Bill Text: IN HB1455 | 2011 | Regular Session | Amended
Bill Title: Tax abatement for agricultural property.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2011-02-08 - Referred to Committee on Ways and Means pursuant to House Rule 127 [HB1455 Detail]
Download: Indiana-2011-HB1455-Amended.html
Citations Affected: IC 6-1.1.
Synopsis: Tax abatement for agricultural property. Permits an
economic revitalization area to be established in an area predominately
used for agricultural purposes. Makes redevelopment or rehabilitation
in an agricultural economic development area and new farm equipment
eligible for local tax abatement. Makes property that is the subject of
a succession in operation or control of a family farm eligible for a local
tax abatement.
Effective: Upon passage.
January 20, 2011, read first time and referred to Committee on Agriculture and Rural
Development.
February 8, 2011, reported _ Do Pass. Recommitted to Committee on Ways and Means
pursuant to Rule 127.
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
taxation.
(1) "Economic revitalization area" means an area,
(A) any area where a facility or a group of facilities that are technologically, economically, or energy obsolete are located
and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise
provided in this chapter.
(2) "City" means any city in this state, and "town" means any town
incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means tangible personal
property that a deduction applicant:
(A) installs after February 28, 1983, and on or before the
approval deadline determined under section 9 of this chapter,
in an area that is declared an economic revitalization area after
February 28, 1983, in which a deduction for tangible personal
property is allowed;
(B) uses in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or finishing
of other tangible personal property, including but not limited
to use to dispose of solid waste or hazardous waste by
converting the solid waste or hazardous waste into energy or
other useful products;
(C) acquires for use as described in clause (B):
(i) in an arms length transaction from an entity that is not an
affiliate of the deduction applicant, if the tangible personal
property has been previously used in Indiana before the
installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the installation
described in clause (A); and
(D) has never used for any purpose in Indiana before the
installation described in clause (A).
However, notwithstanding any other law, the term includes
tangible personal property that is used to dispose of solid waste or
hazardous waste by converting the solid waste or hazardous waste
into energy or other useful products and was installed after March
1, 1993, and before March 2, 1996, even if the property was
installed before the area where the property is located was
designated as an economic revitalization area or the statement of
benefits for the property was approved by the designating body.
(4) "Property" means a building or structure, but does not include
land.
(5) "Redevelopment" means the construction of new structures,
in economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure is demolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or betterment of property in any manner or any enlargement or extension of property.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city, the fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, the metropolitan development commission.
(8) "Deduction application" means:
(A) the application filed in accordance with section 5 of this chapter by a property owner who desires to obtain the deduction provided by section 3 of this chapter;
(B) the application filed in accordance with section 5.4 of this chapter by a person who desires to obtain the deduction provided by section 4.5 of this chapter; or
(C) the application filed in accordance with section 5.3 of this chapter by a property owner that desires to obtain the deduction provided by section 4.8 of this chapter.
(9) "Designation application" means an application that is filed with a designating body to assist that body in making a determination about whether a particular area should be designated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in IC 13-11-2-99(a). The term includes waste determined to be a hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in IC 13-11-2-205(a). However, the term does not include dead animals or any animal solid or semisolid wastes.
(12) "New research and development equipment" means tangible personal property that:
(A) a deduction applicant installs after June 30, 2000, and on or before the approval deadline determined under section 9 of this chapter, in an economic revitalization area in which a deduction for tangible personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) the deduction applicant uses in research and development activities devoted directly and exclusively to experimental or laboratory research and development for new products, new uses of existing products, or improving or testing existing products;
(D) the deduction applicant acquires for purposes described in this subdivision:
(i) in an arms length transaction from an entity that is not an affiliate of the deduction applicant, if the tangible personal property has been previously used in Indiana before the installation described in clause (A); or
(ii) in any manner, if the tangible personal property has never been previously used in Indiana before the installation described in clause (A); and
(E) the deduction applicant has never used for any purpose in Indiana before the installation described in clause (A).
The term does not include equipment installed in facilities used for or in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising or promotion, or research in connection with literacy, history, or similar projects.
(13) "New logistical distribution equipment" means tangible personal property that:
(A) a deduction applicant installs after June 30, 2004, and on or before the approval deadline determined under section 9 of this chapter, in an economic revitalization area in which a deduction for tangible personal property is allowed;
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) fork lifts or lifting equipment (including "walk behinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical distribution;
(C) the deduction applicant acquires for the storage or distribution of goods, services, or information:
(i) in an arms length transaction from an entity that is not an affiliate of the deduction applicant, if the tangible personal
property has been previously used in Indiana before the
installation described in clause (A); and
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the installation
described in clause (A); and
(D) the deduction applicant has never used for any purpose in
Indiana before the installation described in clause (A).
