Introduced Version

SENATE BILL No. 372_____

DIGEST OF INTRODUCED BILL

Citations Affected: IC 6-1.1-21.2-8; IC 36-7; IC 36-7.5-4.5-18.

Synopsis: Taxes for public safety in allocation areas. Provides thatproperty tax proceeds in a tax increment financing allocation areaestablished after April 30, 2020, that are attributable to the portion ofthe assessed value that represents the percentage of property taxrevenue that was budgeted by taxing units for police or fire services inthe allocation area immediately preceding the effective date of theallocation provision shall be allocated and paid into the funds of thoserespective taxing units. Makes corresponding changes.

Effective: May 1, 2020.

Buck

January 13, 2020, read first time and referred to Committee on Tax and Fiscal Policy.

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Introduced

Second Regular Session of the 121st General Assembly (2020)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the IndianaConstitution) is being amended, the text of the existing provision will appear in this style type,additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutionalprovision adopted), the text of the new provision will appear in this style type. Also, theword NEW will appear in that style type in the introductory clause of each SECTION that addsa new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflictsbetween statutes enacted by the 2019 Regular Session of the General Assembly.

SENATE BILL No. 372

A BILL FOR AN ACT to amend the Indiana Code concerningtaxation.

Be it enacted by the General Assembly of the State of Indiana:

1 SECTION 1. IC 6-1.1-21.2-8, AS AMENDED BY P.L.203-2011,2 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE3 MAY 1, 2020]: Sec. 8. As used in this chapter, "special fund" means:4 (1) the special funds referred to in IC 6-1.1-39-5;5 (2) the special funds referred to in IC 8-22-3.5-9(e);6 (3) the allocation fund referred to in IC 36-7-14-39(b)(3);7 IC 36-7-14-39(b)(4);8 (4) the allocation fund referred to in IC 36-7-14.5-12.5(d);9 (5) the special fund referred to in IC 36-7-15.1-26(b)(3);

10 IC 36-7-15.1-26(b)(4);11 (6) the special fund referred to in IC 36-7-15.1-53(b)(3);12 (7) the allocation fund referred to in IC 36-7-30-25(b)(3); or13 (8) the allocation fund referred to in IC 36-7-30.5-30(b)(3).14 SECTION 2. IC 36-7-14-15.5, AS AMENDED BY P.L.119-2012,15 SECTION 206, IS AMENDED TO READ AS FOLLOWS16 [EFFECTIVE MAY 1, 2020]: Sec. 15.5. (a) This section applies to a17 county having a population of more than two hundred fifty thousand

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1 (250,000) but less than two hundred seventy thousand (270,000).2 (b) In adopting a declaratory resolution under section 15 of this3 chapter, a redevelopment commission may include a provision stating4 that the redevelopment project area is considered to include one (1) or5 more additional areas outside the boundaries of the redevelopment6 project area if the redevelopment commission makes the following7 findings and the requirements of subsection (c) are met:8 (1) One (1) or more taxpayers presently located within the9 boundaries of the redevelopment project area are expected within

10 one (1) year to relocate all or part of their operations outside the11 boundaries of the redevelopment project area and have expressed12 an interest in relocating all or part of their operations within the13 boundaries of an additional area.14 (2) The relocation described in subdivision (1) will contribute to15 the continuation of the conditions described in IC 36-7-1-3 in the16 redevelopment project area.17 (3) For purposes of this section, it will be of public utility and18 benefit to include the additional areas as part of the19 redevelopment project area.20 (c) Each additional area must be designated by the redevelopment21 commission as a redevelopment project area or an economic22 development area under this chapter.23 (d) Notwithstanding section 3 of this chapter, the additional areas24 shall be considered to be a part of the redevelopment special taxing25 district under the jurisdiction of the redevelopment commission. Any26 excess property taxes that the commission has determined may be paid27 to taxing units under section 39(b)(4) 39(b)(5) of this chapter shall be28 paid to the taxing units from which the excess property taxes were29 derived. All powers of the redevelopment commission authorized under30 this chapter may be exercised by the redevelopment commission in31 additional areas under its jurisdiction.32 (e) The declaratory resolution must include a statement of the33 general boundaries of each additional area. However, it is sufficient to34 describe those boundaries by location in relation to public ways,35 streams, or otherwise, as determined by the commissioners.36 (f) The declaratory resolution may include a provision with respect37 to the allocation and distribution of property taxes with respect to one38 (1) or more of the additional areas in the manner provided in section 3939 of this chapter. If the redevelopment commission includes such a40 provision in the resolution, allocation areas in the redevelopment41 project area and in the additional areas considered to be part of the42 redevelopment project area shall be considered a single allocation area

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1 for purposes of this chapter.2 (g) The additional areas must be located within the same county as3 the redevelopment project area but are not otherwise required to be4 within the jurisdiction of the redevelopment commission, if the5 redevelopment commission obtains the consent by ordinance of:6 (1) the county legislative body, for each additional area located7 within the unincorporated part of the county; or8 (2) the legislative body of the city or town affected, for each9 additional area located within a city or town.

10 In granting its consent, the legislative body shall approve the plan of11 development or redevelopment relating to the additional area.12 (h) A declaratory resolution previously adopted may be amended to13 include a provision to include additional areas as set forth in this14 section and an allocation provision under section 39 of this chapter15 with respect to one (1) or more of the additional areas in accordance16 with sections 15, 16, and 17 of this chapter.17 (i) The redevelopment commission may amend the allocation18 provision of a declaratory resolution in accordance with sections 15,19 16, and 17 of this chapter to change the assessment date that20 determines the base assessed value of property in the allocation area to21 any assessment date following the effective date of the allocation22 provision of the declaratory resolution. Such a change may relate to the23 assessment date that determines the base assessed value of that portion24 of the allocation area that is located in the redevelopment project area25 alone, that portion of the allocation area that is located in an additional26 area alone, or the entire allocation area.27 SECTION 3. IC 36-7-14-25.1, AS AMENDED BY P.L.257-2019,28 SECTION 117, IS AMENDED TO READ AS FOLLOWS29 [EFFECTIVE MAY 1, 2020]: Sec. 25.1. (a) In addition to other30 methods of raising money for property acquisition or redevelopment in31 a redevelopment project area, and in anticipation of the special tax to32 be levied under section 27 of this chapter, the taxes allocated under33 section 39 of this chapter, or other revenues of the district, or any34 combination of these sources, the redevelopment commission may, by35 bond resolution and subject to subsections (c) and (p), issue the bonds36 of the special taxing district in the name of the unit. The amount of the37 bonds may not exceed the total, as estimated by the commission, of all38 expenses reasonably incurred in connection with the acquisition and39 redevelopment of the property, including:40 (1) the total cost of all land, rights-of-way, and other property to41 be acquired and redeveloped;42 (2) all reasonable and necessary architectural, engineering, legal,

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1 financing, accounting, advertising, bond discount, and2 supervisory expenses related to the acquisition and redevelopment3 of the property or the issuance of bonds;4 (3) capitalized interest permitted by this chapter and a debt5 service reserve for the bonds to the extent the redevelopment6 commission determines that a reserve is reasonably required; and7 (4) expenses that the redevelopment commission is required or8 permitted to pay under IC 8-23-17.9 (b) If the redevelopment commission plans to acquire different

10 parcels of land or let different contracts for redevelopment work at11 approximately the same time, whether under one (1) or more12 resolutions, the commission may provide for the total cost in one (1)13 issue of bonds.14 (c) The legislative body of the unit must adopt a resolution that15 specifies the public purpose of the bond, the use of the bond proceeds,16 the maximum principal amount of the bond, the term of the bond, and17 the maximum interest rate or rates of the bond, any provision for18 redemption before maturity, and any provision for the payment of19 capitalized interest. The bonds must be dated as set forth in the bond20 resolution and negotiable, subject to the requirements of the bond21 resolution for registering the bonds. The resolution authorizing the22 bonds must state:23 (1) the denominations of the bonds;24 (2) the place or places at which the bonds are payable; and25 (3) the term of the bonds, which may not exceed:26 (A) fifty (50) years, for bonds issued before July 1, 2008;27 (B) thirty (30) years, for bonds issued after June 30, 2008, to28 finance:29 (i) an integrated coal gasification powerplant (as defined in30 IC 6-3.1-29-6);31 (ii) a part of an integrated coal gasification powerplant (as32 defined in IC 6-3.1-29-6); or33 (iii) property used in the operation or maintenance of an34 integrated coal gasification powerplant (as defined in35 IC 6-3.1-29-6);36 that received a certificate of public convenience and necessity37 from the Indiana utility regulatory commission under38 IC 8-1-8.5 et seq. before July 1, 2008;39 (C) thirty-five (35) years, for bonds issued after June 30, 2019,40 to finance a project that is located in a redevelopment project41 area, an economic development area, or an urban renewal42 project area and that includes, as part of the project, the use

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1 and repurposing of two (2) or more buildings and structures2 that are:3 (i) at least seventy-five (75) years old; and4 (ii) located at a site at which manufacturing previously5 occurred over a period of at least seventy-five (75) years; or6 (D) twenty-five (25) years, for bonds issued after June 30,7 2008, that are not described in clause (B) or (C).8 The bond resolution may also state that the bonds are redeemable9 before maturity with or without a premium, as determined by the

10 redevelopment commission.11 (d) The redevelopment commission shall certify a copy of the12 resolution authorizing the bonds to the municipal or county fiscal13 officer, who shall then prepare the bonds, subject to subsections (c) and14 (p). The seal of the unit must be impressed on the bonds, or a facsimile15 of the seal must be printed on the bonds.16 (e) The bonds must be executed by the appropriate officer of the17 unit and attested by the municipal or county fiscal officer.18 (f) The bonds are exempt from taxation for all purposes.19 (g) The municipal or county fiscal officer shall give notice of the20 sale of the bonds by publication in accordance with IC 5-3-1. The21 municipal fiscal officer, or county fiscal officer or executive, shall sell22 the bonds to the highest bidder, but may not sell them for less than23 ninety-seven percent (97%) of their par value. However, bonds payable24 solely or in part from tax proceeds allocated under section 39(b)(3)25 39(b)(4) of this chapter, or other revenues of the district may be sold26 at a private negotiated sale.27 (h) Except as provided in subsection (i), a redevelopment28 commission may not issue the bonds when the total issue, including29 bonds already issued and to be issued, exceeds two percent (2%) of the30 adjusted value of the taxable property in the special taxing district, as31 determined under IC 36-1-15.32 (i) The bonds are not a corporate obligation of the unit but are an33 indebtedness of the taxing district. The bonds and interest are payable,34 as set forth in the bond resolution of the redevelopment commission:35 (1) from a special tax levied upon all of the property in the taxing36 district, as provided by section 27 of this chapter;37 (2) from the tax proceeds allocated under section 39(b)(3)38 39(b)(4) of this chapter;39 (3) from other revenues available to the redevelopment40 commission; or41 (4) from a combination of the methods stated in subdivisions (1)42 through (3).

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1 If the bonds are payable solely from the tax proceeds allocated under2 section 39(b)(3) 39(b)(4) of this chapter, other revenues of the3 redevelopment commission, or any combination of these sources, they4 may be issued in any amount not to exceed the maximum amount5 approved by the legislative body in the resolution described in6 subsection (c).7 (j) Proceeds from the sale of bonds may be used to pay the cost of8 interest on the bonds for a period not to exceed five (5) years from the9 date of issuance.

