distribution equals the sum of the amounts determined under the
following STEPS for all taxing districts in the county that contain all
or part of an economic development district:
STEP ONE: Estimate that part of the sum of the amounts under
section 2(g)(1)(A) and 2(g)(2) of this chapter that is attributable
to the taxing district.
STEP TWO: Divide:
(A) that part of the estimated property tax replacement
determined under subsection (a) that is attributable to the
taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the property taxes levied in the taxing district that are
allocated to a special fund under
IC 6-1.1-39-5.
(d) The sum of the amounts determined under subsections (a)
through (c) is the particular county's estimated distribution for the
calendar year.
replacement fund one-half (1/2) of the estimated distribution for that
year for the county. Between September 1 and December 15 of that
year, the department shall distribute to each county treasurer from the
property tax replacement fund the remaining one-half (1/2) of each
estimated distribution for that year. The amount of the distribution for
each of these periods shall be according to a schedule determined by
the property tax replacement fund board under section 10 of this
chapter. The estimated distribution for each county may be adjusted
from time to time by the department to reflect any changes in the total
county tax levy upon which the estimated distribution is based.
(c) On or before December 31 of each year or as soon thereafter as
possible, the department shall make a final determination of the amount
which should be distributed from the property tax replacement fund to
each county for that calendar year. This determination shall be known
as the final determination of distribution. The department shall
distribute to the county treasurer or receive back from the county
treasurer any deficit or excess, as the case may be, between the sum of
the distributions made for that calendar year based on the estimated
distribution and the final determination of distribution. The final
determination of distribution shall be based on the auditor's abstract
filed with the auditor of state, adjusted for postabstract adjustments
included in the December settlement sheet for the year, and such
additional information as the department may require.
(d) All distributions provided for in this section shall be made on
warrants issued by the auditor of state drawn on the treasurer of state.
If the amounts allocated by the department from the property tax
replacement fund exceed in the aggregate the balance of money in the
fund, then the amount of the deficiency shall be transferred from the
state general fund to the property tax replacement fund, and the auditor
of state shall issue a warrant to the treasurer of state ordering the
payment of that amount. However, any amount transferred under this
section from the general fund to the property tax replacement fund
shall, as soon as funds are available in the property tax replacement
fund, be retransferred from the property tax replacement fund to the
state general fund, and the auditor of state shall issue a warrant to the
treasurer of state ordering the replacement of that amount.
by the county auditor, based on data furnished by the state board of tax
commissioners. The tax liability of a taxpayer for the purpose of
computing the credit for a particular year shall be based upon the
taxpayer's tax liability as is evidenced by the tax duplicate for the taxes
payable in that year, plus the amount by which the tax payable by the
taxpayer had been reduced due to the application of county adjusted
gross income tax revenues to the extent the county adjusted gross
income tax revenues were included in the determination of the total
county tax levy for that year as provided in sections 2(g) and 3 of this
chapter, adjusted, however, for any change in assessed valuation which
may have been made pursuant to a post-abstract adjustment if the
change is set forth on the tax statement or on a corrected tax statement
stating the taxpayer's tax liability, as prepared by the county treasurer
in accordance with
IC 6-1.1-22-8
(a). However, the tax liability of a
taxpayer does not include the amount of any property tax owed by the
taxpayer that is attributable to that part of any property tax levy
subtracted under section 2(g)(1)(B), 2(g)(1)(C), 2(g)(1)(D), 2(g)(1)(E),
2(g)(1)(F), 2(g)(1)(G), (2)(g)(1)(H), 2(g)(1)(I), or 2(g)(1)(J) of this
chapter in computing the total county tax levy.
(b) The credit for taxes payable in a particular year with respect to
mobile homes which are assessed under
IC 6-1.1-7
is twenty
thirty-five percent (20%) (35%) of the taxes payable with respect to
the assessments plus the adjustments stated in this section.
(c) Each taxpayer in a taxing district that contains all or part of an
economic development district that meets the requirements of section
5.5 of this chapter is entitled to an additional credit for property tax
replacement. This credit is equal to the product of:
(1) the STEP TWO quotient determined under section 4(a)(3) of
this chapter for the taxing district; multiplied by
(2) the taxpayer's property taxes levied in the taxing district that
are allocated to a special fund under
IC 6-1.1-39-5.
IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2) that is attributable
to the taxing district.