(14) "New information technology equipment" means tangible
personal property that:
(A) a deduction applicant installs after June 30, 2004, and on
or before the approval deadline determined under section 9 of
this chapter, in an economic revitalization area in which a
deduction for tangible personal property is allowed;
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics;
(C) the deduction applicant acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant; and
(D) the deduction applicant never used for any purpose in
Indiana before the installation described in clause (A).
(15) "Deduction applicant" means an owner of tangible personal
property who makes a deduction application.
(16) "Affiliate" means an entity that effectively controls or is
controlled by a deduction applicant or is associated with a
deduction applicant under common ownership or control, whether
by shareholdings or other means.
(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the owner of
the building or a tenant of the owner occupies the building, as
evidenced by a valid certificate of occupancy, paid utility
receipts, executed lease agreements, or any other evidence of
occupation that the department of local government finance
requires.
(18) "Agricultural purpose" means the production,
extraction, harvesting, or processing of agricultural
commodities on land classified for property tax purposes as
agricultural land.
(19) "New farm equipment" means tangible personal
property that a deduction applicant:
(A) installs after July 1, 2011, and on or before the
approval deadline determined under section 9 of this
chapter, in an area that is declared an economic
revitalization area in which a deduction for tangible
personal property is allowed;
(B) uses in the direct production, extraction, harvesting, or
processing of agricultural commodities for sale on land
classified for property tax purposes as agricultural land,
including use to dispose of solid waste or hazardous waste
generated in an agricultural operation by converting the
solid waste or hazardous waste into energy or other useful
products;
(C) acquires for use as described in clause (B):
(i) in an arms length transaction from an entity that is
not an affiliate of the deduction applicant, if the tangible
personal property has been previously used in Indiana
before the installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(D) has never used for any purpose in Indiana before the
installation described in clause (A).
However, a designating body may waive the application of
clauses (C) and (D) and the requirement of installation after
July 1, 2011, and treat existing tangible personal property
that is the subject of a succession as new farm equipment if
the designating body determines that the waiver will promote
the continuation of a family farm as a family farm after the
succession. The determination must be included in the
resolution approving a deduction for the tangible personal
property.
(20) "Family farm" means a farm in which the majority of the
business is owned by the operator and individuals related to
the operator by blood, marriage, or adoption, including
relatives that do not live in the operator household.
(21) "Succession" means a change in the operator or control
of a family farm among individuals who are related by blood,
marriage, or adoption.
(b) In a county containing a consolidated city or within a city or town, a designating body may find that a particular area within its jurisdiction is a residentially distressed area. Designation of an area as a residentially distressed area has the same effect as designating an area as an economic revitalization area, except that the amount of the deduction shall be calculated as specified in section 4.1 of this chapter and the deduction is allowed for not more than five (5) years. In order to declare a particular area a residentially distressed area, the designating body must follow the same procedure that is required to designate an area as an economic revitalization area and must make all the following additional findings or all the additional findings described in subsection (c):
(1) The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings or multifamily dwellings designed for up to four (4) families, including accessory buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two hundred thousand (200,000) but less than three hundred thousand (300,000), the designating body is only required to make one (1) of the additional findings described in this subsection or one (1) of the additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or town, a designating body that wishes to designate a particular area a residentially distressed area may make the following additional findings as an alternative to the additional findings described in subsection (b):
(1) A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the area is owned by Indiana or the United States.
(4) The area (plus any areas previously designated under this subsection) will not exceed ten percent (10%) of the total area within the designating body's jurisdiction.
However, in a city in a county having a population of more than two hundred thousand (200,000) but less than three hundred thousand (300,000), the designating body is only required to make one (1) of the additional findings described in this subsection as an alternative to one (1) of the additional findings described in subsection (b).
(d) A designating body is required to attach the following conditions to the grant of a residentially distressed area designation:
(1) The deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability.
(2) If a designation application is filed, the designating body may require that the redevelopment or rehabilitation be completed within a reasonable period of time.
(e) To make a designation described in subsection (a) or (b), the designating body shall use procedures prescribed in section 2.5 of this chapter.
(f) The property tax deductions provided by section 3, 4.5, or 4.8 of this chapter are only available within an area which the designating body finds to be an economic revitalization area.
(g) The designating body may adopt a resolution establishing general standards to be used, along with the requirements set forth in the definition of economic revitalization area, by the designating body in finding an area to be an economic revitalization area. The standards must have a reasonable relationship to the development objectives of the area in which the designating body has jurisdiction. The following
(1) One (1) relative to the deduction under section 3 of this chapter for economic revitalization areas that are not residentially distressed areas.
