CHAPTER 40. MARITIME OPPORTUNITY DISTRICTS
IC 6-1.1-40
Chapter 40. Maritime Opportunity Districts
IC 6-1.1-40-1
"Commission" defined
Sec. 1. As used in this chapter, "commission" refers to the portsof Indiana established by IC 8-10-1-3.
As added by P.L.62-1988, SEC.1. Amended by P.L.98-2008, SEC.6.
IC 6-1.1-40-1.5
"Affiliate" defined
Sec. 1.5. As used in this chapter, "affiliate" means an entity thateffectively controls or is controlled by an applicant for a deductionunder this chapter or is associated with an applicant for a deductionunder this chapter under common ownership or control, whether byshareholdings or other means.
As added by P.L.154-2006, SEC.57.
IC 6-1.1-40-2
"District" defined
Sec. 2. As used in this chapter, "district" means a geographicterritory designated as a maritime opportunity district by the ports ofIndiana under section 7 of this chapter.
As added by P.L.62-1988, SEC.1. Amended by P.L.98-2008, SEC.7.
IC 6-1.1-40-3
Repealed
(Repealed by P.L.146-2008, SEC.800.)
IC 6-1.1-40-4
"New manufacturing equipment" defined
Sec. 4. As used in this chapter, "new manufacturing equipment"means any tangible personal property that an applicant for thededuction under section 11 of this chapter:
(1) installs in a district;
(2) uses in the direct production, manufacture, fabrication,assembly, extraction, mining, processing, refining, or finishingof other tangible personal property;
(3) acquires in an arms length transaction from an entity that isnot an affiliate of the applicant for use as described insubdivision (2); and
(4) never used for any purpose in Indiana before the installationdescribed in subdivision (1).
As added by P.L.62-1988, SEC.1. Amended by P.L.154-2006,SEC.58.
IC 6-1.1-40-5
"Redevelopment" defined
Sec. 5. As used in this chapter, "redevelopment" means theconstruction of new structures, in a district, either: (1) on unimproved real estate; or
(2) on real estate upon which a prior existing structure isdemolished to allow for a new construction.
As added by P.L.62-1988, SEC.1.
IC 6-1.1-40-6
"Rehabilitation" defined
Sec. 6. As used in this chapter, "rehabilitation" means theremodeling, repair, or improvement of property in any manner or anyenlargement or extension of property.
As added by P.L.62-1988, SEC.1.
IC 6-1.1-40-7
Designation as district
Sec. 7. (a) The commission may find that a geographic territoryis a maritime opportunity district if the commission determines that:
(1) the territory is located adjacent to a state owned port onstate owned land;
(2) there will be redevelopment or rehabilitation of propertywithin the territory;
(3) the redevelopment or rehabilitation will require a substantialinvestment relative to the size of the business making theinvestment;
(4) the business making an investment will be manufacturinggoods;
(5) more than fifty percent (50%) of the goods manufactured areto be shipped through a port operated by the state and aredestined for international markets;
(6) the business is making a long term commitment to theterritory; and
(7) there will be an increase in the revenue of the port.
(b) To make such a finding, the commission shall use theprocedures prescribed in section 8 of this chapter.
(c) The commission may adopt a resolution establishing generalstandards to be used, along with the requirements set forth insubsection (a). The standards must have a reasonable relationship tothe development objectives of the district.
(d) If a person requests the designation of a territory as a district,the commission may charge an application fee sufficient to defrayactual processing and administrative costs. In declaring a territory tobe a district, the commission may limit the time period to a certainnumber of calendar years during which the district shall be sodesignated. To exercise one (1) or more of these powers, thecommission must include this fact in the resolution passed undersection 8 of this chapter.
(e) If the commission limits the time period during which aterritory will be a district, it does not limit the length of time ataxpayer is entitled to receive a deduction under section 10 of thischapter.
As added by P.L.62-1988, SEC.1.
