Note: This version of section amended by P.L.230-2025, SEC.82. See also following repeal of this section by P.L.145-2026, SEC.28, effective 7-1-2027, and following repeal of this section by P.L.68-2025, SEC.136, effective 7-1-2028.

1. (b) The allocation amount of a civil taxing unit during a calendar year must be based on the amounts for the calendar year preceding the distribution year and is equal to the amount determined using the following formula:

   1. (A) Amounts appropriated from property taxes to pay the principal of or interest on any debenture or other debt obligation issued after June 30, 2005, other than an obligation described in subsection (c).

   2. (B) Amounts appropriated from property taxes to make payments on any lease entered into after June 30, 2005, other than a lease described in subsection (d).

      STEP THREE: Subtract the STEP TWO amount from the STEP ONE amount.

      STEP FOUR: In the case of a qualifying municipality as defined in IC 6-1.1-18.5-31 (d) that is located in a county described in IC 6-1.1-18.5-31 (a), and only for the allocation of certified shares in 2027 and 2028, STEP THREE multiplied by seventy percent (70%).

      STEP FIVE: Determine the sum of:

   3. (A) the:

      1. (i) STEP THREE amount; or
      2. (ii) STEP FOUR amount in the case of a qualifying municipality as defined in IC 6-1.1-18.5-31 (d) that is located in a county described in IC 6-1.1-18.5-31 (a);
   4. (B) the civil taxing unit's certified shares plus the amount distributed under section 3(a)(2) of this chapter for the previous calendar year; plus

   5. (C) in the case of a qualifying municipality as defined in IC 6-1.1-18.5-31 (d) that is located in a county described in IC 6-1.1-18.5-31 (a), and only for the allocation of certified shares in 2026, the amount of the levy for the municipality's debt service and lease rental funds that was certified in 2025 multiplied by fifty-four and five-tenths percent (54.5%). This clause expires January 1, 2027.

      The allocation amount is subject to adjustment as provided in IC 36-8-19-7.5 .

   STEP ONE: Determine the sum of the total property taxes being imposed by the civil taxing unit.

   STEP TWO: Determine the sum of the following:

2. (c) Except as provided in this subsection, an appropriation for the calendar year preceding the distribution year from property taxes to repay interest and principal of a debt obligation is not deducted from the allocation amount for a civil taxing unit if:

   1. (1) the debt obligation was issued; and

   2. (2) the proceeds were appropriated from property taxes;

      to refund or otherwise refinance a debt obligation or a lease issued before July 1, 2005. However, an appropriation from property taxes related to a debt obligation issued after June 30, 2005, is deducted if the debt extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid.

3. (d) Except as provided in this subsection, an appropriation for the calendar year preceding the distribution year from property taxes to make payments on a lease is not deducted from the allocation amount for a civil taxing unit if:

   1. (1) the lease was issued; and

   2. (2) the proceeds were appropriated from property taxes;

      to refinance a debt obligation or lease issued before July 1, 2005. However, an appropriation from property taxes related to a lease entered into after June 30, 2005, is deducted if the lease extends payments on a debt or lease beyond the time in which the debt or lease would have been payable if the debt or lease had not been refinanced or increases the total amount that must be paid on a debt or lease in excess of the amount that would have been paid if the debt or lease had not been refinanced. The amount of the deduction is the annual amount for each year of the extension period or the annual amount of the increase over the amount that would have been paid.

Sec. 12. (a) Except as provided in this chapter and IC 6-3.6-11 , this section applies to an allocation of certified shares in all counties.

As added by P.L.243-2015, SEC.10. Amended by P.L.180-2016, SEC.19; P.L.247-2017, SEC.20; P.L.230-2025, SEC.82.