Bill Text: IN SB0585 | 2011 | Regular Session | Introduced
Bill Title: Certified technology parks.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2011-04-04 - Referred to Committee on Ways and Means pursuant to House Rule 127 [SB0585 Detail]
Download: Indiana-2011-SB0585-Introduced.html
Citations Affected: IC 36-7-32.
Synopsis: Certified technology parks. Permits 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. Permits a certified
technology park to apply to the Indiana economic development
corporation to redraw the boundaries of its district at the time of a
recertification. Requires the Indiana economic development
corporation to redraw the district if the corporation finds that certain
conditions are present.
Effective: July 1, 2011.
January 20, 2011, read first time and referred to Committee on Commerce & Economic
Development.
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(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.
(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.
(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.
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.
(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 shall 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.
(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.
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.
(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.