1. (a) Subject to subsection (d), 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 on the unit's or fire protection district's taxable property within the territory that exceeds forty cents ($0.40) per one hundred dollars ($100) of assessed valuation.

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.