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 hundred
five thousand (105,000) but less than one hundred ten thousand
(110,000).
(4) Each county having a population of more than three hundred
thousand (300,000) but less than four hundred thousand
(400,000).
(5) Each county having a population of more than one hundred
seventy thousand (170,000) but less than one hundred eighty
thousand (180,000).
(6) Each county having a population of more than one hundred
eighteen thousand (118,000) but less than one hundred twenty
thousand (120,000).
(7) Each city having a population of more than fifty-nine
thousand seven hundred (59,700) but less than sixty-five
thousand (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 the
following:
(1) With respect to a county having a consolidated city, the
metropolitan development commission acting as the
redevelopment commission of the consolidated city, subject to
IC 36-3-4-23.
(2) With respect to a city described in section 1(2) of this
chapter, the board of the airport authority for the city.
(3) With respect to a county described in section 1(3) of this
chapter, the board of an airport authority that is jointly
established 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) of
this chapter, the board of an airport authority that is jointly
established by the county and a municipality under IC 8-22-3.
(5) With respect to a county described in section 1(6) of this
chapter, the board of an airport authority that is established by
the county.
(6) With respect to a city described in section 1(7) of this
chapter, 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 this
chapter.
(6) A county described in section 1(5) of this chapter.
(7) A city located in a county described in section 1(5) of this
chapter.
(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 by
successor tenant
Sec. 3. (a) As used in this chapter, "qualified airport development
project" means an airport development project that has a cost of the
project (as defined in IC 4-4-10.9-5) greater than:
(1) five hundred million dollars ($500,000,000), if the project
is to be located in a county having a consolidated city; or
(2) two hundred fifty thousand dollars ($250,000), if the project
is 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 portion
or expansion of the original qualified airport development project
used 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 portion
of, or expansion of, the original qualified airport development project
used by a successor tenant unless the commission adopts a resolution
to 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 the
meanings 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 the
jurisdiction of a board of aviation commissioners under IC 8-22-2 or
an airport authority under IC 8-22-3 as an airport development zone
if the commission finds by resolution the following:
(1) In order to promote opportunities for the gainful
employment of the citizens of the eligible entity and the
attraction of a qualified airport development project to the
eligible entity, an area under the jurisdiction of the board of
aviation commissioners or airport authority should be declared
an airport development zone.
(2) The public health and welfare of the eligible entity will be
benefited by designating the area as an airport development
zone.
(b) If the airport development zone will be located in a
consolidated 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 qualified
airport development project to be located in the airport development
zone, with the proposal supported by:
(1) financial and economic data; and
(2) preliminary commitments by business enterprises that
evidence 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 city
described in:
(1) section 1(2) of this chapter, the resolution adopted under
subsection (a) must also include findings stating that the most
recent federal decennial census for the city indicates the
following:
(A) The unemployment rate for the city is at least thirteen
percent (13%).
(B) The population of the city has decreased by at least ten
percent (10%) as compared to the population reported in the
preceding federal decennial census for the city.
(C) The median per capita income for city residents does not
exceed eighty percent (80%) of the median per capita
income for all residents of the United States.
(D) At least twenty-five percent (25%) of the population of
the city is below the federal income poverty level (as defined
in IC 12-15-2-1); or
(2) section 1(7) of this chapter, the resolution adopted under
subsection (a) must also include findings stating the following:
(A) There has been proposed a qualified airport development
project to be located in the airport development zone, with
the proposal supported by:
(i) financial and economic data; and
(ii) preliminary commitments by business enterprises that
evidence a reasonable likelihood that the proposed
qualified airport development project will be initiated and
accomplished.
(B) The city has Interstate Highway 69 serving the airport
and the city's residents and facilitating commerce and free
travel within and through the midwestern United States.
(d) The resolution adopted under subsection (a) must describe the
boundaries of the area. The description may be by reference to the
area's location in relation to public ways or streams, or otherwise, as
determined by the commission.
