Introduced Version
HOUSE BILL No. 1492
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-12.1.
Synopsis: Tax abatement for leased property. Allows a property owner
to apply for the economic revitalization property tax abatement when
the property owner leases the property to a lessee who uses the property
and employs the individuals necessary to receive the abatement.
Effective: January 1, 2008.
Leonard
January 23, 2007, read first time and referred to Committee on Ways and Means.
Introduced
First Regular Session 115th General Assembly (2007)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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Conflict reconciliation: Text in a statute in
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HOUSE BILL No. 1492
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 6-1.1-12.1-1; (07)IN1492.1.1. -->
SECTION 1. IC 6-1.1-12.1-1, AS AMENDED BY P.L.154-2006,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 1. For purposes of this chapter:
(1) "Economic revitalization area" means an area which is within
the corporate limits of a city, town, or county which has become
undesirable for, or impossible of, normal development and
occupancy because of a lack of development, cessation of growth,
deterioration of improvements or character of occupancy, age,
obsolescence, substandard buildings, or other factors which have
impaired values or prevent a normal development of property or
use of property. The term "economic revitalization area" also
includes:
(A) any area where a facility or a group of facilities that are
technologically, economically, or energy obsolete are located
and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise
provided in this chapter.
(2) "City" means any city in this state, and "town" means any town
incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means tangible personal
property that a deduction applicant acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant for use as described in clause (B). In
addition, the deduction applicant or a person who leases the
tangible personal property from a deduction applicant must:
(A) installs install the tangible personal property after
February 28, 1983, and on or before the approval deadline
determined under section 9 of this chapter, in an area that is
declared an economic revitalization area after February 28,
1983, in which a deduction for tangible personal property is
allowed;
(B) uses use the tangible personal property in the direct
production, manufacture, fabrication, assembly, extraction,
mining, processing, refining, or finishing of other tangible
personal property, including but not limited to use to dispose
of solid waste or hazardous waste by converting the solid
waste or hazardous waste into energy or other useful products;
and
(C) acquires in an arms length transaction from an entity that
is not an affiliate of the deduction applicant for use as
described in clause (B); and
(D) (C) have never used the tangible personal property for
any purpose in Indiana before the installation described in
clause (A).
However, notwithstanding any other law, the term includes
tangible personal property that is used to dispose of solid waste or
hazardous waste by converting the solid waste or hazardous waste
into energy or other useful products and was installed after March
1, 1993, and before March 2, 1996, even if the property was
installed before the area where the property is located was
designated as an economic revitalization area or the statement of
benefits for the property was approved by the designating body.
(4) "Property" means a building or structure, but does not include
land.
(5) "Redevelopment" means the construction of new structures,
in economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure is
demolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or betterment
of property in any manner or any enlargement or extension of
property.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city, the
fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, the
metropolitan development commission.
(8) "Deduction application" means:
(A) the application filed in accordance with section 5 of this
chapter by a property owner who desires to obtain the
deduction provided by section 3 of this chapter;
(B) the application filed in accordance with section 5.4 of this
chapter by a person who desires to obtain the deduction
provided by section 4.5 of this chapter; or
(C) the application filed in accordance with section 5.3 of this
chapter by a property owner that desires to obtain the
deduction provided by section 4.8 of this chapter.
(9) "Designation application" means an application that is filed
with a designating body to assist that body in making a
determination about whether a particular area should be
designated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a). The term includes waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in IC 13-11-2-205(a).
However, the term does not include dead animals or any animal
solid or semisolid wastes.
(12) "New research and development equipment" means tangible
personal property that:
(A) a deduction applicant or a person who leases the
tangible personal property from a deduction applicant
installs after June 30, 2000, and on or before the approval
deadline determined under section 9 of this chapter, in an
economic revitalization area in which a deduction for tangible
personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) the deduction applicant
or a person who leases the
tangible personal property from a deduction applicant uses
in research and development activities devoted directly and
exclusively to experimental or laboratory research and
development for new products, new uses of existing products,
or improving or testing existing products;
(D) the deduction applicant
acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant for purposes described in this subdivision;
and
(E) the deduction applicant
or a person who leases the
tangible personal property from a deduction applicant
never used for any purpose in Indiana before the installation
described in clause (A).
