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 ports
of 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 that
effectively controls or is controlled by an applicant for a deduction
under this chapter or is associated with an applicant for a deduction
under this chapter under common ownership or control, whether by
shareholdings 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 geographic
territory designated as a maritime opportunity district by the ports of
Indiana 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Repealed
(Repealed by P.L.146-2008, SEC.800.)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 the
deduction 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 finishing
of other tangible personal property;
(3) acquires in an arms length transaction from an entity that is
not an affiliate of the applicant for use as described in
subdivision (2); and
(4) never used for any purpose in Indiana before the installation
described 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 the
construction of new structures, in a district, either:
(1) on unimproved real estate; or
(2) on real estate upon which a prior existing structure is
demolished 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 the
remodeling, repair, or improvement of property in any manner or any
enlargement 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 territory
is a maritime opportunity district if the commission determines that:
(1) the territory is located adjacent to a state owned port on
state owned land;
(2) there will be redevelopment or rehabilitation of property
within the territory;
(3) the redevelopment or rehabilitation will require a substantial
investment relative to the size of the business making the
investment;
(4) the business making an investment will be manufacturing
goods;
(5) more than fifty percent (50%) of the goods manufactured are
to be shipped through a port operated by the state and are
destined for international markets;
(6) the business is making a long term commitment to the
territory; and
(7) there will be an increase in the revenue of the port.
(b) To make such a finding, the commission shall use the
procedures prescribed in section 8 of this chapter.
(c) The commission may adopt a resolution establishing general
standards to be used, along with the requirements set forth in
subsection (a). The standards must have a reasonable relationship to
the 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 defray
actual processing and administrative costs. In declaring a territory to
be a district, the commission may limit the time period to a certain
number of calendar years during which the district shall be so
designated. To exercise one (1) or more of these powers, the
commission must include this fact in the resolution passed under
section 8 of this chapter.
(e) If the commission limits the time period during which a
territory will be a district, it does not limit the length of time a
taxpayer is entitled to receive a deduction under section 10 of this
chapter. 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, it
shall either:
(1) prepare maps and plats that identify the district; or
(2) prepare a simplified description of the boundaries of the
district 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 a
district. The resolution must contain a description of the affected
district and be filed with the county assessor.
(c) After approval of a resolution under subsection (b), the
commission shall publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1. The notice must state that a
description of the affected territory is available and can be inspected
in the county assessor's office. The notice must also name a date
when the commission will receive and hear all remonstrances and
objections from interested persons. After considering the evidence,
the commission shall take final action determining whether the
qualifications for a district have been met and confirming, modifying
and confirming, or rescinding the resolution. This determination is
final except that an appeal may be taken and heard as provided under
subsections (d) and (e).
(d) A person who filed a written remonstrance with the
commission under this section and who is aggrieved by the final
action taken may, within ten (10) days after that final action, initiate
an appeal of that action by filing in the office of the clerk of the
circuit or superior court a copy of the order of the commission and
a remonstrance against that order, together with a bond conditioned
to pay the costs of appeal if the appeal is determined against the
person. The only ground of appeal that the court may hear is whether
the proposed project will meet the qualifications of this chapter. The
burden of proof is on the appellant.
(e) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of the filing of the appeal. The court
shall hear evidence on the appeal, and may confirm the final action
of the commission or sustain the appeal. The judgment of the court
is final and conclusive, unless an appeal is taken as in other civil
actions. 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 manufacturing
equipment for which the person wishes to claim a deduction under
this chapter, the person must submit to the commission a statement
of benefits, in a form prescribed by the department of local
government finance. The statement of benefits must include the
following information:
(1) A description of the new manufacturing equipment that the
person proposes to acquire.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the person
as a result of the installation of the new manufacturing
equipment and an estimate of the annual salaries of these
individuals.
(3) An estimate of the cost of the new manufacturing
equipment.
(b) The statement of benefits may contain any other information
required by the commission. If the person is requesting or will be
requesting the designation of a district, the statement of benefits must
be submitted at the same time as the request for designation is
submitted.
