Introduced Version
HOUSE BILL No. 1724
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-4; IC 4-6-12-8; IC 4-31-9-9; IC 6-1.1;
IC 6-3; IC 15-2.1-2-15; IC 15-8-1-3; IC 15-9; IC 24-9-4-7.
Synopsis: Agriculture. Permits the enterprise zone board to designate
certain areas as agricultural enterprise zones. Provides exemptions
from property taxes and the adjusted gross income tax for agricultural
processing facilities located in the zones. Provides that real and
personal property located in a zone may be assessed for payment of
property taxes committed to funding or paying bonded indebtedness or
certain lease rentals. Establishes the department of agriculture.
Provides that the commissioner of the department of agriculture is
appointed by the governor. Terminates the lieutenant governor's duty
to serve as the commissioner of agriculture. Transfers various duties
and responsibilities of the department of commerce relating to the
promotion of Indiana agriculture to the department of agriculture.
Makes an appropriation.
Effective: July 1, 2005.
Buck, Friend
January 19, 2005, read first time and referred to Committee on Agriculture and Rural
Development.
Introduced
First Regular Session 114th General Assembly (2005)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1724
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-3-2; (05)IN1724.1.1. -->
SECTION 1. IC 4-4-3-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 2. There is hereby created a state
department to be known as the department of commerce. The
lieutenant governor, by virtue of his the lieutenant governor's office,
shall serve as director of the department. and commissioner of
agriculture, and he The lieutenant governor shall receive no
additional salary in these capacities. for serving as the director of the
department.
SOURCE: IC 4-4-3-8; (05)IN1724.1.2. -->
SECTION 2. IC 4-4-3-8, AS AMENDED BY P.L.28-2004,
SECTION 23, AND AS AMENDED BY P.L.73-2004, SECTION 1, IS
CORRECTED AND AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 8. (a) The department shall develop
and promote programs designed to make the best use of the resources
of the state so as to assure a balanced economy and continuing
economic growth for Indiana and for those purposes may do the
following:
(1) Cooperate with federal, state, and local governments and
agencies in the coordination of programs to make the best use of
the resources of the state.
(2) Receive and expend all funds, grants, gifts, and contributions
of money, property, labor, interest accrued from loans made by
the department, and other things of value from public and private
sources, including grants from agencies and instrumentalities of
the state and the federal government. The department:
(A) may accept federal grants for providing planning
assistance, making grants, or providing other services or
functions necessary to political subdivisions, planning
commissions, or other public or private organizations;
(B) shall administer these grants in accordance with their
terms; and
(C) may contract with political subdivisions, planning
commissions, or other public or private organizations to carry
out the purposes for which the grants were made.
(3) Direct that assistance, information, and advice regarding the
duties and functions of the department be given the department by
any officer, agent, or employee of the state. The head of any other
state department or agency may assign one (1) or more of the
department's or agency's employees to the department on a
temporary basis, or may direct any division or agency under the
department's or agency's supervision and control to make any
special study or survey requested by the director.
(b) The department shall perform the following duties:
(1) Disseminate information concerning the industrial,
commercial, governmental, educational, cultural, recreational,
agricultural, and other advantages of Indiana.
(2) Plan, direct, and conduct research activities.
(3) Develop and implement industrial development programs to
encourage expansion of existing industrial, commercial, and
business facilities within Indiana and to encourage new industrial,
commercial, and business locations within Indiana.
(4) Assist businesses and industries in acquiring, improving, and
developing overseas markets and encourage international plant
locations within Indiana. The director, with the approval of the
governor, may establish foreign offices to assist in this function.
(5) Promote the growth of minority business enterprises by doing
the following:
(A) Mobilizing and coordinating the activities, resources, and
efforts of governmental and private agencies, businesses, trade
associations, institutions, and individuals.
(B) Assisting minority businesses in obtaining governmental
or commercial financing for expansion, establishment of new
businesses, or individual development projects.
(C) Aiding minority businesses in procuring contracts from
governmental or private sources, or both.
(D) Providing technical, managerial, and counseling assistance
to minority business enterprises.
(6) Assist in community economic development planning and the
implementation of programs designed to further this development.
(7) Assist in the development and promotion of Indiana's tourist
resources, facilities, attractions, and activities.
(8) Assist in the promotion and marketing of Indiana's agricultural
products, and provide staff assistance to the director in fulfilling
the director's responsibilities as commissioner of agriculture.
(9) (8) Perform the following energy related functions:
(A) Assist in the development and promotion of alternative
energy resources, including Indiana coal, oil shale,
hydropower, solar, wind, geothermal, and biomass resources.
(B) Encourage the conservation and efficient use of energy,
including energy use in commercial, industrial, residential,
governmental, agricultural, transportation, recreational, and
educational sectors.
(C) Assist in energy emergency preparedness.
(D)
Not later than January 1, 1994, Establish:
(i) specific goals for increased energy efficiency in the
operations of state government and for the use of alternative
fuels in vehicles owned by the state; and
(ii) guidelines for achieving the goals established under item
(i).
(E) Establish procedures for state agencies to use in reporting
to the department on energy issues.
(F) Carry out studies, research projects, and other activities
required to:
(i) assess the nature and extent of energy resources required
to meet the needs of the state, including coal and other fossil
fuels, alcohol fuels produced from agricultural and forest
products and resources, renewable energy, and other energy
resources;
(ii) promote cooperation among government, utilities,
industry, institutions of higher education, consumers, and all
other parties interested in energy and recycling market
development issues; and
(iii) promote the dissemination of information concerning
energy and recycling market development issues.
(10) (9) Implement any federal program delegated to the state to
effectuate the purposes of this chapter.
(11) (10) Promote the growth of small businesses by doing the
following:
(A) Assisting small businesses in obtaining and preparing the
permits required to conduct business in Indiana.
(B) Serving as a liaison between small businesses and state
agencies.
(C) Providing information concerning business assistance
programs available through government agencies and private
sources.
(12) Assist the Indiana commission for agriculture and rural
development in performing its functions under IC 4-4-22.
(13) (11) Develop and promote markets for the following
recyclable items:
(A) Aluminum containers.
(B) Corrugated paper.
(C) Glass containers.
(D) Magazines.
(E) Steel containers.
(F) Newspapers.
(G) Office waste paper.
(H) Plastic containers.
(I) Foam polystyrene packaging.
(J) Containers for carbonated or malt beverages that are
primarily made of a combination of steel and aluminum.
(14) (12) Produce an annual recycled products guide and at least
one (1) time each year distribute the guide to the following:
(A) State agencies.
(B) The judicial department of state government.
(C) The legislative department of state government.
(D) State educational institutions (as defined in
IC 20-12-0.5-1).
(E) Political subdivisions (as defined in IC 36-1-2-13).
(F) Bodies corporate and politic created by statute.
A recycled products guide distributed under this subdivision must
include a description of supplies and other products that contain
recycled material and information concerning the availability of
the supplies and products.
(15) (13) Beginning July 1, 2005, the department shall identify,
promote, assist, and fund home ownership education programs
conducted throughout Indiana by nonprofit counseling agencies
certified by the department using funds appropriated under
IC 4-4-3-23(e). The department shall adopt rules under IC 4-22-2
governing certification procedures and counseling requirements
for nonprofit home ownership counselors. The attorney general
and the entities listed in IC 4-6-12-4(a)(1) through
IC 4-6-12-4(a)(10) shall cooperate with the department in
implementing this subdivision.
(c) The department shall submit a report in an electronic format
under IC 5-14-6 to the general assembly before October 1 of each year
concerning the availability of and location of markets for recycled
products in Indiana. The report must include the following:
(1) A priority listing of recyclable materials to be targeted for
market development. The listing must be based on an examination
of the need and opportunities for the marketing of the following:
(A) Paper.
(B) Glass.
(C) Aluminum containers.
(D) Steel containers.
(E) Bi-metal containers.
