CHAPTER 31.3. PROFESSIONAL SPORTS DEVELOPMENT AREA

IC 36-7-31.3
    Chapter 31.3. Professional Sports Development Area

IC 36-7-31.3-1
Applicability of chapter
    Sec. 1. Except as provided in section 8(b) of this chapter, thischapter applies only to a city or a county without a consolidated citythat has a professional sports franchise playing the majority of itshome games in a facility owned by the city, the county, a schoolcorporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10,or IC 36-10-11.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,SEC.123.

IC 36-7-31.3-2
"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.20.

IC 36-7-31.3-3
"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.20.

IC 36-7-31.3-4
"Covered taxes" defined
    Sec. 4. As used in this chapter, "covered taxes" means the part ofthe following taxes attributable to the operation of a facilitydesignated as part of a tax area under section 8 of this chapter:
        (1) The state gross retail tax imposed under IC 6-2.5-2-1 or usetax imposed under IC 6-2.5-3-2.
        (2) An adjusted gross income tax imposed under IC 6-3-2-1 onan individual.
        (3) A county option income tax imposed under IC 6-3.5.
        (4) Except in a county having a population of more than threehundred thousand (300,000) but less than four hundredthousand (400,000), a food and beverage tax imposed underIC 6-9.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,SEC.124.

IC 36-7-31.3-5
"Department" defined
    Sec. 5. As used in this chapter, "department" refers to thedepartment of state revenue.
As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-5.5 "Designating body" defined
    Sec. 5.5. As used in this chapter, "designating body" means a:
        (1) city legislative body; or
        (2) county legislative body;
that may establish a tax area under this chapter.
As added by P.L.178-2002, SEC.125.

IC 36-7-31.3-6
"Tax area" defined
    Sec. 6. As used in this chapter, "tax area" means a geographic areaestablished as a professional sports and convention development areaunder section 10 of this chapter.
As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-7
"Taxpayer" defined
    Sec. 7. As used in this chapter, "taxpayer" means a person that isliable for a covered tax.
As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-8
Designation of a facility as part of a professional sports andconvention development area; expansion of area
    Sec. 8. (a) A designating body may designate as part of aprofessional sports and convention development area any facility thatis:
        (1) owned by the city, the county, a school corporation, or aboard under IC 36-9-13, IC 36-10-8, IC 36-10-10, orIC 36-10-11, and used by a professional sports franchise forpractice or competitive sporting events;
        (2) owned by the city, the county, or a board under IC 36-9-13,IC 36-10-8, IC 36-10-10, or IC 36-10-11, and used as one (1) ofthe following:
            (A) A facility used principally for convention or tourismrelated events serving national or regional markets.
            (B) An airport.
            (C) A museum.
            (D) A zoo.
            (E) A facility used for public attractions of nationalsignificance.
            (F) A performing arts venue.
            (G) A county courthouse registered on the National Registerof Historic Places; or
        (3) a hotel.
Notwithstanding section 9 of this chapter or any other law, adesignating body may by resolution approve the expansion of aprofessional sports and convention development area after June 30,2009, to include a hotel designated by the designating body. Aresolution for such an expansion must be reviewed by the budgetcommittee and approved by the budget agency in the same manner

as a resolution establishing a professional sports and conventiondevelopment area is reviewed and approved. A facility may notinclude a private golf course or related improvements. The tax areamay include only facilities described in this section and any parcelof land on which a facility is located. An area may containnoncontiguous tracts of land within the city, county, or schoolcorporation.
    (b) Except for a tax area that is located in a city having apopulation of:
        (1) more than one hundred fifty thousand (150,000) but lessthan five hundred thousand (500,000); or
        (2) more than ninety thousand (90,000) but less than onehundred five thousand (105,000);
a tax area must include at least one (1) facility described insubsection (a)(1).
    (c) A tax area may contain other facilities not owned by thedesignating body if:
        (1) the facility is owned by a city, the county, a schoolcorporation, or a board established under IC 36-9-13,IC 36-10-8, IC 36-10-10, or IC 36-10-11; and
        (2) an agreement exists between the designating body and theowner of the facility specifying the distribution and uses of thecovered taxes to be allocated under this chapter.
    (d) This subsection applies to all tax areas located in a countyhaving a population of more than three hundred thousand (300,000)but less than four hundred thousand (400,000). The facilities locatedat an Indiana University-Purdue University regional campus areadded to the tax area designated by the county. The maximumamount of covered taxes that may be captured in all tax areas locatedin the county is three million dollars ($3,000,000) per year,regardless of the designating body that established the tax area. Thecounty option income taxes imposed under IC 6-3.5 that are capturedmust be counted first toward this maximum.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,SEC.126; P.L.64-2004, SEC.35; P.L.1-2006, SEC.570;P.L.176-2009, SEC.25; P.L.182-2009(ss), SEC.510.

