Be it enacted by the General Assembly of the State of Indiana:
county assessors, members of a county property tax assessment
board of appeals, and assessing officials;
(6) making annual adjustments under section 4.5 of this chapter;
and
(7) the verification under 50 IAC 21-3-2 of sales disclosure forms
forwarded to the county assessor under IC 6-1.1-5.5-3.
Money in a property tax reassessment fund may not be transferred
or reassigned to any other fund, and may not be used for any
purposes other than those set forth in this section.
(b) All counties shall use modern, detailed soil maps in the general
reassessment of agricultural land.
(c) The county treasurer of each county shall, in accordance with
IC 5-13-9, invest any money accumulated in the property reassessment
fund. until the money is needed to pay general reassessment expenses.
Any interest received from investment of the money shall be paid into
the property reassessment fund.
(d) An appropriation under this section must be approved by the
fiscal body of the county after the review and recommendation of the
county assessor. However, in a county with an elected township
assessor in every township, the county assessor does not review an
appropriation under this section, and only the fiscal body must approve
an appropriation under this section.
SECTION 3. IC 6-1.1-5.5-5, AS AMENDED BY P.L.228-2005,
SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. (a) The department of local government
finance shall prescribe a sales disclosure form for use under this
chapter. The form prescribed by the department of local government
finance must include at least the following information:
(1) The key number of the parcel (as defined in IC 6-1.1-1-8.5).
(2) Whether the entire parcel is being conveyed.
(3) The address of the property.
(4) The date of the execution of the form.
(5) The date the property was transferred.
(6) Whether the transfer includes an interest in land or
improvements, or both.
(7) Whether the transfer includes personal property.
(8) An estimate of any personal property included in the transfer.
(9) The name, address, and telephone number of:
(A) each transferor and transferee; and
(B) the person that prepared the form.
(10) The mailing address to which the property tax bills or other
official correspondence should be sent.
(11) The ownership interest transferred.
(12) The classification of the property (as residential, commercial,
industrial, agricultural, vacant land, or other).
(13) The total price actually paid or required to be paid in
exchange for the conveyance, whether in terms of money,
property, a service, an agreement, or other consideration, but
excluding tax payments and payments for legal and other services
that are incidental to the conveyance.
(14) The terms of seller provided financing, such as interest rate,
points, type of loan, amount of loan, and amortization period, and
whether the borrower is personally liable for repayment of the
loan.
(15) Any family or business relationship existing between the
transferor and the transferee.
(16) Other information as required by the department of local
government finance to carry out this chapter.
If a form under this section includes the telephone number or the Social
Security number of a party, the telephone number or the Social Security
number is confidential.
(b) The instructions for completing the form described in
subsection (a) must include the information described in
IC 6-1.1-12-43(c)(1).
SECTION 4. IC 6-1.1-5.5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) The county
auditor may not accept a conveyance document if:
(1) the sales disclosure form signed by all the parties and attested
as required under section 9 of this chapter is not included with the
document; or
(2) the sales disclosure form does not contain the information
described in section 5 section 5(a) of this chapter.
(b) The county recorder shall not record a conveyance document
without evidence that the parties have filed a completed sales
disclosure form with the county auditor.
SECTION 5. IC 6-1.1-8-28 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 28. (a) Each year
the department of local government finance shall notify each public
utility company of:
(1) the department's tentative assessment of the company's
distributable property; and
(2) the value of the company's distributable property used by the
department to determine the tentative assessment.
(b) The department of local government finance shall give the
notice on or before required by subsection (a) not later than:
(1) September 1 in the case of railroad car companies; and shall
give the notice on or before
(2) June 1 in the case of all other public utility companies.
(b) Within (c) Not later than ten (10) days after a public utility
company receives the notice of the department of local government
finance's tentative assessment, required by subsection (a), the
company may:
(1) file with the department its objections to the tentative
assessment; and
(2) demand request that the department hold a hearing
preliminary conference on the tentative assessment.
(d) If the public utility company does not file with the department
of local government finance its objections to the tentative assessment
under subsection (c)(1) within the time allowed:
(1) the tentative assessment is considered final; and
(2) the company may not be appealed. appeal the assessment
under section 30 of this chapter.
SECTION 6. IC 6-1.1-8-29 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 29. (a) If a public
utility company files its objections to and demands a hearing on, a
tentative assessment within the time allowed under section 28(c) of
this chapter, the department of local government finance shall may
hold a hearing preliminary conference on the tentative assessment at
a time and place fixed by the department. After the hearing,
preliminary conference, if any, the department of local government
finance shall:
(1) make a final assessment of the company's distributable
property; and shall
(2) notify the company of the final assessment. However,
(b) The department of local government finance must give notice of
the final assessment before: under this section not later than:
(1) September 30 in the case of railroad car companies; and
before
(2) June 30 in the case of all other public utility companies.
SECTION 7. IC 6-1.1-8-30 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 30. If (a) A public
utility company files its objections to the department of local
government finance's tentative assessment of the company's
distributable property in the manner prescribed in section 28 of this
chapter, the company may initiate an appeal of the department's final
assessment of that the company's distributable property by filing a
petition with the Indiana board not more later than forty-five (45) days
after:
(1) the public utility company receives notice of the tentative
assessment under section 28(a) of this chapter if the final
assessment becomes final under section 28(d) of this chapter;
or
(2) the department of local government finance gives the public
utility company notice of the final determination The under
section 29(a) of this chapter.
(b) A public utility company may petition for judicial review of the
Indiana board's final determination to the tax court under IC 4-21.5-5.
However, the company must:
(1) file a verified petition for judicial review; and
(2) mail to the county auditor of each county in which the public
utility company's distributable property is located:
(A) a notice that the complaint was filed; and
(B) instructions for obtaining a copy of the complaint;
within not later than forty-five (45) days after the date of the notice of
the Indiana board's final determination.
SECTION 8. IC 6-1.1-8.5-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 8. (a) For purposes
of the general reassessment under IC 6-1.1-4-4 or a new assessment,
the department of local government finance shall assess each industrial
facility in a qualifying county.
(b) The following may not assess an industrial facility in a
qualifying county:
(1) A county assessor.
(2) An assessing official.
(3) A county property tax assessment board of appeals.
SECTION 9. IC 6-1.1-9-10 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 10. (a) If in the course
of a review of a taxpayer's personal property assessment under this
chapter an assessing official or the assessing official's
representative or contractor discovers an error indicating that the
taxpayer has overreported a personal property assessment, the
assessing official shall:
(1) adjust the personal property assessment to correct the
error; and
(2) process a refund or credit for any resulting overpayment.
(b) Application of subsection (a) is subject to the restrictions of
IC 6-1.1-11-1.
SECTION 10. IC 6-1.1-11-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 3. (a) Subject to subsections (e), and (f), and (g), an owner of
tangible property who wishes to obtain an exemption from property
taxation shall file a certified application in duplicate with the county
assessor of the county in which the property that is the subject of the
exemption is located. The application must be filed annually on or
before May 15 on forms prescribed by the department of local
government finance. Except as provided in sections 1, 3.5, and 4 of this
chapter, the application applies only for the taxes imposed for the year
for which the application is filed.
(b) The authority for signing an exemption application may not be
delegated by the owner of the property to any other person except by
an executed power of attorney.
(c) An exemption application which is required under this chapter
shall contain the following information:
(1) A description of the property claimed to be exempt in
sufficient detail to afford identification.
(2) A statement showing the ownership, possession, and use of
the property.
(3) The grounds for claiming the exemption.
(4) The full name and address of the applicant.
(5) For the year that ends on the assessment date of the property,
identification of:
(A) each part of the property used or occupied; and
(B) each part of the property not used or occupied;
for one (1) or more exempt purposes under IC 6-1.1-10 during the
time the property is used or occupied.
(6) Any additional information which the department of local
government finance may require.
(d) A person who signs an exemption application shall attest in
writing and under penalties of perjury that, to the best of the person's
knowledge and belief, a predominant part of the property claimed to be
exempt is not being used or occupied in connection with a trade or
business that is not substantially related to the exercise or performance
of the organization's exempt purpose.
(e) An owner must file with an application for exemption of real
property under subsection (a) or section 5 of this chapter a copy of the
township assessor's record kept under IC 6-1.1-4-25(a) that shows the
calculation of the assessed value of the real property for the assessment
date for which the exemption is claimed. Upon receipt of the
exemption application, the county assessor shall examine that record
and determine if the real property for which the exemption is claimed
is properly assessed. If the county assessor determines that the real
property is not properly assessed, the county assessor shall direct the
township assessor of the township in which the real property is located
to:
(1) properly assess the real property; and
(2) notify the county assessor and county auditor of the proper
assessment.
(f) If the county assessor determines that the applicant has not filed
with an application for exemption a copy of the record referred to in
subsection (e), the county assessor shall notify the applicant in writing
of that requirement. The applicant then has thirty (30) days after the
date of the notice to comply with that requirement. The county property
tax assessment board of appeals shall deny an application described in
this subsection if the applicant does not comply with that requirement
within the time permitted under this subsection.
(g) This subsection applies whenever a law requires an
exemption to be claimed on or in an application accompanying a
personal property tax return. The claim or application may be filed
on or with a personal property tax return not more than thirty (30)
days after the filing date for the personal property tax return,
regardless of whether an extension of the filing date has been
granted under IC 6-1.1-3-7.
SECTION 11. IC 6-1.1-12-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) Except as
provided in section 17.8 of this chapter, a person who desires to claim
the deduction provided by section 1 of this chapter must file a
statement in duplicate, on forms prescribed by the department of local
government finance, with the auditor of the county in which the real
property, mobile home not assessed as real property, or manufactured
home not assessed as real property is located. With respect to real
property, the statement must be filed during the twelve (12) months
before May June 11 of each year for which the person wishes to obtain
the deduction. With respect to a mobile home that is not assessed as
real property or a manufactured home that is not assessed as real
property, the statement must be filed during the twelve (12) months
before March 2 of each year for which the individual wishes to obtain
the deduction. The statement may be filed in person or by mail. If
mailed, the mailing must be postmarked on or before the last day for
filing. In addition to the statement required by this subsection, a
contract buyer who desires to claim the deduction must submit a copy
of the recorded contract or recorded memorandum of the contract,
which must contain a legal description sufficient to meet the
requirements of IC 6-1.1-5, with the first statement that the buyer files
under this section with respect to a particular parcel of real property.
Upon receipt of the statement and the recorded contract or recorded
memorandum of the contract, the county auditor shall assign a separate
description and identification number to the parcel of real property
being sold under the contract.
(b) The statement referred to in subsection (a) must be verified
under penalties for perjury, and the statement must contain the
following information:
(1) The balance of the person's mortgage or contract indebtedness
on the assessment date of the year for which the deduction is
claimed.
(2) The assessed value of the real property, mobile home, or
manufactured home.
(3) The full name and complete residence address of the person
and of the mortgagee or contract seller.
(4) The name and residence of any assignee or bona fide owner or
holder of the mortgage or contract, if known, and if not known,
the person shall state that fact.
(5) The record number and page where the mortgage, contract, or
memorandum of the contract is recorded.
(6) A brief description of the real property, mobile home, or
manufactured home which is encumbered by the mortgage or sold
under the contract.
(7) If the person is not the sole legal or equitable owner of the real
property, mobile home, or manufactured home, the exact share of
the person's interest in it.
(8) The name of any other county in which the person has applied
for a deduction under this section and the amount of deduction
claimed in that application.
(c) The authority for signing a deduction application filed under this
section may not be delegated by the real property, mobile home, or
manufactured home owner or contract buyer to any person except upon
an executed power of attorney. The power of attorney may be contained
in the recorded mortgage, contract, or memorandum of the contract, or
in a separate instrument.
SECTION 12. IC 6-1.1-12-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (a) An individual
who satisfies the requirements of section 3 of this chapter may file a
claim for a deduction, or deductions, provided by section 1 of this
chapter during the twelve (12) months before May June 11 of the year
following the year in which he the individual is discharged from
military service. The individual shall file the claim, on the forms
prescribed for claiming a deduction under section 2 of this chapter,
with the auditor of the county in which the real property is located. The
claim shall specify the particular year, or years, for which the deduction
is claimed. The individual shall attach to the claim an affidavit which
states the facts concerning the individual's absence as a member of the
United States armed forces.
(b) The county property tax assessment board of appeals shall
examine the individual's claim and shall determine the amount of
deduction, or deductions, he the individual is entitled to and the year,
or years, for which deductions are due. Based on the board's
determination, the county auditor shall calculate the excess taxes paid
by the individual and shall refund the excess to the individual from
funds not otherwise appropriated. The county auditor shall issue, and
the county treasurer shall pay, a warrant for the amount, if any, to
which the individual is entitled.
SECTION 13. IC 6-1.1-12-10.1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.1. (a) Except as
provided in section 17.8 of this chapter, an individual who desires to
claim the deduction provided by section 9 of this chapter must file a
sworn statement, on forms prescribed by the department of local
government finance, with the auditor of the county in which the real
property, mobile home, or manufactured home is located. With respect
to real property, the statement must be filed during the twelve (12)
months before May June 11 of each year for which the individual
wishes to obtain the deduction. With respect to a mobile home that is
not assessed as real property or a manufactured home that is not
assessed as real property, the statement must be filed between January
15 and March 31, inclusive of each year for which the individual
wishes to obtain the deduction. The statement may be filed in person
or by mail. If mailed, the mailing must be postmarked on or before the
last day for filing.
(b) The statement referred to in subsection (a) shall be in affidavit
form or require verification under penalties of perjury. The statement
must be filed in duplicate if the applicant owns, or is buying under a
contract, real property, a mobile home, or a manufactured home subject
to assessment in more than one (1) county or in more than one (1)
taxing district in the same county. The statement shall contain:
(1) the source and exact amount of gross income received by the
individual and his the individual's spouse during the preceding
calendar year;
(2) the description and assessed value of the real property, mobile
home, or manufactured home;
(3) the individual's full name and his complete residence address;
(4) the record number and page where the contract or
memorandum of the contract is recorded if the individual is
buying the real property, mobile home, or manufactured home on
contract; and
(5) any additional information which the department of local
government finance may require.
(c) In order to substantiate his the deduction statement, the
applicant shall submit for inspection by the county auditor a copy of his
the applicant's and a copy of his the applicant's spouse's income tax
returns for the preceding calendar year. If either was not required to file
an income tax return, the applicant shall subscribe to that fact in the
deduction statement.
SECTION 14. IC 6-1.1-12-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 12. (a) Except as
provided in section 17.8 of this chapter, a person who desires to claim
the deduction provided in section 11 of this chapter must file an
application, on forms prescribed by the department of local government
finance, with the auditor of the county in which the real property,
mobile home not assessed as real property, or manufactured home not
assessed as real property is located. With respect to real property, the
application must be filed during the twelve (12) months before May
June 11 of each year for which the individual wishes to obtain the
deduction. With respect to a mobile home that is not assessed as real
property or a manufactured home that is not assessed as real property,
the application must be filed during the twelve (12) months before
March 2 of each year for which the individual wishes to obtain the
deduction. The application may be filed in person or by mail. If mailed,
the mailing must be postmarked on or before the last day for filing.
(b) Proof of blindness may be supported by:
(1) the records of a county office of family and children, the
division of family and children, resources, or the division of
disability, aging, and rehabilitative services; or
(2) the written statement of a physician who is licensed by this
state and skilled in the diseases of the eye or of a licensed
optometrist.
(c) The application required by this section must contain the record
number and page where the contract or memorandum of the contract
is recorded if the individual is buying the real property, mobile home,
or manufactured home on a contract that provides that he the
individual is to pay property taxes on the real property, mobile home,
or manufactured home.
SECTION 15. IC 6-1.1-12-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. (a) Except as
provided in section 17.8 of this chapter, an individual who desires to
claim the deduction provided by section 13 or section 14 of this chapter
must file a statement with the auditor of the county in which the
individual resides. With respect to real property, the statement must be
filed during the twelve (12) months before May June 11 of each year
for which the individual wishes to obtain the deduction. With respect
to a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property, the statement
must be filed during the twelve (12) months before March 2 of each
year for which the individual wishes to obtain the deduction. The
statement may be filed in person or by mail. If mailed, the mailing must
be postmarked on or before the last day for filing. The statement shall
contain a sworn declaration that the individual is entitled to the
deduction.
(b) In addition to the statement, the individual shall submit to the
county auditor for the auditor's inspection:
(1) a pension certificate, an award of compensation, or a disability
compensation check issued by the United States Department of
Veterans Affairs if the individual claims the deduction provided
by section 13 of this chapter;
(2) a pension certificate or an award of compensation issued by
the United States Department of Veterans Affairs if the individual
claims the deduction provided by section 14 of this chapter; or
(3) the appropriate certificate of eligibility issued to the individual
by the Indiana department of veterans' affairs if the individual
claims the deduction provided by section 13 or 14 of this chapter.
