Bill Text: IN HB1232 | 2012 | Regular Session | Introduced
Bill Title: Sales tax increment financing.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2012-01-09 - First reading: referred to Committee on Ways and Means [HB1232 Detail]
Download: Indiana-2012-HB1232-Introduced.html
Citations Affected: IC 36-7.
Synopsis: Sales tax increment financing. Provides that a
redevelopment commission outside Marion County may establish a
sales tax increment financing area (area) to capture 50% of the sales
and use taxes remitted by businesses that begin operating in the area
after the area is established. Provides that the body acting as a
redevelopment commission in Marion County may establish an area to
capture 50% of the sales and use taxes remitted by businesses that
begin operating in the area after the area is established. Provides that
the sales and use taxes in an area may be used to make beneficial
improvements that would not otherwise be made as a result of
regulatory processes or the ordinary operations of private enterprise.
Provides that an area must terminate not later than 30 years after a sales
tax increment is first distributed to the redevelopment commission that
established the area.
Effective: July 1, 2012.
January 9, 2012, read first time and referred to Committee on Ways and Means.
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 local
government.
(b) "Sales tax increment financing area" without qualification refers to both:
(1) a type 1 sales tax increment financing area; and
(2) a type 2 sales tax increment financing area.
(c) "Type 1 sales tax increment financing area" means an area designated under section 50 of this chapter that consists of all or part of one (1) or more of the following geographic areas within the redevelopment district:
(1) A circular area having a radius of one-fourth (1/4) mile centered on a highway interchange, at least one (1) highway of which is an interstate highway.
(2) An area extending outward from the perimeter of an airport for two thousand five hundred (2,500) feet.
(3) An area extending for five hundred (500) feet on each side of the center line of one (1) or more of the following systems:
(A) Recreational trails.
(B) Commuter rail lines.
(4) A circular area having a radius of one hundred (100) feet centered on a public or private bus stop.
(5) An area extending outward five hundred (500) feet from the boundaries of a historic district approved in an ordinance adopted under IC 36-7-11-7.
(6) An area extending outward five hundred (500) feet from the boundaries of a facility that is used primarily to provide family oriented sports, recreational, tourism, and entertainment opportunities, including a facility that:
(A) is used for practice or competitive sporting events; and
(B) serves regional or national markets.
(7) A parcel that includes any part of an area described in subdivisions (1) through (6).
(d) "Type 2 sales tax increment financing area" means an area designated under section 50 of this chapter that consists of one (1) or more possibly noncontiguous geographic areas within a redevelopment district, which do not include any part of a geographic area described in subsection (c)(1) through (c)(7).
(1) a type 1 sales tax increment financing area; or
(2) a type 2 sales tax increment financing area.
(b) Subject to subsection (d), a redevelopment commission may, by following the procedures set forth in sections 17, 51, and 52 of this chapter, modify a plan for or the boundaries of a sales tax increment financing area. A modification of the boundaries of a sales tax increment financing area under this subsection must preserve the type of the sales tax increment financing area.
(c) A final action taken by a redevelopment commission under section 17(d) of this chapter concerning a sales tax increment financing area is subject to judicial review in accordance with section 18 of this chapter.
(d) A sales tax increment financing area designated under this
section may not include a geographic area that is part of an area or
a district in which a state gross retail or use tax increment is
captured under this chapter or any other law.
(e) A redevelopment commission may approve a plan for and
designate a sales tax increment financing area in a resolution:
(1) adopted under section 15 of this chapter establishing a
redevelopment project area;
(2) containing an allocation provision described in section 39
of this chapter; or
(3) adopted under section 15 of this chapter designating an
economic development area under section 41 of this chapter.
(b) Whenever a redevelopment commission finds that:
(1) the public health and welfare would benefit from a plan of improvements to a proposed sales tax increment financing area; and
(2) there are significant obstacles to the development of the proposed sales tax increment financing area that cannot be corrected by regulatory processes or the ordinary operations of private enterprise without resort to this chapter;
the redevelopment commission shall have the data described in subsection (c) prepared for the proposed sales tax increment financing area.
(c) After making a finding under subsection (b), the redevelopment commission shall have the following prepared:
(1) Maps and plats showing:
(A) the boundaries of the proposed sales tax increment financing area, the location of the various parcels of property, streets, alleys, and other features affecting the acquisition, clearance, replatting, replanning, rezoning, or improvement of the area, indicating any parcels of property to be acquired for the project; and
(B) the parts of the proposed sales tax increment financing area that are to be devoted to public ways, levees, sewerage, parks, playgrounds, and other public purposes under the proposed plan of improvements.
