CHAPTER 31. PROFESSIONAL SPORTS DEVELOPMENT AREA IN COUNTY CONTAINING A CONSOLIDATED CITY
IC 36-7-31
Chapter 31. Professional Sports Development Area in County
Containing a Consolidated City
IC 36-7-31-1
Applicability of chapter
Sec. 1. This chapter applies only to a county having a
consolidated city.
As added by P.L.255-1997(ss), SEC.19.
IC 36-7-31-2
"Budget agency" defined
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.19.
IC 36-7-31-3
"Budget committee" defined
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.19.
IC 36-7-31-4
"Capital improvement board" defined
Sec. 4. As used in this chapter, "capital improvement board"
refers to the capital improvement board of managers established by
IC 36-10-9-3.
As added by P.L.255-1997(ss), SEC.19.
IC 36-7-31-5
"Commission" defined
Sec. 5. As used in this chapter, "commission" refers to the
metropolitan development commission acting as the redevelopment
commission of a consolidated city.
As added by P.L.255-1997(ss), SEC.19.
IC 36-7-31-6
"Covered taxes" defined
Sec. 6. As used in this chapter, "covered taxes" means the
following:
(1) With respect to the professional sports development area as
it existed on December 31, 2008:
(A) The state gross retail tax imposed under IC 6-2.5-2-1 or
use tax imposed under IC 6-2.5-3-2.
(B) An adjusted gross income tax imposed under IC 6-3-2-1
on an individual.
(C) A county option income tax imposed under IC 6-3.5-6.
(D) A food and beverage tax imposed under IC 6-9.
(2) With respect to an addition to the professional sports
development area after December 31, 2008:
(A) The state gross retail tax imposed under IC 6-2.5-2-1 or
use tax imposed under IC 6-2.5-3-2.
(B) An adjusted gross income tax imposed under IC 6-3-2-1
on an individual.
(C) A county option income tax imposed under IC 6-3.5-6.
As added by P.L.255-1997(ss), SEC.19. Amended by
P.L.182-2009(ss), SEC.408.
IC 36-7-31-7
"Department" defined
Sec. 7. As used in this chapter, "department" refers to the
department of state revenue.
As added by P.L.255-1997(ss), SEC.19.
IC 36-7-31-8
"Tax area" defined
Sec. 8. As used in this chapter, "tax area" means a geographic area
established by a commission as a professional sports development
area under section 14 of this chapter.
As added by P.L.255-1997(ss), SEC.19.
IC 36-7-31-9
"Taxpayer" defined
Sec. 9. 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.19.
IC 36-7-31-10
Establishment of area; facilities
Sec. 10. (a) A commission may establish as part of a professional
sports development area any facility or complex of facilities:
(1) that is used in the training of a team engaged in professional
sporting events;
(2) that is:
(A) financed in whole or in part by:
(i) notes or bonds issued by a political subdivision or
issued under IC 36-10-9 or IC 36-10-9.1; or
(ii) a lease or other agreement under IC 5-1-17; and
(B) used to hold a professional sporting event; or
(3) that consists of a hotel, motel, or a multibrand complex of
hotels and motels, with significant meeting space:
(A) located in an area in Indianapolis, Indiana, bounded on
the east by Illinois Street, on the south by Maryland Street,
and on the west and north by Washington Street, as those
streets were located on June 1, 2009;
(B) that provides:
(i) convenient accommodations for consideration to the
general public for periods of less than thirty (30) days,
especially for individuals attending professional sporting
events, conventions, or similar events in the capital
improvements that are owned, leased, or operated by the
capital improvement board; and
(ii) significant meeting and convention space that directly
enhances events held in the capital improvements that are
owned, leased, or operated by the capital improvement
board; and
(C) that enhances the convention opportunities for the
capital improvement board to hold events that:
(i) would not otherwise be possible; and
(ii) directly affect the success of both the facilities and
capital improvements that are owned, leased, or operated
by the capital improvement board.
The tax area may include a facility or complex of facilities described
in this section and any parcel of land on which the facility or
complex of facilities is located. An area may contain noncontiguous
tracts of land within the county.
(b) With respect to the site or future site of a facility or complex
of facilities described in subsection (a)(3), the general assembly finds
the following:
(1) That the facility or complex of facilities in the tax area
provides both convenient accommodations for professional
sporting events, conventions, or similar events and significant
meeting and convention space that directly enhance events held
in the capital improvements that are owned, leased, or operated
by the capital improvement board.
(2) That the facility or complex of facilities in the tax area and
the capital improvements that are owned, leased, or operated by
the capital improvement board are integrally related to
enhancing the convention opportunities that directly affect the
success of both the facilities and capital improvements.
(3) That the facility or complex of facilities in the tax area
provides the opportunity for the capital improvement board to
hold events that would not otherwise be possible.
