CHAPTER 12.1. DEDUCTION FOR REHABILITATION OR REDEVELOPMENT OF REAL PROPERTY IN ECONOMIC REVITALIZATION AREAS
IC 6-1.1-12.1
Chapter 12.1. Deduction for Rehabilitation or Redevelopment ofReal Property in Economic Revitalization Areas
IC 6-1.1-12.1-1
Definitions
Sec. 1. For purposes of this chapter:
(1) "Economic revitalization area" means an area which iswithin the corporate limits of a city, town, or county which hasbecome undesirable for, or impossible of, normal developmentand occupancy because of a lack of development, cessation ofgrowth, deterioration of improvements or character ofoccupancy, age, obsolescence, substandard buildings, or otherfactors which have impaired values or prevent a normaldevelopment of property or use of property. The term"economic revitalization area" also includes:
(A) any area where a facility or a group of facilities that aretechnologically, economically, or energy obsolete arelocated and where the obsolescence may lead to a decline inemployment and tax revenues; and
(B) a residentially distressed area, except as otherwiseprovided in this chapter.
(2) "City" means any city in this state, and "town" means anytown incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means tangible personalproperty that a deduction applicant:
(A) installs after February 28, 1983, and on or before theapproval deadline determined under section 9 of this chapter,in an area that is declared an economic revitalization areaafter February 28, 1983, in which a deduction for tangiblepersonal property is allowed;
(B) uses in the direct production, manufacture, fabrication,assembly, extraction, mining, processing, refining, orfinishing of other tangible personal property, including butnot limited to use to dispose of solid waste or hazardouswaste by converting the solid waste or hazardous waste intoenergy or other useful products;
(C) acquires for use as described in clause (B):
(i) in an arms length transaction from an entity that is notan affiliate of the deduction applicant, if the tangiblepersonal property has been previously used in Indianabefore the installation described in clause (A); or
(ii) in any manner, if the tangible personal property hasnever been previously used in Indiana before theinstallation described in clause (A); and
(D) has never used for any purpose in Indiana before theinstallation described in clause (A).
However, notwithstanding any other law, the term includestangible personal property that is used to dispose of solid wasteor hazardous waste by converting the solid waste or hazardous
waste into energy or other useful products and was installedafter March 1, 1993, and before March 2, 1996, even if theproperty was installed before the area where the property islocated was designated as an economic revitalization area or thestatement of benefits for the property was approved by thedesignating body.
(4) "Property" means a building or structure, but does notinclude land.
(5) "Redevelopment" means the construction of new structures,in economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure isdemolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or bettermentof property in any manner or any enlargement or extension ofproperty.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city,the fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, themetropolitan development commission.
(8) "Deduction application" means:
(A) the application filed in accordance with section 5 of thischapter by a property owner who desires to obtain thededuction provided by section 3 of this chapter;
(B) the application filed in accordance with section 5.4 ofthis chapter by a person who desires to obtain the deductionprovided by section 4.5 of this chapter; or
(C) the application filed in accordance with section 5.3 ofthis chapter by a property owner that desires to obtain thededuction provided by section 4.8 of this chapter.
(9) "Designation application" means an application that is filedwith a designating body to assist that body in making adetermination about whether a particular area should bedesignated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth inIC 13-11-2-99(a). The term includes waste determined to be ahazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth inIC 13-11-2-205(a). However, the term does not include deadanimals or any animal solid or semisolid wastes.
(12) "New research and development equipment" meanstangible personal property that:
(A) a deduction applicant installs after June 30, 2000, and onor before the approval deadline determined under section 9of this chapter, in an economic revitalization area in whicha deduction for tangible personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment; (iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) the deduction applicant uses in research anddevelopment activities devoted directly and exclusively toexperimental or laboratory research and development fornew products, new uses of existing products, or improvingor testing existing products;
(D) the deduction applicant acquires for purposes describedin this subdivision:
(i) in an arms length transaction from an entity that is notan affiliate of the deduction applicant, if the tangiblepersonal property has been previously used in Indianabefore the installation described in clause (A); or
(ii) in any manner, if the tangible personal property hasnever been previously used in Indiana before theinstallation described in clause (A); and
(E) the deduction applicant has never used for any purposein Indiana before the installation described in clause (A).
