§ 6-3.6-6-12 — Allocation amount of certified shares; civil taxing units

Indiana § 6-3.6-6-12

• Jurisdiction: Indiana
• Art. 3.6: LOCAL INCOME TAXES
• Ch. 6: Expenditure Rate

Text

Note: This version of section amended by P.L.230-2025, SEC.82.
See also following repeal of this section by P.L.68-2025, SEC.136,
effective 7-1-2027.
Sec. 12. (a) Except as provided in this chapter and IC 6-3.6-11, this section applies to an allocation of certified shares in all
counties.
(b) The allocation amount of a civil taxing unit during a calendar
year must be based on the amounts for the calendar year preceding the
distribution year and is equal to the amount determined using the
following formula:
STEP ONE: Determine the sum of the total property taxes being
imposed by the civil taxing unit.
STEP TWO: Determine the sum of the following:
(A) Amounts appropriated from property taxes to pay the
principal of or interest on any debenture or other debt
obligation issued after June 30, 2005, other than an obligation
described in subsection (c).
(B) Amounts appropriated from property taxes to make
payments on any lease entered into after June 30, 2005, other
than a lease described in subsection (d).
STEP THREE: Subtract the STEP TWO amount from the STEP
ONE amount.
STEP FOUR: In the case of a qualifying municipality as defined
in IC 6-1.1-18.5-31(d) that is located in a county described in IC 6-1.1-18.5-31(a), and only for the allocation of certified shares in
2027 and 2028, STEP THREE multiplied by seventy percent
(70%).
STEP FIVE: Determine the sum of:
(A) the:
(i) STEP THREE amount; or
(ii) STEP FOUR amount in the case of a qualifying
municipality as defined in IC 6-1.1-18.5-31(d) that is located
in a county described in IC 6-1.1-18.5-31(a);
(B) the civil taxing unit's certified shares plus the amount
distributed under section 3(a)(2) of this chapter for the previous
calendar year; plus
(C) in the case of a qualifying municipality as defined in IC 6-1.1-18.5-31(d) that is located in a county described in IC 6-1.1-18.5-31(a), and only for the allocation of certified shares
in 2026, the amount of the levy for the municipality's debt
service and lease rental funds that was certified in 2025
multiplied by fifty-four and five-tenths percent (54.5%). This
clause expires January 1, 2027.
The allocation amount is subject to adjustment as provided in IC 36-8-19-7.5.
(c) Except as provided in this subsection, an appropriation for the
calendar year preceding the distribution year from property taxes to
repay interest and principal of a debt obligation is not deducted from
the allocation amount for a civil taxing unit if:
(1) the debt obligation was issued; and
(2) the proceeds were appropriated from property taxes;
to refund or otherwise refinance a debt obligation or a lease issued
before July 1, 2005. However, an appropriation from property taxes
related to a debt obligation issued after June 30, 2005, is deducted if
the debt extends payments on a debt or lease beyond the time in which
the debt or lease would have been payable if the debt or lease had not
been refinanced or increases the total amount that must be paid on a
debt or lease in excess of the amount that would have been paid if the
debt or lease had not been refinanced. The amount of the deduction is
the annual amount for each year of the extension period or the annual
amount of the increase over the amount that would have been paid.
(d) Except as provided in this subsection, an appropriation for the
calendar year preceding the distribution year from property taxes to
make payments on a lease is not deducted from the allocation amount
for a civil taxing unit if:
(1) the lease was issued; and
(2) the proceeds were appropriated from property taxes;
to refinance a debt obligation or lease issued before July 1, 2005.
However, an appropriation from property taxes related to a lease
entered into after June 30, 2005, is deducted if the lease extends
payments on a debt or lease beyond the time in which the debt or lease
would have been payable if the debt or lease had not been refinanced
or increases the total amount that must be paid on a debt or lease in
excess of the amount that would have been paid if the debt or lease had
not been refinanced. The amount of the deduction is the annual amount
for each year of the extension period or the annual amount of the
increase over the amount that would have been paid.

Legislative History

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.19; P.L.247-2017, SEC.20; P.L.230-2025, SEC.82.