HB 1288

                                                           Introduced Version
          HOUSE BILL No. 1288
                _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 3-8-1-23; IC 3-10-2-13; IC 3-11-2-12;
IC 3-13-10-3; IC 6-1.1; IC 6-1.2; IC 6-2.5; IC 6-3.6; IC 6-8.1-3-30;
IC 8-22-3.5-0.5; IC 20-26-7.1-1; IC 20-46; IC 36-2-15; IC 36-6-5;
IC 36-7; IC 36-7.5-4.5-0.2.
Synopsis: Local government finance. Abolishes the assessment of
tangible property after December 31, 2026, and the imposition of
property taxes after December 31, 2027. Provides that a political
subdivision may not issue any new bonds, notes, or warrants, or enter
into any leases or obligations to be paid from property tax revenue, or
that include a pledge to levy property taxes if other funds are
insufficient. Provides that: (1) no property tax increment financing
district or allocation area may be established, amended, or renewed;
and (2) no bonds, leases, or other obligations may be issued, entered
into, or extended for a property tax increment financing district or
allocation area. Provides that a school corporation may impose an
annual fee to replace the loss of revenue previously collected by the
school corporation from the imposition of an operating referendum tax
levy or school safety referendum tax levy. Prescribes procedures for the
fixing and reviewing of a political subdivision's budget. Prohibits the
imposition of new levies for controlled projects, operating referenda,
and school safety referenda. Abolishes the offices of county assessor
and township assessor. Extends the sales and use tax application to
transactions involving services, except for health care or mental health
                     (Continued next page)
Effective: Upon passage; July 1, 2026; July 1, 2027; January 1, 2028.
   Prescott, Haggard, Lucas, Payne
   January 6, 2026, read first time and referred to Committee on Ways and Means.
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Digest Continued
services (including insurance premiums for policies covering these
services) and services provided for charitable tax exempt purposes.
Establishes the local revenue sharing fund (fund) into which revenue
from the portion of revenue from the extended sales and use tax is to
be deposited. Requires the state comptroller to distribute to taxing units
the portion of all the state sales and use tax revenue attributable to
services from the fund. Continually appropriates money from the fund.
Requires the legislative services agency to prepare legislation for
introduction in the 2027 regular session of the general assembly to
make appropriate required changes in statutes. Makes corresponding
changes.
2026  IN 1288—LS 6962/DI 125
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1288
    A BILL FOR AN ACT to amend the Indiana Code concerning
 taxation and to make an appropriation.
     Be it enacted by the General Assembly of the State of Indiana:
1     SECTION 1. IC 3-8-1-23, AS AMENDED BY P.L.167-2015,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]: Sec. 23. This section does not apply to elections in
4 2027 and thereafter. A candidate for the office of county assessor
5 must satisfy the following:
6(1) The candidate must have resided in the county for at least one
7(1) year before the election, as provided in Article 6, Section 4 of
8the Constitution of the State of Indiana.
9(2) The candidate must own real property located in the county
10upon taking office.
11     SECTION 2. IC 3-10-2-13, AS AMENDED BY P.L.278-2019,
12 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2026]: Sec. 13. The following public officials shall be elected
14 at the general election before their terms of office expire and every four
15 (4) years thereafter:
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1      (1) Clerk of the circuit court.
2      (2) County auditor.
3      (3) County recorder.
4      (4) County treasurer.
5      (5) County sheriff.
6      (6) County coroner.
7      (7) County surveyor.
8      (8) County assessor. This subdivision does not apply to
9      elections in 2027 and thereafter.
10      (9) County commissioner.
11      (10) County council member.
12      (11) Township trustee.
13      (12) Township board member.
14      (13) Township assessor (only in a township referred to in
15      IC 36-6-5-1(d)). This subdivision does not apply to elections in
16      2027 and thereafter.
17      (14) Judge of a small claims court.
18      (15) Constable of a small claims court.
19    SECTION 3. IC 3-11-2-12, AS AMENDED BY P.L.40-2025,
20 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2026]: Sec. 12. (a) The following offices shall be placed on
22 the general election ballot in the following order after the public
23 questions described in section 10(a) of this chapter:
24      (1) Federal and state offices:
25(A) President and Vice President of the United States.
26(B) United States Senator.
27(C) Governor and lieutenant governor.
28(D) Secretary of state.
29(E) State comptroller (auditor of state).
30(F) Treasurer of state.
31(G) Attorney general.
32(H) United States Representative. If an election to fill a
33vacancy in an office of United States Representative under
34IC 3-10-8 is held on the same day as the election for the next
35term of the same office, the ballot shall list the election to fill
36the vacancy in the office immediately after the election for the
37next term of the office.
38      (2) Legislative offices:
39(A) State senator.
40(B) State representative.
41      (3) Circuit offices and county judicial offices:
42(A) Judge of the circuit court, and unless otherwise specified
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1under IC 33, with each division separate if there is more than
2one (1) judge of the circuit court.
3(B) Judge of the superior court, and unless otherwise specified
4under IC 33, with each division separate if there is more than
5one (1) judge of the superior court.
6(C) Judge of the probate court.
7(D) Prosecuting attorney.
8(E) Clerk of the circuit court.
9(4) County offices:
10(A) County auditor.
11(B) County recorder.
12(C) County treasurer.
13(D) County sheriff.
14(E) County coroner.
15(F) County surveyor.
16(G) County assessor. This clause does not apply to elections
17in 2027 and thereafter.
18(H) County commissioner.
19(I) County council member.
20(5) Township offices:
21(A) Township assessor (only in a township referred to in
22IC 36-6-5-1(d)). This clause does not apply to elections in
232027 and thereafter.
24(B) Township trustee.
25(C) Township board member.
26(D) Judge of the small claims court.
27(E) Constable of the small claims court.
28(6) City offices:
29(A) Mayor.
30(B) Clerk or clerk-treasurer.
31(C) Judge of the city court.
32(D) City-county council member or common council member.
33(7) Town offices:
34(A) Clerk-treasurer.
35(B) Judge of the town court.
36(C) Town council member.
37    (b) If a major political party does not nominate a candidate for an
38 office on a general, municipal, or special election ballot then the county
39 election board may print "NO CANDIDATE FILED" in the place on
40 the ballot where the name of the major political party's nominee would
41 be printed.
42    SECTION 4. IC 3-13-10-3 IS REPEALED [EFFECTIVE JULY 1,
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1 2026]. Sec. 3. (a) This section applies to a vacancy in the office of
2 township assessor not covered by section 1 of this chapter.
3    (b) A vacancy shall be filled by the county assessor, subject to the
4 approval of the department of local government finance. Except as
5 provided in subsection (c), the county assessor shall make the
6 appointment not later than thirty (30) days after the vacancy occurs. If
7 the vacancy occurred because the elected township assessor failed to
8 qualify or was removed, the person who is appointed must be of the
9 same political party as the elected township assessor.
10    (c) If a vacancy exists because of the death of the township assessor,
11 the county assessor shall make the appointment required by subsection
12 (b) not later than thirty (30) days after the county assessor receives
13 notice of the death under IC 5-8-6. The county assessor may not fill the
14 vacancy as required by subsection (b) until the county assessor receives
15 notice of the death under IC 5-8-6.
16    SECTION 5. IC 6-1.1-1-24 IS REPEALED [EFFECTIVE JULY 1,
17 2026]. Sec. 24. If a transfer from a township assessor to the county
18 assessor of the assessment duties prescribed by this article occurs as
19 described in IC 36-2-15-5(c), a reference to the township assessor in
20 this article is considered to be a reference to the county assessor.
21    SECTION 6. IC 6-1.1-2-1 IS AMENDED TO READ AS
22 FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 1. (a) Except as
23 otherwise provided by law, Before January 1, 2027, and subject to
24 subsection (b), all tangible property which is within the jurisdiction of
25 this state on the assessment date of a year is subject to assessment and
26 taxation for that year. Notwithstanding any other law, tangible
27 property which is within the jurisdiction of this state may not be
28 assessed after December 31, 2026, and property taxes on tangible
29 property may not be first imposed or first due after December 31,
30 2027.
31    (b) Nothing in this section may be construed as limiting or
32 otherwise affecting:
33(1) the collection of any property taxes or penalties imposed;
34or
35(2) any property tax exemptions or property tax deductions
36allowed;
37 under this article or any other law before January 1, 2028.
38    SECTION 7. IC 6-1.1-2-1.5, AS ADDED BY P.L.111-2014,
39 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2026]: Sec. 1.5. (a) Except as provided in subsection (b), the
41 annual assessment date for tangible property is:
42(1) March 1 in a year ending before January 1, 2016; and
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1(2) January 1 in a year beginning after December 31, 2015, and
2ending before January 1, 2027.
3     (b) This subsection applies to mobile homes (including
4 manufactured homes) subject to assessment under IC 6-1.1-7. Mobile
5 homes are assessed in the year following the year containing the related
6 assessment date for other property. The annual assessment date for
7 mobile homes is:
8(1) January 15 in a year ending before January 1, 2017; and
9(2) January 1 in a year beginning after December 31, 2016, and
10ending before January 1, 2027.
11     SECTION 8. IC 6-1.1-2-3 IS REPEALED [EFFECTIVE JANUARY
12 1, 2028]. Sec. 3. The total tax rate to be imposed on each one hundred
13 dollars ($100) of the assessed value of property shall be determined in
14 the manner provided by law. Property tax revenues shall be used for
15 state expenditures and for the support of the political subdivisions of
16 this state.
17     SECTION 9. IC 6-1.1-3-1, AS AMENDED BY P.L.249-2015,
18 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JULY 1, 2026]: Sec. 1. (a) Before January 1, 2027, and except as
20 provided in subsection (c), personal property which is owned by a
21 person who is a resident of this state shall be assessed at the place
22 where the owner resides on the assessment date of the year for which
23 the assessment is made.
24     (b) Before January 1, 2027, and except as provided in subsection
25 (c), personal property which is owned by a person who is not a resident
26 of this state shall be assessed at the place where the owner's principal
27 office within this state is located on the assessment date of the year for
28 which the assessment is made.
29     (c) Before January 1, 2027, personal property shall be assessed at
30 the place where it is situated on the assessment date of the year for
31 which the assessment is made if the property is:
32(1) regularly used or permanently located where it is situated; or
33(2) owned by a nonresident who does not have a principal office
34within this state.
35     (d) If a personal property return is filed pursuant to subsection (c),
36 the owner of the property shall provide, within forty-five (45) days after
37 the filing deadline, a copy or other written evidence of the filing of the
38 return to the assessor of the county in which the owner resides. If such
39 evidence is not filed within forty-five (45) days after the filing
40 deadline, the county assessor for the area where the owner resides shall
41 determine if the owner filed a personal property return in the township
42 or county where the property is situated. If such a return was filed, the
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1 property shall be assessed where it is situated. If such a return was not
2 filed, the county assessor for the area where the owner resides shall
3 notify the assessor of the township or county where the property is
4 situated, and the property shall be assessed where it is situated. This
5 subsection does not apply to a taxpayer who is required by the
6 department of local government finance to file a summary of the
7 taxpayer's business tangible personal property returns.
8     SECTION 10. IC 6-1.1-15-1.1, AS AMENDED BY P.L.9-2024,
9 SECTION 167, IS AMENDED TO READ AS FOLLOWS
10 [EFFECTIVE UPON PASSAGE]: Sec. 1.1. (a) A taxpayer may appeal
11 an assessment of a taxpayer's tangible property by filing a notice in
12 writing with, before May 10, 2026, the township assessor, or the
13 county assessor if the township is not served by a township assessor,
14 and after May 9, 2026, with the county auditor. Except as provided
15 in subsections (e) and (h), an appeal under this section may raise any
16 claim of an error related to the following:
17(1) The assessed value of the property.
18(2) The assessment was against the wrong person.
19(3) The approval denial or omission of a deduction, credit,
20exemption, abatement, or tax cap.
21(4) A clerical, mathematical, or typographical mistake.
22(5) The description of the real property.
23(6) The legality or constitutionality of a property tax or
24assessment.
25 A written notice under this section must be made on a form designated
26 by the department of local government finance. A taxpayer must file a
27 separate petition for each parcel.
28     (b) A taxpayer may appeal an error in the assessed value of the
29 property under subsection (a)(1) any time after the official's action, but
30 not later than the following:
31(1) For assessments before January 1, 2019, the earlier of:
32(A) forty-five (45) days after the date on which the notice of
33assessment is mailed by the county; or
34(B) forty-five (45) days after the date on which the tax
35statement is mailed by the county treasurer, regardless of
36whether the assessing official changes the taxpayer's
37assessment.
38(2) For assessments of real property, after December 31, 2018, the
39earlier of:
40(A) June 15 of the assessment year, if the notice of assessment
41is mailed by the county before May 1 of the assessment year;
42or
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1(B) June 15 of the year in which the tax statement is mailed by
2the county treasurer, if the notice of assessment is mailed by
3the county on or after May 1 of the assessment year.
4(3) For assessments of personal property, forty-five (45) days after
5the date on which the county mails the notice under
6IC 6-1.1-3-20.
7 A taxpayer may appeal an error in the assessment under subsection
8 (a)(2), (a)(3), (a)(4), (a)(5), or (a)(6) not later than three (3) years after
9 the taxes were first due.
10     (c) Except as provided in subsection (d), an appeal under this
11 section applies only to the tax year corresponding to the tax statement
12 or other notice of action.
13     (d) An appeal under this section applies to a prior tax year if a
14 county official took action regarding a prior tax year, and such action
15 is reflected for the first time in the tax statement. A taxpayer who has
16 timely filed a written notice of appeal under this section may be
17 required to file a petition for each tax year, and each petition filed later
18 must be considered timely.
19     (e) A taxpayer may not appeal under this section any claim of error
20 related to the following:
21(1) The denial of a deduction, exemption, abatement, or credit if
22the authority to approve or deny is not vested in the county board,
23county auditor, county assessor, or township assessor.
24(2) The calculation of interest and penalties.
25(3) A matter under subsection (a) if a separate appeal or review
26process is statutorily prescribed.
27 However, a claim may be raised under this section regarding the
28 omission or application of a deduction approved by an authority other
29 than the county board, county auditor, county assessor, or township
30 assessor.
31     (f) The filing of a written notice under this section constitutes a
32 request by the taxpayer for a preliminary informal meeting with:
33(1) in the case of a notice filed before May 10, 2026, the
34township assessor, or the county assessor if the township is not
35served by a township assessor; and
36(2) in the case of a notice filed after May 9, 2026, the county
37auditor.
38     (g) A county or township official, or county auditor, as applicable,
39 who receives a written notice under this section shall forward the
40 notice to:
41(1) the county board; and
42(2) in the case of a notice filed with a county or township
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1official before May 10, 2026, the county auditor. if the taxpayer
2raises a claim regarding a matter that is in the discretion of the
3county auditor.
4     (h) A taxpayer may not raise any claim in an appeal under this
5 section related to the legality or constitutionality of:
6(1) a user fee (as defined in IC 33-23-1-10.5);
7(2) any other charge, fee, or rate imposed by a political
8subdivision under any other law; or
9(3) any tax imposed by a political subdivision other than a
10property tax.
11     (i) This subsection applies only to an appeal based on a claim of
12 error in the determination of property that is or is not eligible for a
13 standard homestead deduction under IC 6-1.1-12-37 and only for an
14 assessment date occurring before January 1, 2024. A taxpayer may
15 appeal an error in the assessment of property as described in this
16 subsection any time after the official's action, but not later than one (1)
17 year after the date on which the property that is the subject of the
18 appeal was assessed.
19     SECTION 11. IC 6-1.1-15-1.2, AS AMENDED BY P.L.9-2024,
20 SECTION 168, IS AMENDED TO READ AS FOLLOWS
21 [EFFECTIVE UPON PASSAGE]: Sec. 1.2. (a) A county or township
22 official, or county auditor, as applicable, who receives a written
23 notice under section 1.1 of this chapter shall schedule, at a time during
24 business hours that is convenient to the taxpayer, a preliminary
25 informal meeting with the taxpayer in order to resolve the appeal. If the
26 taxpayer raises a claim regarding a matter that is in the discretion of the
27 county auditor, the An informal meeting held after May 9, 2026, must
28 include the county auditor, if the county auditor did not receive the
29 written notice under section 1.1 of this chapter. At the preliminary
30 informal meeting, in order to facilitate understanding and the resolution
31 of disputed issues:
32(1) a county or township official;
33(2) the county auditor; if the matter is in the discretion of the
34county auditor; and
35(3) the taxpayer;
36 shall exchange the information that each party is relying on at the time
37 of the preliminary informal meeting to support the party's respective
38 position on each disputed issue concerning the assessment or
39 deduction. If additional information is obtained by the county or
40 township official, the county auditor, or the taxpayer after the
41 preliminary informal meeting and before the hearing held by the county
42 board, the party obtaining the information shall provide the information
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1 to the other party. If the county or township official, the county auditor,
2 or the taxpayer obtains additional information and provides the
3 information to the other party for the first time at the hearing held by
4 the county board, the county board, unless waived by the receiving
5 party, shall continue the hearing until a future hearing date of the
6 county board so that the receiving party has an opportunity to review
7 all the information that the offering party is relying on to support the
8 offering party's positions on the disputed issues concerning the
9 assessment or deduction.
10     (b) The official or county auditor, as applicable, shall report on a
11 form prescribed by the department of local government finance the
12 results of the informal meeting. If the taxpayer and the official or
13 county auditor, as applicable, agree on the resolution of all issues in
14 the appeal, the report shall state the agreed resolution of the matter and
15 be signed by the official or county auditor, as applicable, and the
16 taxpayer. If an informal meeting is not held, or the informal meeting is
17 unsuccessful, the official or county auditor, as applicable, shall
18 report those facts on the form. The official or county auditor, as
19 applicable, shall forward the report on the informal meeting to the
20 county board.
21     (c) If the county board receives a report on the informal meeting
22 indicating an agreed resolution of the matter, the county board shall
23 vote to accept or deny the agreed resolution. If the county board accepts
24 the agreed resolution, the county board shall issue a notification of final
25 assessment determination adopting the agreed resolution and vacating
26 the hearing if scheduled.
27     (d) The county board, upon receipt of a written notice under section
28 1.1 of this chapter, shall hold a hearing on the appeal not later than one
29 hundred eighty (180) days after the filing date of the written notice.
30 The county board shall, by mail, give at least thirty (30) days notice of
31 the date, time, and place fixed for the hearing to the taxpayer, the
32 county or township official with whom the taxpayer filed the written
33 notice, and the county auditor. If the county board has notice that the
34 taxpayer is represented by a third person, any hearing notice shall be
35 mailed to the representative.
36     (e) If good cause is shown, the county board shall grant a request for
37 continuance filed in writing at least ten (10) days before the hearing,
38 and reschedule the hearing under subsection (d).
39     (f) A taxpayer may withdraw an appeal by filing a written request
40 at least ten (10) days before the hearing. The county board shall issue
41 a notification of final assessment determination indicating the
42 withdrawal and no change in the assessment. A withdrawal waives a
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1 taxpayer's right to appeal to the Indiana board.
2     (g) The county board shall determine an appeal without a hearing if
3 requested by the taxpayer in writing at least twenty (20) days before the
4 hearing.
5     (h) If a taxpayer appeals the assessment of tangible property under
6 section 1.1 of this chapter, the taxpayer is not required to have an
7 appraisal of the property in order to initiate the appeal or prosecute the
8 appeal. If the taxpayer presents an appraisal to the county board that:
9(1) is prepared by a certified appraiser in compliance with the
10Uniform Standards of Professional Appraisal Practice to
11determine the market value in use;
12(2) is addressed to the property owner or the assessor's office;
13(3) is commissioned for the purpose of the assessment appeal; and
14(4) has an effective date that is the same date as the date of the
15assessment that is the subject of the appeal;
16 the value of the property contained in the appraisal is presumed to be
17 correct. If the county board disagrees with the taxpayer's appraisal, the
18 county board may seek review of the appraisal by a third party
19 independent certified appraiser or obtain an independent appraisal
20 report conducted by a certified appraiser in compliance with the
21 Uniform Standards of Professional Appraisal Practice. If the county
22 board's appraisal differs from the taxpayer's appraisal, the county board
23 shall weigh the evidence and determine the true tax value of the
24 property based on the totality of the probative evidence before the
25 county board. The county board's determination of the property's true
26 tax value may be higher or lower than the assessment but may not be
27 lower than the lowest appraisal presented to or obtained by the county
28 board, or higher than the highest appraisal presented to or obtained by
29 the county board. After the assignment of value, the parties shall retain
30 their rights to appeal the assessment or assessments to the Indiana
31 board, which must hear the appeal de novo.
32     (i) At a hearing under subsection (d), the taxpayer shall have the
33 opportunity to present testimony and evidence regarding the matters on
34 appeal. If the matters on appeal are in the discretion of the county
35 auditor, The county auditor or the county auditor's representative shall
36 attend the hearing. A county or township official, or the county auditor
37 or the county auditor's representative, shall have an opportunity to
38 present testimony and evidence regarding the matters on appeal. The
39 county board may adjourn and continue the hearing to a later date in
40 order to make a physical inspection or consider the evidence presented.
41     (j) The county board shall determine the assessment by motion and
42 majority vote. Except as provided in subsection (m), a county board
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1 may, based on the evidence before it, increase an assessment. The
2 county board shall issue a written decision. Written notice of the
3 decision shall be given to the township official, county official, county
4 auditor, and the taxpayer.