The term does not include equipment installed in facilities usedfor or in connection with efficiency surveys, managementstudies, consumer surveys, economic surveys, advertising orpromotion, or research in connection with literacy, history, orsimilar projects.
(13) "New logistical distribution equipment" means tangiblepersonal property that:
(A) a deduction applicant installs after June 30, 2004, and onor before the approval deadline determined under section 9of this chapter, in an economic revitalization area in whicha deduction for tangible personal property is allowed;
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) fork lifts or lifting equipment (including "walkbehinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical distribution;
(C) the deduction applicant acquires for the storage ordistribution of goods, services, or information:
(i) in an arms length transaction from an entity that is notan affiliate of the deduction applicant, if the tangiblepersonal property has been previously used in Indianabefore the installation described in clause (A); and
(ii) in any manner, if the tangible personal property hasnever been previously used in Indiana before theinstallation described in clause (A); and (D) the deduction applicant has never used for any purposein Indiana before the installation described in clause (A).
(14) "New information technology equipment" means tangiblepersonal property that:
(A) a deduction applicant installs after June 30, 2004, and onor before the approval deadline determined under section 9of this chapter, in an economic revitalization area in whicha deduction for tangible personal property is allowed;
(B) consists of equipment, including software, used in thefields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics;
(C) the deduction applicant acquires in an arms lengthtransaction from an entity that is not an affiliate of thededuction applicant; and
(D) the deduction applicant never used for any purpose inIndiana before the installation described in clause (A).
(15) "Deduction applicant" means an owner of tangible personalproperty who makes a deduction application.
(16) "Affiliate" means an entity that effectively controls or iscontrolled by a deduction applicant or is associated with adeduction applicant under common ownership or control,whether by shareholdings or other means.
(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the ownerof the building or a tenant of the owner occupies thebuilding, as evidenced by a valid certificate of occupancy,paid utility receipts, executed lease agreements, or any otherevidence of occupation that the department of localgovernment finance requires.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,P.L.56, SEC.5; Acts 1980, P.L.42, SEC.1; Acts 1981, P.L.72, SEC.1;P.L.71-1983, SEC.1; P.L.56-1988, SEC.1; P.L.47-1990, SEC.2;P.L.42-1992, SEC.1; P.L.18-1992, SEC.21; P.L.25-1995, SEC.17;P.L.1-1996, SEC.39; P.L.4-2000, SEC.1; P.L.64-2004, SEC.4 andP.L.81-2004, SEC.48; P.L.216-2005, SEC.1; P.L.154-2006, SEC.24;P.L.219-2007, SEC.28; P.L.224-2007, SEC.4.
IC 6-1.1-12.1-2
Findings by designating body; economic revitalization area;residentially distressed area; conditions; property tax deductions;fees
Sec. 2. (a) A designating body may find that a particular areawithin its jurisdiction is an economic revitalization area. However,
the deduction provided by this chapter for economic revitalizationareas not within a city or town shall not be available to retailbusinesses.
(b) In a county containing a consolidated city or within a city ortown, a designating body may find that a particular area within itsjurisdiction is a residentially distressed area. Designation of an areaas a residentially distressed area has the same effect as designatingan area as an economic revitalization area, except that the amount ofthe deduction shall be calculated as specified in section 4.1 of thischapter and the deduction is allowed for not more than five (5) years.In order to declare a particular area a residentially distressed area, thedesignating body must follow the same procedure that is required todesignate an area as an economic revitalization area and must makeall the following additional findings or all the additional findingsdescribed in subsection (c):
(1) The area is comprised of parcels that are either unimprovedor contain only one (1) or two (2) family dwellings ormultifamily dwellings designed for up to four (4) families,including accessory buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied andare:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 andIC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than twohundred thousand (200,000) but less than three hundred thousand(300,000), the designating body is only required to make one (1) ofthe additional findings described in this subsection or one (1) of theadditional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city ortown, a designating body that wishes to designate a particular area aresidentially distressed area may make the following additionalfindings as an alternative to the additional findings described insubsection (b):
(1) A significant number of dwelling units within the area arenot permanently occupied or a significant number of parcels inthe area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number ofdwelling units, as documented by census information, localbuilding and demolition permits, or certificates of occupancy,or the area is owned by Indiana or the United States.
