CHAPTER 3.5. AIRPORT DEVELOPMENT ZONES
IC 8-22-3.5
Chapter 3.5. Airport Development Zones
IC 8-22-3.5-1
Application of chapter
Sec. 1. This chapter applies to the following:
(1) Each county having a consolidated city.
(2) Each city having a population of more than ninety thousand(90,000) but less than one hundred five thousand (105,000).
(3) Each county having a population of more than one hundredfive thousand (105,000) but less than one hundred ten thousand(110,000).
(4) Each county having a population of more than three hundredthousand (300,000) but less than four hundred thousand(400,000).
(5) Each county having a population of more than one hundredseventy thousand (170,000) but less than one hundred eightythousand (180,000).
(6) Each county having a population of more than one hundredeighteen thousand (118,000) but less than one hundred twentythousand (120,000).
(7) Each city having a population of more than fifty-ninethousand seven hundred (59,700) but less than sixty-fivethousand (65,000).
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.2;P.L.115-1995, SEC.3; P.L.85-1996, SEC.1; P.L.91-1997, SEC.3;P.L.170-2002, SEC.71; P.L.124-2006, SEC.1; P.L.182-2009(ss),SEC.271.
IC 8-22-3.5-2
"Commission" defined
Sec. 2. As used in this chapter, "commission" refers to thefollowing:
(1) With respect to a county having a consolidated city, themetropolitan development commission acting as theredevelopment commission of the consolidated city, subject toIC 36-3-4-23.
(2) With respect to a city described in section 1(2) of thischapter, the board of the airport authority for the city.
(3) With respect to a county described in section 1(3) of thischapter, the board of an airport authority that is jointlyestablished by the county and a municipality under IC 8-22-3.
(4) With respect to a county described in section 1(4) or 1(5) ofthis chapter, the board of an airport authority that is jointlyestablished by the county and a municipality under IC 8-22-3. (5) With respect to a county described in section 1(6) of thischapter, the board of an airport authority that is established bythe county.
(6) With respect to a city described in section 1(7) of thischapter, the board of aviation commissioners for the city.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.3;P.L.115-1995, SEC.4; P.L.85-1996, SEC.2; P.L.91-1997, SEC.4;P.L.124-2006, SEC.2; P.L.182-2009(ss), SEC.272.
IC 8-22-3.5-2.5
"Eligible entity" defined
Sec. 2.5. Notwithstanding IC 8-22-1-6, as used in this chapter,"eligible entity" refers to any of the following:
(1) A consolidated city.
(2) A city described in section 1(2) of this chapter.
(3) A city in a county described in section 1(3) of this chapter.
(4) A county described in section 1(4) of this chapter.
(5) A city located in a county described in section 1(4) of thischapter.
(6) A county described in section 1(5) of this chapter.
(7) A city located in a county described in section 1(5) of thischapter.
(8) A county described in section 1(6) of this chapter.
(9) A city described in section 1(7) of this chapter.
As added by P.L.108-1993, SEC.4. Amended by P.L.115-1995,SEC.5; P.L.85-1996, SEC.3; P.L.91-1997, SEC.5; P.L.124-2006,SEC.3; P.L.182-2009(ss), SEC.273.
IC 8-22-3.5-3
"Qualified airport development project"; use or expansion bysuccessor tenant
Sec. 3. (a) As used in this chapter, "qualified airport developmentproject" means an airport development project that has a cost of theproject (as defined in IC 4-4-10.9-5) greater than:
(1) five hundred million dollars ($500,000,000), if the projectis to be located in a county having a consolidated city; or
(2) two hundred fifty thousand dollars ($250,000), if the projectis to be located in:
(A) a city described in section 1(2) or 1(7) of this chapter; or
(B) in a county described in section 1(3), 1(4), 1(5), or 1(6)of this chapter.
Except as provided by subsection (b), the term includes any portionor expansion of the original qualified airport development projectused by one (1) or more successor tenants.
(b) For purposes of section 9 of this chapter, the definition of
"qualified airport development project" does not include any portionof, or expansion of, the original qualified airport development projectused by a successor tenant unless the commission adopts a resolutionto amend the definition to include that portion or expansion.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.5;P.L.115-1995, SEC.6; P.L.85-1996, SEC.4; P.L.91-1997, SEC.6;P.L.224-2003, SEC.267; P.L.124-2006, SEC.4; P.L.182-2009(ss),SEC.274.
