A BILL FOR AN ACT to amend the Indiana Code concerning local government.

Plain English Breakdown

Checked against official source text during the last sync.

Changes to Tax Increment Financing Districts

This bill allows Indiana's redevelopment commissions to use funds for early debt repayment, invites overlapping taxing units to hearings about proposed projects, permits maintenance of infrastructure built with tax increment financing funds, and enables revenue sharing with local economic development organizations under certain conditions.

What This Bill Does

• Allows redevelopment commissions to pay off debts earlier using certain funds.
• Requires redevelopment commissions to invite other taxing units to join hearings about new projects.
• Permits redevelopment commissions to spend money on maintaining infrastructure that was originally built with tax increment financing funds, but only for the remaining life of the project.
• Enables redevelopment commissions to share revenue from tax increment finance districts with local economic development organizations under specific conditions.

Who It Names or Affects

• Redevelopment commissions in Indiana
• Overlapping taxing units involved in hearings about proposed projects
• Local economic development organizations that can receive shared revenues

Terms To Know

Tax increment financing district

A specific area where the increase in property tax revenue is used to finance redevelopment projects.

Redevelopment commission

An organization that oversees and manages redevelopment activities within a designated area.

Limits and Unknowns

• The bill does not specify how much money can be shared with local economic development organizations.
• It is unclear what conditions must be met for sharing revenue with local economic development organizations.

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning local government.
Tax increment financing districts.

Current Bill Text

A BILL FOR AN ACT to amend the Indiana Code concerning local government.

Tax increment financing districts.

Provides that a redevelopment commission may use money from certain funds for the purpose of retiring debt service earlier. Provides that a redevelopment commission making accelerated debt payments may retain the assessed value associated with the original debt service schedule. Requires a redevelopment commission to include an invitation to overlapping taxing units to participate in the hearing regarding a proposed redevelopment project. Allows a redevelopment commission to expend money for the maintenance of an infrastructure project within a tax increment financing district if: (1) the infrastructure project was originally funded or supported by tax increment financing funds; and (2) the use of the funds is limited to the remaining life of the project. Allows a redevelopment commission to share tax increment finance district revenue with certain local economic development organizations under certain conditions.