(4) The area (plus any areas previously designated under thissubsection) will not exceed ten percent (10%) of the total areawithin the designating body's jurisdiction.However, in a city in a county having a population of more than twohundred thousand (200,000) but less than three hundred thousand(300,000), the designating body is only required to make one (1) ofthe additional findings described in this subsection as an alternativeto one (1) of the additional findings described in subsection (b).
(d) A designating body is required to attach the followingconditions to the grant of a residentially distressed area designation:
(1) The deduction will not be allowed unless the dwelling isrehabilitated to meet local code standards for habitability.
(2) If a designation application is filed, the designating bodymay require that the redevelopment or rehabilitation becompleted within a reasonable period of time.
(e) To make a designation described in subsection (a) or (b), thedesignating body shall use procedures prescribed in section 2.5 ofthis chapter.
(f) The property tax deductions provided by section 3, 4.5, or 4.8of this chapter are only available within an area which thedesignating body finds to be an economic revitalization area.
(g) The designating body may adopt a resolution establishinggeneral standards to be used, along with the requirements set forth inthe definition of economic revitalization area, by the designatingbody in finding an area to be an economic revitalization area. Thestandards must have a reasonable relationship to the developmentobjectives of the area in which the designating body has jurisdiction.The following four (4) sets of standards may be established:
(1) One (1) relative to the deduction under section 3 of thischapter for economic revitalization areas that are notresidentially distressed areas.
(2) One (1) relative to the deduction under section 3 of thischapter for residentially distressed areas.
(3) One (1) relative to the deduction allowed under section 4.5of this chapter.
(4) One (1) relative to the deduction allowed under section 4.8of this chapter.
(h) A designating body may impose a fee for filing a designationapplication for a person requesting the designation of a particulararea as an economic revitalization area. The fee may be sufficient todefray actual processing and administrative costs. However, the feecharged for filing a designation application for a parcel that containsone (1) or more owner-occupied, single-family dwellings may notexceed the cost of publishing the required notice.
(i) In declaring an area an economic revitalization area, thedesignating body may:
(1) limit the time period to a certain number of calendar yearsduring which the economic revitalization area shall be sodesignated;
(2) limit the type of deductions that will be allowed within theeconomic revitalization area to the deduction allowed undersection 3 of this chapter, the deduction allowed under section4.5 of this chapter, the deduction allowed under section 4.8 of
this chapter, or any combination of these deductions;
(3) limit the dollar amount of the deduction that will be allowedwith respect to new manufacturing equipment, new researchand development equipment, new logistical distributionequipment, and new information technology equipment if adeduction under this chapter had not been filed before July 1,1987, for that equipment;
(4) limit the dollar amount of the deduction that will be allowedwith respect to redevelopment and rehabilitation occurring inareas that are designated as economic revitalization areas on orafter September 1, 1988;
(5) limit the dollar amount of the deduction that will be allowedunder section 4.8 of this chapter with respect to the occupationof an eligible vacant building; or
(6) impose reasonable conditions related to the purpose of thischapter or to the general standards adopted under subsection (g)for allowing the deduction for the redevelopment orrehabilitation of the property or the installation of the newmanufacturing equipment, new research and developmentequipment, new logistical distribution equipment, or newinformation technology equipment.
To exercise one (1) or more of these powers, a designating bodymust include this fact in the resolution passed under section 2.5 ofthis chapter.
