1. (a) This section applies only to revenue collected after June 30, 2024, and before January 1, 2028, from a tax levy imposed under this chapter by a school corporation located in:

   1. (1) Lake County;
   2. (2) Marion County;
   3. (3) St. Joseph County; or

   4. (4) Vanderburgh County.

      However, this section does not apply to, and distributions are not required for, a school corporation that is designated as a distressed political subdivision under IC 6-1.1-20.3 .

2. (b) For distributions made in:

   1. (1) calendar year 2025, and subject to subsection (c); and

   2. (2) calendar years 2026 and 2027, and subject to subsections (c), (h), and (i);

      the county auditor shall distribute to each charter school that is eligible for a distribution under subsection (d), and as provided under subsection (f), an amount of revenue received from a tax levy imposed by a school corporation under this chapter that is attributable to the territory of the school corporation that is located within the boundaries of a county listed in subsection (a).

3. (c) The following schools are not eligible to receive a distribution under this section:

   1. (1) A virtual charter school.
   2. (2) An adult high school.

4. (d) Not later than March 1, 2025, January 1, 2026, and January 1, 2027, the department, in consultation with the department of local government finance, shall determine the corresponding percentages of revenue received from the tax levy that are attributable to the territory of the school corporation that is located within the boundaries of a county listed in subsection (a) and must be distributed among the school corporation and each eligible charter school according to the following formula:

   1. (A) is located in the same county as the school corporation; and

   2. (B) provides not more than fifty percent (50%) virtual instruction for its students.

      STEP TWO: Determine, for each charter school described in STEP ONE, the number of students who:

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

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

      STEP THREE: Determine the sum of:

   6. (A) the aggregate of the STEP TWO results for all applicable charter schools; plus

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

      STEP FOUR: For each charter school described in STEP ONE, determine the result of:

   8. (A) the applicable STEP TWO amount; divided by

   9. (B) the STEP THREE amount;

      expressed as a percentage.

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

   STEP ONE: Determine each charter school that:

5. (e) The department shall provide to the county auditor, immediately after calculation under subsection (d):

   1. (1) each charter school determined under STEP ONE of subsection (d) and the charter school's corresponding percentage calculated under STEP FOUR of subsection (d); and
   2. (2) the percentage calculated under STEP FIVE of subsection (d) for the school corporation.

6. (f) Except as provided in subsection (j), and subject to subsection (i), the county auditor shall distribute to the school corporation and each applicable charter school the amount determined, for each settlement period described in IC 6-1.1-27-1 , in the last STEP of the following STEPS:

   1. (A) the sum of the school corporation's operations fund property tax levies that are attributable to the territory of the school corporation that is located within the boundaries of a county listed in subsection (a) and collected under this chapter for the applicable settlement period as described in IC 6-1.1-27-1 in calendar years 2021, 2022, and 2023; divided by

   2. (B) three (3).

      STEP TWO: For each school corporation, determine an incremental property tax levy amount calculated as:

   3. (A) the school corporation's operations fund property tax levy collections that are attributable to the territory of the school corporation that is located within the boundaries of a county listed in subsection (a) for the applicable settlement period as described in IC 6-1.1-27-1 in the current calendar year; minus

   4. (B) the school corporation's base property tax levy collections determined for the applicable settlement period as described in IC 6-1.1-27-1 under STEP ONE.

      STEP THREE: For the school corporation and each applicable charter school, determine the result of:

   5. (A) the sum of:

      1. (i) the incremental amount determined under STEP TWO; plus
      2. (ii) any distribution amount withheld under subsection (i); multiplied by

   6. (B) the following percentage:

      1. (i) In the case of an applicable charter school, the charter school's percentage under STEP FOUR of subsection (d).
      2. (ii) In the case of the school corporation, the school corporation's percentage under STEP FIVE of subsection (d).

   STEP ONE: For each school corporation, determine a base property tax levy amount calculated as:

7. (g) Before August 15, 2025, and August 15, 2026, 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 charter school are expected to receive under this section based on the most recent fall ADM count.

8. (h) This subsection applies to distributions of property tax revenue under this section in 2026 and 2027. In order to receive a distribution under this section in 2026 and 2027, the governing body of an eligible charter school shall, before October 15, 2025, and October 15, 2026, 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 charter school is incorporated. A budget that is adopted under this subsection must be submitted 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 not later than:

   1. (1) to receive distributions in 2026, November 1, 2025; and

   2. (2) to receive distributions in 2027, November 1, 2026.

      In addition to the adopted budget, the governing body of the charter school shall also submit to the charter authorizer, and to the department of local government finance to be posted publicly on the computer gateway under IC 6-1.1-17-3 , the dates on which each requirement under this subsection was met and a statement from the governing body of the charter school attesting that those dates are true and accurate and that the budget was properly adopted under this subsection.

9. (i) This subsection applies to distributions of property tax revenue under this section in 2026 and 2027. If an eligible charter school does not satisfy the requirements of subsection (h) to receive distributions under this section during a calendar year, as determined by the department of local government finance, the charter school may not receive a distribution of property tax revenue in that calendar year and the county auditor shall withhold the 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 (h). Any distribution amount that must be withheld from distribution to any particular charter school under this subsection in:

   1. (1) calendar year 2026 shall be added to the incremental amount as described in STEP TWO of subsection (f) and distributed among the school corporation and remaining charter schools according to subsection (f) in calendar year 2027; and
   2. (2) calendar year 2027 shall be added to the incremental amount as described in STEP TWO of subsection (f) and distributed among the school corporation and remaining charter schools according to subsection (f) in calendar year 2027.

10. (j) This subsection applies only to distributions of property tax revenue in 2026 and to distributions of property tax revenue in 2027 to:

    1. (1) a school city (as defined in IC 20-25-2-12 ); and

    2. (2) a charter school that:

       1. (A) is located in the territory of a school city (as defined in IC 20-25-2-12 ); and

       2. (B) would otherwise receive a share of property tax revenue from the school city under this section.

          Before making any distribution under subsection (f), the county auditor shall first distribute to the public education corporation for deposit in the public education corporation operations fund created under IC 20-25.3-6-1 an amount equal to the percentage determined by the Indianapolis public education corporation board under IC 20-25.3-4-2 (b).

As added by P.L.201-2023, SEC.214. Amended by P.L.36-2024, SEC.11; P.L.68-2025, SEC.225; P.L.101-2026, SEC.20.