Introduced Version
HOUSE BILL No. 1438
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 4-4-6.1; IC 6-1.1; IC 6-3.1; IC 8-22-3.5-16.
Synopsis: Enterprise zones. Provides that a taxpayer is entitled to a
credit against property tax liability on personal property other than
inventory. Provides that the state enterprise zone board shall allocate
the tax credits to each qualified urban enterprise zone association
(QUEZA) based on the amount of business personal property in each
qualified enterprise zone. Allows a QUEZA to allocate its share of the
statewide credits to zone businesses that enter into an allocation
agreement with the QUEZA. Provides that the total amount of credits
allowed statewide each year may not exceed $60,000,000, as adjusted
each year after 2005.
Provides that the enterprise zone investment cost
credit is assignable. Allows the enterprise zone board to designate
contiguous property in two municipalities as an enterprise zone.
Establishes criteria for designation as a multijurisdictional enterprise
zone. Allows the board to designate up to 29 enterprise zones.
Effective: Upon passage; January 1, 2002 (retroactive); July 1, 2004.
Klinker, Buell, Harris, Scholer
January 20, 2004, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 113th General Assembly (2004)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1438
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 4-4-6.1-2; (04)IN1438.1.1. -->
SECTION 1. IC 4-4-6.1-2, AS AMENDED BY P.L.90-2002,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) The board has the following powers, in
addition to other powers that are contained in this chapter:
(1) To review and approve or reject all applicants for enterprise
zone designation, according to the criteria for designation which
this chapter provides.
(2) To waive or modify rules as provided in this chapter.
(3) To provide a procedure by which enterprise zones may be
monitored and evaluated on an annual basis.
(4) To adopt rules for the disqualification of a zone business from
eligibility for any or all incentives available to zone businesses, if
that zone business does not do one (1) of the following:
(A) If all of its incentives, as contained in the summary required
under section 2.5 of this chapter, exceed one thousand dollars
($1,000) in any year, pay a registration fee to the board in an
amount equal to one percent (1%) of all of its incentives.
(B) Use all of its incentives, except for the amount of registration
fee, for its property or employees in the zone.
(C) Remain open and operating as a zone business for twelve
(12) months of the assessment year for which the incentive is
claimed.
(5) To disqualify a zone business from eligibility for any or all
incentives available to zone businesses in accordance with the
procedures set forth in the board's rules.
(6) After a recommendation from an urban enterprise association
or upon receipt of an application for boundary modification
under section 3(j) of this chapter, to modify an enterprise zone
boundary if the board determines that the modification:
(A) is in the best interests of the zone; and
(B) meets the threshold criteria and factors set forth in section 3
of this chapter.
(7) To employ staff and contract for services.
(8) To receive funds from any source and expend these funds for
the administration and promotion of the enterprise zone program.
(9) To make determinations under IC 6-3.1-11 concerning the
designation of locations as industrial recovery sites and the
availability of the credit provided by IC 6-1.1-20.7 to persons
owning inventory located on an industrial recovery site.
(10) To make determinations under IC 6-1.1-20.7 and IC 6-3.1-11
concerning the disqualification of persons from claiming credits
provided by those chapters in appropriate cases.
(11) To make determinations under IC 6-3.1-11.5 concerning the
designation of locations as military base recovery sites and the
availability of the credit provided by IC 6-3.1-11.5 to persons
making qualified investments in military base recovery sites.
(12) To make determinations under IC 6-3.1-11.5 concerning the
disqualification of persons from claiming the credit provided by
IC 6-3.1-11.5 in appropriate cases.
(13) To approve enterprise zone personal property credit
allocation plans and make determinations under IC 6-1.1-20.8.