The term does not include equipment installed in facilities used
for or in connection with efficiency surveys, management studies,
consumer surveys, economic surveys, advertising or promotion,
or research in connection with literacy, history, or similar
projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) a deduction applicant
or a person who leases the
tangible personal property from a deduction applicant
installs after June 30, 2004, and on or before the approval
deadline determined under section 9 of this chapter, in an
economic revitalization area in which a deduction for tangible
personal property is allowed;
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) fork lifts or lifting equipment (including "walk
behinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical distribution;
(C) the deduction applicant
acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant and uses for the storage or distribution of
goods, services, or information; and
(D) the deduction applicant or a person who leases the
tangible personal property from a deduction applicant
never used for any purpose in Indiana before the installation
described in clause (A).
(14) "New information technology equipment" means tangible
personal property that:
(A) a deduction applicant or a person who leases the
tangible personal property from a deduction applicant
installs after June 30, 2004, and on or before the approval
deadline determined under section 9 of this chapter, in an
economic revitalization area in which a deduction for tangible
personal property is allowed;
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics;
(C) the deduction applicant acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant; and
(D) the deduction applicant or a person who leases the
tangible personal property from a deduction applicant
never used for any purpose in Indiana before the installation
described in clause (A).
(15) "Deduction applicant" means an owner of tangible personal
property who makes a deduction application.
(16) "Affiliate" means an entity that effectively controls or is
controlled by a deduction applicant or is associated with a
deduction applicant under common ownership or control, whether
by shareholdings or other means.
(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the owner of
the building or a tenant of the owner occupies the building, as
evidenced by a valid certificate of occupancy, paid utility
receipts, executed lease agreements, or any other evidence of
occupation that the department of local government finance
requires.
SOURCE: IC 6-1.1-12.1-3; (07)IN1492.1.2. -->
SECTION 2. IC 6-1.1-12.1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2008]: Sec. 3. (a) An
applicant must provide a statement of benefits to the designating body.
If the designating body requires information from the applicant for
economic revitalization area status for use in making its decision about
whether to designate an economic revitalization area, the applicant
shall provide the completed statement of benefits form to the
designating body before the hearing required by section 2.5(c) of this
chapter. Otherwise, the statement of benefits form must be submitted
to the designating body before the initiation of the redevelopment or
rehabilitation for which the person desires to claim a deduction under
this chapter. The department of local government finance shall
prescribe a form for the statement of benefits. The statement of benefits
must include the following information:
(1) A description of the proposed redevelopment or rehabilitation.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the person or
a tenant of the property owner as a result of the redevelopment
or rehabilitation and an estimate of the annual salaries of these
individuals.
(3) An estimate of the value of the redevelopment or
rehabilitation.
With the approval of the designating body, the statement of benefits
may be incorporated in a designation application. Notwithstanding any
other law, a statement of benefits is a public record that may be
inspected and copied under IC 5-14-3-3.
(b) The designating body must review the statement of benefits
required under subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether a deduction should be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the value of the redevelopment or
rehabilitation is reasonable for projects of that nature.
(2) Whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the proposed described
redevelopment or rehabilitation.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
described redevelopment or rehabilitation.
(4) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed described redevelopment or rehabilitation.
(5) Whether the totality of benefits is sufficient to justify the
deduction.
A designating body may not designate an area an economic
revitalization area or approve a deduction unless the findings required
by this subsection are made in the affirmative.
(c) Except as provided in subsections (a) through (b), the owner of
property which is located in an economic revitalization area is entitled
to a deduction from the assessed value of the property. If the area is a
residentially distressed area, the period is not more than five (5) years.
For all other economic revitalization areas designated before July 1,
2000, the period is three (3), six (6), or ten (10) years. For all economic
revitalization areas designated after June 30, 2000, the period is the
number of years determined under subsection (d). The owner is entitled
to a deduction if:
(1) the property has been rehabilitated; or
(2) the property is located on real estate which has been
redeveloped.
The owner is entitled to the deduction for the first year, and any
successive year or years, in which an increase in assessed value
resulting from the rehabilitation or redevelopment occurs and for the
following years determined under subsection (d). However, property
owners who had an area designated an urban development area
pursuant to an application filed prior to January 1, 1979, are only
entitled to a deduction for a five (5) year period. In addition, property
owners who are entitled to a deduction under this chapter pursuant to
an application filed after December 31, 1978, and before January 1,
1986, are entitled to a deduction for a ten (10) year period.
