SB 180-1_ Filed 01/15/2004, 11:07
The Senate Committee on Governmental Affairs and Interstate Cooperation, to which was
referred Senate Bill No. 180, has had the same under consideration and begs leave to report the
same back to the Senate with the recommendation that said bill be AMENDED as follows:
SOURCE: Page 2, line 24; (04)CR018001.2. -->
Page 2, delete lines 24 through 42, begin a new paragraph and insert:
SOURCE: IC 6-3.1-19-5; (04)CR018001.2. -->
"SECTION 2. IC 6-3.1-19-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 5. (a)
provided in subsection (b),
A taxpayer is not entitled to claim the credit
provided by this chapter to the extent that the taxpayer substantially
reduces or ceases its operations in Indiana in order to relocate them
within the district.
(b) Notwithstanding subsection (a), a taxpayer's substantial
reduction or cessation of operations in Indiana in order to relocate
operations to a district does not make a taxpayer ineligible for a credit
under this chapter if: (1)
Determinations under this section shall be made by the
department. The department shall adopt a proposed order
concerning a taxpayer's eligibility for the credit based on
subsection (b) and the following criteria:
(1) A site-specific economic activity, including sales, leasing,
service, manufacturing, production, storage of inventory, or
any activity involving permanent full-time or part-time
employees, shall be considered a business operation.
(2) With respect to an operation located outside the district
(referred to in this section as a "nondistrict operation"), any
of the following that occurs during the twelve (12) months
before the completion of the physical relocation of all or part
of the activity described in subdivision (1) from the
nondistrict operation to the district as compared with the
twelve (12) months before that twelve (12) months shall be
considered a substantial reduction:
(A) A reduction in the average number of full-time or
part-time employees of the lesser of one hundred (100)
employees or twenty-five percent (25%) of all employees.
(B) A twenty-five percent (25%) reduction in the average
number of goods manufactured or produced.
(C) A twenty-five percent (25%) reduction in the average
value of services provided.
(D) A ten percent (10%) reduction in the average value of
(E) A twenty-five percent (25%) reduction in the average
amount of gross income.
(b) Notwithstanding subsection (a), a taxpayer that would
otherwise be disqualified under subsection (a) is eligible for the
credit provided by this chapter if the taxpayer meets at least one
(1) of the following conditions:
(1) The taxpayer relocates all or part of its nondistrict
operation for any of the following reasons:
(A) The lease on property necessary for the nondistrict
operation has been involuntarily lost through no fault of
(B) The space available at the location of the nondistrict
operation cannot accommodate planned expansion needed
by the taxpayer.
(C) The building for the nondistrict operation has been
certified as uninhabitable by a state or local building
(D) The building for the nondistrict operation has been
totally destroyed through no fault of the taxpayer.
(E) The renovation and construction costs at the location
of the nondistrict operation are more than one and
one-half (1 1/2) times the costs of purchase, renovation,
and construction of a facility in the district, as certified by
three (3) independent estimates.
(F) The taxpayer had existing operations in the district and
operations relocated to the district are an
expansion of the taxpayer's operations in the district.
A taxpayer is eligible for benefits and incentives under clause
(C) or (D) only if renovation and construction costs at the
location of the nondistrict operation are more than one and
one-half (1 1/2) times the cost of purchase, renovation, and
construction of a facility in the district. These costs must be
certified by three (3) independent estimates.
(2) The taxpayer has not terminated or reduced the pension
or health insurance obligations payable to employees or
former employees of the nondistrict operation without the
consent of the employees.
(c) The department shall cause to be delivered to the taxpayer
and to any person who testified before the department in favor of
disqualification of the taxpayer a copy of the department's
proposed order. The taxpayer and these persons shall be
considered parties for purposes of this section.
(d) A party who wishes to appeal the proposed order of the
department shall, within ten (10) days after the party's receipt of
the proposed order, file written objections with the department.
The department shall immediately forward copies of the objections
to the director of the budget agency and the director of the
department of commerce. A hearing panel composed of the
commissioner of the department or the commissioner's designee,
the director of the budget agency or the director's designee, and
the director of the department of commerce or the director's
designee shall set the objections for oral argument and give notice
to the parties. A party at its own expense may cause to be filed
with the hearing panel a transcript of the oral testimony or any
other part of the record of the proceedings. The oral argument
shall be on the record filed with the hearing panel. The hearing
panel may hear additional evidence or remand the action to the
department with instructions appropriate to the expeditious and
proper disposition of the action. The hearing panel may adopt the
proposed order of the department, may amend or modify the
proposed order, or may make such order or determination as is
proper on the record. The affirmative votes of at least two (2)
members of the hearing panel are required for the hearing panel
to take action on any measure. The taxpayer may appeal the
decision of the hearing panel to the tax court in the same manner
that a final determination of the department may be appealed
under IC 33-3-5.
(e) If no objections are filed, the department may adopt the
proposed order without oral argument.
(c) (f) A determination that a taxpayer is not entitled to the credit
provided by this chapter as a result of a substantial reduction or
cessation of operations applies to credits that would otherwise arise in
the taxable year in which the substantial reduction or cessation occurs
and in all subsequent years. Determinations under this section shall be
made by the department of state revenue.".
SOURCE: Page 3, line 1; (04)CR018001.3. -->
Page 3, delete lines 1 through 39.
Renumber all SECTIONS consecutively.
(Reference is to SB 180 as introduced.)
and when so amended that said bill do pass.
Committee Vote: Yeas 10, Nays 0.
CR018001/DI 87 2004