§ 36-7-26-23 — Net increment for preceding fiscal year; sales tax increment financing fund; district business disclosure of information

(a) Before the first business day in October
of each year, the board shall require the department to calculate the net
increment for the preceding state fiscal year. The department shall
transmit to the board a statement as to the net increment in sufficient
time to permit the board to review the calculation and permit the
transfers required by this section to be made on a timely basis.
Taxpayers operating in the district shall report annually, in the manner
and in the form prescribed by the department, information that the
department determines necessary to calculate the net increment. A
taxpayer operating in the district that files a consolidated tax return
with the department also shall file annually an informational return
with the department for each business location of the taxpayer within
the district. If a taxpayer fails to report the information required by this
section or file an informational return required by this section, the
department shall use the best information available in calculating the
net increment.
(b) There is established a sales tax increment financing fund to be
administered by the treasurer of state. The fund is comprised of two (2)
accounts called the net increment account and the credit account.
(c) On the first business day in October of each year, that portion of
the net increment calculated under subsection (a) that is needed:
(1) to pay debt service on the bonds issued under section 24 of
this chapter or to pay lease rentals under section 24 of this
chapter; and
(2) to establish and maintain a debt service reserve established by
the commission or by a lessor that provides local public
improvements to the commission;
shall be transferred to and deposited in the fund and credited to the net
increment account. Money credited to the net increment account is
pledged to the purposes described in subdivisions (1) and (2), subject
to the other provisions of this chapter.
(d) On the first business day of October in each year, the remainder
of:
(1) eighty percent (80%) of the gross increment; minus
(2) the amount credited to the net increment account on the same
date;
shall be transferred and credited to the credit account.
(e) The remainder of:
(1) the gross increment; minus
(2) the amounts credited to the net increment account and the
credit account;
shall be deposited by the state comptroller as other gross retail and use
taxes are deposited.
(f) A city described in section 1(2), 1(3), or 1(4) of this chapter may
receive not more than fifty percent (50%) of the net increment each
year. During the time a district exists in a city described in section 1(3)
or 1(4) of this chapter, not more than a total of one million dollars
($1,000,000) of net increment may be paid to the city described in
section 1(3) or 1(4) of this chapter. During each year that a district
exists in a city described in section 1(2) of this chapter, not more than
one million dollars ($1,000,000) of net increment may be paid to the
city described in section 1(2) of this chapter.
(g) The state comptroller shall disburse all money in the fund that
is credited to the net increment account to the commission in equal
semiannual installments on November 30 and May 31 of each year.

Legislative History

As added by P.L.35-1990, SEC.63. Amended by P.L.185-2001, SEC.8 and P.L.291-2001, SEC.202; P.L.177-2002, SEC.15 and P.L.178-2002, SEC.121; P.L.261-2013, SEC.43; P.L.9-2024, SEC.548.