5     (k) If more than one hundred eighty (180) days have passed since
6 the date the notice of appeal was filed, and the county board has not
7 issued a determination, a taxpayer may initiate any appeal with the
8 Indiana board of tax review under section 3 of this chapter.
9     (l) The county assessor or county auditor, as applicable, may
10 assess a penalty of fifty dollars ($50) against the taxpayer if the
11 taxpayer or representative fails to appear at a hearing under subsection
12 (d) and, under subsection (e), the taxpayer's request for continuance is
13 denied, or the taxpayer's request for continuance, request for the board
14 to take action without a hearing, or withdrawal is not timely filed. A
15 taxpayer may appeal the assessment of the penalty to the Indiana board
16 or directly to the tax court. The penalty may not be added as an amount
17 owed on the property tax statement under IC 6-1.1-22 or IC 6-1.1-22.5.
18     (m) The determination of an appealed assessed value of tangible
19 property by a county or township official, or county auditor, as
20 applicable, resulting from an informal meeting under subsection (a),
21 or by a county board resulting from an appeal hearing under subsection
22 (d), may be less than or equal to the tangible property's original
23 appealed assessed value at issue, but may not exceed the original
24 appealed assessed value at issue. However, an increase in assessed
25 value that is attributable to substantial renovation, new improvements,
26 zoning change, or use change is excluded from the limitation under this
27 subsection.
28     SECTION 12. IC 6-1.1-15-3, AS AMENDED BY P.L.230-2025,
29 SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 UPON PASSAGE]: Sec. 3. (a) A taxpayer may obtain a review by the
31 Indiana board of:
32(1) a county board's action with respect to a claim under section
331.1 of this chapter; or
34(2) a denial by the county auditor, the county assessor, or the
35county treasurer of a claim for refund under IC 6-1.1-9-10(c)(2)
36that is appealed to the Indiana board as authorized in
37IC 6-1.1-26-2.1(d)(2).
38     (b) The county assessor (before the abolishment of the office) and
39 the county auditor is the party are parties to a review under
40 subsection (a)(1) to defend the determination of the county board. The
41 county auditor may appear as an additional party to the review if the
42 determination concerns a matter that is in the discretion of the county
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1 auditor. At the time the notice of that determination is given to the
2 taxpayer, the taxpayer shall also be informed in writing of:
3(1) the taxpayer's opportunity for review under subsection (a)(1);
4and
5(2) the procedures the taxpayer must follow in order to obtain
6review under this section.
7     (c) A county assessor or county auditor who dissents from the
8 determination of the county board may obtain a review by the Indiana
9 board. A county auditor who dissents from the determination of the
10 county board concerning a matter that is in the discretion of the county
11 auditor may obtain a review by the Indiana board.
12     (d) In order to obtain a review by the Indiana board under
13 subsection (a)(1), the party must, not later than forty-five (45) days
14 after the date of the notice given to the party or parties of the
15 determination of the county board:
16(1) file a petition for review with the Indiana board; and
17(2) serve a copy of the petition on the other party.
18     (e) The Indiana board shall prescribe the form of the petition for
19 review under this chapter. The Indiana board shall issue instructions for
20 completion of the form. The form and the instructions must be clear,
21 simple, and understandable to the average individual. A petition for
22 review of such a determination must be made on the form prescribed
23 by the Indiana board. The form must require the petitioner to specify
24 the reasons why the petitioner believes that the determination by the
25 county board is erroneous.
26     (f) If the action for which a taxpayer seeks review under this section
27 is the assessment of tangible property, the taxpayer is not required to
28 have an appraisal of the property in order to do the following:
29(1) Initiate the review.
30(2) Prosecute the review.
31     (g) If an owner petitions the Indiana board under IC 6-1.1-11-7(d),
32 the Indiana board is authorized to approve or disapprove an exemption
33 application:
34(1) previously submitted to a county board under IC 6-1.1-11-6;
35and
36(2) that is not approved or disapproved by the county board within
37one hundred eighty (180) days after the owner filed the
38application for exemption under IC 6-1.1-11.
39 The county assessor (before the abolishment of the office) and after
40 May 9, 2026, the county auditor, is a party are parties to a petition
41 to the Indiana board under IC 6-1.1-11-7(d).
42     (h) This subsection applies only to the review by the Indiana board
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                                     13
1 of a denial of a refund claim described in subsection (a)(2). The county
2 assessor (before the abolishment of the office) and after May 9,
3 2026, the county auditor, is the party are parties to a review under
4 subsection (a)(2) to defend the denial of the refund under
5 IC 6-1.1-26-2.1. In order to obtain a review by the Indiana board under
6 subsection (a)(2), the taxpayer must, within forty-five (45) days of the
7 notice of denial under IC 6-1.1-26-2.1(d):
8(1) file a petition for review with the Indiana board; and
9(2) serve a copy of the petition on the county auditor.
10     SECTION 13. IC 6-1.1-15-4, AS AMENDED BY P.L.230-2025,
11 SECTION 40, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 UPON PASSAGE]: Sec. 4. (a) After receiving a petition for review
13 which is filed under section 3 of this chapter, the Indiana board shall
14 conduct a hearing at its earliest opportunity. The Indiana board may
15 correct any errors related to a claim under section 1.1 of this chapter
16 that is within the jurisdiction of the Indiana board under IC 6-1.5-4-1.
17     (b) If the Indiana board conducts a site inspection of the property as
18 part of its review of the petition, the Indiana board shall give notice to
19 all parties of the date and time of the site inspection. The Indiana board
20 is not required to assess the property in question. The Indiana board
21 shall give notice of the date fixed for the hearing, by mail, to the parties
22 or a party's representative. The Indiana board shall give these notices
23 at least thirty (30) days before the day fixed for the hearing unless the
24 parties agree to a shorter period. With respect to a petition for review
25 filed by a county assessor or county auditor, the county board that
26 made the determination under review under this section may file an
27 amicus curiae brief in the review proceeding under this section. The
28 expenses incurred by the county board in filing the amicus curiae brief
29 shall be paid from the property reassessment fund under
30 IC 6-1.1-4-27.5 of the county in which the property is located. The
31 executive of a taxing unit may file an amicus curiae brief in the review
32 proceeding under this section if the property that is the subject of the
33 appeal is subject to assessment by that taxing unit.
34     (c) If a petition for review does not comply with the Indiana board's
35 instructions for completing the form prescribed under section 3 of this
36 chapter, the Indiana board shall serve a notice describing the defect in
37 the petition. The petitioner then has thirty (30) days from the date on
38 the notice to cure the defect and file a corrected petition. The Indiana
39 board shall deny a corrected petition for review if it does not
40 substantially comply with the Indiana board's instructions for
41 completing the form prescribed under section 3 of this chapter.
42     (d) After the hearing, the Indiana board shall give the parties and
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1 any entity that filed an amicus curiae brief, or their representatives:
2(1) notice of its final determination; and
3(2) for parties entitled to appeal the final determination, notice of
4the procedures they must follow in order to obtain court review
5under section 5 of this chapter.
6     (e) The Indiana board shall conduct a hearing not later than one (1)
7 year after a petition in proper form is filed with the Indiana board.
8     (f) The Indiana board shall issue a determination not later than the
9 later of:
10(1) ninety (90) days after the hearing; or
11(2) the date set in an extension order issued by the Indiana board.
12The board may not extend the date by more than one hundred
13eighty (180) days.
14     (g) The time periods described in subsections (e) and (f) do not
15 include any period of time that is attributable to a party's:
16(1) request for a continuance, stay, extension, or summary
17disposition;
18(2) consent to a case management order, stipulated record, or
19proposed hearing date;
20(3) failure to comply with the board's orders or rules; or
21(4) waiver of a deadline.
22     (h) If the Indiana board fails to take action required under
23 subsection (e) or (f), the entity that initiated the petition may:
24(1) take no action and wait for the Indiana board to hear the
25matter and issue a final determination; or
26(2) petition for judicial review under section 5 of this chapter.
27     (i) This subsection applies when the board has not held a hearing.
28 A person may not seek judicial review under subsection (h)(2) until:
29(1) the person requests a hearing in writing; and
30(2) sixty (60) days have passed after the person requests a hearing
31under subdivision (1) and the matter has not been heard or
32otherwise extended under subsection (g).
33     (j) A final determination must include separately stated findings of
34 fact for all aspects of the determination. Findings of ultimate fact must
35 be accompanied by a concise statement of the underlying basic facts of
36 record to support the findings. Findings must be based exclusively
37 upon the evidence on the record in the proceeding and on matters
38 officially noticed in the proceeding. Findings must be based upon a
39 preponderance of the evidence.
40     (k) The Indiana board may limit the scope of the appeal to the issues
41 raised in the petition and the evaluation of the evidence presented to
42 the county board in support of those issues only if all parties
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1 participating in the hearing required under subsection (a) agree to the
2 limitation. A party participating in the hearing required under
3 subsection (a) is entitled to introduce evidence that is otherwise proper
4 and admissible without regard to whether that evidence has previously
5 been introduced at a hearing before the county board.
6     (l) The Indiana board may require the parties to the appeal:
7(1) to file not more than five (5) business days before the date of
8the hearing required under subsection (a) documentary evidence
9or summaries of statements of testimonial evidence; and
10(2) to file not more than fifteen (15) business days before the date
11of the hearing required under subsection (a) lists of witnesses and
12exhibits to be introduced at the hearing.
13     (m) A party to a proceeding before the Indiana board shall provide
14 to all other parties to the proceeding the information described in
15 subsection (l) if the other party requests the information in writing at
16 least ten (10) days before the deadline for filing of the information
17 under subsection (l).
18     (n) The Indiana board may base its final determination on a
19 stipulation between the respondent and the petitioner. If the final
20 determination is based on a stipulated assessed valuation of tangible
21 property, the Indiana board may order the placement of a notation on
22 the permanent assessment record of the tangible property that the
23 assessed valuation was determined by stipulation. The Indiana board
24 may:
25(1) order that a final determination under this subsection has no
26precedential value; or
27(2) specify a limited precedential value of a final determination
28under this subsection.
29     (o) If a party to a proceeding, or a party's authorized representative,
30 elects to receive any notice under this section electronically, the notice
31 is considered effective in the same manner as if the notice had been
32 sent by United States mail, with postage prepaid, to the party's or
33 representative's mailing address of record.
34     (p) At a hearing under this section, the Indiana board shall admit
35 into evidence an appraisal report, prepared by an appraiser, unless the
36 appraisal report is ruled inadmissible on grounds besides a hearsay
37 objection. This exception to the hearsay rule shall not be construed to
38 limit the discretion of the Indiana board, as trier of fact, to review the
39 probative value of an appraisal report.
40     SECTION 14. IC 6-1.1-15-5, AS AMENDED BY P.L.156-2020,
41 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 UPON PASSAGE]: Sec. 5. (a) Not later than fifteen (15) days after the
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1 Indiana board gives notice of its final determination under section 4 of
2 this chapter to the party or the maximum allowable time for the
3 issuance of a final determination by the Indiana board under section 4
4 of this chapter expires, a party to the proceeding may request a
5 rehearing before the Indiana board. The Indiana board may conduct a
6 rehearing and affirm or modify its final determination, giving the same
7 notices after the rehearing as are required by section 4 of this chapter.
8 The Indiana board has fifteen (15) days after receiving a petition for a
9 rehearing to determine whether to grant a rehearing. Failure to grant a
10 rehearing not later than fifteen (15) days after receiving the petition
11 shall be treated as a final determination to deny the petition. A petition
12 for a rehearing does not toll the time in which to file a petition for
13 judicial review unless the petition for rehearing is granted. If the
14 Indiana board determines to rehear a final determination, the Indiana
15 board:
16(1) may conduct the additional hearings that the Indiana board
17determines necessary or review the written record without
18additional hearings; and
19(2) shall issue a final determination not later than ninety (90) days
20after notifying the parties that the Indiana board will rehear the
21final determination.
22 If the Indiana board fails to make a final determination within the time
23 allowed under subdivision (2), the entity that initiated the petition for
24 rehearing may take no action and wait for the Indiana board to make a
25 final determination or petition for judicial review under subsection (g).
26     (b) A party may petition for judicial review of the final
27 determination of the Indiana board. In order to obtain judicial review
28 under this section, a party must:
29(1) file a petition with the Indiana tax court;
30(2) serve a copy of the petition on:
31(A) the parties to the review by the Indiana board;
32(B) the attorney general; and
33(C) any entity that filed an amicus curiae brief with the Indiana
34board; and
35(3) file a written notice of appeal with the Indiana board
36informing the Indiana board of the party's intent to obtain judicial
37review.
38 Petitions for judicial review may be consolidated at the request of the
39 appellants if it can be done in the interest of justice. The department of
40 local government finance may intervene in an action taken under this
41 subsection if the interpretation of a rule of the department is at issue in
42 the action. The county assessor (before the abolishment of the office)
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1 and after May 9, 2026, the county auditor, is a party are parties to
2 the review under this section.
3    (c) Except as provided in subsection (g), to initiate a proceeding for
4 judicial review under this section, a party must take the action required
5 by subsection (b) not later than:
6(1) forty-five (45) days after the Indiana board gives the person
7notice of its final determination, unless a rehearing is conducted
8under subsection (a); or
9(2) forty-five (45) days after the Indiana board gives the person
10notice under subsection (a) of its final determination, if a
11rehearing is conducted under subsection (a) or the maximum time
12elapses for the Indiana board to make a determination under this
13section.
14    (d) The failure of the Indiana board to conduct a hearing within the
15 period prescribed in section 4(e) of this chapter does not constitute
16 notice to the party of an Indiana board final determination.
17    (e) The county assessor or county auditor may petition for judicial
18 review to the tax court in the manner prescribed in this section. If the
19 county auditor appeared before the Indiana board concerning the
20 matter, the county auditor may petition for judicial review to the tax
21 court in the manner prescribed in this section.
22    (f) The county assessor or county auditor may not be represented
23 by the attorney general in a judicial review initiated under subsection
24 (b) by the county assessor or county auditor.
25    (g) If the maximum time elapses for the Indiana board to give notice
26 of its final determination under subsection (a) or section 4 of this
27 chapter, a party may initiate a proceeding for judicial review by taking
28 the action required by subsection (b) at any time after the maximum
29 time elapses. If:
30(1) a judicial proceeding is initiated under this subsection; and
31(2) the Indiana board has not issued a determination;
32 the tax court shall determine the matter de novo.
33    SECTION 15. IC 6-1.1-15-19, AS ADDED BY P.L.244-2015,
34 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 UPON PASSAGE]: Sec. 19. (a) Before July 1, 2026, a county
36 assessor, and after June 30, 2026, a county auditor, shall quarterly
37 send a notice to the fiscal officer of each taxing unit affected by an
38 appeal prosecuted under this chapter, including the fiscal officer of an
39 affected redevelopment commission established under IC 36-7. The
40 notice must include the following information:
41(1) The date on which a notice for review was filed.
42(2) The name and address of the taxpayer who filed the notice for
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1      review.
2      (3) The assessed value for the assessment date the year before the
3      appeal, and the assessed value on the most recent assessment
4      date.
5      (4) The status of the taxpayer's appeal.
6    (b) Each township assessor (if any) shall furnish to the county
7 assessor all requested information necessary for purposes of providing
8 the quarterly notices under this section. This subsection expires July
9 1, 2026.
10    (c) A notice required by this section may be provided to the
11 appropriate fiscal officer in an electronic format.
12    SECTION 16. IC 6-1.1-17-0.2 IS ADDED TO THE INDIANA
13 CODE AS A NEW SECTION TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2026]: Sec. 0.2. This chapter applies only in
15 calendar years before January 1, 2027.
16    SECTION 17. IC 6-1.1-20-0.3 IS ADDED TO THE INDIANA
17 CODE AS A NEW SECTION TO READ AS FOLLOWS
18 [EFFECTIVE UPON PASSAGE]: Sec. 0.3. (a) Notwithstanding any
19 other law, after May 9, 2026, a political subdivision may not issue
20 any bonds, notes, or warrants, or enter into any leases or
21 obligations to be paid from property tax revenue, or that include
22 a pledge to levy property taxes if other funds are insufficient.
23    (b) This section may not be construed to prohibit the refunding
24 or refinancing of obligations incurred before May 10, 2026.
25    SECTION 18. IC 6-1.1-39-0.2 IS ADDED TO THE INDIANA
26 CODE AS A NEW SECTION TO READ AS FOLLOWS
27 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. (a) Notwithstanding any
28 other law:
29      (1) no economic development district or allocation area may
30      be established, amended, or renewed; and
31      (2) no bonds, leases, or other obligations may be issued,
32      entered into, or extended for an economic development
33      district or allocation area;
34 under this chapter after May 9, 2026.
35    (b) This section may not be construed to prohibit the refunding
36 or refinancing of obligations incurred before May 10, 2026.
37    SECTION 19. IC 6-1.2 IS ADDED TO THE INDIANA CODE AS
38 A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE UPON
39 PASSAGE]:
40    ARTICLE 1.2. PROPERTY TAX REVENUE REPLACEMENT
41    Chapter 1. General Applicability and Definitions
42    Sec. 1. The definitions and rules of construction contained in
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1 IC 6-1.1-1 apply throughout this article unless the context clearly
2 requires otherwise.
3    Sec. 2. The definitions contained in this chapter apply
4 throughout this article unless the context clearly requires
5 otherwise.
6    Sec. 3. "ADM" has the meaning set forth in IC 20-43-1-6.
7    Sec. 4. "Allocation area" refers to an area that is established
8 under the authority of any of the following statutes and in which,
9 before January 1, 2028, property tax revenues are collected:
10      (1) IC 6-1.1-39.
11      (2) IC 8-22-3.5.
12      (3) IC 36-7-13.
13      (4) IC 36-7-14.
14      (5) IC 36-7-14.5.
15      (6) IC 36-7-15.1.
16      (7) IC 36-7-30.
17      (8) IC 36-7-30.5.
18      (9) IC 36-7-32.
19      (10) IC 36-7.5-4.5.
20      (11) Any other provision that authorizes the establishment of
21      an allocation area in which, before January 1, 2028, property
22      tax revenues are collected.
23    Sec. 5. "Fund" refers to the local revenue sharing fund
24 established by IC 6-1.2-3-2.
25    Sec. 6. "Governing body" means the following:
26      (1) For an allocation area created under IC 6-1.1-39, the fiscal
27      body (as defined in IC 36-1-2-6) of the county.
28      (2) For an allocation area created under IC 8-22-3.5, the
29      commission (as defined in IC 8-22-3.5-2).
30      (3) For an allocation area created under IC 36-7-13, the
31      county, city, or town.
32      (4) For an allocation area created under IC 36-7-14, the
33      redevelopment commission.
34      (5) For an allocation area created under IC 36-7-14.5, the
35      redevelopment authority.
36      (6) For an allocation area created under IC 36-7-15.1, the
37      metropolitan development commission.
38      (7) For an allocation area created under IC 36-7-30, the
39      military base reuse authority.
40      (8) For an allocation area created under IC 36-7-30.5, the
41      military base development authority.
42      (9) For an allocation area created under IC 36-7-32, the
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1redevelopment commission.
2(10) For an allocation area created under IC 36-7.5-4.5, the
3development authority.
4     Sec. 7. "Municipality" has the meaning set forth in IC 36-1-2-11.
5     Sec. 8. "Obligation" means an obligation to repay:
6(1) the principal and interest on bonds;
7(2) lease rentals on leases; or
8(3) any other contractual obligation;
9 payable from property tax increment revenues. The term includes
10 a guarantee of repayment from property tax increment revenues
11 if other revenues are insufficient to make a payment.
12     Chapter 2. Abolishment of Property Tax
13     Sec. 1. (a) Notwithstanding IC 6-1.1 or any other law to the
14 contrary, but subject to subsection (b), tangible property may not
15 be assessed after December 31, 2026, and property taxes on
16 tangible property may not be first imposed or first due after
17 December 31, 2027.
18     (b) Nothing in this article may be construed as limiting or
19 otherwise affecting:
20(1) the collection of any property taxes or penalties imposed;
21or
22(2) any property tax exemptions or property tax deductions
23allowed;
24 under IC 6-1.1 or any other law before January 1, 2028.
25     Sec. 2. If a provision of this article conflicts with any other law,
26 including IC 6-1.1, the provision in this article controls. A
27 provision contained in IC 6-1.1 is not applicable after the
28 abolishment of the imposition of property tax if the context clearly
29 renders the provision inapplicable.
30     Sec. 3. This article does not prohibit the assessment and levying
31 of a fee or payment otherwise authorized by law or the imposing of
32 a special assessment (including a ditch or drainage assessment,
33 Barrett Law assessment, improvement assessment, sewer
34 assessment, or sewage assessment) otherwise authorized by law to
35 be imposed on property to be benefited by an improvement.
36     Sec. 4. A pledge of property tax made before May 10, 2026, for
37 the payment of bonds, leases, or other expenditures shall be treated
38 as a pledge of the distributions from the fund under this article for
39 the same purpose. Notwithstanding the abolishment of the
40 imposition of property tax and the enactment of this article, any
41 pledge of revenues received from a tax imposed under IC 6-1.1
42 prior to the abolishment of the imposition of property tax to the
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                                   21
1 payment, in whole or in part, of:
2(1) the principal of and interest on bonds;
3(2) lease rentals due under a lease; and
4(3) the payment of any other obligation;
5 is binding and enforceable and remains in full force and effect as
6 long as the principal of and interest on any bonds, the lease rentals
7 due under any lease, or the payment of any obligation remains
8 unpaid. The enactment of this article does not affect any rights,
9 duties, obligations, proceedings, or liabilities accrued before
10 enactment of this article. Those rights, duties, obligations,
11 proceedings, or liabilities continue and shall be imposed and
12 enforced under prior law as if this article had not been enacted and
13 the imposition of property tax had not been abolished.
14     Sec. 5. For purposes of limitations on indebtedness of political
15 or municipal corporations imposed by Article 13, Section 1 of the
16 Constitution of the State of Indiana, to determine a taxing unit's
17 value of taxable property after the abolishment of the imposition
18 of property tax under this article, the most recent assessed value of
19 taxable property for the entire territory must be used to determine
20 the debt limit.
