Introduced Version






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 purposes.

Effective: July 1, 2010.





Truitt, Borror, Klinker




    January 12, 2010, read first time and referred to Committee on Rules and Legislative Procedures.







Introduced

Second Regular Session 116th General Assembly (2010)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2009 Regular and Special Sessions of the General Assembly.

HOUSE BILL No. 1254



    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 6-1.1-12.7; (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, 2015.
    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 IC 6-1.1-3-7.5.
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 determination.
    (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 criteria:
        (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 infrastructure.
            (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 private businesses.
        (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 enterprises.


            (C) A commitment to the employment of a qualified full-time manager to supervise the development and operation of the business incubator.
        (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 review:
        (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); and
        (2) marked as confidential;
by the certified technology park.