Citations Affected: Numerous citations throughout the Indiana Code.
Synopsis: Phase out of inheritance tax. Phases out the inheritance tax
by giving an increasing credit against the inheritance tax due. Provides
that the inheritance tax does not apply to the transfer of property
interests from a person whose death occurs after June 30, 2008.
Effective: July 1, 2004.
January 8, 2004, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
SECTION 1. IC 4-4-11-36.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 36.1. (a) Except as
provided in subsections (b) through (c), all property, both tangible and
intangible, acquired or held by the authority under this chapter,
IC 4-4-21, or IC 15-7-5 is declared to be public property used for
public and governmental purposes, and all such property and income
therefrom shall at all times be exempt from all taxes imposed by this
state, any county, any city, or any other political subdivision of this
state, except for the financial institutions tax imposed under IC 6-5.5
or a state inheritance death tax imposed under IC 6-4.1.
(b) Property owned by the authority and leased to a person for an
industrial development project is not public property. The property and
the industrial development project are subject to all taxes of the state
or any county, city, or other political subdivision of the state in the
same manner and subject to the same exemptions as are applicable to
all persons.
(c) Any industrial development project financed by a loan under the
authority of this chapter shall not be considered public property and
shall not be exempt from any taxes of this state, or any county, city, or
other political subdivision thereof, except for pollution control
equipment.
(d) An agricultural enterprise or rural development project financed
by a loan under the authority of this chapter or IC 15-7-5 shall not be
considered public property and shall not be exempt from Indiana taxes
or any county, city, or other political subdivision of the state.
(e) This section does not provide a tax exemption for a financial
institution that receives a guaranteed participating loan or an exporter
that receives an eligible export loan or performance bond guarantee
under this chapter or IC 4-4-21.
SECTION 2. IC 4-4-11.2-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 29. All property of the
authority is public property devoted to an essential public and
governmental function and purpose and is exempt from all taxes and
special assessments, direct or indirect, of the state or a political
subdivision of the state. All bonds issued under this chapter are issued
by a body corporate and public of the state, but not a state agency, and
for an essential public and governmental purpose, and the bonds, the
interest thereon, the proceeds received by a holder from the sale of the
bonds to the extent of the holder's cost of acquisition, proceeds
received upon redemption prior to maturity, and proceeds received at
maturity and the receipt of the interest and proceeds shall be exempt
from taxation in the state for all purposes except a state inheritance
death tax imposed under IC 6-4.1.
SECTION 3. IC 4-13.5-4-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 6. (a) All property of
the commission is public property devoted to an essential public and
governmental function and purpose and is exempt from all taxes and
special assessments of the state or a political subdivision of the state.
(b) All bonds or loan contracts issued under this article are issued
by a body corporate and politic of this state, but not a state agency, and
for an essential public and governmental purpose, and the bonds and
loan contracts, the interest thereon, the proceeds received by a holder
from the sale of the bonds or loan contracts to the extent of the holder's
cost of acquisition, proceeds received upon redemption before
maturity, proceeds received at maturity, and the receipt of the interest
and proceeds are exempt from taxation for all purposes except the
financial institutions tax imposed under IC 6-5.5 or a state inheritance
death tax imposed under IC 6-4.1.
SECTION 4. IC 5-1-4-26 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 26. The exercise of the powers
granted by this chapter will be in all respects for the benefit of the
people of the state, for the increase of their commerce and prosperity,
and for the improvement of their health and living conditions, and as
the operation and maintenance of a project by an authority or its agent
will constitute the performance of essential governmental functions,
such authority shall not be required to pay any taxes or assessments
upon or in respect of a project or any property acquired or used by such
authority under the provisions of this chapter, or upon the income
therefrom, and the bonds issued under the provisions of this chapter,
the interest thereon, the proceeds received by a holder from the sale of
such bonds to the extent of the holder's cost of acquisition, or proceeds
received upon redemption prior to maturity or proceeds received at
maturity, and the receipt of such interest and proceeds shall be exempt
from taxation in the state of Indiana for all purposes except the
financial institutions tax imposed under IC 6-5.5 or a state inheritance
death tax imposed under IC 6-4.1.
SECTION 5. IC 5-1-6-10 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 10. The refunding bonds and the
income therefrom shall be exempt from taxation, except the financial
institutions tax and inheritance, estate and transfer death taxes under
IC 6-4.1.
SECTION 6. IC 5-1.4-9-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. All property of the
bank is public property devoted to an essential public and
governmental function and purpose and is exempt from all taxes and
special assessments of the state or a political subdivision of the state.
All bonds or notes issued under this article are issued by a body
corporate and public of this state, but not a state, city, or county agency,
and for an essential public and governmental purpose. The bonds and
notes, the interest thereon, the proceeds received by a holder from the
sale of the bonds or notes to the extent of the holder's cost of
acquisition, proceeds received upon redemption before maturity,
proceeds received at maturity, and the receipt of the interest and
proceeds shall be exempt from taxation in the state for all purposes
except the financial institutions tax imposed under IC 6-5.5 or a state
inheritance death tax imposed under IC 6-4.1.
SECTION 7. IC 5-1.5-9-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. All property of the
bank is public property devoted to an essential public and
governmental function and purpose and is exempt from all taxes and
special assessments, direct or indirect, of the state or a political
subdivision of the state. All bonds or notes issued under this article are
issued by a body corporate and public of this state, but not a state
agency, and for an essential public and governmental purpose and the
bonds and notes, the interest thereon, the proceeds received by a holder
from the sale of the bonds or notes to the extent of the holder's cost of
acquisition, proceeds received upon redemption prior to maturity, and
proceeds received at maturity, and the receipt of the interest and
proceeds shall be exempt from taxation in the state for all purposes
except the financial institutions tax imposed under IC 6-5.5 or a state
inheritance death tax imposed under IC 6-4.1.
SECTION 8. IC 5-20-2-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 14. All bonds and
interim receipts or certificates, proceeds received by a holder from the
sale of them to the extent of the holder's cost of acquisition, proceeds
received upon redemption prior to maturity, proceeds received at
maturity, and interest thereon, are exempt from taxation in the state of
Indiana for all purposes except the financial institutions tax imposed
under IC 6-5.5 or a state inheritance death tax imposed under IC 6-4.1.
SECTION 9. IC 5-21-2-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 15. (a) All property of
the commission is public property devoted to an essential public and
governmental function and purpose and is exempt from all taxes and
special assessments of the state or a political subdivision of the state.