(c) If the individual claiming the deduction is under guardianship,
the guardian shall file the statement required by this section.
months before May June 11 of each year for which the veteran wishes
to obtain the deduction. With respect to a mobile home that is not
assessed as real property or a manufactured home that is not assessed
as real property, the statement must be filed during the twelve (12)
months before March 2 of each year for which the individual wishes to
obtain the deduction. The statement may be filed in person or by mail.
If mailed, the mailing must be postmarked on or before the last day for
filing.
(b) The statement required under this section shall be in affidavit
form or require verification under penalties of perjury. The statement
shall be filed in duplicate if the veteran has, or is buying under a
contract, real property in more than one (1) county or in more than one
(1) taxing district in the same county. The statement shall contain:
(1) a description and the assessed value of the real property,
mobile home, or manufactured home;
(2) the veteran's full name and complete residence address;
(3) the record number and page where the contract or
memorandum of the contract is recorded, if the individual is
buying the real property, mobile home, or manufactured home on
a contract that provides that the individual is to pay property taxes
on the real property, mobile home, or manufactured home; and
(4) any additional information which the department of local
government finance may require.
SECTION 18. IC 6-1.1-12-17.8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 17.8. (a) An
individual who receives a deduction provided under section 1, 9, 11,
13, 14, 16, or 17.4 of this chapter in a particular year and who remains
eligible for the deduction in the following year is not required to file a
statement to apply for the deduction in the following year.
(b) An individual who receives a deduction provided under section
1, 9, 11, 13, 14, 16, or 17.4 of this chapter in a particular year and who
becomes ineligible for the deduction in the following year shall notify
the auditor of the county in which the real property, mobile home, or
manufactured home for which he the individual claims the deduction
is located of his the individual's ineligibility before May 10 June 11
of the year in which he the individual becomes ineligible.
(c) The auditor of each county shall, in a particular year, apply a
deduction provided under section 1, 9, 11, 13, 14, 16, or 17.4 of this
chapter to each individual who received the deduction in the preceding
year unless the auditor determines that the individual is no longer
eligible for the deduction.
immediately following four (4) years without any additional application
being filed.
(e) On verification of an application by the assessor of the township
in which the property is located, the county auditor shall make the
deduction.
SECTION 20. IC 6-1.1-12-24 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 24. (a) A property owner who desires to obtain the deduction
provided by section 22 of this chapter must file a certified deduction
application, on forms prescribed by the department of local government
finance, with the auditor of the county in which the property is located.
The application may be filed in person or by mail. If mailed, the
mailing must be postmarked on or before the last day for filing. Except
as provided in subsection (b), the application must be filed before May
10 June 11 of the year in which the addition to assessed valuation is
made.
(b) If notice of the addition to assessed valuation for any year is not
given to the property owner before April 10 May 11 of that year, the
application required by this section may be filed not later than thirty
(30) days after the date such a notice is mailed to the property owner
at the address shown on the records of the township assessor.
(c) The application required by this section shall contain the
following information:
(1) the name of the property owner;
(2) a description of the property for which a deduction is claimed
in sufficient detail to afford identification;
(3) the assessed value of the improvements on the property before
rehabilitation;
(4) the increase in the assessed value of improvements resulting
from the rehabilitation; and
(5) the amount of deduction claimed.
(d) A deduction application filed under this section is applicable for
the year in which the addition to assessed value is made and in the
immediate following four (4) years without any additional application
being filed.
(e) On verification of the correctness of an application by the
assessor of the township in which the property is located, the county
auditor shall make the deduction.
SECTION 21. IC 6-1.1-12-30 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 30. Except as provided in section 36 of this chapter, a person who
desires to claim the deduction provided by section 29 of this chapter
must file a certified statement in duplicate, on forms prescribed by the
department of local government finance, with the auditor of the county
in which the real property or mobile home is subject to assessment.
With respect to real property, the person must file the statement
between March 1 and May 10 June 11, inclusive, of each year for
which the person desires to obtain the deduction. With respect to a
mobile home which is not assessed as real property, the person must
file the statement between January 15 and March 31, inclusive, of each
year for which the person desires to obtain the deduction. On
verification of the statement by the assessor of the township in which
the real property or mobile home is subject to assessment, the county
auditor shall allow the deduction.
SECTION 22. IC 6-1.1-12-35.5, AS AMENDED BY P.L.214-2005,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 35.5. (a) Except as
provided in section 36 of this chapter, a person who desires to claim the
deduction provided by section 31, 33, 34, or 34.5 of this chapter must
file a certified statement in duplicate, on forms prescribed by the
department of local government finance, and proof of certification
under subsection (b) or (f) with the auditor of the county in which the
property for which the deduction is claimed is subject to assessment.
Except as provided in subsection (e), with respect to property that is not
assessed under IC 6-1.1-7, the person must file the statement between
March 1 and May 10 June 11, inclusive, of the assessment year. The
person must file the statement in each year for which the person desires
to obtain the deduction. With respect to a property which is assessed
under IC 6-1.1-7, the person must file the statement between January
15 and March 31, inclusive, of each year for which the person desires
to obtain the deduction. The statement may be filed in person or by
mail. If mailed, the mailing must be postmarked on or before the last
day for filing. On verification of the statement by the assessor of the
township in which the property for which the deduction is claimed is
subject to assessment, the county auditor shall allow the deduction.
(b) This subsection does not apply to an application for a deduction
under section 34.5 of this chapter. The department of environmental
management, upon application by a property owner, shall determine
whether a system or device qualifies for a deduction provided by
section 31, 33, or 34 of this chapter. If the department determines that
a system or device qualifies for a deduction, it shall certify the system
or device and provide proof of the certification to the property owner.
The department shall prescribe the form and manner of the certification
process required by this subsection.
(c) This subsection does not apply to an application for a deduction
under section 34.5 of this chapter. If the department of environmental
management receives an application for certification before April 10
May 11 of the assessment year, the department shall determine
whether the system or device qualifies for a deduction before May 10
June 11 of the assessment year. If the department fails to make a
determination under this subsection before May 10 June 11 of the
assessment year, the system or device is considered certified.
(d) A denial of a deduction claimed under section 31, 33, 34, or 34.5
of this chapter may be appealed as provided in IC 6-1.1-15. The appeal
is limited to a review of a determination made by the township
assessor, county property tax assessment board of appeals, or
department of local government finance.
(e) A person who timely files a personal property return under
IC 6-1.1-3-7(a) for an assessment year and who desires to claim the
deduction provided in section 31 of this chapter for property that is not
assessed under IC 6-1.1-7 must file the statement described in
subsection (a) between March 1 and May 15 June 11, inclusive, of that
year. A person who 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.
(f) This subsection applies only to an application for a deduction
under section 34.5 of this chapter. The center for coal technology
research established by IC 4-4-30-5, upon receiving an application
from the owner of a building, shall determine whether the building
qualifies for a deduction under section 34.5 of this chapter. If the center
determines that a building qualifies for a deduction, the center shall
certify the building and provide proof of the certification to the owner
of the building. The center shall prescribe the form and procedure for
certification of buildings under this subsection. If the center receives
an application for certification of a building under section 34.5 of this
chapter before April 10 May 11 of an assessment year:
(1) the center shall determine whether the building qualifies for
a deduction before May 10 June 11 of the assessment year; and
(2) if the center fails to make a determination before May 10 June
11 of the assessment year, the building is considered certified.
SECTION 23. IC 6-1.1-12-38 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 38. (a) A person is entitled to a deduction from the assessed value
of the person's property in an amount equal to the difference between:
(1) the assessed value of the person's property, including the
assessed value of the improvements made to comply with the
fertilizer storage rules adopted by the state chemist under
IC 15-3-3-12 and the pesticide storage rules adopted by the state
chemist under IC 15-3-3.5-11; minus
(2) the assessed value of the person's property, excluding the
assessed value of the improvements made to comply with the
fertilizer storage rules adopted by the state chemist under
IC 15-3-3-12 and the pesticide storage rules adopted by the state
chemist under IC 15-3-3.5-11.
(b) To obtain the deduction under this section, a person must file a
certified statement in duplicate, on forms prescribed by the department
of local government finance, with the auditor of the county in which the
property is subject to assessment. In addition to the certified statement,
the person must file a certification by the state chemist listing the
improvements that were made to comply with the fertilizer storage
rules adopted under IC 15-3-3-12 and the pesticide storage rules
adopted by the state chemist under IC 15-3-3.5-11. The statement and
certification must be filed before May 10 June 11 of the year preceding
the year the deduction will first be applied. Upon the verification of the
statement and certification by the assessor of the township in which the
property is subject to assessment, the county auditor shall allow the
deduction.
SECTION 24. IC 6-1.1-12.1-1, AS AMENDED BY P.L.216-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 1. For purposes of this
chapter:
(1) "Economic revitalization area" means an area which is within
the corporate limits of a city, town, or county which has become
undesirable for, or impossible of, normal development and
occupancy because of a lack of development, cessation of growth,
deterioration of improvements or character of occupancy, age,
obsolescence, substandard buildings, or other factors which have
impaired values or prevent a normal development of property or
use of property. The term "economic revitalization area" also
includes:
(A) any area where a facility or a group of facilities that are
technologically, economically, or energy obsolete are located
and where the obsolescence may lead to a decline in
employment and tax revenues; and
which a deduction for tangible personal property is allowed;
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics; and
(C) the deduction applicant acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant; and
(C) before being installed as described in clause (A), was (D)
the deduction applicant never used by its owner for any
purpose in Indiana before the installation described in
clause (A).
(15) "Deduction applicant" means an owner of tangible
personal property who makes a deduction application.
(16) "Affiliate" means an entity that effectively controls or is
controlled by a deduction applicant or is associated with a
deduction applicant under common ownership or control,
whether by shareholdings or other means.
(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the owner
of the building or a tenant of the owner occupies the
building, as evidenced by a valid certificate of occupancy,
paid utility receipts, executed lease agreements, or any
other evidence of occupation that the department of local
government finance requires.
SECTION 25. IC 6-1.1-12.1-2, AS AMENDED BY P.L.216-2005,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) A designating body may find that a
particular area within its jurisdiction is an economic revitalization area.
However, the deduction provided by this chapter for economic
revitalization areas not within a city or town shall not be available to
retail businesses.
(b) In a county containing a consolidated city or within a city or
town, a designating body may find that a particular area within its
jurisdiction is a residentially distressed area. Designation of an area as
a residentially distressed area has the same effect as designating an
area as an economic revitalization area, except that the amount of the
deduction shall be calculated as specified in section 4.1 of this chapter
and the deduction is allowed for not more than five (5) years. In order
to declare a particular area a residentially distressed area, the
designating body must follow the same procedure that is required to
designate an area as an economic revitalization area and must make all
the following additional findings or all the additional findings
described in subsection (c):
(1) The area is comprised of parcels that are either unimproved or
contain only one (1) or two (2) family dwellings or multifamily
dwellings designed for up to four (4) families, including accessory
buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and
are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and
IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of the
additional findings described in this subsection or one (1) of the
additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or
town, a designating body that wishes to designate a particular area a
residentially distressed area may make the following additional
findings as an alternative to the additional findings described in
subsection (b):
(1) A significant number of dwelling units within the area are not
permanently occupied or a significant number of parcels in the
area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number of dwelling
units, as documented by census information, local building and
demolition permits, or certificates of occupancy, or the area is
owned by Indiana or the United States.
for filing a designation application for a parcel that contains one (1) or
more owner-occupied, single-family dwellings may not exceed the cost
of publishing the required notice.
(i) In declaring an area an economic revitalization area, the
designating body may:
(1) limit the time period to a certain number of calendar years
during which the economic revitalization area shall be so
designated;
(2) limit the type of deductions that will be allowed within the
economic revitalization area to either the deduction allowed under
section 3 of this chapter, or the deduction allowed under section
4.5 of this chapter, the deduction allowed under section 4.8 of
this chapter, or any combination of these deductions;
(3) limit the dollar amount of the deduction that will be allowed
with respect to new manufacturing equipment, new research and
development equipment, new logistical distribution equipment,
and new information technology equipment if a deduction under
this chapter had not been filed before July 1, 1987, for that
equipment;
(4) limit the dollar amount of the deduction that will be allowed
with respect to redevelopment and rehabilitation occurring in
areas that are designated as economic revitalization areas on or
after September 1, 1988;
(5) limit the dollar amount of the deduction that will be
allowed under section 4.8 of this chapter with respect to the
occupation of an eligible vacant building; or
(5) (6) impose reasonable conditions related to the purpose of this
chapter or to the general standards adopted under subsection (g)
for allowing the deduction for the redevelopment or rehabilitation
of the property or the installation of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment.
To exercise one (1) or more of these powers, a designating body must
include this fact in the resolution passed under section 2.5 of this
chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment installed on or before the
approval deadline determined under section 9 of this chapter, but
after the expiration of the economic revitalization area if:
(A) the economic revitalization area designation expires after
December 30, 1995; and
(B) the new manufacturing equipment, new research and
development equipment, new logistical distribution
equipment, or new information technology equipment was
described in a statement of benefits submitted to and approved
by the designating body in accordance with section 4.5 of this
chapter before the expiration of the economic revitalization
area designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 4, or 4.5, or 4.8 of this chapter.
(k) Notwithstanding any other provision of this chapter, deductions:
(1) that are authorized under section 3 of this chapter for property
in an area designated as an urban development area before March
1, 1983, and that are based on an increase in assessed valuation
resulting from redevelopment or rehabilitation that occurs before
March 1, 1983; or
(2) that are authorized under section 4.5 of this chapter for new
manufacturing equipment installed in an area designated as an
urban development area before March 1, 1983;
apply according to the provisions of this chapter as they existed at the
time that an application for the deduction was first made. No deduction
that is based on the location of property or new manufacturing
equipment in an urban development area is authorized under this
chapter after February 28, 1983, unless the initial increase in assessed
value resulting from the redevelopment or rehabilitation of the property
or the installation of the new manufacturing equipment occurred before
March 1, 1983.
(l) If property located in an economic revitalization area is also
located in an allocation area (as defined in IC 36-7-14-39 or
IC 36-7-15.1-26), an application for the property tax deduction
provided by this chapter may not be approved unless the commission
that designated the allocation area adopts a resolution approving the
application.
SECTION 26. IC 6-1.1-12.1-2.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.5. (a) If a
designating body finds that an area in its jurisdiction is an economic
revitalization area, it shall either:
(1) prepare maps and plats that identify the area; or
(2) prepare a simplified description of the boundaries of the area
by describing its location in relation to public ways, streams, or
otherwise.
(b) After the compilation of the materials described in subsection
(a), the designating body shall pass a resolution declaring the area an
economic revitalization area. The resolution must contain a description
of the affected area and be filed with the county assessor. A resolution
adopted after June 30, 2000, may include a determination of the
number of years a deduction under section 3, 4.5, or 4.8 of this chapter
is allowed. In addition, if the resolution is adopted after June 30, 2000,
the resolution may include a determination of the number of years a
deduction under section 4.5 of this chapter is allowed.
(c) After approval of a resolution under subsection (b), the
designating body shall do the following:
(1) Publish notice of the adoption and substance of the resolution
in accordance with IC 5-3-1.
(2) File the following information with each taxing unit that has
authority to levy property taxes in the geographic area where the
economic revitalization area is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement containing substantially the same information
as a statement of benefits filed with the designating body
before the hearing required by this section under sections
section 3, and 4.5, or 4.8 of this chapter.
The notice must state that a description of the affected area is available
and can be inspected in the county assessor's office. The notice must
also name a date when the designating body will receive and hear all
remonstrances and objections from interested persons. The designating
body shall file the information required by subdivision (2) with the
officers of the taxing unit who are authorized to fix budgets, tax rates,
and tax levies under IC 6-1.1-17-5 at least ten (10) days before the date
of the public hearing. After considering the evidence, the designating
body shall take final action determining whether the qualifications for
an economic revitalization area have been met and confirming,
modifying and confirming, or rescinding the resolution. This
determination is final except that an appeal may be taken and heard as
provided under subsections (d) and (e).
(d) A person who filed a written remonstrance with the designating
body under this section and who is aggrieved by the final action taken
may, within ten (10) days after that final action, initiate an appeal of
that action by filing in the office of the clerk of the circuit or superior
court a copy of the order of the designating body and his the person's
remonstrance against that order, together with his the person's bond
conditioned to pay the costs of his the person's appeal if the appeal is
determined against him. the person. The only ground of appeal that the
court may hear is whether the proposed project will meet the
qualifications of the economic revitalization area law. The burden of
proof is on the appellant.
(e) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has been
taken shall be consolidated and heard and determined within thirty (30)
days after the time of the filing of the appeal. The court shall hear
evidence on the appeal, and may confirm the final action of the
designating body or sustain the appeal. The judgment of the court is
final and conclusive, unless an appeal is taken as in other civil actions.
SECTION 27. IC 6-1.1-12.1-4.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 4.5. (a) For purposes of this section, "personal property" means
personal property other than inventory (as defined in IC 6-1.1-3-11(a)).