(e) If the airport development zone will be located in a county
described in section 1(4), 1(5), or 1(6) of this chapter, the resolution
adopted under subsection (a) and any qualified airport development
project to be located in the airport development zone, must be
approved by the executive of:
(1) the county, if the entire airport development zone or
qualified airport development project will be located outside the
boundaries of any municipality located in the county;
(2) a municipality located in the county, if the entire airport
development 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 the
airport development zone or qualified airport development
project will be located within the boundary of the county and in
part 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 this
chapter, the commission shall:
(1) publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit that has
authority to levy property taxes in the geographic area where
the airport development zone is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the airport
development zone, including the following:
(i) The estimated economic benefits and costs incurred by
the airport development zone, as measured by increased
employment and anticipated growth of real property
assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the area designated
as an airport development zone and must state that written
remonstrances may be filed with the commission until the time
designated for the hearing. The notice must also name the place,
date, and time when the commission will receive and hear
remonstrances and objections from persons interested in or affected
by the proceedings pertaining to the proposed airport development
zone designation and will determine the public utility and benefit of
the proposed airport development zone designation. The commission
shall file the information required by subdivision (2) with the
officers of the taxing unit who are authorized to fix budgets, tax
rates, and tax levies under IC 6-1.1-17-5 at least ten (10) days before
the date of the public hearing. All persons affected in any manner by
the hearing, including all taxpayers within the taxing district of the
airport authority, shall be considered notified of the pendency of the
hearing and of subsequent acts, hearings, adjournments, and orders
of 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 from
time to time, the commission shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the commission shall take final action determining the
public utility and benefit of the proposed airport development zone
designation and confirming, modifying and confirming, or rescinding
the resolution. The final action taken by the commission shall be
recorded and is final and conclusive, except that an appeal may be
taken 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 the
commission under section 6 of this chapter and is aggrieved by the
final 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 the
county a copy of the commission's resolution and the person's
remonstrance against the resolution, together with the person's bond
as provided by IC 34-13-5-7.
(b) 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 filing of the appeal. The court shall
decide the appeal based on the record and evidence before the
commission, not by trial de novo, and may confirm the final action
of the commission or sustain the remonstrances. The judgment of the
court is final and conclusive, unless an appeal is taken as in other
civil 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 commission
under this chapter is a special taxing district authorized by the
general assembly to enable the eligible entity to provide special
benefits to taxpayers in the airport development zone by promoting
economic 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 finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
resolution adopted under section 5 or 9.5 of this chapter,
notwithstanding the date of the final action taken under section
6 of this chapter; plus
(2) to the extent it is not included in subdivision (1), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
However, subdivision (2) applies only to an airport development
zone established after June 30, 1997, and the portion of an airport
development zone established before June 30, 1997, that is added to
an existing airport development zone.
(b) A resolution adopted under section 5 of this chapter and
confirmed under section 6 of this chapter must include a provision
with respect to the allocation and distribution of property taxes for
the 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 property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the airport
development zone be allocated and distributed as provided in
subsections (d) and (e).
(d) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(1) the assessed value of the tangible property for the
assessment date with respect to which the allocation and
distribution is made; or
(2) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units.
(e) All of the property tax proceeds in excess of those described
in subsection (d) shall be allocated to the eligible entity for the
airport development zone and, when collected, paid into special
funds as follows:
(1) The commission may determine that a portion of tax
proceeds shall be allocated to a training grant fund to be
expended by the commission without appropriation solely for
the purpose of reimbursing training expenses incurred by public
or private entities in the training of employees for the qualified
airport development project.
(2) The commission may determine that a portion of tax
proceeds shall be allocated to a debt service fund and dedicated
to the payment of principal and interest on revenue bonds or a
loan contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
payment of leases for a qualified airport development project,
or to the payment of principal and interest on bonds issued by
an eligible entity to pay for qualified airport development
projects in the airport development zone or serving the airport
development zone.
(3) The commission may determine that a part of the tax
proceeds shall be allocated to a project fund and used to pay
expenses incurred by the commission for a qualified airport
development project that is in the airport development zone or
is serving the airport development zone.
(4) Except as provided in subsection (f), all remaining tax
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds
allocated to the project fund in subsection (e)(3) in the
following year will exceed the amount necessary to satisfy
amounts required under subsection (e).
(2) Provide a written notice to the county auditor and the
officers who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 for each of the other taxing units that
is wholly or partly located within the allocation area. The notice
must:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subsection (d); or
(B) state that the commission has determined that there are
no excess tax proceeds that may be allocated to the
respective taxing units in the manner prescribed in
subsection (d).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund
is sufficient to pay all outstanding principal and interest (to the
earliest date on which the obligations can be redeemed) on revenue
bonds issued by the board of aviation commissioners or airport
authority for the financing of qualified airport development projects,
all lease rentals payable on leases of qualified airport development
projects, and all costs and expenditures associated with all qualified
airport development projects, money in the debt service fund and in
the project fund in excess of those amounts shall be paid to the
respective taxing units in the manner prescribed by subsection (d).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable tangible property
situated upon or in, or added to, the airport development zone
effective on the next assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all
taxable tangible property in the airport development zone, for
purposes of tax limitation, property tax replacement, and formulation
of the budget, tax rate, and tax levy for each political subdivision in
which the property is located is the lesser of:
(1) the assessed value of the tangible property as valued without
regard 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 a
county described in section 1(5) of this chapter.
(b) The commission may amend a resolution adopted before
January 1, 2006, under section 5 of this chapter to include a
provision with respect to the allocation and distribution of property
taxes.
