2016 Indiana Code TITLE 36. LOCAL GOVERNMENT ARTICLE 7. PLANNING AND DEVELOPMENT CHAPTER 31.3. PROFESSIONAL SPORTS DEVELOPMENT AREA
Download as PDF
IC 36-7-31.3
Chapter 31.3. Professional Sports Development Area
IC 36-7-31.3-1
Applicability of chapter
Sec. 1. Except as provided in section 8(b) of this chapter, this
chapter applies only to a city or a county without a consolidated city
that has a professional sports franchise playing the majority of its
home games in a facility owned by the city, the county, a school
corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10,
or IC 36-10-11.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.123.
IC 36-7-31.3-2
"Budget agency"
Sec. 2. As used in this chapter, "budget agency" means the budget
agency established by IC 4-12-1.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-3
"Budget committee"
Sec. 3. As used in this chapter, "budget committee" has the
meaning set forth in IC 4-12-1-3.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-4 Version a
"Covered taxes"
Note: This version of section effective until 1-1-2017. See also
following version of this section, effective 1-1-2017.
Sec. 4. As used in this chapter, "covered taxes" means the part of
the following taxes attributable to the operation of a facility
designated as part of a tax area under section 8 of this chapter:
(1) The state gross retail tax imposed under IC 6-2.5-2-1 or use
tax imposed under IC 6-2.5-3-2.
(2) An adjusted gross income tax imposed under IC 6-3-2-1 on
an individual.
(3) A county option income tax imposed under IC 6-3.5.
(4) Except in a county having a population of more than three
hundred thousand (300,000) but less than four hundred
thousand (400,000), a food and beverage tax imposed under
IC 6-9.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.124.
IC 36-7-31.3-4 Version b
"Covered taxes"
Note: This version of section effective 1-1-2017. See also
Indiana Code 2016
preceding version of this section, effective until 1-1-2017.
Sec. 4. As used in this chapter, "covered taxes" means the part of
the following taxes attributable to the operation of a facility
designated as part of a tax area under section 8 of this chapter:
(1) The state gross retail tax imposed under IC 6-2.5-2-1 or use
tax imposed under IC 6-2.5-3-2.
(2) An adjusted gross income tax imposed under IC 6-3-2-1 on
an individual.
(3) The local income tax imposed under IC 6-3.6.
(4) Except in a county having a population of more than three
hundred thousand (300,000) but less than four hundred
thousand (400,000), a food and beverage tax imposed under
IC 6-9.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.124; P.L.197-2016, SEC.135.
IC 36-7-31.3-5
"Department"
Sec. 5. As used in this chapter, "department" refers to the
department of state revenue.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-5.5
"Designating body"
Sec. 5.5. As used in this chapter, "designating body" means a:
(1) city legislative body; or
(2) county legislative body;
that may establish a tax area under this chapter.
As added by P.L.178-2002, SEC.125.
IC 36-7-31.3-6
"Tax area"
Sec. 6. As used in this chapter, "tax area" means a geographic area
established as a professional sports and convention development area
under section 10 of this chapter.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-7
"Taxpayer"
Sec. 7. As used in this chapter, "taxpayer" means a person that is
liable for a covered tax.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-8 Version a
Designation of a facility as part of a professional sports and
convention development area; expansion of area
Note: This version of section effective until 1-1-2017. See also
following version of this section, effective 1-1-2017.
Indiana Code 2016
Sec. 8. (a) A designating body may designate as part of a
professional sports and convention development area any facility that
is:
(1) owned by the city, the county, a school corporation, or a
board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or
IC 36-10-11, and used by a professional sports franchise for
practice or competitive sporting events;
(2) owned by the city, the county, or a board under IC 36-9-13,
IC 36-10-8, IC 36-10-10, or IC 36-10-11, and used as one (1) of
the following:
(A) A facility used principally for convention or tourism
related events serving national or regional markets.
(B) An airport.
(C) A museum.
(D) A zoo.
(E) A facility used for public attractions of national
significance.
(F) A performing arts venue.
(G) A county courthouse registered on the National Register
of Historic Places; or
(3) a hotel.
