Bill Text: IN SB0106 | 2011 | Regular Session | Introduced
Bill Title: Computer facility property tax exemption.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-01-05 - First reading: referred to Committee on Tax and Fiscal Policy [SB0106 Detail]
Download: Indiana-2011-SB0106-Introduced.html
Citations Affected: IC 6-1.1-10-44.
Synopsis: Computer facility property tax exemption. Provides that a
taxpayer qualifies for the property tax exemption for a data warehouse
if the taxpayer is either a lessor or lessee and the lessor and all lessees
together invest at least $10,000,000 at the facility or data center.
Provides that the exemption applies to the originally purchased
enterprise information technology equipment and all additions to and
replacements of the equipment.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) a county that does not contain a consolidated city; or
(2) a municipality.
(b) As used in this section, "eligible business" means an entity that meets the following requirements:
(1) The entity is engaged in a business that operates one (1) or more facilities dedicated to computing, networking, or data storage activities.
(2) The entity is located in a facility or data center in Indiana.
(3) The entity invests in the aggregate at least ten million dollars ($10,000,000) in real and personal property in Indiana after June 30, 2009. The investment requirement is satisfied if:
(A) the entity is either a lessor or lessee at the facility or data center; and
(B) the entity, the lessor (if the entity is a lessee), and all lessees invest in the aggregate at the facility or data center at least ten million dollars ($10,000,000) in real and personal property.
(4) The average employee wage of the entity is at least one hundred twenty-five percent (125%) of the county average wage for each county in which the entity conducts business operations.
(c) As used in this section, "enterprise information technology equipment" means the following:
(1) Hardware supporting computing, networking, or data storage function, including servers and routers.
(2) Networking systems having an industry designation as equipment within the "enterprise" or "data center" class of networking systems that support the computing, networking, or data storage functions.
(3) Generators and other equipment used to ensure an uninterrupted power supply to equipment described in subdivision (1) or (2).
The term does not include computer hardware designed for single user, workstation, or departmental level use.
(d) As used in this section, "fiscal body" has the meaning set forth in IC 36-1-2-6.
(e) As used in this section, "municipality" has the meaning set forth in IC 36-1-2-11.
(f) As used in this section, "qualified property" means enterprise information technology equipment purchased after June 30, 2009. The term includes all additions to and replacements of the enterprise information technology equipment.
(g) Before adopting a final resolution under subsection (h) to provide a property tax exemption, a designating body must first adopt a declaratory resolution provisionally specifying that qualified property owned by a particular eligible business is exempt from property taxation. The designating body shall file a declaratory resolution adopted under this subsection with the county assessor. After a designating body adopts a declaratory resolution specifying that qualified property owned by a particular eligible business is exempt from property taxation, the designating body shall publish notice of the adoption and the substance of the declaratory resolution in accordance with IC 5-3-1 and file a copy of the notice and the declaratory resolution with each taxing unit in the county. The notice must specify a date when the designating body will receive and hear all remonstrances and objections from interested persons. The designating
body shall file the notice and the declaratory resolution with the
officers of the taxing units who are authorized to fix budgets, tax rates,
and tax levies under IC 6-1.1-17-5 at least ten (10) days before the date
for the public hearing. After the designating body considers the
testimony presented at the public hearing, the designating body may
adopt a second and final resolution under subsection (h). The second
and final resolution under subsection (h) may modify, confirm, or
rescind the declaratory resolution.
(h) Before January 1, 2013, a designating body may after following
the procedures of subsection (g) adopt a final resolution providing that
qualified property owned by a particular eligible business is exempt
from property taxation. In the case of a county, the exemption applies
only to qualified property that is located in unincorporated territory of
the county. In the case of a municipality, the exemption applies only to
qualified property that is located in the municipality. The property tax
exemption applies to the qualified property only if the designating body
and the eligible business enter into an agreement concerning the
property tax exemption. The agreement must specify the duration of the
property tax exemption. The agreement may specify that if the
ownership of qualified property is transferred by an eligible business,
the transferee is entitled to the property tax exemption on the same
terms as the transferor. If a designating body adopts a final resolution
under this subsection and enters into an agreement with an eligible
business, the qualified property owned by the eligible business is
exempt from property taxation as provided in the resolution and the
agreement.
(i) If a designating body adopts a final resolution and enters into an
agreement under subsection (h) to provide a property tax exemption,
the property tax exemption continues for the period specified in the
agreement, notwithstanding the January 1, 2013, deadline to adopt a
final resolution under subsection (h).
