Second Regular Session 111th General Assembly (2000)
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HOUSE ENROLLED ACT No. 1231
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 36-7-31.3-1; (00)HE1231.1.1. -->
SECTION 1. IC 36-7-31.3-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 1. This chapter applies
only to:
(1) a city; or
(2) a county without a consolidated city; or
(3) a school corporation located in a county without a
consolidated city;
that has a professional sports franchise playing the majority of its home
games in a facility owned by the city, the county, a the school
corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or
IC 36-10-11.
SOURCE: IC 36-7-31.3-4; (00)HE1231.1.2. -->
SECTION 2. IC 36-7-31.3-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 4. As used in this
chapter, "covered taxes" means the portion of the following taxes that
is attributable to the operation of a qualified facility:
(1) The state gross retail tax imposed under IC 6-2.5-2-1 or use
tax imposed under IC 6-2.5-3-2.
(2) An adjusted gross income tax imposed under IC 6-3-2-1 on an
individual.
(3) A county option income tax imposed under IC 6-3.5.
(4) a food and beverage tax imposed under IC 6-9.
SOURCE: IC 36-7-31.3-8; (00)HE1231.1.3. -->
SECTION 3. IC 36-7-31.3-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 8. (a) A city or county
legislative body or the governing body of a school corporation may
establish include as part of a professional sports and convention
development area any facility that is:
(1) owned by the city, the county, a school corporation, or a board
under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and
used by a professional sports franchise for practice or
competitive sporting events; or
(2) owned by the city, the county, or a board under IC 36-9-13,
IC 36-10-8, IC 36-10-10, or IC 36-10-11 and is one (1) of the
following:
(A) A facility used principally for convention or tourism
related events serving national or regional markets.
(B) An airport.
(C) A museum.
(D) A zoo.
(E) A facility used for public attractions of national
significance.
(F) One (1) facility in the county that is a performing arts
venue.
(G) A county courthouse registered on the National
Register of Historical Places.
A facility may not include a private golf course or related
improvements. A tax area that is not located in a city having a
population of more than one hundred fifty thousand (150,000) but
less than five hundred thousand (500,000) must include at least one
(1) facility described in subdivision (1). The tax area may include
only facilities described in this section and any parcel of land on which
the facility is located. An area may contain noncontiguous tracts of land
within the city, or county, or school corporation.
(b) The tax area may contain facilities not owned by the
designating body, if:
(1) the facility is owned by a city, the county, or a board
established under IC 36-10-8, IC 36-10-10, or IC 36-10-11;
and
(2) an agreement exists specifying the distribution and uses of
the covered taxes to be allocated under this chapter.
SOURCE: IC 36-7-31.3-9; (00)HE1231.1.4. -->
SECTION 4. IC 36-7-31.3-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 9. (a) A tax area must
be initially established by resolution before July 1,
1999, 2001,
according to the procedures set forth for the establishment of an
economic development area under IC 36-7-14.
However, a school
corporation that owns a qualifying facility may establish an area.
A tax area may be changed or the terms governing the tax area revised
in the same manner as the establishment of the initial tax area.
(b) In establishing the tax area, the city or county legislative body
or the governing body of a school corporation must make the
following findings instead of the findings required for the
establishment of economic development areas:
(1) There is a capital improvement that will be undertaken or has
been undertaken in the tax area for a facility that is used:
(A) by a professional sports franchise; or
(B) for convention or tourism related events.
(2) The capital improvement that will be undertaken or that has
been undertaken in the tax area will benefit the public health and
welfare and will be of public utility and benefit.
(3) The capital improvement that will be undertaken or that has
been undertaken in the tax area will protect or increase state and
local tax bases and tax revenues.
(c) The tax area established under this chapter is a special taxing
district authorized by the general assembly to enable the county
designating body to provide special benefits to taxpayers in the tax
area by promoting economic development that is of public use and
benefit. Only one (1) area may be created in each county.