(b) An applicant must provide a statement of benefits to the
designating body. The applicant must provide the completed statement
of benefits form to the designating body before the hearing specified in
section 2.5(c) of this chapter or before the installation of the new
manufacturing equipment, new research and development equipment,
new logistical distribution equipment, or new information technology
equipment for which the person desires to claim a deduction under this
chapter. The department of local government finance shall prescribe a
form for the statement of benefits. The statement of benefits must
include the following information:
(1) A description of the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment that the
person proposes to acquire.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
an estimate of the number of individuals who will be employed or
whose employment will be retained by the person as a result of
the installation of the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment and an
estimate of the annual salaries of these individuals.
(3) An estimate of the cost of the new manufacturing equipment,
new research and development equipment, new logistical
distribution equipment, or new information technology
equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, an
estimate of the amount of solid waste or hazardous waste that will
be converted into energy or other useful products by the new
manufacturing equipment.
The statement of benefits may be incorporated in a designation
application. Notwithstanding any other law, a statement of benefits is
a public record that may be inspected and copied under IC 5-14-3-3.
(c) The designating body must review the statement of benefits
required under subsection (b). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether the deduction shall be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment is reasonable for equipment of that type.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the installation of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
installation of new manufacturing equipment, new research and
development equipment, new logistical distribution equipment, or
new information technology equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, whether
the estimate of the amount of solid waste or hazardous waste that
will be converted into energy or other useful products can be
reasonably expected to result from the installation of the new
manufacturing equipment.
(5) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed installation of new manufacturing equipment,
new research and development equipment, new logistical
distribution equipment, or new information technology
equipment.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
The designating body may not designate an area an economic
revitalization area or approve the deduction unless it makes the
findings required by this subsection in the affirmative.
(d) Except as provided in subsection (h), and subject to subsection
(i), an owner of new manufacturing equipment, new research and
development equipment, new logistical distribution equipment, or new
information technology equipment whose statement of benefits is
approved after June 30, 2000, is entitled to a deduction from the
assessed value of that equipment for the number of years determined
by the designating body under subsection (g). Except as provided in
subsection (f) and in section 2(i)(3) of this chapter, and subject to
subsection (i), the amount of the deduction that an owner is entitled to
for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment in the year
of deduction under the appropriate table set forth in subsection
(e); multiplied by
(2) the percentage prescribed in the appropriate table set forth in
subsection (e).
(e) The percentage to be used in calculating the deduction under
subsection (d) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd and thereafter 0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
3rd and thereafter 0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 66%
3rd 33%
4th and thereafter 0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
5th and thereafter 0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
6th and thereafter 0%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 25%
property located in Indiana based on a violation of a federal or
state rule, regulation, or statute governing the treatment, storage,
or disposal of hazardous wastes that had a major or moderate
potential for harm.
(i) For purposes of subsection (d), the assessed value of new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment that is part of an owner's
assessable depreciable personal property in a single taxing district
subject to the valuation limitation in 50 IAC 4.2-4-9 or 50
IAC 5.1-6-9 is the product of:
(1) the assessed value of the equipment determined without
regard to the valuation limitation in 50 IAC 4.2-4-9 or 50
IAC 5.1-6-9; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined
under 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the
owner's depreciable personal property in the taxing
district; divided by
(B) the total true tax value of all of the owner's depreciable
personal property in the taxing district that is subject to
the valuation limitation in 50 IAC 4.2-4-9 or 50
IAC 5.1-6-9 determined:
(i) under the depreciation schedules in the rules of the
department of local government finance before any
adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50
IAC 4.2-4-9 or 50 IAC 5.1-6-9.
SECTION 28. IC 6-1.1-12.1-4.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 4.8. (a) A property owner that
is an applicant for a deduction under this section must provide a
statement of benefits to the designating body.
(b) If the designating body requires information from the
property owner for the designating body's use in deciding whether
to designate an economic revitalization area, the property owner
must provide the completed statement of benefits form to the
designating body before the hearing required by section 2.5(c) of
this chapter. Otherwise, the property owner must submit the
completed statement of benefits form to the designating body
before the occupation of the eligible vacant building for which the
property owner desires to claim a deduction.
(c) The department of local government finance shall prescribe
a form for the statement of benefits. The statement of benefits must
include the following information:
(1) A description of the eligible vacant building that the
property owner or a tenant of the property owner will occupy.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the
property owner or the tenant as a result of the occupation of
the eligible vacant building, and an estimate of the annual
salaries of those individuals.
(3) Information regarding efforts by the owner or a previous
owner to sell, lease, or rent the eligible vacant building during
the period the eligible vacant building was unoccupied.
(4) Information regarding the amount for which the eligible
vacant building was offered for sale, lease, or rent by the
owner or a previous owner during the period the eligible
vacant building was unoccupied.
(d) With the approval of the designating body, the statement of
benefits may be incorporated in a designation application. A
statement of benefits is a public record that may be inspected and
copied under IC 5-14-3.
(e) The designating body must review the statement of benefits
required by subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization
area or whether a deduction should be allowed, after the
designating body has made the following findings:
(1) Whether the estimate of the number of individuals who
will be employed or whose employment will be retained can
be reasonably expected to result from the proposed
occupation of the eligible vacant building.
(2) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will
be retained can be reasonably expected to result from the
proposed occupation of the eligible vacant building.
(3) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to
result from the proposed occupation of the eligible vacant
building.
(4) Whether the occupation of the eligible vacant building will
increase the tax base and assist in the rehabilitation of the
economic revitalization area.
(5) Whether the totality of benefits is sufficient to justify the
deduction.
A designating body may not designate an area an economic
revitalization area or approve a deduction under this section unless
the findings required by this subsection are made in the
affirmative.
(f) Except as otherwise provided in this section, the owner of an
eligible vacant building located in an economic revitalization area
is entitled to a deduction from the assessed value of the building if
the property owner or a tenant of the property owner occupies the
eligible vacant building and uses it for commercial or industrial
purposes. The property owner is entitled to the deduction:
(1) for the first year in which the property owner or a tenant
of the property owner occupies the eligible vacant building
and uses it for commercial or industrial purposes; and
(2) for subsequent years determined under subsection (g).
(g) The designating body shall determine the number of years
for which a property owner is entitled to a deduction under this
section. However, the deduction may not be allowed for more than
two (2) years. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by a resolution adopted not more than sixty (60) days after
the designating body receives a copy of the property owner's
deduction application from the county auditor.
A certified copy of a resolution under subdivision (2) shall be sent
to the county auditor, who shall make the deduction as provided in
section 5.3 of this chapter. A determination concerning the number
of years the deduction is allowed that is made under subdivision (1)
is final and may not be changed by using the procedure under
subdivision (2).
(h) Except as provided in section 2(i)(5) of this chapter and
subsection (k), the amount of the deduction the property owner is
entitled to receive under this section for a particular year equals
the product of:
(1) the assessed value of the building or part of the building
that is occupied by the property owner or a tenant of the
property owner; multiplied by
(2) the percentage set forth in the table in subsection (i).
(i) The percentage to be used in calculating the deduction under
subsection (h) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
(j) The amount of the deduction determined under subsection
(h) shall be adjusted in accordance with this subsection in the
following circumstances:
(1) If a general reassessment of real property occurs within
the period of the deduction, the amount of the assessed value
determined under subsection (h)(1) shall be adjusted to reflect
the percentage increase or decrease in assessed valuation that
resulted from the general reassessment.
(2) If an appeal of an assessment is approved and results in a
reduction of the assessed value of the property, the amount of
a deduction under this section shall be adjusted to reflect the
percentage decrease that resulted from the appeal.
(k) The maximum amount of a deduction under this section may
not exceed the lesser of:
(1) the annual amount for which the eligible vacant building
was offered for lease or rent by the owner or a previous
owner during the period the eligible vacant building was
unoccupied; or
(2) an amount, as determined by the designating body in its
discretion, that is equal to the annual amount for which
similar buildings in the county or contiguous counties were
leased or rented or offered for lease or rent during the period
the eligible vacant building was unoccupied.
(l) The department of local government finance may adopt rules
under IC 4-22-2 to implement this section.
SECTION 29. IC 6-1.1-12.1-5.3 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 5.3. (a) A property owner that
desires to obtain the deduction provided by section 4.8 of this
chapter must file a deduction application, on forms prescribed by
the department of local government finance, with the auditor of the
county in which the eligible vacant building is located. Except as
otherwise provided in this section, the deduction application must
be filed before May 10 of the year in which the property owner or
a tenant of the property owner initially occupies the eligible vacant
building.
(b) If notice of the assessed valuation or new assessment for a
year is not given to the property owner before April 10 of that
year, the deduction application required by this section may be
filed not later than thirty (30) days after the date the notice is
mailed to the property owner at the address shown on the records
of the township assessor.
(c) The deduction application required by this section must
contain the following information:
(1) The name of the property owner and, if applicable, the
property owner's tenant.
(2) A description of the property for which a deduction is
claimed.
(3) The amount of the deduction claimed for the first year of
the deduction.
(4) Any other information required by the department of local
government finance or the designating body.
(d) A deduction application filed under this section applies to the
year in which the property owner or a tenant of the property
owner occupies the eligible vacant building and in the following
year if the deduction is allowed for a two (2) year period, without
an additional deduction application being filed.
(e) A property owner that desires to obtain the deduction
provided by section 4.8 of this chapter but that did not file a
deduction application within the dates prescribed in subsection (a)
or (b) may file a deduction application between March 1 and May
10 of a subsequent year. A deduction application filed under this
subsection applies to the year in which the deduction application
is filed and the following year if the deduction is allowed for a two
(2) year period, without an additional deduction application being
filed. The amount of the deduction under this subsection is the
amount that would have been applicable to the year under section
4.8 of this chapter if the deduction application had been filed in
accordance with subsection (a) or (b).
(f) Subject to subsection (i), the county auditor shall do the
following:
(1) If a determination concerning the number of years the
deduction is allowed has been made in the resolution adopted
under section 2.5 of this chapter, the county auditor shall
make the appropriate deduction.
(2) If a determination concerning the number of years the
deduction is allowed has not been made in the resolution
adopted under section 2.5 of this chapter, the county auditor
shall send a copy of the deduction application to the
designating body. Upon receipt of the resolution stating the
number of years the deduction will be allowed, the county
auditor shall make the appropriate deduction.
(g) The amount and period of the deduction provided by section
4.8 of this chapter are not affected by a change in the ownership of
the eligible vacant building or a change in the property owner's
tenant, if the new property owner or the new tenant:
(1) continues to occupy the eligible vacant building in
compliance with any standards established under section 2(g)
of this chapter; and
(2) files an application in the manner provided by subsection
(e).
(h) Before the county auditor acts under subsection (f), the
county auditor may request that the township assessor of the
township in which the eligible vacant building is located review the
deduction application.
(i) A property owner may appeal a determination of the county
auditor under subsection (f) by requesting in writing a preliminary
conference with the county auditor not more than forty-five (45)
days after the county auditor gives the property owner notice of
the determination. An appeal under this subsection shall be
processed and determined in the same manner that an appeal is
processed and determined under IC 6-1.1-15.
(j) In addition to the requirements of subsection (c), a property
owner that files a deduction application under this section must
provide the county auditor and the designating body with
information showing the extent to which there has been compliance
with the statement of benefits approved under section 4.8 of this
chapter. This information must be included in the deduction
application and must also be updated each year in which the
deduction is applicable:
(1) at the same time that the property owner or the property
owner's tenant files a personal property tax return for
property located at the eligible vacant building for which the
deduction was granted; or
(2) if subdivision (1) does not apply, before May 15 of each
year.
(k) The following information is a public record if filed under
this section:
(1) The name and address of the property owner.
(2) The location and description of the eligible vacant building
for which the deduction was granted.
(3) Any information concerning the number of employees at
the eligible vacant building for which the deduction was
granted, including estimated totals that were provided as part
of the statement of benefits.
(4) Any information concerning the total of the salaries paid
to the employees described in subdivision (3), including
estimated totals that are provided as part of the statement of
benefits.
(5) Any information concerning the assessed value of the
eligible vacant building, including estimates that are provided
as part of the statement of benefits.
(l) Information concerning the specific salaries paid to
individual employees by the property owner or tenant is
confidential.
SECTION 30. IC 6-1.1-12.1-5.9, AS AMENDED BY P.L.193-2005,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5.9. (a) This section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter for
which a statement of benefits was approved before July 1, 1991.
(b) Not later than forty-five (45) days after receipt of the information
described in section 5.1, 5.3(j), or 5.6 of this chapter, the designating
body may determine whether the property owner has substantially
complied with the statement of benefits approved under section 3, or
4.5, or 4.8 of this chapter. If the designating body determines that the
property owner has not substantially complied with the statement of
benefits and that the failure to substantially comply was not caused by
factors beyond the control of the property owner (such as declines in
demand for the property owner's products or services), the designating
body shall mail a written notice to the property owner. The written
notice must include the following provisions:
(1) An explanation of the reasons for the designating body's
determination.
(2) The date, time, and place of a hearing to be conducted by the
designating body for the purpose of further considering the
property owner's compliance with the statement of benefits. The
date of the hearing may not be more than thirty (30) days after the
date on which the notice is mailed.
(c) On the date specified in the notice described in subsection
(b)(2), the designating body shall conduct a hearing for the purpose of
further considering the property owner's compliance with the statement
of benefits. Based on the information presented at the hearing by the
property owner and other interested parties, the designating body shall
again determine whether the property owner has made reasonable
efforts to substantially comply with the statement of benefits and
whether any failure to substantially comply was caused by factors
beyond the control of the property owner. If the designating body
determines that the property owner has not made reasonable efforts to
comply with the statement of benefits, the designating body shall adopt
a resolution terminating the property owner's deduction under section
3, or 4.5, or 4.8 of this chapter. If the designating body adopts such a
resolution, the deduction does not apply to the next installment of
property taxes owed by the property owner or to any subsequent
installment of property taxes.
(d) If the designating body adopts a resolution terminating a
deduction under subsection (c), the designating body shall immediately
mail a certified copy of the resolution to:
(1) the property owner;
(2) the county auditor; and
(3) if the deduction applied under section 4.5 of this chapter, the
township assessor.
The county auditor shall remove the deduction from the tax duplicate
and shall notify the county treasurer of the termination of the
deduction. If the designating body's resolution is adopted after the
county treasurer has mailed the statement required by IC 6-1.1-22-8,
the county treasurer shall immediately mail the property owner a
revised statement that reflects the termination of the deduction.
(e) A property owner whose deduction is terminated by the
designating body under this section may appeal the designating body's
decision by filing a complaint in the office of the clerk of the circuit or
superior court together with a bond conditioned to pay the costs of the
appeal if the appeal is determined against the property owner. An
appeal under this subsection shall be promptly heard by the court
without a jury and determined within thirty (30) days after the time of
the filing of the appeal. The court shall hear evidence on the appeal and
may confirm the action of the designating body or sustain the appeal.
The judgment of the court is final and conclusive unless an appeal is
taken as in other civil actions.
(f) If an appeal under subsection (e) is pending, the taxes resulting
from the termination of the deduction are not due until after the appeal
is finally adjudicated and the termination of the deduction is finally
determined.
SECTION 31. IC 6-1.1-12.1-8, AS AMENDED BY P.L.193-2005,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8. (a) Not later than December 31 of each
year, the county auditor shall publish the following in a newspaper of
general interest and readership and not one of limited subject matter:
(1) A list of the deduction applications that were filed under this
chapter during that year that resulted in deductions being applied
under this chapter for that year. The list must contain the
following:
(A) The name and address of each person approved for or
receiving a deduction that was filed for during the year.
(B) The amount of each deduction that was filed for during the
year.
(C) The number of years for which each deduction that was
filed for during the year will be available.
(D) The total amount for all deductions that were filed for and
applied during the year.
(2) The total amount of all deductions for real property that were
in effect under section 3 of this chapter during the year.
(3) The total amount of all deductions for new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment that were in effect under section 4.5 of this chapter
during the year.
(4) The total amount of all deductions for eligible vacant
buildings that were in effect under section 4.8 of this chapter
during the year.
(b) The county auditor shall file the information described in
subsection (a)(2), and (a)(3), and (a)(4) with the department of local
government finance not later than December 31 of each year.
SECTION 32. IC 6-1.1-12.1-9, AS AMENDED BY P.L.216-2005,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 9. Notwithstanding any other provision of this
chapter, a designating body may not approve a statement of benefits for
a deduction under section 3, or 4.5, or 4.8 of this chapter after the
approval deadline, which is determined in the following manner:
(1) The initial approval deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial approval deadline and
subsequent approval deadlines are automatically extended in
increments of five (5) years, so that approval deadlines
subsequent to the initial approval deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an approval deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of approval deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
approval deadline.
SECTION 33. IC 6-1.1-12.1-9.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]: Sec. 9.5. (a) As
used in this section, "clerical error" includes mathematical errors
and omitted signatures.
