Section 50 IAC 8-2-8 - Tax increment; recordsAuthority: IC 6-1.1-39; IC 36-7-14; IC 36-7-15.1
Affected: IC 6-1.1-39; IC 8-22-3.5; IC 36-7-14; IC 36-7-15.1
Sec. 8.
(a) With respect to any year in which an allocation area is in place and there is captured assessment, only the current base assessment is taxed by the taxing units in which the allocation area is located. The PTR credit applies to taxes on the current base assessment individual components in the same manner that it applies to taxes on property in the taxing district outside the allocation area. The PTR credit also applies to taxes on captured assessment individual components in an economic development district declared under IC 6-1.1-39 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. If the additional credit (not applicable in Marion County or Fort Wayne) or the housing program credit (applicable only in Marion County) is in place (see section 6 of this rule), the credit applies to taxes on the captured assessment individual components. If the percentage of credit on taxes on the current base assessment individual components differs from the percentage of credit on taxes on the captured assessment individual components, then those components must be determined with respect to each parcel of allocation area real property and any returns of allocation area personal property. If the percentage of credit on taxes on both components is the same, then the amounts of these components must be determined only with respect to parcels or returns on which taxes are wholly or partially delinquent in order to determine the allocation of taxes between the redevelopment commission and the taxing units. (This also applies in an economic development district declared under IC 6-1.1-39.)(b) If a determination of the amounts of the current base assessment individual components and the captured assessment individual components is required as described in subsection (a), the county auditor must first perform the apportionment to restore the base assessment described in section 9 or 10 of this rule. This determines the portion of the assessed value of each parcel of allocation area real property and of each return of personal property (if applicable) that is considered part of the base assessment, and the portion that is the potential captured assessment individual component. If all of the potential captured assessment is needed by the redevelopment commission to generate the tax increment, then each portion of an assessment that is determined under section 9 or 10 of this rule to be part of the base assessment equates to the current base assessment individual component, and each portion that is determined to be a potential captured assessment individual component equates to the captured assessment individual component. However, if the redevelopment commission does not use the full potential captured assessment (see section 4(c) through 4(d) of this rule), then apportionment under section 11 of this rule must be performed to determine the amounts of the current base assessment individual components and the captured assessment individual components.(c) If a determination of the amounts of all current base assessment individual components and captured assessment individual components is not required as described in subsection (a), then it is necessary to determine the amounts of these components only with respect to parcels or returns on which taxes are wholly or partially delinquent. This subsection outlines the minimum number of calculations necessary to make that determination. The aggregate decreases of assessed value of all parcels of allocation area real property and all returns of allocation area personal property must be determined. This figure is added to the remainder of the base assessment subtracted from the current year's assessed value of all allocation area real and personal property, which results in the aggregate increase of assessed value of all parcels and returns. The aggregate increases are then divided by the aggregate decreases to determine the percentage of the assessment of each parcel on which taxes are wholly or partially delinquent that is the potential captured assessment individual component. (Then determine captured.)Department of Local Government Finance; 50 IAC 8-2-8; filed Jan 30, 1989, 3:30 p.m.: 12 IR 1359