SB 238

                                                             Introduced Version
           SENATE BILL No. 238
                 _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1; IC 6-3.6; IC 36-8-19-7.5.
Synopsis: Property and local income taxes. Amends provisions added
in SEA 1 in the 2025 session that require the department of local
government finance to neutralize the effect of certain property tax
provisions enacted in that bill. Amends the threshold for the business
personal property tax exemption enacted in SEA 1 in the 2025 session.
Reinstates excess tax levy appeal provisions that were repealed in SEA
1 in the 2025 session. Amends the various local income tax (LIT) rates
that may be adopted under provisions added in SEA 1 in the 2025
session. Amends the population thresholds used to determine if a city
or town is eligible to adopt a municipal LIT. Repeals provisions that
require counties and municipalities to readopt their LIT rate each year.
Moves the effective date for the local income tax changes enacted in
SEA 1 in the 2025 session from 2028 to 2029. Makes corresponding
changes to move the expiration date regarding a county with a single
voting bloc enacted in HEA 1142 in the 2025 session.
Effective: Upon passage; January 1, 2025 (retroactive); May 10, 2025
(retroactive); July 1, 2025 (retroactive); January 1, 2026 (retroactive);
June 30, 2028; July 1, 2028.
                                Rogers
   January 8, 2026, read first time and referred to Committee on Tax and Fiscal Policy.
2026  IN 238—LS 6971/DI 120
                                                                                       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.
                   SENATE BILL No. 238
    A BILL FOR AN ACT to amend the Indiana Code concerning
 taxation.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 6-1.1-2-11, AS ADDED BY P.L.68-2025,
2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 11. (a) As used in this section, "tax increment
4 financing allocation area" means any area authorized by statute in
5 which ad valorem property taxes are allocated, including the following:
6      (1) IC 6-1.1-39 (economic development districts).
7      (2) IC 8-22-3.5 (airport development zones).
8      (3) IC 36-7-14 (redevelopment of areas needing redevelopment
9      generally).
10      (4) IC 36-7-15.1 (redevelopment of areas in Marion County).
11      (5) IC 36-7-30 (reuse of federal military bases).
12      (6) IC 36-7-30.5 (development of multicounty federal military
13      bases).
14      (7) IC 36-7-32 (certified technology parks).
15      (8) IC 36-7-32.5 (innovation development districts).
16      (9) IC 36-7.5-4.5 (rail transit development districts).
17    (b) As used in this section, "governing body" means the
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1 following:
2(1) For IC 6-1.1-39 (economic development districts), the
3county, city, or town fiscal body.
4(2) For IC 8-22-3.5 (airport development zones), the
5commission as defined in IC 8-22-3.5-2.
6(3) For IC 36-7-14 (redevelopment of areas needing
7redevelopment generally), the commission created under
8IC 36-7-14-3.
9(4) For IC 36-7-15.1 (redevelopment of areas in Marion
10County), the commission as defined under IC 36-7-15.1-3 or
11IC 36-7-15.1-37.
12(5) For IC 36-7-30 (reuse of federal military bases), the reuse
13authority created under IC 36-7-30-4.
14(6) For IC 36-7-30.5 (development of multicounty federal
15military bases), the development authority defined under
16IC 36-7-30.5-4.
17(7) For IC 36-7-32 (certified technology parks), the applicable
18unit or redevelopment commission under IC 36-7-32-10.
19(8) For IC 36-7-32.5 (innovation development districts), the
20Indiana economic development corporation established by
21IC 5-28-3-1.
22(9) For IC 36-7.5-4.5 (rail transit development districts), the
23northwest Indiana regional development authority established
24by IC 36-7.5-2-1.
25    (b) (c) The department shall, in each year beginning after December
26 31, 2025, and ending before January 1, 2034, adjust the base assessed
27 value of each tax increment financing allocation area to neutralize the
28 effect of the changing tax rates resulting year to year from the
29 homestead deduction under IC 6-1.1-12-37(c)(2) and
30 IC 6-1.1-12-37.5(c) and the deduction for eligible property under
31 IC 6-1.1-12-47. It is the intent of the general assembly that an increase
32 in revenue from a change in tax rates resulting from these statutes
33 accrue only to the base assessed value and not to the tax increment
34 financing allocation area. However, in the case of a decrease in revenue
35 from a change in tax rates resulting from these statutes, the department
36 may neutralize the change under this subsection in a positive manner
37 with regard to the tax increment financing allocation area to protect the
38 ability to pay bonds based on incremental revenue, if the tax increment
39 financing allocation area demonstrates to the department that an
40 adjustment is needed before the department calculates a positive
41 neutralization adjustment.
42    (d) If a governing body that has established a tax increment
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1 financing allocation area believes, based on credible data
2 projections, that an adjustment may be needed to the base assessed
3 value as a result of the changes in the homestead deduction under
4 IC 6-1.1-12-37(c)(2) and IC 6-1.1-12-37.5(c) and the deduction for
5 eligible property under IC 6-1.1-12-47 in order to prevent
6 significant risk to, or impairment of, contractual debt obligations
7 with respect to any creditor or bondholder to which taxes from the
8 tax increment financing allocation area have been pledged, the
9 governing body may petition the department for a review of the tax
10 increment financing allocation for the tax increment financing
11 allocation area for any year. The petition must be submitted in the
12 form, timeline, and manner prescribed by the department and
13 must include the credible data projections upon which the petition
14 is based. The department shall review a petition submitted under
15 this subsection and provide a report of its review to the governing
16 body within a reasonable time. The department shall make an
17 adjustment for an approved petition under this subsection.
18     SECTION 2. IC 6-1.1-3-7.2, AS AMENDED BY P.L.230-2025,
19 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JANUARY 1, 2026 (RETROACTIVE)]: Sec. 7.2. (a) This section
21 applies to assessment dates occurring after December 31, 2015.
22     (b) As used in this section, "affiliate" means an entity that
23 effectively controls or is controlled by a taxpayer or is associated with
24 a taxpayer under common ownership or control, whether by
25 shareholdings or other means.
26     (c) As used in this section, "business personal property" means
27 personal property that:
28(1) is otherwise subject to assessment and taxation under this
29article;
30(2) is used in a trade or business or otherwise held, used, or
31consumed in connection with the production of income; and
32(3) was:
33(A) acquired by the taxpayer in an arms length transaction
34from an entity that is not an affiliate of the taxpayer, if the
35personal property has been previously used in Indiana before
36being placed in service in the county; or
37(B) acquired in any manner, if the personal property has never
38been previously used in Indiana before being placed in service
39in the county.
40 The term does not include mobile homes assessed under IC 6-1.1-7,
41 personal property held as an investment, or personal property that is
42 assessed under IC 6-1.1-8 and is owned by a public utility subject to
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1 regulation by the Indiana utility regulatory commission. However, the
2 term does include the personal property of a telephone company or a
3 communications service provider if that personal property meets the
4 requirements of subdivisions (1) through (3), regardless of whether that
5 personal property is assessed under IC 6-1.1-8 and regardless of
6 whether the telephone company or communications service provider is
7 subject to regulation by the Indiana utility regulatory commission.
8     (d) Notwithstanding section 7 of this chapter, if the acquisition cost
9 of a one million dollars ($1,000,000) of assessed value of each
10 taxpayer's total business personal property in a county is less than:
11(1) eighty thousand dollars ($80,000) for assessment dates before
122026; and
13(2) two million dollars ($2,000,000) for the 2026 assessment date,
14and each assessment date thereafter;
15 the taxpayer's business personal property in the county for that
16 assessment date is exempt from taxation. For taxpayers with business
17 personal property in multiple taxing districts, the county auditor
18 shall apply the exemption proportionately by taxing district based
19 on the taxpayer's assessed value in the taxing district compared to
20 the taxpayer's total assessed value in all taxing districts in the
21 county.
22     (e) Subject to subsection (f), a taxpayer that is eligible for the
23 exemption under this section for an assessment date shall include the
24 following information on the taxpayer's personal property tax return:
25(1) A declaration that the taxpayer's business personal property in
26the county is exempt from property taxation.
27(2) Whether the taxpayer's business personal property within the
28county is in one (1) location or multiple locations.
29(3) An address for the location of the property.
30 If the business personal property is in multiple locations within a
31 county, the taxpayer shall provide an address for the location where the
32 sum of acquisition costs for business personal property is greatest. If
33 two (2) or more addresses contain the greatest equivalent sum of
34 acquisition costs for business personal property within a given county,
35 the taxpayer shall choose only one (1) address to list on the return.
36     (f) Beginning after December 31, 2022, a taxpayer that has included
37 the information required under subsection (e) on the taxpayer's
38 personal property tax return to claim the exemption under this section
39 is not required to file a personal property return for the taxpayer's
40 business personal property for an assessment date that occurs after the
41 assessment date for which the information is first provided under
42 subsection (e), unless or until the taxpayer no longer qualifies for the
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1 exemption under subsection (d) for a subsequent assessment date.
2    (g) This subsection applies to a taxpayer who filed a business
3 personal property tax return on or after April 15, 2025, in which the
4 taxpayer claimed an exemption under this section for the 2025
5 assessment date of more than eighty thousand dollars ($80,000) under
6 provisions enacted in SEA 1-2025, but before those provisions were
7 repealed in HEA 1427-2025. A taxpayer described in this subsection
8 is not entitled to an exemption under this section that exceeds the
9 amount as amended in HEA 1427-2025, and the taxpayer must file an
10 amended return not later than May 31, 2025.
11    SECTION 3. IC 6-1.1-10.3-3, AS AMENDED BY P.L.68-2025,
12 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2028]: Sec. 3. As used in this chapter, "exemption ordinance"
14 refers to an ordinance adopted under section 5 of this chapter by a local
15 income tax council (before July 1, 2027) 2028) or by a county adopting
16 body specified in IC 6-3.6-3-1(a) (after June 30, 2027). 2028).
