2010 Indiana Code
TITLE 6. TAXATION
ARTICLE 1.1. PROPERTY TAXES
CHAPTER 12.1. DEDUCTION FOR REHABILITATION OR REDEVELOPMENT OF REAL PROPERTY IN ECONOMIC REVITALIZATION AREAS
IC 6-1.1-12.1
Chapter 12.1. Deduction for Rehabilitation or Redevelopment of
Real Property in Economic Revitalization Areas
IC 6-1.1-12.1-1
Definitions
Sec. 1. For purposes of this chapter:
(1) "Economic revitalization area" means an area which is
within the corporate limits of a city, town, or county which has
become undesirable for, or impossible of, normal development
and occupancy because of a lack of development, cessation of
growth, deterioration of improvements or character of
occupancy, age, obsolescence, substandard buildings, or other
factors which have impaired values or prevent a normal
development of property or use of property. The term
"economic revitalization area" also includes:
(A) any area where a facility or a group of facilities that are
technologically, economically, or energy obsolete are
located and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise
provided in this chapter.
(2) "City" means any city in this state, and "town" means any
town incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means tangible personal
property that a deduction applicant:
(A) installs after February 28, 1983, and on or before the
approval deadline determined under section 9 of this chapter,
in an area that is declared an economic revitalization area
after February 28, 1983, in which a deduction for tangible
personal property is allowed;
(B) uses in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or
finishing of other tangible personal property, including but
not limited to use to dispose of solid waste or hazardous
waste by converting the solid waste or hazardous waste into
energy or other useful products;
(C) acquires for use as described in clause (B):
(i) in an arms length transaction from an entity that is not
an affiliate of the deduction applicant, if the tangible
personal property has been previously used in Indiana
before the installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(D) has never used for any purpose in Indiana before the
installation described in clause (A).
However, notwithstanding any other law, the term includes
tangible personal property that is used to dispose of solid waste
or hazardous waste by converting the solid waste or hazardous
waste into energy or other useful products and was installed
after March 1, 1993, and before March 2, 1996, even if the
property was installed before the area where the property is
located was designated as an economic revitalization area or the
statement of benefits for the property was approved by the
designating body.
(4) "Property" means a building or structure, but does not
include land.
(5) "Redevelopment" means the construction of new structures,
in economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure is
demolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or betterment
of property in any manner or any enlargement or extension of
property.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city,
the fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, the
metropolitan development commission.
(8) "Deduction application" means:
(A) the application filed in accordance with section 5 of this
chapter by a property owner who desires to obtain the
deduction provided by section 3 of this chapter;
(B) the application filed in accordance with section 5.4 of
this chapter by a person who desires to obtain the deduction
provided by section 4.5 of this chapter; or
(C) the application filed in accordance with section 5.3 of
this chapter by a property owner that desires to obtain the
deduction provided by section 4.8 of this chapter.
(9) "Designation application" means an application that is filed
with a designating body to assist that body in making a
determination about whether a particular area should be
designated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a). The term includes waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in
IC 13-11-2-205(a). However, the term does not include dead
animals or any animal solid or semisolid wastes.
(12) "New research and development equipment" means
tangible personal property that:
(A) a deduction applicant installs after June 30, 2000, and on
or before the approval deadline determined under section 9
of this chapter, in an economic revitalization area in which
a deduction for tangible personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) the deduction applicant uses in research and
development activities devoted directly and exclusively to
experimental or laboratory research and development for
new products, new uses of existing products, or improving
or testing existing products;
(D) the deduction applicant acquires for purposes described
in this subdivision:
(i) in an arms length transaction from an entity that is not
an affiliate of the deduction applicant, if the tangible
personal property has been previously used in Indiana
before the installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(E) the deduction applicant has never used for any purpose
in Indiana before the installation described in clause (A).
The term does not include equipment installed in facilities used
for or in connection with efficiency surveys, management
studies, consumer surveys, economic surveys, advertising or
promotion, or research in connection with literacy, history, or
similar projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) a deduction applicant installs after June 30, 2004, and on
or before the approval deadline determined under section 9
of this chapter, in an economic revitalization area in which
a deduction for tangible personal property is allowed;
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) fork lifts or lifting equipment (including "walk
behinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical distribution;
(C) the deduction applicant acquires for the storage or
distribution of goods, services, or information:
(i) in an arms length transaction from an entity that is not
an affiliate of the deduction applicant, if the tangible
personal property has been previously used in Indiana
before the installation described in clause (A); and
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(D) the deduction applicant has never used for any purpose
in Indiana before the installation described in clause (A).
(14) "New information technology equipment" means tangible
personal property that:
(A) a deduction applicant installs after June 30, 2004, and on
or before the approval deadline determined under section 9
of this chapter, in an economic revitalization area in which
a deduction for tangible personal property is allowed;
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics;
(C) the deduction applicant acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant; and
(D) the deduction applicant never used for any purpose in
Indiana before the installation described in clause (A).
(15) "Deduction applicant" means an owner of tangible personal
property who makes a deduction application.
(16) "Affiliate" means an entity that effectively controls or is
controlled by a deduction applicant or is associated with a
deduction applicant under common ownership or control,
whether by shareholdings or other means.
(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the owner
of the building or a tenant of the owner occupies the
building, as evidenced by a valid certificate of occupancy,
paid utility receipts, executed lease agreements, or any other
evidence of occupation that the department of local
government finance requires.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.5; Acts 1980, P.L.42, SEC.1; Acts 1981, P.L.72, SEC.1;
P.L.71-1983, SEC.1; P.L.56-1988, SEC.1; P.L.47-1990, SEC.2;
P.L.42-1992, SEC.1; P.L.18-1992, SEC.21; P.L.25-1995, SEC.17;
P.L.1-1996, SEC.39; P.L.4-2000, SEC.1; P.L.64-2004, SEC.4 and
P.L.81-2004, SEC.48; P.L.216-2005, SEC.1; P.L.154-2006, SEC.24;
P.L.219-2007, SEC.28; P.L.224-2007, SEC.4.
IC 6-1.1-12.1-2
Findings by designating body; economic revitalization area;
residentially distressed area; conditions; property tax deductions;
fees
Sec. 2. (a) A designating body may find that a particular area
within its jurisdiction is an economic revitalization area. However,
the deduction provided by this chapter for economic revitalization
areas not within a city or town shall not be available to retail
businesses.
(b) In a county containing a consolidated city or within a city or
town, a designating body may find that a particular area within its
jurisdiction is a residentially distressed area. Designation of an area
as a residentially distressed area has the same effect as designating
an area as an economic revitalization area, except that the amount of
the deduction shall be calculated as specified in section 4.1 of this
chapter and the deduction is allowed for not more than five (5) years.
In order to declare a particular area a residentially distressed area, the
designating body must follow the same procedure that is required to
designate an area as an economic revitalization area and must make
all the following additional findings or all the additional findings
described in subsection (c):
(1) The area is comprised of parcels that are either unimproved
or contain only one (1) or two (2) family dwellings or
multifamily dwellings designed for up to four (4) families,
including accessory buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and
are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and
IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of
the additional findings described in this subsection or one (1) of the
additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or
town, a designating body that wishes to designate a particular area a
residentially distressed area may make the following additional
findings as an alternative to the additional findings described in
subsection (b):
(1) A significant number of dwelling units within the area are
not permanently occupied or a significant number of parcels in
the area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number of
dwelling units, as documented by census information, local
building and demolition permits, or certificates of occupancy,
or the area is owned by Indiana or the United States.
(4) The area (plus any areas previously designated under this
subsection) will not exceed ten percent (10%) of the total area
within the designating body's jurisdiction.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of
the additional findings described in this subsection as an alternative
to one (1) of the additional findings described in subsection (b).
(d) A designating body is required to attach the following
conditions to the grant of a residentially distressed area designation:
(1) The deduction will not be allowed unless the dwelling is
rehabilitated to meet local code standards for habitability.
(2) If a designation application is filed, the designating body
may require that the redevelopment or rehabilitation be
completed within a reasonable period of time.
(e) To make a designation described in subsection (a) or (b), the
designating body shall use procedures prescribed in section 2.5 of
this chapter.
(f) The property tax deductions provided by section 3, 4.5, or 4.8
of this chapter are only available within an area which the
designating body finds to be an economic revitalization area.
(g) The designating body may adopt a resolution establishing
general standards to be used, along with the requirements set forth in
the definition of economic revitalization area, by the designating
body in finding an area to be an economic revitalization area. The
standards must have a reasonable relationship to the development
objectives of the area in which the designating body has jurisdiction.
The following four (4) sets of standards may be established:
(1) One (1) relative to the deduction under section 3 of this
chapter for economic revitalization areas that are not
residentially distressed areas.
(2) One (1) relative to the deduction under section 3 of this
chapter for residentially distressed areas.
(3) One (1) relative to the deduction allowed under section 4.5
of this chapter.
(4) One (1) relative to the deduction allowed under section 4.8
of this chapter.
(h) A designating body may impose a fee for filing a designation
application for a person requesting the designation of a particular
area as an economic revitalization area. The fee may be sufficient to
defray actual processing and administrative costs. However, the fee
charged for filing a designation application for a parcel that contains
one (1) or more owner-occupied, single-family dwellings may not
exceed the cost of publishing the required notice.
