IC 36-7-31
    Chapter 31. Professional Sports Development Area in CountyContaining a Consolidated City

IC 36-7-31-1
Applicability of chapter
    Sec. 1. This chapter applies only to a county having aconsolidated city.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-2
"Budget agency" defined
    Sec. 2. As used in this chapter, "budget agency" means the budgetagency established by IC 4-12-1.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-3
"Budget committee" defined
    Sec. 3. As used in this chapter, "budget committee" has themeaning set forth in IC 4-12-1-3.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-4
"Capital improvement board" defined
    Sec. 4. As used in this chapter, "capital improvement board"refers to the capital improvement board of managers established byIC 36-10-9-3.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-5
"Commission" defined
    Sec. 5. As used in this chapter, "commission" refers to themetropolitan development commission acting as the redevelopmentcommission of a consolidated city.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-6
"Covered taxes" defined
    Sec. 6. As used in this chapter, "covered taxes" means thefollowing:
        (1) With respect to the professional sports development area asit existed on December 31, 2008:
            (A) The state gross retail tax imposed under IC 6-2.5-2-1 oruse tax imposed under IC 6-2.5-3-2.
            (B) An adjusted gross income tax imposed under IC 6-3-2-1on an individual.
            (C) A county option income tax imposed under IC 6-3.5-6.
            (D) A food and beverage tax imposed under IC 6-9.
        (2) With respect to an addition to the professional sportsdevelopment area after December 31, 2008:            (A) The state gross retail tax imposed under IC 6-2.5-2-1 oruse tax imposed under IC 6-2.5-3-2.
            (B) An adjusted gross income tax imposed under IC 6-3-2-1on an individual.
            (C) A county option income tax imposed under IC 6-3.5-6.
As added by P.L.255-1997(ss), SEC.19. Amended byP.L.182-2009(ss), SEC.408.

IC 36-7-31-7
"Department" defined
    Sec. 7. As used in this chapter, "department" refers to thedepartment of state revenue.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-8
"Tax area" defined
    Sec. 8. As used in this chapter, "tax area" means a geographic areaestablished by a commission as a professional sports developmentarea under section 14 of this chapter.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-9
"Taxpayer" defined
    Sec. 9. As used in this chapter, "taxpayer" means a person that isliable for a covered tax.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-10
Establishment of area; facilities
    Sec. 10. (a) A commission may establish as part of a professionalsports development area any facility or complex of facilities:
        (1) that is used in the training of a team engaged in professionalsporting events;
        (2) that is:
            (A) financed in whole or in part by:
                (i) notes or bonds issued by a political subdivision orissued under IC 36-10-9 or IC 36-10-9.1; or
                (ii) a lease or other agreement under IC 5-1-17; and
            (B) used to hold a professional sporting event; or
        (3) that consists of a hotel, motel, or a multibrand complex ofhotels and motels, with significant meeting space:
            (A) located in an area in Indianapolis, Indiana, bounded onthe east by Illinois Street, on the south by Maryland Street,and on the west and north by Washington Street, as thosestreets were located on June 1, 2009;
            (B) that provides:
                (i) convenient accommodations for consideration to thegeneral public for periods of less than thirty (30) days,especially for individuals attending professional sportingevents, conventions, or similar events in the capital

improvements that are owned, leased, or operated by thecapital improvement board; and
                (ii) significant meeting and convention space that directlyenhances events held in the capital improvements that areowned, leased, or operated by the capital improvementboard; and
            (C) that enhances the convention opportunities for thecapital improvement board to hold events that:
                (i) would not otherwise be possible; and
                (ii) directly affect the success of both the facilities andcapital improvements that are owned, leased, or operatedby the capital improvement board.
The tax area may include a facility or complex of facilities describedin this section and any parcel of land on which the facility orcomplex of facilities is located. An area may contain noncontiguoustracts of land within the county.
    (b) With respect to the site or future site of a facility or complexof facilities described in subsection (a)(3), the general assembly findsthe following:
        (1) That the facility or complex of facilities in the tax areaprovides both convenient accommodations for professionalsporting events, conventions, or similar events and significantmeeting and convention space that directly enhance events heldin the capital improvements that are owned, leased, or operatedby the capital improvement board.
        (2) That the facility or complex of facilities in the tax area andthe capital improvements that are owned, leased, or operated bythe capital improvement board are integrally related toenhancing the convention opportunities that directly affect thesuccess of both the facilities and capital improvements.
        (3) That the facility or complex of facilities in the tax areaprovides the opportunity for the capital improvement board tohold events that would not otherwise be possible.
        (4) That the facility or complex of facilities in the tax areaprotects or increases state and local tax bases and tax revenues.
As added by P.L.255-1997(ss), SEC.19. Amended by P.L.214-2005,SEC.66; P.L.182-2009(ss), SEC.409.

