Bill Text: IN HB1313 | 2011 | Regular Session | Enrolled
Bill Title: Referendum taxes imposed in allocation area.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-16 - SECTION 22 effective 05/10/2011 [HB1313 Detail]
Download: Indiana-2011-HB1313-Enrolled.html
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AN ACT to amend the Indiana Code concerning taxation.
(b) The county auditor shall distribute proceeds collected from an allocation area (as defined in IC 6-1.1-21.2-3) that are attributable to property taxes imposed after being approved by the voters in a referendum conducted after April 30, 2010, to the taxing unit for which the referendum was conducted.
(c) The amount to be distributed under subsection (b) shall be treated as part of the referendum levy for purposes of setting tax rates for property taxes imposed after being approved by the voters in a referendum conducted after April 30, 2010.
(1) the special funds referred to in IC 6-1.1-39-5;
(2) the special funds referred to in IC 8-22-3.5-9(e);
(3) the allocation fund referred to in
(4) the allocation fund referred to in IC 36-7-14.5-12.5(d);
(5) the special fund referred to in
(6) the special fund referred to in
(7) the allocation fund referred to in
(8) the allocation fund referred to in
(1) the net assessed value of all the tangible property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the commission's resolution adopted under section 5 or 9.5 of this chapter, notwithstanding the date of the final action taken under section 6 of this chapter; plus
(2) to the extent 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.
However, subdivision (2) applies only to an airport development zone established after June 30, 1997, and the portion of an airport development zone established before June 30, 1997, that is added to an existing airport development zone.
(b) A resolution adopted under section 5 of this chapter and confirmed under section 6 of this chapter must include a provision with respect to the allocation and distribution of property taxes for the purposes and in the manner provided in this section.
(c) The allocation provision must:
(1) apply to the entire airport development zone; and
(2) require that any property tax on taxable tangible property subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes in the airport development zone be allocated and distributed as provided in subsections (d) and (e).
(d) Except as otherwise provided in this section:
(1) the proceeds of the taxes attributable to the lesser of:
distribution is made; or
(2) (B) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units; and
(2) the excess of the proceeds of the property taxes imposed
for the assessment date with respect to which the allocation
and distribution are made that are attributable to taxes
imposed after being approved by the voters in a referendum
or local public question conducted after April 30, 2010, not
otherwise included in subdivision (1) shall be allocated to and,
when collected, paid into the funds of the taxing unit for
which the referendum or local public question was conducted.
(e) All of the property tax proceeds in excess of those described in
subsection (d) shall be allocated to the eligible entity for the airport
development zone and, when collected, paid into special funds as
follows:
(1) The commission may determine that a portion of tax proceeds
shall be allocated to a training grant fund to be expended by the
commission without appropriation solely for the purpose of
reimbursing training expenses incurred by public or private
entities in the training of employees for the qualified airport
development project.
(2) The commission may determine that a portion of tax proceeds
shall be allocated to a debt service fund and dedicated to the
payment of principal and interest on revenue bonds or a loan
contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
payment of leases for a qualified airport development project, or
to the payment of principal and interest on bonds issued by an
eligible entity to pay for qualified airport development projects in
the airport development zone or serving the airport development
zone.
(3) The commission may determine that a part of the tax proceeds
shall be allocated to a project fund and used to pay expenses
incurred by the commission for a qualified airport development
project that is in the airport development zone or is serving the
airport development zone.
(4) Except as provided in subsection (f), all remaining tax
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds allocated
to the project fund in subsection (e)(3) in the following year will
exceed the amount necessary to satisfy amounts required under
subsection (e).
(2) Provide a written notice to the county auditor 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:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the respective
taxing units in the manner prescribed in subsection (d); (d)(1);
or
(B) state that the commission has determined that there are no
excess tax proceeds that may be allocated to the respective
taxing units in the manner prescribed in subsection (d). (d)(1).
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund is
sufficient to pay all outstanding principal and interest (to the earliest
date on which the obligations can be redeemed) on revenue bonds
issued by the board of aviation commissioners or airport authority for
the financing of qualified airport development projects, all lease rentals
payable on leases of qualified airport development projects, and all
costs and expenditures associated with all qualified airport
development projects, money in the debt service fund and in the project
fund in excess of those amounts shall be paid to the respective taxing
units in the manner prescribed by subsection (d). (d)(1).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon petition
of the commission, reassess the taxable tangible property situated upon
or in, or added to, the airport development zone effective on the next
assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all taxable
tangible property in the airport development zone, 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 tangible property as valued without
regard to this section; or
(2) the base assessed value.
(b) The county auditor shall distribute proceeds collected from an allocation area (as defined in IC 6-1.1-21.2-3) that are attributable to property taxes imposed after being approved by the voters in a referendum conducted after April 30, 2010, to the taxing unit for which the referendum was conducted.
(c) The amount to be distributed under subsection (b) shall be treated as part of the referendum levy for purposes of setting tax rates for property taxes imposed after being approved by the voters in a referendum conducted after April 30, 2010.
(b) In adopting a declaratory resolution under section 15 of this chapter, a redevelopment commission may include a provision stating that the redevelopment project area is considered to include one (1) or more additional areas outside the boundaries of the redevelopment project area if the redevelopment commission makes the following findings and the requirements of subsection (c) are met:
(1) One (1) or more taxpayers presently located within the boundaries of the redevelopment project area are expected within one (1) year to relocate all or part of their operations outside the boundaries of the redevelopment project area and have expressed an interest in relocating all or part of their operations within the boundaries of an additional area.
(2) The relocation described in subdivision (1) will contribute to the continuation of the conditions described in IC 36-7-1-3 in the redevelopment project area.
(3) For purposes of this section, it will be of public utility and benefit to include the additional areas as part of the redevelopment project area.
(c) Each additional area must be designated by the redevelopment commission as a redevelopment project area or an economic development area under this chapter.
(d) Notwithstanding section 3 of this chapter, the additional areas shall be considered to be a part of the redevelopment special taxing district under the jurisdiction of the redevelopment commission. Any excess property taxes that the commission has determined may be paid to taxing units under section
(e) The declaratory resolution must include a statement of the general boundaries of each additional area. However, it is sufficient to describe those boundaries by location in relation to public ways, streams, or otherwise, as determined by the commissioners.