(b) In addition to a registration fee paid under subsection (a)(4), each
zone business that receives a credit under this chapter shall assist the
zone urban enterprise association created under section 4 of this
chapter in an amount determined by the legislative body of the
municipality in which the zone is located. If a zone business does not
assist an urban enterprise association, the legislative body of the
municipality in which the zone is located may pass an ordinance
disqualifying a zone business from eligibility for all credits or
incentives available to zone businesses. If a legislative body
disqualifies a zone business under this subsection, the legislative body
shall notify the board, the department of local government finance, and
the department of state revenue in writing within thirty (30) days of the
passage of the ordinance disqualifying the zone business.
Disqualification of a zone business under this section is effective
beginning with the taxable year in which the ordinance disqualifying
the zone business is passed.
SOURCE: IC 4-4-6.1-3; (04)IN1438.1.2. -->
SECTION 2. IC 4-4-6.1-3, AS AMENDED BY P.L.289-2001,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3. (a) The board may designate up to ten (10)
enterprise zones, in addition to any enterprise zones which the federal
government may designate in the state.
After January 1, 1988, The
board may by seven (7) affirmative votes increase the number of
enterprise zones above ten (10), but it may add no more than two (2)
new zones each year (excluding any zone that may be added by the
board in a municipality in which a previously designated zone has
expired
or whose boundary is modified under subsection (j)) and
may not add any new zones after December 31, 2015.
However, the
number of enterprise zones designated by the board may not
exceed twenty-nine (29). There may be no more than one (1)
enterprise zone in any municipality.
(b) After approval by resolution of the legislative body, the executive
of any municipality that is not an included town under IC 36-3-1-7 may
submit:
(1) one (1) application to the enterprise zone board to have one (1)
portion of the municipality designated as an enterprise zone;
(2) a joint application under subsection (c) for designation of
an enterprise zone; or
(3) a joint application for a boundary modification under
subsection (j).
If an application is denied, the executive may submit a new application.
The board by rule shall provide application procedures.
(c)
This subsection applies to municipalities that do not contain
an enterprise zone. The executives of two (2) municipalities may
submit a joint application to the enterprise zone board to have a
contiguous area located in each municipality designated as an
enterprise zone.
(d) The board shall evaluate an enterprise zone application if it finds
that the following threshold criteria exist in a proposed zone:
(1) A poverty level in which twenty-five percent (25%) of the
households in the zone are below the poverty level as established
by the most recent United States census or an average rate of
unemployment for the most recent eighteen (18) month period for
which data is available that is at least one and one-half (1 1/2)
times the average statewide rate of unemployment for the same
eighteen (18) month period.
(2) For a proposed zone located within one (1) municipality, a
population of more than two thousand (2,000) but less than ten
thousand five hundred (10,500).
(3) For a proposed zone located within two (2) municipalities,
a population of more than four thousand (4,000) but less than
twenty-one thousand (21,000).
(4) For a proposed zone located within one (1) municipality, an
area of more than three-fourths (3/4) square mile but less than four
(4) square miles, with a continuous boundary (using natural, street,
or highway barriers when possible) entirely within the applicant
municipality. However, if the zone includes a parcel of property
that:
(A) is owned by the municipality; and
(B) has an area of twenty-five (25) acres or more;
the area of the zone may be increased above the four (4) square
mile limitation by an amount not to exceed the area of the
municipally owned parcel.
(4) (5) For a proposed zone located within two (2)
municipalities, an area of more than three-fourths (3/4) square
mile but less than eight (8) square miles with a contiguous
boundary (using natural, street, or highway boundaries if
possible) between the applicant municipalities. However, if the
zone includes a parcel of property that:
(A) is owned by the municipality; and
(B) has an area of at least twenty-five (25) acres;
the area of the zone may be increased above the eight (8)
square mile limitation by an amount not to exceed the area of
the municipally owned parcel.
(6) For a proposed zone located within one (1) municipality,
any property suitable for the development of a mix of commercial,
industrial, and residential activities.
(5) (7) For a proposed zone located within two (2)
municipalities, property in both municipalities suitable for the
development of a mix of commercial, industrial, and residential
activities.
(8) The appointment of an urban enterprise association that meets
the requirements of section 4 of this chapter.
