2014 Indiana Code TITLE 36. LOCAL GOVERNMENT ARTICLE 7. PLANNING AND DEVELOPMENT CHAPTER 13. INDUSTRIAL DEVELOPMENT
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IC 36-7-13
Chapter 13. Industrial Development
IC 36-7-13-1
Application of chapter
Sec. 1. This chapter applies to all units except townships.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,
P.L.310, SEC.75; P.L.262-1993, SEC.1.
IC 36-7-13-1.6
"District"
Sec. 1.6. As used in this chapter, "district" refers to a community
revitalization enhancement district designated under section 10.5, 12,
or 12.1 of this chapter.
As added by P.L.125-1998, SEC.4. Amended by P.L.174-2001,
SEC.1; P.L.224-2003, SEC.232.
IC 36-7-13-2
Repealed
(Repealed by Acts 1981, P.L.310, SEC.94.)
IC 36-7-13-2.4
"Gross retail base period amount"
Sec. 2.4. Except as provided in section 10.7(c) of this chapter, as
used in this chapter, "gross retail base period amount" means:
(1) the aggregate amount of state gross retail and use taxes
remitted under IC 6-2.5 by the businesses operating in the
territory comprising a district during the full state fiscal year
that precedes the date on which:
(A) an advisory commission on industrial development
adopted a resolution designating the district, in the case of a
district that is not described in section 12(c) of this chapter;
or
(B) the legislative body of a county or municipality adopts
an ordinance designating a district under section 10.5 of this
chapter;
(2) an amount equal to:
(A) the aggregate amount of state gross retail and use taxes
remitted:
(i) under IC 6-2.5 by the businesses operating in the
territory comprising a district; and
(ii) during the month in which an advisory commission on
industrial development adopted a resolution designating
the district; multiplied by
(B) twelve (12);
in the case of a district that is described in section 12(c) of this
chapter; or
(3) an amount equal to the amount determined under
subdivision (1) or (2); plus:
(A) the aggregate amount of state gross retail and use taxes
remitted:
(i) under IC 6-2.5 by the businesses operating in the
territory added to the district; and
(ii) during the month in which a petition to modify the
district's boundaries is approved by the budget agency
under section 12.5 of this chapter; multiplied by
(B) twelve (12);
in the case of a district modified under section 12.5 of this
chapter.
As added by P.L.125-1998, SEC.5. Amended by P.L.138-1999,
SEC.1; P.L.174-2001, SEC.2; P.L.178-2002, SEC.116; P.L.81-2004,
SEC.31 and P.L.90-2004, SEC.4.
IC 36-7-13-2.6
"Gross retail incremental amount"
Sec. 2.6. (a) Except as provided in subsection (b), as used in this
chapter, "gross retail incremental amount" means the remainder of:
(1) the aggregate amount of state gross retail and use taxes that
are remitted under IC 6-2.5 by businesses operating in a district
during a state fiscal year; minus
(2) the gross retail base period amount;
as determined by the department of state revenue under section 14 of
this chapter.
(b) For purposes of a district designated under section 12.1 of this
chapter, "gross retail incremental amount" means seventy-five
percent (75%) of the amount described in subsection (a).
As added by P.L.125-1998, SEC.6. Amended by P.L.224-2003,
SEC.233.
IC 36-7-13-3
"Improve"; authority to acquire, own, and deal in real property;
expenditure of funds
Sec. 3. (a) For purposes of this chapter, "improve" means to
construct, reconstruct, or repair public ways, sidewalks, sewers,
drains, fences, or buildings, and to do all other things that would
enhance the value of real property and make it more suitable to
industrial use.
(b) A unit may acquire by purchase, gift, or devise, and own,
improve, maintain, sell, lease, convey, contract for, or otherwise deal
in, real property for the development of industrial parks or industrial
sites.
(c) A municipality may exercise powers granted by subsection (b)
in areas within five (5) miles outside its corporate boundaries.
(d) When a district is designated under section 12(e) of this
chapter, a unit may expend funds for the purposes set forth in
subsections (a) and (b) for the development of or to enhance the value
of real property used for retail purposes.
(e) When a district is designated under section 12.1 of this chapter,
a unit may expend funds for the purposes set forth in section 12.1(b)
of this chapter for the development of or to enhance the value of real
property used for retail purposes and to make it more suitable to
industrial or retail use.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,
P.L.310, SEC.76; P.L.262-1993, SEC.2; P.L.113-2002, SEC.4;
P.L.224-2003, SEC.234.
IC 36-7-13-3.2
"Income tax base period amount"
Sec. 3.2. Except as provided in section 10.7(d) of this chapter, as
used in this chapter, "income tax base period amount" means:
(1) the aggregate amount of state and local income taxes paid by
employees employed in the territory comprising a district with
respect to wages and salary earned for work in the district for
the state fiscal year that precedes the date on which:
(A) an advisory commission on industrial development
adopted a resolution designating the district, in the case of a
district that is not described in section 12(c) of this chapter;
or
(B) the legislative body of a county or municipality adopts
an ordinance designating a district under section 10.5 of this
chapter;
(2) an amount equal to:
(A) the aggregate amount of state and local income taxes
paid by employees employed in the territory comprising a
district with respect to wages and salary earned for work in
the district during the month in which an advisory
commission on industrial development adopted a resolution
designating the district; multiplied by
(B) twelve (12);
in the case of a district that is described in section 12(c) of this
chapter; or
(3) an amount equal to the amount determined under
subdivision (1) or (2); plus:
(A) the aggregate amount of state and local income taxes
paid by employees employed in the territory added to the
district with respect to wages and salary earned for work in
the modified district during the month in which a petition to
modify the district's boundaries is approved by the budget
agency under section 12.5 of this chapter; multiplied by
(B) twelve (12);
in the case of a district modified under section 12.5 of this
chapter.