(f) The declaratory resolution may include a provision with respect to the allocation and distribution of property taxes with respect to one (1) or more of the additional areas in the manner provided in section 39 of this chapter. If the redevelopment commission includes such a provision in the resolution, allocation areas in the redevelopment project area and in the additional areas considered to be part of the redevelopment project area shall be considered a single allocation area for purposes of this chapter.
(g) The additional areas must be located within the same county as the redevelopment project area but are not otherwise required to be within the jurisdiction of the redevelopment commission, if the redevelopment commission obtains the consent by ordinance of:
(1) the county legislative body, for each additional area located within the unincorporated part of the county; or
(2) the legislative body of the city or town affected, for each additional area located within a city or town.
In granting its consent, the legislative body shall approve the plan of development or redevelopment relating to the additional area.
(h) A declaratory resolution previously adopted may be amended to include a provision to include additional areas as set forth in this section and an allocation provision under section 39 of this chapter with respect to one (1) or more of the additional areas in accordance with sections 15, 16, and 17 of this chapter.
(i) The redevelopment commission may amend the allocation provision of a declaratory resolution in accordance with sections 15, 16, and 17 of this chapter to change the assessment date that
determines the base assessed value of property in the allocation area to
any assessment date following the effective date of the allocation
provision of the declaratory resolution. Such a change may relate to the
assessment date that determines the base assessed value of that portion
of the allocation area that is located in the redevelopment project area
alone, that portion of the allocation area that is located in an additional
area alone, or the entire allocation area.
(1) the total cost of all land, rights-of-way, and other property to be acquired and redeveloped;
(2) all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount, and supervisory expenses related to the acquisition and redevelopment of the property or the issuance of bonds;
(3) capitalized interest permitted by this chapter and a debt service reserve for the bonds to the extent the redevelopment commission determines that a reserve is reasonably required; and
(4) expenses that the redevelopment commission is required or permitted to pay under IC 8-23-17.
(b) If the redevelopment commission plans to acquire different parcels of land or let different contracts for redevelopment work at approximately the same time, whether under one (1) or more resolutions, the commission may provide for the total cost in one (1) issue of bonds.
(c) The bonds must be dated as set forth in the bond resolution and negotiable, subject to the requirements of the bond resolution for registering the bonds. The resolution authorizing the bonds must state:
(1) the denominations of the bonds;
(2) the place or places at which the bonds are payable; and
(3) the term of the bonds, which may not exceed:
(A) fifty (50) years, for bonds issued before July 1, 2008;
(B) thirty (30) years, for bonds issued after June 30, 2008, to finance:
(i) an integrated coal gasification powerplant (as defined in IC 6-3.1-29-6);
(ii) a part of an integrated coal gasification powerplant (as defined in IC 6-3.1-29-6); or
(iii) property used in the operation or maintenance of an integrated coal gasification powerplant (as defined in IC 6-3.1-29-6);
that received a certificate of public convenience and necessity from the Indiana utility regulatory commission under IC 8-1-8.5 et seq. before July 1, 2008; or
(C) twenty-five (25) years, for bonds issued after June 30, 2008, that are not described in clause (B).
The resolution may also state that the bonds are redeemable before maturity with or without a premium, as determined by the redevelopment commission.
(d) The redevelopment commission shall certify a copy of the resolution authorizing the bonds to the municipal or county fiscal officer, who shall then prepare the bonds, subject to subsection (p). The seal of the unit must be impressed on the bonds, or a facsimile of the seal must be printed on the bonds.
(e) The bonds must be executed by the appropriate officer of the unit and attested by the municipal or county fiscal officer.
(f) The bonds are exempt from taxation for all purposes.
(g) The municipal or county fiscal officer shall give notice of the sale of the bonds by publication in accordance with IC 5-3-1. The municipal fiscal officer, or county fiscal officer or executive, shall sell the bonds to the highest bidder, but may not sell them for less than ninety-seven percent (97%) of their par value. However, bonds payable solely or in part from tax proceeds allocated under section
(h) Except as provided in subsection (i), a redevelopment commission may not issue the bonds when the total issue, including bonds already issued and to be issued, exceeds two percent (2%) of the adjusted value of the taxable property in the special taxing district, as determined under IC 36-1-15.
(i) 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 redevelopment commission:
(1) from a special tax levied upon all of the property in the taxing district, as provided by section 27 of this chapter;
(2) from the tax proceeds allocated under section
(3) from other revenues available to the redevelopment commission; or
(4) from a combination of the methods stated in subdivisions (1) through (3).
If the bonds are payable solely from the tax proceeds allocated under section
(j) Proceeds from the sale of bonds may be used to pay the cost of interest on the bonds for a period not to exceed five (5) years from the date of issuance.
(k) All laws relating to the giving of notice of the issuance of bonds, the giving of notice of a hearing on the appropriation of the proceeds of the bonds, the right of taxpayers to appear and be heard on the proposed appropriation, and the approval of the appropriation by the department of local government finance apply to all bonds issued under this chapter that are payable from the special benefits tax levied pursuant to section 27 of this chapter or from taxes allocated under section 39 of this chapter.
(l) All laws relating to:
(1) the filing of petitions requesting the issuance of bonds; and
(2) the right of:
(A) taxpayers and voters to remonstrate against the issuance of bonds in the case of a proposed bond issue described by IC 6-1.1-20-3.1(a); or
(B) voters to vote on the issuance of bonds in the case of a proposed bond issue described by IC 6-1.1-20-3.5(a);
apply to bonds issued under this chapter except for bonds payable solely from tax proceeds allocated under section
(m) If a debt service reserve is created from the proceeds of bonds, the debt service reserve may be used to pay principal and interest on the bonds as provided in the bond resolution.
(n) Any amount remaining in the debt service reserve after all of the bonds of the issue for which the debt service reserve was established have matured shall be:
(1) deposited in the allocation fund established under section
39(b)(2) 39(b)(3) of this chapter; and
(2) to the extent permitted by law, transferred to the county or
municipality that established the department of redevelopment for
use in reducing the county's or municipality's property tax levies
for debt service.
