Be it enacted by the General Assembly of the State of Indiana:
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 a U.E.A., 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
9 of this chapter.
(7) To employ staff and contract for services.
(8) To receive funds from any source and expend the 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.
(10) To make determinations under IC 6-3.1-11 concerning the
disqualification of persons from claiming credits provided by that
chapter 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.
(b) In addition to a registration fee paid under subsection (a)(4)(A),
each zone business that receives an incentive described in section 3 of
this chapter shall assist the zone U.E.A. in an amount determined by
the legislative body of the municipality in which the zone is located. If
a zone business does not assist a U.E.A., 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 not more than thirty (30)
days after 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 adopted.
SECTION 2. IC 5-28-28-4, AS AMENDED BY SEA 162-2013,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 4. As used in this chapter, "tax credit" means
a state tax liability credit under any of the following:
(1) IC 6-3.1-7.
(2) IC 6-3.1-13.
(3) IC 6-3.1-13.5 (until January 1, 2020).
(4) (3) IC 6-3.1-26.
(5) (4) IC 6-3.1-27.
(6) (5) IC 6-3.1-28.
(7) (6) IC 6-3.1-30.
(8) (7) IC 6-3.1-31.9.
(9) (8) IC 6-3.1-33.
SECTION 3. IC 6-1.1-12-37, AS AMENDED BY P.L.137-2012,
SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
MARCH 1, 2013 (RETROACTIVE)]: Sec. 37. (a) The following
definitions apply throughout this section:
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual
uses as the individual's residence, including a house or garage.
(B) A mobile home that is not assessed as real property that an
individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property
that an individual uses as the individual's residence.
(2) "Homestead" means an individual's principal place of
residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a contract; recorded in the
county recorder's office, that provides that the individual is
to pay the property taxes on the residence;
(iii) the individual is entitled to occupy as a
tenant-stockholder (as defined in 26 U.S.C. 216) of a
cooperative housing corporation (as defined in 26 U.S.C.
216); or
(iv) is a residence described in section 17.9 of this chapter
that is owned by a trust if the individual is an individual
described in section 17.9 of this chapter; and
(C) that consists of a dwelling and the real estate, not
exceeding one (1) acre, that immediately surrounds that
dwelling.
Except as provided in subsection (k), the term does not include
property owned by a corporation, partnership, limited liability
company, or other entity not described in this subdivision.
(b) Each year a homestead is eligible for a standard deduction from
the assessed value of the homestead for an assessment date. Except as
provided in subsection (p), the deduction provided by this section
applies to property taxes first due and payable for an assessment date
only if an individual has an interest in the homestead described in
subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
Subject to subsection (c), the auditor of the county shall record and
make the deduction for the individual or entity qualifying for the
deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) sixty percent (60%) of the assessed value of the real property,
mobile home not assessed as real property, or manufactured home
not assessed as real property; or
(2) forty-five thousand dollars ($45,000).
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a contract that provides that the contract buyer
is to pay the property taxes on the real property, mobile home, or
manufactured home may not claim the deduction provided under this
section with respect to that real property, mobile home, or
manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement in
duplicate, on forms prescribed by the department of local government
finance, with the auditor of the county in which the homestead is
located. The statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead
under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States
Social Security Administration for the purposes of the
issuance of a Social Security card and Social Security
number; or
(ii) that they use as their legal names when they sign their
names on legal documents;
if the applicant is not an individual; and
(4) either:
(A) the last five (5) digits of the applicant's Social Security
number and the last five (5) digits of the Social Security
number of the applicant's spouse (if any); or
(B) if the applicant or the applicant's spouse (if any) do not
have a Social Security number, any of the following for that
individual:
(i) The last five (5) digits of the individual's driver's license
number.
(ii) The last five (5) digits of the individual's state
identification card number.
(iii) If the individual does not have a driver's license or a
state identification card, the last five (5) digits of a control
number that is on a document issued to the individual by the
federal government and determined by the department of
local government finance to be acceptable.
If a form or statement provided to the county auditor under this section,
IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
part or all of the Social Security number of a party or other number
described in subdivision (4)(B) of a party, the telephone number and
the Social Security number or other number described in subdivision
(4)(B) included are confidential. The statement may be filed in person
or by mail. If the statement is mailed, the mailing must be postmarked
on or before the last day for filing. The statement applies for that first
year and any succeeding year for which the deduction is allowed. With
respect to real property, the statement must be completed and dated in
the calendar year for which the person desires to obtain the deduction
and filed with the county auditor on or before January 5 of the
immediately succeeding calendar year. With respect to a mobile home
that is not assessed as real property, the person must file the statement
during the twelve (12) months before March 31 of the year for which
the person desires to obtain the deduction.
(f) If an individual who is receiving the deduction provided by this
section or who otherwise qualifies property for a deduction under this
section:
(1) changes the use of the individual's property so that part or all
of the property no longer qualifies for the deduction under this
section; or
(2) is no longer eligible for a deduction under this section on
another parcel of property because:
(A) the individual would otherwise receive the benefit of more
than one (1) deduction under this chapter; or
(B) the individual maintains the individual's principal place of
residence with another individual who receives a deduction
under this section;
the individual must file a certified statement with the auditor of the
county, notifying the auditor of the change of use, not more than sixty
(60) days after the date of that change. An individual who fails to file
the statement required by this subsection is liable for any additional
taxes that would have been due on the property if the individual had
filed the statement as required by this subsection plus a civil penalty
equal to ten percent (10%) of the additional taxes due. The civil penalty
imposed under this subsection is in addition to any interest and
penalties for a delinquent payment that might otherwise be due. One
percent (1%) of the total civil penalty collected under this subsection
shall be transferred by the county to the department of local
government finance for use by the department in establishing and
maintaining the homestead property data base under subsection (i) and,
to the extent there is money remaining, for any other purposes of the
department. This amount becomes part of the property tax liability for
purposes of this article.
(g) The department of local government finance shall adopt rules or
guidelines concerning the application for a deduction under this
section.
(h) This subsection does not apply to property in the first year for
which a deduction is claimed under this section if the sole reason that
a deduction is claimed on other property is that the individual or
married couple maintained a principal residence at the other property
on March 1 in the same year in which an application for a deduction is
filed under this section or, if the application is for a homestead that is
assessed as personal property, on March 1 in the immediately
preceding year and the individual or married couple is moving the
individual's or married couple's principal residence to the property that
is the subject of the application. Except as provided in subsection (n),
the county auditor may not grant an individual or a married couple a
deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(i) The department of local government finance shall provide secure
access to county auditors to a homestead property data base that
includes access to the homestead owner's name and the numbers
required from the homestead owner under subsection (e)(4) for the sole
purpose of verifying whether an owner is wrongly claiming a deduction
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.5.
(j) A county auditor may require an individual to provide evidence
proving that the individual's residence is the individual's principal place
of residence as claimed in the certified statement filed under subsection
(e). The county auditor may limit the evidence that an individual is
required to submit to a state income tax return, a valid driver's license,
or a valid voter registration card showing that the residence for which
the deduction is claimed is the individual's principal place of residence.
The department of local government finance shall work with county
auditors to develop procedures to determine whether a property owner
that is claiming a standard deduction or homestead credit is not eligible
for the standard deduction or homestead credit because the property
owner's principal place of residence is outside Indiana.
(k) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a dwelling
and the real estate, not exceeding one (1) acre, that immediately
surrounds that dwelling.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction under
this section on March 1, 2009.
(l) If a county auditor terminates a deduction for property described
in subsection (k) with respect to property taxes that are:
(1) imposed for an assessment date in 2009; and
(2) first due and payable in 2010;
on the grounds that the property is not owned by an entity described in
subsection (a)(2)(B), the county auditor shall reinstate the deduction if
the taxpayer provides proof that the property is eligible for the
deduction in accordance with subsection (k) and that the individual
residing on the property is not claiming the deduction for any other
property.
(m) For assessments dates after 2009, the term "homestead"
includes:
(1) a deck or patio;
(2) a gazebo; or
(3) another residential yard structure, as defined in rules adopted
by the department of local government finance (other than a
swimming pool);
residence, the property owner may appeal the county auditor's
determination to the county property tax assessment board of appeals
as provided in IC 6-1.1-15. The county auditor shall inform the
property owner of the owner's right to appeal to the county property tax
assessment board of appeals when the county auditor informs the
property owner of the county auditor's determination under this
subsection.
(p) An individual is entitled to the deduction under this section
for a homestead for a particular assessment date if:
(1) either:
(A) the individual's interest in the homestead as described
in subsection (a)(2)(B) is conveyed to the individual after
the assessment date, but within the calendar year in which
the assessment date occurs; or
(B) the individual contracts to purchase the homestead
after the assessment date, but within the calendar year in
which the assessment date occurs;
(2) on the assessment date:
(A) the property on which the homestead is currently
located was vacant land; or
(B) the construction of the dwelling that constitutes the
homestead was not completed;
(3) either:
(A) the individual files the certified statement required by
subsection (e) on or before December 31 of the calendar
year in which the assessment date occurs to claim the
deduction under this section; or
(B) a sales disclosure form that meets the requirements of
section 44 of this chapter is submitted to the county
assessor on or before December 31 of the calendar year for
the individual's purchase of the homestead; and
(4) the individual files with the county auditor on or before
December 31 of the calendar year in which the assessment
date occurs a statement that:
(A) lists any other property for which the individual would
otherwise receive a deduction under this section for the
assessment date; and
(B) cancels the deduction described in clause (A) for that
property.
An individual who satisfies the requirements of subdivisions (1)
through (4) is entitled to the deduction under this section for the
homestead for the assessment date, even if on the assessment date
the property on which the homestead is currently located was
vacant land or the construction of the dwelling that constitutes the
homestead was not completed. The county auditor shall apply the
deduction for the assessment date and for the assessment date in
any later year in which the homestead remains eligible for the
deduction. A homestead that qualifies for the deduction under this
section as provided in this subsection is considered a homestead for
purposes of section 37.5 of this chapter and IC 6-1.1-20.6. The
county auditor shall cancel the deduction under this section for any
property that is located in the county and is listed on the statement
filed by the individual under subdivision (4). If the property listed
on the statement filed under subdivision (4) is located in another
county, the county auditor who receives the statement shall
forward the statement to the county auditor of that other county,
and the county auditor of that other county shall cancel the
deduction under this section for that property.
SECTION 4. IC 6-1.1-12.1-1, AS AMENDED BY P.L.224-2007,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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.
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 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;
distribution of goods, services, or information:
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant, if the tangible personal
property has been previously used in Indiana before the
installation described in clause (A); and
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the installation
described in clause (A); and
(D) the deduction applicant has 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 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 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.