IC 8-22-3.5-4
Definitions
Sec. 4. As used in this chapter, the following terms have themeanings set forth in IC 6-1.1-1:
(1) Assessment date.
(2) Assessed value or assessed valuation.
(3) Tangible property.
(4) Taxing district.
(5) Taxing unit.
As added by P.L.86-1991, SEC.1.
IC 8-22-3.5-5
Designation of airport development zone area; resolution;approval
Sec. 5. (a) The commission may designate an area within thejurisdiction of a board of aviation commissioners under IC 8-22-2 oran airport authority under IC 8-22-3 as an airport development zoneif the commission finds by resolution the following:
(1) In order to promote opportunities for the gainfulemployment of the citizens of the eligible entity and theattraction of a qualified airport development project to theeligible entity, an area under the jurisdiction of the board ofaviation commissioners or airport authority should be declaredan airport development zone.
(2) The public health and welfare of the eligible entity will bebenefited by designating the area as an airport developmentzone.
(b) If the airport development zone will be located in aconsolidated city or in a county described in section 1(3), 1(4), 1(5),or 1(6) of this chapter, the resolution adopted under subsection (a)must also include a finding that there has been proposed a qualifiedairport development project to be located in the airport developmentzone, with the proposal supported by:
(1) financial and economic data; and
(2) preliminary commitments by business enterprises thatevidence a reasonable likelihood that the proposed qualified
airport development project will be initiated and accomplished.
(c) If the airport development zone will be located in a citydescribed in:
(1) section 1(2) of this chapter, the resolution adopted undersubsection (a) must also include findings stating that the mostrecent federal decennial census for the city indicates thefollowing:
(A) The unemployment rate for the city is at least thirteenpercent (13%).
(B) The population of the city has decreased by at least tenpercent (10%) as compared to the population reported in thepreceding federal decennial census for the city.
(C) The median per capita income for city residents does notexceed eighty percent (80%) of the median per capitaincome for all residents of the United States.
(D) At least twenty-five percent (25%) of the population ofthe city is below the federal income poverty level (as definedin IC 12-15-2-1); or
(2) section 1(7) of this chapter, the resolution adopted undersubsection (a) must also include findings stating the following:
(A) There has been proposed a qualified airport developmentproject to be located in the airport development zone, withthe proposal supported by:
(i) financial and economic data; and
(ii) preliminary commitments by business enterprises thatevidence a reasonable likelihood that the proposedqualified airport development project will be initiated andaccomplished.
(B) The city has Interstate Highway 69 serving the airportand the city's residents and facilitating commerce and freetravel within and through the midwestern United States.
(d) The resolution adopted under subsection (a) must describe theboundaries of the area. The description may be by reference to thearea's location in relation to public ways or streams, or otherwise, asdetermined by the commission.
(e) If the airport development zone will be located in a countydescribed in section 1(4), 1(5), or 1(6) of this chapter, the resolutionadopted under subsection (a) and any qualified airport developmentproject to be located in the airport development zone, must beapproved by the executive of:
(1) the county, if the entire airport development zone orqualified airport development project will be located outside theboundaries of any municipality located in the county;
(2) a municipality located in the county, if the entire airportdevelopment zone or qualified airport development project will
be located within the boundary of the municipality; or
(3) the county and a municipality located in the county, if theairport development zone or qualified airport developmentproject will be located within the boundary of the county and inpart within the boundary of the municipality.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.6;P.L.115-1995, SEC.7; P.L.85-1996, SEC.5; P.L.91-1997, SEC.7;P.L.165-2003, SEC.2; P.L.124-2006, SEC.5; P.L.182-2009(ss),SEC.275.
IC 8-22-3.5-6
Notice; adoption of resolution; hearings
Sec. 6. (a) After adoption of the resolution under section 5 of thischapter, 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 that hasauthority to levy property taxes in the geographic area wherethe airport development zone is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the airportdevelopment zone, including the following:
(i) The estimated economic benefits and costs incurred bythe airport development zone, as measured by increasedemployment and anticipated growth of real propertyassessed values.
(ii) The anticipated impact on tax revenues of each taxingunit.