(c) The commission shall review the statement of benefits if
required under subsection (b). The commission shall make findings
determining whether the estimate of:
(1) the number of individuals who will be employed or whose
employment 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 requires
information;
are benefits that can be reasonably expected to result from the
installation 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 new
manufacturing equipment whose statement of benefits is approved is
entitled to a deduction from the assessed value of that equipment for
a period of ten (10) years. Except as provided in subsections (b) and
(c), and subject to subsection (d) and section 14 of this chapter, for
the first five (5) years, the amount of the deduction for new
manufacturing equipment that an owner is entitled to for a particular
year equals the assessed value of the new manufacturing equipment.
Subject to subsection (d) and section 14 of this chapter, for the sixth
through the tenth year, the amount of the deduction equals the
product 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 year
the deduction is claimed for new manufacturing equipment to the
extent that it would cause the assessed value of all of the personal
property of the owner in the taxing district in which the equipment
is located to be less than the assessed value of all of the personal
property of the owner in that taxing district in the immediately
preceding year.
(c) If a deduction is not fully allowed under subsection (b) in the
first year the deduction is claimed, then the percentages specified in
subsection (a) apply in the subsequent years to the amount of
deduction that was allowed in the first year.
(d) For purposes of subsection (a), the assessed value of new
manufacturing equipment that is part of an owner's assessable
depreciable personal property in a single taxing district subject to the
valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is the
product of:
(1) the assessed value of the equipment determined without
regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC
5.1-6-9; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under
50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the owner's
depreciable personal property in the taxing district; divided
by
(B) the total true tax value of all of the owner's depreciable
personal property in the taxing district that is subject to the
valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9
determined:
(i) under the depreciation schedules in the rules of the
department of local government finance before any
adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50 IAC
4.2-4-9 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 provided
by section 10 of this chapter must file a certified deduction
application, on forms prescribed by the department of local
government finance, with:
(1) the auditor of the county in which the new manufacturing
equipment is located; and
(2) the department of local government finance.
A person that timely files a personal property return under
IC 6-1.1-3-7(a) for the year in which the new manufacturing
equipment is installed must file the application between March 1 and
May 15 of that year.
(b) The application required by this section must contain the
following information:
(1) The name of the owner of the new manufacturing
equipment.
(2) A description of the new manufacturing equipment.
(3) Proof of the date the new manufacturing equipment was
installed.
(4) The amount of the deduction claimed for the first year of the
deduction.
(c) A deduction application must be filed under this section in the
year in which the new manufacturing equipment is installed and in
each of the immediately succeeding nine (9) years.
(d) The department of local government finance shall review and
verify the correctness of each application and shall notify the county
auditor of the county in which the property is located that the
application is approved or denied or that the amount of the deduction
is altered. Upon notification of approval of the application or of
alteration of the amount of the deduction, the county auditor shall
make the deduction.
(e) If the ownership of new manufacturing equipment changes, the
deduction provided under section 10 of this chapter continues to
apply to that equipment if the new owner:
(1) continues to use the equipment in compliance with any
standards 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 would
have applied if the ownership of the property had not changed;
multiplied by
(2) the assessed value of the equipment for the year the
deduction 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 of
benefits
Sec. 12. In addition to the requirements of section 11(b) of this
chapter, an application for a deduction filed under section 11 of this
chapter must contain any additional information required to show
compliance with the statement of benefits approved under section 9
of 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 section
12 of this chapter to show compliance with a statement of benefits
approved under section 9 of this chapter, the property owner may
substitute a benefit performance waiver certificate issued by the
commission. The commission may issue a certificate if it finds that
causes beyond the reasonable control of the property owner are
preventing realization of the benefits identified in the statement of
benefits and if it finds that the purposes of the chapter are served by
allowing 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 a
deduction under this chapter for a particular assessment date in
an amount that is less than the amount to which the taxpayer is
entitled under this chapter; and
(2) the taxpayer is entitled to a correction of the error under this
article;
the county auditor shall apply the correction of the error in the
manner that corrections are applied under IC 6-1.1-12.1-15. As added by P.L.219-2007, SEC.85.