(2) One (1) relative to the deduction under section 3 of this
chapter for residentially distressed areas.
(3) One (1) relative to the deduction allowed under section 4.5 of
this chapter.
(4) One (1) relative to the deduction allowed under section 4.8 of
this chapter.
(5) One (1) relative to property granted a deduction for an
agricultural purpose.
(h) A designating body may impose a fee for filing a designation
application for a person requesting the designation of a particular area
as an economic revitalization area. The fee may be sufficient to defray
actual processing and administrative costs. However, the fee charged
for filing a designation application for a parcel that contains one (1) or
more owner-occupied, single-family dwellings may not exceed the cost
of publishing the required notice.
(i) In declaring an area an economic revitalization area, the
designating body may:
(1) limit the time period to a certain number of calendar years
during which the economic revitalization area shall be so
designated;
(2) limit the type of deductions that will be allowed within the
economic revitalization area to the deduction allowed under
section 3 of this chapter, the deduction allowed under section 4.5
of this chapter, the deduction allowed under section 4.8 of this
chapter, or any combination of these deductions;
(3) limit the dollar amount of the deduction that will be allowed
with respect to new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, and new information technology
equipment if a deduction under this chapter had not been filed
before July 1, 1987, for that equipment;
(4) limit the dollar amount of the deduction that will be allowed
with respect to redevelopment and rehabilitation occurring in
areas that are designated as economic revitalization areas on or
after September 1, 1988;
(5) limit the dollar amount of the deduction that will be allowed
under section 4.8 of this chapter with respect to the occupation of
an eligible vacant building; or
(6) impose reasonable conditions related to the purpose of this
chapter or to the general standards adopted under subsection (g)
for allowing the deduction for the redevelopment or rehabilitation
of the property, the succession of property, or the installation of
the new manufacturing equipment, new farm equipment, new
research and development equipment, new logistical distribution
equipment, or new information technology equipment.
To exercise one (1) or more of these powers, a designating body must
include this fact in the resolution passed under section 2.5 of this
chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, new farm equipment, new research
and development equipment, new logistical distribution
equipment, or new information technology equipment installed on
or before the approval deadline determined under section 9 of this
chapter, but after the expiration of the economic revitalization
area if:
(A) the economic revitalization area designation expires after
December 30, 1995; and
(B) the new manufacturing equipment, new farm equipment,
new research and development equipment, new logistical
distribution equipment, or new information technology
equipment was described in a statement of benefits submitted
to and approved by the designating body in accordance with
section 4.5 of this chapter before the expiration of the
economic revitalization area designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 4, 4.5, or 4.8 of this chapter.
(k) Notwithstanding any other provision of this chapter, deductions:
(1) that are authorized under section 3 of this chapter for property
in an area designated as an urban development area before March
1, 1983, and that are based on an increase in assessed valuation
resulting from redevelopment or rehabilitation that occurs before
March 1, 1983; or
(2) that are authorized under section 4.5 of this chapter for new
manufacturing equipment installed in an area designated as an
urban development area before March 1, 1983;
apply according to the provisions of this chapter as they existed at the
time that an application for the deduction was first made. No deduction
that is based on the location of property or new manufacturing
equipment in an urban development area is authorized under this
chapter after February 28, 1983, unless the initial increase in assessed
value resulting from the redevelopment or rehabilitation of the property
or the installation of the new manufacturing equipment occurred before
March 1, 1983.
(l) In addition to the other requirements of this chapter, if property
located in an economic revitalization area is also located in an
allocation area (as defined in IC 36-7-14-39 or IC 36-7-15.1-26), a
taxpayer's statement of benefits concerning that property may not be
approved under this chapter unless a resolution approving the
statement of benefits is adopted by the legislative body of the unit that
approved the designation of the allocation area.
(1) A description of the proposed redevelopment,
(2) An estimate of the number of individuals who will be employed or whose employment will be retained by the person as a result of the redevelopment, or rehabilitation, and an estimate of the annual salaries of these individuals.
(3) With respect to property subject to a succession, information demonstrating that the succession will result in the continuation of a family farm as a family farm.
With the approval of the designating body, the statement of benefits may be incorporated in a designation application. Notwithstanding any other law, a statement of benefits is a public record that may be inspected and copied under IC 5-14-3-3.