As added by P.L.125-1998, SEC.7. Amended by P.L.138-1999,
SEC.2; P.L.174-2001, SEC.3; P.L.178-2002, SEC.117; P.L.81-2004,
SEC.32 and P.L.90-2004, SEC.5.
IC 36-7-13-3.4
"Income tax incremental amount"
Sec. 3.4. (a) Except as provided in subsection (b), as used in this
chapter, "income tax incremental amount" means the remainder of:
(1) the aggregate amount of state and local income taxes paid by
employees employed in a district with respect to wages earned
for work in the district for a particular state fiscal year; minus
(2) the sum of the:
(A) income tax base period amount; and
(B) tax credits awarded by the economic development for a
growing economy board under IC 6-3.1-13 to businesses
operating in a district as the result of wages earned for work
in the district for the state fiscal year;
as determined by the department of state revenue under section 14 of
this chapter.
(b) For purposes of a district designated under section 12.1 of this
chapter, "income tax incremental amount" means seventy-five
percent (75%) of the amount described in subsection (a).
As added by P.L.125-1998, SEC.8. Amended by P.L.224-2003,
SEC.235; P.L.199-2005, SEC.30.
IC 36-7-13-3.8
"State and local income taxes"
Sec. 3.8. As used in this chapter, "state and local income taxes"
means taxes imposed under any of the following:
(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).
(2) IC 6-3.5-1.1 (county adjusted gross income tax).
(3) IC 6-3.5-6 (county option income tax).
(4) IC 6-3.5-7 (county economic development income tax).
As added by P.L.125-1998, SEC.9. Amended by P.L.192-2002(ss),
SEC.174.
IC 36-7-13-4
Industrial development fund; tax levy
Sec. 4. (a) To provide money for the purposes set forth in section
3 of this chapter, the unit shall create a special revolving fund to be
known as the industrial development fund, into which any available
and unappropriated money of the unit may be transferred by the unit's
legislative body.
(b) The legislative body may also by ordinance levy a tax not to
exceed one and sixty-seven hundredths cents ($0.0167) on each one
hundred dollars ($100) of assessed value of all personal and real
property within its jurisdiction. The proceeds of this tax shall be
deposited in the industrial development fund. The unit may collect
the tax as other municipal or county taxes are collected, or may set up
a system for the collection and enforcement of the tax in the unit.
Money in the industrial development fund may be used for any
purpose authorized by this chapter and may be pledged for the
payment of principal and interest on bonds or other obligations issued
under this chapter.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,
P.L.310, SEC.77; P.L.262-1993, SEC.3; P.L.6-1997, SEC.208;
P.L.125-1998, SEC.10; P.L.125-1998, SEC.11; P.L.203-2005,
SEC.8.
IC 36-7-13-5
Advisory commission on industrial development; creation;
membership; duties
Sec. 5. (a) In order to coordinate the efforts of the unit and any
private industrial development committee in the community, an
advisory commission on industrial development shall be appointed
by the unit's executive.
(b) Except as provided in subsection (d), the commission shall be
composed of six (6) members, including at least one (1)
representative of the unit's government, at least one (1) representative
of the local industrial development committee, at least one (1)
representative of a local banking institution, at least one (1)
representative of a local utility company, and at least one (1)
representative of organized labor from the building trades. A member
of the commission may represent more than one (1) of the
organizations enumerated.
(c) The unit's legislative body shall request the commission's
recommendations. The legislative body may not conduct any
business requiring expenditures from the industrial development fund
or make any sale or lease of property acquired by the unit under this
chapter without the approval, in writing, of a majority of the members
of the commission.
(d) In addition to the members described in subsection (b), if the
executive of a unit has submitted a petition to a commission under
section 10 of this chapter or if the legislative body of a county or
municipality has adopted an ordinance designating a district under
section 10.5 of this chapter, the following persons are members of the
commission:
(1) A member appointed by the governor.
(2) A member appointed by the lieutenant governor.
(3) A member appointed by the director of the department of
workforce development.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,
P.L.310, SEC.78; P.L.262-1993, SEC.4; P.L.1-1994, SEC.175;
P.L.125-1998, SEC.12; P.L.174-2001, SEC.4.
IC 36-7-13-5.5
Sales or leases of property acquired for industrial development
Sec. 5.5. (a) This section does not apply to sales, leases, or other
dispositions of real property to other public agencies for public
purposes.
(b) Before offering for sale or lease to the public any of the real
property acquired under this chapter, the advisory commission on
industrial development shall have two (2) separate appraisals of the
sale value, or rental value in case of a lease, made by independent
appraisers. In making appraisals, the appraisers shall take into
consideration the size, location, and physical condition of the parcels
and all other factors having a bearing on the value of the parcels. The
appraisals are solely for the information of the commission, the unit's
executive, and the unit's legislative body and are not open for public
inspection.
(c) The commission shall then prepare an offering sheet showing
the parcels to be offered and the offering prices, which may not be
less than the average of the two (2) appraisals. Copies of the offering
sheets shall be furnished to prospective buyers on request. Maps and
plats showing the size and location of all parcels to be offered shall
also be kept available for inspection at the office of the commission
or the unit's legislative body.
(d) A notice shall be published in accordance with IC 5-3-1. The
notice must state that at a designated time the commission will open
and consider written offers for the purchase or lease of the real
property being offered. In giving the notice it is not necessary to
describe each parcel separately or to specify the exact terms of
disposition, but the notice must:
(1) state the general location of the parcels;
(2) call attention generally to any limitations on the use to be
made of the real property offered; and
(3) state that a bid submitted by a trust (as defined in
IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(e) At the time fixed in the notice the commission shall open and
consider any offers received. All offers received shall be opened at
public meetings of the commission and shall be kept open for public
inspection.