SECTION 5. IC 6-1.1-12.1-2, AS AMENDED BY P.L.119-2012,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 2. (a) A designating body may find that a
particular area within its jurisdiction is an economic revitalization area.
However, the deduction provided by this chapter for economic
revitalization areas not within a city or town shall not be available to
retail businesses.
(b) In a county containing a consolidated city or within a city or
town, a designating body may find that a particular area within its
jurisdiction is a residentially distressed area. Designation of an area as
a residentially distressed area has the same effect as designating an
area as an economic revitalization area, except that the amount of the
deduction shall be calculated as specified in section 4.1 of this chapter
and the deduction is allowed for not more than five (5) years. the
number of years specified by the designating body under section 17
of this chapter. In order to declare a particular area a residentially
distressed area, the designating body must follow the same procedure
that is required to designate an area as an economic revitalization area
and must make all the following additional findings or all the additional
findings described in subsection (c):
(1) The area is comprised of parcels that are either unimproved or
contain only one (1) or two (2) family dwellings or multifamily
dwellings designed for up to four (4) families, including accessory
buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and
are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and
IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two
hundred fifty thousand (250,000) but less than two hundred seventy
thousand (270,000), the designating body is only required to make one
(1) of the additional findings described in this subsection or one (1) of
the additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or
town, a designating body that wishes to designate a particular area a
residentially distressed area may make the following additional
findings as an alternative to the additional findings described in
subsection (b):
(1) A significant number of dwelling units within the area are not
permanently occupied or a significant number of parcels in the
area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number of dwelling
units, as documented by census information, local building and
demolition permits, or certificates of occupancy, or the area is
owned by Indiana or the United States.
(4) The area (plus any areas previously designated under this
subsection) will not exceed ten percent (10%) of the total area
within the designating body's jurisdiction.
However, in a city in a county having a population of more than two
hundred fifty thousand (250,000) but less than two hundred seventy
thousand (270,000), the designating body is only required to make one
(1) of the additional findings described in this subsection as an
alternative to one (1) of the additional findings described in subsection
(b).
(d) A designating body is required to attach the following conditions
to the grant of a residentially distressed area designation:
(1) The deduction will not be allowed unless the dwelling is
rehabilitated to meet local code standards for habitability.
(2) If a designation application is filed, the designating body may
require that the redevelopment or rehabilitation be completed
within a reasonable period of time.
(e) To make a designation described in subsection (a) or (b), the
designating body shall use procedures prescribed in section 2.5 of this
chapter.
(f) The property tax deductions provided by section 3, 4.5, or 4.8 of
this chapter are only available within an area which the designating
body finds to be an economic revitalization area.
(g) The designating body may adopt a resolution establishing
general standards to be used, along with the requirements set forth in
the definition of economic revitalization area, by the designating body
in finding an area to be an economic revitalization area. The standards
must have a reasonable relationship to the development objectives of
the area in which the designating body has jurisdiction. The following
four (4) sets of standards may be established:
(1) One (1) relative to the deduction under section 3 of this
chapter for economic revitalization areas that are not residentially
distressed areas.
(2) One (1) relative to the deduction under section 3 of this
chapter for residentially distressed areas.
(3) One (1) relative to the deduction allowed under section 4.5 of
this chapter.
(4) One (1) relative to the deduction allowed under section 4.8 of
this chapter.
(h) A designating body may impose a fee for filing a designation
application for a person requesting the designation of a particular area
as an economic revitalization area. The fee may be sufficient to defray
actual processing and administrative costs. However, the fee charged
for filing a designation application for a parcel that contains one (1) or
more owner-occupied, single-family dwellings may not exceed the cost
of publishing the required notice.
(i) In declaring an area an economic revitalization area, the
designating body may:
(1) limit the time period to a certain number of calendar years
during which the economic revitalization area shall be so
designated;
(2) limit the type of deductions that will be allowed within the
economic revitalization area to the deduction allowed under
section 3 of this chapter, the deduction allowed under section 4.5
of this chapter, the deduction allowed under section 4.8 of this
chapter, or any combination of these deductions;
(3) limit the dollar amount of the deduction that will be allowed
with respect to new manufacturing equipment, new research and
development equipment, new logistical distribution equipment,
and new information technology equipment; if a deduction under
this chapter had not been filed before July 1, 1987, for that
equipment;
(4) limit the dollar amount of the deduction that will be allowed
with respect to redevelopment and rehabilitation occurring in
areas that are designated as economic revitalization areas; on or
after September 1, 1988;
(5) limit the dollar amount of the deduction that will be allowed
under section 4.8 of this chapter with respect to the occupation of
an eligible vacant building; or
(6) impose reasonable conditions related to the purpose of this
chapter or to the general standards adopted under subsection (g)
for allowing the deduction for the redevelopment or rehabilitation
of the property or the installation of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment.
To exercise one (1) or more of these powers, a designating body must
include this fact in the resolution passed under section 2.5 of this
chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment installed on or before the
approval deadline determined under section 9 of this chapter, but
after the expiration of the economic revitalization area if
(A) the economic revitalization area designation expires after
December 30, 1995; and
(B) the new manufacturing equipment, new research and
development equipment, new logistical distribution
equipment, or new information technology equipment was
described in a statement of benefits submitted to and approved
by the designating body in accordance with section 4.5 of this
chapter before the expiration of the economic revitalization
area designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 4, 4.5, or 4.8 17 of this chapter.
days after the time of the filing of the appeal. The court shall hear
evidence on the appeal, and may confirm the final 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.
SECTION 7. IC 6-1.1-12.1-3, AS AMENDED BY P.L.119-2012,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: 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 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). section 17 of this
chapter. 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. section 17
of this chapter.
(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 The designating body's
determination shall must 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 must
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 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.
SECTION 8. IC 6-1.1-12.1-4, AS AMENDED BY P.L.112-2012,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4. (a) Except as provided in section 2(i)(4) of this
chapter, and subject to section 15 of this chapter, the amount of the
deduction which the property owner is entitled to receive under section
3 of this chapter for a particular year equals the product of:
(1) the increase in the assessed value resulting from the
rehabilitation or redevelopment; multiplied by
(2) either of the following:
(A) The percentage prescribed in the table set forth in
subsection (d).
(B) a the percentage determined under section 17 of this
chapter. if the designating body elects to use an alternative
abatement schedule provided under section 17 of this chapter.
(b) The amount of the deduction determined under subsection (a)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If:
(A) a general reassessment of real property under IC 6-1.1-4-4;
or
(B) a reassessment under a county's reassessment plan
prepared under IC 6-1.1-4-4.2;
of the deduction the property owner is entitled to receive under
section 3 of this chapter in a residentially distressed area for a
particular year equals the product of:
(1) the increase in the assessed value resulting from the
rehabilitation or redevelopment; multiplied by
(2) the percentage determined under section 17 of this
chapter.
SECTION 10. IC 6-1.1-12.1-4.5, AS AMENDED BY P.L.6-2012,
SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4.5. (a) 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 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.
(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 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.
(c) Except as provided in subsection (g), (f), and subject to
subsection (h) (g) and section 15 of this chapter, 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 (f). section 17 of this chapter. Except as provided in
subsection (e) (d) and in section 2(i)(3) of this chapter, and subject to
subsection (h) (g) and section 15 of this chapter, 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
(d); abatement schedule established under section 17 of this
chapter; multiplied by
(2) the percentage prescribed in the appropriate table set forth in
subsection (d). by the designating body under section 17 of this
chapter.
(d) Unless the designating body elects to use an alternative
abatement schedule provided under section 17 of this chapter to
calculate a deduction, the percentage to be used in calculating the
deduction under subsection (c) 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%
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 criminal violation under IC 13, including
IC 13-7-13-3 (repealed) or IC 13-7-13-4 (repealed); 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.
(h) (g) For purposes of subsection (c), 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.
SECTION 11. IC 6-1.1-12.1-4.7, AS AMENDED BY P.L.119-2012,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4.7. (a) Section 4.5(e) 4.5(d) of this chapter does
not apply to new manufacturing equipment located in a township
having a population of more than four thousand (4,000) but less than
seven thousand (7,000) located in a county having a population of more
than forty-two thousand (42,000) but less than forty-two thousand three
hundred (42,300) if the total original cost of all new manufacturing
equipment placed into service by the owner during the preceding sixty
(60) months exceeds fifty million dollars ($50,000,000), and if the
economic revitalization area in which the new manufacturing
equipment was installed was approved by the designating body before
September 1, 1994.
(b) Section 4.5(e) 4.5(d) of this chapter does not apply to new
manufacturing equipment located in a county having a population of
more than thirty-three thousand five hundred (33,500) but less than
thirty-four thousand (34,000) if:
(1) the total original cost of all new manufacturing equipment
placed into service in the county by the owner exceeds five
hundred million dollars ($500,000,000); and
(2) the economic revitalization area in which the new
manufacturing equipment was installed was approved by the
designating body before January 1, 2001.
(c) A deduction under section 4.5(c) of this chapter is not allowed
with respect to new manufacturing equipment described in subsection
(b) in the first year the deduction is claimed or in subsequent years as
permitted by section 4.5(c) of this chapter to the extent the deduction
would cause the assessed value of all real property and personal
property of the owner in the taxing district to be less than the
incremental net assessed value for that year.
(d) The following apply for purposes of subsection (c):
(1) A deduction under section 4.5(c) of this chapter shall be
disallowed only with respect to new manufacturing equipment
installed after March 1, 2000.
(2) "Incremental net assessed value" means the sum of:
(A) the net assessed value of real property and depreciable
personal property from which property tax revenues are
required to be held in trust and pledged for the benefit of the
owners of bonds issued by the redevelopment commission of
a county described in subsection (b) under resolutions adopted
November 16, 1998, and July 13, 2000 (as amended
November 27, 2000); plus
(B) fifty-four million four hundred eighty-one thousand seven
hundred seventy dollars ($54,481,770).
(3) The assessed value of real property and personal property of
the owner shall be determined after the deductions provided by
sections 3 and 4.5 of this chapter.
(4) The personal property of the owner shall include inventory.
(5) The amount of deductions provided by section 4.5 of this
chapter with respect to new manufacturing equipment that was
installed on or before March 1, 2000, shall be increased from
thirty-three and one-third percent (33 1/3%) of true tax value to
one hundred percent (100%) of true tax value for assessment
dates after February 28, 2001.