(b) The designating body must review the statement of benefits required under subsection (a). The designating body shall determine whether an area should be designated an economic revitalization area or whether a deduction should be allowed, based on (and after it has made) the following findings:
(1) Whether the estimate of the value of the redevelopment,
(2) Whether the estimate of the number of individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment,
(3) Whether the estimate of the annual salaries of those individuals who will be employed or whose employment will be retained can be reasonably expected to result from the proposed described redevelopment,
(4) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment,
(5) Whether the totality of benefits is sufficient to justify the deduction.
However, if the deduction is for property subject to a succession, a finding that the continuation of the family farm is reasonably likely to result from the succession may be substituted for findings under subdivisions (2) and (3). A designating body may not designate an area an economic revitalization area or approve a deduction unless the findings required by this subsection are made in the affirmative.
(c) Except as provided in subsections (a) through (b), the owner of property which is located in an economic revitalization area is entitled to a deduction from the assessed value of the property. If the area is a residentially distressed area, the period is not more than five (5) years. For all other economic revitalization areas designated before July 1, 2000, the period is three (3), six (6), or ten (10) years. For all economic revitalization areas designated after June 30, 2000, the period is the number of years determined under subsection (d). The owner is entitled to a deduction if:
(1) the property has been rehabilitated;
(2) the property is located on real estate which has been redeveloped; or
(3) a succession in the operation or control of a family farm has occurred and the property is operated as a family farm.
The assessed value of land used for an agricultural purpose (after subtraction of the assessed value of any buildings or structure on the land) is not eligible for a deduction under this chapter. The owner is entitled to the deduction for the first year, and any successive year or years, in which an increase in assessed value resulting from the rehabilitation or redevelopment occurs (or if section 11.3(b) of this chapter applies, the year in which the date of succession determined by the designating body occurs) and for the following years determined under subsection (d). However, property owners who had an area designated an urban development area pursuant to an application filed prior to January 1, 1979, are only entitled to a deduction for a five (5) year period. In addition, property owners who are entitled to a deduction under this chapter pursuant to an application filed after December 31, 1978, and before January 1, 1986, are entitled to a deduction for a ten (10) year period.
(d) For an area designated as an economic revitalization area after June 30, 2000, that is not a residentially distressed area, the designating body shall determine the number of years for which the property owner is entitled to a deduction. However, the deduction may not be allowed for more than ten (10) years. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this chapter; or
(2) by resolution adopted within sixty (60) days after receiving a copy of a property owner's certified deduction application from the county auditor. A certified copy of the resolution shall be sent to the county auditor who shall make the deduction as provided in section 5 of this chapter.
A determination about the number of years the deduction is allowed that is made under subdivision (1) is final and may not be changed by following the procedure under subdivision (2).
(e) Except for deductions related to redevelopment or rehabilitation of real property in a county containing a consolidated city or a deduction related to redevelopment or rehabilitation of real property initiated before December 31, 1987, in areas designated as economic revitalization areas before that date, a deduction for the redevelopment or rehabilitation of real property may not be approved for the following facilities:
(1) Private or commercial golf course.
(2) Country club.
(3) Massage parlor.
(4) Tennis club.
(5) Skating facility (including roller skating, skateboarding, or ice
skating).
(6) Racquet sport facility (including any handball or racquetball
court).
(7) Hot tub facility.
(8) Suntan facility.
(9) Racetrack.
(10) Any facility the primary purpose of which is:
(A) retail food and beverage service;
(B) automobile sales or service; or
(C) other retail;
unless the facility is located in an economic development target
area established under section 7 of this chapter.
(11) Residential, unless:
(A) the facility is a multifamily facility that contains at least
twenty percent (20%) of the units available for use by low and
moderate income individuals;
(B) the facility is located in an economic development target
area established under section 7 of this chapter; or
(C) the area is designated as a residentially distressed area.
(12) A package liquor store that holds a liquor dealer's permit
under IC 7.1-3-10 or any other entity that is required to operate
under a license issued under IC 7.1. This subdivision does not
apply to an applicant that:
(A) was eligible for tax abatement under this chapter before
July 1, 1995;
(B) is described in IC 7.1-5-7-11; or
(C) operates a facility under:
(i) a beer wholesaler's permit under IC 7.1-3-3;
(ii) a liquor wholesaler's permit under IC 7.1-3-8; or
(iii) a wine wholesaler's permit under IC 7.1-3-13;
for which the applicant claims a deduction under this chapter.
(f) This subsection applies only to a county having a population of
more than two hundred thousand (200,000) but less than three hundred
thousand (300,000). Notwithstanding subsection (e)(11), in a county
subject to this subsection a designating body may, before September 1,
2000, approve a deduction under this chapter for the redevelopment or
rehabilitation of real property consisting of residential facilities that are
located in unincorporated areas of the county if the designating body
makes a finding that the facilities are needed to serve any combination
of the following:
(1) Elderly persons who are predominately low-income or
moderate-income persons.