(F) Glass containers.
(G) Plastic containers.
(H) Landscape waste.
(I) Construction materials.
(J) Waste oil.
(K) Waste tires.
(L) Coal combustion wastes.
(M) Other materials.
(2) A presentation of a market development strategy that:
(A) considers the specific material marketing needs of Indiana;
and
(B) makes recommendations for legislative action.
(3) An analysis that examines the cost and effectiveness of future
market development options.
SOURCE: IC 4-4-3-23; (05)IN1724.1.3. -->
SECTION 3. IC 4-4-3-23 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 23.
(a) The home ownership
education account within the state general fund is established to
support the home ownership education programs established under
section 8(b)(15) section 8(b)(13) of this chapter. The account is
administered by the department.
(b) The home ownership education account consists of fees
collected under IC 24-9-9.
(c) The expenses of administering the home ownership education
account shall be paid from money in the fund.
(d) The treasurer of state shall invest the money in the home
ownership education account not currently needed to meet the
obligations of the account in the same manner as other public money
may be invested.
(e) Money in the account may be spent only after appropriation by
the general assembly.
SOURCE: IC 4-4-6.1-1.1; (05)IN1724.1.4. -->
SECTION 4. IC 4-4-6.1-1.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 1.1. (a) As used in this
chapter, "zone business" means any entity that accesses at least one (1)
tax credit or exemption incentive available under this chapter,
IC 6-1.1-20.8, or IC 6-3-3-10.
(b) The term does not include a business located in an
agricultural enterprise zone that receives an exemption incentive
under IC 6-1.1-10-44 or IC 6-3-2-20.
SOURCE: IC 4-4-6.1-1.5; (05)IN1724.1.5. -->
SECTION 5. IC 4-4-6.1-1.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 1.5. As used in this chapter, "development plan"
means a written plan that addresses the criteria set forth in section
3.5 of this chapter and includes all the following:
(1) A map of the proposed agricultural enterprise zone that
indicates the geographic boundaries, the total area, and the
present use and conditions generally of the land and
structures within those boundaries.
(2) Evidence of community support and commitment.
(3) A description of the methods proposed to increase
economic opportunity and expansion, facilitate infrastructure
improvement, and identify job training opportunities.
(4) A description of current social, economic, and
demographic characteristics of the proposed agricultural
enterprise zone and improvements in education, health,
human services, public safety, and employment that are
anticipated if the agricultural enterprise zone is created.
(5) Any other information required by the board.
SOURCE: IC 4-4-6.1-1.6; (05)IN1724.1.6. -->
SECTION 6. IC 4-4-6.1-1.6 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 1.6. As used in this chapter, "agricultural processing
facility" means:
(1) the land on which a building or complex of buildings
described in subdivision (2) is situated; and
(2) a building or complex of buildings that is used, or that is
designed and constructed to be used, to:
(A) transform agricultural products into goods that are
used for intermediate or final consumption, including
goods for nonfood use; or
(B) package, sort, or grade agricultural products.
SOURCE: IC 4-4-6.1-2; (05)IN1724.1.7. -->
SECTION 7. IC 4-4-6.1-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) The board has the
following powers, in addition to other powers that are contained in this
chapter:
(1) To review and approve or reject all applicants for enterprise
zone designation, according to the criteria for designation which
this chapter provides.
(2) To waive or modify rules as provided in this chapter.
(3) To provide a procedure by which enterprise zones may be
monitored and evaluated on an annual basis.
(4) To adopt rules for the disqualification of a zone business from
eligibility for any or all incentives available to zone businesses,
if that zone business does not do one (1) of the following:
(A) If all of its incentives, as contained in the summary
required under section 2.5 of this chapter, exceed one
thousand dollars ($1,000) in any year, pay a registration fee to
the board in an amount equal to one percent (1%) of all of its
incentives.
(B) Use all of its incentives, except for the amount of
registration fee, for its property or employees in the zone.
(C) Remain open and operating as a zone business for twelve
(12) months of the assessment year for which the incentive is
claimed.
(5) To disqualify a zone business from eligibility for any or all
incentives available to zone businesses in accordance with the
procedures set forth in the board's rules.
(6) After a recommendation from an urban enterprise association,
to modify an enterprise zone boundary if the board determines
that the modification:
(A) is in the best interests of the zone; and
(B) meets the threshold criteria and factors set forth in section
3 of this chapter.
(7) To employ staff and contract for services.
(8) To receive funds from any source and expend these funds for
the administration and promotion of the enterprise zone program.
(9) To make determinations under IC 6-3.1-11 concerning the
designation of locations as industrial recovery sites and the
availability of the credit provided by IC 6-1.1-20.7 to persons
owning inventory located on an industrial recovery site.
(10) To make determinations under IC 6-1.1-20.7 and IC 6-3.1-11
concerning the disqualification of persons from claiming credits
provided by those chapters in appropriate cases.
(11) To make determinations under IC 6-3.1-11.5 concerning the
designation of locations as military base recovery sites and the
availability of the credit provided by IC 6-3.1-11.5 to persons
making qualified investments in military base recovery sites.
(12) To make determinations under IC 6-3.1-11.5 concerning the
disqualification of persons from claiming the credit provided by
IC 6-3.1-11.5 in appropriate cases.
(13) To do the following concerning agricultural enterprise
zones:
(A) Review and approve or reject all applications for
agricultural enterprise zone designation, according to the
criteria for designation set forth in this chapter.
(B) Approve or reject the geographic boundaries and the
total area of a proposed agricultural enterprise zone as
submitted in the application.
(b) In addition to a registration fee paid under subsection (a)(4),
each zone business that receives a credit under this chapter shall assist
the zone urban enterprise association created under section 4 of this
chapter in an amount determined by the legislative body of the
municipality in which the zone is located. If a zone business does not
assist an urban enterprise association, the legislative body of the
municipality in which the zone is located may pass an ordinance
disqualifying a zone business from eligibility for all credits or
incentives available to zone businesses. If a legislative body
disqualifies a zone business under this subsection, the legislative body
shall notify the board, the department of local government finance, and
the department of state revenue in writing within thirty (30) days of the
passage of the ordinance disqualifying the zone business.
Disqualification of a zone business under this section is effective
beginning with the taxable year in which the ordinance disqualifying
the zone business is passed.
SOURCE: IC 4-4-6.1-3.5; (05)IN1724.1.8. -->
SECTION 8. IC 4-4-6.1-3.5 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Sec. 3.5. (a) After approval by resolution of the legislative
body, the executive of a municipality that is not an included town
under IC 36-3-1-7 may submit an application to the enterprise zone
board to have an agricultural enterprise zone designated within the
municipality. If an application is denied, the executive may submit
a new application. The board shall provide application procedures
by rule.
(b) The board may designate up to ten (10) agricultural
enterprise zones. A municipality may not contain more than one (1)
agricultural enterprise zone. An agricultural enterprise zone must
have a continuous boundary.
(c) The board shall evaluate an agricultural enterprise zone
application if the board finds that the proposed zone meets the
following threshold criteria:
(1) Either of the following conditions exists in the proposed
zone:
(A) At least twenty-five percent (25%) of the households in
the proposed zone are below the poverty level, as
established by the most recent United States census.
(B) The average rate of unemployment in the proposed
zone for the most recent eighteen (18) month period for
which data is available is at least one and one-half (1 1/2)
times the average statewide rate of unemployment for the
same eighteen (18) month period.
(2) The territory of the proposed zone is entirely within the
applicant municipality and is suitable for the development of
at least one (1) agricultural processing facility.
(3) The municipality contains an enterprise zone established
under this chapter and an urban enterprise association that
meets the requirements of section 4 of this chapter has been
appointed.