(o) If bonds are issued under this chapter that are payable solely or
in part from revenues to the redevelopment commission from a project
or projects, the redevelopment commission may adopt a resolution or
trust indenture or enter into covenants as is customary in the issuance
of revenue bonds. The resolution or trust indenture may pledge or
assign the revenues from the project or projects, but may not convey or
mortgage any project or parts of a project. The resolution or trust
indenture may also contain any provisions for protecting and enforcing
the rights and remedies of the bond owners as may be reasonable and
proper and not in violation of law, including covenants setting forth the
duties of the redevelopment commission. The redevelopment
commission may establish fees and charges for the use of any project
and covenant with the owners of any bonds to set those fees and
charges at a rate sufficient to protect the interest of the owners of the
bonds. Any revenue bonds issued by the redevelopment commission
that are payable solely from revenues of the commission shall contain
a statement to that effect in the form of bond.
(p) If the total principal amount of bonds authorized by a resolution
of the redevelopment commission adopted before July 1, 2008, is equal
to or greater than three million dollars ($3,000,000), the bonds may not
be issued without the approval, by resolution, of the legislative body of
the unit. Bonds authorized in any principal amount by a resolution of
the redevelopment commission adopted after June 30, 2008, may not
be issued without the approval of the legislative body of the unit.
(b) All gifts or donations that are given or paid to the department of redevelopment or to the unit for redevelopment purposes shall be promptly deposited to the credit of the redevelopment district capital fund. The redevelopment commission may use these gifts and
donations for the purposes of this chapter.
(c) Before the eleventh day of each calendar month the fiscal officer
shall notify the redevelopment commission and the officers of the unit
who have duties in respect to the funds and accounts of the unit of the
amount standing to the credit of the redevelopment district capital fund
at the close of business on the last day of the preceding month.
(d) A redevelopment commission shall deposit in the allocation fund
established under section 39(b)(2) 39(b)(3) of this chapter of an
allocation area the proceeds from the sale or leasing of property in the
area under section 22 of this chapter if:
(1) there are outstanding bonds that were issued to pay costs of
redevelopment in the allocation area; and
(2) the bonds are payable solely or in part from tax proceeds
allocated under section 39(b)(2) 39(b)(3) of this chapter.
(1) bonds that are issued under section 25.1 of this chapter; and
(2) leases entered into under section 25.2 of this chapter;
which are payable from a special tax levied upon all of the property in the special taxing district. This section does not apply to bonds or leases that are payable solely from tax proceeds allocated under section
(b) The redevelopment commission shall levy each year a special tax on all of the property of the redevelopment taxing district, in such a manner as to meet and pay the principal of the bonds as they mature, together with all accruing interest on the bonds or lease rental payments under section 25.2 of this chapter. The commission shall cause the tax levied to be certified to the proper officers as other tax levies are certified, and to the auditor of the county in which the redevelopment district is located, before the second day of October in each year. The tax shall be estimated and entered on the tax duplicate by the county auditor and shall be collected and enforced by the county treasurer in the same manner as other state and county taxes are estimated, entered, collected, and enforced. The amount of the tax levied to pay bonds or lease rentals payable from the tax levied under this section shall be reduced by any amount available in the allocation fund established under section
(c) As the tax is collected, it shall be accumulated in a separate fund to be known as the redevelopment district bond fund and shall be applied to the payment of the bonds as they mature and the interest on the bonds as it accrues, or to make lease payments and to no other purpose. All accumulations of the fund before their use for the payment of bonds and interest or to make lease payments shall be deposited with the depository or depositories for other public funds of the unit in accordance with IC 5-13, unless they are invested under IC 5-13-9.
(d) If there are no outstanding bonds that are payable solely or in part from tax proceeds allocated under section
(e) The tax levies provided for in this section are reviewable by other bodies vested by law with the authority to ascertain that the levies are sufficient to raise the amount that, with other amounts available, is sufficient to meet the payments under the lease payable from the levy of taxes.
"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) The excess of the proceeds of the property taxes imposed for the assessment date with respect to which the allocation and distribution is made that are attributable to taxes imposed after being approved by the voters in a referendum or local public question conducted after April 30, 2010, not otherwise included in subdivision (1) shall be allocated to and, when collected, paid into the funds of the taxing unit for which the referendum or local public question was conducted.
(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) (before their repeal) 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 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) 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 (before its repeal)) 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) (4) 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), (3),
plus the amount necessary for other purposes described in
subdivision (2). (3).
(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) (3) 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) (b)(3) may, subject to subsection (b)(3), (b)(4),
be irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2). (b)(3).
(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
(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 under IC 6-1.1-4, the department of local government finance 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. 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) (b)(3) than would
otherwise have been received if the general reassessment 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.
(b) The allocation fund established under section 39(b) of this chapter for the allocation area for a program adopted under section 45 of this chapter may be used only for purposes related to the accomplishment of the program, including the following:
(1) The construction, rehabilitation, or repair of residential units within the allocation area.
(2) The construction, reconstruction, or repair of any
infrastructure (including streets, sidewalks, and sewers) within or
serving the allocation area.
(3) The acquisition of real property and interests in real property
within the allocation area.
(4) The demolition of real property within the allocation area.
(5) The provision of financial assistance to enable individuals and
families to purchase or lease residential units within the allocation
area. However, financial assistance may be provided only to those
individuals and families whose income is at or below the county's
median income for individuals and families, respectively.
(6) The provision of financial assistance to neighborhood
development corporations to permit them to provide financial
assistance for the purposes described in subdivision (5).
(7) For property taxes first due and payable before January 1,
2009, providing each taxpayer in the allocation area a credit for
property tax replacement as determined under subsections (c) and
(d). However, the commission may provide this credit only if the
municipal legislative body (in the case of a redevelopment
commission established by a municipality) or the county
executive (in the case of a redevelopment commission established
by a county) establishes the credit by ordinance adopted in the
year before the year in which the credit is provided.
(c) The maximum credit that may be provided under subsection
(b)(7) to a taxpayer in a taxing district that contains all or part of an
allocation area established for a program adopted under section 45 of
this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts
described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
through IC 6-1.1-21-2(g)(5) (before their repeal) that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of each county's eligible property tax replacement
amount (as defined in IC 6-1.1-21-2) (before its repeal) for
that year as determined under IC 6-1.1-21-4(a)(1) (before its
repeal) that is attributable to the taxing district; by
(B) the amount determined under STEP ONE.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before
its repeal) levied in the taxing district allocated to the
allocation fund, including the amount that would have been
allocated but for the credit.
