month that follows the month in which the ordinance to rescind the tax is adopted. However, the fiscal body may not rescind the tax if there are bonds outstanding or leases or other obligations for which the tax has been pledged under IC 36-7.5.
        (5) The tax is in addition to any other food and beverage tax imposed in the same county.
    Sec. 4. Except as provided in section 6 of this chapter, a tax imposed under section 3 of this chapter applies to any transaction in which food or beverage is furnished, prepared, or served:
        (1) for consumption at a location, or on equipment, provided by a retail merchant;
        (2) in the county or political subdivision, or both, in which the tax is imposed; and
        (3) by a retail merchant for consideration.
    Sec. 5. Transactions described in section 4(1) of this chapter include transactions in which food or beverage is:
        (1) served by a retail merchant off the merchant's premises;
        (2) food sold in a heated state or heated by a retail merchant;
        (3) two (2) or more food ingredients mixed or combined by a retail merchant for sale as a single item (other than food that is only cut, repackaged, or pasteurized by the seller, and eggs, fish, meat, poultry, and foods containing these raw animal foods requiring cooking by the consumer as recommended by the federal Food and Drug Administration in chapter 3, subpart 3-401.11 of its Food Code so as to prevent food borne illnesses); or
        (4) food sold with eating utensils provided by a retail merchant, including plates, knives, forks, spoons, glasses, cups, napkins, or straws (for purposes of this subdivision, a plate does not include a container or packaging used to transport the food).
    Sec. 6. The food and beverage tax under this chapter does not apply to the furnishing, preparing, or serving of any food or beverage in a transaction that is exempt, or to the extent exempt, from the state gross retail tax imposed by IC 6-2.5.
    Sec. 7. The tax imposed under this chapter shall be imposed, paid, and collected in the same manner that the state gross retail tax is imposed, paid, and collected under IC 6-2.5. However, the return to be filed for the payment of the taxes may be made on separate returns or may be combined with the return filed for the payment of the state gross retail tax, as prescribed by the

improving, renovating, maintaining, equipping, financing, operating, and supporting public transportation systems that can be adapted to the unique circumstances existing in different parts of Indiana.
    Sec. 2. The definitions in this chapter apply throughout this article.
    Sec. 3. "Allocation area" means the part of an area to which an allocation provision of a declaratory resolution adopted under IC 8-24-14-1 refers for purposes of distribution and allocation of property taxes.
    Sec. 4. "Base assessed value" means the sum of:
        (1) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution; plus
        (2) to the extent that it is not included in subdivision (1), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision;
as adjusted by the department of local government finance under IC 8-24-14-5.
    Sec. 5. "Board" refers to a regional transportation board established under IC 8-24-4 for a district.
    Sec. 6. "Bonds" means, except as otherwise provided, bonds, notes, or other evidences of indebtedness issued by a district.
    Sec. 7. "District" refers to a regional transportation district established under IC 8-24-2.
    Sec. 8. "Executive director" refers to the executive director of the district.
    Sec. 9. "Project" refers to an action taken to:
        (1) plan;
        (2) design;
        (3) acquire;
        (4) construct;
        (5) enlarge;
        (6) improve;
        (7) renovate;
        (8) maintain;
        (9) equip; or
        (10) operate;
a public transportation system.

counties if resolutions approving the expansion are adopted by the fiscal bodies of:
        (1) each of the counties to be added to the district; and
        (2) a majority of the counties in the district.
    Sec. 2. (a) A county that participates in a district must be a member of the district for at least ten (10) years after the date the county becomes a member.
    (b) At least twelve (12) months and not more than eighteen (18) months before the end of a ten (10) year period, the fiscal body of a county participating in the district must adopt a resolution that:
        (1) commits the county to an additional ten (10) years as a member of the district, beginning at the end of the current ten (10) year period; or
        (2) withdraws the county from membership in the district not earlier than the end of the current ten (10) year period.
    (c) The fiscal body of a county that participates in the district must adopt a resolution under subsection (b) during each ten (10) year period in which the county is a member of the board.
    (d) A county may withdraw from a district as provided in this section only with the approval of the board.
    (e) If at the end of a ten (10) year period a county withdraws from the district under this section:
        (1) the terms of members of the board from that county and any city in that county are terminated upon the effective date of the withdrawal of the county; and
        (2) the county and each city in the county continue to be liable to the district for the amounts that would have otherwise been due from the county and each city in the county for any:
            (A) unpaid transfers to the district that became due before the withdrawal of the county or city from the district is effective; and
            (B) amounts due under any bonds issued or lease rental agreements entered into before the withdrawal of the county from the district is effective.
    Sec. 3. If an existing public transportation agency operates within the boundaries of a district, the legislative body that established the public transportation agency may adopt a resolution to shift any of the public transportation powers of the public transportation agency to the district.
    Sec. 4. A public transportation agency may merge with a district on the terms jointly agreed to by the governing body of the district and the public transportation agency. However, the merger of two

