particular year. A plan may provide that all parcels are to be reassessed in one (1) year. However, a plan must cover a four (4) year period and provide that at least twenty-five percent (25%) of all parcels will be reassessed each year during the four (4) year period. Each group of parcels must contain approximately an equal percentage of the parcels within each class of real property in the county. All real property in each group of parcels shall be reassessed under the county's reassessment plan once during each reassessment cycle.
(c) The reassessment of the first group of parcels under a county's reassessment plan shall begin on July 1, 2011, and shall be completed on or before March 1, 2012.
(b) Subject to subsection (e), the system must be applied to adjust assessed values beginning with the 2006 assessment date and each year thereafter that is not a year in which a reassessment under the county's reassessment plan for the property becomes effective.
(c) The rules adopted under subsection (a) must include the
following characteristics in the system:
(1) Promote uniform and equal assessment of real property within
and across classifications.
(2) Require that assessing officials:
(A) reevaluate the factors that affect value;
(B) express the interactions of those factors mathematically;
(C) use mass appraisal techniques to estimate updated property
values within statistical measures of accuracy; and
(D) provide notice to taxpayers of an assessment increase that
results from the application of annual adjustments.
(3) Prescribe procedures that permit the application of the
adjustment percentages in an efficient manner by assessing
officials.
(d) The department of local government finance must review and
certify each annual adjustment determined under this section.
(e) In making the annual determination of the base rate to satisfy the
requirement for an annual adjustment under subsection (a), the
department of local government finance shall determine the base rate
using the methodology reflected in Table 2-18 of Book 1, Chapter 2 of
the department of local government finance's Real Property Assessment
Guidelines (as in effect on January 1, 2005), except that the department
shall adjust the methodology to use a six (6) year rolling average
instead of a four (4) year rolling average.
(f) For assessment dates after December 31, 2009, an adjustment in
the assessed value of real property under this section shall be based on
the estimated true tax value of the property on the assessment date that
is the basis for taxes payable on that real property.
(b) The petition for reassessment must be signed by
The signatures on the petition must be verified by the oath of one (1) or more of the signers.
(c) Upon receipt of a petition under subsection (a), the department of local government finance may order a reassessment under section 9 of this chapter or conduct a reassessment under section 31.5 of this chapter.
located within this state. If the department of local government finance
adopts a reassessment resolution and if either a township or a larger
area is one (1) or more groups of parcels under the county's
reassessment plan are involved, the department shall hold a hearing
concerning the necessity for the reassessment at the courthouse of the
county in which the property is located. The department of local
government finance shall give notice of the time and place of the
hearing in the manner provided in section 10 of this chapter. After the
hearing, or if the area involved is less than a township, only one (1)
group of parcels under the county's reassessment plan, after the
adoption of the resolution of the department of local government
finance, the department may order any reassessment it deems
necessary. The order shall specify the time within which the
reassessment must be completed and the date the reassessment will
become effective.
(1) royalties;
(2) overriding royalties;
(3) mineral rights; or
(4) working interest;
in any oil or gas located on or beneath the surface of land which lies within this state.
(b) Oil or gas interest is subject to assessment and taxation as real property. Notwithstanding section
(c) A piece of equipment is an appurtenance to land if it is incident to and necessary for the production of oil and gas from the land covered by the oil or gas interest. This equipment includes but is not limited to wells, pumping units, lines, treaters, separators, tanks, and secondary recovery facilities. These appurtenances are subject to assessment as real property. Notwithstanding section
who owns or operates the working interest in the oil or gas interest.
(b)
(c) The county assessor shall notify all township assessors in the county (if any) of the values.
(d) A petition for the review of the land values determined by a county assessor under this section may be filed with the department of local government finance not later than forty-five (45) days after the county assessor makes the determination of the
land values. The petition must be signed by at least the lesser of:
(1) one hundred (100) property owners in the county; or
(2) five percent (5%) of the property owners in the county.
(e) Upon receipt of a petition for review under subsection (d),
the department of local government finance:
(1) shall review the land values determined by the county
assessor; and
(2) after a public hearing, shall:
(A) approve;
(B) modify; or
(C) disapprove;
the land values.
(1) deputies;
(2) employees; and
(3) technical advisors who are:
(A) qualified to determine real property values;
(B) professional appraisers certified under 50 IAC 15; and
(C) employed either on a full-time or a part-time basis, subject to sections 18.5 and 19.5 of this chapter.
(b) The county council of each county shall appropriate the funds necessary for the employment of deputies, employees, or technical advisors employed under subsection (a) of this section.
(b) A decision by a county assessor to not employ a professional appraiser as a technical advisor in a
(c) As used in this chapter, "professional appraiser" means an individual or firm that is certified under IC 6-1.1-31.7.
(1) The appraisal of
(2) The appraisal of
(b) If a county assessor employs a professional appraiser or a professional appraisal firm to make real property appraisals
reported before December 1 of the year in which the general
reassessment begins.
(2) The appraisals for one-half (1/2) of the parcels shall be
reported before May 1 of the year following the year in which the
general reassessment begins.
(3) The appraisals for three-fourths (3/4) of the parcels shall be
reported before October 1 of the year following the year in which
the general reassessment begins.
(4) The appraisals for all the parcels shall be reported before
March 1 of the second year following the year in which the
general reassessment begins.
by the dates set forth in subsection (a). However, the reporting
requirements prescribed in this subsection do not apply if the contract
under which the professional appraiser, or appraisal firm, is employed
prescribes different reporting procedures.
(1) The procedure that a taxpayer must follow to appeal the assessment or reassessment.
(2) The forms that must be filed for an appeal of the assessment or reassessment.
(3) Notice that an appeal of the assessment or reassessment requires evidence relevant to the true tax value of the taxpayer's property as of the assessment date.
establish a property reassessment fund. The county treasurer shall
deposit all collections resulting from the property taxes that the county
levies for the county's property reassessment fund.
(b) With respect to the general reassessment of real property that is
to commence on July 1, 2009, the county council of each county shall,
for property taxes due in 2006, 2007, 2008, and 2009, levy in each year
against all the taxable property in the county an amount equal to
one-fourth (1/4) of the remainder of:
(1) the estimated costs referred to in section 28.5(a) of this
chapter; minus
(2) the amount levied under this section by the county council for
property taxes due in 2004 and 2005.
(c) With respect to a general reassessment of real property that is to
commence on July 1, 2014, and each fifth year thereafter, under a
county's reassessment plan after December 31, 2010, the county
council of each county shall, for property taxes due in the year that the
general reassessment is to commence and the four (4) years preceding
that each year, levy against all the taxable property in the county an
amount equal to one-fifth (1/5) of the estimated costs of the general
reassessment under section 28.5 of this chapter.
(d) The department of local government finance shall give to each
county council notice, before January 1 in a year, of the tax levies
required by this section for that year.
(e) The department of local government finance may raise or lower
the property tax levy under this section for a year if the department
determines it is appropriate because the estimated cost of:
(1) a general reassessment of a group of parcels under a
county's reassessment plan; or
(2) making annual adjustments under section 4.5 of this chapter;
has changed.
(f) The county assessor may petition the county fiscal body to
increase the levy under subsection (b) or (c) to pay for the costs of:
(1) a general reassessment of a group of parcels under a
county's reassessment plan;
(2) verification under 50 IAC 21-3-2 of sales disclosure forms
forwarded to the county assessor under IC 6-1.1-5.5-3; or
(3) processing annual adjustments under section 4.5 of this
chapter.
The assessor must document the needs and reasons for the increased
funding.
(g) If the county fiscal body denies a petition under subsection (f),
the county assessor may appeal to the department of local government
finance. The department of local government finance shall:
(1) hear the appeal; and
(2) determine whether the additional levy is necessary.
(1) the
(2) payments to assessing officials and hearing officers for county property tax assessment boards of appeals under IC 6-1.1-35.2;
(3) the development or updating of detailed soil survey data by the United States Department of Agriculture or its successor agency;
(4) the updating of plat books;
(5) payments for the salary of permanent staff or for the contractual services of temporary staff who are necessary to assist assessing officials;
(6) making annual adjustments under section 4.5 of this chapter; and
(7) the verification under 50 IAC 21-3-2 of sales disclosure forms forwarded to:
(A) the county assessor; or
(B) township assessors (if any);
under IC 6-1.1-5.5-3.
Money in a property tax reassessment fund may not be transferred or reassigned to any other fund and may not be used for any purposes other than those set forth in this section.
(b) All counties shall use modern, detailed soil maps in the
(c) The county treasurer of each county shall, in accordance with IC 5-13-9, invest any money accumulated in the property reassessment fund. Any interest received from investment of the money shall be paid into the property reassessment fund.
(d) An appropriation under this section must be approved by the fiscal body of the county after the review and recommendation of the county assessor. However, in a county with a township assessor in every township, the county assessor does not review an appropriation under this section, and only the fiscal body must approve an appropriation under this section.
(b) An order of the department of local government finance directing the reassessment of property shall contain an estimate of the cost of making the reassessment. The assessing officials in the county, the county property tax assessment board of appeals, and the county auditor may not exceed the amount so estimated by the department of local government finance.
(1) a
(2) work required to be performed by local officials under 50 IAC 21; and
(3) other property assessment activities in the county, as determined by the department.
The department of local government finance may inform township assessors (if any), county assessors, and the presidents of county councils in writing if its check reveals that
(b) The failure of the department of local government finance to inform local officials under subsection (a) shall not be construed as an indication by the department that:
(1) the
(2) work required to be performed by local officials under 50 IAC 21 is being properly conducted; or
(3) property assessments are being properly made.
(c) If the department of local government finance:
(1) determines under subsection (a) that a
(2) informs:
(A) the township assessor (if any) of each affected township;
(B) the county assessor; and
(C) the president of the county council;
in writing under subsection (a);
the department may order a state conducted assessment or reassessment under section 31.5 of this chapter to begin not less than sixty (60) days after the date of the notice under subdivision (2).
(d) If the department of local government finance:
(1) determines under subsection (a) that work required to be performed by local officials under 50 IAC 21 is not being properly conducted; and
(2) informs:
(A) the township assessor of each affected township (if any);
(B) the county assessor; and
(C) the president of the county council;
in writing under subsection (a);
the department may conduct the work or contract to have the work conducted to begin not less than sixty (60) days after the date of the notice under subdivision (2). If the department determines during the period between the date of the notice under subdivision (2) and the proposed date for beginning the work or having the work conducted that work required to be performed by local officials under 50 IAC 21
is being properly conducted, the department may rescind the order.
(e) If the department of local government finance contracts to have
work conducted under subsection (d), the department shall forward the
bill for the services to the county and the county shall pay the bill under
the same procedures that apply to county payments of bills for
assessment or reassessment services under section 31.5 of this chapter.
