Bill Text: IN HB1492 | 2013 | Regular Session | Introduced
Bill Title: Property tax abatements for certain buildings.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-22 - First reading: referred to Committee on Ways and Means [HB1492 Detail]
Download: Indiana-2013-HB1492-Introduced.html
Citations Affected: IC 6-1.1.
Synopsis: Property tax abatements for certain buildings. Allows a
designating body to specify characteristics of buildings to which the
term "eligible vacant building" applies when granting a property tax
deduction for the occupation of an eligible vacant building in an
economic revitalization area. Extends the maximum term for which a
property tax deduction for occupation of an eligible vacant building is
normally allowed from two years to 10 years. Allows an alternative
abatement schedule to be used for a deduction allowed for occupation
of an eligible vacant building. Provides a new deduction for a property
owner that a designating body determines is likely to vacate a building
without the property tax deduction and thus create an eligible vacant
building.
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Ways and Means.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) "Designating body" has the meaning set forth in IC 6-1.1-12.1-1(7).
(2) "Eligible vacant building" has the meaning set forth in IC 6-1.1-12.1-1(17).
(b) A designating body may grant a deduction under this section to a property owner of a building located in the area in which the designating body has jurisdiction in order to prevent the building from becoming an eligible vacant building, subject to the provisions in this section and section 48 of this chapter.
(c) A property owner that wishes to apply for a deduction under this section must provide a statement of benefits to the designating body.
(d) The property owner must submit the completed statement
of benefits form to the designating body before the property owner
or a tenant vacates the building for which the property owner
wishes to claim a deduction under this section.
(e) The department of local government finance shall prescribe
a form for the statement of benefits required under this section.
The statement of benefits must include the following information:
(1) A description of the building that the property owner or a
tenant will continue to occupy if granted a deduction under
this section.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the
property owner or the tenant as a result of the continued
occupation of the building, and an estimate of the annual
salaries of those individuals.
(3) Information regarding the likelihood and expected date
that the property owner or the tenant will vacate the building
if the property owner is not granted a deduction under this
section.
(f) A statement of benefits is a public record that may be
inspected and copied under IC 5-14-3.
(g) The designating body must review the statement of benefits
required by subsection (c). The designating body shall determine
whether a deduction should be allowed, after the designating body
has made the following findings:
(1) 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 continued occupation
of the building.
(2) 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
continued occupation of the building.
(3) Whether any other benefits about which information was
requested or offered are benefits that can be reasonably
expected to result from continued occupation of the building.
(4) Whether continued occupation of the building will avoid
reduction of the tax base.
(5) Whether it is likely that failure to grant the property
owner the deduction under this section will result in the
building becoming an eligible vacant building.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
A designating body may not approve a deduction under this section unless the findings required by this subsection are made in the affirmative.
(h) Except as otherwise provided in this section, the owner of a building is entitled to a deduction from the assessed value of the building under this section if the designating body approves the deduction and the property owner or a tenant continues to occupy the building. The property owner is entitled to the deduction:
(1) for the year immediately succeeding the year in which the designating body approves the property owner to receive the deduction provided by this section; and
(2) for subsequent years determined under subsection (i).
(i) For each deduction the designating body approves under this section, the designating body shall determine:
(1) the number of years for which a property owner is entitled to a deduction under this section, not to exceed ten (10) years, subject to IC 6-1.1-12.1-15; and
(2) the schedule of percentages to be used in calculating the deduction under this section for each year the property owner is entitled to the deduction, subject to the restriction that the deduction percentage for each year in the schedule may not exceed fifty percent (50%) of the assessed value of the building for which the deduction is approved.
These determinations shall be made by a resolution adopted not more than sixty (60) days after the designating body receives a copy of the property owner's deduction application from the county auditor. The designating body shall send a certified copy of the resolution to the county auditor, who shall make the deduction as provided in section 48 of this chapter.
(j) Except as provided in subsection (k), and subject to IC 6-1.1-12.1-15, the amount of the deduction the property owner is entitled to receive under this section for a particular year equals the product of:
(1) the assessed value of the building or part of the building that is occupied by the property owner or a tenant; multiplied by
(2) the percentage for the year set forth in the schedule determined under subsection (i).