(f) The commission may make recommendations to the legislative
body for awards to the highest and best bidders. In determining the
best bids, the commission shall take into consideration the following
factors:
(1) The size and character of the improvements proposed to be
made by the bidder on the real property.
(2) The bidder's plans and ability to improve the real property
with reasonable promptness.
(3) Whether the real property when improved will be sold or
rented.
(4) The bidder's proposed sale or rental prices.
(5) The bidder's compliance with subsection (d)(3).
(6) Any factors that will assure the commission that the sale or
lease, if made, will further industrial development of the unit
and best serve the interest of the community from the standpoint
of both human and economic welfare.
(g) The legislative body may contract with a bidder with regard to
the factors listed in subsection (f). The contract may provide for the
deposit of surety bonds, the making of good faith deposits, liquidated
damages, the right of repurchase, or other rights and remedies if the
bidder fails to comply with the contract. A conveyance under this
chapter may not be made until the agreed consideration has been
paid.
(h) After the opening and consideration of the written offers filed
in response to the notice, the legislative body may dispose of the
remainder of the available real property either at public sale or by
private negotiation. For a period of ninety (90) days after the opening
of the written offers, a sale or lease may not be made at a price or
rental less than that shown on the offering sheet. After that period, the
commission may adjust the offering prices in the manner it considers
necessary to further industrial development.
As added by P.L.214-1986, SEC.2. Amended by P.L.336-1989(ss),
SEC.50; P.L.262-1993, SEC.5.
IC 36-7-13-6
Industrial development fund; payments and deposits
Sec. 6. All costs for the acquisition and improvement of real
property under this chapter shall be paid from the industrial
development fund, and all proceeds from the sale of real property
under this chapter shall be deposited in that fund.
As added by Acts 1981, P.L.309, SEC.32.
IC 36-7-13-7
Title to real property
Sec. 7. The title to all real property acquired under this chapter
shall be taken in the name of the unit and shall be conveyed by
warranty deed executed by the presiding officer of the legislative
body and attested to by the clerk of the unit.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,
P.L.310, SEC.79; P.L.262-1993, SEC.6.
IC 36-7-13-8
Property acquired by or from unit; no tax exemption
Sec. 8. Property acquired by or from a unit under this chapter is
not exempt from any taxes.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,
P.L.310, SEC.80; P.L.262-1993, SEC.7.
IC 36-7-13-9
Transfer of surplus funds; cessation of tax levy
Sec. 9. When the purposes for which the industrial development
fund was established have been accomplished and all districts
designated by the unit have been terminated under section 19 of this
chapter, the balance remaining in that fund shall be transferred to the
general fund of the unit and the authority for the levy of the tax
provided by section 4 of this chapter ceases.
As added by Acts 1981, P.L.309, SEC.32. Amended by Acts 1981,
P.L.310, SEC.81; P.L.262-1993, SEC.8; P.L.125-1998, SEC.13.
IC 36-7-13-10
Application for designation of district
Sec. 10. (a) After approval by ordinance or resolution of the
legislative body of a municipality located in a county having a
population of:
(1) more than one hundred thirty-five thousand (135,000) but
less than one hundred thirty-eight thousand (138,000);
(2) more than two hundred fifty thousand (250,000) but less
than two hundred seventy thousand (270,000); or
(3) more than three hundred thousand (300,000) but less than
four hundred thousand (400,000);
the executive of the municipality may submit an application to an
advisory commission on industrial development requesting that an
area within the municipality be designated as a district.
(b) After approval by ordinance or resolution of the legislative
body of a county, the executive of the county may submit an
application to an advisory commission on industrial development
requesting that an area within the county, but not within a
municipality, be designated as a district. However, in a county having
a population of more than one hundred fifteen thousand (115,000) but
less than one hundred twenty-five thousand (125,000), the legislative
body of the county may request that an area within the county be
designated as a district even if the area is within a municipality.
As added by P.L.125-1998, SEC.14. Amended by P.L.138-1999,
SEC.3; P.L.174-2001, SEC.5; P.L.170-2002, SEC.158;
P.L.119-2012, SEC.203.
IC 36-7-13-10.1
Application for designation of district in first or second class city
Sec. 10.1. (a) This section applies to a:
(1) first class city; or
(2) second class city.
(b) After approval by ordinance or resolution of the legislative
body of a city described in subsection (a), the executive of the city
may submit an application to an advisory commission on industrial
development requesting that one (1) area within the city be
designated as a district under section 12.1 of this chapter. However,
the total number of districts designated in a city under this chapter
after June 30, 2003, (excluding districts designated before July 1,
2003) may not exceed one (1).
As added by P.L.224-2003, SEC.236.
IC 36-7-13-10.5
Designation of districts in economically distressed counties;
duration of district; notice publication; information to taxing units;
budget agency review
Sec. 10.5. (a) This section applies only to a county that meets the
following conditions:
(1) The county's annual rate of unemployment has been above
the average annual statewide rate of unemployment during at
least three (3) of the preceding five (5) years.
(2) The median income of the county has:
(A) declined over the preceding ten (10) years; or
(B) has grown at a lower rate than the average annual
statewide growth in median income during at least three (3)
of the preceding five (5) years.
(3) The population of the county (as determined by the
legislative body of the county) has declined over the preceding
ten (10) years.
(b) Except as provided in section 10.7 of this chapter, in a county
described in subsection (a), the legislative body of the county may
adopt an ordinance designating an unincorporated part or
unincorporated parts of the county as a district, and the legislative
body of a municipality located within the county may adopt an
ordinance designating a part or parts of the municipality as a district,
if the legislative body finds all of the following:
(1) The area to be designated as a district contains a building or
buildings that:
(A) have a total of at least fifty thousand (50,000) square feet
of usable interior floor space; and
(B) are vacant or will become vacant due to the relocation of
the employer or the cessation of operations on the site by the
employer.