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 ports
of 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 that
effectively controls or is controlled by an applicant for a deduction
under this chapter or is associated with an applicant for a deduction
under this chapter under common ownership or control, whether by
shareholdings 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 geographic
territory designated as a maritime opportunity district by the ports of
Indiana 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 the
deduction 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 finishing
of other tangible personal property;
(3) acquires in an arms length transaction from an entity that is
not an affiliate of the applicant for use as described in
subdivision (2); and
(4) never used for any purpose in Indiana before the installation
described 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 the
construction of new structures, in a district, either:
(1) on unimproved real estate; or
(2) on real estate upon which a prior existing structure is
demolished 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 the
remodeling, repair, or improvement of property in any manner or any
enlargement 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 territory
is a maritime opportunity district if the commission determines that:
(1) the territory is located adjacent to a state owned port on
state owned land;
(2) there will be redevelopment or rehabilitation of property
within the territory;
(3) the redevelopment or rehabilitation will require a substantial
investment relative to the size of the business making the
investment;
(4) the business making an investment will be manufacturing
goods;
(5) more than fifty percent (50%) of the goods manufactured are
to be shipped through a port operated by the state and are
destined for international markets;
(6) the business is making a long term commitment to the
territory; and
(7) there will be an increase in the revenue of the port.
(b) To make such a finding, the commission shall use the
procedures prescribed in section 8 of this chapter.
(c) The commission may adopt a resolution establishing general
standards to be used, along with the requirements set forth in
subsection (a). The standards must have a reasonable relationship to
the 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 defray
actual processing and administrative costs. In declaring a territory to
be a district, the commission may limit the time period to a certain
number of calendar years during which the district shall be so
designated. To exercise one (1) or more of these powers, the
commission must include this fact in the resolution passed under
section 8 of this chapter.
(e) If the commission limits the time period during which a
territory will be a district, it does not limit the length of time a
taxpayer is entitled to receive a deduction under section 10 of this
chapter. 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, it
shall either:
(1) prepare maps and plats that identify the district; or
(2) prepare a simplified description of the boundaries of the
district 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 a
district. The resolution must contain a description of the affected
district and be filed with the county assessor.
(c) After approval of a resolution under subsection (b), the
commission shall publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1. The notice must state that a
description of the affected territory is available and can be inspected
in the county assessor's office. The notice must also name a date
when the commission will receive and hear all remonstrances and
objections from interested persons. After considering the evidence,
the commission shall take final action determining whether the
qualifications for a district have been met and confirming, modifying
and confirming, or rescinding the resolution. This determination is
final except that an appeal may be taken and heard as provided under
subsections (d) and (e).
(d) A person who filed a written remonstrance with the
commission under this section and who is aggrieved by the final
action taken may, within ten (10) days after that final action, initiate
an appeal of that action by filing in the office of the clerk of the
circuit or superior court a copy of the order of the commission and
a remonstrance against that order, together with a bond conditioned
to pay the costs of appeal if the appeal is determined against the
person. The only ground of appeal that the court may hear is whether
the proposed project will meet the qualifications of this chapter. The
burden of proof is on the appellant.
(e) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of the filing of the appeal. The court
shall hear evidence on the appeal, and may confirm the final action
of the commission or sustain the appeal. The judgment of the court
is final and conclusive, unless an appeal is taken as in other civil
actions. 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 manufacturing
equipment for which the person wishes to claim a deduction under
this chapter, the person must submit to the commission a statement
of benefits, in a form prescribed by the department of local
government finance. The statement of benefits must include the
following information:
(1) A description of the new manufacturing equipment that the
person proposes to acquire.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the person
as a result of the installation of the new manufacturing
equipment and an estimate of the annual salaries of these
individuals.
(3) An estimate of the cost of the new manufacturing
equipment.
(b) The statement of benefits may contain any other information
required by the commission. If the person is requesting or will be
requesting the designation of a district, the statement of benefits must
be submitted at the same time as the request for designation is
submitted.