(b) All bonds or loan contracts issued under this article are issued
by a body corporate and politic of this state, but not a state agency, and
for an essential public and governmental purpose. The bonds and loan
contracts, the interest on them, the proceeds received by a holder from
the sale of the bonds or loan contracts to the extent of the holder's cost
of acquisition, proceeds received upon redemption before maturity,
proceeds received at maturity, and the receipt of the interest and
proceeds are exempt from taxation for all purposes except the financial
institutions tax imposed under IC 6-5.5 or a state inheritance death tax
imposed under IC 6-4.1.
SECTION 10. IC 6-4.1-1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 3. (a) This section
expires July 1, 2010.
(b) "Class A transferee" means a transferee who is a lineal ancestor
or lineal descendant of the transferor.
(b) (c) "Class B transferee" means a transferee who is a:
(1) brother or sister of the transferor;
(2) descendant of a brother or sister of the transferor; or
(3) spouse, widow, or widower of a child of the transferor.
apply to a property interest transferred from the estate of an
individual whose death occurs after June 30, 2008.
(b) This chapter expires July 1, 2010.
SECTION 15. IC 6-4.1-4-0.2 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 0.2. This chapter does not apply
to a property interest transferred from the estate of an individual
whose death occurs after June 30, 2008.
SECTION 16. IC 6-4.1-5-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 0.5. Sections 1.1 through 17 of
this chapter do not apply to a property interest transferred from
the estate of an individual whose death occurs after June 30, 2008.
SECTION 17. IC 6-4.1-5-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. (a) For purposes of
this section, the net taxable value of property interests transferred by a
decedent to a particular transferee equals the remainder of:
(1) the total fair market value of the property interests transferred
by the decedent to the transferee under a taxable transfer or
transfers; minus
(2) the total amount of exemptions and deductions provided under
sections 9.1 (repealed) through 15 of IC 6-4.1-3 with respect to
the property interests so transferred.
(b) Except as provided in subsection (e), the inheritance tax
imposed on a decedent's transfer of property interests to a particular
Class A transferee is prescribed in the following table:
NET TAXABLE VALUE OF
PROPERTY INTERESTS
TRANSFERRED INHERITANCE TAX
$25,000 or less ....... 1% of net taxable value
over $25,000 but not
over $50,000 ....... $250, plus 2% of net
taxable value over $25,000
over $50,000 but not
over $200,000 ...... $750, plus 3% of net taxable
value over $50,000
over $200,000 but not
over $300,000 ...... $5,250, plus 4% of net
taxable value over $200,000
over $300,000 but not
over $500,000 ...... $9,250, plus 5% of net
taxable value over $300,000
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 1.1. (a) For purposes of
determining the amount of inheritance tax imposed under this
article, a credit is allowed against the tax imposed under section 1
of this chapter on a decedent's transfer of property interests. The
amount of the credit equals the inheritance tax imposed under
section 1 of this chapter multiplied by the percentage prescribed in
the following table:
DATE OF
PERCENTAGE
PERSON'S DEATH
OF CREDIT
After June 30, 2004, and
before July 1, 2005 20%
After June 30, 2005, and
before July 1, 2006 40%
After June 30, 2006, and
before July 1, 2007 60%
After June 30, 2007, and
before July 1, 2008 80%
(b) A person who is liable for inheritance tax imposed under this
article may claim the credit allowed under this section at the time
the person pays the tax. When the payment is made, the person
collecting the tax shall reduce the inheritance tax due by the
appropriate percentage specified in subsection (a).
SECTION 19. IC 6-4.1-6-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 0.5. This chapter does not apply
to a property interest transferred from the estate of an individual
whose death occurs after June 30, 2008.
SECTION 20. IC 6-4.1-7-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 0.5. This chapter does not apply
to a property interest transferred from the estate of an individual
whose death occurs after June 30, 2008.
SECTION 21. IC 6-4.1-8-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 0.5. This chapter does not apply
to a property interest transferred from the estate of an individual
whose death occurs after June 30, 2008.
SECTION 22. IC 6-4.1-9-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 0.5. This chapter does not apply
to a property interest transferred from the estate of an individual
whose death occurs after June 30, 2008.
SECTION 23. IC 6-4.1-12-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 1. (a) This section
expires July 1, 2010.
(b) The probate court of the county:
(1) in which a resident decedent was domiciled at the time of the
decedent's death; or
(2) in which the resident decedent's estate is being administered,
if different from the county described in subdivision (1);
has jurisdiction to determine the inheritance tax imposed as a result of
the resident decedent's death and to hear all matters related to the tax
determination. However, if two (2) or more courts in a county have
probate jurisdiction, the first court acquiring jurisdiction under this
article acquires exclusive jurisdiction over the inheritance tax
determination.
SECTION 24. IC 6-4.1-12-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2. (a) This section
expires July 1, 2010.
(b) Each county assessor shall serve as the county inheritance tax
appraiser for the county he the county assessor serves. However, the
appropriate probate court shall appoint a competent and qualified
resident of the county to appraise property transferred by a resident
decedent if the county assessor is:
(1) beneficially interested as an heir of the decedent's estate;
(2) the personal representative of the decedent's estate; or
(3) related to the decedent or a beneficiary of the decedent's estate
within the third degree of consanguinity or affinity.
A person who is appointed to act as the county inheritance tax
appraiser under this section shall receive a fee for his the person's
services. The court, subject to the approval of the department of state
revenue, shall set the fee.
SECTION 25. IC 6-4.1-12-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 4. (a) This section
expires July 1, 2010.
(b) The county assessor shall receive funds from the county to pay
the actual cost of equipment which he that the county assessor needs
to perform the duties assigned to him under this article.
SECTION 26. IC 6-4.1-12-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 6. The department of
state revenue:
(1) shall supervise the enforcement of this article;
(2) shall supervise the collection of taxes imposed under this
article;
(3) shall investigate the manner in which this article is
administered and enforced in the various counties of this state;
(4) shall provide the forms and books required to implement this
article;
(5) shall promulgate any rules or regulations which are necessary
for the interpretation or the enforcement of this article;
(6) may investigate any facts or circumstances which are relevant
to the taxes imposed under this article;
(7) shall provide the inheritance tax administrator with a secretary
(until the elimination of the office of inheritance tax
administrator); and
(8) may provide the inheritance tax administrator with assistants,
clerks, or stenographers (until the elimination of the office of
inheritance tax administrator).