(d) If an applicant meets the threshold criteria set forth in
subsection (c), the board shall evaluate the application, arrive at a
decision, and either designate an agricultural enterprise zone or
reject the application based on the following factors:
(1) The level of poverty, unemployment, and general distress
of the area in comparison with other applicant and
nonapplicant municipalities, and the expression of need for an
agricultural enterprise zone above the threshold criteria set
forth in subsection (c).
(2) Evidence of support for designation by residents,
businesses, and private organizations in the proposed zone
and the demonstration of a willingness among zone
constituents to participate in zone area revitalization.
(3) Efforts by the applicant municipality to reduce the
impediments to development in the zone area where
necessary, including the following:
(A) A procedure for streamlining local government
regulations and permit procedures.
(B) Crime prevention activities involving zone residents.
(C) A plan for infrastructure improvements capable of
supporting increased development activity.
(4) Significant efforts to encourage the reuse of existing zone
structures in new development activities to preserve the
existing character of the neighborhood, where appropriate.
(5) The capacity of the urban enterprise association to carry
out the purposes of this chapter.
(e) An agricultural enterprise zone expires fifteen (15) years
after the date the zone is designated by the board.
(f) The board may not approve the enlargement of an
agricultural enterprise zone's geographic boundaries unless the
area to be enlarged meets the criteria of economic distress set forth
in subsection (c)(1).
(g) The board may not do the following:
(1) Consider an application for agricultural enterprise zone
designation that is submitted after September 30, 2006.
(2) Designate an agricultural enterprise zone before January
1, 2006, or after December 31, 2006.
SOURCE: IC 4-4-6.1-6.5; (05)IN1724.1.9. -->
SECTION 9. IC 4-4-6.1-6.5 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Sec. 6.5. (a) A business that substantially reduces or ceases
an operation located in Indiana and outside an agricultural
enterprise zone (referred to as a nonzone operation) in order to
relocate in an agricultural enterprise zone is disqualified from
benefits or incentives available to agricultural enterprise zone
businesses. Determinations under this section shall be made by a
hearing panel composed of the chair of the board or the chair's
designee, the commissioner of the department of state revenue or
the commissioner's designee, and the commissioner of the
department of local government finance or the commissioner's
designee. The panel, following an evidentiary hearing held after the
relocation of the business, shall submit a recommended order to
the board for its adoption. The recommended order must be based
on the following criteria and subsection (b):
(1) A site specific economic activity, including sales, leasing,
service, manufacturing, production, storage of inventory, or
any activity involving permanent full-time employees or
part-time employees shall be considered a business operation.
(2) With respect to a nonzone 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 nonzone
operation to the zone, as compared with the twelve (12)
months before that twelve (12) months, shall be considered a
substantial reduction for purposes of this subsection:
(A) A reduction in the average number of full-time or
part-time employees by 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
stored inventory.
(E) A twenty-five percent (25%) reduction in the average
amount of gross income.
(b) Notwithstanding subsection (a), a business that would
otherwise be disqualified under subsection (a) is eligible for
benefits and incentives available to agricultural enterprise zone
businesses if each of the following conditions is met:
(1) The business relocates its nonzone operation for any of the
following reasons:
(A) The lease on property necessary for the nonzone
operation has been involuntarily lost through no fault of
the business.
(B) The space available at the location of the nonzone
operation cannot accommodate planned expansion needed
by the business.
(C) The building for the nonzone operation has been
certified as uninhabitable by a state or local building
authority, and the renovation and construction costs at the
location of the nonzone operation are more than one and
one-half (1 1/2) times the cost of purchase, renovation, or
construction of a facility in the zone, as certified by three
(3) independent estimates.
(D) The building for the nonzone operation has been totally
destroyed through no fault of the business, and the
renovation and construction costs at the location of the
nonzone operation are more than one and one-half (1 1/2)
times the costs of purchase, renovation, or construction of
a facility in the zone, as certified by three (3) independent
estimates.
(E) A planned expansion needed by the business is not
feasible at the nonzone location because the renovation and
construction costs at the location of the nonzone operation
are more than one and one-half (1 1/2) times the costs of
purchase, renovation, or construction of a facility in the
zone, as certified by three (3) independent estimates.
(2) The business has not terminated or reduced the pension or
health insurance obligations payable to employees or former
employees of the nonzone operation without the consent of the
employees.
(c) The hearing panel shall deliver to the business and to any
person who testified before the panel in favor of disqualification of
the business a copy of the panel's recommended order. The
business and those persons are parties for purposes of this section.
(d) A party who wishes to oppose the board's adoption of the
recommended order of the hearing panel shall, not later than ten
(10) days after the party's receipt of the recommended order, file
written objections with the board. The board 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 board a
transcript of the oral testimony or any other part of the record of
the proceedings. The oral argument must be on the record filed
with the board. The board may hear additional evidence or
remand the action to the hearing panel with instructions
appropriate to the expeditious and proper disposition of the action.
The board may adopt the recommendations of the hearing panel,
amend or modify the recommendations, or make an order or
determination as is proper on the record.
(e) If no objections are filed, the board may adopt the
recommended order without oral argument. If the board does not
adopt the recommended order, the parties shall be notified and the
action shall be set for oral argument as provided in subsection (d).
(f) The final determination made by the board shall be made by
a majority of the quorum needed for board meetings.
SOURCE: IC 4-4-6.1-9; (05)IN1724.1.10. -->
SECTION 10. IC 4-4-6.1-9 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Sec. 9. (a) The board shall prescribe:
(1) the form of the application for an agricultural enterprise
zone designation; and
(2) the form required to collect information from an
agricultural enterprise zone business under subsection (b).
(b) Before April 1 of each year, an agricultural enterprise zone
business shall report the following to the board:
(1) The number of employees who are employed in Indiana by
the business.
(2) The compensation (including benefits) paid to the
employees of the business in Indiana.
(3) The number of employees who are employed in an
agricultural enterprise zone by the business.
(4) The number of employees who were employed by the
business in the territory of the agricultural enterprise zone
before the designation of the agricultural enterprise zone.
(5) The number of employees who were added by the business
following the designation of the agricultural enterprise zone.
(6) The compensation (including benefits) paid to the
employees described in subdivision (4).
(7) The compensation (including benefits) paid to the
employees described in subdivision (5).
(8) The total Indiana income of the business.
(9) The income of the business derived from sources inside an
agricultural enterprise zone.
(10) The amount of the:
(A) facility improvements;
(B) equipment and machinery upgrades, repairs, or
retrofits; or
(C) other direct business related investments, including
training;
made by the business in an agricultural enterprise zone in the
preceding calendar year.
(11) The total amount of the:
(A) facility improvements;
(B) equipment and machinery upgrades, repairs, or
retrofits; or
(C) other direct business related investments, including
training;
made by the business in an agricultural enterprise zone since
the date of the agricultural enterprise zone designation.
An agricultural enterprise zone business shall submit to the board
income tax returns, assessment records, personal property tax
returns, and any other supporting documentation requested by the
board. The board shall report the failure of an agricultural
enterprise zone business to comply with this section to the
department of state revenue.
(c) The board shall contract with a state university to prepare
an annual report to the legislative council on the economic effects
of this chapter in each agricultural enterprise zone. The report
must be in electronic format under IC 5-14-6 and must include the
following information:
(1) The number of new jobs created.
(2) The percentage change in assessed value.
(3) The average wage of new jobs created.
SOURCE: IC 4-4-22-3; (05)IN1724.1.11. -->
SECTION 11. IC 4-4-22-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3. As used in this
chapter, "department" refers to the department of commerce.
agriculture established by IC 15-9-2-1.
SOURCE: IC 4-6-12-8; (05)IN1724.1.12. -->
SECTION 12. IC 4-6-12-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 8. The unit shall
cooperate with the department of commerce in the development and
implementation of the home ownership education programs established
under IC 4-4-3-8(b)(15). IC 4-4-3-8(b)(13).