(k) The amount of the deduction determined under subsection (j) shall be adjusted in accordance with this subsection in the following circumstances:
(1) If:
(A) a general reassessment of real property under IC 6-1.1-4-4; or
(B) a reassessment under a county's reassessment plan prepared under IC 6-1.1-4-4.2;
occurs within the period of the deduction, the amount of the assessed value determined under subsection (j)(1) shall be adjusted to reflect the percentage increase or decrease in assessed valuation that resulted from the reassessment.
(2) If an appeal of an assessment is approved and results in a reduction of the assessed value of the property, the amount of a deduction under this section shall be adjusted to reflect the percentage decrease that resulted from the appeal.
(l) The maximum amount of a deduction under this section may not exceed the lesser of:
(1) the annual amount for which the building was leased or rented by the owner during the period that a tenant occupied the building; or
(2) an amount, as determined by the designating body in its discretion, that is equal to the annual amount for which similar buildings in the county or contiguous counties were leased or rented or offered for lease or rent during the period the property owner or a tenant occupied the building.
(m) The department of local government finance may adopt rules under IC 4-22-2 to implement this section.
(b) A property owner that desires to obtain the deduction provided by section 47 of this chapter must file a deduction application, on forms prescribed by the department of local government finance, with the auditor of the county in which the building is located. Except as otherwise provided in this section, the deduction application must be filed before May 10 of the year following the year in which the designating body approves the deduction under section 47 of this chapter.
(c) If notice of the assessed valuation or new assessment for a 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 the notice is mailed to the property owner at the address shown on the records of the township or county assessor.
(d) The deduction application required by this section must contain the following information:
(1) The name of the property owner and, if applicable, the tenant.
(2) A description of the property for which a deduction is claimed.
(3) The amount of the deduction claimed for the first year of the deduction.
(4) Any other information required by the department of local government finance or the designating body.
(e) A deduction application filed under this section applies to the year following the year in which the designating body approves the deduction under section 47 of this chapter and for the number of immediately following years specified in a resolution described in section 47(i) of this chapter, without an additional deduction application being filed.
(f) A property owner that desires to obtain the deduction provided by section 47 of this chapter but that did not file a deduction application within the dates prescribed in subsection (b) or (c) may file a deduction application between March 1 and May 10 of a subsequent year. A deduction application filed under this subsection applies to the year in which the deduction application is filed and the number of immediately following years specified in a resolution described in section 47(i) of this chapter, without an additional deduction application being filed. The amount of the deduction under this subsection is the amount that would have been applicable for the year under section 47 of this chapter if the deduction application had been filed in accordance with subsection (b) or (c).
(g) Subject to subsection (j), the county auditor shall do the following:
(1) If a determination concerning the number of years the deduction is allowed has been made in the resolution adopted under section 47(i) of this chapter, the county auditor shall make the appropriate deduction.
(2) If a determination concerning the number of years the deduction is allowed has not been made in the resolution adopted under section 47(i) 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.
(h) The amount and period of the deduction provided by section 47 of this chapter are not affected by a change in the ownership of the building or a change in the tenant, if the new property owner or the new tenant files an application in the manner provided by subsection (f).
(i) Before the county auditor acts under subsection (g), the county auditor may request that the township assessor of the township in which the building 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 (g) by requesting in writing a preliminary conference with the county auditor not more than forty-five (45) days after the county auditor gives the property owner notice of the determination. An appeal under this subsection shall be processed and determined in the same manner that an appeal is processed and determined under IC 6-1.1-15.
(k) In addition to the requirements of subsection (d), a property owner that files a deduction application under this section 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 47 of this chapter. This information must be included in the deduction application and must also be updated each year in which the deduction is applicable:
(1) at the same time that the property owner or the tenant files a personal property tax return for property located at the building for which the deduction was granted; or
(2) if subdivision (1) does not apply, before May 15 of each year.
(l) The following information is a public record if filed under this section:
(1) The name and address of the property owner.
(2) The location and description of the building for which the deduction is granted.
(3) Any information concerning the number of employees at the building for which the deduction was granted, including estimated totals that were provided as part of the statement of benefits.
(4) Any information concerning the total of the salaries paid to the employees described in subdivision (3), including estimated totals that are provided as part of the statement of
benefits.