SECTION 27. IC 6-4.1-12-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 8. (a) This section
expires July 1, 2010.
(b) The governor shall, with the advice of the department of state
revenue, appoint a state inheritance tax administrator. The inheritance
tax administrator shall receive a salary to be fixed in the manner
prescribed in IC 4-12-1-13. In addition, he the inheritance tax
administrator shall receive the same mileage and travel allowances
which other state employees receive.
SECTION 28. IC 6-4.1-12-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. (a) This section
expires July 1, 2010.
(b) The inheritance tax administrator:
(1) shall supervise the administration of this article;
(2) shall, on behalf of the department of state revenue, perform
the administrative duties assigned to the department under this
article;
(3) shall file reports with the department of state revenue on the
first day of January, April, July, and October of each year;
(4) may, with the approval of the governor, employ special
auditors or appraisers to appraise any property interest which is
transferred by a decedent under a taxable transfer; and
(5) may, with the approval of the governor, employ special
counsel to advise the administrator or to represent the
administrator or the department of state revenue in any
proceeding initiated by or against the administrator or the
department.
be paid out of taxes levied by such municipality for the acquiring,
purchase, construction, or the reconstruction of a utility, or any part
thereof, shall be exempt from taxation for all purposes except a state
inheritance death tax imposed under IC 6-4.1.
(c) This section does not apply to measuring the franchise tax
imposed on the privilege of transacting the business of a financial
institution in Indiana under IC 6-5.5.
(d) No other statute exempting interest paid on debt obligations of:
(1) a state or local public entity, including an agency, a
government corporation, or an authority; or
(2) a corporation or other entity leasing real or personal property
to an entity described in subdivision (1);
applies to measuring of the franchise tax imposed on financial
institutions under IC 6-5.5.
SECTION 32. IC 8-10-1-27, AS AMENDED BY P.L.271-2003,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 27. (a) The exercise of the powers granted by this
article will be in all respects for the benefit of the people of the state,
for the increase of their commerce and prosperity, and for the
improvement of their health and living conditions.
(b) As the operation and maintenance of a port or project by the
commission will constitute the performance of essential governmental
functions, the commission shall not be required to pay any taxes or
assessments upon any port or project or any property acquired or used
by the commission under the provisions of this article or upon the
income therefrom. The bonds issued by the commission, the interest
thereon, the proceeds received by a holder from the sale of such bonds
to the extent of the holder's cost of acquisition, or proceeds received
upon redemption prior to maturity or proceeds received at maturity, and
the receipt of such interest and proceeds shall be exempt from taxation
in the state of Indiana for all purposes except the financial institutions
tax imposed under IC 6-5.5 or a state inheritance death tax imposed
under IC 6-4.1.
(c) Notwithstanding any other statute, a lessee's leasehold estate in
land that is part of a port and that is owned by the state or the
commission is exempt from property taxation. However, an exemption
under this subsection is not available for land not located at a port.
SECTION 33. IC 8-14.5-6-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 12. All bonds or notes
issued under this article are issued by a body corporate and politic of
this state, but not a state agency, and for an essential public and
governmental purpose. The bonds and notes, the interest on the bonds
and notes, the proceeds received by an owner from the sale of the
bonds or notes to the extent of the owner's cost of acquisition, proceeds
received upon redemption for maturity, proceeds received at maturity,
and the receipt of the interest and proceeds are exempt from taxation
for all purposes except the financial institutions tax imposed under
IC 6-5.5 or a state inheritance death tax imposed under IC 6-4.1.
SECTION 34. IC 8-21-9-31, AS AMENDED BY P.L.192-2002(ss),
SECTION 145, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 31. (a) The exercise of the powers
granted by this chapter will be in all respects for the benefit of the
people of the state, for the increase of their commerce and prosperity,
and for the improvement of their health and living conditions, and as
the operation and maintenance of an airport facility or airport facilities
by the department will constitute the performance of essential
governmental functions, the department shall not be required to pay
any taxes or assessments upon any airport facility or airport facilities
or any property acquired or used by the department under the
provisions of this chapter, or upon the income therefrom, and the bonds
issued under the provisions of this chapter, the interest thereon, the
proceeds received by a holder from the sale of such bonds to the extent
of the holder's cost of acquisition, or proceeds received upon
redemption prior to maturity or proceeds received at maturity, and the
receipt of such interest and proceeds shall be exempt from taxation in
the state of Indiana for all purposes except the financial institutions tax
imposed under IC 6-5.5 or a state inheritance death tax imposed under
IC 6-4.1.
(b) All properties both real and personal owned and operated by the
department or leased by the department for proprietary purposes shall
be assessed and added to the local tax rolls as any other private
property. Such proprietary operations, under control of either the
authority or a lessee of the department, shall be subject to Indiana
adjusted gross income and sales tax laws.
SECTION 35. IC 8-22-3-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 17. (a) For the purpose
of raising money to pay all bonds issued under section 16 of this
chapter and any interest on them, the principal of and interest on any
outstanding bonds or obligations payable from taxes and assumed
under section 33 of this chapter, and leases entered into under
IC 8-22-3.6 that are payable in whole or in part from a property tax
levy, the board shall levy each year a special tax upon all of the
property, both real and personal, located within the district in a manner
and in an amount to meet and pay the principal of the bonds as they
severally mature, together with all interest accruing on them, and to pay
lease rentals as they become due, after taking into account all other
revenues pledged to the payment of the bonds or lease rentals.
(b) The board shall file the tax levied each year with the county
auditor of the county in which the district is located under IC 6-1.1-17.
(c) The tax levied shall be collected and enforced by the treasurer
of the county under IC 6-1.1, and as the tax is collected by the treasurer
of the county it shall be paid over to the treasurer of the authority. The
treasurer shall accumulate and keep the tax in a separate fund to be
known as the "airport authority bond fund", which shall be applied to
the payment of the bonds and the interest on them as they severally
mature and to the payment of lease rentals and to no other purposes.
(d) The bonds issued under this chapter and the interest on them are
exempt from taxation for all purposes except the financial institutions
tax imposed under IC 6-5.5 or a state inheritance death tax imposed
under IC 6-4.1.
SECTION 36. IC 8-22-3-18.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 18.1. (a) The board
may:
(1) finance capital improvements, including the acquisition of real
estate;
(2) refund any bonds; or
(3) pay any loan contract;
by borrowing money and issuing revenue bonds from time to time
under this section.
