Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 8 - TAX INCREMENT FINANCE › Rule 2 - Determination and Use of Tax Increment › Section 2-6 - PTR credit; additional credit; housing program credit

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 36-1-10; IC
				  36-7-15.1-17.1; IC 36-7-15.1-35
Sec. 6.
(a) In an
				allocation area established in an economic development district under IC
				6-1.1-39, the PTR credit applies to property taxes on the current base
				assessment individual components and to tax increment 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. In all other
				allocation areas, the PTR credit applies to property taxes on the current base
				assessment individual components, but not to tax increment.
(b) The additional credit applies to tax
				increment (except in Marion County and Fort Wayne). Upon the recommendation of
				the redevelopment commission, the municipal legislative body (in the case of a
				redevelopment commission established by a municipality) or the county executive
				(in the case of a redevelopment commission established by a county) may, by
				resolution, provide that the additional credit does not apply in a specified
				allocation area, or that it is to be reduced by a uniform percentage for all
				taxpayers in a specified allocation area. Such a resolution first applies to
				property taxes payable in the year following the year of adoption of the
				resolution. Whenever a municipal legislative body or county executive
				determines that application of the full additional credit would adversely
				affect the interests of the holders of bonds or other contractual obligations
				payable from tax increment in a way that would create a reasonable expectation
				that those bonds or other obligations would not be paid when due, the municipal
				legislative body or county executive must adopt a resolution to deny the
				additional credit or reduce it to a level that creates a reasonable expectation
				that the bonds or other obligations will be paid when due. Such a resolution
				may not be rescinded if the rescission would adversely affect the interests of
				the holders of bonds or other obligations in a way that would create a
				reasonable expectation that the principal of or interest on the bonds or other
				obligations would not be paid when due.
(c) A housing program credit applies to tax
				increment in Marion County if the city-county legislative body establishes the
				credit by ordinance. The credit first applies to property taxes payable in the
				year following the year of adoption of the ordinance. In addition to the
				ordinance by the legislative body, the redevelopment commission must provide
				for the credit annually by a resolution and must find in the resolution the
				following:
(1) That the money to be collected
				and deposited in the allocation fund, based upon historical collection rates,
				after granting the credit will equal the amounts payable for contractual
				obligations from the fund, plus ten percent (10%) of those amounts.
(2) If bonds payable from the fund are
				outstanding, that there is a debt service reserve for the bonds that at least
				equals the amount of the credit to be granted.
(3) If bonds of a lessor under IC
				36-7-15.1-17.1 or under IC 36-1-10 are outstanding and if lease rentals are
				payable from the fund, that there is a debt service reserve for those bonds
				that at least equals the amount of the credit to be granted.