(1) A description of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment that the person proposes to acquire. A statement of benefits for new farm equipment must describe each piece of new farm equipment with sufficient detail to afford identification.
(2) With respect to:
(A) new manufacturing equipment or new farm equipment not used to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical distribution equipment, or new information technology equipment;
an estimate of the number of individuals who will be employed or whose employment will be retained by the person as a result of the installation of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment and an estimate of the annual salaries of these individuals or, if the personal property qualifies as new farm equipment as the result of a succession, information
demonstrating that the succession will result in the
continuation of a family farm as a family farm.
(3) An estimate of the cost of the new manufacturing equipment,
new farm equipment, new research and development equipment,
new logistical distribution equipment, or new information
technology equipment.
(4) With respect to new manufacturing equipment or new farm
equipment used to dispose of solid waste or hazardous waste by
converting the solid waste or hazardous waste into energy or other
useful products, an estimate of the amount of solid waste or
hazardous waste that will be converted into energy or other useful
products by the new manufacturing equipment or new farm
equipment.
The statement of benefits may be incorporated in a designation
application. Notwithstanding any other law, a statement of benefits is
a public record that may be inspected and copied under IC 5-14-3-3.
(b) The designating body must review the statement of benefits
required under subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether the deduction shall be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment is reasonable for equipment of
that type.
(2) With respect to:
(A) new manufacturing equipment or new farm equipment
not used to dispose of solid waste or hazardous waste by
converting the solid waste or hazardous waste into energy or
other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the installation of the new
manufacturing equipment, new farm equipment, new research
and development equipment, new logistical distribution
equipment, or new information technology equipment.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
installation of new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment.
(4) With respect to new manufacturing equipment or new farm
equipment used to dispose of solid waste or hazardous waste by
converting the solid waste or hazardous waste into energy or other
useful products, whether the estimate of the amount of solid waste
or hazardous waste that will be converted into energy or other
useful products can be reasonably expected to result from the
installation of the new manufacturing equipment or new farm
equipment.
(5) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed installation of new manufacturing equipment,
new farm equipment, new research and development equipment,
new logistical distribution equipment, or new information
technology equipment.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
However, if the personal property qualifies as new farm equipment
as the result of a succession, a finding that continuation of the
family farm is reasonably likely to result from the succession may
be substituted for findings under subdivisions (2), (3), and (4). The
designating body may not designate an area an economic revitalization
area or approve the deduction unless it makes the findings required by
this subsection in the affirmative.
(c) Except as provided in subsection (g), and subject to subsection
(h) and section 15 of this chapter, an owner of new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new information
technology equipment whose statement of benefits is approved after
June 30, 2000, is entitled to a deduction from the assessed value of that
equipment for the number of years determined by the designating body
under subsection (f). Except as provided in subsection (e) and in
section 2(i)(3) of this chapter, and subject to subsection (h) and section
15 of this chapter, the amount of the deduction that an owner is entitled
to for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment, new
farm equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment in the year of deduction under the appropriate table set
forth in subsection (d); multiplied by
(2) the percentage prescribed in the appropriate table set forth in
subsection (d).
(d) The percentage to be used in calculating the deduction under
subsection (c) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd and thereafter 0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
3rd and thereafter 0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 66%
3rd 33%
4th and thereafter 0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
5th and thereafter 0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
6th and thereafter 0%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 25%
7th and thereafter 0%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
8th and thereafter 0%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
9th and thereafter 0%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
10th and thereafter 0%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION PERCENTAGE
1st 100%
2nd 90%
3rd 80%
4th 70%
5th 60%
6th 50%
7th 40%
8th 30%
9th 20%
10th 10%
11th and thereafter 0%
(e) With respect to new manufacturing equipment and new research and development equipment installed before March 2, 2001, the deduction under this section is the amount that causes the net assessed value of the property after the application of the deduction under this section to equal the net assessed value after the application of the deduction under this section that results from computing:
(1) the deduction under this section as in effect on March 1, 2001; and
(2) the assessed value of the property under 50 IAC 4.2, as in effect on March 1, 2001, or, in the case of property subject to IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
(f) For an economic revitalization area designated before July 1, 2000, the designating body shall determine whether a property owner whose statement of benefits is approved after April 30, 1991, is entitled to a deduction for five (5) or ten (10) years. For an economic revitalization area designated after June 30, 2000, the designating body shall determine the number of years the deduction is allowed. However, the deduction may not be allowed for more than five (5) years for new farm equipment and ten (10) years for other property. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this chapter; or
(2) by resolution adopted within sixty (60) days after receiving a copy of a property owner's certified deduction application from the county auditor. A certified copy of the resolution shall be sent to the county auditor.