The notice must state the general boundaries of the area designatedas an airport development zone and must state that writtenremonstrances may be filed with the commission until the timedesignated for the hearing. The notice must also name the place,date, and time when the commission will receive and hearremonstrances and objections from persons interested in or affectedby the proceedings pertaining to the proposed airport developmentzone designation and will determine the public utility and benefit ofthe proposed airport development zone designation. The commissionshall file the information required by subdivision (2) with theofficers of the taxing unit who are authorized to fix budgets, taxrates, and tax levies under IC 6-1.1-17-5 at least ten (10) days beforethe date of the public hearing. All persons affected in any manner bythe hearing, including all taxpayers within the taxing district of theairport authority, shall be considered notified of the pendency of thehearing and of subsequent acts, hearings, adjournments, and ordersof the commission affecting the airport development zone if the
commission gives the notice required by this section.
(b) At the hearing, which may be recessed and reconvened fromtime to time, the commission shall hear all persons interested in theproceedings and shall consider all written remonstrances andobjections that have been filed. After considering the evidencepresented, the commission shall take final action determining thepublic utility and benefit of the proposed airport development zonedesignation and confirming, modifying and confirming, or rescindingthe resolution. The final action taken by the commission shall berecorded and is final and conclusive, except that an appeal may betaken in the manner prescribed by section 7 of this chapter.
As added by P.L.86-1991, SEC.1. Amended by P.L.25-1995, SEC.59.
IC 8-22-3.5-7
Remonstrances; appeals
Sec. 7. (a) A person who filed a written remonstrance with thecommission under section 6 of this chapter and is aggrieved by thefinal action taken may, within ten (10) days after that final action,file with the office of the clerk of the circuit or superior court of thecounty a copy of the commission's resolution and the person'sremonstrance against the resolution, together with the person's bondas provided by IC 34-13-5-7.
(b) 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 filing of the appeal. The court shalldecide the appeal based on the record and evidence before thecommission, not by trial de novo, and may confirm the final actionof the commission or sustain the remonstrances. The judgment of thecourt is final and conclusive, unless an appeal is taken as in othercivil actions.
As added by P.L.86-1991, SEC.1. Amended by P.L.1-1998, SEC.91.
IC 8-22-3.5-8
Special taxing district
Sec. 8. The airport development zone created by the commissionunder this chapter is a special taxing district authorized by thegeneral assembly to enable the eligible entity to provide specialbenefits to taxpayers in the airport development zone by promotingeconomic development that is of public use and benefit.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.7;P.L.115-1995, SEC.8.
IC 8-22-3.5-9
Allocation of tax proceeds; notice to county auditor and other
officers; valuation of property
Sec. 9. (a) As used in this section, "base assessed value" means:
(1) the net assessed value of all the tangible property as finallydetermined for the assessment date immediately preceding theeffective date of the allocation provision of the commission'sresolution adopted under section 5 or 9.5 of this chapter,notwithstanding the date of the final action taken under section6 of this chapter; plus
(2) to the extent it is not included in subdivision (1), the netassessed value of property that is assessed as residentialproperty under the rules of the department of local governmentfinance, as finally determined for any assessment date after theeffective date of the allocation provision.
However, subdivision (2) applies only to an airport developmentzone established after June 30, 1997, and the portion of an airportdevelopment zone established before June 30, 1997, that is added toan existing airport development zone.
(b) A resolution adopted under section 5 of this chapter andconfirmed under section 6 of this chapter must include a provisionwith respect to the allocation and distribution of property taxes forthe purposes and in the manner provided in this section.
(c) The allocation provision must:
(1) apply to the entire airport development zone; and
(2) require that any property tax on taxable tangible propertysubsequently levied by or for the benefit of any public bodyentitled to a distribution of property taxes in the airportdevelopment zone be allocated and distributed as provided insubsections (d) and (e).
(d) Except as otherwise provided in this section, the proceeds ofthe taxes attributable to the lesser of:
(1) the assessed value of the tangible property for theassessment date with respect to which the allocation anddistribution is made; or
(2) the base assessed value;
shall be allocated and, when collected, paid into the funds of therespective taxing units.
(e) All of the property tax proceeds in excess of those describedin subsection (d) shall be allocated to the eligible entity for theairport development zone and, when collected, paid into specialfunds as follows:
(1) The commission may determine that a portion of taxproceeds shall be allocated to a training grant fund to beexpended by the commission without appropriation solely forthe purpose of reimbursing training expenses incurred by publicor private entities in the training of employees for the qualified
airport development project.
(2) The commission may determine that a portion of taxproceeds shall be allocated to a debt service fund and dedicatedto the payment of principal and interest on revenue bonds or aloan contract of the board of aviation commissioners or airportauthority for a qualified airport development project, to thepayment of leases for a qualified airport development project,or to the payment of principal and interest on bonds issued byan eligible entity to pay for qualified airport developmentprojects in the airport development zone or serving the airportdevelopment zone.
