§ 36-7-40-4 — Adoption of ordinance establishing economic enhancement district; ordinance requirements

After conducting a hearing under section 3.5
of this chapter, the legislative body of a city may adopt an ordinance on
or before December 31, 2024, establishing a special assessment district
known as the economic enhancement district. The adopting ordinance
must contain the following:
(1) The boundaries of the proposed economic enhancement
district, which may exceed the boundaries of the Mile Square area
of the city. However, the boundary must be the same distance in
length on all sides compared to the center of the city, but may not
exceed a two (2) mile square.
(2) A finding that the proposed economic enhancement projects
will provide special benefits to all property owners of the
economic enhancement district.
(3) A finding that excludes the following types of properties from
the assessment of benefits:
(A) Any property that receives a homestead standard deduction
under IC 6-1.1-12-37.
(B) Any property that is used for multi-unit residential housing.
(C) Any property that is used for single-unit residential housing.
However, notwithstanding the exclusion provisions, an owner of
property described in clause (A), (B), or (C) and the owner of any
property located outside the economic enhancement district may
voluntarily opt-in to include their property in the economic
enhancement district assessment of benefits by notifying the
county auditor in writing. If a property that is opted into the
economic enhancement district assessment of benefits is
subsequently sold, the new owner of the property shall have the
opportunity to determine whether or not they will opt-in to
include the property in the economic enhancement district
assessment of benefits. A determination to opt-in to the economic
enhancement district assessment of benefits is binding until a
property is sold.
(4) The formula to be used for the assessment of benefits, which
shall be as follows:
(A) The annual special benefits assessment shall be calculated
in a manner that will generate an amount not to exceed five
million five hundred thousand dollars ($5,500,000).
(B) For each taxable property in the district, the special benefits
assessment shall be calculated as follows:
(i) Residential properties shall be assessed a flat fee of two
hundred fifty dollars ($250) each.
(ii) All other nonresidential taxable property shall be assessed
at a rate equal to the total budget amount minus the total
amount raised from residential properties divided by the total
assessed value of all the nonresidential taxable property in
the district. This fraction shall be considered the economic
enhancement district assessment rate. The economic
enhancement district assessment rate shall be multiplied by
the assessed value of any nonresidential taxable property to
determine that property's assessment.
(5) An expiration date of the economic enhancement district,
which may not be later than ten (10) years from the date of the
adoption of the ordinance and may not be renewed. The adopting
ordinance must establish an economic enhancement district
board.

Legislative History

As added by P.L.201-2023, SEC.279. Amended by P.L.9-2024, SEC.555; P.L.136-2024, SEC.55; P.L.169-2024, SEC.3.