21     Chapter 3. Local Revenue Sharing Fund
22     Sec. 1. Not later than December 1, 2027, and each December 1
23 thereafter, each governing body shall file with the department of
24 local government finance and, if applicable, with the authorizing
25 unit's executive and fiscal body, a certified report setting out the
26 amount per month needed to:
27(1) make all payments that are due in the next calendar year
28on obligations incurred before May 10, 2026, and payable
29from property tax revenues in allocation areas; plus
30(2) maintain any revenue to obligation payment ratio required
31by an agreement on which any of the obligations are based.
32 The report must be filed in the manner prescribed by the
33 department of local government finance.
34     Sec. 2. (a) The local revenue sharing fund is established. The
35 purpose of the fund is to allocate and distribute to taxing units the
36 portion of all the state gross retail and use tax revenue attributable
37 to services for use as set forth in section 4 of this chapter. The fund
38 shall be administered by the department.
39     (b) The fund consists of the following:
40(1) Appropriations to the fund.
41(2) Amounts deposited in the fund under IC 6-2.5-10-1(e).
42(3) Interest and other earnings derived from investment of
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                                  22
1money in the fund.
2    (c) Money in the fund is continuously appropriated for the
3 purposes of this chapter.
4    (d) The money in the fund may not be used for the costs of
5 administering this chapter.
6    (e) Money in the fund at the end of a state fiscal year does not
7 revert to the state general fund.
8    Sec. 3. This section applies after December 31, 2027. Before the
9 last day of each month, the state comptroller shall allocate and the
10 treasurer of state shall distribute money in the fund to the fiscal
11 officer of each taxing unit according to the following:
12(1) The state comptroller shall first deposit in the local
13revenue sharing reserve account established by IC 6-1.2-6-1
14an amount equal to ten percent (10%) of the amount in the
15fund. However, if the treasurer of state determines under
16IC 6-1.2-6-3 that the balance of the local revenue sharing
17reserve account is sufficient to make an aggregate monthly
18distribution for each of the next twelve (12) months, the state
19comptroller shall not make a deposit under this subdivision in
20a month until the treasurer of state determines the balance of
21the local revenue sharing reserve account is no longer
22sufficient to make an aggregate monthly distribution for each
23of the next twelve (12) months.
24(2) After making the deposit under subdivision (1), the state
25comptroller shall distribute an amount equal to forty-five
26percent (45%) of the remaining amount in the fund according
27to the following formula:
28STEP ONE: In collaboration with the department of
29education, determine the:
30(i) number of students who received a choice scholarship
31and not more than fifty percent (50%) virtual instruction
32in the current school year; and
33(ii) number of students in item (i) who attended each
34eligible school in the current school year.
35STEP TWO: Add the:
36(i) total statewide current ADM of students who receive
37not more than fifty percent (50%) virtual instruction for
38all school corporations;
39(ii) total statewide current ADM of students who receive
40not more than fifty percent (50%) virtual instruction for
41all charter schools; plus
42(iii) number of students who received a choice
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                                    23
1scholarship and not more than fifty percent (50%)
2virtual instruction in the current school year.
3STEP THREE: Determine the:
4(i) amount that is equal to forty-five percent (45%) of the
5amount remaining in the fund; divided by
6(ii) STEP TWO result;
7to determine per student funding.
8STEP FOUR: Distribute to each school corporation,
9charter school, and eligible school:
10(i) the STEP THREE result; multiplied by
11(ii) the current ADM of students who receive not more
12than fifty percent (50%) virtual instruction for the
13school corporation, the current ADM of students who
14receive not more than fifty percent (50%) virtual
15instruction for the charter school, or the number of
16students who received a choice scholarship, did receive
17not more than fifty percent (50%) virtual instruction,
18and attended the eligible school in the current school
19year, as applicable.
20(3) After making the distributions under subdivisions (1) and
21(2), the state comptroller shall next distribute to each
22governing body the amount needed for the subsequent month
23as provided in the governing body's report for the calendar
24year submitted under section 1 of this chapter.
25(4) This subdivision does not apply to school corporations.
26After making the distributions under subdivisions (1), (2), and
27(3), the state comptroller shall distribute the remaining money
28in the fund to taxing units according to the following:
29STEP ONE: Determine, for each type of taxing unit the
30amount of that particular type of taxing unit's statewide
31average net levy for calendar years 2023, 2024, 2025, 2026,
32and 2027.
33STEP TWO: Determine the sum of all five (5) year average
34net levy results determined under STEP ONE for all types
35of taxing units.
36STEP THREE: For each type of taxing unit, determine:
37(i) the STEP ONE result for the type of taxing unit;
38divided by
39(ii) the STEP TWO result.
40STEP FOUR: To determine the aggregate allocation
41amount for each type of taxing unit, multiply:
42(i) the STEP THREE result for the type of taxing unit;
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1by
2(ii) the amount of money remaining in the fund after the
3distributions under subdivisions (1), (2), and (3).
4STEP FIVE: Of the aggregate allocation amount
5determined for counties under STEP FOUR, distribute:
6(i) seventy-five percent (75%) of the aggregate allocation
7amount among the counties proportionately based on the
8population of a particular county compared to all
9counties; and
10(ii) twenty-five percent (25%) of the aggregate allocation
11amount among the counties proportionately based on the
12total miles of county roads in a particular county
13compared to all counties.
14STEP SIX: Of the aggregate allocation amount determined
15for municipalities under STEP FOUR, distribute:
16(i) seventy-five percent (75%) of the aggregate allocation
17amount among the municipalities proportionately based
18on the population of a particular municipality compared
19to all municipalities; and
20(ii) twenty-five percent (25%) of the aggregate allocation
21amount among the municipalities proportionately based
22on the total miles of municipality roads in a particular
23municipality compared to all municipalities.
24STEP SEVEN: Of the aggregate allocation amount
25determined under STEP FOUR for libraries, distribute a
26proportionate amount to each library based on the
27population of the particular library compared to all
28libraries.
29STEP EIGHT: Of the aggregate allocation amount
30determined under STEP FOUR for townships and fire
31protection territories for which a township is the provider
32unit, distribute a proportionate amount to the county
33auditor in which the township is located based on the
34population of the particular township compared to all
35townships. The county council in the county in which the
36township is located shall determine how to allocate the
37money among the townships in the county. In determining
38how to allocate the money, the county council may consider
39whether one (1) or more townships located in the county
40will merge with any other township in the county.
41STEP NINE: For all other taxing unit types, respectively,
42distribute a proportionate amount to each taxing unit type
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1based on the particular taxing unit type's average net levy
2for calendar years 2023, 2024, 2025, 2026, and 2027
3compared to the average net levy for 2023, 2024, 2025,
42026, and 2027 of all taxing units by type set to receive a
5distribution under this subdivision.
6 If the state comptroller determines that the balance of the fund is
7 insufficient in any month to make an aggregate distribution under
8 this section that is equal to the aggregate distribution in the
9 previous month, money in the local revenue sharing reserve
10 account established by IC 6-1.2-6-1 shall be used to make up any
11 shortfall amount.
12     Sec. 4. (a) Money distributed under section 3(2) and 3(4) of this
13 chapter must first be used by the respective taxing unit for the
14 payment of any outstanding bonds, leases, or other expenditures
15 for which any property tax revenues were pledged prior to the
16 abolishment of the imposition of property tax under this article.
17     (b) After a taxing unit makes any required payments described
18 in subsection (a), money distributed under section 3(2) and 3(4) of
19 this chapter may be used for any legal purposes of the taxing unit.
20     Sec. 5. (a) Taxing units are required to fully fund the payment
21 of their debt obligations in an amount sufficient to pay any debt
22 service or lease rentals on outstanding obligations, regardless of
23 any reduction in property tax collections due to the abolishment of
24 the imposition of property tax under this article.
25     (b) Upon the failure of a taxing unit to pay any of the taxing
26 unit's debt service obligations during a calendar year when due,
27 the treasurer of state, upon being notified of the failure by a
28 claimant, shall pay the unpaid debt service obligations that are due
29 from money in the possession of the state that would otherwise be
30 available for distribution to the taxing unit under any other law,
31 deducting the payment from the amount distributed. A deduction
32 under this subsection must be made:
33(1) first from local income tax distributions under IC 6-3.6;
34and
35(2) second from any other undistributed funds of the taxing
36unit in the possession of the state.
37     (c) If a taxing unit or governing body receives insufficient funds
38 from distributions under section 3 of this chapter and any
39 interception under subsection (b) to make a required payment on
40 any outstanding bonds, leases, or other expenditures for which any
41 property tax revenues were pledged prior to the abolishment of the
42 imposition of property tax under this article, the state comptroller
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                                  26
1 shall supplement the taxing unit's or governing body's distribution
2 using money from the state general fund in an amount that, when
3 combined with the distribution from the fund to the taxing unit or
4 governing body, does not exceed the amount needed to make the
5 required payment.
6    (d) This section shall be interpreted liberally so that the state
7 shall, to the extent legally valid, ensure that the debt service
8 obligations of each political subdivision are paid when due.
9 However, this section does not create a debt of the state.
10    Chapter 4. School Corporation Referenda Funding
11    Sec. 1. This chapter applies only:
12      (1) to a school corporation that imposed:
13(A) a controlled project referendum tax levy under
14IC 6-1.1-20;
15(B) an operating referendum tax levy under IC 20-46-1; or
16(C) a school safety referendum tax levy under IC 20-46-9;
17      that was approved by the voters of the school corporation
18      before May 10, 2026; and
19      (2) beginning in calendar year 2028, and in each calendar year
20      thereafter, until the expiration of the tax levy described in
21      subdivision (1) as set out when approved by the voters of the
22      school corporation.
23    Sec. 2. Each owner of a parcel located in a school corporation's
24 territory is liable for an annual fee to replace the loss of revenue
25 previously collected by the school corporation from the imposition
26 of a controlled project referendum tax levy, an operating
27 referendum tax levy, or a school safety referendum tax levy prior
28 to the abolishment of the imposition of property tax under this
29 article.
30    Sec. 3. (a) The county treasurer shall mail to the owner of each
31 parcel located in a school corporation's territory a statement in the
32 form required under subsection (b).
33    (b) The department of local government finance shall prescribe
34 a form, subject to the approval of the state board of accounts, for
35 the statement under subsection (a) that includes at least the
36 following:
37      (1) The total amount owed for the parcel for the year.
38      (2) Information designed to show the manner in which the fee
39      is to be used.
40    (c) The county treasurer shall mail or transmit the statement
41 one (1) time each year on or before April 15. The statement must
42 contain the dates on which the first and second installments are
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1 due and denote the amount of money to be paid for each
2 installment.
3     (d) All payments under this chapter shall be made to the county
4 treasurer. The county treasurer, when authorized by the board of
5 county commissioners, may open temporary offices for the
6 collection of fees in cities and towns in the county other than the
7 county seat.
8     (e) The school corporation, county treasurer, and county
9 auditor shall cooperate to generate the information to be included
10 in the statement under subsection (b).
11     (f) The information to be included in the statement under
12 subsection (b) must be simply and clearly presented and
13 understandable to the average individual.
14     Sec. 4. An annual fee due under this chapter is due in two (2)
15 equal installments on May 10 and November 10 of the calendar
16 year in the total amount determined in STEP THREE of the
17 following formula:
18STEP ONE: Determine the total amount received by the
19school corporation from property tax revenue for the
20controlled project referendum, operating referendum, or
21school safety referendum, or referenda, as applicable, in
22calendar year 2027.
23STEP TWO: Multiply the STEP ONE result by the net
24assessed value for property taxes first due and payable in
252027 for each property.
26STEP THREE: Divide the STEP TWO result by the net
27assessed value for property taxes first due and payable in
282027 of all tangible property.
29     Chapter 5. Procedures for Fixing and Reviewing Budgets
30     Sec. 1. This chapter applies in calendar year 2027 and each
31 calendar year thereafter.
32     Sec. 2. Before June 15 of each year, the fiscal officer of each
33 political subdivision shall provide the department of local
34 government finance with an estimate of the total amount of the
35 political subdivision's debt service obligations (as defined in
36 IC 6-1.1-20.6-9.8) that will be due in the last six (6) months of the
37 current year and in the ensuing year.
38     Sec. 3. (a) When formulating an annual budget estimate, the
39 proper officers of a political subdivision shall prepare an estimate
40 of the amount of revenue which the political subdivision will
41 receive from the state for and during the budget year for which the
42 budget is being formulated. However, this section does not apply
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1 to funds to be received from the state or the federal government
2 for:
3      (1) township assistance;
4      (2) unemployment relief;
5      (3) old age pensions; or
6      (4) other funds which may at any time be made available
7      under "The Economic Security Act" or under any other
8      federal act which provides for civil and public works projects.
9    (b) When formulating an annual budget estimate, the proper
10 officers of a political subdivision shall prepare an estimate of the
11 amount of revenue that the political subdivision will receive under
12 a development agreement (as defined in IC 36-1-8-9.5) for and
13 during the budget year for which the budget is being formulated.
14    Sec. 4. (a) The proper officers of a political subdivision shall
15 formulate its estimated budget and expected revenue on the form
16 prescribed by the department of local government finance and
17 approved by the state board of accounts. In formulating a political
18 subdivision's estimated budget under this section, the proper
19 officers of the political subdivision must consider the distributions
20 from the fund that will be collected by the political subdivision
21 during the ensuing year, after taking into account the estimate of
22 miscellaneous revenue that the political subdivision will receive in
23 the ensuing year, and after taking into account all payments for
24 debt service obligations that are to be made by the political
25 subdivision during the ensuing year. The political subdivision shall
26 submit the following information to the department's computer
27 gateway:
28      (1) The estimated budget, including estimated expenditures
29      and revenue from all sources.
30      (2) The time and place at which the political subdivision or
31      appropriate fiscal body will hold a public hearing on the items
32      described in subdivision (1).
33      (3) The time and place at which the political subdivision or
34      appropriate fiscal body will meet to fix the budget under
35      section 5 of this chapter.
36      (4) The date, time, and place of the final adoption of the
37      budget under section 5 of this chapter.
38 Except as provided in section 9(b) of this chapter, the political
39 subdivision or appropriate fiscal body shall submit this
40 information to the department's computer gateway at least ten (10)
41 days before the public hearing required by this subsection in the
42 manner prescribed by the department. If the date, time, or place of
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1 the final adoption subsequently changes, the political subdivision
2 shall update the information submitted to the department's
3 computer gateway. The department shall make this information
4 available to taxpayers, at least ten (10) days before the public
5 hearing, through its computer gateway and provide a telephone
6 number through which taxpayers may request mailed copies of a
7 political subdivision's information under this subsection. The
8 department's computer gateway must allow a taxpayer to search
9 for the information under this subsection by the taxpayer's
10 address. The department shall review only the submission to the
11 department's computer gateway for compliance with this section.
12    (b) The board of directors of a solid waste management district
13 established under IC 13-21 or IC 13-9.5-2 (before its repeal) may
14 conduct the public hearing required under subsection (a):
15(1) in any county of the solid waste management district; and
16(2) in accordance with the annual notice of meetings published
17under IC 13-21-5-2.
18    (c) If a political subdivision or appropriate fiscal body timely
19 submits the information under subsection (a) but subsequently
20 discovers the information contains an error, the political
21 subdivision or appropriate fiscal body may submit amended
22 information to the department's computer gateway. However,
23 submission of an amendment to information described in
24 subsection (a)(1) must occur at least ten (10) days before the public
25 hearing held under subsection (a), and submission of an
26 amendment to information described in subsection (a)(3) must
27 occur at least twenty-four (24) hours before the time in which the
28 meeting to fix the budget, tax rate, and levy was originally
29 advertised to commence.
30    Sec. 5. (a) Not later than November 1 each year, the officers of
31 political subdivisions shall meet each year to fix the budget of their
32 respective political subdivisions for the ensuing budget year.
33 Except in a consolidated city and county and in a second class city,
34 the public hearing required by section 4 of this chapter must be
35 completed at least ten (10) days before the proper officers of the
36 political subdivision meet to fix the budget. In a consolidated city
37 and county and in a second class city, that public hearing, by any
38 committee or by the entire fiscal body, may be held at any time
39 after introduction of the budget.
40    (b) Ten (10) or more taxpayers may object to a budget of a
41 political subdivision fixed under subsection (a) by filing an
42 objection petition with the proper officers of the political
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                                   30
1 subdivision not more than seven (7) days after the hearing. The
2 objection petition must specifically identify the provisions of the
3 budget to which the taxpayers object.
4     (c) If a petition is filed under subsection (b), the fiscal body of
5 the political subdivision shall adopt with its budget a finding
6 concerning the objections in the petition and any testimony
7 presented at the adoption hearing.
8     (d) A political subdivision shall file the budget adopted by the
9 political subdivision with the department of local government
10 finance not later than five (5) business days after the budget is
11 adopted under subsection (a). The filing with the department of
12 local government finance must be in a manner prescribed by the
13 department.
14     (e) In a consolidated city and county and in a second class city,
15 the clerk of the fiscal body shall, notwithstanding subsection (d),
16 file the adopted budget and tax ordinances with the department of
17 local government finance within five (5) business days after the
18 ordinances are signed by the executive, or within five (5) business
19 days after action is taken by the fiscal body to override a veto of
20 the ordinances, whichever is later.
21     (f) If a fiscal body does not fix the budget of the political
22 subdivisions for the ensuing budget year as required under this
23 section, the most recent annual appropriations are continued for
24 the ensuing budget year.
25     (g) When fixing a budget under subsection (a), the political
26 subdivision shall indicate on its adopting document, in the manner
27 prescribed by the department, whether the political subdivision
28 intends to issue debt after December 1 of the year preceding the
29 budget year.
30     Sec. 6. If an ordinance to fix a city budget is:
31(1) vetoed by the city executive under IC 36-4-6-16(a)(2); or
32(2) considered vetoed under IC 36-4-6-16(b);
33 and the veto is effective on a date later than October 1, the city's
34 legislative body has thirty (30) days from the effective date of the
35 veto to override the veto in accordance with IC 36-4-6-16(c) to fix
36 the budget for the ensuing budget year.
37     Sec. 7. A school corporation shall specify in its proposed budget
38 the anticipated amount that will be transferred from the total
39 revenue deposited in the school corporation's education fund to its
40 operations fund during the next calendar year. At its public
41 hearing to adopt a budget under this chapter, the school
42 corporation shall acknowledge whether the school corporation's
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1 anticipated transfer amount will be more than fifteen percent
2 (15%) of the total revenue deposited in the school corporation's
3 education fund to its operations fund during the next calendar
4 year.
5     Sec. 8. (a) Not later than March 2 of each year, the executive of
6 a political subdivision shall submit a statement to the department
7 of local government finance attesting that the political subdivision
8 uploaded any contract entered into during the immediately
9 preceding year related to the provision of fire services or
10 emergency medical services to the Indiana transparency website as
11 required by IC 5-14-3.8-3.5(d).
12     (b) The department of local government finance may not
13 approve the budget of a political subdivision or a supplemental
14 appropriation for a political subdivision until the political
15 subdivision files the attestation under subsection (a).
16     Sec. 9. (a) Each school corporation may elect to adopt a budget
17 under this section that applies from July 1 of the year through June
18 30 of the following year. In the initial budget adopted by a school
19 corporation under this section, the first six (6) months of that
20 initial budget must be consistent with the last six (6) months of the
21 budget adopted by the school corporation for the calendar year in
22 which the school corporation elects by resolution to begin adopting
23 budgets that correspond to the state fiscal year. A corporation shall
24 submit a copy of the resolution to the department of local
25 government finance and the department of education not more
26 than thirty (30) days after the date the governing body adopts the
27 resolution.
28     (b) Before April 1 of each year, the officers of the school
29 corporation shall meet to fix the budget for the school corporation
30 for the ensuing budget year, with notice given by the same officers.
31 The school corporation shall submit the information described in
32 section 4(a) of this chapter to the department's computer gateway
33 at least ten (10) days before the meeting required by this subsection
34 in the manner prescribed by the department. The department shall
35 make this information available to taxpayers at least ten (10) days
36 before the public hearing through its computer gateway, and
37 provide a telephone number through which taxpayers may request
38 mailed copies of a political subdivision's information under this
39 subsection. However, if a resolution adopted under subsection (d)
40 is in effect, the officers shall meet to fix the budget for the ensuing
41 budget year before November 1. A school corporation that adopts
42 a resolution under subsection (d) shall submit the information
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                                   32
1 described in section 4(a) of this chapter in the manner prescribed
2 by that section.
3     (c) A school corporation that adopts a budget as provided in this
4 section shall file the budget adopted by the school corporation with
5 the department of local government finance not later than five (5)
6 business days after the budget is adopted under subsection (b). The
7 filing with the department of local government finance must be in
8 a manner prescribed by the department.
9     (d) The governing body of the school corporation may adopt a
10 resolution to cease using a school year budget year and return to
11 using a calendar year budget year. A resolution adopted under this
12 subsection must be adopted after January 1 and before July 1. The
13 school corporation's initial calendar year budget year following the
14 adoption of a resolution under this subsection begins on January
15 1 of the year following the year the resolution is adopted. The first
16 six (6) months of the initial calendar year budget for the school
17 corporation must be consistent with the last six (6) months of the
18 final school year budget fixed by the department of local
19 government finance before the adoption of a resolution under this
20 subsection.
21     (e) A resolution adopted under subsection (d) may be rescinded
22 by a subsequent resolution adopted by the governing body. If the
23 governing body of the school corporation rescinds a resolution
24 adopted under subsection (d) and returns to a school year budget
25 year, the school corporation's initial school year budget year
26 begins on July 1 following the adoption of the rescinding resolution
27 and ends on June 30 of the following year. The first six (6) months
28 of the initial school year budget for the school corporation must be
29 consistent with the last six (6) months of the last calendar year
30 budget fixed by the department of local government finance before
31 the adoption of a rescinding resolution under this subsection.
