Section 50IAC8-2-6. PTR credit; additional credit; housing program credit

   (a) In an allocation area established in an economic development district under IC 6-1.1-39, the PTR credit applies to property taxes on the current base assessment individual components and to tax increment if the district was established before January 1, 1988, and if the application of the credit was approved by the department of commerce before that date. In all other allocation areas, the PTR credit applies to property taxes on the current base assessment individual components, but not to tax increment.

  (b) The additional credit applies to tax increment (except in Marion County and Fort Wayne). Upon the recommendation of the redevelopment commission, the municipal legislative body (in the case of a redevelopment commission established by a municipality) or the county executive (in the case of a redevelopment commission established by a county) may, by resolution, provide that the additional credit does not apply in a specified allocation area, or that it is to be reduced by a uniform percentage for all taxpayers in a specified allocation area. Such a resolution first applies to property taxes payable in the year following the year of adoption of the resolution. Whenever a municipal legislative body or county executive determines that application of the full additional credit would adversely affect the interests of the holders of bonds or other contractual obligations payable from tax increment in a way that would create a reasonable expectation that those bonds or other obligations would not be paid when due, the municipal legislative body or county executive must adopt a resolution to deny the additional credit or reduce it to a level that creates a reasonable expectation that the bonds or other obligations will be paid when due. Such a resolution may not be rescinded if the rescission would adversely affect the interests of the holders of bonds or other obligations in a way that would create a reasonable expectation that the principal of or interest on the bonds or other obligations would not be paid when due.

  (c) A housing program credit applies to tax increment in Marion County if the city-county legislative body establishes the credit by ordinance. The credit first applies to property taxes payable in the year following the year of adoption of the ordinance. In addition to the ordinance by the legislative body, the redevelopment commission must provide for the credit annually by a resolution and must find in the resolution the following:

(1) That the money to be collected and deposited in the allocation fund, based upon historical collection rates, after granting the credit will equal the amounts payable for contractual obligations from the fund, plus ten percent (10%) of those amounts.

(2) If bonds payable from the fund are outstanding, that there is a debt service reserve for the bonds that at least equals the amount of the credit to be granted.

(3) If bonds of a lessor under IC 36-7-15.1-17.1 or under IC 36-1-10 are outstanding and if lease rentals are payable from the fund, that there is a debt service reserve for those bonds that at least equals the amount of the credit to be granted.

  (d) The redevelopment commission may adopt a resolution to prorate the housing program credit among all taxpayers if the tax increment is insufficient to grant the credit in full. Such a resolution first applies to property taxes payable in the year following the year of adoption of the resolution.

  (e) In order to ensure that a resolution to eliminate or reduce the additional credit or the housing program credit can be reflected in tax bills in a particular year, the resolution must be adopted by November 15 of the preceding year. The redevelopment commission must immediately notify the county auditor of the adoption. (Department of Local Government Finance; 50 IAC 8-2-6; filed Jan 30, 1989, 3:30 p.m.: 12 IR 1358)