Notwithstanding section 9 of this chapter or any other law, a
designating body may by resolution approve the expansion of a
professional sports and convention development area after June 30,
2009, to include a hotel designated by the designating body. A
resolution for such an expansion must be reviewed by the budget
committee and approved by the budget agency in the same manner
as a resolution establishing a professional sports and convention
development area is reviewed and approved. A facility may not
include a private golf course or related improvements. The tax area
may include only facilities described in this section and any parcel
of land on which a facility is located. An area may contain
noncontiguous tracts of land within the city, county, or school
corporation.
(b) Except for a tax area that is located in a city having a
population of:
(1) more than one hundred fifty thousand (150,000) but less
than five hundred thousand (500,000); or
(2) more than eighty thousand (80,000) but less than eighty
thousand four hundred (80,400);
a tax area must include at least one (1) facility described in
subsection (a)(1).
(c) A tax area may contain other facilities not owned by the
designating body if:
(1) the facility is owned by a city, the county, a school
corporation, or a board established under IC 36-9-13,
IC 36-10-8, IC 36-10-10, or IC 36-10-11; and
(2) an agreement exists between the designating body and the
Indiana Code 2016
owner of the facility specifying the distribution and uses of the
covered taxes to be allocated under this chapter.
(d) This subsection applies to all tax areas located in a county
having a population of more than three hundred thousand (300,000)
but less than four hundred thousand (400,000). The facilities located
at an Indiana University-Purdue University regional campus are
added to the tax area designated by the county. The maximum
amount of covered taxes that may be captured in all tax areas located
in the county is three million dollars ($3,000,000) per year,
regardless of the designating body that established the tax area. The
county option income taxes imposed under IC 6-3.5 that are captured
must be counted first toward this maximum.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.126; P.L.64-2004, SEC.35; P.L.1-2006, SEC.570;
P.L.176-2009, SEC.25; P.L.182-2009(ss), SEC.510; P.L.119-2012,
SEC.210.
IC 36-7-31.3-8 Version b
Designation of a facility as part of a professional sports and
convention development area; expansion of area
Note: This version of section effective 1-1-2017. See also
preceding version of this section, effective until 1-1-2017.
Sec. 8. (a) A designating body may designate as part of a
professional sports and convention development area any facility that
is:
(1) owned by the city, the county, a school corporation, or a
board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or
IC 36-10-11, and used by a professional sports franchise for
practice or competitive sporting events;
(2) owned by the city, the county, or a board under IC 36-9-13,
IC 36-10-8, IC 36-10-10, or IC 36-10-11, and used as one (1) of
the following:
(A) A facility used principally for convention or tourism
related events serving national or regional markets.
(B) An airport.
(C) A museum.
(D) A zoo.
(E) A facility used for public attractions of national
significance.
(F) A performing arts venue.
(G) A county courthouse registered on the National Register
of Historic Places; or
(3) a hotel.
Notwithstanding section 9 of this chapter or any other law, a
designating body may by resolution approve the expansion of a
professional sports and convention development area after June 30,
2009, to include a hotel designated by the designating body. A
resolution for such an expansion must be reviewed by the budget
Indiana Code 2016
committee and approved by the budget agency in the same manner
as a resolution establishing a professional sports and convention
development area is reviewed and approved. A facility may not
include a private golf course or related improvements. The tax area
may include only facilities described in this section and any parcel
of land on which a facility is located. An area may contain
noncontiguous tracts of land within the city, county, or school
corporation.
(b) Except for a tax area that is located in a city having a
population of:
(1) more than one hundred fifty thousand (150,000) but less
than five hundred thousand (500,000); or
(2) more than eighty thousand (80,000) but less than eighty
thousand four hundred (80,400);
a tax area must include at least one (1) facility described in
subsection (a)(1).
(c) A tax area may contain other facilities not owned by the
designating body if:
(1) the facility is owned by a city, the county, a school
corporation, or a board established under IC 36-9-13,
IC 36-10-8, IC 36-10-10, or IC 36-10-11; and
(2) an agreement exists between the designating body and the
owner of the facility specifying the distribution and uses of the
covered taxes to be allocated under this chapter.
(d) This subsection applies to all tax areas located in a county
having a population of more than three hundred thousand (300,000)
but less than four hundred thousand (400,000). The facilities located
at an Indiana University-Purdue University regional campus are
added to the tax area designated by the county. The maximum
amount of covered taxes that may be captured in all tax areas located
in the county is three million dollars ($3,000,000) per year,
regardless of the designating body that established the tax area. The
revenue from the local income tax imposed under IC 6-3.6 that is
captured must be counted first toward this maximum.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.126; P.L.64-2004, SEC.35; P.L.1-2006, SEC.570;
P.L.176-2009, SEC.25; P.L.182-2009(ss), SEC.510; P.L.119-2012,
SEC.210; P.L.197-2016, SEC.136.