(f) A county council president who is informed by the department
of local government finance under subsection (a) shall provide the
information to the board of county commissioners. A board of county
commissioners that receives information under this subsection may
adopt an ordinance to do either or both of the following:
(1) Determine that:
(A) the information indicates that the county assessor has
failed to perform adequately the duties of county assessor; and
(B) by that failure the county assessor forfeits the office of
county assessor and is subject to removal from office by an
information filed under IC 34-17-2-1(b).
(2) Determine that:
(A) the information indicates that one (1) or more township
assessors in the county have failed to perform adequately the
duties of township assessor; and
(B) by that failure the township assessor or township assessors
forfeit the office of township assessor and are subject to
removal from office by an information filed under
IC 34-17-2-1(b).
(g) A city-county council that is informed by the department of local
government finance under subsection (a) may adopt an ordinance
making the determination or determinations referred to in subsection
(f).
(b) If the department makes a determination and informs local officials under section 31(c) of this chapter, the department may order a state conducted assessment or reassessment in the county subject to the time limitation in that subsection.
(c) If the department orders a state conducted assessment or reassessment in a county, the department shall assume the duties of the county assessor. Notwithstanding sections 15 and 17 of this chapter, a county assessor subject to an order issued under this section may not assess property or have property assessed for the assessment or
reassessment under a county's reassessment plan. Until the state
conducted assessment or reassessment is completed under this section,
the assessment or reassessment duties of the county assessor are
limited to providing the department or a contractor of the department
the support and information requested by the department or the
contractor.
(d) Before assuming the duties of a county assessor, the department
shall transmit a copy of the department's order requiring a state
conducted assessment or reassessment to the county assessor, the
county fiscal body, the county auditor, and the county treasurer. Notice
of the department's actions must be published one (1) time in a
newspaper of general circulation published in the county. The
department is not required to conduct a public hearing before taking
action under this section.
(e) A county assessor subject to an order issued under this section
shall, at the request of the department or the department's contractor,
make available and provide access to all:
(1) data;
(2) records;
(3) maps;
(4) parcel record cards;
(5) forms;
(6) computer software systems;
(7) computer hardware systems; and
(8) other information;
related to the assessment or reassessment of real property in the county.
The information described in this subsection must be provided at no
cost to the department or the contractor of the department. A failure to
provide information requested under this subsection constitutes a
failure to perform a duty related to an assessment or a general
reassessment under a county's reassessment plan and is subject to
IC 6-1.1-37-2.
(f) The department may enter into a contract with a professional
appraising firm to conduct an assessment or reassessment under this
section. If a county entered into a contract with a professional
appraising firm to conduct the county's assessment or reassessment
before the department orders a state conducted assessment or
reassessment in the county under this section, the contract:
(1) is as valid as if it had been entered into by the department; and
(2) shall be treated as the contract of the department.
(g) After receiving the report of assessed values from the appraisal
firm acting under a contract described in subsection (f), the department
shall give notice to the taxpayer and the county assessor, by mail, of the
amount of the assessment or reassessment. The notice of assessment or
reassessment:
(1) is subject to appeal by the taxpayer under section 31.7 of this
chapter; and
(2) must include a statement of the taxpayer's rights under section
31.7 of this chapter.
(h) The department shall forward a bill for services provided under
a contract described in subsection (f) to the auditor of the county in
which the state conducted reassessment occurs. The county shall pay
the bill under the procedures prescribed by subsection (i).
(i) A county subject to an order issued under this section shall pay
the cost of a contract described in subsection (f), without appropriation,
from the county property reassessment fund. A contractor may
periodically submit bills for partial payment of work performed under
the contract. Notwithstanding any other law, a contractor is entitled to
payment under this subsection for work performed under a contract if
the contractor:
(1) submits to the department a fully itemized, certified bill in the
form required by IC 5-11-10-1 for the costs of the work performed
under the contract;
(2) obtains from the department:
(A) approval of the form and amount of the bill; and
(B) a certification that the billed goods and services have been
received and comply with the contract; and
(3) files with the county auditor:
(A) a duplicate copy of the bill submitted to the department;
(B) proof of the department's approval of the form and amount
of the bill; and
(C) the department's certification that the billed goods and
services have been received and comply with the contract.
The department's approval and certification of a bill under subdivision
(2) shall be treated as conclusively resolving the merits of a contractor's
claim. Upon receipt of the documentation described in subdivision (3),
the county auditor shall immediately certify that the bill is true and
correct without further audit and submit the claim to the county
executive. The county executive shall allow the claim, in full, as
approved by the department, without further examination of the merits
of the claim in a regular or special session that is held not less than
three (3) days and not more than seven (7) days after the date the claim
is certified by the county fiscal officer if the procedures in IC 5-11-10-2
are used to approve the claim or the date the claim is placed on the
claim docket under IC 36-2-6-4 if the procedures in IC 36-2-6-4 are
used to approve the claim. Upon allowance of the claim by the county
executive, the county auditor shall immediately issue a warrant or
check for the full amount of the claim approved by the department.
Compliance with this subsection constitutes compliance with
IC 5-11-6-1, IC 5-11-10, and IC 36-2-6. The determination and
payment of a claim in compliance with this subsection is not subject to
remonstrance and appeal. IC 36-2-6-4(f) and IC 36-2-6-9 do not apply
to a claim submitted under this subsection. IC 5-11-10-1.6(d) applies
to a fiscal officer who pays a claim in compliance with this subsection.
(j) Notwithstanding IC 4-13-2, a period of seven (7) days is
permitted for each of the following to review and act under IC 4-13-2
on a contract of the department entered into under this section:
(1) The commissioner of the Indiana department of
administration.
(2) The director of the budget agency.
(3) The attorney general.
(k) If money in the county's property reassessment fund is
insufficient to pay for an assessment or reassessment conducted under
this section, the department may increase the tax rate and tax levy of
the county's property reassessment fund to pay the cost and expenses
related to the assessment or reassessment.
(l) The department or the contractor of the department shall use the
land values determined under section 13.6 of this chapter for a county
subject to an order issued under this section to the extent that the
department or the contractor finds that the land values reflect the true
tax value of land, as determined under this article and the rules of the
department. If the department or the contractor finds that the land
values determined for the county under section 13.6 of this chapter do
not reflect the true tax value of land, the department or the contractor
shall determine land values for the county that reflect the true tax value
of land, as determined under this article and the rules of the
department. Land values determined under this subsection shall be
used to the same extent as if the land values had been determined under
section 13.6 of this chapter. The department or the contractor of the
department shall notify the county's assessing officials of the land
values determined under this subsection.
(m) A contractor of the department may notify the department if:
(1) a county auditor fails to:
(A) certify the contractor's bill;
(B) publish the contractor's claim;
(C) submit the contractor's claim to the county executive; or
(D) issue a warrant or check for payment of the contractor's bill;
as required by subsection (i) at the county auditor's first legal opportunity to do so;
(2) a county executive fails to allow the contractor's claim as legally required by subsection (i) at the county executive's first legal opportunity to do so; or
(3) a person or an entity authorized to act on behalf of the county takes or fails to take an action, including failure to request an appropriation, and that action or failure to act delays or halts progress under this section for payment of the contractor's bill.
(n) The department, upon receiving notice under subsection (m) from a contractor of the department, shall:
(1) verify the accuracy of the contractor's assertion in the notice that:
(A) a failure occurred as described in subsection (m)(1) or (m)(2); or
(B) a person or an entity acted or failed to act as described in subsection (m)(3); and
(2) provide to the treasurer of state the department's approval under subsection (i)(2)(A) of the contractor's bill with respect to which the contractor gave notice under subsection (m).
(o) Upon receipt of the department's approval of a contractor's bill under subsection (n), the treasurer of state shall pay the contractor the amount of the bill approved by the department from money in the possession of the state that would otherwise be available for distribution to the county, including distributions of admissions taxes or wagering taxes.
(p) The treasurer of state shall withhold from the money that would be distributed under IC 4-33-12-6, IC 4-33-13-5, or any other law to a county described in a notice provided under subsection (m) the amount of a payment made by the treasurer of state to the contractor of the department under subsection (o). Money shall be withheld from any source payable to the county.
(q) Compliance with subsections (m) through (p) constitutes compliance with IC 5-11-10.
(r) IC 5-11-10-1.6(d) applies to the treasurer of state with respect to the payment made in compliance with subsections (m) through (p). This subsection and subsections (m) through (p) must be interpreted liberally so that the state shall, to the extent legally valid, ensure that the contractual obligations of a county subject to this section are paid. Nothing in this section shall be construed to create a debt of the state.
(s) The provisions of this section are severable as provided in IC 1-1-1-8(b).
(b) The following may not assess an industrial facility in a qualifying county:
(1) A county assessor.
(2) An assessing official.
(3) A county property tax assessment board of appeals.
(b) If the department determines to assess an industrial facility pursuant to a petition filed under section
(1) the increase in the assessed value resulting from the rehabilitation or redevelopment; multiplied by
(2) the percentage prescribed in the table set forth in subsection (d).
(b) The amount of the deduction determined under subsection (a) shall be adjusted in accordance with this subsection in the following circumstances:
(1) If a
(2) If an appeal of an assessment is approved that results in a reduction of the assessed value of the redeveloped or rehabilitated property, the amount of any deduction shall be adjusted to reflect the percentage decrease that resulted from the appeal.
The department of local government finance shall adopt rules under IC 4-22-2 to implement this subsection.
(c) Property owners who had an area designated an urban development area pursuant to an application filed prior to January 1, 1979, are only entitled to the deduction for the first through the fifth years as provided in subsection
(d) The percentage to be used in calculating the deduction under subsection (a) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 50%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 66%
3rd 33%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 17%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 95%
3rd 80%
4th 65%
5th 50%
6th 40%
7th 30%
8th 20% 9th 10% 10th 5%
(b) If the designating body requires information from the property owner for the designating body's use in deciding whether to designate an economic revitalization area, the property owner must provide the completed statement of benefits form to the designating body before the hearing required by section 2.5(c) of this chapter. Otherwise, the property owner must submit the completed statement of benefits form to the designating body before the occupation of the eligible vacant building for which the property owner desires to claim a deduction.
(c) The department of local government finance shall prescribe a form for the statement of benefits. The statement of benefits must include the following information:
(1) A description of the eligible vacant building that the property owner or a tenant of the property owner will occupy.
(2) An estimate of the number of individuals who will be employed or whose employment will be retained by the property owner or the tenant as a result of the occupation of the eligible vacant building, and an estimate of the annual salaries of those individuals.
(3) Information regarding efforts by the owner or a previous owner to sell, lease, or rent the eligible vacant building during the period the eligible vacant building was unoccupied.
(4) Information regarding the amount for which the eligible vacant building was offered for sale, lease, or rent by the owner or a previous owner during the period the eligible vacant building was unoccupied.