IC 36-7-31.3-9
Establishment of area; time; findings; special taxing district
    Sec. 9. (a) A tax area must be initially established by resolution:
        (1) except as provided in subdivision (2) before July 1, 1999; or
        (2) before January 1, 2005, in the case of:
            (A) a second class city; or
            (B) the city of Marion;
according to the procedures set forth for the establishment of aneconomic development area under IC 36-7-14. Before May 15, 2005,a tax area may be changed or the terms governing the tax area revisedin the same manner as the establishment of the initial tax area. AfterMay 14, 2005, a tax area may not be changed and the termsgoverning a tax area may not be revised. Only one (1) tax area may

be created in each county.
    (b) In establishing the tax area, the designating body must makethe following findings instead of the findings required for theestablishment of economic development areas:
        (1) Except for a tax area in a city having a population of:
            (A) more than one hundred fifty thousand (150,000) but lessthan five hundred thousand (500,000); or
            (B) more than ninety thousand (90,000) but less than onehundred five thousand (105,000);
        there is a capital improvement that will be undertaken or hasbeen undertaken in the tax area for a facility that is used by aprofessional sports franchise for practice or competitivesporting events. A tax area to which this subdivision appliesmay also include a capital improvement that will be undertakenor has been undertaken in the tax area for a facility that is usedfor any purpose specified in section 8(a)(2) of this chapter.
        (2) For a tax area in a city having a population of more than onehundred fifty thousand (150,000) but less than five hundredthousand (500,000), there is a capital improvement that will beundertaken or has been undertaken in the tax area for a facilitythat is used for any purpose specified in section 8(a) of thischapter.
        (3) For a tax area in a city having a population of more thanninety thousand (90,000) but less than one hundred fivethousand (105,000), there is a capital improvement that will beundertaken or has been undertaken in the tax area for a facilitythat is used for any purpose specified in section 8(a)(2) of thischapter.
        (4) The capital improvement that will be undertaken or that hasbeen undertaken in the tax area will benefit the public healthand welfare and will be of public utility and benefit.
        (5) The capital improvement that will be undertaken or that hasbeen undertaken in the tax area will protect or increase state andlocal tax bases and tax revenues.
    (c) The tax area established under this chapter is a special taxingdistrict authorized by the general assembly to enable the designatingbody to provide special benefits to taxpayers in the tax area bypromoting economic development that is of public use and benefit.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.174-2001,SEC.13; P.L.178-2002, SEC.127; P.L.64-2004, SEC.36; P.L.2-2005,SEC.130; P.L.214-2005, SEC.72.

IC 36-7-31.3-10
Resolution; allocation of taxes
    Sec. 10. (a) A tax area must be established by resolution. Aresolution establishing a tax area must provide for the allocation ofcovered taxes attributable to a taxable event or covered taxes earnedin the tax area to the professional sports and convention developmentarea fund established for the city or county. The allocation provisionmust apply to the entire tax area. However, for all tax areas located

in a county having a population of more than three hundred thousand(300,000) but less than four hundred thousand (400,000), theallocation each year must be as follows:
        (1) The first two million six hundred thousand dollars($2,600,000) shall be transferred to the county treasurer fordeposit in the supplemental coliseum improvement fund.
        (2) The remaining amount shall be transferred to the treasurerof the joint county-city capital improvement board in thecounty.
The resolution must provide the tax area terminates not later thanDecember 31, 2027.
    (b) In addition to subsection (a), all of the salary, wages, bonuses,and other compensation that are:
        (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.
    (c) For a tax area that is:
        (1) not located in a county having a population of more thanthree hundred thousand (300,000) but less than four hundredthousand (400,000); and
        (2) not located in a city having a population of more than onehundred five thousand (105,000) and less than one hundredtwenty thousand (120,000);
the total amount of state revenue captured by the tax area may notexceed five dollars ($5) per resident of the city or county per year fortwenty (20) consecutive years.
    (d) For a tax area that is located in a city having a population ofmore than one hundred five thousand (105,000) and less than onehundred twenty thousand (120,000), the total amount of state revenuecaptured by the tax area may not exceed six dollars and fifty cents($6.50) per resident of the city per year for twenty (20) consecutiveyears.
    (e) The resolution establishing the tax area must designate thefacility or proposed facility and the facility site for which the tax areais established.
    (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.20. Amended by P.L.176-2009,SEC.26; P.L.182-2009(ss), SEC.511.

IC 36-7-31.3-11
Review of resolution by budget committee; notice requirements;information to taxing units
    Sec. 11. (a) Upon adoption of a resolution establishing a tax areaunder section 10 of this chapter, the designating body shall submitthe resolution to the budget committee for review and

recommendation to the budget agency.
    (b) Upon adoption of a resolution changing the boundaries of atax area under section 10 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 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.
    (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.20. Amended by P.L.178-2002,SEC.128; P.L.199-2005, SEC.37.