(e) A deduction not fully allowed under subsection (c) in the first
year the deduction is claimed or in a subsequent year permitted by
section 4.5 of this chapter shall be carried over and allowed as a
deduction in succeeding years. A deduction that is carried over to a
year but is not allowed in that year under this subsection shall be
carried over and allowed as a deduction in succeeding years. The
following apply for purposes of this subsection:
(1) A deduction that is carried over to a succeeding year is not
allowed in that year to the extent that the deduction, together
with:
(A) deductions otherwise allowed under section 3 of this
chapter;
(B) deductions otherwise allowed under section 4.5 of this
chapter; and
(C) other deductions carried over to the year under this
subsection;
would cause the assessed value of all real property and personal
property of the owner in the taxing district to be less than the
incremental net assessed value for that year.
(2) Each time a deduction is carried over to a succeeding year, the
deduction shall be reduced by the amount of the deduction that
was allowed in the immediately preceding year.
(3) A deduction may not be carried over to a succeeding year
under this subsection if such year is after the period specified in
section 4.5(c) of this chapter or the period specified in a
resolution adopted by the designating body under section 4.5(g)
4.5(e) of this chapter.
SECTION 12. IC 6-1.1-12.1-4.8, AS AMENDED BY P.L.112-2012,
SECTION 28, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 4.8. (a) A property owner that is an applicant for
a deduction under this section must provide a statement of benefits to
the designating body.
(b) If the designating body requires information from the property
owner for the designating body's use in deciding whether to designate
an economic revitalization area, the property owner must 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
property owner must submit the completed statement of benefits form
to the designating body before the occupation of the eligible vacant
building for which the property owner desires to claim a deduction.
(c) 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 eligible vacant building that the property
owner or a tenant of the property owner will occupy.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the property
owner or the tenant as a result of the occupation of the eligible
vacant building, and an estimate of the annual salaries of those
individuals.
(3) Information regarding efforts by the owner or a previous
owner to sell, lease, or rent the eligible vacant building during the
period the eligible vacant building was unoccupied.
(4) Information regarding the amount for which the eligible
vacant building was offered for sale, lease, or rent by the owner
or a previous owner during the period the eligible vacant building
was unoccupied.
(d) With the approval of the designating body, the statement of
benefits may be incorporated in a designation application. A statement
of benefits is a public record that may be inspected and copied under
IC 5-14-3.
(e) The designating body must review the statement of benefits
required by subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether a deduction should be allowed, after the designating body
has made the following findings:
(1) 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 occupation of the
eligible vacant building.
may not be changed by using the procedure under subdivision (2).
(h) Except as provided in section 2(i)(5) of this chapter, and
subsection (k), and subject to section 15 of this chapter, the amount of
the deduction the property owner is entitled to receive under this
section for a particular year equals the product of:
(1) the assessed value of the building or part of the building that
is occupied by the property owner or a tenant of the property
owner; multiplied by
(2) the percentage set forth in the table in subsection (i).
determined by the designating body under section 17 of this
chapter.
(i) The percentage to be used in calculating the deduction under
subsection (h) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st
100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
(j) (i) The amount of the deduction determined under subsection (h)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If:
(A) a general reassessment of real property under IC 6-1.1-4-4;
or
(B) a reassessment under a county's reassessment plan
prepared under IC 6-1.1-4-4.2;
occurs within the period of the deduction, the amount of the
assessed value determined under subsection (h)(1) shall be
adjusted to reflect the percentage increase or decrease in assessed
valuation that resulted from the reassessment.
(2) If an appeal of an assessment is approved and results in a
reduction of the assessed value of the property, the amount of a
deduction under this section shall be adjusted to reflect the
percentage decrease that resulted from the appeal.
(k) The maximum amount of a deduction under this section may not
exceed the lesser of:
(1) the annual amount for which the eligible vacant building was
offered for lease or rent by the owner or a previous owner during
the period the eligible vacant building was unoccupied; or
(2) an amount, as determined by the designating body in its
discretion, that is equal to the annual amount for which similar
buildings in the county or contiguous counties were leased or
rented or offered for lease or rent during the period the eligible
vacant building was unoccupied.
(l) (j) The department of local government finance may adopt rules
under IC 4-22-2 to implement this section.
SECTION 13. IC 6-1.1-12.1-5, AS AMENDED BY P.L.146-2008,
SECTION 124, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: 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 or
county assessor.
(c) The deduction application required by this section must contain
the following information:
(1) The name of the property owner.
(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.
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.
(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.
(2) Any information concerning the cost of the property.
SECTION 15. IC 6-1.1-12.1-5.4, AS AMENDED BY P.L.146-2008,
SECTION 126, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: 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, or with the county assessor if there is no
township assessor for the township. 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 or county assessor shall forward to the county auditor a
copy of each certified deduction schedule filed under this subsection.
The township assessor shall forward to the county assessor a copy of
each certified deduction schedule filed with the township assessor
under this subsection.
(b) The deduction schedule required by this section must contain the
following information:
(1) The name of the owner of 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 notify the designating body, and
the designating body shall adopt a resolution under section 4.5(f)(2)
4.5(e)(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 if there is no
township assessor for the township, 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 or 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 or
county assessor. A township or 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 the new owner:
(1) continues to use the equipment in compliance with any
standards established under section 2(g) of this chapter; and
(2) 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 or county
assessor under subsection (e) to deny or alter the amount of the
deduction by requesting in writing a preliminary conference with the
township or county assessor not more than forty-five (45) days after the
township or 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.
SECTION 16. IC 6-1.1-12.1-5.6, AS AMENDED BY P.L.1-2006,
SECTION 134, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: 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. (a) 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) (b) 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.
(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) (c) The following information is confidential if filed under this
section:
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) 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) the county 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 6-1.1-22-8.1,
the county treasurer shall immediately mail the property owner a
revised statement that reflects the termination of the deduction.
(e) 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) If an appeal under subsection (e) 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.
under section 16 of this chapter before enhancing a deduction
under section 16 of this chapter.
(b) This section does not grant a designating body the authority to
exempt a person from filing a statement of benefits or exempt a
designating body from making findings of fact.
(c) A designating body may by resolution waive noncompliance
described under subsection (a) under the terms and conditions specified
in the resolution. Before adopting a waiver under this subsection, the
designating body shall conduct a public hearing on the waiver.
SECTION 19. IC 6-1.1-12.1-16 IS REPEALED [EFFECTIVE JULY
1, 2013]. Sec. 16. (a) This section applies to property that is the subject
of a deduction application filed after June 30, 2011, if:
(1) property that is the subject of a deduction application is an
eligible vacant building with at least fifty thousand (50,000)
square feet and, as a condition of obtaining the deduction, the
deduction applicant agrees to use the eligible vacant building for
industrial or commercial purposes;
(2) as a condition of obtaining a deduction under this chapter, the
deduction applicant agrees to invest at least ten million dollars
($10,000,000) in property that is eligible for a deduction under
this chapter;
(3) property that is the subject of a deduction application consists
of a proposed rehabilitation of property in a designated downtown
area; or
(4) the property that is the subject of a deduction application is or
will be located in a county in which:
(A) the average annualized unemployment rate in each of the
two (2) calendar years immediately preceding the current
calendar year exceeded the statewide average annualized
unemployment rate for each of the same calendar years by at
least two percent (2%); or
(B) the average annualized unemployment rate in the
immediately preceding calendar year was at least double the
statewide average annualized unemployment rate for the same
period;
as determined by the department of workforce development.
(b) A designating body may enhance under this section the
deduction schedule that would otherwise apply to tangible property
described in subsection (a) to provide a deduction equal to one hundred
percent (100%) of the gross assessed value of property for up to three
(3) consecutive years, beginning with the first year that the property is
eligible for a deduction under this chapter. If the deduction application
is for a deduction under section 4.8 of this chapter, the designating
body may extend under this section the maximum term of the
deduction from two (2) to three (3) years.
(c) A designating body may enhance the deduction as provided in
subsection (b) in the resolution designating the number of years to
which a deduction allowed under section 3, 4.5, or 4.8 of this chapter
applies. The designating body may grant an enhancement under the
terms and conditions specified in the resolution. Before adopting a
resolution under this subsection, the designating body shall conduct a
public hearing on the resolution. Notice of the public hearing shall be
published in accordance with IC 5-3-1. In addition, the designating
body shall notify each taxing unit within the taxing district where the
property is or will be located of the proposed resolution, including the
date and time of the public hearing. If a resolution is adopted under this
section, the designating body shall deliver a copy of the adopted
resolution to the:
(1) county auditor; and
(2) township assessor for the township where the property is
located or, if there is no township assessor, the county assessor;
within thirty (30) days after its adoption.
(d) A public hearing or resolution under this section may be
combined with any other public hearing or resolution required under
this chapter.
(e) For purposes of applying this section to property described in
subsection (a)(3), the fiscal body of a city or town may by ordinance
designate any part of:
(1) the central business district of a city or town; or
(2) any commercial or mixed use area within a neighborhood of
a city or town that has traditionally served, since the founding of
the community, as the retail service and communal focal point
within the community;
as a designated downtown area. The ordinance must include a
simplified description of the boundaries of the area by describing its
location in relation to public ways, streams, or otherwise. The fiscal
body may designate a maximum of fifteen percent (15%) of the total
geographic territory of the city or town as a designated downtown area.
A resolution adopted under subsection (c) concerning property
described in subsection (a)(3) must include a certified copy of the
ordinance adopted under this subsection.
SECTION 20. IC 6-1.1-12.1-17, AS ADDED BY P.L.173-2011,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 17. (a) A designating body may provide to a
business that is established in or relocated to a revitalization area and
that receives a deduction under section 4 or 4.5 of this chapter an
alternative abatement schedule based on the following factors:
(1) The total amount of the taxpayer's investment in real and
personal property.
(2) The number of new full-time equivalent jobs created.
(3) The average wage of the new employees compared to the state
minimum wage.
(4) The infrastructure requirements for the taxpayer's investment.
(b) This subsection applies to a statement of benefits approved
after June 30, 2013. A designating body shall establish an
abatement schedule for each deduction allowed under this chapter.
An alternative abatement schedule must specify the percentage amount
of the deduction for each year of the deduction. An alternative
abatement schedule may not exceed ten (10) years.
(c) An abatement schedule approved for a particular taxpayer
before July 1, 2013, remains in effect until the abatement schedule
expires under the terms of the resolution approving the taxpayer's
statement of benefits.
SECTION 21. IC 6-1.1-20.6-1.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 1.2. (a) This section applies
to credit determinations after 2013.
(b) As used in this chapter, "common areas" means any of the
following:
(1) Residential property improvements on real property on
which a building that includes two (2) or more dwelling units,
a mobile home, or a manufactured home is located, including
all roads, swimming pools, tennis courts, basketball courts,
playgrounds, carports, garages, other parking areas, gazebos,
decks, and patios.
