1. (a) This section applies to revenue collected after December 31, 2027, from a tax levy imposed under this chapter only if the number of students who have legal settlement in a 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. (1) one hundred (100) students; or
   2. (2) 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 tax 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) Beginning in calendar year 2028, and in each calendar year thereafter, and subject to subsection (j), the county auditor 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.
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) Except as provided in subsection (m), and subject to subsections

9. (j) and (l), 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:

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

   2. (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) 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 was 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 remaining 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) This subsection applies only to distributions under subsection (h) in calendar years 2028, 2029, and 2030 to an eligible charter school. Except as provided in subsection (m), instead of the amount determined under subsection (h) for a distribution to a particular eligible charter school from the revenue collected from the tax levy imposed under this chapter by a particular school corporation, the county auditor shall make distributions according to the following:

         1. (1) For a distribution in 2028, the county auditor shall distribute an amount for a particular eligible charter school equal to:

            1. (A) the applicable result of STEP TWO of subsection (h) for the eligible charter school; multiplied by
            2. (B) twenty-five hundredths (0.25).

         2. (2) For a distribution in 2029, the county auditor shall distribute an amount for a particular eligible charter school equal to:

            1. (A) the applicable result of STEP TWO of subsection (h) for the eligible charter school; multiplied by
            2. (B) five-tenths (0.5).

         3. (3) For a distribution in 2030, the county auditor shall distribute an amount for a particular eligible charter school equal to:

            1. (A) the applicable result of STEP TWO of subsection (h) for the eligible charter school; multiplied by

            2. (B) seventy-five hundredths (0.75).

               Any amount of property tax revenue collected from the tax levy imposed under this chapter by a particular school corporation that remains after making the distributions according to this subsection shall be distributed to the school corporation and are in addition to the amount distributed to the school corporation under subsection (h) for the applicable year. This subsection expires July 1, 2032.

      7. (m) This subsection applies only to distributions of revenue 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 (h) or (l), 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 corporation board under IC 20-25.3-4-2 (b).

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

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

As added by P.L.68-2025, SEC.226. Amended by P.L.101-2026, SEC.21.