YES:
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred House Bill 1004 ,
has had the same under consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
Replace the effective date in SECTION 13 with "[EFFECTIVE
MAY 1, 2002]".
Replace the effective date in SECTION 14 with "[EFFECTIVE
MAY 1, 2002]".
Replace the effective date in SECTION 15 with "[EFFECTIVE
JUNE 1, 2002]".
Replace the effective date in SECTION 16 with "[EFFECTIVE
MAY 1, 2002]".
Replace the effective date in SECTION 17 with "[EFFECTIVE
MAY 1, 2002]".
research fund is established for the purpose of providing money for the
center for value added research and the commissioner of agriculture to
carry out the duties specified under this chapter. The fund shall be
administered by the commissioner of agriculture.
(b) The fund consists of money appropriated by the general
assembly.
(c) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
(d) Money in the fund at the end of a state fiscal year does not revert
to the state general fund.
(e) There is annually appropriated to the value added research
fund one million dollars ($1,000,000) from the state general fund
for carrying out the purposes of this section.
quorum for the transaction of business at a meeting of the advisory
board. The affirmative vote of at least five (5) voting members is
necessary for the advisory board to take action.
assistance to wards program under IC 12-13-8 (repealed);
(B) assumption of county contributions to the children with
special health care needs program under IC 16-35-3
(repealed);
(C) assumption of county contributions to the hospital care
for the indigent program or the uninsured parent program
required under IC 12-16-14 (repealed); and
(D) assumption of fifty percent (50%) of the county
obligation for child services (as defined in IC 12-19-7-1);
when economic conditions result in lowered collections of
general tax revenues as determined by the budget agency
under section 14 of this chapter; and
(3) assist allocation areas under IC 6-1.1-21.2.
(c) The tax relief fund shall be administered by the treasurer of
state.
(d) The treasurer of state shall invest the money in the tax relief
fund not currently needed to meet the obligations of the fund in the
same manner as other public money may be invested. Interest that
accrues from these investments shall be deposited in the tax relief
fund.
(e) Money in the tax relief fund at the end of a state fiscal year
does not revert to the state general fund.
Sec. 10. (a) The tuition support stabilization fund is established.
(b) The purpose of the tuition support stabilization fund is to
provide a source of money to maintain tuition support distributions
from the state to school corporations when economic conditions
result in lowered collections of general tax revenues as determined
by the budget agency under section 15 of this chapter.
(c) The tuition support stabilization fund shall be administered
by the treasurer of state.
(d) The treasurer of state shall invest the money in the tuition
support stabilization fund not currently needed to meet the
obligations of the fund in the same manner as other public money
may be invested. Interest that accrues from these investments shall
be deposited in the tuition support stabilization fund.
(e) Money in the tuition support stabilization fund at the end of
a state fiscal year does not revert to the state general fund.
Sec. 11. (a) At the same time that the budget director makes a
determination under IC 4-10-18-5 (determination of
appropriations to or from the countercyclical revenue and
economic stabilization fund), the budget director shall determine
the unused 21st century tax plan balance for the immediately
preceding year under this section.
(b) The unused 21st century tax plan balance for a state fiscal
year is the amount determined under the last STEP of the
following formula:
STEP ONE: Calculate the net amount of additional state
general fund revenue accruing to the state general fund in the
immediately preceding state fiscal year as a result of:
(A) the enactment of a business franchise tax (IC 6-2.2);
(B) reduction of the property tax replacement credit
(IC 6-1.1-21);
(C) the increase in the adjusted gross income tax rates
(IC 6-3-1 through IC 6-3-7) for persons after offsetting the
impact of the increased renter's deduction (IC 6-3-2-6) and
the earned income credit (IC 6-3.1-21);
(D) the increase in the adjusted gross income tax rate on
corporations (IC 6-3-1 through IC 6-3-7) after offsetting
the impact on state tax liability of the establishment of the
business personal property credit (IC 6-3.1-23.8) and
investment credit (IC 6-3.1-24) and increasing the research
expense credit (IC 6-3.1-4);
(E) the increase in the state gross retail and use taxes
(IC 6-2.5);
(F) the elimination of the gross income tax (IC 6-2.1) for
taxpayers other than public utility companies); and
(G) the elimination of the supplemental net income tax
(IC 6-3-8);
enacted by the general assembly in 2002.
STEP TWO: Calculate the amount of additional expenses
incurred by the state in the immediately preceding state fiscal
year as a result of the:
(A) assumption of county contributions to the medical
assistance to wards program under IC 12-13-8 (repealed);
(B) assumption of county contributions to the children with
special health care needs program under IC 16-35-3
(repealed);
(C) assumption of county contributions to the hospital care
for the indigent program or the uninsured parent program
required under IC 12-16-14 (repealed);
(D) assumption of fifty percent (50%) of the county
obligation for child services (as defined in IC 12-19-7-1);
(E) assumption of the obligation to provide additional state
tuition support to replace the fifty percent (50%) reduction
in school general fund property tax levies (IC 6-1.1-19;
IC 21-3-1.7); and
(F) increased homestead credit (IC 6-1.1-20.9);
enacted by the general assembly in 2002.
STEP THREE: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP ONE amount minus the STEP
TWO amount.
Sec. 12. As soon as possible after making the determination
under section 11 of this chapter, the budget director shall certify
the unused 21st century tax plan balance amount determined
under section 11 of this chapter to the treasurer of state.
Sec. 13. If the unused 21st century tax plan balance amount
certified under section 12 of this chapter is greater than zero (0),
the treasurer of state shall transfer the following amounts from the
state general fund:
(1) Fifty percent (50%) of the unused 21st century tax plan
balance to the tax relief fund.
(2) Fifty percent (50%) of the unused 21st century tax plan
balance to the tuition support stabilization fund.
Sec. 14. An amount of money in the tax relief fund determined
by the budget director may be used to meet the state's obligations
to:
(1) maintain homestead credit distributions from the state to
political subdivisions when economic conditions result in
lowered collections of general tax revenues as determined by
the budget agency under section 14 of this chapter if the
budget director determines that general fund revenues being
collected in the state fiscal year are insufficient to meet the
state's obligations for the distributions described in this
subdivision;
(2) provide a source of money to meet the following
obligations assumed by the state:
(A) assumption of county contributions to the medical
assistance to wards program under IC 12-13-8 (repealed);
(B) assumption of county contributions to the children with
special health care needs program under IC 16-35-3
(repealed);
(C) assumption of county contributions to the hospital care
for the indigent program or the uninsured parent program
required under IC 12-16-14 (repealed);
(D) assumption of fifty percent (50%) of the county
obligation for child services (as defined in IC 12-19-7-1);
when economic conditions result in lowered collections of
general tax revenues as determined by the budget agency
under section 14 of this chapter if the budget director
determines that general fund revenues being collected in the
state fiscal year are insufficient to meet the state's obligations
for the distributions described in this subdivision; and
(3) subject to section 15 of this chapter, assist allocation areas
under IC 6-1.1-21.2, if the department of local government
finance orders a distribution from the tax relief fund under
IC 6-1.1-21.2.
Sec. 15. (a) Money in the tax relief fund, after making any
distributions necessary under section 14 of this chapter, is available
to make the distributions to allocation areas (as defined in
IC 6-1.1-21.2-2) approved by the department of local government
finance under IC 6-1.1-21.2 (distribution of tax increment
replacement amounts).
(b) The budget director shall make distributions under this
section in conformity with the schedule determined by the
department of local government finance.
(c) If in any state fiscal year insufficient money is available in
the tax relief fund to make all of the distributions approved under
IC 6-1.1-21.2 for a state fiscal year, the budget director shall
proportionately reduce the total distribution made to each
allocation area in the state fiscal year. The reduced amount is equal
to the amount approved for distribution to the allocation area
multiplied by a fraction. The numerator is the amount available for
distribution to allocation areas (as defined in IC 6-1.1-21.2-2). The
denominator is the amount approved for distribution to allocation
areas (as defined in IC 6-1.1-21.2-2) under IC 6-1.1-21.2. The
budget director may reduce or delay any scheduled distribution to
comply with this subsection.
Sec. 16. An amount of money in the tuition support stabilization
fund determined by the budget director may be used to meet the
state's obligations for tuition support distributions to school
corporations in a state fiscal year if the budget director determines
that general fund revenues being collected in the state fiscal year
are insufficient to meet the state's obligations for tuition support.
crop enterprises.
(6) Administrative and planning services for local communities
and economic development entities that suffer a negative impact
from the loss of tobacco production.
(7) Establishment and operation of a regional economic
development consortium to address common problems faced by
local communities that suffer a negative impact from the loss of
tobacco production.
(b) Expenditures from the fund are subject to appropriation by the
general assembly and approval by the commissioner of agriculture. The
commissioner of agriculture may not approve an expenditure from the
fund unless that expenditure has been recommended by the advisory
board established by section 4 of this chapter.
Development Council.
(F) One (1) person representing the Southern Indiana Rural
Development Project.
(G) One (1) person representing agricultural programs at
universities located in Indiana.
The members of the advisory board listed in subdivisions (1) through
(3) are nonvoting members. The members of the advisory board listed
in subdivision (4) are voting members.
(c) The term of office of a legislative member of the advisory board
is four (4) years. However, a legislative member of the advisory board
ceases to be a member of the advisory board if the member:
(1) is no longer a member of the chamber from which the member
was appointed; or
(2) is removed from the advisory board under subsection (d).
(d) A legislative member of the advisory board may be removed at
any time by the appointing authority who appointed the legislative
member.
(e) The term of office of a member of the advisory board appointed
under subsection (a)(4) is four (4) years. However, these members
serve at the pleasure of the governor and may be removed for any
reason.
(f) If a vacancy exists on the advisory board with respect to a
legislative member or the members appointed under subsection (a)(4),
the appointing authority who appointed the former member whose
position has become vacant shall appoint an individual to fill the
vacancy for the balance of the unexpired term.
(g) Five (5) voting members of the advisory board constitute a
quorum for the transaction of business at a meeting of the advisory
board. The affirmative vote of at least five (5) voting members of the
advisory board is necessary for the advisory board to take action.
(h) Each member of the advisory board who is not a state employee
is not entitled to the minimum salary per diem provided by
IC 4-10-11-2.1(b). The member is, however, entitled to reimbursement
for traveling expenses as provided under IC 4-13-1-4 and other
expenses actually incurred in connection with the member's duties as
provided in the state policies and procedures established by the Indiana
department of administration and approved by the budget agency.
(i) Each member of the advisory board who is a state employee but
who is not a member of the general assembly is entitled to
reimbursement for traveling expenses as provided under IC 4-13-1-4
and other expenses actually incurred in connection with the member's
duties as provided in the state policies and procedures established by
the Indiana department of administration and approved by the budget
agency.
(j) Each member of the advisory board who is a member of the
general assembly is entitled to receive the same per diem, mileage, and
travel allowances paid to legislative members of interim study
committees established by the legislative council. Per diem, mileage,
and travel allowances paid under this subsection shall be paid from
appropriations made to the legislative council or the legislative services
agency.
(k) Payments authorized for members of the advisory board under
subsections (h) through (i) are payable from the tobacco farmers and
rural community impact fund.
shall be transferred from the master settlement agreement to
the Phase II payment program.
(c) This section expires January 1, 2010.".
from the employee's supervisor or appointing authority shall be
granted leave from work without pay for not more than one (1)
work day per month.
(b) The leave permitted under this chapter does not accrue to
the employee if the leave is unused during the month for which it
is allowed.
(c) An employee granted leave under this chapter does not lose
accrued:
(1) seniority;
(2) vacation leave;
(3) sick leave;
(4) personal vacation days;
(5) compensatory time off; or
(6) overtime.
JULY 1, 2002]: Sec. 6. (a) The department shall place in the state
general fund the tax revenue collected under this chapter.
(b) Except as provided by subsection (c) and IC 6-3.1-20-7, the
treasurer of state shall quarterly monthly pay the following amounts:
(1) One dollar ($1) of the admissions tax collected by the licensed
owner for each person embarking on a riverboat during the
quarter shall be paid to:
(A) the city in which the riverboat is docked, if the city:
(i) is described in IC 4-33-6-1(a)(1) through
IC 4-33-6-1(a)(4) or in IC 4-33-6-1(b); or
(ii) is contiguous to the Ohio River and is the largest city in
the county; and
(B) the county in which the riverboat is docked, if the
riverboat is not docked in a city described in clause (A).
(2) One dollar ($1) of the admissions tax collected by the licensed
owner for each person embarking on a riverboat during the
quarter shall be paid to the county in which the riverboat is
docked. In the case of a county described in subdivision (1)(B),
this one dollar ($1) is in addition to the one dollar ($1) received
under subdivision (1)(B).
(3) Ten cents ($0.10) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat during
the quarter shall be paid to the county convention and visitors
bureau or promotion fund for the county in which the riverboat is
docked.
(4) Fifteen cents ($0.15) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat during
a quarter shall be paid to the state fair commission, for use in any
activity that the commission is authorized to carry out under
IC 15-1.5-3.
(5) Ten cents ($0.10) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat during
the quarter shall be paid to the division of mental health and
addiction. The division shall allocate at least twenty-five percent
(25%) of the funds derived from the admissions tax to the
prevention and treatment of compulsive gambling.
(6) Sixty-five cents ($0.65) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat during
the quarter shall be paid to the Indiana horse racing commission
to be distributed as follows, in amounts determined by the Indiana
horse racing commission, for the promotion and operation of
horse racing in Indiana:
(A) To one (1) or more breed development funds established
by the Indiana horse racing commission under
IC 4-31-11-10.
(B) To a racetrack that was approved by the Indiana horse
racing commission under IC 4-31. The commission may
make a grant under this clause only for purses, promotions,
and routine operations of the racetrack. No grants shall be
made for long term capital investment or construction and
no grants shall be made before the racetrack becomes
operational and is offering a racing schedule.
(7) One dollar ($1) of the admissions tax collected by the
licensed owner for each person embarking on a riverboat
during the quarter shall be paid to the state general fund.
(c) With respect to tax revenue collected from a riverboat that
operates on Patoka Lake, the treasurer of state shall quarterly monthly
pay the following amounts:
(1) The counties described in IC 4-33-1-1(3) shall receive one
dollar ($1) of the admissions tax collected for each person
embarking on the riverboat during the quarter. This amount shall
be divided equally among the counties described in
IC 4-33-1-1(3).
(2) The Patoka Lake development account established under
IC 4-33-15 shall receive one dollar ($1) of the admissions tax
collected for each person embarking on the riverboat during the
quarter.
(3) The resource conservation and development program that:
(A) is established under 16 U.S.C. 3451 et seq.; and
(B) serves the Patoka Lake area;
shall receive forty cents ($0.40) of the admissions tax collected
for each person embarking on the riverboat during the quarter.
(4) The state general fund shall receive fifty cents ($0.50) of the
admissions tax collected for each person embarking on the
riverboat during the quarter.
(5) The division of mental health and addiction shall receive ten
cents ($0.10) of the admissions tax collected for each person
embarking on the riverboat during the quarter. The division shall
allocate at least twenty-five percent (25%) of the funds derived
from the admissions tax to the prevention and treatment of
compulsive gambling.
(d) Money paid to a unit of local government under subsection
(b)(1) through (b)(2) or subsection (c)(1):
(1) must be paid to the fiscal officer of the unit and may be
deposited in the unit's general fund or riverboat fund established
under IC 36-1-8-9, or both;
(2) may not be used to reduce the unit's maximum levy under
IC 6-1.1-18.5, but may be used at the discretion of the unit to
reduce the property tax levy of the unit for a particular year;
(3) may be used for any legal or corporate purpose of the unit,
including the pledge of money to bonds, leases, or other
obligations under IC 5-1-14-4; and
(4) is considered miscellaneous revenue.
(e) Money paid by the treasurer of state under subsection (b)(3)
shall be:
(1) deposited in:
(A) the county convention and visitor promotion fund; or
(B) the county's general fund if the county does not have a
convention and visitor promotion fund; and
(2) used only for the tourism promotion, advertising, and
economic development activities of the county and community.
(f) Money received by the division of mental health and addiction
under subsections (b)(5) and (c)(5):
(1) is annually appropriated to the division of mental health and
addiction;
(2) shall be distributed to the division of mental health and
addiction at times during each state fiscal year determined by the
budget agency; and
(3) shall be used by the division of mental health and addiction
for programs and facilities for the prevention and treatment of
addictions to drugs, alcohol, and compulsive gambling, including
the creation and maintenance of a toll free telephone line to
provide the public with information about these addictions. The
division shall allocate at least twenty-five percent (25%) of the
money received to the prevention and treatment of compulsive
gambling.
SECTION 44, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2002]: Sec. 5. After funds are appropriated under section 4 of
this chapter, each month the treasurer of state shall distribute the tax
revenue deposited in the state gaming fund under this chapter to the
following:
(1) Twenty-five percent (25%) of the tax revenue remitted by The
amount determined under section 1(f)(3) of this chapter for
each licensed owner shall be paid:
(A) to the city that is designated as the home dock of the
riverboat from which the tax revenue was collected, in the case
of a city described in IC 4-33-12-6(b)(1)(A);
(B) in equal shares to the counties described in IC 4-33-1-1(3),
in the case of a riverboat whose home dock is on Patoka Lake;
or
(C) to the county that is designated as the home dock of the
riverboat from which the tax revenue was collected, in the case
of a riverboat whose home dock is not in a city described in
clause (A) or a county described in clause (B); and
(2) Seventy-five percent (75%) of the tax revenue remitted by
The amount determined under section 1(f)(4) of this chapter
for each licensed owner shall be paid to the build Indiana fund
lottery and gaming surplus account.
(3) The amount determined under section 1(f)(5) of this
chapter for each licensed owner shall be paid to the state
general fund.".
the state board of tax commissioners (before the board was abolished)
or the department of local government finance, not more than six (6)
months after the later of the following:
(1) The filing date for the original personal property tax return. if
the taxpayer is not granted an extension in which to file under
section 7 of this chapter.
(2) The extension date for the original personal property tax
return, if the taxpayer is granted an extension under section 7 of
this chapter.
(b) A tax adjustment related to an amended personal property tax
return shall be made in conformity with rules adopted under IC 4-22-2
by the state board of tax commissioners (before the board was
abolished) or the department of local government finance.
(c) If a taxpayer wishes to correct an error made by the taxpayer on
the taxpayer's original personal property tax return, the taxpayer must
file an amended personal property tax return under this section within
the time required by subsection (a). A taxpayer may claim on an
amended personal property tax return any adjustment or exemption that
would have been allowable under any statute or rule adopted by the
state board of tax commissioners (before the board was abolished) or
the department of local government finance if the adjustment or
exemption had been claimed on the original personal property tax
return.
(d) Notwithstanding any other provision, if:
(1) a taxpayer files an amended personal property tax return under
this section in order to correct an error made by the taxpayer on
the taxpayer's original personal property tax return; and
(2) the taxpayer is entitled to a refund of personal property taxes
paid by the taxpayer under the original personal property tax
return;
the taxpayer is not entitled to interest on the refund.
(e) If a taxpayer files an amended personal property tax return for
a year before July 16 of that year, the taxpayer shall pay taxes payable
in the immediately succeeding year based on the assessed value
reported on the amended return.
(f) If a taxpayer files an amended personal property tax return for a
year after July 15 of that year, the taxpayer shall pay taxes payable in
the immediately succeeding year based on the assessed value reported
on the taxpayer's original personal property tax return. A taxpayer that
paid taxes under this subsection is entitled to a credit in the amount of
taxes paid by the taxpayer on the remainder of:
(1) the assessed value reported on the taxpayer's original personal
property tax return; minus
(2) the finally determined assessed value that results from the
filing of the taxpayer's amended personal property tax return.
Except as provided in subsection (k), the county auditor shall apply the
credit against the taxpayer's property taxes on personal property
payable in the year that immediately succeeds the year in which the
taxes were paid.
(g) If the amount of the credit to which the taxpayer is entitled under
subsection (f) exceeds the amount of the taxpayer's property taxes on
personal property payable in the year that immediately succeeds the
year in which the taxes were paid, the county auditor shall apply the
amount of the excess credit against the taxpayer's property taxes on
personal property in the next succeeding year.
(h) Not later than December 31 of the year in which a credit is
applied under subsection (g), the county auditor shall refund to the
taxpayer the amount of any excess credit that remains after application
of the credit under subsection (g).
(i) The taxpayer is not required to file an application for:
(1) a credit under subsection (f) or (g); or
(2) a refund under subsection (h).
(j) Before August 1 of each year, the county auditor shall provide to
each taxing unit in the county an estimate of the total amount of the
credits under subsection (f) or (g) that will be applied against taxes
imposed by the taxing unit that are payable in the immediately
succeeding year.
(k) A county auditor may refund a credit amount to a taxpayer
before the time the credit would otherwise be applied against property
tax payments under this section.
(l) The county auditor shall report to the department of state
revenue any refund or credit to a taxpayer made under this section
resulting from a reduction of the amount of an assessment of
business personal property (as defined in IC 6-3.1-24-2).
UPON PASSAGE]: Sec. 4. (a) A general reassessment, involving a
physical inspection of all real property in Indiana, shall begin July 1,
2000, and each fourth year thereafter. Each reassessment shall be
completed on or before March 1, of the immediately following
even-numbered year, and shall be the basis for taxes payable in the year
following the year in which the general assessment is to be completed.
However, the general reassessment scheduled to begin under this
subsection on July 1, 2000, shall be completed on or before March
1, 2003, and shall be the basis for taxes first due and payable in
2004.
(b) In order to ensure that assessing officials and members of each
county property tax assessment board of appeals are prepared for a
general reassessment of real property, the state board department of
tax commissioners local government finance shall give adequate
advance notice of the general reassessment to the county and township
taxing officials of each county.
completed for the March 1, 2002, 2003, assessment date. The contract
applies for the appraisal of land and improvements with respect to all
classes of real property in the qualifying county. The contract must
include:
(1) a provision requiring the appraisal firm to:
(A) prepare a detailed report of:
(i) expenditures made after July 1, 1999, and before the date
of the report from the qualifying county's reassessment fund
under IC 6-1.1-4-28; section 28.5 of this chapter; and
(ii) the balance in the reassessment fund as of the date of the
report; and
(B) file the report with:
(i) the legislative body of the qualifying county;
(ii) the prosecuting attorney of the qualifying county;
(iii) the state board department of tax commissioners; local
government finance; and
(iv) the attorney general;
(2) a fixed date by which the appraisal firm must complete all
responsibilities under the contract;
(3) a provision requiring the appraisal firm to use the land values
determined for the qualifying county under IC 6-1.1-4-13.6;
section 13.6 of this chapter;
(4) a penalty clause under which the amount to be paid for
appraisal services is decreased for failure to complete specified
services within the specified time;
(5) a provision requiring the appraisal firm to make periodic
reports to the state board of tax commissioners;
(6) a provision stipulating the manner in which, and the time
intervals at which, the periodic reports referred to in subdivision
(5) are to be made;
(7) a precise stipulation of what service or services are to be
provided;
(8) a provision requiring the appraisal firm to deliver a report of
the assessed value of each parcel in a township in the qualifying
county to the state board department of tax commissioners; local
government finance; and
(9) any other provisions required by the state board of tax
commissioners.
1, 2002, 2003, assessment date, the state board department of tax
commissioners local government finance shall initiate a review with
respect to the real property in a qualifying county or a township in a
qualifying county, or a portion of the real property in a qualifying
county or a township in a qualifying county. The state board
department of local government finance may contract to have the
review performed by an appraisal firm. The state board department of
local government finance or its contractor shall determine for the real
property under consideration and for the qualifying county or township
the variance between:
(1) the total assessed valuation of the real property within the
qualifying county or township; and
(2) the total assessed valuation that would result if the real
property within the qualifying county or township were valued in
the manner provided by law.
(j) If:
(1) the variance determined under subsection (i) exceeds ten
percent (10%); and
(2) the state board department of local government finance
determines after holding hearings on the matter that a special
reassessment should be conducted;
the state board department of local government finance shall
contract for a special reassessment by an appraisal firm to correct the
valuation of the property.
(k) If the variance determined under subsection (i) is ten percent
(10%) or less, the state board department of tax commissioners local
government finance shall determine whether to correct the valuation
of the property under:
(1) sections 9 and 10 of this chapter; or
(2) IC 6-1.1-14-10 and IC 6-1.1-14-11.
(l) The state board department of tax commissioners local
government finance shall give notice by mail to a taxpayer of a
hearing concerning the state board's intent of the department of local
government finance to cause the taxpayer's property to be reassessed
under this section. The time fixed for the hearing must be at least ten
(10) days after the day the notice is mailed. The state board
department of local government finance may conduct a single
hearing under this section with respect to multiple properties. The
notice must state:
(1) the time of the hearing;
(2) the location of the hearing; and
(3) that the purpose of the hearing is to hear taxpayers' comments
and objections with respect to the state board's intent of the
department of local government finance to reassess property
under this chapter.
(m) If the state board department of tax commissioners local
government finance determines after the hearing that property should
be reassessed under this section, the state board department of local
government finance shall:
(1) cause the property to be reassessed under this section;
(2) mail a certified notice of its final determination to the county
auditor of the qualifying county in which the property is located;
and
(3) notify the taxpayer by mail of its final determination.
(n) A reassessment may be made under this section only if the
notice of the final determination under subsection (l) is given to the
taxpayer within the same period prescribed in IC 6-1.1-9-3 or
IC 6-1.1-9-4.
(o) If the state board department of tax commissioners local
government finance contracts for a special reassessment of property
under this section, the state board department of local government
finance shall forward the bill for services of the contractor to the
county auditor, and the county shall pay the bill from the county
reassessment fund.
(p) A township assessor in a qualifying county or a county assessor
of a qualifying county shall provide information requested in writing
by the state board department of tax commissioners local government
finance or the state board's its contractor under this section not later
than seven (7) days after receipt of the written request from the state
board or the contractor. If a township assessor or county assessor fails
to provide the requested information within the time permitted in this
subsection, the state board department of tax commissioners local
government finance or the state board's its contractor may seek an
order of the tax court under IC 33-3-5-2.5 for production of the
information.
(q) The provisions of this section are severable in the manner
provided in IC 1-1-1-8(b).
county treasurer shall collect that amount in the same manner that
ad valorem property taxes are collected.
(d) The accounts of each of the taxing units within an affected
county shall be credited with a proportionate share of the special
assessment collected by the county under subsection (c) equal to
the amount of the special assessment collected by the county
multiplied by a fraction. The numerator of the fraction is equal to
the amount of ad valorem property taxes credited to the account
from property taxes first due and payable from the public utility
company in the particular year. The denominator is the total ad
valorem property taxes credited to all accounts in the county from
property taxes first due and payable from the public utility
company in the particular year.
(e) The distribution of the special assessment under this section
shall be treated as ad valorem property taxes for the purposes of
setting tax rates, tax levies, and budgets of taxing units.
home not assessed as real property that qualifies for the homestead
credit. The auditor of the county shall record and make the deduction
for the person qualifying for the deduction.
(b) 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) one-half (1/2) 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) six twenty-five thousand dollars ($6,000). ($25,000).
(c) 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.
that would have been determined for the property under the
personal property tax rules in effect for the 2001 assessment date.
(e) This subsection applies to tangible personal property that
does not qualify as construction in process. The department of local
government finance shall establish a method for computing a
deduction for tangible personal property and mobile homes subject
to assessment under IC 6-1.1-7 that results in the valuation of
tangible personal property and mobile homes on a statewide basis
at an amount that is equal to the assessed value that would have
been determined for the tangible personal property and mobile
homes under the personal property tax rules in effect for the 2001
assessment date.
(f) Each county auditor, with the assistance of the assessing
officials in the county, shall review the personal property tax
returns filed in the county for property taxes first due and payable
in 2003. The county auditor shall identify each person owning
property in the class of tangible personal property eligible for a
deduction under this section and apply the deduction to the
assessed value of the person's tangible personal property belonging
to the class.
(g) Budgets, tax rates, and tax levies for 2003 must be computed
using the assessed value of tangible personal property determined
after the application of the deduction allowed under this section.
(h) This section expires January 1, 2004.
multifamily dwelling complex or the principal officer of the
entity owning the complex; and
(3) indicate that substantially all of the units in the
multifamily dwelling complex were used as principal rental
dwellings on an assessment date or within two (2) years before
the assessment date.
(d) To obtain the deduction under this section, the:
(1) owner of the multifamily dwelling complex; or
(2) principal officer for the cooperative, common interest
community, or owner's association owning the multi-family
dwelling complex;
must file a certified application in duplicate, on forms prescribed
by the department of local government finance, with the auditor of
the county in which the property is subject to assessment. The
certified application must be filed before May 11 in the year
containing the assessment date to which the application applies.
(e) If the owner of the multifamily dwelling complex is eligible
to receive:
(1) a homestead credit for the multifamily dwelling complex
under IC 6-1.1-20.9; or
(2) the standard deduction for the multifamily dwelling
complex under section 37 of this chapter;
the owner may not claim the deduction provided under this section.
(f) If the multifamily dwelling complex contains more than one
(1) building with principal rental dwellings, the deduction provided
this section shall be allocated among the tracts and buildings on the
tracts in proportion to the assessed valuation of each tract and
building.
equipment, or both, for which the person desires to claim a deduction
under this chapter. The state board of tax commissioners 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 or new
research and development equipment, or both, 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;
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 or new
research and development equipment, or both, and an estimate of
the annual salaries of these individuals.
(3) An estimate of the cost of the new manufacturing equipment
or new research and development equipment, or both.
(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.
With the approval of the state board of tax commissioners, the
statement of benefits may be incorporated in a designation application.