17    SECTION 4. IC 6-1.1-18.5-13, AS AMENDED BY P.L.68-2025,
18 SECTION 62, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
19 JANUARY 1, 2026 (RETROACTIVE)]: Sec. 13. With respect to an
20 appeal filed under section 12 of this chapter, the department may find
21 that a civil taxing unit should receive the following any one (1) or
22 more of the following types of relief:
23(1) Permission to the civil taxing unit to increase its levy in excess
24of the limitations established under section 3 or 25 of this chapter,
25as applicable, if in the judgment of the department the increase is
26reasonably necessary due to increased costs of the civil taxing
27unit resulting from annexation, if those increased costs are
28incurred by the civil taxing unit in that calendar year and more
29than one (1) immediately succeeding calendar year, the unit may
30appeal under section 12 of this chapter for permission to increase
31its levy under this subdivision based on those increased costs in
32any of the following:
33(A) The first calendar year in which those costs are incurred.
34(B) One (1) or more of the immediately succeeding four (4)
35calendar years.
36(2) Permission to the civil taxing unit to increase its levy in
37excess of the limitations established under section 3 or 25 of
38this chapter, as applicable, if the department finds that the
39quotient determined under STEP SIX of the following
40formula is equal to or greater than one and two-hundredths
41(1.02):
42STEP ONE: Determine the three (3) calendar years that
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1most immediately precede the ensuing calendar year.
2STEP TWO: Compute separately, for each of the calendar
3years determined in STEP ONE, the quotient (rounded to
4the nearest ten-thousandth (0.0001)) of the sum of the civil
5taxing unit's total assessed value of all taxable property
6divided by the sum determined under this STEP for the
7calendar year immediately preceding the particular
8calendar year.
9STEP THREE: Divide the sum of the three (3) quotients
10computed in STEP TWO by three (3).
11STEP FOUR: Compute separately, for each of the
12calendar years determined in STEP ONE, the quotient
13(rounded to the nearest ten-thousandth (0.0001)) of the
14sum of the total assessed value of all taxable property in all
15counties divided by the sum determined under this STEP
16for the calendar year immediately preceding the particular
17calendar year.
18STEP FIVE: Divide the sum of the three (3) quotients
19computed in STEP FOUR by three (3).
20STEP SIX: Divide the STEP THREE amount by the STEP
21FIVE amount.
22The civil taxing unit may increase its levy by a percentage not
23greater than the percentage by which the STEP THREE
24amount exceeds the percentage by which the civil taxing unit
25may increase its levy under section 3 or 25 of this chapter, as
26applicable, based on the maximum levy growth quotient
27determined under section 2 of this chapter.
28(2) (3) Permission to a civil taxing unit to increase its levy in
29excess of the limitations established under section 3 or 25 of this
30chapter, as applicable, if the department determines that the civil
31taxing unit cannot carry out its governmental functions for an
32ensuing calendar year under the levy limitations imposed by
33section 3 or 25 of this chapter, as applicable, due to a natural
34disaster, an accident, or another unanticipated emergency.
35    SECTION 5. IC 6-3.6-1-1.5, AS AMENDED BY P.L.68-2025,
36 SECTION 92, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2028]: Sec. 1.5. (a) In counties that adopted a homestead
38 credit under IC 6-3.5-6-13 (before its repeal January 1, 2017), the
39 transition from the former taxes to the taxes governed under this article
40 shall include the transition of the homestead credit under IC 6-3.5-6-13
41 (before its repeal January 1, 2017) to a property tax relief rate under
42 IC 6-3.6-5 (before its expiration).
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1     (b) To accomplish the transition under this section, the department
2 of local government finance shall determine the portion of the income
3 tax rate under IC 6-3.5-6-8 (before its repeal January 1, 2017) that is
4 attributable to the homestead credit approved under IC 6-3.5-6-13
5 (before its repeal January 1, 2017) and shall allocate that portion of the
6 income tax rate that is attributable to the homestead credit under
7 IC 6-3.5-6-13 (before its repeal January 1, 2017) to the property tax
8 relief rate under IC 6-3.6-5 (before its expiration).
9     (c) The department of local government finance shall notify each
10 affected county of the rate that will be allocated to the property tax
11 relief rate not later than July 1, 2016. In addition, the department of
12 local government finance shall notify the state budget agency of the
13 transition under this section.
14     (d) This section expires July 1, 2028. 2029.
15     SECTION 6. IC 6-3.6-1-3, AS AMENDED BY P.L.68-2025,
16 SECTION 93, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2028]: Sec. 3. (a) Except to the extent that taxes imposed in
18 a county under or determined under:
19(1) IC 6-3.5-1.1 (repealed);
20(2) IC 6-3.5-1.5 (repealed);
21(3) IC 6-3.5-6 (repealed); or
22(4) IC 6-3.5-7 (repealed);
23 are increased, decreased, or rescinded under this article, the total tax
24 rate in effect in a county under the provisions described in subdivisions
25 (1) through (4) on May 1, 2016, continue in effect after May 1, 2016,
26 and shall be treated as taxes imposed under this article.
27     (b) Notwithstanding subsection (a) or any other provision of this
28 article, a property tax relief rate imposed in a county under IC 6-3.6-5
29 (before its expiration) expires December 31, 2027. 2028.
30     SECTION 7. IC 6-3.6-2-7.4, AS AMENDED BY P.L.68-2025,
31 SECTION 98, AND P.L.223-2025, SECTION 4, IS AMENDED TO
32 READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.4.
33 "County with a single voting bloc" means a county that has a local
34 income tax council in which one (1) city that is a member of the local
35 income tax council or one (1) town that is a member of the local
36 income tax council is allocated more than fifty percent (50%) of the
37 total one hundred (100) votes allocated under IC 6-3.6-3-6(d). This
38 section expires May 31, 2027. 2028.
39     SECTION 8. IC 6-3.6-3-3, AS AMENDED BY P.L.68-2025,
40 SECTION 103, IS AMENDED TO READ AS FOLLOWS
41 [EFFECTIVE JULY 1, 2028]: Sec. 3. (a) Except as provided in
42 subsection (f), an ordinance adopted by a county under this article takes
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1 effect as provided in this section.
2    (b) An ordinance that adopts, increases, decreases, or rescinds a tax
3 or a tax rate takes effect as follows:
4(1) An ordinance adopted on or before October 1 of a calendar
5year shall take effect on January 1 of the calendar year that
6immediately succeeds the year in which the ordinance is adopted.
7(2) An ordinance adopted after October 1 of a calendar year shall
8take effect on January 1 of the second succeeding calendar year
9following the year the ordinance is adopted.
10 However, an ordinance adopted to impose a tax rate under
11 IC 6-3.6-6-2(b)(3) or IC 6-3.6-6-2(b)(4) must be adopted on or before
12 October 1 of a calendar year.
13    (c) An ordinance that grants, increases, decreases, rescinds, or
14 changes a credit against the property tax liability of a taxpayer under
15 IC 6-3.6-5 (before its expiration) takes effect as follows:
16(1) An ordinance adopted after December 31 of the immediately
17preceding year and before November 2 of the current year takes
18effect on January 1 of, and applies to property taxes first due and
19payable in, the year immediately following the year in which the
20ordinance is adopted.
21(2) An ordinance adopted after November 1 of the current year
22and before January 1 of the immediately succeeding year takes
23effect on January 1 of, and applies to property taxes first due and
24payable in, the year that follows the current year by two (2) years.
25 This subsection expires December 31, 2027. 2028.
26    (d) An ordinance that grants, increases, decreases, rescinds, or
27 changes a distribution or allocation of taxes takes effect as follows:
28(1) An ordinance adopted on or before October 1 of a calendar
29year shall take effect on January 1 of the calendar year that
30immediately succeeds the year in which the ordinance is adopted.
31(2) An ordinance adopted after October 1 of a calendar year shall
32take effect on January 1 of the second succeeding calendar year
33following the year the ordinance is adopted.
34    (e) An ordinance not described in subsections (b) through (d) takes
35 effect as provided under IC 36 for other ordinances of the
36 governmental entity adopting the ordinance.
37    (f) An ordinance described in section 7(e) or 7.5(e) of this chapter
38 that changes a tax rate or changes the allocation of revenue received
39 from a tax rate does not take effect as provided under this section if the
40 county adopting body fails to meet the required deadlines for notice
41 described in section 7(e) or 7.5(e) of this chapter. If an ordinance does
42 not take effect, the tax rate or allocation, as applicable, that is subject
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1 to the proposed change in the ordinance shall be the lesser of the:
2(1) applicable distribution schedule for the certified distribution
3for the upcoming calendar year; or
4(2) applicable distribution schedule for the certified distribution
5for the current calendar year;
6 unless, or until, a subsequent ordinance is adopted and the required
7 deadlines for notice described in section 7(e) or 7.5(e) of this chapter
8 are met. This subsection expires January 1, 2025.
9     SECTION 9. IC 6-3.6-3-4, AS AMENDED BY P.L.68-2025,
10 SECTION 105, IS AMENDED TO READ AS FOLLOWS
11 [EFFECTIVE JULY 1, 2028]: Sec. 4. (a) Except for a tax rate that has
12 an expiration date, and except as provided in section 3(f) of this chapter
13 (before its expiration), a tax rate remains in effect until the effective
14 date of an ordinance that increases, decreases, or rescinds that tax rate.
15     (b) A tax rate may not be changed more than once each year under
16 this article.
17     (c) A local income tax expenditure tax rate that is imposed in a
18 county under IC 6-3.6-6 continues in effect after December 31, 2027,
19 only if the adopting body adopts an ordinance to renew the expenditure
20 tax rate beginning January 1, 2028. An ordinance under this subsection
21 must be adopted by the adopting body on or before October 1, 2027, as
22 set forth in section 3(b)(1) of this chapter. However, this subsection
23 shall not be construed to prohibit an adopting body that fails to adopt
24 an ordinance to continue an expenditure tax rate after December 31,
25 2027,from adopting an ordinance under this article to impose, renew,
26 or modify an expenditure tax rate under IC 6-3.6-6 beginning January
27 1, 2029, or any year thereafter.