SOURCE: IC 4-31-9-9; (05)IN1724.1.13. -->
SECTION 13. IC 4-31-9-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 9. (a) Before January
15 and July 15 of each year, each permit holder that operates satellite
facilities shall forward to the auditor of state an amount equal to
one-half of one percent (0.5%) of the total amount of money wagered
at that permit holder's satellite facilities during the six (6) month period
ending on the last day of the preceding month. The auditor of state
shall distribute amounts received under this section as follows:
(1) Fifty percent (50%) of the amounts received shall be deposited
in the livestock industry promotion and development fund
established by IC 4-4-3.2. IC 15-9-4-2.
(2) Fifty percent (50%) of the amounts received shall be
distributed to the state fair commission for use in any activity that
the commission is authorized to carry out under IC 15-1.5-3.
(b) Payments required by this section shall be made from amounts
withheld by the permit holder under section 1 of this chapter.
SOURCE: IC 6-1.1-10-44; (05)IN1724.1.14. -->
SECTION 14. IC 6-1.1-10-44 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]:
Sec. 44. (a) Except as provided in this
section, the following are exempt from property taxation under this
article if the taxpayer qualifies under subsection (b):
(1) An agricultural processing facility (as defined in
IC 4-4-6.1-1.6) that is located inside an agricultural enterprise
zone.
(2) The business personal property (as defined in
IC 6-1.1-21-2) of an agricultural processing facility described
in subdivision (1).
(b) To receive an exemption under subsection (a), a taxpayer
must do either of the following:
(1) Invest at least one million dollars ($1,000,000) in the
taxpayer's agricultural processing facility and create at least
five (5) new jobs, in the case of an agricultural processing
facility that relocates inside an agricultural enterprise zone.
(2) Increase the number of full-time employees working at the
taxpayer's agricultural processing facility by at least ten
percent (10%) after the date of the agricultural enterprise
zone designation, in the case of an agricultural processing
facility located inside an agricultural enterprise zone as of the
date of the zone's designation.
(c) A taxpayer is not eligible for an exemption under this section
if the taxpayer is delinquent in the payment of an ad valorem
property tax assessed and imposed under this article.
(d) Notwithstanding subsection (a), the real property and the
business personal property of an agricultural processing facility
located in an agricultural enterprise zone shall be assessed for the
payment of ad valorem property tax levies committed to pay or
fund either:
(1) bonded indebtedness; or
(2) lease rentals under a lease with an original term of at least
five (5) years.
(e) A taxpayer is eligible for an exemption under this section
until the department of local government finance, with the
assistance of the department of state revenue, determines that the
total state and local tax revenue foregone as a result of all
exemptions and deductions granted to the taxpayer under the
agricultural enterprise zone program reaches ten million dollars
($10,000,000).
(f) During the last three (3) years that the taxpayer is eligible for
an exemption under this section, the exemption shall be reduced by
the following percentages:
(1) Twenty-five percent (25%) for the year that is two (2)
years before the final year of designation as an agricultural
enterprise zone.
(2) Fifty percent (50%) for the year that immediately
precedes the final year of designation as an agricultural
enterprise zone.
(3) Seventy-five percent (75%) for the final year of
designation as an agricultural enterprise zone.
(g) An agricultural processing facility located inside an
agricultural enterprise zone that receives an exemption under this
section may not receive a tax incentive or benefit provided to an
enterprise zone business under the following statutes:
(1) IC 6-1.1-20.8.
(2) IC 6-3-3-10.
(3) IC 6-3.1-7.
(4) IC 6-3.1-9.
(5) IC 6-3.1-10.
(h) An exemption under this section expires when the
designation of the agricultural enterprise zone expires.
SOURCE: IC 6-1.1-11-3; (05)IN1724.1.15. -->
SECTION 15. IC 6-1.1-11-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3. (a) Subject to
subsections (e) and (f), an owner of tangible property who wishes to
obtain an exemption from property taxation shall file a certified
application in duplicate with the county assessor of the county in which
the property that is the subject of the exemption is located. The
application must be filed annually on or before May 15 on forms
prescribed by the department of local government finance. Except as
provided in sections 1, 3.5, and 4, and 4.5 of this chapter, the
application applies only for the taxes imposed for the year for which
the application is filed.
(b) The authority for signing an exemption application may not be
delegated by the owner of the property to any other person except by
an executed power of attorney.
(c) An exemption application which is required under this chapter
shall contain the following information:
(1) A description of the property claimed to be exempt in
sufficient detail to afford identification.
(2) A statement showing the ownership, possession, and use of
the property.
(3) The grounds for claiming the exemption.
(4) The full name and address of the applicant.
(5) For the year that ends on the assessment date of the property,
identification of:
(A) each part of the property used or occupied; and
(B) each part of the property not used or occupied;
for one (1) or more exempt purposes under IC 6-1.1-10 during the
time the property is used or occupied.
(6) Any additional information which the department of local
government finance may require.
(d) A person who signs an exemption application shall attest in
writing and under penalties of perjury that, to the best of the person's
knowledge and belief, a predominant part of the property claimed to be
exempt is not being used or occupied in connection with a trade or
business that is not substantially related to the exercise or performance
of the organization's exempt purpose.
(e) An owner must file with an application for exemption of real
property under subsection (a) or section 5 of this chapter a copy of the
township assessor's record kept under IC 6-1.1-4-25(a) that shows the
calculation of the assessed value of the real property for the assessment
date for which the exemption is claimed. Upon receipt of the
exemption application, the county assessor shall examine that record
and determine if the real property for which the exemption is claimed
is properly assessed. If the county assessor determines that the real
property is not properly assessed, the county assessor shall direct the
township assessor of the township in which the real property is located
to:
(1) properly assess the real property; and
(2) notify the county assessor and county auditor of the proper
assessment.
(f) If the county assessor determines that the applicant has not filed
with an application for exemption a copy of the record referred to in
subsection (e), the county assessor shall notify the applicant in writing
of that requirement. The applicant then has thirty (30) days after the
date of the notice to comply with that requirement. The county property
tax assessment board of appeals shall deny an application described in
this subsection if the applicant does not comply with that requirement
within the time permitted under this subsection.
SOURCE: IC 6-1.1-11-4.5; (05)IN1724.1.16. -->
SECTION 16. IC 6-1.1-11-4.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 4.5. (a) An owner of an
agricultural processing facility located inside an agricultural
enterprise zone who wishes to obtain an exemption under
IC 6-1.1-10-44 must file a certified application in duplicate with the
county assessor of the county in which the property is located. The
application must be filed before February 16 on forms prescribed
by the department of local government finance.
(b) The authority for signing an exemption application may not
be delegated by the owner of the property to any other person
except by an executed power of attorney.
(c) An exemption application required under this section must
contain the following information:
(1) A description of the property claimed as exempt, in
sufficient detail to enable identification.
(2) A statement showing the ownership of the property.
(3) The grounds for claiming the exemption.
(4) The full name and address of the applicant.
(5) Any additional information the department of local
government finance requires.
(d) The owner of an agricultural processing facility located
inside an agricultural enterprise zone is not required to file an
additional application if the owner remains eligible for an
agricultural enterprise zone tax exemption under IC 6-1.1-10-44.
(e) The department of local government finance may adopt rules
necessary to implement this section.
SOURCE: IC 6-3-1-3.5; (05)IN1724.1.17. -->
SECTION 17. IC 6-3-1-3.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3.5. When used in this
article, the term "adjusted gross income" shall mean the following:
(a) In the case of all individuals, "adjusted gross income" (as
defined in Section 62 of the Internal Revenue Code), modified as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 62 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(3) Subtract one thousand dollars ($1,000), or in the case of a
joint return filed by a husband and wife, subtract for each spouse
one thousand dollars ($1,000).