(2) Significantly fewer persons are employed in the area to be
designated as a district than were employed in the area during
the year that is ten (10) years previous to the current year.
(3) There are significant obstacles to redevelopment in the area
due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination or remediation.
(c) A legislative body adopting an ordinance under subsection (b)
shall designate the duration of the district. However, a district must
terminate not later than fifteen (15) years after the income tax
incremental amount or gross retail incremental amount is first
allocated to the district.
(d) Except as provided in section 10.7 of this chapter, upon
adoption of an ordinance designating a district, the legislative body
shall:
(1) publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit in the
county where the district is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the district,
including the following:
(i) The estimated economic benefits and costs incurred by
the district, as measured by increased employment and
anticipated growth of property assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the district.
(e) Upon completion of the actions required by subsection (d), the
legislative body shall submit the ordinance to the budget committee
for review and recommendation to the budget agency. If the budget
agency fails to take action on an ordinance designating a district
within one hundred twenty (120) days after the date that the
ordinance is submitted to the budget committee, the designation of
the district by the ordinance is considered approved.
(f) Except as provided in section 10.7 of this chapter, when
considering the designation of a district by an ordinance adopted
under this section, the budget committee and the budget agency must
make the following findings before approving the designation of the
district:
(1) The area to be designated as a district meets the conditions
necessary for the designation as a district.
(2) The designation of the district will benefit the people of
Indiana by protecting or increasing state and local tax bases and
tax revenues for at least the duration of the district.
(g) Except as provided in section 10.7 of this chapter, the income
tax incremental amount and the gross retail incremental amount may
not be allocated to the district until the designation of the district by
the local ordinance is approved under this section.
As added by P.L.174-2001, SEC.6. Amended by P.L.178-2002,
SEC.118; P.L.81-2004, SEC.33 and P.L.90-2004, SEC.6;
P.L.199-2005, SEC.31.
IC 36-7-13-10.7
Calculation of net increment for preceding fiscal year; funds and
accounts; limitation on amounts received by city
Sec. 10.7. (a) This section applies to a district designated under
section 10.5 of this chapter and approved by the budget agency
before January 1, 2002, in a city having a population of more than
twenty-nine thousand nine hundred (29,900) but less than thirty-one
thousand (31,000).
(b) An area is added to and becomes part of a district described in
subsection (a) if the area consists of property that:
(1) is located in a city having a population of more than
twenty-nine thousand nine hundred (29,900) but less than
thirty-one thousand (31,000); and
(2) experienced a loss of at least three hundred (300) jobs during
the calendar year ending December 31, 2001.
(c) After the addition of property to a district described in
subsection (a) under this section, the gross retail base period amount
determined under section 2.4 of this chapter for the district before the
addition of the property to the district under this section shall be
increased by an amount equal to:
(1) the aggregate amount of state gross retail and use taxes
remitted:
(A) under IC 6-2.5 by the businesses operating in the area
added to the district under subsection (b); and
(B) during the period beginning after December 31, 2001,
and ending before February 1, 2002; multiplied by
(2) twelve (12).
(d) After the addition of property to a district described in
subsection (a) under this section, the income tax base period amount
determined under section 3.2 of this chapter for the district before the
addition of the property to the district under this section shall be
increased by an amount equal to:
(1) the aggregate amount of state and local income taxes paid:
(A) by employees employed in the area added to the district
under subsection (b) with respect to wages and salary earned
for work in the area added; and
(B) during the period beginning after December 31, 2001,
and ending before February 1, 2002; multiplied by
(2) twelve (12).
(e) The addition of property to a district under this section does
not require adoption of an ordinance, review by the budget
committee, or approval of the budget agency under section 10.5 of
this chapter.
As added by P.L.178-2002, SEC.119. Amended by P.L.119-2012,
SEC.204.
IC 36-7-13-11
Application for designation of district; duties of advisory
commission on industrial development
Sec. 11. If a municipal or county executive submits an application
requesting an area to be designated as a district under this chapter, the
advisory commission on industrial development shall do the
following:
(1) Compile information necessary to make a determination
concerning whether the area meets the conditions necessary for
designation as a district.
(2) Prepare maps showing the boundaries of the proposed
district.
(3) Prepare a plan describing the ways in which the
development obstacles described in section 12(b)(3), 12(c),
12(d), 12(e), or 12.1(a) of this chapter in the proposed district
will be addressed.
As added by P.L.125-1998, SEC.15. Amended by P.L.138-1999,
SEC.4; P.L.174-2001, SEC.7; P.L.224-2003, SEC.237.
IC 36-7-13-12
Designation of district; resolution; findings; duration; notice
requirements; information to taxing units; budget agency
proceedings
Sec. 12. (a) If a municipal or county executive has submitted an
application to an advisory commission on industrial development
requesting that an area be designated as a district under this chapter
and the advisory commission has compiled and prepared the
information required under section 11 of this chapter concerning the
area, the advisory commission may adopt a resolution designating the
area as a district if it makes the findings described in subsection (b),
(c), (d), or (e). In a county described in subsection (c), an advisory
commission may designate more than one (1) district under
subsection (c).
(b) For an area located in a county having a population of more
than one hundred thirty-five thousand (135,000) but less than one
hundred thirty-eight thousand (138,000), an advisory commission
may adopt a resolution designating a particular area as a district only
after finding all of the following:
(1) The area contains a building or buildings:
(A) with at least one million (1,000,000) square feet of
usable interior floor space; and
(B) that is or are vacant or will become vacant due to the
relocation of an employer.
(2) At least one thousand (1,000) fewer persons are employed
in the area than were employed in the area during the year that
is ten (10) years previous to the current year.
(3) There are significant obstacles to redevelopment of the area
due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(4) The unit has expended, appropriated, pooled, set aside, or
pledged at least one hundred thousand dollars ($100,000) for
purposes of addressing the redevelopment obstacles described
in subdivision (3).
