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Repealed
(Repealed by P.L.146-2008, SEC.803.)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 36
apply 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 area
that is established under the authority of any of the following statutes
and 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 the
base 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 established
under:
(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 the
following:
(1) For an allocation area created under IC 6-1.1-39, the fiscal
body of the county (as defined in IC 36-1-2-6).
(2) For an allocation area created under IC 8-22-3.5, the
commission (as defined in IC 8-22-3.5-2).
(3) For an allocation area created under IC 36-7-14, the
redevelopment commission.
(4) For an allocation area created under IC 36-7-14.5, the
redevelopment authority.
(5) For an allocation area created under IC 36-7-15.1, the
metropolitan development commission.
(6) For an allocation area created under IC 36-7-30, the military
base reuse authority.
(7) For an allocation area created under IC 36-7-30.5, the
military 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 obligation
to 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 guarantee
of repayment from tax increment revenues if other revenues are
insufficient 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 taxes
assessed 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 replacement
amount" means the tax increment replacement amount determined
under 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" means
the property taxes attributable to the assessed value of property in
excess 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 increment
replacement amount for each allocation area under the jurisdiction
of the governing body for the next calendar year on the schedule
prescribed 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 government
finance;
after the establishment of the allocation area have decreased the tax
increment revenues of the allocation area for the next calendar year
(after adjusting for any increases resulting from laws or actions of
the department of local government finance) below the sum of the
amount needed to make all payments that are due in the next calendar
year on obligations payable from tax increment revenues and to
maintain any tax increment revenue to obligation payment ratio
required 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 of
certain amount by metropolitan development commission from
personal property taxes
Sec. 12. (a) This section applies if the tax increment replacement
amount for an allocation area in a district is greater than zero (0).
(b) A governing body may, after a public hearing, do the
following:
(1) Impose a special assessment on the owners of property that
is located in an allocation area to raise an amount not to exceed
the tax increment replacement amount.
(2) Impose a tax on all taxable property in the district in which
the governing body exercises jurisdiction to raise an amount not
to exceed the tax increment replacement amount.
(3) Reduce the base assessed value of property in the allocation
area to an amount that is sufficient to increase the tax increment
revenues in the allocation area by an amount that does not
exceed the tax increment replacement amount.
(c) The governing body shall submit a proposed special
assessment or tax levy under this section to the legislative body of
the unit that established the district. The legislative body may:
(1) reduce the amount of the special assessment or tax to be
levied under this section;
(2) determine that no special assessment or property tax should
be levied under this section; or
(3) increase the special assessment or tax to the amount
necessary to fully fund the tax increment replacement amount.
(d) Before a public hearing under subsection (b) may be held, the
governing body must publish notice of the hearing under IC 5-3-1.
The notice must also be sent to the fiscal officer of each political
subdivision that is located in any part of the district. The notice must
state that the governing body will meet to consider whether a special
assessment or tax should be imposed under this chapter and whether
the special assessment or tax will help the governing body realize the
redevelopment or economic development objectives for the
allocation area or honor its obligations related to the allocation area.
The notice must also specify a date when the governing body will
receive and hear remonstrances and objections from persons affected
by the special assessment. All persons affected by the hearing,
including all taxpayers within the allocation area, shall be considered
notified of the pendency of the hearing and of subsequent acts,
hearings, and orders of the governing body by the notice. At the
hearing, which may be adjourned from time to time, the governing
body shall hear all persons affected by the proceedings and shall
consider all written remonstrances and objections that have been
filed. The only grounds for remonstrance or objection are that the
special assessment or tax will not help the governing body realize the
redevelopment or economic development objectives for the
allocation area or honor its obligations related to the allocation area.
After considering the evidence presented, the governing body shall
take final action concerning the proposed special assessment or tax.
The final action taken by the governing body shall be recorded and
is final and conclusive, except that an appeal may be taken in the
manner prescribed by subsection (e).
(e) A person who filed a written remonstrance with a governing
body under subsection (d) and is aggrieved by the final action taken
may, within ten (10) days after that final action, file in the office of
the clerk of the circuit or superior court a copy of the order of the
governing body and the person's remonstrance or objection against
that final action, together with a bond conditioned to pay the costs of
appeal if the appeal is determined against the person. The only
ground of remonstrance or objection that the court may hear is
whether the proposed special assessment or tax will help achieve the
redevelopment of economic development objectives for the
allocation area or honor its obligations related to the allocation area.
An appeal under this subsection shall be promptly heard by the court
without a jury. All remonstrances or objections upon which an
appeal has been taken must be consolidated, heard, and determined
within thirty (30) days after the time of the filing of the appeal. The
court shall hear evidence on the remonstrances or objections and may
confirm the final action of the governing body or sustain the
remonstrances or objections. The judgment of the court is final and
conclusive, 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 increment
revenues from the area to the payment of bonds, leases, or other
obligations before May 8, 1989.
Notwithstanding subsections (a) through (e), the governing body may
determine to fund that part of the tax increment replacement amount
attributable 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 (as
defined in IC 6-1.1-1-11). If the governing body makes such a
determination, the property taxes on personal property in the amount
determined under this subsection shall be allocated to the
redevelopment district, paid into the special fund for the allocation
area, 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 and
taxes; exception from levy limits
Sec. 15. (a) As the special assessment or tax imposed under this
chapter is collected by the county treasurer, it shall be transferred to
the governing body and accumulated and kept in the special fund for
the allocation area.
(b) A special assessment or tax levied under this chapter is not
subject to IC 6-1.1-20.
(c) A special assessment or tax levied under this chapter and the
use of revenues from a special assessment or tax levied under this
chapter by a governing body do not create a constitutional or
statutory debt, pledge, or obligation of the governing body, the
district, or any county, city, town, or township.
(d) The ad valorem property tax levy limits imposed by
IC 6-1.1-18.5-3 or another provision of IC 6-1.1-18.5 do not apply to
a special assessment or tax imposed under this chapter. For purposes
of computing the ad valorem property tax levy limit imposed on a
civil taxing unit under IC 6-1.1-18.5-3 or another provision of
IC 6-1.1-18.5, the civil taxing unit's ad valorem property tax levy for
a particular calendar year does not include a special assessment or
tax 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 replacement
amount for an allocation area in a district is less than zero (0).
(b) The governing body of a district shall increase the base
assessed value of property in the allocation area to an amount
sufficient so that the tax increment replacement amount is equal to
zero (0).
As added by P.L.146-2008, SEC.241.