Revisor's Note: The effective date of this section, as added by P.L.68-2025, was amended by P.L.157-2026, SEC.290 to 7-1-2028.

1. (b) The following apply:

   1. (1) Except as provided in subdivisions (2) and (3), the population of a city or town is the population of the city or town that is reported by the 2020 federal decennial census.
   2. (2) Beginning after 2032, if the population of a city or town decreases from a population of three thousand five hundred (3,500) or more, as reported by the immediately preceding federal decennial census, to a population of less than three thousand five hundred (3,500), as reported by the most recent federal decennial census, or, if applicable, any corrected population count (as defined in IC 1-1-3.5-1.5 ) issued for the city or town in the year succeeding the most recent federal decennial census, the fiscal body of the city or town may adopt an ordinance on or before September 1 of the calendar year two (2) years after the most recent federal decennial census to continue to use the population of the city or town as reported by the immediately preceding federal decennial census and the resulting determination for the city or town under section 22 of this chapter, notwithstanding the increase or decrease in its population as reported by the most recent federal decennial census as described in this subdivision. An ordinance adopted under this subdivision shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. The fiscal officer of the city or town shall provide a certified copy of an ordinance adopted under this subdivision to the department of local government finance.
   3. (3) This subdivision applies only to cities and towns with a population of three thousand five hundred (3,500) or more. Notwithstanding any other provision, a fiscal body of a city or town may adopt an ordinance to elect to be treated as if the city's or town's population is less than three thousand five hundred (3,500) for purposes of a county local income tax rate and distribution under this chapter. An ordinance adopted under this subdivision shall take effect on January 1 of the calendar year that immediately succeeds the year in which the ordinance is adopted. The fiscal officer of the city or town shall provide a certified copy of an ordinance adopted under this subdivision to the department of local government finance. An ordinance adopted by a city or town under this subdivision is not revocable and shall expire December 31, 2032.

Effective 7-1-2028.

Sec. 23. (a) This section applies in determining the population of a city or town for the purposes of this chapter.

As added by P.L.68-2025, SEC.148. Amended by P.L.157-2026, SEC.133.