Sec. 4. After conducting a hearing under section 3.5 of this chapter, the legislative body of a city may adopt an ordinance on or before December 31, 2024, establishing a special assessment district known as the economic enhancement district. The adopting ordinance must contain the following:

(1) The boundaries of the proposed economic enhancement district, which may exceed the boundaries of the Mile Square area of the city. However, the boundary must be the same distance in length on all sides compared to the center of the city, but may not exceed a two (2) mile square.

(2) A finding that the proposed economic enhancement projects will provide special benefits to all property owners of the economic enhancement district.

(3) A finding that excludes the following types of properties from the assessment of benefits:

(A) Any property that receives a homestead standard deduction under IC 6-1.1-12-37.

(B) Any property that is used for multi-unit residential housing.

(C) Any property that is used for single-unit residential housing.

However, notwithstanding the exclusion provisions, an owner of property described in clause (A), (B), or (C) and the owner of any property located outside the economic enhancement district may voluntarily opt-in to include their property in the economic enhancement district assessment of benefits by notifying the county auditor in writing. If a property that is opted into the economic enhancement district assessment of benefits is subsequently sold, the new owner of the property shall have the opportunity to determine whether or not they will opt-in to include the property in the economic enhancement district assessment of benefits. A determination to opt-in to the economic enhancement district assessment of benefits is binding until a property is sold.

(4) The formula to be used for the assessment of benefits, which shall be as follows:

(A) The annual special benefits assessment shall be calculated in a manner that will generate an amount not to exceed five million five hundred thousand dollars ($5,500,000).

(B) For each taxable property in the district, the special benefits assessment shall be calculated as follows:

(i) Residential properties shall be assessed a flat fee of two hundred fifty dollars ($250) each.

(ii) All other nonresidential taxable property shall be assessed at a rate equal to the total budget amount minus the total amount raised from residential properties divided by the total assessed value of all the nonresidential taxable property in the district. This fraction shall be considered the economic enhancement district assessment rate. The economic enhancement district assessment rate shall be multiplied by the assessed value of any nonresidential taxable property to determine that property’s assessment.

(5) An expiration date of the economic enhancement district, which may not be later than ten (10) years from the date of the adoption of the ordinance and may not be renewed. The adopting ordinance must establish an economic enhancement district board.

As added by P.L.201-2023, SEC.279. Amended by P.L.9-2024, SEC.555; P.L.136-2024, SEC.55; P.L.169-2024, SEC.3.