Notwithstanding any other law, a statement of benefits is a public
record that may be inspected and copied under IC 5-14-3-3.
(c) The designating body must review the statement of benefits
required under subsection (b). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether the deduction shall be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment or new research and development equipment, or both,
is reasonable for equipment of that type.
(2) With respect to:
determined by the designating body under subsection (h). Except as
provided in subsections (f), and (g), and (j) and in section 2(i)(3) 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 or
new research and development equipment, or both, in the year
that the equipment is installed, of deduction under the table set
forth in subsection (e), as adjusted under section 4.7 of this
chapter; multiplied by
(2) the percentage prescribed in the table set forth in subsection
(e).
(e) The percentage to be used in calculating the deduction under
subsection (d) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd and thereafter 0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 50%
3rd and thereafter 0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 66%
3rd 33%
4th and thereafter 0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
5th and thereafter 0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
whose statement of benefits is approved after April 30, 1991, is entitled
to a deduction for five (5) or ten (10) years. For an economic
revitalization area designated after June 30, 2000, the designating body
shall determine the number of years the deduction is allowed. However,
the deduction may not be allowed for more than ten (10) years. This
determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving a
copy of a property owner's certified deduction application from the
state board of tax commissioners. A certified copy of the resolution
shall be sent to the county auditor and the state board of tax
commissioners.
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).
(i) The owner of new manufacturing equipment that is directly used
to dispose of hazardous waste is not entitled to the deduction provided
by this section for a particular assessment year if during that
assessment year the owner:
(1) is convicted of a violation under IC 13-7-13-3 (repealed),
IC 13-7-13-4 (repealed), or IC 13-30-6; or
(2) is subject to an order or a consent decree with respect to
property located in Indiana based on a violation of a federal or state
rule, regulation, or statute governing the treatment, storage, or
disposal of hazardous wastes that had a major or moderate
potential for harm.
(j) The deduction determined under this subsection applies only
to new manufacturing equipment or new research and
development equipment, or both installed before March 2, 2001.
The department of local government finance shall determine the
deduction so that the amount of the deduction for the year bears
the same proportion to the assessed value of the equipment for the
year that the amount of the deduction determined for the year
under this section as in effect on March 1, 2001, bears to the
assessed value of the equipment determined for the year using 50
IAC 4.2 and 50 IAC 5.1 as in effect on January 1, 2001. The
department of local government finance shall adopt rules under
IC 4-22-2 for the implementation of this subsection.
JANUARY 1, 2004]: Sec. 2. A county may not impose a county family
and children property tax levy for an ensuing calendar year that
exceeds the product of:
(1) the assessed value growth quotient determined under
IC 6-1.1-18.5-2 for the county for the ensuing calendar year;
multiplied by
(2) for:
(A) calendar year 2004, fifty percent (50%) of the maximum
county family and children property tax levy that the county
could have imposed for the calendar year immediately preceding
the ensuing calendar year under the limitations set by this
section; and
(B) calendar year 2005 and thereafter, the maximum county
family and children property tax levy that the county could
have imposed for the calendar year immediately preceding
the ensuing calendar year under the limitations set by this
section.
STEP FOUR; or
(C) equals the school corporation's previous year property tax
rate, determine the levy resulting from using the school
corporation's adjusted target property tax rate and do not perform
the calculation under STEP FOUR or STEP FIVE.
The school corporation's 2002 assessed valuation shall be used for
purposes of determining the levy under clause (C) in 2002 and in
2003.
STEP FOUR: Determine the levy resulting from using the school
corporation's previous year property tax rate after increasing the
rate by the lesser of:
(A) the STEP ONE result; or
(B) the sum of:
(i) five cents ($0.05); plus
(ii) if the school corporation's adjustment factor is more than
one (1), the STEP TWO result.
The school corporation's 2002 assessed valuation shall be used for
purposes of determining the levy under this STEP in 2002 and in
2003.
STEP FIVE: For a calendar year beginning before January 1,
2004, determine the levy resulting from using the school
corporation's previous year property tax rate after reducing the rate
by the lesser of:
(A) the absolute value of the STEP ONE result; or
(B) the sum of:
(i) nine cents ($0.09); plus
(ii) if the school corporation's adjustment factor is less than
one (1), the STEP TWO result.
The school corporation's 2002 assessed valuation shall be used for
purposes of determining the levy under this STEP in 2002 and in
2003.
STEP SIX: For a calendar year beginning after December 31,
2003, determine the levy resulting from using the school
corporation's previous year property tax rate after reducing
the rate by the absolute value of the STEP ONE result.
STEP SEVEN: Determine the result of:
(A) the STEP THREE (C), STEP FOUR, or STEP FIVE, or
STEP SIX result, whichever applies; plus
particular year either owns or is buying a homestead under a contract
that provides the individual is to pay the property taxes on the
homestead is entitled each calendar year to a credit against the property
taxes which the individual pays on the individual's homestead.
However, only one (1) individual may receive a credit under this
chapter for a particular homestead in a particular year.
(b) The amount of the credit to which the individual is entitled equals
the product of:
(1) the percentage prescribed in subsection (d); multiplied by
(2) the amount of the individual's property tax liability, as that term
is defined in IC 6-1.1-21-5, which is attributable to the homestead
during the particular calendar year.
(c) For purposes of determining that part of an individual's property
tax liability that is attributable to the individual's homestead, all
deductions from assessed valuation which the individual claims under
IC 6-1.1-12 or IC 6-1.1-12.1 for property on which the individual's
homestead is located must be applied first against the assessed value
of the individual's homestead before those deductions are applied
against any other property.
(d) The percentage of the credit referred to in subsection (b)(1) is as
follows:
YEAR PERCENTAGE
OF THE CREDIT
1996 8%
1997 6%
1998 through 2003 10%
2004 and thereafter 4% 15%
However, the property tax replacement fund board established under
IC 6-1.1-21-10, in its sole discretion, may increase the percentage of
the credit provided in the schedule for any year, if the board feels that
the property tax replacement fund contains enough money for the
resulting increased distribution. If the board increases the percentage
of the credit provided in the schedule for any year, the percentage of
the credit for the immediately following year is the percentage provided
in the schedule for that particular year, unless as provided in this
subsection the board in its discretion increases the percentage of the
credit provided in the schedule for that particular year. However, the
percentage credit allowed in a particular county for a particular year
shall be increased if on January 1 of a year an ordinance adopted by a
county income tax council was in effect in the county which increased
the homestead credit. The amount of the increase equals the amount
designated in the ordinance.
(e) Before October 1 of each year, the assessor shall furnish to the
county auditor the amount of the assessed valuation of each homestead
for which a homestead credit has been properly filed under this chapter.
(f) The county auditor shall apply the credit equally to each
installment of taxes that the individual pays for the property.
(g) Notwithstanding the provisions of this chapter, a taxpayer other
than an individual is entitled to the credit provided by this chapter if:
(1) an individual uses the residence as the individual's principal
place of residence;
(2) the residence is located in Indiana;
(3) the individual has a beneficial interest in the taxpayer;
(4) the taxpayer either owns the residence or is buying it under a
contract, recorded in the county recorder's office, that provides
that the individual is to pay the property taxes on the residence;
and
(5) the residence consists of a single-family dwelling and the real
estate, not exceeding one (1) acre, that immediately surrounds
that dwelling.
the 2002 assessment date.
STEP THREE: Determine the amount of property tax
liability, as that term is defined in IC 6-1.1-21-5, that was
attributable to the property described in STEP ONE during
2003.
STEP FOUR: Subtract the STEP THREE amount from the
STEP TWO remainder.
STEP FIVE: If the STEP FOUR remainder is greater than
zero (0), the amount of the increase is equal to:
(A) twenty-five percent (25%) of the STEP FOUR
remainder in 2004;
(B) eighteen percent (18%) of the STEP FOUR remainder
in 2005;
(C) nine percent (9%) of the STEP FOUR remainder in
2006.
If the STEP FOUR remainder is less than zero (0), the amount of
the increase is equal to zero (0).
(b) The department of local government finance may adopt
rules under IC 4-22-2 to implement this section.
(c) This section expires January 1, 2006.
all or part of an economic development district:
STEP ONE: Determine that part of the sum of the amounts
under section 2(g)(1)(A) and 2(g)(2) of this chapter that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of the subdivision (1) amount that is
attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the property taxes levied in the taxing district that are
allocated to a special fund under IC 6-1.1-39-5.
(b) Except as provided in subsection (e), between March 1 and
August 31 of each year, the department shall distribute to each county
treasurer from the property tax replacement fund one-half (1/2) of the
estimated distribution for that year for the county. Between September
1 and December 15 of that year, the department shall distribute to each
county treasurer from the property tax replacement fund the remaining
one-half (1/2) of each estimated distribution for that year. The amount
of the distribution for each of these periods shall be according to a
schedule determined by the property tax replacement fund board under
section 10 of this chapter. The estimated distribution for each county
may be adjusted from time to time by the department to reflect any
changes in the total county tax levy upon which the estimated
distribution is based.
(c) On or before December 31 of each year or as soon thereafter as
possible, the department shall make a final determination of the amount
which should be distributed from the property tax replacement fund to
each county for that calendar year. This determination shall be known
as the final determination of distribution. The department shall
distribute to the county treasurer or receive back from the county
treasurer any deficit or excess, as the case may be, between the sum of
the distributions made for that calendar year based on the estimated
distribution and the final determination of distribution. The final
determination of distribution shall be based on the auditor's abstract
filed with the auditor of state, adjusted for postabstract adjustments
included in the December settlement sheet for the year, and such
additional information as the department may require.
to the county when the elected township assessors in the county, the
elected township assessors and the county assessor, or the county
assessor transmits to the department of local government finance the
data required to be transmitted under IC 6-1.1-4-25(b) with respect to
which the failure to transmit resulted in the withholding of the
distribution under subsection (f).
(i) The restrictions on distributions under subsections (e) and (f) do
not apply if the department of local government finance determines
that:
(1) the failure of a county auditor to send a certified statement as
described in subsection (e); or
(2) the failure of an official to transmit data as described in
subsection (f);
is justified by unusual circumstances.
subtracted under section 2(g)(1)(B), 2(g)(1)(C), 2(g)(1)(D), 2(g)(1)(E),
2(g)(1)(F), 2(g)(1)(G), (2)(g)(1)(H), 2(g)(1)(I), or 2(g)(1)(J), or
2(g)(1)(K) of this chapter in computing the total county tax levy.
(b) The credit for taxes payable in a particular year with respect to
mobile homes which are assessed under IC 6-1.1-7 is twenty ten
percent (20%) (10%) of the taxes payable with respect to the
assessments plus the adjustments stated in this section.
(c) Each taxpayer in a taxing district that contains all or part of an
economic development district that meets the requirements of section
5.5 of this chapter is entitled to an additional credit for property tax
replacement. This credit is equal to the product of:
(1) the STEP TWO quotient determined under section 4(a)(3) of
this chapter for the taxing district; multiplied by
(2) the taxpayer's property taxes levied in the taxing district that
are allocated to a special fund under IC 6-1.1-39-5.
entered, collected, and enforced.
(b) As the special tax is collected by the county treasurer, it shall
be transferred to the governing body that imposed the special tax
and accumulated and kept in the special fund for the allocation
area and applied only for the purposes of this chapter.
(c) The governing body shall determine the special tax levy for
a year in the amount of the lesser of:
(1) the total payments due on the obligations of the governing
body in the year minus the amounts the governing body
estimates will be legally available to the governing body in the
year to make the payments; and
(2) except as provided in subsection (d), the amount that will
result from the imposition of a rate for the special tax levy
that the county auditor estimates will cause the total tax rate
in the taxing district in which the allocation area is located to
be one hundred ten percent (110%) of the rate that would
apply if the rate for the special tax levy were not imposed for
the year.
(d) If the allocation area is located in more than one (1) taxing
district, the special tax levy amount determined under subsection
(c)(2) shall be based on the taxing district that will, without
consideration of the rate for the special tax levy, have the highest
tax rate in the year in which the special tax levy is payable.
(e) In estimating the amount legally available under subsection
(c)(1), the governing body shall not consider the remedies referred
to in section 10(b)(6) of this chapter.
Sec. 10. (a) Before October 2 in a year, a governing body that
has:
(1) imposed a special tax levy under section 9 of this chapter
payable in the immediately succeeding year to raise revenue
to pay amounts due on obligations of the governing body in
the immediately succeeding year; and
(2) investigated its ability to employ all remedies available
under the agreements establishing obligations of the
governing body to provide sufficient funds to pay amounts
due on the obligations in the immediately succeeding year,
including guarantees by a unit to apply revenues received
under IC 6-3.5 or other sources toward the payment of the
obligations;
may appeal to the department for emergency relief under this
chapter to provide sufficient additional funds to pay amounts due
on the obligations in the immediately succeeding year.
(b) In the petition under this section, the governing body must
state sufficient facts to demonstrate the following:
(1) The petitioner is a governing body.
(2) The petitioner established an allocation area before
January 1, 2002.
(3) The holders of obligations payable from tax increment
revenues from the allocation area received a pledge before
January 1, 2002, of tax increment revenues to pay any part of
the obligations due after December 31, 2002.
(4) A change in the determination of the assessed value of
tangible personal property resulting from a change in the
rules governing the assessment of tangible personal property
in effect on January 1, 2001 (50 IAC 5.1; 50 IAC 4.2) causes
the governing body to be unable to pay amounts due on the
obligations of the governing body in the immediately
succeeding year.
(5) The governing body has imposed a special tax under
section 9 of this chapter to pay amounts due on obligations of
the governing body in the immediately succeeding year.
(6) The governing body has investigated its ability to employ
all remedies available under the agreements establishing the
obligations of the governing body to provide sufficient funds
to pay amounts due on the obligations in the immediately
succeeding year, including guarantees by a unit to apply
revenues received under IC 6-3.5 or other sources toward the
payment of the obligations.
(7) The governing body has investigated the availability of all
funds legally available to the governing body for the payment
of amounts due on the obligations of the governing body in the
immediately succeeding year, including funds derived from
the denial of all or a part of an additional credit to taxpayers
in the allocation area.
(8) The governing body has reasonably determined that
refinancing one (1) or more of the obligations of the governing
body is not an economically feasible means of providing
sufficient funds to pay amounts due on the obligations in the
immediately succeeding year.
(9) The governing body has made reasonable efforts to limit
its use of the special fund for the allocation area to
appropriations for payments of amounts due on obligations of
the governing body.
(10) The balance in the special fund for the allocation area in
the immediately succeeding year will be insufficient to pay
amounts due on the obligations of the governing body in that
year.
(11) A property tax payer located in any part in the allocation
area was not the original purchaser and does not own any of
the obligations of the governing body or rights to payment of
any of the obligations.
(12) The governing body is unable to provide sufficient funds
to pay amounts due on the obligations of the governing body
in the immediately succeeding year.
(13) A copy of the petition has been served on the executive of
each taxing unit in which any part of the allocation area is
located.
(14) The governing body at the time of issuance of the
obligations:
(A) reasonably estimated that the revenue legally available
to pay the obligations would be adequate to pay the
obligations over the term of the obligations; and
(B) pledged as additional security for the payment of the
obligations a reasonable amount of coverage of revenue
legally available in excess of the amount necessary to pay
the obligations.
(15) The number of subsequent years the governing body
estimates it will appeal under this section.
Sec. 11. The department shall conduct a hearing on the petition
in the county where the allocation area is located. At the hearing,
the petitioner and any other person my submit any information
relevant to the determination of the issues raised in the petition.
Sec. 12. (a) If, after the hearing and upon consideration of all of
the factors referred to in section 10(b) of this chapter, the
department determines that the requirements of this chapter have
been met, the department may order any of the emergency relief
described in section 13 of this chapter for the immediately
succeeding year.
(b) The amount of emergency relief ordered under this section
may not exceed:
(1) the amount the governing body is obligated to pay on
obligations in the immediately succeeding year; minus
(2) the amount of the special tax levy under section 9 of this
chapter payable in the immediately succeeding year.
Sec. 13. The department may grant any of the following relief:
(1) Adjust the base assessed value in the allocation area.
(2) Reallocate amounts set aside for property tax credits
described in IC 6-1.1-21.1-1 for property located in the
allocation area to be used to pay obligations of the governing
body.
(3) Order distributions from the tax relief fund established
under IC 4-10-20-9.
the date on which the loan was made. The total amount of all the
loans made under this chapter may not exceed ten million three
hundred thousand dollars ($10,300,000).
(b) A loan made under this chapter shall be repaid only from
property tax revenues of the qualified taxing unit that are subject
to the levy limitations imposed by IC 6-1.1-18.5 or IC 6-1.1-19. The
payment of any installment of principal constitutes a first charge
against the property tax revenues collected by the qualified taxing
unit during the calendar year in which the installment is due and
payable.
(c) The obligation to repay a loan made under this chapter is not
a basis for the qualified taxing unit to obtain an excessive tax levy
under IC 6-1.1-18.5 or IC 6-1.1-19.
(d) Whenever the board receives a payment on a loan made
under this chapter, the board shall deposit the amount paid in the
counter-cyclical revenue and economic stabilization fund.
(e) This section may not be construed to prevent a qualified
taxing unit from repaying a loan made under this chapter before
the date specified in subsection (a) if a taxpayer described in
section 3 of this chapter resumes paying property taxes to the
qualified taxing unit.
Sec. 6. (a) As used in this section, "delinquent tax" means any
tax:
(1) owed by a taxpayer in a bankruptcy proceeding initially
filed in 2001; and
(2) not paid during the calendar year for which it was first
due and payable.
(b) The receipt by a qualified taxing unit of the proceeds of a
loan made under this chapter is not considered to be part of the ad
valorem property tax levy actually collected by the qualified taxing
unit for taxes first due and payable during a particular calendar
year for the purpose of calculating the levy excess under
IC 6-1.1-18.5-17 and IC 6-1.1-19-1.7. The receipt by a qualified
taxing unit of any payment of delinquent tax owed by a taxpayer
in bankruptcy is considered to be part of the ad valorem property
tax levy actually collected by the qualified taxing unit for taxes first
due and payable during a particular calendar year for the purpose
of calculating the levy excess under IC 6-1.1-18.5-17 and
IC 6-1.1-19-1.7.
(c) The proceeds of a loan made under this chapter and any
payment of delinquent tax may be expended by a qualified taxing
unit only to pay debts of the qualified taxing unit that have been
incurred under duly adopted appropriations approved by the
department of local government finance for operating expenses.
(d) If the sum of the receipts of a qualified taxing unit that are
attributable to:
(1) the proceeds of a loan made under this chapter; and
(2) the payment of property taxes owed by a taxpayer in a
bankruptcy proceeding and payable in November 2001;
exceeds the taxpayer's property tax liability attributable to the
qualified taxing unit, the excess as received during any calendar
year or years shall be set aside and treated for the calendar year
when received as a levy excess subject to IC 6-1.1-18.5-17 or
IC 6-1.1-19-1.7. In calculating the payment of property taxes
referred to in subdivision (2), the amount of property tax credit
finally allowed under IC 6-1.1-21-5 concerning the taxes is
considered to be a payment of the property taxes.
property taxes that under IC 6-1.1-22-9 are due and payable in May and
November of that year. One-half (1/2) of the credit shall be applied to
each installment of property taxes. This credit equals the amount
determined under the following STEPS for each taxpayer in a taxing
district in a county that contains all or part of the additional area:
STEP ONE: Determine that part of the sum of the amounts under
IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2) (as defined in
IC 6-1.1-21-2) that is attributable to the taxing district.
STEP TWO: Divide:
(A) that part of twenty ten percent (20%) (10%) of the
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district;
by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that would have been allocated to a special
fund under section 5 of this chapter had the additional credit
described in this section not been given.
The additional credit reduces the amount of proceeds allocated to the
economic development district and paid into a special fund under
section 5(a) of this chapter.
(b) If the additional credit under subsection (a) is not reduced under
subsection (c) or (d), the credit for property tax replacement under
IC 6-1.1-21-5 and the additional credit under subsection (a) shall be
computed on an aggregate basis for all taxpayers in a taxing district
that contains all or part of an additional area. The credit for property
tax replacement under IC 6-1.1-21-5 and the additional credit under
subsection (a) shall be combined on the tax statements sent to each
taxpayer.
(c) The county fiscal body may, by ordinance, provide that the
additional credit described in subsection (a):
(1) does not apply in a specified additional area; or
(2) is to be reduced by a uniform percentage for all taxpayers in
a specified additional area.
(d) Whenever the county fiscal body determines that granting the
full additional credit under subsection (a) would adversely affect the
interests of the holders of bonds or other contractual obligations that
are payable from allocated tax proceeds in that economic development
district in a way that would create a reasonable expectation that those
bonds or other contractual obligations would not be paid when due, the
county fiscal body must adopt an ordinance under subsection (c) to
deny the additional credit or reduce the additional credit to a level that
creates a reasonable expectation that the bonds or other obligations will
be paid when due. An ordinance adopted under subsection (c) denies
or reduces the additional credit for property taxes first due and payable
in any year following the year in which the ordinance is adopted.
(e) An ordinance adopted under subsection (c) remains in effect
until the ordinance is rescinded by the body that originally adopted the
ordinance. However, an ordinance may not be rescinded if the
rescission would adversely affect the interests of the holders of bonds
or other obligations that are payable from allocated tax proceeds in that
economic development district in a way that would create a reasonable
expectation that the principal of or interest on the bonds or other
obligations would not be paid when due. If an ordinance is rescinded
and no other ordinance is adopted, the additional credit described in
subsection (a) applies to property taxes first due and payable in each
year following the year in which the resolution is rescinded.
and education revenues for each county.
Sec. 3. The total levy miscellaneous tax allocation is equal to the
sum of the following components:
(1) A welfare allocation.
(2) A human services fund allocation
(3) An education allocation.
Sec. 4. As used in any statute concerning miscellaneous taxes,
"welfare revenues" equals the sum of the amounts determined
under STEP ONE (A) of section 7 of this chapter for calendar
years 1997, 1998, and 1999 divided by three (3).
Sec. 5. As used in any statute concerning miscellaneous taxes,
"human services fund revenues" equals the sum of the amounts
determined under STEP ONE (A) of section 8 of this chapter for
calendar years 2001, 2002, and 2003 divided by three (3).
Sec. 6. As used in any statute concerning miscellaneous taxes
"education revenues" equals the sum of the amounts determined
under STEP ONE (A) of section 9 of this chapter for calendar
years 2001, 2002, and 2003 divided by three (3).
Sec. 7. For each miscellaneous tax, the welfare allocation for a
county is equal to the result determined under STEP SIX of the
following formula:
STEP ONE: Using data about appropriations for calendar
years 1997, 1998, and 1999, determine the result of:
(A) the amounts appropriated by the county in the year for
the county's county welfare fund and county
administration fund; divided by
(B) the amounts appropriated by all the taxing units in the
county for the year.
STEP TWO: Determine the sum of the results determined
under STEP ONE.
STEP THREE: Divide the STEP TWO result by three (3).
STEP FOUR: Determine the amount of the miscellaneous tax
that would otherwise be distributed to all taxing units in the
county under the law establishing the miscellaneous tax
without regard to this section.
STEP FIVE: Determine the result of:
(A) the STEP FOUR amount; multiplied by
(B) the STEP THREE result.
reasonable expenses of the organization and payments to
beneficiaries of deceased members;
(10) (8) amounts received as the corpus of an outright gift, devise,
or bequest;
(11) (9) cash discounts allowed and taken on sales;
(12) (10) goods, wares, or merchandise, or the value thereof,
returned by customers if the sale price is refunded either in cash
or by credit;
(13) (11) judgments for income that are not taxable under this
article;
(14) (12) the receipt of capital by a corporation, partnership, firm,
or joint venture from the sale of stock or shares in such
corporation, partnership, firm, or joint venture, or contributions
to the capital thereof;
(15) (13) the gross receipts represented by the value of real or
tangible personal property received in reciprocal exchange for
real or tangible personal property of like kind by and between the
owners of the property to the extent of the value of the property or
the interest therein of which title is surrendered;
(16) (14) the gross receipts represented by the value of stock of a
corporation or association received in a reciprocal exchange by
and between the owners of the stock (including the issuing
corporation or association) for stock in the same corporation or
association to the extent of the value of the stock or the interest
therein of which title is surrendered;
(17) (15) the gross receipts represented by the value of bonds or
similar securities issued by a corporation or association received
in a reciprocal exchange by and between the owners of the bonds
or securities (including the issuing corporation or association) for
bonds or similar securities issued by the same corporation or
association to the extent of the value of such bonds or similar
securities or the interest therein of which title is surrendered;
(18) (16) the gross receipts represented by the value of stocks,
bonds, or other securities received in a reciprocal exchange by
and between the owners of the stocks, bonds, or other securities
for other stocks, bonds, or other securities to the extent title is
surrendered, if the exchange is made in the course of a
consolidation, merger, or other reorganization and the stock,
bonds, or other securities received are issued by one (1) or more
corporations or associations that are each a party to the
reorganization;
(19) (17) the gross receipts represented by the value of stocks,
bonds, or other securities received in a reciprocal exchange by
and between the owners thereof of substantially all of the assets
of another corporation if the exchange is made in the course of a
consolidation, merger, or other reorganization and the stocks,
bonds, or other securities received are issued by one (1) or more
corporations or associations that are each a party to the
reorganization; and
(20) in the case of insurance carriers, amounts that become or are
used to maintain a reserve or other policy liability, to the extent
the reserve or other policy liability is required to be maintained by
the state of Indiana;
(21) in the case of domestic insurance carriers, premium income
that is derived from business conducted outside Indiana on which
the domestic carrier pays a premium tax of one percent (1%) or
more; and
(22) (18) amounts received by a joint agency established under
IC 8-1-2.2 that constitutes a payment by a municipality that is a
member of the joint agency for electrical energy that will be sold
by the municipality to retail customers.
(d) The exclusion provided by clause (6) of subsection (c) does not
apply to any receipts of a taxpayer received as interest or dividends,
from sales, other receipts from investments not acquired or disposed of
in connection with the taxpayer's regular business, or to bonuses or
commissions received by any taxpayer.
(e) The exclusion provided by subsection (c) clause (14) (c)(12)
does not apply to proceeds that are derived from subsequent
transactions in stock of such corporations or organizations or in the
interest or shares of the members of any organization.
(f) The face amount of a retail installment contract or promissory
note that is derived from the selling, providing, repairing, working with
or on, or servicing of any personal property, or any combination of the
foregoing, is includable in a taxpayer's gross income upon receipt.
However, any part of a retail installment contract or promissory note
that represents insurance premiums or consideration which the retail
buyer contracts to pay the retail seller for the privilege of paying the
principal balance in installments over a period of time is includable in
a taxpayer's gross income when received.
(g) For purposes of this section:
(1) "Exchange" means the transfer of title or ownership by means of
a transaction involving the barter or swap of property acquired prior to
the exchange, by and between the owners of that property, with or
without additional consideration. However, the term "exchange" does
not include:
(A) any sale of property even though other property is purchased
with the proceeds of the sale;
(B) any barter or swap of property where there are more than two
(2) parties to the transaction; or
(C) any transaction where the property exchanged is acquired by
one (1) party to the transaction as a result of negotiation or
arrangement with the other party with the intent of effectuating an
exchange of the property so acquired.
(2) "Like kind" means property of the same class and kind and has
no reference to the grade or quality of such property.
determined by the type of transaction from which the taxable gross
income is received.
secured by bond, deposit, or otherwise.
(b) (c) A fiduciary described in subsection (b) in a proceeding
described in subsection (a) shall provide proof to a court that all gross
income tax has been paid, and that any required security has been
provided. The fiduciary shall request the department to issue a
certificate of clearance certifying that all gross income tax which is due
and payable has been paid and that any required security has been
provided. The certificate shall be issued by the department within thirty
(30) days after request. When issued, the certificate is conclusive proof
that no gross income tax is due and that any required security has been
provided.
(c) (d) If the department fails to issue a certificate of clearance
under subsection (b) (c) within thirty (30) days after request, a
fiduciary may provide evidence to a court which demonstrates that no
gross income tax is due and that any required security has been
provided. Upon approval by the court, such evidence is conclusive
proof of payment of the tax imposed by this article.
(d) (e) Any gross income tax liability owed by a fiduciary is a
preferred claim and has priority over all other claims except claims for
judicial costs and costs of administration.
this article are the exemptions provided by this chapter.
Sec. 2. An individual is exempt from this article.
Sec. 3. The estate of a deceased individual is exempt from this
article.
Sec. 4. The following governmental or quasi-governmental
entities are exempt from this article:
(1) The United States government.
(2) The state of Indiana, another state, or an Indian tribe (as
defined in IC 34-6-2-66.7).
(3) A political subdivision.
(4) A body corporate and politic that is an instrumentality of
a governmental entity described in subdivisions (1) through
(3), including a state educational institution (as defined in
IC 20-12-0.5-1).
(5) A business entity that is wholly owned by a governmental
entity described in subdivisions (1) through (3), including a
municipally owned utility (as defined in IC 8-1-2-1).
Sec. 5. An organization that is exempt for federal income tax
purposes under Section 501(a) of the Internal Revenue Code is
exempt from this article, regardless of whether the organization
has unrelated business income that is taxable for federal income
tax purposes.
Sec. 6. A company (as defined in IC 27-1-2-3) is exempt from
this article.
Sec. 7. The following are exempt from this article:
(1) A holding company (as defined in IC 6-5.5-1-17).
(2) A regulated financial corporation (as defined in
IC 6-5.5-1-17).
Sec. 8. A trust (as described in IC 30-4-1-1) other than a
business trust (as defined in IC 23-5-1-2) is exempt from this
article.