28     SECTION 10. IC 6-3.6-3-5, AS AMENDED BY P.L.223-2025,
29 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30 UPON PASSAGE]: Sec. 5. (a) The auditor of a county shall record all
31 votes taken on ordinances presented for a vote under this article and
32 not more than ten (10) days after the vote, send a certified copy of the
33 results to:
34(1) the commissioner of the department of state revenue; and
35(2) the commissioner of the department of local government
36finance;
37 in an electronic format approved by the commissioner of the
38 department of local government finance.
39     (b) Except as provided in subsection (c), this subsection applies only
40 to a county that has a local income tax council. The county auditor may
41 cease sending certified copies after the county auditor sends a certified
42 copy of results showing that members of the local income tax council
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1 have cast a majority of the votes on the local income tax council for or
2 against the proposed ordinance.
3     (c) This subsection applies only to a county with a single voting bloc
4 that proposes to increase (but not decrease) a tax rate in the county. The
5 county auditor may cease sending certified copies of the votes on the
6 local income tax council voting as a whole under section 9.5 of this
7 chapter after the county auditor sends a certified copy of results
8 showing that the individuals who sit on the fiscal bodies of the county,
9 cities, and towns that are members of the local income tax council have
10 cast a majority of the votes on the local income tax council voting as a
11 whole under section 9.5 of this chapter for or against the proposed
12 ordinance. This subsection expires May 31, 2027. 2028.
13     SECTION 11. IC 6-3.6-3-5, AS AMENDED BY P.L.223-2025,
14 SECTION 5, AND AS AMENDED BY P.L.68-2025, SECTION 106,
15 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
16 OF THE 2026 GENERAL ASSEMBLY, IS CORRECTED AND
17 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2028]:
18 Sec. 5. (a) The auditor of a county (or the fiscal officer of a
19 municipality in the case of a local income tax imposed under
20 IC 6-3.6-6-22) shall record all votes taken on ordinances presented for
21 a vote under this article and not more than ten (10) days after the vote,
22 send a certified copy of the results to:
23(1) the commissioner of the department of state revenue; and
24(2) the commissioner of the department of local government
25finance;
26 in an electronic format approved by the commissioner of the
27 department of local government finance.
28     (b) Except as provided in subsection (c), this subsection applies
29 only to a county that has a local income tax council. The county
30 auditor may cease sending certified copies after the county auditor
31 sends a certified copy of results showing that members of the local
32 income tax council have cast a majority of the votes on the local
33 income tax council for or against the proposed ordinance.
34     (c) This subsection applies only to a county with a single voting
35 bloc that proposes to increase (but not decrease) a tax rate in the
36 county. The county auditor may cease sending certified copies of the
37 votes on the local income tax council voting as a whole under section
38 9.5 of this chapter after the county auditor sends a certified copy of
39 results showing that the individuals who sit on the fiscal bodies of the
40 county, cities, and towns that are members of the local income tax
41 council have cast a majority of the votes on the local income tax
42 council voting as a whole under section 9.5 of this chapter for or
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1 against the proposed ordinance. This subsection expires May 31, 2028.
2     SECTION 12. IC 6-3.6-3-6, AS AMENDED BY P.L.223-2025,
3 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4 UPON PASSAGE]: Sec. 6. (a) This section applies to a county in
5 which the county adopting body is a local income tax council.
6     (b) In the case of a city or town that lies within more than one (1)
7 county, the county auditor of each county shall base the allocations
8 required by subsections (d) and (e) on the population of that part of the
9 city or town that lies within the county for which the allocations are
10 being made.
11     (c) Each local income tax council has a total of one hundred (100)
12 votes.
13     (d) Each county, city, or town that is a member of a local income tax
14 council is allocated a percentage of the total one hundred (100) votes
15 that may be cast. The percentage that a city or town is allocated for a
16 year equals the same percentage that the population of the city or town
17 bears to the population of the county. The percentage that the county
18 is allocated for a year equals the same percentage that the population
19 of all areas in the county not located in a city or town bears to the
20 population of the county.
21     (e) This subsection applies only to a county with a single voting
22 bloc. Each individual who sits on the fiscal body of a county, city, or
23 town that is a member of the local income tax council is allocated for
24 a year the number of votes equal to the total number of votes allocated
25 to the particular county, city, or town under subsection (d) divided by
26 the number of members on the fiscal body of the county, city, or town.
27 This subsection expires May 31, 2027. 2028.
28     (f) On or before January 1 of each year, the county auditor shall
29 certify to each member of the local income tax council the number of
30 votes, rounded to the nearest one hundredth (0.01), each member has
31 for that year.
32     (g) This subsection applies only to a county with a single voting
33 bloc. On or before January 1 of each year, in addition to the
34 certification to each member of the local income tax council under
35 subsection (f), the county auditor shall certify to each individual who
36 sits on the fiscal body of each county, city, or town that is a member of
37 the local income tax council the number of votes, rounded to the
38 nearest one hundredth (0.01), each individual has under subsection (e)
39 for that year. This subsection expires May 31, 2027. 2028.
40     SECTION 13. IC 6-3.6-3-8, AS AMENDED BY P.L.223-2025,
41 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 UPON PASSAGE]: Sec. 8. (a) This section applies to a county in
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                                    12
1 which the county adopting body is a local income tax council.
2     (b) Except as provided in subsection (e), any member of a local
3 income tax council may present an ordinance for passage. To do so, the
4 member must adopt a resolution to propose the ordinance to the local
5 income tax council and distribute a copy of the proposed ordinance to
6 the county auditor. The county auditor shall treat any proposed
7 ordinance distributed to the auditor under this section as a casting of all
8 that member's votes in favor of the proposed ordinance.
9     (c) Except as provided in subsection (f), the county auditor shall
10 deliver copies of a proposed ordinance the auditor receives to all
11 members of the local income tax council within ten (10) days after
12 receipt. Subject to subsection (d), once a member receives a proposed
13 ordinance from the county auditor, the member shall vote on it within
14 thirty (30) days after receipt.
15     (d) Except as provided in subsection (h), if, before the elapse of
16 thirty (30) days after receipt of a proposed ordinance, the county
17 auditor notifies the member that the members of the local income tax
18 council have cast a majority of the votes on the local income tax
19 council for or against the proposed ordinance the member need not
20 vote on the proposed ordinance.
21     (e) This subsection applies only to a county with a single voting bloc
22 that proposes to increase (but not decrease) a tax rate in the county. The
23 fiscal body of any county, city, or town that is a member of a local
24 income tax council may adopt a resolution to propose an ordinance to
25 increase a tax rate in the county to be voted on by the local income tax
26 council as a whole as required under section 9.5 of this chapter and
27 distribute a copy of the proposed ordinance to the county auditor. The
28 county auditor shall treat the vote tally on the resolution adopted under
29 this subsection for each individual who is a member of the fiscal body
30 of the county, city, or town as the voting record for that individual
31 either for or against the ordinance being proposed for consideration by
32 the local income tax council as a whole under section 9.5 of this
33 chapter. This subsection expires May 31, 2027. 2028.
34     (f) This subsection applies only to a county with a single voting bloc
35 that proposes to increase (but not decrease) a tax rate in the county. The
36 county auditor shall deliver copies of a proposed ordinance the auditor
37 receives under subsection (e) to the fiscal officers of all members of the
38 local income tax council (other than the member proposing the
39 ordinance under subsection (e)) within ten (10) days after receipt.
40 Subject to subsection (h), once a member receives a proposed
41 ordinance from the county auditor, the member shall vote on it within
42 thirty (30) days after receipt. This subsection expires May 31, 2027.
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                                    13
1 2028.
2     (g) This subsection applies only to a county with a single voting
3 bloc that proposes to increase (but not decrease) a tax rate in the
4 county. The fiscal body of each county, city, or town voting on a
5 resolution to propose an ordinance under subsection (e), or voting on
6 a proposed ordinance being considered by the local income tax council
7 as a whole under section 9.5 of this chapter, must take a roll call vote
8 on the resolution or the proposed ordinance. If an individual who sits
9 on the fiscal body is absent from the meeting in which a vote is taken
10 or abstains from voting on the resolution or proposed ordinance, the
11 fiscal officer of the county, city, or town shall nevertheless consider
12 that individual's vote as a "no" vote against the resolution or the
13 proposed ordinance being considered, whichever is applicable, for
14 purposes of the vote tally under this section and shall note on the vote
15 tally that the individual's "no" vote is due to absence or abstention. The
16 fiscal body of each county, city, or town shall certify the roll call vote
17 on a resolution or a proposed ordinance, either for or against, to the
18 county auditor as set forth under this chapter. This subsection expires
19 May 31, 2027. 2028.
20     (h) This subsection applies only to a county with a single voting
21 bloc that proposes to increase (but not decrease) a tax rate in the
22 county. If, before the elapse of thirty (30) days after receipt of a
23 proposed ordinance under subsection (e), the county auditor notifies
24 the member that the individuals who sit on the fiscal bodies of the
25 county, cities, and towns that are members of the local income tax
26 council have cast a majority of the votes on the local income tax
27 council for or against a proposed ordinance voting as a whole under
28 section 9.5 of this chapter, the member need not vote on the proposed
29 ordinance under subsection (e). This subsection expires May 31, 2027.
30 2028.
31     SECTION 14. IC 6-3.6-3-9.5, AS AMENDED BY P.L.68-2025,
32 SECTION 111, AND P.L.223-2025, SECTION 8, IS AMENDED TO
33 READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9.5. (a)
34 This section applies to a county:
35(1) in which the county adopting body is a local income tax
36council;
37(2) that is a county with a single voting bloc; and
38(3) that proposes to increase a tax rate in the county.
39 However, the provisions under section 9 of this chapter shall apply to
40 a county described in subdivisions (1) and (2) that proposes to decrease
41 a tax rate in the county.
42     (b) A local income tax council described in subsection (a) must vote
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                                    14
1 as a whole to exercise its authority to increase a tax rate under this
2 article.