(j) Notwithstanding any other provision of this chapter, if adesignating body limits the time period during which an area is aneconomic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for newmanufacturing equipment, new research and developmentequipment, new logistical distribution equipment, or newinformation technology equipment installed on or before theapproval deadline determined under section 9 of this chapter,but after the expiration of the economic revitalization area if:
(A) the economic revitalization area designation expiresafter December 30, 1995; and
(B) the new manufacturing equipment, new research anddevelopment equipment, new logistical distributionequipment, or new information technology equipment wasdescribed in a statement of benefits submitted to andapproved by the designating body in accordance with section4.5 of this chapter before the expiration of the economicrevitalization area designation; or
(2) limit the length of time a taxpayer is entitled to receive adeduction to a number of years that is less than the number ofyears designated under section 4, 4.5, or 4.8 of this chapter.
(k) Notwithstanding any other provision of this chapter,deductions:
(1) that are authorized under section 3 of this chapter forproperty in an area designated as an urban development areabefore March 1, 1983, and that are based on an increase in
assessed valuation resulting from redevelopment orrehabilitation that occurs before March 1, 1983; or
(2) that are authorized under section 4.5 of this chapter for newmanufacturing equipment installed in an area designated as anurban development area before March 1, 1983;
apply according to the provisions of this chapter as they existed atthe time that an application for the deduction was first made. Nodeduction that is based on the location of property or newmanufacturing equipment in an urban development area is authorizedunder this chapter after February 28, 1983, unless the initial increasein assessed value resulting from the redevelopment or rehabilitationof the property or the installation of the new manufacturingequipment occurred before March 1, 1983.
(l) In addition to the other requirements of this chapter, if propertylocated in an economic revitalization area is also located in anallocation area (as defined in IC 36-7-14-39 or IC 36-7-15.1-26), ataxpayer's statement of benefits concerning that property may not beapproved under this chapter unless a resolution approving thestatement of benefits is adopted by the legislative body of the unitthat approved the designation of the allocation area.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,P.L.56, SEC.6; Acts 1980, P.L.42, SEC.2; Acts 1981, P.L.310,SEC.91; P.L.72-1983, SEC.1; P.L.71-1983, SEC.2; P.L.82-1987,SEC.1; P.L.56-1988, SEC.2; P.L.3-1989, SEC.33; P.L.42-1992,SEC.2; P.L.65-1993, SEC.1; P.L.31-1994, SEC.3; P.L.85-1995,SEC.1; P.L.255-1997(ss), SEC.5; P.L.4-2000, SEC.2; P.L.64-2004,SEC.5 and P.L.81-2004, SEC.49; P.L.216-2005, SEC.2;P.L.154-2006, SEC.25; P.L.146-2008, SEC.121.
IC 6-1.1-12.1-2.3
Repealed
(Repealed by P.L.216-2005, SEC.9.)
IC 6-1.1-12.1-2.5
Economic revitalization area; maps; boundaries; resolution;notice; determination; appeal
Sec. 2.5. (a) If a designating body finds that an area in itsjurisdiction is an economic revitalization area, it shall either:
(1) prepare maps and plats that identify the area; or
(2) prepare a simplified description of the boundaries of thearea by describing its location in relation to public ways,streams, or otherwise.
(b) After the compilation of the materials described in subsection(a), the designating body shall pass a resolution declaring the area aneconomic revitalization area. The resolution must contain adescription of the affected area and be filed with the county assessor.A resolution adopted after June 30, 2000, may include adetermination of the number of years a deduction under section 3,4.5, or 4.8 of this chapter is allowed.
(c) After approval of a resolution under subsection (b), the
designating body shall do the following:
(1) Publish notice of the adoption and substance of theresolution in accordance with IC 5-3-1.
(2) File the following information with each taxing unit that hasauthority to levy property taxes in the geographic area wherethe economic revitalization area is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement containing substantially the sameinformation as a statement of benefits filed with thedesignating body before the hearing required by this sectionunder section 3, 4.5, or 4.8 of this chapter.
The notice must state that a description of the affected area isavailable and can be inspected in the county assessor's office. Thenotice must also name a date when the designating body will receiveand hear all remonstrances and objections from interested persons.The designating body shall file the information required bysubdivision (2) with the officers of the taxing unit who areauthorized to fix budgets, tax rates, and tax levies underIC 6-1.1-17-5 at least ten (10) days before the date of the publichearing. After considering the evidence, the designating body shalltake final action determining whether the qualifications for aneconomic revitalization area have been met and confirming,modifying and confirming, or rescinding the resolution. Thisdetermination is final except that an appeal may be taken and heardas provided under subsections (d) and (e).
