1. (a) Beginning with property taxes first due and payable after December 31, 2027:

   1. (1) a school city (as defined in IC 20-25-2-12 ) may not impose the property tax levy or otherwise exercise the powers and duties under this chapter; and

   2. (2) the public education corporation shall impose both:

      1. (A) an annual property tax levy in the territory of the school city sufficient to pay all obligations of the school city; and
      2. (B) an annual property tax levy in the territory of the school city sufficient to pay all obligations of the corporation.

2. (b) Property tax revenue received from the:

   1. (1) property tax levy described in subsection (a)(2)(A) shall be deposited in the debt service fund established by the school city under IC 20-40-9 and used to pay debt service on the same terms, for the same period of time, and for the same purposes for which the obligation was initially authorized; and
   2. (2) property tax levy described in subsection (a)(2)(B) shall be deposited in the public education corporation's debt service fund established by IC 20-25-7-3 and used for the purposes of the fund.

As added by P.L.101-2026, SEC.18.