CHAPTER 13. INDUSTRIAL DEVELOPMENT
IC 36-7-13
Chapter 13. Industrial Development
IC 36-7-13-1
Application of chapter
Sec. 1. This chapter applies to all units except townships.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,P.L.310, SEC.75; P.L.262-1993, SEC.1.
IC 36-7-13-1.6
"District"
Sec. 1.6. As used in this chapter, "district" refers to a communityrevitalization enhancement district designated under section 10.5, 12,or 12.1 of this chapter.
As added by P.L.125-1998, SEC.4. Amended by P.L.174-2001,SEC.1; P.L.224-2003, SEC.232.
IC 36-7-13-2
Repealed
(Repealed by Acts 1981, P.L.310, SEC.94.)
IC 36-7-13-2.4
"Gross retail base period amount"
Sec. 2.4. Except as provided in section 10.7(c) of this chapter, asused in this chapter, "gross retail base period amount" means:
(1) the aggregate amount of state gross retail and use taxesremitted under IC 6-2.5 by the businesses operating in theterritory comprising a district during the full state fiscal yearthat precedes the date on which:
(A) an advisory commission on industrial developmentadopted a resolution designating the district, in the case of adistrict that is not described in section 12(c) of this chapter;or
(B) the legislative body of a county or municipality adoptsan ordinance designating a district under section 10.5 of thischapter;
(2) an amount equal to:
(A) the aggregate amount of state gross retail and use taxesremitted:
(i) under IC 6-2.5 by the businesses operating in theterritory comprising a district; and
(ii) during the month in which an advisory commission onindustrial development adopted a resolution designatingthe district; multiplied by
(B) twelve (12);
in the case of a district that is described in section 12(c) of thischapter; or
(3) an amount equal to the amount determined undersubdivision (1) or (2); plus:
(A) the aggregate amount of state gross retail and use taxes
remitted:
(i) under IC 6-2.5 by the businesses operating in theterritory added to the district; and
(ii) during the month in which a petition to modify thedistrict's boundaries is approved by the budget agencyunder section 12.5 of this chapter; multiplied by
(B) twelve (12);
in the case of a district modified under section 12.5 of thischapter.
As added by P.L.125-1998, SEC.5. Amended by P.L.138-1999,SEC.1; P.L.174-2001, SEC.2; P.L.178-2002, SEC.116; P.L.81-2004,SEC.31 and P.L.90-2004, SEC.4.
IC 36-7-13-2.6
"Gross retail incremental amount"
Sec. 2.6. (a) Except as provided in subsection (b), as used in thischapter, "gross retail incremental amount" means the remainder of:
(1) the aggregate amount of state gross retail and use taxes thatare remitted under IC 6-2.5 by businesses operating in a districtduring a state fiscal year; minus
(2) the gross retail base period amount;
as determined by the department of state revenue under section 14 ofthis chapter.
(b) For purposes of a district designated under section 12.1 of thischapter, "gross retail incremental amount" means seventy-fivepercent (75%) of the amount described in subsection (a).
As added by P.L.125-1998, SEC.6. Amended by P.L.224-2003,SEC.233.
IC 36-7-13-3
"Improve"; authority to acquire, own, and deal in real property;expenditure of funds
Sec. 3. (a) For purposes of this chapter, "improve" means toconstruct, reconstruct, or repair public ways, sidewalks, sewers,drains, fences, or buildings, and to do all other things that wouldenhance the value of real property and make it more suitable toindustrial use.
(b) A unit may acquire by purchase, gift, or devise, and own,improve, maintain, sell, lease, convey, contract for, or otherwise dealin, real property for the development of industrial parks or industrialsites.
(c) A municipality may exercise powers granted by subsection (b)in areas within five (5) miles outside its corporate boundaries.
(d) When a district is designated under section 12(e) of thischapter, a unit may expend funds for the purposes set forth insubsections (a) and (b) for the development of or to enhance thevalue of real property used for retail purposes.
(e) When a district is designated under section 12.1 of thischapter, a unit may expend funds for the purposes set forth in section12.1(b) of this chapter for the development of or to enhance the value
of real property used for retail purposes and to make it more suitableto industrial or retail use.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,P.L.310, SEC.76; P.L.262-1993, SEC.2; P.L.113-2002, SEC.4;P.L.224-2003, SEC.234.