(c) For purposes of determining the allocation and distribution of
property taxes under this chapter, the "base assessed value" means
the net assessed value of all the tangible property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
amended resolution adopted under this section.
(d) An amendment adopted under this section must be approved
by the executive of:
(1) the county, if the entire airport development zone is located
outside the boundaries of any municipality located in the
county;
(2) a municipality located in the county, if the entire airport
development zone is located within the boundary of the
municipality; or
(3) the county and a municipality located in the county, if the
airport development zone is located within the boundary of the
county 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 of
local government finance shall make the rules and prescribe the
forms and procedures that the state board of accounts and department
consider appropriate for the implementation of this chapter.
(b) After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value (as defined in section 9 of this chapter) one (1) time
to neutralize any effect of the general reassessment on the property
tax proceeds allocated to the airport development zone's special
funds under section 9 of this chapter.
(c) After each annual adjustment under IC 6-1.1-4-4.5, the
department of local government finance shall adjust the base
assessed value (as defined in section 9 of this chapter) to neutralize
any effect of the annual adjustment on the property tax proceeds
allocated to the airport development zone's special funds under
section 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 located
in 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 this
chapter.
(b) Notwithstanding any other law, a business or an employee of
a business that is located in an airport development zone is entitled
to the benefits provided by the following statutes, as if the business
were 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 for
enterprise 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 the
debt service fund established under section 9(e)(2) of this chapter. If
the commission determines that a business has failed to pay the fee
required by this subsection, the business is not eligible for any of the
benefits described in subsection (b).
(d) A business that receives any of the benefits described in
subsection (b) must use all of those benefits, except for the amount
of the fee required by subsection (c), for its property or employees in
the airport development zone and to assist the commission. If the
commission determines that a business has failed to use its benefits
in the manner required by this subsection, the business is not eligible
for any of the benefits described in subsection (b).
(e) If the commission determines that a business has failed to pay
the fee required by subsection (c) or has failed to use benefits in the
manner required by subsection (d), the commission shall provide
written notice of the determination to the department of state
revenue, the department of local government finance, and the county
auditor. 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 airport
development 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 or
measured by either gross income or net income.
(b) The attraction or retention of qualified airport development
projects to a consolidated city within Indiana is a governmental
function of general public benefit for all the citizens of Indiana.
(c) As an incentive to attract or retain qualified airport
development projects to Indiana, for a period of thirty-five (35)
years, beginning January 1, 1991, persons that locate and operate a
qualified airport development project in an airport development zone
in 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 qualified
airport development project in the consolidated city;
(2) the construction, modification, alteration, or completion of
the qualified airport development project;
(3) the employment of personnel or the ownership or rental of
property at or in conjunction with the qualified airport
development 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 under
IC 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.)
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 hundred
five thousand (105,000) but less than one hundred ten thousand
(110,000).
(4) Each county having a population of more than three hundred
thousand (300,000) but less than four hundred thousand
(400,000).
(5) Each county having a population of more than one hundred
seventy thousand (170,000) but less than one hundred eighty
thousand (180,000).
(6) Each county having a population of more than one hundred
eighteen thousand (118,000) but less than one hundred twenty
thousand (120,000).
(7) Each city having a population of more than fifty-nine
thousand seven hundred (59,700) but less than sixty-five
thousand (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 the
following:
(1) With respect to a county having a consolidated city, the
metropolitan development commission acting as the
redevelopment commission of the consolidated city, subject to
IC 36-3-4-23.
(2) With respect to a city described in section 1(2) of this
chapter, the board of the airport authority for the city.
(3) With respect to a county described in section 1(3) of this
chapter, the board of an airport authority that is jointly
established 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) of
this chapter, the board of an airport authority that is jointly
established by the county and a municipality under IC 8-22-3.
(5) With respect to a county described in section 1(6) of this
chapter, the board of an airport authority that is established by
the county.
(6) With respect to a city described in section 1(7) of this
chapter, 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 this
chapter.
(6) A county described in section 1(5) of this chapter.
(7) A city located in a county described in section 1(5) of this
chapter.
(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 by
successor tenant
Sec. 3. (a) As used in this chapter, "qualified airport development
project" means an airport development project that has a cost of the
project (as defined in IC 4-4-10.9-5) greater than:
(1) five hundred million dollars ($500,000,000), if the project
is to be located in a county having a consolidated city; or
(2) two hundred fifty thousand dollars ($250,000), if the project
is 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 portion
or expansion of the original qualified airport development project
used 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 portion
of, or expansion of, the original qualified airport development project
used by a successor tenant unless the commission adopts a resolution
to 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 the
meanings 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 the
jurisdiction of a board of aviation commissioners under IC 8-22-2 or
an airport authority under IC 8-22-3 as an airport development zone
if the commission finds by resolution the following:
(1) In order to promote opportunities for the gainful
employment of the citizens of the eligible entity and the
attraction of a qualified airport development project to the
eligible entity, an area under the jurisdiction of the board of
aviation commissioners or airport authority should be declared
an airport development zone.