(2) or more districts must comply with section 1 of this chapter. A merger under this section does not transfer to the district any powers that are not public transportation powers.
    Chapter 3. Status
    Sec. 1. A district is a body corporate and politic. A district is separate from the state and any other political subdivision, but the exercise by the district of its powers is an essential governmental function.
    Sec. 2. All the incorporated and unincorporated area in a county that becomes a member of a district is included in the district.
    Sec. 3. A pledge or mortgage of a district does not create an obligation of the state or a political subdivision within the meaning of the Constitution of the State of Indiana or any statute.
    Sec. 4. All:
        (1) property owned by a district;
        (2) revenue of a district; and
        (3) bonds issued by a district, the interest on the bonds, the proceeds received by a holder from the sale of bonds to the extent of the holder's cost of acquisition, proceeds received upon redemption before maturity, proceeds received at maturity, and the receipt of interest in proceeds;
are exempt from taxation in Indiana for all purposes except the financial institutions tax imposed under IC 6-5.5 or a state inheritance tax imposed under IC 6-4.1.
    Sec. 5. All securities issued under this article are exempt from the registration requirements of IC 23-19 and other securities registration statutes.
    Sec. 6. (a) This section does not apply to interurban or interstate public transportation service.
    (b) Service provided by the district within the territory of the district is exempt from regulation by the department of state revenue under IC 8-2.1. This exemption applies to transportation services provided by the district directly or by grants or purchase of service agreements.
    (c) Service provided by the district by contract or service agreements outside the territory of the district is subject to regulation by the department of state revenue under IC 8-2.1.
    (d) The department of state revenue shall hear appeals concerning any regulatory action of the district concerning service and rates, and, after making a finding based on the requirements of IC 8-2.1, issue an appropriate order. Judicial review of the

commission decision may be obtained in the manner prescribed by IC 4-21.5-5.
    Chapter 4. Board
    Sec. 1. The power to govern the district is vested in a regional transportation board.
    Sec. 2. The board is composed of the following members:
        (1) One (1) member from the fiscal body for each participating county, appointed by the president of the county fiscal body.
        (2) One (1) member of the county executive in a participating county, appointed by the president of the county executive board.
        (3) One (1) member from the fiscal body for each city in a participating county (other than a city in a county with a consolidated city), appointed by the president of the fiscal body of the city.
    Sec. 3. A member of a board must be a resident of the unit that appointed the member.
    Sec. 4. A member of a board serves at the pleasure of the appointing authority.
    Sec. 5. If a participating unit fails to make an appointment to the board within sixty (60) days after the participating unit becomes a member of the district or within sixty (60) days after the position becomes vacant, the appointment shall be made by the governor.
    Sec. 6. A member of a board is not entitled to receive compensation for performance of the member's duties. However, a member of the board is entitled to a per diem from the district for the member's participation in board meetings. The amount of the per diem is equal to the amount of the per diem provided under IC 4-10-11-2.1(b).
    Sec. 7. A majority of the members appointed to a board constitutes a quorum for a meeting.
    Sec. 8. The affirmative votes of at least a majority of the appointed members of a board are necessary to authorize any action of the district.
    Sec. 9. A board shall elect a chair of the board and any other officers that the board determines appropriate.
    Sec. 10. A board shall meet at least quarterly.
    Sec. 11. The chair of a board or any two (2) members of the board may call a meeting of the board. The mayor of the city with the largest population in the district shall call the initial meeting of

