1. (a) A tax area must be established by resolution. A resolution establishing a tax area may provide for the allocation of covered taxes attributable to a taxable event or covered taxes earned in the tax area to the professional sports development area fund established for the city. The allocation provision must apply to the part of the tax area covered by this section. The resolution must provide that the tax area terminates not later than forty (40) years from the date the first obligation payable from covered taxes is incurred by the board. Covered taxes may not be collected in the tax area until after the earlier of June 30, 2027, or the date on which all the conditions set forth in this chapter are met. Any covered taxes attributable to a taxable event or covered taxes earned in the tax area shall be allocated to the professional sports development area fund established for the board.

2. (b) All of the salary, wages, bonuses, and other compensation that are:

   1. (1) paid during a taxable year to a professional athlete for professional athletic services;
   2. (2) taxable in Indiana; and

   3. (3) earned in the tax area;

      shall be allocated to the tax area if the professional athlete is a member of a team that plays home games at a capital improvement in the tax area.

3. (c) The resolution establishing the tax area must designate the facilities and the sites of the facilities, for which the tax area is established and covered taxes will be used.
4. (d) The department may adopt rules and guidelines to govern the allocation of covered taxes to the tax area and to adopt withholding requirements in the manner authorized under IC 6-3-4-8 .

As added by P.L.44-2026, SEC.26.