(5) The area is located in a county having a population of more
than one hundred thirty-five thousand (135,000) but less than
one hundred thirty-eight thousand (138,000).
(c) For a county having a population of more than one hundred
fifteen thousand (115,000) but less than one hundred twenty-five
thousand (125,000), an advisory commission may adopt a resolution
designating not more than three (3) areas as districts. An advisory
commission may designate an area as a district only after finding the
following:
(1) The area meets at least one (1) of the following conditions:
(A) The area meets the following conditions:
(i) The area contains a building with at least seven hundred
ninety thousand (790,000) square feet.
(ii) At least eight hundred (800) fewer people are
employed in the area than were employed in the area
during the year that is fifteen (15) years previous to the
current year.
(iii) The area is located in or is adjacent to an industrial
park.
(B) The area meets the following conditions:
(i) The area contains a building with at least three hundred
eighty-six thousand (386,000) square feet.
(ii) At least four hundred (400) fewer people are employed
in the area than were employed in the area during the year
that is fifteen (15) years previous to the current year.
(iii) The area is located in or is adjacent to an industrial
park.
(C) The area meets the following conditions:
(i) The area contains a building with at least one million
(1,000,000) square feet.
(ii) At least seven hundred (700) fewer people are
employed in the area than were employed in the area on
January 1, 2008.
(2) There are significant obstacles to redevelopment of the area
due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(3) The area is located in a county having a population of more
than one hundred fifteen thousand (115,000) but less than one
hundred twenty-five thousand (125,000).
(d) For an area located in a county having a population of more
than two hundred fifty thousand (250,000) but less than two hundred
seventy thousand (270,000), an advisory commission may adopt a
resolution designating a particular area as a district only after finding
all of the following:
(1) The area contains a building or buildings:
(A) with at least one million five hundred thousand
(1,500,000) square feet of usable interior floor space; and
(B) that is or are vacant or will become vacant.
(2) At least eighteen thousand (18,000) fewer persons are
employed in the area at the time of application than were
employed in the area before the time of application.
(3) There are significant obstacles to redevelopment of the area
due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or inefficient utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(4) The unit has expended, appropriated, pooled, set aside, or
pledged at least one hundred thousand dollars ($100,000) for
purposes of addressing the redevelopment obstacles described
in subdivision (3).
(5) The area is located in a county having a population of more
than two hundred fifty thousand (250,000) but less than two
hundred seventy thousand (270,000).
(e) For an area located in a county having a population of more
than three hundred thousand (300,000) but less than four hundred
thousand (400,000), an advisory commission may adopt a resolution
designating a particular area as a district only after finding all of the
following:
(1) The area contains a building or buildings:
(A) with at least eight hundred thousand (800,000) gross
square feet; and
(B) having leasable floor space, at least fifty percent (50%)
of which is or will become vacant.
(2) There are significant obstacles to redevelopment of the area
due to any of the following problems:
(A) Obsolete or inefficient buildings as evidenced by a
decline of at least seventy-five percent (75%) in their
assessed valuation during the preceding ten (10) years.
(B) Transportation or access problems.
(C) Environmental contamination.
(3) At least four hundred (400) fewer persons are employed in
the area than were employed in the area during the year that is
fifteen (15) years previous to the current year.
(4) The area has been designated as an economic development
target area under IC 6-1.1-12.1-7.
(5) The unit has appropriated, pooled, set aside, or pledged at
least two hundred fifty thousand dollars ($250,000) for purposes
of addressing the redevelopment obstacles described in
subdivision (2).
(6) The area is located in a county having a population of more
than three hundred thousand (300,000) but less than four
hundred thousand (400,000).
(f) The advisory commission, or the county or municipal
legislative body, in the case of a district designated under section
10.5 of this chapter, shall designate the duration of the district.
However, a district must terminate not later than fifteen (15) years
after the income tax incremental amount or gross retail incremental
amount is first allocated to the district.
(g) Upon adoption of a resolution designating a district, the
advisory commission shall:
(1) publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit in the
county where the district is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the district,
including the following:
(i) The estimated economic benefits and costs incurred by
the district, as measured by increased employment and
anticipated growth of property assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the district.
(h) Upon completion of the actions required by subsection (g), the
advisory commission shall submit the resolution to the budget
committee for review and recommendation to the budget agency. If
the budget agency fails to take action on a resolution designating a
district within one hundred twenty (120) days after the date that the
resolution is submitted to the budget committee, the designation of
the district by the resolution is considered approved.
(i) When considering a resolution, the budget committee and the
budget agency must make the following findings:
(1) The area to be designated as a district meets the conditions
necessary for designation as a district.
(2) The designation of the district will benefit the people of
Indiana by protecting or increasing state and local tax bases and
tax revenues for at least the duration of the district.
(j) The income tax incremental amount and the gross retail
incremental amount may not be allocated to the district until the
resolution is approved under this section.
As added by P.L.125-1998, SEC.16. Amended by P.L.1-1999,
SEC.81; P.L.138-1999, SEC.5; P.L.174-2001, SEC.8; P.L.170-2002,
SEC.159; P.L.224-2003, SEC.238; P.L.81-2004, SEC.34 and
P.L.90-2004, SEC.7; P.L.199-2005, SEC.32; P.L.113-2010,
SEC.131; P.L.119-2012, SEC.205.
IC 36-7-13-12.1
Designation of district; resolution; findings; duration; notice
requirements; information to taxing units; budget agency
proceedings
Sec. 12.1. (a) If the executive of a city described in section 10.1(a)
of this chapter has submitted an application to an advisory
commission on industrial development requesting that an area be
designated as a district under this chapter and the advisory
commission has compiled and prepared the information required
under section 11 of this chapter concerning the area, the advisory
commission may adopt a resolution designating the area as a district
if it finds the following:
(1) That the redevelopment of the area in the district will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the area; or
(C) retain or expand a significant business enterprise within
the area.