(3) The commission may determine that a part of the taxproceeds shall be allocated to a project fund and used to payexpenses incurred by the commission for a qualified airportdevelopment project that is in the airport development zone oris serving the airport development zone.
(4) Except as provided in subsection (f), all remaining taxproceeds after allocations are made under subdivisions (1), (2),and (3) shall be allocated to a project fund and dedicated to thereimbursement of expenditures made by the commission for aqualified airport development project that is in the airportdevelopment zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do thefollowing:
(1) Determine the amount, if any, by which tax proceedsallocated to the project fund in subsection (e)(3) in thefollowing year will exceed the amount necessary to satisfyamounts required under subsection (e).
(2) Provide a written notice to the county auditor and theofficers who are authorized to fix budgets, tax rates, and taxlevies under IC 6-1.1-17-5 for each of the other taxing units thatis wholly or partly located within the allocation area. The noticemust:
(A) state the amount, if any, of excess tax proceeds that thecommission has determined may be allocated to therespective taxing units in the manner prescribed insubsection (d); or
(B) state that the commission has determined that there areno excess tax proceeds that may be allocated to therespective taxing units in the manner prescribed insubsection (d).
The county auditor shall allocate to the respective taxing unitsthe amount, if any, of excess tax proceeds determined by thecommission.
(g) When money in the debt service fund and in the project fund
is sufficient to pay all outstanding principal and interest (to theearliest date on which the obligations can be redeemed) on revenuebonds issued by the board of aviation commissioners or airportauthority for the financing of qualified airport development projects,all lease rentals payable on leases of qualified airport developmentprojects, and all costs and expenditures associated with all qualifiedairport development projects, money in the debt service fund and inthe project fund in excess of those amounts shall be paid to therespective taxing units in the manner prescribed by subsection (d).
(h) Property tax proceeds allocable to the debt service fund undersubsection (e)(2) must, subject to subsection (g), be irrevocablypledged by the eligible entity for the purpose set forth in subsection(e)(2).
(i) Notwithstanding any other law, each assessor shall, uponpetition of the commission, reassess the taxable tangible propertysituated upon or in, or added to, the airport development zoneeffective on the next assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of alltaxable tangible property in the airport development zone, forpurposes of tax limitation, property tax replacement, and formulationof the budget, tax rate, and tax levy for each political subdivision inwhich the property is located is the lesser of:
(1) the assessed value of the tangible property as valued withoutregard to this section; or
(2) the base assessed value.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.8;P.L.115-1995, SEC.9; P.L.91-1997, SEC.8; P.L.255-1997(ss),SEC.8; P.L.90-2002, SEC.332; P.L.246-2005, SEC.84;P.L.124-2006, SEC.6; P.L.97-2007, SEC.2; P.L.146-2008, SEC.365;P.L.182-2009(ss), SEC.276.
IC 8-22-3.5-9.5
Authorization to amend resolution in Vanderburgh County
Sec. 9.5. (a) This section applies to a commission located in acounty described in section 1(5) of this chapter.
(b) The commission may amend a resolution adopted beforeJanuary 1, 2006, under section 5 of this chapter to include aprovision with respect to the allocation and distribution of propertytaxes.
(c) For purposes of determining the allocation and distribution ofproperty taxes under this chapter, the "base assessed value" meansthe net assessed value of all the tangible property as finallydetermined for the assessment date immediately preceding theeffective date of the allocation provision of the commission'samended resolution adopted under this section. (d) An amendment adopted under this section must be approvedby the executive of:
(1) the county, if the entire airport development zone is locatedoutside the boundaries of any municipality located in thecounty;
(2) a municipality located in the county, if the entire airportdevelopment zone is located within the boundary of themunicipality; or
(3) the county and a municipality located in the county, if theairport development zone is located within the boundary of thecounty and partly within the boundary of the municipality.
As added by P.L.124-2006, SEC.7.
IC 8-22-3.5-10
Repealed
(Repealed by P.L.146-2008, SEC.813.)
IC 8-22-3.5-11
Rules and procedures; adjustment of base assessed value
Sec. 11. (a) The state board of accounts and the department oflocal government finance shall make the rules and prescribe theforms and procedures that the state board of accounts and departmentconsider appropriate for the implementation of this chapter.