IC 6-1.1-40-8
Description of district; resolution; remonstrance; appeal
Sec. 8. (a) If the commission finds that a territory is a district, itshall either:
(1) prepare maps and plats that identify the district; or
(2) prepare a simplified description of the boundaries of thedistrict by describing its location in relation to public ways,streams, or otherwise.
(b) After the compilation of the materials described in subsection(a), the commission shall pass a resolution declaring the territory adistrict. The resolution must contain a description of the affecteddistrict and be filed with the county assessor.
(c) After approval of a resolution under subsection (b), thecommission shall publish notice of the adoption and substance of theresolution in accordance with IC 5-3-1. The notice must state that adescription of the affected territory is available and can be inspectedin the county assessor's office. The notice must also name a datewhen the commission will receive and hear all remonstrances andobjections from interested persons. After considering the evidence,the commission shall take final action determining whether thequalifications for a district have been met and confirming, modifyingand confirming, or rescinding the resolution. This determination isfinal except that an appeal may be taken and heard as provided undersubsections (d) and (e).
(d) A person who filed a written remonstrance with thecommission 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 commission anda remonstrance against that order, together with a bond conditionedto pay the costs of appeal if the appeal is determined against theperson. The only ground of appeal that the court may hear is whetherthe proposed project will meet the qualifications of this chapter. 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 commission or sustain the appeal. The judgment of the courtis final and conclusive, unless an appeal is taken as in other civilactions.
As added by P.L.62-1988, SEC.1.
IC 6-1.1-40-9
Manufacturing equipment; statement of benefits; review; findings
Sec. 9. (a) Before a person acquires new manufacturingequipment for which the person wishes to claim a deduction underthis chapter, the person must submit to the commission a statementof benefits, in a form prescribed by the department of local
government finance. The statement of benefits must include thefollowing information:
(1) A description of the new manufacturing equipment that theperson proposes to acquire.
(2) An estimate of the number of individuals who will beemployed or whose employment will be retained by the personas a result of the installation of the new manufacturingequipment and an estimate of the annual salaries of theseindividuals.
(3) An estimate of the cost of the new manufacturingequipment.
(b) The statement of benefits may contain any other informationrequired by the commission. If the person is requesting or will berequesting the designation of a district, the statement of benefits mustbe submitted at the same time as the request for designation issubmitted.
(c) The commission shall review the statement of benefits ifrequired under subsection (b). The commission shall make findingsdetermining whether the estimate of:
(1) the number of individuals who will be employed or whoseemployment will be retained;
(2) the annual salaries of those individuals;
(3) the value of the new manufacturing equipment; and
(4) any other benefits about which the commission requiresinformation;
are benefits that can be reasonably expected to result from theinstallation of the new manufacturing equipment.
As added by P.L.62-1988, SEC.1. Amended by P.L.90-2002,SEC.273; P.L.146-2008, SEC.299.
IC 6-1.1-40-10
Deduction for manufacturing equipment
Sec. 10. (a) Subject to subsection (d), an owner of newmanufacturing equipment whose statement of benefits is approved isentitled to a deduction from the assessed value of that equipment fora period of ten (10) years. Except as provided in subsections (b) and(c), and subject to subsection (d) and section 14 of this chapter, forthe first five (5) years, the amount of the deduction for newmanufacturing equipment that an owner is entitled to for a particularyear equals the assessed value of the new manufacturing equipment.Subject to subsection (d) and section 14 of this chapter, for the sixththrough the tenth year, the amount of the deduction equals theproduct of:
(1) the assessed value of the new manufacturing equipment;multiplied by
(2) the percentage prescribed in the following table:
YEAR OF DEDUCTION PERCENTAGE
6th 100%
7th 95%
8th 80% 9th 65%
10th 50%
11th and thereafter 0%
(b) A deduction under this section is not allowed in the first yearthe deduction is claimed for new manufacturing equipment to theextent that it would cause the assessed value of all of the personalproperty of the owner in the taxing district in which the equipmentis located to be less than the assessed value of all of the personalproperty of the owner in that taxing district in the immediatelypreceding year.