(2) That there are significant obstacles to redevelopment of the
area due to any of the following problems:
(A) Obsolete or inefficient buildings.
(B) Aging infrastructure or ineffective utility services.
(C) Utility relocation requirements.
(D) Transportation or access problems.
(E) Topographical obstacles to redevelopment.
(F) Environmental contamination.
(G) Lack of development or cessation of growth.
(H) Deterioration of improvements or character of
occupancy, age, obsolescence, or substandard buildings.
(I) Other factors that have impaired values or prevent a
normal development of property or use of property.
(b) To address the obstacles identified in subsection (a)(2), the city
may make expenditures for:
(1) the acquisition of land;
(2) interests in land;
(3) site improvements;
(4) infrastructure improvements;
(5) buildings;
(6) structures;
(7) rehabilitation, renovation, and enlargement of buildings and
structures;
(8) machinery;
(9) equipment;
(10) furnishings;
(11) facilities;
(12) administration expenses associated with such a project;
(13) operating expenses; or
(14) substance removal or remedial action to the area.
(c) In addition to the findings described in subsection (a), an
advisory commission must also find that the city described in section
10.1(a) of this chapter has expended, appropriated, pooled, set aside,
or pledged at least two hundred fifty thousand dollars ($250,000) for
purposes of addressing the redevelopment obstacles described in
subsection (a)(2).
(d) The advisory commission shall designate the duration of the
district. However, a district must terminate not later than fifteen (15)
years after the income tax incremental amount or gross retail
incremental amount is first allocated to the district under this chapter.
(e) Upon adoption of a resolution designating a district, the
advisory commission shall:
(1) publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit in the
county where the district is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement disclosing the impact of the district,
including the following:
(i) The estimated economic benefits and costs incurred by
the district, as measured by increased employment and
anticipated growth of property assessed values.
(ii) The anticipated impact on tax revenues of each taxing
unit.
The notice must state the general boundaries of the district.
(f) Upon completion of the actions required by subsection (e), the
advisory commission shall submit the resolution to the budget
committee for review and recommendation to the budget agency. If
the budget agency fails to take action on a resolution designating a
district within one hundred twenty (120) days after the date that the
resolution is submitted to the budget committee, the designation of
the district by the resolution is considered approved.
(g) When considering a resolution, the budget committee and the
budget agency must make the following findings:
(1) The area to be designated as a district meets the conditions
necessary for designation as a district.
(2) The designation of the district will benefit the people of
Indiana by protecting or increasing state and local tax bases and
tax revenues for at least the duration of the district.
(h) The income tax incremental amount and the gross retail
incremental amount may not be allocated to the district until the
resolution is approved under this section.
As added by P.L.224-2003, SEC.239. Amended by P.L.81-2004,
SEC.35 and P.L.90-2004, SEC.8; P.L.199-2005, SEC.33.
IC 36-7-13-12.3
Designation of districts after 2010; requirements
Sec. 12.3. (a) Notwithstanding any other provision of this chapter,
the designation of any district after December 31, 2010, is subject to
the requirements of this section.
(b) An advisory commission on industrial development may not
designate a district under section 12 or 12.1 of this chapter unless the
advisory commission makes the following findings of fact:
(1) That the county or municipality applying for the designation
satisfies each of the following requirements:
(A) That, as reported by the Indiana Real Estate Markets
Report, the average selling price of homes located in the
county or municipality has declined by at least fourteen
percent (14%) over a one (1) year period occurring within
the four (4) calendar years preceding the calendar year in
which the application of the county or municipality is filed
with the advisory commission on industrial development.
(B) That, as reported by the Indiana department of workforce
development, the unemployment rate of the county or
municipality was at least ten and four-tenths percent (10.4%)
for any calendar month occurring in the calendar year
preceding the calendar year in which the application of the
county or municipality is filed with the advisory commission
on industrial development.
(2) That the proposed district contains a site that is suitable for
revitalization under this chapter and satisfies the following
requirements:
(A) The site contains a vacated industrial building consisting
of at least one million three hundred thousand (1,300,000)
square feet of space.
(B) The vacated industrial building described by clause (A)
contains at least eighty thousand (80,000) square feet of
office space.
(C) The site contains a reinforced concrete pad suitable for
expanding the vacated industrial building by at least two
hundred thousand (200,000) square feet.
(D) The site is serviced by a water treatment facility capable
of treating all of the effluent discharged from the site.
(E) The site consists of at least one hundred twenty (120)
acres of land.
(c) The legislative body of a county or municipality may not adopt
an ordinance designating a district under section 10.5 of this chapter
unless the legislative body makes the following findings of fact:
(1) That the county or municipality governed by the legislative
body satisfies each of the following requirements:
(A) That, as reported by the Indiana Real Estate Markets
Report, the average selling price of homes located in the
county or municipality has declined by at least fourteen
percent (14%) over a one (1) year period occurring within
the four (4) calendar years preceding the calendar year in
which the proposed ordinance is adopted.
(B) That, as reported by the Indiana department of workforce
development, the unemployment rate of the county or
municipality was at least ten and four-tenths percent (10.4%)
for any calendar month occurring in the calendar year
preceding the calendar year in which the proposed ordinance
is adopted.
(2) That the proposed district contains a site that is suitable for
revitalization under this chapter and satisfies the following
requirements:
(A) The site contains a vacated industrial building consisting
of at least one million three hundred thousand (1,300,000)
square feet of space.
(B) The vacated industrial building described by clause (A)
contains at least eighty thousand (80,000) square feet of
office space.
(C) The site contains a reinforced concrete pad suitable for
expanding the vacated industrial building by at least two
hundred thousand (200,000) square feet.