(b) Except as provided in section 9 of this chapter, the
designating body may by resolution waive noncompliance with the
following requirements in this chapter with respect to a particular
deduction under this chapter:
(1) a filing deadline applicable to an application, a statement
of benefits, or another document that is required to be filed
under this chapter; or
(2) a clerical error in an application, a statement of benefits,
or another document that is required to be filed under this
chapter;
if the taxpayer otherwise qualifies for the deduction and the
document is filed or the clerical error is corrected before the
resolution is adopted. The resolution must specifically identify the
property, deductions, and taxpayer that are effected by the
resolution, specifically identify the noncompliance that is the
subject of the resolution, and include a finding that the
noncompliance has been corrected before the adoption of the
resolution.
(c) The designating body shall certify a copy of a resolution
adopted under this section to the taxpayer and the department of
local government finance.
(d) If a noncompliance with this chapter has been corrected and
a resolution is adopted under this section, the taxpayer shall be
treated as if the taxpayer had complied with the procedural
requirements of this chapter. However, if the designating body
determines that granting the relief permitted by this section would
result in a delay in the issuance of tax bills, require the
recalculation of tax rates or tax levies for a particular year, or
otherwise cause an undue burden on a taxing unit, the designating
body may require that the deduction that the taxpayer would be
entitled to receive for a particular year be applied to a subsequent
year in the manner prescribed by the department of local
government finance.
SECTION 34. IC 6-1.1-12.1-11.3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 11.3. (a) This
section applies only to the following requirements:
(1) Failure to provide the completed statement of benefits form to
the designating body before the hearing required by section 2.5(c)
of this chapter.
(2) Failure to submit the completed statement of benefits form to
the designating body before the:
(A) initiation of the redevelopment or rehabilitation; or the
(B) installation of new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment; or
(C) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this
chapter.
(3) Failure to designate an area as an economic revitalization area
before the initiation of the:
(A) redevelopment;
(B) installation of new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment; or
(C) rehabilitation; or
(D) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this
chapter.
(4) Failure to make the required findings of fact before
designating an area as an economic revitalization area or
authorizing a deduction for new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment under
section 2, 3, or 4.5, or 4.8 of this chapter.
(5) Failure to file a:
(A) timely; or
(B) complete;
deduction application under section 5, 5.3, or 5.4 of this chapter.
(b) This section does not grant a designating body the authority to
exempt a person from filing a statement of benefits or exempt a
designating body from making findings of fact.
(c) A designating body may by resolution waive noncompliance
described under subsection (a) under the terms and conditions specified
in the resolution. Before adopting a waiver under this subsection, the
designating body shall conduct a public hearing on the waiver.
SECTION 35. IC 6-1.1-12.1-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12. (a) A property
owner that has received a deduction under section 3, or 4.5 of this
chapter is subject to the provisions of this section if the designating
body adopts a resolution incorporating the provisions of this section for
the economic revitalization area in which the property owner is located.
(b) If:
(1) the property owner (or, in the case of a deduction under
section 4.8 of this chapter, the property owner or a tenant of
the property owner) ceases operations at the facility for which
the deduction was granted; and
(2) the designating body finds that the property owner obtained
the deduction by intentionally providing false information
concerning the property owner's plans to continue operations at
the facility;
the property owner shall pay the amount determined under subsection
(e) to the county treasurer.
(c) A property owner may appeal the designating body's decision
under subsection (b) by filing a complaint in the office of the clerk of
the circuit or superior court together with a bond conditioned to pay the
costs of the appeal if the appeal is determined against the property
owner. An appeal under this subsection shall be promptly heard by the
court without a jury and determined not more than thirty (30) days after
the time of the filing of the appeal. The court shall hear evidence on the
appeal and may confirm the action of the designating body or sustain
the appeal. The judgment of the court is a final determination that may
be appealed in the same manner as other civil actions.
(d) If an appeal under subsection (c) is pending, the payment
required by this section is not due until after the appeal is finally
adjudicated and the property owner's liability for the payment is finally
determined.
(e) The county auditor shall determine the amount to be paid by the
property owner according to the following formula:
STEP ONE: For each year that the deduction was in effect,
determine the additional amount of property taxes that would
have been paid by the property owner if the deduction had not
been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Multiply the sum determined under STEP TWO
by one and one-tenth (1.1).
(f) The county treasurer shall distribute money paid under this
section on a pro rata basis to the general fund of each taxing unit that
contains the property that was subject to the deduction. The amount to
be distributed to the general fund of each taxing unit shall be
determined by the county auditor according to the following formula:
STEP ONE: For each year that the deduction was in effect,
determine the additional amount of property taxes that would
have been paid by the property owner to the taxing unit if the
deduction had not been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Divide the STEP TWO sum by the sum
determined under STEP TWO of subsection (e).
STEP FOUR: Multiply the amount paid by the property owner
under subsection (e) by the STEP THREE quotient.
SECTION 36. IC 6-1.1-12.1-14, AS AMENDED BY P.L.193-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 14. (a) This section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter for
which a statement of benefits was approved before July 1, 2004.
(b) A property owner that receives a deduction under section 3, or
4.5, or 4.8 of this chapter is subject to this section only if the
designating body, with the consent of the property owner, incorporates
this section, including the percentage to be applied by the county
auditor for purposes of STEP TWO of subsection (c), into its initial
approval of the property owner's statement of benefits and deduction
at the time of that approval.
(c) During each year in which a property owner's property tax
liability is reduced by a deduction applied under this chapter, the
property owner shall pay to the county treasurer a fee in an amount
determined by the county auditor. The county auditor shall determine
the amount of the fee to be paid by the property owner according to the
following formula:
STEP ONE: Determine the additional amount of property taxes
that would have been paid by the property owner during the year
if the deduction had not been in effect.
STEP TWO: Multiply the amount determined under STEP ONE
by the percentage determined by the designating body under
subsection (b), which may not exceed fifteen percent (15%). The
percentage determined by the designating body remains in effect
throughout the term of the deduction and may not be changed.
STEP THREE: Determine the lesser of the STEP TWO product
or one hundred thousand dollars ($100,000).
(d) Fees collected under this section must be distributed to one (1)
or more public or nonprofit entities established to promote economic
development within the corporate limits of the city, town, or county
served by the designating body. The designating body shall notify the
county auditor of the entities that are to receive distributions under this
section and the relative proportions of those distributions. The county
auditor shall distribute fees collected under this section in accordance
with the designating body's instructions.
(e) If the designating body determines that a property owner has not
paid a fee imposed under this section, the designating body may adopt
a resolution terminating the property owner's deduction under section
3, or 4.5, or 4.8 of this chapter. If the designating body adopts such a
resolution, the deduction does not apply to the next installment of
property taxes owed by the property owner or to any subsequent
installment of property taxes.
SECTION 37. IC 6-1.1-12.4-3, AS ADDED BY P.L.193-2005,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 3. (a) For purposes of
this section, an increase in the assessed value of personal property is
determined in the same manner that an increase in the assessed value
of new manufacturing equipment is determined for purposes of
IC 6-1.1-12.1.
(b) This subsection applies only to personal property that the owner
purchases after March 1, 2005, and before March 2, 2009. Except as
provided in sections 4, 5, and 8 of this chapter, an owner that purchases
personal property other than inventory (as defined in 50 IAC 4.2-5-1,
as in effect on January 1, 2005) that:
(1) was never before used by its owner for any purpose in Indiana;
and
(2) creates or retains employment;
is entitled to a deduction from the assessed value of the personal
property.
(c) The deduction under this section is first available in the year in
which the increase in assessed value resulting from the purchase of the
personal property occurs and continues for the following two (2) years.
The amount of the deduction that a property owner may receive with
respect to personal property located in a county for a particular year
equals the lesser of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the purchase
of the personal property; multiplied by
(B) the percentage from the following table:
YEAR OF DEDUCTION
PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the personal property, the amount of
the deduction is adjusted to reflect the percentage decrease that results
from the appeal.
(e) A property owner must claim the deduction under this section on
the owner's annual personal property tax return. The township assessor
shall:
(1) identify the personal property eligible for the deduction to the
county auditor; and
(2) inform the county auditor of the deduction amount.
(f) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals of
all deductions approved;
under this section.
(g) The deduction under this section does not apply to personal
property at a facility listed in IC 6-1.1-12.1-3(e).
SECTION 38. IC 6-1.1-14-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 5. (a) After holding
the hearings referred to in section 4 of this chapter, the department of
local government finance shall, in order to equalize assessed values in
any county or in the state as a whole, issue an order increasing or
decreasing assessed values of any tangible property if the department
finds:
(1) that the assessed values in any county are not uniform and
equal as to townships, portions of the same township, or classes
of property; or
(2) that the assessed values in this state are not uniform and equal
either as between counties or as to classes of property.
(b) The department of local government finance may not issue an
equalization order to increase or decrease assessed values under this
section more than twelve (12) months after the county estimates of
assessed valuation required under IC 6-1.1-17-1 IC 6-1.1-17-1(a) are
filed with the department.
(c) If the department of local government finance issues an
equalization order under this section, the department shall state in the
order the percentage to be added to or deducted from the assessed
value of the tangible property affected by the order.
(d) In issuing an equalization order under this section, the
department of local government finance may not reduce or increase the
aggregate assessed values of any township beyond the amounts actually
necessary for a just and proper equalization of assessments within the
entire state.
SECTION 39. IC 6-1.1-15-4, AS AMENDED BY P.L.199-2005,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) After receiving a petition for review
which is filed under section 3 of this chapter, the Indiana board shall
conduct a hearing at its earliest opportunity. The Indiana board may:
(1) assign:
(A) full;
(B) limited; or
(C) no;
evidentiary value to the assessed valuation of tangible property
determined by stipulation submitted as evidence of a comparable
sale; and
(2) correct any errors that may have been made, and adjust the
assessment in accordance with the correction.
(b) If the Indiana board conducts a site inspection of the property as
part of its review of the petition, the Indiana board shall give notice to
all parties of the date and time of the site inspection. The Indiana board
is not required to assess the property in question. The Indiana board
shall give notice of the date fixed for the hearing, by mail, to the
taxpayer and to the appropriate township assessor, county assessor, and
county auditor. With respect to an appeal of the assessment of real
property or personal property filed after June 30, 2005, the notice must
include the following:
(1) The action of the county property tax assessment board of
appeals with respect to the appealed items.
(2) A statement that a taxing unit receiving the notice from the
county auditor under subsection (c) may:
(A) attend the hearing; and
(B) offer testimony.
A taxing unit that receives a notice from the county auditor under
subsection (c) is not a party to the appeal. The Indiana board shall give
these notices at least thirty (30) days before the day fixed for the
hearing. The property tax assessment board of appeals that made the
determination under appeal under this section may, with the approval
of the county executive, file an amicus curiae brief in the review
proceeding under this section. The expenses incurred by the property
tax assessment board of appeals in filing the amicus curiae brief shall
be paid from the property reassessment fund under IC 6-1.1-4-27.5.
The executive of a taxing unit may file an amicus curiae brief in the
review proceeding under this section if the property whose assessment
is under appeal is subject to assessment by that taxing unit.
(c) If, after receiving notice of a hearing under subsection (b), the
county auditor determines that the assessed value of the appealed items
constitutes at least one percent (1%) of the total gross certified assessed
value of a particular taxing unit for the assessment date immediately
preceding the assessment date for which the appeal was filed, the
county auditor shall send a copy of the notice to the affected taxing
unit. A taxing unit that receives a notice from the county auditor
under this subsection is not a party to the appeal. Failure of the
county auditor to send a copy of the notice to the affected taxing unit
does not affect the validity of the appeal or delay the appeal.
(d) If a petition for review does not comply with the Indiana board's
instructions for completing the form prescribed under section 3 of this
chapter, the Indiana board shall return the petition to the petitioner and
include a notice describing the defect in the petition. The petitioner
then has thirty (30) days from the date on the notice to cure the defect
and file a corrected petition. The Indiana board shall deny a corrected
petition for review if it does not substantially comply with the Indiana
board's instructions for completing the form prescribed under section
3 of this chapter.
(e) The Indiana board shall prescribe a form for use in processing
petitions for review of actions by the county property tax assessment
board of appeals. The Indiana board shall issue instructions for
completion of the form. The form must require the Indiana board to
indicate agreement or disagreement with each item that is:
(1) if the county or township official held a preliminary
conference under section 1(f) of this chapter, indicated on the
petition submitted under that section by the taxpayer and the
official; and
(2) included in the county property tax assessment board of
appeals' findings, record, and determination under section 2.1(d)
of this chapter.
The form must also require the Indiana board to indicate the issues in
dispute and its reasons in support of its resolution of those issues.
(f) After the hearing the Indiana board shall give the petitioner, the
township assessor, the county assessor, and the county auditor: and the
affected taxing units required to be notified under subsection (c):
(1) notice, by mail, of its final determination;
(2) a copy of the form completed under subsection (e); and
(3) notice of the procedures they must follow in order to obtain
court review under section 5 of this chapter.
The county auditor shall provide copies of the documents described
in subdivisions (1) through (3) to the taxing units entitled to notice
under subsection (c).
(g) Except as provided in subsection (h), the Indiana board shall
conduct a hearing not later than nine (9) months after a petition in
proper form is filed with the Indiana board, excluding any time due to
a delay reasonably caused by the petitioner.
(h) With respect to an appeal of a real property assessment that
takes effect on the assessment date on which a general reassessment of
real property takes effect under IC 6-1.1-4-4, the Indiana board shall
conduct a hearing not later than one (1) year after a petition in proper
form is filed with the Indiana board, excluding any time due to a delay
reasonably caused by the petitioner.
(i) Except as provided in subsection (j), the Indiana board shall
make a determination not later than the later of:
(1) ninety (90) days after the hearing; or
(2) the date set in an extension order issued by the Indiana board.
subsection (n) if the other party requests the information in writing at
least ten (10) days before the deadline for filing of the information
under subsection (n).
(p) The county assessor may:
(1) appear as an additional party if the notice of appearance is
filed before the review proceeding; or
(2) with the approval of the township assessor, represent the
township assessor;
in a review proceeding under this section.
(q) The Indiana board may base its final determination on a
stipulation between the respondent and the petitioner. If the final
determination is based on a stipulated assessed valuation of tangible
property, the Indiana board may order the placement of a notation on
the permanent assessment record of the tangible property that the
assessed valuation was determined by stipulation. The Indiana board
may:
(1) order that a final determination under this subsection has no
precedential value; or
(2) specify a limited precedential value of a final determination
under this subsection.
SECTION 40. IC 6-1.1-15-15 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 15. A class action
suit against the Indiana board or the department of local government
finance may not be maintained in any court, including the Indiana tax
court, on behalf of a person who has not complied with the
requirements of this chapter or IC 6-1.1-26 before the certification of
the class.
SECTION 41. IC 6-1.1-17-0.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 0.5. (a) For
purposes of this section, "assessed value" has the meaning set forth in
IC 6-1.1-1-3(a).
(b) The county auditor may exclude and keep separate on the tax
duplicate for taxes payable in a calendar year the assessed value of
tangible property that meets the following conditions:
(1) The assessed value of the property is at least nine percent
(9%) of the assessed value of all tangible property subject to
taxation by a taxing unit. (as defined in IC 6-1.1-1-21).
(2) The property is or has been part of a bankruptcy estate that is
subject to protection under the federal bankruptcy code.
(3) The owner of the property has discontinued all business
operations on the property.
fiscal officer of each political subdivision of the county and the
department of local government finance. The statement shall contain:
(1) information concerning the assessed valuation in the political
subdivision for the next calendar year;
(2) an estimate of the taxes to be distributed to the political
subdivision during the last six (6) months of the current calendar
year;
(3) the current assessed valuation as shown on the abstract of
charges;
(4) the average growth in assessed valuation in the political
subdivision over the preceding three (3) budget years, excluding
years in which a general reassessment occurs, determined
according to procedures established by the department of local
government finance; and
(5) the amount of the political subdivision's assessed valuation
reduction determined under section 0.5(d) of this chapter; and
(5) (6) any other information at the disposal of the county auditor
that might affect the assessed value used in the budget adoption
process.
(b) The estimate of taxes to be distributed shall be based on:
(1) the abstract of taxes levied and collectible for the current
calendar year, less any taxes previously distributed for the
calendar year; and
(2) any other information at the disposal of the county auditor
which might affect the estimate.
(c) The fiscal officer of each political subdivision shall present the
county auditor's statement to the proper officers of the political
subdivision.
(d) Subject to subsection (e) and except as provided in
subsection (f), after the county auditor sends a certified statement
under subsection (a) or an amended certified statement under this
subsection with respect to a political subdivision and before the
department of local government finance certifies its action with
respect to the political subdivision under section 16(f) of this
chapter, the county auditor may amend the information
concerning assessed valuation included in the earlier certified
statement. The county auditor shall send a certified statement
amended under this subsection, under the seal of the board of
county commissioners, to:
(1) the fiscal officer of each political subdivision affected by
the amendment; and
(2) the department of local government finance.
(e) Except as provided in subsection (g), before the county
auditor makes an amendment under subsection (d), the county
auditor must provide an opportunity for public comment on the
proposed amendment at a public hearing. The county auditor must
give notice of the hearing under IC 5-3-1. If the county auditor
makes the amendment as a result of information provided to the
county auditor by an assessor, the county auditor shall give notice
of the public hearing to the assessor.