(6) (9) A statement by the applicant indicating its willingness to
provide certain specified economic development incentives.
(d) (e) If an applicant has met the threshold criteria of subsection (c),
(d), the board shall evaluate the application, arrive at a decision based
on the following factors, and either designate a zone or reject the
application:
(1) Level of poverty, unemployment, and general distress of the
area in comparison to other applicant and nonapplicant
municipalities and the expression of need for an enterprise zone
over and above the threshold criteria contained in subsection (c).
(d).
(2) Evidence of support for designation by residents, businesses,
and private organizations in the proposed zone, and the
demonstration of a willingness among those zone constituents to
participate in zone area revitalization.
(3) Efforts by the applicant municipality to reduce the impediments
to development in the zone area where necessary, including but not
limited to the following:
(A) A procedure for streamlining local government regulations
and permit procedures.
(B) Crime prevention activities involving zone residents.
(C) A plan for infrastructure improvements capable of
supporting increased development activity.
(4) Significant efforts to encourage the reuse of existing zone
structures in new development activities to preserve the existing
character of the neighborhood, where appropriate.
(5) The proposed managerial structure of the zone and the capacity
of the urban enterprise association to carry out the goals and
purposes of this chapter.
(e) (f) An enterprise zone designated under subsection (e) expires
ten (10) years from the day on which it is designated by the board. The
two (2) year period immediately before the day on which it expires is
the phase out period. During the phase out period, the board may
review the success of the enterprise zone based upon the following
criteria and may, with the consent of the budget committee, renew the
zone, including all provisions of this chapter, for a period of five (5)
years:
(1) Increases in capital investment in the zone.
(2) Retention of jobs and creation of jobs in the zone.
(3) Increases in employment opportunities for residents of the
zone.
(f) (g) If an enterprise zone is renewed under subsection (e), (f), the
two (2) year period immediately before the date on which the zone
expires is another phase out period. During the phase out period, the
board may review the success of the enterprise zone based upon the
criteria set forth in subsection (e) (f) and, with the consent of the
budget committee, may again renew the zone, including all provisions
of this chapter, for a final period of five (5) years. The zone may not be
renewed after the expiration of this final five (5) year period.
(g) (h) Notwithstanding any other provision of this chapter, one (1)
or more units (as defined in IC 36-1-2-23) may declare all or any part
of a military base or other military installation that is inactive, closed,
or scheduled for closure as an enterprise zone. Such a declaration shall
be made by a resolution of the legislative body of the unit that contains
the geographic area being declared an enterprise zone. The legislative
body must include in the resolution that an urban enterprise association
is created or designate another entity to function as the urban enterprise
association under this chapter. The resolution must also be approved
by the executive of the unit. If the resolution is approved, the executive
shall file the resolution and the executive's approval with the board. If
an entity other than an urban enterprise association is designated to
function as an urban enterprise association, the entity's acceptance must
be filed with the board along with the resolution. The enterprise zone
designation is effective on the first day of the month following the date
the resolution is filed with the board. Establishment of an enterprise
zone under this subsection is not subject to the limit of two (2) new
enterprise zones each year under subsection (a).
(h) (i) The enterprise zone board may not approve the enlargement
of an enterprise zone's geographic boundaries unless the area to be
enlarged:
(1) meets the criteria of economic distress set forth in subsection
(c)(1). (d)(1); or
(2) is part of a boundary modification under subsection (j).
(j) The enterprise zone board may modify an enterprise zone's
geographic boundaries if the executive of the municipality in which
the enterprise zone is located and the executive of another
municipality submit a joint application to the enterprise zone
board to modify the enterprise zone's geographic boundaries to
include an area that is:
(1) located in the other municipality; and
(2) contiguous to the enterprise zone.
The enterprise zone board shall evaluate the application using the
threshold criteria set forth in subsection (d) and the factors set
forth in subsection (e). The modification of an enterprise zone's
geographic boundaries under this subsection is not considered an
addition of a new enterprise zone for purposes of subsection (a). An
enterprise zone modified under this subsection expires on the date
on which the enterprise zone whose boundary was modified under
this section would have expired.
