Ind. Code ch. 6-3.6-6

Ind. Code § 6-3.6-6-0.5 "Nonmunicipal civil taxing unit"

Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Effective 7-1-2028. Sec. 0.5. As used in this chapter, "nonmunicipal civil taxing unit" means townships, libraries, and all other civil taxing units that imposed an ad valorem property tax levy in the county for the calendar year preceding the distribution year, except that the term does not include counties, cities, towns, or school corporations. The term does include those civil taxing units whose budgets require binding review by another local unit. As added by P.L.68-2025, SEC.117.

Ind. Code § 6-3.6-6-1 Imposition of tax

Sec. 1. An adopting body may impose a tax under section 2 of this chapter on the adjusted gross income of local taxpayers in the county served by the adopting body. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-2 Rate of tax

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 2. (a) This section applies to all counties. (b) The adopting body may impose a tax rate under this chapter that does not exceed: (1) two and five-tenths percent (2.5%) in all counties other than Marion County; and (2) two and seventy-five hundredths percent (2.75%) in Marion County; on the adjusted gross income of local taxpayers in the county served by the adopting body. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-2 Rate of tax; expiration

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 2. (a) This section applies to all counties. (b) The adopting body may by ordinance and subject to subsections (c) through (e) impose one (1) or more of the following component rates not to exceed a total expenditure tax rate under this chapter of two and nine-tenths percent (2.9%) on the adjusted gross income of taxpayers who reside in the county, or, in the case of a team member or race team member described in IC 6-3.6-2-13(3), on the adjusted gross income earned as a team member or race team member in the county: (1) A tax rate not to exceed one and two-tenths percent (1.2%) for general purpose revenue for county services (as provided in section 4 of this chapter), subject to subsection (c). (2) A tax rate not to exceed four-tenths of one percent (0.4%) for providers of fire protection or emergency medical services located within the county (as provided in section 4.3 of this chapter), subject to subsection (c). (3) A tax rate not to exceed two-tenths of one percent (0.2%) for general purpose revenue for distribution to nonmunicipal civil taxing units (excluding fire protection districts) located within the county (as provided in section 4.5 of this chapter), subject to subsection (c). (4) A tax rate not to exceed one and two-tenths percent (1.2%) for general purpose revenue for municipal services for distribution to municipalities located within the county that are not eligible to adopt a municipal tax rate under section 22 of this chapter or that have made an election under section 23(b)(3) of this chapter to be treated as such. The adopting body shall identify in the ordinance each taxing district in which the tax rate under this subdivision is imposed. (c) The combined component rates imposed by an adopting body under subsection (b)(1) through (b)(3) shall not exceed one and seven-tenths percent (1.7%). (d) A tax rate adopted under subsection (b)(4) may only be imposed on taxpayers who do not reside in a municipality that is eligible to adopt a municipal tax rate under section 22 of this chapter and has not made an election under section 23(b)(3) of this chapter. In the case of a team member or race team member described in IC 6-3.6-2-13(3), a tax rate adopted under subsection (b)(4) may only be imposed on services performed as a team member or race team member at a location if the county could impose the tax rate on an individual residing at that location. (e) A tax rate imposed under subsection (b) expires on December 31, 2031, and on December 31 of each calendar year thereafter. An adopting body wishing to continue, increase, or decrease a tax rate for the succeeding year must pass an ordinance to readopt a tax rate in accordance with IC 6-3.6-3-3. This subsection applies regardless of whether there is a modification in the tax rate or the component rates or the rates are unchanged from the previous year. (f) Notwithstanding subsection (e) or any other provision of this article, if there are bonds, leases, or other obligations payable from a tax imposed under subsection (b)(1) or (b)(4), the expenditure tax rate for the county under subsection (b)(1) or (b)(4) for a calendar year shall be the minimum tax rate necessary to produce one and twenty-five hundredths (1.25) times the sum of the: (1) highest annual outstanding debt service; (2) highest annual lease payments; and (3) any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve; for the calendar year payable from the applicable component rate. As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.118; P.L.157-2026, SEC.124.

Ind. Code § 6-3.6-6-2.5 Tax rate for a PSAP in certain counties; adoption of ordinance by county fiscal body; distribution of revenue

Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029. Sec. 2.5. (a) This section applies to a county in which the adopting body: (1) is the local income tax council; and (2) did not allocate the revenue under this chapter from an expenditure rate of at least one-tenth of one percent (0.1%) to pay for a PSAP in the county for a year. (b) A county fiscal body may adopt an ordinance to impose a tax rate for a PSAP in the county. The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed one-tenth of one percent (0.1%). (c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used only for paying for a PSAP in the county. As added by P.L.180-2016, SEC.16.

Ind. Code § 6-3.6-6-2.5 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. As added by P.L.180-2016, SEC.16. Repealed by P.L.68-2025, SEC.119.

Ind. Code § 6-3.6-6-2.6 Tax rate for acute care hospital; adoption of ordinance by county fiscal body; distribution of revenue; use of tax revenue

Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029. Sec. 2.6. (a) As used in this section, "acute care hospital" means an acute care hospital that is: (1) established and operated under IC 16-22-2, IC 16-22-8, or IC 16-23; and (2) licensed under IC 16-21. (b) A county fiscal body may adopt an ordinance to impose a tax rate for acute care hospitals located in the county. The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed one-tenth of one percent (0.1%). (c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used only for the operating expenses of the acute care hospital located in the county. As added by P.L.137-2024, SEC.7.

Ind. Code § 6-3.6-6-2.6 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. As added by P.L.137-2024, SEC.7. Repealed by P.L.68-2025, SEC.120.

Ind. Code § 6-3.6-6-2.7 Tax rate for correctional and rehabilitation facilities; adoption of ordinance by county fiscal body; distribution of revenue; use of tax revenue for operating expenses

Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029. Sec. 2.7. (a) A county fiscal body may adopt an ordinance to impose a tax rate for correctional facilities and rehabilitation facilities in the county. The tax rate must be in increments of: (1) in the case of a county with bonds or lease agreements outstanding on July 1, 2023, for which a pledge of tax revenue from revenue received under a tax rate imposed under this section is made, one-hundredth of one percent (0.01%) and may not exceed three-tenths of one percent (0.3%); and (2) in the case of a county with no bonds or lease agreements outstanding on July 1, 2023, for which a pledge of tax revenue from revenue received under a tax rate imposed under this section is made, one-hundredth of one percent (0.01%) and may not exceed two-tenths of one percent (0.2%). (b) The tax rate imposed under this section may not be in effect for more than: (1) twenty-two (22) years, in the case of a tax rate imposed in an ordinance adopted before January 1, 2019; or (2) twenty-five (25) years, in the case of a tax rate imposed in an ordinance adopted on or after January 1, 2019. (c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used by the county only for paying for correctional facilities and rehabilitation facilities in the county. (d) If a county fiscal body imposes a tax rate: (1) under subsection (a)(1) or (a)(2) in an increment that does not exceed two-tenths of one percent (0.2%), one hundred percent (100%) of the revenue collected from the total tax rate; or (2) under subsection (a)(1) in an increment that exceeds two-tenths of one percent (0.2%): (A) one hundred percent (100%) of the revenue collected from that portion of the total tax rate that does not exceed an increment of two-tenths of one percent (0.2%); and (B) no revenue collected from that portion of the total tax rate that exceeds an increment of two-tenths of one percent (0.2%); may be used for operating expenses for correctional facilities and rehabilitation facilities in the county. As added by P.L.184-2018, SEC.2. Amended by P.L.257-2019, SEC.70; P.L.137-2022, SEC.53; P.L.236-2023, SEC.79; P.L.137-2024, SEC.8.

Ind. Code § 6-3.6-6-2.7 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. As added by P.L.184-2018, SEC.2. Amended by P.L.257-2019, SEC.70; P.L.137-2022, SEC.53; P.L.236-2023, SEC.79; P.L.137-2024, SEC.8. Repealed by P.L.68-2025, SEC.121.

Ind. Code § 6-3.6-6-2.8 Tax rate for emergency medical services; adoption of ordinance by county fiscal body; tax rate; distribution of revenue

Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029. Sec. 2.8. (a) As used in this section, "emergency medical services" has the meaning set forth in IC 16-18-2-110. (b) The fiscal body of a county may adopt an ordinance to impose a tax rate for emergency medical services in the county. The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed two-tenths of one percent (0.2%). The tax rate may not be in effect for more than twenty-five (25) years. (c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund and used by the county only for paying for operating costs incurred by the county for emergency medical services that are provided throughout the county. As added by P.L.95-2022, SEC.4. Amended by P.L.236-2023, SEC.80.