(f) Subsection (d) does not apply to an adjustment of assessed
valuation under IC 36-7-15.1-26.9(d).
(g) The county auditor is not required to hold a public hearing
under subsection (e) if:
(1) the amendment under subsection (d) is proposed to correct
a mathematical error made in the determination of the
amount of assessed valuation included in the earlier certified
statement;
(2) the amendment under subsection (d) is proposed to add to
the amount of assessed valuation included in the earlier
certified statement assessed valuation of omitted property
discovered after the county auditor sent the earlier certified
statement; or
(3) the county auditor determines that the amendment under
subsection (d) will not result in an increase in the tax rate or
tax rates of the political subdivision.
SECTION 43. IC 6-1.1-17-8.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 8.5. (a) If a county auditor
reduces a taxing unit's assessed valuation under section 0.5(d) of
this chapter, the department of local government finance shall, in
the manner prescribed in section 16 of this chapter, review the
budget, tax rate, and tax levy of the taxing unit.
(b) The county auditor may appeal to the department of local
government finance to reduce a taxing unit's assessed valuation by
an amount that exceeds the limits set forth in section 0.5(e) of this
chapter. The department of local government finance:
(1) may require the county auditor to submit supporting
information with the county auditor's appeal;
(2) shall consider the appeal at the time of the review required
by subsection (a); and
(3) may approve, modify and approve, or reject the amount of
the reduction sought in the appeal.
SECTION 44. IC 6-1.1-17-16, AS AMENDED BY P.L.228-2005,
SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: Sec. 16. (a) Subject to the limitations and requirements
prescribed in this section, the department of local government finance
may revise, reduce, or increase a political subdivision's budget by fund,
tax rate, or tax levy which the department reviews under section 8 or
10 of this chapter.
(b) Subject to the limitations and requirements prescribed in this
section, the department of local government finance may review,
revise, reduce, or increase the budget by fund, tax rate, or tax levy of
any of the political subdivisions whose tax rates compose the aggregate
tax rate within a political subdivision whose budget, tax rate, or tax
levy is the subject of an appeal initiated under this chapter.
(c) Except as provided in subsections (j) and (k), before the
department of local government finance reviews, revises, reduces, or
increases a political subdivision's budget by fund, tax rate, or tax levy
under this section, the department must hold a public hearing on the
budget, tax rate, and tax levy. The department of local government
finance shall hold the hearing in the county in which the political
subdivision is located. The department of local government finance
may consider the budgets by fund, tax rates, and tax levies of several
political subdivisions at the same public hearing. At least five (5) days
before the date fixed for a public hearing, the department of local
government finance shall give notice of the time and place of the
hearing and of the budgets by fund, levies, and tax rates to be
considered at the hearing. The department of local government finance
shall publish the notice in two (2) newspapers of general circulation
published in the county. However, if only one (1) newspaper of general
circulation is published in the county, the department of local
government finance shall publish the notice in that newspaper.
(d) Except as provided in subsection (i), IC 6-1.1-19, IC 20-45,
IC 20-46, or IC 6-1.1-18.5, the department of local government finance
may not increase a political subdivision's budget by fund, tax rate, or
tax levy to an amount which exceeds the amount originally fixed by the
political subdivision. The department of local government finance shall
give the political subdivision written notification specifying any
revision, reduction, or increase the department proposes in a political
subdivision's tax levy or tax rate. The political subdivision has one (1)
week from the date the political subdivision receives the notice to
provide a written response to the department of local government
finance's Indianapolis office specifying how to make the required
reductions in the amount budgeted by fund. The department of local
government finance shall make reductions as specified in the political
subdivision's response if the response is provided as required by this
subsection and sufficiently specifies all necessary reductions. The
department of local government finance may make a revision, a
reduction, or an increase in a political subdivision's budget only by
fund.
(e) The department of local government finance may not approve a
levy for lease payments by a city, town, county, library, or school
corporation if the lease payments are payable to a building corporation
for use by the building corporation for debt service on bonds and if:
(1) no bonds of the building corporation are outstanding; or
(2) the building corporation has enough legally available funds on
hand to redeem all outstanding bonds payable from the particular
lease rental levy requested.
(f) The department of local government finance shall certify its
action to:
(1) the county auditor;
(2) the political subdivision if the department acts pursuant to an
appeal initiated by the political subdivision;
(3) the taxpayer that initiated an appeal under section 13 of
this chapter, or, if the appeal was initiated by multiple
taxpayers, the first ten (10) taxpayers whose names appear on a
petition filed under section 13 of this chapter; the statement filed
to initiate the appeal; and
(4) a taxpayer that owns property that represents at least ten
percent (10%) of the taxable assessed valuation in the political
subdivision.
(g) The following may petition for judicial review of the final
determination of the department of local government finance under
subsection (f):
(1) If the department acts under an appeal initiated by a political
subdivision, the political subdivision.
(2) If the department:
(A) acts under an appeal initiated by one (1) or more
taxpayers under section 13 of this chapter; or
(B) fails to act on the appeal before the department
certifies its action under subsection (f);
a taxpayer who signed the petition under that section. statement
filed to initiate the appeal.
the annual adjustment or general reassessment takes effect.
STEP THREE: Determine the three (3) calendar years that
immediately precede the ensuing calendar year and in which a
statewide general reassessment of real property does not first take
effect.
STEP FOUR: Compute separately, for each of the calendar years
determined in STEP THREE, the actual percentage increase
(rounded to the nearest one-hundredth percent (0.01%)) in the
assessed value (before the adjustment, if any, under
IC 6-1.1-4-4.5) of the taxable property from the preceding year.
STEP FIVE: Divide the sum of the three (3) quotients computed
in STEP FOUR by three (3).
STEP SIX: Determine the greater of the following:
(A) Zero (0).
(B) The result of the STEP TWO percentage minus the STEP
FIVE percentage.
STEP SEVEN: Determine the quotient of the STEP ONE tax rate
divided by the sum of one (1) plus the STEP SIX percentage
increase.
(f) The department of local government finance shall compute the
maximum rate allowed under subsection (e) and provide the rate to
each political subdivision with authority to levy a tax under a statute
listed in subsection (d).
SECTION 46. IC 6-1.1-18.5-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 1. As used in this
chapter:
"Ad valorem property tax levy for an ensuing calendar year" means
the total property taxes imposed by a civil taxing unit for current
property taxes collectible in that ensuing calendar year.
"Adopting county" means any county in which the county adjusted
gross income tax is in effect.
"Civil taxing unit" means any taxing unit except a school
corporation.
"Maximum permissible ad valorem property tax levy for the
preceding calendar year" means the greater of:
(1) the remainder of:
(A) the civil taxing unit's maximum permissible ad
valorem property tax levy for the calendar year
immediately preceding the ensuing calendar year, as that
levy was determined under section 3 of this chapter; minus
(B) one-half (1/2) of the remainder of:
(i) the civil taxing unit's maximum permissible ad
valorem property tax levy referred to in clause (A);
minus
(ii) the civil taxing unit's ad valorem property tax levy
for the calendar year immediately preceding the ensuing
calendar year referred to in subdivision (2); or
(2) the civil taxing unit's ad valorem property tax levy for the
calendar year immediately preceding the ensuing calendar year,
as that levy was determined by the department of local
government finance in fixing the civil taxing unit's budget, levy,
and rate for that preceding calendar year under IC 6-1.1-17, and
after eliminating the effects of temporary excessive levy appeals
and temporary adjustments made to the working maximum levy
for the calendar year immediately preceding the ensuing calendar
year, as determined by the department of local government
finance.
"Taxable property" means all tangible property that is subject to the
tax imposed by this article and is not exempt from the tax under
IC 6-1.1-10 or any other law. For purposes of sections 2 and 3 of this
chapter, the term "taxable property" is further defined in section 6 of
this chapter.
"Unadjusted assessed value" means the assessed value of a civil
taxing unit as determined by local assessing officials and the
department of local government finance in a particular calendar year
before the application of an annual adjustment under IC 6-1.1-4-4.5 for
that particular calendar year or any calendar year since the last general
reassessment preceding the particular calendar year.
SECTION 47. IC 6-1.1-18.5-13, AS AMENDED BY HEA
1156-2006, SECTION 1, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 13. With respect to an appeal
filed under section 12 of this chapter, the local government tax control
board may recommend that a civil taxing unit receive any one (1) or
more of the following types of relief:
(1) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if in
the judgment of the local government tax control board the
increase is reasonably necessary due to increased costs of the civil
taxing unit resulting from annexation, consolidation, or other
extensions of governmental services by the civil taxing unit to
additional geographic areas or persons.
(2) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if the
local government tax control board finds that the civil taxing unit
needs the increase to meet the civil taxing unit's share of the costs
of operating a court established by statute enacted after December
31, 1973. Before recommending such an increase, the local
government tax control board shall consider all other revenues
available to the civil taxing unit that could be applied for that
purpose. The maximum aggregate levy increases that the local
government tax control board may recommend for a particular
court equals the civil taxing unit's estimate of the unit's share of
the costs of operating a court for the first full calendar year in
which it is in existence. For purposes of this subdivision, costs of
operating a court include:
(A) the cost of personal services (including fringe benefits);
(B) the cost of supplies; and
(C) any other cost directly related to the operation of the court.
(3) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if the
local government tax control board finds that the quotient
determined under STEP SIX of the following formula is equal to
or greater than one and three-hundredths (1.03): two-hundredths
(1.02):
STEP ONE: Determine the three (3) calendar years that most
immediately precede the ensuing calendar year and in which
a statewide general reassessment of real property does not first
become effective.
STEP TWO: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the civil taxing
unit's total assessed value of all taxable property and the total
assessed value of property tax deductions in the unit under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular calendar
year, divided by the sum of the civil taxing unit's total assessed
value of all taxable property and the total assessed value of
property tax deductions in the unit under IC 6-1.1-12-41 or
IC 6-1.1-12-42 in the calendar year immediately preceding the
particular calendar year.
STEP THREE: Divide the sum of the three (3) quotients
computed in STEP TWO by three (3).
STEP FOUR: Compute separately, for each of the calendar
years determined in STEP ONE, the quotient (rounded to the
nearest ten-thousandth (0.0001)) of the sum of the total
assessed value of all taxable property in all counties and the
total assessed value of property tax deductions in all counties
under IC 6-1.1-12-41 or IC 6-1.1-12-42 in the particular
calendar year, divided by the sum of the total assessed value
of all taxable property in all counties and the total assessed
value of property tax deductions in all counties under
IC 6-1.1-12-41 or IC 6-1.1-12-42 in the calendar year
immediately preceding the particular calendar year.
STEP FIVE: Divide the sum of the three (3) quotients
computed in STEP FOUR by three (3).
STEP SIX: Divide the STEP THREE amount by the STEP
FIVE amount.
The civil taxing unit may increase its levy by a percentage not
greater than the percentage by which the STEP THREE amount
exceeds the percentage by which the civil taxing unit may
increase its levy under section 3 of this chapter based on the
assessed value growth quotient determined under section 2 of this
chapter.
(4) Permission to the civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter, if the
local government tax control board finds that the civil taxing unit
needs the increase to pay the costs of furnishing fire protection for
the civil taxing unit through a volunteer fire department. For
purposes of determining a township's need for an increased levy,
the local government tax control board shall not consider the
amount of money borrowed under IC 36-6-6-14 during the
immediately preceding calendar year. However, any increase in
the amount of the civil taxing unit's levy recommended by the
local government tax control board under this subdivision for the
ensuing calendar year may not exceed the lesser of:
(A) ten thousand dollars ($10,000); or
(B) twenty percent (20%) of:
(i) the amount authorized for operating expenses of a
volunteer fire department in the budget of the civil taxing
unit for the immediately preceding calendar year; plus
(ii) the amount of any additional appropriations authorized
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department
under this chapter; minus
(iii) the amount of money borrowed under IC 36-6-6-14
during that calendar year for the civil taxing unit's use in
paying operating expenses of a volunteer fire department.
(5) Permission to a civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter in
order to raise revenues for pension payments and contributions
the civil taxing unit is required to make under IC 36-8. The
maximum increase in a civil taxing unit's levy that may be
recommended under this subdivision for an ensuing calendar year
equals the amount, if any, by which the pension payments and
contributions the civil taxing unit is required to make under
IC 36-8 during the ensuing calendar year exceeds the product of
one and one-tenth (1.1) multiplied by the pension payments and
contributions made by the civil taxing unit under IC 36-8 during
the calendar year that immediately precedes the ensuing calendar
year. For purposes of this subdivision, "pension payments and
contributions made by a civil taxing unit" does not include that
part of the payments or contributions that are funded by
distributions made to a civil taxing unit by the state.
(6) Permission to increase its levy in excess of the limitations
established under section 3 of this chapter if the local government
tax control board finds that:
(A) the township's township assistance ad valorem property
tax rate is less than one and sixty-seven hundredths cents
($0.0167) per one hundred dollars ($100) of assessed
valuation; and
(B) the township needs the increase to meet the costs of
providing township assistance under IC 12-20 and IC 12-30-4.
The maximum increase that the board may recommend for a
township is the levy that would result from an increase in the
township's township assistance ad valorem property tax rate of
one and sixty-seven hundredths cents ($0.0167) per one hundred
dollars ($100) of assessed valuation minus the township's ad
valorem property tax rate per one hundred dollars ($100) of
assessed valuation before the increase.
(7) Permission to a civil taxing unit to increase its levy in excess
of the limitations established under section 3 of this chapter if:
(A) the increase has been approved by the legislative body of
the municipality with the largest population where the civil
taxing unit provides public transportation services; and
(B) the local government tax control board finds that the civil
taxing unit needs the increase to provide adequate public
transportation services.
The local government tax control board shall consider tax rates
and levies in civil taxing units of comparable population, and the
effect (if any) of a loss of federal or other funds to the civil taxing
unit that might have been used for public transportation purposes.
However, the increase that the board may recommend under this
subdivision for a civil taxing unit may not exceed the revenue that
would be raised by the civil taxing unit based on a property tax
rate of one cent ($0.01) per one hundred dollars ($100) of
assessed valuation.
(8) Permission to a civil taxing unit to increase the unit's levy in
excess of the limitations established under section 3 of this
chapter if the local government tax control board finds that:
(A) the civil taxing unit is:
(i) a county having a population of more than one hundred
forty-eight thousand (148,000) but less than one hundred
seventy thousand (170,000);
(ii) a city having a population of more than fifty-five
thousand (55,000) but less than fifty-nine thousand (59,000);
(iii) a city having a population of more than twenty-eight
thousand seven hundred (28,700) but less than twenty-nine
thousand (29,000);
(iv) a city having a population of more than fifteen thousand
four hundred (15,400) but less than sixteen thousand six
hundred (16,600); or
(v) a city having a population of more than seven thousand
(7,000) but less than seven thousand three hundred (7,300);
and
(B) the increase is necessary to provide funding to undertake
removal (as defined in IC 13-11-2-187) and remedial action
(as defined in IC 13-11-2-185) relating to hazardous
substances (as defined in IC 13-11-2-98) in solid waste
disposal facilities or industrial sites in the civil taxing unit that
have become a menace to the public health and welfare.
The maximum increase that the local government tax control
board may recommend for such a civil taxing unit is the levy that
would result from a property tax rate of six and sixty-seven
hundredths cents ($0.0667) for each one hundred dollars ($100)
of assessed valuation. For purposes of computing the ad valorem
property tax levy limit imposed on a civil taxing unit under
section 3 of this chapter, the civil taxing unit's ad valorem
property tax levy for a particular year does not include that part of
the levy imposed under this subdivision. In addition, a property
tax increase permitted under this subdivision may be imposed for
only two (2) calendar years.
(9) Permission for a county:
(A) having a population of more than eighty thousand (80,000)
but less than ninety thousand (90,000) to increase the county's
levy in excess of the limitations established under section 3 of
this chapter, if the local government tax control board finds
that the county needs the increase to meet the county's share of
the costs of operating a jail or juvenile detention center,
including expansion of the facility, if the jail or juvenile
detention center is opened after December 31, 1991;
(B) that operates a county jail or juvenile detention center that
is subject to an order that:
(i) was issued by a federal district court; and
(ii) has not been terminated;
(C) that operates a county jail that fails to meet:
(i) American Correctional Association Jail Construction
Standards; and
(ii) Indiana jail operation standards adopted by the
department of correction; or
(D) that operates a juvenile detention center that fails to meet
standards equivalent to the standards described in clause (C)
for the operation of juvenile detention centers.
Before recommending an increase, the local government tax
control board shall consider all other revenues available to the
county that could be applied for that purpose. An appeal for
operating funds for a jail or a juvenile detention center shall be
considered individually, if a jail and juvenile detention center are
both opened in one (1) county. The maximum aggregate levy
increases that the local government tax control board may
recommend for a county equals the county's share of the costs of
operating the jail or a juvenile detention center for the first full
calendar year in which the jail or juvenile detention center is in
operation.