SOURCE: IC 4-4-6.1-4; (04)IN1438.1.3. -->
SECTION 3. IC 4-4-6.1-4 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 4. (a) There is created in each
applicant for designation as an enterprise zone and in each enterprise
zone an urban enterprise association, referred to as the U.E.A. in this
chapter. Its
(b) In the case of an enterprise zone located in a single
jurisdiction, the twelve (12) members of the U.E.A. are to be chosen
as follows:
(1) The governor shall appoint the following:
(A) One (1) state legislator whose district includes all or part of
the enterprise zone.
(B) One (1) representative of the state department of commerce,
who is not a voting member of the U.E.A.
(2) The executive of the municipality in which the zone is located
shall appoint the following:
(A) One (1) representative of the plan commission having
jurisdiction over the zone, if any exists.
(B) One (1) representative of the municipality's department that
performs planning or economic development functions.
(C) Two (2) representatives of businesses located in the zone,
one (1) of which shall be from a manufacturing concern, if any
exists in the zone.
(D) One (1) resident of the zone.
(E) One (1) representative of organized labor from the building
trades that represent construction workers.
(3) The legislative body of the municipality in which the zone is
located shall appoint, by majority vote, the following:
(A) One (1) member of the municipality's legislative body whose
district includes all or part of the zone.
(B) One (1) representative of a business located in the zone.
(C) Two (2) residents of the zone, who must not be members of
the same political party.
(c) In the case of a multijurisdictional enterprise zone located
within two (2) municipalities, the members of the urban enterprise
zone association are to be chosen as follows:
(1) The governor shall appoint the following:
(A) One (1) state legislator whose district includes all or part
of the enterprise zone.
(B) One (1) representative of the department of commerce
(or any successor agency), who is not a voting member of the
U.E.A.
(2) The executive of each municipality in which the zone is
located shall appoint the following:
(A) One (1) representative of the plan commission having
jurisdiction over the zone, if a plan commission exists.
(B) One (1) representative of the municipality's department
that performs planning or economic development functions.
(C) Two (2) representatives of businesses located in the zone,
one (1) of whom must be from a manufacturing concern, if
a manufacturing concern exists in the zone.
(D) One (1) resident of the zone.
(E) One (1) representative of organized labor from the
building trades that represent construction workers.
(3) The legislative body of each municipality in which the zone
is located shall appoint, by majority vote, the following:
(A) One (1) member of the municipality's legislative body
whose district includes all or part of the zone.
(B) One (1) representative of a business located in the zone.
(C) Two (2) residents of the zone, who must not be members
of the same political party.
(b) (d) Members of the urban enterprise association serve four (4)
year terms. The appointing authority shall fill any vacancy for the
balance of the vacated term.
(c) (e) Members may be dismissed only by the appointing authority
and only for just cause.
(d) (f) The members shall elect a chairman, a vice chairman, and a
secretary by majority vote. This election shall be held every two (2)
years in the same month as the first meeting or whenever a vacancy
occurs. The U.E.A. shall meet at least once every three (3) months. The
secretary shall notify members of meetings at least two (2) weeks in
advance of meetings. The secretary shall provide a list of members to
each member and shall notify members of any changes in membership.
(e) (g) If an applicant for designation as an enterprise zone does not
receive that designation, the U.E.A. in that municipality is dissolved
when the application is rejected.
SOURCE: IC 6-1.1-20.7-11; (04)IN1438.1.4. -->
SECTION 4. IC 6-1.1-20.7-11 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11. The provisions
of IC 6-1.1-20.8-2 IC 6-1.1-20.8-2.5 and IC 6-1.1-20.8-3 with respect
to the enterprise zone inventory personal property tax credit
concerning:
(1) the time, place, and procedures for filing applications;
(2) notice and appeal procedures; and
(3) review procedures;
apply to the administration of the credit provided by this chapter.
