Introduced Version






HOUSE BILL No. 1505

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 36-7-34.

Synopsis: Mesker Park Zoo tax area. Allows Vanderburgh County to designate the Mesker Park Zoo development tax area covering certain facilities. Requires the area to be established before July 1, 2006, and provides that the area terminates not later than December 31, 2035. Provides that covered taxes earned in the tax area are allocated to the Mesker Park Zoo account. Provides that money in the account may be used only for: (1) a Mesker Park Zoo capital improvement; or (2) the financing or refinancing of a capital improvement.

Effective: July 1, 2005.





Becker, Van Haaften, Hoy, Avery




    January 18, 2005, read first time and referred to Committee on Local Government.







Introduced

First Regular Session 114th General Assembly (2005)


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. 1505



    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 36-7-34; (05)IN1505.1.1. -->     SECTION 1. IC 36-7-34 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]:
     Chapter 34. Mesker Park Zoo Development Area
    Sec. 1. This chapter applies to Vanderburgh County.
    Sec. 2. As used in this chapter, "budget agency" means the budget agency established by IC 4-12-1-3.
    Sec. 3. As used in this chapter, "budget committee" has the meaning set forth in IC 4-12-1-3.
    Sec. 4. As used in this chapter, "covered taxes" means the following:
        (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) A food and beverage tax imposed under IC 6-9.
    Sec. 5. As used in this chapter, "department" refers to the department of state revenue.
    Sec. 6. As used in this chapter, "tax area" means the Mesker Park Zoo development tax area established under section 8 of this chapter.
    Sec. 7. As used in this chapter, "taxpayer" means a person that is liable for a covered tax.
    Sec. 8. The county legislative body may establish the Mesker Park Zoo development tax area. The tax area may include the following:
        (1) Any facility that is:
            (A) located in Vanderburgh County; and
            (B) part of Mesker Park Zoo.
        (2) Any parcel of land on which a facility described in subdivision (1) is located.
        (3) Noncontiguous tracts of land within Vanderburgh County.

    Sec. 9. (a) A tax area under this chapter must be initially established by resolution before July 1, 2006, 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 may be revised in the same manner as the tax area is established.
    (b) In establishing the tax area, the county legislative body must make the following findings instead of the findings required for the establishment of economic development areas:
        (1) There is a capital improvement or project that will be undertaken or has been undertaken in the tax area for a facility that is part of Mesker Park Zoo.
        (2) The capital improvement or project that will be undertaken or has been undertaken in the tax area will be of public utility and benefit.
    (c) A tax area established under this chapter is a special taxing district authorized by the general assembly to enable Vanderburgh County to provide special benefits to taxpayers by promoting economic development that is of public use and benefit.
    Sec. 10. (a) A resolution establishing a tax area must provide for the allocation of covered taxes earned or paid in the tax area to the Mesker Park Zoo account established for the county under section 14 of this chapter. The allocation provision must apply to the entire tax area. The resolution must provide that the tax area terminates not later than December 31, 2035.
    (b) In addition to the allocation made under subsection (a), any

state and local taxes on salary, wages, bonuses, or other compensation that is:
        (1) paid during a taxable year to an employee of Mesker Park Zoo;
        (2) taxable in Indiana; and
        (3) earned in the tax area;
must be allocated to the tax area.
    (c) The total amount of state revenue captured by the tax area may not exceed five dollars ($5) per resident of the county per year for twenty (20) consecutive years.
    (d) The resolution establishing the tax area must designate the facility or proposed facility for which the tax area is established.
    (e) The department may adopt rules under IC 4-22-2 and written guidelines to govern the allocation of covered taxes to a tax area.
    Sec. 11. Upon adoption of a resolution establishing a tax area under section 10 of this chapter, the county legislative body shall submit the resolution to the budget committee for review and recommendation to the budget agency.
    Sec. 12. (a) The budget agency must approve a resolution adopted under section 10 of this chapter before covered taxes may be allocated.
    (b) When considering a resolution, the budget committee and the budget agency must make the following findings:
        (1) The cost of the facility specified under the resolution exceeds ten thousand dollars ($10,000).
        (2) The capital improvement specified by the resolution is economically sound and will benefit the people of Indiana.
        (3) Vanderburgh County has committed significant resources toward completion of the improvement.
    Sec. 13. Whenever the county legislative body adopts an allocation provision under section 10 of this chapter, the county fiscal officer 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 fiscal officer shall update the list before July 1 of each year.
    Sec. 14. If a tax area is established under section 10 of this chapter, an account within the state general fund known as the

Mesker Park Zoo account is established for the tax area. The account shall be administered by the department. Money in the account does not revert to the state general fund at the end of a state fiscal year.
     Sec. 15. Covered taxes attributable to a taxing area under section 10 of this chapter shall be deposited in the Mesker Park Zoo account.
    Sec. 16. On or before the twentieth day of each month, all amounts held in the Mesker Park Zoo account shall be distributed to the county fiscal officer.

     Sec. 17. The department shall notify the county fiscal officer of the amount of taxes to be distributed to the county fiscal officer under this chapter.
    Sec. 18. All distributions from the Mesker Park Zoo account shall be made by warrants issued by the auditor of state to the treasurer of state ordering those payments to the county fiscal officer.
    Sec. 19. The resolution adopted under section 10 of this chapter establishing the tax area must designate the use of money in the account. Money in the account may be used only for:
        (1) a capital improvement that is part of Mesker Park Zoo; or
        (2) the financing or refinancing of a capital improvement described in subdivision (1) or the payment of lease payments for a capital improvement described in subdivision (1).
    Sec. 20. The county legislative body shall repay to the Mesker Park Zoo account any amount that is distributed to the county legislative body and used for:
        (1) a purpose that is not described in this chapter; or
        (2) a facility other than the facility to which covered taxes are designated under the resolution adopted under section 10 of this chapter.
The department shall distribute the covered taxes repaid to the Mesker Park Zoo account 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.
    Sec. 21. This chapter expires December 31, 2035.