the board for a date that is not more than sixty (60) days after the board is initially established.
    Sec. 12. The board may adopt the bylaws and rules that the board considers necessary for the proper conduct of the board's duties and the safeguarding of the district's funds and property.
    Chapter 5. General Powers
    Sec. 1. The district shall exercise the powers granted to the district by this article to carry out the purposes of the district.
    Sec. 2. The district may sue and be sued in the name of the district.
    Sec. 3. The district may determine matters of policy regarding internal organization and operating procedures not specifically provided for by law.
    Sec. 4. The district may employ the personnel necessary to carry out the duties, functions, and powers of the district.
    Sec. 5. The district may fix the compensation of the various officers and employees of the district, within the limitations of the total personal services budget.
    Sec. 6. The district may adopt rules governing the duties of its officers, employees, and personnel, and the internal management of the affairs of the district.
    Sec. 7. The district may protect all property owned or managed by the district and procure insurance against any losses in connection with its property, operations, or assets in amounts and from insurers as it considers desirable.
    Sec. 8. Subject to this article, the district may borrow money, make guaranties, issue bonds, and otherwise incur indebtedness for any of the district's purposes, and issue debentures, notes, or other evidences of indebtedness, whether secured or unsecured, to any person, as provided by the affected statutes.
    Sec. 9. The district may acquire real, personal, or mixed property by deed, purchase, or lease and dispose of it for use in connection with or for the purposes of the district, including supplies, materials, and equipment to carry out the duties and functions of the district.
    Sec. 10. The district may receive gifts, donations, bequests, and public trusts, agree to conditions and terms accompanying them, and bind the district to carry them out.
    Sec. 11. (a) The district may receive federal or state aid and administer that aid.
    (b) The district may comply with federal statutes and rules concerning the expenditure of federal money for public

transportation systems. The board may apply to state and federal agencies for grants for public transportation development, make or execute representations, assurances, and contracts, enter into covenants and agreements with any state or federal agency relative to public transportation systems, and comply with federal and state statutes and rules concerning the acquisition, development, operation, and administration of public transportation systems.
    (c) The district may use money received by the district that is not pledged or restricted for another purpose to provide a local match required for the receipt of any federal funds.
    Sec. 12. The district may adopt a schedule of reasonable charges and rents, and collect them from all users of facilities and services within the jurisdiction of the district.
    Sec. 13. The district may purchase public transportation services from public or private transportation agencies upon the terms and conditions set forth in purchase of service agreements between the district and the transportation agencies.
    Sec. 14. The district may acquire, establish, construct, renovate, improve, equip, operate, maintain, finance, subsidize, lease, and regulate public transportation systems serving the district.
    Sec. 15. The district may make, execute, and enforce contracts and all other instruments necessary, convenient, or desirable for the purposes of the district or pertaining to:
        (1) a purchase, acquisition, or sale of securities or other investments related to a project; or
        (2) the performance of the district's duties and execution of any of the districts's powers;
including public-private agreements (as defined in IC 5-23-2-13).
    Sec. 16. The district may enter into agreements with government agencies, political subdivisions, private transportation companies, railroads, and other persons providing for:
        (1) construction, improvement, renovation, operation, maintenance, and use by the other party of any public transportation system and equipment held or later acquired by the district; and
        (2) acquisition of any public transportation system and equipment of another party if all or part of the operations of that party take place within the jurisdiction of the district.
    Sec. 17. The district may lease to others for development or operation all or any part of the property of the district on the terms and conditions as the board considers advisable.