IC 36-7-13-3.2
"Income tax base period amount"
Sec. 3.2. Except as provided in section 10.7(d) of this chapter, asused in this chapter, "income tax base period amount" means:
(1) the aggregate amount of state and local income taxes paid byemployees employed in the territory comprising a district withrespect to wages and salary earned for work in the district forthe state fiscal year that precedes the date on which:
(A) an advisory commission on industrial developmentadopted a resolution designating the district, in the case of adistrict that is not described in section 12(c) of this chapter;or
(B) the legislative body of a county or municipality adoptsan ordinance designating a district under section 10.5 of thischapter;
(2) an amount equal to:
(A) the aggregate amount of state and local income taxespaid by employees employed in the territory comprising adistrict with respect to wages and salary earned for work inthe district during the month in which an advisorycommission on industrial development adopted a resolutiondesignating the district; multiplied by
(B) twelve (12);
in the case of a district that is described in section 12(c) of thischapter; or
(3) an amount equal to the amount determined undersubdivision (1) or (2); plus:
(A) the aggregate amount of state and local income taxespaid by employees employed in the territory added to thedistrict with respect to wages and salary earned for work inthe modified district during the month in which a petition tomodify the district's boundaries is approved by the budgetagency under section 12.5 of this chapter; multiplied by
(B) twelve (12);
in the case of a district modified under section 12.5 of thischapter.
As added by P.L.125-1998, SEC.7. Amended by P.L.138-1999,SEC.2; P.L.174-2001, SEC.3; P.L.178-2002, SEC.117; P.L.81-2004,SEC.32 and P.L.90-2004, SEC.5.
IC 36-7-13-3.4
"Income tax incremental amount"
Sec. 3.4. (a) Except as provided in subsection (b), as used in thischapter, "income tax incremental amount" means the remainder of: (1) the aggregate amount of state and local income taxes paid byemployees employed in a district with respect to wages earnedfor work in the district for a particular state fiscal year; minus
(2) the sum of the:
(A) income tax base period amount; and
(B) tax credits awarded by the economic development for agrowing economy board under IC 6-3.1-13 to businessesoperating in a district as the result of wages earned for workin the district for the state fiscal year;
as determined by the department of state revenue under section 14 ofthis chapter.
(b) For purposes of a district designated under section 12.1 of thischapter, "income tax incremental amount" means seventy-fivepercent (75%) of the amount described in subsection (a).
As added by P.L.125-1998, SEC.8. Amended by P.L.224-2003,SEC.235; P.L.199-2005, SEC.30.
IC 36-7-13-3.8
"State and local income taxes"
Sec. 3.8. As used in this chapter, "state and local income taxes"means taxes imposed under any of the following:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).
(2) IC 6-3.5-1.1 (county adjusted gross income tax).
(3) IC 6-3.5-6 (county option income tax).
(4) IC 6-3.5-7 (county economic development income tax).
As added by P.L.125-1998, SEC.9. Amended by P.L.192-2002(ss),SEC.174.
IC 36-7-13-4
Industrial development fund; tax levy
Sec. 4. (a) To provide money for the purposes set forth in section3 of this chapter, the unit shall create a special revolving fund to beknown as the industrial development fund, into which any availableand unappropriated money of the unit may be transferred by theunit's legislative body.
(b) The legislative body may also by ordinance levy a tax not toexceed one and sixty-seven hundredths cents ($0.0167) on each onehundred dollars ($100) of assessed value of all personal and realproperty within its jurisdiction. The proceeds of this tax shall bedeposited in the industrial development fund. The unit may collectthe tax as other municipal or county taxes are collected, or may setup a system for the collection and enforcement of the tax in the unit.Money in the industrial development fund may be used for anypurpose authorized by this chapter and may be pledged for thepayment of principal and interest on bonds or other obligationsissued under this chapter.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,P.L.310, SEC.77; P.L.262-1993, SEC.3; P.L.6-1997, SEC.208;P.L.125-1998, SEC.10; P.L.125-1998, SEC.11; P.L.203-2005,SEC.8.
IC 36-7-13-5
Advisory commission on industrial development; creation;membership; duties
Sec. 5. (a) In order to coordinate the efforts of the unit and anyprivate industrial development committee in the community, anadvisory commission on industrial development shall be appointedby the unit's executive.
(b) Except as provided in subsection (d), the commission shall becomposed of six (6) members, including at least one (1)representative of the unit's government, at least one (1) representativeof the local industrial development committee, at least one (1)representative of a local banking institution, at least one (1)representative of a local utility company, and at least one (1)representative of organized labor from the building trades. A memberof the commission may represent more than one (1) of theorganizations enumerated.
(c) The unit's legislative body shall request the commission'srecommendations. The legislative body may not conduct anybusiness requiring expenditures from the industrial development fundor make any sale or lease of property acquired by the unit under thischapter without the approval, in writing, of a majority of themembers of the commission.
(d) In addition to the members described in subsection (b), if theexecutive of a unit has submitted a petition to a commission undersection 10 of this chapter or if the legislative body of a county ormunicipality has adopted an ordinance designating a district undersection 10.5 of this chapter, the following persons are members ofthe commission:
(1) A member appointed by the governor.
(2) A member appointed by the lieutenant governor.