SOURCE: IC 6-1.1-20.8-0.5; (04)IN1438.1.5. -->
SECTION 5. IC 6-1.1-20.8-0.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 0.5. The following definitions
apply throughout this chapter:
(1) "Enterprise zone" refers to an enterprise zone created
under IC 4-4-6.1.
(2) "Enterprise zone board" refers to the enterprise zone
board created by IC 4-4-6.1-1.
(3) "Enterprise zone inventory" means inventory, as defined in
IC 6-1.1-3-11, that is located within an enterprise zone created
under IC 4-4-6.1 on the assessment date.
(4) "Enterprise zone personal property" refers to personal
property (as defined in IC 6-1.1-1-11), other than enterprise
zone inventory, that is located within an enterprise zone
created under IC 4-4-6.1 on the assessment date.
(5) "Qualified enterprise zone business" means, with respect to
a year, a business that meets all the following conditions for the
year:
(A) At least fifty percent (50%) of the total gross receipts of
the business is derived from sources within an enterprise
zone.
(B) At least fifty percent (50%) of the value of real property
and tangible personal property used in the business of the
business is located within an enterprise zone.
(C) At least fifty percent (50%) of the wages, salaries,
commissions, and other compensation of employees of the
business are paid to individuals employed at a location in an
enterprise zone.
(D) At least fifty percent (50%) of the employees of the
business are Indiana residents.
(E) If the entity is a pass through entity, at least fifty percent
(50%) of the taxable income for the taxable year is allocated
to the owners of the pass through entity who are residents of
Indiana.
The term includes any part of a business, such as a separate
facility or plant, that would meet the conditions in clauses (A)
through (E) if the part of the business were separately
incorporated.
(6) "Qualified urban enterprise zone association" refers to an
urban enterprise zone association established under IC 4-4-6.1
that is determined by the enterprise zone board to be qualified
under section 5 of this chapter.
(7) "Real property" has the meaning set forth in IC 6-1.1-1-15.
SOURCE: IC 6-1.1-20.8-1; (04)IN1438.1.6. -->
SECTION 6. IC 6-1.1-20.8-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. (a) A person
that meets the conditions of this chapter and is allocated a credit
under this chapter is entitled to a credit against his the person's
property tax liability under IC 6-1.1-2 for a particular year in the
amount of his property tax liability under IC 6-1.1-2 on business
personal property (other than enterprise zone inventory) for that
year. The amount of the credit is the amount specified in the
taxpayer's allocation agreement under this chapter.
(b) As used in this section, "enterprise zone inventory" means
inventory, as defined in IC 6-1.1-3-11, that is located within an
enterprise zone created under IC 4-4-6.1 on the assessment date.
SOURCE: IC 6-1.1-20.8-2.5; (04)IN1438.1.7. -->
SECTION 7. IC 6-1.1-20.8-2.5, AS AMENDED BY P.L.256-2003,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2.5. (a) A person that desires to claim the
credit provided by section 1 of this chapter shall file a certified
application, on forms prescribed by the department of local government
finance, with the auditor of the county where the property for which the
credit is claimed was located on the assessment date. A person that
timely files a personal property return under IC 6-1.1-3-7(a) for an
assessment year must file the application between March 1 and May
October 15 of that year in order to obtain the credit in the following
year. A person that obtains a filing extension under IC 6-1.1-3-7(b) for
an assessment year must file the application between March 1 and the
extended due date for that year in order to obtain the credit in the
following year.
(b) A taxpayer shall include on an application filed under this
section:
(1) all information that the department of local government finance
requires and the enterprise zone board require to determine
eligibility for the credit provided under this chapter; and
(2) a copy of the allocation agreement entered into by the
qualified urban enterprise zone association and the taxpayer.
(c) Compliance with this chapter does not exempt a person from
compliance with IC 4-4-6.1-2.5.