32     Sec. 10. If the boundaries of a political subdivision cross one (1)
33 or more county lines, the budget, tax levy, and tax rate fixed by the
34 political subdivision shall be filed with the county auditor of each
35 affected county in the manner prescribed in section 5 or 9 of this
36 chapter.
37     Chapter 6. Local Revenue Sharing Reserve Account
38     Sec. 1. (a) The local revenue sharing reserve account is
39 established for the purpose of ensuring sufficient distributions of
40 revenue from the fund in times of economic downturn.
41     (b) The treasurer of state shall administer the account.
42     (c) The account consists of:
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1(1) deposits in the account under IC 6-1.2-3-3; and
2(2) interest earned on the balance of the account.
3     (d) Money in the account at the end of a state fiscal year does
4 not revert to the state general fund.
5     (e) The treasurer of state shall invest the money in the account
6 not currently needed to meet the obligations of the account in the
7 same manner as other public money may be invested. Interest that
8 accrues from these investments shall be deposited in the account.
9     Sec. 2. (a) Each month, the state comptroller shall inform the
10 state treasurer of the total amount of money distributed under
11 IC 6-1.2-3-3(2) through IC 6-1.2-3-3(4) in the previous month.
12     (b) The treasurer of state shall determine whether the balance
13 of the account is sufficient to make an aggregate monthly
14 distribution under IC 6-1.2-3-3(2) through IC 6-1.2-3-3(4) for:
15(1) each of the next six (6) months; and
16(2) each of the next twelve (12) months;
17 in the amount reported by the state comptroller under subsection
18 (a).
19     Sec. 3. (a) If at any time the treasurer of state determines that
20 the balance of the account is sufficient to make an aggregate
21 monthly distribution for each of the next twelve (12) months in the
22 amount reported by the state comptroller under section 2 of this
23 chapter, the treasurer of state shall inform the state comptroller
24 and the state department of revenue.
25     (b) After making a determination described in subsection (a), if
26 the treasurer of state subsequently determines that the balance of
27 the account is no longer sufficient to make an aggregate monthly
28 distribution under IC 6-1.2-3-3(2) through IC 6-1.2-3-3(4) for:
29(1) each of the next six (6) months; or
30(2) each of the next twelve (12) months;
31 the treasurer of state shall inform the state comptroller and the
32 department of state revenue.
33     SECTION 20. IC 6-2.5-1-1, AS AMENDED BY P.L.146-2020,
34 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2027]: Sec. 1. (a) Except as provided in subsection (b) or (c),
36 "unitary transaction" includes all items of personal property and
37 services which are furnished under a single order or agreement and for
38 which a total combined charge or price is calculated.
39     (b) "Unitary transaction" does not include a transaction that meets
40 one (1) of the exceptions exception in section 11.5(d) 11.5(c) of this
41 chapter.
42     (c) "Unitary transaction" as it applies to the furnishing of public
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1 utility commodities or services means the public utility commodities
2 and services which are invoiced in a single bill or statement for
3 payment by the consumer.
4     SECTION 21. IC 6-2.5-1-5, AS AMENDED BY P.L.205-2025,
5 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2027]: Sec. 5. (a) Except as provided in subsection (b), "gross
7 retail income" means the total amount of consideration, including cash,
8 credit, property, and services, for which tangible personal property or
9 a service is sold, leased, or rented, valued in money, whether received
10 in money or otherwise, without any deduction for:
11(1) the seller's cost of the property sold;
12(2) the cost of materials used, labor or service cost, interest,
13losses, all costs of transportation to the seller, all taxes imposed
14on the seller, and any other expense of the seller;
15(3) charges by the seller for any services necessary to complete
16the sale; other than delivery and installation charges;
17(4) delivery charges; or
18(5) consideration received by the seller from a third party if:
19(A) the seller actually receives consideration from a party
20other than the purchaser and the consideration is directly
21related to a price reduction or discount on the sale;
22(B) the seller has an obligation to pass the price reduction or
23discount through to the purchaser;
24(C) the amount of the consideration attributable to the sale is
25fixed and determinable by the seller at the time of the sale of
26the item to the purchaser; and
27(D) the price reduction or discount is identified as a third party
28price reduction or discount on the invoice received by the
29purchaser or on a coupon, certificate, or other documentation
30presented by the purchaser.
31 For purposes of subdivision (4), delivery charges are charges by the
32 seller for preparation and delivery of the property to a location
33 designated by the purchaser of property, including but not limited to
34 transportation, shipping, postage charges that are not separately stated
35 on the invoice, bill of sale, or similar document, handling, crating, and
36 packing. Delivery charges do not include postage charges that are
37 separately stated on the invoice, bill of sale, or similar document.
38     (b) "Gross retail income" does not include that part of the gross
39 receipts attributable to:
40(1) the value of any tangible personal property received in a like
41kind exchange in the retail transaction, if the value of the property
42given in exchange is separately stated on the invoice, bill of sale,
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                                   35
1     or similar document given to the purchaser;
2     (2) the receipts received in a retail transaction which constitute
3     interest or finance charges or insurance premiums on either a
4     promissory note or an installment sales contract;
5     (3) discounts, including cash, terms, or coupons that are not
6     reimbursed by a third party that are allowed by a seller and taken
7     by a purchaser on a sale;
8     (4) interest, financing, and carrying charges from credit extended
9     on the sale of personal property or services if the amount is
10     separately stated on the invoice, bill of sale, or similar document
11     given to the purchaser;
12     (5) any taxes legally imposed directly on the consumer that are
13     separately stated on the invoice, bill of sale, or similar document
14     given to the purchaser, including an excise tax imposed under
15     IC 6-6-15;
16     (6) installation charges that are separately stated on the invoice,
17     bill of sale, or similar document given to the purchaser;
18     (7) (6) telecommunications nonrecurring charges; or
19     (8) (7) postage charges that are separately stated on the invoice,
20     bill of sale, or similar document. or
21     (9) charges for serving or delivering food and food ingredients
22     furnished, prepared, or served for consumption at a location, or on
23     equipment, provided by the retail merchant, to the extent that the
24     charges for the serving or delivery are stated separately from the
25     price of the food and food ingredients when the purchaser pays
26     the charges.
27   (c) Notwithstanding subsection (b)(5):
28     (1) in the case of retail sales of special fuel (as defined in
29     IC 6-6-2.5-22) or kerosene (as defined in IC 16-44-2-2), the gross
30     retail income is the total sales price of the special fuel or kerosene
31     minus the part of that price attributable to tax imposed under
32     IC 6-6-2.5 (in the case of special fuel) or Section 4041 or Section
33     4081 of the Internal Revenue Code (in the case of either special
34     fuel or kerosene);
35     (2) in the case of retail sales of cigarettes (as defined in
36     IC 6-7-1-2), the gross retail income is the total sales price of the
37     cigarettes including the tax imposed under IC 6-7-1; and
38     (3) in the case of retail sales of consumable material (as defined
39     in IC 6-7-4-2), vapor products (as defined in IC 6-7-4-8), and
40     closed system cartridges (as defined in IC 6-7-2-0.5) under the
41     closed system cartridge tax, the gross retail income received from
42     selling at retail is the total sales price of the consumable material
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                                    36
1(as defined in IC 6-7-4-2), vapor products (as defined in
2IC 6-7-4-8), and closed system cartridges (as defined in
3IC 6-7-2-0.5) including the tax imposed under IC 6-7-4 and
4IC 6-7-2-7.5.
5    (d) Gross retail income is only taxable under this article to the
6 extent that the income represents
7(1) the price of the property transferred without the rendition of
8any or the services and
9(2) except as provided in subsection (b), any bona fide charges
10which are made for preparation, fabrication, alteration,
11modification, finishing, completion, delivery, or other service
12performed in respect to the property transferred before its transfer
13and which are separately stated on the transferor's records. For
14purposes of this subdivision, a transfer is considered to have
15occurred after the delivery of the property to the purchaser.
16performed by the seller, or both.
17    (e) A public utility's or a power subsidiary's gross retail income
18 includes all gross retail income received by the public utility or power
19 subsidiary, including any minimum charge, flat charge, membership
20 fee, or any other form of charge or billing.
21    SECTION 22. IC 6-2.5-1-11.5, AS AMENDED BY P.L.146-2020,
22 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2027]: Sec. 11.5. (a) This section applies to retail transactions
24 occurring after December 31, 2007.
25    (b) (a) "Bundled transaction" means a retail sale of two (2) or more
26 products or services, except real property and services to real property,
27 that are:
28(1) distinct;
29(2) identifiable; and
30(3) sold for one (1) nonitemized price.
31    (c) (b) The term does not include a retail sale in which the sales
32 price of a product or a service varies, or is negotiable, based on other
33 products or services that the purchaser selects for inclusion in the
34 transaction.
35    (d) (c) The term does not include a retail sale that:
36(1) is comprised of:
37(A) a service that is the true object of the transaction; and
38(B) tangible personal property that:
39(i) is essential to the use of the service; and
40(ii) is provided exclusively in connection with the service;
41(2) (1) includes both taxable and nontaxable products or services
42in which:
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1(A) the seller's purchase price; or
2(B) the sales price;
3      of the taxable products or services does not exceed ten percent
4      (10%) of the total purchase price or the total sales price of the
5      bundled products; or
6      (3) (2) includes both exempt tangible personal property and
7      taxable tangible personal property:
8(A) any of which is classified as:
9(i) food and food ingredients;
10(ii) drugs;
11(iii) durable medical equipment;
12(iv) mobility enhancing equipment;
13(v) over-the-counter drugs;
14(vi) prosthetic devices; or
15(vii) medical supplies; and
16(B) for which:
17(i) the seller's purchase price; or
18(ii) the sales price;
19of the taxable tangible personal property is fifty percent (50%)
20or less of the total purchase price or the total sales price of the
21bundled tangible personal property.
22      The determination under clause (B) must be made on the basis of
23      either individual item purchase prices or individual item sale
24      prices.
25    (e) (d) A transaction that meets one (1) of the exceptions in
26 subsection (d) (c) shall be excluded from the definition of unitary
27 transaction under section 1(a) of this chapter.
28    SECTION 23. IC 6-2.5-1-22.1 IS ADDED TO THE INDIANA
29 CODE AS A NEW SECTION TO READ AS FOLLOWS
30 [EFFECTIVE JULY 1, 2027]: Sec. 22.1. "NAICS code" refers to the
31 code used to classify a particular industry in the current edition of
32 the North American Industry Classification System Manual -
33 United States, published by the National Technical Information
34 Service of the United States Department of Commerce.
35    SECTION 24. IC 6-2.5-1-25.7 IS ADDED TO THE INDIANA
36 CODE AS A NEW SECTION TO READ AS FOLLOWS
37 [EFFECTIVE JULY 1, 2027]: Sec. 25.7. (a) "Service" means any
38 activity engaged in for another person for consideration.
39    (b) The term does not include either of the following:
40      (1) A service rendered by an employee for the employee's
41      employer.
42      (2) A lease or rental of residential real property for a period
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1of more than thirty (30) days.
2    SECTION 25. IC 6-2.5-2-1, AS AMENDED BY P.L.118-2024,
3 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 JULY 1, 2027]: Sec. 1. (a) An excise tax, known as the state gross
5 retail tax, is imposed on retail transactions made in Indiana.
6    (b) The person who acquires property or receives a service in a
7 retail transaction is liable for the tax on the transaction and, except as
8 otherwise provided in this chapter, shall pay the tax to the retail
9 merchant as a separate added amount to the consideration in the
10 transaction. A retail merchant that has either physical presence in
11 Indiana as described in subsection (c) or that meets the threshold in
12 subsection (d) shall collect the tax as agent for the state.
13    (c) A retail merchant has physical presence in Indiana when the
14 retail merchant:
15(1) maintains an office, place of distribution, sales location,
16sample location, warehouse, storage place, or other place of
17business which is located in Indiana and which the retail
18merchant maintains, occupies, or uses, either permanently or
19temporarily, either directly or indirectly, and either by the retail
20merchant or through a representative, agent, or subsidiary;
21(2) maintains a representative, agent, salesperson, canvasser, or
22solicitor who, while operating in Indiana under the authority of
23and on behalf of the retail merchant or a subsidiary of the retail
24merchant, sells, delivers, installs, repairs, assembles, sets up,
25accepts returns of, bills, invoices, or takes orders for sales of
26tangible personal property or services to be used, stored, or
27consumed in Indiana; or
28(3) is otherwise required to register as a retail merchant under
29IC 6-2.5-8-1.
30    (d) A retail merchant that does not have a physical presence in
31 Indiana shall, as an agent for the state, collect the gross retail tax on a
32 retail transaction made in Indiana, remit the gross retail tax as provided
33 in this article, and comply with all applicable procedures and
34 requirements of this article as if the retail merchant has a physical
35 presence in Indiana, if the retail merchant's gross revenue from any
36 combination of:
37(1) the sale of tangible personal property that is delivered into
38Indiana;
39(2) a product transferred electronically into Indiana; or
40(3) a service delivered in Indiana;
41 exceeds one hundred thousand dollars ($100,000) for the calendar year
42 in which the retail transaction is made or for the calendar year
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1 preceding the calendar year in which the retail transaction is made.
2    (e) A marketplace facilitator must include both transactions made
3 on its own behalf and transactions facilitated for sellers under
4 IC 6-2.5-4-18 for purposes of establishing the requirement to collect
5 gross retail tax without having a physical presence in Indiana for
6 purposes of subsection (d). In addition, except in instances where the
7 marketplace facilitator has not met the threshold in subsection (d), the
8 transactions of the seller made through the marketplace are not counted
9 toward the seller for purposes of determining whether the seller has
10 met the threshold in subsection (d).
11    SECTION 26. IC 6-2.5-2-2, AS AMENDED BY P.L.146-2020,
12 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2027]: Sec. 2. (a) Except as provided in subsection (d), the
14 state gross retail tax is measured by the gross retail income received by
15 a retail merchant in a retail unitary or bundled transaction and is
16 imposed at seven percent (7%) of that gross retail income.
17    (b) If the tax computed under subsection (a) carried to the third
18 decimal place results in the numeral in the third decimal place being
19 greater than four (4), the amount of the tax shall be rounded to the next
20 additional cent.
21    (c) A seller may elect to round the tax under subsection (b) on a
22 transaction on an item basis or an invoice basis. However, a seller may
23 not round the tax under subsection (b) to circumvent the tax that would
24 otherwise be imposed on a transaction using an invoice basis.
25    (d) If the treasurer of state determines under IC 6-1.2-6-3 at any
26 time that the balance of the local revenue sharing reserve account
27 established by IC 6-1.2-6-1 is sufficient to make an aggregate
28 monthly distribution under IC 6-1.2-3-3(2) through IC 6-1.2-3-3(4)
29 for each of the next twelve (12) months, the state gross retail tax
30 imposed on the gross retail income of a service is imposed at six
31 and seventy-five hundredths percent (6.75%). However, after a
32 decrease in the tax rate under this subsection, if the treasurer of
33 state subsequently determines the balance of the local revenue
34 sharing reserve account is no longer sufficient to make an
35 aggregate monthly distribution under IC 6-1.2-3-3(2) through
36 IC 6-1.2-3-3(4) for each of the next six (6) months, the state gross
37 retail tax imposed on the gross retail income of a service is imposed
38 at seven percent (7%).
39    SECTION 27. IC 6-2.5-3-1, AS AMENDED BY P.L.146-2020,
40 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2027]: Sec. 1. For purposes of this chapter:
42    (a) "Use" means either of the following:
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1(1) The exercise of any right or power of ownership over tangible
2personal property.
3(2) The employment of a service for its intended purpose.
4     (b) "Storage" means the keeping or retention of tangible personal
5 property in Indiana for any purpose except temporary storage.
6     (c) "Temporary storage" means the keeping or retention of tangible
7 personal property in Indiana for a period of not more than one hundred
8 eighty (180) days and only for the purpose of the subsequent use of that
9 property solely outside Indiana.
10     (d) Notwithstanding any other provision of this section, tangible or
11 intangible property that is:
12(1) owned or leased by a person that has contracted with a
13commercial printer for printing; and
14(2) located at the premises of the commercial printer;
15 shall not be considered to be, or to create, an office, a place of
16 distribution, a sales location, a sample location, a warehouse, a storage
17 place, or other place of business maintained, occupied, or used in any
18 way by the person. A commercial printer with which a person has
19 contracted for printing shall not be considered to be in any way a
20 representative, an agent, a salesman, a canvasser, or a solicitor for the
21 person.
22     SECTION 28. IC 6-2.5-3-2, AS AMENDED BY P.L.181-2016,
23 SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2027]: Sec. 2. (a) An excise tax, known as the use tax, is
25 imposed on the storage, use, or consumption of tangible personal
26 property or the use of a service in Indiana if the property or service
27 was acquired in a retail transaction, regardless of the location of that
28 transaction or of the retail merchant making that transaction.
29     (b) The use tax is also imposed on the storage, use, or consumption
30 of a vehicle, an aircraft, or a watercraft, if the vehicle, aircraft, or
31 watercraft:
32(1) is acquired in a transaction that is an isolated or occasional
33sale; and
34(2) is required to be titled, licensed, or registered by this state for
35use in Indiana.
36     (c) The use tax is imposed on a contractor's conversion of
37 construction material into real property if that construction material
38 was purchased by the contractor. However, the use tax does not apply
39 to conversions of construction material described in this subsection, if:
40(1) the state gross retail or use tax has been previously imposed
41on the contractor's acquisition or use of that construction material;
42(2) the person for whom the construction material is being
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1converted could have purchased the material exempt from the
2state gross retail and use taxes, as evidenced by a properly issued
3exemption certificate, if that person had directly purchased the
4construction material from a retail merchant in a retail
5transaction; or
6(3) the conversion of the construction material into real property
7is governed by a time and material contract as described in
8IC 6-2.5-4-9(b).
9     (d) The use tax is imposed on a person who:
10(1) manufactures, fabricates, or assembles tangible personal
11property from materials either within or outside Indiana; and
12(2) uses, stores, distributes, or consumes tangible personal
13property in Indiana.
14     (e) Notwithstanding any other provision of this section, the use tax
15 is not imposed on the keeping, retaining, or exercising of any right or
16 power over tangible personal property, if:
17(1) the property is delivered into Indiana by or for the purchaser
18of the property;
19(2) the property is delivered in Indiana for the sole purpose of
20being processed, printed, fabricated, or manufactured into,
21attached to, or incorporated into other tangible personal property;
22and
23(3) the property is subsequently transported out of state for use
24solely outside Indiana.
25     (f) As used in subsection (g) and IC 6-2.5-5-42:
26(1) "completion work" means the addition of tangible personal
27property to or reconfiguration of the interior of an aircraft, if the
28work requires the issuance of an airworthiness certificate from
29the:
30(A) Federal Aviation Administration; or
31(B) equivalent foreign regulatory authority;
32due to the change in the type certification basis of the aircraft
33resulting from the addition to or reconfiguration of the interior of
34the aircraft;
35(2) "delivery" means the physical delivery of the aircraft
36regardless of who holds title; and
37(3) "prepurchase evaluation" means an examination of an aircraft
38by a potential purchaser for the purpose of obtaining information
39relevant to the potential purchase of the aircraft.
40     (g) Notwithstanding any other provision of this section, the use tax
41 is not imposed on the keeping, retaining, or exercising of any right or
42 power over an aircraft, if:
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1(1) the aircraft is or will be titled, registered, or based (as defined
2in IC 6-6-6.5-1(m)) in another state or country;
3(2) the aircraft is delivered to Indiana by or for a nonresident
4owner or purchaser of the aircraft;
5(3) the aircraft is delivered to Indiana for the sole purpose of
6being repaired, refurbished, remanufactured, or subjected to
7completion work or a prepurchase evaluation; and
8(4) after completion of the repair, refurbishment, remanufacture,
9completion work, or prepurchase evaluation, the aircraft is
10transported to a destination outside Indiana.
11    (h) The amendments made to this section by P.L.153-2012 shall be
12 interpreted to specify and not to change the general assembly's intent
13 with respect to this section.
14    SECTION 29. IC 6-2.5-3-4, AS AMENDED BY P.L.137-2022,
15 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2026]: Sec. 4. (a) The storage, use, and consumption of
17 tangible personal property or the use of a service in Indiana is exempt
18 from the use tax if:
19(1) the property or service was acquired in a retail transaction and
20the state gross retail tax has been paid on the acquisition of that
21property or service; or
22(2) the property or service was acquired in a transaction that is
23wholly or partially exempt from the state gross retail tax under
24any part of IC 6-2.5-5 and the property or service is being used,
25stored, or consumed for the purpose for which it was exempted.
26    (b) If a person issues a state gross retail or use tax exemption
27 certificate for the acquisition of tangible personal property or a service
28 and subsequently uses, stores, or consumes that property or service for
29 a nonexempt purpose, then the person shall pay the use tax.
30    SECTION 30. IC 6-2.5-3-5 IS AMENDED TO READ AS
31 FOLLOWS [EFFECTIVE JULY 1, 2027]: Sec. 5. A person is entitled
32 to a credit against the use tax imposed on the use, storage, or
33 consumption of a particular item of tangible personal property or the
34 use of a service equal to the amount, if any, of sales tax, purchase tax,
35 or use tax paid to another state, territory, or possession of the United
36 States for the acquisition of that property or service.
37    SECTION 31. IC 6-2.5-3-6, AS AMENDED BY P.L.146-2020,
38 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2027]: Sec. 6. (a) For purposes of this section, "person"
40 includes an individual who is personally liable for use tax under
41 IC 6-2.5-9-3.
42    (b) The person who uses, stores, or consumes the tangible personal
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1 property or uses the service acquired in a retail transaction is
2 personally liable for the use tax.
3     (c) The person liable for the use tax shall pay the use tax to the
4 department.