(D) The site is serviced by a water treatment facility capable
of treating all of the effluent discharged from the site.
(E) The site consists of at least one hundred twenty (120)
acres of land.
(d) An advisory commission on industrial development or a
legislative body that designates a district under this chapter shall
include a copy of the findings made under subsection (b) or (c) when
sending a copy of the resolution or ordinance designating the district
to the budget agency for its approval.
(e) The budget agency may not approve the designation of a
district until the budget agency confirms the findings of fact
submitted under this section. If a resolution or ordinance is submitted
to the budget agency without the findings of fact required by this
section, the time in which the budget agency must take action on the
resolution or ordinance as set forth in sections 10.5, 12, and 12.1 of
this chapter is tolled until the findings of fact are submitted to the
budget agency.
As added by P.L.172-2011, SEC.144.
IC 36-7-13-12.5
Petition for modification of district boundaries; budget committee
and budget agency findings; certification of boundaries
Sec. 12.5. (a) An advisory commission on industrial development
that designates a district under section 12 or 12.1 of this chapter or
the legislative body of a county or municipality that adopts an
ordinance designating a district under section 10.5 of this chapter
may petition for permission to modify the boundaries of the district.
The petition must be submitted to the budget committee for review
and recommendation to the budget agency.
(b) When considering a petition submitted under subsection (a),
the budget committee and the budget agency must make the
following findings:
(1) The area to be added to the district, if any, meets the
conditions necessary for designation as a district under section
10.5, 12, or 12.1 of this chapter.
(2) The proposed modification of the district will benefit the
people of Indiana by protecting or increasing state and local tax
bases and tax revenues for at least the duration of the district.
(c) Upon approving a petition submitted under subsection (a), the
budget agency shall certify the district's modified boundaries to the
department of state revenue.
As added by P.L.81-2004, SEC.36 and P.L.90-2004, SEC.9.
IC 36-7-13-13
Designation of district; information to department of state revenue;
determination of gross retail base period amount and income tax
base period amount
Sec. 13. (a) If an advisory commission on industrial development
designates a district under section 12 or 12.1 of this chapter or if the
legislative body of a county or municipality adopts an ordinance
designating a district under section 10.5 of this chapter, the advisory
commission, or the legislative body in the case of a district
designated under section 10.5 of this chapter, shall send a certified
copy of the resolution or ordinance designating the district to the
department of state revenue by certified mail and shall include with
the resolution a complete list of the following:
(1) Employers in the district.
(2) Street names and the range of street numbers of each street
in the district.
(3) Federal tax identification number of each business in the
district.
(4) The street address of each employer.
(5) Name, telephone number, and electronic mail address (if
available) of a contact person for each employer.
(b) The advisory commission, or the legislative body in the case
of a district designated under section 10.5 of this chapter, shall update
the list:
(1) before July 1 of each year; or
(2) within fifteen (15) days after the date that the budget agency
approves a petition to modify the boundaries of the district
under section 12.5 of this chapter.
(c) Not later than sixty (60) days after receiving a copy of the
resolution or ordinance designating a district, the department of state
revenue shall determine the gross retail base period amount and the
income tax base period amount.
(d) Not later than sixty (60) days after receiving a certification of
a district's modified boundaries under section 12.5(c) of this chapter,
the department shall recalculate the gross retail base period amount
and the income tax base period amount for a district modified under
section 12.5 of this chapter.
As added by P.L.125-1998, SEC.17. Amended by P.L.174-2001,
SEC.9; P.L.224-2003, SEC.240; P.L.81-2004, SEC.37 and
P.L.90-2004, SEC.10; P.L.199-2005, SEC.34.
IC 36-7-13-14
Tax incremental amount calculations; district business duties
Sec. 14. (a) Before the first business day in October of each year,
the department shall calculate the income tax incremental amount and
the gross retail incremental amount for the preceding state fiscal year
for each district designated under this chapter.
(b) Businesses operating in the district shall report annually, in the
manner and in the form prescribed by the department, information
that the department determines necessary to calculate incremental
gross retail, use, and income taxes. A taxpayer operating in the
district that files a consolidated tax return with the department also
shall file annually an informational return with the department for
each business location of the taxpayer within the district. If a
taxpayer fails to report the information required by this section or file
an informational return required by this section, the department shall
use the best information available in calculating the incremental gross
retail, use, and income taxes.
(c) Not later than sixty (60) days after receiving a certification of
a district's modified boundaries under section 12.5(c) of this chapter,
the department shall recalculate the income tax incremental amount
and the gross retail incremental amount for the preceding state fiscal
year for a district modified under section 12.5 of this chapter.
As added by P.L.125-1998, SEC.18. Amended by P.L.81-2004,
SEC.38 and P.L.90-2004, SEC.11; P.L.199-2005, SEC.35;
P.L.113-2010, SEC.132; P.L.172-2011, SEC.145; P.L.261-2013,
SEC.42.
IC 36-7-13-15
Incremental tax financing funds
Sec. 15. (a) If an advisory commission on industrial development
designates a district under this chapter or the legislative body of a
county or municipality adopts an ordinance designating a district
under section 10.5 of this chapter, the treasurer of state shall establish
an incremental tax financing fund for the district. The fund shall be
administered by the treasurer of state. Money in the fund does not
revert to the state general fund at the end of a state fiscal year.
(b) Subject to subsection (c), the following amounts shall be
deposited during each state fiscal year in the incremental tax
financing fund established for the district under subsection (a):
(1) The aggregate amount of state gross retail and use taxes that
are remitted under IC 6-2.5 by businesses operating in the
district, until the amount of state gross retail and use taxes
deposited equals the gross retail incremental amount for the
district.
(2) The aggregate amount of state and local income taxes paid
by employees employed in the district with respect to wages
earned for work in the district, until the amount of state and
local income taxes deposited equals the income tax incremental
amount.