(d) With the approval of the designating body, the statement of benefits may be incorporated in a designation application. A statement of benefits is a public record that may be inspected and copied under IC 5-14-3.
(e) The designating body must review the statement of benefits required by subsection (a). The designating body shall determine whether an area should be designated an economic revitalization area or whether a deduction should be allowed, after the designating body has made the following findings:
(1) Whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed occupation of the eligible vacant building.
(2) Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed occupation of the eligible vacant building.
(3) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed occupation of the eligible vacant building.
(4) Whether the occupation of the eligible vacant building will increase the tax base and assist in the rehabilitation of the economic revitalization area.
(5) Whether the totality of benefits is sufficient to justify the deduction.
A designating body may not designate an area an economic revitalization area or approve a deduction under this section unless the findings required by this subsection are made in the affirmative.
(f) Except as otherwise provided in this section, the owner of an eligible vacant building located in an economic revitalization area is entitled to a deduction from the assessed value of the building if the property owner or a tenant of the property owner occupies the eligible vacant building and uses it for commercial or industrial purposes. The property owner is entitled to the deduction:
(1) for the first year in which the property owner or a tenant of the property owner occupies the eligible vacant building and uses it for commercial or industrial purposes; and
(2) for subsequent years determined under subsection (g).
(g) The designating body shall determine the number of years for which a property owner is entitled to a deduction under this section. However, subject to section 15 of this chapter, the deduction may not be allowed for more than two (2) years. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this chapter; or
(2) by a resolution adopted not more than sixty (60) days after the designating body receives a copy of the property owner's deduction application from the county auditor.
A certified copy of a resolution under subdivision (2) shall be sent to the county auditor, who shall make the deduction as provided in section 5.3 of this chapter. A determination concerning the number of years the
deduction is allowed that is made under subdivision (1) is final and
may not be changed by using the procedure under subdivision (2).
(h) Except as provided in section 2(i)(5) of this chapter and
subsection (k), and subject to section 15 of this chapter, the amount of
the deduction the property owner is entitled to receive under this
section for a particular year equals the product of:
(1) the assessed value of the building or part of the building that
is occupied by the property owner or a tenant of the property
owner; multiplied by
(2) the percentage set forth in the table in subsection (i).
(i) The percentage to be used in calculating the deduction under
subsection (h) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st
100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
(j) The amount of the deduction determined under subsection (h)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If a general reassessment of real property under a county's
reassessment plan occurs within the period of the deduction, the
amount of the assessed value determined under subsection (h)(1)
shall be adjusted to reflect the percentage increase or decrease in
assessed valuation that resulted from the general reassessment.
(2) If an appeal of an assessment is approved and results in a
reduction of the assessed value of the property, the amount of a
deduction under this section shall be adjusted to reflect the
percentage decrease that resulted from the appeal.
(k) The maximum amount of a deduction under this section may not
exceed the lesser of:
(1) the annual amount for which the eligible vacant building was
offered for lease or rent by the owner or a previous owner during
the period the eligible vacant building was unoccupied; or
(2) an amount, as determined by the designating body in its
discretion, that is equal to the annual amount for which similar
buildings in the county or contiguous counties were leased or
rented or offered for lease or rent during the period the eligible
vacant building was unoccupied.
(l) The department of local government finance may adopt rules
under IC 4-22-2 to implement this section.
(b) This subsection applies only to a development, redevelopment, or rehabilitation that is first assessed after March 1, 2005, and before March 2, 2007. Except as provided in subsection (h) and sections 4, 5, and 8 of this chapter, an owner of real property that:
(1) develops, redevelops, or rehabilitates the real property; and
(2) creates or retains employment from the development, redevelopment, or rehabilitation;
is entitled to a deduction from the assessed value of the real property.
(c) Subject to section 14 of this chapter, the deduction under this section is first available in the year in which the increase in assessed value resulting from the development, redevelopment, or rehabilitation occurs and continues for the following two (2) years. The amount of the deduction that a property owner may receive with respect to real property located in a county for a particular year equals the lesser of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the development, rehabilitation, or redevelopment; multiplied by
(B) the percentage from the following table:
YEAR OF DEDUCTION PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) A property owner that qualifies for the deduction under this section must file a notice to claim the deduction in the manner prescribed by the department of local government finance under rules adopted by the department of local government finance under IC 4-22-2 to implement this chapter. The township assessor, or the county assessor if there is no township assessor for the township, shall:
(1) inform the county auditor of the real property eligible for the deduction as contained in the notice filed by the taxpayer under this subsection; and
(2) inform the county auditor of the deduction amount.
(e) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals of all deductions approved;
under this section.
(f) The amount of the deduction determined under subsection (c)(2) is adjusted to reflect the percentage increase or decrease in assessed valuation that results from:
(1) a
(2) an annual adjustment under IC 6-1.1-4-4.5.
(g) If an appeal of an assessment is approved that results in a reduction of the assessed value of the real property, the amount of the deduction under this section is adjusted to reflect the percentage decrease that results from the appeal.
(h) The deduction under this section does not apply to a facility listed in IC 6-1.1-12.1-3(e).
(1) two (2) newspapers which represent different political parties and which are published in the county; or
(2) one (1) newspaper only, if two (2) newspapers which
represent different political parties are not published in the
county.
(b) If the Indiana board conducts a site inspection of the property as part of its review of the petition, the Indiana board shall give notice to all parties of the date and time of the site inspection. The Indiana board is not required to assess the property in question. The Indiana board shall give notice of the date fixed for the hearing, by mail, to the taxpayer and to the county assessor. The Indiana board shall give these notices at least thirty (30) days before the day fixed for the hearing unless the parties agree to a shorter period. With respect to a petition for review filed by a county assessor, the county board that made the determination under review under this section may file an amicus curiae brief in the review proceeding under this section. The expenses incurred by the county board in filing the amicus curiae brief shall be paid from the property reassessment fund under IC 6-1.1-4-27.5. The executive of a taxing unit may file an amicus curiae brief in the review proceeding under this section if the property whose assessment or exemption is under appeal is subject to assessment by that taxing unit.
(c) If a petition for review does not comply with the Indiana board's instructions for completing the form prescribed under section 3 of this chapter, the Indiana board shall return the petition to the petitioner and include a notice describing the defect in the petition. The petitioner then has thirty (30) days from the date on the notice to cure the defect and file a corrected petition. The Indiana board shall deny a corrected petition for review if it does not substantially comply with the Indiana board's instructions for completing the form prescribed under section 3 of this chapter.
(d) After the hearing, the Indiana board shall give the taxpayer, the county assessor, and any entity that filed an amicus curiae brief:
(1) notice, by mail, of its final determination; and
(2) for parties entitled to appeal the final determination, notice of the procedures they must follow in order to obtain court review under section 5 of this chapter.
(e) Except as provided in subsection (f), the Indiana board shall conduct a hearing not later than nine (9) months after a petition in
proper form is filed with the Indiana board, excluding any time due to
a delay reasonably caused by the petitioner.
(f) With respect to an appeal of a real property assessment that takes
effect on the assessment date on which a general reassessment of real
property under a county's reassessment plan takes effect under
IC 6-1.1-4-4, IC 6-1.1-4-4.2, the Indiana board shall conduct a hearing
not later than one (1) year after a petition in proper form is filed with
the Indiana board, excluding any time due to a delay reasonably caused
by the petitioner.
(g) Except as provided in subsection (h), the Indiana board shall
make a determination not later than the later of:
(1) ninety (90) days after the hearing; or
(2) the date set in an extension order issued by the Indiana board.
(h) With respect to an appeal of a real property assessment that
takes effect on the assessment date on which a general reassessment of
real property under a county's reassessment plan takes effect under
IC 6-1.1-4-4, IC 6-1.1-4-4.2, the Indiana board shall make a
determination not later than the later of:
(1) one hundred eighty (180) days after the hearing; or
(2) the date set in an extension order issued by the Indiana board.
(i) The Indiana board may not extend the final determination date
under subsection (g) or (h) by more than one hundred eighty (180)
days. If the Indiana board fails to make a final determination within the
time allowed by this section, the entity that initiated the petition may:
(1) take no action and wait for the Indiana board to make a final
determination; or
(2) petition for judicial review under section 5 of this chapter.
(j) A final determination must include separately stated findings of
fact for all aspects of the determination. Findings of ultimate fact must
be accompanied by a concise statement of the underlying basic facts of
record to support the findings. Findings must be based exclusively
upon the evidence on the record in the proceeding and on matters
officially noticed in the proceeding. Findings must be based upon a
preponderance of the evidence.
(k) The Indiana board may limit the scope of the appeal to the issues
raised in the petition and the evaluation of the evidence presented to
the county board in support of those issues only if all parties
participating in the hearing required under subsection (a) agree to the
limitation. A party participating in the hearing required under
subsection (a) is entitled to introduce evidence that is otherwise proper
and admissible without regard to whether that evidence has previously
been introduced at a hearing before the county board.
(l) The Indiana board may require the parties to the appeal:
(1) to file not more than five (5) business days before the date of the hearing required under subsection (a) documentary evidence or summaries of statements of testimonial evidence; and
(2) to file not more than fifteen (15) business days before the date of the hearing required under subsection (a) lists of witnesses and exhibits to be introduced at the hearing.
(m) A party to a proceeding before the Indiana board shall provide to all other parties to the proceeding the information described in subsection (l) if the other party requests the information in writing at least ten (10) days before the deadline for filing of the information under subsection (l).
(n) The Indiana board may base its final determination on a stipulation between the respondent and the petitioner. If the final determination is based on a stipulated assessed valuation of tangible property, the Indiana board may order the placement of a notation on the permanent assessment record of the tangible property that the assessed valuation was determined by stipulation. The Indiana board may:
(1) order that a final determination under this subsection has no precedential value; or
(2) specify a limited precedential value of a final determination under this subsection.
(1) information concerning the assessed valuation in the political subdivision for the next calendar year;
(2) an estimate of the taxes to be distributed to the political subdivision during the last six (6) months of the current calendar year;
(3) the current assessed valuation as shown on the abstract of charges;
(4) the average growth in assessed valuation in the political subdivision over the preceding three (3) budget years;
(5) the amount of the political subdivision's assessed valuation reduction determined under section 0.5(d) of this chapter;
(6) for counties with taxing units that cross into or intersect with other counties, the assessed valuation as shown on the most current abstract of property; and
(7) any other information at the disposal of the county auditor that might affect the assessed value used in the budget adoption process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current calendar year, less any taxes previously distributed for the calendar year; and
(2) any other information at the disposal of the county auditor which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the county auditor's statement to the proper officers of the political subdivision.
