Note: This version of section effective until 7-1-2027. See also
following version of this section, effective 7-1-2027.
Sec. 30.
(a)The following definitions apply
throughout this section:
(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, subject to subsection (i):
(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 a
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Note: This version of section effective until 7-1-2027. See also
following version of this section, effective 7-1-2027.
Sec. 30. (a) The following definitions apply
throughout this section:
(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, subject to subsection (i):
(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, within the allocation area, as finally determined for the
current assessment date.
(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.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in 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
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 benefiting 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 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.
(H) Expend money and provide financial assistance as
authorized in section 15(26) of this chapter.
The allocation fund may not be used for operating expenses of the
development authority.
(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 (3) plus the amount necessary for other purposes
described in 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 (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)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the military base development district for
payment as set forth in subsection (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 (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. The
development authority shall, until the end of the enterprise zone phase
out period, deposit each year in the special zone fund any amount in the
allocation fund derived from property tax proceeds in excess of those
described in subsection (b)(1) and (b)(2) from property located in the
enterprise zone that exceeds the amount sufficient for the purposes
specified in subsection (b)(3) for the year. The amount sufficient for
purposes specified in subsection (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 development authority that does not have
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (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 development authority 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 for other purposes specified in
subsection (b)(3), except that where reference is made in subsection
(b)(3) to an 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 reassessment of real property in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area 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)(3) than would otherwise
have been received if the reassessment under the county's reassessment
plan 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) If the development authority adopts a declaratory resolution or
an amendment to a declaratory resolution that contains an allocation
provision and the development authority makes either of the filings
required under section 17(e) or 18(f) of this chapter after the first
anniversary of the effective date of the allocation provision, the auditor
of the county in which the military base development district is located
shall compute the base assessed value for the allocation area using the
assessment date immediately preceding the later of:
(1) the date on which the documents are filed with the county
auditor; or
(2) the date on which the documents are filed with the department
of local government finance.
(j) For an allocation area established after June 30, 2024,
"residential property" refers to the assessed value of property that is
allocated to the one percent (1%) homestead land and improvement
categories in the county tax and billing software system, along with the
residential assessed value as defined for purposes of calculating the
rate for the local income tax property tax relief credit designated for
residential property under IC 6-3.6-5-6(d)(3).