10 (k) All laws relating to the giving of notice of the issuance of bonds,11 the giving of notice of a hearing on the appropriation of the proceeds12 of the bonds, the right of taxpayers to appear and be heard on the13 proposed appropriation, and the approval of the appropriation by the14 department of local government finance apply to all bonds issued under15 this chapter that are payable from the special benefits tax levied16 pursuant to section 27 of this chapter or from taxes allocated under17 section 39 of this chapter.18 (l) All laws relating to:19 (1) the filing of petitions requesting the issuance of bonds; and20 (2) the right of:21 (A) taxpayers and voters to remonstrate against the issuance of22 bonds in the case of a proposed bond issue described by23 IC 6-1.1-20-3.1(a); or24 (B) voters to vote on the issuance of bonds in the case of a25 proposed bond issue described by IC 6-1.1-20-3.5(a);26 apply to bonds issued under this chapter except for bonds payable27 solely from tax proceeds allocated under section 39(b)(3) 39(b)(4) of28 this chapter, other revenues of the redevelopment commission, or any29 combination of these sources.30 (m) If a debt service reserve is created from the proceeds of bonds,31 the debt service reserve may be used to pay principal and interest on32 the bonds as provided in the bond resolution.33 (n) Any amount remaining in the debt service reserve after all of the34 bonds of the issue for which the debt service reserve was established35 have matured shall be:36 (1) deposited in the allocation fund established under section37 39(b)(3) 39(b)(4) of this chapter; and38 (2) to the extent permitted by law, transferred to the county or39 municipality that established the department of redevelopment for40 use in reducing the county's or municipality's property tax levies41 for debt service.42 (o) If bonds are issued under this chapter that are payable solely or

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1 in part from revenues to the redevelopment commission from a project2 or projects, the redevelopment commission may adopt a resolution or3 trust indenture or enter into covenants as is customary in the issuance4 of revenue bonds. The resolution or trust indenture may pledge or5 assign the revenues from the project or projects, but may not convey or6 mortgage any project or parts of a project. The resolution or trust7 indenture may also contain any provisions for protecting and enforcing8 the rights and remedies of the bond owners as may be reasonable and9 proper and not in violation of law, including covenants setting forth the

10 duties of the redevelopment commission. The redevelopment11 commission may establish fees and charges for the use of any project12 and covenant with the owners of any bonds to set those fees and13 charges at a rate sufficient to protect the interest of the owners of the14 bonds. Any revenue bonds issued by the redevelopment commission15 that are payable solely from revenues of the commission shall contain16 a statement to that effect in the form of bond.17 (p) If the total principal amount of bonds authorized by a resolution18 of the redevelopment commission adopted before July 1, 2008, is equal19 to or greater than three million dollars ($3,000,000), the bonds may not20 be issued without the approval, by resolution, of the legislative body of21 the unit. Bonds authorized in any principal amount by a resolution of22 the redevelopment commission adopted after June 30, 2008, may not23 be issued without the approval of the legislative body of the unit.24 SECTION 4. IC 36-7-14-26, AS AMENDED BY P.L.203-2011,25 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE26 MAY 1, 2020]: Sec. 26. (a) All proceeds from the sale of bonds under27 section 25.1 of this chapter shall be kept as a separate and specific fund28 to pay the expenses incurred in connection with the acquisition and29 redevelopment of property. The fund shall be known as the30 redevelopment district capital fund. Any surplus of funds remaining31 after all expenses are paid shall be paid into and become a part of the32 redevelopment district bond fund established under section 27 of this33 chapter.34 (b) All gifts or donations that are given or paid to the department of35 redevelopment or to the unit for redevelopment purposes shall be36 promptly deposited to the credit of the redevelopment district capital37 fund. The redevelopment commission may use these gifts and38 donations for the purposes of this chapter.39 (c) Before the eleventh day of each calendar month the fiscal officer40 shall notify the redevelopment commission and the officers of the unit41 who have duties in respect to the funds and accounts of the unit of the42 amount standing to the credit of the redevelopment district capital fund

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1 at the close of business on the last day of the preceding month.2 (d) A redevelopment commission shall deposit in the allocation fund3 established under section 39(b)(3) 39(b)(4) of this chapter of an4 allocation area the proceeds from the sale or leasing of property in the5 area under section 22 of this chapter if:6 (1) there are outstanding bonds that were issued to pay costs of7 redevelopment in the allocation area; and8 (2) the bonds are payable solely or in part from tax proceeds9 allocated under section 39(b)(3) 39(b)(4) of this chapter.

10 SECTION 5. IC 36-7-14-27, AS AMENDED BY P.L.149-2014,11 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE12 MAY 1, 2020]: Sec. 27. (a) This section applies only to:13 (1) bonds that are issued under section 25.1 of this chapter; and14 (2) leases entered into under section 25.2 of this chapter;15 which are payable from a special tax levied upon all of the property in16 the special taxing district. This section does not apply to bonds or17 leases that are payable solely from tax proceeds allocated under section18 39(b)(3) 39(b)(4) of this chapter, other revenues of the redevelopment19 commission, or any combination of these sources.20 (b) The redevelopment commission, with the prior approval of the21 legislative body, shall levy each year a special tax on all of the property22 of the redevelopment taxing district, in such a manner as to meet and23 pay the principal of the bonds as they mature, together with all accruing24 interest on the bonds or lease rental payments under section 25.2 of this25 chapter. The commission shall cause the tax levied to be certified to the26 proper officers as other tax levies are certified, and to the auditor of the27 county in which the redevelopment district is located, before the28 second day of October in each year. The tax shall be estimated and29 entered on the tax duplicate by the county auditor and shall be collected30 and enforced by the county treasurer in the same manner as other state31 and county taxes are estimated, entered, collected, and enforced. The32 amount of the tax levied to pay bonds or lease rentals payable from the33 tax levied under this section shall be reduced by any amount available34 in the allocation fund established under section 39(b)(3) 39(b)(4) of35 this chapter or other revenues of the redevelopment commission to the36 extent such revenues have been set aside in the redevelopment bond37 fund.38 (c) As the tax is collected, it shall be accumulated in a separate fund39 to be known as the redevelopment district bond fund and shall be40 applied to the payment of the bonds as they mature and the interest on41 the bonds as it accrues, or to make lease payments and to no other42 purpose. All accumulations of the fund before their use for the payment

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1 of bonds and interest or to make lease payments shall be deposited with2 the depository or depositories for other public funds of the unit in3 accordance with IC 5-13, unless they are invested under IC 5-13-9.4 (d) If there are no outstanding bonds that are payable solely or in5 part from tax proceeds allocated under section 39(b)(3) 39(b)(4) of this6 chapter and that were issued to pay costs of redevelopment in an7 allocation area that is located wholly or in part in the special taxing8 district, then all proceeds from the sale or leasing of property in the9 allocation area under section 22 of this chapter shall be paid into the

10 redevelopment district bond fund and become a part of that fund. In11 arriving at the tax levy for any year, the redevelopment commission12 shall take into account the amount of the proceeds deposited under this13 subsection and remaining on hand.14 (e) The tax levies provided for in this section are reviewable by15 other bodies vested by law with the authority to ascertain that the levies16 are sufficient to raise the amount that, with other amounts available, is17 sufficient to meet the payments under the lease payable from the levy18 of taxes.19 SECTION 6. IC 36-7-14-39, AS AMENDED BY P.L.214-2019,20 SECTION 33, AND AS AMENDED BY P.L.257-2019, SECTION21 120, AND AS AMENDED BY THE TECHNICAL CORRECTIONS22 BILL OF THE 2020 GENERAL ASSEMBLY, IS CORRECTED AND23 AMENDED TO READ AS FOLLOWS [EFFECTIVE MAY 1, 2020]:24 Sec. 39. (a) As used in this section:25 "Allocation area" means that part of a redevelopment project area26 to which an allocation provision of a declaratory resolution adopted27 under section 15 of this chapter refers for purposes of distribution and28 allocation of property taxes.29 "Base assessed value" means, subject to subsection (j), the30 following:31 (1) If an allocation provision is adopted after June 30, 1995, in a32 declaratory resolution or an amendment to a declaratory33 resolution establishing an economic development area:34 (A) the net assessed value of all the property as finally35 determined for the assessment date immediately preceding the36 effective date of the allocation provision of the declaratory37 resolution, as adjusted under subsection (h); plus38 (B) to the extent that it is not included in clause (A), the net39 assessed value of property that is assessed as residential40 property under the rules of the department of local government41 finance, within the allocation area, as finally determined for42 any the current assessment date. after the effective date of the

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1 allocation provision.2 (2) If an allocation provision is adopted after June 30, 1997, in a3 declaratory resolution or an amendment to a declaratory4 resolution establishing a redevelopment project area:5 (A) the net assessed value of all the property as finally6 determined for the assessment date immediately preceding the7 effective date of the allocation provision of the declaratory8 resolution, as adjusted under subsection (h); plus9 (B) to the extent that it is not included in clause (A), the net

10 assessed value of property that is assessed as residential11 property under the rules of the department of local government12 finance, as finally determined for any the current assessment13 date. after the effective date of the allocation provision.14 (3) If:15 (A) an allocation provision adopted before June 30, 1995, in16 a declaratory resolution or an amendment to a declaratory17 resolution establishing a redevelopment project area expires18 after June 30, 1997; and19 (B) after June 30, 1997, a new allocation provision is included20 in an amendment to the declaratory resolution;21 the net assessed value of all the property as finally determined for22 the assessment date immediately preceding the effective date of23 the allocation provision adopted after June 30, 1997, as adjusted24 under subsection (h).25 (4) Except as provided in subdivision (5), for all other allocation26 areas, the net assessed value of all the property as finally27 determined for the assessment date immediately preceding the28 effective date of the allocation provision of the declaratory29 resolution, as adjusted under subsection (h).30 (5) If an allocation area established in an economic development31 area before July 1, 1995, is expanded after June 30, 1995, the32 definition in subdivision (1) applies to the expanded part of the33 area added after June 30, 1995.34 (6) If an allocation area established in a redevelopment project35 area before July 1, 1997, is expanded after June 30, 1997, the36 definition in subdivision (2) applies to the expanded part of the37 area added after June 30, 1997.38 Except as provided in section 39.3 of this chapter, "property taxes"39 means taxes imposed under IC 6-1.1 on real property. However, upon40 approval by a resolution of the redevelopment commission adopted41 before June 1, 1987, "property taxes" also includes taxes imposed42 under IC 6-1.1 on depreciable personal property. If a redevelopment

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1 commission adopted before June 1, 1987, a resolution to include within2 the definition of property taxes, taxes imposed under IC 6-1.1 on3 depreciable personal property that has a useful life in excess of eight4 (8) years, the commission may by resolution determine the percentage5 of taxes imposed under IC 6-1.1 on all depreciable personal property6 that will be included within the definition of property taxes. However,7 the percentage included must not exceed twenty-five percent (25%) of8 the taxes imposed under IC 6-1.1 on all depreciable personal property.9 (b) A declaratory resolution adopted under section 15 of this chapter

10 on or before the allocation deadline determined under subsection (i)11 may include a provision with respect to the allocation and distribution12 of property taxes for the purposes and in the manner provided in this13 section. A declaratory resolution previously adopted may include an14 allocation provision by the amendment of that declaratory resolution on15 or before the allocation deadline determined under subsection (i) in16 accordance with the procedures required for its original adoption. A17 declaratory resolution or amendment that establishes an allocation18 provision must include a specific finding of fact, supported by19 evidence, that the adoption of the allocation provision will result in20 new property taxes in the area that would not have been generated but21 for the adoption of the allocation provision. For an allocation area22 established before July 1, 1995, the expiration date of any allocation23 provisions for the allocation area is June 30, 2025, or the last date of24 any obligations that are outstanding on July 1, 2015, whichever is later.25 A declaratory resolution or an amendment that establishes an allocation26 provision after June 30, 1995, must specify an expiration date for the27 allocation provision. For an allocation area established before July 1,28 2008, the expiration date may not be more than thirty (30) years after29 the date on which the allocation provision is established. For an30 allocation area established after June 30, 2008, the expiration date may31 not be more than twenty-five (25) years after the date on which the first32 obligation was incurred to pay principal and interest on bonds or lease33 rentals on leases payable from tax increment revenues. However, with34 respect to bonds or other obligations that were issued before July 1,35 2008, if any of the bonds or other obligations that were scheduled when36 issued to mature before the specified expiration date and that are37 payable only from allocated tax proceeds with respect to the allocation38 area remain outstanding as of the expiration date, the allocation39 provision does not expire until all of the bonds or other obligations are40 no longer outstanding. Notwithstanding any other law, in the case of41 an allocation area that is established after June 30, 2019, and that is42 located in a redevelopment project area described in section

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1 25.1(c)(3)(C) of this chapter, an economic development area described2 in section 25.1(c)(3)(C) of this chapter, or an urban renewal project3 area described in section 25.1(c)(3)(C) of this chapter, the expiration4 date of the allocation provision may not be more than thirty-five (35)5 years after the date on which the allocation provision is established.6 The allocation provision may apply to all or part of the redevelopment7 project area. The allocation provision must require that any property8 taxes subsequently levied by or for the benefit of any public body9 entitled to a distribution of property taxes on taxable property in the

10 allocation area be allocated and distributed as follows:11 (1) Except as otherwise provided in this section, the proceeds of12 the taxes attributable to the lesser of:13 (A) the assessed value of the property for the assessment date14 with respect to which the allocation and distribution is made;15 or16 (B) the base assessed value;17 shall be allocated to and, when collected, paid into the funds of18 the respective taxing units.19 (2) This subdivision applies only to new allocation areas20 established after April 30, 2020. The property tax proceeds21 not otherwise included in subdivision (1) that are attributable22 to the portion of the assessed value of property that represents23 the percentage of property tax revenue that was budgeted by24 taxing units for police or fire services in the allocation area25 immediately preceding the effective date of the allocation26 provision shall be allocated and paid into the funds of those27 respective taxing units.28 (2) (3) The excess of the proceeds of the property taxes imposed29 for the assessment date with respect to which the allocation and30 distribution is made that are attributable to taxes imposed after31 being approved by the voters in a referendum or local public32 question conducted after April 30, 2010, not otherwise included33 in subdivision (1) shall be allocated to and, when collected, paid34 into the funds of the taxing unit for which the referendum or local35 public question was conducted.36 (3) (4) Except as otherwise provided in this section, property tax37 proceeds in excess of those described in subdivisions (1), (2), and38 (2) (3) shall be allocated to the redevelopment district and, when39 collected, paid into an allocation fund for that allocation area that40 may be used by the redevelopment district only to do one (1) or41 more of the following:42 (A) Pay the principal of and interest on any obligations

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1 payable solely from allocated tax proceeds which are incurred2 by the redevelopment district for the purpose of financing or3 refinancing the redevelopment of that allocation area.4 (B) Establish, augment, or restore the debt service reserve for5 bonds payable solely or in part from allocated tax proceeds in6 that allocation area.7 (C) Pay the principal of and interest on bonds payable from8 allocated tax proceeds in that allocation area and from the9 special tax levied under section 27 of this chapter.