lease from the lowest responsible and responsive bidder in accordance with the requirements for the purchase of supplies under IC 5-22.
    Sec. 3. With respect to projects undertaken by a district, the district shall set a goal for participation by minority business enterprises and women's business enterprises. The goals must be consistent with:
        (1) the participation goals established by the counties and municipalities that are members of the district; and
        (2) the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services.
    Sec. 4. If a district is unable to agree with the owners, lessees, or occupants of any real property selected for the purposes of this article, the district may proceed under IC 32-24-1 to procure the condemnation of the property. The district may not institute a proceeding until it has adopted a resolution that:
        (1) describes the real property sought to be acquired and the public purposes for which the real property is to be used;
        (2) declares that the public interest and necessity require the acquisition by the district of the property involved; and
        (3) sets out any other facts that the district considers necessary or pertinent.
The resolution is conclusive evidence of the public necessity of the proposed acquisition.
    Chapter 8. Planning
    Sec. 1. After reviewing the transportation plans of the Indiana department of transportation and regional and other planning agencies, a district shall develop, continuously update, and implement long range comprehensive transportation plans to ensure the orderly development and maintenance of an efficient system of public transportation in the district.
    Sec. 2. A district shall prepare a comprehensive strategic development plan that will meet present and future public transit needs and that includes detailed information concerning the following:
        (1) The proposed projects to be undertaken or financed by the district.
        (2) The following information for each project included under subdivision (1):
            (A) Time line and budget.
            (B) The return on investment.

IC 8-22-3, IC 36-7.5, IC 36-7.6, IC 36-9-3, IC 36-9-4, or prior law.
    (b) The bonds are payable solely from:
        (1) the lease rentals from the lease of the projects for which the bonds were issued, insurance proceeds, and any other funds pledged or available; and
        (2) to the extent designated in the agreements for the bonds, revenue received by the district and amounts deposited in a district fund.
    (c) The bonds must be authorized by a resolution of the board of the district that issues the bonds.
    (d) The terms and form of the bonds must either be set out in the resolution or in a form of trust indenture approved by the resolution.
    (e) The bonds must mature within forty (40) years.
    (f) A board may sell the bonds only:
        (1) to the Indiana bond bank established by IC 5-1.5-2-1 upon the terms determined by the board and the Indiana bond bank;
        (2) to the Indiana finance authority created by IC 4-4-11-4 upon the terms determined by the development board and the Indiana finance authority; or
        (3) in the manner and for the price as the board may determine to be in the best interest of the district, either at public sale under IC 5-1-11 or at private sale.
    (g) All money received from any bonds issued under this article shall be applied solely to the payment of the cost of acquiring, constructing, improving, reconstructing, or renovating one (1) or more projects, or the cost of refunding or refinancing outstanding bonds, for which the bonds are issued. The cost may include:
        (1) planning and development of equipment or a facility and all buildings, facilities, structures, equipment, and improvements related to the facility;
        (2) acquisition of a site and clearing and preparing the site for construction;
        (3) equipment, facilities, structures, and improvements that are necessary or desirable to make the project suitable for use and operations;
        (4) architectural, engineering, consultant, and attorney's fees;
        (5) incidental expenses in connection with the issuance and sale of bonds;
        (6) reserves for principal and interest;

project until the project or improvements to the project have been completed and are ready for occupancy or use;
        (3) may contain provisions:
            (A) allowing the public transportation agency to continue to operate an existing project until completion of the acquisition, improvements, reconstruction, or renovation of that project or any other project; and
            (B) requiring payment of lease rentals for land, for an existing project being used, reconstructed, or renovated, or for any other existing project;
        (4) may contain an option to renew the lease for the same or a shorter term on the conditions provided in the lease;
        (5) must contain an option for the public transportation agency to purchase the project upon the terms stated in the lease during the term of the lease for a price equal to the amount required to pay all indebtedness incurred on account of the project, including indebtedness incurred for the refunding of that indebtedness;
        (6) may be entered into before acquisition or construction of a project;
        (7) may provide that the public transportation agency shall agree to:
            (A) pay any taxes and assessments on the project;
            (B) maintain insurance on the project for the benefit of the district;
            (C) assume responsibility for utilities, repairs, alterations, and any costs of operation; and
            (D) pay a deposit or series of deposits to the district from any funds available to the public transportation agency before the commencement of the lease to secure the performance of the public transportation agency's obligations under the lease; and
        (8) must provide that the lease rental payments by the public transportation agency shall be made from the district and may provide that the lease rental payments by the public transportation agency shall be made from:
            (A) net revenues of the project;
            (B) any other funds available to the public transportation agency; or
            (C) both sources described in clauses (A) and (B).
    Sec. 2. This article contains full and complete authority for leases between a district and a public transportation agency. No