(b) The issuance of revenue bonds must be authorized by ordinance
of the board in at least one (1) series, may bear a date or dates, may
mature at a time or times not exceeding forty (40) years from their
respective dates, may bear interest, may be in a denomination or
denominations, may be in a form, either coupon or registered, may
carry registration and conversion privileges, may be executed in a
manner, may be payable in a medium of payment and at a place or
places, may be subject to terms of redemption, with or without a
premium, may be declared or become due before the maturity date,
may provide for the replacement of mutilated, destroyed, stolen, or lost
bonds, may be authenticated in a manner and upon compliance with
conditions, and may contain other terms and covenants that the
ordinance of the board provides. Notwithstanding the form or tenor of
the bonds, and in the absence of express recitals on their faces that the
bonds are nonnegotiable, the bonds are negotiable instruments.
(c) The issuance of revenue bonds must be approved as follows:
(1) When the authority is established by an eligible entity, by the
entity's executive.
(2) When the authority is established by at least two (2) eligible
entities acting jointly, by the executive of each of those entities.
(3) When the authority was established under IC 19-6-2 (before
its repeal on April 1, 1980), by the executive of the consolidated
city.
(4) When the authority was established under IC 19-6-3 (before
its repeal on April 1, 1980), by the county fiscal body.
For purposes of this subsection, the entire legislative body of a town is
considered the executive of the town.
(d) The bonds must be executed in the name of the authority by the
president of the board and attested by the secretary, and interest
coupons may be executed by placing on the interest coupons the
facsimile signature of the president of the board. The bonds are valid
and binding obligations of the authority for all purposes,
notwithstanding that before delivery of the bonds any of the persons
whose signatures appear on the bonds have ceased to be officers of the
entity or authority, as if the persons had continued to be officers of the
entity and authority until after delivery. The validity of the
authorization and issuance of the bonds is not dependent on or affected
in any way by proceedings taken for the improvement for which the
bonds are to be issued, or by contracts made in connection with the
improvement. An ordinance authorizing revenue bonds must provide
that a revenue bond contain a recital that the bond is issued under this
chapter, and a bond containing the recital under authority of an
ordinance is considered valid and issued in conformity with this
chapter.
(e) At the discretion of the board, the revenue bonds shall be sold
either under the procedures for selling public bonds or at a negotiated
sale. The bonds may be sold in installments at different times, or an
entire issue or series may be sold or exchanged at one (1) time. Any
issue or series of the bond may be sold in part or sold in part in
installments at different times or at one (1) time.
(f) The bonds are special obligations of the authority and are
payable solely from and secured by a lien upon the revenues of all or
part of the facilities of the authority, as shall be more fully described in
the ordinance of the board authorizing the issuance of the bonds, and,
subject to the Constitution and to the prior or superior rights of any
person, the board may by ordinance pledge and assign for the security
of the bonds all or part of the gross or net revenues of the enterprise.
(g) All bonds of the same issue shall be equally and ratably secured,
without priority by reason of number, date of bonds, of sale, of
execution, or of delivery, by a lien upon the revenues in accordance
with this section and the ordinance authorizing the issuance of the
bonds.
(h) This chapter does not alter the rights granted to or the
agreements made with the holders of any notes, bonds, or other
obligations of the board outstanding on April 1, 1980.
(i) The bonds, and interest on the bonds, are not a debt of the
authority or the board, nor a charge, a lien, or an encumbrance, legal or
equitable, upon property of the board, or upon income, receipts, or
revenues of the board other than those revenues of the facilities that
have been pledged to the payment of the bonds. Every bond must recite
in substance that the bond, including interest, is payable solely from the
revenues pledged to the bond's payment, and that the board is under no
obligation to pay the bond, except from those revenues.
(j) The bonds and the income from the bonds are exempt from
taxation, except the financial institutions tax imposed under IC 6-5.5
or a state inheritance death tax imposed under IC 6-4.1.
(k) In order that the payment of the revenue bonds and the interest
on the bonds be adequately secured, the board and its officers, agents,
and employees shall:
(1) pay or cause to be paid punctually the principal of every bond,
and the interest on every bond, on the date or dates and at the
place or places and in the manner and out of the funds mentioned
in the bonds and in the attached coupons, in accordance with the
ordinance authorizing their issuance;
(2) operate the facilities of the authority, the revenues of which
are pledged to the bonds, in an efficient and economical manner
and establish, levy, maintain, and collect fees, tolls, rentals, rates,
and other charges that may be necessary or proper, which must be
at least sufficient after making due and reasonable allowance for
contingencies and for a margin of error in the estimates:
(A) to pay all current expenses of operation, maintenance, and
repair of the facilities;
(B) to pay the interest on and principal of the bonds as the
bonds become due and payable;
(C) to comply in all respects with the terms of the ordinance
authorizing the issuance of bonds or any other contract or
agreement with the holders of the bonds; and
(D) to meet any other obligations of the board that are charges,
liens, or encumbrances upon the revenues of the facilities;
(3) operate and maintain the facilities and every part of the
facilities in good working order and condition;
facilities to which its right exists;
(7) events of default and terms and conditions upon which the
bonds become or may be declared due before maturity and as to
the terms and conditions upon which declaration and its
consequences may be waived;
(8) the rights, liabilities, powers, and duties arising upon the
breach by it of any covenants, conditions, or obligations;
(9) the vesting in a trust or trustees the right to enforce covenants
made to secure, to pay, or in relation to the bonds, as to the
powers and duties of the trustee or trustees, and the limitation of
liabilities, and as to the terms and conditions upon which the
holders of the bonds or any proportion or percentage of the
holders of the bonds may enforce any covenants made or duties
imposed under this chapter;
(10) a procedure by which the terms of an ordinance authorizing
revenue bonds, or any other contract with bondholders, such as an
indenture of trust or similar instrument, may be amended or
abrogated and as to the amount of bonds, the holders of which
must consent to them and the manner in which such consent may
be given;
(11) the execution of all instruments necessary or convenient in
the exercise of the powers granted by this chapter or in the
performance of the duties of the board and the officers, agents,
and employees of them;
(12) refraining from pledging, claiming, or taking the benefit or
advantage of any stay or extension law whenever enacted, which
may affect the duties or covenants of the board in relation to the
bonds, or the performance or the lien of the bonds;
(13) the purchase out of funds available, including the proceeds
of revenue bonds, of outstanding notes, bonds, or obligations and
the price or prices at which and the manner in which purchases
may be made; and
(14) other acts and things that may be necessary, convenient, or
desirable in order to secure the bonds, or that may tend to make
the bonds more marketable.