IC 36-7-31.3-9
Establishment of area; time; findings; special taxing district
Sec. 9. (a) A tax area must be initially established by resolution:
(1) before January 1, 2013, in the case of:
(A) a second class city;
(B) the city of Marion; or
(C) the city of Westfield; or
(2) before July 1, 1999, if subdivision (1) does not apply;
according to the procedures set forth for the establishment of an
Indiana Code 2016
economic development area under IC 36-7-14. Only one (1) tax area
may be created in each county.
(b) In establishing the tax area, the designating body must make
the following findings instead of the findings required for the
establishment of economic development areas:
(1) Except for a tax area in a city having a population of:
(A) more than one hundred fifty thousand (150,000) but less
than five hundred thousand (500,000); or
(B) more than eighty thousand (80,000) but less than eighty
thousand four hundred (80,400);
there is a capital improvement that will be undertaken or has
been undertaken in the tax area for a facility that is used by a
professional sports franchise for practice or competitive
sporting events. A tax area to which this subdivision applies
may also include a capital improvement that will be undertaken
or has been undertaken in the tax area for a facility that is used
for any purpose specified in section 8(a)(2) of this chapter.
(2) For a tax area in a city having a population of more than one
hundred fifty thousand (150,000) but less than five hundred
thousand (500,000), there is a capital improvement that will be
undertaken or has been undertaken in the tax area for a facility
that is used for any purpose specified in section 8(a) of this
chapter.
(3) For a tax area in a city having a population of more than
eighty thousand (80,000) but less than eighty thousand four
hundred (80,400), there is a capital improvement that will be
undertaken or has been undertaken in the tax area for a facility
that is used for any purpose specified in section 8(a)(2) of this
chapter.
(4) The capital improvement that will be undertaken or that has
been undertaken in the tax area will benefit the public health
and welfare and will be of public utility and benefit.
(5) The capital improvement that will be undertaken or that has
been undertaken in the tax area will protect or increase state and
local tax bases and tax revenues.
(c) The tax area established under this chapter is a special taxing
district authorized by the general assembly to enable the designating
body to provide special benefits to taxpayers in the tax area by
promoting economic development that is of public use and benefit.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.174-2001,
SEC.13; P.L.178-2002, SEC.127; P.L.64-2004, SEC.36; P.L.2-2005,
SEC.130; P.L.214-2005, SEC.72; P.L.172-2011, SEC.157;
P.L.119-2012, SEC.211; P.L.100-2014, SEC.1.
IC 36-7-31.3-9.3
General assembly findings
Sec. 9.3. The general assembly finds that the city of Marion is
subject to special circumstances that justify special legislation to
Indiana Code 2016
allow the city of Marion to establish a tax area under section 9 of this
chapter, before January 1, 2005.
As added by P.L.220-2011, SEC.666.
IC 36-7-31.3-9.7
Modification of an area
Sec. 9.7. (a) Except as otherwise provided in this chapter, after a
tax area is initially established, a tax area may not be changed and
the terms governing the tax area may not be revised.
(b) Before May 15, 2005, a tax area established before January 1,
2005, may be changed or the terms governing the tax area revised in
the same manner as the establishment of the initial tax area.
(c) This subsection applies only to a tax area located in Allen
County. After April 30, 2014, and before January 1, 2015, a tax area
located in Allen County may be changed or the terms governing the
tax area revised in the same manner as the establishment of the initial
tax area.
As added by P.L.100-2014, SEC.2.
IC 36-7-31.3-10
Resolution; allocation of taxes
Sec. 10. (a) A tax area must be established by resolution. A
resolution establishing a tax area must provide for the allocation of
covered taxes attributable to a taxable event or covered taxes earned
in the tax area to the professional sports and convention development
area fund established for the city or county. The allocation provision
must apply to the entire tax area. The following apply to Allen
County:
(1) The fund required by this subsection is the coliseum
professional sports and convention development area fund. This
fund shall be administered by the Allen County Memorial
Coliseum board of trustees.