(d) For an area designated as an economic revitalization area after
June 30, 2000, that is not a residentially distressed area, the designating
body shall determine the number of years for which the property owner
is entitled to a deduction. However, the deduction may not be allowed
for more than ten (10) years. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving a
copy of a property owner's certified deduction application from
the county auditor. A certified copy of the resolution shall be sent
to the county auditor who shall make the deduction as provided
in section 5 of this chapter.
A determination about the number of years the deduction is allowed
that is made under subdivision (1) is final and may not be changed by
following the procedure under subdivision (2).
(e) Except for deductions related to redevelopment or rehabilitation
of real property in a county containing a consolidated city or a
deduction related to redevelopment or rehabilitation of real property
initiated before December 31, 1987, in areas designated as economic
revitalization areas before that date, a deduction for the redevelopment
or rehabilitation of real property may not be approved for the following
facilities:
(1) Private or commercial golf course.
(2) Country club.
(3) Massage parlor.
(4) Tennis club.
(5) Skating facility (including roller skating, skateboarding, or ice
skating).
(6) Racquet sport facility (including any handball or racquetball
court).
(7) Hot tub facility.
(8) Suntan facility.
(9) Racetrack.
(10) Any facility the primary purpose of which is:
(A) retail food and beverage service;
(B) automobile sales or service; or
(C) other retail;
unless the facility is located in an economic development target
area established under section 7 of this chapter.
(11) Residential, unless:
(A) the facility is a multifamily facility that contains at least
twenty percent (20%) of the units available for use by low and
moderate income individuals;
(B) the facility is located in an economic development target
area established under section 7 of this chapter; or
(C) the area is designated as a residentially distressed area.
(12) A package liquor store that holds a liquor dealer's permit
under IC 7.1-3-10 or any other entity that is required to operate
under a license issued under IC 7.1. This subdivision does not
apply to an applicant that:
(A) was eligible for tax abatement under this chapter before
July 1, 1995;
(B) is described in IC 7.1-5-7-11; or
(C) operates, or has a lessee that operates, a facility under:
(i) a beer wholesaler's permit under IC 7.1-3-3;
(ii) a liquor wholesaler's permit under IC 7.1-3-8; or
(iii) a wine wholesaler's permit under IC 7.1-3-13;
for which the applicant claims a deduction under this chapter.
(f) This subsection applies only to a county having a population of
more than two hundred thousand (200,000) but less than three hundred
thousand (300,000). Notwithstanding subsection (e)(11), in a county
subject to this subsection a designating body may, before September 1,
2000, approve a deduction under this chapter for the redevelopment or
rehabilitation of real property consisting of residential facilities that are
located in unincorporated areas of the county if the designating body
makes a finding that the facilities are needed to serve any combination
of the following:
(1) Elderly persons who are predominately low-income or
moderate-income persons.
(2) Disabled persons.
A designating body may adopt an ordinance approving a deduction
under this subsection only one (1) time. This subsection expires
January 1, 2011.
SOURCE: IC 6-1.1-12.1-4.5; (07)IN1492.1.3. -->
SECTION 3. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.154-2006,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 4.5. (a) For purposes of this section,
"personal property" means personal property other than inventory (as
defined in IC 6-1.1-3-11(a)).
(b) An applicant must provide a statement of benefits to the
designating body. The applicant must provide the completed statement
of benefits form to the designating body before the hearing specified in
section 2.5(c) of this chapter or before the installation of the new
manufacturing equipment, new research and development equipment,
new logistical distribution equipment, or new information technology
equipment for which the person desires to claim a deduction under this
chapter. The department of local government finance shall prescribe a
form for the statement of benefits. The statement of benefits must
include the following information:
(1) A description of the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment that the
person proposes to acquire.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
an estimate of the number of individuals who will be employed or
whose employment will be retained by the
person
or by a person
who leases the tangible personal property from the property
owner as a result of the installation of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment and an estimate of the annual salaries of these
individuals.
(3) An estimate of the cost of the new manufacturing equipment,
new research and development equipment, new logistical
distribution equipment, or new information technology
equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, an
estimate of the amount of solid waste or hazardous waste that will
be converted into energy or other useful products by the new
manufacturing equipment.
The statement of benefits may be incorporated in a designation
application. Notwithstanding any other law, a statement of benefits is
a public record that may be inspected and copied under IC 5-14-3-3.
(c) The designating body must review the statement of benefits
required under subsection (b). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether the deduction shall be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment is reasonable for equipment of that type.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the installation of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
installation of new manufacturing equipment, new research and
development equipment, new logistical distribution equipment, or
new information technology equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, whether
the estimate of the amount of solid waste or hazardous waste that
will be converted into energy or other useful products can be
reasonably expected to result from the installation of the new
manufacturing equipment.