A determination about the number of years the deduction is allowed that is made under subdivision (1) is final and may not be changed by following the procedure under subdivision (2).
(g) The owner of new manufacturing equipment or new farm equipment that is directly used to dispose of hazardous waste is not entitled to the deduction provided by this section for a particular assessment year if during that assessment year the owner:
(1) is convicted of a criminal violation under IC 13, including IC 13-7-13-3 (repealed) or IC 13-7-13-4 (repealed); or
(2) is subject to an order or a consent decree with respect to property located in Indiana based on a violation of a federal or state rule, regulation, or statute governing the treatment, storage, or disposal of hazardous wastes that had a major or moderate potential for harm.
(h) For purposes of subsection (c), the assessed value of new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment that is part of an owner's assessable depreciable personal property in a single taxing district subject to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is the product of:
(1) the assessed value of the equipment determined without regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the owner's depreciable personal property in the taxing district; divided by
(B) the total true tax value of all of the owner's depreciable personal property in the taxing district that is subject to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 determined:
(i) under the depreciation schedules in the rules of the department of local government finance before any adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9.
(b) If notice of the addition to assessed valuation or new assessment for any year is not given to the property owner before April 10 of that year, the deduction application required by this section may be filed not
later than thirty (30) days after the date such a notice is mailed to the
property owner at the address shown on the records of the township or
county assessor. If section 11.3(b) of this chapter applies and the
property owner has not received notice of the date of succession
before April 10 in a year, the deduction application required by
this section may be filed not later than thirty (30) days after notice
of the succession date is received by the property owner.
(c) The deduction application required by this section must contain
the following information:
(1) The name of the property owner.
(2) A description of the property for which a deduction is claimed
in sufficient detail to afford identification.
(3) If the deduction is for rehabilitation, the assessed value of
the improvements before rehabilitation.
(4) If the deduction is for rehabilitation, the increase in the
assessed value of improvements resulting from the rehabilitation.
(5) The assessed value of the new structure in the case of
redevelopment.
(6) The assessed value of the structure subject to the
deduction in the case of a deduction granted for a succession
in ownership or control of a family farm.
(6) (7) The amount of the deduction claimed for the first year of
the deduction.
(7) (8) If the deduction application is for a deduction in a
residentially distressed area, the assessed value of the
improvement or new structure for which the deduction is claimed.
(d) A deduction application filed under subsection (a) or (b) is
applicable for the year in which the addition to assessed value or
assessment of a new structure is made (or, if section 11.3(b) of this
chapter applies, the year in which the date of succession
determined by the designating body occurs) and in the following
years the deduction is allowed without any additional deduction
application being filed. However, property owners who had an area
designated an urban development area pursuant to a deduction
application filed prior to January 1, 1979, are only entitled to a
deduction for a five (5) year period. In addition, property owners who
are entitled to a deduction under this chapter pursuant to a deduction
application filed after December 31, 1978, and before January 1, 1986,
are entitled to a deduction for a ten (10) year period.
(e) A property owner who desires to obtain the deduction provided
by section 3 of this chapter but who has failed to file a deduction
application within the dates prescribed in subsection (a) or (b) may file
a deduction application between March 1 and May 10 of a subsequent
year which shall be applicable for the year filed and the subsequent
years without any additional deduction application being filed for the
amounts of the deduction which would be applicable to such years
pursuant to section 4 of this chapter if such a deduction application had
been filed in accordance with subsection (a) or (b).
(f) Subject to subsection (i), the county auditor shall act as follows:
(1) If a determination about the number of years the deduction is
allowed has been made in the resolution adopted under section
2.5 of this chapter, the county auditor shall make the appropriate
deduction.
(2) If a determination about the number of years the deduction is
allowed has not been made in the resolution adopted under
section 2.5 of this chapter, the county auditor shall send a copy of
the deduction application to the designating body. Upon receipt
of the resolution stating the number of years the deduction will be
allowed, the county auditor shall make the appropriate deduction.
(3) If the deduction application is for rehabilitation or
redevelopment in a residentially distressed area, the county
auditor shall make the appropriate deduction.
(g) This section does not apply to property granted a deduction
for an agricultural purpose. The amount and period of the deduction
provided for property by section 3 of this chapter are not affected by a
change in the ownership of the property if the new owner of the
property:
(1) continues to use the property in compliance with any
standards established under section 2(g) of this chapter; and
(2) files an application in the manner provided by subsection (e).