(4) Subtract one thousand dollars ($1,000) for:
(A) each of the exemptions provided by Section 151(c) of the
Internal Revenue Code;
(B) each additional amount allowable under Section 63(f) of
the Internal Revenue Code; and
(C) the spouse of the taxpayer if a separate return is made by
the taxpayer and if the spouse, for the calendar year in which
the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(5) Subtract:
(A) one thousand five hundred dollars ($1,500) for each of the
exemptions allowed under Section 151(c)(1)(B) of the Internal
Revenue Code for taxable years beginning after December 31,
1996; and
(B) five hundred dollars ($500) for each additional amount
allowable under Section 63(f)(1) of the Internal Revenue Code
if the adjusted gross income of the taxpayer, or the taxpayer
and the taxpayer's spouse in the case of a joint return, is less
than forty thousand dollars ($40,000).
This amount is in addition to the amount subtracted under
subdivision (4).
(6) Subtract an amount equal to the lesser of:
(A) that part of the individual's adjusted gross income (as
defined in Section 62 of the Internal Revenue Code) for that
taxable year that is subject to a tax that is imposed by a
political subdivision of another state and that is imposed on or
measured by income; or
(B) two thousand dollars ($2,000).
(7) Add an amount equal to the total capital gain portion of a
lump sum distribution (as defined in Section 402(e)(4)(D) of the
Internal Revenue Code) if the lump sum distribution is received
by the individual during the taxable year and if the capital gain
portion of the distribution is taxed in the manner provided in
Section 402 of the Internal Revenue Code.
(8) Subtract any amounts included in federal adjusted gross
income under Section 111 of the Internal Revenue Code as a
recovery of items previously deducted as an itemized deduction
from adjusted gross income.
(9) Subtract any amounts included in federal adjusted gross
income under the Internal Revenue Code which amounts were
received by the individual as supplemental railroad retirement
annuities under 45 U.S.C. 231 and which are not deductible under
subdivision (1).
(10) Add an amount equal to the deduction allowed under Section
221 of the Internal Revenue Code for married couples filing joint
returns if the taxable year began before January 1, 1987.
(11) Add an amount equal to the interest excluded from federal
gross income by the individual for the taxable year under Section
128 of the Internal Revenue Code if the taxable year began before
January 1, 1985.
(12) Subtract an amount equal to the amount of federal Social
Security and Railroad Retirement benefits included in a taxpayer's
federal gross income by Section 86 of the Internal Revenue Code.
(13) In the case of a nonresident taxpayer or a resident taxpayer
residing in Indiana for a period of less than the taxpayer's entire
taxable year, the total amount of the deductions allowed pursuant
to subdivisions (3), (4), (5), and (6) shall be reduced to an amount
which bears the same ratio to the total as the taxpayer's income
taxable in Indiana bears to the taxpayer's total income.
(14) In the case of an individual who is a recipient of assistance
under IC 12-10-6-1, IC 12-10-6-2.1, IC 12-15-2-2, or IC 12-15-7,
subtract an amount equal to that portion of the individual's
adjusted gross income with respect to which the individual is not
allowed under federal law to retain an amount to pay state and
local income taxes.
(15) In the case of an eligible individual, subtract the amount of
a Holocaust victim's settlement payment included in the
individual's federal adjusted gross income.
(16) For taxable years beginning after December 31, 1999,
subtract an amount equal to the portion of any premiums paid
during the taxable year by the taxpayer for a qualified long term
care policy (as defined in IC 12-15-39.6-5) for the taxpayer or the
taxpayer's spouse, or both.
(17) Subtract an amount equal to the lesser of:
(A) for a taxable year:
(i) including any part of 2004, the amount determined under
subsection (f); and
(ii) beginning after December 31, 2004, two thousand five
hundred dollars ($2,500); or
(B) the amount of property taxes that are paid during the
taxable year in Indiana by the individual on the individual's
principal place of residence.
(18) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the individual's
federal adjusted gross income.
(19) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to
apply bonus depreciation to the property in the year that it was
placed in service.
(20) Add an amount equal to any deduction allowed under
Section 172 of the Internal Revenue Code.
(21) Subtract income that is:
(A) exempt under IC 6-3-2-20 from taxation under this
article; and
(B) included in the individual's federal adjusted gross
income.
(b) In the case of corporations, the same as "taxable income" (as
defined in Section 63 of the Internal Revenue Code) adjusted as
follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 170 of the Internal Revenue
Code.
(3) Add an amount equal to any deduction or deductions allowed
or allowable pursuant to Section 63 of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state of the United States.
(4) Subtract an amount equal to the amount included in the
corporation's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to
apply bonus depreciation to the property in the year that it was
placed in service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(7) Subtract income that is:
(A) exempt under IC 6-3-2-20 from taxation under this
article; and
(B) included in the corporation's taxable income under the
Internal Revenue Code.
(c) In the case of life insurance companies (as defined in Section
816(a) of the Internal Revenue Code) that are organized under Indiana
law, the same as "life insurance company taxable income" (as defined
in Section 801 of the Internal Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to
apply bonus depreciation to the property in the year that it was
placed in service.
(6) Add an amount equal to any deduction allowed under Section
172 or Section 810 of the Internal Revenue Code.
(d) In the case of insurance companies subject to tax under Section
831 of the Internal Revenue Code and organized under Indiana law, the
same as "taxable income" (as defined in Section 832 of the Internal
Revenue Code), adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Add an amount equal to any deduction allowed or allowable
under Section 170 of the Internal Revenue Code.
(3) Add an amount equal to a deduction allowed or allowable
under Section 805 or Section 831(c) of the Internal Revenue Code
for taxes based on or measured by income and levied at the state
level by any state.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(5) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to
apply bonus depreciation to the property in the year that it was
placed in service.
(6) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(e) In the case of trusts and estates, "taxable income" (as defined for
trusts and estates in Section 641(b) of the Internal Revenue Code)
adjusted as follows:
(1) Subtract income that is exempt from taxation under this article
by the Constitution and statutes of the United States.
(2) Subtract an amount equal to the amount of a September 11
terrorist attack settlement payment included in the federal
adjusted gross income of the estate of a victim of the September
11 terrorist attack or a trust to the extent the trust benefits a victim
of the September 11 terrorist attack.
(3) Add or subtract the amount necessary to make the adjusted
gross income of any taxpayer that owns property for which bonus
depreciation was allowed in the current taxable year or in an
earlier taxable year equal to the amount of adjusted gross income
that would have been computed had an election not been made
under Section 168(k)(2)(C)(iii) of the Internal Revenue Code to
apply bonus depreciation to the property in the year that it was
placed in service.
(4) Add an amount equal to any deduction allowed under Section
172 of the Internal Revenue Code.
(f) This subsection applies only to the extent that an individual paid
property taxes in 2004 that were imposed for the March 1, 2002,
assessment date or the January 15, 2003, assessment date. The
maximum amount of the deduction under subsection (a)(17) is equal
to the amount determined under STEP FIVE of the following formula:
STEP ONE: Determine the amount of property taxes that the
taxpayer paid after December 31, 2003, in the taxable year for
property taxes imposed for the March 1, 2002, assessment date
and the January 15, 2003, assessment date.
STEP TWO: Determine the amount of property taxes that the
taxpayer paid in the taxable year for the March 1, 2003,
assessment date and the January 15, 2004, assessment date.
STEP THREE: Determine the result of the STEP ONE amount
divided by the STEP TWO amount.
STEP FOUR: Multiply the STEP THREE amount by two
thousand five hundred dollars ($2,500).
STEP FIVE: Determine the sum of the STEP
THREE FOUR
amount and two thousand five hundred dollars ($2,500).
SOURCE: IC 6-3-2-20; (05)IN1724.1.18. -->
SECTION 18. IC 6-3-2-20 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Sec. 20. (a) This section applies only to a taxpayer that
operates an agricultural processing facility (as defined in
IC 4-4-6.1-1.6) inside an agricultural enterprise zone.