(5) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed installation of new manufacturing equipment,
new research and development equipment, new logistical
distribution equipment, or new information technology
equipment.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
The designating body may not designate an area an economic
revitalization area or approve the deduction unless it makes the
findings required by this subsection in the affirmative.
(d) Except as provided in subsection (h), and subject to subsection
(i), an owner of new manufacturing equipment, new research and
development equipment, new logistical distribution equipment, or new
information technology equipment whose statement of benefits is
approved after June 30, 2000, is entitled to a deduction from the
assessed value of that equipment for the number of years determined
by the designating body under subsection (g). Except as provided in
subsection (f) and in section 2(i)(3) of this chapter, and subject to
subsection (i), the amount of the deduction that an owner is entitled to
for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment in the year
of deduction under the appropriate table set forth in subsection
(e); multiplied by
(2) the percentage prescribed in the appropriate table set forth in
subsection (e).
(e) The percentage to be used in calculating the deduction under
subsection (d) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd and thereafter 0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
3rd and thereafter 0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 66%
3rd 33%
4th and thereafter 0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
5th and thereafter 0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
6th and thereafter 0%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 25%
7th and thereafter 0%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
8th and thereafter 0%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
9th and thereafter 0%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
10th and thereafter 0%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 90%
3rd 80%
4th 70%
5th 60%
6th 50%
7th 40%
8th 30%
9th 20%
10th 10%
11th and thereafter 0%
(f) With respect to new manufacturing equipment and new research
and development equipment installed before March 2, 2001, the
deduction under this section is the amount that causes the net assessed
value of the property after the application of the deduction under this
section to equal the net assessed value after the application of the
deduction under this section that results from computing:
(1) the deduction under this section as in effect on March 1, 2001;
and
(2) the assessed value of the property under 50 IAC 4.2, as in
effect on March 1, 2001, or, in the case of property subject to
IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
(g) For an economic revitalization area designated before July 1,
2000, the designating body shall determine whether a property owner
whose statement of benefits is approved after April 30, 1991, is entitled
to a deduction for five (5) or ten (10) years. For an economic
revitalization area designated after June 30, 2000, the designating body
shall determine the number of years the deduction is allowed. However,
the deduction may not be allowed for more than ten (10) years. This
determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving a
copy of a property owner's certified deduction application from
the county auditor. A certified copy of the resolution shall be sent
to the county auditor.
A determination about the number of years the deduction is allowed
that is made under subdivision (1) is final and may not be changed by
following the procedure under subdivision (2).
(h) The owner of new manufacturing equipment that is directly used
to dispose of hazardous waste is not entitled to the deduction provided
by this section for a particular assessment year if during that
assessment year the owner:
(1) is convicted of a violation under IC 13-7-13-3 (repealed),
IC 13-7-13-4 (repealed), or IC 13-30-6; or
(2) is subject to an order or a consent decree with respect to
property located in Indiana based on a violation of a federal or
state rule, regulation, or statute governing the treatment, storage,
or disposal of hazardous wastes that had a major or moderate
potential for harm.
(i) For purposes of subsection (d), the assessed value of new
manufacturing equipment, new research and development equipment,
new logistical distribution equipment, or new information technology
equipment that is part of an owner's assessable depreciable personal
property in a single taxing district subject to the valuation limitation in
50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is the product of:
(1) the assessed value of the equipment determined without
regard to the valuation limitation in 50 IAC 4.2-4-9 or 50
IAC 5.1-6-9; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under
50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the owner's
depreciable personal property in the taxing district; divided by
(B) the total true tax value of all of the owner's depreciable
personal property in the taxing district that is subject to the
valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9
determined:
(i) under the depreciation schedules in the rules of the
department of local government finance before any
adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50
IAC 4.2-4-9 or 50 IAC 5.1-6-9.
SOURCE: IC 6-1.1-12.1-5; (07)IN1492.1.4. -->
SECTION 4. IC 6-1.1-12.1-5, AS AMENDED BY P.L.193-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 5. (a) A property owner who desires to
obtain the deduction provided by section 3 of this chapter must file a
certified deduction application, on forms prescribed by the department
of local government finance, with the auditor of the county in which the
property is located. Except as otherwise provided in subsection (b) or
(e), the deduction application must be filed before May 10 of the year
in which the addition to assessed valuation is made.