This section does not authorize the board to make covenants, to
perform an act, or to do anything that requires the expenditure by the
board of funds other than revenues received or receivable from the
facilities.
(m) In the event that the board defaults in the payment of the
principal or interest on any of the revenue bonds after the bonds
become due, whether at maturity or upon call for redemption, and the
default continues for a period of thirty (30) days, or in the event that the
board or the board's officers, agents, or employees fail or refuse to
comply with this chapter or default in an agreement made with the
holders of the bonds, any holder or holders of revenue bonds, or a
trustee for the holder or holders of the bonds, has the right to apply in
an appropriate judicial proceeding to the circuit or superior court of the
county in which the district is situated, in which the facilities are
located, or in any court of competent jurisdiction, for the appointment
of a receiver of the facilities, whether or not the holder, holders, or
trustee is seeking or has sought to enforce any other right or to exercise
any remedy in connection with the bonds. Upon application, the circuit
or superior court may appoint, and if the application is made by the
holders of twenty-five percent (25%) in principal amount of the bonds
then outstanding or by a trustee for holders of the bonds in that amount
shall appoint, a receiver for the enterprise.
(n) The receiver appointed shall, directly or by the receiver's agents
and attorneys, enter into and upon and take possession of the facilities,
the revenues of which are pledged, and every part of the facilities, and
may exclude the board, the board's officers, agents, and employees, and
all persons claiming under them. The receiver may have, hold, use,
operate, manage, and control the facilities in the name of the board or
otherwise, as the receiver considers best, and may exercise all rights
and powers of the board with respect to the facilities as the board itself
might do. The receiver shall maintain, restore, and insure the facilities,
shall make all necessary repairs, shall establish, levy, maintain, and
collect fees, tolls, rentals, and other charges in connection with the
facilities that the receiver considers necessary or proper and
reasonable, and shall collect and receive all revenues, deposit the
revenues in a separate account, and apply the revenues in the manner
that the court directs.
(o) Whenever all that is due upon the revenue bonds and interest on
the bonds, and upon other notes, bonds, or other obligations, and
interest on the notes, bonds, or obligations, having a charge, lien, or
encumbrance on the revenues of the facilities and under the terms of
covenants or agreements with bondholders has been paid or deposited,
and all defaults have been cured and made good, the court may in its
discretion, and after notice and hearing that the court considers
reasonable and proper, direct the receiver to surrender possession of
the facilities to the board, with the right of the holders of the bonds to
secure the appointment of a receiver upon subsequent default
remaining in force.
(p) The receiver shall act under the direction and supervision of the
court making the appointment and is at all times subject to the orders
and decrees of the court, including possible removal. Nothing
contained in this section limits or restricts the jurisdiction of the court
to enter other or further orders and decrees as the court considers
necessary or appropriate for the exercise by the receiver of functions
specifically set forth.
(q) Subject to contractual limitations binding upon the holders or a
trustee of an issue of revenue bonds, including but not limited to the
restrictions of the exercise of a remedy to a specified proportion or
percentage of the holders, a holder or trustee of the bonds may, for the
equal benefit and protection of all holders of revenue bonds similarly
situated:
(1) by mandamus or other suit, action, or proceeding at law or in
equity enforce rights against the board and any of the board's
officers, agents, and employees and require and compel the board
or the board's officers, agents, or employees to perform and carry
out duties and obligations under this chapter and covenant
agreements with bondholders;
(2) by action or suit in equity require the board to account as if the
board were the trustee of an express trust;
(3) by action or suit in equity enjoin any acts or things that may be
unlawful or in violation of the rights of the bondholders; or
(4) bring suit upon the bonds.
No remedy conferred by this chapter upon a holder or trustee of
revenue bonds is intended to be exclusive of any other remedy, but
each remedy is in addition to every other remedy and may be exercised
without exhausting and without regard to any other remedy conferred
by this chapter or by any other law. No waiver of a default or breach of
duty or contract, whether by a holder or trustee of revenue bonds
extends to or affects a subsequent default or breach of duty or contract
or impairs any rights or remedies on them. No delay or omission of a
bondholder or trustee extends to or affects a subsequent default or
breach of duty or contract or impairs any rights or remedies. No delay
or omission of a bondholder or trustee to exercise a right or power
accruing upon default impairs the right or power or may be construed
to be a waiver of the default or acquiescence in it. Every substantive
right and every remedy conferred upon the holders of revenue bonds
may be enforced and exercised from time to time and as often as is
expedient. In case any suit, action, or proceeding to enforce a right or
exercise a remedy is brought or taken and then discontinued or
abandoned, or is determined adversely to the holder or trustee of the
revenue bonds, then the board and the holder or trustee shall be
restored to their former positions and rights and remedies as if no suit,
action, or proceeding had been brought or taken.
(r) Refunding or refunding and improvement revenue bonds may be
issued in accordance with the provisions for the refinancing or
refinancing and improving of any of the facilities for which revenue
bonds or a loan contract have been issued or made under this section
or section 19 of this chapter.
(s) This section constitutes full authority for the issuance of revenue
bonds. No procedure, proceedings, publications, notices, consents,
approvals, orders, acts, or things by the board, by a board, an officer,
a commission, a department, an agency, or an instrumentality of the
state, or by an eligible entity is are required to issue revenue bonds or
to do any act or perform anything under this chapter, except as
presented by this chapter. The powers conferred by this chapter are in
addition to, and not in substitution for, and the limitations imposed by
this section do not affect the powers conferred in another section of this
chapter or by any other statute.
SECTION 37. IC 8-22-3.7-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 21. (a) All:
(1) property owned by the development authority;
(2) revenues of the development authority; and
(3) bonds issued by the development authority, the interest on the
bonds, the proceeds received by a holder from the sale of bonds
to the extent of the holder's cost of acquisition, proceeds received
upon redemption before maturity, proceeds received at maturity,
and the receipt of interest in proceeds;
are exempt from taxation in Indiana for all purposes except the
financial institutions tax imposed under IC 6-5.5 or a state inheritance
death tax imposed under IC 6-4.1.
(b) All securities issued under this chapter are exempt from the
registration requirements of IC 23-2-1 and other securities registration
statutes.
SECTION 38. IC 14-13-1-38 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 38. (a) The commission
is not required to pay any taxes or assessments upon any of the
following:
(1) A project of the commission.