(2) The land and all appurtenances to the land used in
connection with a building or structure described in
subdivision (1), including land that is outside the footprint of
the building, mobile home, manufactured home, or
improvement.
SECTION 22. IC 6-1.1-20.6-4, AS AMENDED BY P.L.131-2008,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 4. As used in this chapter, "residential
property" refers to real property that consists of any of the following:
(1) A single family dwelling that is not part of a homestead and
the land, not exceeding one (1) acre, on which the dwelling is
located.
(2) Real property that consists of:
(A) a building that includes two (2) or more dwelling units;
(B) any common areas shared by the dwelling units (including
any land that is a common area, as described in section
1.2(b)(2) of this chapter); and
(C) the land not exceeding the area of the building footprint,
on which the building is located.
(3) Land rented or leased for the placement of a manufactured
home or mobile home, including any common areas shared by the
manufactured homes or mobile homes.
SECTION 23. IC 6-1.1-26-5, AS AMENDED BY P.L.120-2012,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 5. (a) When a claim for refund filed under section
1 of this chapter is allowed either by the county board of
commissioners, the department of local government finance, the
Indiana board, or the Indiana tax court on appeal, the claimant is
entitled to a refund. The amount of the refund shall equal the amount
of the claim so allowed plus, with respect to claims for refund filed
after December 31, 2001, interest at the rate established for excess tax
payments by the commissioner of the department of state revenue
under IC 6-8.1-10-1 from the date on which the taxes were paid or
payable, whichever is later, to the date of the refund. The interest shall
be computed using the rate in effect for each particular year
covered by the refund. The county auditor shall, without an
appropriation being required, issue a warrant to the claimant payable
from the county general fund for the amount due the claimant under
this section.
(b) In the June or December settlement and apportionment of taxes,
or both the June and December settlement and apportionment of taxes,
immediately following a refund made under this section the county
auditor shall deduct the amount refunded from the gross tax collections
of the taxing units for which the refunded taxes were originally paid
and shall pay the amount so deducted into the general fund of the
county. However, the county auditor shall make the deductions and
payments required by this subsection not later than the December
settlement and apportionment.
SECTION 24. IC 6-1.1-37-9, AS AMENDED BY P.L.120-2012,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 9. (a) This section applies when:
(1) an assessment is made or increased after the date or dates on
which the taxes for the year for which the assessment is made
were originally due;
(2) the assessment upon which a taxpayer has been paying taxes
under IC 6-1.1-15-10(a)(1) or IC 6-1.1-15-10(a)(2) while a
petition for review or a judicial proceeding has been pending is
less than the assessment that results from the final determination
of the petition for review or judicial proceeding; or
(3) the collection of certain ad valorem property taxes has been
enjoined under IC 33-26-6-2, and under the final determination of
the petition for judicial review the taxpayer is liable for at least
part of those taxes.
(b) Except as provided in subsections (c) and (g), a taxpayer shall
pay interest on the taxes the taxpayer is required to pay as a result of an
action or a determination described in subsection (a) at the rate
established by the commissioner of the department of state revenue
under IC 6-8.1-10-1 from the original due date or dates for those taxes
to:
(1) the date of payment; or
(2) the date on which penalties for the late payment of a tax
installment may be charged under subsection (e) or (f);
whichever occurs first. The interest shall be computed using the rate
in effect for each particular year in which the interest accrued.
(c) Except as provided in subsection (g), a taxpayer shall pay
interest on the taxes the taxpayer is ultimately required to pay in excess
of the amount that the taxpayer is required to pay under
IC 6-1.1-15-10(a)(1) while a petition for review or a judicial
proceeding has been pending at the overpayment rate established under
Section 6621(c)(1) of the Internal Revenue Code in effect on the
original due date or dates for those taxes from the original due date or
dates for those taxes to:
(1) the date of payment; or
(2) the date on which penalties for the late payment of a tax
installment may be charged under subsection (e) or (f);
whichever occurs first.
(d) With respect to an action or determination described in
subsection (a), the taxpayer shall pay the taxes resulting from that
action or determination and the interest prescribed under subsection (b)
or (c) on or before:
(1) the next May 10; or
(2) the next November 10;
whichever occurs first.
(e) A taxpayer shall, to the extent that the penalty is not waived
under section 10.1 or 10.7 of this chapter, begin paying the penalty
prescribed in section 10 of this chapter on the day after the date for
payment prescribed in subsection (d) if:
(1) the taxpayer has not paid the amount of taxes resulting from
the action or determination; and
(2) the taxpayer either:
(A) received notice of the taxes the taxpayer is required to pay
as a result of the action or determination at least thirty (30)
days before the date for payment; or
(B) voluntarily signed and filed an assessment return for the
taxes.
(f) If subsection (e) does not apply, a taxpayer who has not paid the
amount of taxes resulting from the action or determination shall, to the
extent that the penalty is not waived under section 10.1 or 10.7 of this
chapter, begin paying the penalty prescribed in section 10 of this
chapter on:
(1) the next May 10 which follows the date for payment
prescribed in subsection (d); or
(2) the next November 10 which follows the date for payment
prescribed in subsection (d);
whichever occurs first.
(g) A taxpayer is not subject to the payment of interest on real
property assessments under subsection (b) or (c) if:
(1) an assessment is made or increased after the date or dates on
which the taxes for the year for which the assessment is made
were due;
(2) the assessment or the assessment increase is made as the result
of error or neglect by the assessor or by any other official
involved with the assessment of property or the collection of
property taxes; and
(3) the assessment:
(A) would have been made on the normal assessment date if
the error or neglect had not occurred; or
(B) increase would have been included in the assessment on
the normal annual assessment date if the error or neglect had
not occurred.
SECTION 25. IC 6-1.1-37-11, AS AMENDED BY SEA 85-2013,
SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 11. (a) If a taxpayer is entitled to a property tax
refund or credit because an assessment is decreased, the taxpayer shall
also be paid, or credited with, interest on the excess taxes that the
taxpayer paid at the rate of four percent (4%) per annum. established
for excess tax payments by the commissioner of the department of
state revenue under IC 6-8.1-10-1. However, in the case of an
assessment that is decreased by the Indiana board or the Indiana tax
court, the taxpayer is not entitled to the greater of five hundred dollars
($500) or twenty percent (20%) of the interest to which the taxpayer
would otherwise be entitled on the excess taxes unless the taxpayer
affirms, under penalty of perjury, that substantive evidence supporting
the taxpayer's position had been:
(1) presented by the taxpayer to the assessor before; or
(2) introduced by the taxpayer at;
the hearing held by the county property tax assessment board of
appeals. An appraisal may not be required by the county property tax
assessment board of appeals or the assessor in a proceeding before the
county property tax assessment board of appeals or in a preliminary
informal meeting under IC 6-1.1-15-1(h)(2).
(b) For purposes of this section and except as provided in subsection
(c), the interest shall be computed:
(1) from the date on which the taxes were paid or due, whichever
is later, to the date of the refund or credit; and
(2) using the rate in effect under IC 6-8.1-10-1 for each
particular year covered by the refund or credit.
If a taxpayer is sent a provisional tax statement and is later sent a final
or reconciling tax statement, interest shall be computed after the date
on which the taxes were paid or first due under the provisional tax
statement, whichever is later, through the date of the refund or credit.
(c) This subsection applies if a taxpayer who is entitled to a refund
or credit does not make a written request for the refund or credit to the
county auditor within forty-five (45) days after the final determination
of the county property tax assessment board of appeals, the state board
of tax commissioners, the department of local government finance, the
Indiana board, or the tax court that entitles the taxpayer to the refund
or credit. In the case of a taxpayer described in this subsection, the
interest shall be computed from the date on which the taxes were paid
or due to the date that is forty-five (45) days after the final
determination of the county property tax assessment board of appeals,
the state board of tax commissioners, the department of local
government finance, the Indiana board of tax review, or the Indiana tax
court. In any event, a property tax refund or credit must be issued not
later than ninety (90) days after the request is received.
SECTION 26. IC 6-1.1-43-1, AS AMENDED BY P.L.229-2005,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 1. This chapter applies to the following
economic development incentive programs:
(1) Grants and loans provided by the Indiana economic
development corporation under IC 5-28 or the office of tourism
development under IC 5-29.
(2) Incentives provided in an economic revitalization area under
IC 6-1.1-12.1.
(3) Incentives provided under IC 6-3.1-13.
(4) Incentives provided in an airport development zone under
IC 8-22-3.5-14.
SECTION 27. IC 6-1.1-44-7 IS REPEALED [EFFECTIVE
JANUARY 1, 2014]. Sec. 7. A taxpayer that obtains a credit under
IC 6-3.1-25.2 may not obtain a deduction under this chapter in a
taxable year.
SECTION 28. IC 6-2.5-4-5, AS AMENDED BY P.L.137-2012,
SECTION 46, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 5. (a) As used in this section, a "power
subsidiary" means a corporation which is owned or controlled by one
(1) or more public utilities that furnish or sell electrical energy, natural
or artificial gas, water, steam, or steam heat and which produces power
exclusively for the use of those public utilities.
(b) A power subsidiary or a person engaged as a public utility is a
retail merchant making a retail transaction when the subsidiary or
person furnishes or sells electrical energy, natural or artificial gas,
water, steam, or steam heating service to a person for commercial or
domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a person
engaged as a public utility is not a retail merchant making a retail
transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs,
services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, processing (after December
31, 2012), repairing (after December 31, 2012), refining,
recycling (as defined in IC 6-2.5-5-45.8), oil extraction, mineral
extraction, irrigation, agriculture, floriculture (after December 31,
2012), arboriculture (after December 31, 2012), or horticulture.
However, this exclusion for sales of the services and commodities
only applies if the services are consumed as an essential and
integral part of an integrated process that produces tangible
personal property and those sales are separately metered for the
excepted uses listed in this subdivision, or if those sales are not
separately metered but are predominately used by the purchaser
for the excepted uses listed in this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that:
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)), a
military base reuse area established under IC 36-7-30, the part
of an economic development area established under
IC 36-7-14.5-12.5 that is or formerly was a military base (as
defined in IC 36-7-30-1(c)), a military base recovery site
designated under IC 6-3.1-11.5, or a qualified military base
enhancement area established under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
SECTION 29. IC 6-2.5-5-40, AS ADDED BY P.L.193-2005,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 40. (a) As used in this chapter, section, "research
and development activities" does not include any of the following:
(1) Efficiency surveys.
(2) Management studies.
(3) Consumer surveys.
(4) Economic surveys.
(5) Advertising or promotions.
