Citations Affected: IC 6-1.1; noncode.
Synopsis: Property tax benefits for high impact business. Establishes
a high impact business commission consisting of the Lafayette common
council and the Tippecanoe county council. Allows the commission to
designate one business as a high impact business and to exempt the
business's inventory from property taxation for ten years. Requires a
business to commit to investing at least $50,000,000 and retaining at
least 1,200 jobs at its facilities located in Tippecanoe County and
Lafayette to be designated as a high impact business. Requires a high
impact business to continue operations at its facilities in the city and
the county for at least 20 years and to comply with a statement of
benefits to result from its investment. Provides for the termination of
the tax exemption, the recapture of tax revenues, and penalties for a
failure to comply with the statement of benefits or for ceasing
operations at those facilities.
Effective: July 1, 2002.
January 14, 2002, read first time and referred to Committee on Rules and Legislative
Procedure.
January 17, 2002, reported favorably _ Do Pass.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1.
IC 6-1.1-10.1
IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2002]:
Chapter 10.1. High Impact Business Designation
Sec. 1. (a) This chapter applies only to a county having a
population of more than one hundred forty-eight thousand
(148,000) but less than one hundred seventy thousand (170,000).
(b) A county described in subsection (a) is presented with unique
challenges due to:
(1) the presence of multiple business facilities of the high
impact business within the corporate boundaries of the largest
city in the county and in unincorporated areas of the county;
(2) the proportion of property taxes paid by the high impact
business to all property taxes paid in the county;
(3) continued economic pressures on the high impact business
to reduce its property taxes by relocating to another location
outside Indiana;
(4) the desire of local elected officials to encourage the high
impact business to retain manufacturing operations within the
county; and
(5) the limited availability of other incentives to encourage the
high impact business to retain manufacturing operations
within the county.
Sec. 2. As used in this chapter, "designating body" means the
commission established under section 6 of this chapter.
Sec. 3. As used in this chapter, "designation application" means
an application that is filed with a designating body to assist the
body in making a determination about whether a particular
business should be designated as a high impact business.
Sec. 4. As used in this chapter, "high impact business" means a
manufacturing business that has business locations:
(1) within the corporate boundaries of the largest city in the
county; and
(2) in unincorporated areas in the county;
and that is designated a high impact business under section 7 of
this chapter.
Sec. 5. As used in this chapter "inventory" has the meaning set
forth in
IC 6-1.1-3-11.
Sec. 6. (a) There is established a high impact business
commission in the county for the purpose of considering and acting
upon applications for designation as a high impact business.
(b) The commission consists of the membership of the fiscal
bodies of the county and the largest city in the county.
(c) Members of the commission shall serve without
compensation.
(d) The jurisdiction of the commission consists of the
unincorporated areas of the county and the largest city in the
county.
Sec. 7. (a) A designating body may find that a business within its
jurisdiction is a high impact business.
(b) The property tax exemption provided by section 10 of this
chapter is available only to a business that the designating body
finds to be a high impact business.
(c) A designating body may impose a fee for filing a designation
application for a person requesting the designation of a particular
business as a high impact business. The fee may be sufficient to
defray actual processing and administrative costs.
(d) If the proposed high impact business is also located in an
allocation area (as defined in
IC 36-7-14-39
or
IC 36-7-15.1-26
), an
application for the property tax exemption provided by this
chapter may not be approved unless the commission that
designated the allocation area adopts a resolution approving the
application.
(e) The designating body may designate only one (1) business as
a high impact business under this chapter.
Sec. 8. (a) If a designating body finds that a business in its
jurisdiction is a high impact business, it shall prepare a map and
plat that identifies the business locations of the high impact
business.
(b) After the preparation of the map described in subsection (a),
the designating body shall pass a resolution declaring that a
particular business is a high impact business. The resolution must
contain the addresses of the business locations of the high impact
business and must be filed with the county assessor.
(c) After passage of a resolution under subsection (b), the
designating body shall do the following:
(1) Publish notice of the adoption and substance of the
resolution in accordance with
IC 5-3-1.