(3) A member appointed by the director of the department ofworkforce development.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,P.L.310, SEC.78; P.L.262-1993, SEC.4; P.L.1-1994, SEC.175;P.L.125-1998, SEC.12; P.L.174-2001, SEC.4.
IC 36-7-13-5.5
Sales or leases of property acquired for industrial development
Sec. 5.5. (a) This section does not apply to sales, leases, or otherdispositions of real property to other public agencies for publicpurposes.
(b) Before offering for sale or lease to the public any of the realproperty acquired under this chapter, the advisory commission onindustrial development shall have two (2) separate appraisals of thesale value, or rental value in case of a lease, made by independentappraisers. In making appraisals, the appraisers shall take intoconsideration the size, location, and physical condition of the parcelsand all other factors having a bearing on the value of the parcels. Theappraisals are solely for the information of the commission, the unit'sexecutive, and the unit's legislative body and are not open for public
inspection.
(c) The commission shall then prepare an offering sheet showingthe parcels to be offered and the offering prices, which may not beless than the average of the two (2) appraisals. Copies of the offeringsheets shall be furnished to prospective buyers on request. Maps andplats showing the size and location of all parcels to be offered shallalso be kept available for inspection at the office of the commissionor the unit's legislative body.
(d) A notice shall be published in accordance with IC 5-3-1. Thenotice must state that at a designated time the commission will openand consider written offers for the purchase or lease of the realproperty being offered. In giving the notice it is not necessary todescribe each parcel separately or to specify the exact terms ofdisposition, but the notice must:
(1) state the general location of the parcels;
(2) call attention generally to any limitations on the use to bemade of the real property offered; and
(3) state that a bid submitted by a trust (as defined inIC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(e) At the time fixed in the notice the commission shall open andconsider any offers received. All offers received shall be opened atpublic meetings of the commission and shall be kept open for publicinspection.
(f) The commission may make recommendations to the legislativebody for awards to the highest and best bidders. In determining thebest bids, the commission shall take into consideration the followingfactors:
(1) The size and character of the improvements proposed to bemade by the bidder on the real property.
(2) The bidder's plans and ability to improve the real propertywith reasonable promptness.
(3) Whether the real property when improved will be sold orrented.
(4) The bidder's proposed sale or rental prices.
(5) The bidder's compliance with subsection (d)(3).
(6) Any factors that will assure the commission that the sale orlease, if made, will further industrial development of the unitand best serve the interest of the community from the standpointof both human and economic welfare.
(g) The legislative body may contract with a bidder with regard tothe factors listed in subsection (f). The contract may provide for thedeposit of surety bonds, the making of good faith deposits, liquidateddamages, the right of repurchase, or other rights and remedies if thebidder fails to comply with the contract. A conveyance under thischapter may not be made until the agreed consideration has beenpaid.
(h) After the opening and consideration of the written offers filedin response to the notice, the legislative body may dispose of the
remainder of the available real property either at public sale or byprivate negotiation. For a period of ninety (90) days after the openingof the written offers, a sale or lease may not be made at a price orrental less than that shown on the offering sheet. After that period,the commission may adjust the offering prices in the manner itconsiders necessary to further industrial development.
As added by P.L.214-1986, SEC.2. Amended by P.L.336-1989(ss),SEC.50; P.L.262-1993, SEC.5.
IC 36-7-13-6
Industrial development fund; payments and deposits
Sec. 6. All costs for the acquisition and improvement of realproperty under this chapter shall be paid from the industrialdevelopment fund, and all proceeds from the sale of real propertyunder this chapter shall be deposited in that fund.
As added by Acts 1981, P.L.309, SEC.32.
IC 36-7-13-7
Title to real property
Sec. 7. The title to all real property acquired under this chaptershall be taken in the name of the unit and shall be conveyed bywarranty deed executed by the presiding officer of the legislativebody and attested to by the clerk of the unit.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,P.L.310, SEC.79; P.L.262-1993, SEC.6.
IC 36-7-13-8
Property acquired by or from unit; no tax exemption
Sec. 8. Property acquired by or from a unit under this chapter isnot exempt from any taxes.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,P.L.310, SEC.80; P.L.262-1993, SEC.7.
IC 36-7-13-9
Transfer of surplus funds; cessation of tax levy
Sec. 9. When the purposes for which the industrial developmentfund was established have been accomplished and all districtsdesignated by the unit have been terminated under section 19 of thischapter, the balance remaining in that fund shall be transferred to thegeneral fund of the unit and the authority for the levy of the taxprovided by section 4 of this chapter ceases.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,P.L.310, SEC.81; P.L.262-1993, SEC.8; P.L.125-1998, SEC.13.