STEP TWO: Divide:
(A) that part of twenty thirty-five percent (20%) (35%) of the
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district;
by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that would have been allocated to a special
fund under section 5 of this chapter had the additional credit
described in this section not been given.
The additional credit reduces the amount of proceeds allocated to the
economic development district and paid into a special fund under
section 5(a) of this chapter.
(b) If the additional credit under subsection (a) is not reduced under
subsection (c) or (d), the credit for property tax replacement under
IC 6-1.1-21-5 and the additional credit under subsection (a) shall be
computed on an aggregate basis for all taxpayers in a taxing district
that contains all or part of an additional area. The credit for property
tax replacement under IC 6-1.1-21-5 and the additional credit under
subsection (a) shall be combined on the tax statements sent to each
taxpayer.
(c) The county fiscal body may, by ordinance, provide that the
additional credit described in subsection (a):
(1) does not apply in a specified additional area; or
(2) is to be reduced by a uniform percentage for all taxpayers in
a specified additional area.
(d) Whenever the county fiscal body determines that granting the
full additional credit under subsection (a) would adversely affect the
interests of the holders of bonds or other contractual obligations that
are payable from allocated tax proceeds in that economic development
district in a way that would create a reasonable expectation that those
bonds or other contractual obligations would not be paid when due, the
county fiscal body must adopt an ordinance under subsection (c) to
deny the additional credit or reduce the additional credit to a level that
creates a reasonable expectation that the bonds or other obligations will
be paid when due. An ordinance adopted under subsection (c) denies
or reduces the additional credit for property taxes first due and payable
in any year following the year in which the ordinance is adopted.
(e) An ordinance adopted under subsection (c) remains in effect
until the ordinance is rescinded by the body that originally adopted the
ordinance. However, an ordinance may not be rescinded if the
rescission would adversely affect the interests of the holders of bonds
or other obligations that are payable from allocated tax proceeds in that
economic development district in a way that would create a reasonable
expectation that the principal of or interest on the bonds or other
obligations would not be paid when due. If an ordinance is rescinded
and no other ordinance is adopted, the additional credit described in
subsection (a) applies to property taxes first due and payable in each
year following the year in which the resolution is rescinded.".
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 portion of the
area added after June 30, 1995.
(6) If an allocation area established in a blighted area before July
1, 1997, is expanded after June 30, 1997, the definition in
subdivision (2) applies to the expanded portion 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
before January 1, 2006, 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 before January 1, 2006, 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 that
may not be more than thirty (30) years after the date on which the
allocation provision is established. However, if 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 blighted 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 in or serving 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) in or serving that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in or serving that allocation area under any
lease entered into under
IC 36-1-10.
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 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) Notify the county auditor of the amount, if any, of the
amount of excess assessed value that the commission has
determined may be allocated to the respective taxing units in
the manner prescribed in subdivision (1). 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 4-4-6.1
, 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 portion 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
portion 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 state board of tax
commissioners shall make the rules and prescribe the forms and
procedures that they consider expedient for the implementation of this
chapter. After each general reassessment under
IC 6-1.1-4
, the state
board of tax commissioners shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustment may not include the effect of property
tax abatements under
IC 6-1.1-12.1
, and the adjustment 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 had not occurred. The state board
of tax commissioners may prescribe procedures for county and
township officials to follow to assist the state board in making the
adjustments.
determines that granting the full additional credit under subsection (c)
would adversely affect the interests of the holders of bonds or other
contractual obligations that are payable from allocated tax proceeds in
that allocation area in a way that would create a reasonable expectation
that those bonds or other contractual obligations would not be paid
when due, the municipal legislative body or county executive must
adopt a resolution under subsection (e) to deny the additional credit or
reduce it to a level that creates a reasonable expectation that the bonds
or other obligations will be paid when due. A resolution adopted under
subsection (e) denies or reduces the additional credit for property taxes
first due and payable in the allocation area in any year following the
year in which the resolution is adopted.
(g) A resolution adopted under subsection (e) remains in effect until
it is rescinded by the body that originally adopted it. However, a
resolution may not be rescinded if the rescission would adversely affect
the interests of the holders of bonds or other obligations that are
payable from allocated tax proceeds in that allocation area in a way that
would create a reasonable expectation that the principal of or interest
on the bonds or other obligations would not be paid when due. If a
resolution is rescinded and no other resolution is adopted, the
additional credit described in subsection (c) applies to property taxes
first due and payable in the allocation area in each year following the
year in which the resolution is rescinded.
boundaries of the unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract, or
other instrument), exchange, lease, rent, or otherwise dispose of
property acquired for use in the redevelopment of economic
development areas on the terms and conditions that the authority
considers best for the unit and the unit's inhabitants.