(5) Any information concerning the assessed value of the
building, including estimates that are provided as part of the
statement of benefits.
Information concerning the specific salaries paid to individual
employees by the property owner or tenant is confidential.
(1) "Economic revitalization area" means an area which is within the corporate limits of a city, town, or county which has become undesirable for, or impossible of, normal development and occupancy because of a lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings, or other factors which have impaired values or prevent a normal development of property or use of property. The term "economic revitalization area" also includes:
(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) either:
(i) has the characteristics specified in a resolution adopted by a designating body, as provided in section 2(g)(4) of this chapter, for use of the term in the area in which the designating body has jurisdiction; or
(ii) is zoned for commercial, office, or industrial purposes, if item (i) does not apply; and
(B) is unoccupied for at least one (1) year before the owner of the building or a tenant
(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 fifty thousand (250,000) but less than two hundred seventy
thousand (270,000), 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 fifty thousand (250,000) but less than two hundred seventy
thousand (270,000), 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
four (4) sets of standards may be established:
(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, which may include a specification of the
characteristics that a building must have to qualify as an
"eligible vacant building" in the area in which the designating
body has jurisdiction.
(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 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 or the installation of the new manufacturing
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 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 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.
the designating body.
(b) If the designating body requires information from the property
owner for the designating body's use in deciding whether to designate
an economic revitalization area, the property owner must provide the
completed statement of benefits form to the designating body before
the hearing required by section 2.5(c) of this chapter. Otherwise, the
property owner must submit the completed statement of benefits form
to the designating body before the occupation of the eligible vacant
building for which the property owner desires to claim a deduction.
(c) The department of local government finance shall prescribe a
form for the statement of benefits. The statement of benefits must
include the following information:
(1) A description of the eligible vacant building that the property
owner or a tenant of the property owner will occupy.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the property
owner or the tenant as a result of the occupation of the eligible
vacant building, and an estimate of the annual salaries of those
individuals.
(3) Information regarding efforts by the owner or a previous
owner to sell, lease, or rent the eligible vacant building during the
period the eligible vacant building was unoccupied.
(4) Information regarding the amount for which the eligible
vacant building was offered for sale, lease, or rent by the owner
or a previous owner during the period the eligible vacant building
was unoccupied.
(d) With the approval of the designating body, the statement of
benefits may be incorporated in a designation application. A statement
of benefits is a public record that may be inspected and copied under
IC 5-14-3.
(e) The designating body must review the statement of benefits
required by subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether a deduction should be allowed, after the designating body
has made the following findings:
(1) 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 occupation of the
eligible vacant building.
(2) 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
occupation of the eligible vacant building.
(3) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed occupation of the eligible vacant building.
(4) Whether the occupation of the eligible vacant building will
increase the tax base and assist in the rehabilitation of the
economic revitalization area.
(5) Whether the totality of benefits is sufficient to justify the
deduction.
A designating body may not designate an area an economic
revitalization area or approve a deduction under this section unless the
findings required by this subsection are made in the affirmative.
(f) Except as otherwise provided in this section, the owner of an
eligible vacant building located in an economic revitalization area is
entitled to a deduction from the assessed value of the building if the
property owner or a tenant of the property owner occupies the eligible
vacant building and uses it for commercial or industrial purposes. The
property owner is entitled to the deduction:
(1) for the first year in which the property owner or a tenant of the
property owner occupies the eligible vacant building and uses it
for commercial or industrial purposes; and
(2) for subsequent years determined under subsection (g).
(g) The designating body shall determine the number of years for
which a property owner is entitled to a deduction under this section.
However, subject to section 15 of this chapter, the deduction may not
be allowed for more than two (2) years, in the case of a deduction
approved under this section before July 1, 2013, or ten (10) years,
in the case of a deduction approved under this section after June
30, 2013. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by a resolution adopted not more than sixty (60) days after the
designating body receives a copy of the property owner's
deduction application from the county auditor.
A certified copy of a resolution under subdivision (2) shall be sent to
the county auditor, who shall make the deduction as provided in section
5.3 of this chapter. A determination concerning the number of years the
deduction is allowed that is made under subdivision (1) is final and
may not be changed by using the procedure under subdivision (2).