IC 36-7-13-10
Application for designation of district
Sec. 10. (a) After approval by ordinance or resolution of thelegislative body of a municipality located in a county having apopulation of:
(1) more than one hundred twenty thousand (120,000) but less
than one hundred thirty thousand (130,000);
(2) more than two hundred thousand (200,000) but less thanthree hundred thousand (300,000); or
(3) more than three hundred thousand (300,000) but less thanfour hundred thousand (400,000);
the executive of the municipality may submit an application to anadvisory commission on industrial development requesting that anarea within the municipality be designated as a district.
(b) After approval by ordinance or resolution of the legislativebody of a county, the executive of the county may submit anapplication to an advisory commission on industrial developmentrequesting that an area within the county, but not within amunicipality, be designated as a district. However, in a countyhaving a population of more than one hundred eighteen thousand(118,000) but less than one hundred twenty thousand (120,000), thelegislative body of the county may request that an area within thecounty be designated as a district even if the area is within amunicipality.
As added by P.L.125-1998, SEC.14. Amended by P.L.138-1999,SEC.3; P.L.174-2001, SEC.5; P.L.170-2002, SEC.158.
IC 36-7-13-10.1
Application for designation of district in first or second class city
Sec. 10.1. (a) This section applies to a:
(1) first class city; or
(2) second class city.
(b) After approval by ordinance or resolution of the legislativebody of a city described in subsection (a), the executive of the citymay submit an application to an advisory commission on industrialdevelopment requesting that one (1) area within the city bedesignated as a district under section 12.1 of this chapter. However,the total number of districts designated in a city under this chapterafter June 30, 2003, (excluding districts designated before July 1,2003) may not exceed one (1).
As added by P.L.224-2003, SEC.236.
IC 36-7-13-10.5
Designation of districts in economically distressed counties;duration of district; notice publication; information to taxing units;budget agency review
Sec. 10.5. (a) This section applies only to a county that meets thefollowing conditions:
(1) The county's annual rate of unemployment has been abovethe average annual statewide rate of unemployment during atleast three (3) of the preceding five (5) years.
(2) The median income of the county has:
(A) declined over the preceding ten (10) years; or
(B) has grown at a lower rate than the average annualstatewide growth in median income during at least three (3)of the preceding five (5) years. (3) The population of the county (as determined by thelegislative body of the county) has declined over the precedingten (10) years.
(b) Except as provided in section 10.7 of this chapter, in a countydescribed in subsection (a), the legislative body of the county mayadopt an ordinance designating an unincorporated part orunincorporated parts of the county as a district, and the legislativebody of a municipality located within the county may adopt anordinance designating a part or parts of the municipality as a district,if the legislative body finds all of the following:
(1) The area to be designated as a district contains a building orbuildings that:
(A) have a total of at least fifty thousand (50,000) squarefeet of usable interior floor space; and
(B) are vacant or will become vacant due to the relocation ofthe employer or the cessation of operations on the site by theemployer.
(2) Significantly fewer persons are employed in the area to bedesignated as a district than were employed in the area duringthe year that is ten (10) years previous to the current year.
(3) There are significant obstacles to redevelopment in the areadue to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination or remediation.
(c) A legislative body adopting an ordinance under subsection (b)shall designate the duration of the district. However, a district mustterminate not later than fifteen (15) years after the income taxincremental amount or gross retail incremental amount is firstallocated to the district.
(d) Except as provided in section 10.7 of this chapter, uponadoption of an ordinance designating a district, the legislative bodyshall:
(1) publish notice of the adoption and substance of theresolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit in thecounty where the district is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the district,including the following:
(i) The estimated economic benefits and costs incurred bythe district, as measured by increased employment andanticipated growth of property assessed values.
(ii) The anticipated impact on tax revenues of each taxingunit.
The notice must state the general boundaries of the district.
(e) Upon completion of the actions required by subsection (d), the
legislative body shall submit the ordinance to the budget committeefor review and recommendation to the budget agency. If the budgetagency fails to take action on an ordinance designating a districtwithin one hundred twenty (120) days after the date that theordinance is submitted to the budget committee, the designation ofthe district by the ordinance is considered approved.
(f) Except as provided in section 10.7 of this chapter, whenconsidering the designation of a district by an ordinance adoptedunder this section, the budget committee and the budget agency mustmake the following findings before approving the designation of thedistrict:
(1) The area to be designated as a district meets the conditionsnecessary for the designation as a district.
(2) The designation of the district will benefit the people ofIndiana by protecting or increasing state and local tax bases andtax revenues for at least the duration of the district.
(g) Except as provided in section 10.7 of this chapter, the incometax incremental amount and the gross retail incremental amount maynot be allocated to the district until the designation of the district bythe local ordinance is approved under this section.
As added by P.L.174-2001, SEC.6. Amended by P.L.178-2002,SEC.118; P.L.81-2004, SEC.33 and P.L.90-2004, SEC.6;P.L.199-2005, SEC.31.
