CHAPTER 27. ECONOMIC DEVELOPMENT TAX AREA
IC 36-7-27
Chapter 27. Economic Development Tax Area
IC 36-7-27-1
Application of chapter
Sec. 1. This chapter applies to each county having a consolidated
city.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-2
"Base period amount" defined
Sec. 2. As used in this chapter, "base period amount" means the
aggregate amount of covered local income taxes paid by employees
employed in a tax area with respect to wages earned for work in the
tax area for the state fiscal year that precedes the date on which the
commission confirmed the resolution designating the tax area.
However, the base period amount with respect to a tax area covered
by section 11(c) of this chapter is zero (0).
As added by P.L.27-1992, SEC.28.
IC 36-7-27-3
"Commission" defined
Sec. 3. As used in this chapter, "commission" refers to the
metropolitan development commission acting as the redevelopment
commission of a consolidated city, subject to IC 36-3-4-23.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-4
"County taxpayer" defined
Sec. 4. (a) As used in this chapter, "county taxpayer" means an
individual who:
(1) resides in the county; or
(2) maintains the individual's principal place of business or
employment in the county and who does not reside in another
county in which the county option income tax, the county
adjusted income tax, or the county economic development
income tax is in effect.
(b) For purposes of this section, an individual shall be treated as
a resident of the county in which the individual:
(1) maintains a home, if the individual maintains only one (1)
home in Indiana;
(2) if subdivision (1) does not apply, is registered to vote;
(3) if subdivision (1) or (2) does not apply, registers the
individual's personal automobile; or
(4) if subdivision (1), (2), or (3) does not apply, spends the
majority of the individual's time spent in Indiana during the
taxable year in question.
As added by P.L.27-1992, SEC.28. Amended by P.L.42-1994,
SEC.12.
IC 36-7-27-5
"Covered local income taxes" defined
Sec. 5. As used in this chapter, "covered local income taxes"
means the following income taxes imposed on county taxpayers:
(1) County option income tax.
(2) County economic development income tax.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-6
"Department" defined
Sec. 6. As used in this chapter, "department" refers to the
department of state revenue.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-7
"Fund" defined
Sec. 7. As used in this chapter, "fund" refers to an incremental
income tax financing fund established under section 13 of this
chapter.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-8
"Incremental income tax" defined
Sec. 8. As used in this chapter, "incremental income tax" means
the remainder of:
(1) the aggregate amount of covered local income taxes paid by
employees employed in a tax area with respect to wages earned
for work in the tax area for a particular state fiscal year; minus
(2) the base period amount.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-9
"Qualified economic development tax project" defined
Sec. 9. As used in this chapter, "qualified economic development
tax project" means a project that is expected to create, retain, or
create and retain at least two thousand (2,000) jobs in the county.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-10
"Tax area" defined
Sec. 10. As used in this chapter, "tax area" means a geographic
area established by a commission under section 11 of this chapter in
which a qualified economic development tax project is located.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-11
Tax area; establishment; procedures; area containing armed forces
provider; findings; special taxing district
Sec. 11. (a) A commission may establish a tax area according to
the procedures set forth for the establishment of economic
development areas under IC 36-7-15.1. Notwithstanding any other
law, the tax area must be wholly within an airport development zone
established under IC 8-22-3.5 or within any other area in the county
in which there is located a provider of services, equipment, or both
to the United States armed forces.
(b) In establishing the tax area, the commission must make the
following findings in lieu of the findings required for the
establishment of economic development areas:
(1) That a project to be undertaken or that has been undertaken
in the area is a qualified economic development tax project.
(2) That the local public improvements (as defined in
IC 36-7-15.3-6) being constructed, acquired, or provided or to
be constructed, acquired, or provided in or serving the tax area
will benefit the public health and welfare and will be of public
utility and benefit.
(3) That the qualified economic development tax project being
constructed, acquired, or provided or to be constructed,
acquired, or provided in or serving the tax area will protect or
increase state and local tax bases or revenues.
(c) In addition to the findings required under subsection (b), the
commission may find that the qualified economic development
project involves a provider of services, equipment, or both to the
United States armed forces.
(d) The tax area established by the commission under this chapter
is a special taxing district authorized by the general assembly to
enable the county 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.27-1992, SEC.28.