3     (c) A resolution passed by the fiscal body of a county, city, or town
4 that is a member of the local income tax council exercises the vote of
5 each individual who sits on the fiscal body of the county, city, or town
6 on the proposed ordinance, and the individual's vote may not be
7 changed during the year.
8     (d) This section expires May 31, 2027. 2028.
9     SECTION 15. IC 6-3.6-5-7, AS ADDED BY P.L.68-2025,
10 SECTION 116, IS AMENDED TO READ AS FOLLOWS
11 [EFFECTIVE JULY 1, 2028]: Sec. 7. This chapter expires December
12 31, 2027. 2028.
13     SECTION 16. IC 6-3.6-6-2, AS AMENDED BY P.L.68-2025,
14 SECTION 118, IS AMENDED TO READ AS FOLLOWS
15 [EFFECTIVE JULY 1, 2028]: Sec. 2. (a) This section applies to all
16 counties.
17     (b) The adopting body may by ordinance and subject to subsections
18 (c) through (e) impose one (1) or more of the following component
19 rates not to exceed a total expenditure tax rate under this chapter of two
20 and nine-tenths percent (2.9%) on the adjusted gross income of
21 taxpayers who reside in the county:
22(1) A tax rate not to exceed one and two-tenths percent (1.2%)
23seven-tenths of one percent (0.7%) for general purpose revenue
24for county services (as provided in section 4 of this chapter),
25subject to subsection (c).
26(2) A tax rate not to exceed four-tenths of one percent (0.4%)
27two-tenths of one percent (0.2%) for providers of fire protection
28and emergency medical services located within the county (as
29provided in section 4.3 of this chapter), subject to subsection (c).
30(3) A tax rate not to exceed two-tenths of one percent (0.2%) for
31general purpose revenue for distribution to nonmunicipal civil
32taxing units (excluding fire protection districts) located within the
33county (as provided in section 4.5 of this chapter), subject to
34subsection (c).
35(4) A tax rate not to exceed one and two-tenths percent (1.2%)
36one and nine-tenths percent (1.9%) for general purpose revenue
37for municipal services for distribution to municipalities located
38within the county that are not eligible to adopt a municipal tax
39rate under section 22 of this chapter or that have made an election
40under section 23(b)(3) of this chapter to be treated as such.
41     (c) The combined component rates imposed by an adopting body
42 under subsection (b)(1) through (b)(3) shall not exceed one and
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                                   15
1 seven-tenths percent (1.7%). one percent (1%).
2     (d) A tax rate adopted under subsection (b)(4) may only be imposed
3 on taxpayers who do not reside in a municipality that is eligible to
4 adopt a municipal tax rate under section 22 of this chapter.
5     (e) Beginning after December 31, 2030, a tax rate imposed under
6 subsection (b) shall expire on December 31 of each calendar year. An
7 adopting body wishing to continue, increase, or decrease a tax rate in
8 the succeeding year must pass an ordinance to readopt a tax rate in
9 accordance with IC 6-3.6-3-3. This subsection applies regardless of
10 whether there is a modification in the tax rate or the component rates
11 or the rates are unchanged from the previous year.
12     SECTION 17. IC 6-3.6-6-3.1, AS ADDED BY P.L.68-2025,
13 SECTION 125, IS AMENDED TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2025 (RETROACTIVE)]: Sec. 3.1. (a) As used
15 in this section, "homestead" has the meaning set forth in
16 IC 6-1.1-12-37.
17     (b) A county fiscal body may adopt an ordinance to impose a tax
18 rate for the purpose of funding property tax homestead credits to reduce
19 the property tax liability of taxpayers who own homesteads that are:
20(1) located in the county; and
21(2) eligible for a credit under IC 6-1.1-20.6-7.5 that limits the
22taxpayer's property tax liability for the property to one percent
23(1%).
24 Revenue collected from a tax rate imposed under this section may only
25 be used to fund replacement of the county's property tax levy. Property
26 taxes imposed due to a referendum in which a majority of the voters in
27 the taxing unit imposing the property taxes approved the property taxes
28 are not eligible for a credit under this section.
29     (c) The tax rate must be in increments of one-hundredth of one
30 percent (0.01%) and may not exceed three-tenths of one percent
31 (0.3%).
32     (d) A tax imposed under this section shall be treated as property
33 taxes for all purposes. However, the department of local government
34 finance may not reduce:
35(1) any taxing unit's maximum permissible property tax levy limit
36under IC 6-1.1-18.5; or
37(2) the approved property tax levy or rate for any fund;
38 by the amount of any credits granted under this chapter.
39     (e) The homestead credits shall be applied to the net property taxes
40 due on the homestead after the application of any credit granted under
41 IC 6-1.1, including any credit granted under IC 6-1.1-20.4 and
42 IC 6-1.1-20.6.
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                                    16
1     (f) The property tax credits must be applied uniformly to provide a
2 homestead credit for homesteads in the county.
3     (g) The county auditor shall allocate the amount of revenue applied
4 as tax credits under this section to the taxing units that imposed the
5 eligible property taxes against which the credits are applied.
6     (h) The department of local government finance shall assist county
7 fiscal bodies and county auditors in calculating credit percentages and
8 amounts.
9     (i) Notwithstanding any provision to the contrary in this chapter, a
10 tax imposed under this section:
11(1) may be imposed on the adjusted gross income of taxpayers
12before January 1, 2028; 2029; and
13(2) terminates and may not be imposed on the adjusted gross
14income of taxpayers after December 31, 2027. 2028.
15     (j) This section expires January 1, 2028. 2029.
16     SECTION 18. IC 6-3.6-6-4.3, AS ADDED BY P.L.68-2025,
17 SECTION 127, IS AMENDED TO READ AS FOLLOWS
18 [EFFECTIVE JULY 1, 2028]: Sec. 4.3. (a) Revenue raised from a tax
19 rate for fire protection and emergency medical services under section
20 2(b)(2) of this chapter shall be distributed by the county to each fire
21 protection district and fire protection territory and municipal fire
22 department located within the county. At the discretion of the county
23 council, the county may distribute revenue raised from a tax rate for
24 fire protection and emergency medical services under section 2(b)(2)
25 of this chapter to municipal fire departments, township fire
26 departments and volunteer fire departments.
27     (b) Revenue raised from a tax rate for fire protection and emergency
28 medical services under section 2(b)(2) of this chapter shall be allocated
29 to each fire protection district, fire protection territory, municipal fire
30 department, and, if applicable, township fire departments and volunteer
31 fire departments, based on the following formula:
32STEP ONE: For each provider of fire protection and emergency
33medical services located within the county that is eligible to
34receive revenue under this section, determine the population
35living within the service boundaries of the provider using the
36most recent federal decennial census as certified by the provider
37to the department of local government finance prior to the
38date required by the department of local government finance.
39STEP TWO: For each provider of fire protection and emergency
40medical services located within the county that is eligible to
41receive revenue under this section, determine the number of
42square miles within the service boundaries of the provider as
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                                     17
1certified by the provider to the department of local
2government finance prior to the date required by the
3department of local government finance.
4STEP THREE: For each provider of fire protection and
5emergency medical services located within the county that is
6eligible to receive revenue under this section, determine the
7product of:
8(A) the STEP TWO amount; multiplied by
9(B) twenty (20).
10STEP FOUR: For each provider of fire protection and emergency
11medical services located within the county that is eligible to
12receive revenue under this section, determine the sum of:
13(A) the STEP ONE result; plus
14(B) the STEP THREE result.
15STEP FIVE: Determine the sum total of the STEP FOUR results
16for each provider of fire protection and emergency medical
17services located within the county that is eligible to receive
18revenue under this section.
19STEP SIX: The percentage of revenue that shall be distributed to
20each provider of fire protection and emergency medical services
21located within the county that is eligible to receive revenue under
22this section is equal to:
23(A) the STEP FOUR result for the provider; divided by
24(B) the STEP FIVE result.
25     SECTION 19. IC 6-3.6-6-6.1, AS AMENDED BY THE
26 TECHNICAL CORRECTIONS BILL OF THE 2026 GENERAL
27 ASSEMBLY, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
28 JULY 1, 2028]: Sec. 6.1. (a) Revenue raised from a tax rate for certain
29 cities and towns under section 2(b)(4) of this chapter may be
30 distributed by the county to those cities and towns subject to the
31 provisions of this section.
32     (b) Subject to subsection (g), the revenue raised from a tax rate
33 under section 2(b)(4) of this chapter shall be allocated to the cities and
34 towns based on the population of the city or the population of the town,
35 whichever is applicable, compared to the population of all the cities or
36 the population of all the towns, whichever is applicable, that are
37 eligible for a distribution, subject to subsection (d). For purposes of this
38 determination, if the boundaries of a city or town are located in more
39 than one (1) county, only the portion of the population of the city or
40 town that is located within the county imposing the tax rate under
41 section 2(b)(4) of this chapter shall be considered.
42     (c) The money may be used by the city or town fiscal body for any
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                                      18
1 of the purposes of the city or town, including public safety (as defined
2 in IC 6-3.6-2-14) and economic development purposes described in
3 IC 6-3.6-10. The city or town fiscal body may pledge its general
4 purpose revenue to the payment of bonds or to lease payments as set
5 forth in this chapter.
6     (d) An eligible city or town wishing to receive a share of revenue
7 under this section in a year must adopt a resolution requesting the
8 distribution from the county and must provide a certified copy of the
9 resolution to the adopting body not later than July 1 of the year
10 immediately preceding the distribution year. Not later than August 1 of
11 the year immediately preceding the distribution year, the adopting body
12 shall hold a public hearing on the resolution requesting the distribution
13 and provide the public with notice of the time and place where the
14 public hearing will be held. The notice must be given in accordance
15 with IC 5-3-1 and include a description of the resolution requesting the
16 distribution from the county.