(b) If notice of the addition to assessed valuation or new assessment
for any year is not given to the property owner before April 10 of that
year, the deduction application required by this section may be filed not
later than thirty (30) days after the date such a notice is mailed to the
property owner at the address shown on the records of the township
assessor.
(c) The deduction application required by this section must contain
the following information:
(1) The name of the property owner
and, if applicable, the
property owner's tenant.
(2) A description of the property for which a deduction is claimed
in sufficient detail to afford identification.
(3) The assessed value of the improvements before rehabilitation.
(4) The increase in the assessed value of improvements resulting
from the rehabilitation.
(5) The assessed value of the new structure in the case of
redevelopment.
(6) The amount of the deduction claimed for the first year of the
deduction.
(7) If the deduction application is for a deduction in a
residentially distressed area, the assessed value of the
improvement or new structure for which the deduction is claimed.
(d) A deduction application filed under subsection (a) or (b) is
applicable for the year in which the addition to assessed value or
assessment of a new structure is made and in the following years the
deduction is allowed without any additional deduction application
being filed. However, property owners who had an area designated an
urban development area pursuant to a deduction application filed prior
to January 1, 1979, are only entitled to a deduction for a five (5) year
period. In addition, property owners who are entitled to a deduction
under this chapter pursuant to a deduction application filed after
December 31, 1978, and before January 1, 1986, are entitled to a
deduction for a ten (10) year period.
(e) A property owner who desires to obtain the deduction provided
by section 3 of this chapter but who has failed to file a deduction
application within the dates prescribed in subsection (a) or (b) may file
a deduction application between March 1 and May 10 of a subsequent
year which shall be applicable for the year filed and the subsequent
years without any additional deduction application being filed for the
amounts of the deduction which would be applicable to such years
pursuant to section 4 of this chapter if such a deduction application had
been filed in accordance with subsection (a) or (b).
(f) Subject to subsection (i), the county auditor shall act as follows:
(1) If a determination about the number of years the deduction is
allowed has been made in the resolution adopted under section
2.5 of this chapter, the county auditor shall make the appropriate
deduction.
(2) If a determination about the number of years the deduction is
allowed has not been made in the resolution adopted under
section 2.5 of this chapter, the county auditor shall send a copy of
the deduction application to the designating body. Upon receipt
of the resolution stating the number of years the deduction will be
allowed, the county auditor shall make the appropriate deduction.
(3) If the deduction application is for rehabilitation or
redevelopment in a residentially distressed area, the county
auditor shall make the appropriate deduction.
(g) The amount and period of the deduction provided for property
by section 3 of this chapter are not affected by a change in the
ownership of the property if:
(1) the new owner of the property
(1) or a lessee of the new owner continues to use the property in
compliance with any standards established under section 2(g) of
this chapter; and
(2) the new owner files an application in the manner provided by
subsection (e).
(h) The township assessor shall include a notice of the deadlines for
filing a deduction application under subsections (a) and (b) with each
notice to a property owner of an addition to assessed value or of a new
assessment.
(i) Before the county auditor acts under subsection (f), the county
auditor may request that the township assessor of the township in
which the property is located review the deduction application.
(j) A property owner may appeal a determination of the county
auditor under subsection (f) to deny or alter the amount of the
deduction by requesting in writing a preliminary conference with the
county auditor not more than forty-five (45) days after the county
auditor gives the person notice of the determination. An appeal
initiated under this subsection is processed and determined in the same
manner that an appeal is processed and determined under IC 6-1.1-15.
SOURCE: IC 6-1.1-12.1-5.1; (07)IN1492.1.5. -->
SECTION 5. IC 6-1.1-12.1-5.1, AS AMENDED BY P.L.193-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 5.1. (a) This subsection applies to:
(1) all deductions under section 3 of this chapter for property
located in a residentially distressed area; and
(2) any other deductions for which a statement of benefits was
approved under section 3 of this chapter before July 1, 1991.
In addition to the requirements of section 5(c) of this chapter, a
deduction application filed under section 5 of this chapter must contain
information showing the extent to which there has been compliance
with the statement of benefits approved under section 3 of this chapter.
Failure to comply with a statement of benefits approved before July 1,
1991, may not be a basis for rejecting a deduction application.