(d) The commission may determine to grant to taxpayers in an allocation area from its allocation fund a credit under this section, as calculated under subsection (c). Except as provided in subsection (g), one-half (1/2) of the credit shall be applied to each installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal) that under IC 6-1.1-22-9 are due and payable in a year. The commission must provide for the credit annually by a resolution and must find in the resolution the following:
(1) That the money to be collected and deposited in the allocation fund, based upon historical collection rates, after granting the credit will equal the amounts payable for contractual obligations from the fund, plus ten percent (10%) of those amounts.
(2) If bonds payable from the fund are outstanding, that there is a debt service reserve for the bonds that at least equals the amount of the credit to be granted.
(3) If bonds of a lessor under section 25.2 of this chapter or under IC 36-1-10 are outstanding and if lease rentals are payable from the fund, that there is a debt service reserve for those bonds that at least equals the amount of the credit to be granted.
If the tax increment is insufficient to grant the credit in full, the commission may grant the credit in part, prorated among all taxpayers.
(e) Notwithstanding section 39(b) of this chapter, the allocation fund established under section 39(b) of this chapter for the allocation area for a program adopted under section 45 of this chapter may only be used to do one (1) or more of the following:
(1) Accomplish one (1) or more of the actions set forth in section
(2) Reimburse the county or municipality for expenditures made by the county or municipality in order to accomplish the housing program in that allocation area.
The allocation fund may not be used for operating expenses of the commission.
(f) Notwithstanding section 39(b) of this chapter, the commission shall, relative to the allocation fund established under section 39(b) of this chapter for an allocation area for a program adopted under section 45 of this chapter, do the following before July 15 of each year:
(1) 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:
(A) make the distribution required under section 39(b)(2);
(A) to (B) make, when due, principal and interest payments on
bonds described in section 39(b)(2) 39(b)(3) of this chapter;
(B) to (C) pay the amount necessary for other purposes
described in section 39(b)(2) 39(b)(3) of this chapter; and
(C) to (D) reimburse the county or municipality for anticipated
expenditures described in subsection (e)(2).
(2) 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:
(A) state the amount, if any, of excess property taxes that the
commission has determined may be paid to the respective
taxing units in the manner prescribed in section 39(b)(1) of
this chapter; or
(B) 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.
(g) This subsection applies to an allocation area only to the extent
that the net assessed value of property that is assessed as residential
property under the rules of the department of local government finance
is not included in the base assessed value. If property tax installments
with respect to a homestead (as defined in IC 6-1.1-12-37) are due in
installments established by the department of local government finance
under IC 6-1.1-22-9.5, each taxpayer subject to those installments in an
allocation area is entitled to an additional credit under subsection (d)
for the taxes (as defined in IC 6-1.1-21-2) (before its repeal) due in
installments. The credit shall be applied in the same proportion to each
installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal).
(b) In order to accomplish the purposes set forth in section 11 of this chapter, an authority may create an economic development area:
(1) by following the procedures set forth in IC 36-7-14-41 for the establishment of an economic development area by a redevelopment commission; and
(2) with the same effect as if the economic development area was created by a redevelopment commission.
The area established under this section shall be established only in the area where a United States government military base that is scheduled for closing or is completely or partially inactive or closed is or was located.
(c) In order to accomplish the purposes set forth in section 11 of this chapter, an authority may do the following in a manner that serves an economic development area created under this section:
(1) Acquire by purchase, exchange, gift, grant, condemnation, or lease, or any combination of methods, any personal property or interest in real property needed for the redevelopment of economic development areas located within the corporate 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.
(15) Provide a pension and retirement system for employees of
the authority by using the public employees' retirement fund or a
retirement plan approved by the United States Department of
Housing and Urban Development.
(16) Discharge and appoint successors to employees of the
authority subject to subdivision (13).
(17) Rent offices for use of the department or authority, or accept
the use of offices furnished by the unit.
(18) Equip the offices of the authority with the necessary
furniture, furnishings, equipment, records, and supplies.
(19) Design, order, contract for, and construct, reconstruct,
improve, or renovate the following:
(A) Any local public improvement or structure that is
necessary for redevelopment purposes or economic
development within the corporate boundaries of the unit.
(B) Any structure that enhances development or economic
development.
(20) Contract for the construction, extension, or improvement of
pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
(21) Accept loans, grants, and other forms of financial assistance
from, or contract with, the federal government, the state
government, a municipal corporation, a special taxing district, a
foundation, or any other source.
(22) Make and enter into all contracts and agreements necessary
or incidental to the performance of the duties of the authority and
the execution of the powers of the authority under this chapter.
(23) Take any action necessary to implement the purpose of the
authority.
(24) Provide financial assistance, in the manner that best serves
the purposes set forth in section 11 of this chapter, including
grants and loans, to enable private enterprise to develop,
redevelop, and reuse military base property or otherwise enable
private enterprise to provide social and economic benefits to the
citizens of the unit.
(d) An authority may designate all or a portion of an economic
development area created under this section as an allocation area by
following the procedures set forth in IC 36-7-14-39 for the
establishment of an allocation area by a redevelopment commission.
The allocation provision may modify the definition of "property taxes"
under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the
depreciable personal property located and taxable on the site of
operations of designated taxpayers in accordance with the procedures
applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.3
applies to such a modification. An allocation area established by an
authority under this section is a special taxing district authorized by the
general assembly to enable the unit to provide special benefits to
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 department of local government finance, as finally
determined for any assessment date, must be allocated. All of the
provisions of IC 36-7-14-39 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), IC 36-7-14-39(b)(3), 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 benefiting 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 that benefits or provides for local public improvements
or structures in or serving or benefiting that allocation area.
(5) Pay expenses incurred by the authority that benefit or provide
for local public improvements or structures that are in the
allocation area or serving or benefiting the allocation area.
(6) 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 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 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.
(e) In addition to other methods of raising money for property
acquisition, redevelopment, or economic development activities in or
directly serving or benefitting benefiting 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);
(B) from other revenues available to the authority; or
(C) from a combination of the methods stated in clauses (A)
and (B).
(6) Proceeds from the sale of bonds may be used to pay the cost
of interest on the bonds for a period not to exceed five (5) years
from the date of issuance.