IC 36-7-13-10.7
Calculation of net increment for preceding fiscal year; funds andaccounts; limitation on amounts received by city
Sec. 10.7. (a) This section applies to a district designated undersection 10.5 of this chapter and approved by the budget agencybefore January 1, 2002, in a city having a population of more thanthirty-one thousand (31,000) but less than thirty-two thousand(32,000).
(b) An area is added to and becomes part of a district described insubsection (a) if the area consists of property that:
(1) is located in a city having a population of more thanthirty-one thousand (31,000) but less than thirty-two thousand(32,000); and
(2) experienced a loss of at least three hundred (300) jobsduring the calendar year ending December 31, 2001.
(c) After the addition of property to a district described insubsection (a) under this section, the gross retail base period amountdetermined under section 2.4 of this chapter for the district before theaddition of the property to the district under this section shall beincreased by an amount equal to:
(1) the aggregate amount of state gross retail and use taxesremitted:
(A) under IC 6-2.5 by the businesses operating in the areaadded to the district under subsection (b); and
(B) during the period beginning after December 31, 2001,and ending before February 1, 2002; multiplied by (2) twelve (12).
(d) After the addition of property to a district described insubsection (a) under this section, the income tax base period amountdetermined under section 3.2 of this chapter for the district before theaddition of the property to the district under this section shall beincreased by an amount equal to:
(1) the aggregate amount of state and local income taxes paid:
(A) by employees employed in the area added to the districtunder subsection (b) with respect to wages and salary earnedfor work in the area added; and
(B) during the period beginning after December 31, 2001,and ending before February 1, 2002; multiplied by
(2) twelve (12).
(e) The addition of property to a district under this section doesnot require adoption of an ordinance, review by the budgetcommittee, or approval of the budget agency under section 10.5 ofthis chapter.
As added by P.L.178-2002, SEC.119.
IC 36-7-13-11
Application for designation of district; duties of advisorycommission on industrial development
Sec. 11. If a municipal or county executive submits an applicationrequesting an area to be designated as a district under this chapter,the advisory commission on industrial development shall do thefollowing:
(1) Compile information necessary to make a determinationconcerning whether the area meets the conditions necessary fordesignation as a district.
(2) Prepare maps showing the boundaries of the proposeddistrict.
(3) Prepare a plan describing the ways in which thedevelopment obstacles described in section 12(b)(3), 12(c),12(d), 12(e), or 12.1(a) of this chapter in the proposed districtwill be addressed.
As added by P.L.125-1998, SEC.15. Amended by P.L.138-1999,SEC.4; P.L.174-2001, SEC.7; P.L.224-2003, SEC.237.
IC 36-7-13-12
Designation of district; resolution; findings; duration; noticerequirements; information to taxing units; budget agencyproceedings
Sec. 12. (a) If a municipal or county executive has submitted anapplication to an advisory commission on industrial developmentrequesting that an area be designated as a district under this chapterand the advisory commission has compiled and prepared theinformation required under section 11 of this chapter concerning thearea, the advisory commission may adopt a resolution designating thearea as a district if it makes the findings described in subsection (b),(c), (d), or (e). In a county described in subsection (c), an advisory
commission may designate more than one (1) district undersubsection (c).
(b) For an area located in a county having a population of morethan one hundred twenty thousand (120,000) but less than onehundred thirty thousand (130,000), an advisory commission mayadopt a resolution designating a particular area as a district only afterfinding all of the following:
(1) The area contains a building or buildings:
(A) with at least one million (1,000,000) square feet ofusable interior floor space; and
(B) that is or are vacant or will become vacant due to therelocation of an employer.
(2) At least one thousand (1,000) fewer persons are employedin the area than were employed in the area during the year thatis ten (10) years previous to the current year.
(3) There are significant obstacles to redevelopment of the areadue to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(4) The unit has expended, appropriated, pooled, set aside, orpledged at least one hundred thousand dollars ($100,000) forpurposes of addressing the redevelopment obstacles describedin subdivision (3).
(5) The area is located in a county having a population of morethan one hundred twenty thousand (120,000) but less than onehundred thirty thousand (130,000).
(c) For a county having a population of more than one hundredeighteen thousand (118,000) but less than one hundred twentythousand (120,000), an advisory commission may adopt a resolutiondesignating not more than three (3) areas as districts. An advisorycommission may designate an area as a district only after finding thefollowing:
(1) The area meets at least one (1) of the following conditions:
(A) The area meets the following conditions:
(i) The area contains a building with at least sevenhundred ninety thousand (790,000) square feet.
(ii) At least eight hundred (800) fewer people areemployed in the area than were employed in the areaduring the year that is fifteen (15) years previous to thecurrent year.