IC 36-7-27-12
Allocation provision; adoption; notice; certification of base period
amount
Sec. 12. (a) A resolution adopted under section 11 of this chapter
must include a provision with respect to the allocation and
distribution of covered local income taxes for the purposes and in the
manner provided in this section. The allocation provision must apply
to the entire tax area.
(b) When an allocation provision is adopted under subsection (a),
the commission 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.
(2) Street names and the range of street numbers of each street
in the tax area.
The commission shall update the list before July 1 of each year.
(c) Not later than sixty (60) days after receipt from the
commission of the notification under subsection (b), the department
shall determine the base period amount and certify that amount to the
commission.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-13
Incremental income tax financing fund; establishment; administration;
estimate, certification, and collection of tax; disbursement and pledge
of fund; sufficiency to meet obligations
Sec. 13. (a) The treasurer of state shall establish an incremental
income tax financing fund for the county. 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) Before July 2 of each calendar year, the department, after
reviewing the recommendation of the budget agency, shall estimate
and certify to the county auditor the amount of incremental income
tax for the tax areas in the county that will be collected from that
county during the twelve (12) month period beginning July 1 of that
calendar year and ending June 30 of the following calendar year. The
amount certified shall be deposited into the fund and shall be
distributed on the dates specified in subsection (e) for the following
calendar year. The amount certified may be adjusted under
subsection (c) or (d).
(c) The department may certify to the county an amount that is
greater than the estimated twelve (12) month incremental income tax
collection if the department, after reviewing the recommendation of
the budget agency, determines that there will be a greater amount of
incremental income tax available for distribution from the fund.
(d) The department may certify an amount less than the estimated
twelve (12) month incremental income tax collection if the
department, after reviewing the recommendation of the budget
agency, determines that a part of those collections need to be
distributed during the current calendar year so that the county will
receive its full certified amount for the current calendar year.
(e) The auditor of state shall disburse the certified amount to the
commission in equal semiannual installments on May 31 and
November 30 of each year.
(f) Money in the fund may be pledged by the commission to the
following purposes:
(1) To pay debt service on the bonds issued under section 14 of
this chapter.
(2) To pay lease rentals under section 14 of this chapter.
(3) To establish and maintain a debt service reserve established
by the commission or by a lessor that provides local public
improvements to the commission.
(g) When money in the fund is sufficient when combined with
other sources of payment to pay all outstanding principal and interest
or lease rentals to the date on which the obligations can be redeemed
on obligations of the commission for a local public improvement in
the county, no additional incremental income tax for that project
shall be deposited in the fund and covered income taxes shall be
distributed as provided in IC 6-3.5-6 or IC 6-3.5-7, as appropriate.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-14
Bonds; issuance; purposes
Sec. 14. The commission may issue bonds payable in whole or in
part from money distributed from the fund to the commission to
finance local public improvements under IC 36-7-15.1-17 or make
lease rental payments in whole or in part from money distributed
from the fund to the commission for a local public improvement
under IC 36-7-15.1-17.1 and IC 36-7-15.1-17.2, including debt
service payments on or lease rental payments for local public
improvements under bonds issued or a lease entered into before
January 1, 1992. Local public improvements to be financed by the
commission may be in or serving the tax area.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-15
Tax covenant with bond owners
Sec. 15. The general assembly covenants that this chapter will not
be repealed or amended in a manner that will adversely affect the
owners of bonds issued under this chapter by the commission or a
lessor corporation providing local public improvements to the
commission.
As added by P.L.27-1992, SEC.28.
IC 36-7-27-16
Pledge to finance economic development tax project
Sec. 16. Notwithstanding any other law, a county that expects to
receive an economic benefit from a qualified economic development
tax project under this chapter, a county contiguous to such a county,
or a municipality that expects to receive an economic benefit from a
qualified economic development tax project under this chapter, may
pledge (as authorized in IC 5-1-14-4) any legally available money to
the payment of bonds or lease rentals to finance a qualified economic
development tax project. The pledge does not create a debt of the
pledging county or municipality under the Constitution of the State
of Indiana so long as the money is designated to make lease rental
payments to finance a qualified economic development tax project.
As added by P.L.28-1993, SEC.14.
IC 36-7-27-18
Information required to be disclosed by employers
Sec. 18. Upon request of the department, employers in the tax area
shall provide the department with:
(1) the names and addresses of all persons employed by the
employer in the tax area;
(2) information concerning the wages earned by the persons for
work in the tax area; and
(3) any other information the department requires to administer
this chapter.
As added by P.L.42-1994, SEC.13.