5     (d) Notwithstanding subsection (c), a person liable for the use tax
6 imposed in respect to a vehicle, watercraft, or aircraft under section
7 2(b) of this chapter shall pay the tax:
8(1) to the titling agency when the person applies for a title for the
9vehicle or the watercraft;
10(2) to the registering agency when the person registers the
11aircraft; or
12(3) to the registering agency when the person registers the
13watercraft because it is a United States Coast Guard documented
14vessel;
15 unless the person presents proof to the agency that the use tax or state
16 gross retail tax has already been paid with respect to the purchase of
17 the vehicle, watercraft, or aircraft or proof that the taxes are
18 inapplicable because of an exemption under this article.
19     (e) At the time a person pays the use tax for the purchase of a
20 vehicle to a titling agency pursuant to subsection (d), the titling agency
21 shall compute the tax due based on the presumption that the sale price
22 was the average selling price for that vehicle, as determined under a
23 used vehicle buying guide to be chosen by the titling agency. However,
24 the titling agency shall compute the tax due based on the actual sale
25 price of the vehicle if the buyer, at the time the buyer pays the tax to the
26 titling agency, presents documentation to the titling agency sufficient
27 to rebut the presumption set forth in this subsection and to establish the
28 actual selling price of the vehicle.
29     SECTION 32. IC 6-2.5-3-7, AS AMENDED BY P.L.211-2007,
30 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2027]: Sec. 7. (a) A person who acquires tangible personal
32 property or a service, or both, from a retail merchant for delivery in
33 Indiana is presumed to have:
34(1) acquired the property for storage, use, or consumption in
35Indiana; and
36(2) received the service in Indiana.
37 However, the person or the retail merchant can produce evidence to
38 rebut that presumption.
39     (b) A retail merchant is not required to produce evidence of
40 nontaxability under subsection (a) if the retail merchant receives from
41 the person who acquired the property or service an exemption
42 certificate which certifies, in the form prescribed by the department,
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1 that the acquisition is exempt from the use tax.
2     (c) A retail merchant that sells tangible personal property or a
3 service to a person that purchases the tangible personal property or
4 service for use or consumption in providing public transportation under
5 IC 6-2.5-5-27 may verify the exemption by obtaining the person's:
6(1) name;
7(2) address; and
8(3) motor carrier number, United States Department of
9Transportation number, or any other identifying number
10authorized by the department.
11 The person engaged in public transportation shall provide a signature
12 to affirm under penalties of perjury that the information provided to the
13 retail merchant is correct and that the tangible personal property or
14 service is being purchased for an exempt purpose.
15     SECTION 33. IC 6-2.5-3-8 IS AMENDED TO READ AS
16 FOLLOWS [EFFECTIVE JULY 1, 2027]: Sec. 8. (a) When a retail
17 merchant collects the use tax from a person, he the retail merchant
18 shall, upon request, issue a receipt to that person for the use tax
19 collected.
20     (b) If the department assesses the use tax against a person for the
21 person's storage, use, or consumption of tangible personal property or
22 use of a service in Indiana, and if the person has already paid the use
23 tax in relation to that property or service to a retail merchant who is
24 registered under IC 6-2.5-6, to the department, or, in the case of a
25 vehicle or aircraft, to the proper state agency, then the person may
26 avoid paying the use tax to the department if he the person can
27 produce a receipt or other written evidence showing that he the person
28 has so made the use tax payment.
29     SECTION 34. IC 6-2.5-4-1, AS AMENDED BY P.L.137-2022,
30 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
31 JULY 1, 2027]: Sec. 1. (a) A person is a retail merchant making a retail
32 transaction when the person engages in selling at retail.
33     (b) A person is engaged in selling at retail when, in the ordinary
34 course of the person's regularly conducted trade or business, the person
35 does either of the following:
36(1) The person:
37(A) acquires tangible personal property for the purpose of
38resale; and
39(2) (B) transfers that property to another person for
40consideration.
41(2) The person performs a service for consideration.
42     (c) For purposes of determining what constitutes selling at retail, it
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1 does not matter whether:
2(1) the property is transferred or the service is performed in the
3same form as when it was acquired;
4(2) the property is transferred or the service is performed alone
5or in conjunction with other property or services; or
6(3) the property is transferred or the service is performed
7conditionally or otherwise.
8    (d) Notwithstanding any provision of this article, a person is not
9 making a retail transaction when the person:
10(1) acquires tangible personal property owned by another person;
11(2) provides industrial processing or servicing, including
12enameling or plating, on the property; and
13(3) (2) transfers the property back to the owner to be sold by that
14owner either in the same form or as a part of other tangible
15personal property produced by that owner in the owner's business
16of manufacturing, assembling, constructing, refining, or
17processing.
18    SECTION 35. IC 6-2.5-4-3 IS AMENDED TO READ AS
19 FOLLOWS [EFFECTIVE JULY 1, 2027]: Sec. 3. (a) A person is a
20 retail merchant making a retail transaction when he the person
21 regularly and occupationally engages in the business of softening and
22 conditioning water.
23    (b) For purposes of this section, the business of softening and
24 conditioning water includes the exchange of water softening and
25 conditioning tanks in the ordinary course of the business, but does not
26 include the preparatory plumbing and work necessary for the first
27 installation of tanks.
28    SECTION 36. IC 6-2.5-4-9, AS AMENDED BY P.L.181-2016,
29 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2027]: Sec. 9. (a) A person is a retail merchant making a retail
31 transaction:
32(1) when the person sells tangible personal property which: or
33services;
34(1) (2) when the tangible personal property is to be added to a
35structure or facility or the service is used to add tangible
36personal property to a structure or facility by the purchaser;
37and
38(2) (3) after its the addition to the structure or facility, the
39tangible personal property would become a part of the real
40estate on which the structure or facility is located.
41    (b) A contractor is a retail merchant making a retail transaction
42 when the contractor:
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1(1) disposes of tangible personal property; or
2(2) converts tangible personal property into real property;
3 under a time and material contract. As such a retail merchant, a
4 contractor described in this subsection shall collect, as an agent of the
5 state, the state gross retail tax on the resale of the construction material
6 and remit the state gross retail tax as provided in this article.
7     (c) Notwithstanding subsections (a) and (b), a transaction described
8 in subsection (a) or (b) is not a retail transaction, if the ultimate
9 purchaser or recipient of the property to be added to a structure or
10 facility would be exempt from the state gross retail and use taxes if that
11 purchaser or recipient had directly purchased the property from the
12 supplier for addition to the structure or facility.
13     SECTION 37. IC 6-2.5-4-10, AS AMENDED BY P.L.108-2019,
14 SECTION 111, IS AMENDED TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2027]: Sec. 10. (a) A person, other than a public
16 utility, is a retail merchant making a retail transaction when the person
17 rents or leases tangible personal property to another person. other than
18 for subrent or sublease.
19     (b) A person is a retail merchant making a retail transaction when
20 the person sells any tangible personal property which has been rented
21 or leased in the regular course of the person's rental or leasing business.
22     (c) Notwithstanding subsection (a), a person is not a retail merchant
23 making a retail transaction when the person rents or leases motion
24 picture film, audio tape, or video tape to another person. However, this
25 exclusion only applies if:
26(1) the person who pays to rent or lease the film charges
27admission to those who view the film; or
28(2) the person who pays to rent or lease the film or tape
29broadcasts the film or tape for home viewing or listening.
30     (d) (c) The sharing of passenger motor vehicles and trucks through
31 a peer to peer vehicle sharing program (as defined in IC 24-4-9.2-4) is
32 a retail transaction.
33     SECTION 38. IC 6-2.5-4-11, AS AMENDED BY P.L.2-2005,
34 SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2027]: Sec. 11. (a) A person is a retail merchant making a
36 retail transaction when the person furnishes cable television or radio
37 service or satellite television or radio service that terminates in Indiana.
38     (b) Notwithstanding subsection (a), A person is not a retail merchant
39 making a retail transaction when the person provides, installs,
40 constructs, services, or removes tangible personal property which is
41 used in connection with the furnishing of cable television or radio
42 service or satellite television or radio service.
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1     SECTION 39. IC 6-2.5-4-14, AS AMENDED BY P.L.211-2007,
2 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2027]: Sec. 14. The department of administration and each
4 purchasing agent for a state educational institution shall provide the
5 department with a list of every person who desires to enter into a
6 contract to sell tangible personal property or services to an agency (as
7 defined in IC 4-13-2-1) or a state educational institution. The
8 department shall notify the department of administration or the
9 purchasing agent of the state educational institution if a person on the
10 list does not have a registered retail merchant certificate or is
11 delinquent in remitting or paying amounts due to the department under
12 this article.
13     SECTION 40. IC 6-2.5-4-15, AS ADDED BY P.L.153-2006,
14 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
15 JULY 1, 2027]: Sec. 15. (a) This section applies to retail transactions
16 occurring after December 31, 2007.
17     (b) A person is a retail merchant making a retail transaction when
18 the person sells tangible personal property or services as part of a
19 bundled transaction.
20     SECTION 41. IC 6-2.5-5-21, AS AMENDED BY P.L.118-2024,
21 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 JULY 1, 2027]: Sec. 21. (a) Sales of food and food ingredients, and
23 delivery of food and food ingredients, are exempt from the state gross
24 retail tax if:
25(1) the seller meets the filing requirements under subsection (c)
26and is an organization described in section 25(a)(1) of this
27chapter;
28(2) the purchaser is a person confined to the purchaser's home
29because of age, sickness, or infirmity;
30(3) the seller delivers the food and food ingredients to the
31purchaser; and
32(4) the delivery is prescribed as medically necessary by a
33physician licensed to practice medicine in Indiana.
34     (b) Sales of food and food ingredients, and delivery of food and
35 food ingredients, are exempt from the state gross retail tax if the seller
36 is an organization described in section 25(a)(1) of this chapter, and the
37 purchaser is a patient in a hospital operated by the seller.
38     (c) To obtain the exemption provided by this section, a taxpayer
39 must follow the procedures set forth in section 25(c) of this chapter.
40     SECTION 42. IC 6-2.5-5-26, AS AMENDED BY P.L.193-2023,
41 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2027]: Sec. 26. (a) Sales of tangible personal property or the
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1 rendering of services by an organization are exempt from the state
2 gross retail tax if either of the following apply:
3(1) The organization:
4(A) is described in section 25(a)(1)(A) through 25(a)(1)(C) of
5this chapter, section 25(a)(1)(D)(i) through 25(a)(1)(D)(iii) of
6this chapter, or section 25(a)(1)(D)(ix) of this chapter;
7(B) makes the sale to make money to carry on a not-for-profit
8purpose; and
9(C) did not make more than one hundred thousand dollars
10($100,000) in sales in the current calendar year or the previous
11calendar year.
12(2) The organization:
13(A) is described in section 25(a)(1)(D)(iv) through
1425(a)(1)(D)(viii) of this chapter; or
15(B) is a youth organization focused on agriculture.
16 Once sales of an organization that meets the qualifications under
17 subdivision (1), but does not meet the qualifications under subdivision
18 (2), exceed the amount described in subdivision (1), the organization
19 is required to collect state gross retail tax on sales on an ongoing basis
20 for the remainder of the calendar year and each calendar year thereafter
21 until the organization makes less than one hundred thousand dollars
22 ($100,000) in sales for two (2) consecutive years.
23     (b) For purposes of subsection (a), the sales of an organization
24 include sales made by all units operating under the organization's
25 registration pursuant to section 25(c) of this chapter.
26     (c) If the qualifications of subsection (a) are not met, sales of
27 tangible personal property or services by an organization described in
28 section 25(a)(1) of this chapter are exempt from the state gross retail
29 tax, if:
30(1) the organization is not operated predominantly for social
31purposes;
32(2) the property or service sold is designed and intended
33primarily either for the organization's educational, cultural, or
34religious purposes, or for improvement of the work skills or
35professional qualifications of the organization's members; and
36(3) the property or service sold is not designed or intended
37primarily for use in carrying on a private or proprietary business.
38     (d) Sales of tangible personal property by a public library, or a
39 charitable organization described in section 25(a)(1) of this chapter
40 formed to support a public library, are exempt from the state gross
41 retail tax if the property sold consists of:
42(1) items in the library's circulated and publicly available
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1collections, including items from the library's holdings; or
2(2) items that would typically be included in the library's
3circulated and publicly available collections and that are donated
4by individuals or organizations to a public library or to a
5charitable organization described in section 25(a)(1) of this
6chapter formed to support a public library.
7 The exemption provided by this subsection does not apply to any other
8 sales of tangible personal property by a public library.
9    (e) The exemption provided by this section does not apply to an
10 accredited college or university's sales of books, stationery,
11 haberdashery, supplies, or other property or noneducational services.
12    (f) To obtain the exemption provided by this section, a taxpayer
13 must follow the procedures set forth in section 25(c) of this chapter.
14    SECTION 43. IC 6-2.5-5-33 IS AMENDED TO READ AS
15 FOLLOWS [EFFECTIVE JULY 1, 2027]: Sec. 33. Sales of tangible
16 personal property or services purchased with food stamps are exempt
17 from the state gross retail tax.
18    SECTION 44. IC 6-2.5-5-59 IS ADDED TO THE INDIANA CODE
19 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
20 1, 2027]: Sec. 59. Transactions involving the provision of an
21 educational service classified under NAICS code 61 are exempt
22 from the state gross retail tax.
23    SECTION 45. IC 6-2.5-5-60 IS ADDED TO THE INDIANA CODE
24 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
25 1, 2027]: Sec. 60. Transactions involving the provision of a health
26 care and social assistance service classified under NAICS code 62
27 are exempt from the state gross retail tax.
28    SECTION 46. IC 6-2.5-5-61 IS ADDED TO THE INDIANA CODE
29 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
30 1, 2027]: Sec. 61. Transactions involving the leasing or rental of
31 real property for at least thirty (30) consecutive days are exempt
32 from the state gross retail tax.
33    SECTION 47. IC 6-2.5-5-62 IS ADDED TO THE INDIANA CODE
34 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
35 1, 2027]: Sec. 62. Transactions involving labor furnished to a
36 person by the person's employee are exempt from the state gross
37 retail tax.
38    SECTION 48. IC 6-2.5-6-9, AS AMENDED BY P.L.109-2015,
39 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2027]: Sec. 9. (a) In determining the amount of state gross
41 retail and use taxes which a retail merchant must remit under section
42 7 of this chapter, the retail merchant shall, subject to subsections (c)
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1 and (d), deduct from the retail merchant's gross retail income from
2 retail transactions made during a particular reporting period, an amount
3 equal to the retail merchant's receivables which:
4(1) resulted from retail transactions in which the retail merchant
5did not collect the state gross retail or use tax from the purchaser;
6(2) resulted from retail transactions on which the retail merchant
7has previously paid the state gross retail or use tax liability to the
8department; and
9(3) were written off as an uncollectible debt for federal tax
10purposes under Section 166 of the Internal Revenue Code during
11the particular reporting period.
12    (b) If a retail merchant deducts a receivable under subsection (a)
13 and subsequently collects all or part of that receivable, then the retail
14 merchant shall, subject to subsection (d)(6), include the amount
15 collected as part of the retail merchant's gross retail income from retail
16 transactions for the particular reporting period in which the retail
17 merchant makes the collection.
18    (c) This subsection applies only to retail transactions occurring after
19 December 31, 2006. As used in this subsection, "affiliated group"
20 means any combination of the following:
21(1) An affiliated group within the meaning provided in Section
221504 of the Internal Revenue Code (except that the ownership
23percentage in Section 1504(a)(2) of the Internal Revenue Code
24shall be determined using fifty percent (50%) instead of eighty
25percent (80%)) or a relationship described in Section 267(b)(11)
26of the Internal Revenue Code.
27(2) Two (2) or more partnerships (as defined in IC 6-3-1-19),
28including limited liability companies and limited liability
29partnerships, that have the same degree of mutual ownership as
30an affiliated group described in subdivision (1), as determined
31under the rules adopted by the department.
32 The right to a deduction under this section is not assignable to an
33 individual or entity that is not part of the same affiliated group as the
34 assignor.
35    (d) The following provisions apply to a deduction for a receivable
36 treated as uncollectible debt under subsection (a):
37(1) The deduction does not include interest.
38(2) The amount of the deduction shall be determined in the
39manner provided by Section 166 of the Internal Revenue Code for
40bad debts but shall be adjusted to exclude:
41(A) financing charges or interest;
42(B) sales or use taxes charged on the purchase price;
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1(C) uncollectible amounts on property that remain in the
2possession of the seller or a service that is not delivered until
3the full purchase price is paid;
4(D) expenses incurred in attempting to collect any debt; and
5(E) repossessed property.
6    (3) The deduction shall be claimed on the return for the period
7    during which the receivable is written off as uncollectible in the
8    claimant's books and records and is eligible to be deducted for
9    federal income tax purposes. For purposes of this subdivision, a
10    claimant who is not required to file federal income tax returns
11    may deduct an uncollectible receivable on a return filed for the
12    period in which the receivable is written off as uncollectible in the
13    claimant's books and records and would be eligible for a bad debt
14    deduction for federal income tax purposes if the claimant were
15    required to file a federal income tax return.
16    (4) If the amount of uncollectible receivables claimed as a
17    deduction by a retail merchant for a particular reporting period
18    exceeds the amount of the retail merchant's taxable sales for that
19    reporting period, the retail merchant may file a refund claim
20    under IC 6-8.1-9. However, the deadline for the refund claim shall
21    be measured from the due date of the return for the reporting
22    period on which the deduction for the uncollectible receivables
23    could first be claimed.
24    (5) If a retail merchant's filing responsibilities have been assumed
25    by a certified service provider (as defined in IC 6-2.5-11-2), the
26    certified service provider may claim, on behalf of the retail
27    merchant, any deduction or refund for uncollectible receivables
28    provided by this section. The certified service provider must
29    credit or refund the full amount of any deduction or refund
30    received to the retail merchant.
31    (6) For purposes of reporting a payment received on a previously
32    claimed uncollectible receivable, any payments made on a debt or
33    account shall be applied first proportionally to the taxable price
34    of the property or service and the state gross retail tax or use tax
35    thereon, and secondly to interest, service charges, and any other
36    charges.
37    (7) A retail merchant claiming a deduction for an uncollectible
38    receivable may allocate that receivable among the states that are
39    members of the streamlined sales and use tax agreement if the
40    books and records of the retail merchant support that allocation.
41   SECTION 49. IC 6-2.5-8-4 IS AMENDED TO READ AS
42 FOLLOWS [EFFECTIVE JULY 1, 2027]: Sec. 4. (a) An organization
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1 exempt from the state gross retail tax under IC 6-2.5-5-21,
2 IC 6-2.5-5-25, or IC 6-2.5-5-26 may register with the department as a
3 purchaser of property or services in exempt transactions. An exempt
4 organization wishing to register must file an application listing its
5 principal location, but the organization is not required to pay the fee.
6    (b) Upon receiving the application, the department may issue an
7 exempt organization certificate containing a serial number and the
8 principal location of the exempt organization.
9    SECTION 50. IC 6-2.5-10-1, AS AMENDED BY P.L.201-2023,
10 SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2027]: Sec. 1. (a) The department shall account for all state
12 gross retail and use taxes that it collects.
13    (b) Of all the state gross retail and use taxes that the department
14 collects, the department shall determine separately the parts that:
15      (1) the department collects under IC 6-2.5-3.5 (gasoline use tax);
16      (2) the department collects under this article that are
17      attributable to a retail transaction for a service; and
18      (2) (3) the department collects under this article, less the amount
19      amounts described in subdivision (1). subdivisions (1) and (2).
20    (c) The department shall deposit the collections described in
21 subsection (b)(1) in the following manner:
22      (1) For state fiscal year 2017, the following:
23(A) Fourteen and two hundred eighty-six thousandths percent
24(14.286%) of the collections shall be deposited in the motor
25vehicle highway account established under IC 8-14-1.
26(B) Eighty-five and seven hundred fourteen thousandths
27percent (85.714%) to the state general fund.
28      (2) For state fiscal year 2018, the following:
29(A) Fourteen and two hundred eighty-six thousandths percent
30(14.286%) of the collections shall be deposited in the motor
31vehicle highway account established under IC 8-14-1.
32(B) Fourteen and two hundred eighty-six thousandths percent
33(14.286%) of the collections shall be deposited in the local
34road and bridge matching grant fund established under
35IC 8-23-30.
36(C) Seventy-one and four hundred twenty-eight thousandths
37percent (71.428%) to the state general fund.
38      (3) For state fiscal year 2019, the following:
39(A) Fourteen and two hundred eighty-six thousandths percent
40(14.286%) of the collections shall be deposited in the motor
41vehicle highway account established under IC 8-14-1.
42(B) Twenty-one and four hundred twenty-nine thousandths
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1percent (21.429%) of the collections shall be deposited in the
2local road and bridge matching grant fund established under
3IC 8-23-30.
4(C) Sixty-four and two hundred eighty-five thousandths
5percent (64.285%) shall be deposited in the state general fund.
6(4) For state fiscal year 2020 and for each state fiscal year
7thereafter, the following:
8(A) Fourteen and two hundred eighty-six thousandths percent
9(14.286%) of the collections shall be deposited in the motor
10vehicle highway account established under IC 8-14-1.
11(B) Twenty-one and four hundred twenty-nine thousandths
12percent (21.429%) of the collections shall be deposited in the
13local road and bridge matching grant fund established under
14IC 8-23-30.
15(C) The following shall be deposited in the state general fund:
16(i) For state fiscal year 2020, fifty-three and five hundred
17seventy-five thousandths percent (53.575%) shall be
18deposited in the state general fund.
19(ii) For state fiscal year 2021, forty-two and eight hundred
20sixty-five thousandths percent (42.865%) shall be deposited
21in the state general fund.
22(iii) For state fiscal year 2022, thirty-two and one hundred
23fifty-five thousandths percent (32.155%) shall be deposited
24in the state general fund.