(b) Subject to section 22 of this chapter, income derived from
sources inside an agricultural enterprise zone (as determined
under section 21 of this chapter) is exempt from taxation under
IC 6-3-1 through IC 6-3-7 if the taxpayer does either of the
following:
(1) Invests at least one million dollars ($1,000,000) in the
taxpayer's agricultural processing facility and creates at least
five (5) new jobs, in the case of an agricultural processing
facility that relocates inside an agricultural enterprise zone.
(2) Increases the number of full-time employees working at
the taxpayer's agricultural processing facility by at least ten
percent (10%) after the date of the agricultural enterprise
zone designation, in the case of an agricultural processing
facility located inside an agricultural enterprise zone as of the
date of the zone's designation.
(c) An exemption allowed under this section expires when the
designation of the agricultural enterprise zone expires.
(d) The department may adopt rules and prescribe forms
necessary to implement this section.
SOURCE: IC 6-3-2-21; (05)IN1724.1.19. -->
SECTION 19. IC 6-3-2-21 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Sec. 21. (a) As used in this section, "agricultural
enterprise zone" means an agricultural enterprise zone created
under IC 4-4-6.1-3.5.
(b) As used in this section, "income derived from sources inside
an agricultural enterprise zone" means:
(1) income from real or tangible personal property located
inside an agricultural enterprise zone;
(2) income from doing business from an agricultural
processing facility located inside an agricultural enterprise
zone; or
(3) income from stocks, bonds, notes, bank deposits, patents,
copyrights, secret processes and formulas, goodwill,
trademarks, trade brands, franchises, and other intangible
personal property having a situs inside an agricultural
enterprise zone.
However, for nonbusiness income described in subsection (h), only
the income that is allocated to an agricultural enterprise zone
under subsections (i) through (l) is considered derived from sources
inside an agricultural enterprise zone. For business income, only
the income that is apportioned to an agricultural enterprise zone
under subsection (c) is considered derived from sources inside an
agricultural enterprise zone.
(c) If business income derived from sources inside an
agricultural enterprise zone cannot be separated from the business
income derived from sources outside the agricultural enterprise
zone, the business income derived from sources inside the
agricultural enterprise zone is determined by multiplying the
business income derived from sources both inside and outside the
agricultural enterprise zone by a fraction. The numerator of the
fraction is the property factor described in subsection (d), plus the
payroll factor described in subsection (e), plus the sales factor
described in subsection (f). The denominator of the fraction is three
(3).
(d) The property factor is a fraction. The numerator of the
fraction is the average value of the taxpayer's real property and
tangible personal property owned or rented and used in an
agricultural enterprise zone during the taxable year. The
denominator of the fraction is the average value of all the
taxpayer's real property and tangible personal property owned or
rented and used during the taxable year. Property owned by the
taxpayer is valued at its original cost. Property rented by the
taxpayer is valued at eight (8) times the net annual rental rate. Net
annual rental rate is the annual rental rate paid by the taxpayer
less any annual rental rate received by the taxpayer from
subrentals. The average value of property is determined by
averaging the values at the beginning and end of the taxable year,
but the department may require the averaging of monthly values
during the taxable year if reasonably required to reflect properly
the average value of the taxpayer's property.
(e) The payroll factor is a fraction. The numerator of the
fraction is the total amount paid in an agricultural enterprise zone
during the taxable year by the taxpayer for compensation. The
denominator of the fraction is the total compensation paid
everywhere during the taxable year by the taxpayer. Compensation
is paid in an agricultural enterprise zone if:
(1) the individual's service is performed entirely within the
agricultural enterprise zone;
(2) the individual's service is performed both inside and
outside the agricultural enterprise zone, but the service
performed outside the agricultural enterprise zone is
incidental to the individual's service inside the agricultural
enterprise zone; or
(3) some of the service is performed inside the agricultural
enterprise zone and:
(A) the base of operations or, if there is no base of
operations, the place from which the service is directed or
controlled is inside the agricultural enterprise zone; or
(B) there is no base of operations or place from which the
service is directed or controlled, but the individual is a
resident of the agricultural enterprise zone.
(f) The sales factor is a fraction. The numerator of the fraction
is the total sales of the taxpayer inside an agricultural enterprise
zone during the taxable year. The denominator of the fraction is
the total sales of the taxpayer everywhere during the taxable year.
Sales of tangible personal property are in an agricultural
enterprise zone if:
(1) the property is delivered or shipped to a purchaser, other
than the United States government, inside the agricultural
enterprise zone, regardless of the f.o.b. point or other
conditions of the sale; or
(2) the property is shipped from an office, a store, a
warehouse, a factory, or another place of storage inside the
agricultural enterprise zone and either the purchaser is the
United States government or the taxpayer is not taxable in the
state of the purchaser.
(g) Sales, other than sales of tangible personal property, are
inside an agricultural enterprise zone if:
(1) the income producing activity is performed inside the
agricultural enterprise zone; or
(2) the income producing activity is performed both inside
and outside the agricultural enterprise zone, and a greater
proportion of the income producing activity is performed
inside the agricultural enterprise zone than outside the
agricultural enterprise zone, based on costs of performance.
(h) Rents and royalties from real or tangible personal property,
capital gains, interest, dividends, or patent or copyright royalties,
to the extent that they constitute nonbusiness income, are allocated
as provided in subsections (i) through (l).
(i) Net rents and royalties from:
(1) real property located inside an agricultural enterprise
zone are allocable to the agricultural enterprise zone; and
(2) tangible personal property are allocated to an agricultural
enterprise zone to the extent that the property is used inside
the agricultural enterprise zone.
The extent of use of tangible personal property inside an
agricultural enterprise zone is determined by multiplying the rents
and royalties by a fraction. The numerator of the fraction is the
number of days of physical location of the property inside the
agricultural enterprise zone during the rental or royalty period in
the taxable year. The denominator of the fraction is the number of
days of physical location of the property everywhere during all
rental or royalty periods in the taxable year. If the physical
location of the property during the rental or royalty period is
unknown or is not ascertainable by the taxpayer, tangible personal
property is used where the royalty payor obtained possession of the
property.
(j) Capital gains and losses from sales of:
(1) real property located inside an agricultural enterprise
zone are allocable to the agricultural enterprise zone;
(2) tangible personal property are allocable to an agricultural
enterprise zone if the property had a situs inside the
agricultural enterprise zone at the time of the sale; and
(3) intangible personal property are allocable to an
agricultural enterprise zone if the taxpayer's commercial
domicile is inside the agricultural enterprise zone.
(k) Interest and dividends are allocable to an agricultural
enterprise zone if the taxpayer's commercial domicile is inside the
agricultural enterprise zone.
(l) Patent and copyright royalties are allocable to an
agricultural enterprise zone to the extent that the patent or
copyright is used by the taxpayer inside the agricultural enterprise
zone. A patent is used inside an agricultural enterprise zone to the
extent that it is used in production, fabrication, manufacturing, or
other processing inside the agricultural enterprise zone or to the
extent that a patented product is produced inside the agricultural
enterprise zone. If the basis of receipts from patent royalties does
not permit allocation to agricultural enterprise zones or if the
accounting procedures do not reflect location of use, the patent is
used at the location of the taxpayer's commercial domicile. A
copyright is used inside an agricultural enterprise zone to the
extent that printing or other publication originates inside the
agricultural enterprise zone. If the basis of receipts from copyright
royalties does not permit allocation to agricultural enterprise zones
or if the accounting procedures do not reflect location of use, the
copyright is used at the location of the taxpayer's commercial
domicile.
(m) If the allocation and apportionment provisions of this
section do not fairly represent the taxpayer's income derived from
sources inside an agricultural enterprise zone, the taxpayer may
petition for or the department may require, with respect to all or
any part of the taxpayer's business activity:
(1) a separate accounting;
(2) the exclusion of any one (1) or more of the factors listed in
this section;
(3) the inclusion of one (1) or more additional factors that will
fairly represent the taxpayer's income derived from sources
inside the agricultural enterprise zone; or
(4) the employment of any other method to effectuate an
equitable allocation and apportionment of the taxpayer's
income.