SOURCE: IC 36-7-31.3-10; (00)HE1231.1.5. -->
SECTION 5. IC 36-7-31.3-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 10. (a) A tax area must
be established by resolution. A resolution establishing a tax area must
provide for the allocation of covered taxes attributable to a taxable
event or covered taxes earned in the tax area to the professional sports
and convention development area fund established for the city,
or
county,
or school corporation. The allocation provision must apply to
the entire tax area. The resolution must provide the tax area terminates
not later than December 31, 2027.
(b) In addition to subsection (a), all of the salary, wages, bonuses,
and other compensation that are:
(1) paid during a taxable year to a professional athlete for
professional athletic services;
(2) taxable in Indiana; and
(3) earned in the tax area;
shall be allocated to the tax area if the professional athlete is a member
of a team that plays the majority of the professional athletic events that
the team plays in Indiana in the tax area.
(c) The total amount of state revenue captured by the tax area may
not exceed five dollars ($5) per resident of the city,
or county,
or
school corporation, per year for twenty (20) consecutive years.
(d) The resolution establishing the tax area must designate the
facility or proposed facility and the facility site for which the tax area
is established.
(e) The department may adopt rules under IC 4-22-2 and guidelines
to govern the allocation of covered taxes to a tax area.
SOURCE: IC 36-7-31.3-11; (00)HE1231.1.6. -->
SECTION 6. IC 36-7-31.3-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 11. Upon adoption of
a resolution establishing a tax area under section 10 of this chapter, the
city or county legislative body or school corporation governing body
shall submit the resolution to the budget committee for review and
recommendation to the budget agency.
SOURCE: IC 36-7-31.3-13; (00)HE1231.1.7. -->
SECTION 7. IC 36-7-31.3-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 13. When the city or
county legislative body or school corporation governing body adopts
an allocation provision, the county auditor shall notify the department
by certified mail of the adoption of the provision and shall include with
the notification a complete list of the following:
(1) Employers in the tax area.
(2) Street names and the range of street numbers of each street in
the tax area.
The county auditor shall update the list before July 1 of each year.
SOURCE: IC 36-7-31.3-17; (00)HE1231.1.8. -->
SECTION 8. IC 36-7-31.3-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 17. The department
shall notify the county auditor of the amount of taxes to be distributed
to the county treasurer. For tax areas covered by section 8(b) of this
chapter, the department shall notify the county auditor of the
amount of taxes to be distributed to each participant in the
agreement specifying the distribution and uses of covered taxes to
be allocated under this chapter.
SOURCE: IC 36-7-31.3-19; (00)HE1231.1.9. -->
SECTION 9. IC 36-7-31.3-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 19. The resolution
establishing the tax area must designate the use of the funds. The funds
are to be used only for:
(1) a capital improvement that will construct or equip a facility:
(A) owned by the city, the county, a school corporation, or a
board under
IC 36-9-13, IC 36-10-8, IC 36-10-10, or
IC 36-10-11 and used by a professional sports franchise; or
(B) owned by the city, the county, or a board under
IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used
for convention and tourism related events; or
(2) the financing or refinancing of a capital improvement
described in subdivision (1) or the payment of lease payments for
a capital improvement described in subdivision (1).
SOURCE: IC 36-7-31.3-20; (00)HE1231.1.10. -->
SECTION 10. IC 36-7-31.3-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 20. The city or county
legislative body
or school corporation governing body shall repay to
the professional sports development area fund any amount that is
distributed to the city or county legislative body
or school corporation
governing body and used for:
(1) a purpose that is not described in this chapter; or
(2) a facility or facility site other than the facility and facility site
to which covered taxes are designated under the resolution
described in section 10 of this chapter.
The department shall distribute the covered taxes repaid to the
professional sports development area fund under this section
proportionately to the funds and the political subdivisions that would
have received the covered taxes if the covered taxes had not been
allocated to the tax area under this chapter.
HEA 1231
Figure
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