Sec. 9. The following political organizations are exempt from
this article:
(1) A bona fide political party (as defined in IC 3-5-2-5.5).
(2) A candidate's committee (as defined in IC 3-5-2-7).
(3) A central committee (as defined in IC 3-5-2-8).
(4) A regular party committee (as defined in IC 3-5-2-42).
(5) A political action committee (as defined in IC 3-5-2-37).
and outside Indiana and a greater proportion of the activity
producing the receipts is performed in Indiana than in any
other state, based on costs of performance.
Sec. 8. (a) Interest and other receipts from assets in the nature
of loans or installment receipts contracts that are primarily
secured by or deal with real or tangible personal property are
attributable to Indiana if the security or sale property is located in
Indiana.
(b) Interest and other receipts from consumer loans not secured
by real or tangible personal property are attributable to Indiana
if the loan is made to a resident of Indiana, whether at a place of
business, by a traveling loan officer, by mail, by telephone, or by
other electronic means.
(c) Interest and other receipts from commercial loans and
installment obligations not secured by real or tangible personal
property are attributable to Indiana if the proceeds of the loan are
to be applied in Indiana. If it cannot be determined where the
funds are to be applied, the receipts are attributable to the state in
which the business applied for the loan. As used in this section,
"applied for" means initial inquiry (including customer assistance
in preparing the loan application) or submission of a completed
loan application, whichever occurs first.
(d) Interest, merchant discount, and other receipts including
service charges from financial institution credit card and travel
and entertainment credit card receivables and credit card holders'
fees are attributable to the state to which the card charges and fees
are regularly billed.
(e) Receipts from the performance of fiduciary and other
services are attributable to the state in which the benefits of the
services are consumed. If the benefits are consumed in more than
one (1) state, the receipts from those benefits are attributable to
Indiana on a pro rata basis according to the part of the benefits
consumed in Indiana.
(f) Receipts from the issuance of traveler's checks, money
orders, or United States savings bonds are attributable to the state
in which the traveler's checks, money orders, or bonds are
purchased.
(g) Receipts in the form of dividends from investments are
attributable to Indiana if the taxpayer's commercial domicile is in
Indiana.
Sec. 9. (a) Receipts from rents and royalties from real or
tangible personal property, sale of capital assets, interest,
dividends, or patent or copyright royalties, to the extent that they
constitute nonbusiness income (as defined in IC 6-3-1-21), are
attributed as provided in this section.
(b) Receipts from net rents and royalties from real property
located in Indiana are attributable to Indiana.
(c) Receipts from net rents and royalties from tangible personal
property are attributed to Indiana:
(1) if and to the extent that the property is used in Indiana; or
(2) in their entirety if the taxpayer's commercial domicile is in
Indiana and the taxpayer is not organized under the laws of
or taxable in the state in which the property is used.
(d) The extent of use of tangible personal property in a state is
determined by multiplying the rents and royalties by a fraction.
The numerator of the fraction is the number of days of physical
location of the property in the state during the rental or royalty
period in the taxable year. The denominator of the fraction is the
number of days of physical location of the property everywhere
during all rental or royalty periods in the taxable year. If the
physical location of the property during the rental or royalty
period is unknown or not ascertainable by the taxpayer, tangible
personal property is used in the state in which the property was
located at the time the rental or royalty payer obtained possession.
(e) Receipts from the sales of real property located in Indiana
are attributable to Indiana.
(f) Receipts from sales of tangible personal property are
attributable to Indiana if:
(1) the property had a situs in Indiana at the time of the sale;
or
(2) the taxpayer's commercial domicile is in Indiana and the
taxpayer is not taxable in the state in which the property had
a situs as determined under section 10 of this chapter.
(g) Receipts from intangible personal property are attributable
to Indiana if the taxpayer's commercial domicile is in Indiana.
(h) Receipts from interest and dividends are attributable to
Indiana if the taxpayer's commercial domicile is in Indiana.
(i) Patent and copyright royalties are attributable to Indiana:
(1) if and to the extent that the patent or copyright is used by
the taxpayer in Indiana; or
(2) if and to the extent that the patent or copyright is used by
the taxpayer in a state in which the taxpayer is not taxable as
determined under section 10 of this chapter and the
taxpayer's commercial domicile is in Indiana.
A patent is used in a state to the extent that it is employed in
production, fabrication, manufacturing, or other processing in the
state or to the extent that a patented product is produced in the
state. If the basis of receipts from patent royalties does not permit
allocation to states or if the accounting procedures do not reflect
states of use, the patent is used in the state in which the taxpayer's
commercial domicile is located. A copyright is used in a state to the
extent that printing or other publication originates in the state. If
the basis of receipts from copyright royalties does not permit
allocation to states or if the accounting procedures do not reflect
states of use, the copyright is used in the state in which the
taxpayer's commercial domicile is located.
Sec. 10. For purposes of apportionment of income or receipts
under this chapter, a taxpayer is taxable in another state if:
(1) in that state the taxpayer is subject to a franchise tax
measured by net worth, a franchise tax for the privilege of
doing business, or a corporate stock tax; or
(2) that state has jurisdiction to subject the taxpayer to a net
worth tax regardless of whether, in fact, the state does or does
not.
Sec. 11. (a) The property factor in the numerator of the
apportionment factor for a transportation company is computed
as follows:
(1) Fixed properties such as buildings and land used in
business, shop, and terminal equipment and trucks or cars
used locally or any other tangible property connected with the
transportation business is assigned to the state in which the
properties are located.
(2) The value of all movable equipment used in interstate
transportation is assigned to Indiana on the basis of total
miles traveled in Indiana as compared with total miles
traveled everywhere.
(3) Fixed and movable property is combined to arrive at the
total property factor: Indiana property over property
everywhere.
Property owned by the transportation company is valued at
original cost. Property rented is valued at eight (8) times the
annual rental rate less any annual subrental.
(b) The payroll factor in the numerator of the apportionment
factor for a transportation company is computed as follows:
(1) Wages and salaries of employees assigned to fixed
locations in Indiana are included in the payroll factor of
Indiana.
(2) Wages of personnel operating interstate transportation
equipment are assigned to Indiana on the basis of total miles
traveled in Indiana as compared to total miles traveled
everywhere.
(3) The payroll of permanent and transient personnel is
combined to arrive at the total payroll factor: Indiana payroll
over payroll everywhere.
(c) The receipts factor in the numerator of the apportionment
factor for a transportation company is computed as follows:
(1) The total revenue dollars from transportation (both
intrastate and interstate) are assigned to the states traversed
on the basis of class or category mileage in each state in which
or through which the freight or passengers move.
(2) Pipelines may substitute revenue miles with barrel miles,
cubic foot miles, or other appropriate measures of product
movement.
(3) In order to determine the percentage of revenue from
transportation services in Indiana, the fraction of revenue
miles in Indiana over revenue miles everywhere must be
applied to total revenue from transportation.
Chapter 8. Taxable Adjusted Gross Income
Sec. 1. For purposes of this article, the taxable adjusted gross
income of a taxpayer in a taxable year is equal to the adjusted
gross income of the taxpayer for the taxable year as adjusted by
this chapter.
preceding taxable year was greater than zero dollars ($0); and
(2) the taxable net worth of the taxpayer is not greater than
five hundred thousand dollars ($500,000);
the tax imposed under this chapter in a taxable year is fifty dollars
($50).
Sec. 5. (a) This section applies if sections 3 and 4 of this chapter
do not apply to the taxpayer and the taxpayer does not take a
deduction under IC 6-2.2-6-2.
(b) The tax imposed under section 1 of this chapter is equal to
the result determined under STEP THREE of the following
formula:
STEP ONE: Multiply the taxpayer's taxable net worth by
three-thousandths (0.003).
STEP TWO: Determine the greater of the following:
(A) Fifty dollars ($50).
(B) The STEP ONE result.
STEP THREE: Determine the lesser of the following:
(A) Two hundred fifty thousand dollars ($250,000).
(B) The STEP TWO result.
Sec. 6. (a) This section applies if sections 2 and 3 of this chapter
do not apply to the taxpayer and the taxpayer takes a deduction
under IC 6-2.2-6-2.
(b) The tax imposed by section 1 of this chapter is equal to the
result determined under the following formula:
STEP ONE: Multiply the taxpayer's taxable net worth,
without any deduction under IC 6-2.2-6-2, by
three-thousandths (0.003).
STEP TWO: If the STEP ONE result is not greater than fifty
dollars ($50), the tax imposed under section 1 of this chapter
is fifty dollars ($50).
STEP THREE: If the STEP ONE result is greater than fifty
dollars ($50) and not greater than two thousand five hundred
dollars ($2,500), the tax imposed under section 1 of this
chapter is the STEP ONE result.
STEP FOUR: If the STEP ONE result is greater than two
thousand five hundred dollars ($2,500), multiply the
taxpayer's net worth, after subtracting the deduction under
IC 6-2.2-6-2, by three-thousandths (0.003).
the state general fund.
Sec. 2. The department may prescribe forms and adopt rules
under IC 4-22-2 to carry out this article and collect the tax imposed
by this article.
Sec. 3. The department may require a taxpayer to provide
information concerning any licenses and registrations that the
taxpayer has in Indiana.
Sec. 4. The department may require a taxpayer to notify the
department concerning any change in its method of accounting or
taxable year.
Sec. 5. The tax imposed under this article is a listed tax.
Chapter 13. Penalties
Sec. 1. The penalties in IC 6-8.1 apply to this article.
Sec. 2. If a taxpayer:
(1) fails to:
(A) file a notice, an information report, or a return; or
(B) pay the amount of the tax due;
as required under this article and IC 6-8.1; and
(2) within ninety (90) days after receiving written notice of a
failure described in subdivision (1), fails to comply with this
article and pay any penalty imposed under IC 6-8.1 for failure
to comply with this article;
the department may suspend the taxpayer's privilege of doing
business in Indiana for the remainder of the taxable year in which
the failure occurred and for any subsequent taxable year. Notice of
the suspension must be given under IC 4-21.5-3-4.
Sec. 3. A taxpayer may obtain administrative review of a
suspension under section 2 of this chapter under IC 4-21.5-3-7 and
judicial review of a final determination of the department under
IC 4-21.5-5. Judicial review shall be initiated by filing a petition in
the tax court. The tax court has exclusive jurisdiction over the
review.
Sec. 4. Except during any time that an order suspending a
taxpayer's privilege of doing business in Indiana is stayed under
IC 4-21.5:
(1) a taxpayer whose privilege of doing business in Indiana
has been suspended under this chapter is ineligible to enforce
any right or power accruing to the taxpayer after the
taxpayer receives written notice from the department that the
taxpayer's privilege of doing business in Indiana has been
suspended; and
(2) any contract entered into by the taxpayer after the
taxpayer has received written notice that the taxpayer's
privilege of doing business in Indiana has been suspended is
voidable by any other party to the contract.
Sec. 5. If:
(1) the department suspends a taxpayer's privilege of doing
business or a stay of an order suspending the taxpayer's
privilege of doing business in Indiana is terminated; and
(2) the department knows that the taxpayer is required by any
law to obtain a license or register with any state agency or
political subdivision to engage in doing business;
the department shall notify the state agency or political subdivision
that the taxpayer's privilege of doing business in Indiana has been
suspended. Upon receipt of the notification, the state agency or
political subdivision shall suspend the license or the rights accruing
from registration issued by the state agency or political
subdivision.
Sec. 6. An order suspending the privilege of doing business in
Indiana may be rescinded if the taxpayer:
(1) complies with this article; and
(2) pays the penalties imposed under IC 6-8.1 for violation of
this article.
Sec. 7. If an order suspending a taxpayer's privilege of doing
business in Indiana is rescinded or stayed, the department shall
notify each state agency and political subdivision described in
section 5 of this chapter of the action. Upon receipt of the notice,
each state agency and political subdivision shall reinstate any
license or rights accruing from registration if the taxpayer
otherwise qualifies for the license or registration and the taxpayer
pays any fees imposed to reinstate the license or registration.
rounded to the next additional cent.
research in connection with literacy, history, or similar projects.
(b) Transactions that:
(1) occur after June 30, 2003;
(2) occur before July 1, 2005; and
(3) involve research and development equipment;
are exempt from the state gross retail tax.
supervision of a college, a university, or any other
educational institution if no part of its income is used for the
private benefit or gain of any member, trustee, shareholder,
employee, or associate.
(B) Any:
(i) institution;
(ii) trust;
(iii) group;
(iv) united fund;
(v) affiliated agency of a united fund;
(vi) nonprofit corporation;
(vii) cemetery association; or
(viii) organization;
that is organized and operated exclusively for religious,
charitable, scientific, literary, educational, or civic purposes
if no part of its income is used for the private benefit or gain
of any member, trustee, shareholder, employee, or associate.
(C) A group, an organization, or a nonprofit corporation that
is organized and operated for fraternal or social purposes, or
as a business league or association, and not for the private
benefit or gain of any member, trustee, shareholder,
employee, or associate.
(D) A:
(i) hospital licensed by the state department of health;
(ii) shared hospital services organization exempt from
federal income taxation by Section 501(c)(3) or 501(e) of
the Internal Revenue Code;
(iii) labor union;
(iv) church;
(v) monastery;
(vi) convent;
(vii) school that is a part of the Indiana public school
system;
(viii) parochial school regularly maintained by a
recognized religious denomination; or
(ix) trust created for the purpose of paying pensions to
members of a particular profession or business who
created the trust for the purpose of paying pensions to each
other;
if the taxpayer is not organized or operated for private profit
or gain;
(2) the purchaser is a person confined to his home because of age,
sickness, or infirmity;
(3) the seller delivers the food to the purchaser; and
(4) the delivery is prescribed as medically necessary by a physician
licensed to practice medicine in Indiana.
(b) (c) Sales of food are exempt from the state gross retail tax, if the
seller is an organization described in IC 6-2.1-3-19, IC 6-2.1-3-20,
IC 6-2.1-3-21, or IC 6-2.1-3-22 subsection (b)(1), and the purchaser is
a patient in a hospital operated by the seller.
(d) To obtain the exemption provided by this section, a taxpayer
must file an application for exemption with the department:
(1) before January 1, 2003, under IC 6-2.1-3-19 (repealed); or
(2) not later than one hundred twenty (120) days after the
taxpayer's formation.
In addition, the taxpayer must file an annual report with the
department on or before the fifteenth day of the fifth month
following the close of each taxable year. If a taxpayer fails to file
the report, the department shall notify the taxpayer of the failure.
If within sixty (60) days after receiving such notice the taxpayer
does not provide the report, the taxpayer's exemption shall be
canceled. However, the department may reinstate the taxpayer's
exemption if the taxpayer shows by petition that the failure was
due to excusable neglect.
or student cooperative housing organization described in IC 6-2.1-3-19
section 21(b)(1)(A) of this chapter are exempt from the state gross
retail tax, if the purchaser:
(1) is a member of the fraternity, sorority, or student cooperative
housing organization; and
(2) is enrolled in the college, university, or educational institution
with which the fraternity, sorority, or student cooperative housing
organization is connected and by which it is supervised.
tangible personal property received by a retail merchant in
reciprocal exchange for tangible personal property of like kind.
(b) Transactions are exempt from the state gross retail tax to the
extent that the gross retail income from those transactions is derived
from gross receipts that are: exempt from the gross income tax under
IC 6-2.1-3-1 or IC 6-2.1-3-3.
(1) interest or other earnings paid on bonds or other securities
issued by the United States, to the extent the Constitution of the
United States prohibits the taxation of that income; or
(2) derived from business conducted in commerce between the
state and either another state or a foreign country, to the
extent the state is prohibited from taxing that gross income by
the Constitution of the United States.
one thousand dollars ($1,000), that person shall file the person's return
for a particular month and make the person's tax payment for that
month to the department not more than twenty (20) days after the end
of that month.
(b) If a person files a combined sales and withholding tax report and
either this section or IC 6-3-4-8.1 requires sales or withholding tax
reports to be filed and remittances to be made within twenty (20) days
after the end of each month, then the person shall file the combined
report and remit the sales and withholding taxes due within twenty (20)
days after the end of each month.
(c) Instead of the reporting periods required under subsection (a), the
department may permit a retail merchant to report and pay the
merchant's state gross retail and use taxes for a period covering:
(1) a calendar year, if the retail merchant's average monthly state
gross retail and use tax liability in the previous calendar year does
not exceed ten dollars ($10); or
(2) a calendar half year, if the retail merchant's average monthly
state gross retail and use tax liability in the previous calendar year
does not exceed twenty-five dollars ($25).
A retail merchant using a reporting period allowed under this
subsection must file the merchant's return and pay the merchant's tax
for a reporting period not later than the last day of the month
immediately following the close of that reporting period.
(d) If a retail merchant reports the merchant's adjusted gross income
tax, or the tax the merchant pays in place of the adjusted gross income
tax, over a fiscal year or fiscal quarter not corresponding to the
calendar year or calendar quarter, the merchant may, without prior
departmental approval, report and pay the merchant's state gross retail
and use taxes over the merchant's fiscal period that corresponds to the
calendar period the merchant is permitted to use under subsection (c).
However, the department may, at any time, require the retail merchant
to stop using the fiscal reporting period.
(e) If a retail merchant files a combined sales and withholding tax
report, the reporting period for the combined report is the shortest
period required under:
(1) this section;
(2) IC 6-3-4-8; or
(3) IC 6-3-4-8.1.
which contains the reporting period.
(b) A retail merchant's "income exclusion ratio" for a particular tax
year equals a fraction, the numerator of which is the retail merchant's
estimated total gross retail income for the tax year from unitary retail
transactions which produce gross retail income of less than ten nine
cents ($.10) ($0.09) each, and the denominator of which is the retail
merchant's estimated total gross retail income for the tax year from all
retail transactions.
(c) In order to minimize a retail merchant's recordkeeping
requirements, the department shall prescribe a procedure for
determining the retail merchant's income exclusion ratio for a tax year,
based on a period of time, not to exceed fifteen (15) consecutive days,
during the first quarter of the retail merchant's tax year. However, the
period of time may be changed if the change is requested by the retail
merchant because of his peculiar accounting procedures or marketing
factors. In addition, if a retail merchant has multiple sales locations or
diverse types of sales, the department shall permit the retail merchant
to determine the ratio on the basis of a representative sampling of the
locations and types of sales.
($0.001), of:
(i) (1) the price per unit before the addition of state and federal
taxes; multiplied by
(ii) five (2) six percent (5%). (6%).
The retail merchant shall collect the state gross retail tax prescribed in
this section even if the transaction is exempt from taxation under
IC 6-2.5-5.
(b) With respect to the sale of special fuel or kerosene which is
dispensed from a metered pump, unless the purchaser provides an
exemption certificate in accordance with IC 6-2.5-8-8, a retail merchant
shall collect, for each unit of special fuel or kerosene sold, state gross
retail tax in an amount equal to the product, rounded to the nearest
one-tenth of one cent ($.001), ($0.001), of:
(i) (1) the price per unit before the addition of state and federal
taxes; multiplied by
(ii) five (2) six percent (5%). (6%).
Unless the exemption certificate is provided, the retail merchant shall
collect the state gross retail tax prescribed in this section even if the
transaction is exempt from taxation under IC 6-2.5-5.
IC 6-6-2.5, or Section 4041 of the Internal Revenue Code.
(b) Concurrently with filing the report, the retail merchant shall remit
the state gross retail tax in an amount which equals one twenty-first
(1/21) five and sixty-six hundredths percent (5.66%) of the gross
receipts, including state gross retail taxes but excluding Indiana and
federal gasoline and special fuel taxes, received by the retail merchant
from the sale of the gasoline and special fuel that is covered by the
report and on which the retail merchant was required to collect state
gross retail tax. The retail merchant shall remit that amount regardless
of the amount of state gross retail tax which he has actually collected
under this chapter. However, the retail merchant is entitled to deduct
and retain the amounts prescribed in subsection (c), IC 6-2.5-6-10, and
IC 6-2.5-6-11.
(c) A retail merchant is entitled to deduct from the amount of state
gross retail tax required to be remitted under subsection (b) an amount
equal to:
(1) the sum of the prepayment amounts made during the period
covered by the retail merchant's report; minus
(2) the sum of prepayment amounts collected by the retail
merchant, in the merchant's capacity as a qualified distributor,
during the period covered by the retail merchant's report.
For purposes of this section, a prepayment of the gross retail tax is
presumed to occur on the date on which it is invoiced.
be deposited into the industrial rail service fund established under
IC 8-3-1.7-2.
(5) Seventeen hundredths of one percent (0.17%) of the collections
shall be deposited into the commuter rail service fund established
under IC 8-3-1.5-20.5.
the state level by any state. For taxable years beginning after
December 31, 2001, and before January 1, 2004, add an
amount equal to a deduction or deductions allowed or
allowable under Section 63, Section 805, or Section 831(c) of
the Internal Revenue Code for taxes on property levied by a
state or subdivision of a state of the United States.
(4) Subtract an amount equal to the amount included in the
company's taxable income under Section 78 of the Internal
Revenue Code.
(e)".
Page 17, delete lines 1 through 22, begin a new paragraph and insert:
unless the department adopts specific rules that supersede the
regulation.
(c) An amendment to the Internal Revenue Code made by an act
passed by Congress before January 1, 2001, that is effective for any
taxable year that began before January 1, 2001, and that affects:
(1) individual adjusted gross income (as defined in Section 62 of
the Internal Revenue Code);
(2) corporate taxable income (as defined in Section 63 of the
Internal Revenue Code);
(3) trust and estate taxable income (as defined in Section 641(b) of
the Internal Revenue Code);
(4) life insurance company taxable income (as defined in Section
801(b) of the Internal Revenue Code);
(5) mutual insurance company taxable income (as defined in
Section 821(b) of the Internal Revenue Code); or
(6) taxable income (as defined in Section 832 of the Internal
Revenue Code);
is also effective for that same taxable year for purposes of determining
adjusted gross income under IC 6-3-1-3.5 and net income under
IC 6-3-8-2(b). section 3.5 of this chapter.
on that part of the adjusted gross income derived from sources within
Indiana of every corporation.
determined by multiplying the business income derived from sources
both within and without the state of Indiana by a fraction, the
numerator of which is the property factor plus the payroll factor plus
the sales factor, and the denominator of which is three (3). However,
after a period of two (2) consecutive quarters of income growth and one
(1) additional quarter (regardless of any income growth), the fraction
shall be computed as follows:
(1) For all taxable years that begin within the first calendar year
immediately following the period, the numerator of the fraction is
the sum of the property factor plus the payroll factor plus one
hundred thirty-three percent (133%) of the sales factor, and the
denominator of the fraction is three and thirty-three hundredths
(3.33).
(2) For all taxable years that begin within the second calendar year
following the period, the numerator of the fraction is the property
factor plus the payroll factor plus one hundred sixty-seven percent
(167%) of the sales factor, and the denominator of the fraction is
three and sixty-seven hundredths (3.67).
(3) For all taxable years beginning on or after January 1 of the third
calendar year following the period, the numerator of the fraction is
the property factor plus the payroll factor plus two hundred percent
(200%) of the sales factor, and the denominator of the fraction is
four (4).
For purposes of this subsection, income growth occurs when the state's
nonfarm personal income for a calendar quarter increases in
comparison with the state's nonfarm personal income for the
immediately preceding quarter at an annualized compound rate of five
percent (5%) or more, as determined by the budget agency based on
current dollar figures provided by the Bureau of Economic Analysis of
the United States Department of Commerce or its successor agency.
The annualized compound rate shall be computed in accordance with
the formula (1+N)4-1, where N equals the percentage change in the
state's current dollar nonfarm personal income from one (1) quarter to
the next. As soon as possible after two (2) consecutive quarters of
income growth, the budget agency shall advise the department of the
growth.
(c) The property factor is a fraction, the numerator of which is the
average value of the taxpayer's real and tangible personal property
owned or rented and used in this state during the taxable year and the
denominator of which is the average value of all the taxpayer's real and
tangible personal property owned or rented and used during the taxable
year. However, with respect to a foreign corporation, the denominator
does not include the average value of real or tangible personal property
owned or rented and used in a place that is outside the United States.
Property owned by the taxpayer is valued at its original cost. Property
rented by the taxpayer is valued at eight (8) times the net annual rental
rate. Net annual rental rate is the annual rental rate paid by the taxpayer
less any annual rental rate received by the taxpayer from subrentals.
The average of property shall be determined by averaging the values at
the beginning and ending of the taxable year but the department may
require the averaging of monthly values during the taxable year if
reasonably required to reflect properly the average value of the
taxpayer's property.
(d) The payroll factor is a fraction, the numerator of which is the total
amount paid in this state during the taxable year by the taxpayer for
compensation, and the denominator of which is the total compensation
paid everywhere during the taxable year. However, with respect to a
foreign corporation, the denominator does not include compensation
paid in a place that is outside the United States. Compensation is paid
in this state if:
(1) the individual's service is performed entirely within the state;
(2) the individual's service is performed both within and without
this state, but the service performed without this state is incidental
to the individual's service within this state; or
(3) some of the service is performed in this state and:
(A) the base of operations or, if there is no base of operations,
the place from which the service is directed or controlled is in
this state; or
(B) the base of operations or the place from which the service is
directed or controlled is not in any state in which some part of
the service is performed, but the individual is a resident of this
state.
(e) The sales factor is a fraction, the numerator of which is the total
sales of the taxpayer in this state during the taxable year, and the
denominator of which is the total sales of the taxpayer everywhere
during the taxable year. Sales include receipts from intangible property
and receipts from the sale or exchange of intangible property. However,
with respect to a foreign corporation, the denominator does not include
sales made in a place that is outside the United States. Receipts from
intangible personal property are derived from sources within Indiana
if the receipts from the intangible personal property are attributable to
Indiana under section 2.2 of this chapter. Sales of tangible personal
property are in this state if:
(1) the property is delivered or shipped to a purchaser, other than
the United States government, within this state, regardless of the
f.o.b. point or other conditions of the sale; or
(2) the property is shipped from an office, a store, a warehouse, a
factory, or other place of storage in this state and:
(A) the purchaser is the United States government; or
(B) the taxpayer is not taxable in the state of the purchaser.
Gross receipts derived from commercial printing as described in
IC 6-2.1-2-4 shall be treated as sales of tangible personal property for
purposes of this chapter.
(f) Sales, other than receipts from intangible property covered by
subsection (e) and sales of tangible personal property, are in this state
if:
(1) the income-producing activity is performed in this state; or
(2) the income-producing activity is performed both within and
without this state and a greater proportion of the income-producing
activity is performed in this state than in any other state, based on
costs of performance.
(g) Rents and royalties from real or tangible personal property,
capital gains, interest, dividends, or patent or copyright royalties, to the
extent that they constitute nonbusiness income, shall be allocated as
provided in subsections (h) through (k).
(h)(1) Net rents and royalties from real property located in this state
are allocable to this state.
(2) Net rents and royalties from tangible personal property are
allocated to this state:
(i) if and to the extent that the property is utilized in this state; or
(ii) in their entirety if the taxpayer's commercial domicile is in this
state and the taxpayer is not organized under the laws of or taxable
in the state in which the property is utilized.
(3) The extent of utilization of tangible personal property in a state
is determined by multiplying the rents and royalties by a fraction, the
numerator of which is the number of days of physical location of the
property in the state during the rental or royalty period in the taxable
year, and the denominator of which is the number of days of physical
location of the property everywhere during all rental or royalty periods
in the taxable year. If the physical location of the property during the
rental or royalty period is unknown or unascertainable by the taxpayer,
tangible personal property is utilized in the state in which the property
was located at the time the rental or royalty payer obtained possession.
(i)(1) Capital gains and losses from sales of real property located in
this state are allocable to this state.
(2) Capital gains and losses from sales of tangible personal property
are allocable to this state if:
(i) the property had a situs in this state at the time of the sale; or
(ii) the taxpayer's commercial domicile is in this state and the
taxpayer is not taxable in the state in which the property had a
situs.
(3) Capital gains and losses from sales of intangible personal
property are allocable to this state if the taxpayer's commercial
domicile is in this state.
(j) Interest and dividends are allocable to this state if the taxpayer's
commercial domicile is in this state.
(k)(1) Patent and copyright royalties are allocable to this state:
(i) if and to the extent that the patent or copyright is utilized by the
taxpayer in this state; or
(ii) if and to the extent that the patent or copyright is utilized by the
taxpayer in a state in which the taxpayer is not taxable and the
taxpayer's commercial domicile is in this state.
(2) A patent is utilized in a state to the extent that it is employed in
production, fabrication, manufacturing, or other processing in the
state or to the extent that a patented product is produced in the
state. If the basis of receipts from patent royalties does not permit
allocation to states or if the accounting procedures do not reflect
states of utilization, the patent is utilized in the state in which the
taxpayer's commercial domicile is located.
(3) A copyright is utilized in a state to the extent that printing or
other publication originates in the state. If the basis of receipts
from copyright royalties does not permit allocation to states or if
the accounting procedures do not reflect states of utilization, the
copyright is utilized in the state in which the taxpayer's commercial
domicile is located.
(l) If the allocation and apportionment provisions of this article do
not fairly represent the taxpayer's income derived from sources within
the state of Indiana, the taxpayer may petition for or the department
may require, in respect to all or any part of the taxpayer's business
activity, if reasonable:
(1) separate accounting;
(2) the exclusion of any one (1) or more of the factors;
(3) the inclusion of one (1) or more additional factors which will
fairly represent the taxpayer's income derived from sources within
the state of Indiana; or
(4) the employment of any other method to effectuate an equitable
allocation and apportionment of the taxpayer's income.