10 (D) Pay the principal of and interest on bonds issued by the11 unit to pay for local public improvements that are physically12 located in or physically connected to that allocation area.13 (E) Pay premiums on the redemption before maturity of bonds14 payable solely or in part from allocated tax proceeds in that15 allocation area.16 (F) Make payments on leases payable from allocated tax17 proceeds in that allocation area under section 25.2 of this18 chapter.19 (G) Reimburse the unit for expenditures made by it for local20 public improvements (which include buildings, parking21 facilities, and other items described in section 25.1(a) of this22 chapter) that are physically located in or physically connected23 to that allocation area.24 (H) Reimburse the unit for rentals paid by it for a building or25 parking facility that is physically located in or physically26 connected to that allocation area under any lease entered into27 under IC 36-1-10.28 (I) For property taxes first due and payable before January 1,29 2009, pay all or a part of a property tax replacement credit to30 taxpayers in an allocation area as determined by the31 redevelopment commission. This credit equals the amount32 determined under the following STEPS for each taxpayer in a33 taxing district (as defined in IC 6-1.1-1-20) that contains all or34 part of the allocation area:35 STEP ONE: Determine that part of the sum of the amounts36 under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),37 IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and38 IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to39 the taxing district.40 STEP TWO: Divide:41 (i) that part of each county's eligible property tax42 replacement amount (as defined in IC 6-1.1-21-2 (before its

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1 repeal)) for that year as determined under IC 6-1.1-21-42 (before its repeal) that is attributable to the taxing district;3 by4 (ii) the STEP ONE sum.5 STEP THREE: Multiply:6 (i) the STEP TWO quotient; times7 (ii) the total amount of the taxpayer's taxes (as defined in8 IC 6-1.1-21-2 (before its repeal)) levied in the taxing district9 that have been allocated during that year to an allocation

10 fund under this section.11 If not all the taxpayers in an allocation area receive the credit12 in full, each taxpayer in the allocation area is entitled to13 receive the same proportion of the credit. A taxpayer may not14 receive a credit under this section and a credit under section15 39.5 of this chapter (before its repeal) in the same year.16 (J) Pay expenses incurred by the redevelopment commission17 for local public improvements that are in the allocation area or18 serving the allocation area. Public improvements include19 buildings, parking facilities, and other items described in20 section 25.1(a) of this chapter.21 (K) Reimburse public and private entities for expenses22 incurred in training employees of industrial facilities that are23 located:24 (i) in the allocation area; and25 (ii) on a parcel of real property that has been classified as26 industrial property under the rules of the department of local27 government finance.28 However, the total amount of money spent for this purpose in29 any year may not exceed the total amount of money in the30 allocation fund that is attributable to property taxes paid by the31 industrial facilities described in this clause. The32 reimbursements under this clause must be made within three33 (3) years after the date on which the investments that are the34 basis for the increment financing are made.35 (L) Pay the costs of carrying out an eligible efficiency project36 (as defined in IC 36-9-41-1.5) within the unit that established37 the redevelopment commission. However, property tax38 proceeds may be used under this clause to pay the costs of39 carrying out an eligible efficiency project only if those40 property tax proceeds exceed the amount necessary to do the41 following:42 (i) Make, when due, any payments required under clauses

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1 (A) through (K), including any payments of principal and2 interest on bonds and other obligations payable under this3 subdivision, any payments of premiums under this4 subdivision on the redemption before maturity of bonds, and5 any payments on leases payable under this subdivision.6 (ii) Make any reimbursements required under this7 subdivision.8 (iii) Pay any expenses required under this subdivision.9 (iv) Establish, augment, or restore any debt service reserve

10 under this subdivision.11 (M) Expend money and provide financial assistance as12 authorized in section 12.2(a)(27) of this chapter.13 The allocation fund may not be used for operating expenses of the14 commission.15 (4) (5) Except as provided in subsection (g), before June 15 of16 each year, the commission shall do the following:17 (A) Determine the amount, if any, by which the assessed value18 of the taxable property in the allocation area for the most19 recent assessment date minus the base assessed value, when20 multiplied by the estimated tax rate of the allocation area, will21 exceed the amount of assessed value needed to produce the22 property taxes necessary to make, when due, principal and23 interest payments on bonds described in subdivision (3), (4),24 plus the amount necessary for other purposes described in25 subdivision (3). (4).26 (B) Provide a written notice to the county auditor, the fiscal27 body of the county or municipality that established the28 department of redevelopment, the officers who are authorized29 to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for30 each of the other taxing units that is wholly or partly located31 within the allocation area, and (in an electronic format) the32 department of local government finance. The notice must:33 (i) state the amount, if any, of excess assessed value that the34 commission has determined may be allocated to the35 respective taxing units in the manner prescribed in36 subdivision (1); or37 (ii) state that the commission has determined that there is no38 excess assessed value that may be allocated to the respective39 taxing units in the manner prescribed in subdivision (1).40 The county auditor shall allocate to the respective taxing units41 the amount, if any, of excess assessed value determined by the42 commission. The commission may not authorize an allocation

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1 of assessed value to the respective taxing units under this2 subdivision if to do so would endanger the interests of the3 holders of bonds described in subdivision (3) (4) or lessors4 under section 25.3 of this chapter.5 (C) If:6 (i) the amount of excess assessed value determined by the7 commission is expected to generate more than two hundred8 percent (200%) of the amount of allocated tax proceeds9 necessary to make, when due, principal and interest

10 payments on bonds described in subdivision (3); (4); plus11 (ii) the amount necessary for other purposes described in12 subdivision (3); (4);13 the commission shall submit to the legislative body of the unit14 its determination of the excess assessed value that the15 commission proposes to allocate to the respective taxing units16 in the manner prescribed in subdivision (1). The legislative17 body of the unit may approve the commission's determination18 or modify the amount of the excess assessed value that will be19 allocated to the respective taxing units in the manner20 prescribed in subdivision (1).21 (5) (6) Notwithstanding subdivision (4), (5), in the case of an22 allocation area that is established after June 30, 2019, and that23 is located in a redevelopment project area described in section24 25.1(c)(3)(C) of this chapter, an economic development area25 described in section 25.1(c)(3)(C) of this chapter, or an urban26 renewal project area described in section 25.1(c)(3)(C) of this27 chapter, for each year the allocation provision is in effect, if the28 amount of excess assessed value determined by the commission29 under subdivision (4)(A) (5)(A) is expected to generate more than30 two hundred percent (200%) of:31 (A) the amount of allocated tax proceeds necessary to make,32 when due, principal and interest payments on bonds described33 in subdivision (3) (4) for the project; plus34 (B) the amount necessary for other purposes described in35 subdivision (3) (4) for the project;36 the amount of the excess assessed value that generates more than37 two hundred percent (200%) of the amounts described in clauses38 (A) and (B) shall be allocated to the respective taxing units in the39 manner prescribed by subdivision (1).40 (c) For the purpose of allocating taxes levied by or for any taxing41 unit or units, the assessed value of taxable property in a territory in the42 allocation area that is annexed by any taxing unit after the effective

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1 date of the allocation provision of the declaratory resolution is the2 lesser of:3 (1) the assessed value of the property for the assessment date with4 respect to which the allocation and distribution is made; or5 (2) the base assessed value.6 (d) Property tax proceeds allocable to the redevelopment district7 under subsection (b)(3) (b)(4) may, subject to subsection (b)(4), (b)(5),8 be irrevocably pledged by the redevelopment district for payment as set9 forth in subsection (b)(3). (b)(4).

10 (e) Notwithstanding any other law, each assessor shall, upon11 petition of the redevelopment commission, reassess the taxable12 property situated upon or in, or added to, the allocation area, effective13 on the next assessment date after the petition.14 (f) Notwithstanding any other law, the assessed value of all taxable15 property in the allocation area, for purposes of tax limitation, property16 tax replacement, and formulation of the budget, tax rate, and tax levy17 for each political subdivision in which the property is located is the18 lesser of:19 (1) the assessed value of the property as valued without regard to20 this section; or21 (2) the base assessed value.22 (g) If any part of the allocation area is located in an enterprise zone23 created under IC 5-28-15, the unit that designated the allocation area24 shall create funds as specified in this subsection. A unit that has25 obligations, bonds, or leases payable from allocated tax proceeds under26 subsection (b)(3) (b)(4) shall establish an allocation fund for the27 purposes specified in subsection (b)(3) (b)(4) and a special zone fund.28 Such a unit shall, until the end of the enterprise zone phase out period,29 deposit each year in the special zone fund any amount in the allocation30 fund derived from property tax proceeds in excess of those described31 in subsection (b)(1), and (b)(2), and (b)(3) from property located in the32 enterprise zone that exceeds the amount sufficient for the purposes33 specified in subsection (b)(3) (b)(4) for the year. The amount sufficient34 for purposes specified in subsection (b)(3) (b)(4) for the year shall be35 determined based on the pro rata portion of such current property tax36 proceeds from the part of the enterprise zone that is within the37 allocation area as compared to all such current property tax proceeds38 derived from the allocation area. A unit that has no obligations, bonds,39 or leases payable from allocated tax proceeds under subsection (b)(3)40 (b)(4) shall establish a special zone fund and deposit all the property41 tax proceeds in excess of those described in subsection (b)(1), and42 (b)(2), and (b)(3) in the fund derived from property tax proceeds in

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1 excess of those described in subsection (b)(1), and (b)(2), and (b)(3)2 from property located in the enterprise zone. The unit that creates the3 special zone fund shall use the fund (based on the recommendations of4 the urban enterprise association) for programs in job training, job5 enrichment, and basic skill development that are designed to benefit6 residents and employers in the enterprise zone or other purposes7 specified in subsection (b)(3), (b)(4), except that where reference is8 made in subsection (b)(3) (b)(4) to allocation area it shall refer for9 purposes of payments from the special zone fund only to that part of the

10 allocation area that is also located in the enterprise zone. Those11 programs shall reserve at least one-half (1/2) of their enrollment in any12 session for residents of the enterprise zone.13 (h) The state board of accounts and department of local government14 finance shall make the rules and prescribe the forms and procedures15 that they consider expedient for the implementation of this chapter.16 After each reassessment in an area under a reassessment plan prepared17 under IC 6-1.1-4-4.2, the department of local government finance shall18 adjust the base assessed value one (1) time to neutralize any effect of19 the reassessment of the real property in the area on the property tax20 proceeds allocated to the redevelopment district under this section.21 After each annual adjustment under IC 6-1.1-4-4.5, the department of22 local government finance shall adjust the base assessed value one (1)23 time to neutralize any effect of the annual adjustment on the property24 tax proceeds allocated to the redevelopment district under this section.25 However, the adjustments under this subsection:26 (1) may not include the effect of phasing in assessed value due to27 property tax abatements under IC 6-1.1-12.1;28 (2) may not produce less property tax proceeds allocable to the29 redevelopment district under subsection (b)(3) (b)(4) than would30 otherwise have been received if the reassessment under the31 reassessment plan or the annual adjustment had not occurred; and32 (3) may decrease base assessed value only to the extent that33 assessed values in the allocation area have been decreased due to34 annual adjustments or the reassessment under the reassessment35 plan.36 Assessed value increases attributable to the application of an abatement37 schedule under IC 6-1.1-12.1 may not be included in the base assessed38 value of an allocation area. The department of local government39 finance may prescribe procedures for county and township officials to40 follow to assist the department in making the adjustments.41 (i) The allocation deadline referred to in subsection (b) is42 determined in the following manner:

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1 (1) The initial allocation deadline is December 31, 2011.2 (2) Subject to subdivision (3), the initial allocation deadline and3 subsequent allocation deadlines are automatically extended in4 increments of five (5) years, so that allocation deadlines5 subsequent to the initial allocation deadline fall on December 31,6 2016, and December 31 of each fifth year thereafter.7 (3) At least one (1) year before the date of an allocation deadline8 determined under subdivision (2), the general assembly may enact9 a law that:

10 (A) terminates the automatic extension of allocation deadlines11 under subdivision (2); and12 (B) specifically designates a particular date as the final13 allocation deadline.14 (j) If a redevelopment commission adopts a declaratory resolution15 or an amendment to a declaratory resolution that contains an allocation16 provision and the redevelopment commission makes either of the17 filings required under section 17(e) of this chapter after the first18 anniversary of the effective date of the allocation provision, the auditor19 of the county in which the unit is located shall compute the base20 assessed value for the allocation area using the assessment date21 immediately preceding the later of:22 (1) the date on which the documents are filed with the county23 auditor; or24 (2) the date on which the documents are filed with the department25 of local government finance.26 SECTION 7. IC 36-7-14-48, AS AMENDED BY P.L.214-2019,27 SECTION 36, AND P.L.257-2019, SECTION 123, IS AMENDED TO28 READ AS FOLLOWS [EFFECTIVE MAY 1, 2020]: Sec. 48. (a)29 Notwithstanding section 39(a) of this chapter, with respect to the30 allocation and distribution of property taxes for the accomplishment of31 a program adopted under section 45 of this chapter, "base assessed32 value" means, subject to section 39(j) of this chapter, the net assessed33 value of all of the property, other than personal property, as finally34 determined for the assessment date immediately preceding the effective35 date of the allocation provision, as adjusted under section 39(h) of this36 chapter.37 (b) The allocation fund established under section 39(b) of this38 chapter for the allocation area for a program adopted under section 4539 of this chapter may be used only for purposes related to the40 accomplishment of the program, including the following:41 (1) The construction, rehabilitation, or repair of residential units42 within the allocation area.