(2) The allocation each year must be as follows:
(A) The first two million six hundred thousand dollars
($2,600,000) shall be transferred to the county treasurer for
deposit in the coliseum professional sports and convention
development area fund.
(B) The remaining amount shall be transferred to the
treasurer of the joint county-city capital improvement board
in the county.
The resolution must provide the tax area terminates not later than
December 31, 2027. However, in the case of a tax area located in
Allen County, the resolution must provide that the tax area
terminates before the later of January 1, 2028, or if the designating
body takes final action on the financing for the facility or proposed
facility before January 1, 2015, a date agreed to jointly by the budget
agency and the designating body that established the tax area.
However, the date agreed to jointly may not be later than twenty-five
Indiana Code 2016
(25) years after the debt to finance the facility or proposed facility is
issued. The budget agency must approve the final financing for the
facility or proposed facility. Any bonds issued to finance the facility
or proposed facility must have a maturity of less than twenty-five
(25) years.
(b) In addition to subsection (a), all of the salary, wages, bonuses,
and other compensation that are:
(1) paid during a taxable year to a professional athlete for
professional athletic services;
(2) taxable in Indiana; and
(3) earned in the tax area;
shall be allocated to the tax area if the professional athlete is a
member of a team that plays the majority of the professional athletic
events that the team plays in Indiana in the tax area.
(c) For a tax area that is:
(1) not located in a county having a population of more than
three hundred thousand (300,000) but less than four hundred
thousand (400,000); and
(2) not located in a city having a population of more than one
hundred thousand (100,000) but less than one hundred ten
thousand (110,000);
the total amount of state revenue captured by the tax area may not
exceed five dollars ($5) per resident of the city or county per year for
twenty (20) consecutive years.
(d) For a tax area that is located in a city having a population of
more than one hundred thousand (100,000) but less than one hundred
ten thousand (110,000), the total amount of state revenue captured by
the tax area may not exceed six dollars and fifty cents ($6.50) per
resident of the city per year for twenty (20) consecutive years.
(e) The resolution establishing the tax area must designate the
facility or proposed facility and the facility site for which the tax area
is established.
(f) The department may adopt rules under IC 4-22-2 and
guidelines to govern the allocation of covered taxes to a tax area.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.176-2009,
SEC.26; P.L.182-2009(ss), SEC.511; P.L.119-2012, SEC.212;
P.L.137-2012, SEC.121; P.L.100-2014, SEC.3.
IC 36-7-31.3-11
Review of resolution by budget committee; notice requirements;
information to taxing units
Sec. 11. (a) Upon adoption of a resolution establishing a tax area
under section 10 of this chapter, the designating body shall submit
the resolution to the budget committee for review and
recommendation to the budget agency.
(b) Upon adoption of a resolution changing the boundaries of a
tax area under section 10 of this chapter, the commission shall:
(1) publish notice of the adoption and substance of the
Indiana Code 2016
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.
(c) Upon completion of the actions required by subsection (b), the
commission shall submit the resolution to the budget committee for
review and recommendation to the budget agency. The budget
committee shall meet not later than sixty (60) days after receipt of a
resolution and shall make a recommendation on the resolution to the
budget agency.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.128; P.L.199-2005, SEC.37.
IC 36-7-31.3-12
Approval of resolution by budget agency
Sec. 12. (a) The budget agency must approve the resolution before
covered taxes may be allocated under section 10 of this chapter.
(b) When considering a resolution, the budget committee and the
budget agency must make the following findings:
(1) The cost of the facility and facility site specified under the
resolution exceeds ten thousand dollars ($10,000).
(2) The capital improvement specified under the resolution is
economically sound and 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 tax area established
under this chapter.
(3) The political subdivisions affected by the capital
improvement specified under the resolution have committed
significant resources towards completion of the improvement.
(c) Revenues from the tax area may not be allocated until the
budget agency approves the resolution.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-13
Allocation provision adoption; notice; district business information
Sec. 13. (a) When the designating body adopts an allocation
provision, the county auditor shall notify the department by certified
mail of the adoption of the provision and shall include with the
notification a complete list of the following:
(1) Employers in the tax area.
Indiana Code 2016
(2) Street names and the range of street numbers of each street
in the tax area.
The county auditor shall update the list before July 1 of each year.