(2) A facility, betterment, or improvement within a project.
(3) Property acquired or used by the commission under this
chapter or IC 14-6-29 (before its repeal).
(4) The income or revenue from the property.
(b) The:
from the property. The following are exempt from taxation in Indiana
for all purposes except the financial institutions tax imposed under
IC 6-5.5 or a state inheritance death tax imposed under IC 6-4.1:
(1) Bonds issued under this chapter or under IC 14-3-12 (before
its repeal).
(2) Interest on the bonds.
(3) Proceeds:
(A) received by a holder from the sale of bonds to the extent
of the holder's cost of acquisition;
(B) received upon redemption before maturity; or
(C) received at maturity.
(4) Receipt of the interest and proceeds.
SECTION 41. IC 15-1.5-9-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 9. Interest paid on
bonds issued under this chapter is exempt from taxation for all
purposes, except an inheritance a death tax under IC 6-4.1 and for
determining financial institution tax liabilities under IC 6-5.5.
SECTION 42. IC 16-22-6-34 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 34. The following are
exempt from state taxation except for the financial institutions tax
imposed under IC 6-5.5 or a state inheritance death tax imposed under
IC 6-4.1:
(1) Property owned by the authority.
(2) Revenues of the authority.
(3) Bonds or other securities and the interest on bonds and
securities issued by the authority.
(4) Proceeds received by a holder from the sale of the bonds, to
the extent of the holder's cost of acquisition.
(5) Proceeds received upon redemption at or before maturity and
the interest on the proceeds.
SECTION 43. IC 16-22-7-39 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 39. The following are
exempt from state taxation except the financial institutions tax
imposed under IC 6-5.5 and the state inheritance tax death taxes
imposed under IC 6-4.1:
(1) All property owned by the authority.
(2) All revenues of the authority.
(3) All bonds or other securities issued by the authority and the
interest on the bonds or other securities, the proceeds received by
a holder from the sale of bonds to the extent of the holder's cost
of acquisition, proceeds received upon redemption at or before
maturity, and the interest on the proceeds.
management fund established by this chapter; and
(2) "catastrophic fund" refers to the political subdivision
catastrophic liability fund established by IC 27-1-29.1.
(b) The commission may issue its bonds or notes in amounts that it
considers necessary to provide funds to:
(1) establish or maintain the reserve account in the catastrophic
fund provided for in IC 27-1-29.1-8;
(2) provide for the payment of liabilities payable out of the basic
fund to the extent such liabilities exceed the money in the basic
fund; and
(3) pay, fund, or refund, regardless of when due, the principal of
or interest or redemption premiums on bonds or notes issued
under subdivision (1) or (2).
Bonds or notes issued under subdivision (2) must mature within three
(3) years after their date of issuance.
(c) The bonds or notes of the commission may be issued and sold by
the commission to the Indiana bond bank under IC 5-1.5.
(d) Every issue of bonds or notes is an obligation of the commission.
An issue of bonds or notes under subsection (b)(1) is payable solely
from assessments imposed by the commission under IC 27-1-29.1 on
political subdivisions that are members of the catastrophic fund, and
the commission may secure such bonds or notes by a pledge of
assessments imposed under IC 27-1-29.1. An issue of bonds or notes
under subsection (b)(2) is payable solely from assessments imposed by
the commission under section 12 of this chapter on political
subdivisions that are members of the basic fund, and the commission
may secure such bonds or notes by a pledge of assessments imposed
under section 12 of this chapter.
(e) A bond or note of the commission:
(1) is not a debt, liability, loan of credit, or pledge of the faith and
credit of the state; and
(2) must contain on its face a statement that the commission is
obligated to pay principal and interest, and the redemption
premium, if any, and that the faith, credit, and taxing power of the
state are not pledged to the payment of the bond or note.
(f) The state pledges to and agrees with the holders of the bonds or
notes issued under this chapter that the state will not:
(1) limit or restrict the rights vested in the commission to fulfill
the terms of any agreement made with the holders of its bonds or
notes; or
(2) in any way impair the rights or remedies of the holders of the
bonds or notes;
bonds or notes to the extent of the holder's cost of acquisition, proceeds
received upon redemption before maturity, and proceeds received at
maturity, and the receipt of the interest and proceeds are exempt from
taxation in Indiana for all purposes except the financial institutions tax
imposed under IC 6-5.5 or a state inheritance death tax imposed under
IC 6-4.1.
SECTION 48. IC 28-5-2-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 2. If any certificate
holder of any industrial loan and investment company shall die, leaving
unpledged certificates in such company and no executor of his the
certificate holder's will or administrator of his the certificate
holder's estate has been appointed, such company, upon receiving a
waiver from the inheritance tax administrator (or, after the
elimination of the office of inheritance tax administrator, from the
department of state revenue) under IC 6-4.1, may, in its discretion,
pay the value of such certificates to the widow, widower, or next of kin,
or may apply the value of such certificates to the payment of funeral
expenses or the expenses of the last sickness or other just debts of the
decedent. As a condition of such payment, such company shall require
proof by affidavit as to the parties in interest and shall also require the
filing of proper waivers and the execution of a bond of indemnity with
proper sureties from the parties interested, and a proper acquittance and
receipt for such payment by the person to whom such payment is made
shall fully release the company, and such company shall not thereafter
be held liable to the decedent's executor or administrator thereafter
appointed, or to any other person.
SECTION 49. IC 29-1-17-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 14. (a) If, after an estate
has been settled and the personal representative discharged, other
property of the estate shall be discovered, or if it shall appear that any
necessary act remains unperformed on the part of the personal
representative, or for any other proper cause, the court, upon the
petition of the discharged personal representative or any person
interested in the estate and, without notice or upon such notice as it
may direct, may order that said estate be reopened. It may reappoint the
personal representative or appoint another personal representative to
administer such property or perform such act as may be deemed
necessary. Unless the court shall otherwise order, the provisions of this
article as to an original administration shall apply to the proceedings
had in the reopened administration so far as may be, but no claim
which is already barred can be asserted in the reopened administration.
(b) Whenever any solvent estate has been closed, and it thereafter
appears that any assets thereof have not been fully administered upon,
the court may, if it appears practicable, order such assets distributed to,
or title vested in, the persons entitled thereto after compliance with
requirements as to an inheritance a death tax imposed under IC 6-4.1,
in lieu of reopening the estate as provided in the preceding subsection.