SOURCE: IC 6-1.1-20.8-5; (04)IN1438.1.8. -->
SECTION 8. IC 6-1.1-20.8-5 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) Subject to subsection (b), the
enterprise zone board shall certify that an urban enterprise
association established under IC 4-4-6.1 is qualified to receive an
allocation of tax credits under this chapter if the enterprise zone
for which the urban enterprise association was created meets the
conditions of IC 4-4-6.1-3(c) and any other conditions adopted by
the enterprise zone board.
(b) The enterprise zone board may not do either of the following:
(1) Certify more than twenty-nine (29) urban enterprise
associations as qualified under this section.
(2) After December 31, 2004, certify more than one (1)
additional urban enterprise association as qualified under this
section each calendar year.
SOURCE: IC 6-1.1-20.8-6; (04)IN1438.1.9. -->
SECTION 9. IC 6-1.1-20.8-6 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]:
Sec. 6. (a) Before June 1 of each year, the
county auditor of each county containing an enterprise zone shall
certify to the department of local government finance the net
assessed value of business personal property located in each
enterprise zone in the county as of the most recent assessment date.
(b) Before July 1 of each year, the department of local
government finance shall certify to the enterprise zone board the
net assessed value of business personal property located in each
enterprise zone in Indiana as of the most recent assessment date.
(c) Before July 15 of each year, the enterprise zone board shall
allocate tax credits under this chapter to each qualified urban
enterprise zone association. The enterprise zone board shall also
notify the auditor of each county containing an enterprise zone of
the amount of credits allocated to each qualified urban enterprise
zone association. Except as provided in subsection (d), the amount
of tax credits that may be allocated to a qualified urban enterprise
zone association equals:
(1) the amount of tax credits available for allocation under
section 10 of this chapter in the calendar year; multiplied by
(2) a fraction equal to:
(A) the net assessed value of business personal property
located in the enterprise zone for which the qualified urban
enterprise association was created, as certified under
subsection (b) for the year; divided by
(B) the net assessed value of business personal property
located in all enterprise zones in Indiana for which a
qualified urban enterprise association was created, as
certified under subsection (b) for the year.
(d) The enterprise zone board may not allocate more than one
million dollars ($1,000,000) of tax credits under this chapter in a
particular year to a qualified urban enterprise association
established after December 31, 2003.
SOURCE: IC 6-1.1-20.8-7; (04)IN1438.1.10. -->
SECTION 10. IC 6-1.1-20.8-7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 7. Subject to the provisions
of this chapter, a taxpayer is entitled to a credit under this chapter
as specified in section 1 of this chapter for a particular year if:
(1) the taxpayer is a qualified enterprise zone business;
(2) the qualified urban enterprise zone association allocates a
credit to the taxpayer for a particular year under the qualified
urban enterprise zone association's allocation plan applicable
to the year; and
(3) the taxpayer complies with the conditions set forth in this
chapter and in the allocation agreement entered into by the
qualified urban enterprise zone association and the taxpayer
under this chapter.
SOURCE: IC 6-1.1-20.8-8; (04)IN1438.1.11. -->
SECTION 11. IC 6-1.1-20.8-8 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]:
Sec. 8. (a) Before allocating a tax
credit under this chapter to a taxpayer, the qualified urban
enterprise zone association and the taxpayer must enter into an
allocation agreement. The allocation agreement must:
(1) conform to the qualified urban enterprise zone association's
allocation plan;
(2) be entered into by the qualified urban enterprise zone
association and the taxpayer before October 1 of the year
preceding the year in which the credit will be claimed; and
(3) include at least the following:
(A) The calendar years in which the credit may be claimed
by the taxpayer.
(B) The amount of the credit that may be claimed by the
taxpayer in a particular calendar year.
(C) Any other conditions adopted by the qualified urban
enterprise zone association that the taxpayer must satisfy
before the taxpayer may claim the credit.
