§ 20-46-1-22 — Referendum revenue; application; county auditor distribution determination; eligibility; distribution amount

(a) This section applies to revenue received
from a referendum levy if both of the following apply:
(1) The:
(A) governing body of the school corporation approves the
referendum levy in a resolution adopted under section 8 or 8.5
of this chapter; and
(B) resulting referendum levy is imposed for the first time with
property taxes first due and payable in a calendar year
beginning after December 31, 2027.
(2) The number of students who have legal settlement in the
school corporation but attend a charter school, excluding virtual
charter schools and adult high schools, and receive not more than
fifty percent (50%) virtual instruction is at least the greater of:
(A) one hundred (100) students; or
(B) two percent (2%) of the school corporation's spring ADM
count, excluding students who receive more than fifty percent
(50%) virtual instruction.
(b) As used in this section, "eligible charter school" means a charter
school attended by a student who:
(1) has legal settlement in a school corporation that imposes a
referendum levy under this chapter; and
(2) receives not more than fifty percent (50%) virtual instruction.
However, the term does not include a virtual charter school or an adult
high school.
(c) The following schools are not eligible to receive, and may not be
considered in a calculation made for purposes of, a distribution under
this section:
(1) A virtual charter school.
(2) An adult high school.
(d) Subject to subsections (j) and (l), the county auditor in the
county in which the school corporation is located shall distribute to
each eligible charter school, in the manner provided under this section,
an amount of revenue received from a tax levy imposed by a school
corporation under this chapter unless the charter school elects to not
participate in the referendum under section 8(h) of this chapter.
(e) For the purposes of the calculations made in this section, each
eligible charter school that has entered into an agreement with a school
corporation to participate as a participating innovation network charter
school under IC 20-25.7-5 is considered to have an ADM that is
separate from the school corporation.
(f) Not later than January 1, 2028, and not later than January 1 of
each year thereafter, the department, in consultation with the
department of local government finance, shall determine, for each
school corporation, the corresponding percentages of revenue received
from the tax levy that must be distributed among the school corporation
and each eligible charter school according to the following formula:
STEP ONE: Determine, for each eligible charter school, the
number of students who:
(A) have legal settlement within the school corporation;
(B) are currently included in the fall ADM count for the charter
school; and
(C) receive not more than fifty percent (50%) virtual
instruction.
STEP TWO: Determine the sum of:
(A) the aggregate of the STEP ONE results for all eligible
charter schools with respect to the school corporation; plus
(B) the fall ADM count for the school corporation for students
receiving not more than fifty percent (50%) virtual instruction.
STEP THREE: For each eligible charter school, determine the
result of:
(A) the applicable STEP ONE amount; divided by
(B) the STEP TWO amount;
expressed as a percentage.
STEP FOUR: Determine the sum of all the amounts computed
under STEP THREE and subtract the result from one hundred
percent (100%).
(g) The department shall provide to the county auditor, immediately
after calculation under subsection (g):
(1) each eligible charter school and the eligible charter school's
corresponding percentage calculated under STEP THREE of
subsection (f); and
(2) the percentage calculated under STEP FOUR of subsection (f)
for the school corporation.
(h) Subject to subsections (k) and (m), when the county auditor
distributes property tax revenue, the county auditor shall distribute to
the school corporation and each eligible charter school the amount
determined in the last STEP of the following STEPS:
STEP ONE: Determine the amount collected in the most recent
installment period by the school corporation from the school
corporation's referendum levy imposed under this chapter.
STEP TWO: To determine the distribution for the school
corporation and each eligible charter school, determine the result
of:
(A) the sum of:
(i) the STEP ONE result; plus
(ii) any amount withheld in the previous year under
subsection (k); multiplied by
(B) the following percentage:
(i) In the case of an eligible charter school, the charter
school's percentage under STEP THREE of subsection (f).
(ii) In the case of the school corporation, the school
corporation's percentage under STEP FOUR of subsection (f).
(i) Not later than August 15, 2027, and not later than August 15 of
each calendar year thereafter, the department shall provide to each
school corporation and each eligible charter school an estimate of the
amount of property tax levy revenue the school corporation and eligible
charter school are expected to receive under this section in the
subsequent calendar year based on the most recent fall ADM count.
(j) This subsection applies beginning with distributions of property
tax revenue under this section in 2028 and thereafter. In order to
receive a distribution under this section, the governing body of an
eligible charter school shall, not later than October 15, 2027, and not
later than October 15 of each calendar year thereafter, adopt a budget
for the current school year. Not later than ten (10) days before its
adoption, the budget must be fixed and presented to the charter board
in a public meeting in the county in which the eligible charter school
is incorporated. Not later than November 1, 2027, and not later than
November 1 of each calendar year thereafter, the governing body of the
charter school shall submit:
(1) the budget that is adopted under this subsection;
(2) the dates on which each requirement under this subsection
were met; and
(3) a statement from the governing body of the charter school
attesting that the dates provided in subdivision (2) are true and
accurate and that the budget was properly adopted under this
subsection;
to the charter authorizer for review and to the department of local
government finance to be posted publicly on the computer gateway
under IC 6-1.1-17-3.
(k) If an eligible charter school does not satisfy the requirements of
subsection (j) to receive distributions under this section during a
calendar year, as determined by the department of local government
finance, the eligible charter school may not receive a distribution of
property tax revenue in that calendar year and the county auditor shall
withhold the eligible charter school's distribution amount. The
department of local government finance's determination of compliance
consists only of a confirmation that the adopted budget and attestation
statement are submitted not later than the applicable date under
subsection (j). Any distribution amount withheld under this subsection
shall be:
(1) added to the property tax revenue collections as described in
STEP TWO of subsection (h); and
(2) distributed among the school corporation and eligible charter
schools according to subsection (h);
in the calendar year that immediately follows the calendar year in
which the distribution amount was withheld.
(l) A charter school is not eligible for a distribution under this
section from property tax revenue collected from a particular
referendum levy if the charter school does not have a certified fall
ADM count in the calendar year immediately preceding the calendar
year in which the public question for the referendum appears on the
ballot.

Legislative History

As added by P.L.68-2025, SEC.222.