(m) In the case of two (2) or more organizations, trades, or businesses
owned or controlled directly or indirectly by the same interests, the
department shall distribute, apportion, or allocate the income derived
from sources within the state of Indiana between and among those
organizations, trades, or businesses in order to fairly reflect and report
the income derived from sources within the state of Indiana by various
taxpayers.
(n) For purposes of allocation and apportionment of income under
this article, a taxpayer is taxable in another state if:
(1) in that state the taxpayer is subject to a net income tax, a
franchise tax measured by net income, a franchise tax for the
privilege of doing business, or a corporate stock tax; or
(2) that state has jurisdiction to subject the taxpayer to a net
income tax regardless of whether, in fact, the state does or does
not.
(o) Notwithstanding subsections (l) and (m), the department may not,
under any circumstances, require that income, deductions, and credits
attributable to a taxpayer and another entity be reported in a combined
income tax return for any taxable year, if the other entity is:
(1) a foreign corporation; or
(2) a corporation that is classified as a foreign operating
corporation for the taxable year by section 2.4 of this chapter.
(p) Notwithstanding subsections (l) and (m), the department may not
require that income, deductions, and credits attributable to a taxpayer
and another entity not described in subsection (o)(1) or (o)(2) be
reported in a combined income tax return for any taxable year, unless
the department is unable to fairly reflect the taxpayer's adjusted gross
income for the taxable year through use of other powers granted to the
department by subsections (l) and (m).
(q) Notwithstanding subsections (o) and (p), one (1) or more
taxpayers may petition the department under subsection (l) for
permission to file a combined income tax return for a taxable year. The
petition to file a combined income tax return must be completed and
filed with the department not more than thirty (30) days after the end
of the taxpayer's taxable year.
(r) This subsection applies to a corporation that is a life
insurance company (as defined in Section 816(a) of the Internal
Revenue Code) or an insurance company that is subject to tax
under Section 831 of the Internal Revenue Code. The corporation's
adjusted gross income that is derived from sources within Indiana
is determined by multiplying the corporation's adjusted gross
income by a fraction:
(1) the numerator of which is the direct premiums and annuity
considerations received during the taxable year for insurance
upon property or risks in the state; and
(2) the denominator of which is the direct premiums and
annuity considerations received during the taxable year for
insurance upon property or risks everywhere.
The term "direct premiums and annuity considerations" means the
gross premiums received from direct business as reported in the
corporation's annual statement filed with the department of
insurance.
printer;
(3) the activities of any kind performed by or on behalf of that
entity at the Indiana premises of the commercial printer; and
(4) the activities performed by the commercial printer in Indiana
for or on behalf of that entity;
shall not cause that entity to have adjusted gross income derived from
sources within Indiana for purposes of the taxes imposed by this
chapter, and IC 6-3-8, unless that entity engages in other activities in
Indiana away from the premises of the commercial printer that exceed
the protection of 15 U.S.C. 381.
derived from sources within Indiana shall be determined in the same
manner that the amount of the taxpayer's income derived from sources
within Indiana is determined, under section 2 of this chapter, for the
same taxable year during which each loss was incurred. Also, for
purposes of STEP TWO of subsection (a), the following procedures
apply:
(1) The taxpayer's net operating loss for a particular taxable year
shall be treated as a positive number.
(2) A modification that is to be added to federal adjusted gross
income or federal taxable income under IC 6-3-1-3.5 shall be
treated as a negative number.
(3) A modification that is to be subtracted from federal adjusted
gross income or federal taxable income under IC 6-3-1-3.5 shall be
treated as a positive number.
(4) A net operating loss under this section shall be considered
even though, in the year the taxpayer incurred the loss, the
taxpayer was not subject to the tax imposed under section 1 of
this chapter because the taxpayer was:
(A) a life insurance company (as defined in Section 816(a) of
the Internal Revenue Code); or
(B) an insurance company subject to tax under Section 831
of the Internal Revenue Code.
IC 6-8.1-10.
(3) Banks and trust companies, national banking associations,
savings banks, building and loan associations, and savings and
loan associations.
(4) Insurance companies subject to tax under IC 27-1-18-2,
including a domestic insurance company that elects to be taxed
under IC 27-1-18-2.
(5) International banking facilities (as defined in Regulation D of
the Board of Governors of the Federal Reserve System (12 CFR
204)).
dollars ($2,000). ($4,000).
(c) The deduction provided by this section does not apply to an
individual who rents a dwelling that is exempt from Indiana property
tax.
(d) For purposes of this section, a "dwelling" includes a single family
dwelling and unit of a multi-family dwelling.
pay the tax to the department on or before April 20, June 20,
September 20, and December 20 of the taxable year. If a taxpayer
uses a taxable year that does not end on December 31, the due
dates for filing estimated adjusted gross income tax returns and
paying the tax are on or before the twentieth day of the fourth,
sixth, ninth, and twelfth months of the taxpayer's taxable year. The
department shall prescribe the manner and forms for such reporting and
payment.
(e) The penalty prescribed by IC 6-8.1-10-2.1(b) shall be assessed by
the department on corporations failing to make payments as required
in subsection (d) or (g). However, no penalty shall be assessed as to
any estimated payments of adjusted gross income tax plus
supplemental net income tax plus gross income tax which equal or
exceed:
(1) twenty percent (20%) of the final tax liability for such taxable
year; or
(2) twenty-five percent (25%) of the final tax liability for the
taxpayer's previous taxable year.
In addition, the penalty as to any underpayment of tax on an estimated
return shall only be assessed on the difference between the actual
amount paid by the corporation on such estimated return and
twenty-five percent (25%) of the sum of the corporation's final adjusted
gross income tax plus supplemental net income tax liability for such
taxable year.
(f) The provisions of subsection (d) requiring the reporting and
estimated payment of adjusted gross income tax shall be applicable
only to corporations having an adjusted gross income tax liability
which, after application of the credit allowed by IC 6-3-3-2, shall
exceed one thousand dollars ($1,000) for its taxable year.
(g) If the department determines that a corporation's:
(1) estimated quarterly adjusted gross income tax liability for the
current year; or
(2) average estimated quarterly adjusted gross income tax liability
for the preceding year;
exceeds, before January 1, 1998, twenty thousand dollars ($20,000),
and, after December 31, 1997, ten thousand dollars ($10,000), after the
credit allowed by IC 6-3-3-2, the corporation shall pay the estimated
adjusted gross income taxes due by electronic funds transfer (as
defined in IC 4-8.1-2-7) or by delivering in person or overnight by
courier a payment by cashier's check, certified check, or money order
to the department. The transfer or payment shall be made on or before
the date the tax is due.
(h) If a corporation's adjusted gross income tax payment is made by
electronic funds transfer, the corporation is not required to file an
estimated adjusted gross income tax return.
calendar year does not exceed twenty-five dollars ($25); or
(3) a three (3) month reporting period, if the average monthly
amount of all tax required to be withheld by the employer in the
previous calendar year does not exceed seventy-five dollars ($75).
An employer using a reporting period (other than a monthly reporting
period) must file the employer's return and pay the tax for a reporting
period no later than the last day of the month immediately following
the close of the reporting period. If an employer files a combined sales
and withholding tax report, the reporting period for the combined
report is the shortest period required under this section, section 8.1 of
this chapter, or IC 6-2.5-6-1.
(c) For purposes of determining whether an employee is subject to
taxation under IC 6-3.5, an employer is entitled to rely on the statement
of his an employee as to his the employee's county of residence as
represented by the statement of address in forms claiming exemptions
for purposes of withholding, regardless of when the employee supplied
the forms. Every employee shall notify his the employee's employer
within five (5) days after any change in his the employee's county of
residence.
(d) A county that makes payments of wages subject to tax under
IC 6-3:
(1) to a precinct election officer (as defined in IC 3-5-2-40.1); and
(2) for the performance of the duties of the precinct election officer
imposed by IC 3 that are performed on election day;
is not required, at the time of payment of the wages, to deduct and
retain from the wages the amount prescribed in withholding
instructions issued by the department.
(e) Every employer shall, at the time of each payment made by him
the employer to the department, deliver to the department a return
upon the form prescribed by the department showing:
(1) the total amount of wages paid to his the employer's
employees;
(2) the amount deducted therefrom in accordance with the
provisions of the Internal Revenue Code;
(3) the amount of adjusted gross income tax deducted therefrom in
accordance with the provisions of this section;
(4) the amount of income tax, if any, imposed under IC 6-3.5 and
deducted therefrom in accordance with this section; and
part thereof may be applied to any taxes or other claim due from the
taxpayer to the state of Indiana or any subdivision thereof. No refund
shall be made to an employee who fails to file his the employee's
return or returns as required under IC 6-3 and IC 6-3.5 within two (2)
years from the due date of the return or returns. In the event that the
excess tax deducted is less than one dollar ($1), no refund shall be
made.
(i) This section shall in no way relieve any taxpayer from his the
taxpayer's obligation of filing a return or returns at the time required
under IC 6-3 and IC 6-3.5, and, should the amount withheld under the
provisions of this section be insufficient to pay the total tax of such
taxpayer, such unpaid tax shall be paid at the time prescribed by
section 5 of this chapter.
(j) Notwithstanding subsection (b), an employer of a domestic service
employee that enters into an agreement with the domestic service
employee to withhold federal income tax under Section 3402 of the
Internal Revenue Code may withhold Indiana income tax on the
domestic service employee's wages on the employer's Indiana
individual income tax return in the same manner as allowed by Section
3510 of the Internal Revenue Code.
(k) To the extent allowed by Section 1137 of the Social Security Act,
an employer of a domestic service employee may report and remit state
unemployment insurance contributions on the employee's wages on the
employer's Indiana individual income tax return in the same manner as
allowed by Section 3510 of the Internal Revenue Code.
(l) An employer is exempt from the withholding requirements of
this section for an individual if the individual certifies to the
employer, on forms prescribed by the department, that the
individual's wages from the employer for the calendar year will:
(1) comprise more than eighty percent (80%) of the
individual's Indiana total income (as defined in IC 6-3.1-21-3);
and
(2) not exceed fifteen thousand dollars ($15,000).
(m) A person who knowingly fails to remit trust fund money as set
forth in this section commits a Class D felony.
taxpayer who is eligible for the credit under this chapter for the taxable
year in which the Indiana qualified research expense is incurred.
the state corporation is not exempt from employment taxes or taxes
imposed by a county or by a municipal corporation.
taxpayer is entitled under this chapter.
(c) A taxpayer that is subject to the financial institutions tax may
apply the credit provided by this chapter against the taxpayer's financial
institutions tax liability for the taxable year.
Department of the Treasury that the organization is exempt from
income taxation under the provisions of the Internal Revenue
Code; and
(B) from the department of state revenue that the organization is
exempt from income taxation under IC 6-2.1-3-20.
"Person" means any individual subject to Indiana gross or adjusted
gross income tax.
"State fiscal year" means a twelve (12) month period beginning on July
1 and ending on June 30.
"State tax liability" means the taxpayer's total tax liability that is
incurred under:
(1) IC 6-2.1 (gross income tax);
(2) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
and
(3) IC 6-5.5 (the financial institutions tax);
as computed after the application of the credits that, under
IC6-3.1-1-2, are to be applied before the credit provided by this
chapter.
"Tax credit" means a deduction from any tax otherwise due and
payable under IC 6-2.1, IC 6-3, or IC 6-5.5.
and loan association tax liability (IC 6-5-11) for the taxable year.
(5) (3) Against the taxpayer's insurance premiums tax liability (IC
27-1-18-2) for the taxable year.
(6) (4) Against the taxpayer's financial institutions tax (IC 6-5.5)
for the taxable year.
(b) Whenever the tax paid by the taxpayer under any of the tax
provisions listed in subsection (a) is a credit against the liability or a
deduction in determining the tax base under another Indiana tax
provision, the credit or deduction shall be computed without regard to
the credit to which a taxpayer is entitled under this chapter.
liability" means a taxpayer's total tax liability incurred under:
(1) IC 6-2.1 (the gross income tax);
(2) IC 6-2.5 (the state gross retail and use tax);
(3) (3) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(4) IC 6-3-8 (the supplemental net income tax);
(5) IC 6-5-10 (the bank tax);
(6) IC 6-5-11 (the savings and loan association tax);
(7) (4) IC 6-5.5 (the financial institutions tax); and
(8) (5) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under IC 6-3.1-1-2
are to be applied before the credit provided by this chapter.
chapter each taxable year on that consolidated return. A taxpayer that
is a partnership, joint venture, or pool is entitled to only one (1) credit
under this chapter each taxable year, regardless of the number of
partners or participants in the organization.
(c) A utility company is not entitled to claim the credit under this
chapter.
property in that year.
(b) A taxpayer that receives a credit for a qualified investment
under IC 6-3.1-13.5 is not entitled to a credit under this chapter for
ad valorem property taxes paid on the property that constitutes the
qualified investment.
(c) A taxpayer that receives a credit for ad valorem property
taxes under IC 6-3.1-22.2 is not entitled to a credit under this
chapter for personal property with respect to which a credit was
granted under IC 6-3.1-22.2.
Sec. 8. If the amount of the credit determined under section 7 of
this chapter for a taxpayer in a taxable year exceeds the taxpayer's
state tax liability for that taxable year, the excess shall be refunded
to the taxpayer.
Sec. 9. If a pass through entity does not have state income tax
liability against which the tax credit may be applied, a shareholder
or partner of the pass through entity is entitled to a tax credit equal
to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder or partner is entitled.
Sec. 10. (a) To receive the credit provided by this chapter, a
taxpayer must claim the credit on the taxpayer's state tax return
or returns in the manner prescribed by the department. The
taxpayer shall submit to the department proof of payment of an ad
valorem property tax and all information that the department
determines is necessary for the calculation of the credit provided
by this chapter.
(b) If the department determines that property taxes for which
a credit was granted under this chapter have been reduced, the
department shall make an assessment against the taxpayer under
IC 6-8.1 equal to the difference between:
(1) the amount of the credit that was granted under this
chapter; and
(2) the amount of the credit that would have been granted
under this chapter if the property tax reduction had been in
effect at the time the credit was granted under this chapter.
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004]:
Chapter 25. Headquarters Relocation Tax Credit
Sec. 1. As used in this chapter, "corporate headquarters" means
the building or buildings where:
(1) the principal offices of the principal executive officers of an
eligible business are located; and
(2) at least two hundred fifty (250) employees are employed.
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 in a state other than
Indiana as of January 1, 2003;
(3) had annual worldwide revenues of at least twenty-five
billion dollars ($25,000,000,000) for the year immediately
preceding the business's application for a tax credit under
section 12 of this chapter; and
(4) is prepared to commit contractually to relocating its
corporate headquarters to Indiana.
Sec. 3. As used in this chapter, "pass through entity" means:
(1) a corporation that is exempt from the adjusted gross
income tax under IC 6-3-2-2.8(2);
(2) a partnership;
(3) a limited liability company; or
(4) a limited liability partnership.
Sec. 4. As used in this chapter, "qualifying project" means the
relocation of the corporate headquarters of an eligible business
from a location outside Indiana to a location in Indiana.
Sec. 5. As used in this chapter, "relocation costs" means the
reasonable and necessary expenses incurred by an eligible business
for a qualifying project. The term includes:
(1) moving costs and related expenses;
(2) the purchase of new or replacement equipment;
(3) capital investment costs; and
(4) property assembly and development costs, including:
(A) the purchase, lease, or construction of buildings and
land;
(B) infrastructure improvements; and
(C) site development costs.
The term does not include any costs that do not directly result from
the relocation of the business to a location in Indiana.
Sec. 6. As used in this chapter, "state tax liability" means a
taxpayer's total tax liability that is incurred under:
(1) IC 6-2.1 (the gross income tax);
(2) IC 6-2.5 (state gross retail and use tax);
(3) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
(4) IC 6-3-8 (the supplemental corporate net income tax);
(5) IC 6-5-10 (the bank tax);
(6) IC 6-5-11 (the savings and loan association tax);
(7) IC 6-5.5 (the financial institutions tax); and
(8) IC 27-1-18-2 (the insurance premiums tax);
as computed after the application of the credits that under
IC 6-3.1-1-2 are to be applied before the credit provided by this
chapter.
Sec. 7. As used in this chapter, "taxpayer" means an individual
or entity that has any state tax liability.
Sec. 8. A taxpayer that:
(1) is an eligible business;
(2) completes a qualifying project; and
(3) incurs relocation costs;
is entitled to a credit against the person'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.
Sec. 9. (a) Subject to subsection (b), the amount of the credit to
which a taxpayer is entitled under section 8 of this chapter equals
the product of:
(1) fifty percent (50%); multiplied by
(2) the amount of the taxpayer's relocation costs in the taxable
year.
(b) The credit to which a taxpayer is entitled under section 8 of
this chapter may not reduce the taxpayer's state tax liability below
the amount of the taxpayer's state tax liability in the taxable year
immediately preceding the taxable year in which the taxpayer first
incurred relocation costs.
Sec. 10. If a pass through entity is entitled to a credit under
section 8 of this chapter but does not have state tax liability against
which the tax credit may be applied, a shareholder, partner, or
member of the pass through entity is entitled to a tax credit equal
to:
(1) the tax credit determined for the pass through entity for the
taxable year; multiplied by
(2) the percentage of the pass through entity's distributive
income to which the shareholder, partner, or member is
entitled.
Sec. 11. The total value of a tax credit under this chapter shall be
divided equally over ten (10) years, beginning with the year in
which the credit is granted. If the amount of credit provided under
this chapter for a taxpayer in a taxable year exceeds the taxpayer's
state tax liability for that taxable year, the taxpayer may carry the
excess over to subsequent taxable years. The amount of the credit
carryover from a taxable year shall be reduced to the extent that
the carryover is used by the taxpayer to obtain a credit under this
chapter for any subsequent taxable year.
Sec. 12. To receive the credit provided by this chapter, a taxpayer
must claim the credit on the taxpayer's state tax return or returns
in the manner prescribed by the department. The taxpayer shall
submit to the department proof of the taxpayer's relocation costs
and all information that the department determines is necessary
for the calculation of the credit provided by this chapter.
Sec. 13. In determining whether an expense of the eligible
business directly resulted from the relocation of the business, the
department shall consider whether the expense would likely have
been incurred by the eligible business if the business had not
relocated from its original location.
one (1) or more of the counties, then the property tax replacement
credits received from each county shall be used only to reduce the
property tax rates that are imposed within the county that distributed
the property tax replacement credits.
(c) A civil taxing unit shall treat any property tax replacement credits
that it receives or is to receive during a particular calendar year as a
part of its property tax levy for that same calendar year for purposes of
fixing its budget and for purposes of the property tax levy limits
imposed by IC 6-1.1-18.5.
(d) A school corporation shall treat any property tax replacement
credits that the school corporation receives or is to receive during a
particular calendar year as a part of its property tax levy for its general
fund, debt service fund, capital projects fund, transportation fund,
school bus replacement fund, and special education preschool fund
in proportion to the levy for each of these funds for that same calendar
year for purposes of fixing its budget and for purposes of the property
tax levy limits imposed by IC 6-1.1-19. A school corporation shall
allocate the property tax replacement credits described in this
subsection to all five (5) funds in proportion to the levy for each fund.
county's welfare administration fund; plus
(B) after December 31, 2002, the greater of zero (0) or the
difference between:
(i) the county hospital care for the indigent property tax levy
imposed by the county in 2002, adjusted each year after 2002
by the statewide average assessed value growth quotient
described in IC 12-16-14-3; minus
(ii) the current uninsured parents program property tax levy
imposed by the county; the sum of the county's welfare
revenue and human service fund revenue, as determined
under IC 6-1.1-44; divided by
(2) the sum of the maximum permissible property tax levies under
IC 6-1.1-18.5 for all civil taxing units of the county, plus an
amount equal to
(A) the property taxes imposed by the county in 1999 for the
county's welfare administration fund; plus
(B) after December 31, 2002, the greater of zero (0) or the
difference between:
(i) the county hospital care for the indigent property tax levy
imposed by the county in 2002, adjusted each year after 2002
by the statewide average assessed value growth quotient
described in IC 12-16-14-3; minus
(ii) the current uninsured parents program property tax levy
imposed by the county.
sum of the county's welfare revenue and human service fund
revenue, as determined under IC 6-1.1-44.
revenue, as determined under IC 6-1.1-44.
(B) The denominator of the fraction equals the sum of the total
property taxes that are first due and payable to all civil taxing
units of the county during the calendar year in which the month
falls, plus an amount equal to the property taxes imposed by the
county in 1999 for the county's welfare fund and welfare
administration fund, and after December 31, 2002, the greater of
zero (0) or the difference between the county hospital care for
the indigent property tax levy imposed by the county in 2002,
adjusted each year after 2002 by the statewide average assessed
value growth quotient described in IC 12-16-14-3, minus the
current uninsured parents program property tax levy imposed by
the county. sum of the county's welfare revenue and human
service fund revenue, as determined under IC 6-1.1-44.
(f) The state board of tax commissioners shall provide each county
auditor with the fractional amount of distributive shares that each civil
taxing unit in the auditor's county is entitled to receive monthly under
this section.
(g) Notwithstanding subsection (e), if a civil taxing unit of an
adopting county does not impose a property tax levy that is first due
and payable in a calendar year in which distributive shares are being
distributed under this section, that civil taxing unit is entitled to receive
a part of the revenue to be distributed as distributive shares under this
section within the county. The fractional amount such a civil taxing
unit is entitled to receive each month during that calendar year equals
the product of the following:
(1) The amount to be distributed as distributive shares during that
month; multiplied by
(2) A fraction. The numerator of the fraction equals the budget of
that civil taxing unit for that calendar year. The denominator of the
fraction equals the aggregate budgets of all civil taxing units of that
county for that calendar year.
(h) If for a calendar year a civil taxing unit is allocated a part of a
county's distributive shares by subsection (g), then the formula used in
subsection (e) to determine all other civil taxing units' distributive
shares shall be changed each month for that same year by reducing the
amount to be distributed as distributive shares under subsection (e) by
the amount of distributive shares allocated under subsection (g) for that
same month. The state board of tax commissioners shall make any
adjustments required by this subsection and provide them to the
appropriate county auditors.
(i) Notwithstanding any other law, a county fiscal body may pledge
revenues received under this chapter to the payment of bonds or lease
rentals to finance a qualified economic development tax project under
IC 36-7-27 in that county or in any other county if the county fiscal
body determines that the project will promote significant opportunities
for the gainful employment or retention of employment of the county's
residents.
described in IC 12-16-14-3, minus the current uninsured
parents program property tax levy imposed by the
county; sum of the county's welfare revenue and
human service fund revenue, as determined under
IC 6-1.1-44; divided by
(B) the sum of the maximum permissible property tax levies
under IC 6-1.1-18.5 and IC 6-1.1-18.6 for all civil taxing
units of the county during the calendar year in which the
month falls, and an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund
and welfare administration fund and after December 31,
2002, the greater of zero (0) or the difference between the
county hospital care for the indigent property tax levy
imposed by the county in 2002, adjusted each year after 2002
by the statewide average assessed value growth quotient
described in IC 12-16-14-3, minus the current uninsured
parents program property tax levy imposed by the county.
sum of the county's welfare revenue and human service
fund revenue, as determined under IC 6-1.1-44.
STEP SIX: If the STEP THREE result is greater than zero (0),
the STEP ONE amount shall be distributed by multiplying the
STEP ONE amount by the ratio established under subdivision
(1).
STEP SEVEN: For each taxing unit determine the STEP FIVE
ratio multiplied by the STEP TWO amount.
STEP EIGHT: For each civil taxing unit determine the
difference between the STEP SEVEN amount minus the
product of the STEP ONE amount multiplied by the ratio
established under subdivision (1). The STEP THREE excess
shall be distributed as provided in STEP NINE only to the civil
taxing units that have a STEP EIGHT difference greater than or
equal to zero (0).
STEP NINE: For the civil taxing units qualifying for a
distribution under STEP EIGHT, each civil taxing unit's share
equals the STEP THREE excess multiplied by the ratio of:
(A) the maximum permissible property tax levy under
IC 6-1.1-18.5 and IC 6-1.1-18.6 for the qualifying civil taxing
unit during the calendar year in which the month falls, plus,
for a county an amount equal to the property taxes imposed
by the county in 1999 for the county's welfare fund and
welfare administration fund and after December 31, 2002, the
greater of zero (0) or the difference between the county
hospital care for the indigent property tax levy imposed by
the county in 2002, adjusted each year after 2002 by the
statewide average assessed value growth quotient described
in IC 12-16-14-3, minus the current uninsured parents
program property tax levy imposed by the county; sum of the
county's welfare revenue and human service fund
revenue, as determined under IC 6-1.1-44; divided by
(B) the sum of the maximum permissible property tax levies
under IC 6-1.1-18.5 and IC 6-1.1-18.6 for all qualifying civil
taxing units of the county during the calendar year in which
the month falls, and an amount equal to the property taxes
imposed by the county in 1999 for the county's welfare fund
and welfare administration fund and after December 31,
2002, the greater of zero (0) or the difference between the
county hospital care for the indigent property tax levy
imposed by the county in 2002, adjusted each year after 2002
by the statewide average assessed value growth quotient
described in IC 12-16-14-3, minus the current uninsured
parents program property tax levy imposed by the county.
sum of the county's welfare revenue and human service
fund revenue, as determined under IC 6-1.1-44.
having a population of at least forty-five thousand (45,000) but not
more than forty-seven thousand (47,000).
(b) The county council may by ordinance determine that, in order to
promote the development of libraries in the county and thereby
encourage economic development, it is necessary to use economic
development income tax revenue to replace library property taxes in
the county. However, a county council may adopt an ordinance under
this subsection only if all territory in the county is included in a library
district.
(c) If the county council makes a determination under subsection
(b), the county council may designate the county economic
development income tax revenue generated by the tax rate adopted
under section 5 of this chapter, or revenue generated by a portion of the
tax rate, as revenue that will be used to replace public library property
taxes imposed by public libraries in the county. The county council
may not designate for library property tax replacement purposes any
county economic development income tax revenue that is generated by
a tax rate of more than fifteen-hundredths percent (0.15%).
(d) The county treasurer shall establish a library property tax
replacement fund to be used only for the purposes described in this
section. County economic development income tax revenues derived
from the portion of the tax rate designated for property tax replacement
credits under subsection (c) shall be deposited in the library property
tax replacement fund before certified distributions are made under
section 12 of this chapter.
(e) The amount of county economic development income tax
revenue dedicated to providing library property tax replacement credits
shall, in the manner prescribed in this section, be allocated to public
libraries operating in the county and shall be used by those public
libraries as property tax replacement credits. The amount of property
tax replacement credits that each public library in the county is entitled
to receive during a calendar year under this section equals the lesser of:
(1) the product of:
(A) the amount of revenue deposited by the county auditor in
the library property tax replacement fund; multiplied by
(B) a fraction described as follows:
(i) The numerator of the fraction equals the sum of the total
property taxes that would have been collected by the publIC
library during the previous calendar year from taxpayers
located within the library district if the property tax
replacement under this section had not been in effect.
(ii) The denominator of the fraction equals the sum of the
total property taxes that would have been collected during the
previous year from taxpayers located within the county by all
public libraries that are eligible to receive property tax
replacement credits under this section if the property tax
replacement under this section had not been in effect; or
(2) the total property taxes that would otherwise be collected by
the public library for the calendar year if the property tax
replacement credit under this section were not in effect.
The state board of tax commissioners department of local
government finance shall make any adjustments necessary to account
for the expansion of a library district. However, a public library is
eligible to receive property tax replacement credits under this section
only if it has entered into reciprocal borrowing agreements with all
other public libraries in the county. If the total amount of county
economic development income tax revenue deposited by the county
auditor in the library property tax replacement fund for a calendar year
exceeds the total property tax liability that would otherwise be imposed
for public libraries in the county for the year, the excess shall remain
in the library property tax replacement fund and shall be used for
library property tax replacement purposes in the following calendar
year.
(f) Notwithstanding subsection (e), if a public library did not impose
a property tax levy during the previous calendar year, that publIC
library is entitled to receive a part of the property tax replacement
credits to be distributed for the calendar year. The amount of property
tax replacement credits the public library is entitled to receive during
the calendar year equals the product of:
(1) the amount of revenue deposited in the library property tax
replacement fund; multiplied by
(2) a fraction. The numerator of the fraction equals the budget of
the public library for that calendar year. The denominator of the
fraction equals the aggregate budgets of public libraries in the
county for that calendar year.
If for a calendar year a public library is allocated a part of the property
tax replacement credits under this subsection, then the amount of
property tax credits distributed to other public libraries in the county
for the calendar year shall be reduced by the amount to be distributed
as property tax replacement credits under this subsection. The state
board of tax commissioners department of local government finance
shall make any adjustments required by this subsection and provide the
adjustments to the county auditor.
(g) The state board of tax commissioners department of local
government finance shall inform the county auditor of the amount of
property tax replacement credits that each public library in the county
is entitled to receive under this section. The county auditor shall certify
to each public library the amount of property tax replacement credits
that the public library is entitled to receive during that calendar year.
The county auditor shall also certify these amounts to the county
treasurer.
(h) A public library receiving property tax replacement credits under
this section shall allocate the credits among each fund for which a
distinct property tax levy is imposed. The amount that must be
allocated to each fund equals:
(1) the amount of property tax replacement credits provided to the
public library under this section; multiplied by
(2) the amount determined in STEP THREE of the following
formula:
STEP ONE: Determine the property taxes that would have been
collected for each fund by the public library during the previous
calendar year if the property tax replacement under this section
had not been in effect.