(d) Subject to subsection (e) and except as provided in subsection (f), after the county auditor sends a certified statement under subsection (a) or an amended certified statement under this subsection with respect to a political subdivision and before the department of local government finance certifies its action with respect to the political subdivision under section 16(f) of this chapter, the county auditor may amend the information concerning assessed valuation included in the earlier certified statement. The county auditor shall send a certified statement amended under this subsection, under the seal of the board of county commissioners, to:
(1) the fiscal officer of each political subdivision affected by the amendment; and
(2) the department of local government finance.
(e) Except as provided in subsection (g), before the county auditor makes an amendment under subsection (d), the county auditor must provide an opportunity for public comment on the proposed amendment at a public hearing. The county auditor must give notice of the hearing under IC 5-3-1. If the county auditor makes the amendment as a result of information provided to the county auditor by an assessor, the county auditor shall give notice of the public hearing to the assessor.
(f) Subsection (d) does not apply to an adjustment of assessed valuation under IC 36-7-15.1-26.9(d) (repealed).
(g) The county auditor is not required to hold a public hearing under subsection (e) if:
(1) the amendment under subsection (d) is proposed to correct a mathematical error made in the determination of the amount of assessed valuation included in the earlier certified statement;
(2) the amendment under subsection (d) is proposed to add to the amount of assessed valuation included in the earlier certified statement assessed valuation of omitted property discovered after the county auditor sent the earlier certified statement; or
(3) the county auditor determines that the amendment under subsection (d) will not result in an increase in the tax rate or tax rates of the political subdivision.
(1) property tax rate or rates; or
(2) special benefits tax rate or rates;
referred to in the statutes listed in subsection (d).
(b) The maximum rate for taxes first due and payable after 2003 is the maximum rate that would have been determined under subsection (e) for taxes first due and payable in 2003 if subsection (e) had applied for taxes first due and payable in 2003.
(c) The maximum rate must be adjusted each year to account for the change in assessed value of real property that results from:
(1) an annual adjustment of the assessed value of real property under IC 6-1.1-4-4.5; or
(2) a
(d) The statutes to which subsection (a) refers are:
(1) IC 8-10-5-17;
(2) IC 8-22-3-11;
(3) IC 8-22-3-25;
(4) IC 12-29-1-1;
(5) IC 12-29-1-2;
(6) IC 12-29-1-3;
(7) IC 12-29-3-6;
(8) IC 13-21-3-12;
(9) IC 13-21-3-15;
(10) IC 14-27-6-30;
(11) IC 14-33-7-3;
(12) IC 14-33-21-5;
(13) IC 15-14-7-4;
(14) IC 15-14-9-1;
(15) IC 15-14-9-2;
(16) IC 16-20-2-18;
(17) IC 16-20-4-27;
(18) IC 16-20-7-2;
(19) IC 16-22-14;
(20) IC 16-23-1-29;
(21) IC 16-23-3-6;
(22) IC 16-23-4-2;
(23) IC 16-23-5-6;
(24) IC 16-23-7-2;
(25) IC 16-23-8-2;
(26) IC 16-23-9-2;
(27) IC 16-41-15-5;
(28) IC 16-41-33-4;
(29) IC 20-46-2-3 (before its repeal on January 1, 2009);
(30) IC 20-46-6-5;
(31) IC 20-49-2-10;
(32) IC 36-1-19-1;
(33) IC 23-14-66-2;
(34) IC 23-14-67-3;
(35) IC 36-7-13-4;
(36) IC 36-7-14-28;
(37) IC 36-7-15.1-16;
(38) IC 36-8-19-8.5;
(39) IC 36-9-6.1-2;
(40) IC 36-9-17.5-4;
(41) IC 36-9-27-73;
(42) IC 36-9-29-31;
(43) IC 36-9-29.1-15;
(44) IC 36-10-6-2;
(45) IC 36-10-7-7;
(46) IC 36-10-7-8;
(47) IC 36-10-7.5-19;
(48) IC 36-10-13-5;
(49) IC 36-10-13-7;
(50) IC 36-10-14-4;
(51) IC 36-12-7-7;
(52) IC 36-12-7-8;
(53) IC 36-12-12-10; and
(54) any statute enacted after December 31, 2003, that:
(A) establishes a maximum rate for any part of the:
(i) property taxes; or
(ii) special benefits taxes;
imposed by a political subdivision; and
(B) does not exempt the maximum rate from the adjustment under this section.
(e) The new maximum rate under a statute listed in subsection (d) is the tax rate determined under STEP SEVEN of the following STEPS:
STEP ONE: Determine the maximum rate for the political subdivision levying a property tax or special benefits tax under the statute for the year preceding the year in which the annual adjustment or
STEP TWO: Determine the actual percentage increase (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value (before the adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property from the year preceding the year the annual adjustment or
STEP THREE: Determine the three (3) calendar years that immediately precede the ensuing calendar year.
STEP FOUR: Compute separately, for each of the calendar years determined in STEP THREE, the actual percentage increase (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value (before the adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax rate divided by the sum of one (1) plus the STEP SIX percentage increase.
(f) The department of local government finance shall compute the maximum rate allowed under subsection (e) and provide the rate to each political subdivision with authority to levy a tax under a statute listed in subsection (d).
JANUARY 1, 2011]: Sec. 13. (a) The maximum property tax rate
levied under IC 20-46-6 by each school corporation for the school
corporation's capital projects fund must be adjusted each year to
account for the change in assessed value of real property that results
from:
(1) an annual adjustment of the assessed value of real property
under IC 6-1.1-4-4.5; or
(2) a general reassessment of real property under a county's
reassessment plan under IC 6-1.1-4-4. IC 6-1.1-4-4.2.
(b) The new maximum rate under this section is the tax rate
determined under STEP SEVEN of the following formula:
STEP ONE: Determine the maximum rate for the school
corporation for the year preceding the year in which the annual
adjustment or general reassessment under a county's
reassessment plan takes effect.
STEP TWO: Determine the actual percentage increase (rounded
to the nearest one-hundredth percent (0.01%)) in the assessed
value (before the adjustment, if any, under IC 6-1.1-4-4.5) of the
taxable property from the year preceding the year the annual
adjustment or general reassessment under a county's
reassessment plan takes effect to the year that the annual
adjustment or general reassessment is effective.
STEP THREE: Determine the three (3) calendar years that
immediately precede the ensuing calendar year. and in which a
statewide general reassessment of real property does not first
become effective.
STEP FOUR: Compute separately, for each of the calendar years
determined in STEP THREE, the actual percentage increase
(rounded to the nearest one-hundredth percent (0.01%)) in the
assessed value (before the adjustment, if any, under
IC 6-1.1-4-4.5) of the taxable property from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax rate
divided by the sum of one (1) plus the STEP SIX percentage
increase.
(c) The department of local government finance shall compute the
maximum rate allowed under subsection (b) and provide the rate to
each school corporation.
"Ad valorem property tax levy for an ensuing calendar year" means the total property taxes imposed by a civil taxing unit for current property taxes collectible in that ensuing calendar year.
"Adopting county" means any county in which the county adjusted gross income tax is in effect.
"Civil taxing unit" means any taxing unit except a school corporation.
"Maximum permissible ad valorem property tax levy for the preceding calendar year" means the greater of:
(1) the remainder of:
(A) the civil taxing unit's maximum permissible ad valorem property tax levy for the calendar year immediately preceding the ensuing calendar year, as that levy was determined under section 3 of this chapter; minus
(B) one-half (1/2) of the remainder of:
(i) the civil taxing unit's maximum permissible ad valorem property tax levy referred to in clause (A); minus
(ii) the civil taxing unit's ad valorem property tax levy for the calendar year immediately preceding the ensuing calendar year referred to in subdivision (2); or
(2) the civil taxing unit's ad valorem property tax levy for the calendar year immediately preceding the ensuing calendar year, as that levy was determined by the department of local government finance in fixing the civil taxing unit's budget, levy, and rate for that preceding calendar year under IC 6-1.1-17, and after eliminating the effects of temporary excessive levy appeals and temporary adjustments made to the working maximum levy for the calendar year immediately preceding the ensuing calendar year, as determined by the department of local government finance.
"Taxable property" means all tangible property that is subject to the tax imposed by this article and is not exempt from the tax under IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this chapter, the term "taxable property" is further defined in section 6 of this chapter.
"Unadjusted assessed value" means the assessed value of a civil taxing unit as determined by local assessing officials and the department of local government finance in a particular calendar year
before the application of an annual adjustment under IC 6-1.1-4-4.5 for
that particular calendar year or any calendar year since the last general
reassessment under a county's reassessment plan preceding the
particular calendar year.
(1) the amount of ad valorem property taxes that would be first due and payable to the city, town, or county during the ensuing calendar year if the taxing unit imposed the maximum permissible property tax rate per one hundred dollars ($100) of assessed valuation that the civil taxing unit may impose for the particular calendar year under the authority of IC 36-9-14.5 (in the case of a county) or IC 36-9-15.5 (in the case of a city or town); or
(2) the excess, if any, of:
(A) the property taxes imposed by the city, town, or county under the authority of:
IC 3-11-6-9;
IC 8-16-3;
IC 8-16-3.1;
IC 8-22-3-25;
IC 14-27-6-48;
IC 14-33-9-3;
IC 16-22-8-41;
IC 16-22-5-2 through IC 16-22-5-15;
IC 16-23-1-40;
IC 36-8-14;
IC 36-9-4-48;
IC 36-9-14;
IC 36-9-14.5;
IC 36-9-15;
IC 36-9-15.5;
IC 36-9-16;
IC 36-9-16.5;
IC 36-9-17;
IC 36-9-26;
IC 36-9-27-100;
IC 36-10-3-21; or
IC 36-10-4-36;
that are first due and payable during the ensuing calendar year; over
(B) the property taxes imposed by the city, town, or county under the authority of the citations listed in clause (A) that were first due and payable during calendar year 1984.
(b) The maximum property tax rate levied under the statutes listed in subsection (a) must be adjusted each year to account for the change in assessed value of real property that results from:
(1) an annual adjustment of the assessed value of real property under IC 6-1.1-4-4.5; or
(2) a
(c) The new maximum rate under a statute listed in subsection (a) is the tax rate determined under STEP SEVEN of the following formula:
STEP ONE: Determine the maximum rate for the political subdivision levying a property tax under the statute for the year preceding the year in which the annual adjustment or
STEP TWO: Determine the actual percentage increase (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value (before the adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property from the year preceding the year the annual adjustment or
STEP THREE: Determine the three (3) calendar years that immediately precede the ensuing calendar year.
STEP FOUR: Compute separately, for each of the calendar years determined in STEP THREE, the actual percentage increase (rounded to the nearest one-hundredth percent (0.01%)) in the assessed value (before the adjustment, if any, under IC 6-1.1-4-4.5) of the taxable property from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax rate divided by the sum of one (1) plus the STEP SIX percentage increase.
