Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 8 - TAX INCREMENT FINANCE › Rule 2 - Determination and Use of Tax Increment › Section 2-8 - Tax increment; records

Current through July 10, 2024
Authority: IC 6-1.1-39; IC 36-7-14; IC 36-7-15.1
Affected: IC 6-1.1-39; IC 8-22-3.5; IC 36-7-14; IC
				  36-7-15.1
Sec. 8.
(a) With
				respect to any year in which an allocation area is in place and there is
				captured assessment, only the current base assessment is taxed by the taxing
				units in which the allocation area is located. The PTR credit applies to taxes
				on the current base assessment individual components in the same manner that it
				applies to taxes on property in the taxing district outside the allocation
				area. The PTR credit also applies to taxes on captured assessment individual
				components in an economic development district declared under IC 6-1.1-39 if
				the district was established before January 1, 1988, and if the application of
				the credit was approved by the department of commerce before that date. If the
				additional credit (not applicable in Marion County or Fort Wayne) or the
				housing program credit (applicable only in Marion County) is in place (see
				section 6 of this rule), the credit applies to taxes on the captured assessment
				individual components. If the percentage of credit on taxes on the current base
				assessment individual components differs from the percentage of credit on taxes
				on the captured assessment individual components, then those components must be
				determined with respect to each parcel of allocation area real property and any
				returns of allocation area personal property. If the percentage of credit on
				taxes on both components is the same, then the amounts of these components must
				be determined only with respect to parcels or returns on which taxes are wholly
				or partially delinquent in order to determine the allocation of taxes between
				the redevelopment commission and the taxing units. (This also applies in an
				economic development district declared under IC 6-1.1-39.)
(b) If a determination of the amounts of the
				current base assessment individual components and the captured assessment
				individual components is required as described in subsection (a), the county
				auditor must first perform the apportionment to restore the base assessment
				described in section 9 or 10 of this rule. This determines the portion of the
				assessed value of each parcel of allocation area real property and of each
				return of personal property (if applicable) that is considered part of the base
				assessment, and the portion that is the potential captured assessment
				individual component. If all of the potential captured assessment is needed by
				the redevelopment commission to generate the tax increment, then each portion
				of an assessment that is determined under section 9 or 10 of this rule to be
				part of the base assessment equates to the current base assessment individual
				component, and each portion that is determined to be a potential captured
				assessment individual component equates to the captured assessment individual
				component. However, if the redevelopment commission does not use the full
				potential captured assessment (see section 4(c) through 4(d) of this rule),
				then apportionment under section 11 of this rule must be performed to determine
				the amounts of the current base assessment individual components and the
				captured assessment individual components.
(c) If a determination of the amounts of all
				current base assessment individual components and captured assessment
				individual components is not required as described in subsection (a), then it
				is necessary to determine the amounts of these components only with respect to
				parcels or returns on which taxes are wholly or partially delinquent. This
				subsection outlines the minimum number of calculations necessary to make that
				determination. The aggregate decreases of assessed value of all parcels of
				allocation area real property and all returns of allocation area personal
				property must be determined. This figure is added to the remainder of the base
				assessment subtracted from the current year's assessed value of all allocation
				area real and personal property, which results in the aggregate increase of
				assessed value of all parcels and returns. The aggregate increases are then
				divided by the aggregate decreases to determine the percentage of the
				assessment of each parcel on which taxes are wholly or partially delinquent
				that is the potential captured assessment individual component. (Then determine
				captured.)