STEP TWO: Determine the sum of the total property taxes that
would have been collected for all funds by the public library
during the previous calendar year if the property tax
replacement under this section had not been in effect.
STEP THREE: Divide the STEP ONE amount by the STEP
TWO amount.
However, if a public library did not impose a property tax levy during
the previous calendar year or did not impose a property tax levy for a
particular fund during the previous calendar year, but the public library
is imposing a property tax levy in the current calendar year or is
imposing a property tax levy for the particular fund in the current
calendar year, the state board of tax commissioners department of
local government finance shall adjust the amount of property tax
replacement credits allocated among the various funds of the public
library and shall provide the adjustment to the county auditor. If a
public library receiving property tax replacement credits under this
section does not impose a property tax levy for a particular fund that is
first due and payable in a calendar year in which the property tax
replacement credits are being distributed, the public library is not
required to allocate to that fund a part of the property tax replacement
credits to be distributed to the public library.
(i) For each public library that receives property tax credits under
this section, the state board of tax commissioners department of local
government finance shall certify to the county auditor the property tax
rate applicable to each fund after the property tax replacement credits
are allocated.
(j) A public library shall treat property tax replacement credits
received during a particular calendar year under this section as a part
of the public library's property tax levy for each fund for that same
calendar year for purposes of fixing the public library's budget and for
purposes of the property tax levy limits imposed by IC 6-1.1-18.5.
(k) The property tax replacement credits that are received under this
section do not reduce the total county tax levy that is used to compute
the state property tax replacement credit under IC 6-1.1-21. For the
purpose of computing and distributing certified distributions under
IC 6-3.5-1.1 and tax revenue under IC 6-5-10, IC 6-5-11, IC 6-5-12,
IC 6-5.5 or IC 6-6-5, the property tax replacement credits that are
received under this section shall be treated as though they were
property taxes that were due and payable during that same calendar
year.".
transfer to each county auditor the supplemental distribution for the
county for the year.
(b) For purposes of determining distributions under subsection (b),
(c), the state board of tax commissioners department of local
government finance shall determine a state welfare total levy
miscellaneous tax allocation for each county calculated as follows:
(1) For 2000 and each year thereafter, the state welfare allocation
for each county equals the greater of zero (0) or the amount
determined under the following formula:
STEP ONE: For 1997, 1998, and 1999, determine the result of:
(A) the amounts appropriated by the county in the year for the
county's county welfare fund and county welfare
administration fund; divided by
(B) the amounts appropriated by all the taxing units in the
county in the year;
STEP TWO: Determine the sum of the results determined in
STEP ONE.
STEP THREE: Divide the STEP TWO result by three (3).
STEP FOUR: Determine the amount that would otherwise be
distributed to all the taxing units in the county under subsection
(b) without regard to this subdivision.
STEP FIVE: Determine the result of:
(A) the STEP FOUR amount; multiplied by
(B) the STEP THREE result.
(2) provided in IC 6-1.1-44. The state welfare total levy
miscellaneous tax allocation shall be deducted from the
distributions otherwise payable under subsection (b) (c) to the
taxing unit that is a county and shall be deposited in a special
account within the state general fund.
(b) (c) A taxing unit's guaranteed distribution for a year is the
greater of zero (0) or an amount equal to:
(1) the amount received by the taxing unit under IC 6-5-10
(repealed) and IC 6-5-11 (repealed) in 1989; minus
(2) the amount to be received by the taxing unit in the year of the
distribution, as determined by the state board of tax
commissioners, department of local government finance, from
property taxes attributable to the personal property of banks,
exclusive of the property taxes attributable to personal property
leased by banks as the lessor where the possession of the personal
property is transferred to the lessee; minus
(3) in the case of a taxing unit that is a county, the amount that
would have been received by the taxing unit in the year of the
distribution, as determined by the state board of tax
commissioners, department of local government finance, from
property taxes that:
(A) were calculated for the county's county welfare fund and
county welfare administration fund for 2000 but were not
imposed because of the repeal of IC 12-19-3 and IC 12-19-4;
and
(B) would have been attributable to the personal property of
banks, exclusive of the property taxes attributable to personal
property leased by banks as the lessor where the possession
of the personal property is transferred to the lessee.
(c) (d) The amount of the supplemental distribution for a county for
a year shall be determined using the following formula:
STEP ONE: Determine the greater of zero (0) or the difference
between:
(A) one-half (1/2) of the taxes that the department estimates
will be paid under this article during the year; minus
(B) the sum of all the guaranteed distributions, before the
subtraction of all state welfare total county levy miscellaneous
tax allocations under subsection (a),
for all taxing units in all counties plus the bank personal property
taxes to be received by all taxing units in all counties, as
determined under subsection (b)(2) (c)(2) for the year.
STEP TWO: Determine the quotient of:
(A) the amount received under IC 6-5-10 (repealed) and
IC 6-5-11 (repealed) in 1989 by all taxing units in the county;
divided by
(B) the sum of the amounts received under IC 6-5-10
(repealed) and IC 6-5-11 (repealed) in 1989 by all taxing units
in all counties.
STEP THREE: Determine the product of:
(A) the amount determined in STEP ONE; multiplied by
(B) the amount determined in STEP TWO.
STEP FOUR: Determine the greater of zero (0) or the difference
between:
(A) the amount of supplemental distribution determined in
STEP THREE for the county; minus
(B) the amount of refunds granted under IC 6-5-10-7
( repealed) that have yet to be reimbursed to the state by the
county treasurer under IC 6-5-10-13 (repealed).
For the supplemental distribution made on or before August 1 of each
year, the department shall adjust the amount of each county's
supplemental distribution to reflect the actual taxes paid under this
article for the preceding year.
(d) (e) Except as provided in subsection (f), (g), the amount of the
supplemental distribution for each taxing unit shall be determined
using the following formula:
STEP ONE: Determine the quotient of:
(A) the amount received by the taxing unit under IC 6-5-10 and
IC 6-5-11 in 1989; divided by
(B) the sum of the amounts used in STEP ONE (A) for all
taxing units located in the county.
STEP TWO: Determine the product of:
(A) the amount determined in STEP ONE; multiplied by
(B) the supplemental distribution for the county, as determined
in subsection (c), STEP FOUR.
(e) (f) The county auditor shall distribute the guaranteed and
supplemental distributions received under subsection (a) to the taxing
units in the county at the same time that the county auditor makes the
semiannual distribution of real property taxes to the taxing units.
(f) (g) The amount of a supplemental distribution paid to a taxing unit
that is a county shall be reduced by an amount equal to:
(1) the amount the county would receive under subsection (d)
without regard to this subsection; minus
(2) an amount equal to:
(A) the amount under subdivision (1); multiplied by
(B) the result of the following:
(I) (i) Determine the amounts appropriated by the county in
1997, 1998, and 1999, from the county's county welfare fund
and county welfare administration fund,
(ii) Divide the amount determined in item (I) by three (3). sum
of the welfare revenue, human service fund revenue, and
education revenue for the county, as determined under
IC 6-1.1-44.
relieve a distributor or dealer from payment of the a state gross income
tax or state store license.
quarterly basis the aircraft excise taxes which were collected by the
department during the preceding three (3) months and which the
department has allocated to that county. The distribution shall be made
on or before the fifteenth of the month following each quarter and the
first distribution each year shall be made in April.
(b) Concurrently with making a distribution of aircraft excise taxes,
the department shall send an aircraft excise tax report to the county
treasurer and the county auditor. The department shall prepare the
report on the form prescribed by the state board of accounts. The
aircraft excise tax report must include aircraft identification, owner
information, and excise tax payment, and must indicate the county
where the aircraft is normally kept when not in operation. The
department shall, in the manner prescribed by the state board of
accounts, maintain records concerning the aircraft excise taxes
received and distributed by it.
(c) Except as provided in section 21.5 of this chapter, each county
treasurer shall deposit money received by him under this chapter in a
separate fund to be known as the "aircraft excise tax fund". The money
in the aircraft excise tax fund shall be distributed to the taxing units of
the county in the manner prescribed in subsection (d).
(d) In order to distribute the money in the county aircraft excise tax
fund to the taxing units of the county, the county auditor shall first
allocate the money in the fund among the taxing districts of the county.
In making these allocations, the county auditor shall allocate to a taxing
district the excise taxes collected with respect to aircraft usually
located in the taxing district when not in operation. The money
allocated to a taxing district shall be apportioned and distributed among
the taxing units of that taxing district in the same manner and at the
same time that the property taxes are apportioned and distributed.
However, for purposes of determining distributions under this
section for 2003 and each year thereafter, a total levy
miscellaneous tax allocation shall be deducted from the total
amount available for apportionment and distribution to taxing
units under this section before any apportionment and distribution
is made. The county auditor shall remit the total levy miscellaneous
tax allocation to the treasurer of state for deposit in a special
account within the state general fund.
(e) Within thirty (30) days following the receipt of excise taxes from
the department, the county treasurer shall file a report with the county
auditor concerning the aircraft excise taxes collected by the county
treasurer. The county treasurer shall file the report on the form
prescribed by the state board of accounts. The county treasurer shall,
in the manner and at the times prescribed in IC 6-1.1-27, make a
settlement with the county auditor for the aircraft excise taxes collected
by the county treasurer. The county treasurer shall, in the manner
prescribed by the state board of accounts, maintain records concerning
the aircraft excise taxes received and distributed by him.
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 commercial vehicle excise tax
(IC 6-6-5.5); 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 county food and beverage taxes (IC 6-9); the county
admissions tax (IC 6-9-13 and IC 6-9-28); 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.
shall be assessed as provided in IC 6-6-5-5 and IC 6-6-5-6 and shall
include the penalties and interest due on all listed taxes not paid by the
due date. A person that fails to properly register a vehicle as required
by IC 9-18 and pay the tax due under IC 6-6-5 is considered to have
failed to file a return for purposes of this article.
(d) In the case of the commercial vehicle excise tax imposed under
IC 6-6-5.5, the tax shall be assessed as provided in IC 6-6-5.5 and shall
include the penalties and interest due on all listed taxes not paid by the
due date. A person that fails to properly register a commercial vehicle
as required by IC 9-18 and pay the tax due under IC 6-6-5.5 is
considered to have failed to file a return for purposes of this article.
(e) If a person files a fraudulent, unsigned, or substantially blank
return, or if a person does not file a return, there is no time limit within
which the department must issue its proposed assessment.
(f) If, before the end of the time within which the department may
make an assessment, the department and the person agree to extend
that assessment time period, the period may be extended according to
the terms of a written agreement signed by both the department and the
person. The agreement must contain:
(1) the date to which the extension is made; and
(2) a statement that the person agrees to preserve the person's
records until the extension terminates.
The department and a person may agree to more than one (1) extension
under this subsection.
(g) If a taxpayer's federal income tax liability for a taxable year is
modified due to the assessment of a federal deficiency or the filing of
an amended federal income tax return, then the date by which the
department must issue a proposed assessment under section 1 of this
chapter for tax imposed under IC 6-3 is extended to six (6) months after
the date on which the notice of modification is filed with the
department by the taxpayer.
for the motor vehicle highway account fund and remaining after
refunds and the payment of all expenses incurred in the collection
thereof, and after the deduction of the amount appropriated to the
department for traffic safety and after the deduction of one-half (1/2)
of the total amount appropriated for the state police department, shall
be allocated to and distributed among the department and subdivisions
designated as follows:
(1) Of the net amount in the motor vehicle highway account the
auditor of state shall set aside for the cities and towns of the state
fifteen percent (15%) thereof. This sum shall be allocated to the
cities and towns upon the basis that the population of each city
and town bears to the total population of all the cities and towns
and shall be used for the construction or reconstruction and
maintenance of streets and alleys and shall be annually budgeted
as now provided by law. However, no part of such the sum shall
may be used for any other purpose than for the purposes defined
in this chapter. If any funds allocated to any a city or town shall
be are used by any an officer or officers of such the city or town
for any purpose or purposes other than for the purposes as defined
in this chapter, such the officer or officers shall be liable upon
their official bonds to such the city or town in such the amount so
used for other purposes than for the purposes as defined in this
chapter, together with the costs of said the action and reasonable
attorney fees, recoverable in an action or suit instituted in the
name of the state of Indiana on the relation of any taxpayer or
taxpayers resident of such city or town. A monthly distribution
thereof of funds accumulated during the preceding month shall be
made by the auditor of state.
(2) Of the net amount in the motor vehicle highway account, the
auditor of state shall set aside for the counties of the state
thirty-two percent (32%) thereof. However, as to the allocation to
cities and towns under subdivision (1), and as to the allocation to
counties under this subdivision in the event that the amount in the
motor vehicle highway account fund remaining after refunds and
the payment of all expenses incurred in the collection thereof and
after deduction of any amount appropriated by the general
assembly for public safety and policing shall be less than
twenty-two million six hundred and fifty thousand dollars
($22,650,000), in any fiscal year then the amount so set aside in
the next calendar year for distributions to counties shall be
reduced fifty-four percent (54%) of such the deficit and the
amount so set aside for distribution in the next calendar year to
cities and towns shall be reduced thirteen percent (13%) of such
the deficit. Such reduced distributions shall begin with the
distribution January 1 of each year.
(3) The amount set aside for the counties of the state under the
provisions of subdivision (2) shall be allocated monthly upon the
following basis:
(A) Five percent (5%) of the amount allocated to the counties
to be divided equally among the ninety-two (92) counties.
(B) Sixty-five percent (65%) of the amount allocated to the
counties to be divided on the basis of the ratio of the actual
miles, now traveled and in use, of county roads in each county
to the total mileage of county roads in the state, which shall be
annually determined, accurately, by the department.
(C) Thirty percent (30%) of the amount allocated to the
counties to be divided on the basis of the ratio of the motor
vehicle registrations of each county to the total motor vehicle
registration of the state.
All money so distributed to the several counties of the state shall
constitute a special road fund for each of the respective counties
and shall be under the exclusive supervision and direction of the
board of county commissioners in the construction,
reconstruction, maintenance, or repair of the county highways or
bridges on such the county highways within such the county.
(4) Each month, after making allocations to the department of
traffic safety, to the state police department, and under
subdivisions (1) through (3), an amount equal to the total
collections for all state gross retail and use taxes under
IC 6-2.5 in the immediately preceding month multiplied by six
hundred thirty-three thousandths of one percent (0.633%)
shall be distributed to the public mass transportation fund
established by IC 8-23-3-8.
(5) Each month, after making allocations to the department of
traffic safety, to the state police department, and under
subdivisions (1) through (4), an amount equal to the total
collections for all state gross retail and use taxes under
IC 6-2.5 in the immediately preceding month multiplied by
thirty-three thousandths of one percent (0.033%) shall be
distributed to the industrial rail service fund established
under IC 8-3-1.7-2.
(6) Each month, after making allocations to the department of
traffic safety, to the state police department, and under
subdivisions (1) through (5), an amount equal to the total
collections for all state gross retail and use taxes under
IC 6-2.5 in the immediately preceding month multiplied by
one hundred forty-two thousandths of one percent (0.142%)
shall be distributed to the commuter rail service fund
established under IC 8-3-1.5-20.5.
(7) Each month the remainder of the net amount in the motor
vehicle highway account shall be credited to the state highway
fund for the use of the department.
(5) (8) Money in the fund may not be used for any toll road or toll
bridge project.
(6) (9) Notwithstanding any other provisions of this section,
money in the motor vehicle highway account fund may be
appropriated to the Indiana department of transportation from the
forty-seven percent (47%) distributed to the political subdivisions
of the state to pay the costs incurred by the department in
providing services to those subdivisions.
(7) (10) Notwithstanding any other provisions of this section,
other than subdivisions (4) through (6), or of IC 8-14-8, for the
purpose of maintaining a sufficient working balance in accounts
established primarily to facilitate the matching of federal and
local money for highway projects, money may be appropriated to
the Indiana department of transportation as follows:
(A) One-half (1/2) from the forty-seven percent (47%) set aside
under subdivisions (1) and (2) for counties and for those cities
and towns with a population greater than five thousand (5,000).
(B) One-half (1/2) from the distressed road fund under
IC 8-14-8.
under section 3(7) 3(8) of this chapter for the purpose of maintaining
a sufficient working balance in accounts established primarily to
facilitate the matching of federal and local money for highway projects.
(b) The revolving fund balance must be maintained through
reimbursement from a local unit for money used by that unit to match
federal funds.
(c) If the local unit fails to reimburse the revolving fund, the
department shall notify the local unit that the department has found the
outstanding accounts receivable to be uncollectible.
(d) The attorney general shall review the outstanding accounts
receivable and if the attorney general agrees with the department's
assessment of the account's status, the attorney general shall certify to
the auditor of state that the outstanding accounts receivable is
uncollectible and request a transfer of funds as provided in subsection
(e).
(e) Upon receipt of a certificate as specified in subsection (d), the
auditor of state shall:
(1) immediately notify the delinquent local unit of the claim; and
(2) if proof of payment is not furnished to the auditor of state
within thirty (30) days after the notification, transfer an amount
equal to the outstanding accounts receivable to the department
from the delinquent local unit's allocations from the motor vehicle
highway account for deposit in the local agency revolving fund.
(f) Transfers shall be made under subsection (e) until the unpaid
amount has been paid in full under the terms of the agreement.
However, the agreement may be amended if both the department and
the unit agree to amortize the transfer over a period not to exceed five
(5) years.
(g) Money in the fund at the end of a fiscal year does not revert to
the state general fund.
ordinance providing that the principal and interest of bonds issued for
the payment of the cost of the construction, extensions, additions, or
improvements shall be paid exclusively from the revenues and receipts
of the aircraft hangars or revenue producing buildings or facilities,
unless otherwise provided by this section.
(c) The fiscal body must, by ordinance, set aside the income and
revenues of the buildings or facilities into a separate fund, to be used
in the maintenance and operation and in payment of the cost of the
construction, extensions, additions, or improvements. The ordinance
must fix:
(1) the proportion of the revenues of the buildings or facilities that
is necessary for the reasonable and proper operation and
maintenance of them; and
(2) the proportion of the revenues that are to be set aside and
applied to the payment of the principal and interest of bonds.
The ordinance may provide for the proportion of the revenues that are
to be set aside as an adequate depreciation account.
(d) Whenever the board determines that there exists a surplus in
funds derived from the net operating receipts of a municipal airport,
then the board may recommend to the fiscal body that a designated
amount of the surplus fund be appropriated by special or general
appropriation to the "aviation revenue bond account" for the relief of
principal or interest of bonds issued under this section. However, this
surplus in funds may not include monies raised by taxation.
(e) The fiscal body may issue and sell bonds to provide for the
payment of costs of the following:
(1) Airport capital improvements, including the acquisition of real
property.
(2) Construction or improvement of revenue producing buildings
or facilities owned and operated by the eligible entity.
(3) Payment of any loan contract.
The fiscal body may issue and sell bonds bearing interest, payable
annually or semiannually, executed in the manner and payable at the
times not exceeding forty (40) years from the date of issue and at the
places as the fiscal body of the entity determines, which bonds are
payable only out of the "aviation revenue bond account" fund. The
bonds have in the hands of bona fide holders all the qualities of
negotiable instruments under law.
of the revenues and proceeds than are required for the operation and
maintenance. The sums set aside for operation and maintenance shall
be used exclusively for that purpose, until the accumulation of a
surplus results.
(k) The proportion set aside to the depreciation fund, if a
depreciation account or fund is provided for under this section, shall be
expended in remedying depreciation in the building or facility or in
new construction, extensions, additions, or improvements to the
property. Accumulations of the depreciation fund may be invested, and
the income from the investment goes into the depreciation fund. The
fund, and the proceeds of it, may not be used for any other purpose.
(l) The fixed proportion that is set aside for the payment of the
principal and interest of the bonds shall, from month to month, as it is
accrued and received, be set apart and paid into a special account in the
treasury of the eligible entity, to be identified "aviation revenue bond
account," the title of the account to be specified by ordinance. In fixing
the amount or proportion to be set aside for the payment of the
principal and interest of the bonds, the fiscal body may provide that the
amount to be set aside and paid into the aviation revenue bond account
for any year or years may not exceed a fixed sum, which sum must be
at least sufficient to provide for the payment of the interest and
principal of the bonds maturing and becoming payable in each year,
together with a surplus or margin of ten percent (10%).
(m) If a surplus is accumulated in the operating and maintenance
fund that is equal to the cost of maintaining and operating the building
or facility for the twelve (12) following calendar months, the excess
over the surplus may be transferred by the fiscal body to either the
depreciation account to be used for improvements, extensions, or
additions to property or to the aviation revenue bond account fund, as
the fiscal body designates.
(n) If a surplus is created in the aviation revenue bond account in
excess of the interest and principal of bonds, plus ten percent (10%),
becoming payable during the calendar, operating, or fiscal year then
current, together with the amount of interest or principal of bonds
becoming due and payable during the next calendar, operating, or fiscal
year, the fiscal body may transfer the excess over the surplus to either
the operating and maintenance account, or to the depreciation account,
as the fiscal body designates.
determined under the following STEPS for each taxpayer in a taxing
district that contains all or part of the airport development zone:
STEP ONE: Determine that part of the sum of the amounts under
IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2) through
IC 6-1.1-21-2(g)(5) (as defined in IC 6-1.1-21-2) that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of twenty ten percent (20%) (10%) of the county's
total county tax levy payable that year as determined under
IC 6-1.1-21-4 that is attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that would have been allocated to the special
funds under section 9 of this chapter had the additional credit
described in this section not been given.
The additional credit reduces the amount of proceeds allocated and
paid into the special funds under section 9 of this chapter.
(b) The additional credit under subsection (a) shall be:
(1) computed on an aggregate basis of all taxpayers in a taxing
district that contains all or part of an airport development zone;
and
(2) combined on the tax statement sent to each taxpayer.
(c) Concurrently with the mailing or other delivery of the tax
statement or any corrected tax statement to each taxpayer, as required
by IC 6-1.1-22-8(a), each county treasurer shall for each tax statement
also deliver to each taxpayer in an airport development zone who is
entitled to the additional credit under subsection (a) a notice of
additional credit. The actual dollar amount of the credit, the taxpayer's
name and address, and the tax statement to which the credit applies
shall be stated on the notice.
May 22, 1933.
(6) All money that may at any time be appropriated from the state
treasury.
(7) Any part of the state highway fund unexpended at the
expiration of any fiscal year, which shall remain in the fund and
be available for the succeeding years.
(8) Any money credited to the state highway fund from the motor
vehicle highway account under IC 8-14-1-3(4). IC 8-14-1-3(5).
(9) Any money credited to the state highway fund from the
highway road and street fund under IC 8-14-2-3.
(10) Any money credited to the state highway fund under
IC 6-6-4.1-5 or IC 8-16-1-17.1.
(b) All expenses incurred in carrying out this chapter shall be paid
out of the state highway fund.
[EFFECTIVE JANUARY 1, 2003]: Sec. 128.5. "Medical institution",
for purposes of IC 12-15-8.5, has the meaning set forth in
IC 12-15-8.5-1.
placed for adoption.
(16) Compiling information and statistics concerning the ethnicity
and gender of a program or service recipient.
(17) Providing permanency planning services for children in need
of services, including:
(A) making children legally available for adoption; and
(B) placing children in adoptive homes;
in a timely manner.
(18) Providing medical assistance to wards from money
appropriated for that purpose.
chapter within ten (10) business days after the county office of
family and children receives notice that the Medicaid recipient:
(1) was discharged from the medical institution; and
(2) is living in the home.
(b) The county recorder shall waive the filing fee for the filing
of a release made under this section.
pharmacy other than the pharmacy selected.
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004]: Sec. 2. (a) Subject to subsections (b), (c), and (e),
and subject to the requirements of IC 12-15-15-9(b) regarding
appropriations from the state hospital care for the indigent fund for
Medicaid current obligations, beginning July 1, 2002, all funds
deposited in the state hospital care for the indigent fund derived from
taxes levied under IC 12-16-14-1(1) (repealed) or allocated under
IC 12-16-14-1(2) (repealed) shall be used by the division to pay claims
for services:
(1) eligible for payment under the hospital care for the indigent
program under IC 12-16-2 (before its repeal); and
(2) provided before July 1, 2002.
(b) This section may not delay, limit, or reduce the following:
(1) Any appropriation required under state law from the state
hospital care for the indigent fund for Medicaid current
obligations for the state fiscal years beginning July 1, 2000, and
July 1, 2001, for purposes of payments under IC 12-15-15-9(a)
through IC 12-15-15-9(d) for the state fiscal years beginning July
1, 2000, and July 1, 2001.
(2) The transfer of additional funds from the state hospital care for
the indigent fund for Medicaid current obligations anticipated
under IC 12-15-15-9(b) for purposes of IC 12-15-15-9(a) through
IC 12-15-15-9(d) for the state fiscal years beginning July 1, 2000,
and July 1, 2001.
(3) for state fiscal years beginning after June 30, 2002, any other
appropriation required under state law from the state hospital care
for the indigent fund for the uninsured parents program
established under IC 12-17.7-2-2. IC 12-17.7-2-1.
(c) The division shall cooperate with the office in causing the
appropriations and transfers from the state hospital care for the indigent
fund described in subsection (b) to occur.
(d) The state hospital care for the indigent fund shall close upon the
earlier of the following:
(1) The payment of all funds in the fund.
(2) The payment of all claims for services provided before July 1,
2002, that were eligible for payment under the hospital care for
the indigent program under IC 12-16-2 (before its repeal).
(e) Notwithstanding subsection (d) and IC 12-16.1, if at any time
before the closing of the state hospital care for the indigent fund the
amount of funds on deposit exceeds the amount necessary to pay the
claims for services provided before July 1, 2002, that were eligible for
payment under the hospital care for the indigent program under
IC 12-16 (before its repeal), those excess funds shall be transferred
from the fund for use as the state's share of funding for payments to
hospitals under IC 12-15-15-9(e). Subject to the operation of Except
for funds transferred to the state hospital care for the indigent
fund under sections 4.5, 5, and 6 of this chapter, amounts deposited in
the state hospital care for the indigent fund under IC 12-16.1 are not
subject to this subsection.
(f) Upon the closing of the state hospital care for the indigent fund,
no further obligation shall be owed under the hospital care for the
indigent program under IC 12-16-2 (before its repeal).
SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004]: Sec. 6. If the uninsured parents program
implemented and maintained under IC 12-17.7 terminates under
IC 12-17.7-9-1
(1) all transfers under this chapter will cease immediately;
(2) all tax receipts on deposit in a county general fund under
section 1(b) of this chapter, shall be immediately transferred to
the state hospital care for the indigent fund for use as provided in
section 2 of this chapter or, if the state hospital care for the
indigent fund is closed, to the state uninsured parents program
fund;
(3) all tax receipts on deposit in a county general fund under
section 1(c) of this chapter, shall be immediately transferred to
the state uninsured parents program fund; and
(4) after December 31, 2003, all funds deposited in the state
hospital care for the indigent fund shall be used as provided in
section 2 of this chapter.
that year under IC 12-16.1-13 (repealed).
(2) Any contribution to the fund in that year.
(3) Any amount that was appropriated to the state hospital care for
the indigent fund program for that year by the general assembly.
(4) Any amount that was carried over to the state hospital care for
the indigent fund from a preceding year.
(c) This section does not obligate the general assembly to
appropriate money to the state hospital care for the indigent fund.
appropriate money to the state hospital care for the indigent fund.
(as defined in IC 12-7-2-29) and that has been approved by
the county office as meeting applicable health and safety
standards and as suitable for the care of the child.
(b) The amount of the assistance provided to or for the benefit
of a destitute child under this chapter may not exceed the foster
care per diem rate applicable to the child in the county in which
the child resides.
the county minus the amounts reimbursed by the state (including
reimbursements made with federal money), as determined by the
state board of accounts, in 1991, 1992, and 1993 for the
following:
(A) Payments for administrative expenses of the county office
of family and children in administering the provision of child
services.
(B) Payments for the services described in section 1 of this
chapter that were made on behalf of the children described in
section 1 of this chapter and for which payment was made from
the county welfare fund.
(C) Payment for the facilities, supplies, and equipment needed
for the provision of child services as operated by the county
office of family and children.
(D) Payment of all other expenses incurred in providing child
services that were paid by the county office of family and
children.
STEP TWO: Subtract from the amount determined in STEP ONE
the sum of the miscellaneous taxes that were allocated to:
(A) the county welfare administration fund and used to pay
expenses for administration, facilities, supplies, and equipment
for the provision of child services in 1991, 1992, and 1993; and
(B) the county welfare fund, the county general fund, or the
county welfare loan fund (whichever of the funds applies) and
used to pay the costs of providing child services in 1991, 1992,
and 1993.
STEP THREE: Divide the amount determined in STEP TWO by
three (3).
STEP FOUR: Calculate the STEP ONE amount and the STEP
TWO amount for 1993 expenses only.
STEP FIVE: Adjust the amounts determined in STEP THREE and
STEP FOUR by the amount determined by the state board of tax
commissioners under subsection (c).
STEP SIX: Determine whether the amount calculated in STEP
THREE, as adjusted in STEP FIVE, or the amount calculated in
STEP FOUR, as adjusted in STEP FIVE, is greater. Multiply the
greater amount by the greater of:
(A) the assessed value growth quotient determined under
IC 6-1.1-18.5-2 for the county for property taxes first due and
payable in 1995; or
(B) the statewide average assessed value growth quotient using
the county assessed value growth quotients determined under
IC 6-1.1-18.5-2 for property taxes first due and payable in 1995.
STEP SEVEN: Multiply the amount determined in STEP SIX by
the county's assessed value growth quotient for property taxes first
due and payable in 1995, as determined under IC 6-1.1-18.5-2.
