Allocation and distribution of property taxes; assessed value of
taxable property; rules; forms
Sec. 5. (a) A declaratory ordinance adopted under section 2 of this
chapter and confirmed under section 3 of this chapter must include
a provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section.
The allocation provision must apply to the entire economic
development district. The allocation provisions must require that any
property taxes subsequently levied by or for the benefit of any public
body entitled to a distribution of property taxes on taxable property
in the economic development district be allocated and distributed as
follows:
(1) Except as otherwise provided in this section, the proceeds
of the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment
date with respect to which the allocation and distribution is
made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units. However, if the effective date of the
allocation provision of a declaratory ordinance is after March
1, 1985, and before January 1, 1986, and if an improvement to
property was partially completed on March 1, 1985, the unit
may provide in the declaratory ordinance that the taxes
attributable to the assessed value of the property as finally
determined for March 1, 1984, shall be allocated to and, when
collected, paid into the funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of
the property tax proceeds in excess of those described in
subdivision (1), as specified in the declaratory ordinance, shall
be allocated to the unit for the economic development district
and, when collected, paid into a special fund established by the
unit for that economic development district that may be used
only to pay the principal of and interest on obligations owed by
the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the
financing of industrial development programs in, or serving,
that economic development district. The amount not paid into
the special fund shall be paid to the respective units in the
manner prescribed by subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on
which the obligations can be redeemed) on obligations owed by
the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the
financing of industrial development programs in, or serving,
that economic development district, money in the special fund
in excess of that amount shall be paid to the respective taxing
units in the manner prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in
the economic development district that is annexed by any taxing unit
after the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated
upon or in, or added to, the economic development district effective
on the next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all
taxable property in the economic development district, for purposes
of tax limitation, property tax replacement (except as provided in
IC 6-1.1-21-3(c), IC 6-1.1-21-4(a)(3), and IC 6-1.1-21-5(c)), and
formulation of the budget, tax rate, and tax levy for each political
subdivision in which the property is located is the lesser of:
(1) the assessed value of the property as valued without regard
to this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local
government finance shall make the rules and prescribe the forms and
procedures that they consider expedient for the implementation of
this chapter. After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment on the property tax proceeds allocated to the district
under this section. However, the adjustment may not include the
effect of property tax abatements under IC 6-1.1-12.1.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on
depreciable personal property that the unit has by ordinance
allocated to the economic development district. However, the
ordinance may not limit the allocation to taxes on depreciable
personal property with any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to
an economic development district property taxes imposed under
IC 6-1.1 on depreciable personal property that has a useful life in
excess of eight (8) years, the ordinance continues in effect until an
ordinance is adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means:
(1) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997.
As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.16;
P.L.86-1987, SEC.5; P.L.255-1997(ss), SEC.6; P.L.90-2002,
SEC.272; P.L.4-2005, SEC.46.
Last modified: May 28, 2006