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1 (2) The construction, reconstruction, or repair of any2 infrastructure (including streets, sidewalks, and sewers) within or3 serving the allocation area.4 (3) The acquisition of real property and interests in real property5 within the allocation area.6 (4) The demolition of real property within the allocation area.7 (5) The provision of financial assistance to enable individuals and8 families to purchase or lease residential units within the allocation9 area. However, financial assistance may be provided only to those

10 individuals and families whose income is at or below the county's11 median income for individuals and families, respectively.12 (6) The provision of financial assistance to neighborhood13 development corporations to permit them to provide financial14 assistance for the purposes described in subdivision (5).15 (7) For property taxes first due and payable before January 1,16 2009, providing each taxpayer in the allocation area a credit for17 property tax replacement as determined under subsections (c) and18 (d). However, the commission may provide this credit only if the19 municipal legislative body (in the case of a redevelopment20 commission established by a municipality) or the county21 executive (in the case of a redevelopment commission established22 by a county) establishes the credit by ordinance adopted in the23 year before the year in which the credit is provided.24 (c) The maximum credit that may be provided under subsection25 (b)(7) to a taxpayer in a taxing district that contains all or part of an26 allocation area established for a program adopted under section 45 of27 this chapter shall be determined as follows:28 STEP ONE: Determine that part of the sum of the amounts29 described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)30 through IC 6-1.1-21-2(g)(5) (before their repeal) that is31 attributable to the taxing district.32 STEP TWO: Divide:33 (A) that part of each county's eligible property tax replacement34 amount (as defined in IC 6-1.1-21-2) (before its repeal) for35 that year as determined under IC 6-1.1-21-4(a)(1) (before its36 repeal) that is attributable to the taxing district; by37 (B) the amount determined under STEP ONE.38 STEP THREE: Multiply:39 (A) the STEP TWO quotient; by40 (B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) (before41 its repeal) levied in the taxing district allocated to the42 allocation fund, including the amount that would have been

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1 allocated but for the credit.2 (d) The commission may determine to grant to taxpayers in an3 allocation area from its allocation fund a credit under this section, as4 calculated under subsection (c). Except as provided in subsection (g),5 one-half (1/2) of the credit shall be applied to each installment of taxes6 (as defined in IC 6-1.1-21-2) (before its repeal) that under7 IC 6-1.1-22-9 are due and payable in a year. The commission must8 provide for the credit annually by a resolution and must find in the9 resolution the following:

10 (1) That the money to be collected and deposited in the allocation11 fund, based upon historical collection rates, after granting the12 credit will equal the amounts payable for contractual obligations13 from the fund, plus ten percent (10%) of those amounts.14 (2) If bonds payable from the fund are outstanding, that there is15 a debt service reserve for the bonds that at least equals the amount16 of the credit to be granted.17 (3) If bonds of a lessor under section 25.2 of this chapter or under18 IC 36-1-10 are outstanding and if lease rentals are payable from19 the fund, that there is a debt service reserve for those bonds that20 at least equals the amount of the credit to be granted.21 If the tax increment is insufficient to grant the credit in full, the22 commission may grant the credit in part, prorated among all taxpayers.23 (e) Notwithstanding section 39(b) of this chapter, the allocation24 fund established under section 39(b) of this chapter for the allocation25 area for a program adopted under section 45 of this chapter may only26 be used to do one (1) or more of the following:27 (1) Accomplish one (1) or more of the actions set forth in section28 39(b)(3)(A) 39(b)(4)(A) through 39(b)(3)(H) 39(b)(4)(H) and29 39(b)(3)(J) 39(b)(4)(J) of this chapter for property that is30 residential in nature.31 (2) Reimburse the county or municipality for expenditures made32 by the county or municipality in order to accomplish the housing33 program in that allocation area.34 The allocation fund may not be used for operating expenses of the35 commission.36 (f) Notwithstanding section 39(b) of this chapter, the commission37 shall, relative to the allocation fund established under section 39(b) of38 this chapter for an allocation area for a program adopted under section39 45 of this chapter, do the following before June 15 of each year:40 (1) Determine the amount, if any, by which the assessed value of41 the taxable property in the allocation area for the most recent42 assessment date minus the base assessed value, when multiplied

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1 by the estimated tax rate of the allocation area, will exceed the2 amount of assessed value needed to produce the property taxes3 necessary to:4 (A) make the distribution distributions required under section5 39(b)(2) and 39(b)(3) of this chapter;6 (B) make, when due, principal and interest payments on bonds7 described in section 39(b)(3) 39(b)(4) of this chapter;8 (C) pay the amount necessary for other purposes described in9 section 39(b)(3) 39(b)(4) of this chapter; and

10 (D) reimburse the county or municipality for anticipated11 expenditures described in subsection (e)(2).12 (2) Provide a written notice to the county auditor, the fiscal body13 of the county or municipality that established the department of14 redevelopment, the officers who are authorized to fix budgets, tax15 rates, and tax levies under IC 6-1.1-17-5 for each of the other16 taxing units that is wholly or partly located within the allocation17 area, and (in an electronic format) the department of local18 government finance. The notice must:19 (A) state the amount, if any, of excess property taxes that the20 commission has determined may be paid to the respective21 taxing units in the manner prescribed in section 39(b)(1) of22 this chapter; or23 (B) state that the commission has determined that there is no24 excess assessed value that may be allocated to the respective25 taxing units in the manner prescribed in subdivision (1).26 The county auditor shall allocate to the respective taxing units the27 amount, if any, of excess assessed value determined by the28 commission.29 (3) If:30 (A) the amount of excess assessed value determined by the31 commission is expected to generate more than two hundred32 percent (200%) of the amount of allocated tax proceeds33 necessary to make, when due, principal and interest payments34 on bonds described in subdivision (1); plus35 (B) the amount necessary for other purposes described in36 subdivision (1);37 the commission shall submit to the legislative body of the unit its38 determination of the excess assessed value that the commission39 proposes to allocate to the respective taxing units in the manner40 prescribed in subdivision (2). The legislative body of the unit may41 approve the commission's determination or modify the amount of42 the excess assessed value that will be allocated to the respective

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1 taxing units in the manner prescribed in subdivision (2).2 (g) This subsection applies to an allocation area only to the extent3 that the net assessed value of property that is assessed as residential4 property under the rules of the department of local government finance5 is not included in the base assessed value. If property tax installments6 with respect to a homestead (as defined in IC 6-1.1-12-37) are due in7 installments established by the department of local government finance8 under IC 6-1.1-22-9.5, each taxpayer subject to those installments in an9 allocation area is entitled to an additional credit under subsection (d)

10 for the taxes (as defined in IC 6-1.1-21-2) (before its repeal) due in11 installments. The credit shall be applied in the same proportion to each12 installment of taxes (as defined in IC 6-1.1-21-2) (before its repeal).13 SECTION 8. IC 36-7-14-52, AS AMENDED BY P.L.214-2019,14 SECTION 37, AND P.L.257-2019, SECTION 124, IS AMENDED TO15 READ AS FOLLOWS [EFFECTIVE MAY 1, 2020]: Sec. 52. (a)16 Notwithstanding section 39(a) of this chapter, with respect to the17 allocation and distribution of property taxes for the accomplishment of18 the purposes of an age-restricted housing program adopted under19 section 49 of this chapter, "base assessed value" means, subject to20 section 39(j) of this chapter, the net assessed value of all of the21 property, other than personal property, as finally determined for the22 assessment date immediately preceding the effective date of the23 allocation provision, as adjusted under section 39(h) of this chapter.24 (b) The allocation fund established under section 39(b) of this25 chapter for the allocation area for an age-restricted housing program26 adopted under section 49 of this chapter may be used only for purposes27 related to the accomplishment of the purposes of the program,28 including, but not limited to, the following:29 (1) The construction of any infrastructure (including streets,30 sidewalks, and sewers) or local public improvements in, serving,31 or benefiting the allocation area.32 (2) The acquisition of real property and interests in real property33 within the allocation area.34 (3) The preparation of real property in anticipation of35 development of the real property within the allocation area.36 (4) To do any of the following:37 (A) Pay the principal of and interest on bonds or any other38 obligations payable from allocated tax proceeds in the39 allocation area that are incurred by the redevelopment district40 for the purpose of financing or refinancing the age-restricted41 housing program established under section 49 of this chapter42 for the allocation area.

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1 (B) Establish, augment, or restore the debt service reserve for2 bonds payable solely or in part from allocated tax proceeds in3 the allocation area.4 (C) Pay the principal of and interest on bonds payable from5 allocated tax proceeds in the allocation area and from the6 special tax levied under section 27 of this chapter.7 (D) Pay the principal of and interest on bonds issued by the8 unit to pay for local public improvements that are physically9 located in or physically connected to the allocation area.

10 (E) Pay premiums on the redemption before maturity of bonds11 payable solely or in part from allocated tax proceeds in the12 allocation area.13 (F) Make payments on leases payable from allocated tax14 proceeds in the allocation area under section 25.2 of this15 chapter.16 (G) Reimburse the unit for expenditures made by the unit for17 local public improvements (which include buildings, parking18 facilities, and other items described in section 25.1(a) of this19 chapter) that are physically located in or physically connected20 to the allocation area.21 (c) Notwithstanding section 39(b) of this chapter, the commission22 shall, relative to the allocation fund established under section 39(b) of23 this chapter for an allocation area for an age-restricted housing program24 adopted under section 49 of this chapter, do the following before June25 15 of each year:26 (1) Determine the amount, if any, by which the assessed value of27 the taxable property in the allocation area for the most recent28 assessment date minus the base assessed value, when multiplied29 by the estimated tax rate of the allocation area, will exceed the30 amount of assessed value needed to produce the property taxes31 necessary to:32 (A) make the distribution distributions required under section33 39(b)(2) and 39(b)(3) of this chapter;34 (B) make, when due, principal and interest payments on bonds35 described in section 39(b)(3) 39(b)(4) of this chapter;36 (C) pay the amount necessary for other purposes described in37 section 39(b)(3) 39(b)(4) of this chapter; and38 (D) reimburse the county or municipality for anticipated39 expenditures described in subsection (b)(2).40 (2) Provide a written notice to the county auditor, the fiscal body41 of the county or municipality that established the department of42 redevelopment, the officers who are authorized to fix budgets, tax

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1 rates, and tax levies under IC 6-1.1-17-5 for each of the other2 taxing units that is wholly or partly located within the allocation3 area, and (in an electronic format) the department of local4 government finance. The notice must:5 (A) state the amount, if any, of excess property taxes that the6 commission has determined may be paid to the respective7 taxing units in the manner prescribed in section 39(b)(1) of8 this chapter; or9 (B) state that the commission has determined that there is no

10 excess assessed value that may be allocated to the respective11 taxing units in the manner prescribed in subdivision (1).12 The county auditor shall allocate to the respective taxing units the13 amount, if any, of excess assessed value determined by the14 commission.15 SECTION 9. IC 36-7-14-56, AS ADDED BY P.L.235-2019,16 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE17 MAY 1, 2020]: Sec. 56. (a) This section applies only to a residential18 housing development program authorized by section 53 of this chapter.19 (b) Notwithstanding section 39(a) of this chapter, with respect to the20 allocation and distribution of property taxes for the accomplishment of21 the purposes of a residential housing development program adopted22 under section 53 of this chapter, "base assessed value" means the net23 assessed value of all of the property, other than personal property, as24 finally determined for the assessment date immediately preceding the25 effective date of the allocation provision, as adjusted under section26 39(h) of this chapter.27 (c) The allocation fund established under section 39(b) of this28 chapter for the allocation area for a residential housing development29 program adopted under section 53 of this chapter may be used only for30 purposes related to the accomplishment of the purposes of the program,31 including, but not limited to, the following:32 (1) The construction of any infrastructure (including streets,33 roads, and sidewalks) or local public improvements in, serving,34 or benefiting a residential housing development project.35 (2) The acquisition of real property and interests in real property36 for rehabilitation purposes within the allocation area.37 (3) The preparation of real property in anticipation of38 development of the real property within the allocation area.39 (4) To do any of the following:40 (A) Pay the principal of and interest on bonds or any other41 obligations payable from allocated tax proceeds in the42 allocation area that are incurred by the redevelopment district

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1 for the purpose of financing or refinancing the residential2 housing development program established under section 53 of3 this chapter for the allocation area.4 (B) Establish, augment, or restore the debt service reserve for5 bonds payable solely or in part from allocated tax proceeds in6 the allocation area.7 (C) Pay the principal of and interest on bonds payable from8 allocated tax proceeds in the allocation area and from the9 special tax levied under section 27 of this chapter.

