1. (a) Subject to subsections (d), (e), and (f), a tax levied under this chapter may be levied at:

   1. (1) a uniform rate upon all taxable property within the territory; or
   2. (2) different rates for the participating units included within the territory, so long as a tax rate applies uniformly to all of a unit's or fire protection district's taxable property within the territory.
2. (b) If a uniform tax rate is levied upon all taxable property within a territory upon the formation of the territory, different tax rates may be levied for the participating units included within the territory in subsequent years.
3. (c) This subsection applies to a territory established by an ordinance or a resolution adopted under this chapter after December 31, 2022. A total tax rate levied under this chapter upon taxable property within a territory upon the formation of the territory may be implemented over a number of years, not exceeding five (5), and in a manner subject to review and approval by the department of local government finance.

4. (d) This subsection applies to a territory established by an ordinance or a resolution adopted under this chapter after December 31, 2024. The provider unit and each participating unit in a territory may not impose a tax rate:

   1. (1) in the case of property taxes first due and payable in 2027, on the unit's or fire protection district's taxable property within the territory for the fire protection territory fund established under section 8 of this chapter that exceeds forty cents ($0.40) per one hundred dollars ($100) of assessed valuation; and
   2. (2) in the case of property taxes first due and payable in 2028 and each calendar year thereafter, on the unit's or fire protection district's taxable property within the territory for the fire protection territory fund established under section 8 of this chapter and the equipment replacement fund established under section 8.5 of this chapter that in aggregate exceeds forty cents ($0.40) per one hundred dollars ($100) of assessed valuation.
5. (e) This subsection applies to an existing fire protection territory that changes the boundaries of the fire protection territory by an ordinance or a resolution adopted under this chapter after December 31, 2025. The provider unit and each participating unit in a fire protection territory may not impose a tax rate for the fire protection territory fund established under section 8 of this chapter on taxable property located within the fire protection territory that exceeds forty cents ($0.40) per one hundred dollars ($100) of assessed valuation.
6. (f) This subsection applies only to an existing fire protection territory that changes the boundaries of the fire protection territory by an ordinance or a resolution adopted under this chapter after December 31, 2024, and before January 1, 2026. The provider unit and each participating unit in a fire protection territory may not impose a tax rate for the fire protection territory fund established under section 8 of this chapter on taxable property located within the fire protection territory that exceeds the certified tax rate imposed for the fire protection territory fund established under section 8 for property taxes first due and payable in 2026.

As added by P.L.37-1994, SEC.3. Amended by P.L.240-2001, SEC.4; P.L.172-2011, SEC.160; P.L.255-2017, SEC.46; P.L.95-2022, SEC.8; P.L.68-2025, SEC.240; P.L.157-2026, SEC.276.