law, procedure, proceedings, publications, notices, consents, approvals, orders, or acts by a district or the public transportation agency or any other officer, department, agency, or instrumentality of the state or any political subdivision is required to enter into any lease, except as prescribed in this article.
    Sec. 3. If a lease provides for a project or improvements to a project to be constructed by a district, the plans and specifications shall be submitted to and approved by all agencies designated by law to pass on plans and specifications for public buildings.
    Sec. 4. A district and a public transportation agency may enter into common wall (party wall) agreements or other agreements concerning easements or licenses. These agreements shall be recorded with the recorder of the county in which the project is located.
    Sec. 5. (a) A public transportation agency may lease for a nominal lease rental, or sell to a district, one (1) or more projects or parts of a project or land on which a project is located or is to be constructed.
    (b) Any lease of all or a part of a project by a to a district must be for a term equal to the term of the lease of that project back to the public transportation agency.
    (c) A public transportation agency may sell property to a district for the amount the eligible political subdivision determines to be in the best interest of the public transportation agency. The district may pay that amount from the proceeds of bonds of the district.
    Sec. 6. If a public transportation agency exercises its option to purchase leased property, the eligible political subdivision may issue its bonds as authorized by statute.
    Chapter 13. Accounts; Revenues
    Sec. 1. Each public transportation agency, participating county, and city or town in a participating county shall transfer to the district the amount determined by the agreements approved by the board and the fiscal body of the public transportation agency, participating county, or city or town in a participating county on the schedule specified in the agreements.
    Sec. 2. The amount transferred under section 1 of this chapter may come from any unrestricted source of revenue available to the public transportation agency, participating county, or city or town in a participating county, including any revenue received by the public transportation agency from a tax imposed under IC 6-3.5.

area or the amendment of the resolution or plan for an existing allocation area;
        (3) the location of any existing allocation area (as defined in IC 6-1.1-21.2-3) relative to the proposed allocation area; and
        (4) the costs of the project that will be funded by property taxes allocated from the allocation area.
    (c) This subsection applies to the initial establishment of an allocation area. After completion of the data required by subsection (b), the board shall adopt a resolution declaring that:
        (1) the area will benefit from proximity to a public transportation system;
        (2) it will be of public utility and benefit to designate the allocation area under this chapter to fund a project;
        (3) the area is designated as an allocation area for purposes of this chapter; and
        (4) the proposed allocation area is not in an existing allocation area (as defined in IC 6-1.1-21.2-3).
The resolution must state the general boundaries of the allocation area and contain any provisions required by section 6 of this chapter.
    (d) This subsection applies to the amendment of the resolution or plan for an existing allocation area. After completion of the data required by subsection (b), the board shall adopt a resolution declaring that:
        (1) if the amendment enlarges the boundaries of the allocation area, the existing allocation area does not generate sufficient revenue to meet the financial obligations of the original project;
        (2) it will be of public utility and benefit to amend the resolution or plan for the allocation area;
        (3) the additional area is designated as part of the existing allocation area for purposes of this chapter; and
        (4) the proposed allocation area is not in an existing allocation area (as defined in IC 6-1.1-21.2-3).
The resolution must state the general boundaries of the allocation area, including any changes made to those boundaries by the amendment, describe the activities that the district is permitted to take under the amendment, with any designated exceptions, and contain any provisions required by section 6 of this chapter.
    (e) For the purpose of adopting a resolution under subsection (c) or (d), it is sufficient to describe the boundaries of the allocation area by its location in relation to public ways or streams, or