(c) The commission shall review the statement of benefits if
required under subsection (b). The commission shall make findings
determining whether the estimate of:
(1) the number of individuals who will be employed or whose
employment 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 requires
information;
are benefits that can be reasonably expected to result from the
installation 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 new
manufacturing equipment whose statement of benefits is approved is
entitled to a deduction from the assessed value of that equipment for
a period of ten (10) years. Except as provided in subsections (b) and
(c), and subject to subsection (d) and section 14 of this chapter, for
the first five (5) years, the amount of the deduction for new
manufacturing equipment that an owner is entitled to for a particular
year equals the assessed value of the new manufacturing equipment.
Subject to subsection (d) and section 14 of this chapter, for the sixth
through the tenth year, the amount of the deduction equals the
product 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 year
the deduction is claimed for new manufacturing equipment to the
extent that it would cause the assessed value of all of the personal
property of the owner in the taxing district in which the equipment
is located to be less than the assessed value of all of the personal
property of the owner in that taxing district in the immediately
preceding year.
(c) If a deduction is not fully allowed under subsection (b) in the
first year the deduction is claimed, then the percentages specified in
subsection (a) apply in the subsequent years to the amount of
deduction that was allowed in the first year.
(d) For purposes of subsection (a), the assessed value of new
manufacturing equipment that is part of an owner's assessable
depreciable personal property in a single taxing district subject to the
valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is the
product of:
(1) the assessed value of the equipment determined without
regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC
5.1-6-9; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under
50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the owner's
depreciable personal property in the taxing district; divided
by
(B) the total true tax value of all of the owner's depreciable
personal property in the taxing district that is subject to the
valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9
determined:
(i) under the depreciation schedules in the rules of the
department of local government finance before any
adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50 IAC
4.2-4-9 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 provided
by section 10 of this chapter must file a certified deduction
application, on forms prescribed by the department of local
government finance, with:
(1) the auditor of the county in which the new manufacturing
equipment is located; and
(2) the department of local government finance.
A person that timely files a personal property return under
IC 6-1.1-3-7(a) for the year in which the new manufacturing
equipment is installed must file the application between March 1 and
May 15 of that year.
(b) The application required by this section must contain the
following information:
(1) The name of the owner of the new manufacturing
equipment.
(2) A description of the new manufacturing equipment.
(3) Proof of the date the new manufacturing equipment was
installed.
(4) The amount of the deduction claimed for the first year of the
deduction.
(c) A deduction application must be filed under this section in the
year in which the new manufacturing equipment is installed and in
each of the immediately succeeding nine (9) years.
(d) The department of local government finance shall review and
verify the correctness of each application and shall notify the county
auditor of the county in which the property is located that the
application is approved or denied or that the amount of the deduction
is altered. Upon notification of approval of the application or of
alteration of the amount of the deduction, the county auditor shall
make the deduction.
(e) If the ownership of new manufacturing equipment changes, the
deduction provided under section 10 of this chapter continues to
apply to that equipment if the new owner:
(1) continues to use the equipment in compliance with any
standards 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 would
have applied if the ownership of the property had not changed;
multiplied by
(2) the assessed value of the equipment for the year the
deduction 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 of
benefits
Sec. 12. In addition to the requirements of section 11(b) of this
chapter, an application for a deduction filed under section 11 of this
chapter must contain any additional information required to show
compliance with the statement of benefits approved under section 9
of 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 section
12 of this chapter to show compliance with a statement of benefits
approved under section 9 of this chapter, the property owner may
substitute a benefit performance waiver certificate issued by the
commission. The commission may issue a certificate if it finds that
causes beyond the reasonable control of the property owner are
preventing realization of the benefits identified in the statement of
benefits and if it finds that the purposes of the chapter are served by
allowing 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 a
deduction under this chapter for a particular assessment date in
an amount that is less than the amount to which the taxpayer is
entitled under this chapter; and
(2) the taxpayer is entitled to a correction of the error under this
article;
the county auditor shall apply the correction of the error in the
manner that corrections are applied under IC 6-1.1-12.1-15. As added by P.L.219-2007, SEC.85.