IC 36-7-31-11
Establishment of area; time; findings; area changes; special taxingdistrict
    Sec. 11. (a) A tax area must be initially established before July 1,1999, according to the procedures set forth for the establishment ofan economic development area under IC 36-7-15.1. A tax area maybe changed (including to the exclusion or inclusion of a facilitydescribed in this chapter) or the terms governing the tax area may berevised in the same manner as the establishment of the initial taxarea. However, a tax area may be changed as follows:
        (1) After May 14, 2005, a tax area may be changed to includethe site or future site of a facility that is or will be the subject of

a lease or other agreement entered into between the capitalimprovement board and the Indiana stadium and conventionbuilding authority or any state agency under IC 5-1-17-26.
        (2) After June 30, 2009, a tax area may be changed to includethe site or future site of a facility or complex of facilitiesdescribed in section 10(a)(3) of this chapter.
        (3) The terms governing a tax area may be revised only withrespect to a facility or complex of facilities described insubdivision (1) or (2).
    (b) In establishing or changing the tax area or revising the termsgoverning the tax area, the commission must do the following:
        (1) With respect to a tax area change described in subsection(a)(1), the commission must make the following findingsinstead of the findings required for the establishment ofeconomic development areas:
            (A) That a project to be undertaken or that has beenundertaken in the tax area is for a facility at which aprofessional sporting event or a convention or similar eventwill be held.
            (B) That the project to be undertaken or that has beenundertaken in the tax area will benefit the public health andwelfare and will be of public utility and benefit.
            (C) That the project to be undertaken or that has beenundertaken in the tax area will protect or increase state andlocal tax bases and tax revenues.
        (2) With respect to a tax area change described in subsection(a)(2), the commission must make the following findingsinstead of the findings required for the establishment of aneconomic development area:
            (A) That the facility or complex of facilities in the tax areaprovides both convenient accommodations for professionalsporting events, conventions, or similar events andsignificant meeting and convention space that directlyenhance events held in the capital improvements that areowned, leased, or operated by the capital improvementboard.
            (B) That the facility or complex of facilities in the tax areaand the capital improvements that are owned, leased, oroperated by the capital improvement board are integrallyrelated to enhancing the convention opportunities thatdirectly affect the success of both the facilities and capitalimprovements.
            (C) That the facility or complex of facilities in the tax areaprovides the opportunity for the capital improvement boardto hold events that would not otherwise be possible.
            (D) That the facility or complex of facilities in the tax areaprotects or increases state and local tax bases and taxrevenues.
    (c) The tax area established by the commission under this chapteris a special taxing district authorized by the general assembly to

enable 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.255-1997(ss), SEC.19. Amended by P.L.214-2005,SEC.67; P.L.182-2009(ss), SEC.410.

IC 36-7-31-12
Review of resolution by budget committee; notice requirements;information to taxing units
    Sec. 12. (a) Upon adoption of a resolution establishing a tax areaunder section 14 of this chapter, the commission shall submit theresolution to the budget committee for review and recommendationto the budget agency. The budget committee shall meet not later thansixty (60) days after receipt of a resolution and shall make arecommendation on the resolution to the budget agency.
    (b) Upon adoption of a resolution changing the boundaries of atax area under section 14 of this chapter, the 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 in which 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.
    (c) Upon completion of the actions required by subsection (b), thecommission shall submit the resolution to the budget committee forreview and recommendation to the budget agency. The budgetcommittee shall meet not later than sixty (60) days after receipt of aresolution and shall make a recommendation on the resolution to thebudget agency.
As added by P.L.255-1997(ss), SEC.19. Amended by P.L.199-2005,SEC.36.