(6) Research in connection with literary, historical, or similar
projects.
(7) Testing for purposes of quality control.
(b) As used in this section, "research and development equipment"
means tangible personal property that:
(1) consists of or is a combination of:
(A) laboratory equipment;
(B) computers;
(C) computer software;
(D) telecommunications equipment; or
(E) testing equipment;
(2) has not previously been used in Indiana for any purpose; and
(3) is acquired by the purchaser for the purpose of research and
development activities devoted directly to experimental or
laboratory research and development for:
(A) new products;
(B) new uses of existing products; or
(C) improving or testing existing products.
(c) As used in this section, "research and development
property" means tangible personal property that:
(1) has not previously been used in Indiana for any purpose;
and
(2) is acquired by the purchaser for the purpose of research
and development activities devoted to experimental or
laboratory research and development for:
(A) new products;
(B) new uses of existing products; or
(C) improving or testing existing products.
(c) (d) A retail transaction:
(1) involving research and development equipment; and
(2) occurring after June 30, 2007, and before July 1, 2013;
is exempt from the state gross retail tax.
(e) A retail transaction:
(1) involving research and development property; and
(2) occurring after June 30, 2013;
is exempt from the state gross retail tax.
(f) The exemption provided by subsection (e) applies regardless
of whether the person that acquires the research and development
property is a manufacturer or seller of the new or existing
products specified in subsection (c)(2).
(g) For purposes of this section, a retail transaction shall be
considered as having occurred after June 30, 2013, to the extent
that delivery of the property constituting selling at retail is made
after that date to the purchaser or to the place of delivery
designated by the purchaser. However, a transaction shall be
considered as having occurred before July 1, 2013, to the extent
that the agreement of the parties to the transaction is entered into
before July 1, 2013, and payment for the property furnished in the
transaction is made before July 1, 2013, notwithstanding the
delivery of the property after June 30, 2013. This subsection
expires January 1, 2017.
SECTION 30. IC 6-2.5-5-46, AS ADDED BY P.L.153-2012,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 46. (a) For purposes of this section, "aircraft"
refers to an aircraft with a country of registration that is outside the
United States and is:
(1) certified by the Federal Aviation Administration as having a
minimum landing weight of at least five thousand (5,000) pounds;
or
(2) equipped with a turboprop or turbojet power plant.
(b) (a) Transactions involving tangible personal property (including
materials, parts, equipment, and engines) are exempt from the state
gross retail tax, if the property is:
(1) used;
(2) consumed; or
taxable year in which the corporation locates its operations in the
qualified area and to the next succeeding four (4) taxable years.
(c) In the case of a corporation that locates all or part of its
operations in a qualified military base enhancement area established
under IC 36-7-34-4(1), the tax rate imposed under this section applies
to the corporation only if the corporation meets at least one (1) of the
following criteria:
(1) The corporation is a participant in the technology transfer
program conducted by the qualified military base (as defined in
IC 36-7-34-3).
(2) The corporation is a United States Department of Defense
contractor.
(3) The corporation and the qualified military base have a
mutually beneficial relationship evidenced by a memorandum of
understanding between the corporation and the United States
Department of Defense.
(d) In the case of a business that uses the services or commodities
in a qualified military base enhancement area established under
IC 36-7-34-4(2), the business must satisfy at least one (1) of the
following criteria:
(1) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined in
IC 36-7-34-3).
(2) The business and the qualified military base have a mutually
beneficial relationship evidenced by a memorandum of
understanding between the business and the qualified military
base (as defined in IC 36-7-34-3).
(e) A taxpayer is not entitled to the tax rate described in subsection
(b) to the extent that the taxpayer substantially reduces or ceases its
operations at another location in Indiana in order to relocate its
operations within the qualified area, unless:
(1) the taxpayer had existing operations in the qualified area; and
(2) the operations relocated to the qualified area are an expansion
of the taxpayer's operations in the qualified area.
(f) A determination under subsection (e) that a taxpayer is not
entitled to the tax rate provided by this section as a result of a
substantial reduction or cessation of operations applies to the taxable
year in which the substantial reduction or cessation occurs and in all
subsequent years. Determinations under this section shall be made by
the department of state revenue.
(g) The department of state revenue:
(1) shall adopt rules under IC 4-22-2 to establish a procedure for
determining the part of a corporation's adjusted gross income that
was derived from sources within a qualified area; and
(2) may adopt other rules that the department considers necessary
for the implementation of this chapter.
SECTION 33. IC 6-3.1-1-3, AS AMENDED BY P.L.133-2012,
SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 3. A taxpayer (as defined in the following
laws), pass through entity (as defined in the following laws), or
shareholder, partner, or member of a pass through entity may not be
granted more than one (1) tax credit under the following laws for the
same project:
(1) IC 6-3.1-10 (enterprise zone investment cost credit).
(2) IC 6-3.1-11 (industrial recovery tax credit).
(3) IC 6-3.1-11.5 (military base recovery tax credit).
(4) IC 6-3.1-11.6 (military base investment cost credit).
(5) IC 6-3.1-13.5 (capital investment tax credit) (before its
expiration on January 1, 2020).
(6) (3) IC 6-3.1-19 (community revitalization enhancement
district tax credit).
(7) (4) IC 6-3.1-24 (venture capital investment tax credit).
(8) (5) IC 6-3.1-26 (Hoosier business investment tax credit).
(9) (6) IC 6-3.1-31.9 (Hoosier alternative fuel vehicle
manufacturer tax credit).
If a taxpayer, pass through entity, or shareholder, partner, or member
of a pass through entity has been granted more than one (1) tax credit
for the same project, the taxpayer, pass through entity, or shareholder,
partner, or member of a pass through entity must elect to apply only
one (1) of the tax credits in the manner and form prescribed by the
department.
SECTION 34. IC 6-3.1-11-1, AS AMENDED BY P.L.113-2011,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 1. As used in this chapter, "applicable percentage"
means the percentage determined as follows:
(1) If a plant that is located on an industrial recovery site was
placed in service at least fifteen (15) years ago but less than thirty
(30) years ago, the applicable percentage is fifteen percent (15%).
this chapter:
(1) The level of distress in the surrounding community caused by
the loss of jobs at the vacant industrial facility.
(2) The desirability of the intended use of the vacant industrial
facility under the plan proposed by the municipality or county and
the likelihood that the implementation of the plan will improve
the economic and employment conditions in the surrounding
community.
(3) (2) Evidence of support for the designation by residents,
businesses, and private organizations in the surrounding
community.
(4) (3) Evidence of a commitment by private or governmental
entities to provide financial assistance in implementing the plan
proposed by the municipality or county, including the application
of IC 36-7-12, IC 36-7-13, IC 36-7-14, or IC 36-7-15.1 to assist
in the financing of improvements or redevelopment activities
benefiting the vacant industrial facility.
(5) Evidence of efforts by the municipality or county to
implement the proposed plan without additional financial
assistance from the state.
(6) (4) Whether the industrial recovery site is within an economic
revitalization area designated under IC 6-1.1-12.1.
SECTION 41. IC 6-3.1-11-20 IS REPEALED [EFFECTIVE JULY
1, 2013]. Sec. 20. The board may provide that the industrial recovery
site designation is contingent on the development and use of the vacant
industrial facility in substantial compliance with the plan described in
the application submitted under section 18 of this chapter. The board
may revoke its approval of an industrial recovery site designation for
failure to comply with these conditions.
SECTION 42. IC 6-3.1-11-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 21. A taxpayer is not
entitled to claim the credit provided by this chapter to the extent that it
if the corporation determines that the taxpayer has substantially
reduces reduced or ceases ceased its operations in Indiana in order to
relocate them within the industrial recovery site. A determination that
a taxpayer is not entitled to the credit provided by this chapter as a
result of a substantial reduction or cessation of operations shall apply
applies to credits that would otherwise arise in the taxable year in
which the substantial reduction or cessation occurs and in all
subsequent years. Determinations under this section shall be made by
the board.
SECTION 43. IC 6-3.1-11-23 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 23. To receive the
credit provided by this chapter, a taxpayer must claim the credit on the
taxpayer's annual state tax return or returns in the manner prescribed
by the department of state revenue. The taxpayer shall submit to the
department of state revenue the certification of the board corporation
stating the percentage of credit allowable under this chapter and all
other information that the department determines is necessary for the
calculation of the credit provided by this chapter and for the
determination of whether an expenditure was for a qualified
investment.
SECTION 44. IC 6-3.1-11.5 IS REPEALED [EFFECTIVE
JANUARY 1, 2014]. (Military Base Recovery Tax Credit).
SECTION 45. IC 6-3.1-11.6 IS REPEALED [EFFECTIVE
JANUARY 1, 2014]. (Military Base Investment Cost Credit).
SECTION 46. IC 6-3.1-13.5 IS REPEALED [EFFECTIVE
JANUARY 1, 2014]. (Capital Investment Tax Credit).
SECTION 47. IC 6-3.1-24-9, AS AMENDED BY P.L.137-2012,
SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 9. (a) The total amount of tax credits that may be
allowed approved by the corporation under this chapter in a
particular calendar year for qualified investment capital provided
during that calendar year may not exceed twelve million five hundred
thousand dollars ($12,500,000). The Indiana economic development
corporation may not certify a proposed investment plan under section
12.5 of this chapter if the proposed investment would result in the total
amount of the tax credits certified for the calendar year exceeding
twelve million five hundred thousand dollars ($12,500,000). An
amount of an unused credit carried over by a taxpayer from a previous
calendar year may not be considered in determining the amount of
proposed investments that the Indiana economic development
corporation may certify under this chapter.
(b) Notwithstanding the other provisions of this chapter, a taxpayer
is not entitled to a credit for providing qualified investment capital to
a qualified Indiana business after December 31, 2016. However, this
subsection may not be construed to prevent a taxpayer from carrying
over to a taxable year beginning after December 31, 2016, an unused
tax credit attributable to an investment occurring before January 1,
2017.
SECTION 48. IC 6-3.1-25.2 IS REPEALED [EFFECTIVE
JANUARY 1, 2014]. (Coal Combustion Product Tax Credit).
SECTION 49. IC 6-3.1-26-1 IS REPEALED [EFFECTIVE JULY
1, 2013]. Sec. 1. As used in this chapter, "base state tax liability" means
a taxpayer's state tax liability in the taxable year immediately preceding
the taxable year in which a taxpayer makes a qualified investment.
SECTION 50. IC 6-3.1-26-4 IS REPEALED [EFFECTIVE JULY
1, 2013]. Sec. 4. As used in this chapter, "full-time employee" has the
meaning set forth in IC 6-3.1-13-4.
