CHAPTER 27. ECONOMIC DEVELOPMENT TAX AREA
IC 36-7-27
Chapter 27. Economic Development Tax Area
IC 36-7-27-1
Application of chapter
Sec. 1. This chapter applies to each county having a consolidatedcity.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-2
"Base period amount" defined
Sec. 2. As used in this chapter, "base period amount" means theaggregate amount of covered local income taxes paid by employeesemployed in a tax area with respect to wages earned for work in thetax area for the state fiscal year that precedes the date on which thecommission confirmed the resolution designating the tax area.However, the base period amount with respect to a tax area coveredby section 11(c) of this chapter is zero (0).
As added by P.L.27-1992, SEC.28.
IC 36-7-27-3
"Commission" defined
Sec. 3. As used in this chapter, "commission" refers to themetropolitan development commission acting as the redevelopmentcommission of a consolidated city, subject to IC 36-3-4-23.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-4
"County taxpayer" defined
Sec. 4. (a) As used in this chapter, "county taxpayer" means anindividual who:
(1) resides in the county; or
(2) maintains the individual's principal place of business oremployment in the county and who does not reside in anothercounty in which the county option income tax, the countyadjusted income tax, or the county economic developmentincome tax is in effect.
(b) For purposes of this section, an individual shall be treated asa resident of the county in which the individual:
(1) maintains a home, if the individual maintains only one (1)home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers theindividual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends themajority of the individual's time spent in Indiana during thetaxable year in question.
As added by P.L.27-1992, SEC.28. Amended by P.L.42-1994,SEC.12.
IC 36-7-27-5
"Covered local income taxes" defined
Sec. 5. As used in this chapter, "covered local income taxes"means the following income taxes imposed on county taxpayers:
(1) County option income tax.
(2) County economic development income tax.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-6
"Department" defined
Sec. 6. As used in this chapter, "department" refers to thedepartment of state revenue.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-7
"Fund" defined
Sec. 7. As used in this chapter, "fund" refers to an incrementalincome tax financing fund established under section 13 of thischapter.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-8
"Incremental income tax" defined
Sec. 8. As used in this chapter, "incremental income tax" meansthe remainder of:
(1) the aggregate amount of covered local income taxes paid byemployees employed in a tax area with respect to wages earnedfor work in the tax area for a particular state fiscal year; minus
(2) the base period amount.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-9
"Qualified economic development tax project" defined
Sec. 9. As used in this chapter, "qualified economic developmenttax project" means a project that is expected to create, retain, orcreate and retain at least two thousand (2,000) jobs in the county.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-10
"Tax area" defined
Sec. 10. As used in this chapter, "tax area" means a geographicarea established by a commission under section 11 of this chapter inwhich a qualified economic development tax project is located.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-11
Tax area; establishment; procedures; area containing armed forcesprovider; findings; special taxing district
Sec. 11. (a) A commission may establish a tax area according tothe procedures set forth for the establishment of economic
development areas under IC 36-7-15.1. Notwithstanding any otherlaw, the tax area must be wholly within an airport development zoneestablished under IC 8-22-3.5 or within any other area in the countyin which there is located a provider of services, equipment, or bothto the United States armed forces.
(b) In establishing the tax area, the commission must make thefollowing findings in lieu of the findings required for theestablishment of economic development areas:
(1) That a project to be undertaken or that has been undertakenin the area is a qualified economic development tax project.
(2) That the local public improvements (as defined inIC 36-7-15.3-6) being constructed, acquired, or provided or tobe constructed, acquired, or provided in or serving the tax areawill benefit the public health and welfare and will be of publicutility and benefit.
(3) That the qualified economic development tax project beingconstructed, acquired, or provided or to be constructed,acquired, or provided in or serving the tax area will protect orincrease state and local tax bases or revenues.
(c) In addition to the findings required under subsection (b), thecommission may find that the qualified economic developmentproject involves a provider of services, equipment, or both to theUnited States armed forces.
(d) The tax area established by the commission under this chapteris a special taxing district authorized by the general assembly toenable the county to provide special benefits to taxpayers in the taxarea by promoting economic development that is of public use andbenefit.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-12
Allocation provision; adoption; notice; certification of base periodamount
Sec. 12. (a) A resolution adopted under section 11 of this chaptermust include a provision with respect to the allocation anddistribution of covered local income taxes for the purposes and in themanner provided in this section. The allocation provision must applyto the entire tax area.