25(iv) For state fiscal year 2023, twenty-one and four hundred
26forty-five thousandths percent (21.445%) shall be deposited
27in the state general fund.
28(D) The following shall be deposited in the special
29transportation flexibility fund established by IC 4-12-16.5-2:
30(i) For state fiscal year 2020, eight and five hundred
31sixty-eight thousands percent (8.568%) of the collections
32shall be deposited in the special transportation flexibility
33fund established by IC 4-12-16.5-2.
34(ii) For state fiscal year 2021, twelve and eight hundred
35fifty-two thousandths percent (12.852%) of the collections
36shall be deposited in the special transportation flexibility
37fund established by IC 4-12-16.5-2.
38(iii) For state fiscal year 2022, twelve and eight hundred
39fifty-two thousandths percent (12.852%) of the collections
40shall be deposited in the special transportation flexibility
41fund established by IC 4-12-16.5-2.
42(iv) For state fiscal year 2023, eight and five hundred
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1sixty-eight thousands percent (8.568%) of the collections
2shall be deposited in the special transportation flexibility
3fund established by IC 4-12-16.5-2.
4(E) The following shall be deposited in the state highway fund:
5(i) For state fiscal year 2020, two and one hundred forty-two
6thousandths percent (2.142%) of the collections shall be
7deposited in the state highway fund.
8(ii) For state fiscal year 2021, eight and five hundred
9sixty-eight thousandths percent (8.568%) of the collections
10shall be deposited in the state highway fund.
11(iii) For state fiscal year 2022, nineteen and two hundred
12seventy-eight thousandths percent (19.278%) of the
13collections shall be deposited in the state highway fund.
14(iv) For state fiscal year 2023, thirty-four and two hundred
15seventy-two thousandths percent (34.272%) of the
16collections shall be deposited in the state highway fund.
17(v) For state fiscal year 2024 and for each state fiscal year
18thereafter, sixty-four and two hundred eighty-five
19thousandths percent (64.285%) of the collections shall be
20deposited in the state highway fund.
21    (d) The department shall deposit those collections described in
22 subsection (b)(2) (b)(3) in the following manner:
23      (1) Ninety-nine and eight hundred thirty-eight thousandths
24      percent (99.838%) of the collections shall be paid into the state
25      general fund.
26      (2) Thirty-one thousandths of one percent (0.031%) of the
27      collections shall be deposited into the industrial rail service fund
28      established under IC 8-3-1.7-2.
29      (3) One hundred thirty-one thousandths of one percent (0.131%)
30      of the collections shall be deposited into the commuter rail service
31      fund established under IC 8-3-1.5-20.5.
32    (e) The department shall deposit the collections described in
33 subsection (b)(2) into the local revenue sharing fund established by
34 IC 6-1.2-3-2.
35    SECTION 51. IC 6-3.6-5-1, AS ADDED BY P.L.243-2015,
36 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2026]: Sec. 1. (a) Except as provided in subsection (b), an
38 adopting body may impose a tax under section 6 of this chapter on the
39 adjusted gross income of local taxpayers in the county served by the
40 adopting body.
41    (b) Notwithstanding any other law, the portion of revenue
42 received from any tax imposed on the adjusted gross income of
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1 local taxpayers for purposes of property tax relief under this
2 chapter, IC 6-3.6-7, or any other law, may not be distributed for
3 purposes of property tax relief under this chapter or any other law
4 after December 31, 2027.
5     SECTION 52. IC 6-3.6-6-3.1, AS ADDED BY P.L.68-2025,
6 SECTION 125, IS AMENDED TO READ AS FOLLOWS
7 [EFFECTIVE JULY 1, 2026]: Sec. 3.1. (a) As used in this section,
8 "homestead" has the meaning set forth in IC 6-1.1-12-37.
9     (b) A county fiscal body may adopt an ordinance to impose a tax
10 rate for the purpose of funding property tax homestead credits to reduce
11 the property tax liability of taxpayers who own homesteads that are:
12(1) located in the county; and
13(2) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the
14taxpayer's property tax liability for the property to one percent
15(1%).
16 Revenue collected from a tax rate imposed under this section may only
17 be used to fund replacement of the county's property tax levy. Property
18 taxes imposed due to a referendum in which a majority of the voters in
19 the taxing unit imposing the property taxes approved the property taxes
20 are not eligible for a credit under this section.
21     (c) The tax rate must be in increments of one-hundredth of one
22 percent (0.01%) and may not exceed three-tenths of one percent
23 (0.3%).
24     (d) A tax imposed under this section shall be treated as property
25 taxes for all purposes. However, the department of local government
26 finance may not reduce:
27(1) any taxing unit's maximum permissible property tax levy limit
28under IC 6-1.1-18.5; or
29(2) the approved property tax levy or rate for any fund;
30 by the amount of any credits granted under this chapter.
31     (e) The homestead credits shall be applied to the net property taxes
32 due on the homestead after the application of any credit granted under
33 IC 6-1.1, including any credit granted under IC 6-1.1-20.4 and
34 IC 6-1.1-20.6.
35     (f) The property tax credits must be applied uniformly to provide a
36 homestead credit for homesteads in the county.
37     (g) The county auditor shall allocate the amount of revenue applied
38 as tax credits under this section to the taxing units that imposed the
39 eligible property taxes against which the credits are applied.
40     (h) The department of local government finance shall assist county
41 fiscal bodies and county auditors in calculating credit percentages and
42 amounts.
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1    (i) Notwithstanding any provision to the contrary in this chapter, a
2 tax imposed under this section:
3(1) may be imposed on the adjusted gross income of taxpayers
4before January 1, 2028; 2027; and
5(2) terminates and may not be imposed on the adjusted gross
6income of taxpayers after December 31, 2027. 2026.
7    (j) This section expires January 1, 2028. 2027.
8    SECTION 53. IC 6-8.1-3-30 IS ADDED TO THE INDIANA CODE
9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
10 1, 2027]: Sec. 30. The department shall post:
11(1) a notice received from the treasurer of state under
12IC 6-1.2-6-3; and
13(2) any resulting change in the state gross retail tax rate
14imposed on services under IC 6-2.5-2-2(d);
15 on the department's website.
16    SECTION 54. IC 8-22-3.5-0.5 IS ADDED TO THE INDIANA
17 CODE AS A NEW SECTION TO READ AS FOLLOWS
18 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. Notwithstanding any
19 other law:
20(1) no airport development zone or allocation area may be
21established, amended, or renewed; and
22(2) no bonds, leases, or other obligations may be issued,
23entered into, or extended for an airport development zone or
24allocation area;
25 under this chapter after May 9, 2026.
26    SECTION 55. IC 20-26-7.1-1, AS AMENDED BY P.L.68-2025,
27 SECTION 209, IS AMENDED TO READ AS FOLLOWS
28 [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) For purposes of this
29 section, "charter school" does not include a virtual charter school or an
30 adult high school.
31    (b) This chapter does not apply to the following:
32(1) A school building that since July 1, 2011, is leased or loaned
33by the school corporation that owns the school building to another
34entity, if the entity is not a building corporation or other entity that
35is related in any way to, or created by, the school corporation or
36the governing body.
37(2) A school corporation to which all of the following apply:
38(A) The county auditor distributes revenue after May 10, 2023,
39as required under IC 20-46-1-21 or IC 20-46-1-22 to each
40eligible charter school.
41(B) If the school corporation listed in IC 20-46-9-22 receives
42revenue from a school safety referendum tax levy under
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1IC 20-46-9, the county auditor distributes revenue after May
210, 2023, as required under IC 20-46-9-22 to each charter
3school described in IC 20-46-9-22(b).
4The above subdivisions are intended to apply retroactively. No
5referendums or distributed revenue prior to May 10, 2023, are
6effective to provide exemption from this chapter.
7(3) A school corporation to which all of the following apply:
8(A) The school corporation approves a resolution after May
910, 2023, to impose an operating referendum tax levy under
10IC 20-46-1 after May 10, 2023, that includes sharing the
11revenue from the referendum tax levy in the amounts
12described in clause (B) with each charter school that:
13(i) a student who resides within the attendance area of the
14school corporation attends; and
15(ii) elects to participate in the referendum.
16The above subdivisions are intended to apply retroactively. No
17resolutions, referendums, or distributed revenue prior to May 10,
182023, are effective to provide exemption from this chapter.
19(B) The amount of referendum tax levy revenue that the school
20corporation is required to share with each charter school under
21the resolution described in clause (A) is equal to the amount
22determined applying the applicable formula under
23IC 20-46-1-21. or IC 20-46-1-22.
24(C) The referendum tax levy described in clause (A) is
25approved by the voters.
26(D) The school corporation distributes the amounts described
27in clause (B) to each charter school described in clause (A).
28(E) If the school corporation receives revenue from a school
29safety referendum tax levy under IC 20-46-9, the school
30corporation shares the revenue from the school safety
31referendum tax levy with each charter school that:
32(i) a student who resides within the attendance area of the
33school corporation attends; and
34(ii) elects to participate in the referendum;
35in an amount equal to the amount determined applying the
36formula under IC 20-46-9-22(d).
37    (c) In order for any payment to a charter school to qualify as sharing
38 of proceeds from a referendum for purposes of exemption from
39 IC 20-26-7.1, the referendum must have been passed with prior notice
40 to voters of all amounts of referendum proceeds to be paid to charter
41 schools. Any claim of exemption based on payment of proceeds from
42 a referendum passed without such notice is void.
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1     SECTION 56. IC 20-46-1-0.5 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
4 other law, after May 9, 2026, the governing body of a school
5 corporation may not adopt a resolution to impose an operating
6 referendum levy under section 8 or 8.5 of this chapter.
7     (b) Notwithstanding any other law, after December 31, 2027, no
8 operating referendum tax levy may imposed under this chapter.
9     SECTION 57. IC 20-46-1-8, AS AMENDED BY P.L.68-2025,
10 SECTION 215, IS AMENDED TO READ AS FOLLOWS
11 [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) Subject to subsections
12 (b), (e), and (f) and this chapter, the governing body of a school
13 corporation may adopt a resolution to place a referendum under this
14 chapter on the ballot for any of the following purposes:
15(1) The governing body of the school corporation determines that
16it cannot, in a calendar year, carry out its public educational duty
17unless it imposes a referendum tax levy under this chapter.
18(2) The governing body of the school corporation determines that
19a referendum tax levy under this chapter should be imposed to
20replace property tax revenue that the school corporation will not
21receive because of the application of the credit under
22IC 6-1.1-20.6.
23     (b) A resolution for a referendum described in
24(1) section 21 of this chapter or
25(2) section 22 of this chapter;
26 shall specify that a portion of the proceeds collected from the proposed
27 levy will be distributed to applicable charter schools in the manner
28 described under this chapter.
29     (c) The governing body of the school corporation shall certify a
30 copy of the resolution to place a referendum on the ballot to the
31 following:
32(1) The department of local government finance, including:
33(A) the language for the question required by section 10 of this
34chapter, or in the case of a resolution to extend a referendum
35levy certified to the department of local government finance
36after March 15, 2016, section 10.1 of this chapter; and
37(B) a copy of the revenue spending plan adopted under
38subsection (f).
39The governing body of the school corporation shall also provide
40the county auditor's certification described in section 10(e) or
4110.1(f) of this chapter, as applicable. The department of local
42government finance shall post the values certified by the county
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                                    59
1auditor to the department's website. The department shall review
2the language for compliance with section 10 or 10.1 of this
3chapter, whichever is applicable, and either approve or reject the
4language. The department shall send its decision to the governing
5body of the school corporation not more than ten (10) days after
6the resolution is submitted to the department. If the language is
7approved, the governing body of the school corporation shall
8certify a copy of the resolution, including the language for the
9question and the department's approval.
10(2) The county fiscal body of each county in which the school
11corporation is located (for informational purposes only).
12(3) The circuit court clerk of each county in which the school
13corporation is located.
14     (d) If a school safety referendum tax levy under IC 20-46-9 has been
15 approved by the voters in a school corporation at any time in the
16 previous three (3) years, the school corporation may not:
17(1) adopt a resolution to place a referendum under this chapter on
18the ballot; or
19(2) otherwise place a referendum under this chapter on the ballot.
20     (e) This subsection applies to a resolution described in section 21 or
21 22 of this chapter. Not later than sixty (60) days before the resolution
22 is voted on by the governing body, the school corporation shall contact
23 the department to determine the following:
24(1) In the case of a resolution described in section 22 of this
25chapter, whether the school corporation is exempt from revenue
26sharing requirements under section 22(a)(2) of this chapter. If the
27school corporation is determined to be exempt, the department
28shall notify the school corporation, and the school corporation is
29not required to contact charter schools concerning participation
30under subsection (h), shall exclude distributions to charter schools
31under section 22 of this chapter, and shall exclude charter schools
32from the projection described in this subsection.
33(2) If the school corporation is not determined to be exempt from
34revenue sharing requirements under subdivision (1), the number
35of students in kindergarten through grade 12 who:
36(A) (1) have legal settlement in the school corporation but attend
37a charter school, excluding virtual charter schools or adult high
38schools; and
39(B) (2) receive not more than fifty percent (50%) virtual
40instruction.
41 Not later than ten (10) days after receiving the request, the department
42 shall provide the school corporation with the requested information,
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1 which shall be disaggregated for each particular charter school. Subject
2 to subsection (h), the resolution shall include a projection of the
3 amount that the school corporation expects, based on the information
4 provided by the department under this subsection, to be distributed to
5 a particular charter school under section 21 or 22 of this chapter.
6     (f) As part of the resolution described in subsection (a), the
7 governing body of the school corporation shall adopt a revenue
8 spending plan for the proposed referendum tax levy that includes:
9(1) an estimate of the amount of annual revenue expected to be
10collected if a levy is imposed under this chapter;
11(2) the specific purposes for which the revenue collected from a
12levy imposed under this chapter will be used;
13(3) an estimate of the annual dollar amounts that will be expended
14for each purpose described in subdivision (2); and
15(4) for a resolution for a referendum that is described in section
1621 or 22 of this chapter, the projected revenue that shall be
17distributed to charter schools. The revenue spending plan shall
18also take into consideration deviations in the proposed revenue
19spending plan if the actual charter school distributions exceed or
20are lower than the projected charter school distributions described
21in subsection (e). The resolution shall include for each charter
22school that elects to participate under subsection (h) information
23described in subdivisions (1) through (3).
24     (g) A school corporation shall specify in its proposed budget the
25 school corporation's revenue spending plan adopted under subsection
26 (f) and annually present the revenue spending plan at its public hearing
27 on the proposed budget under IC 6-1.1-17-3.
28     (h) This subsection applies to a resolution described in section 21
29 or 22 of this chapter. Except as provided in subsection (e), not later
30 than forty-five (45) days before the resolution is voted on by the
31 governing body, the school corporation shall contact each charter
32 school disclosed by the department to the school corporation under
33 subsection (e) to determine whether the charter school will,
34(1) in the case of a resolution described in section 21 of this
35chapter, elect to participate or
36(2) in the case of a resolution described in section 22 of this
37chapter, elect to not participate;
38 in the referendum. The notice must include the total amount of the
39 school corporation's expected need, the corresponding estimate for that
40 amount divided by the number of students enrolled in the school
41 corporation, and the date on which the governing body of the school
42 corporation will vote on the resolution. Not later than thirty (30) days
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1 prior to the date that the resolution is to be voted on by the governing
2 body, the charter school must respond in writing to the school
3 corporation and to the department, which may be by electronic mail,
4 and, in the case of the school corporation, addressed to the
5 superintendent of the school corporation. A charter school that elects
6 to not participate in the referendum may not subsequently change that
7 election during the term of the referendum.
8     (i) If a charter school will not participate in the referendum, the
9 school corporation shall exclude distributions to the charter school
10 under this chapter and from the projection described in subsection (e).
11 If a charter school will participate in the referendum, the charter
12 school:
13(1) must be included in the projection described in subsection (e);
14and
15(2) shall contribute a proportionate share of the cost to conduct
16the referendum based on the total combined ADM of the school
17corporation and any participating charter schools.
18     (j) This subsection applies to a resolution described in section 21 or
19 22 of this chapter. At least thirty (30) days before the referendum
20 submitted to the voters under this chapter is voted on by the public in
21 a general election, the school corporation that is pursuing the
22 referendum and any charter school that will participate under
23 subsection (h) shall post a referendum disclosure statement on each
24 school's respective website that contains the following information:
25(1) The salaries by position within the school corporation or
26charter school listed from highest salary to lowest salary and a
27link to Gateway Indiana for access to individual salaries.
28(2) An acknowledgment that the school corporation or charter
29school is not committing any crime described in IC 35-44.1-1.
30(3) A link to the school corporation's or charter school's most
31recent state board of accounts audit on the state board of accounts'
32website.
33(4) The current enrollment of the school corporation or charter
34school disaggregated by student group and race.
35(5) The school corporation's or charter school's high school
36graduation rate.
37(6) The school corporation's or charter school's annual retention
38rate for teachers for the previous five (5) years.
39     (k) Not later than July 15, 2025, the department of education shall
40 prescribe the manner in which a projection described in subsection (e)
41 shall be calculated.
42     (l) A charter school that begins operations after a resolution under
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1 this section or section 8.5 of this chapter is voted on by the governing
2 body for a particular referendum may not receive an option to elect to
3 participate in that referendum during the term of that referendum.
4     SECTION 58. IC 20-46-1-8.5, AS AMENDED BY P.L.68-2025,
5 SECTION 216, IS AMENDED TO READ AS FOLLOWS
6 [EFFECTIVE UPON PASSAGE]: Sec. 8.5. (a) A resolution to extend
7 a referendum levy must be:
8(1) adopted by the governing body of a school corporation; and
9(2) approved in a referendum under this chapter;
10 before December 31 of the final calendar year in which the school
11 corporation's previously approved referendum levy is imposed under
12 this chapter.
13     (b) For a resolution described in section 21 or 22 of this chapter that
14 is adopted under this section, the resolution must include the projected
15 charter school distributions described in section 8(e) of this chapter and
16 indicate the distributions to applicable charter schools in accordance
17 with this chapter.
18     SECTION 59. IC 20-46-1-21, AS AMENDED BY P.L.68-2025,
19 SECTION 221, IS AMENDED TO READ AS FOLLOWS
20 [EFFECTIVE UPON PASSAGE]: Sec. 21. (a) Subject to section 0.5
21 of this chapter, this section
22(1) except as provided in subdivision (2), applies to revenue
23received from a resolution that is approved by the governing body
24to impose a referendum levy under section 8 or 8.5 of this chapter
25after May 10, 2023, for a school corporation located in:
26(A) (1) Lake County;
27(B) (2) Marion County;
28(C) (3) St. Joseph County; or
29(D) (4) Vanderburgh County.
30through the full term of the referendum levy; and
31(2) does not apply to revenue received from a referendum levy if:
32(A) the governing body of the school corporation approves the
33referendum levy in a resolution adopted under section 8 or 8.5
34of this chapter; and
35(B) the referendum levy is imposed for the first time with
36property taxes first due and payable in a calendar year
37beginning after December 31, 2027.
38     (b) Subject to subsections (f) and (h), the county auditor in the
39 county in which the school corporation is located shall distribute an
40 amount of revenue as provided under subsection (e) from the revenue
41 collected from a tax levy imposed under this chapter by a school
42 corporation that is attributable to the territory of the school corporation
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1 that is located within the boundaries of a county listed in subsection
2 (a)(1) to each charter school, excluding virtual charter schools or adult
3 high schools, that a student who resides within the attendance area of
4 the school corporation attends if the charter school elects to participate
5 in the referendum under section 8(h) of this chapter.
6     (c) The department shall provide the county auditor with data and
7 information necessary for the county auditor to determine:
8(1) which charter schools are eligible to receive a distribution
9under this section; and
10(2) the number of students who:
11(A) reside within the attendance area of the school corporation
12who are included in the ADM for each charter school,
13excluding virtual charter schools or adult high schools,
14described in subdivision (1); and
15(B) receive not more than fifty percent (50%) virtual
16instruction.
17     (d) The following schools are not eligible to receive a distribution
18 under this section:
19(1) A virtual charter school.
20(2) An adult high school.
21     (e) For the purposes of the calculations made in this subsection,
22 each eligible school that has entered into an agreement with a school
23 corporation to participate as a participating innovation network charter
24 school under IC 20-25.7-5 is considered to have an ADM that is
25 separate from the school corporation. The amount that the county
26 auditor shall distribute to a charter school, excluding virtual charter
27 schools or adult high schools, under this section is the amount
28 determined in the last STEP of the following STEPS:
29STEP ONE: Determine, for each charter school, excluding virtual
30charter schools or adult high schools, that is eligible to receive a
31distribution under this section, the number of students who reside
32within the attendance area of the school corporation who are
33currently included in the ADM of the charter school and receive
34not more than fifty percent (50%) virtual instruction.
35STEP TWO: Determine the sum of:
36(A) the current ADM count for the school corporation; plus
37(B) total number of all students who reside within the
38attendance area of the school corporation who are currently
39included in the ADM of a charter school, and receive not more
40than fifty percent (50%) virtual instruction, excluding virtual
41charter schools or adult high schools.
42STEP THREE: Determine the result of:
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1(A) the STEP ONE amount; divided by
2(B) the STEP TWO amount.
3STEP FOUR: Determine the result of:
4(A) the sum of:
5(i) the STEP THREE amount; plus
6(ii) any amount withheld in the previous year under
7subsection (i); multiplied by
8(B) the amount collected by the county auditor during the most
9recent installment period that is attributable to the territory of
10the school corporation that is located within the boundaries of
11a county listed in subsection (a).
12    (f) A charter school is not eligible for a distribution under this
13 section from property tax revenue collected from a particular
14 referendum levy if the charter school does not have a certified fall
15 ADM count in the calendar year immediately preceding the calendar
16 year in which the public question for the referendum appears on the
17 ballot.
