1. (a) This section applies if a part of the reorganized township is located outside the boundaries of the municipality.

2. (b) The municipality shall establish:

   1. (1) an urban township services district consisting of the area of the designated township that is located within the boundaries of the municipality; and
   2. (2) a rural township services district consisting of the area of the designated township located outside the boundaries of the municipality.

3. (c) Subject to subsection (d), a tax levied under this section may be levied at:

   1. (1) a uniform rate upon all taxable property within the designated township; or
   2. (2) different rates for the township service districts included within the designated township, so long as a tax rate applies uniformly to all of a township service district's taxable property within the designated township.
4. (d) If a uniform tax rate is levied upon all taxable property within a designated township upon reorganization, different tax rates may be levied for the township service districts included within the designated township in subsequent years.
5. (e) Not later than October 1 of a year, the municipality shall submit the township services district levy for the rural township service district to the county fiscal body for its approval. Not later than October 15 of the year, the county fiscal body shall review the proposed township service district levy for the rural township service district. The county fiscal body may reduce or modify but not increase the proposed township service district levy.

6. (f) If:

   1. (1) the municipality fails to adopt a township service district levy; or

   2. (2) a county fiscal body does not adopt the township service district levy for a rural township district within the time specified under subsection (c);

      the township service district's most recent township service district levy approved by the municipality or county, whichever is appropriate, is continued for the ensuing budget year.

7. (g) A tax levied by the recipient municipality under this chapter after December 31, 2028, shall:

   1. (1) be in an amount sufficient for the recipient municipality to provide township services within a township service district; and
   2. (2) include amounts necessary to continue payment of any debt service or obligation incurred by the township before January 1, 2029, in accordance with the terms of the debt service or obligation incurred.

As added by P.L.134-2026, SEC.3.