Ind. Code § 6-3.6-6-2.8 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. As added by P.L.95-2022, SEC.4. Amended by P.L.236-2023, SEC.80. Repealed by P.L.68-2025, SEC.122.

Ind. Code § 6-3.6-6-2.9 Tax rate for county staff expenses and courtroom costs of the state judicial system in the county

Note: This version of section effective until 1-1-2029. See also following repeal of this section, effective 1-1-2029. Sec. 2.9. (a) For purposes of this section, "courtroom costs" includes staffing costs only for the court reporter, court bailiff, or court administrator. (b) A county fiscal body may adopt an ordinance to impose a tax rate for: (1) in the case of a tax rate adopted under this section before January 1, 2024, county staff expenses of the state judicial system in the county; or (2) in the case of a tax rate adopted under this section after December 31, 2023, courtroom costs of the state judicial system in the county. The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed two-tenths of one percent (0.2%). The tax rate may not be in effect for more than twenty-five (25) years. (c) The revenue generated by a tax rate imposed under this section must be distributed directly to the county before the remainder of the expenditure rate revenue is distributed. The revenue shall be maintained in a separate dedicated county fund. The revenue shall be used by the county: (1) in the case of a tax rate adopted under this section before January 1, 2024, only for paying for county staff expenses of the state judicial system in the county; and (2) in the case of a tax rate adopted under this section after December 31, 2023, only for paying the courtroom costs of the state judicial system in the county. (d) This subsection applies to a tax rate adopted under subsection (b)(1). The local income tax revenue budgeted and spent under this section by each county may not comprise more than fifty percent (50%) of the county's total budgeted operational staffing expenses related to the state judicial system in any given year. (e) This subsection applies to a tax rate adopted under subsection (b)(2). The local income tax revenue spent under this section by each county may not comprise more than fifty percent (50%) of the county's total operational staffing expenses related to the courtroom costs of the state judicial system in any given year. (f) Counties that enact an ordinance to impose a tax rate under this section shall annually report the following information for the prior calendar year by May 1 to the justice reinvestment advisory council established by IC 33-38-9.5-2: (1) The types of court positions paid with local income tax revenue generated by this section. (2) The number of court positions by type paid for with local income tax revenue generated by this section. (3) The average salary by type of court position paid for with local income tax revenue generated by this section. (4) The county's total budgeted and actual staffing expenses or courtroom costs, whichever is applicable, related to the state judicial system. (5) The county's portion of local income tax revenue that was actually spent on staffing expenses or courtroom costs, whichever is applicable, related to the state judicial system. (g) The justice reinvestment advisory council shall annually compile and report to the legislative council prior to July 1 of each year the information required in subsection (f) for each county. The report must be in an electronic format under IC 5-14-6. As added by P.L.193-2023, SEC.2. Amended by P.L.101-2024, SEC.1; P.L.156-2024, SEC.24.

Ind. Code § 6-3.6-6-2.9 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 1-1-2029. Note: This repeal of section effective 1-1-2029. See also preceding version of this section, effective until 1-1-2029. As added by P.L.193-2023, SEC.2. Amended by P.L.101-2024, SEC.1; P.L.156-2024, SEC.24. Repealed by P.L.68-2025, SEC.123.

Ind. Code § 6-3.6-6-3 Treatment of tax revenue; distributions to school corporations and civil taxing units; additional revenue; additional revenue may not reduce levy limit or property tax rate; revenue pledged for bonds

Revisor's Note: P.L.157-2026, SEC.286 provided the effective dates for publication of the versions of IC 6-3.6-6-3. Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 3. (a) Revenue raised from a tax imposed under this chapter shall be treated as follows: (1) To make the following distributions: (A) If an ordinance described in section 2.5 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.5 of this chapter. (B) If an ordinance described in section 2.6 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.6 of this chapter. (C) If an ordinance described in section 2.7 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.7 of this chapter. (D) If an ordinance described in section 2.8 of this chapter is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.8 of this chapter. (E) If an ordinance described in section 2.9 of this chapter (before its repeal) is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 2.9 of this chapter. (F) If an ordinance described in section 3.1 of this chapter (before its expiration) is in effect in a county, to make a distribution to the county equal to the amount of revenue generated by the rate imposed under section 3.1 of this chapter. (2) After making the distributions described in subdivision (1), if any, to make distributions to school corporations and civil taxing units in counties that formerly imposed a tax under IC 6-3.5-1.1 (repealed). The revenue categorized from the next twenty-five hundredths percent (0.25%) of the rate for a former tax adopted under IC 6-3.5-1.1 (repealed) shall be allocated to school corporations and civil taxing units. The amount of the allocation to a school corporation or civil taxing unit shall be determined using the allocation amounts for civil taxing units and school corporations in the county. (3) After making the distributions described in subdivisions (1) and (2), the remaining revenue shall be treated as additional revenue (referred to as "additional revenue" in this chapter). Additional revenue may not be considered by the department of local government finance in determining: (A) any taxing unit's maximum permissible property tax levy limit under IC 6-1.1-18.5; or (B) the approved property tax rate for any fund. (b) In the case of a civil taxing unit that has pledged the tax from additional revenue for the payment of bonds, leases, or other obligations as reported by the civil taxing unit under IC 5-1-18, the adopting body may not, under section 4 of this chapter, reduce the proportional allocation of the additional revenue that was allocated in the preceding year if the reduction for that year would result in an amount less than the amount necessary for the payment of bonds, leases, or other obligations payable or required to be deposited in a sinking fund or other reserve in that year for the bonds, leases, or other obligations for which the tax from additional revenue has been pledged. To inform an adopting body with regard to allocations that affect the payment of bonds, leases, or other obligations, a taxing unit may provide the adopting body with information regarding any outstanding bonds, leases, or other obligations that are secured by additional revenue. The information must be provided before the date of the public hearing at which the adopting body may change the allocation of additional revenue under section 4 of this chapter. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.17; P.L.197-2016, SEC.47; P.L.85-2017, SEC.24; P.L.247-2017, SEC.14; P.L.184-2018, SEC.3; P.L.95-2022, SEC.5; P.L.137-2024, SEC.9; P.L.157-2026, SEC.125.

Ind. Code § 6-3.6-6-3 Revenue pledged for bonds; criteria for obligations to the northwest Indiana regional development authority

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 3. (a) In the case of a civil taxing unit that has pledged the tax from general purpose revenue for the payment of bonds, leases, or other obligations as reported by the civil taxing unit under IC 5-1-18, the adopting body may not reduce the proportional allocation of the general purpose revenue that was allocated in the preceding year if the reduction for that year would result in an amount less than the amount necessary for the payment of bonds, leases, or other obligations payable or required to be deposited in a sinking fund or other reserve in that year for the bonds, leases, or other obligations for which the tax from general purpose revenue has been pledged. To inform an adopting body with regard to allocations that affect the payment of bonds, leases, or other obligations, a taxing unit may provide the adopting body with information regarding any outstanding bonds, leases, or other obligations that are secured by general purpose revenue. The information must be provided before the date of the public hearing at which the adopting body may change the allocation of general purpose revenue under section 4 of this chapter. (b) In the case of a civil taxing unit that is obligated to make payments to the northwest Indiana regional development authority from general purpose revenue for the payment of bonds, leases, or other obligations related to northwest Indiana rail projects (as defined in IC 5-1.3-2-14) and projects described in IC 36-7.5-4-2.5, the adopting body may not reduce the proportional allocation amounts of the general purpose revenue as allocated in the immediately preceding year if the reduction would result in an allocation that is less than the amount necessary for the civil taxing unit to make the payments to the northwest Indiana regional development authority for the payment of the bonds, leases, or other obligations. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.17; P.L.197-2016, SEC.47; P.L.85-2017, SEC.24; P.L.247-2017, SEC.14; P.L.184-2018, SEC.3; P.L.95-2022, SEC.5; P.L.137-2024, SEC.9; P.L.157-2026, SEC.125; P.L.68-2025, SEC.124.