18    (g) Not later than August 15, 2025, and not later than August 15 of
19 each calendar year thereafter, the department shall provide to each
20 school corporation and eligible charter school an estimate of the
21 amount of property tax levy revenue the school corporation and charter
22 school are expected to receive under this section in the subsequent
23 calendar year based on the most recent fall ADM count.
24    (h) This subsection applies beginning with distributions of property
25 tax revenue under this section in 2026 and thereafter. In order to
26 receive a distribution under this section, the governing body of a
27 charter school shall, not later than October 15, 2025, and not later than
28 October 15 of each calendar year thereafter, adopt a budget for the
29 current school year. Not later than ten (10) days before its adoption, the
30 budget must be fixed and presented to the charter board in a public
31 meeting in the county in which the charter school is incorporated. Not
32 later than November 1, 2025, and not later than November 1 of each
33 calendar year thereafter, the governing body of the charter school shall
34 submit:
35(1) the budget that is adopted under this subsection;
36(2) the dates on which each requirement under this subsection
37were met; and
38(3) a statement from the governing body of the charter school
39attesting that the dates provided in subdivision (2) are true and
40accurate and that the budget was properly adopted under this
41subsection;
42 to the charter authorizer for review and to the department of local
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1 government finance to be posted publicly on the computer gateway
2 under IC 6-1.1-17-3.
3    (i) If a charter school does not satisfy the requirements of subsection
4 (h) to receive distributions under this section during a calendar year, as
5 determined by the department of local government finance, the charter
6 school may not receive a distribution of property tax revenue in that
7 calendar year and the county auditor shall withhold the charter school's
8 distribution amount. The department of local government finance's
9 determination of compliance consists only of a confirmation that the
10 adopted budget and attestation statement are submitted not later than
11 the applicable date under subsection (h). Any distribution amount
12 withheld under this subsection shall be:
13(1) added to the property tax revenue collections as described in
14STEP TWO of subsection (e); and
15(2) distributed among the school corporation and remaining
16charter schools according to subsection (e);
17 in the calendar year that immediately follows the calendar year in
18 which the distribution amount was withheld.
19    SECTION 60. IC 20-46-1-22 IS REPEALED [EFFECTIVE UPON
20 PASSAGE]. Sec. 22. (a) This section applies to revenue received from
21 a referendum levy if both of the following apply:
22(1) The:
23(A) governing body of the school corporation approves the
24referendum levy in a resolution adopted under section 8 or 8.5
25of this chapter; and
26(B) resulting referendum levy is imposed for the first time with
27property taxes first due and payable in a calendar year
28beginning after December 31, 2027.
29(2) The number of students who have legal settlement in the
30school corporation but attend a charter school, excluding virtual
31charter schools and adult high schools, and receive not more than
32fifty percent (50%) virtual instruction is at least the greater of:
33(A) one hundred (100) students; or
34(B) two percent (2%) of the school corporation's spring ADM
35count, excluding students who receive more than fifty percent
36(50%) virtual instruction.
37    (b) As used in this section, "eligible charter school" means a charter
38 school attended by a student who:
39(1) has legal settlement in a school corporation that imposes a
40referendum levy under this chapter; and
41(2) receives not more than fifty percent (50%) virtual instruction.
42 However, the term does not include a virtual charter school or an adult
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1 high school.
2    (c) The following schools are not eligible to receive, and may not be
3 considered in a calculation made for purposes of, a distribution under
4 this section:
5(1) A virtual charter school.
6(2) An adult high school.
7    (d) Subject to subsections (j) and (l), the county auditor in the
8 county in which the school corporation is located shall distribute to
9 each eligible charter school, in the manner provided under this section,
10 an amount of revenue received from a tax levy imposed by a school
11 corporation under this chapter unless the charter school elects to not
12 participate in the referendum under section 8(h) of this chapter.
13    (e) For the purposes of the calculations made in this section, each
14 eligible charter school that has entered into an agreement with a school
15 corporation to participate as a participating innovation network charter
16 school under IC 20-25.7-5 is considered to have an ADM that is
17 separate from the school corporation.
18    (f) Not later than January 1, 2028, and not later than January 1 of
19 each year thereafter, the department, in consultation with the
20 department of local government finance, shall determine, for each
21 school corporation, the corresponding percentages of revenue received
22 from the tax levy that must be distributed among the school corporation
23 and each eligible charter school according to the following formula:
24STEP ONE: Determine, for each eligible charter school, the
25number of students who:
26(A) have legal settlement within the school corporation;
27(B) are currently included in the fall ADM count for the
28charter school; and
29(C) receive not more than fifty percent (50%) virtual
30instruction.
31STEP TWO: Determine the sum of:
32(A) the aggregate of the STEP ONE results for all eligible
33charter schools with respect to the school corporation; plus
34(B) the fall ADM count for the school corporation for students
35receiving not more than fifty percent (50%) virtual instruction.
36STEP THREE: For each eligible charter school, determine the
37result of:
38(A) the applicable STEP ONE amount; divided by
39(B) the STEP TWO amount;
40expressed as a percentage.
41STEP FOUR: Determine the sum of all the amounts computed
42under STEP THREE and subtract the result from one hundred
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1percent (100%).
2     (g) The department shall provide to the county auditor, immediately
3 after calculation under subsection (g):
4(1) each eligible charter school and the eligible charter school's
5corresponding percentage calculated under STEP THREE of
6subsection (f); and
7(2) the percentage calculated under STEP FOUR of subsection (f)
8for the school corporation.
9     (h) Subject to subsections (k) and (m), when the county auditor
10 distributes property tax revenue, the county auditor shall distribute to
11 the school corporation and each eligible charter school the amount
12 determined in the last STEP of the following STEPS:
13STEP ONE: Determine the amount collected in the most recent
14installment period by the school corporation from the school
15corporation's referendum levy imposed under this chapter.
16STEP TWO: To determine the distribution for the school
17corporation and each eligible charter school, determine the result
18of:
19(A) the sum of:
20(i) the STEP ONE result; plus
21(ii) any amount withheld in the previous year under
22subsection (k); multiplied by
23(B) the following percentage:
24(i) In the case of an eligible charter school, the charter
25school's percentage under STEP THREE of subsection (f).
26(ii) In the case of the school corporation, the school
27corporation's percentage under STEP FOUR of subsection
28(f).
29     (i) Not later than August 15, 2027, and not later than August 15 of
30 each calendar year thereafter, the department shall provide to each
31 school corporation and each eligible charter school an estimate of the
32 amount of property tax levy revenue the school corporation and eligible
33 charter school are expected to receive under this section in the
34 subsequent calendar year based on the most recent fall ADM count.
35     (j) This subsection applies beginning with distributions of property
36 tax revenue under this section in 2028 and thereafter. In order to
37 receive a distribution under this section, the governing body of an
38 eligible charter school shall, not later than October 15, 2027, and not
39 later than October 15 of each calendar year thereafter, adopt a budget
40 for the current school year. Not later than ten (10) days before its
41 adoption, the budget must be fixed and presented to the charter board
42 in a public meeting in the county in which the eligible charter school
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1 is incorporated. Not later than November 1, 2027, and not later than
2 November 1 of each calendar year thereafter, the governing body of the
3 charter school shall submit:
4(1) the budget that is adopted under this subsection;
5(2) the dates on which each requirement under this subsection
6were met; and
7(3) a statement from the governing body of the charter school
8attesting that the dates provided in subdivision (2) are true and
9accurate and that the budget was properly adopted under this
10subsection;
11 to the charter authorizer for review and to the department of local
12 government finance to be posted publicly on the computer gateway
13 under IC 6-1.1-17-3.
14     (k) If an eligible charter school does not satisfy the requirements of
15 subsection (j) to receive distributions under this section during a
16 calendar year, as determined by the department of local government
17 finance, the eligible charter school may not receive a distribution of
18 property tax revenue in that calendar year and the county auditor shall
19 withhold the eligible charter school's distribution amount. The
20 department of local government finance's determination of compliance
21 consists only of a confirmation that the adopted budget and attestation
22 statement are submitted not later than the applicable date under
23 subsection (j). Any distribution amount withheld under this subsection
24 shall be:
25(1) added to the property tax revenue collections as described in
26STEP TWO of subsection (h); and
27(2) distributed among the school corporation and eligible charter
28schools according to subsection (h);
29 in the calendar year that immediately follows the calendar year in
30 which the distribution amount was withheld.
31     (l) A charter school is not eligible for a distribution under this
32 section from property tax revenue collected from a particular
33 referendum levy if the charter school does not have a certified fall
34 ADM count in the calendar year immediately preceding the calendar
35 year in which the public question for the referendum appears on the
36 ballot.
37     SECTION 61. IC 20-46-1-23, AS ADDED BY P.L.230-2025,
38 SECTION 133, IS AMENDED TO READ AS FOLLOWS
39 [EFFECTIVE UPON PASSAGE]: Sec. 23. Subject to section 0.5 of
40 this chapter, but notwithstanding any other provision of this chapter
41 or any other law to the contrary, including any amendments made to
42 this chapter and IC 3-10-9-3 in the 2025 regular session of the general
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1 assembly, the governing body of a school corporation that adopts a
2 resolution to place a referendum on the ballot under section 8 of this
3 chapter on or before June 30, 2025, is eligible to place the referendum
4 question on the ballot in an election held in the fall of calendar year
5 2025.
6    SECTION 62. IC 20-46-7-0.5 IS ADDED TO THE INDIANA
7 CODE AS A NEW SECTION TO READ AS FOLLOWS
8 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. Notwithstanding any
9 other law, after December 31, 2027, a property tax levy may not be
10 imposed under this chapter.
11    SECTION 63. IC 20-46-7-4, AS AMENDED BY P.L.169-2017,
12 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 UPON PASSAGE]: Sec. 4. (a) Before January 1, 2027, the governing
14 body of each school corporation shall establish a levy in every calendar
15 year sufficient to pay all obligations.
16    (b) This subsection applies to a school corporation that consolidates
17 under IC 20-23-6-12.5. The governing body shall establish a levy for
18 each subunit (as defined in IC 20-23-6-0.5) in each calendar year
19 sufficient to pay the debts and obligations that the particular subunit
20 incurred before consolidating with one (1) or more school corporations
21 under IC 20-23-6-12.5.
22    SECTION 64. IC 20-46-8-0.5 IS ADDED TO THE INDIANA
23 CODE AS A NEW SECTION TO READ AS FOLLOWS
24 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. Notwithstanding any
25 other law, after December 31, 2027, a property tax levy may not be
26 imposed under this chapter.
27    SECTION 65. IC 20-46-8-1, AS AMENDED BY P.L.68-2025,
28 SECTION 223, IS AMENDED TO READ AS FOLLOWS
29 [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) Before January 1, 2028,
30 a school corporation may impose an annual property tax levy for its
31 operations fund.
32    (b) For property taxes first due and payable in 2019, the maximum
33 permissible property tax levy a school corporation may impose for its
34 operations fund (IC 20-40-18) is the following:
35STEP ONE: Determine the sum of the following:
36(A) The 2018 maximum permissible transportation levy
37determined under IC 20-46-4 (repealed January 1, 2019).
38(B) The 2018 maximum permissible school bus replacement
39levy determined under IC 20-46-5 (repealed January 1, 2019).
40(C) The 2018 amount that would be raised from a capital
41projects fund tax rate equal to the sum of:
42(i) the maximum capital projects fund rate that the school
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1corporation was authorized to impose for 2018 under
2IC 20-46-6 (repealed January 1, 2019), after any adjustment
3under IC 6-1.1-18-12 (but excluding any rate imposed for
4qualified utility and insurance costs); plus
5(ii) the capital projects fund rate imposed for qualified utility
6and insurance costs in 2018.
7(D) For school corporations described in IC 36-10-13-7, the
82018 levy as provided in section 6 of this chapter (repealed
9January 1, 2019) to provide funding for an art association.
10(E) For a school corporation in a county having a population
11of more than two hundred fifty thousand (250,000) and less
12than three hundred thousand (300,000), the 2018 levy as
13provided in section 7 of this chapter (repealed January 1,
142019) to provide funding for a historical society.
15(F) For a school corporation described in IC 36-10-14-1, the
162018 levy as provided in section 8 of this chapter (repealed
17January 1, 2019) to provide funding for a public playground.
18STEP TWO: Determine the product of:
19(A) The amount determined in STEP ONE, after eliminating
20the effects of temporary excessive levy appeals and any other
21temporary adjustments made to each of these levies for 2018
22(regardless of whether the school corporation imposed the
23entire amount of that maximum permissible levy for the
24previous year); multiplied by
25(B) the maximum levy growth quotient determined under
26IC 6-1.1-18.5-2.
27STEP THREE: Determine the result of the following:
28(A) Determine the sum of:
29(i) the amount determined in STEP TWO; plus
30(ii) the amount granted due to an appeal to increase the levy
31for transportation for 2019.
32(B) Make the school bus replacement adjustment for 2019.
33    (c) After 2019, the maximum permissible property tax levy a school
34 corporation may impose for its operations fund for a particular year is
35 the following:
36STEP ONE: Determine the product of:
37(A) the maximum permissible property tax levy for the school
38corporation's operations fund for the previous year, after
39eliminating the effects of temporary excessive levy appeals
40and any other temporary adjustments made to the levy for the
41previous year (regardless of whether the school corporation
42imposed the entire amount of the maximum permissible levy
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1for the previous year); multiplied by
2(B) the maximum levy growth quotient determined under
3IC 6-1.1-18.5-2.
4STEP TWO: Determine the result of the following:
5(A) Determine the sum of:
6(i) the amount determined in STEP ONE; plus
7(ii) the amount granted due to an appeal to increase the
8maximum permissible operations fund levy for the year
9under section 3 of this chapter for transportation (before its
10expiration).
11(B) Make the school bus replacement adjustment permitted by
12section 3 of this chapter.
13     SECTION 66. IC 20-46-8-12 IS REPEALED [EFFECTIVE UPON
14 PASSAGE]. Sec. 12. (a) This section applies to revenue collected after
15 December 31, 2027, from a tax levy imposed under this chapter only
16 if the number of students who have legal settlement in a school
17 corporation but attend a charter school, excluding virtual charter
18 schools and adult high schools, and receive not more than fifty percent
19 (50%) virtual instruction, is at least the greater of:
20(1) one hundred (100) students; or
21(2) two percent (2%) of the school corporation's spring ADM
22count, excluding students who receive more than fifty percent
23(50%) virtual instruction.
24     (b) As used in this section, "eligible charter school" means a charter
25 school attended by a student who:
26(1) has legal settlement in a school corporation that imposes a tax
27levy under this chapter; and
28(2) receives not more than fifty percent (50%) virtual instruction.
29 However, the term does not include a virtual charter school or an adult
30 high school.
31     (c) The following schools are not eligible to receive, and may not be
32 considered in a calculation made for purposes of, a distribution under
33 this section:
34(1) A virtual charter school.
35(2) An adult high school.
36     (d) Beginning in calendar year 2028, and in each calendar year
37 thereafter, and subject to subsection (j), the county auditor shall
38 distribute to each eligible charter school in the manner provided under
39 this section an amount of revenue received from a tax levy imposed by
40 a school corporation under this chapter.
41     (e) For the purposes of the calculations made in this section, each
42 eligible charter school that has entered into an agreement with a school
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1 corporation to participate as a participating innovation network charter
2 school under IC 20-25.7-5 is considered to have an ADM that is
3 separate from the school corporation.
4    (f) Not later than January 1, 2028, and not later than January 1 of
5 each year thereafter, the department, in consultation with the
6 department of local government finance, shall determine, for each
7 school corporation, the corresponding percentages of revenue received
8 from the tax levy that must be distributed among the school corporation
9 and each eligible charter school according to the following formula:
10STEP ONE: Determine, for each eligible charter school, the
11number of students who:
12(A) have legal settlement within the school corporation;
13(B) are currently included in the fall ADM count for the
14charter school; and
15(C) receive not more than fifty percent (50%) virtual
16instruction.
17STEP TWO: Determine the sum of:
18(A) the aggregate of the STEP ONE results for all eligible
19charter schools with respect to the school corporation; plus
20(B) the fall ADM count for the school corporation for students
21receiving not more than fifty percent (50%) virtual instruction.
22STEP THREE: For each eligible charter school, determine the
23result of:
24(A) the applicable STEP ONE amount; divided by
25(B) the STEP TWO amount;
26expressed as a percentage.
27STEP FOUR: Determine the sum of all the amounts computed
28under STEP THREE and subtract the result from one hundred
29percent (100%).
30    (g) The department shall provide to the county auditor, immediately
31 after calculation under subsection (f):
32(1) each eligible charter school and the eligible charter school's
33corresponding percentage calculated under STEP THREE of
34subsection (f); and
35(2) the percentage calculated under STEP FOUR of subsection (f)
36for the school corporation.
37    (h) Subject to subsections (j) and (l), the county auditor shall
38 distribute to the school corporation and each eligible charter school the
39 amount determined in the last STEP of the following STEPS:
40STEP ONE: Determine the amount collected in the most recent
41installment period by the school corporation from the school
42corporation's operations fund levy imposed under this chapter.
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1STEP TWO: To determine the distribution for the school
2corporation and each eligible charter school, determine the result
3of:
4(A) the sum of:
5(i) the STEP ONE result; plus
6(ii) any amount withheld in the previous year under
7subsection (k); multiplied by
8(B) the following percentage:
9(i) In the case of an eligible charter school, the charter
10school's percentage under STEP THREE of subsection (f).
11(ii) In the case of the school corporation, the school
12corporation's percentage under STEP FOUR of subsection
13(f).
14     (i) Not later than August 15, 2027, and not later than August 15 of
15 each calendar year thereafter, the department shall provide to each
16 school corporation and each eligible charter school an estimate of the
17 amount of property tax levy revenue the school corporation and eligible
18 charter school are expected to receive under this section in the
19 subsequent calendar year based on the most recent fall ADM count.
20     (j) Beginning with distributions of property tax revenue under this
21 section in 2028 and thereafter, in order to receive a distribution under
22 this section, the governing body of an eligible charter school shall, not
23 later than October 15, 2027, and not later than October 15 of each
24 calendar year thereafter, adopt a budget for the current school year. Not
25 later than ten (10) days before its adoption, the budget must be fixed
26 and presented to the charter board in a public meeting in the county in
27 which the eligible charter school is incorporated. Not later than
28 November 1, 2027, and not later than November 1 of each calendar
29 year thereafter, the governing body of the charter school shall submit:
30(1) the budget that is adopted under this subsection;
31(2) the dates on which each requirement under this subsection
32was met; and
33(3) a statement from the governing body of the charter school
34attesting that the dates provided in subdivision (2) are true and
35accurate and that the budget was properly adopted under this
36subsection;
37 to the charter authorizer for review and to the department of local
38 government finance to be posted publicly on the computer gateway
39 under IC 6-1.1-17-3.
40     (k) If an eligible charter school does not satisfy the requirements of
41 subsection (j) to receive distributions under this section during a
42 calendar year, as determined by the department of local government
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1 finance, the eligible charter school may not receive a distribution of
2 property tax revenue in that calendar year and the county auditor shall
3 withhold the eligible charter school's distribution amount. The
4 department of local government finance's determination of compliance
5 consists only of a confirmation that the adopted budget and attestation
6 statement are submitted not later than the applicable date under
7 subsection (j). Any distribution amount withheld under this subsection
8 shall be:
9(1) added to the property tax revenue collections as described in
10STEP TWO of subsection (h); and
11(2) distributed among the school corporation and remaining
12eligible charter schools according to subsection (h);
13 in the calendar year that immediately follows the calendar year in
14 which the distribution amount was withheld.
15    (l) This subsection applies only to distributions under subsection (h)
16 in calendar years 2028, 2029, and 2030 to an eligible charter school.
17 Instead of the amount determined under subsection (h) for a
18 distribution to a particular eligible charter school from the revenue
19 collected from the tax levy imposed under this chapter by a particular
20 school corporation, the county auditor shall make distributions
21 according to the following:
22(1) For a distribution in 2028, the county auditor shall distribute
23an amount for a particular eligible charter school equal to:
24(A) the applicable result of STEP TWO of subsection (h) for
25the eligible charter school; multiplied by
26(B) twenty-five hundredths (0.25).
27(2) For a distribution in 2029, the county auditor shall distribute
28an amount for a particular eligible charter school equal to:
29(A) the applicable result of STEP TWO of subsection (h) for
30the eligible charter school; multiplied by
31(B) five-tenths (0.5).
32(3) For a distribution in 2030, the county auditor shall distribute
33an amount for a particular eligible charter school equal to:
34(A) the applicable result of STEP TWO of subsection (h) for
35the eligible charter school; multiplied by
36(B) seventy-five hundredths (0.75).
37 Any amount of property tax revenue collected from the tax levy
38 imposed under this chapter by a particular school corporation that
39 remains after making the distributions according to this subsection
40 shall be distributed to the school corporation and are in addition to the
41 amount distributed to the school corporation under subsection (h) for
42 the applicable year. This subsection expires July 1, 2032.
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1    SECTION 67. IC 20-46-9-0.5 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
4 other law, after May 9, 2026, the governing body of a school
5 corporation may not adopt a resolution to impose a school safety
6 referendum levy under section 6 or 7 of this chapter.
7    (b) Notwithstanding any other law, after December 31, 2027, no
8 school safety referendum tax levy may be imposed under this
9 chapter.
10    SECTION 68. IC 20-46-9-22, AS AMENDED BY P.L.68-2025,
11 SECTION 232, IS AMENDED TO READ AS FOLLOWS
12 [EFFECTIVE UPON PASSAGE]: Sec. 22. (a) Subject to section 0.5
13 of this chapter, this section
14(1) applies to revenue received from a resolution that is approved
15by the governing body to impose a referendum levy under section
166 or 7 of this chapter after May 10, 2023, for a school corporation
17located in:
18(A) (1) Lake County;
19(B) (2) Marion County;
20(C) (3) St. Joseph County; or
21(D) (4) Vanderburgh County.