(d) The department of local government finance shall compute the maximum rate allowed under subsection (c) and provide the rate to each political subdivision with authority to levy a tax under a statute listed in subsection (a).
(1) community mental health centers under:
(A) IC 12-29-2-1.2, for only those civil taxing units that authorized financial assistance under IC 12-29-1 before 2002 for a community mental health center as long as the tax levy under this section does not exceed the levy authorized in 2002;
(B) IC 12-29-2-2 through IC 12-29-2-5; and
(C) IC 12-29-2-13; or
(2) community mental retardation and other developmental disabilities centers under IC 12-29-1-1;
to the extent that those property taxes are attributable to any increase in the assessed value of the civil taxing unit's taxable property caused by a general reassessment of real property or reassessment of real property under a county's reassessment plan that took effect after February 28, 1979.
(b) For purposes of computing the ad valorem property tax levy limits imposed on a civil taxing unit by section 3 of this chapter, the civil taxing unit's ad valorem property tax levy for a particular calendar year does not include that part of the levy described in subsection (a).
(c) This subsection applies to property taxes first due and payable after December 31, 2008. Notwithstanding subsections (a) and (b) or any other law, any property taxes imposed by a civil taxing unit that are exempted by this section from the ad valorem property tax levy limits imposed by section 3 of this chapter may not increase annually by a percentage greater than the result of:
(1) the assessed value growth quotient determined under section 2 of this chapter; minus
(2) one (1).
(d) For a county that:
(1) did not impose an ad valorem property tax levy in 2008 for the
county general fund to provide financial assistance under
IC 12-29-1 (community mental retardation and other
developmental disabilities center) or IC 12-29-2 (community
mental health center); and
(2) determines for 2009 or a later calendar year to impose a levy
as described in subdivision (1);
the ad valorem property tax levy limits imposed under section 3 of this
chapter do not apply to the part of the county's general fund levy that
is used in the first calendar year for which a determination is made
under subdivision (2) to provide financial assistance under IC 12-29-1
or IC 12-29-2. The department of local government finance shall
review a county's proposed budget that is submitted under IC 12-29-1-1
or IC 12-29-2-1.2 and make a final determination of the amount to
which the levy limits do not apply under this subsection for the first
calendar year for which a determination is made under subdivision (2).
(e) The ad valorem property tax levy limits imposed under section
3 of this chapter do not apply to the county's general fund levy in the
amount determined by the department of local government finance
under subsection (d) in each calendar year following the calendar year
for which the determination under subsection (b) is made.
(1) Permission to the civil taxing unit to increase its levy in excess of the limitations established under section 3 of this chapter, if in the judgment of the department the increase is reasonably necessary due to increased costs of the civil taxing unit resulting from annexation, consolidation, or other extensions of governmental services by the civil taxing unit to additional geographic areas or persons. With respect to annexation, consolidation, or other extensions of governmental services in a calendar year, if those increased costs are incurred by the civil taxing unit in that calendar year and more than one (1) immediately succeeding calendar year, the unit may appeal under section 12 of this chapter for permission to increase its levy under this subdivision based on those increased costs in any of the following:
(A) The first calendar year in which those costs are incurred.
(B) One (1) or more of the immediately succeeding four (4)
calendar years.
(2) A levy increase may not be granted under this subdivision for
property taxes first due and payable after December 31, 2008.
Permission to the civil taxing unit to increase its levy in excess of
the limitations established under section 3 of this chapter, if the
local government tax control board finds that the civil taxing unit
needs the increase to meet the civil taxing unit's share of the costs
of operating a court established by statute enacted after December
31, 1973. Before recommending such an increase, the local
government tax control board shall consider all other revenues
available to the civil taxing unit that could be applied for that
purpose. The maximum aggregate levy increases that the local
government tax control board may recommend for a particular
court equals the civil taxing unit's estimate of the unit's share of
the costs of operating a court for the first full calendar year in
which it is in existence. For purposes of this subdivision, costs of
operating a court include:
(A) the cost of personal services (including fringe benefits);
(B) the cost of supplies; and
(C) any other cost directly related to the operation of the court.
(3) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if the
department finds that the quotient determined under STEP SIX of
the following formula is equal to or greater than one and
two-hundredths (1.02):
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year. and in which
a statewide general reassessment of real property or the initial
annual adjustment of the assessed value of real property under
IC 6-1.1-4-4.5 does not first become effective.
STEP TWO: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the civil taxing
unit's total assessed value of all taxable property and:
(i) for a particular calendar year before 2007, the total
assessed value of property tax deductions in the unit under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular calendar
year; or
(ii) for a particular calendar year after 2006, the total
assessed value of property tax deductions that applied in the
unit under IC 6-1.1-12-42 in 2006 plus for a particular
calendar year after 2009, the total assessed value of property
tax deductions that applied in the unit under
IC 6-1.1-12-37.5 in 2008;
divided by the sum determined under this STEP for the
calendar year immediately preceding the particular calendar
year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties and:
(i) for a particular calendar year before 2007, the total
assessed value of property tax deductions in all counties
under IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular
calendar year; or
(ii) for a particular calendar year after 2006, the total
assessed value of property tax deductions that applied in all
counties under IC 6-1.1-12-42 in 2006 plus for a particular
calendar year after 2009, the total assessed value of property
tax deductions that applied in the unit under
IC 6-1.1-12-37.5 in 2008;
divided by the sum determined under this STEP for the
calendar year immediately preceding the particular calendar
year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 of this chapter based on the
assessed value growth quotient determined under section 2 of this
chapter.
(4) A levy increase may not be granted under this subdivision for
property taxes first due and payable after December 31, 2008.
Permission to the civil taxing unit to increase its levy in excess of
the limitations established under section 3 of this chapter, if the
local government tax control board finds that the civil taxing unit
needs the increase to pay the costs of furnishing fire protection for
the civil taxing unit through a volunteer fire department. For
purposes of determining a township's need for an increased levy,
the local government tax control board shall not consider the
amount of money borrowed under IC 36-6-6-14 during the
immediately preceding calendar year. However, any increase in
the amount of the civil taxing unit's levy recommended by the
local government tax control board under this subdivision for the
ensuing calendar year may not exceed the lesser of:
(A) ten thousand dollars ($10,000); or
(B) twenty percent (20%) of:
(i) the amount authorized for operating expenses of a
volunteer fire department in the budget of the civil taxing
unit for the immediately preceding calendar year; plus
(ii) the amount of any additional appropriations authorized
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department
under this chapter; minus
(iii) the amount of money borrowed under IC 36-6-6-14
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department.
(5) A levy increase may not be granted under this subdivision for
property taxes first due and payable after December 31, 2008.
Permission to a civil taxing unit to increase its levy in excess of
the limitations established under section 3 of this chapter in order
to raise revenues for pension payments and contributions the civil
taxing unit is required to make under IC 36-8. The maximum
increase in a civil taxing unit's levy that may be recommended
under this subdivision for an ensuing calendar year equals the
amount, if any, by which the pension payments and contributions
the civil taxing unit is required to make under IC 36-8 during the
ensuing calendar year exceeds the product of one and one-tenth
(1.1) multiplied by the pension payments and contributions made
by the civil taxing unit under IC 36-8 during the calendar year that
immediately precedes the ensuing calendar year. For purposes of
this subdivision, "pension payments and contributions made by a
civil taxing unit" does not include that part of the payments or
contributions that are funded by distributions made to a civil
taxing unit by the state.
(6) A levy increase may not be granted under this subdivision for
property taxes first due and payable after December 31, 2008.
Permission to increase its levy in excess of the limitations
established under section 3 of this chapter if the local government
tax control board finds that:
(A) the township's township assistance ad valorem property
tax rate is less than one and sixty-seven hundredths cents
($0.0167) per one hundred dollars ($100) of assessed
valuation; and
(B) the township needs the increase to meet the costs of
providing township assistance under IC 12-20 and IC 12-30-4.
The maximum increase that the board may recommend for a
township is the levy that would result from an increase in the
township's township assistance ad valorem property tax rate of
one and sixty-seven hundredths cents ($0.0167) per one hundred
dollars ($100) of assessed valuation minus the township's ad
valorem property tax rate per one hundred dollars ($100) of
assessed valuation before the increase.
(7) A levy increase may not be granted under this subdivision for
property taxes first due and payable after December 31, 2008.
Permission to a civil taxing unit to increase its levy in excess of
the limitations established under section 3 of this chapter if:
(A) the increase has been approved by the legislative body of
the municipality with the largest population where the civil
taxing unit provides public transportation services; and
(B) the local government tax control board finds that the civil
taxing unit needs the increase to provide adequate public
transportation services.
The local government tax control board shall consider tax rates
and levies in civil taxing units of comparable population, and the
effect (if any) of a loss of federal or other funds to the civil taxing
unit that might have been used for public transportation purposes.
However, the increase that the board may recommend under this
subdivision for a civil taxing unit may not exceed the revenue that
would be raised by the civil taxing unit based on a property tax
rate of one cent ($0.01) per one hundred dollars ($100) of
assessed valuation.
(8) A levy increase may not be granted under this subdivision for
property taxes first due and payable after December 31, 2008.
Permission to a civil taxing unit to increase the unit's levy in
excess of the limitations established under section 3 of this
chapter if the local government tax control board finds that:
(A) the civil taxing unit is:
(i) a county having a population of more than one hundred
forty-eight thousand (148,000) but less than one hundred
seventy thousand (170,000);
(ii) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand (59,000);
(iii) a city having a population of more than twenty-eight thousand seven hundred (28,700) but less than twenty-nine thousand (29,000);
(iv) a city having a population of more than fifteen thousand four hundred (15,400) but less than sixteen thousand six hundred (16,600); or
(v) a city having a population of more than seven thousand (7,000) but less than seven thousand three hundred (7,300); and
(B) the increase is necessary to provide funding to undertake removal (as defined in IC 13-11-2-187) and remedial action (as defined in IC 13-11-2-185) relating to hazardous substances (as defined in IC 13-11-2-98) in solid waste disposal facilities or industrial sites in the civil taxing unit that have become a menace to the public health and welfare.
The maximum increase that the local government tax control board may recommend for such a civil taxing unit is the levy that would result from a property tax rate of six and sixty-seven hundredths cents ($0.0667) for each one hundred dollars ($100) of assessed valuation. For purposes of computing the ad valorem property tax levy limit imposed on a civil taxing unit under section 3 of this chapter, the civil taxing unit's ad valorem property tax levy for a particular year does not include that part of the levy imposed under this subdivision. In addition, a property tax increase permitted under this subdivision may be imposed for only two (2) calendar years.