(b) When an allocation provision is adopted under subsection (a),the commission shall notify the department by certified mail of theadoption of the provision and shall include with the notification acomplete list of the following:
(1) Employers in the tax area.
(2) Street names and the range of street numbers of each streetin the tax area.
The commission shall update the list before July 1 of each year.
(c) Not later than sixty (60) days after receipt from thecommission of the notification under subsection (b), the departmentshall determine the base period amount and certify that amount to thecommission.As added by P.L.27-1992, SEC.28.
IC 36-7-27-13
Incremental income tax financing fund; establishment; administration;estimate, certification, and collection of tax; disbursement and pledgeof fund; sufficiency to meet obligations
Sec. 13. (a) The treasurer of state shall establish an incrementalincome tax financing fund for the county. The fund shall beadministered by the treasurer of state. Money in the fund does notrevert to the state general fund at the end of a state fiscal year.
(b) Before July 2 of each calendar year, the department, afterreviewing the recommendation of the budget agency, shall estimateand certify to the county auditor the amount of incremental incometax for the tax areas in the county that will be collected from thatcounty during the twelve (12) month period beginning July 1 of thatcalendar year and ending June 30 of the following calendar year. Theamount certified shall be deposited into the fund and shall bedistributed on the dates specified in subsection (e) for the followingcalendar year. The amount certified may be adjusted undersubsection (c) or (d).
(c) The department may certify to the county an amount that isgreater than the estimated twelve (12) month incremental income taxcollection if the department, after reviewing the recommendation ofthe budget agency, determines that there will be a greater amount ofincremental income tax available for distribution from the fund.
(d) The department may certify an amount less than the estimatedtwelve (12) month incremental income tax collection if thedepartment, after reviewing the recommendation of the budgetagency, determines that a part of those collections need to bedistributed during the current calendar year so that the county willreceive its full certified amount for the current calendar year.
(e) The auditor of state shall disburse the certified amount to thecommission in equal semiannual installments on May 31 andNovember 30 of each year.
(f) Money in the fund may be pledged by the commission to thefollowing purposes:
(1) To pay debt service on the bonds issued under section 14 ofthis chapter.
(2) To pay lease rentals under section 14 of this chapter.
(3) To establish and maintain a debt service reserve establishedby the commission or by a lessor that provides local publicimprovements to the commission.
(g) When money in the fund is sufficient when combined withother sources of payment to pay all outstanding principal and interestor lease rentals to the date on which the obligations can be redeemedon obligations of the commission for a local public improvement inthe county, no additional incremental income tax for that projectshall be deposited in the fund and covered income taxes shall bedistributed as provided in IC 6-3.5-6 or IC 6-3.5-7, as appropriate.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-14
Bonds; issuance; purposes
Sec. 14. The commission may issue bonds payable in whole or inpart from money distributed from the fund to the commission tofinance local public improvements under IC 36-7-15.1-17 or makelease rental payments in whole or in part from money distributedfrom the fund to the commission for a local public improvementunder IC 36-7-15.1-17.1 and IC 36-7-15.1-17.2, including debtservice payments on or lease rental payments for local publicimprovements under bonds issued or a lease entered into beforeJanuary 1, 1992. Local public improvements to be financed by thecommission may be in or serving the tax area.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-15
Tax covenant with bond owners
Sec. 15. The general assembly covenants that this chapter will notbe repealed or amended in a manner that will adversely affect theowners of bonds issued under this chapter by the commission or alessor corporation providing local public improvements to thecommission.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-16
Pledge to finance economic development tax project
Sec. 16. Notwithstanding any other law, a county that expects toreceive an economic benefit from a qualified economic developmenttax project under this chapter, a county contiguous to such a county,or a municipality that expects to receive an economic benefit from aqualified economic development tax project under this chapter, maypledge (as authorized in IC 5-1-14-4) any legally available money tothe payment of bonds or lease rentals to finance a qualified economicdevelopment tax project. The pledge does not create a debt of thepledging county or municipality under the Constitution of the Stateof Indiana so long as the money is designated to make lease rentalpayments to finance a qualified economic development tax project.
As added by P.L.28-1993, SEC.14.
IC 36-7-27-18
Information required to be disclosed by employers
Sec. 18. Upon request of the department, employers in the tax areashall provide the department with:
(1) the names and addresses of all persons employed by theemployer in the tax area;
(2) information concerning the wages earned by the persons forwork in the tax area; and
(3) any other information the department requires to administerthis chapter.
As added by P.L.42-1994, SEC.13.