No additional notice of such proceedings shall be necessary unless so
ordered by the court.
SECTION 50. IC 29-1-17-15.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 15.1. (a) Whenever any
person has died leaving property or any interest therein and no general
administration has been commenced on his the person's estate in this
state, nor has any will been offered for probate in this state, within five
(5) months after his the person's death, any person claiming an interest
in such property as heir or through an heir may file a petition in any
court which would be of proper venue for the administration of such
decedent's estate, to determine the heirs of said decedent and their
respective interests as heirs in the estate.
(b) The petition shall state:
(1) the name, age, domicile, and date of death of the decedent;
(2) the names, ages, and residence addresses of the heirs, so far as
known or can with reasonable diligence be ascertained;
(3) the names and residence addresses of any persons claiming
any interest in such property through an heir, so far as known or
can by reasonable diligence be ascertained;
(4) a particular description of the property with respect to which
such determination is sought; and
(5) the net value of the estate.
(c) Upon the filing of the petition, the court shall fix the time for the
hearing thereof, notice of which shall be given to:
(1) all persons known or believed to claim any interest in the
property as heir or through an heir of the decedent;
(2) all persons who may at the date of the filing of the petition be
shown by the records of conveyances of the county in which any
real property described in such petition is located to claim any
interest therein through the heirs of the decedent; and
(3) any unknown heirs of the decedent.
Such notice shall be given by publication and in addition, personal
notice by registered mail shall be given to every such person whose
address is known to the petitioner. Upon satisfactory proofs, including
proof of compliance with inheritance the death tax laws of this state
set forth in IC 6-4.1, the court shall make a decree determining the
heirs of said decedent and their respective interests as heirs in said
property.
(d) A certified copy of the decree shall be recorded at the expense
of the petitioner in each county in which any real property described
therein is situated except the county in which the decree is entered, and
shall be conclusive evidence of the facts determined therein as against
all parties to the proceedings.
SECTION 51. IC 29-3-3-3, AS AMENDED BY P.L.192-2002(ss),
SECTION 171, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 3. Except as otherwise determined
in a dissolution of marriage proceeding, a custody proceeding, or in
some other proceeding authorized by law, including a proceeding under
section 6 of this chapter or another proceeding under this article, and
unless a minor is married, the parents of the minor jointly (or the
survivor if one (1) parent is deceased), if not an incapacitated person,
have, without the appointment of a guardian, giving of bond, or order
or confirmation of court, the right to custody 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 death tax law (IC 6-4.1)
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 52. IC 30-4-1-2, AS AMENDED BY P.L.84-2002,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 2. As used in this article:
(1) "Adult" means any person eighteen (18) years of age or older.
(2) "Affiliate" means a parent, descendant, spouse, spouse of a
descendant, brother, sister, spouse of a brother or sister,
employee, director, officer, partner, joint venturer, a corporation
subject to common control with the trustee, a shareholder, or
corporation who controls the trustee or a corporation controlled
by the trustee other than as a fiduciary.
(3) "Beneficiary" has the meaning set forth in IC 30-2-14-2.
(4) "Breach of trust" means a violation by the trustee of any duty
which is owed to the settlor or beneficiary.
(5) "Charitable trust" means a trust in which all the beneficiaries
are the general public or organizations, including trusts,
corporations, and associations, and that is organized and operated
wholly for religious, charitable, scientific, public safety testing,
literary, or educational purposes. The term does not include
charitable remainder trusts, charitable lead trusts, pooled income
funds, or any other form of split-interest charitable trust that has
at least one (1) noncharitable beneficiary.
(6) "Court" means a court having jurisdiction over trust matters.
(7) "Income", except as otherwise stated in a trust agreement, has
the meaning set forth in IC 30-2-14-4.
(8) "Income beneficiary" has the meaning set forth in
IC 30-2-14-5.
(9) "Inventory value" means the cost of property to the settlor or
the trustee at the time of acquisition or the market value of the
property at the time it is delivered to the trustee, or the value of
the property as finally determined for purposes of an estate or
inheritance a death tax law set forth in IC 6-4.1.
(10) "Minor" means any person under the age of eighteen (18)
years.
(11) "Person" has the meaning set forth in IC 30-2-14-9.
(12) "Personal representative" means an executor or administrator
of a decedent's or absentee's estate, guardian of the person or
estate, guardian ad litem or other court appointed representative,
next friend, parent or custodian of a minor, attorney in fact, or
custodian of an incapacitated person (as defined in
IC 29-3-1-7.5).
(13) "Principal" has the meaning set forth in IC 30-2-14-10.
(14) "Remainderman" means a beneficiary entitled to principal,
including income which has been accumulated and added to the
principal.
(15) "Settlor" means a person who establishes a trust including
the testator of a will under which a trust is created.
(16) "Trust estate" means the trust property and the income
derived from its use.
under this chapter; and
(2) a person:
(A) holding a valid lien, mortgage, security interest, or interest
under a conditional sales contract; or
(B) who is a co-owner of the property;
did not know of the illegal use;
the court shall determine whether the secured interest or the co-owner's
interest is equal to or in excess of the appraised value of the property.
(b) Appraised value is to be determined as of the date of judgment
on a wholesale basis by:
(1) agreement between the secured party or the co-owner and the
prosecuting attorney; or
(2) the inheritance tax appraiser for the county in which the action
is brought (before the elimination of the office of inheritance
tax appraiser).
(c) If the amount:
(1) due to the secured party; or
(2) of the co-owner's interest;
is equal to or greater than the appraised value of the property, the court
shall order the property released to the secured party or the co-owner.
(d) If the amount:
(1) due the secured party; or
(2) of the co-owner's interest;
is less than the appraised value of the property, the holder of the
interest or the co-owner may pay into the court an amount equal to the
owner's equity, which shall be the difference between the appraised
value and the amount of the lien, mortgage, security interest, interest
under a conditional sales contract, or co-owner's interest. Upon such
payment, the state or unit, or both, shall relinquish all claims to the
property, and the court shall order the payment deposited as provided
in section 4(d) of this chapter.
(e) If the seized property is a vehicle and if the security holder or the
co-owner elects not to make payment as stated in subsection (d), the
vehicle shall be disposed of in accordance with section 4(c) of this
chapter.
SECTION 55. IC 34-24-2-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 5. (a) If a person
holding a valid lien, mortgage, security interest, or interest under a
conditional sales contract did not know the property was the object of
corrupt business influence, the court shall determine whether the
secured interest is equal to or in excess of the appraised value of the
property.