(h) The township or county assessor shall include a notice of the
deadlines for filing a deduction application under subsections (a) and
(b) with each notice to a property owner of an addition to assessed
value or of a new assessment.
(i) Before the county auditor acts under subsection (f), the county
auditor may request that the township assessor of the township in
which the property is located, or the county assessor if there is no
township assessor for the township, review the deduction application.
(j) A property owner may appeal a determination of the county
auditor under subsection (f) to deny or alter the amount of the
deduction by requesting in writing a preliminary conference with the
county auditor not more than forty-five (45) days after the county
auditor gives the person notice of the determination. An appeal
initiated under this subsection is processed and determined in the same
manner that an appeal is processed and determined under IC 6-1.1-15.
(1) a timely personal property return under IC 6-1.1-3-7(a) or IC 6-1.1-3-7(b); or
(2) a timely amended personal property return under IC 6-1.1-3-7.5.
The township or county assessor shall forward to the county auditor a copy of each certified deduction schedule filed under this subsection. The township assessor shall forward to the county assessor a copy of each certified deduction schedule filed with the township assessor under this subsection.
(b) The deduction schedule required by this section must contain the following information:
(1) The name of the owner of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment.
(2) A description of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment.
(3) The amount of the deduction claimed for the first year of the deduction.
(c) This subsection applies to a deduction schedule with respect to new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment for which a statement of benefits was initially approved after April 30, 1991. If a determination about the number of years the deduction is allowed has not been made in the resolution adopted under section 2.5 of this chapter, the county
auditor shall send a copy of the deduction schedule to the designating
body, and the designating body shall adopt a resolution under section
4.5(f)(2) of this chapter.
(d) A deduction schedule must be filed under this section in the year
in which the new manufacturing equipment, new farm equipment,
new research and development equipment, new logistical distribution
equipment, or new information technology equipment is installed (or,
if section 11.3(b) of this chapter applies, in the year in which the
date of succession determined by the designating body occurs) and
in each of the immediately succeeding years the deduction is allowed.
(e) The township assessor, or the county assessor if there is no
township assessor for the township, may:
(1) review the deduction schedule; and
(2) before the March 1 that next succeeds the assessment date for
which the deduction is claimed, deny or alter the amount of the
deduction.
If the township or county assessor does not deny the deduction, the
county auditor shall apply the deduction in the amount claimed in the
deduction schedule or in the amount as altered by the township or
county assessor. A township or county assessor who denies a deduction
under this subsection or alters the amount of the deduction shall notify
the person that claimed the deduction and the county auditor of the
assessor's action. The county auditor shall notify the designating body
and the county property tax assessment board of appeals of all
deductions applied under this section.
(f) This subsection does not apply to new farm equipment. If the
ownership of new manufacturing equipment, new research and
development equipment, new logistical distribution equipment, or new
information technology equipment changes, the deduction provided
under section 4.5 of this chapter continues to apply to that equipment
if the new owner:
(1) continues to use the equipment in compliance with any
standards established under section 2(g) of this chapter; and
(2) files the deduction schedules required by this section.
(g) The amount of the deduction is the percentage under section 4.5
of this chapter that would have applied if the ownership of the property
had not changed multiplied by the assessed value of the equipment for
the year the deduction is claimed by the new owner.
(h) A person may appeal a determination of the township or county
assessor under subsection (e) to deny or alter the amount of the
deduction by requesting in writing a preliminary conference with the
township or county assessor not more than forty-five (45) days after the
township or county assessor gives the person notice of the
determination. Except as provided in subsection (i), an appeal initiated
under this subsection is processed and determined in the same manner
that an appeal is processed and determined under IC 6-1.1-15.
(i) The county assessor is recused from any action the county
property tax assessment board of appeals takes with respect to an
appeal under subsection (h) of a determination by the county assessor.
(b) This subsection applies to a property owner whose statement of benefits was approved under section 4.5 of this chapter after June 30, 1991. In addition to the requirements of section 5.4(b) of this chapter, a property owner who files a deduction schedule under section 5.4 of this chapter must provide the county auditor and the designating body with information showing the extent to which there has been compliance with the statement of benefits approved under section 4.5 of this chapter.
(c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following information is a public record if filed under this section:
(1) The name and address of the taxpayer.
(2) The location and description of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment for which the deduction was granted.
(3) Any information concerning the number of employees at the facility where the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment is located, including estimated totals that were provided as part of the statement of benefits.
(4) Any information concerning the total of the salaries paid to those employees, including estimated totals that were provided as
part of the statement of benefits.
(5) Any information concerning the amount of solid waste or
hazardous waste converted into energy or other useful products by
the new manufacturing equipment or new farm equipment.