22through the full term of the referendum levy; and
23(2) does not apply to revenue received from a referendum levy if:
24(A) the governing body of the school corporation approves the
25referendum levy in a resolution adopted under section 6 or 7
26of this chapter; and
27(B) the referendum levy is imposed for the first time with
28property taxes first due and payable in a calendar year
29beginning after December 31, 2027.
30    (b) The county auditor shall distribute an amount under subsection
31 (d) to each charter school, excluding virtual charter schools or adult
32 high schools, that a student who resides within the attendance area of
33 the school corporation attends if the charter school, excluding virtual
34 charter schools or adult high schools, elects to participate in the
35 referendum under section 6(i) of this chapter. The department shall
36 provide the county auditor with data and information necessary for the
37 county auditor to determine:
38(1) which charter schools, excluding virtual charter schools or
39adult high schools, are eligible to receive a distribution under this
40section; and
41(2) the number of all students who reside within the attendance
42area of the school corporation who are included in the ADM for
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1each charter school, excluding virtual charter schools or adult
2high schools, described in subdivision (1).
3    (c) The following schools are not eligible to receive a distribution
4 under this section:
5(1) A virtual charter school.
6(2) An adult high school.
7    (d) For the purposes of the calculations made in this subsection,
8 each eligible school that has entered into an agreement with a school
9 corporation to participate as a participating innovation network charter
10 school under IC 20-25.7-5 is considered to have an ADM that is
11 separate from the school corporation. The amount that the county
12 auditor shall distribute to a charter school, excluding virtual charter
13 schools or adult high schools, under this section is the amount
14 determined in the last STEP of the following STEPS:
15STEP ONE: Determine, for each charter school, excluding virtual
16charter schools or adult high schools, that is eligible to receive a
17distribution under this section, the number of students who reside
18within the attendance area of the school corporation who are
19currently included in the ADM of the charter school.
20STEP TWO: Determine the sum of:
21(A) the current ADM count for the school corporation; plus
22(B) the total number of students who reside within the
23attendance area of the school corporation who are currently
24included in the ADM of a charter school, excluding virtual
25charter schools or adult high schools.
26STEP THREE: Determine the result of:
27(A) the STEP ONE amount; divided by
28(B) the STEP TWO amount.
29STEP FOUR: Determine the result of:
30(A) the STEP THREE amount; multiplied by
31(B) the amount collected by the county auditor during the most
32recent installment period.
33    (e) If a charter school receives a distribution under this section, the
34 distribution may be used only for the purposes described in
35 IC 20-40-20-6(a).
36    SECTION 69. IC 36-2-15-0.1 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE UPON PASSAGE]: Sec. 0.1. (a) This section applies to
39 the office of a county assessor who is serving on May 10, 2026.
40    (b) Upon the expiration of a county assessor's term, the office of
41 county assessor is abolished.
42    (c) Upon the expiration of a county assessor's term, all the
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1 powers and duties of the county assessor are transferred to the
2 county auditor.
3     (d) Upon the expiration of a county assessor's term, all of the
4 following are transferred to the county auditor:
5(1) All employment positions, as of the expiration of a county
6assessor's term, of all employees of the county assessor.
7(2) The real and personal property of the county assessor.
8(3) The obligations outstanding, as of the expiration of a
9county assessor's term, of the county assessor.
10(4) The funds of the county assessor.
11     (e) The county auditor shall interview, or give the opportunity
12 to interview to, each individual who:
13(1) is, as of the expiration of a county assessor's term, an
14employee of the county assessor; and
15(2) applies for an employment position referred to in
16subsection (d)(1).
17     SECTION 70. IC 36-2-15-0.2 IS ADDED TO THE INDIANA
18 CODE AS A NEW SECTION TO READ AS FOLLOWS
19 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. (a) Each county assessor
20 whose duties will be transferred under section 0.1 of this chapter
21 shall:
22(1) organize the records of the assessor's office relating to the
23assessment of tangible property in a manner prescribed by the
24department of local government finance; and
25(2) transfer the records upon the expiration of a county
26assessor's term as directed by the department of local
27government finance.
28     (b) The department of local government finance shall determine
29 a procedure and schedule for the transfer of the records and
30 operations from the county assessor to the county auditor. The
31 assessors shall assist each other and coordinate their efforts to:
32(1) ensure an orderly transfer of all records; and
33(2) provide for an uninterrupted and professional transition
34of any functions of assessors that remain following the
35abolishment of the imposition of property tax under IC 6-1.2
36and that are consistent with this chapter, IC 6-1.1, and the
37directions of the department of local government finance.
38     SECTION 71. IC 36-2-15-2, AS AMENDED BY P.L.167-2015,
39 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 UPON PASSAGE]: Sec. 2. (a) A county assessor shall be elected under
41 IC 3-10-2-13 by the voters of the county.
42     (b) To be eligible to serve as an assessor, an individual must meet
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1 the following qualifications before taking office:
2(1) If the individual has never held the office of county assessor,
3the individual must have attained a level two assessor-appraiser
4certification under IC 6-1.1-35.5.
5(2) If the individual has held the office of county assessor, the
6individual must have attained a level three assessor-appraiser
7certification under IC 6-1.1-35.5.
8    (c) A county assessor must reside within the county as provided in
9 Article 6, Section 6 of the Constitution of the State of Indiana. The
10 assessor forfeits office if the assessor ceases to be a resident of the
11 county.
12    (d) The term of office of a county assessor is four (4) years,
13 beginning January 1 after election and continuing until a successor is
14 elected and qualified.
15    (e) This section expires July 1, 2026.
16    SECTION 72. IC 36-2-15-3, AS AMENDED BY P.L.146-2008,
17 SECTION 692, IS AMENDED TO READ AS FOLLOWS
18 [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Subject to subsection (b),
19 the assessor shall keep the assessor's office in a building provided at
20 the county seat by the county executive. The assessor shall keep the
21 office open for business during regular business hours on every day of
22 the year except Sundays and legal holidays. However, the assessor may
23 close the office on days specified by the county executive according to
24 custom and practice of the county.
25    (b) After June 30, 2008, the county assessor may establish one (1)
26 or more satellite offices in the county.
27    (c) This section expires July 1, 2026.
28    SECTION 73. IC 36-2-15-5, AS AMENDED BY P.L.167-2015,
29 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 JULY 1, 2026]: Sec. 5. (a) Subject to section 0.1 of this chapter, the
31 county assessor shall perform the functions assigned by statute to the
32 county assessor, including the following:
33(1) Countywide equalization.
34(2) Selection and maintenance of a countywide computer system.
35(3) Certification of gross assessments to the county auditor.
36(4) Discovery of omitted property.
37(5) In
38(A) a township in which the transfer of duties of the elected
39township assessor is required by subsection (c); or
40(B) a township in which the duties relating to the assessment
41of tangible property are not required to be performed by a
42township assessor elected under IC 36-6-5,
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1performance of the assessment duties prescribed by IC 6-1.1.
2     (b) A transfer of duties between assessors does not affect:
3(1) any assessment, assessment appeal, or other official action
4made by an assessor before the transfer; or
5(2) any pending action against, or the rights of any party that may
6possess a legal claim against, an assessor that is not described in
7subdivision (1).
8 Any assessment, assessment appeal, or other official action of an
9 assessor made by the assessor within the scope of the assessor's official
10 duties before the transfer is considered as having been made by the
11 assessor to whom the duties are transferred.
12     (c) If the individual elected to the office of township assessor has
13 not attained the assessor-appraiser certification level required by
14 IC 36-6-5-1 before the date the term of office begins, the assessment
15 duties prescribed by IC 6-1.1 that would otherwise be performed in the
16 township by the township assessor are transferred to the county
17 assessor on that date. If assessment duties in a township are transferred
18 to the county assessor under this subsection, those assessment duties
19 are transferred back to the township assessor if at a later election an
20 individual who has attained the assessor-appraiser certification level
21 required by IC 36-6-5-1 is elected to the office of township assessor.
22     SECTION 74. IC 36-2-15-7, AS ADDED BY P.L.219-2007,
23 SECTION 109, IS AMENDED TO READ AS FOLLOWS
24 [EFFECTIVE UPON PASSAGE]: Sec. 7. (a) Each county assessor,
25 elected township assessor, or township trustee-assessor whose
26 assessment duties prescribed by IC 6-1.1 will be transferred under
27 section 5 of this chapter shall:
28(1) organize the records of the assessor's office relating to the
29assessment of tangible property in a manner prescribed by the
30department of local government finance; and
31(2) transfer the records as directed by the department of local
32government finance.
33     (b) The department of local government finance shall determine a
34 procedure and schedule for the transfer of the records and operations.
35 The assessors shall assist each other and coordinate their efforts to:
36(1) ensure an orderly transfer of all records; and
37(2) provide for an uninterrupted and professional transition of the
38property assessment functions consistent with this chapter and the
39directions of the department of local government finance.
40     (c) This section expires July 1, 2026.
41     SECTION 75. IC 36-6-5-0.3 IS ADDED TO THE INDIANA CODE
42 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
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1 UPON PASSAGE]: Sec. 0.3. (a) This section applies to the office of
2 a township assessor who is serving on May 10, 2026.
3     (b) Upon the expiration of a township assessor's term, the office
4 of township assessor is abolished.
5     (c) Upon the expiration of a township assessor's term, all the
6 powers and duties of the township assessor are transferred to the
7 county auditor of the county in which the township is located.
8     (d) Upon the expiration of a township assessor's term, all of the
9 following are transferred to the county auditor:
10(1) All employment positions, as of the expiration of a
11township assessor's term, of all employees of each township
12assessor in the county.
13(2) The real and personal property of each township assessor
14in the county.
15(3) The obligations outstanding, as of the expiration of a
16township assessor's term, of each township assessor in the
17county.
18(4) The funds of each township assessor in the county.
19     (e) The county auditor shall interview, or give the opportunity
20 to interview to, each individual who:
21(1) is, as of the expiration of a township assessor's term, an
22employee of a township assessor in the county; and
23(2) applies for an employment position referred to in
24subsection (d)(1).
25     SECTION 76. IC 36-6-5-0.5 IS ADDED TO THE INDIANA CODE
26 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
27 UPON PASSAGE]: Sec. 0.5. (a) Each township assessor whose
28 duties will be transferred under section 0.3 of this chapter shall:
29(1) organize the records of the assessor's office relating to the
30assessment of tangible property in a manner prescribed by the
31department of local government finance; and
32(2) transfer the records upon the expiration of a township
33assessor's term, as directed by the department of local
34government finance.
35     (b) The department of local government finance shall determine
36 a procedure and schedule for the transfer of the records and
37 operations from the township assessor to the county auditor. The
38 assessors shall assist each other and coordinate their efforts to:
39(1) ensure an orderly transfer of all records; and
40(2) provide for an uninterrupted and professional transition
41of any functions of assessors that remain following the
42abolishment of the imposition of property tax under IC 6-1.2
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1and that are consistent with this chapter, IC 6-1.1, and the
2directions of the department of local government finance.
3     SECTION 77. IC 36-6-5-1, AS AMENDED BY P.L.167-2015,
4 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 UPON PASSAGE]: Sec. 1. (a) Subject to subsection (g), before 2009,
6 a township assessor shall be elected under IC 3-10-2-13 by the voters
7 of each township:
8(1) having:
9(A) a population of more than eight thousand (8,000); or
10(B) an elected township assessor or the authority to elect a
11township assessor before January 1, 1979; and
12(2) in which the number of parcels of real property on January 1,
132008, is at least fifteen thousand (15,000).
14     (b) Subject to subsection (g), before 2009, a township assessor shall
15 be elected under IC 3-10-2-14 (repealed effective July 1, 2008) in each
16 township:
17(1) having a population of more than five thousand (5,000) but
18not more than eight thousand (8,000), if:
19(A) the legislative body of the township, by resolution,
20declares that the office of township assessor is necessary; and
21(B) the resolution is filed with the county election board not
22later than the first date that a declaration of candidacy may be
23filed under IC 3-8-2; and
24(2) in which the number of parcels of real property on January 1,
252008, is at least fifteen thousand (15,000).
26     (c) Subject to subsection (g), a township government that is created
27 by merger under IC 36-6-1.5 shall elect only one (1) township assessor
28 under this section.
29     (d) Subject to subsection (g), after 2008 a township assessor shall
30 be elected under IC 3-10-2-13 only by the voters of each township in
31 which:
32(1) the number of parcels of real property on January 1, 2008, is
33at least fifteen thousand (15,000); and
34(2) the transfer to the county assessor of the assessment duties
35prescribed by IC 6-1.1 is disapproved in the referendum under
36IC 36-2-15.
37     (e) The township assessor must reside within the township as
38 provided in Article 6, Section 6 of the Constitution of the State of
39 Indiana. The assessor forfeits office if the assessor ceases to be a
40 resident of the township.
41     (f) The term of office of a township assessor is four (4) years,
42 beginning January 1 after election and continuing until a successor is
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1 elected and qualified. However, the term of office of a township
2 assessor elected at a general election in which no other township
3 officer is elected ends on December 31 after the next election in which
4 any other township officer is elected.
5     (g) To be eligible to serve as a township assessor, an individual
6 must meet the following qualifications before taking office:
7(1) If the individual has never held the office of township
8assessor, the individual must have attained a level two
9assessor-appraiser certification under IC 6-1.1-35.5.
10(2) If the individual has held the office of township assessor, the
11individual must have attained a level three assessor-appraiser
12certification under IC 6-1.1-35.5.
13     (h) After June 30, 2008, the county assessor shall perform the
14 assessment duties prescribed by IC 6-1.1 in a township in which the
15 number of parcels of real property on January 1, 2008, is less than
16 fifteen thousand (15,000).
17     (i) This section expires July 1, 2026.
18     SECTION 78. IC 36-6-5-3, AS AMENDED BY P.L.146-2008,
19 SECTION 711, IS AMENDED TO READ AS FOLLOWS
20 [EFFECTIVE JULY 1, 2026]: Sec. 3. (a) Except as provided in
21 subsection (b) and section 0.3 of this chapter, the assessor shall
22 perform the duties prescribed by statute, including assessment duties
23 prescribed by IC 6-1.1.
24     (b) Subsection (a) does not apply if the duties of the township
25 assessor have been transferred to the county assessor as described in
26 IC 6-1.1-1-24 or IC 36-2-15.
27     SECTION 79. IC 36-6-5-4, AS AMENDED BY P.L.167-2015,
28 SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 UPON PASSAGE]: Sec. 4. (a) Before July 1, 2017, an employee of a
30 township assessor who performs real property assessing duties must
31 have attained the level of certification under IC 6-1.1-35.5 that the
32 township assessor is required to attain under section 1(g) of this
33 chapter.
34     (b) After June 30, 2017, an employee of a township assessor who is
35 responsible for placing an assessed valuation on real property must
36 have attained the certification of a level three assessor-appraiser under
37 IC 6-1.1-35.5.
38     (c) This subsection applies after June 30, 2017. If the township
39 assessor has not attained the certification of a level three
40 assessor-appraiser under IC 6-1.1-35.5, the township fiscal body shall
41 authorize either of the following:
42(1) The appointment of at least one (1) deputy or employee who
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1      has attained the certification of a level three assessor-appraiser
2      under IC 6-1.1-35.5.
3      (2) Contracting with a person who has attained, or who employs
4      for purposes of the contract an individual who has attained, the
5      certification of a level three assessor-appraiser under
6      IC 6-1.1-35.5. The individual under contract with the township
7      assessor under this subdivision shall assist the township assessor
8      with assessment duties as determined by the township assessor.
9 Payment for the deputy, employee, or contractor shall be made from the
10 budget for the township assessor.
11    (d) This section expires July 1, 2026.
12    SECTION 80. IC 36-7-13-0.5 IS ADDED TO THE INDIANA
13 CODE AS A NEW SECTION TO READ AS FOLLOWS
14 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
15 other law:
16      (1) no district or allocation area may be established, amended,
17      or renewed; and
18      (2) no bonds, leases, or other obligations may be issued,
19      entered into, or extended for a district or allocation area;
20 under this chapter after May 9, 2026.
21    (b) This section may not be construed to prohibit the refunding
22 or refinancing of obligations incurred before May 10, 2026.
23    SECTION 81. IC 36-7-14-0.7 IS ADDED TO THE INDIANA
24 CODE AS A NEW SECTION TO READ AS FOLLOWS
25 [EFFECTIVE UPON PASSAGE]: Sec. 0.7. (a) As used in this section,
26 "project area" refers to:
27      (1) an area needing redevelopment;
28      (2) a redevelopment project area;
29      (3) an urban renewal project area;
30      (4) an economic development area;
31      (5) an area including a project for housing or age-restricted
32      housing;
33      (6) an area including a residential housing development
34      program; and
35      (7) any other development district or program by any other
36      name that is described in this chapter.
37    (b) Notwithstanding any other law:
38      (1) no project area or allocation area may be established,
39      amended, or renewed; and
40      (2) no bonds, leases, or other obligations may be issued,
41      entered into, or extended for a project area or allocation area;
42 under this chapter after May 9, 2026.
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1    (c) This section may not be construed to prohibit the refunding
2 or refinancing of obligations incurred before May 10, 2026.
3    SECTION 82. IC 36-7-14.5-0.5 IS ADDED TO THE INDIANA
4 CODE AS A NEW SECTION TO READ AS FOLLOWS
5 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
6 other law:
7      (1) no economic development area, special taxing district, or
8      allocation area may be established, amended, or renewed; and
9      (2) no bonds, leases, or other obligations may be issued,
10      entered into, or extended for an economic development area,
11      special taxing district, or allocation area;
12 under this chapter after May 9, 2026.
13    (b) This section may not be construed to prohibit the refunding
14 or refinancing of obligations incurred before May 10, 2026.
15    SECTION 83. IC 36-7-15.1-0.5 IS ADDED TO THE INDIANA
16 CODE AS A NEW SECTION TO READ AS FOLLOWS
17 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) As used in this section,
18 "project area" refers to:
19      (1) an area needing redevelopment;
20      (2) a redevelopment project area;
21      (3) an urban renewal project area;
22      (4) an economic development area;
23      (5) an area including a project for housing or age-restricted
24      housing;
25      (6) an area including a residential housing development
26      program; and
27      (7) any other development district or program by any other
28      name that is described in this chapter.
29    (b) Notwithstanding any other law:
30      (1) no project area or allocation area may be established,
31      amended, or renewed; and
32      (2) no bonds, leases, or other obligations may be issued,
33      entered into, or extended for a project area or allocation area;
34 under this chapter after May 9, 2026.
35    (c) This section may not be construed to prohibit the refunding
36 or refinancing of obligations incurred before May 10, 2026.
37    SECTION 84. IC 36-7-30-0.5 IS ADDED TO THE INDIANA
38 CODE AS A NEW SECTION TO READ AS FOLLOWS
39 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
40 other law:
41      (1) no special taxing district or allocation area may be
42      established, amended, or renewed; and
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1      (2) no bonds, leases, or other obligations may be issued,
2      entered into, or extended for a special taxing district or
3      allocation area;
4 under this chapter after May 9, 2026.
5    (b) This section may not be construed to prohibit the refunding
6 or refinancing of obligations incurred before May 10, 2026.
7    SECTION 85. IC 36-7-30.5-0.5 IS ADDED TO THE INDIANA
8 CODE AS A NEW SECTION TO READ AS FOLLOWS
9 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
10 other law:
11      (1) no military base development area or allocation area may
12      be established, amended, or renewed; and
13      (2) no bonds, leases, or other obligations may be issued,
14      entered into, or extended for a military base development
15      area or allocation area;
16 under this chapter after May 9, 2026.
17    (b) This section may not be construed to prohibit the refunding
18 or refinancing of obligations incurred before May 10, 2026.
19    SECTION 86. IC 36-7-32-0.5 IS ADDED TO THE INDIANA
20 CODE AS A NEW SECTION TO READ AS FOLLOWS
21 [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) Notwithstanding any
22 other law:
23      (1) no certified technology park or allocation area may be
24      established, amended, or renewed; and
25      (2) no bonds, leases, or other obligations may be issued,
26      entered into, or extended for a certified technology park or
27      allocation area;
28 under this chapter after May 9, 2026.
29    (b) This section may not be construed to prohibit the refunding
30 or refinancing of obligations incurred before May 10, 2026.
31    SECTION 87. IC 36-7.5-4.5-0.2 IS ADDED TO THE INDIANA
32 CODE AS A NEW SECTION TO READ AS FOLLOWS
33 [EFFECTIVE UPON PASSAGE]: Sec. 0.2. (a) Notwithstanding any
34 other law:
35      (1) no allocation area capturing property tax revenue may be
36      established, amended, or renewed; and
37      (2) no bonds, leases, or other obligations may be issued,
38      entered into, or extended for an allocation area capturing
39      property tax revenue;
40 under this chapter after May 9, 2026.
41    (b) This section may not be construed to prohibit the refunding
42 or refinancing of obligations incurred before May 10, 2026.
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1    SECTION 88. [EFFECTIVE JULY 1, 2027] (a) For purposes of
2 IC 6-2.5, as amended by this act, with respect to a transaction in
3 which services are delivered before July 1, 2027, and after June 30,
4 2027, by a retail merchant, only transactions for which the charges
5 are collected on original statements and billings dated after June
6 30, 2027, shall be considered as having occurred after June 30,
7 2027.
8    (b) This SECTION expires July 1, 2029.
9    SECTION 89. [EFFECTIVE JULY 1, 2026] (a) The legislative
10 services agency shall prepare legislation for introduction in the
11 2027 regular session of the general assembly to make appropriate
12 changes in statutes that are required by this act.
13    (b) This SECTION expires December 31, 2027.
14    SECTION 90. An emergency is declared for this act.
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