HB 1232 Summary

• Allows redevelopment commissions outside Marion County and the Marion County redevelopment body to establish sales tax increment financing areas that capture 50% of sales and use taxes from businesses beginning operations after the area is designated.

• Defines two types of financing areas: Type 1 areas (near highway interchanges, airports, recreational trails, commuter rail, bus stops, historic districts, or sports/entertainment facilities) and Type 2 areas (other non-contiguous geographic areas within redevelopment districts).

• Requires redevelopment commissions to prepare plans showing area boundaries, property lists, and cost estimates; restricts use of eminent domain to acquire property in these areas.

• Establishes sales tax increment financing funds administered by redevelopment commissions that receive monthly distributions of captured tax revenue from the state treasurer.

• Mandates termination of financing areas at the earliest of: 30 years after designation, completion or abandonment of improvements, or when all bonds, leases, and creditors are paid in full.

• Effective July 1, 2012.