(3) Sell, lease, or grant interests in all or part of the real property
acquired for redevelopment purposes to any other department of
the unit or to any other governmental agency for public ways,
levees, sewerage, parks, playgrounds, schools, and other public
purposes on any terms that may be agreed on.
(4) Clear real property acquired for redevelopment purposes.
(5) Repair and maintain structures acquired for redevelopment
purposes.
(6) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment purposes.
(7) Survey or examine any land to determine whether the land
should be included within an economic development area to be
acquired for redevelopment purposes and to determine the value
of that land.
(8) Appear before any other department or agency of the unit, or
before any other governmental agency in respect to any matter
affecting:
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any economic development area within the jurisdiction of
the authority.
(9) Institute or defend in the name of the unit any civil action, but
all actions against the authority must be brought in the circuit or
superior court of the county where the authority is located.
(10) Use any legal or equitable remedy that is necessary or
considered proper to protect and enforce the rights of and perform
the duties of the authority.
(11) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit subject to the same
conditions and procedures that apply to the exercise of the power
of eminent domain by a redevelopment commission under
IC 36-7-14.
(12) Appoint an executive director, appraisers, real estate experts,
engineers, architects, surveyors, and attorneys.
(13) Appoint clerks, guards, laborers, and other employees the
authority considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(14) Prescribe the duties and regulate the compensation of
employees of the authority.
taxpayers in the allocation area by promoting economic development
that is of public use and benefit. For allocation areas established for an
economic development area created under this section after June 30,
1997, and to the expanded portion of an allocation area for an
economic development area that was established before June 30, 1997,
and that is expanded under this section after June 30, 1997, the net
assessed value of property that is assessed as residential property under
the rules of the state board of tax commissioners, as finally determined
for any assessment date, must be allocated. All of the provisions of
IC 36-7-14-39
,
IC 36-7-14-39.1
, and
IC 36-7-14-39.5
apply to an
allocation area created under this section, except that the authority shall
be vested with the rights and duties of a commission as referenced in
those sections, and except that, notwithstanding
IC 36-7-14-39
(b)(2),
property tax proceeds paid into the allocation fund may be used by the
authority only to do one (1) or more of the following:
(1) Pay the principal of and interest and redemption premium on
any obligations incurred by the special taxing district or any other
entity for the purpose of financing or refinancing military base
reuse activities in or serving or benefitting that allocation area.
(2) Establish, augment, or restore the debt service reserve for
obligations payable solely or in part from allocated tax proceeds
in that allocation area or from other revenues of the authority
(including lease rental revenues).
(3) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(4) Reimburse any other governmental body for expenditures
made by it for local public improvements or structures in or
serving or benefitting that allocation area.
(5) Pay all or a portion of a property tax replacement credit to
taxpayers in an allocation area as determined by the 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:
(A) that part of the twenty thirty-five percent (20%) (35%)
of each county's total county tax levy payable that year as
determined under
IC 6-1.1-21-4
that is attributable to the
taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the total amount of the taxpayer's property taxes 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
IC 36-7-14-39.5
in the same
year.
(6) Pay expenses incurred by the authority for local public
improvements or structures that are in the allocation area or
serving or benefiting the allocation area.
(7) Reimburse public and private entities for expenses incurred in
training employees of industrial facilities that are located:
(A) in the allocation area; and
(B) on a parcel of real property that has been classified as
industrial property under the rules of the state board of tax
commissioners.
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 clause (B). The reimbursements under this
subdivision 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 allocation fund may not be used for
operating expenses of the authority.
(e) In addition to other methods of raising money for property
acquisition, redevelopment, or economic development activities in or
directly serving or benefitting an economic development area created
by an authority under this section, and in anticipation of the taxes
allocated under subsection (d), other revenues of the authority, or any
combination of these sources, the authority may, by resolution, issue
the bonds of the special taxing district in the name of the unit. Bonds
issued under this section may be issued in any amount without
limitation. The following apply if such a resolution is adopted:
(1) The authority shall certify a copy of the resolution authorizing
the bonds to the municipal or county fiscal officer, who shall then
prepare the bonds. The seal of the unit must be impressed on the
bonds, or a facsimile of the seal must be printed on the bonds.
