Trust account; excess balance; supplemental distribution;

# (1)

made at the same time as the determinations are provided to the county auditor under subsection (d)(3); and

# (2)

allocated in the same manner as certified distributions for the purposes described in this article.

(c) The amount of a supplemental distribution described in subsection (a) is equal to the amount by which:

(1) the balance in the county trust account; minus

(2) the amount of any supplemental or special distribution that has not yet been accounted for in the last known balance of the county's trust account;
exceeds fifteen percent (15%) (or the percentage set forth in subsection (g), if applicable) of the certified distributions to be made to the county in the determination year.

(d) For a county that qualifies for a supplemental distribution under this section in a year, the following apply:

(1) Before February 15, the budget agency shall update the information described in section 9 of this chapter to include the excess account balances to be distributed under this section.

(2) Before May 2, the budget agency shall provide the amount of the supplemental distribution for the county to the department of local government finance and to the county auditor.

# (3)

The department of local government finance shall determine for the county and each taxing unit within the county:

# (A)

the amount and allocation of the supplemental distribution attributable to the taxes that were imposed as of December 31 of the trust account balance year, including any specific distributions for that year; and

# (B)

the amount of the allocation for each of the purposes set forth in this article, using the allocation percentages in effect in the trust account balance year.
The department of local government finance shall provide these determinations to the county auditor before May 16 of the determination year.

# (4)

Before June 1, the county auditor shall distribute to each taxing unit the amount of the supplemental distribution that is allocated to the taxing unit under subdivision (3).
However, for a county with a former tax to provide for a levy freeze under
IC 6-3.6-11-1, the supplemental distribution shall first be distributed as determined in any resolution adopted under IC 6-3.6-11-1(d).
For determinations before 2019, the tax rates in effect under and the allocation methods specified in the former income tax laws shall be used for the determinations under subdivision (3).

(e) For any part of a supplemental distribution attributable to property tax credits under a former income tax or IC 6-3.6-5, the adopting body for the county may allocate the supplemental distribution to property tax credits for not more than the three (3) years after the year the supplemental distribution is received.

(f) Any income earned on money held in a trust account established for a county under this chapter shall be deposited in that trust account.

(g) This subsection applies only to counties that contain at least four (4) municipalities (cities or towns) each with a population greater than forty thousand (40,000), as determined by the most recent federal decennial census, in which at least one (1) of those municipalities meets the definition of a qualifying municipality under IC 6-1.1-18.5-31(d). The following percentages apply for purposes of the determinations under subsections (a) and (c):

(1) For the determination year beginning after December 31, 2025, and ending before

January 1, 2027, twelve and five-tenths percent (12.5%).

(2) For the determination year beginning after December 31, 2026, and ending before January 1, 2028, ten percent (10%).

(3) For a determination year beginning after December 31, 2027, and ending before January 1, 2029, seven and five-tenths percent (7.5%).

(4) For the determination year beginning after December 31, 2028, and ending before January 1, 2030, five percent (5%).

# (5)

For the determination year beginning after December 31, 2029, and ending before January 1, 2031, two and one-half percent (2.5%).

# (6)

For the determination year beginning after December 31, 2030, one percent (1%).
As added by P.L.243-2015, SEC.10. Amended by P.L.126-2016, SEC.2; P.L.257-2019, SEC.73; P.L.239-2023, SEC.15; P.L.230-2025, SEC.85.