(d) A person who filed a written remonstrance with thedesignating body under this section and who is aggrieved by the finalaction taken may, within ten (10) days after that final action, initiatean appeal of that action by filing in the office of the clerk of thecircuit or superior court a copy of the order of the designating bodyand the person's remonstrance against that order, together with theperson's bond conditioned to pay the costs of the person's appeal ifthe appeal is determined against the person. The only ground ofappeal that the court may hear is whether the proposed project willmeet the qualifications of the economic revitalization area law. Theburden of proof is on the appellant.
(e) An appeal under this section shall be promptly heard by thecourt without a jury. All remonstrances upon which an appeal hasbeen taken shall be consolidated and heard and determined withinthirty (30) days after the time of the filing of the appeal. The courtshall hear evidence on the appeal, and may confirm the final actionof the designating body or sustain the appeal. The judgment of thecourt is final and conclusive, unless an appeal is taken as in othercivil actions.
As added by P.L.71-1983, SEC.3. Amended by P.L.62-1986, SEC.1;P.L.56-1988, SEC.3; P.L.3-1989, SEC.34; P.L.56-1991, SEC.1;P.L.25-1995, SEC.18; P.L.4-2000, SEC.3; P.L.154-2006, SEC.26.
IC 6-1.1-12.1-3
Statement of benefits; form; findings; period of deduction;
resolution; excluded facilities
Sec. 3. (a) An applicant must provide a statement of benefits tothe designating body. If the designating body requires informationfrom the applicant for economic revitalization area status for use inmaking its decision about whether to designate an economicrevitalization area, the applicant shall provide the completedstatement of benefits form to the designating body before the hearingrequired by section 2.5(c) of this chapter. Otherwise, the statementof benefits form must be submitted to the designating body beforethe initiation of the redevelopment or rehabilitation for which theperson desires to claim a deduction under this chapter. Thedepartment of local government finance shall prescribe a form for thestatement of benefits. The statement of benefits must include thefollowing information:
(1) A description of the proposed redevelopment orrehabilitation.
(2) An estimate of the number of individuals who will beemployed or whose employment will be retained by the personas a result of the redevelopment or rehabilitation and anestimate of the annual salaries of these individuals.
(3) An estimate of the value of the redevelopment orrehabilitation.
With the approval of the designating body, the statement of benefitsmay be incorporated in a designation application. Notwithstandingany other law, a statement of benefits is a public record that may beinspected and copied under IC 5-14-3-3.
(b) The designating body must review the statement of benefitsrequired under subsection (a). The designating body shall determinewhether an area should be designated an economic revitalization areaor whether a deduction should be allowed, based on (and after it hasmade) the following findings:
(1) Whether the estimate of the value of the redevelopment orrehabilitation is reasonable for projects of that nature.
(2) Whether the estimate of the number of individuals who willbe employed or whose employment will be retained can bereasonably expected to result from the proposed describedredevelopment or rehabilitation.
(3) Whether the estimate of the annual salaries of thoseindividuals who will be employed or whose employment will beretained can be reasonably expected to result from the proposeddescribed redevelopment or rehabilitation.
(4) Whether any other benefits about which information wasrequested are benefits that can be reasonably expected to resultfrom the proposed described redevelopment or rehabilitation.
(5) Whether the totality of benefits is sufficient to justify thededuction.
A designating body may not designate an area an economicrevitalization area or approve a deduction unless the findingsrequired by this subsection are made in the affirmative.
(c) Except as provided in subsections (a) through (b), the owner
of property which is located in an economic revitalization area isentitled to a deduction from the assessed value of the property. If thearea is a residentially distressed area, the period is not more than five(5) years. For all other economic revitalization areas designatedbefore July 1, 2000, the period is three (3), six (6), or ten (10) years.For all economic revitalization areas designated after June 30, 2000,the period is the number of years determined under subsection (d).The owner is entitled to a deduction if:
(1) the property has been rehabilitated; or
(2) the property is located on real estate which has beenredeveloped.