Ind. Code § 6-3.6-6-3.1 Tax rate for funding property tax homestead credits; expiration

Sec. 3.1. (a) As used in this section, "homestead" has the meaning set forth in IC 6-1.1-12-37. (b) A county fiscal body may adopt an ordinance to impose a tax rate for the purpose of funding property tax homestead credits to reduce the property tax liability of taxpayers who own homesteads that are: (1) located in the county; and (2) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the taxpayer's property tax liability for the property to one percent (1%). Revenue collected from a tax rate imposed under this section may only be used to fund replacement of the county's property tax levy. Property taxes imposed due to a referendum in which a majority of the voters in the taxing unit imposing the property taxes approved the property taxes are not eligible for a credit under this section. (c) The tax rate must be in increments of one-hundredth of one percent (0.01%) and may not exceed three-tenths of one percent (0.3%). (d) A tax imposed under this section shall be treated as property taxes for all purposes. However, the department of local government finance may not reduce: (1) any taxing unit's maximum permissible property tax levy limit under IC 6-1.1-18.5; or (2) the approved property tax levy or rate for any fund; by the amount of any credits granted under this chapter. (e) The homestead credits shall be applied to the net property taxes due on the homestead after the application of any credit granted under IC 6-1.1, including any credit granted under IC 6-1.1-20.4 and IC 6-1.1-20.6. (f) The property tax credits must be applied uniformly to provide a homestead credit for homesteads in the county. (g) The county auditor shall allocate the amount of revenue applied as tax credits under this section to the taxing units that imposed the eligible property taxes against which the credits are applied. (h) The department of local government finance shall assist county fiscal bodies and county auditors in calculating credit percentages and amounts. (i) Notwithstanding any provision to the contrary in this chapter, a tax imposed under this section: (1) may be imposed on the adjusted gross income of taxpayers before January 1, 2029; and (2) terminates and may not be imposed on the adjusted gross income of taxpayers after December 31, 2028. (j) This section expires January 1, 2029. As added by P.L.68-2025, SEC.125. Amended by P.L.157-2026, SEC.126.

Ind. Code § 6-3.6-6-4 Additional revenue; allocation; public safety; economic development; certified shares

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 4. The adopting body shall, by ordinance, determine how the additional revenue from a tax under this chapter must be allocated in subsequent years. The allocations are subject to IC 6-3.6-11. The ordinance must be adopted as provided in IC 6-3.6-3 and takes effect and applies as specified in IC 6-3.6-3-3. The ordinance continues to apply thereafter until it is rescinded or modified. The revenue must be allocated among one (1) or more of the following uses as provided in this chapter: (1) Public safety. (2) Economic development projects. (3) Certified shares. The ordinance must describe the allocation of additional revenue by use of percentages. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.48; P.L.247-2017, SEC.15.

Ind. Code § 6-3.6-6-4 General purpose revenue; uses and allocation

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 4. (a) General purpose revenue raised from a tax rate under section 2(b)(1) of this chapter must be distributed directly to the county. The money may be used by the county fiscal body for any of the purposes of the county, including for: (1) public safety, including funding for a PSAP; (2) economic development purposes described in IC 6-3.6-10; (3) acute care hospitals; (4) correctional facilities and rehabilitation facilities; and (5) county staff expenses of the state judicial system. (b) Subject to sections 3 and 5 of this chapter, the adopting body shall, by ordinance, determine how general purpose revenue from a tax under this chapter must be allocated in subsequent years. The allocations are subject to IC 6-3.6-11. The ordinance must be adopted as provided in IC 6-3.6-3 and takes effect and applies as specified in IC 6-3.6-3-3. The ordinance continues to apply thereafter until it is rescinded or modified. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.48; P.L.247-2017, SEC.15; P.L.68-2025, SEC.126; P.L.157-2026, SEC.127.

Ind. Code § 6-3.6-6-4.3 Revenue for fire protection or emergency medical services; allocation

Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Effective 7-1-2028. Sec. 4.3. (a) Revenue raised from a tax rate for fire protection or emergency medical services under section 2(b)(2) of this chapter shall be distributed by the county among the county and each fire protection district, fire protection territory, and municipal fire department located within the county that provides fire protection, emergency medical services, or both in the county. Except as provided in subsection (b), at the discretion of the county council, the county may distribute revenue raised from a tax rate for fire protection or emergency medical services under section 2(b)(2) of this chapter to township fire departments and volunteer fire departments that provide fire protection, emergency medical services, or both in the county. (b) Subject to subsection (d), the county may determine the allocation method for revenue raised from a tax rate for fire protection or emergency medical services under section 2(b)(2) of this chapter. However, in determining the allocation method, the county shall, for each provider of fire protection, emergency medical services, or both in the county, consider the service boundaries of the provider and the population living within the service boundaries of the provider using the most recent federal decennial census. (c) If at least fifty percent (50%) of fire runs made by a township fire department during the calendar year preceding by two (2) years the calendar year in which distribution amounts are being determined are carried out by full-time firefighters who receive a salary of at least thirty thousand dollars ($30,000), the county shall distribute an allocation of revenue to the township fire department under this section. (d) In the case of a county that provides fire protection, emergency medical services, or both in part of the county, but not the entire county, only the part of the county in which the county provides the fire protection, emergency medical services, or both are considered within the service boundaries for the county. (e) For purposes of a distribution under this section, a distribution to a: (1) fire protection territory shall be made to the provider unit of the fire protection territory; and (2) volunteer fire department shall be made to the taxing unit that is served by the volunteer fire department. (f) If the population living within the service boundaries of a provider cannot be determined using data from the United States Census Bureau, the county may determine an estimated population based on income tax returns that report a residence located within the service boundaries of the provider. The county auditor shall provide the estimated population to the department of local government finance not later than July 15 of the calendar year that precedes the calendar year before the year in which the distribution is made. If the county auditor does not provide an estimated population under this subsection, the department of local government finance may use the most recent estimated population provided by the county auditor or the department of state revenue. As added by P.L.68-2025, SEC.127. Amended by P.L.157-2026, SEC.128.

Ind. Code § 6-3.6-6-4.5 Revenue for nonmunicipal civil taxing units; adoption of rates for specific unit types, request for distribution; allocation

Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Effective 7-1-2028. Sec. 4.5. (a) Revenue raised from a tax rate for nonmunicipal civil taxing units under section 2(b)(3) of this chapter may be distributed by the county to nonmunicipal civil taxing units subject to the provisions of this section. (b) Subject to the maximum aggregate tax rate of not more than two-tenths of one percent (0.2%) under section 2(b)(3) of this chapter, the adopting body may adopt a tax rate for each type of nonmunicipal civil taxing unit, which may not exceed more than five-hundredths of one percent (0.05%) for any given unit type. The revenue raised from a tax rate for a specific type of nonmunicipal civil taxing unit shall be allocated to all nonmunicipal civil taxing units of that same type located within the county on a pro rata per capita basis, subject to subsections (e) and (h). (c) A county solid waste management district (as defined in IC 13-11-2-47) or a joint solid waste management district (as defined in IC 13-11-2-113) is not an eligible nonmunicipal civil taxing unit for the purpose of receiving an allocation of general purpose revenue under this chapter unless a majority of the members of each of the county fiscal bodies of the counties within the district passes a resolution approving the distribution. (d) A resolution passed by a county fiscal body under subsection (c) may: (1) expire on a date specified in the resolution; or (2) remain in effect until the county fiscal body revokes or rescinds the resolution. (e) A nonmunicipal civil taxing unit wishing to receive a share of revenue under this section in a year must adopt a resolution requesting the distribution from the county and must provide a certified copy of the resolution to the adopting body and the state board of accounts not later than July 1 of the year immediately preceding the distribution year. Not later than August 1 of the year immediately preceding the distribution year, the adopting body shall hold a public hearing on the resolution requesting the distribution and provide the public with notice of the time and place where the public hearing will be held. The notice must be given in accordance with IC 5-3-1 and include a description of the resolution requesting the distribution from the county. (f) If a nonmunicipal civil taxing unit adopts a resolution under subsection (e) and provides the resolution to the adopting body as set forth in that subsection, the county shall distribute to the nonmunicipal civil taxing unit an amount of revenue raised from the tax rate under section 2(b)(3) of this chapter for the distribution year as set forth in subsection (g). (g) If one (1) or more, but not all, nonmunicipal civil taxing units adopt a resolution under subsection (e) requesting a distribution in a given year, the county may either distribute the total amount of revenue raised from the tax rate under section 2(b)(3) of this chapter to only those nonmunicipal civil taxing units that have provided a resolution request, or the county may distribute the total amount of revenue raised from a tax rate under section 2(b)(3) of this chapter to all nonmunicipal civil taxing units as set forth in this section. If no nonmunicipal civil taxing units adopt a resolution to request a distribution in a given year, the county may retain the revenue raised from a tax rate for nonmunicipal civil taxing units for that year and use the revenue as general purpose revenue for the county under section 4 of this chapter. (h) If the population living within one (1) or more nonmunicipal civil taxing units cannot be determined using data from the United States Census Bureau, the county may determine an estimated population based on income tax returns that report a residence located within the boundaries of the nonmunicipal civil taxing units. The county auditor shall provide the estimated population to the department of local government finance no later than July 15 of the calendar year that precedes the calendar year before the year in which the distribution is made. If the county auditor does not provide an estimated population under this subsection, the department of local government finance may use the most recent estimated population provided by the county auditor or the department of state revenue. As added by P.L.68-2025, SEC.128. Amended by P.L.23-2026, SEC.40; P.L.157-2026, SEC.129.

