CHAPTER 21.2. TAX INCREMENT REPLACEMENT
IC 6-1.1-21.2
Chapter 21.2. Tax Increment Replacement
IC 6-1.1-21.2-1
Repealed
(Repealed by P.L.146-2008, SEC.803.)
IC 6-1.1-21.2-2
Applicability of definitions in IC 36
Sec. 2. Except as otherwise provided, the definitions in IC 36apply throughout this chapter.
As added by P.L.192-2002(ss), SEC.44.
IC 6-1.1-21.2-3
"Allocation area" defined
Sec. 3. As used in this chapter, "allocation area" refers to an areathat is established under the authority of any of the following statutesand in which tax increment revenues are collected:
(1) IC 6-1.1-39.
(2) IC 8-22-3.5.
(3) IC 36-7-14.
(4) IC 36-7-14.5.
(5) IC 36-7-15.1.
(6) IC 36-7-30.
(7) IC 36-7-30.5.
As added by P.L.192-2002(ss), SEC.44. Amended by P.L.146-2008,SEC.231.
IC 6-1.1-21.2-4
"Base assessed value" defined
Sec. 4. As used in this chapter, "base assessed value" means thebase assessed value as that term is defined or used in:
(1) IC 6-1.1-39-5(h);
(2) IC 8-22-3.5-9(a);
(3) IC 8-22-3.5-9.5;
(4) IC 36-7-14-39(a);
(5) IC 36-7-14-39.2;
(6) IC 36-7-14-39.3(c);
(7) IC 36-7-14-48;
(8) IC 36-7-14.5-12.5;
(9) IC 36-7-15.1-26(a);
(10) IC 36-7-15.1-26.2(c);
(11) IC 36-7-15.1-35(a);
(12) IC 36-7-15.1-35.5;
(13) IC 36-7-15.1-53;
(14) IC 36-7-15.1-55(c);
(15) IC 36-7-30-25(a)(2);
(16) IC 36-7-30-26(c);
(17) IC 36-7-30.5-30; or
(18) IC 36-7-30.5-31.As added by P.L.192-2002(ss), SEC.44. Amended by P.L.1-2003,SEC.27; P.L.146-2008, SEC.232.
IC 6-1.1-21.2-5
"District" defined
Sec. 5. As used in this chapter, "district" refers to the following:
(1) An economic development district under IC 6-1.1-39.
(2) An eligible entity (as defined in IC 8-22-3.5-2.5).
(3) A redevelopment district, for an allocation area establishedunder:
(A) IC 36-7-14; or
(B) IC 36-7-15.1.
(4) A special taxing district, as described in:
(A) IC 36-7-14.5-12.5(d); or
(B) IC 36-7-30-3(b).
(5) A military base development area under IC 36-7-30.5-16.
As added by P.L.192-2002(ss), SEC.44. Amended by P.L.146-2008,SEC.233.
IC 6-1.1-21.2-6
"Governing body" defined
Sec. 6. As used in this chapter, "governing body" means thefollowing:
(1) For an allocation area created under IC 6-1.1-39, the fiscalbody of the county (as defined in IC 36-1-2-6).
(2) For an allocation area created under IC 8-22-3.5, thecommission (as defined in IC 8-22-3.5-2).
(3) For an allocation area created under IC 36-7-14, theredevelopment commission.
(4) For an allocation area created under IC 36-7-14.5, theredevelopment authority.
(5) For an allocation area created under IC 36-7-15.1, themetropolitan development commission.
(6) For an allocation area created under IC 36-7-30, the militarybase reuse authority.
(7) For an allocation area created under IC 36-7-30.5, themilitary base development authority.
As added by P.L.192-2002(ss), SEC.44. Amended by P.L.146-2008,SEC.234.
IC 6-1.1-21.2-6.6
"Obligation" defined
Sec. 6.6. As used in this chapter, "obligation" means an obligationto repay:
(1) the principal and interest on bonds;
(2) lease rentals on leases; or
(3) any other contractual obligation;
payable from tax increment revenues. The term includes a guaranteeof repayment from tax increment revenues if other revenues areinsufficient to make a payment.As added by P.L.146-2008, SEC.235.