10 (D) Pay the principal of and interest on bonds issued by the11 unit to pay for local public improvements that are physically12 located in or physically connected to the allocation area.13 (E) Pay premiums on the redemption before maturity of bonds14 payable solely or in part from allocated tax proceeds in the15 allocation area.16 (F) Make payments on leases payable from allocated tax17 proceeds in the allocation area under section 25.2 of this18 chapter.19 (G) Reimburse the unit for expenditures made by the unit for20 local public improvements (which include buildings, parking21 facilities, and other items described in section 25.1(a) of this22 chapter) that are physically located in or physically connected23 to the allocation area.24 (d) Notwithstanding section 39(b) of this chapter, the commission25 shall, relative to the allocation fund established under section 39(b) of26 this chapter for an allocation area for a residential housing27 development program adopted under section 53 of this chapter, do the28 following before June 15 of each year:29 (1) Determine the amount, if any, by which the assessed value of30 the taxable property in the allocation area for the most recent31 assessment date minus the base assessed value, when multiplied32 by the estimated tax rate of the allocation area, will exceed the33 amount of assessed value needed to produce the property taxes34 necessary to:35 (A) make the distribution distributions required under section36 39(b)(2) and 39(b)(3) of this chapter;37 (B) make, when due, principal and interest payments on bonds38 described in section 39(b)(3) 39(b)(4) of this chapter;39 (C) pay the amount necessary for other purposes described in40 section 39(b)(3) 39(b)(4) of this chapter; and41 (D) reimburse the county or municipality for anticipated42 expenditures described in subsection (c)(2).

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1 (2) Provide a written notice to the county auditor, the fiscal body2 of the county or municipality that established the department of3 redevelopment, the officers who are authorized to fix budgets, tax4 rates, and tax levies under IC 6-1.1-17-5 for each of the other5 taxing units that are wholly or partly located within the allocation6 area, and (in an electronic format) the department of local7 government finance. The notice must:8 (A) state the amount, if any, of excess property taxes that the9 commission has determined may be paid to the respective

10 taxing units in the manner prescribed in section 39(b)(1) of11 this chapter; or12 (B) state that the commission has determined that there is no13 excess assessed value that may be allocated to the respective14 taxing units in the manner prescribed in subdivision (1).15 The county auditor shall allocate to the respective taxing units the16 amount, if any, of excess assessed value determined by the17 commission.18 (e) If the amount of excess assessed value determined by the19 commission is expected to generate more than two hundred percent20 (200%) of the amount of allocated tax proceeds:21 (1) necessary to make, when due, principal and interest payments22 on bonds described in 39(b)(3) section 39(b)(4) of this chapter;23 plus24 (2) the amount necessary for other purposes described in 39(b)(3)25 section 39(b)(4) of this chapter;26 the commission shall submit to the county or municipal legislative27 body its determination of the excess assessed value that the28 commission proposes to allocate to the respective taxing units in the29 manner prescribed in subsection (d)(2). The county or municipal30 legislative body may approve the commission's determination or31 modify the amount of the excess assessed value that will be allocated32 to the respective taxing units in the manner prescribed in subsection33 (d)(2).34 (f) An allocation area must terminate on the date the residential35 housing development program is terminated as set forth in section36 53(e) of this chapter.37 SECTION 10. IC 36-7-14.5-12.5, AS AMENDED BY38 P.L.242-2015, SECTION 43, IS AMENDED TO READ AS39 FOLLOWS [EFFECTIVE MAY 1, 2020]: Sec. 12.5. (a) This section40 applies only to an authority in a county having a United States41 government military base that is scheduled for closing or is completely42 or partially inactive or closed.

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1 (b) In order to accomplish the purposes set forth in section 11 of this2 chapter, an authority may create an economic development area:3 (1) by following the procedures set forth in IC 36-7-14-41 for the4 establishment of an economic development area by a5 redevelopment commission; and6 (2) with the same effect as if the economic development area was7 created by a redevelopment commission.8 The area established under this section shall be established only in the9 area where a United States government military base that is scheduled

10 for closing or is completely or partially inactive or closed is or was11 located.12 (c) In order to accomplish the purposes set forth in section 11 of this13 chapter, an authority may do the following in a manner that serves an14 economic development area created under this section:15 (1) Acquire by purchase, exchange, gift, grant, condemnation, or16 lease, or any combination of methods, any personal property or17 interest in real property needed for the redevelopment of18 economic development areas located within the corporate19 boundaries of the unit.20 (2) Hold, use, sell (by conveyance by deed, land sale contract, or21 other instrument), exchange, lease, rent, or otherwise dispose of22 property acquired for use in the redevelopment of economic23 development areas on the terms and conditions that the authority24 considers best for the unit and the unit's inhabitants.25 (3) Sell, lease, or grant interests in all or part of the real property26 acquired for redevelopment purposes to any other department of27 the unit or to any other governmental agency for public ways,28 levees, sewerage, parks, playgrounds, schools, and other public29 purposes on any terms that may be agreed on.30 (4) Clear real property acquired for redevelopment purposes.31 (5) Repair and maintain structures acquired for redevelopment32 purposes.33 (6) Remodel, rebuild, enlarge, or make major structural34 improvements on structures acquired for redevelopment purposes.35 (7) Survey or examine any land to determine whether the land36 should be included within an economic development area to be37 acquired for redevelopment purposes and to determine the value38 of that land.39 (8) Appear before any other department or agency of the unit, or40 before any other governmental agency in respect to any matter41 affecting:42 (A) real property acquired or being acquired for

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1 redevelopment purposes; or2 (B) any economic development area within the jurisdiction of3 the authority.4 (9) Institute or defend in the name of the unit any civil action, but5 all actions against the authority must be brought in the circuit or6 superior court of the county where the authority is located.7 (10) Use any legal or equitable remedy that is necessary or8 considered proper to protect and enforce the rights of and perform9 the duties of the authority.

10 (11) Exercise the power of eminent domain in the name of and11 within the corporate boundaries of the unit subject to the same12 conditions and procedures that apply to the exercise of the power13 of eminent domain by a redevelopment commission under14 IC 36-7-14.15 (12) Appoint an executive director, appraisers, real estate experts,16 engineers, architects, surveyors, and attorneys.17 (13) Appoint clerks, guards, laborers, and other employees the18 authority considers advisable, except that those appointments19 must be made in accordance with the merit system of the unit if20 such a system exists.21 (14) Prescribe the duties and regulate the compensation of22 employees of the authority.23 (15) Provide a pension and retirement system for employees of24 the authority by using the public employees' retirement fund or a25 retirement plan approved by the United States Department of26 Housing and Urban Development.27 (16) Discharge and appoint successors to employees of the28 authority subject to subdivision (13).29 (17) Rent offices for use of the department or authority, or accept30 the use of offices furnished by the unit.31 (18) Equip the offices of the authority with the necessary32 furniture, furnishings, equipment, records, and supplies.33 (19) Design, order, contract for, and construct, reconstruct,34 improve, or renovate the following:35 (A) Any local public improvement or structure that is36 necessary for redevelopment purposes or economic37 development within the corporate boundaries of the unit.38 (B) Any structure that enhances development or economic39 development.40 (20) Contract for the construction, extension, or improvement of41 pedestrian skyways (as defined in IC 36-7-14-12.2(c)).42 (21) Accept loans, grants, and other forms of financial assistance

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1 from, or contract with, the federal government, the state2 government, a municipal corporation, a special taxing district, a3 foundation, or any other source.4 (22) Make and enter into all contracts and agreements necessary5 or incidental to the performance of the duties of the authority and6 the execution of the powers of the authority under this chapter.7 (23) Take any action necessary to implement the purpose of the8 authority.9 (24) Provide financial assistance, in the manner that best serves

10 the purposes set forth in section 11 of this chapter, including11 grants and loans, to enable private enterprise to develop,12 redevelop, and reuse military base property or otherwise enable13 private enterprise to provide social and economic benefits to the14 citizens of the unit.15 (d) An authority may designate all or a portion of an economic16 development area created under this section as an allocation area by17 following the procedures set forth in IC 36-7-14-39 for the18 establishment of an allocation area by a redevelopment commission.19 The allocation provision may modify the definition of "property taxes"20 under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the21 depreciable personal property located and taxable on the site of22 operations of designated taxpayers in accordance with the procedures23 applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.324 applies to such a modification. An allocation area established by an25 authority under this section is a special taxing district authorized by the26 general assembly to enable the unit to provide special benefits to27 taxpayers in the allocation area by promoting economic development28 that is of public use and benefit. For allocation areas established for an29 economic development area created under this section after June 30,30 1997, and to the expanded portion of an allocation area for an31 economic development area that was established before June 30, 1997,32 and that is expanded under this section after June 30, 1997, the net33 assessed value of property that is assessed as residential property under34 the rules of the department of local government finance, as finally35 determined for any assessment date, must be allocated. All of the36 provisions of IC 36-7-14-39 apply to an allocation area created under37 this section, except that the authority shall be vested with the rights and38 duties of a commission as referenced in those sections, except that the39 expiration date of any allocation provision for the allocation area is the40 later of July 1, 2016, or the expiration date determined under41 IC 36-7-14-39(b), and except that, notwithstanding42 IC 36-7-14-39(b)(3), IC 36-7-14-39(b)(4), property tax proceeds paid

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1 into the allocation fund may be used by the authority only to do one (1)2 or more of the following:3 (1) Pay the principal of and interest and redemption premium on4 any obligations incurred by the special taxing district or any other5 entity for the purpose of financing or refinancing military base6 reuse activities in or serving or benefiting that allocation area.7 (2) Establish, augment, or restore the debt service reserve for8 obligations payable solely or in part from allocated tax proceeds9 in that allocation area or from other revenues of the authority

10 (including lease rental revenues).11 (3) Make payments on leases payable solely or in part from12 allocated tax proceeds in that allocation area.13 (4) Reimburse any other governmental body for expenditures14 made by it that benefits or provides for local public improvements15 or structures in or serving or benefiting that allocation area.16 (5) Pay expenses incurred by the authority that benefit or provide17 for local public improvements or structures that are in the18 allocation area or serving or benefiting the allocation area.19 (6) Reimburse public and private entities for expenses incurred in20 training employees of industrial facilities that are located:21 (A) in the allocation area; and22 (B) on a parcel of real property that has been classified as23 industrial property under the rules of the department of local24 government finance.25 However, the total amount of money spent for this purpose in any26 year may not exceed the total amount of money in the allocation27 fund that is attributable to property taxes paid by the industrial28 facilities described in clause (B). The reimbursements under this29 subdivision must be made within three (3) years after the date on30 which the investments that are the basis for the increment31 financing are made.32 (e) In addition to other methods of raising money for property33 acquisition, redevelopment, or economic development activities in or34 directly serving or benefiting an economic development area created35 by an authority under this section, and in anticipation of the taxes36 allocated under subsection (d), other revenues of the authority, or any37 combination of these sources, the authority may, by resolution, issue38 the bonds of the special taxing district in the name of the unit. Bonds39 issued under this section may be issued in any amount without40 limitation. The following apply if such a resolution is adopted:41 (1) The authority shall certify a copy of the resolution authorizing42 the bonds to the municipal or county fiscal officer, who shall then

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1 prepare the bonds. The seal of the unit must be impressed on the2 bonds, or a facsimile of the seal must be printed on the bonds.3 (2) The bonds must be executed by the appropriate officer of the4 unit and attested by the unit's fiscal officer.5 (3) The bonds are exempt from taxation for all purposes.6 (4) Bonds issued under this section may be sold at public sale in7 accordance with IC 5-1-11 or at a negotiated sale.8 (5) The bonds are not a corporate obligation of the unit but are an9 indebtedness of the taxing district. The bonds and interest are

10 payable, as set forth in the bond resolution of the authority:11 (A) from the tax proceeds allocated under subsection (d);12 (B) from other revenues available to the authority; or13 (C) from a combination of the methods stated in clauses (A)14 and (B).15 (6) Proceeds from the sale of bonds may be used to pay the cost16 of interest on the bonds for a period not to exceed five (5) years17 from the date of issuance.18 (7) Laws relating to the filing of petitions requesting the issuance19 of bonds and the right of taxpayers and voters to remonstrate20 against the issuance of bonds do not apply to bonds issued under21 this section.22 (8) If a debt service reserve is created from the proceeds of bonds,23 the debt service reserve may be used to pay principal and interest24 on the bonds as provided in the bond resolution.25 (9) If bonds are issued under this chapter that are payable solely26 or in part from revenues to the authority from a project or27 projects, the authority may adopt a resolution or trust indenture or28 enter into covenants as is customary in the issuance of revenue29 bonds. The resolution or trust indenture may pledge or assign the30 revenues from the project or projects. The resolution or trust31 indenture may also contain any provisions for protecting and32 enforcing the rights and remedies of the bond owners as may be33 reasonable and proper and not in violation of law, including34 covenants setting forth the duties of the authority. The authority35 may establish fees and charges for the use of any project and36 covenant with the owners of any bonds to set those fees and37 charges at a rate sufficient to protect the interest of the owners of38 the bonds. Any revenue bonds issued by the authority that are39 payable solely from revenues of the authority shall contain a40 statement to that effect in the form of bond.41 (f) Notwithstanding section 8(a) of this chapter, an ordinance42 adopted under section 11 of this chapter may provide, or be amended

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1 to provide, that the board of directors of the authority shall be2 composed of not fewer than three (3) nor more than eleven (11)3 members, who must be residents of or be employed at a place of4 employment located within the unit. The members shall be appointed5 by the executive of the unit.6 (g) The acquisition of real and personal property by an authority7 under this section is not subject to the provisions of IC 5-22,8 IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the9 purchase of property by public bodies or their agencies.