(b) After each general reassessment under IC 6-1.1-4, thedepartment of local government finance shall adjust the baseassessed value (as defined in section 9 of this chapter) one (1) timeto neutralize any effect of the general reassessment on the propertytax proceeds allocated to the airport development zone's specialfunds under section 9 of this chapter.
(c) After each annual adjustment under IC 6-1.1-4-4.5, thedepartment of local government finance shall adjust the baseassessed value (as defined in section 9 of this chapter) to neutralizeany effect of the annual adjustment on the property tax proceedsallocated to the airport development zone's special funds undersection 9 of this chapter.
As added by P.L.86-1991, SEC.1. Amended by P.L.90-2002,SEC.333; P.L.154-2006, SEC.66.
IC 8-22-3.5-12
Repealed
(Repealed by P.L.146-2008, SEC.813.)
IC 8-22-3.5-14
Businesses located in airport development zone treated as if locatedin enterprise zone
Sec. 14. (a) This section applies only to an airport development
zone that is in a:
(1) city described in section 1(2) or 1(7) of this chapter; or
(2) county described in section 1(3), 1(4), or 1(6) of thischapter.
(b) Notwithstanding any other law, a business or an employee ofa business that is located in an airport development zone is entitledto the benefits provided by the following statutes, as if the businesswere located in an enterprise zone:
(1) IC 6-3-2-8.
(2) IC 6-3-3-10.
(3) IC 6-3.1-7.
(4) IC 6-3.1-9.
(5) IC 6-3.1-10-6.
(c) Before June 1 of each year, a business described in subsection(b) must pay a fee equal to the amount of the fee that is required forenterprise zone businesses under IC 5-28-15-5(a)(4)(A). However,notwithstanding IC 5-28-15-5(a)(4)(A), the fee shall be paid into thedebt service fund established under section 9(e)(2) of this chapter. Ifthe commission determines that a business has failed to pay the feerequired by this subsection, the business is not eligible for any of thebenefits described in subsection (b).
(d) A business that receives any of the benefits described insubsection (b) must use all of those benefits, except for the amountof the fee required by subsection (c), for its property or employees inthe airport development zone and to assist the commission. If thecommission determines that a business has failed to use its benefitsin the manner required by this subsection, the business is not eligiblefor any of the benefits described in subsection (b).
(e) If the commission determines that a business has failed to paythe fee required by subsection (c) or has failed to use benefits in themanner required by subsection (d), the commission shall providewritten notice of the determination to the department of staterevenue, the department of local government finance, and the countyauditor.
As added by P.L.108-1993, SEC.9. Amended by P.L.115-1995,SEC.10; P.L.85-1996, SEC.6; P.L.90-2002, SEC.334;P.L.192-2002(ss), SEC.148; P.L.4-2005, SEC.117; P.L.124-2006,SEC.10; P.L.146-2008, SEC.366; P.L.182-2009(ss), SEC.277.
IC 8-22-3.5-15
State income tax incentives for attracting or retaining airportdevelopment projects in a consolidated city
Sec. 15. (a) As used in this section, "state income tax liability"means a tax liability that is incurred under:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
or
(2) any other tax imposed by this state and based on ormeasured by either gross income or net income.
(b) The attraction or retention of qualified airport developmentprojects to a consolidated city within Indiana is a governmentalfunction of general public benefit for all the citizens of Indiana.
(c) As an incentive to attract or retain qualified airportdevelopment projects to Indiana, for a period of thirty-five (35)years, beginning January 1, 1991, persons that locate and operate aqualified airport development project in an airport development zonein a consolidated city shall not incur, notwithstanding any other law,any state income tax liability as a result of:
(1) activities associated with locating or retaining the qualifiedairport development project in the consolidated city;
(2) the construction, modification, alteration, or completion ofthe qualified airport development project;
(3) the employment of personnel or the ownership or rental ofproperty at or in conjunction with the qualified airportdevelopment project; or
(4) the operation of, or the activities at or in connection with,the qualified airport development project.
(d) The department of state revenue shall adopt rules underIC 4-22-2 to implement this section.
As added by P.L.41-1994, SEC.2. Amended by P.L.192-2002(ss),SEC.149; P.L.224-2003, SEC.268.
IC 8-22-3.5-16
Repealed
(Repealed by P.L.124-2006, SEC.11.)
IC 8-22-3.5-17
Repealed
(Repealed by P.L.124-2006, SEC.11.)