(4) That the facility or complex of facilities in the tax area
protects or increases state and local tax bases and tax revenues.
As added by P.L.255-1997(ss), SEC.19. Amended by P.L.214-2005,
SEC.66; P.L.182-2009(ss), SEC.409.
IC 36-7-31-11
Establishment of area; time; findings; area changes; special taxing
district
Sec. 11. (a) A tax area must be initially established before July 1,
1999, according to the procedures set forth for the establishment of
an economic development area under IC 36-7-15.1. A tax area may
be changed (including to the exclusion or inclusion of a facility
described in this chapter) or the terms governing the tax area may be
revised in the same manner as the establishment of the initial tax
area. However, a tax area may be changed as follows:
(1) After May 14, 2005, a tax area may be changed to include
the site or future site of a facility that is or will be the subject of
a lease or other agreement entered into between the capital
improvement board and the Indiana stadium and convention
building authority or any state agency under IC 5-1-17-26.
(2) After June 30, 2009, a tax area may be changed to include
the site or future site of a facility or complex of facilities
described in section 10(a)(3) of this chapter.
(3) The terms governing a tax area may be revised only with
respect to a facility or complex of facilities described in
subdivision (1) or (2).
(b) In establishing or changing the tax area or revising the terms
governing the tax area, the commission must do the following:
(1) With respect to a tax area change described in subsection
(a)(1), the commission must make the following findings
instead of the findings required for the establishment of
economic development areas:
(A) That a project to be undertaken or that has been
undertaken in the tax area is for a facility at which a
professional sporting event or a convention or similar event
will be held.
(B) That the project to 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.
(C) That the project to be undertaken or that has been
undertaken in the tax area will protect or increase state and
local tax bases and tax revenues.
(2) With respect to a tax area change described in subsection
(a)(2), the commission must make the following findings
instead of the findings required for the establishment of an
economic development area:
(A) That the facility or complex of facilities in the tax area
provides both convenient accommodations for professional
sporting events, conventions, or similar events and
significant meeting and convention space that directly
enhance events held in the capital improvements that are
owned, leased, or operated by the capital improvement
board.
(B) That the facility or complex of facilities in the tax area
and the capital improvements that are owned, leased, or
operated by the capital improvement board are integrally
related to enhancing the convention opportunities that
directly affect the success of both the facilities and capital
improvements.
(C) That the facility or complex of facilities in the tax area
provides the opportunity for the capital improvement board
to hold events that would not otherwise be possible.
(D) That the facility or complex of facilities in the tax area
protects or increases state and local tax bases and tax
revenues.
(c) 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.255-1997(ss), SEC.19. Amended by P.L.214-2005,
SEC.67; P.L.182-2009(ss), SEC.410.
IC 36-7-31-12
Review of resolution by budget committee; notice requirements;
information to taxing units
Sec. 12. (a) Upon adoption of a resolution establishing a tax area
under section 14 of this chapter, 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.
(b) Upon adoption of a resolution changing the boundaries of a
tax area under section 14 of this chapter, the commission shall:
(1) publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1; and
(2) file the following information with each taxing unit in the
county in which 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.19. Amended by P.L.199-2005,
SEC.36.
IC 36-7-31-13
Approval of resolution by budget agency
Sec. 13. (a) The budget agency must approve the resolution before
covered taxes may be allocated under section 14 or 14.2 of this
chapter.
(b) When considering a resolution with respect to a tax area
change described in section 11(a)(1) of this chapter, 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 one hundred thousand dollars ($100,000).
(2) The project specified in 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 project specified
in the resolution have committed significant resources towards
completion of the improvement.
(c) When considering a resolution with respect to a tax area
change described in section 11(a)(2) of this chapter, the budget
committee and the budget agency must make the following findings:
(1) That the facility or complex of facilities described in section
10(a)(3) of this chapter will provide accommodations and
significant meeting and convention space that directly enhance
events and that are located in convenient proximity to capital
improvements that are owned, leased, or operated by the capital
improvement board.
(2) That the facility or complex of facilities in the tax area and
the capital improvements that are owned, leased, or operated by
the capital improvement board are integrally related to
enhancing the convention opportunities that directly affect the
success of both the facilities and capital improvements.
(3) That the facility or complex of facilities specified in the
resolution will benefit the people of Indiana by providing the
opportunity for the capital improvement board to hold events
that would not otherwise be possible.
(4) That the facility or complex of facilities specified in the
resolution will protect or increase state and local tax bases and
tax revenues.
(d) 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.19. Amended by
P.L.182-2009(ss), SEC.411.