(10) Permission for a township to increase its levy in excess of the
limitations established under section 3 of this chapter, if the local
government tax control board finds that the township needs the
increase so that the property tax rate to pay the costs of furnishing
fire protection for a township, or a portion of a township, enables
the township to pay a fair and reasonable amount under a contract
with the municipality that is furnishing the fire protection.
However, for the first time an appeal is granted the resulting rate
increase may not exceed fifty percent (50%) of the difference
between the rate imposed for fire protection within the
municipality that is providing the fire protection to the township
and the township's rate. A township is required to appeal a second
time for an increase under this subdivision if the township wants
to further increase its rate. However, a township's rate may be
increased to equal but may not exceed the rate that is used by the
municipality. More than one (1) township served by the same
municipality may use this appeal.
(11) Permission for a township to increase its levy in excess of the
limitations established under section 3 of this chapter, if the local
government tax control board finds that the township has been
required, for the three (3) consecutive years preceding the year for
which the appeal under this subdivision is to become effective, to
borrow funds under IC 36-6-6-14 to furnish fire protection for the
township or a part of the township. However, the maximum
increase in a township's levy that may be allowed under this
subdivision is the least of the amounts borrowed under
IC 36-6-6-14 during the preceding three (3) calendar years. A
township may elect to phase in an approved increase in its levy
under this subdivision over a period not to exceed three (3) years.
A particular township may appeal to increase its levy under this
section not more frequently than every fourth calendar year.
(12) Permission to a city having a population of more than
twenty-nine thousand (29,000) but less than thirty-one thousand
(31,000) to increase its levy in excess of the limitations
established under section 3 of this chapter if:
(A) an appeal was granted to the city under this section to
reallocate property tax replacement credits under IC 6-3.5-1.1
in 1998, 1999, and 2000; and
(B) the increase has been approved by the legislative body of
the city, and the legislative body of the city has by resolution
determined that the increase is necessary to pay normal
operating expenses.
The maximum amount of the increase is equal to the amount of
property tax replacement credits under IC 6-3.5-1.1 that the city
petitioned under this section to have reallocated in 2001 for a
purpose other than property tax relief.
credit he the individual was allowed under this chapter for that real
property.
(d) An individual who receives the credit provided by section 2 of
this chapter for property that is jointly held with another owner in a
particular year and remains eligible for the credit in the following year
is not required to file a statement to reapply for the credit following the
removal of the joint owner if:
(1) the individual is the sole owner of the property following the
death of the individual's spouse;
(2) the individual is the sole owner of the property following the
death of a joint owner who was not the individual's spouse; or
(3) the individual is awarded sole ownership of property in a
divorce decree.
SECTION 51. IC 6-1.1-30-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. The department
of local government finance shall keep a record of its proceedings and
orders. The department of local government finance's record is a public
record. A copy of the appropriate portion of the record is sufficient
evidence in all courts or proceedings to prove an action, rule, or order
of the department of local government finance if the copy is:
(1) certified by the commissioner of the department; and
(2) attested to by the deputy a designee of the commissioner of
the department.
SECTION 52. IC 6-1.1-31-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 6. (a) With respect
to the assessment of real property, the rules of the department of local
government finance shall provide for:
(1) the classification of land on the basis of:
(i) acreage;
(ii) lots;
(iii) size;
(iv) location;
(v) use;
(vi) productivity or earning capacity;
(vii) applicable zoning provisions;
(viii) accessibility to highways, sewers, and other public
services or facilities; and
(ix) any other factor that the department determines by rule is
just and proper; and
(2) the classification of improvements on the basis of:
(i) size;
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 12. (a) A board of county commissioners, a county assessor, or an
elected township assessor may enter into a properly approved contract
for the discovery of property that has been undervalued or omitted from
assessment. The contract must prohibit payment to the contractor for
discovery of undervaluation or omission with respect to a parcel or
personal property return before all appeals of the assessment of the
parcel or the assessment under the return have been finalized. The
contract may require the contractor to:
(1) examine and verify the accuracy of personal property returns
filed by taxpayers with a township assessor of a township in the
county; and
(2) compare a return with the books of the taxpayer and with
personal property owned, held, possessed, controlled, or occupied
by the taxpayer.
(b) The investigation and collection expenses of a contract under
subsection (a) may be deducted from the gross amount of taxes
collected on the undervalued or omitted property that is so discovered.
The remainder of the taxes collected on the undervalued or omitted
property shall be distributed to the appropriate taxing units.
(b) This subsection applies if funds are not appropriated for
payment of services performed under a contract described in
subsection (a). The county auditor may create a special
nonreverting fund in which the county treasurer shall deposit the
amount of taxes, including penalties and interest, that result from
additional assessments on undervalued or omitted property
collected from all taxing jurisdictions in the county after deducting
the amount of any property tax credits that reduce the owner's
property tax liability for the undervalued or omitted property. The
fund remains in existence during the term of the contract.
Distributions shall be made from the fund without appropriation
only for the following purposes:
(1) All contract fees and other costs related to the contract.
(2) After the payments required by subdivision (1) have been
made and the contract has expired, the county auditor shall
distribute all money remaining in the fund to the appropriate
taxing units in the county using the property tax rates of each
taxing unit in effect at the time of the distribution.
(c) A board of county commissioners, a county assessor, or an
elected township assessor may not contract for services under
subsection (a) on a percentage basis.
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 5. (a) A declaratory
ordinance adopted under section 2 of this chapter and confirmed under
section 3 of this chapter must include a provision with respect to the
allocation and distribution of property taxes for the purposes and in the
manner provided in this section. The allocation provision must apply
to the entire economic development district. The allocation provisions
must require that any property taxes subsequently levied by or for the
benefit of any public body entitled to a distribution of property taxes on
taxable property in the economic development district be allocated and
distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units. However, if the effective date of the
allocation provision of a declaratory ordinance is after March 1,
1985, and before January 1, 1986, and if an improvement to
property was partially completed on March 1, 1985, the unit may
provide in the declaratory ordinance that the taxes attributable to
the assessed value of the property as finally determined for March
1, 1984, shall be allocated to and, when collected, paid into the
funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of the
property tax proceeds in excess of those described in subdivision
(1), as specified in the declaratory ordinance, shall be allocated to
the unit for the economic development district and, when
collected, paid into a special fund established by the unit for that
economic development district that may be used only to pay the
principal of and interest on obligations owed by the unit under
IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing of
industrial development programs in, or serving, that economic
development district. The amount not paid into the special fund
shall be paid to the respective units in the manner prescribed by
subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on which
the obligations can be redeemed) on obligations owed by the unit
under IC 4-4-8 (before its repeal) or IC 5-28-9 for the financing
of industrial development programs in, or serving, that economic
development district, money in the special fund in excess of that
amount shall be paid to the respective taxing units in the manner
prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
economic development district that is annexed by any taxing unit after
the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated upon
or in, or added to, the economic development district effective on the
next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all taxable
property in the economic development district, for purposes of tax
limitation, property tax replacement (except as provided in
IC 6-1.1-21-3(c), IC 6-1.1-21-4(a)(3), and IC 6-1.1-21-5(c)), and
formulation of the budget, tax rate, and tax levy for each political
subdivision in which the property is located is the lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the district under this section. After
each annual adjustment under IC 6-1.1-4-4.5, the department of
local government finance shall adjust the base assessed value to
neutralize any effect of the annual adjustment on the property tax
proceeds allocated to the district under this section. However, the
adjustment adjustments under this subsection may not include the
effect of property tax abatements under IC 6-1.1-12.1.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on depreciable
personal property that the unit has by ordinance allocated to the
economic development district. However, the ordinance may not
limit the allocation to taxes on depreciable personal property with
any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to an
economic development district property taxes imposed under IC 6-1.1
on depreciable personal property that has a useful life in excess of eight
(8) years, the ordinance continues in effect until an ordinance is
adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means:
(1) the net assessed value of all the property as finally determined
for the assessment date immediately preceding the effective date
of the allocation provision of the declaratory resolution, as
adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), the net
assessed value of property that is assessed as residential property
under the rules of the department of local government finance, as
finally determined for any assessment date after the effective date
of the allocation provision.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997.
SECTION 57. IC 6-1.1-40-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]: Sec. 1.5. As
used in this chapter, "affiliate" means an entity that effectively
controls or is controlled by an applicant for a deduction under this
chapter or is associated with an applicant for a deduction under
this chapter under common ownership or control, whether by
shareholdings or other means.
SECTION 58. IC 6-1.1-40-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 4. As used in this chapter, "new manufacturing equipment" means
any tangible personal property that an applicant for the deduction
under section 11 of this chapter:
(1) is installed installs in a district;
(2) is used uses in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or finishing of
other tangible personal property; and
(3) was acquired by its owner acquires in an arms length
transaction from an entity that is not an affiliate of the
applicant for use as described in subdivision (2); and
(4) was never before used by its owner for any purpose in Indiana
before the installation described in subdivision (1).
SECTION 59. IC 6-1.1-40-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 10. (a) Subject to
subsection (e), an owner of new manufacturing equipment or
inventory, or both, whose statement of benefits is approved is entitled
to a deduction from the assessed value of that equipment and inventory
for a period of ten (10) years. Except as provided in subsections (c) and
(d), and subject to subsection (e), for the first five (5) years, the
amount of the deduction for new manufacturing equipment that an
owner is entitled to for a particular year equals the assessed value of
the new manufacturing equipment. Subject to subsection (e), for the
sixth through the tenth year, the amount of the deduction equals the
product of:
(1) the assessed value of the new manufacturing equipment;
multiplied by
(2) the percentage prescribed in the following table:
YEAR OF DEDUCTION
PERCENTAGE
6th 100%
7th 95%
8th 80%
9th 65%
10th 50%
11th and thereafter 0%
(b) For the first year the amount of the deduction for inventory
equals the assessed value of the inventory. For the next nine (9) years,
the amount of the deduction equals:
(1) the assessed value of the inventory for that year; multiplied by
(2) the owner's export sales ratio for the previous year, as certified
by the department of state revenue under IC 6-3-2-13.
(c) A deduction under this section is not allowed in the first year the
deduction is claimed for new manufacturing equipment to the extent
that it would cause the assessed value of all of the personal property of
the owner in the taxing district in which the equipment is located to be
less than the assessed value of all of the personal property of the owner
in that taxing district in the immediately preceding year.
in subdivisions (1) and (2) to the taxing units entitled to notice
under section 2(e) of this chapter.
SECTION 64. IC 6-1.5-5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 6. (a) The Indiana
board shall conduct a hearing or cause a hearing to be conducted within
six (6) months after a petition in proper form is filed with the Indiana
board, excluding any time due to a delay reasonably caused by the
petitioner.
(b) The Indiana board shall make a final determination within the
later of forty-five (45) days after the hearing or the date set in an
extension order issued by the Indiana board. However, the Indiana
board may not extend the final determination date by more than one
hundred eighty (180) days.
(c) The failure of the Indiana board to conduct a hearing within
the period prescribed in this section does not constitute notice to
the person of an Indiana board final determination.
(c) The failure of (d) If the Indiana board fails to make a final
determination within the time allowed by this section shall be treated
as a final determination of after a hearing, the entity that initiated
the petition may:
(1) take no action and wait for the Indiana board to deny the
petition. make a final determination; or
(2) initiate a proceeding for judicial review by taking the
action required by IC 6-1.1-15-5(b) at any time after the
maximum time elapses.
(e) If:
(1) a judicial proceeding is initiated under subsection (d); and
(2) the Indiana board has not issued a determination;
the tax court shall determine the matter de novo.
SECTION 65. IC 8-1.5-5-32, AS ADDED BY SEA 71-2006,
SECTION 1, AND HEA 1212-2006, SECTION 1, IS AMENDED TO
READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 32. (a)
This section applies to excluded cities and towns in a county containing
a consolidated city.
(b) A municipality to which this section applies may withdraw from
the district established by the consolidated city if the municipal
legislative body adopts an ordinance withdrawing the municipality
from the district. The municipal legislative body shall, at least thirty
(30) days before the final vote on the ordinance, mail written notice of
the meeting to the following:
(1) All owners of lots and parcels within the municipality that are
subject to storm water user fees imposed in the district by the
department of public works of the consolidated city.
(2) The department of public works of the consolidated city.
(c) An ordinance described in subsection (b) takes effect sixty (60)
days after adoption by the municipal legislative body.
(d) In addition to the notice required by subsection (b), if a
municipal legislative body adopts an ordinance under subsection (b),
the municipal legislative body shall mail written notice of the
withdrawal from the district to the department of public works of the
consolidated city not more than thirty (30) days after the ordinance
becomes effective.
(e) If on the date of a municipality's withdrawal from the district
there are bonds outstanding that have been issued by the board of
public works of the consolidated city, the municipality is liable for and
shall pay that indebtedness in the same ratio as the assessed valuation
of the property in the municipality bears to the assessed valuation of all
property included in the district on the date one (1) day before the date
of withdrawal, as shown in the most recent assessment for taxation
before the date of withdrawal.
(f) If a municipal legislative body adopts an ordinance under
subsection (b), the district municipality is entitled to receive the
following:
(1) An annual lump sum payment equal to the total amount of
property taxes paid and allocated to the district's flood debt
service fund from all property taxpayers within the municipality,
to the extent the property taxes are not necessary to pay the
indebtedness owed by the municipality under subsection (e). A
payment under this subdivision is required for property taxes
assessed beginning on the January 1 preceding the effective date
of the municipality's withdrawal from the district.
(2) The total amount of storm water user fees collected by the
department of public works of the consolidated city from the lots
and parcels in the municipality beginning on the January 1
preceding the effective date of the municipality's withdrawal from
the district.
(g) Payments received under subsection (f):
(1) shall be deposited by the municipality in a dedicated fund; and
(2) may be used by the municipality only for purposes of storm
water management in the municipality and may not be diverted,
directly or indirectly, in any manner to any use other than the
purposes of storm water management in the municipality.
revenues in an amount equal to the county hospital's qualified
expenses in the ensuing year, as estimated in the governing
body's budget request under section 2 of this chapter.
Sec. 5. Property taxes imposed under this chapter are subject to
the county's levy limitations imposed under IC 6-1.1-18.5-3.
Sec. 6. The amount levied under this chapter is in addition to
any other amount levied for a county hospital.
Sec. 7. An amount levied under this chapter:
(1) must be appropriated as other county funds are
appropriated; and
(2) may be used only for qualified expenses.
SECTION 68. IC 20-44-3-2, AS ADDED BY HEA 1134-2006,
SECTION 167, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 2. As used in this chapter, "levy
excess" means that part of the property tax levy actually collected by
a school corporation for taxes first due and payable during a particular
calendar year that exceeds the school corporation's total levy, as
approved by the department of local government finance under
IC 6-1.1-17, for those property taxes. The term does not include
delinquent ad valorem property taxes collected during a particular
year that were assessed for an assessment date that precedes the
assessment date for the current year in which the ad valorem
property taxes are collected.
SECTION 69. IC 20-46-6-5, AS ADDED BY HEA 1134-2006,
SECTION 169, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006] Sec. 5. Subject to IC 6-1.1-18-13
IC 6-1.1-18-12 and IC 6-1.1-18.5-9.9, to provide for the fund, the
governing body may, for each year in which a plan is in effect, impose
a property tax rate that does not exceed forty-one and sixty-seven
hundredths cents ($0.4167) on each one hundred dollars ($100) of
assessed valuation of the school corporation. The actual rate imposed
by the governing body must be advertised in the same manner as other
property tax rates.
SECTION 70. IC 33-26-7-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 1. The office of
Subject to IC 4-6-2-11, IC 4-6-5-3, and the written approval of the
attorney general, shall represent a township assessor, a county assessor,
a county auditor, a member of a county property tax assessment board
of appeals, or a county property tax assessment board of appeals that:
(1) made an original determination that is the subject of a judicial
proceeding in the tax court; and
payment, at a time or times (which may be upon demand) and at
a place or places;
(9) be subject to terms of redemption (with or without premium);
(10) contain or be subject to any covenants, conditions, and
provisions; and
(11) have any other characteristics;
that the commission considers reasonable and appropriate.
(d) Bonds, notes, or warrants issued under this section are not an
indebtedness of the unit or taxing district within the meaning of any
constitutional or statutory limitation of indebtedness. The bonds, notes,
or warrants are not payable from or secured by a levy of taxes, but are
payable only from and secured only by income, funds, and properties
of the project becoming available to the redevelopment commission
under this chapter, as the commission specifies in the resolution
authorizing their issuance.
(e) Bonds, notes, or warrants issued under this section are exempt
from taxation for all purposes.
(f) Bonds, notes, or warrants issued under this section must be
executed by the appropriate officers of the unit in the name of the "City
(or Town or County) of ____________, Department of
Redevelopment", and must be attested by the appropriate officers of the
unit.