(iii) The area is located in or is adjacent to an industrialpark.
(B) The area meets the following conditions:
(i) The area contains a building with at least three hundredeighty-six thousand (386,000) square feet.
(ii) At least four hundred (400) fewer people are employed
in the area than were employed in the area during the yearthat is fifteen (15) years previous to the current year.
(iii) The area is located in or is adjacent to an industrialpark.
(C) The area meets the following conditions:
(i) The area contains a building with at least one million(1,000,000) square feet.
(ii) At least seven hundred (700) fewer people areemployed in the area than were employed in the area onJanuary 1, 2008.
(2) There are significant obstacles to redevelopment of the areadue to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(3) The area is located in a county having a population of morethan one hundred eighteen thousand (118,000) but less than onehundred twenty thousand (120,000).
(d) For an area located in a county having a population of morethan two hundred thousand (200,000) but less than three hundredthousand (300,000), an advisory commission may adopt a resolutiondesignating a particular area as a district only after finding all of thefollowing:
(1) The area contains a building or buildings:
(A) with at least one million five hundred thousand(1,500,000) square feet of usable interior floor space; and
(B) that is or are vacant or will become vacant.
(2) At least eighteen thousand (18,000) fewer persons areemployed in the area at the time of application than wereemployed in the area before the time of application.
(3) There are significant obstacles to redevelopment of the areadue to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(4) The unit has expended, appropriated, pooled, set aside, orpledged at least one hundred thousand dollars ($100,000) forpurposes of addressing the redevelopment obstacles describedin subdivision (3).
(5) The area is located in a county having a population of morethan two hundred thousand (200,000) but less than threehundred thousand (300,000).
(e) For an area located in a county having a population of morethan three hundred thousand (300,000) but less than four hundred
thousand (400,000), an advisory commission may adopt a resolutiondesignating a particular area as a district only after finding all of thefollowing:
(1) The area contains a building or buildings:
(A) with at least eight hundred thousand (800,000) grosssquare feet; and
(B) having leasable floor space, at least fifty percent (50%)of which is or will become vacant.
(2) There are significant obstacles to redevelopment of the areadue to any of the following problems:
(A) Obsolete or inefficient buildings as evidenced by adecline of at least seventy-five percent (75%) in theirassessed valuation during the preceding ten (10) years.
(B) Transportation or access problems.
(C) Environmental contamination.
(3) At least four hundred (400) fewer persons are employed inthe area than were employed in the area during the year that isfifteen (15) years previous to the current year.
(4) The area has been designated as an economic developmenttarget area under IC 6-1.1-12.1-7.
(5) The unit has appropriated, pooled, set aside, or pledged atleast two hundred fifty thousand dollars ($250,000) forpurposes of addressing the redevelopment obstacles describedin subdivision (2).
(6) The area is located in a county having a population of morethan three hundred thousand (300,000) but less than fourhundred thousand (400,000).
(f) The advisory commission, or the county or municipallegislative body, in the case of a district designated under section10.5 of this chapter, shall designate the duration of the district.However, a district must terminate not later than fifteen (15) yearsafter the income tax incremental amount or gross retail incrementalamount is first allocated to the district.
(g) Upon adoption of a resolution designating a district, theadvisory commission shall:
(1) publish notice of the adoption and substance of theresolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit in thecounty where the district is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the district,including the following:
(i) The estimated economic benefits and costs incurred bythe district, as measured by increased employment andanticipated growth of property assessed values.
(ii) The anticipated impact on tax revenues of each taxingunit.
The notice must state the general boundaries of the district.
(h) Upon completion of the actions required by subsection (g), theadvisory commission shall submit the resolution to the budget
committee for review and recommendation to the budget agency. Ifthe budget agency fails to take action on a resolution designating adistrict within one hundred twenty (120) days after the date that theresolution is submitted to the budget committee, the designation ofthe district by the resolution is considered approved.
(i) When considering a resolution, the budget committee and thebudget agency must make the following findings:
(1) The area to be designated as a district meets the conditionsnecessary for designation as a district.
(2) The designation of the district will benefit the people ofIndiana by protecting or increasing state and local tax bases andtax revenues for at least the duration of the district.
(j) The income tax incremental amount and the gross retailincremental amount may not be allocated to the district until theresolution is approved under this section.
As added by P.L.125-1998, SEC.16. Amended by P.L.1-1999,SEC.81; P.L.138-1999, SEC.5; P.L.174-2001, SEC.8; P.L.170-2002,SEC.159; P.L.224-2003, SEC.238; P.L.81-2004, SEC.34 andP.L.90-2004, SEC.7; P.L.199-2005, SEC.32; P.L.113-2010,SEC.131.