(7) Laws relating to the filing of petitions requesting the issuance
of bonds and the right of taxpayers and voters to remonstrate
against the issuance of bonds do not apply to bonds issued under
this section.
(8) If a debt service reserve is created from the proceeds of bonds,
the debt service reserve may be used to pay principal and interest
on the bonds as provided in the bond resolution.
(9) If bonds are issued under this chapter that are payable solely
or in part from revenues to the authority from a project or
projects, the authority may adopt a resolution or trust indenture or
enter into covenants as is customary in the issuance of revenue
bonds. The resolution or trust indenture may pledge or assign the
revenues from the project or projects. The resolution or trust
indenture may also contain any provisions for protecting and
enforcing the rights and remedies of the bond owners as may be
reasonable and proper and not in violation of law, including
covenants setting forth the duties of the authority. The authority
may establish fees and charges for the use of any project and
covenant with the owners of any bonds to set those fees and
charges at a rate sufficient to protect the interest of the owners of
the bonds. Any revenue bonds issued by the authority that are
payable solely from revenues of the authority shall contain a
statement to that effect in the form of bond.
(f) Notwithstanding section 8(a) of this chapter, an ordinance
adopted under section 11 of this chapter may provide, or be amended
to provide, that the board of directors of the authority shall be
composed of not fewer than three (3) nor more than eleven (11)
members, who must be residents of or be employed at a place of
employment located within the unit. The members shall be appointed
by the executive of the unit.
(g) The acquisition of real and personal property by an authority
under this section is not subject to the provisions of IC 5-22,
IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
purchase of property by public bodies or their agencies.
(h) An authority may negotiate for the sale, lease, or other
disposition of real and personal property without complying with the
provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
statute governing the disposition of public property.
(i) Notwithstanding any other law, utility services provided within
an economic development area established under this section are
subject to regulation by the appropriate regulatory agencies unless the
utility service is provided by a utility that provides utility service solely
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.
(1) the total cost of all land, rights-of-way, and other property to be acquired and redeveloped;
(2) all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount, and supervisory expenses related to the acquisition and redevelopment of the property or the issuance of bonds;
(3) capitalized interest permitted in this chapter and a debt service reserve for the bonds, to the extent that the redevelopment
commission determines that a reserve is reasonably required;
(4) the total cost of all clearing and construction work provided
for in the resolution; and
(5) expenses that the commission is required or permitted to pay
under IC 8-23-17.
(b) If the commission plans to acquire different parcels of land or let
different contracts for redevelopment work at approximately the same
time, whether under one (1) or more resolutions, the commission may
provide for the total cost in one (1) issue of bonds.
(c) The bonds must be dated as set forth in the bond resolution and
negotiable subject to the requirements of the bond resolution for the
registration of the bonds. The resolution authorizing the bonds must
state:
(1) the denominations of the bonds;
(2) the place or places at which the bonds are payable; and
(3) the term of the bonds, which may not exceed:
(A) fifty (50) years, for bonds issued before July 1, 2008; or
(B) twenty-five (25) years, for bonds issued after June 30,
2008.
The resolution may also state that the bonds are redeemable before
maturity with or without a premium, as determined by the commission.
(d) The commission shall certify a copy of the resolution authorizing
the bonds to the fiscal officer of the consolidated city, 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.
(e) The bonds shall be executed by the city executive and attested
by the fiscal officer. The interest coupons, if any, shall be executed by
the facsimile signature of the fiscal officer.
(f) The bonds are exempt from taxation as provided by IC 6-8-5.
(g) The city fiscal officer shall sell the bonds according to law.
Notwithstanding IC 36-3-5-8, bonds payable solely or in part from tax
proceeds allocated under section 26(b)(2) 26(b)(3) of this chapter or
other revenues of the district may be sold at private negotiated sale and
at a price or prices not less than ninety-seven percent (97%) of the par
value.
(h) The bonds are not a corporate obligation of the city but are an
indebtedness of the redevelopment district. The bonds and interest are
payable:
(1) from a special tax levied upon all of the property in the
redevelopment district, as provided by section 19 of this chapter;
(2) from the tax proceeds allocated under section 26(b)(2)
26(b)(3) of this chapter;
(3) from other revenues available to the commission; or
(4) from a combination of the methods stated in subdivisions (1) through (3);
and from any revenues of the designated project. If the bonds are payable solely from the tax proceeds allocated under section
(i) Proceeds from the sale of the bonds may be used to pay the cost of interest on the bonds for a period not to exceed five (5) years from the date of issue.
(j) Notwithstanding IC 36-3-5-8, the laws relating to the filing of petitions requesting the issuance of bonds and the right of taxpayers and voters to remonstrate against, or vote on, the issuance of bonds applicable to bonds issued under this chapter do not apply to bonds payable solely or in part from tax proceeds allocated under section
(k) If bonds are issued under this chapter that are payable solely or in part from revenues to the commission from a project or projects, the commission may adopt a resolution or trust indenture or enter into covenants as is customary in the issuance of revenue bonds. The resolution or trust indenture may pledge or assign the revenues from the project or projects, but may not convey or mortgage any project or parts of a project. The resolution or trust indenture may also contain any provisions for protecting and enforcing the rights and remedies of the bond owners as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the commission. The commission may establish fees and charges for the use of any project and covenant with the owners of any bonds to set those fees and charges at a rate sufficient to protect the interest of the owners of the bonds. Any revenue bonds issued by the commission that are payable solely from revenues of the commission must contain a statement to that effect in the form of bond.
(1) bonds that are issued under section 17 of this chapter; or
(2) leases entered into under section 17.1 of this chapter;
that are payable from a special tax levied upon all of the property in the redevelopment district. This section does not apply to bonds or leases that are payable solely from tax proceeds allocated under section
26(b)(2) 26(b)(3) of this chapter, other revenues of the commission, or
any combination of these sources.
(b) The city-county legislative body shall levy each year a special
tax on all of the property of the redevelopment district, in such a
manner as to meet and pay:
(1) the principal of the bonds as they mature, together with all
accruing interest on the bonds; or
(2) lease rental payments under section 17.1 of this chapter.