(b) Taxpayers 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 the salary,
wages, bonuses, and other compensation that are:
(1) paid during a taxable year to a professional athlete for
professional athletic services;
(2) taxable in Indiana; and
(3) earned in the district.
(c) 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.
(d) 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
amount of covered taxes attributable to a taxable event in a tax area
or covered taxes from income earned in a tax area.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.129; P.L.261-2013, SEC.46.
IC 36-7-31.3-14
Professional sports and convention development area fund
Sec. 14. If a tax area is established under section 10 of this
chapter, a state fund known as the professional sports and convention
development area fund is established for that tax area. The fund shall
be administered by the department. Money in the fund does not
revert to the state general fund at the end of a state fiscal year.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-15
Deposit of taxes in fund
Sec. 15. Covered taxes attributable to a taxing area under section
10 of this chapter shall be deposited in the professional sports and
convention development area fund.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-16
Distributions from fund
Sec. 16. On or before the twentieth day of each month, all
amounts held in the professional sports and convention development
area fund shall be distributed to the county treasurer.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-17
Notice of taxes to be distributed to county treasurer or party to
Indiana Code 2016
agreement under IC 36-7-31.3-8(c)
Sec. 17. The department shall notify the county auditor of the
amount of taxes to be distributed to the county treasurer. For tax
areas described in section 8(c) of this chapter, the department shall
notify the county auditor of the amount of taxes to be distributed to
each party to the agreement. The notice must specify the distribution
and uses of covered taxes to be allocated under this chapter.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.130.
IC 36-7-31.3-18
Warrants
Sec. 18. All distributions from the professional sports and
convention development area fund for the county shall be made by
warrants issued by the auditor of state to the treasurer of state
ordering those payments to the county treasurer.
As added by P.L.255-1997(ss), SEC.20.
IC 36-7-31.3-19
Use of funds
Sec. 19. The resolution establishing the tax area must designate
the use of the funds. The funds are to be used only for the following:
(1) Except in a tax area in a city having a population of:
(A) more than one hundred fifty thousand (150,000) but less
than five hundred thousand (500,000); or
(B) more than eighty thousand (80,000) but less than eighty
thousand four hundred (80,400);
a capital improvement that will construct or equip a facility
owned by the city, the county, a school corporation, or a board
under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and
used by a professional sports franchise for practice or
competitive sporting events. In a tax area to which this
subdivision applies, funds may also be used for a capital
improvement that will construct or equip a facility owned by the
city, the county, or a board under IC 36-9-13, IC 36-10-8,
IC 36-10-10, or IC 36-10-11 and used for any purpose specified
in section 8(a)(2) of this chapter.
(2) In a city having a population of more than one hundred fifty
thousand (150,000) but less than five hundred thousand
(500,000), a capital improvement that will construct or equip a
facility owned by the city, the county, a school corporation, or
a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or
IC 36-10-11 and used for any purpose specified in section 8(a)
of this chapter.
(3) In a city having a population of more than eighty thousand
(80,000) but less than eighty thousand four hundred (80,400),
a capital improvement that will construct or equip a facility
owned by the city, the county, or a board under IC 36-9-13,
Indiana Code 2016
IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used for any
purpose specified in section 8(a)(1) or 8(a)(2) of this chapter.
(4) The financing or refinancing of a capital improvement
described in subdivision (1), (2), or (3) or the payment of lease
payments for a capital improvement described in subdivision
(1), (2), or (3).
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.131; P.L.64-2004, SEC.37; P.L.119-2012, SEC.213.
IC 36-7-31.3-20
Repayments to fund
Sec. 20. The designating body shall repay to the professional
sports development area fund any amount that is distributed to the
designating body and used for:
(1) a purpose that is not described in this chapter; or
(2) a facility or facility site other than the facility and facility
site to which covered taxes are designated under the resolution
described in section 10 of this chapter.
The department shall distribute the covered taxes repaid to the
professional sports development area fund under this section
proportionately to the funds and the political subdivisions that would
have received the covered taxes if the covered taxes had not been
allocated to the tax area under this chapter.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002,
SEC.132.
IC 36-7-31.3-21
Expiration of chapter
Sec. 21. This chapter expires December 31, 2040.
As added by P.L.255-1997(ss), SEC.20. Amended by P.L.100-2014,
SEC.4.
Indiana Code 2016
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.