(g) Following the adoption of the resolution authorizing the issuance
of bonds, notes, or warrants under this section, the redevelopment
commission shall certify a copy of that resolution to the officers of the
unit who have duties with respect to bonds, notes, or warrants of the
unit. At the proper time, the commission shall deliver to the officers the
unexecuted bonds, notes, or warrants prepared for execution in
accordance with the resolution.
(h) All bonds, notes, or warrants issued under this section shall be
sold by the officers of the unit who have duties with respect to the sale
of bonds, notes, or warrants of the unit. If an officer whose signature
appears on any bonds, notes, or warrants issued under this section
leaves office before their delivery, the signature remains valid and
sufficient for all purposes as if he the officer had remained in office
until the delivery.
(i) If at any time during the life of a loan contract or agreement
under this section the redevelopment commission can obtain loans for
the purposes of this section from sources other than the federal
government at interest rates not less favorable than provided in the loan
contract or agreement, and if the loan contract or agreement so permits,
the commission may do so and may pledge the loan contract and any
rights under that contract as security for the repayment of the loans
obtained from other sources. Any loan under this subsection may be
evidenced by bonds, notes, or warrants issued and secured in the same
manner as provided in this section for loans from the federal
government. These bonds, notes, or warrants may be sold at either
public or private sale, as the commission considers appropriate.
(j) Money obtained from the federal government or from other
sources under this section, and money that is required by a contract or
agreement under this section to be used for project expenditure
purposes, repayment of survey and planning advances, or repayment of
temporary or definitive loans, may be expended by the redevelopment
commission without regard to any law pertaining to the making and
approval of budgets, appropriations, and expenditures.
(k) Bonds, notes, or warrants issued under this section are declared
to be issued for an essential public and governmental purpose.
SECTION 72. IC 36-7-14-39, AS AMENDED BY P.L.216-2005,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 39. (a) As used in this
section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a declaratory resolution adopted
under section 15 of this chapter refers for purposes of distribution and
allocation of property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
may include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision that may not be more than thirty (30) years after
the date on which the allocation provision is established. However, if
bonds or other obligations that were scheduled when issued to mature
before the specified expiration date and that are payable only from
allocated tax proceeds with respect to the allocation area remain
outstanding as of the expiration date, the allocation provision does not
expire until all of the bonds or other obligations are no longer
outstanding. The allocation provision may apply to all or part of the
redevelopment project area. The allocation provision must require that
any property taxes subsequently levied by or for the benefit of any
public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into an allocation fund for that allocation area that may be used by
the redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements in or serving that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) in or serving that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in or serving that allocation area under any
lease entered into under IC 36-1-10.
(I) Pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. The amount sufficient for purposes specified in subsection (b)(2)
for the year shall be determined based on the pro rata portion of such
current property tax proceeds from the part of the enterprise zone that
is within the allocation area as compared to all such current property
tax proceeds derived from the allocation area. A unit that has no
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
in the fund derived from property tax proceeds in excess of those
described in subsection (b)(1) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund
(based on the recommendations of the urban enterprise association) for
programs in job training, job enrichment, and basic skill development
that are designed to benefit residents and employers in the enterprise
zone or other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. Those
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. After each annual adjustment under IC 6-1.1-4-4.5, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the
redevelopment district under this section. However, the adjustment
adjustments under this subsection may not include the effect of
property tax abatements under IC 6-1.1-12.1, and the adjustment these
adjustments may not produce less property tax proceeds allocable to
the redevelopment district under subsection (b)(2) than would
otherwise have been received if the general reassessment or annual
adjustment had not occurred. The department of local government
finance may prescribe procedures for county and township officials to
follow to assist the department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
SECTION 73. IC 36-7-14-45 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 45. (a) The commission may
establish a program for housing by resolution. The program, which
may include any relevant elements the commission considers
appropriate, may be adopted as part of a redevelopment plan or
amendment to a redevelopment plan, and must establish an
allocation area for purposes of sections 39 and 48 of this chapter
for the accomplishment of the program. The program must be
approved by the municipal legislative body or county executive as
specified in section 17 of this chapter.
(b) The notice and hearing provisions of sections 17 and 17.5 of
this chapter, including notice under section 17(c) of this chapter to
a taxing unit that is wholly or partly located within an allocation
area, apply to the resolution adopted under subsection (a). Judicial
review of the resolution may be made under section 18 of this
chapter.
(c) Before formal submission of any housing program to the
commission, the department of redevelopment:
(1) shall consult with persons interested in or affected by the
proposed program;
(2) shall provide the affected neighborhood associations,
residents, and township assessors with an adequate
opportunity to participate in an advisory role in planning,
implementing, and evaluating the proposed program; and
(3) shall hold public meetings in the affected neighborhood to
obtain the views of neighborhood associations and residents.
SECTION 74. IC 36-7-14-46 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 46. (a) Except as provided in
subsection (b), all the rights, powers, privileges, and immunities
that may be exercised by the commission in blighted, deteriorated,
or deteriorating areas may be exercised by the commission in
implementing its program for housing, including the following:
(1) The special tax levied in accordance with section 27 of this
chapter may be used to accomplish the housing program.
(2) Bonds may be issued under this chapter to accomplish the
housing program, but only one (1) issue of bonds may be
issued and payable from increments in any allocation area
except for refunding bonds or bonds issued in an amount
necessary to complete a housing program for which bonds
were previously issued.
(3) Leases may be entered into under this chapter to
accomplish the housing program.
(4) The tax exemptions set forth in section 37 of this chapter
are applicable.
(5) Property taxes may be allocated under section 39 of this
chapter.
(b) A commission may not exercise the power of eminent
domain in implementing its program for housing.
SECTION 75. IC 36-7-14-47 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 47. The commission must make
the following findings in the resolution adopting a housing
program under section 45 of this chapter:
(1) Not more than twenty-five (25) acres of the area included
in the allocation area has been annexed during the preceding
five (5) years.
(2) No area within the allocation area has been annexed
within the preceding five (5) years over a remonstrance of a
majority of the owners of land within the annexed area.
(3) The program cannot be accomplished by regulatory
processes or by the ordinary operation of private enterprise
because of:
(A) the lack of public improvements;
(B) the existence of improvements or conditions that lower
the value of the land below that of nearby land; or
(C) other similar conditions.
(4) The public health and welfare will be benefited by
accomplishment of the program.
(5) The accomplishment of the program will be of public
utility and benefit as measured by:
(A) the provision of adequate housing for low and
moderate income persons;
(B) an increase in the property tax base; or
(C) other similar public benefits.
(6) At least one-third (1/3) of the parcels in the allocation area
established by the program are vacant.
(7) At least seventy-five percent (75%) of the allocation area
is used for residential purposes or is planned to be used for
residential purposes.
(8) At least one-third (1/3) of the residential units in the
allocation area were constructed before 1941.
(9) At least one-third (1/3) of the parcels in the allocation area
have at least one (1) of the following characteristics:
(A) The dwelling unit on the parcel is not permanently
occupied.
(B) The parcel is the subject of a governmental order,
issued under a statute or an ordinance, requiring the
correction of a housing code violation or unsafe building
condition.
(C) Two (2) or more property tax payments on the parcel
are delinquent.
(D) The parcel is owned by local, state, or federal
government.
(10) The total area within the county or municipality that is
included in any allocation area established for a housing
program under section 45 of this chapter does not exceed one
hundred fifty (150) acres.
SECTION 76. IC 36-7-14-48 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2006]: Sec. 48. (a) Notwithstanding section
39(a) of this chapter, with respect to the allocation and distribution
of property taxes for the accomplishment of a program adopted
under section 45 of this chapter, "base assessed value" means the
net assessed value of all of the property, other than personal
property, as finally determined for the assessment date
immediately preceding the effective date of the allocation
provision, as adjusted under section 39(h) of this chapter.
(b) The allocation fund established under section 39(b) of this
chapter for the allocation area for a program adopted under
section 45 of this chapter may be used only for purposes related to
the accomplishment of the program, including the following:
(1) The construction, rehabilitation, or repair of residential
units within the allocation area.
(2) The construction, reconstruction, or repair of any
infrastructure (including streets, sidewalks, and sewers)
within or serving the allocation area.
(3) The acquisition of real property and interests in real
property within the allocation area.
(4) The demolition of real property within the allocation area.
(5) The provision of financial assistance to enable individuals
and families to purchase or lease residential units within the
allocation area. However, financial assistance may be
provided only to those individuals and families whose income
is at or below the county's median income for individuals and
families, respectively.
(6) The provision of financial assistance to neighborhood
development corporations to permit them to provide financial
assistance for the purposes described in subdivision (5).
(7) Providing each taxpayer in the allocation area a credit for
property tax replacement as determined under subsections (c)
and (d). However, the commission may provide this credit
only if the municipal legislative body (in the case of a
redevelopment commission established by a municipality) or
the county executive (in the case of a redevelopment
commission established by a county) establishes the credit by
ordinance adopted in the year before the year in which the
credit is provided.
(c) The maximum credit that may be provided under subsection
(b)(7) to a taxpayer in a taxing district that contains all or part of
an allocation area established for a program adopted under section
45 of this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts
described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
through IC 6-1.1-21-2(g)(5) that is attributable to the taxing
district.
STEP TWO: Divide:
chapter for property that is residential in nature.
(2) Reimburse the county or municipality for expenditures
made by the county or municipality in order to accomplish the
housing program in that allocation area.
The allocation fund may not be used for operating expenses of the
commission.
(f) Notwithstanding section 39(b) of this chapter, the
commission shall, relative to the allocation fund established under
section 39(b) of this chapter for an allocation area for a program
adopted under section 45 of this chapter, do the following before
July 15 of each year:
(1) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary:
(A) to make, when due, principal and interest payments on
bonds described in section 39(b)(2) of this chapter;
(B) to pay the amount necessary for other purposes
described in section 39(b)(2) of this chapter; and
(C) to reimburse the county or municipality for anticipated
expenditures described in subsection (e)(2).
(2) Notify the county auditor of the amount, if any, of excess
property taxes that the commission has determined may be
paid to the respective taxing units in the manner prescribed
in section 39(b)(1) of this chapter.
(g) This subsection applies to an allocation area only to the
extent that the net assessed value of property that is assessed as
residential property under the rules of the department of local
government finance is not included in the base assessed value. If
property tax installments with respect to a homestead (as defined
in IC 6-1.1-20.9-1) are due in installments established by the
department of local government finance under IC 6-1.1-22-9.5,
each taxpayer subject to those installments in an allocation area is
entitled to an additional credit under subsection (d) for the taxes
(as defined in IC 6-1.1-21-2) due in installments. The credit shall be
applied in the same proportion to each installment of taxes (as
defined in IC 6-1.1-21-2).
SECTION 77. IC 36-7-15.1-26, AS AMENDED BY P.L.216-2005,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 26. (a) As used in this
section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under section
8 of this chapter refers for purposes of distribution and allocation of
property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision after June 30, 1995,
must specify an expiration date for the allocation provision that may
not be more than thirty (30) years after the date on which the allocation
provision is established. However, if bonds or other obligations that
were scheduled when issued to mature before the specified expiration
date and that are payable only from allocated tax proceeds with respect
to the allocation area remain outstanding as of the expiration date, the
allocation provision does not expire until all of the bonds or other
obligations are no longer outstanding. The allocation provision may
apply to all or part of the redevelopment project area. The allocation
provision must require that any property taxes subsequently levied by
or for the benefit of any public body entitled to a distribution of
property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements in that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) in that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in that allocation area under any lease entered
into under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(3) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the base assessed
value when multiplied by the estimated tax rate of the
allocated area will exceed the amount of assessed value
needed to provide the property taxes necessary to make, when
due, principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2) and subsection (g).
(B) Notify the county auditor of the amount, if any, of excess
assessed value that the commission has determined may be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
The commission may not authorize an allocation to the respective
taxing units under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
enterprise zone.
(2) To make loans and grants for the purpose of stimulating
business activity in the enterprise zone or providing employment
for enterprise zone residents in the enterprise zone. These loans
and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise
zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in
subsection (b)(2). However, where reference is made in
subsection (b)(2) to the allocation area, the reference refers for
purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment under IC 6-1.1-4, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the general reassessment on the
property tax proceeds allocated to the redevelopment district under this
section. After each annual adjustment under IC 6-1.1-4-4.5, the
department of local government finance shall adjust the base
assessed value to neutralize any effect of the annual adjustment on
the property tax proceeds allocated to the redevelopment district
under this section. However, the adjustment adjustments under this
subsection may not include the effect of property tax abatements under
IC 6-1.1-12.1, and the adjustment these adjustments may not produce
less property tax proceeds allocable to the redevelopment district under
subsection (b)(2) than would otherwise have been received if the
general reassessment or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
specified expiration date and that are payable only from allocated tax
proceeds with respect to the allocation area remain outstanding as of
the expiration date, the allocation provision does not expire until all of
the bonds or other obligations are no longer outstanding. The allocation
provision may apply to all or part of the redevelopment project area.
The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the redevelopment district and, when collected, paid
into a special fund for that allocation area that may be used by the
redevelopment district only to do one (1) or more of the
following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded city to pay for local public improvements in that
allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 46 of this
chapter.
(G) Reimburse the excluded city for expenditures for local
public improvements (which include buildings, park facilities,
and other items set forth in section 45 of this chapter) in that
allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility in that allocation area under any lease entered
into under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
The special fund may not be used for operating expenses of the
commission.
(3) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of assessed value needed to provide the property
taxes necessary to make, when due, principal and interest
payments on bonds described in subdivision (2) plus the
amount necessary for other purposes described in subdivision
(2) and subsection (g).
(B) Notify the county auditor of the amount, if any, of excess
assessed value that the commission has determined may be
allocated to the respective taxing units in the manner
prescribed in subdivision (1).
The commission may not authorize an allocation to the respective
taxing units under this subdivision if to do so would endanger the
interests of the holders of bonds described in subdivision (2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located, is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. A unit that has no obligations, bonds, or leases payable from
allocated tax proceeds under subsection (b)(2) shall establish a special
zone fund and deposit all the property tax proceeds in excess of those
described in subsection (b)(1) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) from
property located in the enterprise zone. The unit that creates the special
zone fund shall use the fund, based on the recommendations of the
urban enterprise association, for one (1) or more of the following
purposes:
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
SECTION 79. IC 36-7-30-25, AS AMENDED BY P.L.4-2005,
SECTION 141, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]: Sec. 25. (a) The
following definitions apply throughout this section:
(1) "Allocation area" means that part of a military base reuse area
to which an allocation provision of a declaratory resolution
adopted under section 10 of this chapter refers for purposes of
distribution and allocation of property taxes.
(2) "Base assessed value" means:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment thereto, as finally determined for
any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
Clause (C) applies only to allocation areas established in a
military reuse area after June 30, 1997, and to the part of an
allocation area that was established before June 30, 1997, and that
is added to an existing allocation area after June 30, 1997.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 10 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 13 of this chapter. The allocation
provision may apply to all or part of the military base reuse area. The
allocation provision must require that any property taxes subsequently
levied by or for the benefit of any public body entitled to a distribution
of property taxes on taxable property in the allocation area be allocated
and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the military base reuse district and, when collected,
paid into an allocation fund for that allocation area that may be
used by the military base reuse district and only to do one (1) or
more of the following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the military base reuse district
or any other entity for the purpose of financing or refinancing
military base reuse activities in or directly serving or
benefiting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the reuse
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefiting that allocation area.
(E) Pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the reuse
authority. This credit equals the amount determined under the
following STEPS for each taxpayer in a taxing district (as
defined in IC 6-1.1-1-20) that contains all or part of the
allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4 that is attributable
to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
section.
If not all the taxpayers in an allocation area receive the credit
in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
27 of this chapter in the same year.
(F) Pay expenses incurred by the reuse authority for local
public improvements or structures that were in the allocation
area or directly serving or benefiting the allocation area.
(G) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made not more than
three (3) years after the date on which the investments that are
the basis for the increment financing are made.
The allocation fund may not be used for operating expenses of the
reuse authority.
(3) Except as provided in subsection (g), before July 15 of each
year the reuse authority shall do the following:
(A) Determine the amount, if any, by which property taxes
payable to the allocation fund in the following year will exceed
the amount of property taxes necessary to make, when due,
principal and interest payments on bonds described in
subdivision (2) plus the amount necessary for other purposes
described in subdivision (2).
(B) Notify the county auditor of the amount, if any, of the
amount of excess property taxes that the reuse authority has
determined may be paid to the respective taxing units in the
manner prescribed in subdivision (1). The reuse authority may
not authorize a payment to the respective taxing units under
this subdivision if to do so would endanger the interest of the
holders of bonds described in subdivision (2) or lessors under
section 19 of this chapter. Property taxes received by a taxing
unit under this subdivision are eligible for the property tax
replacement credit provided under IC 6-1.1-21.