(b) This subsection applies to each deduction (other than a
deduction for property located in a residentially distressed area) for
which a statement of benefits was approved under section 3 of this
chapter after June 30, 1991. In addition to the requirements of section
5(c) of this chapter, a property owner who files a deduction application
under section 5 of this chapter must provide the county auditor and the
designating body with information showing the extent to which there
has been compliance with the statement of benefits approved under
section 3 of this chapter. This information must be included in the
deduction application and must also be updated each year in which the
deduction is applicable at the same time that the property owner is
required to file a personal property tax return in the taxing district in
which the property for which the deduction was granted is located. If
the taxpayer does not file a personal property tax return in the taxing
district in which the property is located, the information must be
provided before May 15.
(c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following
information is a public record if filed under this section:
(1) The name and address of the taxpayer and, if applicable, the
property owner's tenant.
(2) The location and description of the property for which the
deduction was granted.
(3) Any information concerning the number of employees at the
property for which the deduction was granted, including estimated
totals that were provided as part of the statement of benefits.
(4) Any information concerning the total of the salaries paid to
those employees, including estimated totals that were provided as
part of the statement of benefits.
(5) Any information concerning the assessed value of the
property, including estimates that were provided as part of the
statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by the property owner or a tenant of the
property owner.
(2) Any information concerning the cost of the property.
SOURCE: IC 6-1.1-12.1-5.4; (07)IN1492.1.6. -->
SECTION 6. IC 6-1.1-12.1-5.4, AS AMENDED BY P.L.193-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 5.4. (a) A person that desires to obtain the
deduction provided by section 4.5 of this chapter must file a certified
deduction schedule with the person's personal property return on a form
prescribed by the department of local government finance with the
township assessor of the township in which the new manufacturing
equipment, new research and development equipment, new logistical
distribution equipment, or new information technology equipment is
located. Except as provided in subsection (e), the deduction is applied
in the amount claimed in a certified schedule that a person files with:
(1) a timely personal property return under IC 6-1.1-3-7(a) or
IC 6-1.1-3-7(b); or
(2) a timely amended personal property return under
IC 6-1.1-3-7.5.
The township assessor shall forward to the county auditor and the
county assessor a copy of each certified deduction schedule filed under
this subsection.
(b) The deduction schedule required by this section must contain the
following information:
(1) The name of the owner of and, if applicable, the name of a
person leasing the new manufacturing equipment, new research
and development equipment, new logistical distribution
equipment, or new information technology equipment.
(2) A description of the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment.
(3) The amount of the deduction claimed for the first year of the
deduction.
(c) This subsection applies to a deduction schedule with respect to
new manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new information
technology equipment for which a statement of benefits was initially
approved after April 30, 1991. If a determination about the number of
years the deduction is allowed has not been made in the resolution
adopted under section 2.5 of this chapter, the county auditor shall send
a copy of the deduction schedule to the designating body, and the
designating body shall adopt a resolution under section 4.5(g)(2) of this
chapter.
(d) A deduction schedule must be filed under this section in the year
in which the new manufacturing equipment, new research and
development equipment, new logistical distribution equipment, or new
information technology equipment is installed and in each of the
immediately succeeding years the deduction is allowed.
(e) The township assessor or the county assessor may:
(1) review the deduction schedule; and
(2) before the March 1 that next succeeds the assessment date for
which the deduction is claimed, deny or alter the amount of the
deduction.
If the township assessor or the county assessor does not deny the
deduction, the county auditor shall apply the deduction in the amount
claimed in the deduction schedule or in the amount as altered by the
township assessor or the county assessor. A township assessor or a
county assessor who denies a deduction under this subsection or alters
the amount of the deduction shall notify the person that claimed the
deduction and the county auditor of the assessor's action. The county
auditor shall notify the designating body and the county property tax
assessment board of appeals of all deductions applied under this
section.
(f) If the ownership of new manufacturing equipment, new research
and development equipment, new logistical distribution equipment, or
new information technology equipment changes, the deduction
provided under section 4.5 of this chapter continues to apply to that
equipment if:
(1) the new owner or person leasing the property from the new
owner
(1) continues to use the equipment in compliance with any
standards established under section 2(g) of this chapter; and
(2) the new owner files the deduction schedules required by this
section.
(g) The amount of the deduction is the percentage under section 4.5
of this chapter that would have applied if the ownership of the property
had not changed multiplied by the assessed value of the equipment for
the year the deduction is claimed by the new owner.