Ind. Code § 6-3.6-6-5 Allocations; pledge for payment of bonds or leases

Sec. 5. The adopting body may not reduce the proportional allocation among the uses described in section 4 of this chapter in a year if the reduction would allocate less to the payment of bonds or leases for which the tax under this chapter has been pledged in accordance with law than the amount pledged and payable in that year or required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve in that year. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.49.

Ind. Code § 6-3.6-6-6 Repealed

As added by P.L.243-2015, SEC.10. Repealed by P.L.197-2016, SEC.50.

Ind. Code § 6-3.6-6-6.1 Revenue for certain cities and towns; allocation; request for distribution

Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Effective 7-1-2028. Sec. 6.1. (a) Revenue raised from a tax rate for certain cities and towns under section 2(b)(4) of this chapter shall be distributed by the county subject to the provisions of this section and according to the following formula: STEP ONE: Determine the population of each city and town located in the county, excluding the population of any municipality that: (A) is eligible to impose a local income tax under section 22 of this chapter; and (B) did not make an election under section 23(b)(3) of this chapter. STEP TWO: Determine the aggregate sum of the STEP ONE results. STEP THREE: Determine the sum of: (A) the STEP TWO result; plus (B) the population of the unincorporated area of the county. STEP FOUR: Divide the STEP TWO result by the STEP THREE result. STEP FIVE: Multiply the STEP FOUR result by one and five-tenths (1.5), expressed as a percentage. However, the result may not exceed one hundred percent (100%). STEP SIX: Multiple the STEP FIVE result by the total amount of revenue raised from the tax rate imposed under section 2(b)(4) of this chapter. STEP SEVEN: For each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter, divide: (A) the STEP ONE result for the city or town; by (B) the STEP TWO result. STEP EIGHT: To determine the amount to be allocated to each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter, multiply: (A) the STEP SEVEN result for the city or town; by (B) the STEP SIX result. STEP NINE: Determine the aggregate sum of the STEP EIGHT results for each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter. STEP TEN: Determine the result of: (A) the total amount of revenue raised from the tax rate imposed under section 2(b)(4) of this chapter; minus (B) the STEP SIX result. STEP ELEVEN: Determine the result of: (A) the STEP SIX result; minus (B) the STEP NINE result. STEP TWELVE: To determine the amount to be allocated to the county, determine the sum of: (A) the STEP TEN result; plus (B) the STEP ELEVEN result. (b) For purposes of this section, if the boundaries of a city or town are located in more than one (1) county, only the portion of the population of the city or town that is located within the county imposing the tax rate under section 2(b)(4) of this chapter shall be considered. (c) The money may be used by the city or town fiscal body for any of the purposes of the city or town, including public safety (as defined in IC 6-3.6-2-14) and economic development purposes described in IC 6-3.6-10. The city or town fiscal body may pledge its general purpose revenue to the payment of bonds or to lease payments as set forth in this chapter. (d) An eligible city or town wishing to receive a share of revenue under this section in a year must adopt a resolution requesting the distribution from the county and must provide a certified copy of the resolution to the adopting body and the state board of accounts not later than July 1 of the year immediately preceding the distribution year. Not later than August 1 of the year immediately preceding the distribution year, the adopting body shall hold a public hearing on the resolution requesting the distribution and provide the public with notice of the time and place where the public hearing will be held. The notice must be given in accordance with IC 5-3-1 and include a description of the resolution requesting the distribution from the county. (e) If an eligible city or town adopts a resolution under subsection (d) and provides the resolution to the adopting body as set forth in subsection (d), the county shall distribute to the eligible city or town unit an amount of revenue raised from the tax rate under section 2(b)(4) of this chapter for the distribution year as set forth in subsection (a). If no eligible city or town adopts a resolution to request a distribution in a given year, the county may retain all of the revenue raised from a tax rate for that year. (f) The county may use any money received under this section for the purposes described in section 4 of this chapter. As added by P.L.68-2025, SEC.129. Amended by P.L.23-2026, SEC.41; P.L.157-2026, SEC.130.

Ind. Code § 6-3.6-6-7 Repealed

As added by P.L.243-2015, SEC.10. Repealed by P.L.197-2016, SEC.51.

Ind. Code § 6-3.6-6-8 Allocation of certified distribution; allocation of revenue for public safety; dedication for PSAP; application for distribution by a fire department or emergency medical services provider

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 8. (a) This section applies to the allocation of additional revenue from a tax under this chapter to public safety purposes. Funding dedicated for a PSAP under a former tax continues to apply under this chapter until it is rescinded or modified. If funding was not dedicated for a PSAP under a former tax, the adopting body may adopt a resolution providing that all or part of the additional revenue allocated to public safety is to be dedicated for a PSAP. The resolution first applies in the following year and then thereafter until it is rescinded or modified. Funding dedicated for a PSAP shall be allocated and distributed as provided in IC 6-3.6-11-4. (b) Except as provided in subsections (c) and (d), the amount of the certified distribution that is allocated to public safety purposes, and after making allocations under IC 6-3.6-11, shall be allocated to the county and to each municipality in the county that is carrying out or providing at least one (1) public safety purpose. For purposes of this subsection, in the case of a consolidated city, the total property taxes imposed by the consolidated city include the property taxes imposed by the consolidated city and all special taxing districts (except for a public library district, a public transportation corporation, and a health and hospital corporation), and all special service districts. The amount allocated under this subsection to a county or municipality is equal to the result of: (1) the amount of the remaining certified distribution that is allocated to public safety purposes; multiplied by (2) a fraction equal to: (A) in the case of a county that initially imposed a rate for public safety under IC 6-3.5-6 (repealed), the result of the total property taxes imposed in the county by the county or municipality for the calendar year preceding the distribution year, divided by the sum of the total property taxes imposed in the county by the county and each municipality in the county that is entitled to a distribution under this section for that calendar year; or (B) in the case of a county that initially imposed a rate for public safety under IC 6-3.5-1.1 (repealed) or a county that did not impose a rate for public safety under either IC 6-3.5-1.1 (repealed) or IC 6-3.5-6 (repealed), the result of the attributed allocation amount of the county or municipality for the calendar year preceding the distribution year, divided by the sum of the attributed allocation amounts of the county and each municipality in the county that is entitled to a distribution under this section for that calendar year. (c) A fire department, volunteer fire department, or emergency medical services provider that: (1) provides fire protection or emergency medical services within the county; and (2) is operated by or serves a political subdivision that is not otherwise entitled to receive a distribution of tax revenue under this section; may, before July 1 of a year, apply to the adopting body for a distribution of tax revenue under this section during the following calendar year. The adopting body shall review an application submitted under this subsection. However, after giving notice under IC 5-3-1, the adopting body shall review an application by a township that provided fire protection or emergency medical services in the most recent calendar year and imposed a property tax levy for the provision of fire protection or emergency medical services within the county in the most recent calendar year at a public hearing. The adopting body may review multiple applications submitted under this subsection at one (1) public hearing. If applicable, a township shall present and explain its application at the public hearing. Not later than ten (10) days after the public hearing, if applicable, but before September 1 of a year, the adopting body may adopt a resolution requiring that one (1) or more of the applicants shall receive a specified amount of the tax revenue to be distributed under this section during the following calendar year. The adopting body shall provide a copy of the resolution to the county auditor and the department of local government finance not more than fifteen (15) days after the resolution is adopted. A resolution adopted under this subsection and provided in a timely manner to the county auditor and the department applies only to distributions in the following calendar year. Any amount of tax revenue distributed under this subsection to a fire department, volunteer fire department, or emergency medical services provider shall be distributed before the remainder of the tax revenue is allocated under subsection (b). (d) A township fire department, volunteer fire department, fire protection territory, or fire protection district that: (1) provides fire protection or emergency medical services within a county; and (2) is operated by or serves a political subdivision; may, before July 1 of a year, apply to the adopting body for a distribution of tax revenue under this section during the following calendar year. The adopting body shall review an application submitted under this subsection. However, after giving notice under IC 5-3-1, the adopting body shall review an application submitted by a township that provided fire protection or emergency medical services in the most recent calendar year and that imposed a property tax levy for the provision of fire protection or emergency medical services within the county in the most recent calendar year at a public hearing. The adopting body may review multiple applications submitted under this subsection at one (1) public hearing. If applicable, a township shall present and explain its application at the public hearing. From the amount of the certified distribution that is allocated to public safety purposes, and after making allocations under IC 6-3.6-11, the adopting body may adopt a resolution that one (1) or more township fire departments, volunteer fire departments, fire protection territories, or fire protection districts shall receive an amount of the tax revenue to be distributed under this section during the following calendar year up to one hundred percent (100%) of the revenue collected from that portion of the tax rate imposed for allocations for public safety purposes that does not exceed a rate of five one-hundredths of one percent (0.05%). A resolution adopted under this subsection must include information on the service area for each township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable. Any distribution under this subsection must be based on the assessed value of real property, not including land, that is served by each township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable. The adopting body shall provide a copy of the resolution to the county auditor and the department of local government finance not more than fifteen (15) days after the resolution is adopted. A resolution adopted under this subsection and provided in a timely manner to the county auditor and the department applies only to distributions in the following calendar year. Any amount of tax revenue distributed under this subsection to a township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable, shall be distributed before the remainder of the tax revenue is allocated under subsection (b). In the case of a volunteer fire department, the application under this subsection must be made to the adopting body by the fiscal officer of the unit served by the volunteer fire department. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.52; P.L.247-2017, SEC.16; P.L.236-2023, SEC.81; P.L.101-2024, SEC.2; P.L.230-2025, SEC.80.