For taxes first due and payable in 2004, each county shall
impose a county family and children property tax levy equal
to the product of:
(A) fifty percent (50%) of the county family and children
property tax levy imposed for taxes first due and payable in
the preceding year; multiplied by
(B) the greater of:
(i) the county's assessed value growth quotient for the
ensuing calendar year, as determined under
IC 6-1.1-18.5-2; or
(ii) one (1).
(b) For taxes first due and payable in each year after 1995, 2004,
each county shall impose a county family and children property tax
levy equal to the product of:
(1) the county family and children property tax levy imposed for
taxes first due and payable in the preceding year; multiplied by
(2) the greater of:
(A) the county's assessed value growth quotient for the ensuing
calendar year, as determined under IC 6-1.1-18.5-2; or
(B) one (1).
When a year in which a statewide general reassessment of real property
first becomes effective is the year preceding the year that the property
tax levy under this subsection will be first due and payable, the amount
to be used in subdivision (2) equals the average of the amounts used in
determining the two (2) most recent adjustments in the county's levy
under this section.
(c) For taxes first due and payable in 1995 and in 1996, the state
board of tax commissioners shall adjust the levy for each county to
reflect the county's actual child services expenses incurred in providing
child services in 1991, 1992, and 1993. In making this adjustment, the
state board of tax commissioners may consider all relevant information,
including the county's use of bond and loan proceeds to pay these
expenses.
(d) (c) The state board department of tax commissioners local
government finance shall review each county's property tax levy under
this section and shall enforce the requirements of this section with
respect to that levy.
county to the division. The division shall examine the budget and the
tax levy for the purpose of determining whether, in the judgment of the
division:
(1) the appropriations requested in the budget will be adequate to
defray the expenses and obligations incurred by the county office
in the payment of child services for the next fiscal year; and
(2) the tax levy recommended will yield the amount of the
appropriation set forth in the budget after accounting for the
amount of the distribution from the division to the county
determined for the year under section 21.5 of this chapter.
state's obligation to fund the programs, services, and activities
described in subsection (b) in two (2) installments on June 15 and
December 15 of each year. A county treasurer shall deposit money
received under this section in the fund. The county and the division
shall provide for the settlement of any surplus or deficit in the
amount distributable under this section in a calendar year before
July 1 in the immediately subsequent calendar year.".
required under IC 13-23-4.
(2) Providing a source of money to satisfy liabilities incurred by
owners and operators of underground petroleum storage tanks
under IC 13-23-13-8 for corrective action.
(3) Providing a source of money for the indemnification of third
parties under IC 13-23-9-3.
(4) Providing a source of money to pay for the expenses of the
department incurred in paying and administering claims against
the trust fund. Money may be provided under this subdivision
only for those job activities and expenses that consist exclusively
of administering the excess liability trust fund.
(5) Providing a source of money to pay for the expenses of the
department incurred in operating and administering a motor
vehicle inspection and maintenance program established
under IC 13-17-5.
money collected shall be deposited in a fund to be known as the
Indiana soldiers' and sailors' children's home maintenance fund. The
fund shall be used by the state health commissioner for the:
(1) preventative maintenance; and
(2) repair and rehabilitation;
of buildings of the home that are used for housing, food service, or
education of the children of the home.
(c) The superintendent of the home may, with the approval of the
state health commissioner, agree to accept payment at a lesser rate than
that prescribed in subsection (a). The superintendent of the home shall,
in determining whether or not to accept the lesser amount, take into
consideration the amount of money that is necessary to maintain or
support any member of the family of the child. All agreements to
accept a lesser amount are subject to cancellation or modification at
any time by the superintendent of the home with the approval of the
state health commissioner.
(d) A person who has been issued a statement of amounts due as
maintenance charges may petition the superintendent of the home for
a release from or modification of the statement and the superintendent
shall provide for hearings to be held on the petition. The superintendent
of the home may, with the approval of the state health commissioner
and after the hearing, cancel or modify the former statement and at any
time for due cause may increase the amounts due for maintenance
charges to an amount not to exceed the maximum cost as determined
under subsection (a).
(e) The superintendent of the home may arrange for the
establishment of a graduation or discharge trust account for a child by
arranging to accept a lesser rate of maintenance charge. The trust fund
must be of sufficient size to provide for immediate expenses upon
graduation or discharge.
(f) The superintendent may make agreements with instrumentalities
of the federal government for application of any monetary awards to be
applied toward the maintenance charges in a manner that provides a
sufficient amount of the periodic award to be deposited in the child's
trust account to meet the immediate personal needs of the child and to
provide a suitable graduation or discharge allowance. The amount
applied toward the settlement of maintenance charges may not exceed
the amount specified in subsection (a).
expended, will not be expended in the then near future and requesting
that said state board of tax commissioners, department of local
government finance and said state board of accounts, respectively,
authorize a temporary loan from said bond fund in aid of said general
fund.
(f) If said state board of tax commissioners department of local
government finance shall find and order that there is need for such
temporary loan, and that it should be made, and said state board of
accounts shall find that the money proposed to be borrowed will not be
needed during the period of the temporary loan by the fund from which
it is to be borrowed, and said two (2) state boards the department of
local government finance and the state board of accounts shall
approve the loan, the business manager and treasurer of said school city
shall, upon such approval by said two (2) state boards, take all steps
necessary to transfer the amount of such loans, as a temporary loan
from the fund to be borrowed from, to said general fund of such school
city. The loan so effected shall, for all purposes, be a debt of the school
city chargeable against its constitutional debt limit.
Such two (2) state boards (g) The department of local government
finance and the state board of accounts may fix the aggregate
amount so to be borrowed on any one (1) petition and shall determine
at what time or times and in what instalments and for what periods it
shall be borrowed. The treasurer and business manager of such school
city, from time to time, as money shall be collected from taxes levied
in behalf of said general fund, shall credit the same on such loan until
the amount borrowed is fully repaid to the lending fund, and they shall
at the end of each calendar month report to the board the several
amounts so applied from taxes and state tuition support to the
payment of such loan.
(h) The school city shall, as often as once a month, report to both of
said state boards the department of local government finance and
the state board of accounts the amount of money then so borrowed
and unpaid, the anticipated like borrowings of the current month, the
amount left in the said general fund, and the anticipated drafts upon the
lending bond fund for the objects for which that fund was created.
Said two (2) state boards, or either of them, (i) The department of
local government finance or the state board of accounts, or both,
may, if it shall seem to said boards, or to either of them, seems to the
department of local government finance or the state board of
accounts, or both, that the fund from which the loan was made
requires the repayment of all or of part of such loan(s) before its
maturity or said general fund no longer requires all or some part of the
proceeds of such loan, require such school city to repay all or any part
of such loan, and, if necessary to perform the requirement, such school
city shall exercise its power of making a temporary loan procured from
others to raise the money so needed to repay the lending bond fund the
amount so ordered repaid.
fund for which the taxes are levied or from the general fund in the case
of anticipated state tuition support distributions. However, the interest
on these warrants may be paid from the debt service fund, from the
fund for which the taxes are levied, or the general fund in the case of
anticipated state tuition support distributions.
(c) The amount of principal of temporary loans maturing on or
before June 30 for any fund shall not exceed eighty percent (80%) of
the amount of taxes and state tuition support distributions estimated to
be collected or received for and distributed to the fund at the June
settlement.
(d) The amount of principal of temporary loans maturing after June
30, and on or before December 31, shall not exceed eighty percent
(80%) of the amount of taxes and state tuition support distributions
estimated to be collected or received for and distributed to the fund at
the December settlement.
(e) At each settlement, the amount of taxes and state tuition support
distributions estimated to be collected or received for and distributed
to the fund includes any allocations to the fund from the property tax
replacement fund.
(f) The estimated amount of taxes and state tuition support
distributions to be collected or received and distributed shall be made
by the county auditor or the auditor's deputy. The warrants evidencing
any loan in anticipation of tax revenue, or state tuition support
distributions, or both tax revenue and state tuition support
distributions, shall not be delivered to the purchaser of the warrant nor
payment made on the warrant before January 1 of the year the loan is
to be repaid. However, the proceedings necessary to the loan may be
held and carried out before January 1 and before the approval. The loan
may be made even though a part of the last preceding June or
December settlement has not yet been received.
(g) Proceedings for the issuance and sale of warrants for more than
one (1) fund may be combined, but separate warrants for each fund
shall be issued and each warrant shall state on its face the fund from
which its principal is payable. No action to contest the validity of such
warrants shall be brought later than fifteen (15) days from the first
publication of notice of sale.
(h) No issue of tax or state tuition support anticipation warrants
shall be made if the aggregate of all these warrants exceed twenty
thousand dollars ($20,000) until the issuance is advertised for sale, bids
received, and an award made by the governing board as required for the
sale of bonds, except that the sale notice need not be published outside
of the county nor more than ten (10) days before the date of sale.".
school distribution fund. In addition, for purposes of allocating
distributions of tax revenues collected under IC 6-5-10, IC 6-5-11,
IC 6-5.5, IC 6-6-5, IC 6-6-5.5, or IC 6-6-6.5, the county supplemental
school financing tax shall be treated as if it were property taxes
imposed by a separate taxing unit. Thus, the appropriate portion of
those distributions shall be deposited in the county supplemental school
distribution fund.
(b) The entitlement of each school corporation from the county
supplemental school distribution fund for each calendar year after 2000
shall be the greater of:
(1) the amount of its entitlement for the calendar year 2000 from
the tax levied under this chapter; or
(2) an amount equal to twenty-seven dollars and fifty cents
($27.50) times its ADM.
JULY 1, 2003]: Sec. 6.8. (a) Except as provided in subsection (b), a
school corporation's target general fund property tax rate for purposes
of IC 6-1.1-19-1.5 is the result determined under STEP THREE of the
following formula:
STEP ONE: This STEP applies only if the amount determined in
STEP FIVE of the formula in section 6.7(b) of this chapter minus
the result determined in STEP ONE of the formula in section
6.7(b) of this chapter is greater than zero (0). Determine the result
under clause (E) of the following formula:
(A) Divide the school corporation's 2002 assessed valuation by
the school corporation's current ADM.
(B) Divide the clause (A) result by ten thousand (10,000).
(C) Determine the greater of the following:
(i) The clause (B) result.
(ii) Thirty-nine dollars ($39) in 2002 and thirty-nine dollars
and seventy-five cents ($39.75) in 2003.
(D) Determine the result determined under item (ii) of the
following formula:
(i) Subtract the result determined in STEP ONE of the
formula in section 6.7(b) of this chapter from the amount
determined in STEP FIVE of the formula in section 6.7(b) of
this chapter.
(ii) Divide the item (i) result by the school corporation's
current ADM.
(E) Divide the clause (D) result by the clause (C) result.
(F) Divide the clause (E) result by one hundred (100).
STEP TWO: This STEP applies only if the amount determined in
STEP FIVE of the formula in section 6.7(b) of this chapter is
equal to STEP ONE of the formula in section 6.7(b) of this
chapter and the result of clause (A) is greater than zero (0).
Determine the result under clause (G) of the following formula:
(A) Add the following:
(i) An amount equal to the annual decrease in federal aid to
impacted areas from the year preceding the ensuing calendar
year by three (3) years to the year preceding the ensuing
calendar year by two (2) years.
(ii) The original amount of any excessive tax levy the school
corporation imposed as a result of the passage, during the
preceding year, of a referendum under IC 6-1.1-19-4.5(c) for
taxes first due and payable during the year.
(iii) The portion of the maximum general fund levy for the
year that equals the original amount of the levy imposed by
the school corporation to cover the costs of opening a new
school facility during the preceding year.
(B) Divide the clause (A) result by the school corporation's
current ADM.
(C) Divide the school corporation's 2002 assessed valuation by
the school corporation's current ADM.
(D) Divide the clause (C) result by ten thousand (10,000).
(E) Determine the greater of the following:
(i) The clause (D) result.
(ii) Thirty-nine dollars ($39) in 2002 and thirty-nine dollars
and seventy-five cents ($39.75) in 2003.
(F) Divide the clause (B) result by the clause (E) amount.
(G) Divide the clause (F) result by one hundred (100).
STEP THREE: Determine the sum of:
(A) ninety-one and eight-tenths cents ($0.918) in 2002; and
(B) ninety-five and eight-tenths cents ($0.958) in 2003; and
if applicable, the STEP ONE or STEP TWO result.
(b) This subsection applies to calendar years beginning after
December 31, 2003. A school corporation's target general fund
property tax rate for purposes of IC 6-1.1-19-1.5 is equal to the
result determined under subsection (a) multiplied by five-tenths
(0.5).".
such school town or school city, the board of school trustees or other
proper authorities of such school city or school town may make
temporary loans in anticipation of the current revenues of such school
town or school city to an amount not exceeding fifty per cent (50%) of
the amount of:
(1) taxes actually levied and in the course of collection; and
(2) state tuition support received;
for the fiscal year in which such loans are made. Revenues shall be
deemed to be current and taxes shall be deemed to have been actually
levied and in the course of collection when the budget levy and rate
shall have been finally approved by the state board of tax
commissioners: Provided, department of local government finance.
However, That in all second and third class school cities, no such loans
shall be borrowed in excess of the sum of twenty thousand dollars
($20,000) until the letting of the same shall have been advertised once
each week for two (2) successive weeks in two (2) newspapers of
general circulation published in such school city, and until sealed bids
have been submitted at a regular meeting of the school board of such
school city, pursuant to such notices, stipulating the rate of interest to
be charged by such bidder. and Provided, further, That Such school
loans shall be made with the bidder submitting the lowest rate of
interest and submitting with his the bidder's bid an affidavit showing
that no collusion exists between himself the bidder and any other
bidder for such loan.
county in this state in which such transient merchant desires to do
business. The application shall state the following facts:
(a) The name, residence and post-office address of the person, firm,
limited liability company, or corporation making the application, and
if a firm, limited liability company, or corporation, the name and
address of the members of the firm or limited liability company, or
officers of the corporation, as the case may be.
(b) If the applicant is a corporation or limited liability company then
there shall be stated on the application form the date of incorporation
or organization, the state of incorporation or organization, and if the
applicant is a corporation or limited liability company formed in a state
other than the state of Indiana, the date on which such corporation or
limited liability company qualified to transact business as a foreign
corporation or foreign limited liability company in the state of Indiana.
(c) A statement showing the kind of business proposed to be
conducted, the length of time for which the applicant desires to transact
business, and if for the purpose of transacting such business any
permanent or mobile building, structure or real estate is to be used for
the exhibition by means of samples, catalogues, photographs and price
lists or sale of goods, wares or merchandise, the location of such
proposed place of business.
(d) A detailed inventory and description of such goods, wares, and
merchandise to be offered for sale or sold, the manner in which the
same is to be advertised for sale and the representations to be made in
connection therewith, the names of the persons from whom the goods,
wares, and merchandise so to be advertised or represented were
obtained, the date of receipt of such goods, wares, and merchandise by
the applicant for the license, the place from which the same were last
taken, and any and all details necessary to locate and identify all goods,
wares and merchandise to be sold.
(e) Attached to the application shall be a receipt showing that
personal property taxes on the goods, wares and merchandise to be
offered for sale or sold have been paid.
(f) Attached to the application shall be a copy of a notice, which ten
(10) days before said application has been filed, shall have been mailed
by registered mail by the applicant to the Indiana department of state
revenue. of the state of Indiana or such other department as may be
charged with the duty of collecting gross income taxes or other taxes
of a comparable nature or which may be in lieu of such gross income
taxes. The said notice shall state the precise period of time and location
from which said applicant intends to transact business, the approximate
value of the goods, wares, and merchandise to be offered for sale or
sold, and such other information as the Indiana department of state
revenue of the state of Indiana or its successor may request or by
regulation require.
(g) Said application shall be verified.
notice. The exemption from license fees, privilege, or other taxes
accorded by this section to insurance companies not organized under
the laws of this state and doing business within this state which are
taxed under this chapter shall be applicable to each domestic company
in each calendar year with respect to which it is taxed under this
section. In each calendar year with respect to which a domestic
company has not elected to be taxed under this section it shall be taxed
without regard to this section.
(c) For the privilege of doing business in this state, every insurance
company required to file the report provided in this section shall pay
into the treasury of this state an amount equal to the excess, if any, of
the gross premiums over the allowable deductions multiplied by the
following rate for the year that the report covers:
(1) For 2000, two percent (2%).
(2) For 2001, one and nine-tenths percent (1.9%).
(3) For 2002, one and eight-tenths percent (1.8%).
(4) For 2003, one and seven-tenths eight-tenths percent (1.7%).
(1.8%).
(5) For 2004, one and five-tenths eight-tenths percent (1.5%).
(1.8%).
(6) For 2005, and thereafter, one and three-tenths seven-tenths
percent (1.3%). (1.7%).
(7) For 2006, one and five-tenths percent (1.5%).
(8) For 2007 and thereafter, one and three-tenths percent
(1.3%).
(d) Payments of the tax imposed by this section shall be made on a
quarterly estimated basis. The amounts of the quarterly installments
shall be computed on the basis of the total estimated tax liability for the
current calendar year and the installments shall be due and payable on
or before April 15, June 15, September 15, and December 15, of the
current calendar year.
(e) Any balance due shall be paid in the next succeeding calendar
year at the time designated for the filing of the annual report with the
department.
(f) Any overpayment of the estimated tax during the preceding
calendar year shall be allowed as a credit against the liability for the
first installment of the current calendar year.
(g) In the event a company subject to taxation under this section
fails to make any quarterly payment in an amount equal to at least:
(1) twenty-five percent (25%) of the total tax paid during the
preceding calendar year; or
(2) twenty per cent (20%) of the actual tax for the current
calendar year;
the company shall be liable, in addition to the amount due, for interest
in the amount of one percent (1%) of the amount due and unpaid for
each month or part of a month that the amount due, together with
interest, remains unpaid. This interest penalty shall be exclusive of and
in addition to any other fee, assessment, or charge made by the
department.
(h) The taxes under this article shall be in lieu of all license fees or
privilege or other tax levied or assessed by this state or by any
municipality, county, or other political subdivision of this state. No
municipality, county, or other political subdivision of this state shall
impose any license fee or privilege or other tax upon any insurance
company or any of its agents for the privilege of doing an insurance
business therein, except the tax authorized by IC 22-12-6-5. However,
the taxes authorized under IC 22-12-6-5 shall be credited against the
taxes provided under this chapter. This section shall not be construed
to prohibit the levy and collection of state, county, or municipal taxes
upon real and tangible personal property of such company, or to
prohibit the levy of any retaliatory tax, fine, penalty, or fee provided by
law. However, all insurance companies, foreign or domestic, paying
taxes in this state predicated in part on their premium income from
policies sold and premiums received in Indiana, shall have the same
rights and privileges from further taxation and shall be given the same
credits wherever applicable, as those set out for those companies
paying only a tax on premiums as set out in this section.
(i) Any insurance company failing or refusing, for more than thirty
(30) days, to render an accurate account of its premium receipts as
provided in this section and pay the tax due thereon shall be subject to
a penalty of one hundred dollars ($100) for each additional day such
report and payment shall be delayed, not to exceed a maximum penalty
of ten thousand dollars ($10,000). The penalty may be ordered by the
commissioner after a hearing under IC 4-21.5-3. The commissioner
may revoke all authority of such defaulting company to do business
within this state, or suspend such authority during the period of such
default, in the discretion of the commissioner.
credits against those taxes or refunds from the association; or
(2) include in the rates and premiums charged for insurance
policies to which this chapter applies amounts sufficient to recoup
a sum equal to the amounts paid to the association by the member
less any amounts returned to the member insurer by the
association and the rates are not excessive by virtue of including
an amount reasonably calculated to recoup assessments paid by
the member.
operation for the association and any amendments to the plan necessary
or suitable to assure the fair, reasonable, and equitable administration
of the association. The plan of operation becomes effective upon
approval in writing by the commissioner consistent with the date on
which the coverage under this chapter must be made available. The
commissioner shall, after notice and hearing, approve the plan of
operation if the plan is determined to be suitable to assure the fair,
reasonable, and equitable administration of the association and
provides for the sharing of association losses on an equitable,
proportionate basis among the member carriers, health maintenance
organizations, limited service health maintenance organizations, and
self-insurers. If the association fails to submit a suitable plan of
operation within one hundred eighty (180) days after the appointment
of the board of directors, or at any time thereafter the association fails
to submit suitable amendments to the plan, the commissioner shall
adopt rules under IC 4-22-2 necessary or advisable to implement this
section. These rules are effective until modified by the commissioner
or superseded by a plan submitted by the association and approved by
the commissioner. The plan of operation must:
(1) establish procedures for the handling and accounting of assets
and money of the association;
(2) establish the amount and method of reimbursing members of
the board;
(3) establish regular times and places for meetings of the board of
directors;
(4) establish procedures for records to be kept of all financial
transactions, and for the annual fiscal reporting to the
commissioner;
(5) establish procedures whereby selections for the board of
directors will be made and submitted to the commissioner for
approval;
(6) contain additional provisions necessary or proper for the
execution of the powers and duties of the association; and
(7) establish procedures for the periodic advertising of the general
availability of the health insurance coverages from the
association.
(d) The plan of operation may provide that any of the powers and
duties of the association be delegated to a person who will perform
functions similar to those of this association. A delegation under this
section takes effect only with the approval of both the board of
directors and the commissioner. The commissioner may not approve a
delegation unless the protections afforded to the insured are
substantially equivalent to or greater than those provided under this
chapter.
(e) The association has the general powers and authority enumerated
by this subsection in accordance with the plan of operation approved
by the commissioner under subsection (c). The association has the
general powers and authority granted under the laws of Indiana to
carriers licensed to transact the kinds of health care services or health
insurance described in section 1 of this chapter and also has the
specific authority to do the following:
(1) Enter into contracts as are necessary or proper to carry out this
chapter, subject to the approval of the commissioner.
(2) Sue or be sued, including taking any legal actions necessary
or proper for recovery of any assessments for, on behalf of, or
against participating carriers.
(3) Take legal action necessary to avoid the payment of improper
claims against the association or the coverage provided by or
through the association.
(4) Establish a medical review committee to determine the
reasonably appropriate level and extent of health care services in
each instance.
(5) Establish appropriate rates, scales of rates, rate classifications
and rating adjustments, such rates not to be unreasonable in
relation to the coverage provided and the reasonable operational
expenses of the association.
(6) Pool risks among members.
(7) Issue policies of insurance on an indemnity or provision of
service basis providing the coverage required by this chapter.
(8) Administer separate pools, separate accounts, or other plans
or arrangements considered appropriate for separate members or
groups of members.
(9) Operate and administer any combination of plans, pools, or
other mechanisms considered appropriate to best accomplish the
fair and equitable operation of the association.
(10) Appoint from among members appropriate legal, actuarial,
and other committees as necessary to provide technical assistance
in the operation of the association, policy and other contract
design, and any other function within the authority of the
association.
(11) Hire an independent consultant.
(12) Develop a method of advising applicants of the availability
of other coverages outside the association and may promulgate a
list of health conditions the existence of which would deem an
applicant eligible without demonstrating a rejection of coverage
by one (1) carrier.
(13) Provide for the use of managed care plans for insureds,
including the use of:
(A) health maintenance organizations; and
(B) preferred provider plans.
(14) Solicit bids directly from providers for coverage under this
chapter.
(f) Rates for coverages issued by the association may not be
unreasonable in relation to the benefits provided, the risk experience,
and the reasonable expenses of providing the coverage. Separate scales
of premium rates based on age apply for individual risks. Premium
rates must take into consideration the extra morbidity and
administration expenses, if any, for risks insured in the association. The
rates for a given classification may not be more than one hundred fifty
percent (150%) of the average premium rate for that class charged by
the five (5) carriers with the largest premium volume in the state during
the preceding calendar year. In determining the average rate of the five
(5) largest carriers, the rates charged by the carriers shall be actuarially
adjusted to determine the rate that would have been charged for
benefits identical to those issued by the association. All rates adopted
by the association must be submitted to the commissioner for approval.
(g) Following the close of the association's fiscal year, the
association shall determine the net premiums, the expenses of
administration, and the incurred losses for the year. Any net loss shall
be assessed by the association to all members in proportion to their
respective shares of total health insurance premiums, excluding
premiums for Medicaid contracts with the state of Indiana, received in
Indiana during the calendar year (or with paid losses in the year)
coinciding with or ending during the fiscal year of the association or
any other equitable basis as may be provided in the plan of operation.
For self-insurers, health maintenance organizations, and limited service
health maintenance organizations that are members of the association,
the proportionate share of losses must be determined through the
application of an equitable formula based upon claims paid, excluding
claims for Medicaid contracts with the state of Indiana, or the value of
services provided. In sharing losses, the association may abate or defer
in any part the assessment of a member, if, in the opinion of the board,
payment of the assessment would endanger the ability of the member
to fulfill its contractual obligations. The association may also provide
for interim assessments against members of the association if necessary
to assure the financial capability of the association to meet the incurred
or estimated claims expenses or operating expenses of the association
until the association's next fiscal year is completed. Net gains, if any,
must be held at interest to offset future losses or allocated to reduce
future premiums. Assessments must be determined by the board
members specified in subsection (b)(1), subject to final approval by the
commissioner.
(h) The association shall conduct periodic audits to assure the
general accuracy of the financial data submitted to the association, and
the association shall have an annual audit of its operations by an
independent certified public accountant.
(i) The association is subject to examination by the department of
insurance under IC 27-1-3.1. The board of directors shall submit, not
later than March 30 of each year, a financial report for the preceding
calendar year in a form approved by the commissioner.
(j) All policy forms issued by the association must conform in
substance to prototype forms developed by the association, must in all
other respects conform to the requirements of this chapter, and must be
filed with and approved by the commissioner before their use.
(k) The association may not issue an association policy to any
individual who, on the effective date of the coverage applied for, does
not meet the eligibility requirements of section 5.1 of this chapter.
(l) The association shall pay an agent's referral fee of twenty-five
dollars ($25) to each insurance agent who refers an applicant to the
association if that applicant is accepted.
(m) The association and the premium collected by the association
shall be exempt from the premium tax, the gross income tax, the
adjusted gross income tax, supplemental corporate net income, or any
combination of these, or similar taxes upon revenues or income that
may be imposed by the state.
(n) Members who after July 1, 1983, during any calendar year, have
paid one (1) or more assessments levied under this chapter may either:
(1) take a credit against premium taxes, gross income taxes,
adjusted gross income taxes, supplemental corporate net income
taxes, business franchise taxes, or any combination of these, or
similar taxes upon revenues or income of member insurers that
may be imposed by the state, up to the amount of the taxes due for
each calendar year in which the assessments were paid and for
succeeding years until the aggregate of those assessments have
been offset by either credits against those taxes or refunds from
the association; or
(2) any member insurer may include in the rates for premiums
charged for insurance policies to which this chapter applies
amounts sufficient to recoup a sum equal to the amounts paid to
the association by the member less any amounts returned to the
member insurer by the association, and the rates shall not be
deemed excessive by virtue of including an amount reasonably
calculated to recoup assessments paid by the member.
(o) The association shall provide for the option of monthly
collection of premiums.
continuation of benefits as required by IC 27-13-16-1 to enrollees
covered under contracts issued by the health maintenance organization
to subscribers located in Indiana, and to pay administrative expenses.
(c) The total amount of all assessments to be paid by a health
maintenance organization in any one (1) calendar year may not exceed
one percent (1%) of the premiums received by the health maintenance
organization from business in Indiana during the calendar year
preceding the assessment.
(d) If the total amount of all assessments in any one (1) calendar
year does not provide an amount sufficient to meet the requirements of
subsection (a), additional funds must be assessed in succeeding
calendar years.
(e) Health maintenance organizations that, during any preceding
calendar year, have paid one (1) or more assessments levied under this
section may either:
(1) take as a credit against gross income taxes, adjusted gross
income taxes, supplemental corporate net income taxes, business
franchise taxes, or any combination of these, or similar taxes
upon revenue or income of health maintenance organizations that
may be imposed by Indiana up to twenty percent (20%) of any
assessment described in this section for each calendar year
following the year in which those assessments were paid until the
aggregate of those assessments have been offset; or
(2) include in the premiums charged for coverage to which this
article applies amounts sufficient to recoup a sum equal to the
amounts paid in assessments as long as the premiums are not
excessive by virtue of including an amount reasonably calculated
to recoup assessments paid by the health maintenance
organization.
of the person of the minor and the power to execute the following on
behalf of the minor:
(1) Consent to the application of subsection (c) of Section 2032A
of the Internal Revenue Code, which imposes personal liability
for payment of the tax under that Section.
(2) Consent to the application of Section 6324A of the Internal
Revenue Code, which attaches a lien to property to secure
payment of taxes deferred under Section 6166 of the Internal
Revenue Code.
(3) Any other consents, waivers, or powers of attorney provided
for under the Internal Revenue Code.
(4) Waivers of notice permissible with reference to proceedings
under IC 29-1.
(5) Consents, waivers of notice, or powers of attorney under any
statute, including the Indiana inheritance tax law (IC 6-4.1) the
Indiana gross income tax law (IC 6-2.1), and the Indiana adjusted
gross income tax law (IC 6-3).
(6) Consent to unsupervised administration as provided in
IC 29-1-7.5.
(7) Federal and state income tax returns.
(8) Consent to medical or other professional care, treatment, or
advice for the minor's health and welfare.
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004]: Sec. 15. (a) If an advisory commission on
industrial development designates a district under this chapter or the
legislative body of a county or municipality adopts an ordinance
designating a district under section 10.5 of this chapter, the treasurer
of state shall establish an incremental tax financing fund for the county.