(2) The public health and welfare of the eligible entity will be
benefited by designating the area as an airport development
zone.
(b) If the airport development zone will be located in a
consolidated 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 qualified
airport development project to be located in the airport development
zone, with the proposal supported by:
(1) financial and economic data; and
(2) preliminary commitments by business enterprises that
evidence 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 city
described in:
(1) section 1(2) of this chapter, the resolution adopted under
subsection (a) must also include findings stating that the most
recent federal decennial census for the city indicates the
following:
(A) The unemployment rate for the city is at least thirteen
percent (13%).
(B) The population of the city has decreased by at least ten
percent (10%) as compared to the population reported in the
preceding federal decennial census for the city.
(C) The median per capita income for city residents does not
exceed eighty percent (80%) of the median per capita
income for all residents of the United States.
(D) At least twenty-five percent (25%) of the population of
the city is below the federal income poverty level (as defined
in IC 12-15-2-1); or
(2) section 1(7) of this chapter, the resolution adopted under
subsection (a) must also include findings stating the following:
(A) There has been proposed a qualified airport development
project to be located in the airport development zone, with
the proposal supported by:
(i) financial and economic data; and
(ii) preliminary commitments by business enterprises that
evidence a reasonable likelihood that the proposed
qualified airport development project will be initiated and
accomplished.
(B) The city has Interstate Highway 69 serving the airport
and the city's residents and facilitating commerce and free
travel within and through the midwestern United States.
(d) The resolution adopted under subsection (a) must describe the
boundaries of the area. The description may be by reference to the
area's location in relation to public ways or streams, or otherwise, as
determined by the commission.
(e) If the airport development zone will be located in a county
described in section 1(4), 1(5), or 1(6) of this chapter, the resolution
adopted under subsection (a) and any qualified airport development
project to be located in the airport development zone, must be
approved by the executive of:
(1) the county, if the entire airport development zone or
qualified airport development project will be located outside the
boundaries of any municipality located in the county;
(2) a municipality located in the county, if the entire airport
development 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 the
airport development zone or qualified airport development
project will be located within the boundary of the county and in
part 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 this
chapter, the commission shall:
(1) publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit that has
authority to levy property taxes in the geographic area where
the airport development zone is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the airport
development zone, including the following:
(i) The estimated economic benefits and costs incurred by
the airport development zone, as measured by increased
employment and anticipated growth of real property
assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the area designated
as an airport development zone and must state that written
remonstrances may be filed with the commission until the time
designated for the hearing. The notice must also name the place,
date, and time when the commission will receive and hear
remonstrances and objections from persons interested in or affected
by the proceedings pertaining to the proposed airport development
zone designation and will determine the public utility and benefit of
the proposed airport development zone designation. The commission
shall file the information required by subdivision (2) with the
officers of the taxing unit who are authorized to fix budgets, tax
rates, and tax levies under IC 6-1.1-17-5 at least ten (10) days before
the date of the public hearing. All persons affected in any manner by
the hearing, including all taxpayers within the taxing district of the
airport authority, shall be considered notified of the pendency of the
hearing and of subsequent acts, hearings, adjournments, and orders
of 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 from
time to time, the commission shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the commission shall take final action determining the
public utility and benefit of the proposed airport development zone
designation and confirming, modifying and confirming, or rescinding
the resolution. The final action taken by the commission shall be
recorded and is final and conclusive, except that an appeal may be
taken 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 the
commission under section 6 of this chapter and is aggrieved by the
final 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 the
county a copy of the commission's resolution and the person's
remonstrance against the resolution, together with the person's bond
as provided by IC 34-13-5-7.
(b) 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 filing of the appeal. The court shall
decide the appeal based on the record and evidence before the
commission, not by trial de novo, and may confirm the final action
of the commission or sustain the remonstrances. The judgment of the
court is final and conclusive, unless an appeal is taken as in other
civil 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 commission
under this chapter is a special taxing district authorized by the
general assembly to enable the eligible entity to provide special
benefits to taxpayers in the airport development zone by promoting
economic 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 finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
resolution adopted under section 5 or 9.5 of this chapter,
notwithstanding the date of the final action taken under section
6 of this chapter; plus
(2) to the extent it is not included in subdivision (1), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
However, subdivision (2) applies only to an airport development
zone established after June 30, 1997, and the portion of an airport
development zone established before June 30, 1997, that is added to
an existing airport development zone.