The tax levied shall be certified to the fiscal officers of the consolidated
city and the county before October 2 in each year. The tax shall be
estimated and entered on the tax duplicate by the county auditor and
shall be collected and enforced by the county treasurer in the same
manner as other state and county taxes are estimated, entered,
collected, and enforced.
(c) As the tax is collected, it shall be accumulated in a separate fund
to be known as the redevelopment district bond fund and shall be
applied to the payment of the bonds as they mature and the interest on
the bonds as it accrues, or to make lease payments and to no other
purpose. All accumulations of the fund before their use for the payment
of bonds and interest or to make lease payments shall be deposited with
the depository or depositories for other public funds of the city in
accordance with the statutes concerning the deposit of public funds,
unless they are invested under IC 5-13.
(d) The tax levies provided for in this section are reviewable by
other bodies vested by law with the authority to ascertain that the levies
are sufficient to raise the amount that, with other amounts available, is
sufficient to meet the payments under the lease payable from the levy
of taxes.
"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) The excess of the proceeds of the property taxes imposed for the assessment date with respect to which the allocation and distribution is made that are attributable to taxes imposed after being approved by the voters in a referendum or local public question conducted after April 30, 2010, not otherwise included in subdivision (1) shall be allocated to and, when collected, paid into the funds of the taxing unit for which the referendum or local public question was conducted.
(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.
(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
(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
(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
(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) (b)(3) shall establish an allocation fund for the
purposes specified in subsection (b)(2) (b)(3) 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) and (b)(2) from property located in the enterprise
zone that exceeds the amount sufficient for the purposes specified in
subsection (b)(2) (b)(3) for the year. A unit that has no obligations,
bonds, or leases payable from allocated tax proceeds under subsection
(b)(2) (b)(3) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
and (b)(2) in the fund derived from property tax proceeds in excess of
those described in subsection (b)(1) and (b)(2) 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
(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 under IC 6-1.1-4, the department of local government finance 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. 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
(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.
[EFFECTIVE JANUARY 1, 2012]: Sec. 35. (a) Notwithstanding
section 26(a) of this chapter, with respect to the allocation and
distribution of property taxes for the accomplishment of a program
adopted under section 32 of this chapter, "base assessed value" means
the net assessed value of all of the land as finally determined for the
assessment date immediately preceding the effective date of the
allocation provision, as adjusted under section 26(g) 26(h) of this
chapter. However, "base assessed value" does not include the value of
real property improvements to the land.
(b) The special fund established under section 26(b) of this chapter
for the allocation area for a program adopted under section 32 of this
chapter may be used only for purposes related to the accomplishment
of the program, including the following:
(1) The construction, rehabilitation, or repair of residential units
within the allocation area.
(2) The construction, reconstruction, or repair of infrastructure
(such as streets, sidewalks, and sewers) within or serving the
allocation area.
(3) The acquisition of real property and interests in real property
within the allocation area.
(4) The demolition of real property within the allocation area.
(5) To provide financial assistance to enable individuals and
families to purchase or lease residential units within the allocation
area. However, financial assistance may be provided only to those
individuals and families whose income is at or below the county's
median income for individuals and families, respectively.
(6) To provide financial assistance to neighborhood development
corporations to permit them to provide financial assistance for the
purposes described in subdivision (5).
(7) For property taxes first due and payable before 2009, to
provide each taxpayer in the allocation area a credit for property
tax replacement as determined under subsections (c) and (d).
However, this credit may be provided by the commission only if
the city-county legislative body establishes the credit by
ordinance adopted in the year before the year in which the credit
is provided.
(c) The maximum credit that may be provided under subsection
(b)(7) to a taxpayer in a taxing district that contains all or part of an
allocation area established for a program adopted under section 32 of
this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts
described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
through IC 6-1.1-21-2(g)(5) (before their repeal) that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of each county's eligible property tax replacement
amount (as defined in IC 6-1.1-21-2 (before its repeal)) for
that year as determined under IC 6-1.1-21-4(a)(1) (before its
repeal) that is attributable to the taxing district; by
(B) the amount determined under STEP ONE.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the taxpayer's taxes (as defined in IC 6-1.1-21-2 (before
its repeal)) levied in the taxing district allocated to the
allocation fund, including the amount that would have been
allocated but for the credit.
(d) Except as provided in subsection (g), the commission may
determine to grant to taxpayers in an allocation area from its allocation
fund a credit under this section, as calculated under subsection (c), by
applying one-half (1/2) of the credit to each installment of taxes (as
defined in IC 6-1.1-21-2 (before its repeal)) that under IC 6-1.1-22-9
are due and payable in a year. Except as provided in subsection (g),
one-half (1/2) of the credit shall be applied to each installment of taxes
(as defined in IC 6-1.1-21-2 (before its repeal)). The commission must
provide for the credit annually by a resolution and must find in the
resolution the following:
(1) That the money to be collected and deposited in the allocation
fund, based upon historical collection rates, after granting the
credit will equal the amounts payable for contractual obligations
from the fund, plus ten percent (10%) of those amounts.
(2) If bonds payable from the fund are outstanding, that there is
a debt service reserve for the bonds that at least equals the amount
of the credit to be granted.
(3) If bonds of a lessor under section 17.1 of this chapter or under
IC 36-1-10 are outstanding and if lease rentals are payable from
the fund, that there is a debt service reserve for those bonds that
at least equals the amount of the credit to be granted.
If the tax increment is insufficient to grant the credit in full, the
commission may grant the credit in part, prorated among all taxpayers.
(e) Notwithstanding section 26(b) of this chapter, the special fund
established under section 26(b) of this chapter for the allocation area
for a program adopted under section 32 of this chapter may only be
used to do one (1) or more of the following:
(1) Accomplish one (1) or more of the actions set forth in section
26(b)(2)(A) 26(b)(3)(A) through 26(b)(2)(H) 26(b)(3)(H) of this
chapter.
(2) Reimburse the consolidated city for expenditures made by the
city in order to accomplish the housing program in that allocation
area.
The special fund may not be used for operating expenses of the
commission.