10 (h) An authority may negotiate for the sale, lease, or other11 disposition of real and personal property without complying with the12 provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other13 statute governing the disposition of public property.14 (i) Notwithstanding any other law, utility services provided within15 an economic development area established under this section are16 subject to regulation by the appropriate regulatory agencies unless the17 utility service is provided by a utility that provides utility service solely18 within the geographic boundaries of an existing or a closed military19 installation, in which case the utility service is not subject to regulation20 for purposes of rate making, regulation, service delivery, or issuance of21 bonds or other forms of indebtedness. However, this exemption from22 regulation does not apply to utility service if the service is generated,23 treated, or produced outside the boundaries of the existing or closed24 military installation.25 SECTION 11. IC 36-7-15.1-17, AS AMENDED BY P.L.203-2011,26 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE27 MAY 1, 2020]: Sec. 17. (a) In addition to other methods of raising28 money for property acquisition or redevelopment in a redevelopment29 project area, and in anticipation of the special tax to be levied under30 section 19 of this chapter, the taxes allocated under section 26 of this31 chapter, or other revenues of the redevelopment district, the32 commission may, by resolution, issue the bonds of the redevelopment33 district in the name of the consolidated city and in accordance with34 IC 36-3-5-8. The amount of the bonds may not exceed the total, as35 estimated by the commission, of all expenses reasonably incurred in36 connection with the acquisition and redevelopment of the property,37 including:38 (1) the total cost of all land, rights-of-way, and other property to39 be acquired and redeveloped;40 (2) all reasonable and necessary architectural, engineering, legal,41 financing, accounting, advertising, bond discount, and42 supervisory expenses related to the acquisition and redevelopment

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1 of the property or the issuance of bonds;2 (3) capitalized interest permitted in this chapter and a debt service3 reserve for the bonds, to the extent that the redevelopment4 commission determines that a reserve is reasonably required;5 (4) the total cost of all clearing and construction work provided6 for in the resolution; and7 (5) expenses that the commission is required or permitted to pay8 under IC 8-23-17.9 (b) If the commission plans to acquire different parcels of land or let

10 different contracts for redevelopment work at approximately the same11 time, whether under one (1) or more resolutions, the commission may12 provide for the total cost in one (1) issue of bonds.13 (c) The bonds must be dated as set forth in the bond resolution and14 negotiable subject to the requirements of the bond resolution for the15 registration of the bonds. The resolution authorizing the bonds must16 state:17 (1) the denominations of the bonds;18 (2) the place or places at which the bonds are payable; and19 (3) the term of the bonds, which may not exceed:20 (A) fifty (50) years, for bonds issued before July 1, 2008; or21 (B) twenty-five (25) years, for bonds issued after June 30,22 2008.23 The resolution may also state that the bonds are redeemable before24 maturity with or without a premium, as determined by the commission.25 (d) The commission shall certify a copy of the resolution authorizing26 the bonds to the fiscal officer of the consolidated city, who shall then27 prepare the bonds. The seal of the unit must be impressed on the bonds,28 or a facsimile of the seal must be printed on the bonds.29 (e) The bonds shall be executed by the city executive and attested30 by the fiscal officer. The interest coupons, if any, shall be executed by31 the facsimile signature of the fiscal officer.32 (f) The bonds are exempt from taxation as provided by IC 6-8-5.33 (g) The city fiscal officer shall sell the bonds according to law.34 Notwithstanding IC 36-3-5-8, bonds payable solely or in part from tax35 proceeds allocated under section 26(b)(3) 26(b)(4) of this chapter or36 other revenues of the district may be sold at private negotiated sale and37 at a price or prices not less than ninety-seven percent (97%) of the par38 value.39 (h) The bonds are not a corporate obligation of the city but are an40 indebtedness of the redevelopment district. The bonds and interest are41 payable:42 (1) from a special tax levied upon all of the property in the

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1 redevelopment district, as provided by section 19 of this chapter;2 (2) from the tax proceeds allocated under section 26(b)(3)3 26(b)(4) of this chapter;4 (3) from other revenues available to the commission; or5 (4) from a combination of the methods stated in subdivisions (1)6 through (3);7 and from any revenues of the designated project. If the bonds are8 payable solely from the tax proceeds allocated under section 26(b)(3)9 26(b)(4) of this chapter, other revenues of the redevelopment

10 commission, or any combination of these sources, they may be issued11 in any amount without limitation.12 (i) Proceeds from the sale of the bonds may be used to pay the cost13 of interest on the bonds for a period not to exceed five (5) years from14 the date of issue.15 (j) Notwithstanding IC 36-3-5-8, the laws relating to the filing of16 petitions requesting the issuance of bonds and the right of taxpayers17 and voters to remonstrate against, or vote on, the issuance of bonds18 applicable to bonds issued under this chapter do not apply to bonds19 payable solely or in part from tax proceeds allocated under section20 26(b)(3) 26(b)(4) of this chapter, other revenues of the commission, or21 any combination of these sources.22 (k) If bonds are issued under this chapter that are payable solely or23 in part from revenues to the commission from a project or projects, the24 commission may adopt a resolution or trust indenture or enter into25 covenants as is customary in the issuance of revenue bonds. The26 resolution or trust indenture may pledge or assign the revenues from27 the project or projects, but may not convey or mortgage any project or28 parts of a project. The resolution or trust indenture may also contain29 any provisions for protecting and enforcing the rights and remedies of30 the bond owners as may be reasonable and proper and not in violation31 of law, including covenants setting forth the duties of the commission.32 The commission may establish fees and charges for the use of any33 project and covenant with the owners of any bonds to set those fees and34 charges at a rate sufficient to protect the interest of the owners of the35 bonds. Any revenue bonds issued by the commission that are payable36 solely from revenues of the commission must contain a statement to37 that effect in the form of bond.38 SECTION 12. IC 36-7-15.1-19, AS AMENDED BY P.L.203-2011,39 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE40 MAY 1, 2020]: Sec. 19. (a) This section applies only to:41 (1) bonds that are issued under section 17 of this chapter; or42 (2) leases entered into under section 17.1 of this chapter;

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1 that are payable from a special tax levied upon all of the property in the2 redevelopment district. This section does not apply to bonds or leases3 that are payable solely from tax proceeds allocated under section4 26(b)(3) 26(b)(4) of this chapter, other revenues of the commission, or5 any combination of these sources.6 (b) The city-county legislative body shall levy each year a special7 tax on all of the property of the redevelopment district, in such a8 manner as to meet and pay:9 (1) the principal of the bonds as they mature, together with all

10 accruing interest on the bonds; or11 (2) lease rental payments under section 17.1 of this chapter.12 The tax levied shall be certified to the fiscal officers of the consolidated13 city and the county before October 2 in each year. The tax shall be14 estimated and entered on the tax duplicate by the county auditor and15 shall be collected and enforced by the county treasurer in the same16 manner as other state and county taxes are estimated, entered,17 collected, and enforced.18 (c) As the tax is collected, it shall be accumulated in a separate fund19 to be known as the redevelopment district bond fund and shall be20 applied to the payment of the bonds as they mature and the interest on21 the bonds as it accrues, or to make lease payments and to no other22 purpose. All accumulations of the fund before their use for the payment23 of bonds and interest or to make lease payments shall be deposited with24 the depository or depositories for other public funds of the city in25 accordance with the statutes concerning the deposit of public funds,26 unless they are invested under IC 5-13.27 (d) The tax levies provided for in this section are reviewable by28 other bodies vested by law with the authority to ascertain that the levies29 are sufficient to raise the amount that, with other amounts available, is30 sufficient to meet the payments under the lease payable from the levy31 of taxes.32 SECTION 13. IC 36-7-15.1-26, AS AMENDED BY P.L.214-2019,33 SECTION 39, AND AS AMENDED BY P.L.257-2019, SECTION34 126, AND AS AMENDED BY THE TECHNICAL CORRECTIONS35 BILL OF THE 2020 GENERAL ASSEMBLY, IS CORRECTED AND36 AMENDED TO READ AS FOLLOWS [EFFECTIVE MAY 1, 2020]:37 Sec. 26. (a) As used in this section:38 "Allocation area" means that part of a redevelopment project area39 to which an allocation provision of a resolution adopted under section40 8 of this chapter refers for purposes of distribution and allocation of41 property taxes.42 "Base assessed value" means, subject to subsection (j), the

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1 following:2 (1) If an allocation provision is adopted after June 30, 1995, in a3 declaratory resolution or an amendment to a declaratory4 resolution establishing an economic development area:5 (A) the net assessed value of all the property as finally6 determined for the assessment date immediately preceding the7 effective date of the allocation provision of the declaratory8 resolution, as adjusted under subsection (h); plus9 (B) to the extent that it is not included in clause (A), the net

10 assessed value of property that is assessed as residential11 property under the rules of the department of local government12 finance, within the allocation area, as finally determined for13 any the current assessment date. after the effective date of the14 allocation provision.15 (2) If an allocation provision is adopted after June 30, 1997, in a16 declaratory resolution or an amendment to a declaratory17 resolution establishing a redevelopment project area:18 (A) the net assessed value of all the property as finally19 determined for the assessment date immediately preceding the20 effective date of the allocation provision of the declaratory21 resolution, as adjusted under subsection (h); plus22 (B) to the extent that it is not included in clause (A), the net23 assessed value of property that is assessed as residential24 property under the rules of the department of local government25 finance, within the allocation area, as finally determined for26 any the current assessment date. after the effective date of the27 allocation provision.28 (3) If:29 (A) an allocation provision adopted before June 30, 1995, in30 a declaratory resolution or an amendment to a declaratory31 resolution establishing a redevelopment project area expires32 after June 30, 1997; and33 (B) after June 30, 1997, a new allocation provision is included34 in an amendment to the declaratory resolution;35 the net assessed value of all the property as finally determined for36 the assessment date immediately preceding the effective date of37 the allocation provision adopted after June 30, 1997, as adjusted38 under subsection (h).39 (4) Except as provided in subdivision (5), for all other allocation40 areas, the net assessed value of all the property as finally41 determined for the assessment date immediately preceding the42 effective date of the allocation provision of the declaratory

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1 resolution, as adjusted under subsection (h).2 (5) If an allocation area established in an economic development3 area before July 1, 1995, is expanded after June 30, 1995, the4 definition in subdivision (1) applies to the expanded part of the5 area added after June 30, 1995.6 (6) If an allocation area established in a redevelopment project7 area before July 1, 1997, is expanded after June 30, 1997, the8 definition in subdivision (2) applies to the expanded part of the9 area added after June 30, 1997.