(2) Lists of the owners of the various parcels of property proposed to be acquired.
(3) An estimate of the cost of acquisition and improvement.
(d) After preparation of the data required by subsection (c), the redevelopment commission shall adopt a resolution declaring that:
(1) the plan of improvements to the proposed sales tax increment financing area will be of public utility and benefit; and
(2) the proposed sales tax increment financing area is designated as a sales tax increment financing area for the purpose of making real property within the sales tax increment financing area more suitable for commercial, retail, or recreational use.
The resolution must state the general boundaries of the sales tax increment financing area and any interests in land within the boundaries of the sales tax increment financing area that the redevelopment commission proposes to acquire, if any.
(e) A resolution adopted under subsection (d) may describe the boundaries of the sales tax increment financing area by the boundaries' location in relation to public ways or streams, or otherwise. Property excepted from the acquisition may be described by street numbers or location.
(f) A redevelopment commission may not exercise the power of eminent domain to acquire property in a sales tax increment financing area.
rescind or modify that order.
(b) This subsection does not apply to the redevelopment
commission of an excluded city described in section 1(b) of this
chapter. The redevelopment commission may not proceed with the
plan of improvements for the sales tax increment financing area
until:
(1) the approving order of the plan commission is issued and
approved by the municipal legislative body or county
executive; and
(2) in the case of a type 2 sales tax increment financing area,
the type 2 sales tax increment financing area is reviewed by
the budget committee and approved by the budget agency
under subsection (d).
(c) A redevelopment commission in an excluded city that is
exempt from the requirements of subsections (a) and (b) shall
submit the resolution and supporting data to the municipal
legislative body of the excluded city. The municipal legislative body
may:
(1) determine if the resolution and the plan of improvements
conform to the plan of development for the unit; and
(2) approve or disapprove the resolution and proposed plan.
The redevelopment commission may not proceed with the plan of
improvements for a type 2 sales tax increment financing area until
the type 2 sales tax increment financing area is reviewed by the
budget committee and approved by the budget agency under
subsection (d).
(d) After approval under subsection (b) or (c), a proposal
designating a type 2 sales tax increment financing area must be
submitted to the budget committee for review and
recommendation to the budget agency. If the budget agency fails
to take action on a proposal designating a type 2 sales tax
increment financing area within one hundred twenty (120) days
after the proposal is submitted to the budget committee, the
designation of the type 2 sales tax increment financing area is
considered to be approved by the budget agency. The budget
agency must make the following findings before it may approve a
type 2 sales tax increment financing area:
(1) The area to be designated as a type 2 sales tax increment
financing area meets the conditions necessary for designation
as a type 2 sales tax increment financing area.
(2) The designation of the type 2 sales tax increment financing
area will benefit the people of Indiana by protecting or
increasing the state sales tax base and sales tax revenues for
at least the duration of the type 2 sales tax increment
financing area.
(1) The content and manner of exercise of these rights, powers, privileges, and immunities shall be determined by the purposes and nature of a sales tax increment financing area.
(2) Real property (or interests in real property) relative to which action is taken in a sales tax increment financing area is not required to meet the conditions described in IC 36-7-1-3.
(3) The special tax levied in accordance with section 27 of this chapter may not be used to finance a plan of improvements for a sales tax increment financing area.
(4) A redevelopment commission may issue bonds in accordance with section 25.1 of this chapter to defray expenses of carrying out activities under this chapter in sales tax increment financing areas, except that the term of a bond issued to finance a plan of improvements in a sales tax increment financing area may not exceed thirty (30) years. Principal and interest on bonds issued to finance a plan of improvements in a sales tax increment financing area must be paid from the gross retail incremental amount (as defined in section 55(a) of this chapter) for the sales tax increment financing area. Savings computed under IC 5-1-5-2 from bonds issued under this subdivision may not be used for a purpose described in IC 5-1-5-18(b)(2). Surplus proceeds or investment earnings from bonds issued under this subdivision may not be used for a purpose described in IC 5-1-13-2(c)(2).
(5) A redevelopment commission may enter into leases in accordance with section 25.2 of this chapter to defray expenses of carrying out activities under this chapter in sales tax increment financing areas, except that the term of a lease entered into to finance a plan of improvements in a sales tax increment financing area may not exceed thirty (30) years. Lease rentals on leases entered into to finance a plan of
improvement in a sales tax increment financing area must be
paid from the gross retail incremental amount (as defined in
section 55(a) of this chapter) for the sales tax increment
financing area.