(b) A resolution adopted under section 5 of this chapter and
confirmed under section 6 of this chapter must include a provision
with respect to the allocation and distribution of property taxes for
the 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 property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the airport
development zone be allocated and distributed as provided in
subsections (d) and (e).
(d) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(1) the assessed value of the tangible property for the
assessment date with respect to which the allocation and
distribution is made; or
(2) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units.
(e) All of the property tax proceeds in excess of those described
in subsection (d) shall be allocated to the eligible entity for the
airport development zone and, when collected, paid into special
funds as follows:
(1) The commission may determine that a portion of tax
proceeds shall be allocated to a training grant fund to be
expended by the commission without appropriation solely for
the purpose of reimbursing training expenses incurred by public
or private entities in the training of employees for the qualified
airport development project.
(2) The commission may determine that a portion of tax
proceeds shall be allocated to a debt service fund and dedicated
to the payment of principal and interest on revenue bonds or a
loan contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
payment of leases for a qualified airport development project,
or to the payment of principal and interest on bonds issued by
an eligible entity to pay for qualified airport development
projects in the airport development zone or serving the airport
development zone.
(3) The commission may determine that a part of the tax
proceeds shall be allocated to a project fund and used to pay
expenses incurred by the commission for a qualified airport
development project that is in the airport development zone or
is serving the airport development zone.
(4) Except as provided in subsection (f), all remaining tax
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds
allocated to the project fund in subsection (e)(3) in the
following year will exceed the amount necessary to satisfy
amounts required under subsection (e).
(2) Provide a written notice to the county auditor and the
officers who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 for each of the other taxing units that
is wholly or partly located within the allocation area. The notice
must:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subsection (d); or
(B) state that the commission has determined that there are
no excess tax proceeds that may be allocated to the
respective taxing units in the manner prescribed in
subsection (d).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund
is sufficient to pay all outstanding principal and interest (to the
earliest date on which the obligations can be redeemed) on revenue
bonds issued by the board of aviation commissioners or airport
authority for the financing of qualified airport development projects,
all lease rentals payable on leases of qualified airport development
projects, and all costs and expenditures associated with all qualified
airport development projects, money in the debt service fund and in
the project fund in excess of those amounts shall be paid to the
respective taxing units in the manner prescribed by subsection (d).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable tangible property
situated upon or in, or added to, the airport development zone
effective on the next assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all
taxable tangible property in the airport development zone, for
purposes of tax limitation, property tax replacement, and formulation
of the budget, tax rate, and tax levy for each political subdivision in
which the property is located is the lesser of:
(1) the assessed value of the tangible property as valued without
regard 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 a
county described in section 1(5) of this chapter.
(b) The commission may amend a resolution adopted before
January 1, 2006, under section 5 of this chapter to include a
provision with respect to the allocation and distribution of property
taxes.
(c) For purposes of determining the allocation and distribution of
property taxes under this chapter, the "base assessed value" means
the net assessed value of all the tangible property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
amended resolution adopted under this section.
(d) An amendment adopted under this section must be approved
by the executive of:
(1) the county, if the entire airport development zone is located
outside the boundaries of any municipality located in the
county;
(2) a municipality located in the county, if the entire airport
development zone is located within the boundary of the
municipality; or
(3) the county and a municipality located in the county, if the
airport development zone is located within the boundary of the
county 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 of
local government finance shall make the rules and prescribe the
forms and procedures that the state board of accounts and department
consider appropriate for the implementation of this chapter.
(b) After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value (as defined in section 9 of this chapter) one (1) time
to neutralize any effect of the general reassessment on the property
tax proceeds allocated to the airport development zone's special
funds under section 9 of this chapter.
(c) After each annual adjustment under IC 6-1.1-4-4.5, the
department of local government finance shall adjust the base
assessed value (as defined in section 9 of this chapter) to neutralize
any effect of the annual adjustment on the property tax proceeds
allocated to the airport development zone's special funds under
section 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 located
in 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 this
chapter.
(b) Notwithstanding any other law, a business or an employee of
a business that is located in an airport development zone is entitled
to the benefits provided by the following statutes, as if the business
were 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 for
enterprise 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 the
debt service fund established under section 9(e)(2) of this chapter. If
the commission determines that a business has failed to pay the fee
required by this subsection, the business is not eligible for any of the
benefits described in subsection (b).
(d) A business that receives any of the benefits described in
subsection (b) must use all of those benefits, except for the amount
of the fee required by subsection (c), for its property or employees in
the airport development zone and to assist the commission. If the
commission determines that a business has failed to use its benefits
in the manner required by this subsection, the business is not eligible
for any of the benefits described in subsection (b).