IC 36-7-13-12.1
Designation of district; resolution; findings; duration; noticerequirements; information to taxing units; budget agencyproceedings
Sec. 12.1. (a) If the executive of a city described in section 10.1(a)of this chapter has submitted an application to an advisorycommission on industrial development requesting that an area bedesignated as a district under this chapter and the advisorycommission has compiled and prepared the information requiredunder section 11 of this chapter concerning the area, the advisorycommission may adopt a resolution designating the area as a districtif it finds the following:
(1) That the redevelopment of the area in the district will:
(A) promote significant opportunities for the gainfulemployment of its citizens;
(B) attract a major new business enterprise to the area; or
(C) retain or expand a significant business enterprise withinthe area.
(2) That there are significant obstacles to redevelopment of thearea due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or ineffective utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(G) Lack of development or cessation of growth.
(H) Deterioration of improvements or character ofoccupancy, age, obsolescence, or substandard buildings. (I) Other factors that have impaired values or prevent anormal development of property or use of property.
(b) To address the obstacles identified in subsection (a)(2), thecity may make expenditures for:
(1) the acquisition of land;
(2) interests in land;
(3) site improvements;
(4) infrastructure improvements;
(5) buildings;
(6) structures;
(7) rehabilitation, renovation, and enlargement of buildings andstructures;
(8) machinery;
(9) equipment;
(10) furnishings;
(11) facilities;
(12) administration expenses associated with such a project;
(13) operating expenses; or
(14) substance removal or remedial action to the area.
(c) In addition to the findings described in subsection (a), anadvisory commission must also find that the city described in section10.1(a) of this chapter has expended, appropriated, pooled, set aside,or pledged at least two hundred fifty thousand dollars ($250,000) forpurposes of addressing the redevelopment obstacles described insubsection (a)(2).
(d) The advisory commission shall designate the duration of thedistrict. However, a district must terminate not later than fifteen (15)years after the income tax incremental amount or gross retailincremental amount is first allocated to the district under this chapter.
(e) Upon adoption of a resolution designating a district, theadvisory commission shall:
(1) publish notice of the adoption and substance of theresolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit in thecounty where the district is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the district,including the following:
(i) The estimated economic benefits and costs incurred bythe district, as measured by increased employment andanticipated growth of property assessed values.
(ii) The anticipated impact on tax revenues of each taxingunit.
The notice must state the general boundaries of the district.
(f) Upon completion of the actions required by subsection (e), theadvisory commission shall submit the resolution to the budgetcommittee for review and recommendation to the budget agency. Ifthe budget agency fails to take action on a resolution designating adistrict within one hundred twenty (120) days after the date that theresolution is submitted to the budget committee, the designation of
the district by the resolution is considered approved.
(g) When considering a resolution, the budget committee and thebudget agency must make the following findings:
(1) The area to be designated as a district meets the conditionsnecessary for designation as a district.
(2) The designation of the district will benefit the people ofIndiana by protecting or increasing state and local tax bases andtax revenues for at least the duration of the district.
(h) The income tax incremental amount and the gross retailincremental amount may not be allocated to the district until theresolution is approved under this section.
As added by P.L.224-2003, SEC.239. Amended by P.L.81-2004,SEC.35 and P.L.90-2004, SEC.8; P.L.199-2005, SEC.33.
IC 36-7-13-12.5
Petition for modification of district boundaries; budget committeeand budget agency findings; certification of boundaries
Sec. 12.5. (a) An advisory commission on industrial developmentthat designates a district under section 12 or 12.1 of this chapter orthe legislative body of a county or municipality that adopts anordinance designating a district under section 10.5 of this chaptermay petition for permission to modify the boundaries of the district.The petition must be submitted to the budget committee for reviewand recommendation to the budget agency.
(b) When considering a petition submitted under subsection (a),the budget committee and the budget agency must make thefollowing findings:
(1) The area to be added to the district, if any, meets theconditions necessary for designation as a district under section10.5, 12, or 12.1 of this chapter.
(2) The proposed modification of the district will benefit thepeople of Indiana by protecting or increasing state and local taxbases and tax revenues for at least the duration of the district.
(c) Upon approving a petition submitted under subsection (a), thebudget agency shall certify the district's modified boundaries to thedepartment of state revenue.
As added by P.L.81-2004, SEC.36 and P.L.90-2004, SEC.9.
IC 36-7-13-13
Designation of district; information to department of staterevenue; determination of gross retail base period amount andincome tax base period amount
Sec. 13. (a) If an advisory commission on industrial developmentdesignates a district under section 12 or 12.1 of this chapter or if thelegislative body of a county or municipality adopts an ordinancedesignating a district under section 10.5 of this chapter, the advisorycommission, or the legislative body in the case of a districtdesignated under section 10.5 of this chapter, shall send a certifiedcopy of the resolution or ordinance designating the district to thedepartment of state revenue by certified mail and shall include with
the resolution a complete list of the following:
(1) Employers in the district.