(i) In declaring an area an economic revitalization area, the
designating body may:
(1) limit the time period to a certain number of calendar years
during which the economic revitalization area shall be so
designated;
(2) limit the type of deductions that will be allowed within the
economic revitalization area to the deduction allowed under
section 3 of this chapter, the deduction allowed under section
4.5 of this chapter, the deduction allowed under section 4.8 of
this chapter, or any combination of these deductions;
(3) limit the dollar amount of the deduction that will be allowed
with respect to new manufacturing equipment, new research
and development equipment, new logistical distribution
equipment, and new information technology equipment if a
deduction under this chapter had not been filed before July 1,
1987, for that equipment;
(4) limit the dollar amount of the deduction that will be allowed
with respect to redevelopment and rehabilitation occurring in
areas that are designated as economic revitalization areas on or
after September 1, 1988;
(5) limit the dollar amount of the deduction that will be allowed
under section 4.8 of this chapter with respect to the occupation
of an eligible vacant building; or
(6) impose reasonable conditions related to the purpose of this
chapter or to the general standards adopted under subsection (g)
for allowing the deduction for the redevelopment or
rehabilitation of the property or the installation of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
To exercise one (1) or more of these powers, a designating body
must include this fact in the resolution passed under section 2.5 of
this chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment installed on or before the
approval deadline determined under section 9 of this chapter,
but after the expiration of the economic revitalization area if:
(A) the economic revitalization area designation expires
after December 30, 1995; and
(B) the new manufacturing equipment, new research and
development equipment, new logistical distribution
equipment, or new information technology equipment was
described in a statement of benefits submitted to and
approved by the designating body in accordance with section
4.5 of this chapter before the expiration of the economic
revitalization area designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 4, 4.5, or 4.8 of this chapter.
(k) Notwithstanding any other provision of this chapter,
deductions:
(1) that are authorized under section 3 of this chapter for
property in an area designated as an urban development area
before March 1, 1983, and that are based on an increase in
assessed valuation resulting from redevelopment or
rehabilitation that occurs before March 1, 1983; or
(2) that are authorized under section 4.5 of this chapter for new
manufacturing equipment installed in an area designated as an
urban development area before March 1, 1983;
apply according to the provisions of this chapter as they existed at
the time that an application for the deduction was first made. No
deduction that is based on the location of property or new
manufacturing equipment in an urban development area is authorized
under this chapter after February 28, 1983, unless the initial increase
in assessed value resulting from the redevelopment or rehabilitation
of the property or the installation of the new manufacturing
equipment occurred before March 1, 1983.
(l) In addition to the other requirements of this chapter, if property
located in an economic revitalization area is also located in an
allocation area (as defined in IC 36-7-14-39 or IC 36-7-15.1-26), a
taxpayer's statement of benefits concerning that property may not be
approved under this chapter unless a resolution approving the
statement of benefits is adopted by the legislative body of the unit
that approved the designation of the allocation area.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.6; Acts 1980, P.L.42, SEC.2; Acts 1981, P.L.310,
SEC.91; P.L.72-1983, SEC.1; P.L.71-1983, SEC.2; P.L.82-1987,
SEC.1; P.L.56-1988, SEC.2; P.L.3-1989, SEC.33; P.L.42-1992,
SEC.2; P.L.65-1993, SEC.1; P.L.31-1994, SEC.3; P.L.85-1995,
SEC.1; P.L.255-1997(ss), SEC.5; P.L.4-2000, SEC.2; P.L.64-2004,
SEC.5 and P.L.81-2004, SEC.49; P.L.216-2005, SEC.2;
P.L.154-2006, SEC.25; P.L.146-2008, SEC.121.
IC 6-1.1-12.1-2.3
Repealed
(Repealed by P.L.216-2005, SEC.9.)
IC 6-1.1-12.1-2.5
Economic revitalization area; maps; boundaries; resolution;
notice; determination; appeal
Sec. 2.5. (a) If a designating body finds that an area in its
jurisdiction is an economic revitalization area, it shall either:
(1) prepare maps and plats that identify the area; or
(2) prepare a simplified description of the boundaries of the
area by describing its location in relation to public ways,
streams, or otherwise.
(b) After the compilation of the materials described in subsection
(a), the designating body shall pass a resolution declaring the area an
economic revitalization area. The resolution must contain a
description of the affected area and be filed with the county assessor.
A resolution adopted after June 30, 2000, may include a
determination of the number of years a deduction under section 3,
4.5, or 4.8 of this chapter is allowed.
(c) After approval of a resolution under subsection (b), the
designating body shall do the following:
(1) Publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1.
(2) File the following information with each taxing unit that has
authority to levy property taxes in the geographic area where
the economic revitalization area is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement containing substantially the same
information as a statement of benefits filed with the
designating body before the hearing required by this section
under section 3, 4.5, or 4.8 of this chapter.
The notice must state that a description of the affected area is
available and can be inspected in the county assessor's office. The
notice must also name a date when the designating body will receive
and hear all remonstrances and objections from interested persons.
The designating body 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. After considering the evidence, the designating body shall
take final action determining whether the qualifications for an
economic revitalization area 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
designating body 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 designating body
and the person's remonstrance against that order, together with the
person's bond conditioned to pay the costs of the person's 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 the economic revitalization area law. 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 designating body 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.71-1983, SEC.3. Amended by P.L.62-1986, SEC.1;
P.L.56-1988, SEC.3; P.L.3-1989, SEC.34; P.L.56-1991, SEC.1;
P.L.25-1995, SEC.18; P.L.4-2000, SEC.3; P.L.154-2006, SEC.26.
IC 6-1.1-12.1-3
resolution; excluded facilities
Statement of benefits; form; findings; period of deduction;
(1) A description of the proposed redevelopment or
rehabilitation.
(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 redevelopment or rehabilitation and an
estimate of the annual salaries of these individuals.
(3) An estimate of the value of the redevelopment or
rehabilitation.
With the approval of the designating body, the statement of benefits
may be incorporated in a designation application. Notwithstanding
any other law, a statement of benefits is a public record that may be
inspected and copied under IC 5-14-3-3.
(b) The designating body must review the statement of benefits
required under subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether a deduction should be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the value of the redevelopment or
rehabilitation is reasonable for projects of that nature.
(2) Whether the estimate of the number of individuals who will
be employed or whose employment will be retained can be
reasonably expected to result from the proposed described
redevelopment or rehabilitation.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
described redevelopment or rehabilitation.
(4) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed described redevelopment or rehabilitation.
(5) Whether the totality of benefits is sufficient to justify the
deduction.
A designating body may not designate an area an economic
revitalization area or approve a deduction unless the findings
required by this subsection are made in the affirmative.
(c) Except as provided in subsections (a) through (b), the owner
of property which is located in an economic revitalization area is
entitled to a deduction from the assessed value of the property. If the
area is a residentially distressed area, the period is not more than five
(5) years. For all other economic revitalization areas designated
before July 1, 2000, the period is three (3), six (6), or ten (10) years.
For all economic revitalization areas designated after June 30, 2000,
the period is the number of years determined under subsection (d).
The owner is entitled to a deduction if:
P.L.126-2000, SEC.5; P.L.198-2001, SEC.38; P.L.90-2002,
SEC.118; P.L.72-2004, SEC.2; P.L.99-2007, SEC.25.
(1) the property has been rehabilitated; or
(2) the property is located on real estate which has been
redeveloped.
The owner is entitled to the deduction for the first year, and any
successive year or years, in which an increase in assessed value
resulting from the rehabilitation or redevelopment occurs and for the
following years determined under subsection (d). However, property
owners who had an area designated an urban development area
pursuant to an application filed prior to January 1, 1979, are only
entitled to a deduction for a five (5) year period. In addition, property
owners who are entitled to a deduction under this chapter pursuant
to an application filed after December 31, 1978, and before January
1, 1986, are entitled to a deduction for a ten (10) year period.
(d) For an area designated as an economic revitalization area after
June 30, 2000, that is not a residentially distressed area, the
designating body shall determine the number of years for which the
property owner is entitled to a deduction. However, the deduction
may not be allowed for more than ten (10) years. This determination
shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving
a copy of a property owner's certified deduction application
from the county auditor. A certified copy of the resolution shall
be sent to the county auditor who shall make the deduction as
provided in section 5 of this chapter.
A determination about the number of years the deduction is allowed
that is made under subdivision (1) is final and may not be changed
by following the procedure under subdivision (2).
(e) Except for deductions related to redevelopment or
rehabilitation of real property in a county containing a consolidated
city or a deduction related to redevelopment or rehabilitation of real
property initiated before December 31, 1987, in areas designated as
economic revitalization areas before that date, a deduction for the
redevelopment or rehabilitation of real property may not be approved
for the following facilities:
(1) Private or commercial golf course.
(2) Country club.
(3) Massage parlor.
(4) Tennis club.
(5) Skating facility (including roller skating, skateboarding, or
ice skating).
(6) Racquet sport facility (including any handball or racquetball
court).
(7) Hot tub facility.
(8) Suntan facility.
(9) Racetrack.
(10) Any facility the primary purpose of which is:
(A) retail food and beverage service;
(B) automobile sales or service; or
(C) other retail;
unless the facility is located in an economic development target
area established under section 7 of this chapter.
(11) Residential, unless:
(A) the facility is a multifamily facility that contains at least
twenty percent (20%) of the units available for use by low
and moderate income individuals;
(B) the facility is located in an economic development target
area established under section 7 of this chapter; or
(C) the area is designated as a residentially distressed area.
