Enlargement of districts; additional property tax credits
Sec. 6. (a) An economic development district may be enlarged by
the fiscal body by following the same procedure for the creation of
an economic development district specified in this chapter. Property
taxes that are attributable to the additional area and allocable to the
economic development district are not eligible for the property tax
replacement credit provided by IC 6-1.1-21-5. However, subject to
subsection (c) and except as provided in subsection (f), each taxpayer
in an additional area is entitled to an additional credit for taxes (as
defined in IC 6-1.1-21-2) that under IC 6-1.1-22-9 are due and
payable in May and November of that year. Except as provided in
subsection (f), one-half (1/2) of the credit shall be applied to each
installment of taxes (as defined in IC 6-1.1-21-2). This credit equals
the amount determined under the following STEPS for each taxpayer
in a taxing district in a county that contains all or part of the
additional area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2) that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of the county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable to
the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that would have
been allocated to a special fund under section 5 of this
chapter had the additional credit described in this section not
been given.
The additional credit reduces the amount of proceeds allocated to the
economic development district and paid into a special fund under
section 5(a) of this chapter.
(b) If the additional credit under subsection (a) is not reduced
under subsection (c) or (d), the credit for property tax replacement
under IC 6-1.1-21-5 and the additional credit under subsection (a)
shall be computed on an aggregate basis for all taxpayers in a taxing
district that contains all or part of an additional area. The credit for
property tax replacement under IC 6-1.1-21-5 and the additional
credit under subsection (a) shall be combined on the tax statements
sent to each taxpayer.
(c) The county fiscal body may, by ordinance, provide that the
additional credit described in subsection (a):
(1) does not apply in a specified additional area; or
(2) is to be reduced by a uniform percentage for all taxpayers in
a specified additional area.
(d) Whenever the county fiscal body determines that granting the
full additional credit under subsection (a) would adversely affect the
interests of the holders of bonds or other contractual obligations that
are payable from allocated tax proceeds in that economic
development district in a way that would create a reasonable
expectation that those bonds or other contractual obligations would
not be paid when due, the county fiscal body must adopt an
ordinance under subsection (c) to deny the additional credit or reduce
the additional credit to a level that creates a reasonable expectation
that the bonds or other obligations will be paid when due. An
ordinance adopted under subsection (c) denies or reduces the
additional credit for taxes (as defined in IC 6-1.1-21-2) first due and
payable in any year following the year in which the ordinance is
adopted.
(e) An ordinance adopted under subsection (c) remains in effect
until the ordinance is rescinded by the body that originally adopted
the ordinance. However, an ordinance may not be rescinded if the
rescission would adversely affect the interests of the holders of
bonds or other obligations that are payable from allocated tax
proceeds in that economic development district in a way that would
create a reasonable expectation that the principal of or interest on the
bonds or other obligations would not be paid when due. If an
ordinance is rescinded and no other ordinance is adopted, the
additional credit described in subsection (a) applies to taxes (as
defined in IC 6-1.1-21-2) first due and payable in each year following
the year in which the resolution is rescinded.
(f) This subsection applies to an additional area only to the extent
that the net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance is not included in the base assessed value. If property tax
installments with respect to a homestead (as defined in
IC 6-1.1-20.9-1) are due in installments established by the
department of local government finance under IC 6-1.1-22-9.5, each
taxpayer subject to those installments in an additional area is entitled
to an additional credit under subsection (a) for the taxes (as defined
in IC 6-1.1-21-2) due in installments. The credit shall be applied in
the same proportion to each installment of taxes (as defined in
IC 6-1.1-21-2).
As added by P.L.19-1985, SEC.5. Amended by P.L.42-1992, SEC.7;
P.L.192-2002(ss), SEC.46; P.L.1-2004, SEC.48 and P.L.23-2004,
SEC.51.
Last modified: May 28, 2006