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 ports
of 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 that
effectively controls or is controlled by an applicant for a deduction
under this chapter or is associated with an applicant for a deduction
under this chapter under common ownership or control, whether by
shareholdings 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 geographic
territory designated as a maritime opportunity district by the ports of
Indiana 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 the
deduction 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 finishing
of other tangible personal property;
(3) acquires in an arms length transaction from an entity that is
not an affiliate of the applicant for use as described in
subdivision (2); and
(4) never used for any purpose in Indiana before the installation
described 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 the
construction of new structures, in a district, either:
(1) on unimproved real estate; or
(2) on real estate upon which a prior existing structure is
demolished 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 the
remodeling, repair, or improvement of property in any manner or any
enlargement 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 territory
is a maritime opportunity district if the commission determines that:
(1) the territory is located adjacent to a state owned port on
state owned land;
(2) there will be redevelopment or rehabilitation of property
within the territory;
(3) the redevelopment or rehabilitation will require a substantial
investment relative to the size of the business making the
investment;
(4) the business making an investment will be manufacturing
goods;
(5) more than fifty percent (50%) of the goods manufactured are
to be shipped through a port operated by the state and are
destined for international markets;
(6) the business is making a long term commitment to the
territory; and
(7) there will be an increase in the revenue of the port.
(b) To make such a finding, the commission shall use the
procedures prescribed in section 8 of this chapter.
(c) The commission may adopt a resolution establishing general
standards to be used, along with the requirements set forth in
subsection (a). The standards must have a reasonable relationship to
the 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 defray
actual processing and administrative costs. In declaring a territory to
be a district, the commission may limit the time period to a certain
number of calendar years during which the district shall be so
designated. To exercise one (1) or more of these powers, the
commission must include this fact in the resolution passed under
section 8 of this chapter.
(e) If the commission limits the time period during which a
territory will be a district, it does not limit the length of time a
taxpayer is entitled to receive a deduction under section 10 of this
chapter. 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, it
shall either:
(1) prepare maps and plats that identify the district; or
(2) prepare a simplified description of the boundaries of the
district 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 a
district. The resolution must contain a description of the affected
district and be filed with the county assessor.
(c) After approval of a resolution under subsection (b), the
commission shall publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1. The notice must state that a
description of the affected territory is available and can be inspected
in the county assessor's office. The notice must also name a date
when the commission will receive and hear all remonstrances and
objections from interested persons. After considering the evidence,
the commission shall take final action determining whether the
qualifications for a district have been met and confirming, modifying
and confirming, or rescinding the resolution. This determination is
final except that an appeal may be taken and heard as provided under
subsections (d) and (e).
(d) A person who filed a written remonstrance with the
commission under this section and who is aggrieved by the final
action taken may, within ten (10) days after that final action, initiate
an appeal of that action by filing in the office of the clerk of the
circuit or superior court a copy of the order of the commission and
a remonstrance against that order, together with a bond conditioned
to pay the costs of appeal if the appeal is determined against the
person. The only ground of appeal that the court may hear is whether
the proposed project will meet the qualifications of this chapter. The
burden of proof is on the appellant.
(e) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of the filing of the appeal. The court
shall hear evidence on the appeal, and may confirm the final action
of the commission or sustain the appeal. The judgment of the court
is final and conclusive, unless an appeal is taken as in other civil
actions. 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 manufacturing
equipment for which the person wishes to claim a deduction under
this chapter, the person must submit to the commission a statement
of benefits, in a form prescribed by the department of local
government finance. The statement of benefits must include the
following information:
(1) A description of the new manufacturing equipment that the
person proposes to acquire.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the person
as a result of the installation of the new manufacturing
equipment and an estimate of the annual salaries of these
individuals.
(3) An estimate of the cost of the new manufacturing
equipment.
(b) The statement of benefits may contain any other information
required by the commission. If the person is requesting or will be
requesting the designation of a district, the statement of benefits must
be submitted at the same time as the request for designation is
submitted.
