(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, subject to section 26(j) of this
chapter, 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(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, in
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(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, subject to section 26(j) of this
chapter, 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(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)(3)(A) through 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 June 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;
(B) make, when due, principal and interest payments on bonds
described in section 26(b)(3) of this chapter;
(C) pay the amount necessary for other purposes described in
section 26(b)(3) of this chapter; and
(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, 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, and (in an electronic format) the department of
local government finance. 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)).