IC 6-1.1-21.2-7
"Property taxes" defined
Sec. 7. As used in this chapter, "property taxes" means:
(1) property taxes, as defined in:
(A) IC 6-1.1-39-5(g);
(B) IC 36-7-14-39(a);
(C) IC 36-7-14-39.2;
(D) IC 36-7-14-39.3(c);
(E) IC 36-7-14.5-12.5;
(F) IC 36-7-15.1-26(a);
(G) IC 36-7-15.1-26.2(c);
(H) IC 36-7-15.1-53(a);
(I) IC 36-7-15.1-55(c);
(J) IC 36-7-30-25(a)(3);
(K) IC 36-7-30-26(c);
(L) IC 36-7-30.5-30; or
(M) IC 36-7-30.5-31; or
(2) for allocation areas created under IC 8-22-3.5, the taxesassessed on taxable tangible property in the allocation area.
As added by P.L.192-2002(ss), SEC.44. Amended by P.L.146-2008,SEC.236.
IC 6-1.1-21.2-8
"Special fund" defined
Sec. 8. As used in this chapter, "special fund" means:
(1) the special funds referred to in IC 6-1.1-39-5;
(2) the special funds referred to in IC 8-22-3.5-9(e);
(3) the allocation fund referred to in IC 36-7-14-39(b)(2);
(4) the allocation fund referred to in IC 36-7-14.5-12.5(d);
(5) the special fund referred to in IC 36-7-15.1-26(b)(2);
(6) the special fund referred to in IC 36-7-15.1-53(b)(2);
(7) the allocation fund referred to in IC 36-7-30-25(b)(2); or
(8) the allocation fund referred to in IC 36-7-30.5-30(b)(2).
As added by P.L.192-2002(ss), SEC.44. Amended by P.L.146-2008,SEC.237.
IC 6-1.1-21.2-9
"Tax increment replacement amount" defined
Sec. 9. As used in this chapter, "tax increment replacementamount" means the tax increment replacement amount determinedunder section 11 of this chapter.
As added by P.L.192-2002(ss), SEC.44.
IC 6-1.1-21.2-10
"Tax increment revenues" defined
Sec. 10. As used in this chapter, "tax increment revenues" meansthe property taxes attributable to the assessed value of property inexcess of the base assessed value.As added by P.L.192-2002(ss), SEC.44.
IC 6-1.1-21.2-11
Tax increment replacement amount; calculation
Sec. 11. (a) The governing body shall estimate the tax incrementreplacement amount for each allocation area under the jurisdictionof the governing body for the next calendar year on the scheduleprescribed by the department of local government finance.
(b) The tax increment replacement amount is the greater of zero(0) or the net amount by which:
(1) laws enacted by the general assembly; and
(2) actions taken by the department of local governmentfinance;
after the establishment of the allocation area have decreased the taxincrement revenues of the allocation area for the next calendar year(after adjusting for any increases resulting from laws or actions ofthe department of local government finance) below the sum of theamount needed to make all payments that are due in the next calendaryear on obligations payable from tax increment revenues and tomaintain any tax increment revenue to obligation payment ratiorequired by an agreement on which any of the obligations are based.
As added by P.L.192-2002(ss), SEC.44. Amended by P.L.256-2003,SEC.25; P.L.146-2008, SEC.238.
IC 6-1.1-21.2-12
Governing body action to raise tax increment replacement amount;review and action by legislative body; procedure; funding ofcertain amount by metropolitan development commission frompersonal property taxes
Sec. 12. (a) This section applies if the tax increment replacementamount for an allocation area in a district is greater than zero (0).
(b) A governing body may, after a public hearing, do thefollowing:
(1) Impose a special assessment on the owners of property thatis located in an allocation area to raise an amount not to exceedthe tax increment replacement amount.
(2) Impose a tax on all taxable property in the district in whichthe governing body exercises jurisdiction to raise an amount notto exceed the tax increment replacement amount.
(3) Reduce the base assessed value of property in the allocationarea to an amount that is sufficient to increase the tax incrementrevenues in the allocation area by an amount that does notexceed the tax increment replacement amount.
(c) The governing body shall submit a proposed specialassessment or tax levy under this section to the legislative body ofthe unit that established the district. The legislative body may:
(1) reduce the amount of the special assessment or tax to belevied under this section;
(2) determine that no special assessment or property tax shouldbe levied under this section; or (3) increase the special assessment or tax to the amountnecessary to fully fund the tax increment replacement amount.