(6) Any information concerning the assessed value of the new
manufacturing equipment, new farm equipment, new research
and development equipment, new logistical distribution
equipment, or new information technology equipment including
estimates that were provided as part of the statement of benefits.
(d) The following information is confidential if filed under this
section:
(1) Any information concerning the specific salaries paid to
individual employees by the owner of the new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
(2) Any information concerning the cost of the new
manufacturing equipment, new farm equipment, new research
and development equipment, new logistical distribution
equipment, or new information technology equipment.
(1) A list of the deduction applications that were filed under this
chapter during that year that resulted in deductions being applied
under this chapter for that year. The list must contain the
following:
(A) The name and address of each person approved for or
receiving a deduction that was filed for during the year.
(B) The amount of each deduction that was filed for during the
year.
(C) The number of years for which each deduction that was
filed for during the year will be available.
(D) The total amount for all deductions that were filed for and
applied during the year.
(2) The total amount of all deductions for real property that were
in effect under section 3 of this chapter during the year.
(3) The total amount of all deductions for new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment that were in effect under
section 4.5 of this chapter during the year.
(4) The total amount of all deductions for eligible vacant
buildings that were in effect under section 4.8 of this chapter
during the year.
(b) The county auditor shall file the information described in
subsection (a)(2), (a)(3), and (a)(4) with the department of local
government finance not later than December 31 of each year.
(1) Failure to provide the completed statement of benefits form to the designating body before the hearing required by section 2.5(c) of this chapter.
(2) Failure to submit the completed statement of benefits form to the designating body before the:
(A) initiation of the redevelopment or rehabilitation;
(B) installation of new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment; or
(C) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this chapter.
(3) Failure to designate an area as an economic revitalization area
before the initiation of the:
(A) redevelopment;
(B) installation of new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment;
(C) rehabilitation; or
(D) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this
chapter.
(4) Failure to make the required findings of fact before
designating an area as an economic revitalization area or
authorizing a deduction for new manufacturing equipment, new
farm equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment under section 2, 3, 4.5, or 4.8 of this chapter.
(5) Failure to file a:
(A) timely; or
(B) complete;
deduction application under section 5, 5.3, or 5.4 of this chapter.
(b) This section does not grant a designating body the authority to
exempt a person from filing a statement of benefits or exempt a
designating body from making findings of fact.
(c) A designating body may by resolution waive noncompliance
described under subsection (a) under the terms and conditions specified
in the resolution. Before adopting a waiver under this subsection, the
designating body shall conduct a public hearing on the waiver.
(1) Failure to provide the completed statement of benefits form to the designating body before the hearing required by section 2.5(c) of this chapter.
(2) Failure to submit the completed statement of benefits form to the designating body before the:
(A) initiation of the redevelopment or rehabilitation;
(B) installation of new manufacturing equipment, new research and development equipment, new logistical distribution equipment, new farm equipment, or new information technology equipment; or
(C) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this chapter.
(3) Failure to designate an area as an economic revitalization area before the initiation of the:
(A) redevelopment;
(B) installation of new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment;
(C) rehabilitation; or
(D) occupation of an eligible vacant building;
for which the person desires to claim a deduction under this chapter.
(4) Failure to make the required findings of fact before designating an area as an economic revitalization area or authorizing a deduction for new manufacturing equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment under section 2, 3, 4.5, or 4.8 of this chapter.
(5) Failure to file a:
(A) timely; or
(B) complete;
deduction application under section 5, 5.3, or 5.4 of this chapter.
(b) A designating body may:
(1) treat existing buildings and structures that are the subject of a succession in the operation or control of a family farm and are predominately used for an agricultural purpose on the family farm the same as the rehabilitation or redevelopment of property; and
(2) treat existing tangible personal property that is the subject of a succession in the operation or control of a family farm and is predominately used for an agricultural purpose on the family farm the same as new farm equipment;
if the designating body determines that the waiver of the requirements of rehabilitation, redevelopment, or installation will promote continuation of a family farm as a family farm after the succession. For the purposes of determining the first year in which a deduction applies to property subject to a succession, the designating body shall set a succession date that in not more than one hundred eight (180) days after the date that the operator of the family farm or majority ownership in the family farm changes. The succession date must be included in the resolution granting a
deduction under this chapter.
(b) (c) This section does not grant a designating body the authority
to exempt a person from filing a statement of benefits or exempt a
designating body from making findings of fact.
(c) (d) A designating body may by resolution waive noncompliance
described under subsection (a) or (b) under the terms and conditions
specified in the resolution. Before adopting a waiver under this
subsection, the designating body shall conduct a public hearing on the
waiver.