(12) A package liquor store that holds a liquor dealer's permit
under IC 7.1-3-10 or any other entity that is required to operate
under a license issued under IC 7.1. This subdivision does not
apply to an applicant that:
(A) was eligible for tax abatement under this chapter before
July 1, 1995;
(B) is described in IC 7.1-5-7-11; or
(C) operates a facility under:
(i) a beer wholesaler's permit under IC 7.1-3-3;
(ii) a liquor wholesaler's permit under IC 7.1-3-8; or
(iii) a wine wholesaler's permit under IC 7.1-3-13;
for which the applicant claims a deduction under this
chapter.
(f) This subsection applies only to a county having a population
of more than two hundred thousand (200,000) but less than three
hundred thousand (300,000). Notwithstanding subsection (e)(11), in
a county subject to this subsection a designating body may, before
September 1, 2000, approve a deduction under this chapter for the
redevelopment or rehabilitation of real property consisting of
residential facilities that are located in unincorporated areas of the
county if the designating body makes a finding that the facilities are
needed to serve any combination of the following:
(1) Elderly persons who are predominately low-income or
moderate-income persons.
(2) Persons with a disability.
A designating body may adopt an ordinance approving a deduction
under this subsection only one (1) time. This subsection expires
January 1, 2011.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.7; P.L.71-1983, SEC.4; P.L.62-1985, SEC.1;
P.L.62-1986, SEC.2; P.L.82-1987, SEC.2; P.L.56-1988, SEC.4;
P.L.65-1993, SEC.2; P.L.25-1995, SEC.19; P.L.4-2000, SEC.4;
IC 6-1.1-12.1-4
Annual deduction; amount; percentage; period of deduction; effect
of reassessment
Sec. 4. (a) Except as provided in section 2(i)(4) of this chapter,
and subject to section 15 of this chapter, the amount of the deduction
which the property owner is entitled to receive under section 3 of this
chapter for a particular year equals the product of:
(1) the increase in the assessed value resulting from the
rehabilitation or redevelopment; multiplied by
(2) the percentage prescribed in the table set forth in subsection
(d).
(b) The amount of the deduction determined under subsection (a)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If a general reassessment of real property occurs within the
particular period of the deduction, the amount determined under
subsection (a)(1) shall be adjusted to reflect the percentage
increase or decrease in assessed valuation that resulted from the
general reassessment.
(2) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the redeveloped or
rehabilitated property, the amount of any deduction shall be
adjusted to reflect the percentage decrease that resulted from
the appeal.
The department of local government finance shall adopt rules under
IC 4-22-2 to implement this subsection.
(c) Property owners who had an area designated an urban
development area pursuant to an application filed prior to January 1,
1979, are only entitled to the deduction for the first through the fifth
years as provided in subsection (d)(10). In addition, property owners
who are entitled to a deduction under this chapter pursuant to an
application filed after December 31, 1978, and before January 1,
1986, are entitled to a deduction for the first through the tenth years,
as provided in subsection (d)(10).
(d) The percentage to be used in calculating the deduction under
subsection (a) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st
100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 66%
3rd 33%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 17%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 95%
3rd 80%
4th 65%
5th 50%
6th 40%
7th 30%
8th 20%
9th 10%
10th 5%
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.8; Acts 1981, P.L.72, SEC.2; P.L.62-1985, SEC.2;
P.L.57-1988, SEC.1; P.L.3-1989, SEC.35; P.L.332-1989(ss),
SEC.11; P.L.65-1993, SEC.3; P.L.4-2000, SEC.5; P.L.90-2002,
SEC.119; P.L.219-2007, SEC.29.
IC 6-1.1-12.1-4.1
Application of sections; residentially distressed areas; deduction
allowed
Sec. 4.1. (a) Section 4 of this chapter applies to economic
revitalization areas that are not residentially distressed areas.
(b) This subsection applies to economic revitalization areas that
are residentially distressed areas. Subject to section 15 of this
chapter, the amount of the deduction that a property owner is entitled
to receive under section 3 of this chapter for a particular year equals
the lesser of:
(1) the assessed value of the improvement to the property after
the rehabilitation or redevelopment has occurred; or
(2) the following amount:
TYPE OF DWELLING AMOUNT
One (1) family dwelling $74,880
Two (2) family dwelling $106,080
Three (3) unit multifamily dwelling $156,000
Four (4) unit multifamily dwelling $199,680
As added by P.L.56-1988, SEC.5. Amended by P.L.3-1989, SEC.36;
P.L.65-1993, SEC.4; P.L.6-1997, SEC.58; P.L.20-2004, SEC.9;
P.L.219-2007, SEC.30.
IC 6-1.1-12.1-4.5
Statement of benefits; findings by designating body; deduction
periods, amounts, and limitations
Sec. 4.5. (a) An applicant must provide a statement of benefits to
the designating body. The applicant must provide the completed
statement of benefits form to the designating body before the hearing
specified in section 2.5(c) of this chapter or before the installation of
the new manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new information
technology equipment for which the person desires to claim a
deduction under this chapter. The department of local government
finance shall prescribe a form for the statement of benefits. The
statement of benefits must include the following information:
(1) A description of the new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment that the person proposes to acquire.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of
solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
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, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment and an estimate of the annual salaries of these
individuals.
(3) An estimate of the cost of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment.
(4) With respect to new manufacturing equipment used to
dispose of solid waste or hazardous waste by converting the
solid waste or hazardous waste into energy or other useful
products, an estimate of the amount of solid waste or hazardous
waste that will be converted into energy or other useful
products by the new manufacturing equipment.
The statement of benefits may be incorporated in a designation
application. Notwithstanding any other law, a statement of benefits
is a public record that may be inspected and copied under
IC 5-14-3-3.
(b) The designating body must review the statement of benefits
required under subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether the deduction shall be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment is reasonable for equipment of that type.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of
solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the installation of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
installation of new manufacturing equipment, new research and
development equipment, new logistical distribution equipment,
or new information technology equipment.
(4) With respect to new manufacturing equipment used to
dispose of solid waste or hazardous waste by converting the
solid waste or hazardous waste into energy or other useful
products, whether the estimate of the amount of solid waste or
hazardous waste that will be converted into energy or other
useful products can be reasonably expected to result from the
installation of the new manufacturing equipment.
(5) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed installation of new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
The designating body may not designate an area an economic
revitalization area or approve the deduction unless it makes the
findings required by this subsection in the affirmative.
(c) Except as provided in subsection (g), and subject to subsection
(h) and section 15 of this chapter, an owner of new manufacturing
equipment, new research and development equipment, new logistical
distribution equipment, or new information technology equipment
whose statement of benefits is approved after June 30, 2000, is
entitled to a deduction from the assessed value of that equipment for
the number of years determined by the designating body under
subsection (f). Except as provided in subsection (e) and in section
2(i)(3) of this chapter, and subject to subsection (h) and section 15
of this chapter, the amount of the deduction that an owner is entitled
to for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment,
new research and development equipment, new logistical
distribution equipment, or new information technology
equipment in the year of deduction under the appropriate table
set forth in subsection (d); multiplied by
(2) the percentage prescribed in the appropriate table set forth
in subsection (d).
(d) The percentage to be used in calculating the deduction under
subsection (c) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd and thereafter 0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
3rd and thereafter 0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 66%
3rd 33%
4th and thereafter 0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
5th and thereafter 0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
6th and thereafter 0%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 25%
7th and thereafter 0%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
8th and thereafter 0%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
9th and thereafter 0%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
10th and thereafter 0%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 90%
3rd 80%
4th 70%
5th 60%
6th 50%
7th 40%
8th 30%
9th 20%
10th 10%
11th and thereafter 0%
(e) With respect to new manufacturing equipment and new
research and development equipment installed before March 2, 2001,
the deduction under this section is the amount that causes the net
assessed value of the property after the application of the deduction
under this section to equal the net assessed value after the application
of the deduction under this section that results from computing:
(1) the deduction under this section as in effect on March 1,
2001; and
(2) the assessed value of the property under 50 IAC 4.2, as in
effect on March 1, 2001, or, in the case of property subject to
IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
(f) For an economic revitalization area designated before July 1,
2000, the designating body shall determine whether a property owner
whose statement of benefits is approved after April 30, 1991, is
entitled to a deduction for five (5) or ten (10) years. For an economic
revitalization area designated after June 30, 2000, the designating
body shall determine the number of years the deduction is allowed.
However, the deduction may not be allowed for more than ten (10)
years. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving
a copy of a property owner's certified deduction application
from the county auditor. A certified copy of the resolution shall
be sent to the county auditor.
A determination about the number of years the deduction is allowed
that is made under subdivision (1) is final and may not be changed
by following the procedure under subdivision (2).
(g) The owner of new manufacturing equipment that is directly
used to dispose of hazardous waste is not entitled to the deduction
provided by this section for a particular assessment year if during
that assessment year the owner:
(1) is convicted of a criminal violation under IC 13, including
IC 13-7-13-3 (repealed) or IC 13-7-13-4 (repealed); or
(2) is subject to an order or a consent decree with respect to
property located in Indiana based on a violation of a federal or
state rule, regulation, or statute governing the treatment,
storage, or disposal of hazardous wastes that had a major or
moderate potential for harm.