(2) The bonds must be executed by the appropriate officer of the
unit and attested by the unit's fiscal officer.
(3) The bonds are exempt from taxation for all purposes.
(4) Bonds issued under this section may be sold at public sale in
accordance with
IC 5-1-11
or at a negotiated sale.
(5) The bonds are not a corporate obligation of the unit but are an
indebtedness of the taxing district. The bonds and interest are
payable, as set forth in the bond resolution of the authority:
(A) from the tax proceeds allocated under subsection (d);
within the geographic boundaries of an existing or a closed military
installation, in which case the utility service is not subject to regulation
for purposes of rate making, regulation, service delivery, or issuance of
bonds or other forms of indebtedness. However, this exemption from
regulation does not apply to utility service if the service is generated,
treated, or produced outside the boundaries of the existing or closed
military installation.
the additional credits under subsections (e), (g), (h), and (i), unless the
credits under subsections (g) and (h) are partial credits, shall be
computed on an aggregate basis for all taxpayers in a taxing district
that contains all or part of an allocation area. Except as provided in
subsections (h) and (i), the credit for property tax replacement under
IC 6-1.1-21-5
and the additional credits under subsections (e), (g), (h),
and (i) shall be combined on the tax statements sent to each taxpayer.
(g) This subsection applies to an allocation area if allocated taxes
from that area were pledged to bonds, leases, or other obligations of the
commission before May 8, 1989. A credit calculated using the method
provided in subsection (e) may be granted under this subsection. The
credit provided under this subsection is first applicable for the
allocation area for property taxes first due and payable in 1992. The
following apply to the determination of the credit provided under this
subsection:
(1) Before June 15 of each year, the fiscal officer of the
consolidated city shall determine and certify the following:
(A) All amounts due in the following year to the owners of
outstanding bonds payable from the allocation area special
fund.
(B) All amounts that are:
(i) required under contracts with bond holders; and
(ii) payable from the allocation area special fund to fund
accounts and reserves.
(C) An estimate of the amount of personal property taxes
available to be paid into the allocation area special fund under
section 26.9(c) of this chapter.
(D) An estimate of the aggregate amount of credits to be
granted if full credits are granted.
(2) Before June 15 of each year, the fiscal officer of the
consolidated city shall determine if the granting of the full amount
of credits in the following year would impair any contract with or
otherwise adversely affect the owners of outstanding bonds
payable from the allocation area special fund.
(3) If the fiscal officer of the consolidated city determines under
subdivision (2) that there would not be an impairment or adverse
effect:
(A) the fiscal officer of the consolidated city shall certify the
determination; and
(B) the full credits shall be applied in the following year,
subject to the determinations and certifications made under
section 26.7(b) of this chapter.
(4) If the fiscal officer of the consolidated city makes an adverse
determination under subdivision (2), the fiscal officer of the
consolidated city shall determine whether there is an amount of
partial credits that, if granted in the following year, would not
result in the impairment or adverse effect. If the fiscal officer
determines that there is an amount of partial credits that would
not result in the impairment or adverse effect, the fiscal officer
shall do the following:
(A) Determine the amount of the partial credits.
(B) Certify that determination.
(5) If the fiscal officer of the consolidated city certifies under
subdivision (4) that partial credits may be paid, the partial credits
shall be applied pro rata among all affected taxpayers in the
following year.
(6) An affected taxpayer may appeal any of the following to the
circuit or superior court of the county in which the allocation area
is located:
(A) A determination by the fiscal officer of the consolidated
city that:
(i) credits may not be paid in the following year; or
(ii) only partial credits may be paid in the following year.
(B) A failure by the fiscal officer of the consolidated city to
make a determination by June 15 of whether full or partial
credits are payable under this subsection.
(7) An appeal of a determination must be filed not later than thirty
(30) days after the publication of the determination.
(8) An appeal of a failure by the fiscal officer of the consolidated
city to make a determination of whether the credits are payable
under this subsection must be filed by July 15 of the year in which
the determination should have been made.
(9) All appeals under subdivision (6) shall be decided by the court
within sixty (60) days.
