April 5, 2011
ENGROSSED
SENATE BILL No. 585
_____
DIGEST OF SB 585
(Updated March 31, 2011 10:15 am - DI 113)
Citations Affected: IC 36-7.
Synopsis: Certified technology parks. Allows a certified technology
park to capture incremental state income and sales taxes and local
income taxes for a business that incubated in the park and then
relocates outside the park but within the same county. Phases out the
amount of the captured increment over five years. Allows a certified
technology park to apply to the Indiana economic development
corporation (IEDC) to redraw the boundaries of its district at the time
of a recertification. Allows the IEDC to redraw the district if the IEDC
finds that certain conditions are present.
Effective: July 1, 2011.
Lanane, Young R Michael
(HOUSE SPONSORS _ STEMLER, AUSTIN, LUTZ, RESKE)
January 20, 2011, read first time and referred to Committee on Commerce & Economic
Development.
February 15, 2011, amended, reported favorably _ Do Pass.
February 17, 2011, read second time, ordered engrossed.
February 18, 2011, engrossed.
February 22, 2011, read third time, passed. Yeas 49, nays 0.
HOUSE ACTION
March 28, 2011, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
April 4, 2011, amended, reported _ Do Pass. Referred to Committee on Ways and Means
pursuant to Rule 127.
April 5, 2011
First Regular Session 117th General Assembly (2011)
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ENGROSSED
SENATE BILL No. 585
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 36-7-32-6; (11)ES0585.1.1. -->
SECTION 1. IC 36-7-32-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 6. As used in this
chapter, "gross retail base period amount" means the aggregate amount
of state gross retail and use taxes remitted under IC 6-2.5
during the
full state fiscal year that precedes the date on which the certified
technology park was designated under section 11 of this chapter:
(1) by the businesses operating in the territory comprising a
certified technology park during the full state fiscal year that
precedes the date on which the certified technology park was
designated under section 11 of this chapter;
or
(2) in the case of a certified technology park modified under
section 10(c) of this chapter, by the businesses operating in the
territory comprising a certified technology park during:
(A) the full state fiscal year that precedes the date on which
the certified technology park was designated under section
11 of this chapter; and
(B) the full state fiscal year that precedes the date on which
the certified technology park was modified under section
10(c) of this chapter.
SOURCE: IC 36-7-32-6.5; (11)ES0585.1.2. -->
SECTION 2. IC 36-7-32-6.5, AS ADDED BY P.L.199-2005,
SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 6.5. As used in this chapter, "gross retail
incremental amount" means the remainder of:
(1) the aggregate amount of state gross retail and use taxes that
are remitted under IC 6-2.5 by businesses operating in the
territory comprising a certified technology park during a state
fiscal year; minus
(2) the gross retail base period amount;
as determined by the department of state revenue. However, the gross
retail incremental amount may be temporarily increased as
provided in section 10.5 of this chapter.
SOURCE: IC 36-7-32-8; (11)ES0585.1.3. -->
SECTION 3. IC 36-7-32-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 8. (a) As used in this
chapter, "income tax base period amount" means the aggregate amount
of the following taxes paid for work in the certified technology park
for the state fiscal year that precedes the date on which the
certified technology park was designated under section 11 of this
chapter by employees employed in the territory comprising a certified
technology park with respect to wages and salary earned for work in the
certified technology park for the state fiscal year that precedes the date
on which the certified technology park was designated under section 11
of this chapter:
(1) The adjusted gross income tax.
(2) The county adjusted gross income tax.
(3) The county option income tax.
(4) The county economic development income tax.
(b) However, in the case of a certified technology park that was
modified under section 10(c) of this chapter, the term means taxes
paid for work by employees who are employed in the territory
comprising a certified technology park for:
(1) the state fiscal year that precedes the date on which the
certified technology park was designated under section 11 of
this chapter; and
(2) the state fiscal year that precedes the date on which the
certified technology park was modified under section 10(c) of
this chapter.
SOURCE: IC 36-7-32-8.5; (11)ES0585.1.4. -->
SECTION 4. IC 36-7-32-8.5, AS ADDED BY P.L.199-2005,
SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 8.5. As used in this chapter, "income tax
incremental amount" means the remainder of:
(1) the total amount of state adjusted gross income taxes, county
adjusted gross income tax, county option income taxes, and
county economic development income taxes paid by employees
employed in the territory comprising the certified technology park
with respect to wages and salary earned for work in the territory
comprising the certified technology park for a particular state
fiscal year; minus
(2) the sum of the:
(A) income tax base period amount; and
(B) tax credits awarded by the economic development for a
growing economy board under IC 6-3.1-13 to businesses
operating in a certified technology park as the result of wages
earned for work in the certified technology park for the state
fiscal year;
as determined by the department of state revenue. However, the
income tax incremental amount may be temporarily increased as
provided in section 10.5 of this chapter.
SOURCE: IC 36-7-32-10; (11)ES0585.1.5. -->
SECTION 5. IC 36-7-32-10, AS AMENDED BY P.L.203-2005,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 10. (a) A unit may apply to the Indiana economic
development corporation for designation of all or part of the territory
within the jurisdiction of the unit's redevelopment commission as a
certified technology park and to enter into an agreement governing the
terms and conditions of the designation. The application must be in a
form specified by the Indiana economic development corporation and
must include information the corporation determines necessary to make
the determinations required under section 11 of this chapter.