(2) Street names and the range of street numbers of each streetin the district.
(3) Federal tax identification number of each business in thedistrict.
(4) The street address of each employer.
(5) Name, telephone number, and electronic mail address (ifavailable) of a contact person for each employer.
(b) The advisory commission, or the legislative body in the caseof a district designated under section 10.5 of this chapter, shallupdate the list:
(1) before July 1 of each year; or
(2) within fifteen (15) days after the date that the budget agencyapproves a petition to modify the boundaries of the districtunder section 12.5 of this chapter.
(c) Not later than sixty (60) days after receiving a copy of theresolution or ordinance designating a district, the department of staterevenue shall determine the gross retail base period amount and theincome tax base period amount.
(d) Not later than sixty (60) days after receiving a certification ofa district's modified boundaries under section 12.5(c) of this chapter,the department shall recalculate the gross retail base period amountand the income tax base period amount for a district modified undersection 12.5 of this chapter.
As added by P.L.125-1998, SEC.17. Amended by P.L.174-2001,SEC.9; P.L.224-2003, SEC.240; P.L.81-2004, SEC.37 andP.L.90-2004, SEC.10; P.L.199-2005, SEC.34.
IC 36-7-13-14
Tax incremental amount calculations; district business duties
Sec. 14. (a) This section does not apply to a district that:
(1) is described in section 23(a) of this chapter; and
(2) is not selected by the advisory commission to receive anallocation of income tax incremental amount and the gross retailincremental amount under this chapter.
(b) Before the first business day in October of each year, thedepartment shall calculate the income tax incremental amount andthe gross retail incremental amount for the preceding state fiscal yearfor each district designated under this chapter.
(c) Businesses operating in the district shall report, in the mannerand in the form prescribed by the department, information that thedepartment determines necessary to calculate incremental grossretail, use, and income taxes.
(d) Not later than sixty (60) days after receiving a certification ofa district's modified boundaries under section 12.5(c) of this chapter,the department shall recalculate the income tax incremental amountand the gross retail incremental amount for the preceding state fiscalyear for a district modified under section 12.5 of this chapter.
As added by P.L.125-1998, SEC.18. Amended by P.L.81-2004,
SEC.38 and P.L.90-2004, SEC.11; P.L.199-2005, SEC.35;P.L.113-2010, SEC.132.
IC 36-7-13-15
Incremental tax financing funds
Sec. 15. (a) This section does not apply to a district that:
(1) is described in section 23(a) of this chapter; and
(2) is not selected by the advisory commission to receive anallocation of income tax incremental amount and the gross retailincremental amount under this chapter.
(b) If an advisory commission on industrial developmentdesignates a district under this chapter or the legislative body of acounty or municipality adopts an ordinance designating a districtunder section 10.5 of this chapter, the treasurer of state shallestablish an incremental tax financing fund for the district. The fundshall be administered by the treasurer of state. Money in the funddoes not revert to the state general fund at the end of a state fiscalyear.
(c) Subject to subsection (d), the following amounts shall bedeposited during each state fiscal year in the incremental taxfinancing fund established for the district under subsection (a):
(1) The aggregate amount of state gross retail and use taxes thatare remitted under IC 6-2.5 by businesses operating in thedistrict, until the amount of state gross retail and use taxesdeposited equals the gross retail incremental amount for thedistrict.
(2) The aggregate amount of state and local income taxes paidby employees employed in the district with respect to wagesearned for work in the district, until the amount of state andlocal income taxes deposited equals the income tax incrementalamount.
(d) The aggregate amount of revenues that is:
(1) attributable to:
(A) the state gross retail and use taxes established underIC 6-2.5; and
(B) the adjusted gross income tax established under IC 6-3-1through IC 6-3-7; and
(2) deposited during any state fiscal year in each incrementaltax financing fund established for a district;
may not exceed one million dollars ($1,000,000) per districtdesignated under section 10.5 or 12 of this chapter and sevenhundred fifty thousand dollars ($750,000) per district for a districtdesignated under section 10.1 or 12.1 of this chapter.
(e) On or before the twentieth day of each month, all amountsheld in the incremental tax financing fund established for a districtshall be distributed to the district's advisory commission on industrialdevelopment for deposit in the industrial development fund of theunit that requested designation of the district.
As added by P.L.125-1998, SEC.19. Amended by P.L.174-2001,SEC.10; P.L.192-2002(ss), SEC.175; P.L.224-2003, SEC.241;
P.L.113-2010, SEC.133.
IC 36-7-13-16
Issuance of bonds or other obligations
Sec. 16. (a) A unit may issue bonds or other obligations to financethe costs of addressing the development obstacles described insection 12(b)(3),