SECTION 51. IC 6-3.1-26-8, AS AMENDED BY P.L.137-2006,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 8. (a) As used in this chapter, "qualified
investment" means the amount of the taxpayer's expenditures in Indiana
for:
(1) the purchase of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, finishing, distribution, transportation, or
logistical distribution equipment;
(2) the purchase of new computers and related equipment;
(3) costs associated with the modernization of existing
telecommunications, production, manufacturing, fabrication,
assembly, extraction, mining, processing, refining, finishing,
distribution, transportation, or logistical distribution facilities;
(4) onsite infrastructure improvements;
(5) the construction of new telecommunications, production,
manufacturing, fabrication, assembly, extraction, mining,
processing, refining, finishing, distribution, transportation, or
logistical distribution facilities;
(6) costs associated with retooling existing machinery and
equipment;
(7) costs associated with the construction of special purpose
buildings and foundations for use in the computer, software,
biological sciences, or telecommunications industry; and
(8) costs associated with the purchase of machinery, equipment,
or special purpose buildings used to make motion pictures or
audio productions; and
(9) a logistics investment, as described in section 8.5 of this
chapter;
that are certified by the corporation under this chapter as being eligible
for the credit under this chapter.
(b) The term does not include property that can be readily moved
outside Indiana.
SECTION 52. IC 6-3.1-26-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 8.5. For purposes of this
chapter, a "logistics investment" means an expenditure for one (1)
or more of the following purposes:
(1) Making an improvement to real property located in
Indiana that is related to constructing a new, or modernizing
an existing, transportation or logistical distribution facility.
(2) Improving the transportation of goods on Indiana
highways, limited to the following:
(A) Upgrading terminal facilities that serve tractors (as
defined in IC 9-13-2-180) and semitrailers (as defined in
IC 9-13-2-164).
(B) Improving paved access to terminal facilities.
(C) Adding new maintenance areas.
(D) Purchasing new shop equipment having a useful life of
at least five (5) years, such as diagnostic equipment, oil
delivery systems, air compressors, and truck lifts.
(3) Improving the transportation of goods by rail, limited to
the following:
(A) Upgrading or building mainline, secondary, yard, and
spur trackage.
(B) Upgrading or replacing bridges to obtain higher load
bearing capability.
(C) Upgrading or replacing grade crossings to increase
visibility for motorists, including improvements to
roadway surfaces, signage and traffic signals, and signal
system upgrades and replacements to meet Federal
Railroad Administration Positive Train Control
regulations.
(D) Upgrading fueling facilities, including upgrading
fueling and sanding locomotives or tanks, pumps, piping,
containment areas, track pans, lighting, and security.
(E) Upgrading team track facilities, including railroad
owned warehouses, loading docks, and transfer stations for
loading and unloading freight.
(F) Upgrading shop facilities, including upgrading
structures, inspection pits, drop pits, cranes, employee fall
protection, lighting, climate control, and break rooms.
(4) Improving the transportation of goods by water, limited to
the following:
(A) Upgrading or replacing a permanent waterside dock.
(B) Upgrading or building a new terminal facility that
serves waterborne transportation.
(C) Improving paved access to a waterborne terminal
facility.
(D) Purchasing new equipment having a useful life of at
least five (5) years, including diagnostic equipment, an oil
delivery system, an air compressor, or a barge lift.
(5) Improving the transportation of goods by air, limited to
the following:
(A) Upgrading or building a new cargo building, apron,
hangar, warehouse facility, freight forwarding facility,
cross-dock distribution facility, or aircraft maintenance
facility.
(B) Improving paved access to a terminal or cargo facility.
(C) Upgrading a fueling facility.
(6) Improving warehousing and logistical capabilities, limited
to the following:
(A) Upgrading warehousing facilities, including upgrading
loading dock doors and loading dock plates, fueling
equipment, fueling installations, or dolly drop pads for
trailers.
(B) Improving logistical distribution by purchasing new
equipment, limited to the following:
(i) Picking modules (systems of racks, conveyors, and
controllers).
(ii) Racking equipment.
(iii) Warehouse management systems, including scanning
or coding equipment.
(iv) Security equipment.
(v) Temperature control and monitoring equipment.
(vi) Dock levelers and pallet levelers and inverters.
(vii) Conveyors and related controllers, scales, and like
equipment.
(viii) Packaging equipment.
(ix) Moving, separating, sorting, and picking equipment.
A logistics investment does not include an expenditure for
maintenance expenses.
SECTION 53. IC 6-3.1-26-14, AS AMENDED BY P.L.199-2005,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 14. The total amount of a tax credit claimed
for a taxable year under this chapter is a percentage determined by the
corporation, not to exceed:
(1) ten percent (10%), of the amount of a qualified investment
made by the taxpayer in Indiana during that taxable year, if the
qualified investment is not a logistics investment; and
(2) twenty-five percent (25%) of the amount of a qualified
investment made by the taxpayer in Indiana during that
taxable year, if the qualified investment is a logistics
investment. For purposes of this subdivision, the amount of a
qualified investment that is used to determine the credit is
limited to the difference of:
(A) the qualified investments made by the taxpayer during
the taxable year; minus
(B) one hundred five percent (105%) of the average annual
qualified investments made by the taxpayer during the two
(2) taxable years immediately preceding the taxable year
for which the credit is being claimed. However, if the total
of the qualified investments for the earlier year of the two
(2) year average is zero (0) and the taxpayer has not
claimed the credit for a year that precedes that year, the
taxpayer shall subtract only one hundred five percent
(105%) of the amount of the qualified investments made
during the taxable year immediately preceding the taxable
year for which the credit is being claimed.
The taxpayer may carry forward any unused credit as provided in
section 15 of this chapter.
SECTION 54. IC 6-3.1-26-15, AS AMENDED BY P.L.199-2005,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2014]: Sec. 15. (a) A taxpayer may carry forward an
unused credit for the number of years determined by the corporation,
not to exceed nine (9) consecutive taxable years, beginning with the
taxable year after the taxable year in which the taxpayer makes the
qualified investment.
(b) The amount that a taxpayer may carry forward to a particular
taxable year under this section equals the unused part of a credit
allowed under this chapter.
(c) A taxpayer may:
(1) claim a tax credit under this chapter for a qualified
investment; and
(2) carry forward a remainder for one (1) or more different
qualified investments;
in the same taxable year.
(d) The total amount of each tax credit claimed under this chapter
may not exceed ten percent (10%) of the qualified investment for
which the tax credit is claimed.
SECTION 55. IC 6-3.1-26-17, AS AMENDED BY P.L.4-2005,
SECTION 106, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 17. A person that proposes a
project to:
(1) create new jobs or increase wage levels in Indiana; or
(2) substantially enhance the logistics industry by creating
new jobs, preserving existing jobs that otherwise would be
lost, increasing wages in Indiana, or improving the overall
Indiana economy, in the case of a logistics investment being
claimed by the applicant;
may apply to the corporation before the taxpayer makes the qualified
investment to enter into an agreement for a tax credit under this
chapter. The director shall prescribe the form of the application.
SECTION 56. IC 6-3.1-26-18, AS AMENDED BY P.L.1-2006,
SECTION 143, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 18. After receipt of an
application, the corporation may enter into an agreement with the
applicant for a credit under this chapter if the corporation determines
that all the following conditions exist:
(1) The applicant's project will:
(A) raise the total earnings of employees of the applicant in
Indiana; or
(B) substantially enhance the logistics industry by creating
new jobs, preserving existing jobs that otherwise would be
lost, increasing wages in Indiana, or improving the overall
Indiana economy, in the case of a logistics investment being
claimed by the applicant.
(2) The applicant's project is economically sound and will benefit
the people of Indiana by increasing opportunities for employment
and strengthening the economy of Indiana.
(3) Receiving the tax credit is a major factor in the applicant's
decision to go forward with the project and not receiving the tax
credit will result in the applicant not raising the total earnings of
the applicant's employees in Indiana, or other employees in
Indiana in the case of a logistics investment being claimed by
the applicant.
(4) Awarding the tax credit will result in an overall positive fiscal
impact to the state, as certified by the budget agency using the
best available data.
(5) The credit is not prohibited by section 19 of this chapter.
(6) In the case of a qualified investment that is not being
claimed as a logistics investment by the applicant, the average
wage that will be paid by the taxpayer to its employees (excluding
highly compensated employees) at the location after the credit is
given will be at least equal to one hundred fifty percent (150%)
of the hourly minimum wage under IC 22-2-2-4 or its equivalent.
SECTION 57. IC 6-3.1-26-20, AS AMENDED BY P.L.4-2005,
SECTION 109, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 20. (a) The corporation shall
certify the amount of the qualified investment that is eligible for a
credit under this chapter. In determining the credit amount that should
be awarded, the corporation shall grant a credit only for the amount of
the qualified investment that is directly related to:
(1) expanding the workforce in Indiana; or
(2) substantially enhancing the logistics industry and
improving the overall Indiana economy.
(b) The total amount of credits that the corporation may
approve under this chapter for a state fiscal year for all taxpayers
for all qualified investments is:
(1) fifty million dollars ($50,000,000) for credits based on a
qualified investment that is not being claimed as a logistics
investment; and
(2) ten million dollars ($10,000,000) for credits based on a
qualified investment that is being claimed as a logistics
investment.
(c) A person that desires to claim a tax credit for a qualified
investment shall file with the department, in the form that the
department may prescribe, an application:
(1) stating separately the amount of the credit awards for
qualified investments that have been granted to the taxpayer
by the corporation that will be claimed as a credit that is
covered by:
(A) subsection (b)(1); and
(B) subsection (b)(2);
(2) stating separately the amount sought to be claimed as a
credit that is covered by:
(A) subsection (b)(1); and
(B) subsection (b)(2); and
(3) identifying whether the credit will be claimed during the
state fiscal year in which the application is filed or the
immediately succeeding state fiscal year.
(d) The department shall separately record the time of filing of
each application for a credit award for a qualified investment
covered by subsection (b)(1) and for a qualified investment covered
by subsection (b)(2) and shall, except as provided in subsection (e),
approve the credit to the taxpayer in the chronological order in
which the application is filed in the state fiscal year. The
department shall promptly notify an applicant whether, or the
extent to which, the tax credit is allowable in the state fiscal year
proposed by the taxpayer.
(e) If the total credit awards for qualified investments that are
covered by:
(1) subsection (b)(1); and
(2) subsection (b)(2);
including carryover credit awards covered by each subsection for
a previous state fiscal year, equal the maximum amount allowable
in the state fiscal year, an application for such a credit award that
is filed later for that same state fiscal year may not be granted by
the department. However, if an applicant for which a credit has
been awarded and applied for with the department fails to claim
the credit, an amount equal to the credit previously applied for but
not claimed may be allowed to the next eligible applicant or
applicants until the total amount has been allowed.
investment property that is the basis for the tax credit in Indiana
for at least the lesser of its useful life for federal income tax
purposes or ten (10) years.
