1. (a) This section applies to revenue received from a referendum levy if both of the following apply:

   1. (1) The:

      1. (A) governing body of the school corporation approves the referendum levy in a resolution adopted under section 8 or 8.5 of this chapter; and
      2. (B) resulting referendum levy is imposed for the first time with property taxes first due and payable in a calendar year beginning after December 31, 2027.

   2. (2) The number of students who have legal settlement in the school corporation but attend a charter school, excluding virtual charter schools and adult high schools, and receive not more than fifty percent (50%) virtual instruction is at least the greater of:

      1. (A) one hundred (100) students; or
      2. (B) two percent (2%) of the school corporation's spring ADM count, excluding students who receive more than fifty percent (50%) virtual instruction.

2. (b) As used in this section, "eligible charter school" means a charter school attended by a student who:

   1. (1) has legal settlement in a school corporation that imposes a referendum levy under this chapter; and

   2. (2) receives not more than fifty percent (50%) virtual instruction.

      However, the term does not include a virtual charter school or an adult high school.

3. (c) The following schools are not eligible to receive, and may not be considered in a calculation made for purposes of, a distribution under this section:

   1. (1) A virtual charter school.
   2. (2) An adult high school.
4. (d) Subject to subsections (j) and (l), the county auditor in the county in which the school corporation is located shall distribute to each eligible charter school, in the manner provided under this section, an amount of revenue received from a tax levy imposed by a school corporation under this chapter unless the charter school elects to not participate in the referendum under section 8(h) of this chapter.
5. (e) For the purposes of the calculations made in this section, each eligible charter school that has entered into an agreement with a school corporation to participate as a participating innovation network charter school under IC 20-25.7-5 is considered to have an ADM that is separate from the school corporation.

6. (f) Not later than January 1, 2028, and not later than January 1 of each year thereafter, the department, in consultation with the department of local government finance, shall determine, for each school corporation, the corresponding percentages of revenue received from the tax levy that must be distributed among the school corporation and each eligible charter school according to the following formula:

   1. (A) have legal settlement within the school corporation;
   2. (B) are currently included in the fall ADM count for the charter school; and

   3. (C) receive not more than fifty percent (50%) virtual instruction.

      STEP TWO: Determine the sum of:

   4. (A) the aggregate of the STEP ONE results for all eligible charter schools with respect to the school corporation; plus

   5. (B) the fall ADM count for the school corporation for students receiving not more than fifty percent (50%) virtual instruction.

      STEP THREE: For each eligible charter school, determine the result of:

   6. (A) the applicable STEP ONE amount; divided by

   7. (B) the STEP TWO amount;

      expressed as a percentage.

      STEP FOUR: Determine the sum of all the amounts computed under STEP THREE and subtract the result from one hundred percent (100%).

   STEP ONE: Determine, for each eligible charter school, the number of students who:

7. (g) The department shall provide to the county auditor, immediately after calculation under subsection (f):

   1. (1) each eligible charter school and the eligible charter school's corresponding percentage calculated under STEP THREE of subsection (f); and
   2. (2) the percentage calculated under STEP FOUR of subsection (f) for the school corporation.

8. (h) Subject to subsections (k) and (l), when the county auditor distributes property tax revenue, the county auditor shall distribute to the school corporation and each eligible charter school the amount determined in the last STEP of the following STEPS:

   1. (A) the sum of:

   STEP ONE: Determine the amount collected in the most recent installment period by the school corporation from the school corporation's referendum levy imposed under this chapter.

   STEP TWO: To determine the distribution for the school corporation and each eligible charter school, determine the result of:

9. (i) the STEP ONE result; plus
10. (ii) any amount withheld in the previous year under subsection (k); multiplied by

11. (B) the following percentage:

    1. (i) In the case of an eligible charter school, the charter school's percentage under STEP THREE of subsection (f).
    2. (ii) In the case of the school corporation, the school corporation's percentage under STEP FOUR of subsection (f).
    3. (i) Not later than August 15, 2027, and not later than August 15 of each calendar year thereafter, the department shall provide to each school corporation and each eligible charter school an estimate of the amount of property tax levy revenue the school corporation and eligible charter school are expected to receive under this section in the subsequent calendar year based on the most recent fall ADM count.

    4. (j) This subsection applies beginning with distributions of property tax revenue under this section in 2028 and thereafter. In order to receive a distribution under this section, the governing body of an eligible charter school shall, not later than October 15, 2027, and not later than October 15 of each calendar year thereafter, adopt a budget for the current school year. Not later than ten (10) days before its adoption, the budget must be fixed and presented to the charter board in a public meeting in the county in which the eligible charter school is incorporated. Not later than November 1, 2027, and not later than November 1 of each calendar year thereafter, the governing body of the charter school shall submit:

       1. (1) the budget that is adopted under this subsection;
       2. (2) the dates on which each requirement under this subsection were met; and

       3. (3) a statement from the governing body of the charter school attesting that the dates provided in subdivision (2) are true and accurate and that the budget was properly adopted under this subsection;

          to the charter authorizer for review and to the department of local government finance to be posted publicly on the computer gateway under IC 6-1.1-17-3 .

    5. (k) If an eligible charter school does not satisfy the requirements of subsection (j) to receive distributions under this section during a calendar year, as determined by the department of local government finance, the eligible charter school may not receive a distribution of property tax revenue in that calendar year and the county auditor shall withhold the eligible charter school's distribution amount. The department of local government finance's determination of compliance consists only of a confirmation that the adopted budget and attestation statement are submitted not later than the applicable date under subsection (j). Any distribution amount withheld under this subsection shall be:

       1. (1) added to the property tax revenue collections as described in STEP TWO of subsection (h); and

       2. (2) distributed among the school corporation and eligible charter schools according to subsection (h);

          in the calendar year that immediately follows the calendar year in which the distribution amount was withheld.

    6. (l) A charter school is not eligible for a distribution under this section from property tax revenue collected from a particular referendum levy if the charter school does not have a certified fall ADM count in the calendar year immediately preceding the calendar year in which the public question for the referendum appears on the ballot.

As added by P.L.68-2025, SEC.222. Amended by P.L.23-2026, SEC.212.