17     (e) Subject to subsection (g), if an eligible city or town adopts a
18 resolution under this subsection subsection (f) and provides the
19 resolution to the adopting body as set forth in this that subsection, the
20 county shall distribute to the eligible city or town unit an amount of
21 revenue raised from the tax rate under section 2(b)(4) of this chapter
22 for the distribution year as set forth in subsection (f).
23     (f) Subject to subsection (g), if one (1) or more, but not all, eligible
24 cities or towns adopt a resolution under subsection (d) requesting a
25 distribution in a given year, the county may either distribute the total
26 amount of revenue raised from the tax rate under section 2(b)(4) of this
27 chapter to only those eligible cities or towns that have provided a
28 resolution request, or the county may distribute the total amount of
29 revenue raised from a tax rate under section 2(b)(4) of this chapter to
30 all eligible cities or towns as set forth in this section. If no eligible city
31 or town adopts a resolution to request a distribution in a given year, the
32 county may retain the revenue raised from a tax rate for the eligible city
33 or town for that year and use the revenue as general purpose revenue
34 for the county under section 4 of this chapter.
35     (g) Notwithstanding any provision to the contrary in this section, if
36 an adopting body that imposes a tax rate of one and two-tenths percent
37 (1.2%) seven-tenths of one percent (0.7%) under section 2(b)(1) of
38 this chapter subsequently adopts an ordinance to concurrently impose
39 a tax rate under section 2(b)(4) of this chapter,
40(1) seventy-five percent (75%) one hundred percent (100%) of
41the revenue received from the tax rate imposed under section
422(b)(4) of this chapter shall may be retained by the county and
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                                    19
1may be used for the purposes described in section 4 of this
2chapter. and
3(2) twenty-five percent (25%) of the revenue received from the
4tax rate imposed under section 2(b)(4) of this chapter shall be
5distributed among the eligible cities and towns as set forth in this
6section and may be used for the purposes set forth in this section.
7 However, the adopting body may, by ordinance, determine to allocate
8 any percentage of the revenue that would otherwise be retained by the
9 county under subdivision (1) to instead be allocated among the eligible
10 cities and towns under subdivision (2).
11     SECTION 20. IC 6-3.6-6-21.3, AS AMENDED BY P.L.68-2025,
12 SECTION 146, IS AMENDED TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2028]: Sec. 21.3. (a) This section applies to
14 distributions of revenue before January 1, 2028. 2031. This section:
15(1) does not apply to:
16(A) distributions made under this chapter to a civil taxing unit
17for fire protection services within a fire protection territory
18established under IC 36-8-19; or
19(B) distributions of revenue under section 9 of this chapter
20(before its repeal); and
21(2) applies only to the following:
22(A) Any allocation or distribution of revenue under section
233(a)(2) of this chapter (as in effect before July 1, 2027) 2028)
24that is made on the basis of property tax levies in counties that
25formerly imposed a tax under IC 6-3.5-1.1 (before its repeal on
26January 1, 2017).
27(B) Any allocation or distribution of revenue under section
283(a)(3) of this chapter (as in effect before July 1, 2027) 2028)
29that is made on the basis of property tax levies in counties that
30formerly imposed a tax under IC 6-3.5-6 (before its repeal on
31January 1, 2017).
32     (b) Subject to subsection (a), if two (2) or more:
33(1) school corporations; or
34(2) civil taxing units;
35 of an adopting county merge or consolidate to form a single school
36 corporation or civil taxing unit, the school corporation or civil taxing
37 unit that is in existence on January 1 of the current year is entitled to
38 the combined pro rata distribution of the revenue under section 3(a)(2)
39 or 3(a)(3) (as in effect before July 1, 2027) 2028) of this chapter (as
40 appropriate) allocated to each applicable school corporation or civil
41 taxing unit in existence on January 1 of the immediately preceding
42 calendar year prior to the merger or consolidation.
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                                    20
1     (c) The department of local government finance shall make
2 adjustments to civil taxing units in accordance with IC 6-1.1-18.5-7.
3     SECTION 21. IC 6-3.6-6-22, AS ADDED BY P.L.68-2025,
4 SECTION 147, IS AMENDED TO READ AS FOLLOWS
5 [EFFECTIVE JULY 1, 2028]: Sec. 22. (a) As used in this section,
6 "municipality" means only a city or town that:
7(1) has a population of three thousand five hundred (3,500) two
8thousand (2,000) or more; and
9(2) in the case of a city or town whose population decreased in the
10most recent federal decennial census from three thousand five
11hundred (3,500) two thousand (2,000) or more to less than three
12thousand five hundred (3,500), two thousand (2,000), has elected
13by ordinance to continue to use its previous population of three
14thousand five hundred (3,500) two thousand (2,000) or more as
15set forth in section 23(b)(2) of this chapter for purposes of the
16allocation determination under section 6.1 of this chapter.
17 The term does not include a city or town that has made an election
18 under section 23(b)(3) of this chapter.
19     (b) Beginning after December 31, 2027, 2028, the fiscal body of a
20 municipality may by ordinance and subject to subsection (e), impose
21 a local income tax rate on the adjusted gross income of local taxpayers
22 in the municipality that does not exceed one and two-tenths percent
23 (1.2%). one and nine-tenths percent (1.9%).
24     (c) The following apply if a municipality imposes a local income tax
25 rate under this section:
26(1) A local income tax rate imposed by a municipality under this
27section applies only to local taxpayers within the territory of the
28municipality.
29(2) The local income tax is imposed in addition to a tax imposed
30by the county in which the municipality is located in accordance
31with IC 6-3.6-4-1(a) and IC 6-3.6-4-1(c).
32(3) The following provisions of this article apply to a local income
33tax rate imposed by a municipality under subsection (b):
34(A) IC 6-3.6-3 (adoption of the tax), including the effective
35date of an ordinance under IC 6-3.6-3-3.3.
36(B) IC 6-3.6-4 (imposition of the tax), except that IC 6-3.6-4-2
37and IC 6-3.6-4-3 do not apply.
38(C) IC 6-3.6-8 (administration of the tax).
39(4) A local income tax rate imposed by a municipality shall apply
40to professional athletes who compete in the municipality, unless
41exempted under IC 6-3-2-27.5 or other provision of law.
42     (d) The amount of the tax revenue that is from the local income tax
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                                   21
1 rate imposed under this section and that is collected for a calendar year
2 shall be treated as general purpose revenue and must be distributed to
3 the fiscal officer of the municipality that imposed the tax before July 1
4 of the next calendar year.
5     (e) Beginning after December 31, 2030, a tax rate imposed under
6 subsection (b) shall expire on December 31 of each calendar year. A
7 municipality wishing to continue, increase, or decrease a tax rate in the
8 succeeding year must pass an ordinance to readopt a tax rate in
9 accordance with IC 6-3.6-3-3.3. This subsection applies regardless of
10 whether there is a modification in the tax rate or the rate is unchanged
11 from the previous year.
12     SECTION 22. IC 6-3.6-6-23, AS ADDED BY P.L.68-2025,
13 SECTION 148, IS AMENDED TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2028]: Sec. 23. (a) This section applies in
15 determining the population of a city or town for the purposes of this
16 chapter.
17     (b) The following apply:
18(1) Except as provided in subdivisions (2) and (3), the population
19of a city or town is the population of the city or town that is
20reported by the 2020 federal decennial census.
21(2) Beginning after 2030, if the population of a city or town:
22(A) increases from a population of less than three thousand
23five hundred (3,500), two thousand (2,000), as reported by
24the immediately preceding federal decennial census, to a
25population of three thousand five hundred (3,500) two
26thousand (2,000) or more, as reported by the most recent
27federal decennial census, or, if applicable, any corrected
28population count (as defined in IC 1-1-3.5-1.5) issued for the
29city or town in the year succeeding the most recent federal
30decennial census; or
31(B) decreases from a population of three thousand five
32hundred (3,500) two thousand (2,000) or more, as reported by
33the immediately preceding federal decennial census, to a
34population of less than three thousand five hundred (3,500),
35two thousand (2,000), as reported by the most recent federal
36decennial census, or, if applicable, any corrected population
37count (as defined in IC 1-1-3.5-1.5) issued for the city or town
38in the year succeeding the most recent federal decennial
39census;
40the fiscal body of the city or town may adopt an ordinance on or
41before September 1 of the calendar year immediately succeeding
42the most recent federal decennial census to continue to use the
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                                    22
1population of the city or town as reported by the immediately
2preceding federal decennial census and the resulting
3determination for the city or town under section 22 of this chapter,
4notwithstanding the increase or decrease in its population as
5reported by the most recent federal decennial census as described
6in this subdivision. An ordinance adopted under this subdivision
7shall take effect on January 1 of the calendar year that
8immediately succeeds the year in which the ordinance is adopted.
9The fiscal officer of the city or town shall provide a certified copy
10of an ordinance adopted under this subdivision to the department
11of local government finance.
12(3) This subdivision applies only to cities and towns with a
13population of more than three thousand five hundred (3,500) but
14less than seven thousand (7,000). two thousand (2,000).
15Notwithstanding any other provision, a fiscal body of a city or
16town may adopt an ordinance to elect to be treated as if the city's
17or town's population is less than three thousand five hundred
18(3,500) two thousand (2,000) for purposes of a county local
19income tax rate and distribution under this chapter. An ordinance
20adopted under this subdivision shall take effect on January 1 of
21the calendar year that immediately succeeds the year in which the
22ordinance is adopted. The fiscal officer of the city or town shall
23provide a certified copy of an ordinance adopted under this
24subdivision to the department of local government finance. An
25ordinance adopted by a city or town under this subdivision is not
26revocable and shall not expire following the next federal
27decennial census.
28    SECTION 23. IC 6-3.6-9-1, AS AMENDED BY P.L.68-2025,
29 SECTION 154, IS AMENDED TO READ AS FOLLOWS
30 [EFFECTIVE JULY 1, 2028]: Sec. 1. (a) The budget agency shall
31 maintain an accounting for each county imposing a tax based on annual
32 returns filed by or for county taxpayers. Any undistributed amounts so
33 accounted for shall be held in reserve for the respective counties
34 separate from the state general fund.