(2) File the following information with each taxing unit that
has authority to levy property taxes in the geographic area
where the high impact business is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement containing substantially the same
information as a statement of benefits filed with the
designating body under section 9 of this chapter before the
hearing required by this section.
(3) Hold a public hearing on the issue of the designation of a
particular business as a high impact business.
(d) The notice required under subsection (c) must state that a
description of the designated high impact business is available and
can be inspected in the county assessor's office. The notice must
also name a date when the designating body will receive and hear
all remonstrances and objections from interested persons at the
public hearing required by subsection (c)(3). The designating body
shall file the information required by subsection (c)(2) with the
officers of the taxing unit who are authorized to fix budgets, tax
rates, and tax levies under
IC 6-1.1-17-5
at least ten (10) days
before the date of the public hearing.
(e) After considering the evidence, the designating body shall
take final action determining whether the qualifications for the
designation of a high impact business have been met and
confirming, modifying and confirming, or rescinding the
resolution. This determination is final.
Sec. 9. (a) An applicant must provide a completed statement of
benefits form to the designating body before the hearing required
by section 8(c)(3) of this chapter. The department of local
government finance shall prescribe a form for the statement of
benefits. The statement of benefits must include the following
information:
(1) A description of the proposed investment.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the
applicant as a result of the investment and an estimate of the
annual salaries of these individuals.
(3) An estimate of the value of the investment.
(4) A certification by the applicant to the commission that,
subject to obtaining designation as a high impact business, the
applicant intends to:
(A) make a minimum investment of fifty million dollars
($50,000,000) in new product development and
manufacturing capacity for products to be manufactured
in the applicant's facilities located within the commission's
jurisdiction; and
(B) retain an aggregate employment level of at least one
thousand two hundred (1,200) full-time jobs in the
applicant's facilities located within the commission's
jurisdiction for at least twenty (20) years after the date of
the designation of the applicant's business as a high impact
business.
With the approval of the designating body, the statement of
benefits may be incorporated in a designation application.
Notwithstanding any other law, a statement of benefits is a public
record that may be inspected and copied under
IC 5-14-3-3.
(b) The designating body must review the statement of benefits
required under subsection (a). The designating body shall
determine whether a business should be designated as a high
impact business and whether a property tax exemption should be
allowed under this chapter after making the following findings at
a public hearing:
(1) Whether the estimate of the value of the investment is
reasonable for projects of that nature.
(2) Whether:
(A) the employment of the estimated number of
individuals; or
(B) the retention of the estimated number of employees;
can reasonably be expected to result from the proposed
investment.
(3) Whether the annual salaries estimated for the individuals
and employees referred to in subdivision (2) can reasonably
be expected to result from the proposed investment.
(4) Whether any other benefits about which information was
requested can reasonably be expected to result from the
proposed investment.
(5) Whether the totality of benefits is sufficient to justify the
property tax exemption.
A designating body may not designate a high impact business or
approve a property tax exemption unless the findings required by
this subsection are made in the affirmative.
Sec. 10. The inventory located in the county of a high impact
business is exempt from property taxation for ten (10) years
following the designating body's adoption of a resolution taking
final action under section 8 of this chapter. A certified copy of the
resolution shall be sent to the county auditor, who shall grant the
exemption as provided in section 11 of this chapter.
Sec. 11. (a) A high impact business that desires to obtain the
property tax exemption provided by section 10 of this chapter must
file a certified exemption application, on forms prescribed by the
department of local government finance, with the auditor of the
county in which the inventory is located. The exemption
application must be filed on or before May 15 each year. If the high
impact business obtains a filing extension under
IC 6-1.1-3-7
(b) for
any year, the application for the year must be filed by the extended
due date for that year.
(b) The property tax exemption application required by this
section must contain the following information:
(1) The name of the high impact business owning the
inventory.
(2) A description of the inventory for which a property tax
exemption is claimed in sufficient detail to afford
identification.
(3) The assessed value of the inventory subject to the property
tax exemption.