(9) A levy increase may not be granted under this subdivision for property taxes first due and payable after December 31, 2008. Permission for a county:
(A) having a population of more than eighty thousand (80,000) but less than ninety thousand (90,000) to increase the county's levy in excess of the limitations established under section 3 of this chapter, if the local government tax control board finds that the county needs the increase to meet the county's share of the costs of operating a jail or juvenile detention center, including expansion of the facility, if the jail or juvenile detention center is opened after December 31, 1991;
(B) that operates a county jail or juvenile detention center that is subject to an order that:
(i) was issued by a federal district court; and
(ii) has not been terminated;
(C) that operates a county jail that fails to meet:
(i) American Correctional Association Jail Construction Standards; and
(ii) Indiana jail operation standards adopted by the department of correction; or
(D) that operates a juvenile detention center that fails to meet standards equivalent to the standards described in clause (C) for the operation of juvenile detention centers.
Before recommending an increase, the local government tax control board shall consider all other revenues available to the county that could be applied for that purpose. An appeal for operating funds for a jail or a juvenile detention center shall be considered individually, if a jail and juvenile detention center are both opened in one (1) county. The maximum aggregate levy increases that the local government tax control board may recommend for a county equals the county's share of the costs of operating the jail or a juvenile detention center for the first full calendar year in which the jail or juvenile detention center is in operation.
(10) A levy increase may not be granted under this subdivision for property taxes first due and payable after December 31, 2008. Permission for a township to increase its levy in excess of the limitations established under section 3 of this chapter, if the local government tax control board finds that the township needs the increase so that the property tax rate to pay the costs of furnishing fire protection for a township, or a portion of a township, enables the township to pay a fair and reasonable amount under a contract with the municipality that is furnishing the fire protection. However, for the first time an appeal is granted the resulting rate increase may not exceed fifty percent (50%) of the difference between the rate imposed for fire protection within the municipality that is providing the fire protection to the township and the township's rate. A township is required to appeal a second time for an increase under this subdivision if the township wants to further increase its rate. However, a township's rate may be increased to equal but may not exceed the rate that is used by the municipality. More than one (1) township served by the same municipality may use this appeal.
(11) A levy increase may not be granted under this subdivision for property taxes first due and payable after December 31, 2008. Permission for a township to increase its levy in excess of the limitations established under section 3 of this chapter, if the local government tax control board finds that the township has been
required, for the three (3) consecutive years preceding the year for
which the appeal under this subdivision is to become effective, to
borrow funds under IC 36-6-6-14 to furnish fire protection for the
township or a part of the township. However, the maximum
increase in a township's levy that may be allowed under this
subdivision is the least of the amounts borrowed under
IC 36-6-6-14 during the preceding three (3) calendar years. A
township may elect to phase in an approved increase in its levy
under this subdivision over a period not to exceed three (3) years.
A particular township may appeal to increase its levy under this
section not more frequently than every fourth calendar year.
(12) Permission to a city having a population of more than
twenty-nine thousand (29,000) but less than thirty-one thousand
(31,000) to increase its levy in excess of the limitations
established under section 3 of this chapter if:
(A) an appeal was granted to the city under this section to
reallocate property tax replacement credits under IC 6-3.5-1.1
in 1998, 1999, and 2000; and
(B) the increase has been approved by the legislative body of
the city, and the legislative body of the city has by resolution
determined that the increase is necessary to pay normal
operating expenses.
The maximum amount of the increase is equal to the amount of
property tax replacement credits under IC 6-3.5-1.1 that the city
petitioned under this section to have reallocated in 2001 for a
purpose other than property tax relief.
(13) A levy increase may be granted under this subdivision only
for property taxes first due and payable after December 31, 2008.
Permission to a civil taxing unit to increase its levy in excess of
the limitations established under section 3 of this chapter if the
civil taxing unit cannot carry out its governmental functions for
an ensuing calendar year under the levy limitations imposed by
section 3 of this chapter due to a natural disaster, an accident, or
another unanticipated emergency
(b)
IC 6-1.1-4-4 or notices of assessment under IC 6-1.1-4-4.5 for an
assessment date in a calendar year are given to the taxpayers in the
county after March 26 of the immediately succeeding calendar year, the
property taxes that would otherwise be due under subsection (a) on
May 10 of the immediately succeeding calendar year are The first
installment is due on the later of:
(1) May 10 of the immediately succeeding calendar year
following the year of the assessment date covered by the
provisional statement; or
(2) forty-five (45) thirty (30) days after the mailing or transmittal
of provisional statements.
(c) If subsection (b) applies, the property taxes that would otherwise
be due under subsection (a) on November 10 of the immediately
succeeding calendar year referred to in subsection (b) are The second
installment is due on the later of:
(1) November 10 of the immediately succeeding calendar year
following the year of the assessment date covered by the
provisional statement; or
(2) a date determined by the county treasurer that is not later than
December 31 of the immediately succeeding calendar year
following the year of the assessment date covered by the
provisional statement.
(d) This subsection applies only if a provisional statement for
payment of property taxes and special assessments by electronic mail
is transmitted to a person under IC 6-1.1-22-8.1(h). If a response to the
transmission of electronic mail to a person indicates that the electronic
mail was not received, the county treasurer shall mail to the person a
hard copy of the provisional statement in the manner required by this
chapter for persons who do not opt to receive statements by electronic
mail. The due date for the property taxes and special assessments under
a provisional statement mailed to a person under this subsection is the
due date indicated in the statement transmitted to the person by
electronic mail.
(b) All expenses and per diem compensation resulting from a session of a county property tax assessment board that is called by the department of local government finance under subsection (c) shall be paid by the county auditor, who shall, without an appropriation being required, draw warrants on county funds not otherwise appropriated.
(c) The department of local government finance may also call a session of the county property tax assessment board after completion of a
(b) If rules for the appraisal of real property in a
(b) If the department of local government finance determines under subsection (a)
(1) the total assessed valuation of the real property within
(2) the total assessed valuation that would result if the real property within
(c) If the department of local government finance determines under subsection (a)
(1) the total assessed valuation of the personal property within the township or county; and
(2) the total assessed valuation that would result if the personal property within the township or county were valued in the manner provided by law.
(d) The determination of the department of local government finance under section 2 or 3 of this chapter must be based on a statistically valid assessment ratio study.
(e) If a determination of the department of local government finance to order a special reassessment under this chapter is based on a coefficient of dispersion study, the department shall publish the coefficient of dispersion study for the township or county in accordance with IC 5-3-1-2(j).
(f) If:
(1) the variance determined under subsection (b) or (c) exceeds twenty percent (20%); and
(2) the department of local government finance determines after holding hearings on the matter that a special reassessment should be conducted;
the department shall contract for a special reassessment to be conducted to correct the valuation of the property.
(g) If the variance determined under subsection (b) or (c) is twenty percent (20%) or less, the department of local government finance shall determine whether to correct the valuation of the property under:
(1) IC 6-1.1-4-9 and IC 6-1.1-4-10; or
(2) IC 6-1.1-14.
(h) The department of local government finance shall give notice to a taxpayer, by individual notice or by publication at the discretion of the department, of a hearing concerning the department's intent to cause the assessment of the taxpayer's property to be adjusted under this section. The time fixed for the hearing must be at least ten (10) days after the day the notice is mailed or published. The department may conduct a single hearing under this section with respect to multiple properties. The notice must state:
(1) the time of the hearing;
(2) the location of the hearing; and
(3) that the purpose of the hearing is to hear taxpayers' comments and objections with respect to the department's intent to adjust the assessment of property under this chapter.
(i) If the department of local government finance determines after the hearing that the assessment of property should be adjusted under this chapter, the department shall:
(1) cause the assessment of the property to be adjusted;
(2) mail a certified notice of its final determination to the county auditor of the county in which the property is located; and
(3) notify the taxpayer as required under IC 6-1.1-14.
(j) A reassessment or adjustment may be made under this section only if the notice of the final determination is given to the taxpayer within the same period prescribed in IC 6-1.1-9-3 or IC 6-1.1-9-4.
(k) If the department of local government finance contracts for a special reassessment of property under this chapter, the department shall forward the bill for services of the reassessment contractor to the county auditor, and the county shall pay the bill from the county reassessment fund.
adjustment factor equals:
(1) the state average assessment ratio for a year; divided by
(2) the school corporation's assessment ratio for that year.
The department of local government finance shall notify the school
corporation of its new adjustment factor before March 2 of the year in
which the department calculates the new adjustment factor.
(b) This subsection applies in a calendar year after which a general
reassessment takes effect. cycle under a county's reassessment plan
is completed. If the department of local government finance has not
computed a new assessment ratio for a school corporation, the school
corporation's adjustment factor is the number one (1) until the
department of local government finance notifies the school corporation
of the school corporation's new adjustment factor.
(1) Except as otherwise provided in this section, the proceeds of the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of the respective taxing units. However, if the effective date of the allocation provision of a declaratory ordinance is after March 1, 1985, and before January 1, 1986, and if an improvement to property was partially completed on March 1, 1985, the unit may provide in the declaratory ordinance that the taxes attributable to the assessed value of the property as finally determined for March 1, 1984, shall be allocated to and, when collected, paid into the funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of the property tax proceeds in excess of those described in subdivision
(1), as specified in the declaratory ordinance, shall be allocated to
the unit for the economic development district and, when
collected, paid into a special fund established by the unit for that
economic development district that may be used only to pay the
principal of and interest on obligations owed by the unit under
IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
industrial development programs in, or serving, that economic
development district. The amount not paid into the special fund
shall be paid to the respective units in the manner prescribed by
subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on which
the obligations can be redeemed) on obligations owed by the unit
under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
of industrial development programs in, or serving, that economic
development district, money in the special fund in excess of that
amount shall be paid to the respective taxing units in the manner
prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
economic development district that is annexed by any taxing unit after
the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated upon
or in, or added to, the economic development district effective on the
next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all taxable
property in the economic development district, for purposes of tax
limitation, property tax replacement, and formulation of the budget, tax
rate, and tax levy for each political subdivision in which the property
is located, is the lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local government finance shall make the rules and prescribe the forms and procedures that they consider expedient for the implementation of this chapter. After each
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on depreciable personal property that the unit has by ordinance allocated to the economic development district. However, the ordinance may not limit the allocation to taxes on depreciable personal property with any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to an economic development district property taxes imposed under IC 6-1.1 on depreciable personal property that has a useful life in excess of eight (8) years, the ordinance continues in effect until an ordinance is adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means:
(1) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
Subdivision (2) applies only to economic development districts established after June 30, 1997, and to additional areas established after June 30, 1997.
of this chapter, the amount of the deduction which the property owner
is entitled to receive under this chapter for a particular year equals the
product of:
(1) the increase in the assessed value resulting from the
remediation and redevelopment in the zone or the location of
personal property in the zone, or both; multiplied by
(2) the percentage determined under subsection (b).