(n) In the case of at least two (2) organizations, trades, or
businesses owned or controlled directly or indirectly by the same
interests, the department shall distribute, apportion, or allocate the
income derived from sources inside an agricultural enterprise zone
among those organizations, trades, or businesses in order to fairly
reflect and report the income derived from sources inside the
agricultural enterprise zone by various taxpayers.
(o) A taxpayer that:
(1) does not own, rent, or lease real property outside an
agricultural enterprise zone that is an integral part of its
trade or business; and
(2) is not owned or controlled directly or indirectly by a
taxpayer that owns, rents, or leases real property outside an
agricultural enterprise zone;
is exempt from the allocation and apportionment provisions of this
section.
SOURCE: IC 6-3-2-22; (05)IN1724.1.20. -->
SECTION 20. IC 6-3-2-22 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]: Sec. 22. (a) During the last three (3) years that the
taxpayer is eligible for an exemption under section 20 of this
chapter, the exemption shall be reduced by the following
percentages:
(1) Twenty-five percent (25%) for the year that is two (2)
years before the final year of designation as an agricultural
enterprise zone.
(2) Fifty percent (50%) for the year that immediately
precedes the final year of designation as an agricultural
enterprise zone.
(3) Seventy-five percent (75%) for the final year of
designation as an agricultural enterprise zone.
(b) A taxpayer is not eligible for the exemption described in
section 20 of this chapter if the taxpayer is delinquent in the
payment of a listed tax under IC 6-8.1.
(c) A taxpayer is eligible for an exemption under section 20 of
this chapter until the department, with the assistance of the
department of local government finance, determines that the total
state and local tax revenue foregone as a result of all exemptions
and deductions granted to the taxpayer under the agricultural
enterprise zone program reaches ten million dollars ($10,000,000).
(d) A taxpayer that receives an income tax exemption under
section 20 of this chapter may not receive a tax incentive or benefit
provided to an enterprise zone business under the following
statutes:
(1) IC 6-1.1-20.8.
(2) IC 6-3-3-10.
(3) IC 6-3.1-7.
(4) IC 6-3.1-9.
(5) IC 6-3.1-10.
(e) The department shall deny an exemption under section 20 of
this chapter to a taxpayer that fails to comply with the reporting
requirements of IC 4-4-6.1-9.
SOURCE: IC 15-2.1-2-15; (05)IN1724.1.21. -->
SECTION 21. IC 15-2.1-2-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 15. "Domestic animal"
means an animal that is not wild. The term is limited to:
(1) cattle, calves, horses, mules, swine, sheep, goats, dogs, cats,
poultry, ostriches, rhea, emus, or other bird;
(2) an animal of the bovine, equine, ovine, caprine, porcine,
canine, feline, avian, camelid, cervidae, or bison species; or
(3) an aquatic animal that may be the subject of aquaculture (as
defined in IC 4-4-3.8-1). IC 15-9-1-2).
SOURCE: IC 15-8-1-3; (05)IN1724.1.22. -->
SECTION 22. IC 15-8-1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 3. "Commissioner"
refers to the lieutenant governor, serving as the commissioner of
agriculture under IC 4-4-3-2. appointed under IC 15-9-3-1.
SOURCE: IC 15-9; (05)IN1724.1.23. -->
SECTION 23. IC 15-9 IS ADDED TO THE INDIANA CODE AS
A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2005]:
ARTICLE 9. DEPARTMENT OF AGRICULTURE
Chapter 1. Definitions
Sec. 1. The definitions in this chapter apply throughout this
article.
Sec. 2. "Aquaculture" means a form of agriculture that is the
controlled cultivation and harvest of aquatic plants and animals.
Sec. 3. "Commissioner" means the commissioner of the
department.
Sec. 4. "Department" refers to the department of agriculture
established by IC 15-9-2-1.
Sec. 5. "Livestock" includes but is not limited to the following:
(1) Beef cattle, dairy cattle, and other animals of the bovine
species.
(2) Swine and other animals of the porcine species.
(3) Sheep and other members of the ovine species.
(4) Horses, mules, burros, asses, and other animals of the
equine species.
(5) Goats and other members of the caprine species.
(6) Poultry and other birds of the avian species.
(7) Ostriches, rhea, emus, and other members of the ratite
species.
(8) Camels, llamas, and other members of the camelid species.
(9) Farm raised deer, elk, moose, and other members of the
cervidae species.
(10) Bison.
(11) Aquatic animals that are the subject of aquaculture.
(12) Rabbits.
Chapter 2. Department of Agriculture Established
Sec. 1. The department of agriculture is established.
Sec. 2. The department shall develop and promote programs
designed to make the best use of the agricultural resources of
Indiana and for that purpose may do the following:
(1) Cooperate with federal, state, and local governments and
agencies to coordinate programs to make the best use of the
agricultural resources of Indiana.
(2) Receive and expend all funds, grants, gifts, and
contributions of money, property, labor, interest accrued
from loans made by the department, and other things of value
from public and private sources, including grants from
agencies and instrumentalities of the state and the federal
government. The department:
(A) may accept federal grants for providing planning
assistance, making grants, or providing other services or
functions necessary to political subdivisions, planning
commissions, or other public or private organizations;
(B) shall administer these grants in accordance with their
terms; and
(C) may contract with political subdivisions, planning
commissions, or other public or private organizations to
carry out the purposes for which the grants were made.
Sec. 3. The department shall:
(1) disseminate information concerning the agricultural
advantages of Indiana;
(2) assist in the promotion and marketing of Indiana's
agricultural products, and provide staff assistance to the
commissioner in fulfilling the commissioner's responsibilities;
(3) assist the Indiana commission for agriculture and rural
development in performing its functions under IC 4-4-22; and
(4) perform any other duty assigned by statute to the
department.
Sec. 4. (a) If a statute or rule authorizes an appeal from or
action against:
(1) the commissioner;
(2) the office of the commissioner of agriculture; or
(3) the department of commerce with respect to the
department of commerce's responsibilities relating to the
promotion of Indiana agriculture;
the appeal or action may be taken from or brought against the
department.
(b) A rule adopted before July 1, 2005, by:
(1) the lieutenant governor in the lieutenant governor's
capacity as the commissioner of agriculture;
(2) the office of the commissioner of agriculture; or
(3) the department of commerce with respect to the
department of commerce's responsibilities relating to the
promotion of Indiana agriculture;
is considered to be a rule adopted by the department of agriculture.
Sec. 5. The department may adopt rules under IC 4-22-2 to
carry out this article.
Chapter 3. Office of the Commissioner
Sec. 1. The office of commissioner of the department is created.
The governor shall appoint the commissioner, who serves at the
pleasure of the governor. The commissioner is the executive and
chief administrative officer of the department.
Sec. 2. The commissioner is entitled to compensation in an
amount to be fixed by the Indiana department of administration
with the approval of the governor.
Sec. 3. The commissioner may organize the department in such
a manner as will best promote efficiency of administration in
compliance with this article.
Chapter 4. Promotion of Livestock Shows
Sec. 1. The department shall aid, encourage, foster, and promote
the development and improvement of the livestock industry
throughout Indiana.
Sec. 2. (a) The livestock industry promotion and development
fund (referred to as the fund in this chapter) is established as a
dedicated fund to be administered by the department.
(b) The money in the fund must be spent by the department:
(1) exclusively for the purposes described in this chapter,
including administrative expenses; and
(2) throughout Indiana.
(c) Money in the fund does not revert to the state general fund
at the end of a state fiscal year. However, if the fund is abolished,
its contents revert to the state general fund.
(d) Money in the fund is annually appropriated to the
department for use by the department in carrying out this chapter.
Sec. 3. The department may make grants from the fund to
associations or organizations for the following purposes:
(1) To conduct or support livestock industry shows, sales,
expositions, conventions, or similar events throughout Indiana
consistent with the purposes of this chapter.