(h) A person may appeal a determination of the township assessor
or the county assessor under subsection (e) to deny or alter the amount
of the deduction by requesting in writing a preliminary conference with
the township assessor or the county assessor not more than forty-five
(45) days after the township assessor or the county assessor gives the
person notice of the determination. Except as provided in subsection
(i), an appeal initiated under this subsection is processed and
determined in the same manner that an appeal is processed and
determined under IC 6-1.1-15.
(i) The county assessor is recused from any action the county
property tax assessment board of appeals takes with respect to an
appeal under subsection (h) of a determination by the county assessor.
SOURCE: IC 6-1.1-12.1-5.6; (07)IN1492.1.7. -->
SECTION 7. IC 6-1.1-12.1-5.6, AS AMENDED BY P.L.1-2006,
SECTION 134, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2008]: Sec. 5.6. (a) This subsection
applies to a property owner whose statement of benefits was approved
under section 4.5 of this chapter before July 1, 1991. In addition to the
requirements of section 5.4(b) of this chapter, a deduction schedule
filed under section 5.4 of this chapter must contain information
showing the extent to which there has been compliance with the
statement of benefits approved under section 4.5 of this chapter.
Failure to comply with a statement of benefits approved before July 1,
1991, may not be a basis for rejecting a deduction schedule.
(b) This subsection applies to a property owner whose statement of
benefits was approved under section 4.5 of this chapter after June 30,
1991. In addition to the requirements of section 5.4(b) of this chapter,
a property owner who files a deduction schedule under section 5.4 of
this chapter must provide the county auditor and the designating body
with information showing the extent to which there has been
compliance with the statement of benefits approved under section 4.5
of this chapter.
(c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following
information is a public record if filed under this section:
(1) The name and address of the taxpayer and, if applicable, the
name of the person leasing the property from the taxpayer.
(2) The location and description of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment for which the deduction was granted.
(3) Any information concerning the number of employees at the
facility where the new manufacturing equipment, new research
and development equipment, new logistical distribution
equipment, or new information technology equipment is located,
including estimated totals that were provided as part of the
statement of benefits.
(4) Any information concerning the total of the salaries paid to
those employees, including estimated totals that were provided as
part of the statement of benefits.
(5) Any information concerning the amount of solid waste or
hazardous waste converted into energy or other useful products by
the new manufacturing equipment.
(6) Any information concerning the assessed value of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment including estimates that were
provided as part of the statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by:
(A) the owner of the new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment; or
(B) a person leasing equipment described in clause (A)
from the owner of the equipment.
(2) Any information concerning the cost of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
SOURCE: IC 6-1.1-12.1-5.9; (07)IN1492.1.8. -->
SECTION 8. IC 6-1.1-12.1-5.9, AS AMENDED BY P.L.154-2006,
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 5.9. (a) This section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter for
which a statement of benefits was approved before July 1, 1991.
(b) Not later than forty-five (45) days after receipt of the information
described in section 5.1, 5.3(j), or 5.6 of this chapter, the designating
body may determine whether the property owner has substantially
complied with the statement of benefits approved under section 3, 4.5,
or 4.8 of this chapter. If the designating body determines that the
property owner has not substantially complied with the statement of
benefits and that the failure to substantially comply was not caused by
factors beyond the control of the property owner (such as declines in
demand for the property owner's products or services), the designating
body shall mail a written notice to the property owner. The written
notice must include the following provisions:
(1) An explanation of the reasons for the designating body's
determination.
(2) The date, time, and place of a hearing to be conducted by the
designating body for the purpose of further considering the
property owner's compliance with the statement of benefits. The
date of the hearing may not be more than thirty (30) days after the
date on which the notice is mailed.
(c) On the date specified in the notice described in subsection
(b)(2), the designating body shall conduct a hearing for the purpose of
further considering the property owner's compliance with the statement
of benefits. Based on the information presented at the hearing by the
property owner and other interested parties, the designating body shall
again determine whether the property owner has made reasonable
efforts to substantially comply with the statement of benefits and
whether any failure to substantially comply was caused by factors
beyond the control of the property owner. If the designating body
determines that the property owner has not made reasonable efforts to
comply with the statement of benefits, the designating body shall adopt
a resolution terminating the property owner's deduction under section
3, 4.5, or 4.8 of this chapter. If the designating body adopts such a
resolution, the deduction does not apply to the next installment of
property taxes owed by the property owner or to any subsequent
installment of property taxes.
(d) A property owner is not excused from showing substantial
compliance for benefits approved under section 3 or 4.5 of this
chapter, if the reason for the property owner's noncompliance is
that the property owner did not obtain or receive information
necessary to demonstrate substantial compliance from the
property owner's tenant or lessee.