(b) The percentage to be used in calculating the deduction under
subsection (a) is as follows:
(1) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 66%
3rd 33%
(2) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st
100%
2nd
85%
3rd
66%
4th
50%
5th
34%
6th
17%
(3) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st
100%
2nd
95%
3rd
80%
4th
65%
5th
50%
6th
40%
7th
30%
8th
20%
9th
10%
10th
5%
(c) The amount of the deduction determined under subsection (a)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If a general reassessment of the real property under a
county's reassessment plan occurs within the particular period
of the deduction, the amount determined under subsection (a)(1)
shall be adjusted to reflect the percentage increase or decrease in
assessed valuation that resulted from the general reassessment.
(2) If an appeal of an assessment is approved that results in a reduction of the assessed value of the redeveloped or rehabilitated property, the amount of any deduction shall be adjusted to reflect the percentage decrease that resulted from the appeal.
(3) The amount of the deduction may not exceed the limitations imposed by the designating body under section 23 of this chapter.
(4) The amount of the deduction must be proportionally reduced by the proportionate ownership of the property by a person that:
(A) has an ownership interest in an entity that contributed; or
(B) has contributed;
a contaminant (as defined in IC 13-11-2-42) that is the subject of the voluntary remediation, as determined under the written standards adopted by the department of environmental management.
The department of local government finance shall adopt rules under IC 4-22-2 to implement this subsection.
(1) A county assessor of a qualifying county.
(2) A township assessor of a qualifying county.
(3) The county auditor of a qualifying county.
(4) The treasurer of a qualifying county.
(5) The county surveyor of a qualifying county.
(6) A member of the land valuation committee in a qualifying county.
(7) Any other township or county official in a qualifying county who has possession or control of information necessary or useful for a
(8) Any county official in a qualifying county who has control, review, or other responsibilities related to paying claims of a contractor submitted for payment under IC 6-1.1-4-32 (repealed).
(b) Subsection (a) applies regardless of whether professional assessing services are provided to a township under contract.
"Allocation area" means that part of a redevelopment project area to which an allocation provision of a declaratory resolution adopted under section 15 of this chapter refers for purposes of distribution and allocation of property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a declaratory resolution or an amendment to a declaratory resolution establishing an economic development area:
(A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
may include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision. For an allocation area established before July 1,
2008, the expiration date may not be more than thirty (30) years after
the date on which the allocation provision is established. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or lease
rentals on leases payable from tax increment revenues. However, with
respect to bonds or other obligations that were issued before July 1,
2008, if any of the bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. The allocation provision may apply to all or part
of the redevelopment project area. The allocation provision must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into an allocation fund for that allocation area that may be used by
the redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January 1,
2009, pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
The allocation fund may not be used for operating expenses of the
commission.
(3) Except as provided in subsection (g), before July 15 of each
year the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to produce the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (2) plus
the amount necessary for other purposes described in
subdivision (2).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
of assessed value to the respective taxing units under this
subdivision if to do so would endanger the interests of the
holders of bonds described in subdivision (2) or lessors under
section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. The amount sufficient for purposes specified in subsection (b)(2)
for the year shall be determined based on the pro rata portion of such
current property tax proceeds from the part of the enterprise zone that
is within the allocation area as compared to all such current property
tax proceeds derived from the allocation area. A unit that has no
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
in the fund derived from property tax proceeds in excess of those
described in subsection (b)(1) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund
(based on the recommendations of the urban enterprise association) for
programs in job training, job enrichment, and basic skill development
that are designed to benefit residents and employers in the enterprise
zone or other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. Those
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment of real property in an area under a
county's reassessment plan under IC 6-1.1-4, IC 6-1.1-4-4.2, the
department of local government finance shall adjust the base assessed
value one (1) time to neutralize any effect of the general reassessment
of the real property in the area under a county's reassessment plan
on the property tax proceeds allocated to the redevelopment district
under this section. After each annual adjustment under IC 6-1.1-4-4.5,
the department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the redevelopment
district under this section. However, the adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and these adjustments may not produce less property tax
proceeds allocable to the redevelopment district under subsection
(b)(2) than would otherwise have been received if the general
reassessment under a county's reassessment plan or annual
adjustment had not occurred. The department of local government
finance may prescribe procedures for county and township officials to
follow to assist the department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and subsequent allocation deadlines are automatically extended in increments of five (5) years, so that allocation deadlines subsequent to the initial allocation deadline fall on December 31, 2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline determined under subdivision (2), the general assembly may enact a law that:
(A) terminates the automatic extension of allocation deadlines under subdivision (2); and
(B) specifically designates a particular date as the final allocation deadline.
"Allocation area" means that part of a redevelopment project area to which an allocation provision of a resolution adopted under section 8 of this chapter refers for purposes of distribution and allocation of property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a declaratory resolution or an amendment to a declaratory resolution establishing an economic development area:
(A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a declaratory resolution or an amendment to a declaratory resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision after June 30, 1995,
must specify an expiration date for the allocation provision. For an
allocation area established before July 1, 2008, the expiration date may
not be more than thirty (30) years after the date on which the allocation
provision is established. For an allocation area established after June
30, 2008, the expiration date may not be more than twenty-five (25)
years after the date on which the first obligation was incurred to pay
principal and interest on bonds or lease rentals on leases payable from
tax increment revenues. However, with respect to bonds or other
obligations that were issued before July 1, 2008, if any of the bonds or
other obligations that were scheduled when issued to mature before the
specified expiration date and that are payable only from allocated tax
proceeds with respect to the allocation area remain outstanding as of
the expiration date, the allocation provision does not expire until all of
the bonds or other obligations are no longer outstanding. The allocation
provision may apply to all or part of the redevelopment project area.
The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (I), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
The special fund may not be used for operating expenses of the
commission.
(3) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (2) plus
the amount necessary for other purposes described in
subdivision (2) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, and the officers who
are authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units the amount, if any, of excess assessed value determined by the commission. The commission may not authorize an allocation to the respective taxing units under this subdivision if to do so would endanger the interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing unit or units, the assessed value of taxable property in a territory in the allocation area that is annexed by any taxing unit after the effective date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district under subsection (b)(2) may, subject to subsection (b)(3), be irrevocably pledged by the redevelopment district for payment as set forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon petition of the commission, reassess the taxable property situated upon or in, or added to, the allocation area, effective on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable property in the allocation area, for purposes of tax limitation, property tax replacement, and formulation of the budget, tax rate, and tax levy for each political subdivision in which the property is located is the lesser of:
(1) the assessed value of the property as valued without regard to this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone created under IC 5-28-15, the unit that designated the allocation area shall create funds as specified in this subsection. A unit that has obligations, bonds, or leases payable from allocated tax proceeds under subsection (b)(2) shall establish an allocation fund for the purposes specified in subsection (b)(2) and a special zone fund. Such a unit shall, until the end of the enterprise zone phase out period, deposit each year in the special zone fund the amount in the allocation fund derived from property tax proceeds in excess of those described in subsection (b)(1) from property located in the enterprise zone that exceeds the amount sufficient for the purposes specified in subsection (b)(2) for the year. A unit that has no obligations, bonds, or leases payable from allocated tax proceeds under subsection (b)(2) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) from
property located in the enterprise zone. The unit that creates the special
zone fund shall use the fund, based on the recommendations of the
urban enterprise association, for one (1) or more of the following
purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(2). However, where reference is made in
subsection (b)(2) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment of real property in an area under a
county's reassessment plan under IC 6-1.1-4, IC 6-1.1-4-4.2, the
department of local government finance shall adjust the base assessed
value one (1) time to neutralize any effect of the general reassessment
of the real property in the area under a county's reassessment plan
on the property tax proceeds allocated to the redevelopment district
under this section. After each annual adjustment under IC 6-1.1-4-4.5,
the department of local government finance shall adjust the base
assessed value to neutralize any effect of the annual adjustment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustments under this subsection may not
include the effect of property tax abatements under IC 6-1.1-12.1, and
these adjustments may not produce less property tax proceeds allocable
to the redevelopment district under subsection (b)(2) than would
otherwise have been received if the general reassessment under a
county's reassessment plan or annual adjustment had not occurred.
The department of local government finance may prescribe procedures
for county and township officials to follow to assist the department in
making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
"Allocation area" means that part of a redevelopment project area to which an allocation provision of a resolution adopted under section 40 of this chapter refers for purposes of distribution and allocation of property taxes.
"Base assessed value" means:
(1) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
(2) to the extent that it is not included in subdivision (1), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
Except as provided in section 55 of this chapter, "property taxes" means taxes imposed under IC 6-1.1 on real property.
(b) A resolution adopted under section 40 of this chapter on or before the allocation deadline determined under subsection (i) may include a provision with respect to the allocation and distribution of
property taxes for the purposes and in the manner provided in this
section. A resolution previously adopted may include an allocation
provision by the amendment of that resolution on or before the
allocation deadline determined under subsection (i) in accordance with
the procedures required for its original adoption. A declaratory
resolution or an amendment that establishes an allocation provision
must be approved by resolution of the legislative body of the excluded
city and must specify an expiration date for the allocation provision.
For an allocation area established before July 1, 2008, the expiration
date may not be more than thirty (30) years after the date on which the
first obligation was incurred to pay principal and interest on bonds or
lease rentals on leases payable from tax increment revenues. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the
allocation provision is established. However, with respect to bonds or
other obligations that were issued before July 1, 2008, if any of the
bonds or other obligations that were scheduled when issued to mature
before the specified expiration date and that are payable only from
allocated tax proceeds with respect to the allocation area remain
outstanding as of the expiration date, the allocation provision does not
expire until all of the bonds or other obligations are no longer
outstanding. The allocation provision may apply to all or part of the
redevelopment project area. The allocation provision must require that
any property taxes subsequently levied by or for the benefit of any
public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 46 of this
chapter.
(G) Reimburse the excluded city for expenditures for local
public improvements (which include buildings, park facilities,
and other items set forth in section 45 of this chapter) that are
physically located in or physically connected to that allocation
area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(3) Before July 15 of each year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value of the taxable property in the allocation area for the most recent assessment date minus the base assessed value, when multiplied by the estimated tax rate of the allocation area, will exceed the amount of assessed value needed to provide the property taxes necessary to make, when due, principal and interest payments on bonds described in subdivision (2) plus the amount necessary for other purposes described in subdivision (2) and subsection (g).