10 Except as provided in section 26.2 of this chapter, "property taxes"11 means taxes imposed under IC 6-1.1 on real property. However, upon12 approval by a resolution of the redevelopment commission adopted13 before June 1, 1987, "property taxes" also includes taxes imposed14 under IC 6-1.1 on depreciable personal property. If a redevelopment15 commission adopted before June 1, 1987, a resolution to include within16 the definition of property taxes, taxes imposed under IC 6-1.1 on17 depreciable personal property that has a useful life in excess of eight18 (8) years, the commission may by resolution determine the percentage19 of taxes imposed under IC 6-1.1 on all depreciable personal property20 that will be included within the definition of property taxes. However,21 the percentage included must not exceed twenty-five percent (25%) of22 the taxes imposed under IC 6-1.1 on all depreciable personal property.23 (b) A resolution adopted under section 8 of this chapter on or before24 the allocation deadline determined under subsection (i) may include a25 provision with respect to the allocation and distribution of property26 taxes for the purposes and in the manner provided in this section. A27 resolution previously adopted may include an allocation provision by28 the amendment of that resolution on or before the allocation deadline29 determined under subsection (i) in accordance with the procedures30 required for its original adoption. A declaratory resolution or31 amendment that establishes an allocation provision must include a32 specific finding of fact, supported by evidence, that the adoption of the33 allocation provision will result in new property taxes in the area that34 would not have been generated but for the adoption of the allocation35 provision. For an allocation area established before July 1, 1995, the36 expiration date of any allocation provisions for the allocation area is37 June 30, 2025, or the last date of any obligations that are outstanding38 on July 1, 2015, whichever is later. However, for an allocation area39 identified as the Consolidated Allocation Area in the report submitted40 in 2013 to the fiscal body under section 36.3 of this chapter, the41 expiration date of any allocation provisions for the allocation area is42 January 1, 2051. A declaratory resolution or an amendment that

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1 establishes an allocation provision after June 30, 1995, must specify an2 expiration date for the allocation provision. For an allocation area3 established before July 1, 2008, the expiration date may not be more4 than thirty (30) years after the date on which the allocation provision5 is established. For an allocation area established after June 30, 2008,6 the expiration date may not be more than twenty-five (25) years after7 the date on which the first obligation was incurred to pay principal and8 interest on bonds or lease rentals on leases payable from tax increment9 revenues. However, with respect to bonds or other obligations that were

10 issued before July 1, 2008, if any of the bonds or other obligations that11 were scheduled when issued to mature before the specified expiration12 date and that are payable only from allocated tax proceeds with respect13 to the allocation area remain outstanding as of the expiration date, the14 allocation provision does not expire until all of the bonds or other15 obligations are no longer outstanding. The allocation provision may16 apply to all or part of the redevelopment project area. The allocation17 provision must require that any property taxes subsequently levied by18 or for the benefit of any public body entitled to a distribution of19 property taxes on taxable property in the allocation area be allocated20 and distributed as follows:21 (1) Except as otherwise provided in this section, the proceeds of22 the taxes attributable to the lesser of:23 (A) the assessed value of the property for the assessment date24 with respect to which the allocation and distribution is made;25 or26 (B) the base assessed value;27 shall be allocated to and, when collected, paid into the funds of28 the respective taxing units.29 (2) This subdivision applies only to new allocation areas30 established after April 30, 2020. The property tax proceeds31 not otherwise included in subdivision (1) that are attributable32 to the portion of the assessed value of property that represents33 the percentage of property tax revenue that was budgeted by34 taxing units for police or fire services in the allocation area35 immediately preceding the effective date of the allocation36 provision shall be allocated and paid into the funds of those37 respective taxing units.38 (2) (3) The excess of the proceeds of the property taxes imposed39 for the assessment date with respect to which the allocation and40 distribution is made that are attributable to taxes imposed after41 being approved by the voters in a referendum or local public42 question conducted after April 30, 2010, not otherwise included

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1 in subdivision (1) shall be allocated to and, when collected, paid2 into the funds of the taxing unit for which the referendum or local3 public question was conducted.4 (3) (4) Except as otherwise provided in this section, property tax5 proceeds in excess of those described in subdivisions (1), (2), and6 (2) (3) shall be allocated to the redevelopment district and, when7 collected, paid into a special fund for that allocation area that may8 be used by the redevelopment district only to do one (1) or more9 of the following:

10 (A) Pay the principal of and interest on any obligations11 payable solely from allocated tax proceeds that are incurred by12 the redevelopment district for the purpose of financing or13 refinancing the redevelopment of that allocation area.14 (B) Establish, augment, or restore the debt service reserve for15 bonds payable solely or in part from allocated tax proceeds in16 that allocation area.17 (C) Pay the principal of and interest on bonds payable from18 allocated tax proceeds in that allocation area and from the19 special tax levied under section 19 of this chapter.20 (D) Pay the principal of and interest on bonds issued by the21 consolidated city to pay for local public improvements that are22 physically located in or physically connected to that allocation23 area.24 (E) Pay premiums on the redemption before maturity of bonds25 payable solely or in part from allocated tax proceeds in that26 allocation area.27 (F) Make payments on leases payable from allocated tax28 proceeds in that allocation area under section 17.1 of this29 chapter.30 (G) Reimburse the consolidated city for expenditures for local31 public improvements (which include buildings, parking32 facilities, and other items set forth in section 17 of this33 chapter) that are physically located in or physically connected34 to that allocation area.35 (H) Reimburse the unit for rentals paid by it for a building or36 parking facility that is physically located in or physically37 connected to that allocation area under any lease entered into38 under IC 36-1-10.39 (I) Reimburse public and private entities for expenses incurred40 in training employees of industrial facilities that are located:41 (i) in the allocation area; and42 (ii) on a parcel of real property that has been classified as

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1 industrial property under the rules of the department of local2 government finance.3 However, the total amount of money spent for this purpose in4 any year may not exceed the total amount of money in the5 allocation fund that is attributable to property taxes paid by the6 industrial facilities described in this clause. The7 reimbursements under this clause must be made within three8 (3) years after the date on which the investments that are the9 basis for the increment financing are made.

10 (J) Pay the costs of carrying out an eligible efficiency project11 (as defined in IC 36-9-41-1.5) within the unit that established12 the redevelopment commission. However, property tax13 proceeds may be used under this clause to pay the costs of14 carrying out an eligible efficiency project only if those15 property tax proceeds exceed the amount necessary to do the16 following:17 (i) Make, when due, any payments required under clauses18 (A) through (I), including any payments of principal and19 interest on bonds and other obligations payable under this20 subdivision, any payments of premiums under this21 subdivision on the redemption before maturity of bonds, and22 any payments on leases payable under this subdivision.23 (ii) Make any reimbursements required under this24 subdivision.25 (iii) Pay any expenses required under this subdivision.26 (iv) Establish, augment, or restore any debt service reserve27 under this subdivision.28 (K) Expend money and provide financial assistance as29 authorized in section 7(a)(21) of this chapter.30 The special fund may not be used for operating expenses of the31 commission.32 (4) (5) Before June 15 of each year, the commission shall do the33 following:34 (A) Determine the amount, if any, by which the assessed value35 of the taxable property in the allocation area for the most36 recent assessment date minus the base assessed value, when37 multiplied by the estimated tax rate of the allocation area will38 exceed the amount of assessed value needed to provide the39 property taxes necessary to make, when due, principal and40 interest payments on bonds described in subdivision (3) (4)41 plus the amount necessary for other purposes described in42 subdivision (3) (4) and subsection (g).

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1 (B) Provide a written notice to the county auditor, the2 legislative body of the consolidated city, the officers who are3 authorized to fix budgets, tax rates, and tax levies under4 IC 6-1.1-17-5 for each of the other taxing units that is wholly5 or partly located within the allocation area, and (in an6 electronic format) the department of local government finance.7 The notice must:8 (i) state the amount, if any, of excess assessed value that the9 commission has determined may be allocated to the

10 respective taxing units in the manner prescribed in11 subdivision (1); or12 (ii) state that the commission has determined that there is no13 excess assessed value that may be allocated to the respective14 taxing units in the manner prescribed in subdivision (1).15 The county auditor shall allocate to the respective taxing units16 the amount, if any, of excess assessed value determined by the17 commission. The commission may not authorize an allocation18 to the respective taxing units under this subdivision if to do so19 would endanger the interests of the holders of bonds described20 in subdivision (3). (4).21 (C) If:22 (i) the amount of excess assessed value determined by the23 commission is expected to generate more than two hundred24 percent (200%) of the amount of allocated tax proceeds25 necessary to make, when due, principal and interest26 payments on bonds described in subdivision (3); (4); plus27 (ii) the amount necessary for other purposes described in28 subdivision (3) (4) and subsection (g);29 the commission shall submit to the legislative body of the unit30 the commission's determination of the excess assessed value31 that the commission proposes to allocate to the respective32 taxing units in the manner prescribed in subdivision (1). The33 legislative body of the unit may approve the commission's34 determination or modify the amount of the excess assessed35 value that will be allocated to the respective taxing units in the36 manner prescribed in subdivision (1).37 (c) For the purpose of allocating taxes levied by or for any taxing38 unit or units, the assessed value of taxable property in a territory in the39 allocation area that is annexed by any taxing unit after the effective40 date of the allocation provision of the resolution is the lesser of:41 (1) the assessed value of the property for the assessment date with42 respect to which the allocation and distribution is made; or

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1 (2) the base assessed value.2 (d) Property tax proceeds allocable to the redevelopment district3 under subsection (b)(3) (b)(4) may, subject to subsection (b)(4), (b)(5),4 be irrevocably pledged by the redevelopment district for payment as set5 forth in subsection (b)(3). (b)(4).6 (e) Notwithstanding any other law, each assessor shall, upon7 petition of the commission, reassess the taxable property situated upon8 or in, or added to, the allocation area, effective on the next assessment9 date after the petition.

10 (f) Notwithstanding any other law, the assessed value of all taxable11 property in the allocation area, for purposes of tax limitation, property12 tax replacement, and formulation of the budget, tax rate, and tax levy13 for each political subdivision in which the property is located is the14 lesser of:15 (1) the assessed value of the property as valued without regard to16 this section; or17 (2) the base assessed value.18 (g) If any part of the allocation area is located in an enterprise zone19 created under IC 5-28-15, the unit that designated the allocation area20 shall create funds as specified in this subsection. A unit that has21 obligations, bonds, or leases payable from allocated tax proceeds under22 subsection (b)(3) (b)(4) shall establish an allocation fund for the23 purposes specified in subsection (b)(3) (b)(4) and a special zone fund.24 Such a unit shall, until the end of the enterprise zone phase out period,25 deposit each year in the special zone fund the amount in the allocation26 fund derived from property tax proceeds in excess of those described27 in subsection (b)(1), and (b)(2), and (b)(3) from property located in the28 enterprise zone that exceeds the amount sufficient for the purposes29 specified in subsection (b)(3) (b)(4) for the year. A unit that has no30 obligations, bonds, or leases payable from allocated tax proceeds under31 subsection (b)(3) (b)(4) shall establish a special zone fund and deposit32 all the property tax proceeds in excess of those described in subsection33 (b)(1), and (b)(2), and (b)(3) in the fund derived from property tax34 proceeds in excess of those described in subsection (b)(1), and (b)(2),35 and (b)(3) from property located in the enterprise zone. The unit that36 creates the special zone fund shall use the fund, based on the37 recommendations of the urban enterprise association, for one (1) or38 more of the following purposes:39 (1) To pay for programs in job training, job enrichment, and basic40 skill development designed to benefit residents and employers in41 the enterprise zone. The programs must reserve at least one-half42 (1/2) of the enrollment in any session for residents of the

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1 enterprise zone.2 (2) To make loans and grants for the purpose of stimulating3 business activity in the enterprise zone or providing employment4 for enterprise zone residents in the enterprise zone. These loans5 and grants may be made to the following:6 (A) Businesses operating in the enterprise zone.7 (B) Businesses that will move their operations to the enterprise8 zone if such a loan or grant is made.9 (3) To provide funds to carry out other purposes specified in

10 subsection (b)(3). (b)(4). However, where reference is made in11 subsection (b)(3) (b)(4) to the allocation area, the reference refers12 for purposes of payments from the special zone fund only to that13 part of the allocation area that is also located in the enterprise14 zone.15 (h) The state board of accounts and department of local government16 finance shall make the rules and prescribe the forms and procedures17 that they consider expedient for the implementation of this chapter.18 After each reassessment under a reassessment plan prepared under19 IC 6-1.1-4-4.2, the department of local government finance shall adjust20 the base assessed value one (1) time to neutralize any effect of the21 reassessment of the real property in the area on the property tax22 proceeds allocated to the redevelopment district under this section.23 After each annual adjustment under IC 6-1.1-4-4.5, the department of24 local government finance shall adjust the base assessed value to25 neutralize any effect of the annual adjustment on the property tax26 proceeds allocated to the redevelopment district under this section.27 However, the adjustments under this subsection may not include the28 effect of property tax abatements under IC 6-1.1-12.1, and these29 adjustments may not produce less property tax proceeds allocable to30 the redevelopment district under subsection (b)(3) (b)(4) than would31 otherwise have been received if the reassessment under the32 reassessment plan or annual adjustment had not occurred. The33 department of local government finance may prescribe procedures for34 county and township officials to follow to assist the department in35 making the adjustments.36 (i) The allocation deadline referred to in subsection (b) is37 determined in the following manner:38 (1) The initial allocation deadline is December 31, 2011.39 (2) Subject to subdivision (3), the initial allocation deadline and40 subsequent allocation deadlines are automatically extended in41 increments of five (5) years, so that allocation deadlines42 subsequent to the initial allocation deadline fall on December 31,

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1 2016, and December 31 of each fifth year thereafter.2 (3) At least one (1) year before the date of an allocation deadline3 determined under subdivision (2), the general assembly may enact4 a law that:5 (A) terminates the automatic extension of allocation deadlines6 under subdivision (2); and7 (B) specifically designates a particular date as the final8 allocation deadline.9 (j) If the commission adopts a declaratory resolution or an