Ind. Code § 6-3.6-6-8 Application for distribution by a fire department or emergency medical services provider

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 8. (a) A fire department, volunteer fire department, or emergency medical services provider that: (1) provides fire protection or emergency medical services within the county; and (2) is operated by or serves a political subdivision that is not otherwise entitled to receive a distribution of tax revenue under this section; may, before July 1 of a year, apply to the adopting body for a distribution of tax revenue under section 4.3 of this chapter during the following calendar year. The adopting body shall review an application submitted under this subsection. However, after giving notice under IC 5-3-1, the adopting body shall review an application by a township that provided fire protection or emergency medical services in the most recent calendar year and imposed a property tax levy for the provision of fire protection or emergency medical services within the county in the most recent calendar year at a public hearing. The adopting body may review multiple applications submitted under this subsection at one (1) public hearing. If applicable, a township shall present and explain its application at the public hearing. Not later than ten (10) days after the public hearing, if applicable, but before September 1 of a year, the adopting body may adopt a resolution requiring that one (1) or more of the applicants shall receive a specified amount of the tax revenue to be distributed under section 4.3 of this chapter during the following calendar year. The adopting body shall provide a copy of the resolution to the county auditor and the department of local government finance not more than fifteen (15) days after the resolution is adopted. A resolution adopted under this subsection and provided in a timely manner to the county auditor and the department applies only to distributions in the following calendar year. (b) A township fire department, volunteer fire department, fire protection territory, or fire protection district that: (1) provides fire protection or emergency medical services within a county; and (2) is operated by or serves a political subdivision; may, before July 1 of a year, apply to the adopting body for a distribution of tax revenue under section 4.3 of this chapter during the following calendar year. The adopting body shall review an application submitted under this subsection. However, after giving notice under IC 5-3-1, the adopting body shall review an application submitted by a township that provided fire protection or emergency medical services in the most recent calendar year and that imposed a property tax levy for the provision of fire protection or emergency medical services within the county in the most recent calendar year at a public hearing. The adopting body may review multiple applications submitted under this subsection at one (1) public hearing. If applicable, a township shall present and explain its application at the public hearing. From the amount of the certified distribution that is allocated to public safety purposes, and after making allocations under IC 6-3.6-11, the adopting body may adopt a resolution that one (1) or more township fire departments, volunteer fire departments, fire protection territories, or fire protection districts shall receive an amount of the tax revenue to be distributed under section 4.3 of this chapter during the following calendar year up to one hundred percent (100%) of the revenue collected from that portion of the tax rate imposed for allocations for public safety purposes that does not exceed a rate of five one-hundredths of one percent (0.05%). A resolution adopted under this subsection must include information on the service area for each township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable. Any distribution under this subsection must be based on the assessed value of real property, not including land, that is served by each township fire department, volunteer fire department, fire protection territory, or fire protection district, as applicable. The adopting body shall provide a copy of the resolution to the county auditor and the department of local government finance not more than fifteen (15) days after the resolution is adopted. A resolution adopted under this subsection and provided in a timely manner to the county auditor and the department applies only to distributions in the following calendar year. In the case of a volunteer fire department, the application under this subsection must be made to the adopting body by the fiscal officer of the unit served by the volunteer fire department. As added by P.L.243-2015, SEC.10. Amended by P.L.197-2016, SEC.52; P.L.247-2017, SEC.16; P.L.236-2023, SEC.81; P.L.101-2024, SEC.2; P.L.230-2025, SEC.80; P.L.68-2025, SEC.130; P.L.230-2025, SEC.81.

Ind. Code § 6-3.6-6-8.5 Marion County; allocation of additional revenue to fund operation of a public library, a public transportation corporation; or a public communications systems and computer facilities district

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 8.5. (a) This section applies only to Marion County. (b) The adopting body may allocate additional revenue to fund the operation of a public library in Marion County as provided in an election, if any, made by the county fiscal body under IC 36-3-7-6. An allocation under this section shall be made from the part of the additional revenue that would otherwise be allocated as certified shares. (c) The adopting body may allocate additional revenue to fund the operation of a public transportation corporation as provided in an election, if any, made by the county fiscal body under IC 36-9-4-42. An allocation under this section shall be made from the part of the additional revenue that would otherwise be allocated as certified shares. (d) The adopting body may allocate additional revenue to fund the operation of a public communications systems and computer facilities district as provided in an election, if any, made by the county fiscal body under IC 36-8-15-19(b). The additional revenue shall be allocated and distributed before the allocation and distribution of the remaining tax revenue under this chapter. As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.17; P.L.104-2022, SEC.28.

Ind. Code § 6-3.6-6-8.5 Marion County; allocation of general purpose revenue; public library; public transportation corporation; public communications systems and computer facilities district

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 8.5. (a) This section applies only to Marion County. (b) The adopting body may allocate general purpose revenue to fund the operation of a public library in Marion County as provided in an election, if any, made by the county fiscal body under IC 36-3-7-6. (c) The adopting body may allocate general purpose revenue to fund the operation of a public transportation corporation as provided in an election, if any, made by the county fiscal body under IC 36-9-4-42. (d) The adopting body may allocate general purpose revenue to fund the operation of a public communications systems and computer facilities district as provided in an election, if any, made by the county fiscal body under IC 36-8-15-19(b). As added by P.L.243-2015, SEC.10. Amended by P.L.247-2017, SEC.17; P.L.104-2022, SEC.28; P.L.68-2025, SEC.131.

Ind. Code § 6-3.6-6-9 Allocation of revenue for economic development; amount of certified distribution

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 9. (a) This section applies to the allocation of additional revenue from a tax under this chapter for economic development purposes. (b) Money designated for economic development purposes shall be allocated to the county, cities, and towns for use by the taxing unit's fiscal body for any of the purposes described in IC 6-3.6-10. Except as provided in subsections (c) and (d) and IC 6-3.6-11, and subject to adjustment as provided in IC 36-8-19-7.5, the amount of the certified distribution allocated to economic development purposes that the county and each city or town in a county is entitled to receive each month of each year equals the amount determined using the following formula: STEP ONE: Determine the sum of: (A) the total property taxes being imposed by the county, city, or town during the calendar year preceding the distribution year; plus (B) for a county, the welfare allocation amount. STEP TWO: Determine the quotient of: (A) The STEP ONE amount; divided by (B) the sum of the total property taxes that are first due and payable to the county and all cities and towns of the county during the calendar year preceding the distribution year plus the welfare allocation amount. STEP THREE: Determine the product of: (A) the amount of the certified distribution allocated to economic development purposes for that month; multiplied by (B) the STEP TWO amount. (c) The body imposing the tax may adopt an ordinance before August 2 of a year to provide for a distribution of the amount allocated to economic development purposes based on population instead of a distribution under subsection (b). The following apply if an ordinance is adopted under this subsection: (1) The ordinance is effective January 1 of the following year. (2) The amount of the certified distribution allocated to economic development purposes that the county and each city and town in the county are entitled to receive during each month of each year equals the product of: (A) the amount of the certified distribution that is allocated to economic development purposes for the month; multiplied by (B) the quotient of: (i) for a city or town, the population of the city or the town that is located in the county and for a county, the population of the part of the county that is not located in a city or town; divided by (ii) the population of the entire county. (3) The ordinance may be made irrevocable for the duration of specified lease rental or debt service payments. (d) In a county having a consolidated city, only the consolidated city is entitled to the amount of the certified distribution that is allocated to economic development purposes. As added by P.L.243-2015, SEC.10. Amended by P.L.149-2016, SEC.29; P.L.197-2016, SEC.53; P.L.247-2017, SEC.18.

Ind. Code § 6-3.6-6-9 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Amended by P.L.149-2016, SEC.29; P.L.197-2016, SEC.53; P.L.247-2017, SEC.18. Repealed by P.L.68-2025, SEC.132.