(B) Provide a written notice to the county auditor, the fiscal body of the county or municipality that established the department of redevelopment, and the officers who are authorized to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for each of the other taxing units that is wholly or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that the commission has determined may be allocated to the respective taxing units in the manner prescribed in subdivision (1); or
(ii) state that the commission has determined that there is no excess assessed value that may be allocated to the respective taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units the amount, if any, of excess assessed value determined by the commission. The commission may not authorize an allocation to the respective taxing units under this subdivision if to do so would endanger the interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing unit or units, the assessed value of taxable property in a territory in the allocation area that is annexed by any taxing unit after the effective date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district under subsection (b)(2) may, subject to subsection (b)(3), be irrevocably pledged by the redevelopment district for payment as set forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. A unit that has no obligations, bonds, or leases payable from
allocated tax proceeds under subsection (b)(2) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) from
property located in the enterprise zone. The unit that creates the special
zone fund shall use the fund, based on the recommendations of the
urban enterprise association, for one (1) or more of the following
purposes:
(1) To pay for programs in job training, job enrichment, and basic
skill development designed to benefit residents and employers in
the enterprise zone. The programs must reserve at least one-half
(1/2) of the enrollment in any session for residents of the
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in an enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(2). However, where reference is made in
subsection (b)(2) to the allocation area, the reference refers, for
purposes of payments from the special zone fund, only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment of real property in an area under a
county's reassessment plan under IC 6-1.1-4, IC 6-1.1-4-4.2, the
department of local government finance shall adjust the base assessed
value one (1) time to neutralize any effect of the general reassessment
of the real property in the area under a county's reassessment plan
on the property tax proceeds allocated to the redevelopment district
under this section. After each annual adjustment under IC 6-1.1-4-4.5,
the department of local government finance shall adjust the base
assessed value to neutralize any effect of the annual adjustment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustments under this subsection may not
include the effect of property tax abatements under IC 6-1.1-12.1, and
these adjustments may not produce less property tax proceeds allocable
to the redevelopment district under subsection (b)(2) than would
otherwise have been received if the general reassessment under a
county's reassessment plan or annual adjustment had not occurred.
The department of local government finance may prescribe procedures
for county and township officials to follow to assist the department in
making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(1) "Allocation area" means that part of a military base reuse area to which an allocation provision of a declaratory resolution adopted under section 10 of this chapter refers for purposes of distribution and allocation of property taxes.
(2) "Base assessed value" means:
(A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the adoption date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the net assessed value of any and all parcels or classes of parcels identified as part of the base assessed value in the declaratory resolution or an amendment thereto, as finally determined for any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
Clause (C) applies only to allocation areas established in a military reuse area after June 30, 1997, and to the part of an allocation area that was established before June 30, 1997, and that is added to an existing allocation area after June 30, 1997.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real property.
(b) A declaratory resolution adopted under section 10 of this chapter before the date set forth in IC 36-7-14-39(b) pertaining to declaratory resolutions adopted under IC 36-7-14-15 may include a provision with respect to the allocation and distribution of property taxes for the purposes and in the manner provided in this section. A declaratory resolution previously adopted may include an allocation provision by the amendment of that declaratory resolution in accordance with the procedures set forth in section 13 of this chapter. The allocation provision may apply to all or part of the military base reuse area. The allocation provision must require that any property taxes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the military base reuse district and, when collected,
paid into an allocation fund for that allocation area that may be
used by the military base reuse district and only to do one (1) or
more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the military base reuse district
or any other entity for the purpose of financing or refinancing
military base reuse activities in or directly serving or
benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the reuse
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) For property taxes first due and payable before 2009, pay
all or a part of a property tax replacement credit to taxpayers
in an allocation area as determined by the reuse authority. This
credit equals the amount determined under the following
STEPS for each taxpayer in a taxing district (as defined in
IC 6-1.1-1-20) that contains all or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
27 of this chapter (before its repeal) in the same year.
(F) Pay expenses incurred by the reuse authority for local
public improvements or structures that were in the allocation
area or directly serving or benefiting the allocation area.
(G) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
The allocation fund may not be used for operating expenses of the
reuse authority.
(3) Except as provided in subsection (g), before July 15 of each
year the reuse authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2).
(B) Provide a written notice to the county auditor, the fiscal
body of the unit that established the reuse authority, and the
officers who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 for each of the other taxing units
that is wholly or partly located within the allocation area. The
notice must:
(i) state the amount, if any, of excess property taxes that the
reuse authority has determined may be paid to the respective
taxing units in the manner prescribed in subdivision (1); or
(ii) state that the reuse authority has determined that there
are no excess property tax proceeds that may be allocated to
the respective taxing units in the manner prescribed in
subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess property tax proceeds determined
by the reuse authority. The reuse authority may not authorize
a payment to the respective taxing units under this subdivision
if to do so would endanger the interest of the holders of bonds
described in subdivision (2) or lessors under section 19 of this
chapter. Property taxes received by a taxing unit under this
subdivision before 2009 are eligible for the property tax
replacement credit provided under IC 6-1.1-21.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base reuse district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the military base reuse district for payment as
set forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the reuse authority, reassess the taxable property situated
upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. The amount sufficient for purposes specified in subsection (b)(2)
for the year shall be determined based on the pro rata part of such
current property tax proceeds from the part of the enterprise zone that
is within the allocation area as compared to all such current property
tax proceeds derived from the allocation area. A unit that does not have
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
that are derived from property in the enterprise zone in the fund. The
unit that creates the special zone fund shall use the fund (based on the
recommendations of the urban enterprise association) for programs in
job training, job enrichment, and basic skill development that are
designed to benefit residents and employers in the enterprise zone or
other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. The
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) After each general reassessment of real property in an area
under a county's reassessment plan under IC 6-1.1-4, IC 6-1.1-4-4.2,
the department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment of the real property in the area under a county's
reassessment plan on the property tax proceeds allocated to the
military base reuse district under this section. After each annual
adjustment under IC 6-1.1-4-4.5, the department of local government
finance shall adjust the base assessed value to neutralize any effect of
the annual adjustment on the property tax proceeds allocated to the
military base reuse district under this section. However, the
adjustments under this subsection may not include the effect of
property tax abatements under IC 6-1.1-12.1, and these adjustments
may not produce less property tax proceeds allocable to the military
base reuse district under subsection (b)(2) than would otherwise have
been received if the general reassessment under a county's
reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
(1) "Allocation area" means that part of a military base development area to which an allocation provision of a declaratory resolution adopted under section 16 of this chapter refers for purposes of distribution and allocation of property taxes.
(2) "Base assessed value" means:
(A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the adoption date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the net assessed value of any and all parcels or classes of parcels identified as part of the base assessed value in the declaratory resolution or an amendment to the declaratory resolution, as finally determined for any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real property.
(b) A declaratory resolution adopted under section 16 of this chapter before the date set forth in IC 36-7-14-39(b) pertaining to declaratory resolutions adopted under IC 36-7-14-15 may include a provision with respect to the allocation and distribution of property taxes for the purposes and in the manner provided in this section. A declaratory resolution previously adopted may include an allocation provision by the amendment of that declaratory resolution in accordance with the
procedures set forth in section 18 of this chapter. The allocation
provision may apply to all or part of the military base development
area. The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the development authority and, when collected, paid
into an allocation fund for that allocation area that may be used by
the development authority and only to do one (1) or more of the
following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the development authority or
any other entity for the purpose of financing or refinancing
military base development or reuse activities in or directly
serving or benefitting benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the development
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefitting that allocation area.
(E) For property taxes first due and payable before 2009, pay
all or a part of a property tax replacement credit to taxpayers
in an allocation area as determined by the development
authority. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district (as
defined in IC 6-1.1-1-20) that contains all or part of the
allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; by
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
32 of this chapter (before its repeal) in the same year.
(F) Pay expenses incurred by the development authority for
local public improvements or structures that were in the
allocation area or directly serving or benefitting benefiting the
allocation area.
(G) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
The allocation fund may not be used for operating expenses of the
development authority.
(3) Except as provided in subsection (g), before July 15 of each
year the development authority shall do the following:
(A) Determine the amount, if any, by which property taxes payable to the allocation fund in the following year will exceed the amount of property taxes necessary to make, when due, principal and interest payments on bonds described in subdivision (2) plus the amount necessary for other purposes described in subdivision (2).
(B) Provide a written notice to the appropriate county auditors and the fiscal bodies and other officers who are authorized to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for each of the other taxing units that is wholly or partly located within the allocation area. The notice must:
(i) state the amount, if any, of the excess property taxes that the development authority has determined may be paid to the respective taxing units in the manner prescribed in subdivision (1); or
(ii) state that the development authority has determined that there is no excess assessed value that may be allocated to the respective taxing units in the manner prescribed in subdivision (1).
The county auditors shall allocate to the respective taxing units the amount, if any, of excess assessed value determined by the development authority. The development authority may not authorize a payment to the respective taxing units under this subdivision if to do so would endanger the interest of the holders of bonds described in subdivision (2) or lessors under section 24 of this chapter. Property taxes received by a taxing unit under this subdivision before 2009 are eligible for the property tax replacement credit provided under IC 6-1.1-21.
(c) For the purpose of allocating taxes levied by or for any taxing unit or units, the assessed value of taxable property in a territory in the allocation area that is annexed by a taxing unit after the effective date of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base development district under subsection (b)(2) may, subject to subsection (b)(3), be irrevocably pledged by the military base development district for payment as set forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon petition of the development authority, reassess the taxable property situated upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the development authority shall create funds
as specified in this subsection. A development authority that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. The
development authority shall, until the end of the enterprise zone phase
out period, deposit each year in the special zone fund any amount in the
allocation fund derived from property tax proceeds in excess of those
described in subsection (b)(1) from property located in the enterprise
zone that exceeds the amount sufficient for the purposes specified in
subsection (b)(2) for the year. The amount sufficient for purposes
specified in subsection (b)(2) for the year shall be determined based on
the pro rata part of such current property tax proceeds from the part of
the enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
development authority that does not have obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(2) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) that are derived from
property in the enterprise zone in the fund. The development authority
that creates the special zone fund shall use the fund (based on the
recommendations of the urban enterprise association) for programs in
job training, job enrichment, and basic skill development that are
designed to benefit residents and employers in the enterprise zone or
for other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to an allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. The
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) After each general reassessment of real property in an area
under a county's reassessment plan under IC 6-1.1-4, IC 6-1.1-4-4.2,
the department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment of the real property in the area under a county's
reassessment plan on the property tax proceeds allocated to the
military base development district under this section. After each annual
adjustment under IC 6-1.1-4-4.5, the department of local government
finance shall adjust the base assessed value to neutralize any effect of
the annual adjustment on the property tax proceeds allocated to the
military base development district under this section. However, the
adjustments under this subsection may not include the effect of
property tax abatements under IC 6-1.1-12.1, and these adjustments
may not produce less property tax proceeds allocable to the military
base development district under subsection (b)(2) than would otherwise
have been received if the general reassessment under a county's
reassessment plan or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
(b) After each
