§ 36-8-19-7.5 — Local option and excise taxes; allocation to economic development; distributions to participating units; clerical and mathematical adjustments

Indiana § 36-8-19-7.5

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 8: PUBLIC SAFETY
• Ch. 19: Fire Protection Territories

Text

5. (a) This section applies to:
(1) local income tax distributions; and
(2) excise tax distributions;
made after December 31, 2009.
(b) Except as provided in subsection (c), for purposes of allocating
local income tax distributions that are based on a taxing unit's
allocation amount before January 1, 2028, or that an adopting body
allocates under IC 6-3.6-6 to economic development before January 1,
2028, or excise tax distributions that are distributed based on the
amount of a taxing unit's property tax levies, each participating unit in
a territory is considered to have imposed a part of the property tax levy
imposed for the territory. The part of the property tax levy imposed for
the territory for a particular year that shall be attributed to a
participating unit is equal to the amount determined in the following
STEPS:
STEP ONE: Determine the total amount of all property taxes
imposed by the participating unit in the year before the year in
which a property tax levy was first imposed for the territory.
STEP TWO: Determine the sum of the STEP ONE amounts for
all participating units.
STEP THREE: Divide the STEP ONE result by the STEP TWO
result.
STEP FOUR: Multiply the STEP THREE result by the property
tax levy imposed for the territory for the particular year.
(c) This subsection applies to a determination under subsection (b)
made in calendar years 2018, 2019, and 2020. The department of local
government finance may, for distributions made in calendar year 2022,
adjust the allocation amount determined under subsection (b) to correct
for any clerical or mathematical errors made in any determination for
calendar year 2018, 2019, or 2020, as applicable, including the
allocation amount for any taxing unit whose distribution was affected
by the clerical or mathematical error in those years. The department of
local government finance may apply the adjustment to the allocation
amount for a taxing unit over a period not to exceed ten (10) years in
order to offset the effect of the adjustment on the distribution.
(d) This subsection applies to a territory established by an ordinance
or a resolution adopted under this chapter after December 31, 2024.
Before additional revenue from a local income tax rate may be
allocated to the provider unit of a new territory due to an increased
property tax levy resulting from the establishment of the territory, the
county fiscal body must adopt an ordinance or resolution approving the
allocation.

Legislative History

As added by P.L.182-2009(ss), SEC.442. Amended by P.L.197-2016, SEC.147; P.L.247-2017, SEC.33; P.L.38-2021, SEC.100; P.L.68-2025, SEC.241.