§ 6-1.1-39-5 — Allocation and distribution of property taxes; assessed value of taxable property; rules; forms

Indiana § 6-1.1-39-5

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 39: Economic Development Districts

Text

Note: This version of section amended by P.L.214-2019, SEC.22.
See also following version of this section amended by P.L.257-2019,
SEC.68.
Sec. 5. (a) A declaratory ordinance adopted under
section 2 of this chapter and confirmed under section 3 of this chapter
must include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. The allocation provision must apply to the entire economic
development district. The allocation provisions 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 economic development district 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. However, if the effective date of the
allocation provision of a declaratory ordinance is after March 1,
1985, and before January 1, 1986, and if an improvement to
property was partially completed on March 1, 1985, the unit may
provide in the declaratory ordinance that the taxes attributable to
the assessed value of the property as finally determined for March
1, 1984, shall be allocated to and, when collected, paid into the
funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of the
property tax proceeds in excess of those described in subdivision
(1), as specified in the declaratory ordinance, shall be allocated to
the unit for the economic development district and, when
collected, paid into a special fund established by the unit for that
economic development district that may be used only to pay the
principal of and interest on obligations owed by the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
industrial development programs in, or serving, that economic
development district. The amount not paid into the special fund
shall be paid to the respective units in the manner prescribed by
subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on which
the obligations can be redeemed) on obligations owed by the unit
under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
of industrial development programs in, or serving, that economic
development district, money in the special fund in excess of that
amount shall be paid to the respective taxing units in the manner
prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(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
economic development district that is annexed by any taxing unit after
the effective date of the allocation provision of the declaratory
ordinance 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) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated upon
or in, or added to, the economic development district effective on the
next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all taxable
property in the economic development district, for purposes of tax
limitation, property tax replacement, and formulation 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.
(f) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each reassessment of a group of parcels 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 on the property tax proceeds allocated
to the 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 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.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on depreciable
personal property that the unit has by ordinance allocated to the
economic development district. However, the ordinance may not
limit the allocation to taxes on depreciable personal property with
any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to an
economic development district property taxes imposed under IC 6-1.1
on depreciable personal property that has a useful life in excess of eight
(8) years, the ordinance continues in effect until an ordinance is
adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means, subject to
subsection (i):
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for any assessment date after the effective date
of the allocation provision.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997.
(i) If a fiscal body confirms, or modifies and confirms, an ordinance
under section 3 of this chapter and the fiscal body makes either of the
filings required under section 3(d) of this chapter after the first
anniversary of the effective date of the allocation provision in the
ordinance, the auditor of the county in which the unit 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.

Legislative History

As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.16; P.L.86-1987, SEC.5; P.L.255-1997(ss), SEC.6; P.L.90-2002, SEC.272; P.L.4-2005, SEC.46; P.L.154-2006, SEC.56; P.L.146-2008, SEC.296; P.L.112-2012, SEC.48; P.L.86-2018, SEC.65; P.L.214-2019, SEC.22.