otherwise, as determined by the board. Property excepted from the application of a resolution may be described by street numbers or location.
    (f) An allocation established under this section may not be located in any allocation area (as defined in IC 6-1.1-21.2-3) established before the action taken under this section.
    Sec. 2. (a) After adopting a resolution under section 1 of this chapter, the board shall publish notice of the adoption and substance of the resolution in accordance with IC 5-3-1. The notice must:
        (1) state that maps and plats have been prepared and can be inspected at the office of the district; and
        (2) name a date, time, and place when the board will:
            (A) receive and hear remonstrances and objections from persons interested in or affected by the proceedings pertaining to the proposed project or other actions to be taken under the resolution; and
            (B) determine the public utility and benefit of the proposed project or other actions.
All persons affected in any manner by the hearing, including all taxpayers of the special taxing district, shall be considered notified of the pendency of the hearing and of subsequent acts, hearings, adjournments, and orders of the board by the notice given under this section.
    (b) The board shall file the following information with each taxing unit that is wholly or partly located within the allocation area:
        (1) A copy of the notice required by subsection (a).
        (2) A statement disclosing the impact of the allocation area, including the following:
            (A) The estimated economic benefits and costs incurred by the allocation area, as measured by increased employment and anticipated growth of real property assessed values.
            (B) The anticipated impact on tax revenues of each taxing unit.
The board shall file the information required by this subsection with the officers of the taxing unit who are authorized to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 at least ten (10) days before the date of the hearing.
    (c) At the hearing, which may be adjourned from time to time, the board shall hear all persons interested in the proceedings and shall consider all written remonstrances and objections that have

been filed. After considering the evidence presented, the board shall take final action determining the public utility and benefit of the proposed project or other actions to be taken under the resolution, and confirming, modifying and confirming, or rescinding the resolution. The final action taken by the board shall be recorded and is final and conclusive, except that an appeal may be taken in the manner prescribed by section 3 of this chapter.
    Sec. 3. (a) A person who filed a written remonstrance with the board under section 2 of this chapter and is aggrieved by the final action taken may, within ten (10) days after that final action, file in the office of the clerk of the circuit or superior court a copy of the order of the board and the person's remonstrance against that order, together with the person's bond conditioned to pay the costs of the person's appeal if the appeal is determined against the person. The only ground of remonstrance that the court may hear is whether the proposed project will be of public utility and benefit. The burden of proof is on the remonstrator.
    (b) An appeal under this section shall be promptly heard by the court without a jury. All remonstrances upon which an appeal has been taken shall be consolidated and heard and determined within thirty (30) days after the time of the filing of the appeal. The court shall hear evidence on the remonstrances, and may confirm the final action of the board or sustain the remonstrances. The judgment of the court is final and conclusive, unless an appeal is taken as in other civil actions.
    Sec. 4. If no appeal is taken or if an appeal is taken but is unsuccessful, the board may proceed with the designation or expansion of the allocation area.
    Sec. 5. After each general reassessment under IC 6-1.1-4, the department of local government finance shall adjust the base assessed value one (1) time to neutralize any effect of the general reassessment on the property tax proceeds allocated to the redevelopment district under this section. After each annual adjustment under IC 6-1.1-4-4.5, the department of local government finance shall adjust the base assessed value one (1) time to neutralize any effect of the annual adjustment on the property tax proceeds allocated to the redevelopment district under this section. However, the adjustments under this section may not include the effect of property tax abatements under IC 6-1.1-12.1, and these adjustments may not produce less property tax proceeds allocable to the allocation area than would otherwise have been received if the general reassessment or annual

adjustment had not occurred. The department of local government finance may prescribe procedures for county and township officials to follow to assist the department in making the adjustments.
    Sec. 6. (a) A resolution adopted under section 1 of this chapter shall include a provision with respect to the allocation and distribution of property taxes for the purposes and in the manner provided in this section. A resolution previously adopted must include an allocation provision by the amendment of that resolution in accordance with the procedures required for its original adoption.
    (b) A resolution or an amendment that establishes an allocation provision must specify an expiration date for the allocation provision. The expiration date may not be more than twenty-five (25) years after the date on which the allocation provision is established.
    (c) The allocation provision may apply to all or part of the allocation area. The allocation provision must require that any property taxes subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes on taxable property in the allocation area be allocated and distributed as follows:
        (1) Except as otherwise provided in this section, the proceeds of the taxes attributable to the lesser of:
            (A) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
            (B) the base assessed value;
        shall be allocated to and, when collected, paid into the funds of the respective taxing units.
        (2) Except as otherwise provided in this section, property tax proceeds that exceed those described in subdivision (1) shall be allocated to the district and, when collected, paid into an allocation fund for that allocation area that may be used by the district only to do one (1) or more of the following:
            (A) Pay the principal of and interest on any obligations payable solely or in any part from allocated tax proceeds which are incurred by the district for the purpose of financing or refinancing a project that benefits the allocation area.
            (B) Establish, augment, or restore the debt service reserve for bonds payable solely or in part from allocated tax proceeds in that allocation area.