(h) For purposes of subsection (c), the assessed value of new
manufacturing equipment, new research and development equipment,
new logistical distribution equipment, or new information technology
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 Acts 1981, P.L.72, SEC.3. Amended by P.L.71-1983,
SEC.5; P.L.82-1987, SEC.3; P.L.56-1988, SEC.6; P.L.3-1989,
SEC.37; P.L.56-1991, SEC.2; P.L.42-1992, SEC.3; P.L.65-1993,
SEC.5; P.L.25-1995, SEC.20; P.L.1-1996, SEC.40; P.L.4-2000,
SEC.6; P.L.178-2002, SEC.17; P.L.90-2002, SEC.120; P.L.1-2003,
SEC.22; P.L.245-2003, SEC.8; P.L.256-2003, SEC.3; P.L.97-2004,
SEC.20; P.L.64-2004, SEC.7 and P.L.81-2004, SEC.51;
P.L.154-2006, SEC.27; P.L.137-2007, SEC.3; P.L.219-2007,
SEC.31; P.L.3-2008, SEC.36; P.L.146-2008, SEC.122.
IC 6-1.1-12.1-4.6
Relocation of new manufacturing equipment
Sec. 4.6. (a) A designating body may adopt a resolution to
authorize a property owner to relocate new manufacturing equipment
for which a deduction is being granted under this chapter. The
resolution may provide that the new manufacturing equipment may
only be relocated to:
(1) a new location within the same economic revitalization area;
or
(2) a new location within a different economic revitalization
area if the area is within the jurisdiction of the designating
body.
(b) Before adopting a resolution under this section, the
designating body shall conduct a public hearing on the proposed
resolution. Notice of the public hearing shall be published in
accordance with IC 5-3-1. In addition, the designating body shall
notify each taxing unit within the original and the new economic
revitalization area of the proposed resolution, including the date and
time of the public hearing. If a resolution is adopted under this
section, the designating body shall deliver a copy of the adopted
resolution to the county auditor within thirty (30) days after its
adoption.
(c) New manufacturing equipment relocated under this section
remains eligible for the assessed value deduction under this chapter.
The same deduction percentage is to be applied as if the new
manufacturing equipment had not been relocated.
As added by P.L.126-2000, SEC.6. Amended by P.L.90-2002,
SEC.121; P.L.256-2003, SEC.4.
IC 6-1.1-12.1-4.7
Deduction for new manufacturing equipment; exemptions
Sec. 4.7. (a) Section 4.5(e) of this chapter does not apply to new
manufacturing equipment located in a township having a population
of more than four thousand (4,000) but less than seven thousand
(7,000) located in a county having a population of more than forty
thousand (40,000) but less than forty thousand nine hundred (40,900)
if the total original cost of all new manufacturing equipment placed
into service by the owner during the preceding sixty (60) months
exceeds fifty million dollars ($50,000,000), and if the economic
revitalization area in which the new manufacturing equipment was
installed was approved by the designating body before September 1,
1994.
(b) Section 4.5(e) of this chapter does not apply to new
manufacturing equipment located in a county having a population of
more than thirty-two thousand (32,000) but less than thirty-three
thousand (33,000) if:
(1) the total original cost of all new manufacturing equipment
placed into service in the county by the owner exceeds five
hundred million dollars ($500,000,000); and
(2) the economic revitalization area in which the new
manufacturing equipment was installed was approved by the
designating body before January 1, 2001.
(c) A deduction under section 4.5(c) of this chapter is not allowed
with respect to new manufacturing equipment described in
subsection (b) in the first year the deduction is claimed or in
subsequent years as permitted by section 4.5(c) of this chapter to the
extent the deduction would cause the assessed value of all real
property and personal property of the owner in the taxing district to
be less than the incremental net assessed value for that year.
(d) The following apply for purposes of subsection (c):
(1) A deduction under section 4.5(c) of this chapter shall be
disallowed only with respect to new manufacturing equipment
installed after March 1, 2000.
(2) "Incremental net assessed value" means the sum of:
(A) the net assessed value of real property and depreciable
personal property from which property tax revenues are
required to be held in trust and pledged for the benefit of the
owners of bonds issued by the redevelopment commission of
a county described in subsection (b) under resolutions
adopted November 16, 1998, and July 13, 2000 (as amended
November 27, 2000); plus
(B) fifty-four million four hundred eighty-one thousand
seven hundred seventy dollars ($54,481,770).
(3) The assessed value of real property and personal property of
the owner shall be determined after the deductions provided by
sections 3 and 4.5 of this chapter.
(4) The personal property of the owner shall include inventory.
(5) The amount of deductions provided by section 4.5 of this
chapter with respect to new manufacturing equipment that was
installed on or before March 1, 2000, shall be increased from
thirty-three and one-third percent (33 1/3%) of true tax value to
one hundred percent (100%) of true tax value for assessment
dates after February 28, 2001.
(e) A deduction not fully allowed under subsection (c) in the first
year the deduction is claimed or in a subsequent year permitted by
section 4.5 of this chapter shall be carried over and allowed as a
deduction in succeeding years. A deduction that is carried over to a
year but is not allowed in that year under this subsection shall be
carried over and allowed as a deduction in succeeding years. The
following apply for purposes of this subsection:
(1) A deduction that is carried over to a succeeding year is not
allowed in that year to the extent that the deduction, together
with:
(A) deductions otherwise allowed under section 3 of this
chapter;
(B) deductions otherwise allowed under section 4.5 of this
chapter; and
(C) other deductions carried over to the year under this
subsection;
would cause the assessed value of all real property and personal
property of the owner in the taxing district to be less than the
incremental net assessed value for that year.
(2) Each time a deduction is carried over to a succeeding year,
the deduction shall be reduced by the amount of the deduction
that was allowed in the immediately preceding year.
(3) A deduction may not be carried over to a succeeding year
under this subsection if such year is after the period specified in
section 4.5(c) of this chapter or the period specified in a
resolution adopted by the designating body under section 4.5(g)
of this chapter.
As added by P.L.126-2000, SEC.7. Amended by P.L.205-2001,
SEC.1; P.L.170-2002, SEC.17; P.L.146-2008, SEC.123.
IC 6-1.1-12.1-4.8
Property owner statement of benefits; findings by designating
body; deduction periods, amounts, and limitations
Sec. 4.8. (a) A property owner that is an applicant for a deduction
under this section must provide a statement of benefits to the
designating body.
(b) If the designating body requires information from the property
owner for the designating body's use in deciding whether to designate
an economic revitalization area, the property owner must provide the
completed statement of benefits form to the designating body before
the hearing required by section 2.5(c) of this chapter. Otherwise, the
property owner must submit the completed statement of benefits
form to the designating body before the occupation of the eligible
vacant building for which the property owner desires to claim a
deduction.
(c) The department of local government finance shall prescribe a
form for the statement of benefits. The statement of benefits must
include the following information:
(1) A description of the eligible vacant building that the
property owner or a tenant of the property owner will occupy.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the
property owner or the tenant as a result of the occupation of the
eligible vacant building, and an estimate of the annual salaries
of those individuals.
(3) Information regarding efforts by the owner or a previous
owner to sell, lease, or rent the eligible vacant building during
the period the eligible vacant building was unoccupied.
(4) Information regarding the amount for which the eligible
vacant building was offered for sale, lease, or rent by the owner
or a previous owner during the period the eligible vacant
building was unoccupied.
(d) With the approval of the designating body, the statement of
benefits may be incorporated in a designation application. A
statement of benefits is a public record that may be inspected and
copied under IC 5-14-3.
(e) The designating body must review the statement of benefits
required by subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether a deduction should be allowed, after the designating body
has made the following findings:
(1) Whether the estimate of the number of individuals who will
be employed or whose employment will be retained can be
reasonably expected to result from the proposed occupation of
the eligible vacant building.
(2) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
occupation of the eligible vacant building.
(3) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed occupation of the eligible vacant building.
(4) Whether the occupation of the eligible vacant building will
increase the tax base and assist in the rehabilitation of the
economic revitalization area.
(5) Whether the totality of benefits is sufficient to justify the
deduction.
A designating body may not designate an area an economic
revitalization area or approve a deduction under this section unless
the findings required by this subsection are made in the affirmative.
(f) Except as otherwise provided in this section, the owner of an
eligible vacant building located in an economic revitalization area is
entitled to a deduction from the assessed value of the building if the
property owner or a tenant of the property owner occupies the
eligible vacant building and uses it for commercial or industrial
purposes. The property owner is entitled to the deduction:
(1) for the first year in which the property owner or a tenant of
the property owner occupies the eligible vacant building and
uses it for commercial or industrial purposes; and
(2) for subsequent years determined under subsection (g).
(g) The designating body shall determine the number of years for
which a property owner is entitled to a deduction under this section.
However, subject to section 15 of this chapter, the deduction may not
be allowed for more than two (2) years. This determination shall be
made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by a resolution adopted not more than sixty (60) days after
the designating body receives a copy of the property owner's
deduction application from the county auditor.
A certified copy of a resolution under subdivision (2) shall be sent to
the county auditor, who shall make the deduction as provided in
section 5.3 of this chapter. A determination concerning the number
of years the deduction is allowed that is made under subdivision (1)
is final and may not be changed by using the procedure under
subdivision (2).
(h) Except as provided in section 2(i)(5) of this chapter and
subsection (k), and subject to section 15 of this chapter, the amount
of the deduction the property owner is entitled to receive under this
section for a particular year equals the product of:
(1) the assessed value of the building or part of the building that
is occupied by the property owner or a tenant of the property
owner; multiplied by
(2) the percentage set forth in the table in subsection (i).
(i) The percentage to be used in calculating the deduction under
subsection (h) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st
100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
(j) The amount of the deduction determined under subsection (h)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If a general reassessment of real property occurs within the
period of the deduction, the amount of the assessed value
determined under subsection (h)(1) shall be adjusted to reflect
the percentage increase or decrease in assessed valuation that
resulted from the general reassessment.