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 48. All property, both
tangible and intangible, acquired or held by the authority under this
chapter is public property used for public and governmental purposes.
All the property, along with the income from the property, is exempt
from all taxes imposed by the state or a political subdivision, except for
the financial institutions tax imposed under IC 6-5.5 or a state
inheritance death tax imposed under IC 6-4.1.
SECTION 59. IC 36-9-3-31, AS AMENDED BY P.L.90-2002,
SECTION 504, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 31. (a) This section applies to an
authority that includes a county having a population of more than four
hundred thousand (400,000) but less than seven hundred thousand
(700,000).
(b) The authority may issue revenue or general obligation bonds
under this section.
(c) The board may issue revenue bonds of the authority for the
purpose of procuring money to pay the cost of acquiring real or
personal property for the purpose of this chapter. The issuance of bonds
must be authorized by resolution of the board and approved by the
county fiscal bodies of the counties in the authority before issuance.
The resolution must provide for the amount, terms, and tenor of the
bonds, and for the time and character of notice and mode of making
sale of the bonds.
(d) The bonds are payable at the times and places determined by the
board, but they may not run more than thirty (30) years after the date
of their issuance and must be executed in the name of the authority by
an authorized officer of the board and attested by the secretary. The
interest coupons attached to the bonds may be executed by placing on
them the facsimile signature of the authorized officer of the board.
(e) The president of the authority shall manage and supervise the
preparation, advertisement, and sale of the bonds, subject to the
authorizing ordinance. Before the sale of bonds, the president shall
cause notice of the sale to be published in accordance with IC 5-3-1,
setting out the time and place where bids will be received, the amount
and maturity dates of the issue, the maximum interest rate, and the
terms and conditions of sale and delivery of the bonds. The bonds shall
be sold in accordance with IC 5-1-11. After the bonds have been
properly sold and executed, the executive director or president shall
deliver them to the controller of the authority and take a receipt for
them, and shall certify to the treasurer the amount that the purchaser is
to pay, together with the name and address of the purchaser. On
payment of the purchase price the controller shall deliver the bonds to
the purchaser, and the controller and executive director or president
shall report their actions to the board.
(f) General obligation bonds issued under this section are subject to
the provisions of IC 5-1 and IC 6-1.1-20 relating to the filing of a
petition requesting the issuance of bonds, the appropriation of the
proceeds of bonds, the right of taxpayers to appeal and be heard on the
proposed appropriation, the approval of the appropriation by the
department of local government finance, the right of taxpayers to
remonstrate against the issuance of bonds, and the sale of bonds for not
less than their par value.
(g) Notice of the filing of a petition requesting the issuance of
bonds, notice of determination to issue bonds, and notice of the
appropriation of the proceeds of the bonds shall be given by posting in
the offices of the authority for a period of one (1) week and by
publication in accordance with IC 5-3-1.
(h) The bonds are not a corporate indebtedness of any unit, but are
an indebtedness of the authority as a municipal corporation. A suit to
question the validity of the bonds issued or to prevent their issuance
may not be instituted after the date set for sale of the bonds, and after
that date the bonds may not be contested for any cause.
(i) The bonds issued under this section and the interest on them are
exempt from taxation for all purposes except the financial institutions
tax imposed under IC 6-5.5 or a state inheritance death tax imposed
under IC 6-4.1.
SECTION 60. IC 36-9-25-27 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 27. (a) To raise money
to pay for the property and the construction, and in anticipation of the
special tax to be levied as provided in sections 19 and 29 of this
chapter, the board may have issued, in the name of the municipality,
the bonds of the district. The bonds may not exceed in amount the
estimated cost of all land, rights-of-way, and other property to be
acquired and the estimated cost of all construction as provided in the
resolution, including all expenses necessarily incurred in connection
with the proceedings, together with a sum sufficient to pay the cost of
supervision and inspection during the period of construction. The
expenses to be covered by the bond issue include all expenses of every
kind actually incurred preliminary to acquisition of the property and the
construction of the work, such as the cost of necessary records,
engineering expenses, publication of notices, salaries, and other
expenses.
(b) If different parcels of land are to be acquired, or if more than one
(1) contract for work is let by the board at approximately the same
time, whether under one (1) or more resolutions of the board, the
estimated cost may be combined in one (1) bond issue. The bonds shall
be issued in denominations of at least one thousand dollars ($1,000)
each and shall have a final maturity of not later than fifty (50) years
from the date of issue. The bonds are negotiable unless registered, but
may be made registrable for principal only or principal and interest.
The bonds may be made redeemable before the stated maturities on
terms and conditions and at the premiums that the board determines in
the resolution authorizing the issuance of the bonds.
(c) Upon adoption of a resolution ordering bonds, the board shall
certify a copy of the resolution to the municipal fiscal officer, who shall
then prepare the bonds. The municipal executive shall execute the
bonds and the fiscal officer shall attest them. The bonds and interest are
exempt from taxation for all purposes, except the financial institutions
tax imposed under IC 6-5.5 or an inheritance a death tax imposed
under IC 6-4.1. All bonds issued by the board shall be sold by the fiscal
officer to the highest bidder, but not for less than par, after giving
notice of the sale by publication in accordance with IC 5-3-1.
(d) The bonds are not a corporate obligation or indebtedness of the
municipality, but constitute an indebtedness of the district as a special
taxing district. Except as provided in section 29(c) of this chapter, the
bonds and interest are payable only out of a special tax levied upon all
the property of the district as provided in this chapter. The bonds must
recite these terms upon their face, together with the purpose for which
they are issued.
(e) The board may sell bonds of the district to run for a period of
five (5) years from the date of sale. The five (5) year bonds are exempt
from taxation for all purposes except for the financial institutions tax
imposed under IC 6-5.5. The board may sell bonds of the district in
series for the purpose of refunding at any time the five (5) year bonds.
Actions questioning the validity of the bonds issued or to prevent their
issue may not be brought after the date set for the sale of the bonds, and
all bonds are incontestable for any cause after that date.
(f) The total amount of the bond issue, including bonds already
issued and to be issued, may not exceed twelve percent (12%) of the
total adjusted value of taxable property in the district as determined
under IC 36-1-15. All bonds issued in violation of this subsection are
void.
SECTION 61. IC 36-10-9.1-22 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 22. All:
(1) property owned by the authority;
(2) revenues of the authority; and