35    (b) Undistributed amounts shall be invested by the treasurer of state
36 and the income earned shall be credited to the counties based on each
37 county's undistributed amount.
38    (c) This section expires December 31, 2027. 2030.
39    SECTION 24. IC 6-3.6-9-10, AS AMENDED BY P.L.68-2025,
40 SECTION 164, IS AMENDED TO READ AS FOLLOWS
41 [EFFECTIVE JULY 1, 2028]: Sec. 10. The budget agency shall also
42 certify information concerning the part of the certified distribution that
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                                   23
1 is attributable to each of the following:
2(1) The tax rate imposed under IC 6-3.6-5 (before its expiration).
3This subdivision expires July 1, 2028. 2031.
4(2) The tax rate imposed under IC 6-3.6-6, separately stating:
5(A) the part of the distribution attributable to a tax rate
6imposed under IC 6-3.6-6-2.5 (before its repeal);
7(B) the part of the distribution attributable to a tax rate
8imposed under IC 6-3.6-6-2.6 (before its repeal);
9(C) the part of the distribution attributable to a tax rate
10imposed under IC 6-3.6-6-2.7 (before its repeal);
11(D) the part of the distribution attributable to a tax rate
12imposed under IC 6-3.6-6-2.8 (before its repeal); and
13(E) the part of the distribution attributable to a tax rate
14imposed under IC 6-3.6-6-2.9 (before its repeal).
15(3) Each tax rate imposed under IC 6-3.6-7.
16(4) In the case of Marion County, the local income taxes paid by
17local taxpayers described in IC 6-3.6-2-13(3).
18 The amount certified shall be adjusted to reflect any adjustment in the
19 certified distribution under this chapter.
20     SECTION 25. IC 6-3.6-9-12, AS AMENDED BY P.L.68-2025,
21 SECTION 166, IS AMENDED TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2028]: Sec. 12. One-twelfth (1/12) of each
23 adopting county's certified distribution for a calendar year shall be
24 distributed:
25(1) before January 1, 2028, 2031, from its trust account
26established under this chapter; and
27(2) after December 31, 2027, 2030, from the state and local
28income tax holding account established under this chapter;
29 to the appropriate county treasurer on the first regular business day of
30 each month of that calendar year.
31     SECTION 26. IC 6-3.6-9-13, AS AMENDED BY P.L.68-2025,
32 SECTION 167, IS AMENDED TO READ AS FOLLOWS
33 [EFFECTIVE JULY 1, 2028]: Sec. 13. (a) All distributions from a trust
34 account established under this chapter shall be made by warrants issued
35 by the state comptroller to the treasurer of state ordering the
36 appropriate payments.
37     (b) This section expires December 31, 2027. 2030.
38     SECTION 27. IC 6-3.6-9-17.5, AS ADDED BY P.L.68-2025,
39 SECTION 171, IS AMENDED TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2028]: Sec. 17.5. After December 31, 2027,
41 2030, the county's certified distribution amount for 2028 2031 shall be
42 maintained in the accounting for the county under section 21 of this
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1 chapter and transferred as set forth in section 21 of this chapter.
2     SECTION 28. IC 6-3.6-9-21, AS ADDED BY P.L.68-2025,
3 SECTION 173, IS AMENDED TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2028]: Sec. 21. (a) The budget agency shall
5 maintain an accounting for each county imposing a tax based on annual
6 returns filed by or for county taxpayers. Beginning after December 31,
7 2027, 2030, any undistributed amounts so accounted shall be held for
8 purposes of the state and local income tax holding account.
9     (b) After December 1 but before December 31 of each year, the
10 budget agency shall present to the budget committee a report of the
11 following:
12(1) An estimate of the monthly certified distribution amounts for
13the immediately succeeding calendar year.
14(2) A description of the method used to determine the monthly
15estimates under subdivision (1).
16     (c) Beginning in 2028, 2031, and in each calendar year thereafter,
17 the budget agency shall each month transfer to the state and local
18 income tax holding account the amount determined for the month
19 under subsection (b)(1) for distribution under this chapter.
20     (d) In the case of a county that imposes a tax rate under IC 6-3.6-6-2
21 or a municipality that imposes a tax rate under IC 6-3.6-6-22 beginning
22 after December 31, 2027, 2030, the budget agency shall withhold, from
23 each of the first three (3) annual certified distributions resulting from
24 the tax rate, an amount equal to five percent (5%) of the county's or
25 municipality's, as applicable, annual certified distribution resulting
26 from the tax rate. The amounts withheld under this subsection shall be
27 credited to the respective county's or municipality's trust account.
28     SECTION 29. IC 6-3.6-10-9, AS ADDED BY P.L.68-2025,
29 SECTION 178, IS AMENDED TO READ AS FOLLOWS
30 [EFFECTIVE MAY 10, 2025 (RETROACTIVE)]: Sec. 9. (a)
31 Notwithstanding any other law, for bonds, leases, or any other
32 obligations incurred after May 9, 2025, a county, city, town, and any
33 other taxing unit may not pledge for payment from tax revenue
34 received under this article an amount that exceeds an amount equal to
35 twenty-five percent (25%) of the taxing unit's certified distribution
36 under this article.
37     (b) This section expires July 1, 2027. 2030.
38     SECTION 30. IC 6-3.6-11-3, AS AMENDED BY P.L.68-2025,
39 SECTION 180, IS AMENDED TO READ AS FOLLOWS
40 [EFFECTIVE JULY 1, 2028]: Sec. 3. (a) This section applies to Lake
41 County's categorizations, allocations, and distributions under IC 6-3.6-5
42 (before its expiration).
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1    (b) The rate under the former tax in Lake County that was used for
2 any of the following shall be categorized under IC 6-3.6-5 (before its
3 expiration), and the Lake County council may adopt an ordinance
4 providing that the revenue from the tax rate under this section may be
5 used for any of the following:
6(1) To reduce all property tax levies imposed by the county by the
7granting of property tax replacement credits against those
8property tax levies.
9(2) To provide local property tax replacement credits in Lake
10County in the following manner:
11(A) The tax revenue under this section that is collected from
12taxpayers within a particular municipality in Lake County (as
13determined by the department of state revenue based on the
14department's best estimate) shall be used only to provide a
15local property tax credit against property taxes imposed by that
16municipality.
17(B) The tax revenue under this section that is collected from
18taxpayers within the unincorporated area of Lake County (as
19determined by the department of state revenue) shall be used
20only to provide a local property tax credit against property
21taxes imposed by the county. The local property tax credit for
22the unincorporated area of Lake County shall be available only
23to those taxpayers within the unincorporated area of the
24county.
25(3) To provide property tax credits in the following manner:
26(A) Sixty percent (60%) of the tax revenue shall be used as
27provided in subdivision (2).
28(B) Forty percent (40%) of the tax revenue shall be used to
29provide property tax replacement credits against property tax
30levies of the county and each township and municipality in the
31county. The percentage of the tax revenue distributed under
32this item that shall be used as credits against the county's
33levies or against a particular township's or municipality's levies
34is equal to the percentage determined by dividing the
35population of the county, township, or municipality by the sum
36of the total population of the county, each township in the
37county, and each municipality in the county.
38 The Lake County council shall determine whether the credits under
39 subdivision (1), (2), or (3) shall be provided to homesteads, to all
40 qualified residential property, or to all taxpayers. The department of
41 local government finance, with the assistance of the budget agency,
42 shall certify to the county auditor and the fiscal body of the county and
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1 each township and municipality in the county the amount of property
2 tax credits under this section. The tax revenue under this section that
3 is used to provide credits under this section shall be treated for all
4 purposes as property tax levies but shall not be considered for purposes
5 of computing the maximum permissible property tax levy under
6 IC 6-1.1-18.5-3 or the credit under IC 6-1.1-20.6.
7     (c) Any ordinance adopted under subsection (b) expires December
8 31, 2027. 2028.
9     (d) This section expires July 1, 2028. 2031.
10     SECTION 31. IC 36-8-19-7.5, AS AMENDED BY P.L.68-2025,
11 SECTION 241, IS AMENDED TO READ AS FOLLOWS
12 [EFFECTIVE JANUARY 1, 2025 (RETROACTIVE)]: Sec. 7.5. (a)
13 This section applies to:
14(1) local income tax distributions; and
15(2) excise tax distributions;
16 made after December 31, 2009.
17     (b) Except as provided in subsection (c), for purposes of allocating
18 local income tax distributions that are based on a taxing unit's
19 allocation amount before January 1, 2028, 2031, or that an adopting
20 body allocates under IC 6-3.6-6 to economic development before
21 January 1, 2028, 2031, or excise tax distributions that are distributed
22 based on the amount of a taxing unit's property tax levies, each
23 participating unit in a territory is considered to have imposed a part of
24 the property tax levy imposed for the territory. The part of the property
25 tax levy imposed for the territory for a particular year that shall be
26 attributed to a participating unit is equal to the amount determined in
27 the following STEPS:
28STEP ONE: Determine the total amount of all property taxes
29imposed by the participating unit in the year before the year in
30which a property tax levy was first imposed for the territory.
31STEP TWO: Determine the sum of the STEP ONE amounts for
32all participating units.
33STEP THREE: Divide the STEP ONE result by the STEP TWO
34result.
35STEP FOUR: Multiply the STEP THREE result by the property
36tax levy imposed for the territory for the particular year.
37     (c) This subsection applies to a determination under subsection (b)
38 made in calendar years 2018, 2019, and 2020. The department of local
39 government finance may, for distributions made in calendar year 2022,
40 adjust the allocation amount determined under subsection (b) to correct
41 for any clerical or mathematical errors made in any determination for
42 calendar year 2018, 2019, or 2020, as applicable, including the
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1 allocation amount for any taxing unit whose distribution was affected
2 by the clerical or mathematical error in those years. The department of
3 local government finance may apply the adjustment to the allocation
4 amount for a taxing unit over a period not to exceed ten (10) years in
5 order to offset the effect of the adjustment on the distribution.
