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. (A) is eligible to impose a local income tax under section 22 of this chapter; and

2. (B) did not make an election under section 23(b)(3) of this chapter.

   STEP TWO: Determine the aggregate sum of the STEP ONE results.

   STEP THREE: Determine the sum of:

3. (A) the STEP TWO result; plus

4. (B) the population of the unincorporated area of the county.

   STEP FOUR: Divide the STEP TWO result by the STEP THREE result.

   STEP FIVE: Multiply the STEP FOUR result by one and five-tenths (1.5), expressed as a percentage. However, the result may not exceed one hundred percent (100%).

   STEP SIX: Multiple the STEP FIVE result by the total amount of revenue raised from the tax rate imposed under section 2(b)(4) of this chapter.

   STEP SEVEN: For each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter, divide:

5. (A) the STEP ONE result for the city or town; by

6. (B) the STEP TWO result.

   STEP EIGHT: To determine the amount to be allocated to each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter, multiply:

7. (A) the STEP SEVEN result for the city or town; by

8. (B) the STEP SIX result.

   STEP NINE: Determine the aggregate sum of the STEP EIGHT results for each city and town located in the county that adopted a resolution under subsection (d) for the year, excluding any municipality that is eligible to impose a local income tax under section 22 of this chapter and did not make an election under section 23(b)(3) of this chapter.

   STEP TEN: Determine the result of:

9. (A) the total amount of revenue raised from the tax rate imposed under section 2(b)(4) of this chapter; minus

10. (B) the STEP SIX result.

    STEP ELEVEN: Determine the result of:

11. (A) the STEP SIX result; minus

12. (B) the STEP NINE result.

    STEP TWELVE: To determine the amount to be allocated to the county, determine the sum of:

13. (A) the STEP TEN result; plus
14. (B) the STEP ELEVEN result.
15. (b) For purposes of this section, if the boundaries of a city or town are located in more than one (1) county, only the portion of the population of the city or town that is located within the county imposing the tax rate under section 2(b)(4) of this chapter shall be considered.
16. (c) The money may be used by the city or town fiscal body for any of the purposes of the city or town, including public safety (as defined in IC 6-3.6-2-14 ) and economic development purposes described in IC 6-3.6-10 . The city or town fiscal body may pledge its general purpose revenue to the payment of bonds or to lease payments as set forth in this chapter.
17. (d) An eligible city or town wishing to receive a share of revenue under this section in a year must adopt a resolution requesting the distribution from the county and must provide a certified copy of the resolution to the adopting body and the state board of accounts not later than July 1 of the year immediately preceding the distribution year. Not later than August 1 of the year immediately preceding the distribution year, the adopting body shall hold a public hearing on the resolution requesting the distribution and provide the public with notice of the time and place where the public hearing will be held. The notice must be given in accordance with IC 5-3-1 and include a description of the resolution requesting the distribution from the county.
18. (e) If an eligible city or town adopts a resolution under subsection
19. (d) and provides the resolution to the adopting body as set forth in subsection (d), the county shall distribute to the eligible city or town unit an amount of revenue raised from the tax rate under section 2(b)(4) of this chapter for the distribution year as set forth in subsection (a). If no eligible city or town adopts a resolution to request a distribution in a given year, the county may retain all of the revenue raised from a tax rate for that year.
20. (f) The county may use any money received under this section for the purposes described in section 4 of this chapter.

Effective 7-1-2028.

Sec. 6.1. (a) Revenue raised from a tax rate for certain cities and towns under section 2(b)(4) of this chapter shall be distributed by the county subject to the provisions of this section and according to the following formula:

STEP ONE: Determine the population of each city and town located in the county, excluding the population of any municipality that:

As added by P.L.68-2025, SEC.129. Amended by P.L.23-2026, SEC.41; P.L.157-2026, SEC.130.