IC 36-7-31.3-12
Approval of resolution by budget agency
    Sec. 12. (a) The budget agency must approve the resolution beforecovered taxes may be allocated under section 10 of this chapter.
    (b) When considering a resolution, the budget committee and thebudget agency must make the following findings:
        (1) The cost of the facility and facility site specified under theresolution exceeds ten thousand dollars ($10,000).
        (2) The capital improvement specified under the resolution iseconomically sound and will benefit the people of Indiana byprotecting or increasing state and local tax bases and taxrevenues for at least the duration of the tax area establishedunder this chapter.
        (3) The political subdivisions affected by the capitalimprovement specified under the resolution have committedsignificant resources towards completion of the improvement.
    (c) Revenues from the tax area may not be allocated until thebudget agency approves the resolution.
As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-13
Notice of adoption of allocation provision
    Sec. 13. When the designating body adopts an allocationprovision, the county auditor shall notify the department by certifiedmail of the adoption of the provision and shall include with the

notification a complete 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 county auditor shall update the list before July 1 of each year.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,SEC.129.

IC 36-7-31.3-14
Professional sports and convention development area fund
    Sec. 14. If a tax area is established under section 10 of thischapter, a state fund known as the professional sports and conventiondevelopment area fund is established for that tax area. The fund shallbe administered by the department. Money in the fund does notrevert to the state general fund at the end of a state fiscal year.
As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-15
Deposit of taxes in fund
    Sec. 15. Covered taxes attributable to a taxing area under section10 of this chapter shall be deposited in the professional sports andconvention development area fund.
As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-16
Distributions from fund
    Sec. 16. On or before the twentieth day of each month, allamounts held in the professional sports and convention developmentarea fund shall be distributed to the county treasurer.
As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-17
Notice of taxes to be distributed to county treasurer or party toagreement under IC 36-7-31.3-8(c)
    Sec. 17. The department shall notify the county auditor of theamount of taxes to be distributed to the county treasurer. For taxareas described in section 8(c) of this chapter, the department shallnotify the county auditor of the amount of taxes to be distributed toeach party to the agreement. The notice must specify the distributionand uses of covered taxes to be allocated under this chapter.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,SEC.130.

IC 36-7-31.3-18
Warrants
    Sec. 18. All distributions from the professional sports andconvention development area fund for the county shall be made bywarrants issued by the auditor of state to the treasurer of stateordering those payments to the county treasurer.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-19
Use of funds
    Sec. 19. The resolution establishing the tax area must designatethe use of the funds. The funds are to be used only for the following:
        (1) Except in a tax area in a city having a population of:
            (A) more than one hundred fifty thousand (150,000) but lessthan five hundred thousand (500,000); or
            (B) more than ninety thousand (90,000) but less than onehundred five thousand (105,000);
        a capital improvement that will construct or equip a facilityowned by the city, the county, a school corporation, or a boardunder IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 andused by a professional sports franchise for practice orcompetitive sporting events. In a tax area to which thissubdivision applies, funds may also be used for a capitalimprovement that will construct or equip a facility owned by thecity, the county, or a board under IC 36-9-13, IC 36-10-8,IC 36-10-10, or IC 36-10-11 and used for any purpose specifiedin section 8(a)(2) of this chapter.
        (2) In a city having a population of more than one hundred fiftythousand (150,000) but less than five hundred thousand(500,000), a capital improvement that will construct or equip afacility owned by the city, the county, a school corporation, ora board under IC 36-9-13, IC 36-10-8, IC 36-10-10, orIC 36-10-11 and used for any purpose specified in section 8(a)of this chapter.
        (3) In a city having a population of more than ninety thousand(90,000) but less than one hundred five thousand (105,000), acapital improvement that will construct or equip a facilityowned by the city, the county, or a board under IC 36-9-13,IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used for anypurpose specified in section 8(a)(1) or 8(a)(2) of this chapter.
        (4) The financing or refinancing of a capital improvementdescribed in subdivision (1), (2), or (3) or the payment of leasepayments for a capital improvement described in subdivision(1), (2), or (3).
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,SEC.131; P.L.64-2004, SEC.37.

IC 36-7-31.3-20
Repayments to fund
    Sec. 20. The designating body shall repay to the professionalsports development area fund any amount that is distributed to thedesignating body and used for:
        (1) a purpose that is not described in 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 10 of this chapter.
The department shall distribute the covered taxes repaid to theprofessional sports development area fund under this section

proportionately 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.20. Amended by P.L.178-2002,SEC.132.

IC 36-7-31.3-21
Expiration of chapter
    Sec. 21. This chapter expires December 31, 2027.
As added by P.L.255-1997(ss), SEC.20.