6    (d) This subsection applies to a territory established by an ordinance
7 or a resolution adopted under this chapter after December 31, 2024.
8 Before additional revenue from a local income tax rate may be
9 allocated to the provider unit of a new territory due to an increased
10 property tax levy resulting from the establishment of the territory, the
11 county fiscal body must adopt an ordinance or resolution approving the
12 allocation.
13    SECTION 32. [EFFECTIVE UPON PASSAGE] (a)
14 Notwithstanding the effective date of the following sections
15 amended by P.L.68-2025 (SEA 1-2025), the effective date for these
16 sections is July 1, 2028, and not July 1, 2027:
17(1) IC 5-1-14-14, as amended by P.L.68-2025 (SEA 1-2025),
18SECTION 2.
19(2) IC 5-16-9-3, as amended by P.L.68-2025 (SEA 1-2025),
20SECTION 4.
21(3) IC 6-1.1-10.3-3, as amended by P.L.68-2025 (SEA 1-2025),
22SECTION 16 and as amended by this act.
23(4) IC 6-1.1-10.3-5, as amended by P.L.68-2025 (SEA 1-2025),
24SECTION 17.
25(5) IC 6-1.1-10.3-7, as amended by P.L.68-2025 (SEA 1-2025),
26SECTION 18.
27(6) IC 6-3-2-27.5, as amended by P.L.68-2025 (SEA 1-2025),
28SECTION 86.
29(7) IC 6-3.5-4-1, as amended by P.L.68-2025 (SEA 1-2025),
30SECTION 87.
31(8) IC 6-3.5-4-1.1, as amended by P.L.68-2025 (SEA 1-2025),
32SECTION 88.
33(9) IC 6-3.5-5-1, as amended by P.L.68-2025 (SEA 1-2025),
34SECTION 89.
35(10) IC 6-3.5-5-1.1, as amended by P.L.68-2025 (SEA 1-2025),
36SECTION 90.
37(11) IC 6-3.6-1-1, as amended by P.L.68-2025 (SEA 1-2025),
38SECTION 91.
39(12) IC 6-3.6-1-1.5, as amended by P.L.68-2025 (SEA 1-2025),
40SECTION 92 and as amended by this act.
41(13) IC 6-3.6-1-3, as amended by P.L.68-2025 (SEA 1-2025),
42SECTION 93 and as amended by this act.
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1(14) IC 6-3.6-1-4, as amended by P.L.68-2025 (SEA 1-2025),
2SECTION 94.
3(15) IC 6-3.6-2-5, as amended by P.L.68-2025 (SEA 1-2025),
4SECTION 97.
5(16) IC 6-3.6-3-1, as amended by P.L.68-2025 (SEA 1-2025),
6SECTION 102.
7(17) IC 6-3.6-3-3, as amended by P.L.68-2025 (SEA 1-2025),
8SECTION 103 and as amended by this act.
9(18) IC 6-3.6-3-4, as amended by P.L.68-2025 (SEA 1-2025),
10SECTION 105 and as amended by this act.
11(19) IC 6-3.6-3-5, as amended by P.L.68-2025 (SEA 1-2025),
12SECTION 106.
13(20) IC 6-3.6-6-2, as amended by P.L.68-2025 (SEA 1-2025),
14SECTION 118 and as amended by this act.
15(21) IC 6-3.6-6-3, as amended by P.L.68-2025 (SEA 1-2025),
16SECTION 124.
17(22) IC 6-3.6-6-4, as amended by P.L.68-2025 (SEA 1-2025),
18SECTION 126.
19(23) IC 6-3.6-6-8, as amended by P.L.68-2025 (SEA 1-2025),
20SECTION 130.
21(24) IC 6-3.6-6-8.5, as amended by P.L.68-2025 (SEA 1-2025),
22SECTION 131.
23(25) IC 6-3.6-6-9.5, as amended by P.L.68-2025 (SEA 1-2025),
24SECTION 133.
25(26) IC 6-3.6-6-17, as amended by P.L.68-2025 (SEA 1-2025),
26SECTION 140.
27(27) IC 6-3.6-6-18, as amended by P.L.68-2025 (SEA 1-2025),
28SECTION 141.
29(28) IC 6-3.6-6-19, as amended by P.L.68-2025 (SEA 1-2025),
30SECTION 142.
31(29) IC 6-3.6-6-21, as amended by P.L.68-2025 (SEA 1-2025),
32SECTION 144.
33(30) IC 6-3.6-6-21.3, as amended by P.L.68-2025 (SEA
341-2025), SECTION 146 and as amended by this act.
35(31) IC 6-3.6-7-9, as amended by P.L.68-2025 (SEA 1-2025),
36SECTION 149.
37(32) IC 6-3.6-7-28, as amended by P.L.68-2025 (SEA 1-2025),
38SECTION 150.
39(33) IC 6-3.6-8-4, as amended by P.L.68-2025 (SEA 1-2025),
40SECTION 152.
41(34) IC 6-3.6-9-1, as amended by P.L.68-2025 (SEA 1-2025),
42SECTION 154 and as amended by this act.
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1(35) IC 6-3.6-9-4, as amended by P.L.68-2025 (SEA 1-2025),
2SECTION 156.
3(36) IC 6-3.6-9-4.1, as amended by P.L.68-2025 (SEA 1-2025),
4SECTION 157.
5(37) IC 6-3.6-9-5, as amended by P.L.68-2025 (SEA 1-2025),
6SECTION 158.
7(38) IC 6-3.6-9-6, as amended by P.L.68-2025 (SEA 1-2025),
8SECTION 159.
9(39) IC 6-3.6-9-7, as amended by P.L.68-2025 (SEA 1-2025),
10SECTION 160.
11(40) IC 6-3.6-9-9, as amended by P.L.68-2025 (SEA 1-2025),
12SECTION 163.
13(41) IC 6-3.6-9-10, as amended by P.L.68-2025 (SEA 1-2025),
14SECTION 164 and as amended by this act.
15(42) IC 6-3.6-9-11, as amended by P.L.68-2025 (SEA 1-2025),
16SECTION 165.
17(43) IC 6-3.6-9-12, as amended by P.L.68-2025 (SEA 1-2025),
18SECTION 166 and as amended by this act.
19(44) IC 6-3.6-9-13, as amended by P.L.68-2025 (SEA 1-2025),
20SECTION 167 and as amended by this act.
21(45) IC 6-3.6-9-16, as amended by P.L.68-2025 (SEA 1-2025),
22SECTION 170.
23(46) IC 6-3.6-11-3, as amended by P.L.68-2025 (SEA 1-2025),
24SECTION 180 and as amended by this act.
25(47) IC 6-9-10.5-8, as amended by P.L.68-2025 (SEA 1-2025),
26SECTION 190.
27(48) IC 8-18-22-6, as amended by P.L.68-2025 (SEA 1-2025),
28SECTION 195.
29(49) IC 8-22-3.5-9, as amended by P.L.68-2025 (SEA 1-2025),
30SECTION 196.
31(50) IC 12-20-25-34, as amended by P.L.68-2025 (SEA
321-2025), SECTION 197.
33(51) IC 12-20-25-35, as amended by P.L.68-2025 (SEA
341-2025), SECTION 198.
35(52) IC 36-7-14-39, as amended by P.L.68-2025 (SEA 1-2025),
36SECTION 234.
37(53) IC 36-7-15.1-26, as amended by P.L.68-2025 (SEA
381-2025), SECTION 235.
39(54) IC 36-7-15.1-53, as amended by P.L.68-2025 (SEA
401-2025), SECTION 236.
41(55) IC 36-7-30-25, as amended by P.L.68-2025 (SEA 1-2025),
42SECTION 237.
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1      (56) IC 36-7-30.5-30, as amended by P.L.68-2025 (SEA
2      1-2025), SECTION 238.
3      (57) IC 36-7.5-4-2.5, as amended by P.L.68-2025 (SEA
4      1-2025), SECTION 239.
5      (58) IC 36-8-19-8, as amended by P.L.68-2025 (SEA 1-2025),
6      SECTION 242.
7    (b) Notwithstanding the effective date of the following sections
8 amended by P.L.68-2025 (SEA 1-2025), the effective date for these
9 sections is January 1, 2029, and not January 1, 2028:
10      (1) IC 6-1.1-18.5-3, as amended by P.L.68-2025 (SEA 1-2025),
11      SECTION 60.
12      (2) IC 6-3.6-2-2, as amended by P.L.68-2025 (SEA 1-2025),
13      SECTION 95.
14      (3) IC 6-3.6-2-13, as amended by P.L.68-2025 (SEA 1-2025),
15      SECTION 100.
16      (4) IC 6-3.6-2-15, as amended by P.L.68-2025 (SEA 1-2025),
17      SECTION 101.
18      (5) IC 6-3.6-4-1, as amended by P.L.68-2025 (SEA 1-2025),
19      SECTION 113.
20      (6) IC 6-3.6-4-2, as amended by P.L.68-2025 (SEA 1-2025),
21      SECTION 114.
22      (7) IC 6-3.6-4-3, as amended by P.L.68-2025 (SEA 1-2025),
23      SECTION 115.
24      (8) IC 6-3.6-8-3, as amended by P.L.68-2025 (SEA 1-2025),
25      SECTION 151.
26      (9) IC 6-3.6-8-5, as amended by P.L.68-2025 (SEA 1-2025),
27      SECTION 153.
28      (10) IC 6-3.6-10-2, as amended by P.L.68-2025 (SEA 1-2025),
29      SECTION 174.
30      (11) IC 6-3.6-10-3, as amended by P.L.68-2025 (SEA 1-2025),
31      SECTION 175.
32      (12) IC 6-3.6-10-5, as amended by P.L.68-2025 (SEA 1-2025),
33      SECTION 176.
34      (13) IC 6-3.6-10-6, as amended by P.L.68-2025 (SEA 1-2025),
35      SECTION 177.
36      (14) IC 6-3.6-11-4, as amended by P.L.68-2025 (SEA 1-2025),
37      SECTION 181.
38      (15) IC 6-3.6-11-5.5, as amended by P.L.68-2025 (SEA
39      1-2025), SECTION 182.