IC 36-7-31-14
Resolution; allocation of taxes to professional sports development
area fund
Sec. 14. (a) This section does not apply to that part of the tax area
in which a facility or complex of facilities described in section
10(a)(3) of this chapter is located. A reference to "tax area" in this
section does not include the part of the tax area in which a facility or
complex of facilities described in section 10(a)(3) of this chapter is
located.
(b) 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 development area fund established
for the county. The allocation provision must apply to the part of the
tax area covered by this section. The resolution must provide that the
tax area terminates not later than December 31, 2027.
(c) 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.
(d) Except as provided by section 14.1 of this chapter, the total
amount of state revenue captured by the tax area may not exceed five
million dollars ($5,000,000) per year for twenty (20) consecutive
years.
(e) The resolution establishing the tax area must designate the
facility and the facility site for which the tax area is established and
covered taxes will be used.
(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.19. Amended by P.L.214-2005,
SEC.68; P.L.182-2009(ss), SEC.412.
IC 36-7-31-14.1
Marion County allocation of additional revenue to professional
sports development area fund
Sec. 14.1. (a) The budget director appointed under IC 4-12-1-3
may determine that, commencing July 1, 2007, there may be captured
in the tax area up to eleven million dollars ($11,000,000) per year in
addition to the up to five million dollars ($5,000,000) of state
revenue to be captured by the tax area under section 14 of this
chapter for the professional sports development area fund and in
addition to the state revenue to be captured by the part of the tax area
covered by section 14.2 of this chapter for the sports and convention
facilities operating fund, for up to thirty-four (34) consecutive years.
The budget director's determination must specify that the termination
date of the tax area for purposes of the collection of the additional
eleven million dollars ($11,000,000) per year for the professional
sports development area fund is extended to not later than:
(1) January 1, 2041; or
(2) January 1, 2010, if on that date there are no obligations
owed by the capital improvement board of managers to the
Indiana stadium and convention building authority or to any
state agency under IC 5-1-17-26.
Following the budget director's determination, and commencing July
1, 2007, the maximum total amount of revenue captured by the tax
area for years ending before January 1, 2041, is sixteen million
dollars ($16,000,000) per year for the professional sports
development area fund.
(b) The additional revenue captured pursuant to a determination
under subsection (a) shall be distributed to the capital improvement
board or its designee. So long as there are any current or future
obligations owed by the capital improvement board to the Indiana
stadium and convention building authority created by IC 5-1-17 or
any state agency under a lease or another agreement entered into
between the capital improvement board and the Indiana stadium and
convention building authority or any state agency under
IC 5-1-17-26, the capital improvement board or its designee shall
deposit the additional revenue received under this subsection in a
special fund, which may be used only for the payment of the
obligations described in this subsection.
(c) Notwithstanding the budget director's determination under
subsection (a), after January 1, 2010, the capture of the additional
eleven million dollars ($11,000,000) per year described in subsection
(a) terminates on January 1 of the year following the first year in
which no obligations of the capital improvement board described in
subsection (b) remain outstanding.
As added by P.L.214-2005, SEC.69. Amended by P.L.120-2006,
SEC.6; P.L.182-2009(ss), SEC.413.
IC 36-7-31-14.2
Marion County allocation of additional revenue to sports and
convention facilities operating fund
Sec. 14.2. (a) This section applies to the part of the tax area in
which a facility or complex of facilities described in section 10(a)(3)
of this chapter is located. A reference to "tax area addition" in this
section includes only the part of the tax area in which a facility or
complex of facilities described in section 10(a)(3) of this chapter is
located.
(b) A tax area change described in section 11(a)(2) of this chapter
must be established by resolution. A resolution changing the tax area
must provide for a request for the allocation of:
(1) covered taxes attributable to a taxable event in the tax area
addition; or
(2) covered taxes from income earned in the tax area addition;
to the sports and convention facilities operating fund established by
section 16(b) of this chapter. However, to the extent a covered tax
has been pledged before January 1, 2009, and allocated under
IC 36-10-9-11 to the capital improvement bond fund, that amount
shall not be allocated to the sports and convention facilities operating
fund.
(c) The allocation provision must apply only to the tax area
addition.
(d) The resolution changing the tax area must designate each
facility and each facility site for which the money to be distributed
from the sports and convention facilities operating fund will be used.
(e) The budget director shall make an annual determination of
whether at least one (1) of the following conditions is satisfied:
(1) The maximum additional tax rate for the innkeeper's tax
under IC 6-9-8 was adopted after June 30, 2009, and before
September 1, 2009, and was in effect on January 1 of the
determination year.
(2) As of January 1 of the determination year:
(A) at least four million dollars ($4,000,000) per year is
being raised from the innkeeper's tax rate increase that was
adopted under IC 6-9-8 after June 30, 2009, and before
September 1, 2009; and
(B) the treasurer of state has invested in obligations issued
by the capital improvement board under IC 5-13-10.5-18.
