HOUSE BILL No. 1254
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-12.7; IC 36-7-32-11.
Synopsis: Certified technology parks. Permits a county fiscal body to
allow a 100% assessed value deduction for personal property that is
primarily used to conduct high technology activity and is newly located
within a certified technology park. Requires the county council of a
county in which a certified technology park is located to determine how
many years the personal property is entitled to a deduction. Provides
that the deduction must be granted for at least two years but not more
than ten years. Excludes from the deduction any personal property that
is part of the assessed value used for tax increment financing and
personal property that is used primarily for routine administrative
Effective: July 1, 2010.
Truitt, Borror, Klinker
January 12, 2010, read first time and referred to Committee on Rules and Legislative
Second Regular Session 116th General Assembly (2010)
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HOUSE BILL No. 1254
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-12.7; (10)IN1254.1.1. -->
SECTION 1. IC 6-1.1-12.7 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2010]:
Chapter 12.7. Deduction for Personal Property Within a
Certified Technology Park
Sec. 1. As used in this chapter, "certified technology park"
refers to a certified technology park that is:
(1) established under IC 36-7-32; and
(2) certified as of the assessment date for which the deduction
under this chapter is claimed.
Sec. 2. As used in this chapter, "high technology activity" has
the meaning set forth in IC 36-7-32-7.
Sec. 3. As used in this chapter, "qualified personal property"
means personal property that is:
(1) assessed for the first time after December 31, 2010;
(2) located within a certified technology park;
(3) primarily used to conduct high technology activity; and
(4) not part of the assessed value for which a personal
property tax allocation has been made for the payment of the
principal of and interest on bonds or lease rentals under
IC 5-28-26, IC 6-1.1-39, IC 8-22-3.5, IC 36-7-14, IC 36-7-14.5,
IC 36-7-15.1, IC 36-7-30, IC 36-7-30.5, or IC 36-7-32.
The term does not include personal property that is used primarily
for routine administrative purposes such as office communications,
accounting, record keeping, and human resources.
Sec. 4. (a) A county fiscal body may adopt an ordinance
providing that a deduction applies to the assessed value of qualified
personal property located in the county. The deduction is equal to
one hundred percent (100%) of the assessed value of qualified
personal property located in the county for each calendar year
specified in the ordinance. An ordinance adopted under this section
must be adopted before January 1 of the first assessment year for
which a taxpayer may claim a deduction under the ordinance.
(b) An ordinance adopted under subsection (a) must specify the
number of assessment years that a deduction is allowed under this
chapter. However, a deduction may not be allowed for:
(1) less than two (2) assessment years; or
(2) more than ten (10) assessment years.
(c) The fiscal body shall send a certified copy of the ordinance
adopted under subsection (a) to the county assessor and county
auditor. The fiscal body's determination of the number of years the
deduction is allowed is final and may not be changed.
(d) An ordinance adopted under subsection (a) may not allow a
deduction for qualified personal property installed after March 1,
Sec. 5. (a) To obtain the deduction under this chapter, an owner
of qualified personal property must file a certified deduction
schedule with the county assessor in which the qualified personal
property is located. The department of local government finance
shall prescribe the form of the schedule. A schedule must be filed
for each year the deduction is being claimed.
(b) The schedule must be filed 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
The county assessor shall forward to the county auditor a copy of
each schedule filed.
(c) The schedule must contain at least the following information:
(1) The name of the owner of the qualified personal property.
(2) A description of the qualified personal property and the
address of the real estate on which it is located.
(3) Documentation that the qualified personal property is
located within a certified technology park.
(4) Documentation that the qualified personal property is
primarily used to conduct high technology activity.
(d) The deduction applies to the qualified personal property
claimed in a schedule. However, the county assessor may:
(1) review the 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 county assessor does not deny the deduction, the county
auditor shall apply the deduction in the amount claimed in the
schedule or in the amount as altered by the county assessor. 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
(e) A person may appeal a determination by the county assessor
to deny or alter the amount of the deduction by requesting in
writing, not more than forty-five (45) days after the county
assessor gives the person notice of the determination, a meeting
with the county assessor. An appeal initiated under this subsection
must be processed and determined in the same manner that an
appeal is processed and determined under IC 6-1.1-15. However,
the county assessor may not participate in any action the county
property tax assessment board of appeals takes with respect to an
appeal of a determination by the county assessor.