Ind. Code § 6-3.6-6-9.5 Capital improvement plan; revenue allocated for economic development; effect of not adopting a capital improvement plan; components of a plan

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 9.5. (a) The executive of a county, city, or town may: (1) adopt a capital improvement plan specifying the uses of the additional revenue to be allocated for economic development purposes; or (2) designate the county or a city or town in the county as the recipient of all or a part of its share of the additional revenue that is distributed to it for economic development purposes. (b) If a designation is made under subsection (a)(2), the county treasurer shall transfer the share or part of the share to the designated unit unless that unit does not have a capital improvement plan. (c) A county, city, or town that fails to adopt a capital improvement plan may not receive: (1) its fractional amount of the additional revenue to be allocated for economic development purposes; or (2) any amount designated under subsection (a)(2); for the year or years in which the unit does not have a plan. The county treasurer shall retain the amounts not distributed for such a unit in a separate account until the unit adopts a plan. Interest on the separate account becomes part of the account. If a unit fails to adopt a plan for a period of three (3) years, the balance in the separate account shall be distributed to the other units in the county in the same manner that other additional revenue allocated for economic development purposes is distributed. (d) A capital improvement plan must include the following components: (1) Identification and general description of each project that would be funded by other additional revenue allocated for economic development purposes. (2) The estimated total cost of the project. (3) Identification of all sources of funds expected to be used for each project. (4) The planning, development, and construction schedule of each project. (e) A capital improvement plan: (1) must encompass a period of not less than two (2) years; and (2) must incorporate projects the cost of which is at least seventy-five percent (75%) of the fractional amount of additional revenue allocated for economic development purposes that is expected to be received by the county, city, or town in that period. (f) In making a designation under subsection (a)(2), the executive must specify the purpose and duration of the designation. If the designation is made to provide for the payment of lease rentals or bond payments, the executive may specify that the designation and its duration are irrevocable. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-9.5 Allocation of general purpose revenue for economic development

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 9.5. (a) The executive of a county, city, or town may: (1) adopt a capital improvement plan specifying the uses of general purpose revenue to be allocated for economic development purposes; or (2) designate the county or a city or town in the county as the recipient of all or a part of its general purpose revenue that is distributed to it for economic development purposes. (b) If a designation is made under subsection (a)(2), the county treasurer shall transfer the share or part of the share to the designated unit unless that unit does not have a capital improvement plan. (c) A county, city, or town that fails to adopt a capital improvement plan may not receive any amount designated under subsection (a)(2) for the year or years in which the unit does not have a plan. The county treasurer shall retain the amounts not distributed for such a unit in a separate account until the unit adopts a plan. Interest on the separate account becomes part of the account. If a unit fails to adopt a plan for a period of three (3) years, the balance in the separate account shall be distributed to the other units in the county in the same manner that other general purpose revenue allocated for economic development purposes is distributed. (d) A capital improvement plan must include the following components: (1) Identification and general description of each project that would be funded by other general purpose revenue allocated for economic development purposes. (2) The estimated total cost of the project. (3) Identification of all sources of funds expected to be used for each project. (4) The planning, development, and construction schedule of each project. (e) A capital improvement plan: (1) must encompass a period of not less than two (2) years; and (2) must incorporate projects the cost of which is at least seventy-five percent (75%) of the fractional amount of general purpose revenue allocated for economic development purposes that is expected to be received by the county, city, or town in that period. (f) In making a designation under subsection (a)(2), the executive must specify the purpose and duration of the designation. If the designation is made to provide for the payment of lease rentals or bond payments, the executive may specify that the designation and its duration are irrevocable. As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.133.

Ind. Code § 6-3.6-6-10 Allocation of additional revenue allocated for certified shares

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 10. (a) This section applies to additional revenue from a tax under this chapter that is allocated for certified shares. (b) Additional revenue remaining from a tax imposed under this chapter, after deducting the amounts allocated to public safety purposes and economic development purposes, shall be allocated among the civil taxing units as certified shares. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-10 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.134.

Ind. Code § 6-3.6-6-11 Eligibility for allocation of certified shares; civil taxing units; school corporations excluded

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 11. (a) Except as provided in this chapter and IC 6-3.6-11, this section applies to an allocation of certified shares in all counties. (b) Any civil taxing unit that imposed an ad valorem property tax levy in the county for the calendar year preceding the distribution year is eligible for an allocation for the distribution year under this chapter. (c) A school corporation is not a civil taxing unit for the purpose of receiving an allocation of certified shares under this chapter. The distributions to school corporations and civil taxing units in counties that formerly imposed a tax under IC 6-3.5-1.1 (repealed) as provided in section 3(a)(2) of this chapter is not considered an allocation of certified shares. A school corporation's allocation amount for purposes of section 3(a)(2) of this chapter shall be determined under section 12 of this chapter. (d) A county solid waste management district (as defined in IC 13-11-2-47) or a joint solid waste management district (as defined in IC 13-11-2-113) is not a civil taxing unit for the purpose of receiving an allocation of certified shares under this chapter unless a majority of the members of each of the county fiscal bodies of the counties within the district passes a resolution approving the distribution. (e) A resolution passed by a county fiscal body under subsection (d) may: (1) expire on a date specified in the resolution; or (2) remain in effect until the county fiscal body revokes or rescinds the resolution. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.18; P.L.197-2016, SEC.54; P.L.85-2017, SEC.25; P.L.247-2017, SEC.19.

Ind. Code § 6-3.6-6-11 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.18; P.L.197-2016, SEC.54; P.L.85-2017, SEC.25; P.L.247-2017, SEC.19. Repealed by P.L.68-2025, SEC.135.

Ind. Code § 6-3.6-6-12 Allocation amount of certified shares; civil taxing units

Note: This version of section amended by P.L.230-2025, SEC.82. See also following repeal of this section by P.L.145-2026, SEC.28, effective 7-1-2027, and following repeal of this section by P.L.68-2025, SEC.136, effective 7-1-2028. Sec. 12. (a) Except as provided in this chapter and IC 6-3.6-11, this section applies to an allocation of certified shares in all counties. (b) The allocation amount of a civil taxing unit during a calendar year must be based on the amounts for the calendar year preceding the distribution year and is equal to the amount determined using the following formula: STEP ONE: Determine the sum of the total property taxes being imposed by the civil taxing unit. STEP TWO: Determine the sum of the following: (A) Amounts appropriated from property taxes to pay the principal of or interest on any debenture or other debt obligation issued after June 30, 2005, other than an obligation described in subsection (c). (B) Amounts appropriated from property taxes to make payments on any lease entered into after June 30, 2005, other than a lease described in subsection (d). STEP THREE: Subtract the STEP TWO amount from the STEP ONE amount. STEP FOUR: In the case of a qualifying municipality as defined in IC 6-1.1-18.5-31(d) that is located in a county described in IC 6-1.1-18.5-31(a), and only for the allocation of certified shares in 2027 and 2028, STEP THREE multiplied by seventy percent (70%). STEP FIVE: Determine the sum of: (A) the: (i) STEP THREE amount; or (ii) STEP FOUR amount in the case of a qualifying municipality as defined in IC 6-1.1-18.5-31(d) that is located in a county described in IC 6-1.1-18.5-31(a); (B) the civil taxing unit's certified shares plus the amount distributed under section 3(a)(2) of this chapter for the previous calendar year; plus (C) in the case of a qualifying municipality as defined in IC 6-1.1-18.5-31(d) that is located in a county described in IC 6-1.1-18.5-31(a), and only for the allocation of certified shares in 2026, the amount of the levy for the municipality's debt service and lease rental funds that was certified in 2025 multiplied by fifty-four and five-tenths percent (54.5%). This clause expires January 1, 2027. The allocation amount is subject to adjustment as provided in IC 36-8-19-7.5. (c) Except as provided in this subsection, an appropriation for the calendar year preceding the distribution year from property taxes to repay interest and principal of a debt obligation is not deducted from the allocation amount for a civil taxing unit if: (1) the debt obligation was issued; and (2) the proceeds were appropriated from property taxes; to refund or otherwise refinance a debt obligation or a lease issued before July 1, 2005. However, an appropriation from property taxes related to a debt obligation issued after June 30, 2005, is deducted if the debt extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid. (d) Except as provided in this subsection, an appropriation for the calendar year preceding the distribution year from property taxes to make payments on a lease is not deducted from the allocation amount for a civil taxing unit if: (1) the lease was issued; and (2) the proceeds were appropriated from property taxes; to refinance a debt obligation or lease issued before July 1, 2005. However, an appropriation from property taxes related to a lease entered into after June 30, 2005, is deducted if the lease extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.19; P.L.247-2017, SEC.20; P.L.230-2025, SEC.82.

