Introduced Version






HOUSE BILL No. 1323

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 36-7-31.3.

Synopsis: Professional sports and convention areas. Requires, for professional sports and convention development tax areas outside Marion County, that at least one facility in a tax area be used by a professional sports franchise, except for a tax area in Fort Wayne. Requires qualified facilities used for convention or tourism related events to serve national or regional markets. Requires an agreement regarding tax distributions in a tax area with a mix of facility owners. Provides that in a tax area in Allen County, food and beverage taxes may not be captured for use in the tax area. Provides that only the part of covered taxes attributable to the operation of a qualified facility may be captured for use in the tax area. Allows designating bodies to designate as part of a tax area a facility owned by a county building authority. Expands the types of facilities that may be included in a tax area. Limits the designation of areas to one per county.

Effective: July 1, 2002.





Avery, Harris




    January 15, 2002, read first time and referred to Committee on Local Government.







Introduced

Second Regular Session 112th General Assembly (2002)


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.
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HOUSE BILL No. 1323



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

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

SOURCE: IC 36-7-31.3-1; (02)IN1323.1.1. -->     SECTION 1. IC 36-7-31.3-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 1. Except as provided in section 8(b) of this chapter, this chapter applies only to a city or a county without a consolidated city that has a professional sports franchise playing the majority of its home games in a facility owned by the city, the county, a school corporation, or a board under IC 36-9-13 , IC 36-10-8 , IC 36-10-10 , or IC 36-10-11.
SOURCE: IC 36-7-31.3-4; (02)IN1323.1.2. -->     SECTION 2. IC 36-7-31.3-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 4. As used in this chapter, "covered taxes" means the part of the following taxes attributable to the operation of a facility designated as part of a tax area under section 8 of this chapter:
        (1) The state gross retail tax imposed under IC 6-2.5-2-1 or use tax imposed under IC 6-2.5-3-2.
        (2) An adjusted gross income tax imposed under IC 6-3-2-1 on an individual.
        (3) A county option income tax imposed under IC 6-3.5.
        (4) Except in a county having a population of more than three hundred thousand (300,000) but less than four hundred thousand (400,000), a food and beverage tax imposed under IC 6-9.
SOURCE: IC 36-7-31.3-5.5; (02)IN1323.1.3. -->     SECTION 3. IC 36-7-31.3-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 5.5. As used in this chapter, "designating body" means a:
        (1) city legislative body; or
        (2) county legislative body;
that may establish a tax area under this chapter.

SOURCE: IC 36-7-31.3-8; (02)IN1323.1.4. -->     SECTION 4. IC 36-7-31.3-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 8. (a) A city or county legislative designating body may establish designate as part of a professional sports and convention development area any facility that is:
        (1) owned by the city, the county, a school corporation, or a board under IC 36-9-13 , IC 36-10-8 , IC 36-10-10 , or IC 36-10-11 , and used by a professional sports franchise for practice or competitive sporting events; or
        (2) owned by the city, the county, or a board under IC 36-9-13 , IC 36-10-8 , IC 36-10-10 , or IC 36-10-11 , and used as one (1) of the following:
            (A) A facility used principally
for convention or tourism related events serving national or regional markets.
            (B) An airport.
            (C) A museum.
            (D) A zoo.
            (E) A facility used for public attractions of national significance.
            (F) A performing arts venue.
            (G) A county courthouse registered on the National Register of Historic Places.

A facility may not include a private golf course or related improvements. The tax area may include only facilities described in this section and any parcel of land on which the a facility is located. An area may contain noncontiguous tracts of land within the city, or county, or school corporation.
    (b) Except for a tax area that is located in a city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000), a tax area must include at least one (1) facility described in subsection (a)(1).
    (c) A tax area may contain other facilities not owned by the designating body if:
        (1) the facility is owned by a city, the county, a school corporation, or a board established under IC 36-9-13 , IC 36-10-8 , IC 36-10-10 , or IC 36-10-11 ; and
        (2) an agreement exists between the designating body and the owner of the facility specifying the distribution and uses of the covered taxes to be allocated under this chapter.