(2) If an appeal of an assessment is approved and results in a
reduction of the assessed value of the property, the amount of
a deduction under this section shall be adjusted to reflect the
percentage decrease that resulted from the appeal.
(k) The maximum amount of a deduction under this section may
not exceed the lesser of:
(1) the annual amount for which the eligible vacant building
was offered for lease or rent by the owner or a previous owner
during the period the eligible vacant building was unoccupied;
or
(2) an amount, as determined by the designating body in its
discretion, that is equal to the annual amount for which similar
buildings in the county or contiguous counties were leased or
rented or offered for lease or rent during the period the eligible
vacant building was unoccupied.
(l) The department of local government finance may adopt rules
under IC 4-22-2 to implement this section.
As added by P.L.154-2006, SEC.28. Amended by P.L.219-2007,
SEC.32.
IC 6-1.1-12.1-5
Real property application; filing requirements; change in property
ownership; assessor review; county auditor; determination; appeal
Sec. 5. (a) A property owner who desires to obtain the deduction
provided by section 3 of this chapter must file a certified deduction
application, on forms prescribed by the department of local
government finance, with the auditor of the county in which the
property is located. Except as otherwise provided in subsection (b)
or (e), the deduction application must be filed before May 10 of the
year in which the addition to assessed valuation is made.
(b) If notice of the addition to assessed valuation or new
assessment for any year is not given to the property owner before
April 10 of that year, the deduction application required by this
section may be filed not later than thirty (30) days after the date such
a notice is mailed to the property owner at the address shown on the
records of the township or county assessor.
(c) The deduction application required by this section must
contain the following information:
(1) The name of the property owner.
(2) A description of the property for which a deduction is
claimed in sufficient detail to afford identification.
(3) The assessed value of the improvements before
rehabilitation.
(4) The increase in the assessed value of improvements
resulting from the rehabilitation.
(5) The assessed value of the new structure in the case of
redevelopment.
(6) The amount of the deduction claimed for the first year of the
deduction.
(7) If the deduction application is for a deduction in a
residentially distressed area, the assessed value of the
improvement or new structure for which the deduction is
claimed.
(d) A deduction application filed under subsection (a) or (b) is
applicable for the year in which the addition to assessed value or
assessment of a new structure is made and in the following years the
deduction is allowed without any additional deduction application
being filed. However, property owners who had an area designated
an urban development area pursuant to a deduction application filed
prior to January 1, 1979, are only entitled to a deduction for a five (5)
year period. In addition, property owners who are entitled to a
deduction under this chapter pursuant to a deduction application filed
after December 31, 1978, and before January 1, 1986, are entitled to
a deduction for a ten (10) year period.
(e) A property owner who desires to obtain the deduction
provided by section 3 of this chapter but who has failed to file a
deduction application within the dates prescribed in subsection (a) or
(b) may file a deduction application between March 1 and May 10 of
a subsequent year which shall be applicable for the year filed and the
subsequent years without any additional deduction application being
filed for the amounts of the deduction which would be applicable to
such years pursuant to section 4 of this chapter if such a deduction
application had been filed in accordance with subsection (a) or (b).
SEC.4; P.L.65-1993, SEC.6; P.L.4-2000, SEC.7; P.L.90-2002,
SEC.122; P.L.245-2003, SEC.9; P.L.193-2005, SEC.1;
P.L.146-2008, SEC.124.
(f) Subject to subsection (i), the county auditor shall act as
follows:
(1) If a determination about the number of years the deduction
is allowed has been made in the resolution adopted under
section 2.5 of this chapter, the county auditor shall make the
appropriate deduction.
(2) If a determination about the number of years the deduction
is allowed has not been made in the resolution adopted under
section 2.5 of this chapter, the county auditor shall send a copy
of the deduction application to the designating body. Upon
receipt of the resolution stating the number of years the
deduction will be allowed, the county auditor shall make the
appropriate deduction.
(3) If the deduction application is for rehabilitation or
redevelopment in a residentially distressed area, the county
auditor shall make the appropriate deduction.
(g) The amount and period of the deduction provided for property
by section 3 of this chapter are not affected by a change in the
ownership of the property if the new owner of the property:
(1) continues to use the property in compliance with any
standards established under section 2(g) of this chapter; and
(2) files an application in the manner provided by subsection
(e).
(h) The township or county assessor shall include a notice of the
deadlines for filing a deduction application under subsections (a) and
(b) with each notice to a property owner of an addition to assessed
value or of a new assessment.
(i) Before the county auditor acts under subsection (f), the county
auditor may request that the township assessor of the township in
which the property is located, or the county assessor if there is no
township assessor for the township, review the deduction application.
(j) A property owner may appeal a determination of the county
auditor under subsection (f) to deny or alter the amount of the
deduction by requesting in writing a preliminary conference with the
county auditor not more than forty-five (45) days after the county
auditor gives the person notice of the determination. An appeal
initiated under this subsection is processed and determined in the
same manner that an appeal is processed and determined under
IC 6-1.1-15.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.9; Acts 1981, P.L.72, SEC.4; Acts 1982, P.L.45,
SEC.12; P.L.71-1983, SEC.6; P.L.62-1985, SEC.3; P.L.62-1986,
SEC.3; P.L.74-1987, SEC.7; P.L.56-1988, SEC.7; P.L.42-1992,
IC 6-1.1-12.1-5.1
Application; compliance with statement of benefits
Sec. 5.1. (a) This subsection applies to:
(1) all deductions under section 3 of this chapter for property
located in a residentially distressed area; and
(2) any other deductions for which a statement of benefits was
approved under section 3 of this chapter before July 1, 1991.
In addition to the requirements of section 5(c) of this chapter, a
deduction application filed under section 5 of this chapter must
contain information showing the extent to which there has been
compliance with the statement of benefits approved under section 3
of this chapter. Failure to comply with a statement of benefits
approved before July 1, 1991, may not be a basis for rejecting a
deduction application.
(b) This subsection applies to each deduction (other than a
deduction for property located in a residentially distressed area) for
which a statement of benefits was approved under section 3 of this
chapter after June 30, 1991. In addition to the requirements of
section 5(c) of this chapter, a property owner who files a deduction
application under section 5 of this chapter must provide the county
auditor and the designating body with information showing the
extent to which there has been compliance with the statement of
benefits approved under section 3 of this chapter. This information
must be included in the deduction application and must also be
updated each year in which the deduction is applicable at the same
time that the property owner is required to file a personal property
tax return in the taxing district in which the property for which the
deduction was granted is located. If the taxpayer does not file a
personal property tax return in the taxing district in which the
property is located, the information must be provided before May 15.
(c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following
information is a public record if filed under this section:
(1) The name and address of the taxpayer.
(2) The location and description of the property for which the
deduction was granted.
(3) Any information concerning the number of employees at the
property for which the deduction was granted, including
estimated totals that were provided as part of the statement of
benefits.
(4) Any information concerning the total of the salaries paid to
those employees, including estimated totals that were provided
as part of the statement of benefits.
(5) Any information concerning the assessed value of the
property, including estimates that were provided as part of the
statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by the property owner.
(2) Any information concerning the cost of the property.
As added by P.L.82-1987, SEC.4. Amended by P.L.56-1988, SEC.8;
P.L.14-1991, SEC.4; P.L.65-1993, SEC.7; P.L.193-2005, SEC.2.
IC 6-1.1-12.1-5.3
Deduction application; deadline; required information; deduction
amounts and periods; county auditor duties; appeals; public and
confidential records
Sec. 5.3. (a) A property owner that desires to obtain the deduction
provided by section 4.8 of this chapter must file a deduction
application, on forms prescribed by the department of local
government finance, with the auditor of the county in which the
eligible vacant building is located. Except as otherwise provided in
this section, the deduction application must be filed before May 10
of the year in which the property owner or a tenant of the property
owner initially occupies the eligible vacant building.
(b) If notice of the assessed valuation or new assessment for a
year is not given to the property owner before April 10 of that year,
the deduction application required by this section may be filed not
later than thirty (30) days after the date the notice is mailed to the
property owner at the address shown on the records of the township
or county assessor.
(c) The deduction application required by this section must
contain the following information:
(1) The name of the property owner and, if applicable, the
property owner's tenant.
(2) A description of the property for which a deduction is
claimed.
(3) The amount of the deduction claimed for the first year of the
deduction.
(4) Any other information required by the department of local
government finance or the designating body.
(d) A deduction application filed under this section applies to the
year in which the property owner or a tenant of the property owner
occupies the eligible vacant building and in the following year if the
deduction is allowed for a two (2) year period, without an additional
deduction application being filed.
(e) A property owner that desires to obtain the deduction provided
by section 4.8 of this chapter but that did not file a deduction
application within the dates prescribed in subsection (a) or (b) may
file a deduction application between March 1 and May 10 of a
subsequent year. A deduction application filed under this subsection
applies to the year in which the deduction application is filed and the
following year if the deduction is allowed for a two (2) year period,
without an additional deduction application being filed. The amount
of the deduction under this subsection is the amount that would have
been applicable to the year under section 4.8 of this chapter if the
deduction application had been filed in accordance with subsection
(a) or (b).
(f) Subject to subsection (i), the county auditor shall do the
following:
(1) If a determination concerning the number of years the
deduction is allowed has been made in the resolution adopted
under section 2.5 of this chapter, the county auditor shall make
the appropriate deduction.
(2) If a determination concerning the number of years the
deduction is allowed has not been made in the resolution
adopted under section 2.5 of this chapter, the county auditor
shall send a copy of the deduction application to the designating
body. Upon receipt of the resolution stating the number of years
the deduction will be allowed, the county auditor shall make the
appropriate deduction.
