Sale or transfer of covered school building; responsibility to maintain covered school building

Sec. 5. (a) If: (1) a covered school building is sold to a charter school or state educational institution under section 4 of this chapter; and (2) the charter school or state educational institution described in subdivision (1) no longer intends to use the covered school building for the purposes described in section 4(n) of this chapter; the charter school or state educational institution shall offer to transfer the covered school building back to the school corporation that initially sold the covered school building to the charter school or state educational institution. (b) If a school corporation described in subsection (a) declines the offer to transfer a covered school building back to the school corporation, the charter school or state educational institution may sell or transfer the covered school building to a third party. If a charter school or state educational institution sells or transfers a covered school building to a third party under this subsection, the charter school or state educational institution must transfer an amount equal to the gain in the property minus the adjusted basis (including costs of improvements to the covered school building) to the school corporation that initially sold the covered school building to the charter school or state educational institution. Gain and adjusted basis shall be determined in the manner prescribed by the Internal Revenue Code and the applicable Internal Revenue Service regulations and guidelines. (c) A charter school or state educational institution that purchases a covered school building assumes total control of the covered school building and must maintain the covered school building, including utilities, insurance, maintenance, and repairs. Except as provided in subsection (d), in the event a: (1) charter school does not use the covered school building for classroom instruction; or (2) state educational institution does not use the covered school building for an academic purpose; within three (3) years after acquiring the covered school building, the covered school building shall revert to the school corporation, which may sell or otherwise dispose of the covered school building under IC 36-1-11. (d) In the event a: (1) charter school does not use the covered school building for classroom instruction; or (2) state educational institution does not use the covered school building for an academic purpose; as a result of being engaged in ongoing renovations for an acquired covered school building, within three (3) years after acquiring an occupancy permit for the covered school building, the covered school building shall revert to the school corporation, which may sell or otherwise dispose of the covered school building under IC 36-1-11.