The owner is entitled to the deduction for the first year, and anysuccessive year or years, in which an increase in assessed valueresulting from the rehabilitation or redevelopment occurs and for thefollowing years determined under subsection (d). However, propertyowners who had an area designated an urban development areapursuant to an application filed prior to January 1, 1979, are onlyentitled to a deduction for a five (5) year period. In addition, propertyowners who are entitled to a deduction under this chapter pursuantto an application filed after December 31, 1978, and before January1, 1986, are entitled to a deduction for a ten (10) year period.
(d) For an area designated as an economic revitalization area afterJune 30, 2000, that is not a residentially distressed area, thedesignating body shall determine the number of years for which theproperty owner is entitled to a deduction. However, the deductionmay not be allowed for more than ten (10) years. This determinationshall be made:
(1) as part of the resolution adopted under section 2.5 of thischapter; or
(2) by resolution adopted within sixty (60) days after receivinga copy of a property owner's certified deduction applicationfrom the county auditor. A certified copy of the resolution shallbe sent to the county auditor who shall make the deduction asprovided in section 5 of this chapter.
A determination about the number of years the deduction is allowedthat is made under subdivision (1) is final and may not be changedby following the procedure under subdivision (2).
(e) Except for deductions related to redevelopment orrehabilitation of real property in a county containing a consolidatedcity or a deduction related to redevelopment or rehabilitation of realproperty initiated before December 31, 1987, in areas designated aseconomic revitalization areas before that date, a deduction for theredevelopment or rehabilitation of real property may not be approvedfor the following facilities:
(1) Private or commercial golf course.
(2) Country club.
(3) Massage parlor.
(4) Tennis club.
(5) Skating facility (including roller skating, skateboarding, orice skating). (6) Racquet sport facility (including any handball or racquetballcourt).
(7) Hot tub facility.
(8) Suntan facility.
(9) Racetrack.
(10) Any facility the primary purpose of which is:
(A) retail food and beverage service;
(B) automobile sales or service; or
(C) other retail;
unless the facility is located in an economic development targetarea established under section 7 of this chapter.
(11) Residential, unless:
(A) the facility is a multifamily facility that contains at leasttwenty percent (20%) of the units available for use by lowand moderate income individuals;
(B) the facility is located in an economic development targetarea established under section 7 of this chapter; or
(C) the area is designated as a residentially distressed area.
(12) A package liquor store that holds a liquor dealer's permitunder IC 7.1-3-10 or any other entity that is required to operateunder a license issued under IC 7.1. This subdivision does notapply to an applicant that:
(A) was eligible for tax abatement under this chapter beforeJuly 1, 1995;
(B) is described in IC 7.1-5-7-11; or
(C) operates a facility under:
(i) a beer wholesaler's permit under IC 7.1-3-3;
(ii) a liquor wholesaler's permit under IC 7.1-3-8; or
(iii) a wine wholesaler's permit under IC 7.1-3-13;
for which the applicant claims a deduction under thischapter.
(f) This subsection applies only to a county having a populationof more than two hundred thousand (200,000) but less than threehundred thousand (300,000). Notwithstanding subsection (e)(11), ina county subject to this subsection a designating body may, beforeSeptember 1, 2000, approve a deduction under this chapter for theredevelopment or rehabilitation of real property consisting ofresidential facilities that are located in unincorporated areas of thecounty if the designating body makes a finding that the facilities areneeded to serve any combination of the following:
(1) Elderly persons who are predominately low-income ormoderate-income persons.
(2) Persons with a disability.
A designating body may adopt an ordinance approving a deductionunder this subsection only one (1) time. This subsection expiresJanuary 1, 2011.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,P.L.56, SEC.7; P.L.71-1983, SEC.4; P.L.62-1985, SEC.1;P.L.62-1986, SEC.2; P.L.82-1987, SEC.2; P.L.56-1988, SEC.4;P.L.65-1993, SEC.2; P.L.25-1995, SEC.19; P.L.4-2000, SEC.4;
P.L.126-2000, SEC.5; P.L.198-2001, SEC.38; P.L.90-2002,SEC.118; P.L.72-2004, SEC.2; P.L.99-2007, SEC.25.
IC 6-1.1-12.1-4
Annual deduction; amount; percentage; period of deduction; effectof reassessment
Sec. 4. (a) Except as provided in section 2(i)(4) of this chapter,and subject to section 15 of this chapter, the amount of the deductionwhich the property owner is entitled to receive under section 3 of thischapter for a particular year equals the product of:
(1) the increase in the assessed value resulting from therehabilitation or redevelopment; multiplied by
(2) the percentage prescribed in the table set forth in subsection(d).
(b) The amount of the deduction determined under subsection (a)shall be adjusted in accordance with this subsection in the followingcircumstances:
(1) If a general reassessment of real property occurs within theparticular period of the deduction, the amount determined undersubsection (a)(1) shall be adjusted to reflect the percentageincrease or decrease in assessed valuation that resulted from thegeneral reassessment.
(2) If an appeal of an assessment is approved that results in areduction of the assessed value of the redeveloped orrehabilitated property, the amount of any deduction shall beadjusted to reflect the percentage decrease that resulted fromthe appeal.
The department of local government finance shall adopt rules underIC 4-22-2 to implement this subsection.
(c) Property owners who had an area designated an urbandevelopment area pursuant to an application filed prior to January 1,1979, are only entitled to the deduction for the first through the fifthyears as provided in subsection (d)(10). In addition, property ownerswho are entitled to a deduction under this chapter pursuant to anapplication filed after December 31, 1978, and before January 1,1986, are entitled to a deduction for the first through the tenth years,as provided in subsection (d)(10).
(d) The percentage to be used in calculating the deduction undersubsection (a) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 50%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 66% 3rd 33%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 17%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33% 8th 22%
9th 11%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 95%
3rd 80%
4th 65%
5th 50%
6th 40%
7th 30%
8th 20% 9th 10% 10th 5%
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,P.L.56, SEC.8; Acts 1981, P.L.72, SEC.2; P.L.62-1985, SEC.2;P.L.57-1988, SEC.1; P.L.3-1989, SEC.35; P.L.332-1989(ss),SEC.11; P.L.65-1993, SEC.3; P.L.4-2000, SEC.5; P.L.90-2002,SEC.119; P.L.219-2007, SEC.29.
IC 6-1.1-12.1-4.1
Application of sections; residentially distressed areas; deductionallowed
Sec. 4.1. (a) Section 4 of this chapter applies to economicrevitalization areas that are not residentially distressed areas.
(b) This subsection applies to economic revitalization areas thatare residentially distressed areas. Subject to section 15 of thischapter, the amount of the deduction that a property owner is entitledto receive under section 3 of this chapter for a particular year equalsthe lesser of:
(1) the assessed value of the improvement to the property afterthe rehabilitation or redevelopment has occurred; or
(2) the following amount:
TYPE OF DWELLING AMOUNT
One (1) family dwelling $74,880
Two (2) family dwelling $106,080
Three (3) unit multifamily dwelling $156,000
Four (4) unit multifamily dwelling $199,680
As added by P.L.56-1988, SEC.5. Amended by P.L.3-1989, SEC.36;P.L.65-1993, SEC.4; P.L.6-1997, SEC.58; P.L.20-2004, SEC.9;P.L.219-2007, SEC.30.
IC 6-1.1-12.1-4.5
Statement of benefits; findings by designating body; deductionperiods, amounts, and limitations
Sec. 4.5. (a) An applicant must provide a statement of benefits tothe designating body. The applicant must provide the completedstatement of benefits form to the designating body before the hearingspecified in section 2.5(c) of this chapter or before the installation ofthe new manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new informationtechnology equipment for which the person desires to claim adeduction under this chapter. The department of local governmentfinance shall prescribe a form for the statement of benefits. Thestatement of benefits must include the following information:
(1) A description of the new manufacturing equipment, newresearch and development equipment, new logisticaldistribution equipment, or new information technologyequipment that the person proposes to acquire.