(f) Notwithstanding section 26(b) of this chapter, the commission
shall, relative to the special fund established under section 26(b) of this
chapter for an allocation area for a program adopted under section 32
of this chapter, do the following before July 15 of each year:
(1) Determine the amount, if any, by which the assessed value of
the taxable property in the allocation area, 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:
(A) make the distribution required under section 26(b)(2)
of this chapter;
(A) to (B) make, when due, principal and interest payments on
bonds described in section 26(b)(2) 26(b)(3) of this chapter;
(B) to (C) pay the amount necessary for other purposes
described in section 26(b)(2) 26(b)(3) of this chapter; and
(C) to (D) reimburse the consolidated city for anticipated
expenditures described in subsection (e)(2).
(2) 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:
(A) 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 section 26(b)(1) of
this chapter; or
(B) 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 section 26(b)(1) of
this chapter.
The county auditor shall allocate to the respective taxing units the
amount, if any, of excess assessed value determined by the
commission.
(g) This subsection applies to an allocation area only to the extent
that the net assessed value of property that is assessed as residential
property under the rules of the department of local government finance
is not included in the base assessed value. If property tax installments
with respect to a homestead (as defined in IC 6-1.1-20.9-1 (before its
repeal)) are due in installments established by the department of local
government finance under IC 6-1.1-22-9.5, each taxpayer subject to
those installments in an allocation area is entitled to an additional
credit under subsection (d) for the taxes (as defined in IC 6-1.1-21-2
(before its repeal)) due in installments. The credit shall be applied in
the same proportion to each installment of taxes (as defined in
IC 6-1.1-21-2 (before its repeal)).
(1) the total cost of all land, rights-of-way, and other property to be acquired and redeveloped;
(2) all reasonable and necessary architectural, engineering, legal, financing, accounting, advertising, bond discount, and supervisory expenses related to the acquisition and redevelopment of the property or the issuance of bonds;
(3) capitalized interest permitted in this chapter and a debt service reserve for the bonds, to the extent that the redevelopment commission determines that a reserve is reasonably required;
(4) the total cost of all clearing and construction work provided for in the resolution; and
(5) expenses that the commission is required or permitted to pay under IC 8-23-17.
(b) If a commission plans to acquire different parcels of land or let different contracts for redevelopment work at approximately the same time, whether under one (1) or more resolutions, a commission may provide for the total cost in one (1) issue of bonds.
(c) The bonds must be dated as set forth in the bond resolution and negotiable subject to the requirements concerning registration of the bonds. The resolution authorizing the bonds must state:
(1) the denominations of the bonds;
(2) the place or places at which the bonds are payable; and
(3) the term of the bonds, which may not exceed:
(A) fifty (50) years, for bonds issued before July 1, 2008; or
(B) twenty-five (25) years, for bonds issued after June 30, 2008.
The resolution may also state that the bonds are redeemable before maturity with or without a premium, as determined by the commission.
(d) The commission shall certify a copy of the resolution authorizing the bonds to the fiscal officer of the excluded city, 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.
(e) The bonds shall be executed by the excluded city executive and attested by the excluded city fiscal officer. The interest coupons, if any, shall be executed by the facsimile signature of the excluded city fiscal officer.
(f) The bonds are exempt from taxation as provided by IC 6-8-5.
(g) The excluded city fiscal officer shall sell the bonds according to law. Bonds payable solely or in part from tax proceeds allocated under section
(h) The bonds are not a corporate obligation of the excluded city but are an indebtedness of the redevelopment district. The bonds and interest are payable:
(1) from a special tax levied upon all of the property in the redevelopment district, as provided by section 50 of this chapter;
(2) from the tax proceeds allocated under section
(3) from other revenues available to the commission; or
(4) from a combination of the methods described in subdivisions (1) through (3);
and from any revenues of the designated project. If the bonds are payable solely from the tax proceeds allocated under section
(i) Proceeds from the sale of the bonds may be used to pay the cost of interest on the bonds for a period not to exceed five (5) years from the date of issue.
(j) The laws relating to the filing of petitions requesting the issuance of bonds and the right of taxpayers and voters to remonstrate against,
or vote on, the issuance of bonds applicable to bonds issued under this
chapter do not apply to bonds payable solely or in part from tax
proceeds allocated under section 53(b)(2) 53(b)(3) of this chapter,
other revenues of the commission, or any combination of these sources.
(k) If bonds are issued under this chapter that are payable solely or
in part from revenues to a commission from a project or projects, a
commission may adopt a resolution or trust indenture or enter into
covenants as is customary in the issuance of revenue bonds. The
resolution or trust indenture may pledge or assign the revenues from
the project or projects but may not convey or mortgage any project or
parts of a project. The resolution or trust indenture may also contain
any provisions for protecting and enforcing the rights and remedies of
the bond owners as may be reasonable and proper and not in violation
of law, including covenants setting forth the duties of the commission.
The commission may establish fees and charges for the use of any
project and covenant with the owners of bonds to set those fees and
charges at a rate sufficient to protect the interest of the owners of the
bonds. Any revenue bonds issued by the commission that are payable
solely from revenues of the commission must contain a statement to
that effect in the form of bond.
(1) bonds that are issued under section 45 of this chapter; or
(2) leases entered into under section 46 of this chapter;
that are payable from a special tax levied upon all of the property in the redevelopment district. This section does not apply to bonds or leases that are payable solely from tax proceeds allocated under section
(b) The excluded city legislative body shall levy each year a tax on all of the property of the redevelopment district in such a manner as to meet and pay:
(1) the principal of the bonds as they mature, together with all accruing interest on the bonds; or
(2) lease rental payments under section 46 of this chapter.
The tax levied shall be certified to the fiscal officers of the excluded city and the county before October 2 in each year. The tax shall be estimated and entered on the tax duplicate by the county auditor and shall be collected and enforced by the county treasurer in the same manner as other state and county taxes are estimated, entered, collected, and enforced.
(c) As the tax is collected, it shall be accumulated in a separate fund to be known as the redevelopment district bond fund and shall be applied to the payment of the bonds as they mature and the interest on the bonds as it accrues, or to make lease payments, and to no other purpose. All accumulations of the fund before use for the payment of bonds and interest or to make lease payments shall be deposited with the depository or depositories for other public funds of the city in accordance with the statutes concerning the deposit of public funds, unless they are invested under IC 5-13.
(d) The tax levies provided for in this section are reviewable by other bodies vested by law with the authority to ascertain that the levies are sufficient to raise the amount that, with other amounts available, is sufficient to meet the payments under the lease payable from the levy of taxes.