(h) This subsection applies to an allocation area if allocated taxes
from that area were pledged to bonds, leases, or other obligations of the
commission before May 8, 1989. A credit calculated using the method
in subsection (e) and in subdivision (2) of this subsection may be
granted under this subsection. The following apply to the credit granted
under this subsection:
(1) The credit is applicable to property taxes first due and payable
in 1991.
(2) For purposes of this subsection, the amount of a credit for
1990 taxes payable in 1991 with respect to an affected taxpayer
is equal to:
(A) the amount of the quotient determined under STEP TWO
of subsection (e); multiplied by
(B) the total amount of the property taxes payable by the
taxpayer that were allocated in 1991 to the allocation area
special fund under section 26 of this chapter.
(3) Before June 15, 1991, the fiscal officer of the consolidated
city shall determine and certify an estimate of the aggregate
amount of credits for 1990 taxes payable in 1991 if the full credits
are granted.
(4) The fiscal officer of the consolidated city shall determine
whether the granting of the full amounts of the credits for 1990
taxes payable in 1991 against 1991 taxes payable in 1992 and the
granting of credits under subsection (g) would impair any contract
with or otherwise adversely affect the owners of outstanding
bonds payable from the allocation area special fund for an
allocation area described in subsection (g).
(5) If the fiscal officer of the consolidated city determines that
there would not be an impairment or adverse effect under
subdivision (4):
(A) the fiscal officer shall certify that determination; and
(B) the full credits shall be applied against 1991 taxes payable
in 1992 or the amount of the credits shall be paid to the
taxpayers as provided in subdivision (12), subject to the
determinations and certifications made under section 26.7(b)
of this chapter.
(6) If the fiscal officer of the consolidated city makes an adverse
determination under subdivision (4), the fiscal officer shall
determine whether there is an amount of partial credits for 1990
taxes payable in 1991 that, if granted against 1991 taxes payable
in 1992 in addition to granting of the credits under subsection (g),
would not result in the impairment or adverse effect.
(7) If the fiscal officer of the consolidated city determines under
subdivision (6) that there is an amount of partial credits that
would not result in the impairment or adverse effect, the fiscal
officer shall determine the amount of partial credits and certify
that determination.
(8) If the fiscal officer of the consolidated city certifies under
subdivision (7) that partial credits may be paid, the partial credits
shall be applied pro rata among all affected taxpayers against
1991 taxes payable in 1992.
(9) An affected taxpayer may appeal any of the following to the
circuit or superior court of the county in which the allocation area
is located:
(A) A determination by the fiscal officer of the consolidated
city that:
(i) credits may not be paid for 1990 taxes payable in 1991;
or
(ii) only partial credits may be paid for 1990 taxes payable
in 1991.
(B) A failure by the fiscal officer of the consolidated city to
make a determination by June 15, 1991, of whether credits are
payable under this subsection.
(10) An appeal of a determination must be filed not later than
thirty (30) days after the publication of the determination. Any
such appeal shall be decided by the court within sixty (60) days.
(11) An appeal of a failure by the fiscal officer of the consolidated
city to make a determination of whether credits are payable under
this subsection must be filed by July 15, 1991. Any such appeal
shall be decided by the court within sixty (60) days.
(12) If 1991 taxes payable in 1992 with respect to a parcel are
billed to the same taxpayer to which 1990 taxes payable in 1991
were billed, the county treasurer shall apply to the tax bill for
1991 taxes payable in 1992 both the credit provided under
subsection (g) and the credit provided under this subsection,
along with any credit determined to be applicable to the tax bill
under subsection (i). In the alternative, at the election of the
county auditor, the county may pay to the taxpayer the amount of
the credit by May 10, 1992, and the amount shall be charged to
the taxing units in which the allocation area is located in the
proportion of the taxing units' respective tax rates for 1990 taxes
payable in 1991.
(13) If 1991 taxes payable in 1992 with respect to a parcel are
billed to a taxpayer other than the taxpayer to which 1990 taxes
payable in 1991 were billed, the county treasurer shall do the
following:
(A) Apply only the credits under subsections (g) and (i) to the
tax bill for 1991 taxes payable in 1992.
(B) Give notice by June 30, 1991, by publication two (2) times
in three (3) newspapers in the county with the largest
circulation of the availability of a refund of the credit under
this subsection.
