Bill Text: IN SB0302 | 2012 | Regular Session | Amended
Bill Title: Taxation.
Spectrum: Slight Partisan Bill (Republican 5-3)
Status: (Enrolled - Dead) 2012-03-20 - Signed by the Governor [SB0302 Detail]
Download: Indiana-2012-SB0302-Amended.html
Citations Affected: IC 6-1.1.
Synopsis: Technology equipment property tax exemption. Provides
that the property tax exemption for qualified enterprise information
technology equipment applies only to property located in a high
technology district area designated by the fiscal body of the county or
municipality. Specifies the procedure for the designation of such an
area. Provides that an entity that leases qualified property for use in a
facility or data center dedicated to computing, networking, or data
storage activities is also eligible for the exemption. (Current law
provides that only a business that operates such a facility is eligible for
the exemption.) Requires that at least $10,000,000 must be invested in
the facility or data center after June 30, 2009, by the entity entering into
the agreement for the exemption and by the lessor of the qualified
property (if the business is a lessee) and all lessees of qualified
property.
Effective: July 1, 2012.
January 5, 2012, read first time and referred to Committee on Commerce & Economic
Development.
January 9, 2012, pursuant to Senate Rule 68(b); reassigned to Committee on Tax and
Fiscal Policy.
January 19, 2012, reported favorably _ Do Pass.
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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:
(A) operates; or
(B) leases qualified property for use in:
one (1) or more facilities or data centers dedicated to computing, networking, or data storage activities.
(2) The
(3) The entity,
entity is a lessee), and all lessees of qualified property invest
in the aggregate at least ten million dollars ($10,000,000) in real
and personal property in Indiana at the facility or data center
after June 30, 2009.
(4) The average employee wage of the entity employees who are
located in the county or municipality and engaged in the
operation of the facility or data center is at least one hundred
twenty-five percent (125%) of the county average wage for each
the county in which the entity conducts business operations.
facility or data center operates.
(c) As used in this section, "enterprise information technology
equipment" means the following:
(1) Hardware supporting computing, networking, or data storage
functions, 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, "high technology district area" means
all or any part of the area that:
(1) is within the corporate limits of a county or municipality;
and
(2) has been designated as a high technology district area by
the appropriate designating body under subsection (h).
(e) (f) As used in this section, "municipality" has the meaning set
forth in IC 36-1-2-11.
(f) (g) As used in this section, "qualified property" means enterprise
information technology equipment purchased after June 30, 2009, and
any additions to or replacements to such property.
(g) (h) Before adopting a final resolution under subsection (h) to
provide a property tax exemption, to designate a high technology
district area, a designating body must first adopt a declaratory
resolution provisionally specifying finding that qualified property
owned by a particular eligible business is exempt from property
taxation. all or a part of the area within the designating body's
jurisdiction is a high technology district area. The designating body
shall file a declaratory resolution adopted under this subsection must
include a description of the affected area and must be filed 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 then 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 before January 1, 2017, determining whether to
designate a high technology district area and modifying,
confirming, or rescinding the declaratory resolution. This
determination of the designating body is final.
(h) Before January 1, 2017, (i) A designating body may, after
following the procedures of subsection (g), adopt adopting a final
resolution providing that qualified property owned by a particular
under subsection (h) designating an area as a high technology
district area, enter into an agreement with an eligible business is
exempt from to grant the eligible business a property taxation. tax
exemption. 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 (h) 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) (j) If a designating body adopts a final resolution under
subsection (h) and enters into an agreement under subsection (h) (i) to
provide a property tax exemption, the property tax exemption continues
for the period specified in the agreement, notwithstanding the January
1, 2017, deadline to adopt a final resolution under subsection (h).
