Indiana bill would share redevelopment property taxes with local services

The proposal would direct at least 10% of the covered property tax money to local service providers. This covers redevelopment tax areas established after June 30, 2026. Schools with territory in the area, libraries there, and local units providing safety services would split the money into thirds. If one group does not exist in an area, the other groups would split its share. Recipients could use the money for operating costs or projects needed to provide services in the area. If enacted, this rule would take effect July 1, 2026.

The proposal would direct at least 10% of certain excess property tax money to local service providers. This covers redevelopment tax areas established before July 1, 2026. The share comes from taxes left after earlier distributions and the amount needed for annual bond payments. Schools with territory in the area, libraries there, and local units providing safety services would split it into thirds. If one group does not exist, the other groups would split its share. If enacted, this rule would take effect July 1, 2026.