Bill Text: IN HB1077 | 2010 | Regular Session | Amended
Bill Title: Sales tax increment finance.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Engrossed - Dead) 2010-02-01 - First reading: referred to Committee on Appropriations [HB1077 Detail]
Download: Indiana-2010-HB1077-Amended.html
Citations Affected: IC 36-7.
Synopsis: Sales tax increment finance. Authorizes an economic
development project district (district) in Warrick County. Provides that
the authority for Warrick County expires if the state board of finance
(board) fails to approve a district before January 1, 2015. Requires a
resolution establishing a district in Warrick County to be ratified by the
county fiscal body and board of county commissioners Provides that if
a district is approved by the board, the district must be approved by
ordinance by the county fiscal body. Provides that a district designated
for Warrick County expires if bonds are not issued before January 1,
2015, to finance a local public improvement project in the district.
Increases the maximum term of bonds and leases for a district from 20
to 25 years. Specifies the permitted uses of the sales tax increment that
may be captured within the Warrick County district. Exempts a district
in Warrick County from a statute that: (1) requires tax increment
financing to be maximized in a community before the board may
approve a proposed district; and (2) prohibits certain property tax
abatements in districts. Prohibits the deposit of state gross and retail
use taxes in the sales tax increment financing fund with respect to a
particular district after December 31 of the calendar year in which the
board determines that no obligations to finance a local public
improvement in the district remain outstanding.
Effective: July 1, 2010.
January 5, 2010, read first time and referred to Committee on Ways and Means.
January 7, 2010, reported _ Do Pass.
January 11, 2010, read second time, amended, ordered engrossed.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
(1) A city having a population of more than seventy-five thousand (75,000) but less than ninety thousand (90,000).
(2) A city having a population of more than one hundred five thousand (105,000) but less than one hundred twenty thousand (120,000).
(3) A city having a population of more than one hundred fifty thousand (150,000) but less than five hundred thousand (500,000).
(4) A city having a population of more than one hundred twenty thousand (120,000) but less than one hundred fifty thousand (150,000).
(5) Warrick County.
1, 2010]: Sec. 1.5. Notwithstanding any other provision of this
chapter, the following apply to a county described in section 1(5)
of this chapter:
(1) The authority to establish a district in the county expires
on January 1, 2015, if the board fails to approve a resolution
designating a district in the county before January 1, 2015.
(2) A district designated in the county expires on January 1,
2015, if the commission fails to issue bonds to finance a local
public improvement project in the district before January 1,
2015.
(b) Present economic conditions in such areas are beyond remedy and control by existing regulatory processes because of the substantial public financial commitments necessary to encourage significant increases in economic activities in such areas.
(c) Economic development of certain reclaimed coal land near the Blue Grass Fish and Wildlife Area and Interstate Highway 164 is vital for a county described in section 1(5) of this chapter.
(1) attract new businesses and encourage existing business to remain or expand;
(2) increase temporary and permanent employment opportunities and private sector investment;
(3) protect and increase state and local tax bases; and
(4) encourage overall economic growth in Indiana.
(1) this chapter;
(2) IC 36-7-14;
(3) IC 36-7-14.5; or
(4) IC 36-7-25.
(1) Maps and plats showing the boundaries of the proposed district.
(2) A complete list of street names and the range of street numbers of each street situated in the proposed district.
(3) A plan for the redevelopment and economic development of the proposed district. The plan must describe the local public improvements necessary or appropriate for the redevelopment or economic development.
(b) For a city described in section 1(2) or 1(3) of this chapter, the proposed district must contain a commercial retail facility with at least five hundred thousand (500,000) square feet, and any distributions from the fund must be used in the area described in subsection (a) or in areas that directly benefit the area described in subsection (a).
(c) For a city described in section 1(4) of this chapter, the proposed district may not contain any territory outside the boundaries of a redevelopment project area established within the central business district of the city before 1985.
(d) For a county described in section 1(5) of this chapter, the proposed district must:
(1) be located in whole or in part on reclaimed coal land near the Blue Grass Fish and Wildlife Area and Interstate Highway 164; and
(2) adjoin the northernmost boundary of the Blue Grass Fish and Wildlife Area.
shall deliver to the board:
(1) the data required under section 14 of this chapter;
(2) the information concerning the proposed redevelopment and
economic development of the proposed district; and
(3) the proposed utilization of the revenues to be received under
section 23 of this chapter.
This information may be modified from time to time after the initial
submission. The commission shall provide to the board any additional
information that the board may request from time to time.
(b) This subsection applies only to a county described in section
1(5) of this chapter. Upon adoption of a resolution designating a
district under section 15 of this chapter, the commission shall
submit the resolution to the county fiscal body and the county
executive for ratification and then shall submit the resolution to the
board for approval. In submitting the resolution to the board, the
commission shall deliver to the board:
(1) the data required under section 14 of this chapter;
(2) the information concerning the proposed redevelopment
and economic development of the proposed district; and
(3) the proposed use of the revenues to be received under
section 23 of this chapter.