(d) (e) If the designating body adopts a resolution terminating a
deduction under subsection (c), the designating body shall immediately
mail a certified copy of the resolution to:
(1) the property owner;
(2) the county auditor; and
(3) if the deduction applied under section 4.5 of this chapter, the
township assessor.
The county auditor shall remove the deduction from the tax duplicate
and shall notify the county treasurer of the termination of the
deduction. If the designating body's resolution is adopted after the
county treasurer has mailed the statement required by IC 6-1.1-22-8,
the county treasurer shall immediately mail the property owner a
revised statement that reflects the termination of the deduction.
(e) (f) A property owner whose deduction is terminated by the
designating body under this section may appeal the designating body's
decision by filing a complaint in the office of the clerk of the circuit or
superior court together with a bond conditioned to pay the costs of the
appeal if the appeal is determined against the property owner. An
appeal under this subsection shall be promptly heard by the court
without a jury and determined within thirty (30) days after the time of
the filing of the appeal. The court shall hear evidence on the appeal and
may confirm the action of the designating body or sustain the appeal.
The judgment of the court is final and conclusive unless an appeal is
taken as in other civil actions.
(f) (g) If an appeal under subsection
(e) (f) is pending, the taxes
resulting from the termination of the deduction are not due until after
the appeal is finally adjudicated and the termination of the deduction
is finally determined.
SOURCE: IC 6-1.1-12.1-12; (07)IN1492.1.9. -->
SECTION 9. IC 6-1.1-12.1-12, AS AMENDED BY P.L.154-2006,
SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2008]: Sec. 12. (a) A property owner that has received
a deduction under section 3 or 4.5 of this chapter is subject to the
provisions of this section if the designating body adopts a resolution
incorporating the provisions of this section for the economic
revitalization area in which the property owner is located.
(b) If:
(1) the property owner, (or, in the case of a deduction under
section 4.8 of this chapter, the property owner or a tenant of the
property owner, ceases operations at the facility for which the
deduction was granted; and
(2) the designating body finds that the property owner obtained
the deduction by intentionally providing false information
concerning the property owner's or property owner's tenant's
plans to continue operations at the facility;
the property owner shall pay the amount determined under subsection
(e) to the county treasurer.
(c) A property owner may appeal the designating body's decision
under subsection (b) by filing a complaint in the office of the clerk of
the circuit or superior court together with a bond conditioned to pay the
costs of the appeal if the appeal is determined against the property
owner. An appeal under this subsection shall be promptly heard by the
court without a jury and determined not more than thirty (30) days after
the time of the filing of the appeal. The court shall hear evidence on the
appeal and may confirm the action of the designating body or sustain
the appeal. The judgment of the court is a final determination that may
be appealed in the same manner as other civil actions.
(d) If an appeal under subsection (c) is pending, the payment
required by this section is not due until after the appeal is finally
adjudicated and the property owner's liability for the payment is finally
determined.
(e) The county auditor shall determine the amount to be paid by the
property owner according to the following formula:
STEP ONE: For each year that the deduction was in effect,
determine the additional amount of property taxes that would
have been paid by the property owner if the deduction had not
been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Multiply the sum determined under STEP TWO
by one and one-tenth (1.1).
(f) The county treasurer shall distribute money paid under this
section on a pro rata basis to the general fund of each taxing unit that
contains the property that was subject to the deduction. The amount to
be distributed to the general fund of each taxing unit shall be
determined by the county auditor according to the following formula:
STEP ONE: For each year that the deduction was in effect,
determine the additional amount of property taxes that would
have been paid by the property owner to the taxing unit if the
deduction had not been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Divide the STEP TWO sum by the sum
determined under STEP TWO of subsection (e).
STEP FOUR: Multiply the amount paid by the property owner
under subsection (e) by the STEP THREE quotient.
SOURCE: ; (07)IN1492.1.10. -->
SECTION 10. [EFFECTIVE JANUARY 1, 2008]
IC 6-1.1-12.1-1,
IC 6-1.1-12.1-3, IC 6-1.1-12.1-4.5, IC 6-1.1-12.1-5, IC 6-1.1-12.1-5.1,
IC 6-1.1-12.1-5.4, IC 6-1.1-12.1-5.6, IC 6-1.1-12.1-5.9, and
IC 6-1.1-12.1-12, all as amended by this act, apply to ad valorem
property taxes with assessment dates after February 28, 2008.