(d) Before a public hearing under subsection (b) may be held, thegoverning body must publish notice of the hearing under IC 5-3-1.The notice must also be sent to the fiscal officer of each politicalsubdivision that is located in any part of the district. The notice muststate that the governing body will meet to consider whether a specialassessment or tax should be imposed under this chapter and whetherthe special assessment or tax will help the governing body realize theredevelopment or economic development objectives for theallocation area or honor its obligations related to the allocation area.The notice must also specify a date when the governing body willreceive and hear remonstrances and objections from persons affectedby the special assessment. All persons affected by the hearing,including all taxpayers within the allocation area, shall be considerednotified of the pendency of the hearing and of subsequent acts,hearings, and orders of the governing body by the notice. At thehearing, which may be adjourned from time to time, the governingbody shall hear all persons affected by the proceedings and shallconsider all written remonstrances and objections that have beenfiled. The only grounds for remonstrance or objection are that thespecial assessment or tax will not help the governing body realize theredevelopment or economic development objectives for theallocation area or honor its obligations related to the allocation area.After considering the evidence presented, the governing body shalltake final action concerning the proposed special assessment or tax.The final action taken by the governing body shall be recorded andis final and conclusive, except that an appeal may be taken in themanner prescribed by subsection (e).
(e) A person who filed a written remonstrance with a governingbody under subsection (d) and is aggrieved by the final action takenmay, within ten (10) days after that final action, file in the office ofthe clerk of the circuit or superior court a copy of the order of thegoverning body and the person's remonstrance or objection againstthat final action, together with a bond conditioned to pay the costs ofappeal if the appeal is determined against the person. The onlyground of remonstrance or objection that the court may hear iswhether the proposed special assessment or tax will help achieve theredevelopment of economic development objectives for theallocation area or honor its obligations related to the allocation area.An appeal under this subsection shall be promptly heard by the courtwithout a jury. All remonstrances or objections upon which anappeal has been taken must be consolidated, heard, and determinedwithin thirty (30) days after the time of the filing of the appeal. Thecourt shall hear evidence on the remonstrances or objections and mayconfirm the final action of the governing body or sustain theremonstrances or objections. The judgment of the court is final andconclusive, unless an appeal is taken as in other civil actions.
(f) This section applies to a governing body that:
(1) is the metropolitan development commission for a county
having a consolidated city; and
(2) has established an allocation area and pledged tax incrementrevenues from the area to the payment of bonds, leases, or otherobligations before May 8, 1989.
Notwithstanding subsections (a) through (e), the governing body maydetermine to fund that part of the tax increment replacement amountattributable to the repeal of IC 36-7-15.1-26.5, IC 36-7-15.1-26.7,and IC 36-7-15.1-26.9 from property taxes on personal property (asdefined in IC 6-1.1-1-11). If the governing body makes such adetermination, the property taxes on personal property in the amountdetermined under this subsection shall be allocated to theredevelopment district, paid into the special fund for the allocationarea, and used for the purposes specified in IC 36-7-15.1-26.
As added by P.L.192-2002(ss), SEC.44. Amended by P.L.146-2008,SEC.239; P.L.182-2009(ss), SEC.154.
IC 6-1.1-21.2-13
Repealed
(Repealed by P.L.146-2008, SEC.803.)
IC 6-1.1-21.2-14
Repealed
(Repealed by P.L.146-2008, SEC.803.)
IC 6-1.1-21.2-15
Special assessment and tax collections deposited in special fund;inapplicability of certain provisions to special assessments andtaxes; exception from levy limits
Sec. 15. (a) As the special assessment or tax imposed under thischapter is collected by the county treasurer, it shall be transferred tothe governing body and accumulated and kept in the special fund forthe allocation area.
(b) A special assessment or tax levied under this chapter is notsubject to IC 6-1.1-20.
(c) A special assessment or tax levied under this chapter and theuse of revenues from a special assessment or tax levied under thischapter by a governing body do not create a constitutional orstatutory debt, pledge, or obligation of the governing body, thedistrict, or any county, city, town, or township.
(d) The ad valorem property tax levy limits imposed byIC 6-1.1-18.5-3 or another provision of IC 6-1.1-18.5 do not apply toa special assessment or tax imposed under this chapter. For purposesof computing the ad valorem property tax levy limit imposed on acivil taxing unit under IC 6-1.1-18.5-3 or another provision ofIC 6-1.1-18.5, the civil taxing unit's ad valorem property tax levy fora particular calendar year does not include a special assessment ortax imposed under this chapter.
As added by P.L.192-2002(ss), SEC.44. Amended by P.L.224-2007,SEC.40; P.L.146-2008, SEC.240; P.L.182-2009(ss), SEC.155.
IC 6-1.1-21.2-16
Adjustment for tax benefit
Sec. 16. (a) This section applies if the tax increment replacementamount for an allocation area in a district is less than zero (0).
(b) The governing body of a district shall increase the baseassessed value of property in the allocation area to an amountsufficient so that the tax increment replacement amount is equal tozero (0).
As added by P.L.146-2008, SEC.241.