(g) The amount and period of the deduction provided by section
4.8 of this chapter are not affected by a change in the ownership of
the eligible vacant building or a change in the property owner's
tenant, if the new property owner or the new tenant:
(1) continues to occupy the eligible vacant building in
compliance with any standards established under section 2(g)
of this chapter; and
(2) files an application in the manner provided by subsection
(e).
(h) Before the county auditor acts under subsection (f), the county
auditor may request that the township assessor of the township in
which the eligible vacant building is located, or the county assessor
if there is no township assessor for the township, review the
deduction application.
(i) A property owner may appeal a determination of the county
auditor under subsection (f) by requesting in writing a preliminary
conference with the county auditor not more than forty-five (45) days
after the county auditor gives the property owner notice of the
determination. An appeal under this subsection shall be processed
and determined in the same manner that an appeal is processed and
determined under IC 6-1.1-15.
(j) In addition to the requirements of subsection (c), a property
owner that files a deduction application under this section must
provide the county auditor and the designating body with information
showing the extent to which there has been compliance with the
statement of benefits approved under section 4.8 of this chapter. This
information must be included in the deduction application and must
also be updated each year in which the deduction is applicable:
(1) at the same time that the property owner or the property
owner's tenant files a personal property tax return for property
located at the eligible vacant building for which the deduction
was granted; or
(2) if subdivision (1) does not apply, before May 15 of each
year.
(k) The following information is a public record if filed under this
section:
(1) The name and address of the property owner.
(2) The location and description of the eligible vacant building
for which the deduction was granted.
(3) Any information concerning the number of employees at the
eligible vacant building for which the deduction was granted,
including estimated totals that were provided as part of the
statement of benefits.
(4) Any information concerning the total of the salaries paid to
the employees described in subdivision (3), including estimated
totals that are provided as part of the statement of benefits.
(5) Any information concerning the assessed value of the
eligible vacant building, including estimates that are provided
as part of the statement of benefits.
(l) Information concerning the specific salaries paid to individual
employees by the property owner or tenant is confidential.
As added by P.L.154-2006, SEC.29. Amended by P.L.146-2008,
SEC.125.
IC 6-1.1-12.1-5.4
Personal property schedule; filing requirements; township assessor
or county assessor review; change in property ownership; appeal
Sec. 5.4. (a) A person that desires to obtain the deduction
provided by section 4.5 of this chapter must file a certified deduction
schedule with the person's personal property return on a form
prescribed by the department of local government finance with the
township assessor of the township in which the new manufacturing
equipment, new research and development equipment, new logistical
distribution equipment, or new information technology equipment is
located, or with the county assessor if there is no township assessor
for the township. Except as provided in subsection (e), the deduction
is applied in the amount claimed in a certified schedule that a person
files with:
(1) a timely personal property return under IC 6-1.1-3-7(a) or
IC 6-1.1-3-7(b); or
(2) a timely amended personal property return under
IC 6-1.1-3-7.5.
The township or county assessor shall forward to the county auditor
a copy of each certified deduction schedule filed under this
subsection. The township assessor shall forward to the county
assessor a copy of each certified deduction schedule filed with the
township assessor under this subsection.
(b) The deduction schedule required by this section must contain
the following information:
(1) The name of the owner of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment.
(2) A description of the new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment.
(3) The amount of the deduction claimed for the first year of the
deduction.
(c) This subsection applies to a deduction schedule with respect
to new manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new information
technology equipment for which a statement of benefits was initially
approved after April 30, 1991. If a determination about the number
of years the deduction is allowed has not been made in the resolution
adopted under section 2.5 of this chapter, the county auditor shall
send a copy of the deduction schedule to the designating body, and
the designating body shall adopt a resolution under section 4.5(f)(2)
of this chapter.
(d) A deduction schedule must be filed under this section in the
year in which the new manufacturing equipment, new research and
development equipment, new logistical distribution equipment, or
new information technology equipment is installed and in each of the
immediately succeeding years the deduction is allowed.
(e) The township assessor, or the county assessor if there is no
township assessor for the township, may:
(1) review the deduction schedule; and
(2) before the March 1 that next succeeds the assessment date
for which the deduction is claimed, deny or alter the amount of
the deduction.
If the township or county assessor does not deny the deduction, the
county auditor shall apply the deduction in the amount claimed in the
deduction schedule or in the amount as altered by the township or
county assessor. A township or county assessor who denies a
deduction under this subsection or alters the amount of the deduction
shall notify the person that claimed the deduction and the county
auditor of the assessor's action. The county auditor shall notify the
designating body and the county property tax assessment board of
appeals of all deductions applied under this section.
(f) If the ownership of new manufacturing equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment changes, the
deduction provided under section 4.5 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 2(g) of this chapter; and
(2) files the deduction schedules required by this section.
(g) The amount of the deduction is the percentage under section
4.5 of this chapter that would have applied if the ownership of the
property had not changed multiplied by the assessed value of the
equipment for the year the deduction is claimed by the new owner.
(h) A person may appeal a determination of the township or
county assessor under subsection (e) to deny or alter the amount of
the deduction by requesting in writing a preliminary conference with
the township or county assessor not more than forty-five (45) days
after the township or county assessor gives the person notice of the
determination. Except as provided in subsection (i), an appeal
initiated under this subsection is processed and determined in the
same manner that an appeal is processed and determined under
IC 6-1.1-15.
(i) The county assessor is recused from any action the county
property tax assessment board of appeals takes with respect to an
appeal under subsection (h) of a determination by the county
assessor.
As added by P.L.1-2002, SEC.19. Amended by P.L.256-2003, SEC.5;
P.L.245-2003, SEC.10; P.L.64-2004, SEC.8 and P.L.81-2004,
SEC.52; P.L.193-2005, SEC.3; P.L.146-2008, SEC.126.
IC 6-1.1-12.1-5.5
Repealed
(Repealed by P.L.198-2001, SEC.122.)
IC 6-1.1-12.1-5.6
Compliance with statement of benefits; confidentiality of
information
Sec. 5.6. (a) This subsection applies to a property owner whose
statement of benefits was approved under section 4.5 of this chapter
before July 1, 1991. In addition to the requirements of section 5.4(b)
of this chapter, a deduction schedule filed under section 5.4 of this
chapter must contain information showing the extent to which there
has been compliance with the statement of benefits approved under
section 4.5 of this chapter. Failure to comply with a statement of
benefits approved before July 1, 1991, may not be a basis for
rejecting a deduction schedule.
(b) This subsection applies to a property owner whose statement
of benefits was approved under section 4.5 of this chapter after June
30, 1991. In addition to the requirements of section 5.4(b) of this
chapter, a property owner who files a deduction schedule under
section 5.4 of this chapter must provide the county auditor and the
designating body with information showing the extent to which there
has been compliance with the statement of benefits approved under
section 4.5 of this chapter.
(c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following
information is a public record if filed under this section:
(1) The name and address of the taxpayer.
(2) The location and description of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment for which the deduction was granted.
(3) Any information concerning the number of employees at the
facility where the new manufacturing equipment, new research
and development equipment, new logistical distribution
equipment, or new information technology equipment is
located, including estimated totals that were provided as part of
the statement of benefits.
(4) Any information concerning the total of the salaries paid to
those employees, including estimated totals that were provided
as part of the statement of benefits.
(5) Any information concerning the amount of solid waste or
hazardous waste converted into energy or other useful products
by the new manufacturing equipment.
(6) Any information concerning the assessed value of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment including estimates that
were provided as part of the statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by the owner of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment.
(2) Any information concerning the cost of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
As added by P.L.82-1987, SEC.5. Amended by P.L.56-1988, SEC.10;
P.L.14-1991, SEC.5; P.L.65-1993, SEC.9; P.L.25-1995, SEC.22;
P.L.4-2000, SEC.9; P.L.64-2004, SEC.9 and P.L.81-2004, SEC.53;
P.L.216-2005, SEC.3; P.L.193-2005, SEC.4; P.L.1-2006, SEC.134.
IC 6-1.1-12.1-5.7
Repealed
(Repealed by P.L.56-1988, SEC.16 and P.L.1-2002, SEC.171.)
IC 6-1.1-12.1-5.8
SEC.127.
Waiver of statement of benefits
Sec. 5.8. In lieu of providing the statement of benefits required by
section 3 or 4.5 of this chapter and the additional information
required by section 5.1 or 5.6 of this chapter, the designating body
may, by resolution, waive the statement of benefits if the designating
body finds that the purposes of this chapter are served by allowing
the deduction and the property owner has, during the thirty-six (36)
months preceding the first assessment date to which the waiver
would apply, installed new manufacturing equipment, new research
and development equipment, new logistical distribution equipment,
or new information technology equipment or developed or
rehabilitated property at a cost of at least ten million dollars
($10,000,000) as determined by the assessor of the township in
which the property is located, or by the county assessor if there is no
township assessor for the township.
As added by P.L.47-1990, SEC.3. Amended by P.L.14-1991, SEC.7;
P.L.4-2000, SEC.10; P.L.90-2002, SEC.123; P.L.256-2003, SEC.6;
P.L.64-2004, SEC.10 and P.L.81-2004, SEC.54; P.L.146-2008,
IC 6-1.1-12.1-5.9
Determination of substantial compliance with statement of
benefits; notice of noncompliance; hearing; resolution; appeal
Sec. 5.9. (a) This section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter for
which a statement of benefits was approved before July 1, 1991.