A taxpayer entitled to a credit must file an application for refund
of the credit with the county auditor not later than November 30,
1991.
(14) A taxpayer who files an application by November 30, 1991,
is entitled to payment from the county treasurer in an amount that
is in the same proportion to the credit provided under this
subsection with respect to a parcel as the amount of 1990 taxes
payable in 1991 paid by the taxpayer with respect to the parcel
bears to the 1990 taxes payable in 1991 with respect to the parcel.
This amount shall be paid to the taxpayer by May 10, 1992, and
shall be charged to the taxing units in which the allocation area is
located in the proportion of the taxing units' respective tax rates
for 1990 taxes payable in 1991.
(i) This subsection applies to an allocation area if allocated taxes
from that area were pledged to bonds, leases, or other obligations of the
commission before May 8, 1989. The following apply to the credit
granted under this subsection:
(1) A prior year credit is applicable to property taxes first due and
payable in each year from 1987 through 1990 (the "prior years").
(2) The credit for each prior year is equal to:
(A) the amount of the quotient determined under STEP TWO
of subsection (e) for the prior year; multiplied by
(B) the total amount of the property taxes paid by the taxpayer
that were allocated in the prior year to the allocation area
special fund under section 26 of this chapter.
(3) Before January 31, 1992, the county auditor shall determine
the amount of credits under subdivision (2) with respect to each
parcel in the allocation area for all prior years with respect to
which:
(A) taxes were billed to the same taxpayer for taxes payable in
each year from 1987 through 1991; or
(B) an application was filed by November 30, 1991, under
subdivision (8) for refund of the credits for prior years.
A report of the determination by parcel shall be sent by the county
auditor to the state board of tax commissioners and the budget
agency within five (5) days of such determination.
(4) Before January 31, 1992, the county auditor shall determine
the quotient of the amounts determined under subdivision (3) with
respect to each parcel divided by six (6).
(5) Before January 31, 1992, the county auditor shall determine
the quotient of the aggregate amounts determined under
subdivision (3) with respect to all parcels divided by twelve (12).
(6) Except as provided in subdivisions (7) and (9), in each year in
which credits from prior years remain unpaid, credits for the prior
years in the amounts determined under subdivision (4) shall be
applied as provided in this subsection.
(7) If taxes payable in the current year with respect to a parcel are
billed to the same taxpayer to which taxes payable in all of the
prior years were billed and if the amount determined under
subdivision (3) with respect to the parcel is at least five hundred
dollars ($500), the county treasurer shall apply the credits
provided for the current year under subsections (g) and (h) and
the credit in the amount determined under subdivision (4) to the
tax bill for taxes payable in the current year. However, if the
amount determined under subdivision (3) with respect to the
parcel is less than five hundred dollars ($500) (referred to in this
subdivision as "small claims"), the county may, at the election of
the county auditor, either apply a credit in the amount determined
under subdivision (3) or subdivision (4) to the tax bill for taxes
payable in the current year or pay either amount to the taxpayer.
If title to a parcel transfers in a year in which a credit under this
subsection is applied to the tax bill, the transferor may file an
application with the county auditor within thirty (30) days of the
date of the transfer of title to the parcel for payments to the
transferor at the same times and in the same amounts that would
have been allowed as credits to the transferor under this
subsection if there had not been a transfer. If a determination is
made by the county auditor to refund or credit small claims in the
amounts determined under subdivision (3) in 1992, the county
auditor may make appropriate adjustments to the credits applied
with respect to other parcels so that the total refunds and credits
in any year will not exceed the payments made from the state
property tax replacement fund to the prior year credit fund
referred to in subdivision (11) in that year.
(8) If taxes payable in the current year with respect to a parcel are
billed to a taxpayer that is not a taxpayer to which taxes payable
in all of the prior years were billed, the county treasurer shall do
the following:
(A) Apply only the credits under subsections (g) and (h) to the
tax bill for taxes payable in the current year.
(B) Give notice by June 30, 1991, by publication two (2) times
in three (3) newspapers in the county with the largest
circulation of the availability of a refund of the credit.
A taxpayer entitled to the credit must file an application for
refund of the credit with the county auditor not later than
November 30, 1991. A refund shall be paid to an eligible
applicant by May 10, 1992.
