Introduced Version






HOUSE BILL No. 1410

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-3.5-7-13.1 .

Synopsis: Economic development income tax expenditures. Redefines "economic development project" for purposes of permissible expenditures of revenues received from a county economic development income tax (CEDIT). Eliminates the requirement that an economic development project must involve expenditures for various capital expenses, administrative expenses, operating expenses, or substance removal. Provides that an economic development project may involve expenditures for any expenses incurred to: (1) promote significant opportunities for the gainful employment of a unit's citizens; (2) attract a major new business enterprise to a unit; or (3) retain or expand a significant business enterprise within a unit.

Effective: January 1, 2001 (retroactive).





Adams T




    January 11, 2001, read first time and referred to Committee on Ways and Means.







Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.

HOUSE BILL No. 1410



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3.5-7-13.1; (01)IN1410.1.1. -->     SECTION 1. IC 6-3.5-7-13.1 , AS AMENDED BY P.L.124-1999, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001 (RETROACTIVE)]: Sec. 13.1. (a) The fiscal officer of each county, city, or town for a county in which the county economic development tax is imposed shall establish an economic development income tax fund. Except as provided in section 23 of this chapter, the revenue received by a county, city, or town under this chapter shall be deposited in the unit's economic development income tax fund.
    (b) Except as provided in sections 15 and 23 of this chapter, revenues from the county economic development income tax may be used as follows:
        (1) By a county, city, or town for economic development projects, for paying, notwithstanding any other law, under a written agreement all or a part of the interest owed by a private developer or user on a loan extended by a financial institution or other lender to the developer or user if the proceeds of the loan are or

are to be used to finance an economic development project, for the retirement of bonds under section 14 of this chapter for economic development projects, for leases under section 21 of this chapter, or for leases or bonds entered into or issued prior to the date the economic development income tax was imposed if the purpose of the lease or bonds would have qualified as a purpose under this chapter at the time the lease was entered into or the bonds were issued.
        (2) By a county, city, or town for:
            (A) the construction or acquisition of, or remedial action with respect to, a capital project for which the unit is empowered to issue general obligation bonds or establish a fund under any statute listed in IC 6-1.1-18.5-9.8 ;
            (B) the retirement of bonds issued under any provision of Indiana law for a capital project;
            (C) the payment of lease rentals under any statute for a capital project;
            (D) contract payments to a nonprofit corporation whose primary corporate purpose is to assist government in planning and implementing economic development projects;
            (E) operating expenses of a governmental entity that plans or implements economic development projects;
            (F) to the extent not otherwise allowed under this chapter, funding substance removal or remedial action in a designated unit; or
            (G) funding of a revolving fund established under IC 5-1-14-14.
    (c) As used in this section, an economic development project is any project that
(1) the county, city, or town determines will:
        (A) (1) promote significant opportunities for the gainful employment of its citizens;
        (B) (2) attract a major new business enterprise to the unit; or
        (C) (3) retain or expand a significant business enterprise within the unit. and
    (2) involves (d) An economic development project may involve an expenditure for:
        (A) (1) the acquisition of land;
        (B) (2) interests in land;
        (C) (3) site improvements;
        (D) (4) infrastructure improvements;
        (E) (5) buildings;


        (F) (6) structures;
        (G) (7) rehabilitation, renovation, and enlargement of buildings and structures;
        (H) (8) machinery;
        (I) (9) equipment;
        (J) (10) furnishings;
        (K) (11) facilities;
        (L) (12) administrative expenses associated with such a the project, including contract payments authorized under subsection (b)(2)(D);
        (M) (13) operating expenses authorized under subsection (b)(2)(E); or
        (N) (14) to the extent not otherwise allowed under this chapter, substance removal or remedial action in a designated unit; or
        (15) other expenses associated with the project and that are incurred for one (1) or more of the purposes enumerated in subsection (c);

or any combination of these.
SOURCE: ; (01)IN1410.1.2. -->     SECTION 2. An emergency is declared for this act.