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by a taxing unit after the effective date
of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the military base reuse district
under subsection (b)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the military base reuse district for payment as
set forth in subsection (b)(2).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the reuse authority, reassess the taxable property situated
upon or in or added to the allocation area, effective on the next
assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and the making of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish an allocation fund for the purposes
specified in subsection (b)(2) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) from property located in the enterprise zone that exceeds the
amount sufficient for the purposes specified in subsection (b)(2) for the
year. The amount sufficient for purposes specified in subsection (b)(2)
for the year shall be determined based on the pro rata part of such
current property tax proceeds from the part of the enterprise zone that
is within the allocation area as compared to all such current property
tax proceeds derived from the allocation area. A unit that does not have
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(2) shall establish a special zone fund and deposit all the
property tax proceeds in excess of those described in subsection (b)(1)
that are derived from property in the enterprise zone in the fund. The
unit that creates the special zone fund shall use the fund (based on the
recommendations of the urban enterprise association) for programs in
job training, job enrichment, and basic skill development that are
designed to benefit residents and employers in the enterprise zone or
other purposes specified in subsection (b)(2), except that where
reference is made in subsection (b)(2) to allocation area it shall refer
for purposes of payments from the special zone fund only to that part
of the allocation area that is also located in the enterprise zone. The
programs shall reserve at least one-half (1/2) of their enrollment in any
session for residents of the enterprise zone.
(h) After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base assessed
value one (1) time to neutralize any effect of the general reassessment
on the property tax proceeds allocated to the military base reuse district
under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the military
base reuse district under this section. However, the adjustment
adjustments under this subsection may not include the effect of
property tax abatements under IC 6-1.1-12.1, and the adjustment these
adjustments may not produce less property tax proceeds allocable to
the military base reuse district under subsection (b)(2) than would
otherwise have been received if the general reassessment or annual
adjustment had not occurred. The department of local government
finance may prescribe procedures for county and township officials to
follow to assist the department in making the adjustments.
SECTION 80. IC 36-7-30.5-30, AS ADDED BY P.L.203-2005,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2006 (RETROACTIVE)]: Sec. 30. (a) The following
definitions apply throughout this section:
(1) "Allocation area" means that part of a military base
development area to which an allocation provision of a
declaratory resolution adopted under section 16 of this chapter
refers for purposes of distribution and allocation of property taxes.
(2) "Base assessed value" means:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
adoption date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C), the
net assessed value of any and all parcels or classes of parcels
identified as part of the base assessed value in the declaratory
resolution or an amendment to the declaratory resolution, as
finally determined for any subsequent assessment date; plus
(C) to the extent that it is not included in clause (A) or (B), the
net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) "Property taxes" means taxes imposed under IC 6-1.1 on real
property.
(b) A declaratory resolution adopted under section 16 of this chapter
before the date set forth in IC 36-7-14-39(b) pertaining to declaratory
resolutions adopted under IC 36-7-14-15 may include a provision with
respect to the allocation and distribution of property taxes for the
purposes and in the manner provided in this section. A declaratory
resolution previously adopted may include an allocation provision by
the amendment of that declaratory resolution in accordance with the
procedures set forth in section 18 of this chapter. The allocation
provision may apply to all or part of the military base development
area. The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) shall be
allocated to the development authority and, when collected, paid
into an allocation fund for that allocation area that may be used by
the development authority and only to do one (1) or more of the
following:
(A) Pay the principal of and interest and redemption premium
on any obligations incurred by the development authority or
any other entity for the purpose of financing or refinancing
military base development or reuse activities in or directly
serving or benefitting that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area or from other revenues of the development
authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body for expenditures
made for local public improvements (or structures) in or
directly serving or benefitting that allocation area.
(E) Pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
development authority. This credit equals the amount
determined under the following STEPS for each taxpayer in a
taxing district (as defined in IC 6-1.1-1-20) that contains all or
part of the allocation area:
adjustment adjustments under this subsection may not include the
effect of property tax abatements under IC 6-1.1-12.1, and the
adjustment these adjustments may not produce less property tax
proceeds allocable to the military base development district under
subsection (b)(2) than would otherwise have been received if the
general reassessment or annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
SECTION 81. IC 36-7-32-19 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2006 (RETROACTIVE)]:
Sec. 19. (a) The state board of accounts and department of local
government finance shall make the rules and prescribe the forms and
procedures that the state board of accounts and department of local
government finance consider appropriate for the implementation of an
allocation area under this chapter.
(b) After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base assessed
value one (1) time to neutralize any effect of the general reassessment
on the property tax proceeds allocated to the certified technology park
fund under section 17 of this chapter. After each annual adjustment
under IC 6-1.1-4-4.5, the department of local government finance
shall adjust the base assessed value to neutralize any effect of the
annual adjustment on the property tax proceeds allocated to the
certified technology park fund under section 17 of this chapter.
SECTION 82. [EFFECTIVE JANUARY 1, 2006
(RETROACTIVE)]: IC 6-1.1-4-12, as amended by this act, applies
only to assessment dates after December 31, 2005.
SECTION 83. [EFFECTIVE UPON PASSAGE] (a) The definitions
in IC 6-1.1-12.1 apply throughout this SECTION.
(b) As used in this SECTION, "department" refers to the
department of local government finance.
(c) As used in this SECTION, "taxpayer" means a person:
(1) who operates a grey iron foundry located in Grant
County;
(2) who applied in 2001 for property tax deductions under
IC 6-1.1-12.1 for new manufacturing equipment located in an
economic revitalization area; and
(3) whose applications described in subdivision (2) were
denied.
(d) References to the Indiana Code in this SECTION refer to the
Indiana Code in effect on March 1, 2001, unless otherwise stated.
(e) Notwithstanding any other law, a taxpayer who complies
with the requirements of this SECTION is entitled to the property
tax deduction for new manufacturing equipment in the amounts
and for the number of years provided under IC 6-1.1-12.1-4.5, as
determined by the department under subsection (h).
(f) The taxpayer shall provide the department with copies of the
taxpayer's:
(1) statement of benefits; and
(2) applications for deductions from assessed value;
for new manufacturing equipment placed in service in an economic
revitalization area that the taxpayer filed in 2001.
(g) If there are any deficiencies in the taxpayer's filings
described in subsection (f), the department shall assist the taxpayer
in completing the information necessary to determine:
(1) the assessed value of the new manufacturing equipment;
and
(2) the number of years over which the taxpayer is entitled to
the deduction under this SECTION.
(h) The department shall determine:
(1) the amount of the assessed value of the new manufacturing
equipment;
(2) the number of years over which the taxpayer is entitled to
the deduction under this SECTION; and
(3) the percentages used to compute the taxpayer's
deductions;
in accordance with IC 6-1.1-12.1-4.5(d) and IC 6-1.1-12.1-4.5(e) as
if the taxpayer's applications for deductions had been approved in
2001.
(i) Notwithstanding IC 6-1.1-26 (as in effect on January 1, 2006),
when the department has completed the department's
determinations under subsection (h), the department shall issue an
order to the county auditor of the county in which the economic
revitalization area is located:
(1) describing the department's determinations under
subsection (h); and
(2) requiring the county auditor to accept the taxpayer's
refund claims as if the taxpayer's deduction applications had
been approved in 2001.
The department shall provide the taxpayer with a copy of the order
issued under this subsection.
refund must equal the amount of the claim allowed. Notwithstanding
IC 6-1.1-26-5, no interest is payable on the refund.
(f) This SECTION shall be liberally construed in favor of the
taxpayer to give effect to the purposes of this SECTION.
(f) (g) This SECTION expires December 31, 2007.
SECTION 86. [EFFECTIVE JANUARY 1, 2006
(RETROACTIVE)] (a) IC 6-1.1-12.1-1 and IC 6-1.1-40-4, both as
amended by this act, apply only to:
(1) new manufacturing equipment, new research and
development equipment, new logistical distribution
equipment, and new information technology equipment
installed and initially used in an economic revitalization area;
or
(2) new manufacturing equipment installed and initially used
in a maritime opportunity district;
after December 31, 2005.
(b) It is the intent of the general assembly that the amendment
of IC 6-1.1-12.1-1 and IC 6-1.1-40-4 by this act be interpreted to
expand the equipment that is eligible for a deduction under
IC 6-1.1-12.1 or IC 6-1.1-40 to include equipment that is ineligible
for a deduction under IC 6-1.1-12.1 or IC 6-1.1-40 solely because
the equipment was used in Indiana by a person other than a
deduction applicant (as defined in IC 6-1.1-12.1-1(15), as added by
this act) before being installed by the deduction applicant in an
economic revitalization area or a maritime opportunity district.
SECTION 87. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "eligible district" means a fire protection district
established under IC 36-8-11:
(1) that expanded its territory after 1998; and
(2) for which the quotient of:
(A) the taxable assessed value of all tangible property in
the district for the assessment date (as defined in
IC 6-1.1-1-2) in 2004; divided by
(B) subject to subsection (b), the taxable assessed value of
all tangible property in the district for the assessment date
(as defined in IC 6-1.1-1-2) in 1999;
is at least one and one-half (1.5).
(b) To account for the change in the definition of "assessed
value" reflected in IC 6-1.1-1-3(a)(1) and IC 6-1.1-1-3(a)(2), the
taxable assessed value to be used for purposes of subsection
(a)(2)(B) is the product of:
(1) the actual taxable assessed value; multiplied by
(2) three (3).
(c) An eligible district may, before September 20, 2006, appeal
to the department of local government finance for relief from the
levy limitations imposed by IC 6-1.1-18.5 for property taxes first
due and payable in 2007. In the appeal the district must:
(1) state that it will be unable to carry out the governmental
functions committed to it by law unless the appeal is
approved; and
(2) present evidence that it is an eligible district.
(d) The maximum increase in an eligible district's levy allowed
under this SECTION is four hundred twenty-five thousand dollars
($425,000).
(e) The department of local government finance shall process
the appeal in the same manner that the department processes
appeals under IC 6-1.1-18.5-12.
(f) For purposes of computing an eligible district's ad valorem
property tax levy for taxes first due and payable in 2008, the
district's maximum permissible ad valorem property tax levy for
property taxes first due and payable in 2007 under STEP ONE of
IC 6-1.1-18.5-3(a) or STEP ONE of IC 6-1.1-18.5-3(b) includes the
amount of any increase in the district's levy approved under this
SECTION for property taxes first due and payable in 2007.
(g) This SECTION expires January 1, 2009.
SECTION 88. [EFFECTIVE UPON PASSAGE] (a) This
SECTION applies to a taxpayer that:
(1) is an entity that was established for the purpose of
providing youths with the opportunity to play supervised and
organized baseball against other youths;
(2) before 2002 qualified as a nonprofit corporation under
Indiana law;
(3) during 2002, 2003, 2004, and 2005 did not maintain its
status as a nonprofit corporation under Indiana law due to the
failure to make certain filings;
(4) regained its status as a nonprofit corporation beginning in
2006; and
(5) was assessed by the department of state revenue for
delinquent state gross retail taxes owed for 2002, 2003, 2004,
and 2005 and has paid those assessments.
(b) A taxpayer described in subsection (a) is entitled to a refund
of the payments described in subsection (a)(5) to the extent that the
state gross retail taxes for which the assessments were made would
not have been owed if the taxpayer had maintained its status as a
nonprofit corporation during the years for which the assessments
were made.
(c) A taxpayer that is entitled to a refund under this SECTION
shall claim the refund under IC 6-8.1-9 in the manner prescribed
by the department of state revenue.
(d) This SECTION expires July 1, 2008.
SECTION 89. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "board" refers to the county property tax assessment
board of appeals.
(b) This SECTION applies to an organization that:
(1) is located in a county containing a consolidated city;
(2) is dedicated to nurturing and celebration of the arts and
culture from an African-American perspective and provides
a forum for arts and cultural programming directed toward
cross-cultural appreciation;
(3) filed an application under IC 6-1.1-11 for exemption from
property taxes on the organization's property first due and
payable in 2005, which was denied by the board because the
organization failed to attend the board's hearing on the
exemption application; and
(4) filed an application under IC 6-1.1-11 for exemption from
property taxes on the organization's property first due and
payable in 2006, which was approved by the board.
(c) An organization described in subsection (b) is entitled to
exemption from property taxes on the organization's property first
due and payable in 2005 in the same percentage approved by the
board with respect to the organization's exemption application
described in subsection (b)(4).
(d) The organization entitled to an exemption under subsection
(c) may file a claim under IC 6-1.1-26-1 before July 1, 2006, with
the county auditor for a refund for any payment of property taxes
first due and payable in 2005, including any paid interest and
penalties, with respect to the exempt property.
(e) Upon receiving a claim for a refund filed under subsection
(d), the county auditor shall determine whether the claim is
correct. If the county auditor determines that the claim is correct,
the auditor shall, without an appropriation being required, issue a
warrant to the claimant payable from the county general fund for
the amount of the refund due the claimant. No interest is payable
on the refund.
(f) This SECTION expires January 1, 2007.
SECTION 90. [EFFECTIVE JANUARY 1, 2005
(RETROACTIVE)] (a) This SECTION applies:
(1) to an assessment date occurring after December 31, 2004,
and before January 1, 2006; and
(2) for property taxes first due and payable after December
31, 2005, and before January 1, 2007.
(b) Notwithstanding any other law requiring a property tax
exemption to be claimed on or in an application accompanying a
personal property tax return, a claim or an application that was
filed on or with a personal property tax return not more than
thirty (30) days after the filing date for the personal property tax
return, regardless of whether an extension of the filing date was
granted under IC 6-1.1-3-7, is considered to have been timely filed.
(c) A claim or an application filed in the manner described in
subsection (b) is subject to all other requirements of IC 6-1.1-11 or
any other statute requiring the claim or application to be filed on
or with a personal property tax return.
(d) A county auditor shall grant an exemption claimed on or
filed with a personal property tax return filed in the time permitted
under subsection (b) upon the county auditor's determination that:
(1) the taxpayer's claim or application satisfies all other
applicable requirements; and
(2) the taxpayer's property is otherwise eligible for the
claimed exemption.
An exemption granted under this subsection shall be made in the
manner prescribed by subsection (e).
(e) A county auditor shall apply an exemption granted under
this SECTION by:
(1) adjusting the second installment of the taxpayer's property
taxes that are first due and payable in 2006; and
(2) if necessary, refunding any property taxes paid in the
taxpayer's first installment of property taxes in 2006 that are
attributable to the exempt property.
A taxpayer is not required to apply for any refund due under this
SECTION. The auditor shall, without an appropriation being
required, issue a warrant to the taxpayer payable from the county
general fund for the amount of the refund, if any, due the taxpayer.
No interest is payable on the refund.
(f) This SECTION expires January 1, 2007.
permissible levies under that chapter for property taxes first
due and payable after 2007 to effect for those years the type
of adjustment that results for property taxes first due and
payable in 2007 from the amendment by this act of the
definition of "maximum permissible ad valorem property tax
levy for the preceding calendar year" in IC 6-1.1-18.5-1; and
(2) report its recommendation under subdivision (1) before
November 1, 2006, to the legislative council in an electronic
format under IC 5-14-6.
(b) This SECTION expires January 1, 2007.
SECTION 96. [EFFECTIVE UPON PASSAGE] (a) The
department of local government finance may adopt temporary
rules in the manner provided for the adoption of emergency rules
under IC 4-22-2-37.1 to implement IC 6-1.1-12.4, as added by this
act. A temporary rule adopted under this SECTION expires on the
earliest of the following:
(1) The date that the department of local government finance
adopts another temporary rule under this SECTION that
repeals, amends, or supersedes the previously adopted
temporary rule.
(2) The date that the department of local government finance
adopts a permanent rule under IC 4-22-2 that repeals,
amends, or supersedes the previously adopted temporary rule.
(3) The date specified in the temporary rule.
(4) July 1, 2007.
(b) This SECTION expires July 1, 2007.
SECTION 97. [EFFECTIVE UPON PASSAGE] The following, all
as added or amended by this act, apply only to property taxes first
due and payable after December 31, 2006:
(1) IC 6-1.1-8-28.
(2) IC 6-1.1-8-29.
(3) IC 6-1.1-8-30.
(4) IC 6-1.1-11-3.
(5) IC 6-1.1-12-2.
(6) IC 6-1.1-12-4.
(7) IC 6-1.1-12-10.1.
(8) IC 6-1.1-12-12.
(9) IC 6-1.1-12-15.
(10) IC 6-1.1-12-17.
(11) IC 6-1.1-12-17.5.
(12) IC 6-1.1-12-17.8.
(13) IC 6-1.1-12-20.
(14) IC 6-1.1-12-24.
(15) IC 6-1.1-12-30.
(16) IC 6-1.1-12-35.5.
(17) IC 6-1.1-12-38.
(18) IC 6-1.1-12.1-4.5.
(19) IC 6-1.1-12.4-3.
(20) IC 6-1.1-18.5-1.
(21) IC 6-1.1-18.5-13.
(22) IC 6-1.1-20.9-3.
(23) IC 6-1.1-40-10.
(24) IC 6-1.1-45-9.
SECTION 98. [EFFECTIVE JANUARY 1, 2006
(RETROACTIVE)] IC 6-1.1-4-12, as amended by this act, applies
only to assessment dates after December 31, 2005.
SECTION 99. An emergency is declared for this act.
Date: