CHAPTER 12.4. INVESTMENT DEDUCTION
IC 6-1.1-12.4
Chapter 12.4. Investment Deduction
IC 6-1.1-12.4-1
"Official"
Sec. 1. For purposes of this chapter, "official" means:
(1) a county auditor;
(2) a county assessor; or
(3) a township assessor (if any).
As added by P.L.193-2005, SEC.8. Amended by P.L.146-2008,SEC.129.
IC 6-1.1-12.4-2
Applicability of deduction entitlement; calculation of deductionamount; filing requirements; adjustments
Sec. 2. (a) For purposes of this section, an increase in the assessedvalue of real property is determined in the same manner that anincrease in the assessed value of real property is determined forpurposes of IC 6-1.1-12.1.
(b) This subsection applies only to a development, redevelopment,or rehabilitation that is first assessed after March 1, 2005, and beforeMarch 2, 2007. Except as provided in subsection (h) and sections 4,5, and 8 of this chapter, an owner of real property that:
(1) develops, redevelops, or rehabilitates the real property; and
(2) creates or retains employment from the development,redevelopment, or rehabilitation;
is entitled to a deduction from the assessed value of the real property.
(c) Subject to section 14 of this chapter, the deduction under thissection is first available in the year in which the increase in assessedvalue resulting from the development, redevelopment, orrehabilitation occurs and continues for the following two (2) years.The amount of the deduction that a property owner may receive withrespect to real property located in a county for a particular yearequals the lesser of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from thedevelopment, rehabilitation, or redevelopment; multiplied by
(B) the percentage from the following table:
YEAR OF DEDUCTION PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) A property owner that qualifies for the deduction under thissection must file a notice to claim the deduction in the mannerprescribed by the department of local government finance under rulesadopted by the department of local government finance underIC 4-22-2 to implement this chapter. The township assessor, or thecounty assessor if there is no township assessor for the township,shall: (1) inform the county auditor of the real property eligible for thededuction as contained in the notice filed by the taxpayer underthis subsection; and
(2) inform the county auditor of the deduction amount.
(e) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appealsof all deductions approved;
under this section.
(f) The amount of the deduction determined under subsection(c)(2) is adjusted to reflect the percentage increase or decrease inassessed valuation that results from:
(1) a general reassessment of real property under IC 6-1.1-4-4;or
(2) an annual adjustment under IC 6-1.1-4-4.5.
(g) If an appeal of an assessment is approved that results in areduction of the assessed value of the real property, the amount ofthe deduction under this section is adjusted to reflect the percentagedecrease that results from the appeal.
(h) The deduction under this section does not apply to a facilitylisted in IC 6-1.1-12.1-3(e).
As added by P.L.193-2005, SEC.8. Amended by P.L.219-2007,SEC.34; P.L.234-2007, SEC.38; P.L.3-2008, SEC.38; P.L.146-2008,SEC.130.
IC 6-1.1-12.4-3
Eligibility; deduction amount; period of deduction; deductionclaim; limitations
Sec. 3. (a) For purposes of this section, an increase in the assessedvalue of personal property is determined in the same manner that anincrease in the assessed value of new manufacturing equipment isdetermined for purposes of IC 6-1.1-12.1.
(b) This subsection applies only to personal property that theowner purchases after March 1, 2005, and before March 2, 2007.Except as provided in sections 4, 5, and 8 of this chapter, an ownerthat purchases personal property that:
(1) was never before used by its owner for any purpose inIndiana; and
(2) creates or retains employment;
is entitled to a deduction from the assessed value of the personalproperty.
(c) Subject to section 14 of this chapter, the deduction under thissection is first available in the year in which the increase in assessedvalue resulting from the purchase of the personal property occurs andcontinues for the following two (2) years. The amount of thededuction that a property owner may receive with respect to personalproperty located in a county for a particular year equals the lesser of:
(1) two million dollars ($2,000,000); or
(2) the product of:
(A) the increase in assessed value resulting from the
purchase of the personal property; multiplied by
(B) the percentage from the following table:
YEAR OF DEDUCTION PERCENTAGE
1st 75%
2nd 50%
3rd 25%
(d) If an appeal of an assessment is approved that results in areduction of the assessed value of the personal property, the amountof the deduction is adjusted to reflect the percentage decrease thatresults from the appeal.
(e) A property owner must claim the deduction under this sectionon the owner's annual personal property tax return. The townshipassessor, or the county assessor if there is no township assessor forthe township, shall:
(1) identify the personal property eligible for the deduction tothe county auditor; and
(2) inform the county auditor of the deduction amount.
(f) The county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appealsof all deductions approved;
under this section.
(g) The deduction under this section does not apply to personalproperty at a facility listed in IC 6-1.1-12.1-3(e).
As added by P.L.193-2005, SEC.8. Amended by P.L.154-2006,SEC.37; P.L.169-2006, SEC.7; P.L.1-2007, SEC.41; P.L.219-2007,SEC.35; P.L.234-2007, SEC.39; P.L.3-2008, SEC.39; P.L.146-2008,SEC.131.