(c) If a deduction is not fully allowed under subsection (b) in thefirst year the deduction is claimed, then the percentages specified insubsection (a) apply in the subsequent years to the amount ofdeduction that was allowed in the first year.
(d) For purposes of subsection (a), the assessed value of newmanufacturing equipment that is part of an owner's assessabledepreciable personal property in a single taxing district subject to thevaluation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is theproduct of:
(1) the assessed value of the equipment determined withoutregard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC5.1-6-9; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the owner'sdepreciable personal property in the taxing district; dividedby
(B) the total true tax value of all of the owner's depreciablepersonal property in the taxing district that is subject to thevaluation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9determined:
(i) under the depreciation schedules in the rules of thedepartment of local government finance before anyadjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50 IAC4.2-4-9 or 50 IAC 5.1-6-9.
As added by P.L.62-1988, SEC.1. Amended by P.L.154-2006,SEC.59; P.L.219-2007, SEC.84; P.L.146-2008, SEC.300.
IC 6-1.1-40-11
Application for deduction; review; change of ownership
Sec. 11. (a) A person that desires to obtain the deduction providedby section 10 of this chapter must file a certified deductionapplication, on forms prescribed by the department of localgovernment finance, with:
(1) the auditor of the county in which the new manufacturingequipment is located; and
(2) the department of local government finance.
A person that timely files a personal property return underIC 6-1.1-3-7(a) for the year in which the new manufacturing
equipment is installed must file the application between March 1 andMay 15 of that year.
(b) The application required by this section must contain thefollowing information:
(1) The name of the owner of the new manufacturingequipment.
(2) A description of the new manufacturing equipment.
(3) Proof of the date the new manufacturing equipment wasinstalled.
(4) The amount of the deduction claimed for the first year of thededuction.
(c) A deduction application must be filed under this section in theyear in which the new manufacturing equipment is installed and ineach of the immediately succeeding nine (9) years.
(d) The department of local government finance shall review andverify the correctness of each application and shall notify the countyauditor of the county in which the property is located that theapplication is approved or denied or that the amount of the deductionis altered. Upon notification of approval of the application or ofalteration of the amount of the deduction, the county auditor shallmake the deduction.
(e) If the ownership of new manufacturing equipment changes, thededuction provided under section 10 of this chapter continues toapply to that equipment if the new owner:
(1) continues to use the equipment in compliance with anystandards established under section 7(c) of this chapter; and
(2) files the applications required by this section.
(f) The amount of the deduction is:
(1) the percentage under section 10 of this chapter that wouldhave applied if the ownership of the property had not changed;multiplied by
(2) the assessed value of the equipment for the year thededuction is claimed by the new owner.
As added by P.L.62-1988, SEC.1. Amended by P.L.1-1993, SEC.37;P.L.198-2001, SEC.94; P.L.146-2008, SEC.301.
IC 6-1.1-40-12
Additional application information; compliance with statement ofbenefits
Sec. 12. In addition to the requirements of section 11(b) of thischapter, an application for a deduction filed under section 11 of thischapter must contain any additional information required to showcompliance with the statement of benefits approved under section 9of this chapter.
As added by P.L.62-1988, SEC.1.
IC 6-1.1-40-13
Benefit performance waiver certificate
Sec. 13. Instead of the additional information required by section12 of this chapter to show compliance with a statement of benefits
approved under section 9 of this chapter, the property owner maysubstitute a benefit performance waiver certificate issued by thecommission. The commission may issue a certificate if it finds thatcauses beyond the reasonable control of the property owner arepreventing realization of the benefits identified in the statement ofbenefits and if it finds that the purposes of the chapter are served byallowing the deduction.
As added by P.L.62-1988, SEC.1.
IC 6-1.1-40-14
Correction of deduction errors
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.85.