Ind. Code § 6-3.6-6-12 Repealed

Note: This repeal of section by P.L.145-2026, SEC.28, effective 7-1-2027. See also preceding version of this section amended by P.L.230-2025, SEC.82, and following repeal of this section by P.L.68-2025, SEC.136, effective 7-1-2028. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.19; P.L.247-2017, SEC.20; P.L.230-2025, SEC.82. Repealed by P.L.145-2026, SEC.28.

Ind. Code § 6-3.6-6-12 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section by P.L.68-2025, SEC.136, effective 7-1-2028. See also preceding version of this section amended by P.L.230-2025, SEC.82, and preceding repeal of this section by P.L.145-2026, SEC.28, effective 7-1-2027. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.19; P.L.247-2017, SEC.20; P.L.230-2025, SEC.82. Repealed by P.L.68-2025, SEC.136.

Ind. Code § 6-3.6-6-13 Repealed

As added by P.L.243-2015, SEC.10. Repealed by P.L.247-2017, SEC.21.

Ind. Code § 6-3.6-6-14 Calculation of allocation of certified shares among civil taxing units

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 14. (a) This section applies to an allocation of certified shares in a county other than Marion County. (b) Subject to this chapter, certified shares must be allocated among civil taxing units based on the attributed allocation amount. (c) The amount of certified shares to be allocated to each civil taxing unit is equal to: (1) the total amount of the certified distribution that is allocated to certified shares for the county for the month; multiplied by (2) the quotient of: (A) the attributed allocation amount for the civil taxing unit in the county during the calendar year; divided by (B) the sum of the attributed allocation amounts for all civil taxing units in the county during the calendar year. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-14 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.137.

Ind. Code § 6-3.6-6-15 Adjustment of allocation or distribution of certified shares; fire protection territory

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 15. (a) This section applies to an allocation or distribution, or both, of certified shares that is required to be made to a civil taxing unit in a county other than Marion County. (b) IC 36-8-19-7.5 applies to the adjustment of the amounts distributed to a civil taxing unit that participates in a fire protection territory. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-15 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.138.

Ind. Code § 6-3.6-6-16 Marion County; certified shares; supplemental allocation and distribution requirements

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 16. IC 6-3.6-11 applies to the allocation of certified shares in Marion County. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-16 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Repealed by P.L.68-2025, SEC.139.

Ind. Code § 6-3.6-6-17 Certified shares; uses

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 17. A civil taxing unit may use its certified shares for any of the purposes of the civil taxing unit. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-17 General purpose revenue; uses

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 17. A county, city, town, or nonmunicipal civil taxing unit may use its general purpose revenue for any of the purposes of the unit. As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.140.

Ind. Code § 6-3.6-6-18 Pledge of certified shares; payment of bonds; lease payments; approval by fiscal body

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 18. A civil taxing unit may pledge its certified shares to the payment of bonds or to lease payments for: (1) any purpose of the civil taxing unit; (2) any purpose of another governmental entity located in any part in the county, including a governmental entity organized on a regional basis; or (3) any purpose for which certified shares may be used under IC 6-3.6-10. The pledge must be approved in an ordinance adopted by the fiscal body of the political subdivision. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-18 Pledge of general purpose revenue; payment of bonds; lease payments; approval by fiscal body

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 18. (a) A county, city, town, or nonmunicipal civil taxing unit may pledge its general purpose revenue to the payment of bonds or to lease payments for: (1) any purpose of the unit; (2) any purpose of another governmental entity located in any part in the county, including a governmental entity organized on a regional basis; or (3) any purpose for which general purpose revenue may be used by the unit under this chapter. (b) The pledge must be approved in an ordinance adopted by the fiscal body of the political subdivision. As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.141.

Ind. Code § 6-3.6-6-19 Authorization for a civil taxing unit to distribute its certified shares to another governmental entity; procedures

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 19. (a) A civil taxing unit may distribute any part of its certified shares to any governmental entity located in any part of its county to: (1) carry out a joint purpose; or (2) fund the purposes of the other governmental entity; including a governmental entity organized on a regional basis to serve an area in more than one (1) county. (b) The distribution must be authorized by ordinance of the fiscal body of the civil taxing unit to which the revenue is allocated by this chapter. An ordinance must specify the purpose of the designation and its duration. (c) The fiscal body of the civil taxing unit may direct the county auditor in the ordinance to withhold from the civil taxing unit's allocation the amount that is the subject of the ordinance and distribute the amount directly to the other governmental entity authorized to receive the money. As added by P.L.243-2015, SEC.10.

Ind. Code § 6-3.6-6-19 Authorization to distribute general purpose revenue to another governmental entity; procedures

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 19. (a) A county, city, town, or nonmunicipal civil taxing unit may distribute any part of its general purpose revenue to any governmental entity located in any part of its county to: (1) carry out a joint purpose; or (2) fund the purposes of the other governmental entity; including a governmental entity organized on a regional basis to serve an area in more than one (1) county. (b) The distribution must be authorized by ordinance of the fiscal body of the unit to which the revenue is allocated by this chapter. An ordinance must specify the purpose of the designation and its duration. (c) The fiscal officer of the unit may direct the county auditor in accordance with the ordinance to withhold from the unit's allocation the amount that is the subject of the ordinance and distribute the amount directly to the other governmental entity authorized to receive the money. As added by P.L.243-2015, SEC.10. Amended by P.L.68-2025, SEC.142.

Ind. Code § 6-3.6-6-20 Allocation or distribution of revenue made on the basis of property tax levies or budgets in certain counties

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 20. (a) This section does not apply to distributions of revenue under section 9 of this chapter. (b) This section applies only to the following: (1) Any allocation or distribution of revenue under section 3(a)(2) of this chapter that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-1.1 (before its repeal January 1, 2017). (2) Any allocation or distribution of revenue under section 3(a)(3) of this chapter that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-6 (before its repeal January 1, 2017). (c) Subject to subsection (b), if a school corporation or civil taxing unit of an adopting county does not impose a property tax levy that is first due and payable in the calendar year preceding the year in which revenue under section 3(a)(2) or 3(a)(3) of this chapter is being allocated or distributed, that school corporation or civil taxing unit is entitled to receive a part of the revenue under section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) to be distributed within the county. The fractional amount that such a school corporation or civil taxing unit is entitled to receive each month during that calendar year equals the product of: (1) the amount of revenue under section 3(a)(2) or 3(a)(3) of this chapter to be distributed on the basis of property tax levies during that month; multiplied by (2) a fraction. The numerator of the fraction equals the budget of that school corporation or civil taxing unit for the distribution year. The denominator of the fraction equals the aggregate budgets of all school corporations or civil taxing units of that county for the distribution year. (d) Subject to subsection (b), if for a calendar year a school corporation or civil taxing unit is allocated a part of a county's revenue under section 3(a)(2) or 3(a)(3) of this chapter by subsection (c), the calculations used to determine the shares of revenue of all other school corporations and civil taxing units under section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) shall be changed each month for that same year by reducing the amount of revenue to be distributed by the amount of revenue under section 3(a)(2) or 3(a)(3) of this chapter allocated under subsection (c) for that same month. The department of local government finance shall make any adjustments required by this subsection and provide them to the appropriate county auditors. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.20; P.L.197-2016, SEC.55; P.L.85-2017, SEC.26; P.L.247-2017, SEC.22; P.L.9-2024, SEC.191.

Ind. Code § 6-3.6-6-20 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.20; P.L.197-2016, SEC.55; P.L.85-2017, SEC.26; P.L.247-2017, SEC.22; P.L.9-2024, SEC.191. Repealed by P.L.68-2025, SEC.143.

Ind. Code § 6-3.6-6-21 Ability to contribute certified shares to regional development authority infrastructure fund

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 21. A civil taxing unit may contribute any part of its certified shares to the regional development infrastructure fund established by IC 36-9-43-9. The contribution must be approved in an ordinance adopted by the fiscal body of the political subdivision. As added by P.L.229-2017, SEC.31.

Ind. Code § 6-3.6-6-21 Ability to contribute general purpose revenue to regional development authority infrastructure fund

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 21. A county, city, town, or nonmunicipal civil taxing unit may contribute any part of its general purpose revenue to the regional development infrastructure fund established by IC 36-9-43-9. The contribution must be approved in an ordinance adopted by the fiscal body of the political subdivision. As added by P.L.229-2017, SEC.31. Amended by P.L.68-2025, SEC.144.

Ind. Code § 6-3.6-6-21.2 School corporation allocation of local income tax revenue to any fund

Note: This version of section effective until 7-1-2028. See also following repeal of this section, effective 7-1-2028. Sec. 21.2. A school corporation that receives a distribution of revenue under section 3 of this chapter may allocate the revenue among any of its funds. As added by P.L.244-2017, SEC.14.