(11) This subdivision applies only to a qualified investment
that is not being claimed as a logistics investment by the
applicant. A requirement that the taxpayer will maintain at the
location where the qualified investment is made during the term
of the tax credit a total payroll that is at least equal to the payroll
level that existed before the qualified investment was made.
(12) A requirement that the taxpayer shall provide written
notification to the director and the corporation not more than
thirty (30) days after the taxpayer makes or receives a proposal
that would transfer the taxpayer's state tax liability obligations to
a successor taxpayer.
(13) Any other performance conditions that the corporation
determines are appropriate.
SECTION 59. IC 6-3.1-26-25, AS AMENDED BY P.L.4-2005,
SECTION 113, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2014]: Sec. 25. (a) On a biennial basis,
the corporation shall provide for an evaluation of the tax credit
program. The evaluation must include an assessment of the
effectiveness of the program in creating new jobs and increasing wages
in Indiana and of the revenue impact of the program and may include
a review of the practices and experiences of other states with similar
programs. The director shall submit a report on the evaluation to the
governor, the president pro tempore of the senate, and the speaker of
the house of representatives after June 30 and before November 1 in
each odd-numbered year. The report provided to the president pro
tempore of the senate and the speaker of the house of representatives
must be in an electronic format under IC 5-14-6.
(b) The department shall report, not later than December 15
each year, to the budget committee concerning the use of the credit
for logistics investments under this chapter. The report must
include the following with regard to the previous state fiscal year
for logistics investments:
(1) Summary information regarding the taxpayers and the use
of the credit, including the amount of credits approved, the
number of taxpayers applying for the credit and claiming the
credit, the number of employees who are employed in Indiana
by the taxpayers claiming the credit, the amount and type of
new qualified expenditures for which the credit was granted,
the total dollar amount of new credits claimed and the
average amount of the credit claimed per taxpayer, the
amount of credits to be carried forward to a subsequent
taxable year, and the percentage of the total credits claimed
as compared to the total adjusted gross income of all the
taxpayers claiming the credit.
(2) The name and address of each taxpayer claiming the credit
and the amount of the credit applied for by and granted to
each taxpayer.
SECTION 60. IC 6-3.1-30-1, AS ADDED BY P.L.193-2005,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 1. As used in this chapter, "corporate
headquarters" means the building or buildings where one (1) or more
of the following are located:
(1) The principal offices of the principal executive officers of an
eligible business. are located.
(2) The principal offices of a division or similar subdivision of
an eligible business.
(3) A research and development center of an eligible business.
SECTION 61. IC 6-3.1-30-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 1.5. As used in this chapter,
"corporation" refers to the Indiana economic development
corporation created under IC 5-28-3 unless the context clearly
denotes otherwise.
SECTION 62. IC 6-3.1-30-2, AS AMENDED BY P.L.137-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 2. As used in this chapter, "eligible business"
means a business that:
(1) is engaged in either interstate or intrastate commerce;
(2) maintains a corporate headquarters at a location outside
Indiana;
(3) has not previously maintained a corporate headquarters at a
location in Indiana;
(4) had annual worldwide revenues of at least one hundred fifty
million dollars ($100,000,000) ($50,000,000) for the taxable year
immediately preceding the business's application for a tax credit
under section 12 of this chapter; and
(5) commits contractually to relocating its corporate headquarters
to Indiana.
SECTION 63. IC 6-3.1-30-7.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 7.5. The corporation shall do the
following:
(1) Evaluate a taxpayer's relocation project for the taxpayer's
eligibility for a tax credit under this chapter.
(2) Certify the eligibility of taxpayers that meet the
requirements for a tax credit under this chapter.
(3) Determine the percentage used to calculate the amount of
a tax credit under section 9 of this chapter.
(4) Certify the information required under section 12 of this
chapter.
SECTION 64. IC 6-3.1-30-8, AS AMENDED BY P.L.1-2007,
SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 8. (a) If the corporation certifies that a taxpayer:
that:
(1) is an eligible business;
(2) completes a qualifying project;
(3) incurs relocation costs; and
(4) employs at least seventy-five (75) employees in Indiana;
the taxpayer is entitled to a credit against the taxpayer's state tax
liability for the taxable year in which the relocation costs are incurred.
The credit allowed under this section is equal to the amount determined
under section 9 of this chapter.
(b) For purposes of establishing the employment level required by
subsection (a)(4), a taxpayer may include:
(1) individuals who:
(A) were employed in Indiana by the taxpayer before the
taxpayer commenced a qualifying project; and
(B) remain employed in Indiana after the completion of the
taxpayer's qualifying project; and
(2) individuals who:
(A) were not employed in Indiana by the taxpayer before the
taxpayer commenced a qualifying project; and
(B) are employed in Indiana by the taxpayer as a result of the
completion of the taxpayer's qualifying project.
representative appointed by a court, the state, a political
subdivision (as defined in IC 36-1-2-13), or any other entity, group,
or syndicate.
Sec. 5. As used in this chapter, "retailer" means a person that
engages in the business of selling or distributing aviation fuel to the
end user within Indiana.
Sec. 6. (a) Except as provided in section 7 of this chapter, an
excise tax of ten cents ($0.10) per gallon is imposed on the gross
retail income received by a retailer on each gallon of aviation fuel
purchased in Indiana. A retailer shall add the per gallon amount
of tax to the selling price of each gallon of aviation fuel sold by the
retailer so that the ultimate consumer bears the burden of the tax.
(b) For purposes of this chapter, the gross retail income received
by the retailer from the sale of aviation fuel does not include the
amount of any excise tax imposed upon the sale under federal law.
Sec. 7. The sale of aviation fuel is exempt from the aviation fuel
excise tax if the aviation fuel is placed into the fuel supply tank of
an aircraft owned by:
(1) the United States or an agency or instrumentality of the
United States;
(2) the state of Indiana;
(3) the Indiana Air National Guard; or
(4) a common carrier of passengers or freight.
Sec. 8. A person who makes a purchase in a transaction that is
exempt from the aviation fuel excise tax under section 7 of this
chapter may issue an exemption certificate to the retailer instead
of paying the tax. The person shall issue the certificate on forms
and in the manner prescribed by the department. A retailer
accepting a proper exemption certificate under this section has no
duty to collect or remit the aviation fuel excise tax on that
purchase.
Sec. 9. Except as provided in section 11 of this chapter, a retailer
shall remit the aviation fuel excise taxes imposed on transactions
that occurred during a particular calendar month to the
department before the sixteenth day of the following calendar
month.
Sec. 10. A retailer required to remit aviation fuel excise taxes
shall remit the taxes due by electronic funds transfer (as defined in
IC 4-8.1-2-7) before the date the tax is due under section 9 of this
chapter.
(repealed); the utility receipts and utility services use taxes (IC 6-2.3);
the state gross retail and use taxes (IC 6-2.5); the adjusted gross income
tax (IC 6-3); the supplemental net income tax (IC 6-3-8) (repealed); the
county adjusted gross income tax (IC 6-3.5-1.1); the county option
income tax (IC 6-3.5-6); the county economic development income tax
(IC 6-3.5-7); the auto rental excise tax (IC 6-6-9); the financial
institutions tax (IC 6-5.5); the gasoline tax (IC 6-6-1.1); the alternative
fuel permit fee (IC 6-6-2.1); the special fuel tax (IC 6-6-2.5); the motor
carrier fuel tax (IC 6-6-4.1); a motor fuel tax collected under a
reciprocal agreement under IC 6-8.1-3; the motor vehicle excise tax
(IC 6-6-5); the aviation fuel excise tax (IC 6-6-13); the commercial
vehicle excise tax (IC 6-6-5.5); the excise tax imposed on recreational
vehicles and truck campers (IC 6-6-5.1); the hazardous waste disposal
tax (IC 6-6-6.6); the cigarette tax (IC 6-7-1); the beer excise tax
(IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the wine excise tax
(IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5); the malt excise
tax (IC 7.1-4-5); the petroleum severance tax (IC 6-8-1); the various
innkeeper's taxes (IC 6-9); the various food and beverage taxes
(IC 6-9); the county admissions tax (IC 6-9-13 and IC 6-9-28); the
regional transportation improvement income tax (IC 8-24-17); the oil
inspection fee (IC 16-44-2); the emergency and hazardous chemical
inventory form fee (IC 6-6-10); the penalties assessed for oversize
vehicles (IC 9-20-3 and IC 9-30); the fees and penalties assessed for
overweight vehicles (IC 9-20-4 and IC 9-30); the underground storage
tank fee (IC 13-23); the solid waste management fee (IC 13-20-22);
and any other tax or fee that the department is required to collect or
administer.
SECTION 69. IC 6-8.1-9-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2015]: Sec. 4. (a) Every
individual (other than a nonresident) who files an individual income
tax return and who is entitled to a refund from the Indiana department
of state revenue because of the overpayment of income tax for a
taxable year may designate on his the individual's annual state income
tax return that either a specific amount or all of the refund to which he
the individual is entitled shall be paid over to one (1) or more of the
nongame fund. In the event that the individual designates that a certain
amount shall be paid over to the nongame fund and funds described
in subsection (c). If the refund to which he the individual is entitled
is less than the total amount designated such designation shall mean
that to be paid over to one (1) or more of the funds described in
subsection (c), all of the refund to which he the individual is entitled
shall be paid over to the nongame fund. designated funds, but in an
amount or amounts reduced proportionately for each designated
fund. If an individual designates all of the refund to which the
individual is entitled to be paid over to one (1) or more of the funds
described in subsection (c) without designating specific amounts,
the refund to which the individual is entitled shall be paid over to
each fund described in subsection (c) in an amount equal to the
refund divided by the number of funds described in subsection (c),
rounded to the lowest cent, with any part of the refund remaining
due to the effects of rounding to be deposited in the nongame fund.
