Ind. Code ch. 20-25.3-5

Ind. Code ch. 20-25.3-5
in effect

Ind. Code § 20-25.3-5-1 Debt, liability, or obligation of school city, participating school, or corporation

Sec. 1. (a) Any indebtedness, liabilities, and obligations incurred before April 1, 2026, by the school city or any participating school, remain the debt, liability, or obligation of the school city or participating school and do not become the debt, liability, or obligation of and may not be assumed by the corporation. The rights of the bondholders remain unchanged. (b) Any indebtedness, liabilities, and obligations incurred after March 31, 2026, by the corporation are the debt, liability, or obligation of the corporation. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-5-2 Assumption of powers and duties by corporation; bonds and other obligation

Sec. 2. After March 31, 2026, the school city may not take any action under the procedures set forth in IC 5-1 and instead the corporation shall assume the powers and duties of the school city under IC 5-1. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-5-3 Powers and duties related to fixing and reviewing budgets, tax rates, and tax levies

Sec. 3. After March 31, 2026, the corporation has all the powers and shall perform all the duties assigned to the school city under IC 6-1.1-17 related to the fixing and reviewing of budgets, tax rates, and tax levies. The school city shall provide records and information as necessary for the corporation to carry out its duties. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-5-4 Corporation assumes controlled project tax levy powers and duties of school city

Sec. 4. (a) Except as provided in subsection (b), after March 31, 2026, the school city may not take any action under the procedures set forth in IC 6-1.1-20 and instead the corporation shall assume the powers and duties of the school city under IC 6-1.1-20 in the territory of the school city. Property tax revenue received from a referendum controlled project tax levy that is approved by the voters after March 31, 2026, shall be distributed to the corporation in the manner provided under IC 6-1.1-20. (b) A referendum controlled project tax levy that is approved by the voters before April 1, 2026, shall continue to be imposed after March 31, 2026, and the school city shall continue to use the revenue from the referendum controlled project tax levy to pay debt service on the same terms, for the same period of time, and for the same purposes for which it was originally approved by the voters. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-5-5 Corporation assumes powers and duties of school city; operating referendum tax levy; distribution or use of revenue

Sec. 5. (a) Except as provided in subsections (b) and (c), after March 31, 2026, the school city may not take any action under the procedures set forth in IC 20-46-1 and instead the corporation shall assume the powers and duties of the school city under IC 20-46-1 in the territory of the school city. (b) Notwithstanding subsection (a), property tax revenue received from an operating referendum tax levy that is approved by the voters after March 31, 2026, shall be distributed to the school city and applicable charter schools in the manner provided under IC 20-46-1. (c) An operating referendum tax levy that is approved by the voters before April 1, 2026, shall continue to be imposed after March 31, 2026, through the end of the term and the school city shall continue to use the revenue from the operating referendum tax levy for the same purposes for which it was originally approved by the voters through the end of the term of the referendum. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-5-6 Corporation assumes powers and duties of school city; imposition of debt service levy; use and deposit of revenue

Sec. 6. (a) Subject to subsection (b), beginning July 1, 2026, the corporation shall assume the powers and duties of the school city under IC 20-46-7 with respect to imposition of a debt service levy. Beginning with the January 1, 2027, assessment date, and for each assessment date thereafter, the corporation shall impose both: (1) an annual property tax levy in the territory of the school city sufficient to pay all obligations of the school city; and (2) an annual property tax levy in the territory of the school city sufficient to pay all obligations of the corporation. Property tax revenue received from the tax levies shall be used to pay outstanding debts and obligations in the manner set forth in subsection (b) and IC 20-46-7-0.5. (b) Property tax revenue received from the debt service levy described in IC 20-46-7-0.5(a)(2)(A) that is imposed for the purpose of paying all obligations of the school city must be deposited in the school city's debt service fund established under IC 20-40-9 and may be used only to pay the obligations of the school city. The school city shall use the revenue from the debt service levy to pay debt service on the same terms, for the same period of time, and for the same purposes for which the obligation was initially authorized. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-5-7 Corporation assumes powers and duties of school city; operations fund property tax levy; distribution of revenue

Sec. 7. (a) Except as provided in subsection (b), beginning July 1, 2026, the corporation shall assume the powers and duties of the school city to impose a levy under IC 20-46-8. Beginning with the January 1, 2027, assessment date, and for each assessment date thereafter, the corporation shall impose an annual property tax levy in the territory of the school city. (b) Notwithstanding subsection (a), property tax revenue received from a tax levy imposed under IC 20-46-8 for assessment dates after December 31, 2026, shall be distributed to the school city and applicable charter schools in the manner provided under IC 20-46-8. As added by P.L.101-2026, SEC.12.

Ind. Code § 20-25.3-5-8 Corporation assumes powers and duties of school city; school safety referendum tax levy; distribution of revenue

Sec. 8. (a) Except as provided in subsection (b), after March 31, 2026, the school city may not take any action under the procedures set forth in IC 20-46-9 and instead the corporation shall assume the powers and duties of the school city under IC 20-46-9 in the territory of the school city. (b) Notwithstanding subsection (a), property tax revenue received from a school safety referendum tax levy that is approved by the voters after March 31, 2026, shall be distributed to the school city and applicable charter schools in the manner provided under IC 20-46-9. As added by P.L.101-2026, SEC.12.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/20Fetched: 10/17/2026

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