(e) If the commission determines that a business has failed to pay
the fee required by subsection (c) or has failed to use benefits in the
manner required by subsection (d), the commission shall provide
written notice of the determination to the department of state
revenue, the department of local government finance, and the county
auditor. 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 airport
development 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 or
measured by either gross income or net income.
(b) The attraction or retention of qualified airport development
projects to a consolidated city within Indiana is a governmental
function of general public benefit for all the citizens of Indiana.
(c) As an incentive to attract or retain qualified airport
development projects to Indiana, for a period of thirty-five (35)
years, beginning January 1, 1991, persons that locate and operate a
qualified airport development project in an airport development zone
in 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 qualified
airport development project in the consolidated city;
(2) the construction, modification, alteration, or completion of
the qualified airport development project;
(3) the employment of personnel or the ownership or rental of
property at or in conjunction with the qualified airport
development 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 under
IC 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.)
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 hundred
five thousand (105,000) but less than one hundred ten thousand
(110,000).
(4) Each county having a population of more than three hundred
thousand (300,000) but less than four hundred thousand
(400,000).
(5) Each county having a population of more than one hundred
seventy thousand (170,000) but less than one hundred eighty
thousand (180,000).
(6) Each county having a population of more than one hundred
eighteen thousand (118,000) but less than one hundred twenty
thousand (120,000).
(7) Each city having a population of more than fifty-nine
thousand seven hundred (59,700) but less than sixty-five
thousand (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 the
following:
(1) With respect to a county having a consolidated city, the
metropolitan development commission acting as the
redevelopment commission of the consolidated city, subject to
IC 36-3-4-23.
(2) With respect to a city described in section 1(2) of this
chapter, the board of the airport authority for the city.
(3) With respect to a county described in section 1(3) of this
chapter, the board of an airport authority that is jointly
established 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) of
this chapter, the board of an airport authority that is jointly
established by the county and a municipality under IC 8-22-3.
(5) With respect to a county described in section 1(6) of this
chapter, the board of an airport authority that is established by
the county.
(6) With respect to a city described in section 1(7) of this
chapter, 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 this
chapter.
(6) A county described in section 1(5) of this chapter.
(7) A city located in a county described in section 1(5) of this
chapter.
(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 by
successor tenant
Sec. 3. (a) As used in this chapter, "qualified airport development
project" means an airport development project that has a cost of the
project (as defined in IC 4-4-10.9-5) greater than:
(1) five hundred million dollars ($500,000,000), if the project
is to be located in a county having a consolidated city; or
(2) two hundred fifty thousand dollars ($250,000), if the project
is 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 portion
or expansion of the original qualified airport development project
used 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 portion
of, or expansion of, the original qualified airport development project
used by a successor tenant unless the commission adopts a resolution
to 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 the
meanings 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 the
jurisdiction of a board of aviation commissioners under IC 8-22-2 or
an airport authority under IC 8-22-3 as an airport development zone
if the commission finds by resolution the following:
(1) In order to promote opportunities for the gainful
employment of the citizens of the eligible entity and the
attraction of a qualified airport development project to the
eligible entity, an area under the jurisdiction of the board of
aviation commissioners or airport authority should be declared
an airport development zone.
(2) The public health and welfare of the eligible entity will be
benefited by designating the area as an airport development
zone.
(b) If the airport development zone will be located in a
consolidated 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 qualified
airport development project to be located in the airport development
zone, with the proposal supported by:
(1) financial and economic data; and
(2) preliminary commitments by business enterprises that
evidence 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 city
described in:
(1) section 1(2) of this chapter, the resolution adopted under
subsection (a) must also include findings stating that the most
recent federal decennial census for the city indicates the
following:
(A) The unemployment rate for the city is at least thirteen
percent (13%).
(B) The population of the city has decreased by at least ten
percent (10%) as compared to the population reported in the
preceding federal decennial census for the city.
(C) The median per capita income for city residents does not
exceed eighty percent (80%) of the median per capita
income for all residents of the United States.
(D) At least twenty-five percent (25%) of the population of
the city is below the federal income poverty level (as defined
in IC 12-15-2-1); or
(2) section 1(7) of this chapter, the resolution adopted under
subsection (a) must also include findings stating the following:
(A) There has been proposed a qualified airport development
project to be located in the airport development zone, with
the proposal supported by:
(i) financial and economic data; and
(ii) preliminary commitments by business enterprises that
evidence a reasonable likelihood that the proposed
qualified airport development project will be initiated and
accomplished.
(B) The city has Interstate Highway 69 serving the airport
and the city's residents and facilitating commerce and free
travel within and through the midwestern United States.
(d) The resolution adopted under subsection (a) must describe the
boundaries of the area. The description may be by reference to the
area's location in relation to public ways or streams, or otherwise, as
determined by the commission.