interests of the holders of bonds described in subdivision (2) or lessors under this article.
    (d) For the purpose of allocating taxes levied by or for any taxing unit or units, the assessed value of taxable property in a territory in the allocation area that is annexed by any taxing unit after the effective date of the allocation provision of the declaratory resolution is the lesser of:
        (1) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
        (2) the base assessed value.
    (e) Property tax proceeds allocable to the district under subsection (c)(2) may, subject to subsection (c)(3), be irrevocably pledged by the district for payment as set forth in subsection (c)(2).
    (f) Notwithstanding any other law, each assessor shall, upon petition of the board, reassess the taxable property situated upon or in, or added to, the allocation area, effective on the next assessment date after the petition.
    (g) Notwithstanding any other law, the assessed value of all taxable property in the allocation area, for purposes of tax limitation, property tax replacement, and formulation of the budget, tax rate, and tax levy for each political subdivision in which the property is located is the lesser of:
        (1) the assessed value of the property as valued without regard to this section; or
        (2) the base assessed value.
    (h) If any part of the allocation area is located in an enterprise zone created under IC 5-28-15, the unit that designated the allocation area shall create funds as specified in this subsection. A unit that has obligations, bonds, or leases payable from allocated tax proceeds under subsection (c)(2) shall establish an allocation fund for the purposes specified in subsection (c)(2) and a special zone fund. Such a unit shall, until the end of the enterprise zone phase out period, deposit each year in the special zone fund any amount in the allocation fund derived from property tax proceeds in excess of those described in subsection (c)(1) from property located in the enterprise zone that exceeds the amount sufficient for the purposes specified in subsection (c)(2) for the year. The amount sufficient for purposes specified in subsection (c)(2) for the year shall be determined based on the pro rata portion of such current property tax proceeds from the part of the enterprise zone that is within the allocation area as compared to all such current

property tax proceeds derived from the allocation area. A unit that has no obligations, bonds, or leases payable from allocated tax proceeds under subsection (c)(2) shall establish a special zone fund and deposit all the property tax proceeds that exceed those described in subsection (c)(1) in the fund derived from property tax proceeds in excess of those described in subsection (c)(1) from property located in the enterprise zone. The unit that creates the special zone fund shall use the fund (based on the recommendations of the urban enterprise association) for programs in job training, job enrichment, and basic skill development that are designed to benefit residents and employers in the enterprise zone or other purposes specified in subsection (c)(2), except that where reference is made in subsection (c)(2) to the allocation area it shall refer for purposes of payments from the special zone fund only to that part of the allocation area that is also located in the enterprise zone. Those programs shall reserve at least one-half (1/2) of their enrollment in any session for residents of the enterprise zone.
    Sec. 7. (a) A board may levy each year a special tax on all the property in an allocation area in the district, in such a manner as to meet and pay the principal of the bonds as they mature, together with all accruing interest on the bonds or lease rental payments under this article. The board shall cause the tax levied to be certified to the proper officers as other tax levies are certified, and to the auditor of the county in which the district is located, before the second day of October in each year. The tax shall be estimated and entered on the tax duplicate by the county auditor and shall be collected and enforced by the county treasurer in the same manner as other state and county taxes are estimated, entered, collected, and enforced.
    (b) As the tax is collected, it shall be accumulated in a separate fund to be known as the allocation area fund and shall be applied to the purposes for which money allocated to the district under section 6 of this chapter may be used. All accumulations of the fund before their use shall be deposited with the depository or depositories for other public funds of the unit in accordance with IC 5-13, unless they are invested under IC 5-13-9.
    (c) The tax levies provided for in this section are reviewable by other bodies vested by law with the authority to ascertain that the levies are sufficient to raise the amount that, with other amounts available, is sufficient to meet the payments under the lease payable from the levy of taxes.