"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
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) The excess of the proceeds of the property taxes imposed
for the assessment date with respect to which the allocation
and distribution is made that are attributable to taxes
imposed after being approved by the voters in a referendum
or local public question conducted after April 30, 2010, not
otherwise included in subdivision (1) shall be allocated to and,
when collected, paid into the funds of the taxing unit for
which the referendum or local public question was conducted.
(2) (3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision subdivisions
(1) and (2) 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) (4) 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) (3)
plus the amount necessary for other purposes described in
subdivision (2), (3) 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). (3).
(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) (b)(3) may, subject to subsection (b)(3), (b)(4),
be irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2). (b)(3).
(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) (b)(3) shall establish an allocation fund for the
purposes specified in subsection (b)(2) (b)(3) 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) and (b)(2) from property located in the enterprise
zone that exceeds the amount sufficient for the purposes specified in
subsection (b)(2) (b)(3) for the year. A unit that has no obligations,
bonds, or leases payable from allocated tax proceeds under subsection
(b)(2) (b)(3) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
and (b)(2) in the fund derived from property tax proceeds in excess of
those described in subsection (b)(1) and (b)(2) 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). (b)(3). However, where reference is made in
subsection (b)(2) (b)(3) 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 under IC 6-1.1-4, the department of
local government finance 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. 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) (b)(3) than would
otherwise have been received if the general reassessment 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) The excess of the proceeds of the property taxes imposed
for the assessment date with respect to which the allocation
and distribution are made that are attributable to taxes
imposed after being approved by the voters in a referendum
or local public question conducted after April 30, 2010, not
otherwise included in subdivision (1) shall be allocated to and,
when collected, paid into the funds of the taxing unit for
which the referendum or local public question was conducted.
(2) (3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision subdivisions
(1) and (2) 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 expenses incurred by the reuse authority, any other
department of the unit, or a department of another
governmental entity for local public improvements or
structures that are in the allocation area or directly serving or
benefiting the allocation area, including expenses for the
operation and maintenance of these local public improvements
or structures if the reuse authority determines those operation
and maintenance expenses are necessary or desirable to carry
out the purposes of this chapter.
(F) 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.
Except as provided in clause (E), the allocation fund may not be
used for operating expenses of the reuse authority.
(3) (4) 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) (3) plus the amount necessary for other
purposes described in subdivision (2). (3).
(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
(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
(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
purposes specified in subsection (b)(2) (b)(3) 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) (b)(3) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
and (b)(2) 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), (b)(3), except
that where reference is made in subsection (b)(2) (b)(3) 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 under IC 6-1.1-4, the
department of local government finance 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. 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) (b)(3) than
would otherwise have been received if the general reassessment 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) The excess of the proceeds of the property taxes imposed
for the assessment date with respect to which the allocation
and distribution is made that are attributable to taxes
imposed after being approved by the voters in a referendum
or local public question conducted after April 30, 2010, not
otherwise included in subdivision (1) shall be allocated to and,
when collected, paid into the funds of the taxing unit for
which the referendum or local public question was conducted.
(2) (3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision subdivisions
(1) and (2) 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) (before their repeal) 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 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) 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 (before its repeal)) 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) (4) 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) (3) plus the amount necessary for other
purposes described in subdivision subdivisions (2) and (3).
(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) (3) 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
(before its repeal).
(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) (b)(3) may, subject to subsection (b)(3),
(b)(4), be irrevocably pledged by the military base development district
for payment as set forth in subsection (b)(2). (b)(3).
(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
(h) After each general reassessment under IC 6-1.1-4, the department of local government finance 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 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) (b)(3) than would
otherwise have been received if the general reassessment 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) apply to the entire certified technology park; and
(2) require that any property tax on taxable property subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes in the certified technology park be allocated and distributed as provided in subsections (b) and (c).
(b) Except as otherwise provided in this section:
(1) the proceeds of the taxes attributable to the lesser of:
shall be allocated and, when collected, paid into the funds of the respective taxing units; and
(2) the excess of the proceeds of the property taxes imposed for the assessment date with respect to which the allocation and distribution is made that are attributable to taxes imposed after being approved by the voters in a referendum or local public question conducted after April 30, 2010, not otherwise included in subdivision (1) shall be allocated to and, when collected, paid into the funds of the taxing unit for which the referendum or local public question was conducted.
(c) Except as provided in subsection (d), all the property tax proceeds that exceed those described in subsection (b) shall be allocated to the redevelopment commission for the certified technology park and, when collected, paid into the certified technology park fund established under section 23 of this chapter.
(d) Before July 15 of each year, the redevelopment commission shall do the following:
(1) Determine the amount, if any, by which the property tax proceeds to be deposited in the certified technology park fund will exceed the amount necessary for the purposes described in section 23 of this chapter.
(2) Provide a written notice to the county auditor, the fiscal body of the county or municipality that established the redevelopment commission, 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:
(A) state the amount, if any, of excess tax proceeds that the redevelopment commission has determined may be allocated to the respective taxing units in the manner prescribed in subsection (c); or
(B) 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 redevelopment commission may not authorize an allocation of property tax proceeds under this subdivision if to do so would endanger the interests of the holders of bonds described in section 24 of this chapter.
(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 certified technology park effective on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable property in the certified technology park, 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 taxable property as valued without regard to this section; or
(2) the base assessed value.
IC 8-22-3.5-9
IC 36-7-14-39
IC 36-7-14-48
IC 36-7-15.1-26
IC 36-7-15.1-35
IC 36-7-15.1-53
IC 36-7-30-25
IC 36-7-30.5-30
IC 36-7-32-17.
(b) Notwithstanding the effective date of amendments made by this act, an entity determining in 2011, under a law listed in subsection (a), the amount, if any, by which property taxes payable to an allocation fund or area in 2012 will exceed the amount of property taxes necessary to carry out the purposes of the allocation fund or area for the purpose of distributing the excess amount to taxing units located in the allocation area in 2012 shall calculate the amount after deducting the amount of distributions attributable to property taxes imposed after being approved by the voters in a referendum or local public question conducted after April 30, 2010, that are required by this act to be distributed after December 31, 2011, to the taxing unit for which the referendum or local public question was conducted.
(c) This SECTION expires January 1, 2013.
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