(e) If the airport development zone will be located in a county
described in section 1(4), 1(5), or 1(6) of this chapter, the resolution
adopted under subsection (a) and any qualified airport development
project to be located in the airport development zone, must be
approved by the executive of:
(1) the county, if the entire airport development zone or
qualified airport development project will be located outside the
boundaries of any municipality located in the county;
(2) a municipality located in the county, if the entire airport
development 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 the
airport development zone or qualified airport development
project will be located within the boundary of the county and in
part 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 this
chapter, the commission shall:
(1) publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit that has
authority to levy property taxes in the geographic area where
the airport development zone is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the airport
development zone, including the following:
(i) The estimated economic benefits and costs incurred by
the airport development zone, as measured by increased
employment and anticipated growth of real property
assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the area designated
as an airport development zone and must state that written
remonstrances may be filed with the commission until the time
designated for the hearing. The notice must also name the place,
date, and time when the commission will receive and hear
remonstrances and objections from persons interested in or affected
by the proceedings pertaining to the proposed airport development
zone designation and will determine the public utility and benefit of
the proposed airport development zone designation. The commission
shall file the information required by subdivision (2) with the
officers of the taxing unit who are authorized to fix budgets, tax
rates, and tax levies under IC 6-1.1-17-5 at least ten (10) days before
the date of the public hearing. All persons affected in any manner by
the hearing, including all taxpayers within the taxing district of the
airport authority, shall be considered notified of the pendency of the
hearing and of subsequent acts, hearings, adjournments, and orders
of 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 from
time to time, the commission shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the commission shall take final action determining the
public utility and benefit of the proposed airport development zone
designation and confirming, modifying and confirming, or rescinding
the resolution. The final action taken by the commission shall be
recorded and is final and conclusive, except that an appeal may be
taken 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 the
commission under section 6 of this chapter and is aggrieved by the
final 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 the
county a copy of the commission's resolution and the person's
remonstrance against the resolution, together with the person's bond
as provided by IC 34-13-5-7.
(b) 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 filing of the appeal. The court shall
decide the appeal based on the record and evidence before the
commission, not by trial de novo, and may confirm the final action
of the commission or sustain the remonstrances. The judgment of the
court is final and conclusive, unless an appeal is taken as in other
civil 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 commission
under this chapter is a special taxing district authorized by the
general assembly to enable the eligible entity to provide special
benefits to taxpayers in the airport development zone by promoting
economic 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 finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
resolution adopted under section 5 or 9.5 of this chapter,
notwithstanding the date of the final action taken under section
6 of this chapter; plus
(2) to the extent it is not included in subdivision (1), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
However, subdivision (2) applies only to an airport development
zone established after June 30, 1997, and the portion of an airport
development zone established before June 30, 1997, that is added to
an existing airport development zone.
(b) A resolution adopted under section 5 of this chapter and
confirmed under section 6 of this chapter must include a provision
with respect to the allocation and distribution of property taxes for
the 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 property
subsequently levied by or for the benefit of any public body
entitled to a distribution of property taxes in the airport
development zone be allocated and distributed as provided in
subsections (d) and (e).
(d) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(1) the assessed value of the tangible property for the
assessment date with respect to which the allocation and
distribution is made; or
(2) the base assessed value;
shall be allocated and, when collected, paid into the funds of the
respective taxing units.
(e) All of the property tax proceeds in excess of those described
in subsection (d) shall be allocated to the eligible entity for the
airport development zone and, when collected, paid into special
funds as follows:
(1) The commission may determine that a portion of tax
proceeds shall be allocated to a training grant fund to be
expended by the commission without appropriation solely for
the purpose of reimbursing training expenses incurred by public
or private entities in the training of employees for the qualified
airport development project.
(2) The commission may determine that a portion of tax
proceeds shall be allocated to a debt service fund and dedicated
to the payment of principal and interest on revenue bonds or a
loan contract of the board of aviation commissioners or airport
authority for a qualified airport development project, to the
payment of leases for a qualified airport development project,
or to the payment of principal and interest on bonds issued by
an eligible entity to pay for qualified airport development
projects in the airport development zone or serving the airport
development zone.
(3) The commission may determine that a part of the tax
proceeds shall be allocated to a project fund and used to pay
expenses incurred by the commission for a qualified airport
development project that is in the airport development zone or
is serving the airport development zone.
(4) Except as provided in subsection (f), all remaining tax
proceeds after allocations are made under subdivisions (1), (2),
and (3) shall be allocated to a project fund and dedicated to the
reimbursement of expenditures made by the commission for a
qualified airport development project that is in the airport
development zone or is serving the airport development zone.