IC 36-7-31-13
Approval of resolution by budget agency
    Sec. 13. (a) The budget agency must approve the resolution beforecovered taxes may be allocated under section 14 or 14.2 of thischapter.
    (b) When considering a resolution with respect to a tax areachange described in section 11(a)(1) of this chapter, the budgetcommittee and the budget agency must make the following findings:
        (1) The cost of the facility and facility site specified under theresolution exceeds one hundred thousand dollars ($100,000).
        (2) The project specified in the resolution is economically

sound and will benefit the people of Indiana by protecting orincreasing state and local tax bases and tax revenues for at leastthe duration of the tax area established under this chapter.
        (3) The political subdivisions affected by the project specifiedin the resolution have committed significant resources towardscompletion of the improvement.
    (c) When considering a resolution with respect to a tax areachange described in section 11(a)(2) of this chapter, the budgetcommittee and the budget agency must make the following findings:
        (1) That the facility or complex of facilities described in section10(a)(3) of this chapter will provide accommodations andsignificant meeting and convention space that directly enhanceevents and that are located in convenient proximity to capitalimprovements that are owned, leased, or operated by the capitalimprovement board.
        (2) That the facility or complex of facilities in the tax area andthe capital improvements that are owned, leased, or operated bythe capital improvement board are integrally related toenhancing the convention opportunities that directly affect thesuccess of both the facilities and capital improvements.
        (3) That the facility or complex of facilities specified in theresolution will benefit the people of Indiana by providing theopportunity for the capital improvement board to hold eventsthat would not otherwise be possible.
        (4) That the facility or complex of facilities specified in theresolution will protect or increase state and local tax bases andtax revenues.
    (d) Revenues from the tax area may not be allocated until thebudget agency approves the resolution.
As added by P.L.255-1997(ss), SEC.19. Amended byP.L.182-2009(ss), SEC.411.

IC 36-7-31-14
Resolution; allocation of taxes to professional sports developmentarea fund
    Sec. 14. (a) This section does not apply to that part of the tax areain which a facility or complex of facilities described in section10(a)(3) of this chapter is located. A reference to "tax area" in thissection does not include the part of the tax area in which a facility orcomplex of facilities described in section 10(a)(3) of this chapter islocated.
    (b) A tax area must be established by resolution. A resolutionestablishing a tax area must provide for the allocation of coveredtaxes attributable to a taxable event or covered taxes earned in thetax area to the professional sports development area fund establishedfor the county. The allocation provision must apply to the part of thetax area covered by this section. The resolution must provide that thetax area terminates not later than December 31, 2027.
    (c) All of the salary, wages, bonuses, and other compensation thatare:        (1) paid during a taxable year to a professional athlete forprofessional athletic services;
        (2) taxable in Indiana; and
        (3) earned in the tax area;
shall be allocated to the tax area if the professional athlete is amember of a team that plays the majority of the professional athleticevents that the team plays in Indiana in the tax area.
    (d) Except as provided by section 14.1 of this chapter, the totalamount of state revenue captured by the tax area may not exceed fivemillion dollars ($5,000,000) per year for twenty (20) consecutiveyears.
    (e) The resolution establishing the tax area must designate thefacility and the facility site for which the tax area is established andcovered taxes will be used.
    (f) The department may adopt rules under IC 4-22-2 andguidelines to govern the allocation of covered taxes to a tax area.
As added by P.L.255-1997(ss), SEC.19. Amended by P.L.214-2005,SEC.68; P.L.182-2009(ss), SEC.412.

IC 36-7-31-14.1
Marion County allocation of additional revenue to professionalsports development area fund
    Sec. 14.1. (a) The budget director appointed under IC 4-12-1-3may determine that, commencing July 1, 2007, there may be capturedin the tax area up to eleven million dollars ($11,000,000) per year inaddition to the up to five million dollars ($5,000,000) of staterevenue to be captured by the tax area under section 14 of thischapter for the professional sports development area fund and inaddition to the state revenue to be captured by the part of the tax areacovered by section 14.2 of this chapter for the sports and conventionfacilities operating fund, for up to thirty-four (34) consecutive years.The budget director's determination must specify that the terminationdate of the tax area for purposes of the collection of the additionaleleven million dollars ($11,000,000) per year for the professionalsports development area fund is extended to not later than:
        (1) January 1, 2041; or
        (2) January 1, 2010, if on that date there are no obligationsowed by the capital improvement board of managers to theIndiana stadium and convention building authority or to anystate agency under IC 5-1-17-26.
Following the budget director's determination, and commencing July1, 2007, the maximum total amount of revenue captured by the taxarea for years ending before January 1, 2041, is sixteen milliondollars ($16,000,000) per year for the professional sportsdevelopment area fund.
    (b) The additional revenue captured pursuant to a determinationunder subsection (a) shall be distributed to the capital improvementboard or its designee. So long as there are any current or futureobligations owed by the capital improvement board to the Indianastadium and convention building authority created by IC 5-1-17 or