(b) The content and manner of discharge of duties set forth in
section 11 of this chapter shall be determined by the purposes and
nature of a sales tax increment financing area.
(1) deposits of gross retail and use tax revenue under section 56 of this chapter; and
(2) transfers of any available and unappropriated money of the unit into the fund by the unit's legislative body.
Money in a fund does not revert to the unit's general fund at the end of the unit's fiscal year.
(b) After a redevelopment commission designates a sales tax increment financing area or modifies the boundaries of a sales tax increment financing area under section 50 of this chapter and, in the case of a type 2 sales tax increment financing area, the type 2 sales tax increment financing area is reviewed by the budget committee and approved by the budget agency under section 52 of this chapter, the redevelopment commission shall send a certified copy of the corresponding resolution to the department of state revenue by certified mail and shall include with the resolution a complete list of the following:
(1) Businesses operating in the sales tax increment financing area.
(2) The date on which each business began operating in the sales tax increment financing area.
(3) Street names and the range of street numbers of each street in the sales tax increment financing area.
(4) The federal tax identification number of each business in
the sales tax increment financing area.
(5) The street address of each business in the sales tax
increment financing area.
(6) The name, telephone number, and electronic mail address
(if available) of a contact person for each business in the sales
tax increment financing area.
(c) The redevelopment commission shall update a list compiled
under subsection (b):
(1) before July 1 of each year; and
(2) not later than fifteen (15) days after the date that the
redevelopment commission adopts a resolution to modify the
boundaries of the sales tax financing area under section 51 of
this chapter.
(1) the aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5 during the state fiscal year by businesses that began operating in the sales tax increment financing area after the start date of the sales tax increment financing area; multiplied by
(2) fifty percent (50%).
(b) As used in this section, "start date" means the date on which:
(1) in the case of a type 1 sales tax increment financing area, the proposed plan of the type 1 sales tax increment financing area is approved under section 52(b) or 52(c) of this chapter, as applicable; or
(2) in the case of a type 2 sales tax increment financing area, the budget agency approves the type 2 sales tax increment financing area under section 52(d) of this chapter.
If the boundaries of a sales tax increment financing area are modified, the sales tax increment financing area retains its original start date.
(c) Before the first business day in October of each year, the department of state revenue shall calculate the gross retail incremental amount for the preceding state fiscal year for each
sales tax increment financing area designated under this chapter.
(d) A business operating in the sales tax increment financing
area shall report, in the manner prescribed by the department of
state revenue, information that the department of state revenue
determines necessary to calculate incremental gross retail and use
taxes.
(e) Not later than sixty (60) days after receiving a certification
of a sales tax increment financing area's modified boundaries
under section 50 of this chapter, the department of state revenue
shall recalculate the gross retail incremental amount for the
preceding state fiscal year for a sales tax increment financing area
modified under section 50 of this chapter.
(b) Fifty percent (50%) of the aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5 by businesses that begin operating in the sales tax increment financing area after the start date (as defined in section 55(b) of this chapter) shall be deposited during each state fiscal year in the incremental tax financing fund established for the sales tax increment financing area under subsection (a) until the amount of state gross retail and use taxes deposited equals the gross retail incremental amount (as defined in section 55(a) of this chapter) for the sales tax increment financing area.
(c) On or before the twentieth day of each month, all amounts held in the incremental tax financing fund established for a sales tax increment financing area shall be distributed to the redevelopment commission administering the sales tax increment financing area for deposit in the sales tax increment financing fund established for the sales tax increment financing area under section 54(a) of this chapter.
1, 2012]: Sec. 57. (a) A redevelopment commission shall terminate
a sales tax increment financing area under this chapter by
resolution at the earliest occurrence of the following:
(1) The date thirty (30) years after the date on which a
resolution designating the sales tax increment financing area
was adopted under section 51 of this chapter.
(2) The earliest date on which:
(A) the plan of improvements for the sales tax increment
financing area is completed or abandoned;
(B) there are no remaining outstanding bonds or leases for
which payments from the gross retail incremental amount
(as defined in section 55(a) of this chapter) were pledged;
and
(C) all other creditors and vendors that furnished money,
goods, or services in connection with the plan of
improvements, including their successors or assigns, are
paid in full.
(3) The date that the plan of improvements for the sales tax
increment financing area is completed or abandoned.
(b) A redevelopment commission that adopts a resolution under
subsection (a) shall send a certified copy of the resolution by
certified mail to:
(1) the department of state revenue; and
(2) the treasurer of state.