(9) A taxpayer who filed an application by November 30, 1991,
is entitled to payment from the county treasurer under subdivision
(8) in an amount that is in the same proportion to the credit
determined under subdivision (3) with respect to a parcel as the
amount of taxes payable in the prior years paid by the taxpayer
with respect to the parcel bears to the taxes payable in the prior
years with respect to the parcel.
(10) In each year on May 1 and November 1, the state shall pay
to the county treasurer from the state property tax replacement
fund the amount determined under subdivision (5).
(11) All payments received from the state under subdivision (10)
shall be deposited into a special fund to be known as the prior
year credit fund. The prior year credit fund shall be used to make:
(A) payments under subdivisions (7) and (9); and
(B) deposits into the special fund for the application of prior
year credits.
(12) All amounts paid into the special fund for the allocation area
under subdivision (11) are subject to any pledge of allocated
property tax proceeds made by the redevelopment district under
section 26(d) of this chapter, including but not limited to any
pledge made to owners of outstanding bonds of the
redevelopment district of allocated taxes from that area.
(13) By January 15, 1993, and by January 15 of each year
thereafter, the county auditor shall send to the state board of tax
commissioners and the budget agency a report of the receipts,
earnings, and disbursements of the prior year credit fund for the
prior calendar year. If in the final year that credits under this
subsection (i) are allowed any balance remains in the prior year
credit fund after the payment of all credits payable under this
subsection, such balance shall be repaid to the treasurer of state
for deposit in the property tax replacement fund.
(14) In each year, the county shall limit the total of all refunds and
credits provided for in this subsection to the total amount paid in
that year from the property tax replacement fund into the prior
year credit fund and any balance remaining from the preceding
year in the prior year credit fund.
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) 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.
manner prescribed in subdivision (1). 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 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 4-4-6.1
, 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
portion 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 under
IC 6-1.1-4
, the state
board of tax commissioners shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the military base reuse district under
this section. However, the adjustment may not include the effect of
property tax abatements under
IC 6-1.1-12.1
, and the adjustment 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 had not occurred. The state board
of tax commissioners may prescribe procedures for county and
township officials to follow to assist the state board in making the
adjustments.
determined under
IC 6-1.1-21-4
that is attributable to the
taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that would have been allocated to an
allocation fund under section 25 of this chapter had the
additional credit described in this section not been given.
The additional credit reduces the amount of proceeds allocated to the
military base reuse district and paid into an allocation fund under
section 25(b)(2) of this chapter.
(d) If the additional credit under subsection (c) is not reduced under
subsection (e) or (f), the credit for property tax replacement under
IC 6-1.1-21-5
and the additional credit under subsection (c) shall be
computed on an aggregate basis for all taxpayers in a taxing district
that contains all or part of an allocation area. The credit for property tax
replacement under
IC 6-1.1-21-5
and the additional credit under
subsection (c) shall be combined on the tax statements sent to each
taxpayer.
(e) Upon the recommendation of the reuse authority, the municipal
legislative body (in the case of a reuse authority established by a
municipality) or the county executive (in the case of a reuse authority
established by a county) may by resolution provide that the additional
credit described in subsection (c):
(1) does not apply in a specified allocation area; or
(2) is to be reduced by a uniform percentage for all taxpayers in
a specified allocation area.
(f) If the municipal legislative body or county executive determines
that granting the full additional credit under subsection (c) would
adversely affect the interests of the holders of bonds or other
contractual obligations that are payable from allocated tax proceeds in
that allocation area in a way that would create a reasonable expectation
that those bonds or other contractual obligations would not be paid
when due, the municipal legislative body or county executive must
adopt a resolution under subsection (e) to deny the additional credit or
reduce the credit to a level that creates a reasonable expectation that
the bonds or other obligations will be paid when due. A resolution
adopted under subsection (e) denies or reduces the additional credit for
property taxes first due and payable in the allocation area in any year
following the year in which the resolution is adopted.
(g) A resolution adopted under subsection (e) remains in effect until
rescinded by the body that originally adopted the resolution. However,
a resolution may not be rescinded if the rescission would adversely
affect the interests of the holders of bonds or other obligations that are
payable from allocated tax proceeds in that allocation area in a way that
would create a reasonable expectation that the principal of or interest
on the bonds or other obligations would not be paid when due. If a
resolution is rescinded and no other resolution is adopted, the
additional credit described in subsection (c) applies to property taxes
first due and payable in the allocation area in each year following the
year in which the resolution is rescinded.".