(2) To support expanding markets for Indiana livestock
producers by encouraging the development of business and
industry related to livestock production, processing, and
distribution.
Sec. 4. An association or organization may not qualify for or be
eligible to receive any part of the fund to be awarded as premiums
unless there is provided and made available from sources other
than the fund an amount for premiums equal to or in excess of that
allocated from the fund under this chapter. Funds approved and
designated by the department for purposes other than premium
awards are exempt from the matching fund requirements for
premium awards.
Sec. 5. An association or organization must be a nonprofit entity
to be eligible for grants under this chapter.
Sec. 6. The department may adopt rules under IC 4-22-2 to
carry out this chapter.
Chapter 5. Promotion of Foreign Markets for Agricultural
Products
Sec. 1. The department has the responsibility for international
market promotion for Indiana agricultural products.
Sec. 2. Within the limit of funds specifically appropriated for
that purpose, the department may establish and maintain offices
in foreign countries for the purpose of promoting international
markets for Indiana agricultural products.
Sec. 3. Within the limit of funds specifically appropriated for
that purpose, the department may operate livestock export
inspection facilities meeting the requirements of the United States
Department of Agriculture for livestock inspection before export
shipments.
Sec. 4. The department may establish and collect fair and
reasonable livestock inspection fees related to the cost of
administering livestock export facilities.
Sec. 5. Livestock export facilities must be located in locations
that encourage the collection of livestock from Indiana and the
entire midwest area for exportation.
Sec. 6. (a) The livestock export facility administration fund is
established as a dedicated fund to be administered by the
department. All fees collected under section 4 of this chapter shall
be deposited in the fund. Money in the fund may be spent by the
department exclusively for the purposes described in this chapter.
Money in the fund does not revert to the state general fund at the
end of a state fiscal year. However, if the fund is abolished, its
contents revert to the state general fund.
(b) Money in the fund is appropriated to the department for the
purposes of this chapter.
Chapter 6. Center for Value Added Research
Sec. 1. The department shall establish a center for value added
research to perform the following duties:
(1) Developing a strategic assessment of the Indiana
agricultural industries and establishing targeted priorities for
industry expansion.
(2) Developing recommendations for legislative and
administrative programs that will enhance economic
development in the targeted agricultural industries.
(3) Identify and prioritize research development and
educational needs for expanding value added opportunities in
Indiana.
(4) Establishing cooperative industry research and
development initiatives that lead to new agricultural industry
opportunities in Indiana.
(5) Serving as a resource for industry in the planning,
promotion, and development of value added agricultural
products and agricultural industry opportunities in Indiana,
including product feasibility, market feasibility, economic
feasibility, product development, product testing, and test
marketing.
(6) Serving as a resource for industry and state government
in attracting value added agricultural industry to Indiana.
(7) Developing private sector research funding and technology
transfer programs commensurate with the state's targeted
agricultural industry economic development objectives.
(8) Providing a forum for continuing dialogue between
industry, government, and researchers in addressing the
needs and opportunities for expanding the value added
agricultural industry.
Sec. 2. In carrying out its duties under this chapter, the center
for value added research shall cooperate with and may use the
resources of:
(1) Purdue University and other colleges and universities
located in Indiana;
(2) any other state or federal department or agency;
(3) political subdivisions located in Indiana; and
(4) interest groups representing agriculture, business, and
industry in Indiana.
Sec. 3. To carry out the duties described in section 1 of this
chapter, the department, acting for and on behalf of the center for
value added research, may:
(1) organize the center in the manner necessary to implement
this chapter;
(2) execute contractual agreements, including contracts for:
(A) the operation of the center;
(B) the performance of any of the duties described in
section 1 of this chapter;
(C) the services of an executive director to serve as the
chief operating officer of the center; and
(D) any other services necessary to carry out the duties
described in section 1 of this chapter;
(3) receive money from any source;
(4) expend money for an activity appropriate to the purposes
of this chapter;
(5) execute agreements and cooperate with:
(A) any other state or federal department or agency;
(B) political subdivisions located in Indiana;
(C) any private person or corporation; or
(D) colleges and universities located in Indiana; and
(6) subject to the approval of the budget agency, employ
personnel as necessary for the efficient administration of this
chapter.
Sec. 4. (a) The value added research fund is established for the
purpose of providing money for the center for value added
research and the department to carry out the duties specified
under this chapter. The fund shall be administered by the
department.
(b) The fund consists of money appropriated by the general
assembly.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(d) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Chapter 7. Aquaculture
Sec. 1. The department shall do the following:
(1) Organize and develop an information and market research
center for aquaculture.
(2) Instigate the formation of a market and development plan
for the aquaculture industry.
(3) Encourage the development and growth of aquaculture.
Sec. 2. A person engaged in the business of aquaculture is
entitled to the same consideration for a grant or loan program
under the statutes or administrative rules of the state as a person
engaged in other forms of farming.
Chapter 8. Inspection of Grain Moisture Testing Equipment
Sec. 1. The department shall at least one (1) time each year
inspect and test all equipment used to test the moisture and the
foreign material and dockage content of grain purchased, sold, or
exchanged in Indiana.
Sec. 2. Each piece of equipment that is tested and found to be
true in accordance with rules or standards prescribed by the
National Institute of Standards and Technology, the United States
Department of Agriculture, and the department must bear a seal
issued by the department to that effect with the date of inspection
and expiration date.
Sec. 3. (a) The department shall charge a fee of ten dollars ($10)
for each moisture testing device inspected from each inspection site
under this chapter.
(b) All fees collected under this chapter shall be deposited in the
state general fund.
Sec. 4. There is annually appropriated to the department an
amount sufficient to carry out this chapter for the use of the
department in carrying out this chapter.
Sec. 5. The department may adopt rules under IC 4-22-2 to
administer this chapter.
Sec. 6. The department may:
(1) employ such persons;
(2) make such expenditures;
(3) require such reports and records;
(4) make such investigations; and
(5) take such other action;
as the department considers necessary or suitable for the proper
administration of this chapter.
Sec. 7. A copy of this chapter and all rules adopted under this
chapter shall be posted in a conspicuous manner and placed at
every commercial grain buying site.
Sec. 8. A person who recklessly uses equipment:
(1) to ascertain the moisture and the foreign material and
dockage content of grain in the process of commercial buying
or selling of grain; and
(2) that does not bear the seal required by section 2 of this
chapter;
commits a Class B misdemeanor.
SOURCE: IC 24-9-4-7; (05)IN1724.1.24. -->
SECTION 24. IC 24-9-4-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 7. A creditor may not
make a high cost home loan without first providing the borrower
information to facilitate contact with a nonprofit counseling agency
certified by:
(1) the United States Department of Housing and Urban
Development; or
(2) the department of commerce under IC 4-4-3-8(b)(15);
IC 4-4-3-8(b)(13);
at the same time as the good faith estimates are provided to the
borrower in accordance with the requirements of the federal Real
Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.) as amended.
SOURCE: IC 4-4-3.2; IC 4-4-3.3; IC 4-4-3.4; IC 4-4-3.8; IC 4-4-27.
; (05)IN1724.1.25. -->
SECTION 25. THE FOLLOWING ARE REPEALED [EFFECTIVE
JULY 1, 2005]: IC 4-4-3.2; IC 4-4-3.3; IC 4-4-3.4; IC 4-4-3.8;
IC 4-4-27.
SOURCE: ; (05)IN1724.1.26. -->
SECTION 26. [EFFECTIVE JULY 1, 2005]
(a) IC 6-1.1-10-44 and
IC 6-1.1-11-4.5, both as added by this act, apply to property taxes
first due and payable after December 31, 2007.
(b) IC 6-3-2-20, IC 6-3-2-21, and IC 6-3-2-22, all as added by
this act, apply to taxable years beginning after December 31, 2006.