(b) Every husband and wife (other than nonresidents) who file a
joint income tax return and who are entitled to a refund from the
Indiana department of state revenue because of the overpayment of
income tax for a taxable year may designate on their annual state
income tax return that either a specific amount or all of the refund to
which they are entitled shall be paid over to one (1) or more of the
nongame fund. In the event that the husband and wife designate that a
certain amount shall be paid over to the nongame fund and funds
described in subsection (c). If the refund to which they a husband
and wife are entitled is less than the total amount designated such
designation shall mean that to be paid over to one (1) or more of the
funds described in subsection (c), all of the refund to which they the
husband and wife are entitled shall be paid over to the nongame fund.
designated funds, but in an amount or amounts reduced
proportionately for each designated fund. If a husband and wife
designate all of the refund to which the husband and wife are
entitled to be paid over to one (1) or more of the funds described in
subsection (c) without designating specific amounts, the refund to
which the husband and wife are entitled shall be paid over to each
fund described in subsection (c) in an amount equal to the refund
divided by the number of funds described in subsection (c),
rounded to the lowest cent, with any part of the refund remaining
due to the effects of rounding to be deposited in the nongame fund.
(c) Designations under subsection (a) or (b) may be directed
only to the following funds:
(1) The nongame fund.
(2) The state general fund for exclusive use in funding public
education for kindergarten through grade 12.
(c) (d) The instructions for the preparation of individual income tax
returns shall contain a description of the purposes of the following:
(1) The nongame and endangered species program. which is The
description of this program shall be written in cooperation with
the department of natural resources.
(2) The funding of public education for kindergarten through
grade 12. The description of this purpose shall be written in
cooperation with the state superintendent of public
instruction.
(e) The department shall interpret a designation on a return
under subsection (a) or (b) that is illegible or otherwise not
reasonably discernible to the department as if the designation had
not been made.
SECTION 70. IC 8-22-3.5-14 IS REPEALED [EFFECTIVE
JANUARY 1, 2014]. Sec. 14. (a) This section applies only to an airport
development zone that is in a:
(1) city described in section 1(2) or 1(7) of this chapter; or
(2) county described in section 1(3), 1(4), or 1(6) of this chapter.
(b) Notwithstanding any other law, a business or an employee of a
business that is located in an airport development zone is entitled to the
benefits provided by the following statutes, as if the business were
located in an enterprise zone:
(1) IC 6-3-2-8.
(2) IC 6-3-3-10.
(3) IC 6-3.1-7.
(4) IC 6-3.1-9.
(5) IC 6-3.1-10-6.
(c) Before June 1 of each year, a business described in subsection
(b) must pay a fee equal to the amount of the fee that is required for
enterprise zone businesses under IC 5-28-15-5(a)(4)(A). However,
notwithstanding IC 5-28-15-5(a)(4)(A), the fee shall be paid into the
debt service fund established under section 9(e)(2) of this chapter. If
the commission determines that a business has failed to pay the fee
required by this subsection, the business is not eligible for any of the
benefits described in subsection (b).
(d) A business that receives any of the benefits described in
subsection (b) must use all of those benefits, except for the amount of
the fee required by subsection (c), for its property or employees in the
airport development zone and to assist the commission. If the
commission determines that a business has failed to use its benefits in
the manner required by this subsection, the business is not eligible for
any of the benefits described in subsection (b).
(e) If the commission determines that a business has failed to pay
the fee required by subsection (c) or has failed to use benefits in the
manner required by subsection (d), the commission shall provide
written notice of the determination to the department of state revenue,
the department of local government finance, and the county auditor.
SECTION 71. IC 36-1-8-5.1, AS AMENDED BY HEA 1145-2013,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 5.1. (a) A political subdivision may establish a
rainy day fund by the adoption of:
(1) an ordinance, in the case of a county, city, or town; or
(2) a resolution, in the case of any other political subdivision.
(b) An ordinance or a resolution adopted under this section must
specify the following:
(1) The purposes of the rainy day fund.
(2) The sources of funding for the rainy day fund, which may
include the following:
(A) Unused and unencumbered funds under:
(i) section 5 of this chapter;
(ii) IC 6-3.5-1.1-21.1;
(iii) IC 6-3.5-6-17.3; or
(iv) IC 6-3.5-7-17.3.
(B) Any other funding source:
(i) specified in the ordinance or resolution adopted under
this section; and
(ii) not otherwise prohibited by law.
(c) The rainy day fund is subject to the same appropriation process
as other funds that receive tax money.
(d) In any fiscal year, a political subdivision may, at any time, do the
following:
(1) Transfer any unused and unencumbered funds specified in
subsection (b)(2)(A) from any fiscal year to the rainy day fund.
(2) Transfer any other unobligated cash balances from any fiscal
year that are not otherwise identified in subsection (b)(2)(A) or
section 5 of this chapter to the rainy day fund as long as the
transfer satisfies the following requirements:
purchasing the real property; and
(3) filed a property tax exemption application for the real
property in June 2007.
(e) A qualified taxpayer may, before September 1, 2013, file a
property tax exemption application and supporting documents
claiming a property tax exemption under IC 6-1.1-10-16 and this
SECTION for the eligible property for the March 1, 2007, and
March 1, 2008, assessment dates.
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been timely filed.
(g) If a qualified taxpayer demonstrates in the property tax
exemption application filed under subsection (e) or by other means
that the eligible property would have qualified for an exemption
under IC 6-1.1-10-16 for the March 1, 2007, and March 1, 2008,
assessment dates if the property tax exemption application had
been filed under IC 6-1.1-11 in a timely manner for the March 1,
2007, and March 1, 2008, assessment dates and the taxpayer had
owned the real property on May 1, 2007:
(1) the property tax exemption for the eligible property shall
be allowed and granted for the March 1, 2007, and March 1,
2008, assessment dates by the county assessor and county
auditor of the county in which the eligible property is located;
(2) the qualified taxpayer is not required to pay any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2007, and March 1, 2008,
assessment dates; and
(3) to the extent the qualified taxpayer has paid any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2007, and March 1, 2008,
assessment dates, the eligible taxpayer is entitled to a refund
of the amounts paid.
The county auditor may pay the refund in two (2) equal
installments over a two (2) year period.
(h) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of the county in which the eligible property is located or by
the Indiana board of tax review.
(i) This SECTION expires July 1, 2017.
property for the March 1, 2011, and March 1, 2012,
assessment dates; and
(3) to the extent the qualified taxpayer has paid any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2011, and March 1, 2012,
assessment dates, the eligible taxpayer is entitled to a refund
of the amounts paid.
The county auditor may pay the refund in two (2) equal
installments over a two (2) year period.
(h) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of Marion County or by the Indiana board of tax review.
(i) This SECTION expires July 1, 2017.
SECTION 75. [EFFECTIVE UPON PASSAGE] (a) This
SECTION applies notwithstanding IC 6-1.1-10, IC 6-1.1-11, or any
other law or administrative rule or provision.
(b) This SECTION applies to the March 1, 2011, and March 1,
2012, assessment dates.
(c) As used in this SECTION, "eligible property" means a
vacant parcel of real property in Marion County that is owned, is
occupied, and will be used for educational, literary, scientific,
religious, or charitable purposes described in IC 6-1.1-10-16.
(d) As used in this SECTION, "qualified taxpayer" refers to a
ministry that:
(1) is exempt from federal income taxes;
(2) owns an eligible property;
(3) acquired the eligible property after the 2012 assessment
date; and
(4) redeemed the eligible property after it was sold for
delinquent taxes in 2012.
(e) A qualified taxpayer may, before September 1, 2013, file a
property tax exemption application and supporting documents
claiming a property tax exemption under IC 6-1.1-10-16 and this
SECTION for the eligible property for the March 1, 2012,
assessment date.
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been timely filed.
(g) If a qualified taxpayer demonstrates in the property tax
exemption application filed under subsection (e) or by other means
that the eligible property would have qualified for an exemption
under IC 6-1.1-10-16 for the March 1, 2012, assessment date if the
property tax exemption application had been filed under
IC 6-1.1-11 in a timely manner for the March 1, 2012, assessment
date:
(1) the property tax exemption for the eligible property shall
be allowed and granted for the March 1, 2012, assessment
date by the county assessor and county auditor of Marion
County; and
(2) the qualified taxpayer is not required to pay any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2012, assessment date.
(h) To the extent the qualified taxpayer has:
(1) paid any property taxes, penalties, or interest with respect
to the eligible property for the March 1, 2011, assessment
date; or
(2) paid to redeem the property under IC 6-1.1-24 and
IC 6-1.1-25;
the eligible taxpayer is entitled to a refund of the amounts paid.
Notwithstanding the filing deadlines for a claim in IC 6-1.1-26, any
claim for a refund filed by an eligible taxpayer under this
subsection before September 1, 2013, is considered timely filed.
The county auditor may make a determination that any refund due
under this SECTION shall be paid in two (2) equal annual
installments.
(i) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of Marion County or by the Indiana board of tax review.
(j) This SECTION expires July 1, 2017.
SECTION 76. [EFFECTIVE UPON PASSAGE] (a) This
SECTION applies notwithstanding IC 6-1.1-10, IC 6-1.1-11, or any
other law or administrative rule or provision.
(b) This SECTION applies to the March 1, 2012, and March 1,
2013, assessment dates.
(c) As used in this SECTION, "eligible property" means real
property in Grant County that is:
(1) a national historic landmark; and
(2) owned, occupied, and used for educational, literary,
scientific, religious, or charitable purposes described in
IC 6-1.1-10-16.
(d) As used in this SECTION, "qualified taxpayer" refers to a
charitable organization that:
(1) is exempt from federal income taxes;
(2) owns an eligible property; and
(3) acquired the eligible property after the 2011 assessment
date.
(e) A qualified taxpayer may, before September 1, 2013, file a
property tax exemption application and supporting documents
claiming a property tax exemption under IC 6-1.1-10-16 and this
SECTION for the eligible property for the March 1, 2012, and
March 1, 2013, assessment dates.
(f) A property tax exemption application filed under subsection
(e) by a qualified taxpayer is considered to have been timely filed.
(g) If a qualified taxpayer demonstrates in the property tax
exemption application filed under subsection (e) or by other means
that the eligible property would have qualified for an exemption
under IC 6-1.1-10-16 for the March 1, 2012, and March 1, 2013,
assessment dates if the property tax exemption application had
been filed under IC 6-1.1-11 in a timely manner for the March 1,
2012, assessment date:
(1) the property tax exemption for the eligible property shall
be allowed and granted for the March 1, 2012, and March 1,
2013, assessment dates by the county assessor and county
auditor of Grant County; and
(2) the qualified taxpayer is not required to pay any property
taxes, penalties, or interest with respect to the eligible
property for the March 1, 2012, and March 1, 2013,
assessment dates.
(h) The exemption allowed by this SECTION shall be applied
without need of any further ruling or action by the county assessor,
the county auditor, or the county property tax assessment board of
appeals of Grant County or by the Indiana board of tax review.
The county auditor may make a determination that any refund due
under this SECTION shall be paid in two (2) equal annual
installments.
(i) This SECTION expires July 1, 2017.