If the budget director determines that either of the conditions under
subdivision (1) or (2) is satisfied, covered taxes attributable to the
part of the tax area in which a facility or complex of facilities
described in section 10(a)(3) of this chapter is located shall then be
deposited in the sports and convention facilities operating fund
established by section 16(b) of this chapter. For 2009, the budget
director may use September 1, 2009, instead of January 1, 2009, to
make a determination of whether to make deposits in the sports and
convention facilities operating fund in 2009. However, the maximum
total amount of covered taxes that may be deposited in the sports and
convention facilities operating fund is eight million dollars
($8,000,000) during each year. To the extent a covered tax has been
pledged before January 1, 2009, and allocated under IC 36-10-9-11
to the capital improvement bond fund, that amount shall not be
allocated to or deposited in the sports and convention facilities
operating fund.
(f) The department may adopt rules under IC 4-22-2 and
guidelines to govern the allocation of covered taxes from the tax area
addition.
As added by P.L.182-2009(ss), SEC.414.
IC 36-7-31-15
Notice of adoption of allocation provision
Sec. 15. When the commission adopts an allocation provision, 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.
As added by P.L.255-1997(ss), SEC.19.
IC 36-7-31-16
Professional sports development area fund; sports and convention
facilities operating fund
Sec. 16. (a) A professional sports development area fund for the
county is established. 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.
(b) A sports and convention facilities operating fund for the
county is established. 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.19. Amended by
P.L.182-2009(ss), SEC.415.
IC 36-7-31-17
Deposit of taxes in professional sports development area fund
Sec. 17. Covered taxes attributable to a taxing area established
under section 14 of this chapter shall be deposited in the professional
sports development area fund established by section 16(a) of this
chapter for the county.
As added by P.L.255-1997(ss), SEC.19. Amended by
P.L.182-2009(ss), SEC.416.
IC 36-7-31-18
Distribution of taxes from funds
Sec. 18. On or before the twentieth day of each month, all
amounts held in the professional sports development area fund and
in the sports and convention facilities operating fund for the county
are appropriated for and shall be distributed to the capital
improvement board.
As added by P.L.255-1997(ss), SEC.19. Amended by
P.L.182-2009(ss), SEC.417.
IC 36-7-31-19
Notice of taxes to be distributed to capital improvements board
Sec. 19. The department shall notify the county auditor of the
amount of taxes to be distributed to the capital improvement board.
As added by P.L.255-1997(ss), SEC.19.
IC 36-7-31-20
Warrants
Sec. 20. All distributions from the professional sports
development area fund or the sports and convention facilities
operating 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 capital improvement board.
As added by P.L.255-1997(ss), SEC.19. Amended by
P.L.182-2009(ss), SEC.418.
IC 36-7-31-21
Uses of money from funds
Sec. 21. (a) Except as provided in section 14.1 of this chapter, the
capital improvement board may use money distributed from the
professional sports development area fund established by section
16(a) of this chapter only to construct and equip a capital
improvement that is used for a professional sporting event, including
the financing or refinancing of a capital improvement or the payment
of lease payments for a capital improvement.
(b) The capital improvement board or its designee shall deposit
the revenue received from the sports and convention facilities
operating fund established by section 16(b) of this chapter in a
special fund, which may be used only for paying usual and
customary operating expenses with respect to the capital
improvements that are owned, leased, or operated by the capital
improvement board. The special fund may not be used for the
payment of any current or future obligations owed by the capital
improvement board:
(1) to the Indiana stadium and convention building authority
created by IC 5-1-17 or any state agency under a lease or
another agreement entered into between the capital
improvement board and the Indiana stadium and convention
building authority or any state agency under IC 5-1-17-26; or
(2) for the construction or equipping of a capital improvement
that is used for a professional sporting event or convention,
including the financing or refinancing of a capital improvement
or the payment of lease payments for a capital improvement.
As added by P.L.255-1997(ss), SEC.19. Amended by P.L.214-2005,
SEC.70; P.L.182-2009(ss), SEC.419.
IC 36-7-31-22
Repayments to funds
Sec. 22. The capital improvement board shall repay to the
professional sports development area fund or the sports and
convention facilities operating fund any amount that is distributed to
the capital improvement board and used for:
(1) a purpose that is not described in section 21 of 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 14 or 14.2 of this chapter.
The department shall distribute the covered taxes repaid to the
professional sports development area fund or the sports and
convention facilities operating 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.19. Amended by
P.L.182-2009(ss), SEC.420.
IC 36-7-31-23
Expiration of chapter
Sec. 23. This chapter expires December 31, 2040.
As added by P.L.255-1997(ss), SEC.19. Amended by P.L.214-2005,
SEC.71.