Bill Text: IN HB1272 | 2011 | Regular Session | Introduced
Bill Title: Payments in lieu of taxes.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-01-12 - First reading: referred to Committee on Natural Resources [HB1272 Detail]
Download: Indiana-2011-HB1272-Introduced.html
Citations Affected: IC 6-1.1-46.
Synopsis: Payments in lieu of taxes. Requires the department of
natural resources (DNR), beginning in 2012, to make semiannual
payments in lieu of property taxes (PILOT) for qualified parcels.
Defines a "qualified parcel" as a parcel that: (1) consists of at least 100
acres; (2) was owned or leased by the DNR on March 1 of the
preceding year; (3) is used as a state park; and (4) is subject to an
exemption from property taxes. Provides that county units and
conservancy districts containing qualified parcels are entitled to receive
PILOTS. Provides that for purposes of calculating a PILOT, each acre
of the qualified parcel is considered to have an assessed value of
one-third of the statewide agricultural land base rate value. Annually
appropriates from the state general fund the amount necessary to pay
the required PILOTS.
Effective: July 1, 2011.
January 12, 2011, read first time and referred to Committee on Natural Resources.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
Chapter 46. Payments in Lieu of Property Taxes
Sec. 1. This chapter applies to property taxes first due and payable after December 31, 2011.
Sec. 2. As used in this chapter, "adjusted assessed value" means the assessed value of a qualified parcel determined by using the following formula:
STEP ONE: Determine the number of acres included in the qualified parcel.
STEP TWO: Determine the product of:
(A) the base rate in effect on March 1 of the year immediately preceding the year in which the PILOT is due; multiplied by
(B) the STEP ONE result.
STEP THREE: Determine the quotient of:
(A) the STEP TWO result; divided by
(B) three (3).
STEP FOUR: Round the STEP THREE result to the nearest dollar.
Sec. 3. As used in this chapter, "base rate" has the meaning set forth in IC 6-1.1-1-3.5.
Sec. 4. As used in this chapter, "department" refers to the department of natural resources.
Sec. 5. As used in this chapter, "PILOT" refers to a payment in lieu of taxes.
Sec. 6. As used in this chapter, "qualified parcel" means a parcel of land that:
(1) consists of at least one hundred (100) acres;
(2) was owned or leased by the department on March 1 of the previous year;
(3) is used as a state park; and
(4) is subject to an exemption from property taxes.
Sec. 7. The following civil taxing units are entitled to receive a PILOT from the department:
(1) A county in which a qualified parcel is located.
(2) A conservancy district in which a qualified parcel is located.
Sec. 8. (a) The total amount of each PILOT due to a county under this chapter in a particular year equals the quotient of:
(1) the amount of property taxes that would have been levied in that year by the county upon the qualified parcel as determined using the qualified parcel's adjusted assessed value; divided by
(2) two (2).
(b) The total amount of each PILOT due to a conservancy district under this chapter in a particular year equals the quotient of:
(1) the amount of property taxes that would have been levied in that year by the conservancy district upon the qualified parcel as determined using the qualified parcel's adjusted assessed value; divided by
(2) two (2).
Sec. 9. (a) The department shall pay PILOTS for each qualified parcel on May 1 and November 1 of 2012 and each year thereafter. The department shall transfer the amount of each PILOT to the county treasurer of the county in which the qualified parcel is located.
(b) The county treasurer shall:
(1) deposit the amount of the PILOT due to the county in the county's general fund; and
(2) transfer the amount of any PILOT due to a conservancy district to the fiscal officer of the conservancy district for deposit in the conservancy district's general fund.
Sec. 10. (a) This section applies to a county or conservancy district for which the tax rate necessary to calculate the amount of a PILOT under section 8 of this chapter has not been determined before a PILOT payment is due under section 9 of this chapter for a particular calendar year.
(b) The unit is entitled to a provisional PILOT equal to fifty percent (50%) of the annual PILOT paid to the unit with respect to the qualified parcel in the preceding calendar year.
(c) The department's payment of a provisional PILOT must be submitted to the county treasurer, who shall:
(1) deposit the provisional PILOT payable to the county in the county's general fund; and
(2) transfer the provisional PILOT payable to the conservancy district to the fiscal officer of the conservancy district for deposit in the conservancy district's general fund.
(d) Within ten (10) days after the date that the tax rate for the county or conservancy district is determined, the county treasurer shall reconcile the provisional PILOT received under this subsection with the amount otherwise due under this chapter by:
(1) submitting a bill to the department for any amount remaining due under this chapter; or
(2) submitting a bill to the county or conservancy district equal to the amount of any overpayment received by the unit from the department.
(e) The department shall pay the amount billed under subsection (d)(1) within twenty (20) days of receiving the bill from the county treasurer. The county treasurer shall:
(1) deposit the amount of the reconciliation billing payable to the county in the county's general fund; and
(2) transfer the amount of the reconciliation billing payable to the conservancy district to the fiscal officer of the conservancy district for deposit in the conservancy district's general fund.
(f) The fiscal officer of a conservancy district shall remit the amount of any refundable portion of the provisional PILOT received by the conservancy district to the county treasurer within fifteen (15) days of receiving the bill for the refund from the county
treasurer under subsection (d)(2).
(g) The county treasurer shall remit to the department the
amount of any refundable portion of a provisional PILOT received
by a county or conservancy district within twenty (20) days of
billing the unit under subsection (d)(2).
Sec. 11. Not later than September 1, 2011, and each year
thereafter, the department shall provide the county assessor of
each county in which a qualified parcel is located with a report of:
(1) the total number of qualified parcels that are located in the
county;
(2) the total number of acres contained in the qualified parcels
located in the county; and
(3) any other information required by the department of local
government finance;
on a form prescribed by the department of local government
finance. However, with the consent of the department of local
government finance, the department may distribute the
information required under this section in an electronic format.
Sec. 12. A PILOT received under this chapter is treated in the
same manner as a property tax for the following purposes of a
county or conservancy district:
(1) Adopting a budget under IC 6-1.1-17.
(2) Calculating a maximum permissible levy under
IC 6-1.1-18.5.
(3) Financing a controlled project under IC 6-1.1-20.
Sec. 13. The department of local government finance shall
prescribe a form for the transfer of information required under
section 11 of this chapter. The department of local government
finance may adopt standards for the transfer of information under
section 11 of this chapter that are necessary to assist counties and
conservancy districts with the implementation of this chapter.
Sec. 14. There is annually appropriated from the state general
fund the amount necessary to pay the PILOTS required by this
chapter.