(c) Any money remaining in the sales tax increment financing
fund (established under section 56(a) of this chapter) of a
redevelopment commission for a sales tax increment financing area
on the date a resolution under subsection (a) is adopted shall be
sent to the treasurer of state for distribution in accordance with
IC 6-2.5-10-1.
(d) Subject to the provisions of this section, a redevelopment
commission shall designate the duration of a sales tax increment
financing area.
(b) "Sales tax increment financing area" without qualification refers to both:
(1) a type 1 sales tax increment financing area; and
(2) a type 2 sales tax increment financing area.
(c) "Type 1 sales tax increment financing area" means an area designated under section 60 of this chapter that consists of all or part of one (1) or more of the following geographic areas within the redevelopment district:
(1) A circular area having a radius of one-fourth (1/4) mile centered on a highway interchange, at least one (1) highway of which is an interstate highway.
(2) An area extending outward from the perimeter of an airport for two thousand five hundred (2,500) feet.
(3) An area extending for five hundred (500) feet on each side of the center line of one (1) or more of the following systems:
(A) Recreational trails.
(B) Commuter rail lines.
(4) A circular area having a radius of one hundred (100) feet centered on a public or private bus stop.
(5) A parcel that includes any part of an area described in subdivisions (1) through (4).
(d) "Type 2 sales tax increment financing area" means an area designated under section 60 of this chapter that consists of one (1) or more possibly noncontiguous geographic areas within a redevelopment district, which do not include any part of a geographic area described in subsection (c)(1) through (c)(5).
(1) a type 1 sales tax increment financing area; or
(2) a type 2 sales tax increment financing area.
(b) Subject to subsection (d), the commission may, by following the procedures set forth in sections 10, 61, and 62 of this chapter, modify a plan for or the boundaries of a sales tax increment financing area. A modification of the boundaries of a sales tax increment financing area under this subsection must preserve the type of the sales tax increment financing area.
(c) A final action taken by the commission under section 10(d) of this chapter concerning a sales tax increment financing area is subject to judicial review in accordance with section 11 of this chapter.
(d) A sales tax increment financing area designated under this section may not include a geographic area that is part of an area or a district in which a state gross retail or use tax increment is captured under this chapter or any other law.
(b) Whenever the commission finds that:
(1) the public health and welfare would benefit from a plan of improvements to a proposed sales tax increment financing area; and
(2) there are significant obstacles to the development of the proposed sales tax increment financing area that cannot be corrected by regulatory processes or the ordinary operations of private enterprise without resort to this chapter;
the commission shall have the data described in subsection (c) prepared for the proposed sales tax increment financing area.
(c) After making a finding under subsection (b), the commission shall have the following prepared:
(1) Maps and plats showing:
(A) the boundaries of the proposed sales tax increment financing area, the location of the various parcels of property, streets, alleys, and other features affecting the acquisition, clearance, replatting, replanning, rezoning, or improvement of the area, indicating any parcels of property to be acquired for the project; and
(B) the parts of the proposed sales tax increment financing area that are to be devoted to public ways, levees, sewerage, parks, playgrounds, and other public purposes under the proposed plan of improvements.
(2) Lists of the owners of the various parcels of property proposed to be acquired.
(3) An estimate of the cost of acquisition and improvement.
(d) After preparation of the data required by subsection (c), the commission shall adopt a resolution declaring that:
(1) the plan of improvements to the proposed sales tax increment financing area will be of public utility and benefit; and
(2) the proposed sales tax increment financing area is designated as a sales tax increment financing area for purposes of this chapter.
The resolution must state the general boundaries of the sales tax increment financing area and any interests in land within the boundaries of the sales tax increment financing area that the commission proposes to acquire, if any.
(e) For the purpose of adopting a resolution under subsection (d), the resolution may describe the boundaries of the sales tax increment financing area by the boundaries' location in relation to public ways or streams, or otherwise, as determined by the commission. Property excepted from the acquisition may be described by street numbers or location.
(f) The commission may not exercise the power of eminent domain to acquire property in a sales tax increment financing area.
(1) The content and manner of exercise of these rights, powers, privileges, and immunities are determined by the purposes and nature of a sales tax increment financing area.
(2) Real property (or interests in real property) relative to which action is taken in a sales tax increment financing area is not required to meet the conditions described in IC 36-7-1-3.
(3) The special tax levied in accordance with section 16 of this chapter may not be used to finance a plan of improvements for a sales tax increment financing area.