(c) Except as provided in subsection (e), the aggregate amount of
revenues that is:
(1) attributable to:
(A) the state gross retail and use taxes established under
IC 6-2.5; and
(B) the adjusted gross income tax established under IC 6-3-1
through IC 6-3-7; and
(2) deposited during any state fiscal year in each incremental tax
financing fund established for a district;
may not exceed one million dollars ($1,000,000) per district
designated under section 10.5 or 12 of this chapter and seven hundred
fifty thousand dollars ($750,000) per district for a district designated
under section 10.1 or 12.1 of this chapter.
(d) On or before the twentieth day of each month, all amounts held
in the incremental tax financing fund established for a district shall
be distributed to the district's advisory commission on industrial
development for deposit in the industrial development fund of the
unit that requested designation of the district.
(e) The aggregate amount of revenues that is:
(1) attributable to:
(A) the state gross retail and use taxes established under
IC 6-2.5; and
(B) the adjusted gross income tax established under IC 6-3-1
through IC 6-3-7; and
(2) deposited during any state fiscal year in the incremental tax
financing funds established for the districts located in Delaware
County;
may not exceed two million dollars ($2,000,000).
As added by P.L.125-1998, SEC.19. Amended by P.L.174-2001,
SEC.10; P.L.192-2002(ss), SEC.175; P.L.224-2003, SEC.241;
P.L.113-2010, SEC.133; P.L.172-2011, SEC.146.
IC 36-7-13-16
Issuance of bonds or other obligations
Sec. 16. (a) A unit may issue bonds or other obligations to finance
the costs of addressing the development obstacles described in
section 12(b)(3), 12(c), 12(d)(3), 12(e)(2), or 12.1(a) of this chapter
in the district.
(b) The district bonds are special obligations of indebtedness of
the district. The district bonds issued under this section, and interest
on the district bonds, are payable solely out of amounts deposited in
the industrial development fund under this chapter.
As added by P.L.125-1998, SEC.20. Amended by P.L.138-1999,
SEC.6; P.L.174-2001, SEC.11; P.L.224-2003, SEC.242.
IC 36-7-13-17
Pledge of money in industrial development fund
Sec. 17. Money in the industrial development fund may be
pledged by an advisory commission for the following purposes:
(1) To pay debt service on bonds or other obligations issued
under this chapter.
(2) To establish and maintain a debt service reserve established
by the advisory commission.
As added by P.L.125-1998, SEC.21. Amended by P.L.1-1999,
SEC.82.
IC 36-7-13-18
Goals or benchmarks for property development or redevelopment
Sec. 18. (a) As used in this section, "developer" means a person
that:
(1) proposes to enter into, or has entered into, a financing
agreement with a unit for the development or redevelopment of
a facility located in a district; and
(2) has entered into a separate agreement with some other
person for the use or operation of the financed facility.
(b) A unit may establish goals or benchmarks concerning the
development or redevelopment of property by a developer. The unit
may provide that a developer that meets or exceeds the goals or
benchmarks shall be paid a specified fee from the industrial
development fund.
As added by P.L.125-1998, SEC.22.
IC 36-7-13-19
Termination of district
Sec. 19. When the advisory commission, or the legislative body
of a county or municipality that adopts an ordinance designating a
district under section 10.5 of this chapter, determines that the
purposes for which a district was established have been accomplished
and that all bonds or other obligations issued under this chapter and
all interest on those bonds or obligations have been fully paid, the
advisory commission or the legislative body shall adopt a resolution
terminating the district. If an advisory commission or a legislative
body adopts a resolution under this section, the advisory commission
or the legislative body shall send a certified copy of the resolution by
certified mail to the department.
As added by P.L.125-1998, SEC.23. Amended by P.L.174-2001,
SEC.12.
IC 36-7-13-20
Covenant not to adversely affect owners of bonds or obligations
Sec. 20. The general assembly covenants that this chapter will not
be repealed or amended in a manner that will adversely affect the
owner of bonds or other obligations issued under this chapter.
As added by P.L.125-1998, SEC.24.
IC 36-7-13-21
Written agreements for joint economic development projects
Sec. 21. (a) Two (2) or more:
(1) advisory commissions; or
(2) legislative bodies;
or any combination of advisory commissions and legislative bodies
may enter into a written agreement under this section to jointly
undertake economic development projects.
(b) A party to an agreement under this section may do one (1) or
more of the following:
(1) Except as provided in subsection (c), grant one (1) or more
of its powers to another party to the agreement.
(2) Exercise any power granted to it by a party to the agreement.
(3) Pledge any of its revenues to the bonds or lease rental
obligations of another party to the agreement under IC 5-1-14-4.
(c) A party to an agreement under this section may not grant
another party to the agreement the power to tax or to establish a
district under this chapter.
(d) An action to challenge the validity of an agreement under this
section must be brought not more than thirty (30) days after the
agreement has been approved by all the parties to the agreement.
After that period has passed, the agreement is not contestable for any
cause.
As added by P.L.203-2005, SEC.9.
IC 36-7-13-22
Terms of written agreement for joint economic development
project
Sec. 22. An agreement described in section 21 of this chapter must
provide for the following:
(1) The duration of the agreement.
(2) The purpose of the agreement.
(3) The manner of financing, staffing, and supplying the joint
undertaking and of establishing and maintaining a budget for the
joint undertaking.
(4) The methods that may be employed in accomplishing the
partial or complete termination of the agreement and for
disposing of property upon partial or complete termination of
the agreement.
(5) The manner of acquiring, holding, and disposing of real and
personal property used in the joint undertaking.
(6) Any other appropriate matters.
As added by P.L.203-2005, SEC.10.
IC 36-7-13-23
Repealed
(Repealed by P.L.172-2011, SEC.162.)
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