10 amendment to a declaratory resolution that contains an allocation11 provision and the commission makes either of the filings required12 under section 10(e) of this chapter after the first anniversary of the13 effective date of the allocation provision, the auditor of the county in14 which the unit is located shall compute the base assessed value for the15 allocation area using the assessment date immediately preceding the16 later of:17 (1) the date on which the documents are filed with the county18 auditor; or19 (2) the date on which the documents are filed with the department20 of local government finance.21 SECTION 14. IC 36-7-15.1-35, AS AMENDED BY P.L.214-2019,22 SECTION 41, AND P.L.257-2019, SECTION 128, IS AMENDED TO23 READ AS FOLLOWS [EFFECTIVE MAY 1, 2020]: Sec. 35. (a)24 Notwithstanding section 26(a) of this chapter, with respect to the25 allocation and distribution of property taxes for the accomplishment of26 a program adopted under section 32 of this chapter, "base assessed27 value" means, subject to section 26(j) of this chapter, the net assessed28 value of all of the land as finally determined for the assessment date29 immediately preceding the effective date of the allocation provision, as30 adjusted under section 26(h) of this chapter. However, "base assessed31 value" does not include the value of real property improvements to the32 land.33 (b) The special fund established under section 26(b) of this chapter34 for the allocation area for a program adopted under section 32 of this35 chapter may be used only for purposes related to the accomplishment36 of the program, including the following:37 (1) The construction, rehabilitation, or repair of residential units38 within the allocation area.39 (2) The construction, reconstruction, or repair of infrastructure40 (such as streets, sidewalks, and sewers) within or serving the41 allocation area.42 (3) The acquisition of real property and interests in real property

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1 within the allocation area.2 (4) The demolition of real property within the allocation area.3 (5) To provide financial assistance to enable individuals and4 families to purchase or lease residential units within the allocation5 area. However, financial assistance may be provided only to those6 individuals and families whose income is at or below the county's7 median income for individuals and families, respectively.8 (6) To provide financial assistance to neighborhood development9 corporations to permit them to provide financial assistance for the

10 purposes described in subdivision (5).11 (7) For property taxes first due and payable before 2009, to12 provide each taxpayer in the allocation area a credit for property13 tax replacement as determined under subsections (c) and (d).14 However, this credit may be provided by the commission only if15 the city-county legislative body establishes the credit by16 ordinance adopted in the year before the year in which the credit17 is provided.18 (c) The maximum credit that may be provided under subsection19 (b)(7) to a taxpayer in a taxing district that contains all or part of an20 allocation area established for a program adopted under section 32 of21 this chapter shall be determined as follows:22 STEP ONE: Determine that part of the sum of the amounts23 described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)24 through IC 6-1.1-21-2(g)(5) (before their repeal) that is25 attributable to the taxing district.26 STEP TWO: Divide:27 (A) that part of each county's eligible property tax replacement28 amount (as defined in IC 6-1.1-21-2 (before its repeal)) for29 that year as determined under IC 6-1.1-21-4(a)(1) (before its30 repeal) that is attributable to the taxing district; by31 (B) the amount determined under STEP ONE.32 STEP THREE: Multiply:33 (A) the STEP TWO quotient; by34 (B) the taxpayer's taxes (as defined in IC 6-1.1-21-2 (before its35 repeal)) levied in the taxing district allocated to the allocation36 fund, including the amount that would have been allocated but37 for the credit.38 (d) Except as provided in subsection (g), the commission may39 determine to grant to taxpayers in an allocation area from its allocation40 fund a credit under this section, as calculated under subsection (c), by41 applying one-half (1/2) of the credit to each installment of taxes (as42 defined in IC 6-1.1-21-2 (before its repeal)) that under IC 6-1.1-22-9

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1 are due and payable in a year. Except as provided in subsection (g),2 one-half (1/2) of the credit shall be applied to each installment of taxes3 (as defined in IC 6-1.1-21-2 (before its repeal)). The commission must4 provide for the credit annually by a resolution and must find in the5 resolution the following:6 (1) That the money to be collected and deposited in the allocation7 fund, based upon historical collection rates, after granting the8 credit will equal the amounts payable for contractual obligations9 from the fund, plus ten percent (10%) of those amounts.

10 (2) If bonds payable from the fund are outstanding, that there is11 a debt service reserve for the bonds that at least equals the amount12 of the credit to be granted.13 (3) If bonds of a lessor under section 17.1 of this chapter or under14 IC 36-1-10 are outstanding and if lease rentals are payable from15 the fund, that there is a debt service reserve for those bonds that16 at least equals the amount of the credit to be granted.17 If the tax increment is insufficient to grant the credit in full, the18 commission may grant the credit in part, prorated among all taxpayers.19 (e) Notwithstanding section 26(b) of this chapter, the special fund20 established under section 26(b) of this chapter for the allocation area21 for a program adopted under section 32 of this chapter may only be22 used to do one (1) or more of the following:23 (1) Accomplish one (1) or more of the actions set forth in section24 26(b)(3)(A) 26(b)(4)(A) through 26(b)(3)(H) 26(b)(4)(H) of this25 chapter.26 (2) Reimburse the consolidated city for expenditures made by the27 city in order to accomplish the housing program in that allocation28 area.29 The special fund may not be used for operating expenses of the30 commission.31 (f) Notwithstanding section 26(b) of this chapter, the commission32 shall, relative to the special fund established under section 26(b) of this33 chapter for an allocation area for a program adopted under section 3234 of this chapter, do the following before June 15 of each year:35 (1) Determine the amount, if any, by which the assessed value of36 the taxable property in the allocation area, when multiplied by the37 estimated tax rate of the allocation area, will exceed the amount38 of assessed value needed to produce the property taxes necessary39 to:40 (A) make the distribution distributions required under section41 26(b)(2) and 26(b)(3) of this chapter;42 (B) make, when due, principal and interest payments on bonds

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1 described in section 26(b)(3) 26(b)(4) of this chapter;2 (C) pay the amount necessary for other purposes described in3 section 26(b)(3) 26(b)(4) of this chapter; and4 (D) reimburse the consolidated city for anticipated5 expenditures described in subsection (e)(2).6 (2) Provide a written notice to the county auditor, the legislative7 body of the consolidated city, the officers who are authorized to8 fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for each9 of the other taxing units that is wholly or partly located within the

10 allocation area, and (in an electronic format) the department of11 local government finance. The notice must:12 (A) state the amount, if any, of excess assessed value that the13 commission has determined may be allocated to the respective14 taxing units in the manner prescribed in section 26(b)(1) of15 this chapter; or16 (B) state that the commission has determined that there is no17 excess assessed value that may be allocated to the respective18 taxing units in the manner prescribed in section 26(b)(1) of19 this chapter.20 The county auditor shall allocate to the respective taxing units the21 amount, if any, of excess assessed value determined by the22 commission.23 (g) This subsection applies to an allocation area only to the extent24 that the net assessed value of property that is assessed as residential25 property under the rules of the department of local government finance26 is not included in the base assessed value. If property tax installments27 with respect to a homestead (as defined in IC 6-1.1-20.9-1 (before its28 repeal)) are due in installments established by the department of local29 government finance under IC 6-1.1-22-9.5, each taxpayer subject to30 those installments in an allocation area is entitled to an additional31 credit under subsection (d) for the taxes (as defined in IC 6-1.1-21-232 (before its repeal)) due in installments. The credit shall be applied in33 the same proportion to each installment of taxes (as defined in34 IC 6-1.1-21-2 (before its repeal)).35 SECTION 15. IC 36-7-15.1-62, AS AMENDED BY P.L.214-2019,36 SECTION 44, AND P.L.257-2019, SECTION 131, IS AMENDED TO37 READ AS FOLLOWS [EFFECTIVE MAY 1, 2020]: Sec. 62. (a)38 Notwithstanding section 26(a) of this chapter, with respect to the39 allocation and distribution of property taxes for the accomplishment of40 the purposes of an age-restricted housing program adopted under41 section 59 of this chapter, "base assessed value" means, subject to42 section 26(j) of this chapter, the net assessed value of all of the

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1 property, other than personal property, as finally determined for the2 assessment date immediately preceding the effective date of the3 allocation provision, as adjusted under section 26(h) of this chapter.4 (b) The allocation fund established under section 26(b) of this5 chapter for the allocation area for an age-restricted housing program6 adopted under section 59 of this chapter may be used only for purposes7 related to the accomplishment of the purposes of the program,8 including, but not limited to, the following:9 (1) The construction of any infrastructure (including streets,

10 sidewalks, and sewers) or local public improvements in, serving,11 or benefiting the allocation area.12 (2) The acquisition of real property and interests in real property13 within the allocation area.14 (3) The preparation of real property in anticipation of15 development of the real property within the allocation area.16 (4) To do any of the following:17 (A) Pay the principal of and interest on bonds or any other18 obligations payable from allocated tax proceeds in the19 allocation area that are incurred by the redevelopment district20 for the purpose of financing or refinancing the age-restricted21 housing program established under section 59 of this chapter22 for the allocation area.23 (B) Establish, augment, or restore the debt service reserve for24 bonds payable solely or in part from allocated tax proceeds in25 the allocation area.26 (C) Pay the principal of and interest on bonds payable from27 allocated tax proceeds in the allocation area and from the28 special tax levied under section 19 of this chapter.29 (D) Pay the principal of and interest on bonds issued by the30 unit to pay for local public improvements that are physically31 located in or physically connected to the allocation area.32 (E) Pay premiums on the redemption before maturity of bonds33 payable solely or in part from allocated tax proceeds in the34 allocation area.35 (F) Make payments on leases payable from allocated tax36 proceeds in the allocation area under section 17.1 of this37 chapter.38 (G) Reimburse the unit for expenditures made by the unit for39 local public improvements (which include buildings, parking40 facilities, and other items described in section 17(a) of this41 chapter) that are physically located in or physically connected42 to the allocation area.

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1 (c) Notwithstanding section 26(b) of this chapter, the commission2 shall, relative to the allocation fund established under section 26(b) of3 this chapter for an allocation area for an age-restricted housing program4 adopted under section 59 of this chapter, do the following before June5 15 of each year:6 (1) Determine the amount, if any, by which the assessed value of7 the taxable property in the allocation area for the most recent8 assessment date minus the base assessed value, when multiplied9 by the estimated tax rate of the allocation area, will exceed the

10 amount of assessed value needed to produce the property taxes11 necessary to:12 (A) make the distribution distributions required under section13 26(b)(2) and 26(b)(3) of this chapter;14 (B) make, when due, principal and interest payments on bonds15 described in section 26(b)(3) 26(b)(4) of this chapter;16 (C) pay the amount necessary for other purposes described in17 section 26(b)(3) 26(b)(4) of this chapter; and18 (D) reimburse the county or municipality for anticipated19 expenditures described in subsection (b)(2).20 (2) Provide a written notice to the county auditor, the fiscal body21 of the county or municipality that established the department of22 redevelopment, the officers who are authorized to fix budgets, tax23 rates, and tax levies under IC 6-1.1-17-5 for each of the other24 taxing units that is wholly or partly located within the allocation25 area, and (in an electronic format) the department of local26 government finance. The notice must:27 (A) state the amount, if any, of excess property taxes that the28 commission has determined may be paid to the respective29 taxing units in the manner prescribed in section 26(b)(1) of30 this chapter; or31 (B) state that the commission has determined that there is no32 excess assessed value that may be allocated to the respective33 taxing units in the manner prescribed in subdivision (1).34 The county auditor shall allocate to the respective taxing units the35 amount, if any, of excess assessed value determined by the36 commission.37 SECTION 16. IC 36-7.5-4.5-18, AS ADDED BY P.L.248-2017,38 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE39 MAY 1, 2020]: Sec. 18. If a district is established, the following apply40 to the administration and use of incremental property tax revenue by41 the development authority, or a redevelopment commission in the case42 of a district located in a cash participant county, in the district:

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1 (1) The department of local government finance shall adjust the2 base assessed value to neutralize any effect of a reassessment and3 the annual adjustment of the real property in the district in the4 same manner as provided in IC 36-7-14-39(h).5 (2) Proceeds of the property taxes described in6 IC 36-7-14-39(b)(2) shall be allocated and paid into the funds7 of the respective taxing units in the same manner as provided8 in IC 36-7-14-39(b)(2).9 (2) (3) Proceeds of the property taxes approved by the voters in a

10 referendum or local public question shall be allocated to and,11 when collected, paid into the funds of the taxing unit for which12 the referendum or local public question was conducted in the13 same manner as provided in IC 36-7-14-39(b)(2).14 IC 36-7-14-39(b)(3).15 (3) (4) Incremental property tax revenue may be used only for one16 (1) or more of the following purposes for a district:17 (A) To finance the improvement, construction, reconstruction,18 renovation, and acquisition of real and personal property19 improvements within a district.20 (B) To pay the principal of and interest on any obligations that21 are incurred for the purpose of financing or refinancing22 development in the district, including local public23 improvements that are physically located in or physically24 connected to the district.25 (C) To establish, augment, or restore the debt service reserve26 for bonds payable solely or in part from incremental property27 tax revenue from the district.28 (D) To pay premiums on the redemption before maturity of29 bonds payable solely or in part from incremental property tax30 revenue from the district.31 (E) To make payments on leases payable from incremental32 property tax revenue from the district.33 (F) To reimburse a municipality in which a district is located34 for expenditures made by the municipality for local public35 improvements that are physically located in or physically36 connected to the district.37 (G) To reimburse a municipality for rentals paid by the38 municipality for a building or parking facility that is physically39 located in or physically connected to the district under any40 lease entered into under IC 36-1-10.41 (H) To pay expenses incurred by the development authority for42 local public improvements that are in the district or serving the

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1 district.2 SECTION 17. An emergency is declared for this act.

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