(4) Bonds may be issued in accordance with section 17 of this chapter to defray expenses of carrying out activities under
this chapter in sales tax increment financing areas, except that
the term of a bond issued to finance a plan of improvements
in a sales tax increment financing area may not exceed thirty
(30) years. Principal and interest on bonds issued to finance
a plan of improvements in a sales tax increment financing
area must be paid from the gross retail incremental amount
(as defined in section 65(a) of this chapter) for the sales tax
increment financing area. Savings computed under IC 5-1-5-2
from bonds issued under this subdivision may not be used for
a purpose described in IC 5-1-5-18(b)(2). Surplus proceeds or
investment earnings from bonds issued under this subdivision
may not be used for a purpose described in IC 5-1-13-2(c)(2).
(b) The content and manner of discharge of duties set forth in
section 6 of this chapter are determined by the purposes and
nature of a sales tax increment financing area.
(1) deposits of gross retail and use tax revenue under section 66 of this chapter; and
(2) transfers of any available and unappropriated money of the unit into the fund by the unit's legislative body.
Money in the fund does not revert to the unit's general fund at the end of the unit's fiscal year.
(b) After the commission designates a sales tax increment financing area or modifies the boundaries of a sales tax increment financing area under section 60 of this chapter, the commission shall send a certified copy of the corresponding resolution to the department of state revenue by certified mail and shall include with the resolution a complete list of the following:
(1) Businesses operating in the sales tax increment financing area.
(2) The date on which each business began operating in the sales tax increment financing area.
(3) Street names and the range of street numbers of each street in the sales tax increment financing area.
(4) The federal tax identification number of each business in the sales tax increment financing area.
(5) The street address of each business in the sales tax increment financing area.
(6) The name, telephone number, and electronic mail address (if available) of a contact person for each business in the sales tax increment financing area.
(c) The commission shall update a list compiled under subsection (b):
(1) before July 1 of each year; and
(2) not later than fifteen (15) days after the date that the commission adopts a resolution to modify the boundaries of the sales tax financing area under section 61 of this chapter.
(1) the aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5 during the state fiscal year by businesses that begin operating in the sales tax increment financing area after the start date of the sales tax increment financing area; multiplied by
(2) fifty percent (50%).
(b) As used in this section, "start date" means the date on which the commission adopts a resolution designating a sales tax increment financing area under section 61 of this chapter. A sales tax increment financing area whose boundaries are modified retains the original start date of the sales tax increment financing area.
(c) Before the first business day in October of each year, the department of state revenue shall calculate the gross retail incremental amount for the preceding state fiscal year for each sales tax increment financing area designated under this chapter.
(d) A business operating in the sales tax increment financing area shall report, in the manner prescribed by the department of state revenue, information that the department of state revenue determines necessary to calculate incremental gross retail and use taxes.
(e) Not later than sixty (60) days after receiving a certification of a sales tax increment financing area's modified boundaries
under section 60 of this chapter, the department of state revenue
shall recalculate the gross retail incremental amount for the
preceding state fiscal year for a sales tax increment financing area
modified under section 60 of this chapter.
(b) Fifty percent (50%) of the aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5 by businesses that begin operating in the sales tax increment financing area after the start date (as defined in section 65(b) of this chapter) shall be deposited during each state fiscal year in the incremental tax financing fund established for the sales tax increment financing area under subsection (a) until the amount of state gross retail and use taxes deposited equals the gross retail incremental amount (as defined in section 65(a) of this chapter) for the sales tax increment financing area.
(c) On or before the twentieth day of each month, all amounts held in the incremental tax financing fund established for a sales tax increment financing area shall be distributed to the commission for deposit in the sales tax increment financing fund established under section 64(a) of this chapter.
(1) The date thirty (30) years after the date on which a resolution designating the sales tax increment financing area was adopted under section 61 of this chapter.
(2) The earliest date on which:
(A) the plan of improvements for the sales tax increment financing area is completed or abandoned;
(B) there are no remaining outstanding bonds or leases for which payments from the gross retail incremental amount (as defined in section 65(a) of this chapter) were pledged; and
(C) all other creditors and vendors that furnished money, goods, or services in connection with the plan of improvements, including their successors or assigns, are paid in full.
(b) The commission that adopts a resolution under subsection (a) shall send a certified copy of the resolution by certified mail to:
(1) the department of state revenue; and
(2) the treasurer of state.
(c) Any money remaining in the sales tax increment financing fund of the commission established under section 64(a) of this chapter on the date a resolution under subsection (a) is adopted shall be sent to the treasurer of state for distribution in accordance with IC 6-2.5-10-1.