Ind. Code § 6-3.6-6-21.2 Repealed

Revisor's Note: The effective date of this section, as repealed by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This repeal of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. As added by P.L.244-2017, SEC.14. Repealed by P.L.68-2025, SEC.145.

Ind. Code § 6-3.6-6-21.3 Allocation and distribution of certain revenue; merger of school corporations or civil taxing units

Note: This version of section effective until 7-1-2028. See also following version of this section, effective 7-1-2028. Sec. 21.3. (a) This section: (1) does not apply to: (A) distributions made under this chapter to a civil taxing unit for fire protection services within a fire protection territory established under IC 36-8-19; or (B) distributions of revenue under section 9 of this chapter; and (2) applies only to the following: (A) Any allocation or distribution of revenue under section 3(a)(2) of this chapter that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-1.1 (before its repeal on January 1, 2017). (B) Any allocation or distribution of revenue under section 3(a)(3) of this chapter that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-6 (before its repeal on January 1, 2017). (b) Subject to subsection (a), if two (2) or more: (1) school corporations; or (2) civil taxing units; of an adopting county merge or consolidate to form a single school corporation or civil taxing unit, the school corporation or civil taxing unit that is in existence on January 1 of the current year is entitled to the combined pro rata distribution of the revenue under section 3(a)(2) or 3(a)(3) of this chapter (as appropriate) allocated to each applicable school corporation or civil taxing unit in existence on January 1 of the immediately preceding calendar year prior to the merger or consolidation. (c) The department of local government finance shall make adjustments to civil taxing units in accordance with IC 6-1.1-18.5-7. As added by P.L.137-2024, SEC.10.

Ind. Code § 6-3.6-6-21.3 Allocation and distribution of certain revenue; merger of school corporations or civil taxing units

Revisor's Note: The effective date of this section, as amended by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Note: This version of section effective 7-1-2028. See also preceding version of this section, effective until 7-1-2028. Sec. 21.3. (a) This section applies to distributions of revenue before January 1, 2029. This section: (1) does not apply to: (A) distributions made under this chapter to a civil taxing unit for fire protection services within a fire protection territory established under IC 36-8-19; or (B) distributions of revenue under section 9 of this chapter (before its repeal); and (2) applies only to the following: (A) Any allocation or distribution of revenue under section 3(a)(2) of this chapter (as in effect before July 1, 2028) that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-1.1 (before its repeal on January 1, 2017). (B) Any allocation or distribution of revenue under section 3(a)(3) of this chapter (as in effect before July 1, 2028) that is made on the basis of property tax levies in counties that formerly imposed a tax under IC 6-3.5-6 (before its repeal on January 1, 2017). (b) Subject to subsection (a), if two (2) or more: (1) school corporations; or (2) civil taxing units; of an adopting county merge or consolidate to form a single school corporation or civil taxing unit, the school corporation or civil taxing unit that is in existence on January 1 of the current year is entitled to the combined pro rata distribution of the revenue under section 3(a)(2) or 3(a)(3) (as in effect before July 1, 2028) of this chapter (as appropriate) allocated to each applicable school corporation or civil taxing unit in existence on January 1 of the immediately preceding calendar year prior to the merger or consolidation. (c) The department of local government finance shall make adjustments to civil taxing units in accordance with IC 6-1.1-18.5-7. As added by P.L.137-2024, SEC.10. Amended by P.L.68-2025, SEC.146; P.L.157-2026, SEC.131.

Ind. Code § 6-3.6-6-22 Municipal tax rate; applicability

Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Effective 7-1-2028. Sec. 22. (a) As used in this section, "municipality" means only a city or town that: (1) has a population of three thousand five hundred (3,500) or more; and (2) in the case of a city or town whose population decreased in the most recent federal decennial census from three thousand five hundred (3,500) or more to less than three thousand five hundred (3,500), has elected by ordinance to continue to use its previous population of three thousand five hundred (3,500) or more as set forth in section 23(b)(2) of this chapter for purposes of the allocation determination under section 6.1 of this chapter. The term does not include a city or town that has made an election under section 23(b)(3) of this chapter. (b) Beginning after December 31, 2028, the fiscal body of a municipality may by ordinance and subject to subsection (e), impose a local income tax rate on the adjusted gross income of local taxpayers in the municipality that does not exceed one and two-tenths percent (1.2%). (c) The following apply if a municipality imposes a local income tax rate under this section: (1) A local income tax rate imposed by a municipality under this section applies only to local taxpayers within the territory of the municipality. (2) The local income tax is imposed in addition to a tax imposed by the county in which the municipality is located in accordance with IC 6-3.6-4-1(a) and IC 6-3.6-4-1(c). (3) The following provisions of this article apply to a local income tax rate imposed by a municipality under subsection (b): (A) IC 6-3.6-3 (adoption of the tax), including the effective date of an ordinance under IC 6-3.6-3-3.3. (B) IC 6-3.6-4 (imposition of the tax), except that IC 6-3.6-4-2 and IC 6-3.6-4-3 do not apply. (C) IC 6-3.6-8 (administration of the tax). (4) A local income tax rate imposed by a municipality shall apply to team members and race team members described in IC 6-3.6-2-13(3) on the income derived from services performed as a team member or race team member in the municipality. (d) The amount of the tax revenue that is from the local income tax rate imposed under this section and that is collected for a calendar year shall be treated as general purpose revenue and must be distributed to the fiscal officer of the municipality that imposed the tax before July 1 of the next calendar year. (e) A tax rate imposed under subsection (b) expires on December 31, 2031, and on December 31 of each calendar year thereafter. A municipality wishing to continue, increase, or decrease a tax rate for the succeeding year must pass an ordinance to readopt a tax rate in accordance with IC 6-3.6-3-3.3. However, if there are bonds, leases, or other obligations payable from a tax imposed under subsection (b) that remain outstanding and the municipality fails to adopt an ordinance to continue the expenditure tax rate under this subsection, the expenditure tax rate for the municipality for the succeeding year, or until the maturity date of those debt obligations, whichever is sooner, shall be the minimum tax rate necessary to produce one and twenty-five hundredths (1.25) times the sum of: (1) the highest annual outstanding debt service; (2) the highest annual lease payments; and (3) any amount required under the agreements for the bonds or leases to be deposited in a sinking fund or other reserve; for the year. This subsection applies regardless of whether there is a modification in the tax rate or the rate is unchanged from the previous year. (f) A municipality that imposes a local income tax rate under this section shall work with the county to provide the geographic information prescribed by the state GIS officer to the state GIS officer. The required information must be submitted to the state GIS officer in the manner prescribed by the state GIS officer not later than August 1 each year. As added by P.L.68-2025, SEC.147. Amended by P.L.157-2026, SEC.132.

Ind. Code § 6-3.6-6-23 Determination of population for cities and towns

Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028. Effective 7-1-2028. Sec. 23. (a) This section applies in determining the population of a city or town for the purposes of this chapter. (b) The following apply: (1) Except as provided in subdivisions (2) and (3), the population of a city or town is the population of the city or town that is reported by the 2020 federal decennial census. (2) Beginning after 2032, if the population of a city or town decreases from a population of three thousand five hundred (3,500) or more, as reported by the immediately preceding federal decennial census, to a population of less than three thousand five hundred (3,500), as reported by the most recent federal decennial census, or, if applicable, any corrected population count (as defined in IC 1-1-3.5-1.5) issued for the city or town in the year succeeding the most recent federal decennial census, the fiscal body of the city or town may adopt an ordinance on or before September 1 of the calendar year two (2) years after the most recent federal decennial census to continue to use the population of the city or town as reported by the immediately preceding federal decennial census and the resulting determination for the city or town under section 22 of this chapter, notwithstanding the increase or decrease in its population as reported by the most recent federal decennial census as described in this subdivision. An ordinance adopted under this subdivision shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. The fiscal officer of the city or town shall provide a certified copy of an ordinance adopted under this subdivision to the department of local government finance. (3) This subdivision applies only to cities and towns with a population of three thousand five hundred (3,500) or more. Notwithstanding any other provision, a fiscal body of a city or town may adopt an ordinance to elect to be treated as if the city's or town's population is less than three thousand five hundred (3,500) for purposes of a county local income tax rate and distribution under this chapter. An ordinance adopted under this subdivision shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. The fiscal officer of the city or town shall provide a certified copy of an ordinance adopted under this subdivision to the department of local government finance. An ordinance adopted by a city or town under this subdivision is not revocable and shall expire December 31, 2032. As added by P.L.68-2025, SEC.148. Amended by P.L.157-2026, SEC.133.