(b) Not later than forty-five (45) days after receipt of the
information described in section 5.1, 5.3(j), or 5.6 of this chapter, the
designating body may determine whether the property owner has
substantially complied with the statement of benefits approved under
section 3, 4.5, or 4.8 of this chapter. If the designating body
determines that the property owner has not substantially complied
with the statement of benefits and that the failure to substantially
comply was not caused by factors beyond the control of the property
owner (such as declines in demand for the property owner's products
or services), the designating body shall mail a written notice to the
property owner. The written notice must include the following
provisions:
(1) An explanation of the reasons for the designating body's
determination.
(2) The date, time, and place of a hearing to be conducted by
the designating body for the purpose of further considering the
property owner's compliance with the statement of benefits. The
date of the hearing may not be more than thirty (30) days after
the date on which the notice is mailed.
(c) On the date specified in the notice described in subsection
(b)(2), the designating body shall conduct a hearing for the purpose
of further considering the property owner's compliance with the
statement of benefits. Based on the information presented at the
hearing by the property owner and other interested parties, the
designating body shall again determine whether the property owner
has made reasonable efforts to substantially comply with the
statement of benefits and whether any failure to substantially comply
was caused by factors beyond the control of the property owner. If
the designating body determines that the property owner has not
made reasonable efforts to comply with the statement of benefits, the
designating body shall adopt a resolution terminating the property
owner's deduction under section 3, 4.5, or 4.8 of this chapter. If the
designating body adopts such a resolution, the deduction does not
apply to the next installment of property taxes owed by the property
owner or to any subsequent installment of property taxes.
(d) If the designating body adopts a resolution terminating a
deduction under subsection (c), the designating body shall
immediately mail a certified copy of the resolution to:
(1) the property owner;
(2) the county auditor; and
(3) the county assessor.
The county auditor shall remove the deduction from the tax duplicate
and shall notify the county treasurer of the termination of the
deduction. If the designating body's resolution is adopted after the
county treasurer has mailed the statement required by
IC 6-1.1-22-8.1, the county treasurer shall immediately mail the
property owner a revised statement that reflects the termination of
the deduction.
(e) A property owner whose deduction is terminated by the
designating body under this section may appeal the designating
body's decision by filing a complaint in the office of the clerk of the
circuit or superior court together with a bond conditioned to pay the
costs of the appeal if the appeal is determined against the property
owner. An appeal under this subsection shall be promptly heard by
the court without a jury 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 action of the designating body or
sustain the appeal. The judgment of the court is final and conclusive
unless an appeal is taken as in other civil actions.
(f) If an appeal under subsection (e) is pending, the taxes resulting
from the termination of the deduction are not due until after the
appeal is finally adjudicated and the termination of the deduction is
finally determined.
As added by P.L.14-1991, SEC.6. Amended by P.L.90-2002,
SEC.124; P.L.256-2003, SEC.7; P.L.193-2005, SEC.5;
P.L.154-2006, SEC.30; P.L.3-2008, SEC.37; P.L.146-2008,
SEC.128.
IC 6-1.1-12.1-6
Multiple deductions barred
Sec. 6. (a) A property owner may not receive a deduction under
this chapter for repairs or improvements to real property if he
receives a deduction under either IC 6-1.1-12-18 or IC 6-1.1-12-22
for those same repairs or improvements.
(b) A property owner may not receive a deduction under this
chapter if the property owner receives a deduction under
IC 6-1.1-12-28.5 for the same property.
As added by Acts 1977, P.L.69, SEC.1. Amended by P.L.25-1995,
SEC.23.
IC 6-1.1-12.1-7
Economic development target area; designation
Sec. 7. (a) After favorable recommendation by an economic
development commission, the fiscal body of a city or town may by
ordinance designate as an economic development target area a
specific geographic territory that:
(1) has become undesirable or impossible for normal
development and occupancy because of a lack of development,
cessation of growth, deterioration of improvements or character
of occupancy, age, obsolescence, substandard buildings, or
other factors that have impaired values or prevent a normal
development of property or use of property;
(2) has been designated as a registered historic district under:
(A) the National Historic Preservation Act of 1966; or
(B) the jurisdiction of a preservation commission organized
under:
(i) IC 36-7-11;
(ii) IC 36-7-11.1;
(iii) IC 36-7-11.2;
(iv) IC 36-7-11.3; or
(v) IC 14-3-3.2 (before its repeal); or
(3) encompasses buildings, structures, sites, or other facilities
that are:
(A) listed on the national register of historic places
established pursuant to 16 U.S.C. 470 et seq.;
(B) listed on the register of Indiana historic sites and historic
structures established under IC 14-21-1; or
(C) determined to be eligible for listing on the Indiana
register by the Indiana state historic preservation officer.
(b) The fiscal body of a city or town may designate a maximum
of fifteen percent (15%) of the total geographic territory of the city
or town to be in economic development target areas.
(c) Notwithstanding the repeal of IC 36-7-11.9-4 and
IC 36-7-12-38, an economic development target area established by
a city or town before July 1, 1987, continues in effect until it is
modified or abolished by ordinance of the city or town fiscal body.
As added by P.L.82-1987, SEC.7. Amended by P.L.1-1995, SEC.44.
IC 6-1.1-12.1-8
Publishing and filing deduction information
Sec. 8. (a) Not later than December 31 of each year, the county
auditor shall publish the following in a newspaper of general interest
and readership and not one of limited subject matter:
(1) A list of the deduction applications that were filed under this
chapter during that year that resulted in deductions being
applied under this chapter for that year. The list must contain
the following:
(A) The name and address of each person approved for or
receiving a deduction that was filed for during the year.
(B) The amount of each deduction that was filed for during
the year.
(C) The number of years for which each deduction that was
filed for during the year will be available.
(D) The total amount for all deductions that were filed for
and applied during the year.
(2) The total amount of all deductions for real property that
were in effect under section 3 of this chapter during the year.
(3) The total amount of all deductions for new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment that were in effect under section 4.5 of
this chapter during the year.
(4) The total amount of all deductions for eligible vacant
buildings that were in effect under section 4.8 of this chapter
during the year.
(b) The county auditor shall file the information described in
subsection (a)(2), (a)(3), and (a)(4) with the department of local
government finance not later than December 31 of each year.
As added by P.L.77-1989, SEC.3. Amended by P.L.42-1992, SEC.5;
P.L.4-2000, SEC.11; P.L.90-2002, SEC.125; P.L.64-2004, SEC.11
and P.L.81-2004, SEC.55; P.L.193-2005, SEC.6; P.L.154-2006,
SEC.31.
IC 6-1.1-12.1-9
Deadline for approval of statement of benefits; extension
Sec. 9. Notwithstanding any other provision of this chapter, a
designating body may not approve a statement of benefits for a
deduction under section 3, 4.5, or 4.8 of this chapter after the
approval deadline, which is determined in the following manner:
(1) The initial approval deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial approval deadline and
subsequent approval deadlines are automatically extended in
increments of five (5) years, so that approval deadlines
subsequent to the initial approval deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an approval deadline
determined under subdivision (2), the general assembly may
enact a law that:
(A) terminates the automatic extension of approval deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
approval deadline.
As added by P.L.18-1992, SEC.22. Amended by P.L.25-1995,
SEC.24; P.L.216-2005, SEC.4; P.L.154-2006, SEC.32.
IC 6-1.1-12.1-9.5
Waiver of noncompliance
Sec. 9.5. (a) As used in this section, "clerical error" includes
mathematical errors and omitted signatures.
(b) Except as provided in section 9 of this chapter, the designating
body may by resolution waive noncompliance with the following
requirements in this chapter with respect to a particular deduction
under this chapter:
(1) a filing deadline applicable to an application, a statement of
benefits, or another document that is required to be filed under
this chapter; or
(2) a clerical error in an application, a statement of benefits, or
another document that is required to be filed under this chapter;
if the taxpayer otherwise qualifies for the deduction and the
document is filed or the clerical error is corrected before the
resolution is adopted. The resolution must specifically identify the
property, deductions, and taxpayer that are effected by the resolution,
specifically identify the noncompliance that is the subject of the
resolution, and include a finding that the noncompliance has been
corrected before the adoption of the resolution.
(c) The designating body shall certify a copy of a resolution
adopted under this section to the taxpayer and the department of
local government finance.
(d) If a noncompliance with this chapter has been corrected and
a resolution is adopted under this section, the taxpayer shall be
treated as if the taxpayer had complied with the procedural
requirements of this chapter. However, if the designating body
determines that granting the relief permitted by this section would
result in a delay in the issuance of tax bills, require the recalculation
of tax rates or tax levies for a particular year, or otherwise cause an
undue burden on a taxing unit, the designating body may require that
the deduction that the taxpayer would be entitled to receive for a
particular year be applied to a subsequent year in the manner
prescribed by the department of local government finance.
As added by P.L.154-2006, SEC.33.
IC 6-1.1-12.1-10
Retroactive approval of statement of benefits; applicability
Sec. 10. (a) This section applies to a town having a population of
more than two thousand five hundred (2,500) located in a county
having a population of more than twenty-seven thousand five
hundred seventy-five (27,575) but less than twenty-nine thousand
(29,000).
(b) Notwithstanding sections 3 and 4.5 of this chapter, the
submission of a statement of benefits to a designating body
subsequent to the installation of new manufacturing equipment and
the initiation of the rehabilitation or redevelopment of real estate and
the designating body's retroactive approval of that statement of
benefits are legalized and validated for 1993 and subsequent
assessment years, subject to the limitations set forth in section 5(e)
of this chapter.
