|
|
|
IC 5-28-15-0.2
Application of certain amendments to prior statute
Sec. 0.2. The addition of IC 4-4-6.1-1.7 (before its repeal, now
codified in section 4 of this chapter) by P.L.25-1995 applies to
property taxes first due and payable after December 31, 1996.
As added by P.L.220-2011, SEC.108.
IC 5-28-15-0.3
Certain actions of zone business considered compliance with prior
statute
Sec. 0.3. (a) As used in this section, "zone business" refers to a
business that accesses at least one (1) tax credit or exemption
incentive under IC 4-4-6.1 (before its repeal).
(b) Notwithstanding IC 4-4-6.1-2.5 (before its repeal), as amended
by P.L.8-1994, a zone business that after August 2, 1993, and on or
before December 31, 1993, tendered to the enterprise zone board
created under IC 4-4-6.1-1 (before its repeal):
(1) a verified summary of the amount of tax credits and
exemptions claimed by the business in the preceding year, as
required under IC 4-4-6.1-2.5(a)(1) (before its repeal); and
(2) payment of registration fees, as required under
IC 4-4-6.1-2.5(a)(2) (before its repeal);
is deemed to have complied with IC 4-4-6.1-2.5(a) (before its repeal)
and may not be denied any of the incentives granted to a zone
business if the zone business resubmits the verified summary and the
zone business' registration fee and pays an additional civil penalty
equal to the greater of twenty-five dollars ($25) or fifteen percent
(15%) of its registration fees to the enterprise zone board on or
before May 1, 1994.
As added by P.L.220-2011, SEC.109.
IC 5-28-15-0.4
Certain actions of zone business considered compliance with prior
statute; state and political subdivision authorized to take certain
actions; fees and payments
Sec. 0.4. (a) As used in this section, "board" refers to the
enterprise zone board established by IC 4-4-6.1-1 (before its repeal).
(b) A zone business that:
(1) submitted to the board, on a form prescribed by the board,
a verified summary concerning the amount of tax credits and
exemptions claimed by the business in the preceding year; and
(2) tendered payment of the amount specified in
IC 4-4-6.1-2(4)(A) (before its repeal) to the board;
in compliance with IC 4-4-6.1-2.5(a) (before its repeal and as
effective June 1, 1995) after May 31, 1995, and before June 16,
1995, shall be treated for the purposes of IC 4-4-6.1-2.5 (before its
repeal and as effective June 1, 1995), as if the zone business had
complied with IC 4-4-6.1-2.5 (before its repeal and as effective June
1, 1995) before June 1, 1995.
(c) An official of the state or a political subdivision is authorized
to take the actions necessary to:
(1) reinstate the credits and exemptions that would have been
waived without this section;
(2) reinstate, effective retroactively to May 31, 1995, a business
that is described by this section as a zone business without
requiring the business to petition for readmission or to pay any
civil penalties; and
(3) refund any civil penalties paid under IC 4-4-6.1-2.5 (before
its repeal), as effective June 1, 1995.
(d) Notwithstanding any other statute or rule, a payment or fee
that is required from a zone business identified in subsection (b) to
qualify the zone business for the credits and exemptions that would
have been waived without this section may be paid by the zone
business before June 1, 1996.
As added by P.L.220-2011, SEC.110.
IC 5-28-15-0.5
Treatment of certain persons as having qualified for incentives
Sec. 0.5. A person that:
(1) did not qualify in any taxable year beginning in 1995, 1996,
or 1997 for enterprise zone incentives under IC 4-4-6.1-1.7
(before its amendment by P.L.14-1997 and before its repeal);
(2) would have qualified for the enterprise zone incentives
under IC 4-4-6.1-1.7 (as amended by P.L.14-1997 and before its
repeal); and
(3) received enterprise zone incentives for taxable years
beginning in 1995, 1996, or 1997;
shall be treated for each of the years described in subdivision (1) as
having qualified for the incentives to the same extent as if the
amendment by P.L.14-1997 to IC 4-4-6.1-1.7 (before its repeal) had
been enacted before the enterprise zone incentives accrued to the
person.