SOURCE: IC 36-7-32-11; (10)IN1254.1.2. -->
SECTION 2. IC 36-7-32-11, AS AMENDED BY P.L.3-2008,
SECTION 263, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2010]: Sec. 11. (a) After receipt of an
application under section 10 of this chapter, and subject to subsection
(b), the Indiana economic development corporation may designate a
certified technology park if the corporation determines that the
application demonstrates a firm commitment from at least one (1)
business engaged in a high technology activity creating a significant
number of jobs and satisfies one (1) or more of the following additional
(1) A demonstration of significant support from an institution of
higher education, a private research based institute, or a military
research and development or testing facility on an active United
States government military base or other military installation
located within, or in the vicinity of, the proposed certified
technology park, as evidenced by the following criteria:
(A) Grants of preferences for access to and commercialization
of intellectual property.
(B) Access to laboratory and other facilities owned by or under
the control of the postsecondary educational institution or
private research based institute.
(C) Donations of services.
(D) Access to telecommunications facilities and other
(E) Financial commitments.
(F) Access to faculty, staff, and students.
(G) Opportunities for adjunct faculty and other types of staff
arrangements or affiliations.
(H) Other criteria considered appropriate by the Indiana
economic development corporation.
(2) A demonstration of a significant commitment by the
postsecondary educational institution, private research based
institute, or military research and development or testing facility
on an active United States government military base or other
military installation to the commercialization of research
produced at the certified technology park, as evidenced by the
intellectual property and, if applicable, tenure policies that reward
faculty and staff for commercialization and collaboration with
(3) A demonstration that the proposed certified technology park
will be developed to take advantage of the unique characteristics
and specialties offered by the public and private resources
available in the area in which the proposed certified technology
park will be located.
(4) The existence of or proposed development of a business
incubator within the proposed certified technology park that
exhibits the following types of resources and organization:
(A) Significant financial and other types of support from the
public or private resources in the area in which the proposed
certified technology park will be located.
(B) A business plan exhibiting the economic utilization and
availability of resources and a likelihood of successful
development of technologies and research into viable business
(C) A commitment to the employment of a qualified full-time
manager to supervise the development and operation of the
(5) The existence of a business plan for the proposed certified
technology park that identifies its objectives in a clearly focused
and measurable fashion and that addresses the following matters:
(A) A commitment to new business formation.
(B) The clustering of businesses, technology, and research.
(C) The opportunity for and costs of development of properties
under common ownership or control.
(D) The availability of and method proposed for development
of infrastructure and other improvements, including
telecommunications technology, necessary for the
development of the proposed certified technology park.
(E) Assumptions of costs and revenues related to the
development of the proposed certified technology park.
(6) A demonstrable and satisfactory assurance that the proposed
certified technology park can be developed to principally contain
property that is primarily used for, or will be primarily used for,
a high technology activity or a business incubator.
(b) The Indiana economic development corporation may not
approve an application that would result in a substantial reduction or
cessation of operations in another location in Indiana in order to
relocate them within the certified technology park.
(c) A certified technology park designated under this section is
subject to the review of the Indiana economic development corporation
and must be recertified every four (4) years. The corporation shall
develop procedures and the criteria to be used in the review required
by this subsection. A certified technology park shall furnish to the
corporation the following information to be used in the course of the
(1) Total employment and payroll levels for all businesses
operating within the certified technology park.
(2) The nature and extent of any technology transfer activity
occurring within the certified technology park.
(3) The nature and extent of any nontechnology businesses
operating within the certified technology park.
(4) The use and outcomes of any state money made available to
the certified technology park.
(5) An analysis of the certified technology park's overall
contribution to the technology based economy in Indiana.
If a certified technology park is not recertified, the Indiana
economic development corporation shall send a certified copy of a
notice of the determination to the county auditor and to the
department of local government finance.
(d) To the extent allowed under IC 5-14-3, the corporation shall
maintain the confidentiality of any information that is:
(1) submitted as part of the review process under subsection (c);
(2) marked as confidential;
by the certified technology park.