40      (16) IC 6-3.6-11-6, as amended by P.L.68-2025 (SEA 1-2025),
41      SECTION 183.
42      (17) IC 6-3.6-11-7, as amended by P.L.68-2025 (SEA 1-2025),
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1      SECTION 184.
2      (18) IC 6-3.6-11-7.5, as amended by P.L.68-2025 (SEA
3      1-2025), SECTION 185.
4    (c) Notwithstanding the effective date of the following sections
5 added by P.L.68-2025 (SEA 1-2025), the effective date for these
6 sections is July 1, 2028, and not July 1, 2027:
7      (1) IC 6-3.6-3-3.3, as added by P.L.68-2025 (SEA 1-2025),
8      SECTION 104.
9      (2) IC 6-3.6-5-7, as added by P.L.68-2025 (SEA 1-2025),
10      SECTION 116.
11      (3) IC 6-3.6-6-0.5, as added by P.L.68-2025 (SEA 1-2025),
12      SECTION 117.
13      (4) IC 6-3.6-6-4.3, as added by P.L.68-2025 (SEA 1-2025),
14      SECTION 127 and as amended by this act.
15      (5) IC 6-3.6-6-4.5, as added by P.L.68-2025 (SEA 1-2025),
16      SECTION 128.
17      (6) IC 6-3.6-6-6.1, as added by P.L.68-2025 (SEA 1-2025),
18      SECTION 129.
19      (7) IC 6-3.6-6-22, as amended by P.L.68-2025 (SEA 1-2025),
20      SECTION 147 and as amended by this act.
21      (8) IC 6-3.6-6-23, as amended by P.L.68-2025 (SEA 1-2025),
22      SECTION 148 and as amended by this act.
23      (9) IC 6-3.6-9-1.1, as added by P.L.68-2025 (SEA 1-2025),
24      SECTION 155.
25      (10) IC 6-3.6-9-17.5, as added by P.L.68-2025 (SEA 1-2025),
26      SECTION 171 and as amended by this act.
27      (11) IC 6-3.6-9-20, as added by P.L.68-2025 (SEA 1-2025),
28      SECTION 172.
29      (12) IC 6-3.6-9-21, as added by P.L.68-2025 (SEA 1-2025),
30      SECTION 173 and as amended by this act.
31    (d) Notwithstanding the effective date of the following sections
32 repealed by P.L.68-2025 (SEA 1-2025), the effective date for these
33 sections is July 1, 2028, and not July 1, 2027:
34      (1) IC 6-1.1-10.3-2, as repealed by P.L.68-2025 (SEA 1-2025),
35      SECTION 15.
36      (2) IC 6-3.6-2-4, as repealed by P.L.68-2025 (SEA 1-2025),
37      SECTION 96.
38      (3) IC 6-3.6-2-12, as repealed by P.L.68-2025 (SEA 1-2025),
39      SECTION 99.
40      (4) IC 6-3.6-3-6, as repealed by P.L.68-2025 (SEA 1-2025),
41      SECTION 107.
42      (5) IC 6-3.6-3-7, as repealed by P.L.68-2025 (SEA 1-2025),
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1      SECTION 108.
2      (6) IC 6-3.6-3-8, as repealed by P.L.68-2025 (SEA 1-2025),
3      SECTION 109.
4      (7) IC 6-3.6-3-9, as repealed by P.L.68-2025 (SEA 1-2025),
5      SECTION 110.
6      (8) IC 6-3.6-3-10, as repealed by P.L.68-2025 (SEA 1-2025),
7      SECTION 112.
8      (9) IC 6-3.6-6-9, as repealed by P.L.68-2025 (SEA 1-2025),
9      SECTION 132.
10      (10) IC 6-3.6-6-10, as repealed by P.L.68-2025 (SEA 1-2025),
11      SECTION 134.
12      (11) IC 6-3.6-6-11, as repealed by P.L.68-2025 (SEA 1-2025),
13      SECTION 135.
14      (12) IC 6-3.6-6-12, as repealed by P.L.68-2025 (SEA 1-2025),
15      SECTION 136.
16      (13) IC 6-3.6-6-14, as repealed by P.L.68-2025 (SEA 1-2025),
17      SECTION 137.
18      (14) IC 6-3.6-6-15, as repealed by P.L.68-2025 (SEA 1-2025),
19      SECTION 138.
20      (15) IC 6-3.6-6-16, as repealed by P.L.68-2025 (SEA 1-2025),
21      SECTION 139.
22      (16) IC 6-3.6-6-20, as repealed by P.L.68-2025 (SEA 1-2025),
23      SECTION 143.
24      (17) IC 6-3.6-6-21.2, as repealed by P.L.68-2025 (SEA 1-2025),
25      SECTION 145.
26      (18) IC 6-3.6-9-8, as repealed by P.L.68-2025 (SEA 1-2025),
27      SECTION 161.
28      (19) IC 6-3.6-9-8.5, as repealed by P.L.68-2025 (SEA 1-2025),
29      SECTION 162.
30      (20) IC 6-3.6-9-14, as repealed by P.L.68-2025 (SEA 1-2025),
31      SECTION 168.
32    (e) Notwithstanding the effective date of the following sections
33 repealed by P.L.68-2025 (SEA 1-2025), the effective date for these
34 sections is January 1, 2029, and not January 1, 2028:
35      (1) IC 6-3.6-6-2.5, as repealed by P.L.68-2025 (SEA 1-2025),
36      SECTION 119.
37      (2) IC 6-3.6-6-2.6, as repealed by P.L.68-2025 (SEA 1-2025),
38      SECTION 120.
39      (3) IC 6-3.6-6-2.7, as repealed by P.L.68-2025 (SEA 1-2025),
40      SECTION 121.
41      (4) IC 6-3.6-6-2.8, as repealed by P.L.68-2025 (SEA 1-2025),
42      SECTION 122.
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1(5) IC 6-3.6-6-2.9, as repealed by P.L.68-2025 (SEA 1-2025),
2SECTION 123.
3(6) IC 6-3.6-9-15, as repealed by P.L.68-2025 (SEA 1-2025),
4SECTION 169.
5(7) IC 6-3.6-11-1, as repealed by P.L.68-2025 (SEA 1-2025),
6SECTION 179.
7    (f) The revisor of statutes shall print the Indiana Code to
8 incorporate the effective date changes to the sections of
9 P.L.68-2025 (SEA 1-2025) as provided in this SECTION and as
10 amended by this act.
11    SECTION 33. P.L.68-2025, SECTION 246, IS REPEALED
12 [EFFECTIVE UPON PASSAGE]. SECTION 246. [EFFECTIVE JUNE
13 30, 2027]. (a) Notwithstanding the July 1, 2027, effective date for
14 IC 6-3.6-6-0.5, IC 6-3.6-6-4.3, IC 6-3.6-6-4.5, and IC 6-3.6-6-6.1, all
15 as added by this act; the July 1, 2027, effective date for IC 6-3.6-6-2,
16 IC 6-3.6-6-3, IC 6-3.6-6-4, IC 6-3.6-6-8, IC 6-3.6-6-8.5, IC 6-3.6-6-9.5,
17 IC 6-3.6-6-17, IC 6-3.6-6-18, IC 6-3.6-6-19, and IC 6-3.6-6-21, all as
18 amended by this act; and the July 1, 2027, or January 1, 2028, repeal
19 of IC 6-3.6-6-2.5, IC 6-3.6-6-2.6, IC 6-3.6-6-2.7, IC 6-3.6-6-2.8,
20 IC 6-3.6-6-2.9, IC 6-3.6-6-9, IC 6-3.6-6-10, IC 6-3.6-6-11,
21 IC 6-3.6-6-12, IC 6-3.6-6-14, IC 6-3.6-6-15, IC 6-3.6-6-16, and
22 IC 6-3.6-6-20, all as repealed by this act; the method used to determine
23 the amount of a particular distribution of revenue before July 1, 2027,
24 shall continue to be used for these determinations for all of 2027.
25    (b) Notwithstanding the adoption of different tax rates by a county
26 applicable after 2027 or the adoption of municipal tax rates under
27 IC 6-3.6-6-22, as added by this act, applicable after 2027, or any other
28 provision of law, the certified distribution methodology calculation for
29 local income tax distributions made in 2027 shall continue for local
30 income tax distributions made in 2028 and 2029 to account for the
31 transition to any new tax rates.
32    (c) This SECTION expires June 30, 2030.
33    SECTION 34. [EFFECTIVE JUNE 30, 2028] (a) Notwithstanding
34 the effective date for:
35(1) the amendment of sections in IC 6-3.6-6 by this act or by
36P.L.68-2025;
37(2) the addition of sections in IC 6-3.6-6 by this act or by
38P.L.68-2025; or
39(3) the repeal of sections in IC 6-3.6-6 by this act or by
40P.L.68-2025;
41 the method used to determine the amount of a particular
42 distribution of revenue before July 1, 2028, shall continue to be
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                                 34
1 used for these determinations for all of 2028.
2     (b) Notwithstanding the adoption of different tax rates by a
3 county applicable after 2028 or the adoption of municipal tax rates
4 under IC 6-3.6-6-22, applicable after 2028, or any other provision
5 of law, the certified distribution methodology calculation for local
6 income tax distributions made in 2028 shall continue for local
7 income tax distributions made in 2029 and 2030 to account for the
8 transition to any new tax rates.
9     (c) This SECTION expires June 30, 2031.
10     SECTION 35. [EFFECTIVE JANUARY 1, 2026
11 (RETROACTIVE)] (a) IC 6-1.1-3-7.2, as amended by this act,
12 applies to assessment dates occurring after December 31, 2025.
13     (b) This SECTION expires June 30, 2030.
14     SECTION 36. An emergency is declared for this act.
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