(b) An allocation agreement under subsection (a) may not
allocate a credit under this chapter to a taxpayer for more than
five (5) years. However, after an allocation agreement under
subsection (a) between a qualified urban enterprise zone
association and a taxpayer has expired, the qualified urban
enterprise zone association and the taxpayer may enter into a new
allocation agreement under subsection (a).
SOURCE: IC 6-1.1-20.8-9; (04)IN1438.1.12. -->
SECTION 12. IC 6-1.1-20.8-9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 9. (a) The county auditor
shall determine the eligibility of each applicant under this chapter
and shall notify the applicant of the determination before
December 31 of the year in which the application is made.
(b) A person may appeal the determination of the county auditor
under subsection (a) by filing a complaint in the office of the clerk
of the circuit or superior court not more than forty-five (45) days
after the county auditor gives the person notice of the
determination.
SOURCE: IC 6-1.1-20.8-10; (04)IN1438.1.13. -->
SECTION 13. IC 6-1.1-20.8-10 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 10. (a) The total amount of
credits allowed under this section may not exceed in total sixty
million dollars ($60,000,000) for all taxpayers in the calendar year
ending December 31, 2005, as adjusted under subsections (b) and
(c).
(b) For each calendar year beginning after December 31, 2005,
the total amount of credits allowed under this section shall be
increased by five percent (5%), as compared to the previous
calendar year.
(c) In addition to any adjustment under subsection (b), the total
amount of credits allowed under this section shall be increased by
one million dollars ($1,000,000) for each additional qualified urban
enterprise zone association that is approved by the enterprise zone
board under section 6 of this chapter after December 31, 2004. An
adjustment under this section is effective beginning in the calendar
year following the calendar year in which the additional qualified
urban enterprise zone association is approved.
SOURCE: IC 6-3.1-10-4; (04)IN1438.1.14. -->
SECTION 14. IC 6-3.1-10-4, AS AMENDED BY P.L.170-2002,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)]: Sec. 4. (a) As used in this
chapter, "taxpayer" means any individual that has any state tax liability.
(b) Notwithstanding subsection (a), for a credit for a qualified
investment in a business located in an enterprise zone in a county
having a population of more than one hundred five thousand (105,000)
but less than one hundred ten thousand (110,000), "taxpayer" includes
a pass through entity.
(c) Notwithstanding subsection (a), for purposes of receiving a
credit assigned under section 10 of this chapter, "taxpayer" means
any person that has any state tax liability.
SOURCE: IC 6-3.1-10-10; (04)IN1438.1.15. -->
SECTION 15. IC 6-3.1-10-10 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2002 (RETROACTIVE)]: Sec. 10. (a) A taxpayer may
assign any part of the credit to which the taxpayer is entitled under
this chapter to another taxpayer. A credit that is assigned under
this subsection remains subject to this chapter.
(b) An assignment under subsection (a) must be in writing, and
both the taxpayer and the assignee must report the assignment on
their state tax returns for the year in which the assignment is
made, in the manner prescribed by the department. The taxpayer
may not receive value in connection with the assignment under
subsection (a) that exceeds the value of the part of the credit
assigned.
(c) Notwithstanding any other law, a tax credit assigned under
subsection (a) is not subject to the reinvestment and use
requirements set forth in 58 IAC 2-1-2.
SOURCE: IC 6-3.1-11.5-21; (04)IN1438.1.16. -->
SECTION 16. IC 6-3.1-11.5-21 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 21. The board shall
consider the following factors in evaluating applications filed under
this chapter:
(1) The level of distress in the surrounding community caused by
the loss of jobs at the vacant military base facility.
(2) The desirability of the intended use of the vacant military base
facility under the plan proposed for the development and use of the
vacant military base facility and the likelihood that the
implementation of the plan will improve the economic and
employment conditions in the surrounding community.
(3) Evidence of support for the designation by residents,
businesses, and private organizations in the surrounding
community.
