January 13, 2004, read first time and referred to Committee on Public Policy, Ethics and
Second Regular Session 113th General Assembly (2004)
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
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
this style type
between statutes enacted by the 2003 Regular Session of the General Assembly.
HOUSE BILL No. 1207
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-12.1-3; (04)IN1207.1.1. -->
SECTION 1. IC 6-1.1-12.1-3, AS AMENDED BY P.L.90-2002,
SECTION 118, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3. (a) An applicant must
provide a statement of benefits to the designating body. If the
designating body requires information from the applicant for economic
revitalization area status for use in making its decision about whether
to designate an economic revitalization area, the applicant shall provide
the completed statement of benefits form to the designating body
before the hearing required by section 2.5(c) of this chapter. Otherwise,
the statement of benefits form must be submitted to the designating
body before the initiation of the redevelopment or rehabilitation for
which the person desires to claim a deduction under this chapter. The
department of local government finance shall prescribe a form for the
statement of benefits. The statement of benefits must include the
(1) A description of the proposed redevelopment or rehabilitation.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the person as
a result of the redevelopment or rehabilitation and an estimate of
the annual salaries of these individuals.
(3) An estimate of the value of the redevelopment or
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 an area should be designated an economic revitalization area
or whether a deduction should be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the value of the redevelopment or
rehabilitation is reasonable for projects of that nature.
(2) Whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the proposed described
redevelopment or rehabilitation.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
described redevelopment or rehabilitation.
(4) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed described redevelopment or rehabilitation.
(5) Whether the totality of benefits is sufficient to justify the
A designating body may not designate an area an economic
revitalization area or approve a deduction unless the findings required
by this subsection are made in the affirmative.
(c) Except as provided in subsections (a) through (b), the owner of
property which is located in an economic revitalization area is entitled
to a deduction from the assessed value of the property. If the area is a
residentially distressed area, the period is not more than five (5) years.
For all other economic revitalization areas designated before July 1,
2000, the period is three (3), six (6), or ten (10) years. For all economic
revitalization areas designated after June 30, 2000, the period is the
number of years determined under subsection (d). The owner is entitled
to a deduction if:
(1) the property has been rehabilitated; or
(2) the property is located on real estate which has been
The owner is entitled to the deduction for the first year, and any
successive year or years, in which an increase in assessed value
resulting from the rehabilitation or redevelopment occurs and for the
following years determined under subsection (d). However, property
owners who had an area designated an urban development area
pursuant to an application filed prior to January 1, 1979, are only
entitled to a deduction for a five (5) year period. In addition, property
owners who are entitled to a deduction under this chapter pursuant to
an application filed after December 31, 1978, and before January 1,
1986, are entitled to a deduction for a ten (10) year period.
(d) For an area designated as an economic revitalization area after
June 30, 2000, that is not a residentially distressed area, the designating
body shall determine the number of years for which the property owner
is entitled to a deduction. However, the deduction may not be allowed
for more than ten (10) years. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
(2) by resolution adopted within sixty (60) days after receiving a
copy of a property owner's certified deduction application from
the county auditor. A certified copy of the resolution shall be sent
to the county auditor who shall make the deduction as provided
in section 5 of this chapter.
A determination about the number of years the deduction is allowed
that is made under subdivision (1) is final and may not be changed by
following the procedure under subdivision (2).
(e) Except for deductions related to redevelopment or rehabilitation
of real property in a county containing a consolidated city or a
deduction related to redevelopment or rehabilitation of real property
initiated before December 31, 1987, in areas designated as economic
revitalization areas before that date, a deduction for the redevelopment
or rehabilitation of real property may not be approved for the following
(1) Private or commercial golf course.
(2) Country club.
(3) Massage parlor.
(4) Tennis club.
(5) Skating facility (including roller skating, skateboarding, or ice
(6) Racquet sport facility (including any handball or racquetball
(7) Hot tub facility.
(8) Suntan facility.
(10) Any facility the primary purpose of which is:
(A) retail food and beverage service;
(B) automobile sales or service; or
(C) other retail;
unless the facility is located in an economic development target
area established under section 7 of this chapter.
(11) Residential, unless:
(A) the facility is a multifamily facility that contains at least
twenty percent (20%) of the units available for use by low and
moderate income individuals;
(B) the facility is located in an economic development target
area established under section 7 of this chapter; or
(C) the area is designated as a residentially distressed area.
(12) A package liquor store that holds a liquor dealer's permit
under IC 7.1-3-10 or any other entity that is required to operate
under a license issued under IC 7.1. This subdivision does not
apply to an applicant that:
(A) was eligible for tax abatement under this chapter before
July 1, 1995;
(B) is described in IC 7.1-5-7-11; or
(C) operates a facility under:
(i) a beer wholesaler's permit under IC 7.1-3-3;
(ii) a liquor wholesaler's permit under IC 7.1-3-8; or
(iii) a wine wholesaler's permit under IC 7.1-3-13;
for which the applicant claims a deduction under this
(f) This subsection applies only to a county having a population of
more than two hundred thousand (200,000) but less than three hundred
thousand (300,000). Notwithstanding subsection (e)(11), in a county
subject to this subsection a designating body may, before September 1,
2000, approve a deduction under this chapter for the redevelopment or
rehabilitation of real property consisting of residential facilities that are
located in unincorporated areas of the county if the designating body
makes a finding that the facilities are needed to serve any combination
of the following:
(1) Elderly persons who are predominately low-income or
(2) Disabled persons.
A designating body may adopt an ordinance approving a deduction
under this subsection only one (1) time. This subsection expires
January 1, 2011.
SOURCE: ; (04)IN1207.1.2. -->
SECTION 2. [EFFECTIVE UPON PASSAGE] IC 6-1.1-12.1-3, as
amended by this act, applies to property taxes first due and
payable after December 31, 2004.