(c) The commission shall review the statement of benefits if
required under subsection (b). The commission shall make findings
determining whether the estimate of:
(1) the number of individuals who will be employed or whose
employment 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 requires
information;
are benefits that can be reasonably expected to result from the
installation 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 new
manufacturing equipment whose statement of benefits is approved is
entitled to a deduction from the assessed value of that equipment for
a period of ten (10) years. Except as provided in subsections (b) and
(c), and subject to subsection (d) and section 14 of this chapter, for
the first five (5) years, the amount of the deduction for new
manufacturing equipment that an owner is entitled to for a particular
year equals the assessed value of the new manufacturing equipment.
Subject to subsection (d) and section 14 of this chapter, for the sixth
through the tenth year, the amount of the deduction equals the
product 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 year
the deduction is claimed for new manufacturing equipment to the
extent that it would cause the assessed value of all of the personal
property of the owner in the taxing district in which the equipment
is located to be less than the assessed value of all of the personal
property of the owner in that taxing district in the immediately
preceding year.
(c) If a deduction is not fully allowed under subsection (b) in the
first year the deduction is claimed, then the percentages specified in
subsection (a) apply in the subsequent years to the amount of
deduction that was allowed in the first year.
(d) For purposes of subsection (a), the assessed value of new
manufacturing equipment that is part of an owner's assessable
depreciable personal property in a single taxing district subject to the
valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is the
product of:
(1) the assessed value of the equipment determined without
regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC
5.1-6-9; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under
50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the owner's
depreciable personal property in the taxing district; divided
by
(B) the total true tax value of all of the owner's depreciable
personal property in the taxing district that is subject to the
valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9
determined:
(i) under the depreciation schedules in the rules of the
department of local government finance before any
adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50 IAC
4.2-4-9 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 provided
by section 10 of this chapter must file a certified deduction
application, on forms prescribed by the department of local
government finance, with:
(1) the auditor of the county in which the new manufacturing
equipment is located; and
(2) the department of local government finance.
A person that timely files a personal property return under
IC 6-1.1-3-7(a) for the year in which the new manufacturing
equipment is installed must file the application between March 1 and
May 15 of that year.
(b) The application required by this section must contain the
following information:
(1) The name of the owner of the new manufacturing
equipment.
(2) A description of the new manufacturing equipment.
(3) Proof of the date the new manufacturing equipment was
installed.
(4) The amount of the deduction claimed for the first year of the
deduction.
(c) A deduction application must be filed under this section in the
year in which the new manufacturing equipment is installed and in
each of the immediately succeeding nine (9) years.
(d) The department of local government finance shall review and
verify the correctness of each application and shall notify the county
auditor of the county in which the property is located that the
application is approved or denied or that the amount of the deduction
is altered. Upon notification of approval of the application or of
alteration of the amount of the deduction, the county auditor shall
make the deduction.
(e) If the ownership of new manufacturing equipment changes, the
deduction provided under section 10 of this chapter continues to
apply to that equipment if the new owner:
(1) continues to use the equipment in compliance with any
standards 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 would
have applied if the ownership of the property had not changed;
multiplied by
(2) the assessed value of the equipment for the year the
deduction 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 of
benefits
Sec. 12. In addition to the requirements of section 11(b) of this
chapter, an application for a deduction filed under section 11 of this
chapter must contain any additional information required to show
compliance with the statement of benefits approved under section 9
of 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 section
12 of this chapter to show compliance with a statement of benefits
approved under section 9 of this chapter, the property owner may
substitute a benefit performance waiver certificate issued by the
commission. The commission may issue a certificate if it finds that
causes beyond the reasonable control of the property owner are
preventing realization of the benefits identified in the statement of
benefits and if it finds that the purposes of the chapter are served by
allowing 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 a
deduction under this chapter for a particular assessment date in
an amount that is less than the amount to which the taxpayer is
entitled under this chapter; and
(2) the taxpayer is entitled to a correction of the error under this
article;
the county auditor shall apply the correction of the error in the
manner that corrections are applied under IC 6-1.1-12.1-15. As added by P.L.219-2007, SEC.85.