any state agency under a lease or another agreement entered intobetween the capital improvement board and the Indiana stadium andconvention building authority or any state agency underIC 5-1-17-26, the capital improvement board or its designee shalldeposit the additional revenue received under this subsection in aspecial fund, which may be used only for the payment of theobligations described in this subsection.
    (c) Notwithstanding the budget director's determination undersubsection (a), after January 1, 2010, the capture of the additionaleleven million dollars ($11,000,000) per year described in subsection(a) terminates on January 1 of the year following the first year inwhich no obligations of the capital improvement board described insubsection (b) remain outstanding.
As added by P.L.214-2005, SEC.69. Amended by P.L.120-2006,SEC.6; P.L.182-2009(ss), SEC.413.

IC 36-7-31-14.2
Marion County allocation of additional revenue to sports andconvention facilities operating fund
    Sec. 14.2. (a) This section applies to the part of the tax area inwhich a facility or complex of facilities described in section 10(a)(3)of this chapter is located. A reference to "tax area addition" in thissection includes only the part of the tax area in which a facility orcomplex of facilities described in section 10(a)(3) of this chapter islocated.
    (b) A tax area change described in section 11(a)(2) of this chaptermust be established by resolution. A resolution changing the tax areamust provide for a request for the allocation of:
        (1) covered taxes attributable to a taxable event in the tax areaaddition; or
        (2) covered taxes from income earned in the tax area addition;
to the sports and convention facilities operating fund established bysection 16(b) of this chapter. However, to the extent a covered taxhas been pledged before January 1, 2009, and allocated underIC 36-10-9-11 to the capital improvement bond fund, that amountshall not be allocated to the sports and convention facilities operatingfund.
    (c) The allocation provision must apply only to the tax areaaddition.
    (d) The resolution changing the tax area must designate eachfacility and each facility site for which the money to be distributedfrom the sports and convention facilities operating fund will be used.
    (e) The budget director shall make an annual determination ofwhether at least one (1) of the following conditions is satisfied:
        (1) The maximum additional tax rate for the innkeeper's taxunder IC 6-9-8 was adopted after June 30, 2009, and beforeSeptember 1, 2009, and was in effect on January 1 of thedetermination year.
        (2) As of January 1 of the determination year:
            (A) at least four million dollars ($4,000,000) per year is

being raised from the innkeeper's tax rate increase that wasadopted under IC 6-9-8 after June 30, 2009, and beforeSeptember 1, 2009; and
            (B) the treasurer of state has invested in obligations issuedby the capital improvement board under IC 5-13-10.5-18.
If the budget director determines that either of the conditions undersubdivision (1) or (2) is satisfied, covered taxes attributable to thepart of the tax area in which a facility or complex of facilitiesdescribed in section 10(a)(3) of this chapter is located shall then bedeposited in the sports and convention facilities operating fundestablished by section 16(b) of this chapter. For 2009, the budgetdirector may use September 1, 2009, instead of January 1, 2009, tomake a determination of whether to make deposits in the sports andconvention facilities operating fund in 2009. However, the maximumtotal amount of covered taxes that may be deposited in the sports andconvention facilities operating fund is eight million dollars($8,000,000) during each year. To the extent a covered tax has beenpledged before January 1, 2009, and allocated under IC 36-10-9-11to the capital improvement bond fund, that amount shall not beallocated to or deposited in the sports and convention facilitiesoperating fund.
    (f) The department may adopt rules under IC 4-22-2 andguidelines to govern the allocation of covered taxes from the tax areaaddition.
As added by P.L.182-2009(ss), SEC.414.