The fund shall be administered by the treasurer of state. Money in the
fund does not revert to the state general fund at the end of a state fiscal
year.
(b) Subject to subsection (c), the following amounts shall be
deposited during each state fiscal year in the incremental tax financing
fund established for the county under subsection (a):
(1) The aggregate amount of state gross retail and use taxes that
are remitted under IC 6-2.5 by businesses operating in the district,
until the amount of state gross retail and use taxes deposited
equals the gross retail incremental amount for the district.
(2) The aggregate amount of state and local income taxes paid by
employees employed in the district with respect to wages earned
for work in the district, until the amount of state and local income
taxes deposited equals the income tax incremental amount.
(c) The aggregate amount of revenues that is:
(1) attributable to:
(A) the state gross retail and use taxes established under
IC 6-2.5;
(B) the gross income tax established under IC 6-2.1; and
(C) the adjusted gross income tax established under IC 6-3-1
through IC 6-3-7; and
(D) the supplemental net income tax established under
IC 6-3-8; and
(2) deposited during any state fiscal year in each incremental tax
financing fund established for a county;
may not exceed one million dollars ($1,000,000) per county.
(d) On or before the twentieth day of each month, all amounts held
in the incremental tax financing fund established for a county shall be
distributed to the district's advisory commission on industrial
development for deposit in the industrial development fund of the unit
that requested designation of the district.
FOLLOWS [EFFECTIVE JANUARY 1, 2004]: Sec. 39. (a) As used
in this section:
"Allocation area" means that part of a blighted area to which an
allocation provision of a declaratory resolution adopted under section
15 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the state board of tax
commissioners, as finally determined for any assessment date
after the effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the state board of tax
commissioners, as finally determined for any assessment date
after the effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a blighted area expires after June 30,
1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
1995, must specify an expiration date for the allocation provision that
may not be more than thirty (30) years after the date on which the
allocation provision is established. However, if bonds or other
obligations that were scheduled when issued to mature before the
specified expiration date and that are payable only from allocated tax
proceeds with respect to the allocation area remain outstanding as of
the expiration date, the allocation provision does not expire until all of
the bonds or other obligations are no longer outstanding. The allocation
provision may apply to all or part of the blighted area. The allocation
provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into an allocation fund for that allocation area that may be used by
the redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations payable
solely from allocated tax proceeds which are incurred by the
redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the unit
to pay for local public improvements in or serving that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) in or serving that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in or serving that allocation area under any
lease entered into under IC 36-1-10.
(I) Pay all or a portion of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(A) that part of twenty ten percent (20%) (10%) of each
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district;
by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that have been allocated during that year to
an allocation fund under this section.
If not all the taxpayers in an allocation area receive the credit in
full, each taxpayer in the allocation area is entitled to receive
the same proportion of the credit. A taxpayer may not receive
a credit under this section and a credit under section 39.5 of this
chapter in the same year.
(J) Pay expenses incurred by the redevelopment commission for
local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the state board of tax
commissioners.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three (3)
years after the date on which the investments that are the basis
for the increment financing are made.
The allocation fund may not be used for operating expenses of the
commission.
(3) Except as provided in subsection (g), before July 15 of each
year the commission shall do the following:
(A) Determine the amount, if any, by which the base assessed
value when multiplied by the estimated tax rate of the allocation
area will exceed the amount of assessed value needed to
produce the property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2).
(B) Notify the county auditor of the amount, if any, of the
amount of excess assessed value that the commission has
determined may be allocated to the respective taxing units in
the manner prescribed in subdivision (1). The commission may
not authorize an allocation of assessed value to the respective
taxing units under this subdivision if to do so would endanger
the interests of the holders of bonds described in subdivision (2)
or lessors under section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 4-4-6.1, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. The amount sufficient for purposes specified in subsection (b)(2)
for the year shall be determined based on the pro rata portion of such
current property tax proceeds from the portion of the enterprise zone
that is within the allocation area as compared to all such current
property tax proceeds derived from the allocation area. A unit that has
no obligations, bonds, or leases payable from allocated tax proceeds
under subsection (b)(2) shall establish a special zone fund and deposit
all the property tax proceeds in excess of those described in subsection
(b)(1) in the fund derived from property tax proceeds in excess of those
described in subsection (b)(1) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund
(based on the recommendations of the urban enterprise association) for
programs in job training, job enrichment, and basic skill development
that are designed to benefit residents and employers in the enterprise
zone or other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to allocation area it shall refer
for purposes of payments from the special zone fund only to that
portion of the allocation area that is also located in the enterprise zone.
Those programs shall reserve at least one-half (1/2) of their enrollment
in any session for residents of the enterprise zone.
(h) The state board of accounts and state board of tax
commissioners shall make the rules and prescribe the forms and
procedures that they consider expedient for the implementation of this
chapter. After each general reassessment under IC 6-1.1-4, the state
board of tax commissioners shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. However, the adjustment may not include the effect of property
tax abatements under IC 6-1.1-12.1, and the adjustment may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(2) than would otherwise have been
received if the general reassessment had not occurred. The state board
of tax commissioners may prescribe procedures for county and
township officials to follow to assist the state board in making the
adjustments.
forth in IC 6-1.1-1-20.
(c) Subject to subsection (e), each taxpayer in an allocation area is
entitled to an additional credit for property taxes that under
IC 6-1.1-22-9 are due and payable in May and November of that year.
One-half (1/2) of the credit shall be applied to each installment of
property taxes. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district that contains all
or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts under
IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2), IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), and IC 6-1.1-21-2(g)(5) (as defined in
IC 6-1.1-21-2) that is attributable to the taxing district.
STEP TWO: Divide:
(A) that part of twenty ten percent (20%) (10%) of each
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that would have been allocated to an
allocation fund under section 39 of this chapter had the
additional credit described in this section not been given.
The additional credit reduces the amount of proceeds allocated to the
redevelopment district and paid into an allocation fund under section
39(b)(2) of this chapter.
(d) If the additional credit under subsection (c) is not reduced under
subsection (e) or (f), the credit for property tax replacement under
IC 6-1.1-21-5 and the additional credit under subsection (c) shall be
computed on an aggregate basis for all taxpayers in a taxing district
that contains all or part of an allocation area. The credit for property tax
replacement under IC 6-1.1-21-5 and the additional credit under
subsection (c) shall be combined on the tax statements sent to each
taxpayer.
(e) Upon the recommendation of the redevelopment commission,
the municipal legislative body (in the case of a redevelopment
commission established by a municipality) or the county executive (in
the case of a redevelopment commission established by a county) may,
by resolution, provide that the additional credit described in subsection
(c):
(1) does not apply in a specified allocation area; or
(2) is to be reduced by a uniform percentage for all taxpayers in
a specified allocation area.
(f) Whenever the municipal legislative body or county executive
determines that granting the full additional credit under subsection (c)
would adversely affect the interests of the holders of bonds or other
contractual obligations that are payable from allocated tax proceeds in
that allocation area in a way that would create a reasonable expectation
that those bonds or other contractual obligations would not be paid
when due, the municipal legislative body or county executive must
adopt a resolution under subsection (e) to deny the additional credit or
reduce it to a level that creates a reasonable expectation that the bonds
or other obligations will be paid when due. A resolution adopted under
subsection (e) denies or reduces the additional credit for property taxes
first due and payable in the allocation area in any year following the
year in which the resolution is adopted.
(g) A resolution adopted under subsection (e) remains in effect until
it is rescinded by the body that originally adopted it. However, a
resolution may not be rescinded if the rescission would adversely affect
the interests of the holders of bonds or other obligations that are
payable from allocated tax proceeds in that allocation area in a way that
would create a reasonable expectation that the principal of or interest
on the bonds or other obligations would not be paid when due. If a
resolution is rescinded and no other resolution is adopted, the
additional credit described in subsection (c) applies to property taxes
first due and payable in the allocation area in each year following the
year in which the resolution is rescinded.
redevelopment commission; and
(2) with the same effect as if the economic development area was
created by a redevelopment commission.
However, an authority may not include in an economic development
area created under this section any area that was declared a blighted
area, an urban renewal area, or an economic development area under
IC 36-7-14.
(c) In order to accomplish the purposes set forth in section 11(b) of
this chapter, an authority may do the following in a manner that serves
an economic development area created under this section:
(1) Acquire by purchase, exchange, gift, grant, condemnation, or
lease, or any combination of methods, any personal property or
interest in real property needed for the redevelopment of
economic development areas located within the corporate
boundaries of the unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract, or
other instrument), exchange, lease, rent, or otherwise dispose of
property acquired for use in the redevelopment of economic
development areas on the terms and conditions that the authority
considers best for the unit and the unit's inhabitants.
(3) Sell, lease, or grant interests in all or part of the real property
acquired for redevelopment purposes to any other department of
the unit or to any other governmental agency for public ways,
levees, sewerage, parks, playgrounds, schools, and other public
purposes on any terms that may be agreed on.
(4) Clear real property acquired for redevelopment purposes.
(5) Repair and maintain structures acquired for redevelopment
purposes.
(6) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment purposes.
(7) Survey or examine any land to determine whether the land
should be included within an economic development area to be
acquired for redevelopment purposes and to determine the value
of that land.
(8) Appear before any other department or agency of the unit, or
before any other governmental agency in respect to any matter
affecting:
(A) real property acquired or being acquired for redevelopment
purposes; or
(B) any economic development area within the jurisdiction of
the authority.
(9) Institute or defend in the name of the unit any civil action, but
all actions against the authority must be brought in the circuit or
superior court of the county where the authority is located.
(10) Use any legal or equitable remedy that is necessary or
considered proper to protect and enforce the rights of and perform
the duties of the authority.
(11) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit subject to the same
conditions and procedures that apply to the exercise of the power
of eminent domain by a redevelopment commission under
IC 36-7-14.
(12) Appoint an executive director, appraisers, real estate experts,
engineers, architects, surveyors, and attorneys.
(13) Appoint clerks, guards, laborers, and other employees the
authority considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(14) Prescribe the duties and regulate the compensation of
employees of the authority.
(15) Provide a pension and retirement system for employees of
the authority by using the public employees' retirement fund or a
retirement plan approved by the United States Department of
Housing and Urban Development.
(16) Discharge and appoint successors to employees of the
authority subject to subdivision (13).
(17) Rent offices for use of the department or authority, or accept
the use of offices furnished by the unit.
(18) Equip the offices of the authority with the necessary
furniture, furnishings, equipment, records, and supplies.
(19) Design, order, contract for, and construct, reconstruct,
improve, or renovate the following:
(A) Any local public improvement or structure that is necessary
for redevelopment purposes or economic development within
the corporate boundaries of the unit.
(B) Any structure that enhances development or economic
development.
(20) Contract for the construction, extension, or improvement of
pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
(21) Accept loans, grants, and other forms of financial assistance
from, or contract with, the federal government, the state
government, a municipal corporation, a special taxing district, a
foundation, or any other source.
(22) Make and enter into all contracts and agreements necessary
or incidental to the performance of the duties of the authority and
the execution of the powers of the authority under this chapter.
(23) Take any action necessary to implement the purpose of the
authority.
(24) Provide financial assistance, in the manner that best serves
the purposes set forth in section 11(b) of this chapter, including
grants and loans, to enable private enterprise to develop,
redevelop, and reuse military base property or otherwise enable
private enterprise to provide social and economic benefits to the
citizens of the unit.
(d) An authority may designate all or a portion of an economic
development area created under this section as an allocation area by
following the procedures set forth in IC 36-7-14-39 for the
establishment of an allocation area by a redevelopment commission.
The allocation provision may modify the definition of "property taxes"
under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the
depreciable personal property located and taxable on the site of
operations of designated taxpayers in accordance with the procedures
applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.3
applies to such a modification. An allocation area established by an
authority under this section is a special taxing district authorized by the
general assembly to enable the unit to provide special benefits to
taxpayers in the allocation area by promoting economic development
that is of public use and benefit. For allocation areas established for an
economic development area created under this section after June 30,
1997, and to the expanded portion of an allocation area for an
economic development area that was established before June 30, 1997,
and that is expanded under this section after June 30, 1997, the net
assessed value of property that is assessed as residential property under
the rules of the state board of tax commissioners, as finally determined
for any assessment date, must be allocated. All of the provisions of
IC 36-7-14-39, IC 36-7-14-39.1, and IC 36-7-14-39.5 apply to an
allocation area created under this section, except that the authority shall
be vested with the rights and duties of a commission as referenced in
those sections, and except that, notwithstanding IC 36-7-14-39(b)(2),
property tax proceeds paid into the allocation fund may be used by the
authority only to do one (1) or more of the following:
(1) Pay the principal of and interest and redemption premium on
any obligations incurred by the special taxing district or any other
entity for the purpose of financing or refinancing military base
reuse activities in or serving or benefitting that allocation area.
(2) Establish, augment, or restore the debt service reserve for
obligations payable solely or in part from allocated tax proceeds
in that allocation area or from other revenues of the authority
(including lease rental revenues).
(3) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(4) Reimburse any other governmental body for expenditures
made by it for local public improvements or structures in or
serving or benefitting that allocation area.
(5) Pay all or a portion of a property tax replacement credit to
taxpayers in an allocation area as determined by the authority.
This credit equals the amount determined under the following
STEPS for each taxpayer in a taxing district (as defined in
IC 6-1.1-1-20) that contains all or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) (as defined in IC 6-1.1-21-2) that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of the twenty ten percent (20%) (10%) of each
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that have been allocated during that year to
an allocation fund under this section.
If not all the taxpayers in an allocation area receive the credit in
full, each taxpayer in the allocation area is entitled to receive the
same proportion of the credit. A taxpayer may not receive a credit
under this section and a credit under IC 36-7-14-39.5 in the same
year.
(6) Pay expenses incurred by the authority for local public
improvements or structures that are in the allocation area or
serving or benefiting the allocation area.
(7) Reimburse public and private entities for expenses incurred in
training employees of industrial facilities that are located:
(A) in the allocation area; and
(B) on a parcel of real property that has been classified as
industrial property under the rules of the state board of tax
commissioners.
However, the total amount of money spent for this purpose in any
year may not exceed the total amount of money in the allocation
fund that is attributable to property taxes paid by the industrial
facilities described in clause (B). The reimbursements under this
subdivision must be made within three (3) years after the date on
which the investments that are the basis for the increment
financing are made. The allocation fund may not be used for
operating expenses of the authority.
(e) In addition to other methods of raising money for property
acquisition, redevelopment, or economic development activities in or
directly serving or benefitting an economic development area created
by an authority under this section, and in anticipation of the taxes
allocated under subsection (d), other revenues of the authority, or any
combination of these sources, the authority may, by resolution, issue
the bonds of the special taxing district in the name of the unit. Bonds
issued under this section may be issued in any amount without
limitation. The following apply if such a resolution is adopted:
(1) The authority shall certify a copy of the resolution authorizing
the bonds to the municipal or county fiscal officer, who shall then
prepare the bonds. The seal of the unit must be impressed on the
bonds, or a facsimile of the seal must be printed on the bonds.
(2) The bonds must be executed by the appropriate officer of the
unit and attested by the unit's fiscal officer.
(3) The bonds are exempt from taxation for all purposes.
(4) Bonds issued under this section may be sold at public sale in
accordance with IC 5-1-11 or at a negotiated sale.
(5) The bonds are not a corporate obligation of the unit but are an
indebtedness of the taxing district. The bonds and interest are
payable, as set forth in the bond resolution of the authority:
(A) from the tax proceeds allocated under subsection (d);
(B) from other revenues available to the authority; or
(C) from a combination of the methods stated in clauses (A)
and (B).
(6) Proceeds from the sale of bonds may be used to pay the cost
of interest on the bonds for a period not to exceed five (5) years
from the date of issuance.
(7) Laws relating to the filing of petitions requesting the issuance
of bonds and the right of taxpayers to remonstrate against the
issuance of bonds do not apply to bonds issued under this section.
(8) If a debt service reserve is created from the proceeds of bonds,
the debt service reserve may be used to pay principal and interest
on the bonds as provided in the bond resolution.
(9) If bonds are issued under this chapter that are payable solely
or in part from revenues to the authority from a project or
projects, the authority may adopt a resolution or trust indenture or
enter into covenants as is customary in the issuance of revenue
bonds. The resolution or trust indenture may pledge or assign the
revenues from the project or projects. The resolution or trust
indenture may also contain any provisions for protecting and
enforcing the rights and remedies of the bond owners as may be
reasonable and proper and not in violation of law, including
covenants setting forth the duties of the authority. The authority
may establish fees and charges for the use of any project and
covenant with the owners of any bonds to set those fees and
charges at a rate sufficient to protect the interest of the owners of
the bonds. Any revenue bonds issued by the authority that are
payable solely from revenues of the authority shall contain a
statement to that effect in the form of bond.
(f) Notwithstanding section 8(a) of this chapter, an ordinance
adopted under section 11(b) of this chapter may provide, or be
amended to provide, that the board of directors of the authority shall be
composed of not fewer than three (3) nor more than seven (7)
members, who must be residents of the unit appointed by the executive
of the unit.
(g) The acquisition of real and personal property by an authority
under this section is not subject to the provisions of IC 5-22,
IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
purchase of property by public bodies or their agencies.
(h) An authority may negotiate for the sale, lease, or other
disposition of real and personal property without complying with the
provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
statute governing the disposition of public property.
(i) Notwithstanding any other law, utility services provided within
an economic development area established under this section are
subject to regulation by the appropriate regulatory agencies unless the
utility service is provided by a utility that provides utility service solely
within the geographic boundaries of an existing or a closed military
installation, in which case the utility service is not subject to regulation
for purposes of rate making, regulation, service delivery, or issuance of
bonds or other forms of indebtedness. However, this exemption from
regulation does not apply to utility service if the service is generated,
treated, or produced outside the boundaries of the existing or closed
military installation.
that, under IC 6-1.1-22-9, are due and payable in May and November
of that year. One-half (1/2) of the credit shall be applied to each
installment of property taxes. This credit equals the amount determined
under the following STEPS for each taxpayer in a taxing district that
contains all or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts under
IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2), IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), and IC 6-1.1-21-2(g)(5) that is attributable to
the taxing district.
STEP TWO: Divide:
(A) that part of twenty ten percent (20%) (10%) of each
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that would have been allocated to an
allocation fund under section 26 of this chapter had the
additional credit described in this section not been given.
The additional credit reduces the amount of proceeds allocated to the
redevelopment district and paid into the special fund.
(f) The credit for property tax replacement under IC 6-1.1-21-5 and
the additional credits under subsections (e), (g), (h), and (i), unless the
credits under subsections (g) and (h) are partial credits, shall be
computed on an aggregate basis for all taxpayers in a taxing district
that contains all or part of an allocation area. Except as provided in
subsections (h) and (i), the credit for property tax replacement under
IC 6-1.1-21-5 and the additional credits under subsections (e), (g), (h),
and (i) shall be combined on the tax statements sent to each taxpayer.
(g) This subsection applies to an allocation area if allocated taxes
from that area were pledged to bonds, leases, or other obligations of the
commission before May 8, 1989. A credit calculated using the method
provided in subsection (e) may be granted under this subsection. The
credit provided under this subsection is first applicable for the
allocation area for property taxes first due and payable in 1992. The
following apply to the determination of the credit provided under this
subsection:
subdivision (4) that partial credits may be paid, the partial credits
shall be applied pro rata among all affected taxpayers in the
following year.
(6) An affected taxpayer may appeal any of the following to the
circuit or superior court of the county in which the allocation area
is located:
(A) A determination by the fiscal officer of the consolidated
city that:
(i) credits may not be paid in the following year; or
(ii) only partial credits may be paid in the following year.
(B) A failure by the fiscal officer of the consolidated city to
make a determination by June 15 of whether full or partial
credits are payable under this subsection.
(7) An appeal of a determination must be filed not later than thirty
(30) days after the publication of the determination.
(8) An appeal of a failure by the fiscal officer of the consolidated
city to make a determination of whether the credits are payable
under this subsection must be filed by July 15 of the year in which
the determination should have been made.
(9) All appeals under subdivision (6) shall be decided by the court
within sixty (60) days.
(h) This subsection applies to an allocation area if allocated taxes
from that area were pledged to bonds, leases, or other obligations of the
commission before May 8, 1989. A credit calculated using the method
in subsection (e) and in subdivision (2) of this subsection may be
granted under this subsection. The following apply to the credit granted
under this subsection:
(1) The credit is applicable to property taxes first due and payable
in 1991.
(2) For purposes of this subsection, the amount of a credit for
1990 taxes payable in 1991 with respect to an affected taxpayer
is equal to:
(A) the amount of the quotient determined under STEP TWO
of subsection (e); multiplied by
(B) the total amount of the property taxes payable by the
taxpayer that were allocated in 1991 to the allocation area
special fund under section 26 of this chapter.
(3) Before June 15, 1991, the fiscal officer of the consolidated
city shall determine and certify an estimate of the aggregate
amount of credits for 1990 taxes payable in 1991 if the full credits
are granted.
(4) The fiscal officer of the consolidated city shall determine
whether the granting of the full amounts of the credits for 1990
taxes payable in 1991 against 1991 taxes payable in 1992 and the
granting of credits under subsection (g) would impair any contract
with or otherwise adversely affect the owners of outstanding
bonds payable from the allocation area special fund for an
allocation area described in subsection (g).
(5) If the fiscal officer of the consolidated city determines that
there would not be an impairment or adverse effect under
subdivision (4):
(A) the fiscal officer shall certify that determination; and
(B) the full credits shall be applied against 1991 taxes payable
in 1992 or the amount of the credits shall be paid to the
taxpayers as provided in subdivision (12), subject to the
determinations and certifications made under section 26.7(b) of
this chapter.
(6) If the fiscal officer of the consolidated city makes an adverse
determination under subdivision (4), the fiscal officer shall
determine whether there is an amount of partial credits for 1990
taxes payable in 1991 that, if granted against 1991 taxes payable
in 1992 in addition to granting of the credits under subsection (g),
would not result in the impairment or adverse effect.
(7) If the fiscal officer of the consolidated city determines under
subdivision (6) that there is an amount of partial credits that
would not result in the impairment or adverse effect, the fiscal
officer shall determine the amount of partial credits and certify
that determination.
(8) If the fiscal officer of the consolidated city certifies under
subdivision (7) that partial credits may be paid, the partial credits
shall be applied pro rata among all affected taxpayers against
1991 taxes payable in 1992.
(9) An affected taxpayer may appeal any of the following to the
circuit or superior court of the county in which the allocation area
is located:
(A) A determination by the fiscal officer of the consolidated
city that:
(i) credits may not be paid for 1990 taxes payable in 1991; or
(ii) only partial credits may be paid for 1990 taxes payable in
1991.
(B) A failure by the fiscal officer of the consolidated city to
make a determination by June 15, 1991, of whether credits are
payable under this subsection.
(10) An appeal of a determination must be filed not later than
thirty (30) days after the publication of the determination. Any
such appeal shall be decided by the court within sixty (60) days.
(11) An appeal of a failure by the fiscal officer of the consolidated
city to make a determination of whether credits are payable under
this subsection must be filed by July 15, 1991. Any such appeal
shall be decided by the court within sixty (60) days.
(12) If 1991 taxes payable in 1992 with respect to a parcel are
billed to the same taxpayer to which 1990 taxes payable in 1991
were billed, the county treasurer shall apply to the tax bill for
1991 taxes payable in 1992 both the credit provided under
subsection (g) and the credit provided under this subsection,
along with any credit determined to be applicable to the tax bill
under subsection (i). In the alternative, at the election of the
county auditor, the county may pay to the taxpayer the amount of
the credit by May 10, 1992, and the amount shall be charged to
the taxing units in which the allocation area is located in the
proportion of the taxing units' respective tax rates for 1990 taxes
payable in 1991.
(13) If 1991 taxes payable in 1992 with respect to a parcel are
billed to a taxpayer other than the taxpayer to which 1990 taxes
payable in 1991 were billed, the county treasurer shall do the
following:
(A) Apply only the credits under subsections (g) and (i) to the
tax bill for 1991 taxes payable in 1992.
(B) Give notice by June 30, 1991, by publication two (2) times
in three (3) newspapers in the county with the largest
circulation of the availability of a refund of the credit under this
subsection.
A taxpayer entitled to a credit must file an application for refund
of the credit with the county auditor not later than November 30,
1991.
(14) A taxpayer who files an application by November 30, 1991,
is entitled to payment from the county treasurer in an amount that
is in the same proportion to the credit provided under this
subsection with respect to a parcel as the amount of 1990 taxes
payable in 1991 paid by the taxpayer with respect to the parcel
bears to the 1990 taxes payable in 1991 with respect to the parcel.
This amount shall be paid to the taxpayer by May 10, 1992, and
shall be charged to the taxing units in which the allocation area is
located in the proportion of the taxing units' respective tax rates
for 1990 taxes payable in 1991.
(i) This subsection applies to an allocation area if allocated taxes
from that area were pledged to bonds, leases, or other obligations of the
commission before May 8, 1989. The following apply to the credit
granted under this subsection:
(1) A prior year credit is applicable to property taxes first due and
payable in each year from 1987 through 1990 (the "prior years").
(2) The credit for each prior year is equal to:
(A) the amount of the quotient determined under STEP TWO
of subsection (e) for the prior year; multiplied by
(B) the total amount of the property taxes paid by the taxpayer
that were allocated in the prior year to the allocation area
special fund under section 26 of this chapter.
(3) Before January 31, 1992, the county auditor shall determine
the amount of credits under subdivision (2) with respect to each
parcel in the allocation area for all prior years with respect to
which:
(A) taxes were billed to the same taxpayer for taxes payable in
each year from 1987 through 1991; or
(B) an application was filed by November 30, 1991, under
subdivision (8) for refund of the credits for prior years.
A report of the determination by parcel shall be sent by the county
auditor to the state board of tax commissioners and the budget
agency within five (5) days of such determination.
(4) Before January 31, 1992, the county auditor shall determine
the quotient of the amounts determined under subdivision (3) with
respect to each parcel divided by six (6).
(5) Before January 31, 1992, the county auditor shall determine
the quotient of the aggregate amounts determined under
subdivision (3) with respect to all parcels divided by twelve (12).
(6) Except as provided in subdivisions (7) and (9), in each year in
which credits from prior years remain unpaid, credits for the prior
years in the amounts determined under subdivision (4) shall be
applied as provided in this subsection.
(7) If taxes payable in the current year with respect to a parcel are
billed to the same taxpayer to which taxes payable in all of the
prior years were billed and if the amount determined under
subdivision (3) with respect to the parcel is at least five hundred
dollars ($500), the county treasurer shall apply the credits
provided for the current year under subsections (g) and (h) and
the credit in the amount determined under subdivision (4) to the
tax bill for taxes payable in the current year. However, if the
amount determined under subdivision (3) with respect to the
parcel is less than five hundred dollars ($500) (referred to in this
subdivision as "small claims"), the county may, at the election of
the county auditor, either apply a credit in the amount determined
under subdivision (3) or subdivision (4) to the tax bill for taxes
payable in the current year or pay either amount to the taxpayer.
If title to a parcel transfers in a year in which a credit under this
subsection is applied to the tax bill, the transferor may file an
application with the county auditor within thirty (30) days of the
date of the transfer of title to the parcel for payments to the
transferor at the same times and in the same amounts that would
have been allowed as credits to the transferor under this
subsection if there had not been a transfer. If a determination is
made by the county auditor to refund or credit small claims in the
amounts determined under subdivision (3) in 1992, the county
auditor may make appropriate adjustments to the credits applied
with respect to other parcels so that the total refunds and credits
in any year will not exceed the payments made from the state
property tax replacement fund to the prior year credit fund
referred to in subdivision (11) in that year.
(8) If taxes payable in the current year with respect to a parcel are
billed to a taxpayer that is not a taxpayer to which taxes payable
in all of the prior years were billed, the county treasurer shall do
the following:
subsection, such balance shall be repaid to the treasurer of state
for deposit in the property tax replacement fund.
(14) In each year, the county shall limit the total of all refunds and
credits provided for in this subsection to the total amount paid in
that year from the property tax replacement fund into the prior
year credit fund and any balance remaining from the preceding
year in the prior year credit fund.
property tax replacement as determined under subsections (c) and
(d). However, this credit may be provided by the commission only
if the city-county legislative body establishes the credit by
ordinance adopted in the year before the year in which the credit
is provided.
(c) The maximum credit that may be provided under subsection
(b)(7) to a taxpayer in a taxing district that contains all or part of an
allocation area established for a program adopted under section 32 of
this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts
described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
through IC 6-1.1-21-2(g)(5) that is attributable to the taxing
district.
STEP TWO: Divide:
(A) that part of the amount ten percent (10%) of the county's
total county tax levy payable that year as determined under
IC 6-1.1-21-4(a)(1) that is attributable to the taxing district; by
(B) the amount determined under STEP ONE.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the taxpayer's property taxes levied in the taxing district
allocated to the allocation fund, including the amount that
would have been allocated but for the credit.
(d) The commission may determine to grant to taxpayers in an
allocation area from its allocation fund a credit under this section, as
calculated under subsection (c), by applying one-half (1/2) of the credit
to each installment of property taxes that under IC 6-1.1-22-9 are due
and payable on May 1 and November 1 of a year. The commission
must provide for the credit annually by a resolution and must find in
the resolution the following:
(1) That the money to be collected and deposited in the allocation
fund, based upon historical collection rates, after granting the
credit will equal the amounts payable for contractual obligations
from the fund, plus ten percent (10%) of those amounts.
(2) If bonds payable from the fund are outstanding, that there is
a debt service reserve for the bonds that at least equals the amount
of the credit to be granted.