This information may be modified periodically after the initial
submission. The commission shall provide to the board any
additional information that the board requests.
(b) (c) Upon adoption of a resolution designating a district under
section 15 of this chapter, and upon approval of the resolution by the
board under subsection (a), the commission shall publish (in
accordance with IC 5-3-1) notice of the adoption and purport purpose
of the resolution and of the hearing to be held. The notice must provide
a general description of the boundaries of the district and state that
information concerning the district can be inspected at the
commission's office. The notice must also contain a date when the
commission will hold a hearing to receive and hear remonstrances and
other testimony from persons interested in or affected by the
establishment of the district. All affected persons, including all persons
or entities owning property or doing business in the district, shall be
considered notified of the pendency of the hearing and of subsequent
acts, hearings, adjournments, and resolutions of the commission by the
notice given under this section.
(d) The approval of the board under subsection (b) is final and
conclusive.
FOLLOWS [EFFECTIVE JULY 1, 2010]: Sec. 20. (a) This subsection
does not apply to a county described in section 1(5) of this chapter.
The determination of the commission to create a district under this
chapter, after approval by the board, must be approved by ordinance of
the legislative body of the city.
(b) This subsection applies only to a county described in section
1(5) of this chapter. The determination of the commission to create
a district under this chapter, after approval by the board, must be
approved by ordinance of the fiscal body of the county.
(b) On January 15 of each year, the commission shall remit to the treasurer of state the money disbursed from the fund that is credited to the net increment account that exceeds the amount needed to pay debt service or lease rentals and to establish and maintain a debt service reserve under this chapter in the prior year and before May 31 of that year. Amounts remitted under this subsection shall be deposited by the auditor of state as other gross retail and use taxes are deposited.
(c) The commission in a city described in section 1(2) of this chapter may distribute money from the fund only for the following:
(1) Road, interchange, and right-of-way improvements.
(2) Acquisition costs of a commercial retail facility and for real property acquisition costs in furtherance of the road, interchange, and right-of-way improvements.
(3) Demolition of commercial property and any related expenses incurred before or after the demolition of the commercial property.
(4) For physical improvements or alterations of property that
enhance the commercial viability of the district.
(d) The commission in a city described in section 1(3) of this
chapter may distribute money from the fund only for the following
purposes:
(1) For road, interchange, and right-of-way improvements and for
real property acquisition costs in furtherance of the road,
interchange, and right-of-way improvements.
(2) For the demolition of commercial property and any related
expenses incurred before or after the demolition of the
commercial property.
(e) The commission in a city described in section 1(4) of this
chapter may distribute money from the fund only for the following
purposes:
(1) For:
(A) the acquisition, demolition, and renovation of property;
and
(B) site preparation and financing;
related to the development of housing in the district.
(2) For physical improvements or alterations of property that
enhance the commercial viability of the district.
(f) The commission in a county described in section 1(5) of this
chapter may distribute money from the fund for the following
district project costs associated with the development or
redevelopment of the district:
(1) The total cost of acquisition of all land, rights-of-way, and
other property to be acquired, developed, or redeveloped for
the project.
(2) Site preparation, including utilities and infrastructure.
(3) Costs associated with the construction or establishment of
a museum and education complex and a multisport athletic
complex that are owned or leased by:
(A) the county described in section 1(5) of this chapter;
(B) the commission;
(C) an authority (as defined in IC 36-7-14.5-2);
(D) a leasing body (as defined in IC 5-1-1-1); or
(E) one (1) or more entities that are exempt from income
taxation under Section 501(c)(3) of the Internal Revenue
Code.
(4) Road, interchange, and right-of-way improvements.
(5) Public parking facilities.
(6) All reasonable and necessary architectural, engineering,
legal, financing, accounting, advertising, bond discount, and
supervisory expenses related to the acquisition and
development or redevelopment of the property or the issuance
of bonds.
(7) For any bonds issued by an entity to which money from
the fund may be pledged under subsection (a), debt service,
lease payments, capitalized interest, or debt service reserve
for the bonds to the extent the commission determines that a
reserve is reasonably required.
(b) The board may not approve a resolution under section 16 of this chapter until the board has satisfied itself that the city in which the proposed district will be established has maximized the use of tax increment financing under IC 36-7-14 or IC 36-7-14.5 to finance public improvements within or serving the proposed district. The city may not grant property tax abatements to the taxpayers within the proposed district or a district, except that the board may approve a resolution under section 16 of this chapter in the proposed district or a district in which real property tax abatement not to exceed three (3) years has been granted.
(1) it is the location of:
(A) surface coal mining operations;
(B) strip mined land currently in the process of reclamation; and
(C) the Blue Grass Fish and Wildlife Area;
all of which are in close proximity to Interstate Highway 164; and
(2) the county has been presented with an opportunity to:
(A) improve the quality of life in the county;
(B) provide educational and recreational opportunities to residents of the county and the state; and
(C) promote tourism in the county and the state.