As added by P.L.32-1994, SEC.1. Amended by P.L.170-2002,
SEC.18.
IC 6-1.1-12.1-11
Fiscal analysis; report
Sec. 11. On a quadrennial basis, the general assembly shall
provide for an evaluation of the provisions of this chapter, giving
first priority to using the Indiana economic development corporation
established under IC 5-28-3. The evaluation must be a fiscal analysis,
including an assessment of the effectiveness of the provisions of this
chapter to:
(1) create new jobs;
(2) increase income; and
(3) increase the tax base;
in the jurisdiction of the designating body. The fiscal analysis may
also consider impacts on tax burdens borne by various classes of
property owners. The fiscal analysis may also include a review of the
practices and experiences of other states or political subdivisions
with laws similar to the provisions of this chapter. The board of the
Indiana economic development corporation established under
IC 5-28-4 or another person or entity designated by the general
assembly shall submit a report on the evaluation to the governor, the
president pro tempore of the senate, and the speaker of the house of
representatives before December 1, 1999, and every fourth year
thereafter.
As added by P.L.25-1995, SEC.25. Amended by P.L.4-2005, SEC.36.
IC 6-1.1-12.1-11.3
Waiver of noncompliance
Sec. 11.3. (a) This section applies only to the following
requirements:
(1) Failure to provide the completed statement of benefits form
to the designating body before the hearing required by section
2.5(c) of this chapter.
(2) Failure to submit the completed statement of benefits form
to the designating body before the:
(A) initiation of the redevelopment or rehabilitation;
(B) installation of new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment; or
(C) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this
chapter.
(3) Failure to designate an area as an economic revitalization
area before the initiation of the:
(A) redevelopment;
(B) installation of new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
(C) rehabilitation; or
(D) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this
chapter.
(4) Failure to make the required findings of fact before
designating an area as an economic revitalization area or
authorizing a deduction for new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment under section 2, 3, 4.5, or 4.8 of this chapter.
(5) Failure to file a:
(A) timely; or
(B) complete;
deduction application under section 5, 5.3, or 5.4 of this
chapter.
(b) This section does not grant a designating body the authority to
exempt a person from filing a statement of benefits or exempt a
designating body from making findings of fact.
(c) A designating body may by resolution waive noncompliance
described under subsection (a) under the terms and conditions
specified in the resolution. Before adopting a waiver under this
subsection, the designating body shall conduct a public hearing on
the waiver.
As added by P.L.84-1995, SEC.3. Amended by P.L.4-2000, SEC.12;
P.L.245-2003, SEC.11; P.L.64-2004, SEC.12 and P.L.81-2004,
SEC.56; P.L.154-2006, SEC.34.
IC 6-1.1-12.1-12
Repayment of deduction falsely obtained; appeal; calculation;
distribution of repayment
Sec. 12. (a) A property owner that has received a deduction under
section 3, or 4.5 of this chapter is subject to the provisions of this
section if the designating body adopts a resolution incorporating the
provisions of this section for the economic revitalization area in
which the property owner is located.
(b) If:
(1) the property owner (or, in the case of a deduction under
section 4.8 of this chapter, the property owner or a tenant of the
property owner) ceases operations at the facility for which the
deduction was granted; and
(2) the designating body finds that the property owner obtained
the deduction by intentionally providing false information
concerning the property owner's plans to continue operations at
the facility;
the property owner shall pay the amount determined under
subsection (e) to the county treasurer.
(c) A property owner may appeal the designating body's decision
under subsection (b) by filing a complaint in the office of the clerk
of the circuit or superior court together with a bond conditioned to
pay the costs of the appeal if the appeal is determined against the
property owner. An appeal under this subsection shall be promptly
heard by the court without a jury and determined not more than thirty
(30) days after the time of the filing of the appeal. The court shall
hear evidence on the appeal and may confirm the action of the
designating body or sustain the appeal. The judgment of the court is
a final determination that may be appealed in the same manner as
other civil actions.
(d) If an appeal under subsection (c) is pending, the payment
required by this section is not due until after the appeal is finally
adjudicated and the property owner's liability for the payment is
finally determined.
(e) The county auditor shall determine the amount to be paid by
the property owner according to the following formula:
STEP ONE: For each year that the deduction was in effect,
determine the additional amount of property taxes that would
have been paid by the property owner if the deduction had not
been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Multiply the sum determined under STEP TWO
by one and one-tenth (1.1).
(f) The county treasurer shall distribute money paid under this
section on a pro rata basis to the general fund of each taxing unit that
contains the property that was subject to the deduction. The amount
to be distributed to the general fund of each taxing unit shall be
determined by the county auditor according to the following formula:
STEP ONE: For each year that the deduction was in effect,
determine the additional amount of property taxes that would
have been paid by the property owner to the taxing unit if the
deduction had not been in effect.
STEP TWO: Determine the sum of the STEP ONE amounts.
STEP THREE: Divide the STEP TWO sum by the sum
determined under STEP TWO of subsection (e).
STEP FOUR: Multiply the amount paid by the property owner
under subsection (e) by the STEP THREE quotient.
As added by P.L.85-1995, SEC.2. Amended by P.L.154-2006,
SEC.35.
IC 6-1.1-12.1-13
Department of local government finance rules
Sec. 13. The department of local government finance shall adopt
rules under IC 4-22-2 to implement this chapter.
As added by P.L.245-2003, SEC.12.
IC 6-1.1-12.1-14
Local government authority to impose fee with consent of property
owner; fee amount; distribution
Sec. 14. (a) This section does not apply to:
(1) a deduction under section 3 of this chapter for property
located in a residentially distressed area; or
(2) any other deduction under section 3 or 4.5 of this chapter for
which a statement of benefits was approved before July 1, 2004.
(b) A property owner that receives a deduction under section 3,
4.5, or 4.8 of this chapter is subject to this section only if the
designating body, with the consent of the property owner,
incorporates this section, including the percentage to be applied by
the county auditor for purposes of STEP TWO of subsection (c), into
its initial approval of the property owner's statement of benefits and
deduction at the time of that approval.
(c) During each year in which a property owner's property tax
liability is reduced by a deduction applied under this chapter, the
property owner shall pay to the county treasurer a fee in an amount
determined by the county auditor. The county auditor shall determine
the amount of the fee to be paid by the property owner according to
the following formula:
STEP ONE: Determine the additional amount of property taxes
that would have been paid by the property owner during the
year if the deduction had not been in effect.
STEP TWO: Multiply the amount determined under STEP ONE
by the percentage determined by the designating body under
subsection (b), which may not exceed fifteen percent (15%).
The percentage determined by the designating body remains in
effect throughout the term of the deduction and may not be
changed.
STEP THREE: Determine the lesser of the STEP TWO product
or one hundred thousand dollars ($100,000).
(d) Fees collected under this section must be distributed to one (1)
or more public or nonprofit entities established to promote economic
development within the corporate limits of the city, town, or county
served by the designating body. The designating body shall notify the
county auditor of the entities that are to receive distributions under
this section and the relative proportions of those distributions. The
county auditor shall distribute fees collected under this section in
accordance with the designating body's instructions.
(e) If the designating body determines that a property owner has
not paid a fee imposed under this section, the designating body may
adopt a resolution terminating the property owner's deduction under
section 3, 4.5, or 4.8 of this chapter. If the designating body adopts
such a resolution, the deduction does not apply to the next
installment of property taxes owed by the property owner or to any
subsequent installment of property taxes.
As added by P.L.81-2004, SEC.57. Amended by P.L.193-2005,
SEC.7; P.L.154-2006, SEC.36.
IC 6-1.1-12.1-15
Correction of deduction errors
Sec. 15. (a) If:
(1) as the result of an error by a taxpayer 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 as provided
in this section.
(b) With respect to a deduction based on an increase in the
assessed value of real property, the county auditor shall apply a
deduction from the assessed value of the real property:
(1) except as provided in subsection (d), for the assessment date
that next succeeds the last assessment date for which a
deduction under this chapter would apply without regard to this
section based on that increase; and
(2) except as provided in subsection (c), in the amount of the
lesser of:
(A) the remainder of:
(i) the amount of the deduction to which the taxpayer is
entitled under this chapter for the particular assessment
date under subsection (a); minus
(ii) the amount of the deduction that was applied for that
assessment date; or
(B) the assessed value of the real property for the assessment
date for which the correction applies.
(c) If the county auditor applies an incorrect deduction as
described in subsection (a) for more than one (1) assessment date, the
county auditor shall:
(1) combine the amounts of deduction corrections determined
under subsection (b)(2)(A) for all of the assessment dates for
which incorrect deductions were applied; and
(2) except as provided in subsection (d), apply that combined
amount as a deduction for the assessment date referred to in
subsection (b)(1) in the manner described in subsection (b)(2).
(d) If:
(1) the remainder determined under subsection (b)(2)(A); or
(2) the combined amount of deduction corrections under
subsection (c)(1);
exceeds the assessed value referred to in subsection (b)(2)(B), the
county auditor shall carry the excess over as assessed value
deductions for the immediately succeeding assessment date or dates.
(e) With respect to a deduction based on an increase in the
assessed value of personal property, the county auditor shall apply
deduction corrections in the manner provided in subsections (a)
through (d), except that the assessed value and deduction
determinations apply to the taxpayer's personal property return.
(f) A taxpayer is not required to file an application for a deduction
under this section.
As added by P.L.219-2007, SEC.33.
Disclaimer: These codes may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