SOURCE: IC 36-7-31.3-9; (02)IN1323.1.5. -->     SECTION 5. IC 36-7-31.3-9 , AS AMENDED BY P.L.174-2001, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 9. (a) A tax area must be initially established by resolution:
        (1) except as provided in subdivision (2), before July 1, 1999; or
        (2) in the case of a second class city, before July 1, 2002; 2003;
according to the procedures set forth for the establishment of an economic development area under IC 36-7-14. A tax area may be changed or the terms governing the tax area revised in the same manner as the establishment of the initial tax area. Only one (1) tax area may be created in each county.
    (b) In establishing the tax area, the city or county legislative designating body must make the following findings instead of the findings required for the establishment of economic development areas:
        (1) Except for a tax area in a city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000), there is a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used
            (A) by a professional sports franchise for practice or competitive sporting events. or
            (B) for convention or tourism related events.
         A tax area to which this subdivision applies may also include a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used for any purpose specified in section 8(a)(2) of this chapter.
        
(2) For a tax area in a city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000), there is a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used for any purpose specified in section 8(a) of this chapter.
         (3) The capital improvement that will be undertaken or that has been undertaken in the tax area will benefit the public health and

welfare and will be of public utility and benefit.
        (3) (4) The capital improvement that will be undertaken or that has been undertaken in the tax area will protect or increase state and local tax bases and tax revenues.
    (c) The tax area established under this chapter is a special taxing district authorized by the general assembly to enable the designating body to provide special benefits to taxpayers in the tax area by promoting economic development that is of public use and benefit.

SOURCE: IC 36-7-31.3-11; (02)IN1323.1.6. -->     SECTION 6. IC 36-7-31.3-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 11. Upon adoption of a resolution establishing a tax area under section 10 of this chapter, the city or county legislative designating body shall submit the resolution to the budget committee for review and recommendation to the budget agency.
SOURCE: IC 36-7-31.3-13; (02)IN1323.1.7. -->     SECTION 7. IC 36-7-31.3-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 13. When the city or county legislative designating body adopts an allocation provision, the county auditor shall notify the department by certified mail of the adoption of the provision and shall include with the notification a complete list of the following:
        (1) Employers in the tax area.
        (2) Street names and the range of street numbers of each street in the tax area.
The county auditor shall update the list before July 1 of each year.
SOURCE: IC 36-7-31.3-17; (02)IN1323.1.8. -->     SECTION 8. IC 36-7-31.3-17 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 17. The department shall notify the county auditor of the amount of taxes to be distributed to the county treasurer. For tax areas described in section 8(c) of this chapter, the department shall notify the county auditor of the amount of taxes to be distributed to each party to the agreement. The notice must specify the distribution and uses of covered taxes to be allocated under this chapter.
SOURCE: IC 36-7-31.3-19; (02)IN1323.1.9. -->     SECTION 9. IC 36-7-31.3-19 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 19. The resolution establishing the tax area must designate the use of the funds. The funds are to be used only for the following:
        (1) Except in a tax area in a city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000), a capital improvement that will construct or equip a facility
        (A) owned by the city, the county, a school corporation, or a board under IC 36-9-13 , IC 36-10-8 , IC 36-10-10 , or IC 36-10-11 and

used by a professional sports franchise or
        (B) for practice or competitive sporting events. In a tax area to which this subdivision applies, funds may also be used for a capital improvement that will construct or equip a facility owned by the city, the county, or a board under IC 36-9-13 , IC 36-10-8 , IC 36-10-10 , or IC 36-10-11 and used for convention and tourism related events; or any purpose specified in section 8(a)(2) of this chapter.
        (2) In a city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000), a capital improvement that will construct or equip a facility owned by the city, the county, a school corporation, or a board under IC 36-9-13 , IC 36-10-8 , IC 36-10-10 , or IC 36-10-11 and used for any purpose specified in section 8(a) of this chapter.
         (3) The financing or refinancing of a capital improvement described in subdivision (1) or (2) or the payment of lease payments for a capital improvement described in subdivision (1) or (2).

SOURCE: IC 36-7-31.3-20; (02)IN1323.1.10. -->     SECTION 10. IC 36-7-31.3-20 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 20. The city or county legislative designating body shall repay to the professional sports development area fund any amount that is distributed to the city or county legislative designating body and used for:
        (1) a purpose that is not described in this chapter; or
        (2) a facility or facility site other than the facility and facility site to which covered taxes are designated under the resolution described in section 10 of this chapter.
The department shall distribute the covered taxes repaid to the professional sports development area fund under this section proportionately to the funds and the political subdivisions that would have received the covered taxes if the covered taxes had not been allocated to the tax area under this chapter.