IC 36-7-31-15
Notice of adoption of allocation provision
    Sec. 15. When the commission adopts an allocation provision, thecommission 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.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-16
Professional sports development area fund; sports and conventionfacilities operating fund
    Sec. 16. (a) A professional sports development area fund for thecounty is established. The fund shall be administered by thedepartment. Money in the fund does not revert to the state generalfund at the end of a state fiscal year.
    (b) A sports and convention facilities operating fund for thecounty is established. The fund shall be administered by thedepartment. Money in the fund does not revert to the state generalfund at the end of a state fiscal year.
As added by P.L.255-1997(ss), SEC.19. Amended by

P.L.182-2009(ss), SEC.415.

IC 36-7-31-17
Deposit of taxes in professional sports development area fund
    Sec. 17. Covered taxes attributable to a taxing area establishedunder section 14 of this chapter shall be deposited in the professionalsports development area fund established by section 16(a) of thischapter for the county.
As added by P.L.255-1997(ss), SEC.19. Amended byP.L.182-2009(ss), SEC.416.

IC 36-7-31-18
Distribution of taxes from funds
    Sec. 18. On or before the twentieth day of each month, allamounts held in the professional sports development area fund andin the sports and convention facilities operating fund for the countyare appropriated for and shall be distributed to the capitalimprovement board.
As added by P.L.255-1997(ss), SEC.19. Amended byP.L.182-2009(ss), SEC.417.

IC 36-7-31-19
Notice of taxes to be distributed to capital improvements board
    Sec. 19. The department shall notify the county auditor of theamount of taxes to be distributed to the capital improvement board.
As added by P.L.255-1997(ss), SEC.19.

IC 36-7-31-20
Warrants
    Sec. 20. All distributions from the professional sportsdevelopment area fund or the sports and convention facilitiesoperating fund for the county shall be made by warrants issued by theauditor of state to the treasurer of state ordering those payments tothe capital improvement board.
As added by P.L.255-1997(ss), SEC.19. Amended byP.L.182-2009(ss), SEC.418.

IC 36-7-31-21
Uses of money from funds
    Sec. 21. (a) Except as provided in section 14.1 of this chapter, thecapital improvement board may use money distributed from theprofessional sports development area fund established by section16(a) of this chapter only to construct and equip a capitalimprovement that is used for a professional sporting event, includingthe financing or refinancing of a capital improvement or the paymentof lease payments for a capital improvement.
    (b) The capital improvement board or its designee shall depositthe revenue received from the sports and convention facilitiesoperating fund established by section 16(b) of this chapter in aspecial fund, which may be used only for paying usual and

customary operating expenses with respect to the capitalimprovements that are owned, leased, or operated by the capitalimprovement board. The special fund may not be used for thepayment of any current or future obligations owed by the capitalimprovement board:
        (1) to the Indiana stadium and convention building authoritycreated by IC 5-1-17 or any state agency under a lease oranother agreement entered into between the capitalimprovement board and the Indiana stadium and conventionbuilding authority or any state agency under IC 5-1-17-26; or
        (2) for the construction or equipping of a capital improvementthat is used for a professional sporting event or convention,including the financing or refinancing of a capital improvementor the payment of lease payments for a capital improvement.
As added by P.L.255-1997(ss), SEC.19. Amended by P.L.214-2005,SEC.70; P.L.182-2009(ss), SEC.419.

IC 36-7-31-22
Repayments to funds
    Sec. 22. The capital improvement board shall repay to theprofessional sports development area fund or the sports andconvention facilities operating fund any amount that is distributed tothe capital improvement board and used for:
        (1) a purpose that is not described in section 21 of this chapter;or
        (2) a facility or facility site other than the facility and facilitysite to which covered taxes are designated under the resolutiondescribed in section 14 or 14.2 of this chapter.
The department shall distribute the covered taxes repaid to theprofessional sports development area fund or the sports andconvention facilities operating fund under this sectionproportionately to the funds and the political subdivisions that wouldhave received the covered taxes if the covered taxes had not beenallocated to the tax area under this chapter.
As added by P.L.255-1997(ss), SEC.19. Amended byP.L.182-2009(ss), SEC.420.

IC 36-7-31-23
Expiration of chapter
    Sec. 23. This chapter expires December 31, 2040.
As added by P.L.255-1997(ss), SEC.19. Amended by P.L.214-2005,SEC.71.