IC 6-1.1-12.4-4
Ineligibility of real and personal property located in allocation area
Sec. 4. A property owner may not receive a deduction under thischapter with respect to real property or personal property located inan allocation area (as defined in IC 6-1.1-21.2-3).
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-5
Additional deductions for property prohibited
Sec. 5. A property owner that qualifies for a deduction for a yearunder this chapter and another statute with respect to the same:
(1) real property development, redevelopment, or rehabilitation;or
(2) personal property purchase;
may not receive a deduction under both statutes for the development,redevelopment, rehabilitation, or purchase for that year.
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-6
Official review of job creation and job retention criteria; notice ofhearing Sec. 6. An official may:
(1) review the creation or retention of employment from:
(A) the development, redevelopment, or rehabilitation of realproperty; or
(B) the purchase of personal property;
that qualifies a property owner for a deduction under thischapter;
(2) determine whether the creation or retention of employmentdescribed in subdivision (1) has occurred; and
(3) if the official determines under subdivision (2) that:
(A) the creation or retention of employment described insubdivision (1) has not occurred; and
(B) the failure to create or retain employment was not causedby factors beyond the control of the property owner (such asdeclines in demand for the property owner's products orservices);
mail a written notice to the property owner of a hearing on thetermination of the deduction under this chapter.
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-7
Notice of hearing requirements
Sec. 7. The written notice under section 6(3) of this chapter mustinclude the following:
(1) An explanation of the reasons for the determination that thecreation or retention of employment described in section 6(1)of this chapter has not occurred.
(2) The date, time, and place of a hearing to be conducted:
(A) by the official; and
(B) not more than thirty (30) days after the date of the noticeunder section 6(3) of this chapter;
to further consider the property owner's creation or retention ofemployment as described in section 6(1) of this chapter.
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-8
Hearing requirements; termination of deduction
Sec. 8. On the date specified in the notice described in section6(3) of this chapter, the official shall conduct a hearing for thepurpose of further considering the property owner's creation orretention of employment as described in section 6(1) of this chapter.Based on the information presented at the hearing by the propertyowner and other interested parties, the official shall determinewhether the property owner has made reasonable efforts to create orretain employment as described in section 6(1) of this chapter andwhether any failure to create or retain employment was caused byfactors beyond the control of the property owner. If the officialdetermines that the property owner has not made reasonable effortsto create or retain employment, the official shall determine that theproperty owner's deduction under this chapter is terminated. If the
official terminates the deduction, the deduction does not apply to:
(1) the next installment of property taxes owed by the propertyowner; or
(2) any subsequent installment of property taxes.
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-9
Notice of termination
Sec. 9. If an official terminates a deduction under section 8 of thischapter:
(1) the official shall immediately mail a certified copy of thedetermination to:
(A) the property owner; and
(B) if the determination is made by the county assessor orthe township assessor (if any), the county auditor;
(2) the county auditor shall:
(A) remove the deduction from the tax duplicate; and
(B) notify the county treasurer of the termination of thededuction; and
(3) if the official's determination to terminate the deductionoccurs after the county treasurer has mailed the statementrequired by IC 6-1.1-22-8.1, the county treasurer shallimmediately mail the property owner a revised statement thatreflects the termination of the deduction.
As added by P.L.193-2005, SEC.8. Amended by P.L.3-2008, SEC.40;P.L.146-2008, SEC.132.
IC 6-1.1-12.4-10
Appeal of termination
Sec. 10. A property owner whose deduction is terminated undersection 8 of this chapter may appeal the official's decision by filinga complaint in the office of the clerk of the circuit or superior courttogether with a bond conditioned to pay the costs of the appeal if theappeal is determined against the property owner. The court shall:
(1) hear an appeal under this section promptly without a jury;and
(2) determine the appeal not later than thirty (30) days after thedate of the filing of the appeal.
The judgment of the court is final and conclusive unless an appeal istaken as in other civil actions.
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-11
Taxes not due while appeal pending
Sec. 11. If an appeal under section 10 of this chapter is pending,the taxes resulting from the termination of the deduction are not dueuntil after the appeal is finally adjudicated and the termination of thededuction is finally determined.
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-12
Change of ownership
Sec. 12. If ownership of the real property or new personalproperty changes, the deduction under this chapter continues to applyto the real property or personal property, and the amount ofdeduction is the product of:
(1) the percentage under section 2(c)(2)(B) or 3(c)(2)(B) of thischapter that would have applied if the ownership of the propertyhad not changed; multiplied by
(2) the assessed value of the real property or personal propertyfor the year the new owner qualifies for the deduction.
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-13
Department of local government finance rulemaking
Sec. 13. The department of local government finance shall adoptrules under IC 4-22-2 to implement this chapter.
As added by P.L.193-2005, SEC.8.
IC 6-1.1-12.4-14
Correction of error in deduction amount
Sec. 14. If:
(1) as the result of an error the county auditor applies adeduction under this chapter for a particular assessment date inan amount that is less than the amount to which the taxpayer isentitled under this chapter; and
(2) the taxpayer is entitled to a correction of the error under thisarticle;
the county auditor shall apply the correction of the error in themanner that corrections are applied under IC 6-1.1-12.1-15.
As added by P.L.219-2007, SEC.36.