(h) Except as provided in section 2(i)(5) of this chapter and
subsection (k), and subject to section 15 of this chapter, the amount of
the deduction the property owner is entitled to receive under this
section for a particular year equals the product of:
(1) the assessed value of the building or part of the building that
is occupied by the property owner or a tenant of the property
owner; multiplied by
(2) the percentage set forth in the table in subsection (i).
(i) The percentage to be used in calculating the deduction under
subsection (h) is as follows:
(1) For deductions allowed over a one (1) year period in a
resolution described in subsection (g) that is adopted before
July 1, 2013:
YEAR OF DEDUCTION
PERCENTAGE
1st
100%
(2) For deductions allowed over a two (2) year period by a
resolution described in subsection (g) that is adopted before
July 1, 2013:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
(3) For deductions allowed by a resolution described in
subsection (g) that is adopted after June 30, 2013:
(A) the percentages described in section 4.5(d)(1) through
4.5(d)(10) of this chapter, as applicable, depending on the
number of years the deduction is allowed; or
(B) the percentages determined in an alternative
abatement schedule under section 17 of this chapter.
(j) The amount of the deduction determined under subsection (h)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If:
(A) a general reassessment of real property under IC 6-1.1-4-4;
or
(B) a reassessment under a county's reassessment plan
prepared under IC 6-1.1-4-4.2;
occurs within the period of the deduction, the amount of the
assessed value determined under subsection (h)(1) shall be
adjusted to reflect the percentage increase or decrease in assessed
valuation that resulted from the reassessment.
(2) If an appeal of an assessment is approved and results in a
reduction of the assessed value of the property, the amount of a
deduction under this section shall be adjusted to reflect the
percentage decrease that resulted from the appeal.
(k) The maximum amount of a deduction under this section may not
exceed the lesser of:
(1) the annual amount for which the eligible vacant building was
offered for lease or rent by the owner or a previous owner during
the period the eligible vacant building was unoccupied; or
(2) an amount, as determined by the designating body in its
discretion, that is equal to the annual amount for which similar
buildings in the county or contiguous counties were leased or
rented or offered for lease or rent during the period the eligible
vacant building was unoccupied.
(l) The department of local government finance may adopt rules
under IC 4-22-2 to implement this section.
(b) If notice of the assessed valuation or new assessment for a 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 the notice is mailed to the property owner at the address shown on the records of the township or county assessor.
(c) The deduction application required by this section must contain the following information:
(1) The name of the property owner and, if applicable, the
(2) A description of the property for which a deduction is claimed.
(3) The amount of the deduction claimed for the first year of the deduction.
(4) Any other information required by the department of local government finance or the designating body.
(d) A deduction application filed under this section applies to the year in which the property owner or a tenant
being filed.
(e) A property owner that desires to obtain the deduction provided
by section 4.8 of this chapter but that did not 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. A deduction application filed under this subsection applies to the
year in which the deduction application is filed and the number of
immediately following year if the deduction is allowed for a two (2)
year period, years specified in a resolution described in section
4.8(g) of this chapter, without an additional deduction application
being filed. The amount of the deduction under this subsection is the
amount that would have been applicable to the year under section 4.8
of this chapter if the deduction application had been filed in accordance
with subsection (a) or (b).
(f) Subject to subsection (i), the county auditor shall do the
following:
(1) If a determination concerning 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 concerning 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.
(g) The amount and period of the deduction provided by section 4.8
of this chapter are not affected by a change in the ownership of the
eligible vacant building or a change in the property owner's tenant, if
the new property owner or the new tenant:
(1) continues to occupy the eligible vacant building 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) Before the county auditor acts under subsection (f), the county
auditor may request that the township assessor of the township in
which the eligible vacant building is located, or the county assessor if
there is no township assessor for the township, review the deduction
application.
(i) A property owner may appeal a determination of the county
auditor under subsection (f) by requesting in writing a preliminary
conference with the county auditor not more than forty-five (45) days
after the county auditor gives the property owner notice of the
determination. An appeal under this subsection shall be processed and
determined in the same manner that an appeal is processed and
determined under IC 6-1.1-15.
(j) In addition to the requirements of subsection (c), a property
owner that files a deduction application under this section 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 4.8 of this chapter. This information
must be included in the deduction application and must also be updated
each year in which the deduction is applicable:
(1) at the same time that the property owner or the property
owner's tenant files a personal property tax return for property
located at the eligible vacant building for which the deduction
was granted; or
(2) if subdivision (1) does not apply, before May 15 of each year.