(4) Evidence of a commitment by private or governmental entities
to provide financial assistance in implementing the plan for the
development and use of the vacant military base facility, including
the application of IC 36-7-12, IC 36-7-13, IC 36-7-14,
IC 36-7-14.5, IC 36-7-15.1, or IC 36-7-30 to assist in the financing
of improvements or redevelopment activities benefiting the vacant
military base facility.
(5) Evidence of efforts to implement the proposed plan without
additional financial assistance from the state.
(6) Whether the proposed military base recovery site is within an
economic revitalization area designated under IC 6-1.1-12.1.
(7) Whether action has been taken by the legislative body of the
municipality or county having jurisdiction over the proposed
military base recovery site to establish an enterprise zone under
IC 4-4-6.1-3(g). IC 4-4-6.1-3(h).
SOURCE: IC 8-22-3.5-16; (04)IN1438.1.17. -->
SECTION 17. IC 8-22-3.5-16, AS AMENDED BY P.L.90-2002,
SECTION 335, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 16. (a) This section applies only
to an airport development zone that is located in a county described in
section 1(5) of this chapter.
(b) Except as described in this section, and notwithstanding any other
law, a business or an employee of a business that is located in an
airport development zone is entitled to the benefits of the enterprise
zone inventory personal property tax credit under IC 6-1.1-20.8.
(c) The benefits under this section are available only to:
(1) a business new to the airport development zone; or
(2) an existing business in the airport development zone that
expands its operation.
(d) To be eligible for the benefits under this section, the business
must submit a proposal to the commission for approval. The
commission may adopt standards and procedures for the proposal. In
addition to other items the commission determines must be included,
the proposal must state the percentage of permanent jobs which the
business will create in the airport development zone.
(e) A business must obtain the approval of:
(1) the city fiscal body if the business is located in a city; or
(2) the county council if the business is not located within a city;
before the business is entitled to any benefits under this section. A city
or county fiscal body may approve by any method benefits under this
section for either an individual business or a group of businesses. A
city or county fiscal body may adopt standards and procedures to
implement this subsection.
(f) If the business receives the approval of:
(1) the commission under subsection (d); and
(2) the appropriate council under subsection (e);
then before June 1 of each year, a business described in subsection (b)
must pay a fee equal to the amount of the fee that is required for
enterprise zone businesses under IC 4-4-6.1-2(4)(A). If the commission
determines that a business has failed to pay the fee required by this
subsection, the business is not eligible for any of the benefits described
in subsection (b).
(g) A business that receives any of the benefits described in
subsection (b) must use all of those benefits, except for the amount of
the fee required by subsection (d), for its property or employees in the
airport development zone and to assist the commission. If the
commission determines that a business has failed to use its benefits in
the manner required by this subsection, the business is not eligible for
any of the benefits described in subsection (b).
(h) If the commission determines that a business has failed to pay the
fee required by subsection (f) or has failed to use benefits in the
manner required by subsection (g), the commission shall provide
written notice of the determination to the department of state revenue,
the department of local government finance, and the county auditor.
SOURCE: ; (04)IN1438.1.18. -->
SECTION 18. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding IC 6-1.1-20.8-6(c)(2), as added by this act, the
initial allocation of tax credits to a qualified urban enterprise zone
association under IC 6-1.1-20.6, as amended by this act, shall be
based on the 2002 net assessed value of business personal property
located in the enterprise zone for which the qualified urban
enterprise association was created and the 2002 net assessed value
of business personal property located in all enterprise zones in
Indiana for which a qualified urban enterprise association was
created.
(b) This SECTION expires July 1, 2005
SOURCE: ; (04)IN1438.1.19. -->
SECTION 19. [EFFECTIVE JULY 1, 2004] IC 6-1.1-20.8, as
amended by this act, applies to property taxes first due and
payable after December 31, 2004.
SECTION 20. [EFFECTIVE JANUARY 1, 2002 (RETROACTIVE)]
IC 6-3.1-10-10, as added by this act, applies to taxable years
beginning after December 31, 2001.
SOURCE: ; (04)IN1438.1.21. -->
SECTION 21.
An emergency is declared for this act.