(b) This subsection applies only to a unit in which a certified
technology park designated before January 1, 2005, is located. A unit
may apply to the Indiana economic development corporation for
permission to expand the unit's certified technology park to include
territory that is adjacent to the unit's certified technology park but
located in another county. The corporation shall grant the unit
permission to expand the certified technology park if the unit and the
redevelopment commission having jurisdiction over the adjacent
territory approve the proposed expansion in a resolution. A certified
copy of each resolution approving the proposed expansion must be
attached to the application submitted under this subsection.
(c) At the same time as the review and recertification process
under section 11 of this chapter, a unit may apply to the Indiana
economic development corporation for permission to modify the
territory of a certified technology park located within the unit. The
Indiana economic development corporation may grant the unit
permission to modify the territory of the certified technology park
if the corporation finds all the following conditions are satisfied:
(1) The unit approves the proposed modification in a
resolution and a certified copy of the resolution is attached to
the application.
(2) The application is in a form specified by the Indiana
economic development corporation and includes information
the corporation determines necessary to make the
determinations required by this subsection and section 11 of
this chapter.
(3) The territory contained a business that:
(A) was located in the certified technology park on the date
that the certified technology park was designated under
section 11 of this chapter;
(B) successfully grew its business within the certified
technology park; and
(C) subsequently relocated within the county in which the
certified technology park is located but outside the
territory of the certified technology park, and this
relocation contributed to:
(i) the gross retail base period amount being greater than
the gross retail incremental amount; and
(ii) the gross income tax base period amount being
greater than the income tax incremental amount;
for the certified technology park.
(4) The modification of the territory will enhance the
development of the certified technology park.
SOURCE: IC 36-7-32-10.5; (11)ES0585.1.6. -->
SECTION 6. IC 36-7-32-10.5 IS ADDED TO THE INDIANA
CODE AS A
NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2011]:
Sec. 10.5. (a) The gross retail
incremental amount and the income tax incremental amount shall
be temporarily increased if the Indiana economic development
corporation finds that a business:
(1) was located in the certified technology park on the date
that the certified technology park was designated under
section 11 of this chapter;
(2) successfully grew its business within the certified
technology park; and
(3) subsequently relocated within the county in which the
certified technology park is located but outside the territory
of the certified technology park, and this relocation
contributed to:
(A) the gross retail base period amount being greater than
the gross retail incremental amount; and
(B) the gross income tax base period amount being greater
than the income tax incremental amount;
for the certified technology park.
(b) The amount of the temporary increase in the gross retail
incremental amount and the income tax incremental amount is
equal to that part of the gross retail incremental amount and the
income tax incremental amount attributable to the business in the
last state fiscal year before its relocation multiplied by the
following:
(1) Eighty percent (80%) for the first year following the
relocation.
(2) Sixty percent (60%) for the second year following the
relocation.
(3) Forty percent (40%) for the third year following the
relocation.
(4) Twenty percent (20%) for the fourth year following the
relocation.
After the fourth year following the relocation, the gross retail
incremental amount and the income tax incremental amount is the
amount determined without regard to this section.
(c) The Indiana economic development corporation shall
provide the unit and department of state revenue a written
confirmation of its findings. Not later than sixty (60) days after
receiving a copy of the confirmation, the department of state
revenue shall determine the gross retail incremental amount and
the income tax incremental amount to be used after applying the
temporary increase.
SOURCE: IC 36-7-32-12; (11)ES0585.1.7. -->
SECTION 7. IC 36-7-32-12, AS AMENDED BY P.L.154-2007,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2011]: Sec. 12. A redevelopment commission and the
legislative body of the unit that established the redevelopment
commission may enter into an agreement with the Indiana economic
development corporation establishing the terms and conditions
governing a certified technology park designated under section 11 of
this chapter
or modified under section 10(c) of this chapter. Upon
designation
or modification of the certified technology park under the
terms of the agreement, the subsequent failure of any party to comply
with the terms of the agreement may result in the termination or
rescission of the designation of the area as a certified technology park.
The agreement must include the following provisions:
(1) A description of the area to be included within the certified
technology park.
(2) Covenants and restrictions, if any, upon all or a part of the
properties contained within the certified technology park and
terms of enforcement of any covenants or restrictions.
(3) The financial commitments of any party to the agreement and
of any owner or developer of property within the certified
technology park.
(4) The terms of any commitment required from a postsecondary
educational institution or private research based institute for
support of the operations and activities within the certified
technology park.
(5) The terms of enforcement of the agreement, which may
include the definition of events of default, cure periods, legal and
equitable remedies and rights, and penalties and damages, actual
or liquidated, upon the occurrence of an event of default.
(6) The public facilities to be developed for the certified
technology park and the costs of those public facilities, as
approved by the Indiana economic development corporation.
SOURCE: IC 36-7-32-20; (11)ES0585.1.8. -->
SECTION 8. IC 36-7-32-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2011]: Sec. 20. (a) After entering
into an agreement under section 12 of this chapter, the redevelopment
commission shall send to the department of state revenue:
(1) a certified copy of the designation of the certified technology
park under section 11 of this chapter
or modification under
section 10(c) of this chapter;
(2) a certified copy of the agreement entered into under section 12
of this chapter; and
(3) a complete list of the employers in the certified technology
park and the street names and the range of street numbers of each
street in the certified technology park.
The redevelopment commission shall update the list provided under
subdivision (3) before July 1 of each year.
(b) Not later than sixty (60) days after receiving a copy of the
designation
or modification of the certified technology park, the
department of state revenue shall determine the gross retail base period
amount and the income tax base period amount.