(f) Before July 15 of each year, the commission shall do the
following:
(1) Determine the amount, if any, by which tax proceeds
allocated to the project fund in subsection (e)(3) in the
following year will exceed the amount necessary to satisfy
amounts required under subsection (e).
(2) Provide a written notice to the county auditor and the
officers who are authorized to fix budgets, tax rates, and tax
levies under IC 6-1.1-17-5 for each of the other taxing units that
is wholly or partly located within the allocation area. The notice
must:
(A) state the amount, if any, of excess tax proceeds that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subsection (d); or
(B) state that the commission has determined that there are
no excess tax proceeds that may be allocated to the
respective taxing units in the manner prescribed in
subsection (d).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess tax proceeds determined by the
commission.
(g) When money in the debt service fund and in the project fund
is sufficient to pay all outstanding principal and interest (to the
earliest date on which the obligations can be redeemed) on revenue
bonds issued by the board of aviation commissioners or airport
authority for the financing of qualified airport development projects,
all lease rentals payable on leases of qualified airport development
projects, and all costs and expenditures associated with all qualified
airport development projects, money in the debt service fund and in
the project fund in excess of those amounts shall be paid to the
respective taxing units in the manner prescribed by subsection (d).
(h) Property tax proceeds allocable to the debt service fund under
subsection (e)(2) must, subject to subsection (g), be irrevocably
pledged by the eligible entity for the purpose set forth in subsection
(e)(2).
(i) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable tangible property
situated upon or in, or added to, the airport development zone
effective on the next assessment date after the petition.
(j) Notwithstanding any other law, the assessed value of all
taxable tangible property in the airport development zone, for
purposes of tax limitation, property tax replacement, and formulation
of the budget, tax rate, and tax levy for each political subdivision in
which the property is located is the lesser of:
(1) the assessed value of the tangible property as valued without
regard 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 a
county described in section 1(5) of this chapter.
(b) The commission may amend a resolution adopted before
January 1, 2006, under section 5 of this chapter to include a
provision with respect to the allocation and distribution of property
taxes.
(c) For purposes of determining the allocation and distribution of
property taxes under this chapter, the "base assessed value" means
the net assessed value of all the tangible property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the commission's
amended resolution adopted under this section.
(d) An amendment adopted under this section must be approved
by the executive of:
(1) the county, if the entire airport development zone is located
outside the boundaries of any municipality located in the
county;
(2) a municipality located in the county, if the entire airport
development zone is located within the boundary of the
municipality; or
(3) the county and a municipality located in the county, if the
airport development zone is located within the boundary of the
county 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 of
local government finance shall make the rules and prescribe the
forms and procedures that the state board of accounts and department
consider appropriate for the implementation of this chapter.
(b) After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value (as defined in section 9 of this chapter) one (1) time
to neutralize any effect of the general reassessment on the property
tax proceeds allocated to the airport development zone's special
funds under section 9 of this chapter.
(c) After each annual adjustment under IC 6-1.1-4-4.5, the
department of local government finance shall adjust the base
assessed value (as defined in section 9 of this chapter) to neutralize
any effect of the annual adjustment on the property tax proceeds
allocated to the airport development zone's special funds under
section 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 located
in 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 this
chapter.
(b) Notwithstanding any other law, a business or an employee of
a business that is located in an airport development zone is entitled
to the benefits provided by the following statutes, as if the business
were 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 for
enterprise 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 the
debt service fund established under section 9(e)(2) of this chapter. If
the commission determines that a business has failed to pay the fee
required by this subsection, the business is not eligible for any of the
benefits described in subsection (b).
(d) A business that receives any of the benefits described in
subsection (b) must use all of those benefits, except for the amount
of the fee required by subsection (c), for its property or employees in
the airport development zone and to assist the commission. If the
commission determines that a business has failed to use its benefits
in the manner required by this subsection, the business is not eligible
for any of the benefits described in subsection (b).
(e) If the commission determines that a business has failed to pay
the fee required by subsection (c) or has failed to use benefits in the
manner required by subsection (d), the commission shall provide
written notice of the determination to the department of state
revenue, the department of local government finance, and the county
auditor. 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 airport
development 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 or
measured by either gross income or net income.
(b) The attraction or retention of qualified airport development
projects to a consolidated city within Indiana is a governmental
function of general public benefit for all the citizens of Indiana.
(c) As an incentive to attract or retain qualified airport
development projects to Indiana, for a period of thirty-five (35)
years, beginning January 1, 1991, persons that locate and operate a
qualified airport development project in an airport development zone
in 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 qualified
airport development project in the consolidated city;
(2) the construction, modification, alteration, or completion of
the qualified airport development project;
(3) the employment of personnel or the ownership or rental of
property at or in conjunction with the qualified airport
development 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 under
IC 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.)