(2) With respect to:
(A) new manufacturing equipment not used to dispose ofsolid waste or hazardous waste by converting the solid wasteor hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logisticaldistribution equipment, or new information technologyequipment;
an estimate of the number of individuals who will be employedor whose employment will be retained by the person as a resultof the installation of the new manufacturing equipment, newresearch and development equipment, new logisticaldistribution equipment, or new information technologyequipment and an estimate of the annual salaries of theseindividuals.
(3) An estimate of the cost of the new manufacturingequipment, new research and development equipment, newlogistical distribution equipment, or new informationtechnology equipment.
(4) With respect to new manufacturing equipment used todispose of solid waste or hazardous waste by converting thesolid waste or hazardous waste into energy or other usefulproducts, an estimate of the amount of solid waste or hazardouswaste that will be converted into energy or other usefulproducts by the new manufacturing equipment.
The statement of benefits may be incorporated in a designationapplication. Notwithstanding any other law, a statement of benefitsis a public record that may be inspected and copied underIC 5-14-3-3.
(b) The designating body must review the statement of benefitsrequired under subsection (a). The designating body shall determinewhether an area should be designated an economic revitalization areaor whether the deduction shall be allowed, based on (and after it hasmade) the following findings:
(1) Whether the estimate of the cost of the new manufacturingequipment, new research and development equipment, newlogistical distribution equipment, or new informationtechnology equipment is reasonable for equipment of that type.
(2) With respect to:
(A) new manufacturing equipment not used to dispose ofsolid waste or hazardous waste by converting the solid wasteor hazardous waste into energy or other useful products; and (B) new research and development equipment, new logisticaldistribution equipment, or new information technologyequipment;
whether the estimate of the number of individuals who will beemployed or whose employment will be retained can bereasonably expected to result from the installation of the newmanufacturing equipment, new research and developmentequipment, new logistical distribution equipment, or newinformation technology equipment.
(3) Whether the estimate of the annual salaries of thoseindividuals who will be employed or whose employment will beretained can be reasonably expected to result from the proposedinstallation of new manufacturing equipment, new research anddevelopment equipment, new logistical distribution equipment,or new information technology equipment.
(4) With respect to new manufacturing equipment used todispose of solid waste or hazardous waste by converting thesolid waste or hazardous waste into energy or other usefulproducts, whether the estimate of the amount of solid waste orhazardous waste that will be converted into energy or otheruseful products can be reasonably expected to result from theinstallation of the new manufacturing equipment.
(5) Whether any other benefits about which information wasrequested are benefits that can be reasonably expected to resultfrom the proposed installation of new manufacturingequipment, new research and development equipment, newlogistical distribution equipment, or new informationtechnology equipment.
(6) Whether the totality of benefits is sufficient to justify thededuction.
The designating body may not designate an area an economicrevitalization area or approve the deduction unless it makes thefindings required by this subsection in the affirmative.
(c) Except as provided in subsection (g), and subject to subsection(h) and section 15 of this chapter, an owner of new manufacturingequipment, new research and development equipment, new logisticaldistribution equipment, or new information technology equipmentwhose statement of benefits is approved after June 30, 2000, isentitled to a deduction from the assessed value of that equipment forthe number of years determined by the designating body undersubsection (f). Except as provided in subsection (e) and in section2(i)(3) of this chapter, and subject to subsection (h) and section 15of this chapter, the amount of the deduction that an owner is entitledto for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment,new research and development equipment, new logisticaldistribution equipment, or new information technologyequipment in the year of deduction under the appropriate tableset forth in subsection (d); multiplied by
(2) the percentage prescribed in the appropriate table set forth
in subsection (d).
(d) The percentage to be used in calculating the deduction undersubsection (c) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd and thereafter 0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 50%
3rd and thereafter 0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 66%
3rd 33%
4th and thereafter 0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
5th and thereafter 0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
6th and thereafter 0%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 25%
7th and thereafter 0%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29% 7th 14%
8th and thereafter 0%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
9th and thereafter 0%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
10th and thereafter &n