(4) Any other information considered necessary by the
department of local government finance.
(c) On verification of the correctness of a property tax
exemption application by the assessors of the townships in which
the inventory is located, the county auditor shall grant the property
tax exemption.
(d) The property tax exemption and the period of the exemption
provided for inventory under section 10 of this chapter are not
affected by a change in the ownership of the high impact business
if the new owner of the high impact business owning the inventory:
(1) continues the business operation of the high impact
business within the commission's jurisdiction and maintains
employment levels within the commission's jurisdiction
consistent with the certification and pledge required under
section 9(a) of this chapter; and
(2) files an application in the manner provided by subsections
(a) and (b).
Sec. 12. (a) At any time within twenty (20) years after the date
that a business has been designated as a high impact business
under section 8 of this chapter, the designating body may
determine whether the high impact business owner has
substantially complied with the statement of benefits approved
under section 9 of this chapter. If the designating body determines
that the high impact business owner has not substantially complied
with the statement of benefits and that the failure to substantially
comply was not caused by factors beyond the control of the high
impact business owner (such as declines in demand for the
property owner's products or services), the designating body shall
mail a written notice to the high impact business owner. The
written notice must include the following provisions:
(1) An explanation of the reasons for the designating body's
determination.
(2) The date, time, and place of a hearing to be conducted by
the designating body for the purpose of further considering
the high impact business owner's compliance with the
statement of benefits. The date of the hearing may not be
more than fifteen (15) days after the date on which the notice
is mailed.
(b) On the date specified in the notice described in subsection
(a)(2), the designating body shall conduct a hearing to further
consider the high impact business owner's compliance with the
statement of benefits. Based on the information presented at the
hearing by the high impact business owner and other interested
parties, the designating body shall again determine whether the
high impact business owner has made reasonable efforts to
substantially comply with the statement of benefits and whether
any failure to substantially comply was caused by factors beyond
the control of the high impact business owner. If the designating
body determines that the high impact business owner has not made
reasonable efforts to comply with the statement of benefits, the
designating body shall adopt a resolution either:
(1) terminating the high impact business owner's property tax
exemption under section 10 of this chapter; or
(2) imposing a penalty under section 13 of this chapter if the
failure to comply with the statement of benefits occurs after
the ten (10) year exemption provided under section 10 of this
chapter expires.
(c) If the designating body adopts a resolution terminating the
high impact business owner's property tax exemption under this
chapter:
(1) the exemption does not apply to the next installment of
property taxes owed by the high impact business owner or to
any subsequent installment of property taxes;
(2) the high impact business owner shall pay the amount
determined under section 14(e) of this section to the county
treasurer; and
(3) the county treasurer shall distribute the money paid under
this section in accordance with section 14(f) of this chapter.
(d) If the designating body adopts a resolution terminating a
property tax exemption under subsection (b), the designating body
shall immediately mail a certified copy of the resolution to:
(1) the high impact business owner; and
(2) the county auditor.
The county auditor shall remove the property tax exemption from
the tax duplicate and shall notify the county treasurer of the
termination of the exemption. If the designating body's resolution
is adopted after the county treasurer has mailed the statement
required by
IC 6-1.1-22-8
, the county treasurer shall immediately
mail the high impact business owner a revised statement that
reflects the termination of the property tax exemption.
(e) A high impact business owner whose property tax exemption
under section 10 of this chapter is terminated by the designating
body under this section may appeal the designating body's decision
by filing a complaint in the office of the clerk of the circuit or
superior court, together with a bond conditioned to pay the costs
of the appeal if the appeal is determined against the high impact
business owner. An appeal under this subsection shall be promptly
heard by the court without a jury and determined within thirty
(30) days after the time of the filing of the appeal. The court shall
hear evidence on the appeal and may confirm the action of the
designating body or sustain the appeal. The judgment of the court
is final unless an appeal is taken as in other civil actions.
(f) If an appeal under subsection (e) is pending, the taxes
resulting from the termination of the property tax exemption
under this chapter and the payment required by this section are
not due until after the appeal is finally adjudicated and the
termination of the exemption is finally determined.