(3) If bonds of a lessor under section 17.1 of this chapter or under
IC 36-1-10 are outstanding and if lease rentals are payable from
the fund, that there is a debt service reserve for those bonds that
at least equals the amount of the credit to be granted.
If the tax increment is insufficient to grant the credit in full, the
commission may grant the credit in part, prorated among all taxpayers.
(e) Notwithstanding section 26(b) of this chapter, the special fund
established under section 26(b) of this chapter for the allocation area
for a program adopted under section 32 of this chapter may only be
used to do one (1) or more of the following:
(1) Accomplish one (1) or more of the actions set forth in section
26(b)(2)(A) through section 26(b)(2)(H) of this chapter.
(2) Reimburse the consolidated city for expenditures made by the
city in order to accomplish the housing program in that allocation
area.
The special fund may not be used for operating expenses of the
commission.
(f) Notwithstanding section 26(b) of this chapter, the commission
shall, relative to the special fund established under section 26(b) of this
chapter for an allocation area for a program adopted under section 32
of this chapter, do the following before July 15 of each year:
(1) Determine the amount, if any, by which property taxes payable
to the allocation fund in the following year will exceed the
amount of property taxes necessary:
(A) to make, when due, principal and interest payments on
bonds described in section 26(b)(2) of this chapter;
(B) to pay the amount necessary for other purposes described in
section 26(b)(2) of this chapter; and
(C) to reimburse the consolidated city for anticipated
expenditures described in subsection (e)(2).
(2) Notify the county auditor of the amount, if any, of excess
property taxes that the commission has determined may be paid
to the respective taxing units in the manner prescribed in section
26(b)(1) of this chapter.
forth in IC 6-1.1-1-20.
(c) Subject to subsection (e), each taxpayer in an allocation area is
entitled to an additional credit for property taxes that under
IC 6-1.1-22-9 are due and payable in May and November of that year.
One-half (1/2) of the credit shall be applied to each installment of
property taxes. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district that contains all
or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts under
IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2), IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), and IC 6-1.1-21-2(g)(5) that is attributable to
the taxing district.
STEP TWO: Divide:
(A) that part of twenty ten percent (20%) (10%) of each
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that would have been allocated to an
allocation fund under section 53 of this chapter had the
additional credit described in this section not been given.
The additional credit reduces the amount of proceeds allocated to the
development district and paid into an allocation fund under section
53(b)(2) of this chapter.
(d) If the additional credit under subsection (c) is not reduced under
subsection (e) or (f), the credit for property tax replacement under
IC 6-1.1-21-5 and the additional credit under subsection (c) shall be
computed on an aggregate basis for all taxpayers in a taxing district
that contains all or part of an allocation area. The credit for property tax
replacement under IC 6-1.1-21-5 and the additional credit under
subsection (c) shall be combined on the tax statements sent to each
taxpayer.
(e) Upon the recommendation of the commission, the excluded city
legislative body may, by resolution, provide that the additional credit
described in subsection (c):
(1) does not apply in a specified allocation area; or
allocated to the military base reuse district and, when collected,
paid into an allocation fund for that allocation area that may be
used by the military base reuse district and only to do one (1) or
more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the military base reuse district or
any other entity for the purpose of financing or refinancing
military base reuse activities in or directly serving or benefiting
that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the reuse
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) Pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the reuse
authority. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district (as
defined in IC 6-1.1-1-20) that contains all or part of the
allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(A) that part of the twenty ten percent (20%) (10%) of each
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's property taxes levied in
the taxing district that have been allocated during that year to
an allocation fund under this section.
section 19 of this chapter. Property taxes received by a taxing
unit under this subdivision are eligible for the property tax
replacement credit provided under IC 6-1.1-21.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base reuse district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the military base reuse district for payment as
set forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the reuse authority, reassess the taxable property situated
upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 4-4-6.1, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. The amount sufficient for purposes specified in subsection (b)(2)
for the year shall be determined based on the pro rata part of such
current property tax proceeds from the part of the enterprise zone that
is within the allocation area as compared to all such current property
tax proceeds derived from the allocation area. A unit that does not have
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
that are derived from property in the enterprise zone in the fund. The
unit that creates the special zone fund shall use the fund (based on the
recommendations of the urban enterprise association) for programs in
job training, job enrichment, and basic skill development that are
designed to benefit residents and employers in the enterprise zone or
other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to allocation area it shall refer
for purposes of payments from the special zone fund only to that
portion of the allocation area that is also located in the enterprise zone.
The programs shall reserve at least one-half (1/2) of their enrollment
in any session for residents of the enterprise zone.
(h) After each general reassessment under IC 6-1.1-4, the state
board of tax commissioners shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the military base reuse district under
this section. However, the adjustment may not include the effect of
property tax abatements under IC 6-1.1-12.1, and the adjustment may
not produce less property tax proceeds allocable to the military base
reuse district under subsection (b)(2) than would otherwise have been
received if the general reassessment had not occurred. The state board
of tax commissioners may prescribe procedures for county and
township officials to follow to assist the state board in making the
adjustments.
IC 6-1.1-22-9 are due and payable in May and November of that year.
One-half (1/2) of the credit shall be applied to each installment of
property taxes. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district that contains all
or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts under
IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2), IC 6-1.1-21-2(g)(3),
IC 6-1.1-21-2(g)(4), and IC 6-1.1-21-2(g)(5) that is attributable to
the taxing district.
STEP TWO: Divide:
(A) that part of twenty ten percent (20%) (10%) of each
county's total county tax levy payable that year as determined
under IC 6-1.1-21-4 that is attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the total amount of the taxpayer's property taxes levied in
the taxing district that would have been allocated to an
allocation fund under section 25 of this chapter had the
additional credit described in this section not been given.
The additional credit reduces the amount of proceeds allocated to the
military base reuse district and paid into an allocation fund under
section 25(b)(2) of this chapter.
(d) If the additional credit under subsection (c) is not reduced under
subsection (e) or (f), the credit for property tax replacement under
IC 6-1.1-21-5 and the additional credit under subsection (c) shall be
computed on an aggregate basis for all taxpayers in a taxing district
that contains all or part of an allocation area. The credit for property tax
replacement under IC 6-1.1-21-5 and the additional credit under
subsection (c) shall be combined on the tax statements sent to each
taxpayer.
(e) Upon the recommendation of the reuse authority, the municipal
legislative body (in the case of a reuse authority established by a
municipality) or the county executive (in the case of a reuse authority
established by a county) may by resolution provide that the additional
credit described in subsection (c):
(1) does not apply in a specified allocation area; or
(2) is to be reduced by a uniform percentage for all taxpayers in
a specified allocation area.
(f) If the municipal legislative body or county executive determines
that granting the full additional credit under subsection (c) would
adversely affect the interests of the holders of bonds or other
contractual obligations that are payable from allocated tax proceeds in
that allocation area in a way that would create a reasonable expectation
that those bonds or other contractual obligations would not be paid
when due, the municipal legislative body or county executive must
adopt a resolution under subsection (e) to deny the additional credit or
reduce the credit to a level that creates a reasonable expectation that
the bonds or other obligations will be paid when due. A resolution
adopted under subsection (e) denies or reduces the additional credit for
property taxes first due and payable in the allocation area in any year
following the year in which the resolution is adopted.
(g) A resolution adopted under subsection (e) remains in effect until
rescinded by the body that originally adopted the resolution. However,
a resolution may not be rescinded if the rescission would adversely
affect the interests of the holders of bonds or other obligations that are
payable from allocated tax proceeds in that allocation area in a way that
would create a reasonable expectation that the principal of or interest
on the bonds or other obligations would not be paid when due. If a
resolution is rescinded and no other resolution is adopted, the
additional credit described in subsection (c) applies to property taxes
first due and payable in the allocation area in each year following the
year in which the resolution is rescinded.
precedes the date on which the certified technology park was
designated under section 11 of this chapter:
(1) The adjusted gross income tax.
(2) The county adjusted gross income tax.
(3) The county option income tax.
(4) The county economic development income tax.
Sec. 9. As used in this chapter, subject to the approval of the
department of commerce under an agreement entered into under
section 12 of this chapter, "public facilities" includes the following:
(1) A street, road, bridge, storm water or sanitary sewer,
sewage treatment facility, facility designed to reduce,
eliminate, or prevent the spread of identified soil or
groundwater contamination, drainage system, retention basin,
pretreatment facility, waterway, waterline, water storage
facility, rail line, electric, gas, telephone or other
communications, or any other type of utility line or pipeline,
or other similar or related structure or improvement,
together with necessary easements for the structure or
improvement. Except for rail lines, utility lines, or pipelines,
the structures or improvements described in this subdivision
must be either owned or used by a public agency, functionally
connected to similar or supporting facilities owned or used by
a public agency, or designed and dedicated to use by, for the
benefit of, or for the protection of the health, welfare, or
safety of the public generally, whether or not used by a single
business entity. Any road, street, or bridge must be
continuously open to public access. A public facility must be
located on public property or in a public, utility, or
transportation easement or right-of-way.
(2) Land and other assets that are or may become eligible for
depreciation for federal income tax purposes for a business
incubator located in a certified technology park.
(3) Land and other assets that, if privately owned, would be
eligible for depreciation for federal income tax purposes for
laboratory facilities, research and development facilities,
conference facilities, teleconference facilities, testing, training
facilities, and quality control facilities:
(A) that are or that support property whose primary
purpose and use is or will be for a high technology activity;
(B) that are owned by a public entity; and
(C) that are located within a certified technology park.
Sec. 10. A unit may apply to the department of commerce for
designation of all or part of the territory within the jurisdiction of
the unit's redevelopment commission as a certified technology park
and to enter into an agreement governing the terms and conditions
of the designation. The application must be in a form specified by
the department and shall include information the department
determines necessary to make the determinations required under
section 11 of this chapter.
Sec. 11. (a) After receipt of an application under section 10 of
this chapter, and subject to subsection (b), the department of
commerce may designate a certified technology park if the
department determines that the application demonstrates a firm
commitment from at least one (1) business engaged in a high
technology activity creating a significant number of jobs and
satisfies one (1) or more of the following additional criteria:
(1) A demonstration of significant support from an institution
of higher education or a private research based institute
located within, or in the vicinity of, the proposed certified
technology park, as evidenced by the following criteria:
(A) Grants of preferences for access to and
commercialization of intellectual property.
(B) Access to laboratory and other facilities owned by or
under control of the institution of higher education or
private research based institute.
(C) Donations of services.
(D) Access to telecommunications facilities and other
infrastructure.
(E) Financial commitments.
(F) Access to faculty, staff, and students.
(G) Opportunities for adjunct faculty and other types of
staff arrangements or affiliations.
(H) Other criteria considered appropriate by the
department.
(2) A demonstration of a significant commitment by the
institution of higher education or private research based
institute to the commercialization of research produced at the
certified technology park, as evidenced by the intellectual
property and, if applicable, tenure policies that reward
faculty and staff for commercialization and collaboration with
private businesses.
(3) A demonstration that the proposed certified technology
park will be developed to take advantage of the unique
characteristics and specialties offered by the public and
private resources available in the area in which the proposed
certified technology park will be located.
(4) The existence of or proposed development of a business
incubator within the proposed certified technology park that
exhibits the following types of resources and organization:
(A) Significant financial and other types of support from the
public or private resources in the area in which the
proposed certified technology park will be located.
(B) A business plan exhibiting the economic utilization and
availability of resources and a likelihood of successful
development of technologies and research into viable
business enterprises.
(C) A commitment to the employment of a qualified
full-time manager to supervise the development and
operation of the business incubator.
(5) The existence of a business plan for the proposed certified
technology park that identifies its objectives in a clearly
focused and measurable fashion and that addresses the
following matters:
(A) A commitment to new business formation.
(B) The clustering of businesses, technology, and research.
(C) The opportunity for and costs of development of
properties under common ownership or control.
(D) The availability of and method proposed for
development of infrastructure and other improvements,
including telecommunications technology, necessary for the
development of the proposed certified technology park.
(E) Assumptions of costs and revenues related to the
development of the proposed certified technology park.
(6) A demonstrable and satisfactory assurance that the
proposed certified technology park can be developed to
principally contain property that is primarily used for, or will
be primarily used for, a high technology activity or a business
incubator.
(b) The department of commerce may not approve an
application that would result in a substantial reduction or cessation
of operations in another location in Indiana in order to relocate
them within the certified technology park.
(c) There may be not more than three (3) certified technology
parks designated by the department.
Sec. 12. A redevelopment commission and the legislative body
of the unit that established the redevelopment commission may
enter into an agreement with the department of commerce
establishing the terms and conditions governing a certified
technology park designated under section 11 of this chapter. Upon
designation of the certified technology park under the terms of the
agreement, the subsequent failure of any party to comply with the
terms of the agreement does not result in the termination or
rescission of the designation of the area as a certified technology
park. The agreement must include the following provisions:
(1) A description of the area to be included within the certified
technology park.
(2) Covenants and restrictions, if any, upon all or a part of the
properties contained within the certified technology park and
terms of enforcement of any covenants or restrictions.
(3) The financial commitments of any party to the agreement
and of any owner or developer of property within the certified
technology park.
(4) The terms of any commitment required from an institution
of higher education or private research based institute for
support of the operations and activities within the certified
technology park.
(5) The terms of enforcement of the agreement, which may
include the definition of events of default, cure periods, legal
and equitable remedies and rights, and penalties and
damages, actual or liquidated, upon the occurrence of an
event of default.
(6) The public facilities to be developed for the certified
technology park and the costs of those public facilities, as
approved by the department of commerce.
Sec. 13. (a) If the department of commerce determines that a
sale price or rental value at below market rate will assist in
increasing employment or private investment in a certified
technology park, the redevelopment commission and the legislative
body of the unit may determine the sale price or rental value for
public facilities owned or developed by the redevelopment
commission and the unit in the certified technology park at below
market rate.
(b) If public facilities developed under an agreement entered
into under this chapter are conveyed or leased at less than fair
market value or at below market rates, the terms of the conveyance
or lease shall include legal and equitable remedies and rights to
assure that the public facilities are used for high technology
activities or as a business incubator. Legal and equitable remedies
and rights may include penalties and actual or liquidated damages.
Sec. 14. The department of commerce shall market the certified
technology park. The department and a redevelopment commission
may contract with each other or any third party for these
marketing services.
Sec. 15. (a) Subject to the approval of the legislative body of the
unit that established the redevelopment commission, the
redevelopment commission may adopt a resolution designating a
certified technology park as an allocation area for purposes of the
allocation and distribution of property taxes.
(b) After adoption of the resolution under subsection (a), the
redevelopment commission shall:
(1) publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit that
has authority to levy property taxes in the geographic area
where the certified technology park is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the certified
technology park, including the following:
(i) The estimated economic benefits and costs incurred by
the certified technology park, as measured by increased
employment and anticipated growth of real property
assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the certified
technology park and must state that written remonstrances may be
filed with the redevelopment commission until the time designated
for the hearing. The notice must also name the place, date, and
time when the redevelopment commission will receive and hear
remonstrances and objections from persons interested in or
affected by the proceedings pertaining to the proposed allocation
area and will determine the public utility and benefit of the
proposed allocation area. The commission shall file the information
required by subdivision (2) with the officers of the taxing unit who
are authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 at least ten (10) days before the date of the public
hearing. All persons affected in any manner by the hearing,
including all taxpayers within the taxing district of the
redevelopment commission, shall be considered notified of the
pendency of the hearing and of subsequent acts, hearings,
adjournments, and orders of the redevelopment commission
affecting the allocation area if the redevelopment commission gives
the notice required by this section.
(c) At the hearing, which may be recessed and reconvened
periodically, the redevelopment commission shall hear all persons
interested in the proceedings and shall consider all written
remonstrances and objections that have been filed. After
considering the evidence presented, the redevelopment commission
shall take final action determining the public utility and benefit of
the proposed allocation area confirming, modifying and
confirming, or rescinding the resolution. The final action taken by
the redevelopment commission shall be recorded and is final and
conclusive, except that an appeal may be taken in the manner
prescribed by section 16 of this chapter.
Sec. 16. (a) A person who files a written remonstrance with the
redevelopment commission under section 15 of this chapter and is
aggrieved by the final action taken may, within ten (10) days after
that final action, file with the office of the clerk of the circuit or
superior court of the county a copy of the redevelopment
commission's resolution and the person's remonstrance against the
resolution, together with the person's bond as provided by
IC 34-13-5-7.
(b) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of filing of the appeal. The court
shall decide the appeal based on the record and evidence before the
redevelopment commission, not by trial de novo, and may confirm
the final action of the redevelopment commission or sustain the
remonstrances. The judgment of the court is final and conclusive,
unless an appeal is taken as in other civil actions.
Sec. 17. (a) An allocation provision adopted under section 15 of
this chapter must:
(1) apply to the entire certified technology park; and
(2) require that any property tax on taxable property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the certified
technology park be allocated and distributed as provided in
subsections (b) and (c).
(b) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(1) the assessed value of the taxable property for the
assessment date with respect to which the allocation and
distribution is made; or
(2) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units.
(c) Except as provided in subsection (d), all the property tax
proceeds that exceed those described in subsection (b) shall be
allocated to the redevelopment commission for the certified
technology park and, when collected, paid into the certified
technology park fund established under section 23 of this chapter.
(d) Before July 15 of each year, the redevelopment commission
shall do the following:
(1) Determine the amount, if any, by which the property tax
proceeds to be deposited in the certified technology park fund
will exceed the amount necessary for the purposes described
in section 23 of this chapter.
(2) Notify the county auditor of the amount, if any, of excess
tax proceeds that the redevelopment commission has
determined may be allocated to the respective taxing units in
the manner prescribed in subsection (c). The redevelopment
commission may not authorize an allocation of property tax
proceeds under this subdivision if to do so would endanger the
interests of the holders of bonds described in section 24 of this
chapter.
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the certified technology
park effective on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all
taxable property in the certified technology park, for purposes of
tax limitation, property tax replacement, and formulation of the
budget, tax rate, and tax levy for each political subdivision in
which the property is located is the lesser of:
(1) the assessed value of the taxable property as valued
without regard to this section; or
(2) the base assessed value.
Sec. 18. (a) A redevelopment commission may, by resolution,
provide that each taxpayer in a certified technology park that has
been designated as an allocation area is entitled to an additional
credit for property taxes that, under IC 6-1.1-22-9, are due and
payable in May and November of that year. One-half (1/2) of the
credit shall be applied to each installment of property taxes. This
credit equals the amount determined under the following STEPS
for each taxpayer in a taxing district that contains all or part of the
certified technology park:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2) through
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(A) that part of ten percent (10%) of the county's total
county tax levy payable that year as determined under
IC 6-1.1-21-4 that is attributable to the taxing district; by
this chapter, the redevelopment commission shall send to the
department of state revenue:
(1) a certified copy of the designation of the certified
technology park under section 11 of this chapter;
(2) a certified copy of the agreement entered into under
section 12 of this chapter; and
(3) a complete list of the employers in the certified technology
park and the street names and the range of street numbers of
each street in the certified technology park.
The redevelopment commission shall update the list provided
under subdivision (3) before July 1 of each year.
(b) Not later than sixty (60) days after receiving a copy of the
designation of the certified technology park, the department of
state revenue shall determine the gross retail base period amount
and the income tax base period amount.
Sec. 21. Before the first business day in October of each year,
the department of state revenue shall calculate the income tax
incremental amount and the gross retail incremental amount for
the preceding state fiscal year for each certified technology park
designated under this chapter.
Sec. 22. (a) The treasurer of state shall establish an incremental
tax financing fund for each certified technology park designated
under this chapter. The fund shall be administered by the treasurer
of state. Money in the fund does not revert to the state general fund
at the end of a state fiscal year.
(b) Subject to subsection (c), the following amounts shall be
deposited during each state fiscal year in the incremental tax
financing fund established for a certified technology park under
subsection (a):
(1) The aggregate amount of state gross retail and use taxes
that are remitted under IC 6-2.5 by businesses operating in
the certified technology park, until the amount of state gross
retail and use taxes deposited equals the gross retail
incremental amount for the certified technology park.
(2) The aggregate amount of the following taxes paid by
employees employed in the certified technology park with
respect to wages earned for work in the certified technology
park, until the amount deposited equals the income tax
incremental amount:
(A) The adjusted gross income tax.
(B) The county adjusted gross income tax.
(C) The county option income tax.
(D) The county economic development income tax.
(c) No additional deposits shall be made in an incremental tax
financing fund under subsection (b) after the total amount of
deposits that has been made in that fund reaches five million
dollars ($5,000,000).
(d) On or before the twentieth day of each month, all amounts
held in the incremental tax financing fund established for a
certified technology park shall be distributed to the redevelopment
commission for deposit in the certified technology park fund
established under section 23 of this chapter.
Sec. 23. (a) Each redevelopment commission that establishes a
certified technology park under this chapter shall establish a
certified technology park fund to receive:
(1) property tax proceeds allocated under section 17 of this
chapter; and
(2) money distributed to the redevelopment commission under
section 22 of this chapter.
(b) Money deposited in the certified technology park fund may
be used by the redevelopment commission only for one (1) or more
of the following purposes.
(1) Acquisition, improvement, preparation, demolition,
disposal, construction, reconstruction, remediation,
rehabilitation, restoration, preservation, maintenance, repair,
furnishing, and equipping of public facilities.
(2) Operation of public facilities described in section 9(2) of
this chapter.
(3) Payment of the principal of and interest on any obligations
that are payable solely or in part from money deposited in the
fund and are incurred by the redevelopment commission for
the purpose of financing or refinancing the development of
public facilities in the certified technology park.
(4) Establishment, augmentation, or restoration of the debt
service reserve for obligations described in subdivision (3).
(5) Payment of the principal of and interest on bonds issued
by the unit to pay for public facilities in or serving the
certified technology park.
(6) Payment of premiums on the redemption before maturity
of bonds described in subdivision (3).
(7) Payment of amounts due under leases payable from money
deposited in the fund.
(8) Reimbursement of the unit for expenditures made by it for
public facilities in or serving the certified technology park.
(9) Payment of expenses incurred by the redevelopment
commission for public facilities that are in the certified
technology park or serving the certified technology park.
(c) The certified technology park fund may not be used for
operating expenses of the redevelopment commission.
Sec. 24. (a) A redevelopment commission may issue bonds for
the purpose of providing public facilities under this chapter.
(b) The bonds are payable solely from:
(1) property tax proceeds allocated to the certified technology
park fund under section 17 of this chapter;
(2) money distributed to the redevelopment commission under
section 22 of this chapter;
(3) other funds available to the redevelopment commission; or
(4) a combination of the methods stated in subdivisions (1)
through (3).
(c) The bonds shall be authorized by a resolution of the
redevelopment commission.
(d) The terms and form of the bonds shall either be set out in the
resolution or in a form of trust indenture approved by the
resolution.
(e) The bonds must mature within fifty (50) years.
(f) The redevelopment commission shall sell the bonds at public
or private sale upon such terms as determined by the
redevelopment commission.
(g) All money received from any bonds issued under this
chapter shall be applied solely to the payment of the cost of
providing public facilities within a certified technology park, or the
cost of refunding or refinancing outstanding bonds, for which the
bonds are issued. The cost may include:
(1) planning and development of the public facilities and all
related buildings, facilities, structures, and improvements;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that
are necessary or desirable to make the public facilities
suitable for use and operations;
(4) architectural, engineering, consultant, and attorney's fees;
(5) incidental expenses in connection with the issuance and
sale of bonds;
(6) reserves for principal and interest;
(7) interest during construction and for a period thereafter
determined by the redevelopment commission, but not to
exceed five (5) years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve
insurance, letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums, if any, and interest on, the
bonds being refunded or refinanced.
Sec. 25. The establishment of high technology activities and
public facilities within a technology park serves a public purpose
and is of benefit to the general welfare of a unit by encouraging
investment, job creation and retention, and economic growth and
diversity.
issued in connection with a financing under this chapter the interest on
which is excludable from adjusted gross income tax is exempt from
the registration requirements of IC 23-2-1, or any other securities
registration law.
IC 21-3-1.7-3.1, without regard to IC 21-3-1.6-1.2, as added
by this act; divided by
(B) the school corporation's average daily membership for
2000, without regard to IC 21-3-1.6-1.2, as added by this act.
STEP THREE: Multiply the STEP ONE result by the STEP
TWO result.
STEP FOUR: Multiply the STEP THREE result by one-third
(1/3).
(2) For 2002, the previous year revenue determined without
regard to IC 21-3-1.6-1.2, as added by this act, shall be reduced
by an amount equal to the result determined under STEP FOUR
of the following formula:
(A) STEP ONE: This STEP applies only to Madison
Consolidated Schools. Determine the lesser of:
(i) the amount determined under STEP THREE of
subdivision (1); or
(ii) the school corporation's 2001 previous year's revenue
under IC 21-3-1.7-3.1, without regard to IC 21-3-1.6-1.2;
minus the 2001 school corporation's previous year's
revenue under IC 21-3-1.7-3.1, applying IC 21-3-1.6-1.2.
STEP TWO: This STEP applies to a school other than
Madison Consolidated Schools. Determine the result of:
(i) the amount determined under STEP THREE of
subdivision (1); minus
(ii) the amount determined under STEP FOUR of subdivision
(1).
(B) STEP THREE: Divide the clause (A) STEP ONE OR
STEP TWO result, as applicable, by three (3).
(C) STEP FOUR: Multiply the clause (B) STEP THREE
result by one and three-hundredths (1.03).
(3) For 2003, the previous year revenue determined without
regard to IC 21-3-1.6-1.2, as added by this act, shall be reduced
by an amount equal to the reduction amount under subdivision (2)
multiplied by one and two-hundredths (1.02).
(4) For 2004, the previous year revenue determined without
regard to IC 21-3-1.6-1.2, as added by P.L.93-2000, shall be
reduced by an amount equal to the reduction under subdivision
(2) multiplied by one and two-hundredths (1.02).
University to freeze Indiana resident tuition at the level at which
it existed on January 1, 2001:
(1) Ivy Tech State College may increase tuition for Indiana
residents if it does not receive the $852,965 appropriated for
FY 2002-2003 to compensate the college for not increasing
tuition for Indiana residents; and
(2) Vincennes University may increase fees for Indiana
residents if it does not receive the $2,998,265 appropriated for
FY 2002-2003 to compensate the university for not increasing
tuition for Indiana residents.".
Page 37, delete lines 1 through 18.
Page 37, delete lines 38 through 42, begin a new paragraph and
insert:
described in IC 6-2.5-4-5, IC 6-2.5-4-6, and IC 6-2.5-4-11 shall be
considered as having occurred after June 30, 2003, to the extent
that delivery of the property or services 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, 2003, to the extent
that the agreement of the parties to the transaction was entered
into before June 1, 2003, and payment for the property or services
furnished in the transaction is made before July 1, 2003,
notwithstanding the delivery of the property or services after June
30, 2003.
(b) With respect to a transaction constituting the furnishing of
public utility, telephone, or cable television services and
commodities, only transactions for which the charges are collected
upon original statements and billings dated after July 31, 2003,
shall be considered as having occurred after June 30, 2003.
(c) This SECTION expires July 1, 2004.
applies to the following credits:
(1) Business personal property credit (IC 6-3.1-23.8).
(2) Investment credit (IC 6-3.1-24).
(3) Research expense credit (IC 6-3.1-4).
(4) Corporate headquarters relocation credit (IC 6-3.1-25).
(b) The amendments made by this act to increase the credit
described in subsection (a)(1) and (a)(3) and to establish the credit
described in subsection (a)(2) and (a)(4) apply to expenditures
made after December 31, 2003, regardless of when the taxpayer's
taxable year begins. The amendments to the credits described in
subsection (a)(1) and (a)(2) apply to tax payments for taxes first
due and payable in calendar year 2004. Tangible property first
assessed in 2002 is eligible only for one (1) year of the investment
credit (IC 6-3.1-24) in 2004 at the ten percent (10%) rate.
is $5,000 and not $10,000.
(b) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for East End Little League - St.
Joseph Co. is $5,000 and not $10,000.
(c) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Elkhart - road projects -
Elkhart Co. is $10,000 and not $25,000.
(d) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Mishawaka - AM General
road projects - St. Joseph Co. $150,000 is canceled and $75,000 is
appropriated to Mishawaka - road projects - St. Joseph Co. from
the Build Indiana Fund.
(e) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Mishawaka Parks Dept. -
Baker Park - High School Baseball Field - St. Joseph Co. for
$15,000 is canceled.
(f) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Northside Little League - St.
Joseph Co. is $5,000 and not $10,000.
(g) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Osceola - dry wells- St.
Joseph Co. is $10,000 and not $50,000.
(h) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Osceola Little League - St.
Joseph Co. is $5,000 and not $10,000.
(i) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Penn North VFD - safety
equipment - St. Joseph Co. is $7,500 and not $15,000.
(j) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Penn South VFD - safety
equipment - St. Joseph Co. for $15,000 is canceled.
(k) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Penn Twp. - youth center- St.
Joseph Co. for $40,000 is canceled.
(l) Notwithstanding P.L.291-2001, SECTION 38, $275,000 is
appropriated for the School City of Mishawaka from the Build
Indiana Fund.
(m) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for Southwest Little League - St.
Joseph Co. is $5,000 and not $10,000.
(n) Notwithstanding P.L.291-2001, SECTION 38, the
appropriation from the Build Indiana Fund FOR THE BUDGET
AGENCY - LOCAL PROJECTS for WNIT Channel 34 - building
- St. Joseph Co. for $25,000 is canceled.
INSPECTION, is allowed from the Motor Vehicle Highway
Account and not the General Fund.
and when so amended that said bill do pass.