(k) The following information is a public record if filed under this
section:
(1) The name and address of the property owner.
(2) The location and description of the eligible vacant building for
which the deduction was granted.
(3) Any information concerning the number of employees at the
eligible vacant building for which the deduction was granted,
including estimated totals that were provided as part of the
statement of benefits.
(4) Any information concerning the total of the salaries paid to the
employees described in subdivision (3), including estimated totals
that are provided as part of the statement of benefits.
(5) Any information concerning the assessed value of the eligible
vacant building, including estimates that are provided as part of
the statement of benefits.
(l) Information concerning the specific salaries paid to individual
employees by the property owner or tenant is confidential.
(1) property that is the subject of a deduction application is an eligible vacant building with at least fifty thousand (50,000) square feet and, as a condition of obtaining the deduction, the deduction applicant agrees to use the eligible vacant building for
industrial or commercial purposes;
(2) as a condition of obtaining a deduction under this chapter, the
deduction applicant agrees to invest at least ten million dollars
($10,000,000) in property that is eligible for a deduction under
this chapter;
(3) property that is the subject of a deduction application consists
of a proposed rehabilitation of property in a designated downtown
area; or
(4) the property that is the subject of a deduction application is or
will be located in a county in which:
(A) the average annualized unemployment rate in each of the
two (2) calendar years immediately preceding the current
calendar year exceeded the statewide average annualized
unemployment rate for each of the same calendar years by at
least two percent (2%); or
(B) the average annualized unemployment rate in the
immediately preceding calendar year was at least double the
statewide average annualized unemployment rate for the same
period;
as determined by the department of workforce development.
(b) A designating body may enhance under this section the
deduction schedule that would otherwise apply to tangible property
described in subsection (a) to provide a deduction equal to one hundred
percent (100%) of the gross assessed value of property for up to three
(3) consecutive years, beginning with the first year that the property is
eligible for a deduction under this chapter. If the deduction application
is for a deduction under section 4.8 of this chapter that is made before
July 1, 2013, the designating body may extend under this section the
maximum term of the deduction from two (2) to three (3) years.
(c) A designating body may enhance the deduction as provided in
subsection (b) in the resolution designating the number of years to
which a deduction allowed under section 3, 4.5, or 4.8 of this chapter
applies. The designating body may grant an enhancement under the
terms and conditions specified in the resolution. Before adopting a
resolution under this subsection, the designating body shall conduct a
public hearing on the resolution. Notice of the public hearing shall be
published in accordance with IC 5-3-1. In addition, the designating
body shall notify each taxing unit within the taxing district where the
property is or will be located of the proposed resolution, including the
date and time of the public hearing. If a resolution is adopted under this
section, the designating body shall deliver a copy of the adopted
resolution to the:
(1) county auditor; and
(2) township assessor for the township where the property is located or, if there is no township assessor, the county assessor;
within thirty (30) days after its adoption.
(d) A public hearing or resolution under this section may be combined with any other public hearing or resolution required under this chapter.
(e) For purposes of applying this section to property described in subsection (a)(3), the fiscal body of a city or town may by ordinance designate any part of:
(1) the central business district of a city or town; or
(2) any commercial or mixed use area within a neighborhood of a city or town that has traditionally served, since the founding of the community, as the retail service and communal focal point within the community;
as a designated downtown area. The ordinance must include a simplified description of the boundaries of the area by describing its location in relation to public ways, streams, or otherwise. The fiscal body may designate a maximum of fifteen percent (15%) of the total geographic territory of the city or town as a designated downtown area. A resolution adopted under subsection (c) concerning property described in subsection (a)(3) must include a certified copy of the ordinance adopted under this subsection.
(1) The total amount of the taxpayer's investment in real and personal property.
(2) The number of new full-time equivalent jobs created.
(3) The average wage of the new employees compared to the state minimum wage.
(4) The infrastructure requirements for the taxpayer's investment.
(b) An alternative abatement schedule must specify the percentage amount of the deduction for each year of the deduction. An alternative abatement schedule may not exceed ten (10) years.