Sec. 13. (a) If the fiscal body adopts a resolution under section
12 of this chapter imposing a penalty, the amount of the penalty is
the amount determined under the following formula:
STEP ONE: Determine the total amount of the high impact
business owner's property taxes that were exempted under
this chapter.
STEP TWO: Divide the STEP ONE result by ten (10).
STEP THREE: Determine the number of years that have
elapsed since January 1 of the year in which the high impact
business owner's property tax exemption under section 10 of
this chapter commenced.
STEP FOUR: Subtract the STEP THREE result from twenty
(20).
STEP FIVE: Multiply the STEP FOUR result by the STEP
TWO result.
(b) The high impact business owner shall pay the amount
determined under subsection (a) to the county treasurer. The
county treasurer shall distribute money paid under this section on
a pro rata basis to the general fund of each taxing unit that
contains the inventory that was subject to the property tax
exemption. The amount to be distributed to the general fund of
each taxing unit shall be determined by the county auditor
according to the following formula:
STEP ONE: For each year that the property tax exemption
was in effect, determine the additional amount of property
taxes that would have been paid by the high impact business
owner to the taxing unit if the property tax exemption had not
been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Divide the STEP TWO sum by the sum
determined under STEP TWO of section 14(e) of this chapter.
STEP FOUR: Multiply the amount paid by the high impact
business owner under section 14(e) of this chapter by the
STEP THREE quotient.
Sec. 14. (a) A high impact business owner that has received a
property tax exemption under section 10 of this chapter is subject
to this section if the designating body adopts a resolution
incorporating this section for the high impact business owner.
(b) If:
(1) the high impact business owner ceases operations before
January 1, 2024, at a facility for which the property tax
exemption was granted under this chapter; and
(2) the designating body finds that the high impact business
owner obtained a property tax exemption under this chapter
by intentionally providing false information concerning the
high impact business owner's plans to continue operations at
the facilities located within the commission's jurisdiction;
the high impact business owner shall pay the amount determined
under subsection (e) to the county treasurer.
(c) A high impact business owner may appeal the designating
body's decision under subsection (b) by filing a complaint in the
office of the clerk of the circuit or superior court, together with a
bond conditioned to pay the costs of the appeal if the appeal is
determined against the high impact business owner. An appeal
under this subsection shall be promptly heard by the court without
a jury and determined not more than thirty (30) days after the time
of the filing of the appeal. The court shall hear evidence on the
appeal and may confirm the action of the designating body or
sustain the appeal. The judgment of the court is a final
determination that may be appealed in the same manner as other
civil actions.
(d) If an appeal under subsection (c) is pending, the payment
required by this section is not due until after the appeal is finally
adjudicated and the high impact business owner's liability for the
payment is finally determined.
(e) The county auditor shall determine the amount to be paid by
the high impact business owner according to the following formula:
STEP ONE: For each year that the property tax exemption
provided under section 10 of this chapter was in effect,
determine the additional amount of property taxes that would
have been paid by the high impact business owner if the
exemption had not been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Multiply the sum determined under STEP
TWO by one and one-tenth (1.1).
(f) The county treasurer shall distribute money paid under this
section on a pro rata basis to the general fund of each taxing unit
that contained the inventory that was subject to the property tax
exemption provided under section 10 of this chapter. The amount
to be distributed to the general fund of each taxing unit shall be
determined by the county auditor according to the following
formula:
STEP ONE: For each year that the property tax exemption
provided under section 10 of this chapter was in effect,
determine the additional amount of property taxes that would
have been paid by the high impact business owner to the
taxing unit if the exemption had not been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Divide the STEP TWO sum by the sum
determined under STEP TWO of subsection (e).
STEP FOUR: Multiply the amount paid by the high impact
business owner under subsection (e) by the STEP THREE
quotient.
SECTION 2. [EFFECTIVE JULY 1, 2002]
IC 6-1.1-10.1-10
, as
added by this act, applies to property taxes first due and payable
after December 31, 2003.