As added by P.L.220-2011, SEC.111.
IC 5-28-15-1
"High technology business operations"; "advanced computing";
"advanced materials"; "biotechnology"; "electronic device
technology"; "environmental technology"; "medical device
technology"
Sec. 1. (a) As used in this chapter, "high technology business
operations" means the operations in Indiana of a business engaged in
the following:
(1) Advanced computing.
(2) Creation of advanced materials.
(3) Biotechnology.
(4) Electronic device technology.
(5) Environmental technology.
IC 5-28-15-2
"U.E.A."
Sec. 2. As used in this chapter, "U.E.A." refers to an urban
enterprise association established under section 13 of this chapter.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-4
Incentives not available to certain licensees; exceptions
Sec. 4. (a) Except as provided in subsection (b):
(1) a package liquor store that holds a liquor dealer's permit
under IC 7.1-3-10; or
(2) any other entity that is required to operate under a license
issued under IC 7.1;
is not eligible for incentives available to zone businesses.
(b) Subsection (a) does not apply to the recipient of an incentive
if:
(1) the recipient entered into a written agreement concerning the
incentive under IC 4-4-6.1-8 (transferred to section 17 of this
chapter) before July 1, 1995;
(2) the recipient is described in:
(A) IC 7.1-3-3-1;
(B) IC 7.1-3-8-1;
(C) IC 7.1-3-13-1; or
(D) IC 7.1-5-7-11; or
(3) the recipient:
(A) holds a license under IC 7.1; and
(B) receives at least sixty percent (60%) of the recipient's
annual revenue from retail food sales.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-5
Powers of board; assistance by zone businesses
Sec. 5. (a) The board has the following powers, in addition to
other powers that are contained in this chapter:
(1) To review and approve or reject all applicants for enterprise
zone designation, according to the criteria for designation that
this chapter provides.
(2) To waive or modify rules as provided in this chapter.
(3) To provide a procedure by which enterprise zones may be
monitored and evaluated on an annual basis.
(4) To adopt rules for the disqualification of a zone business
from eligibility for any or all incentives available to zone
businesses, if that zone business does not do one (1) of the
following:
(A) If all its incentives, as contained in the summary
required under section 7 of this chapter, exceed one
thousand dollars ($1,000) in any year, pay a registration fee
to the board in an amount equal to one percent (1%) of all its
incentives.
(B) Use all its incentives, except for the amount of the
registration fee, for its property or employees in the zone.
(C) Remain open and operating as a zone business for twelve
(12) months of the assessment year for which the incentive
is claimed.
(5) To disqualify a zone business from eligibility for any or all
incentives available to zone businesses in accordance with the
procedures set forth in the board's rules.
(6) After a recommendation from a U.E.A., to modify an
enterprise zone boundary if the board determines that the
modification:
(A) is in the best interests of the zone; and
(B) meets the threshold criteria and factors set forth in
section 9 of this chapter.
(7) To employ staff and contract for services.
(8) To receive funds from any source and expend the funds for
the administration and promotion of the enterprise zone
program.
(9) To make determinations under IC 6-3.1-11 concerning the
designation of locations as industrial recovery sites.
(10) To make determinations under IC 6-3.1-11 concerning the
disqualification of persons from claiming credits provided by
that chapter in appropriate cases.
(11) To make determinations under IC 6-3.1-11.5 concerning
the designation of locations as military base recovery sites and
the availability of the credit provided by IC 6-3.1-11.5 to
persons making qualified investments in military base recovery
sites.
(12) To make determinations under IC 6-3.1-11.5 concerning
the disqualification of persons from claiming the credit
provided by IC 6-3.1-11.5 in appropriate cases.
(b) In addition to a registration fee paid under subsection
(a)(4)(A), each zone business that receives an incentive described in
section 3 of this chapter shall assist the zone U.E.A. in an amount
determined by the legislative body of the municipality in which the
zone is located. If a zone business does not assist a U.E.A., the
legislative body of the municipality in which the zone is located may
pass an ordinance disqualifying a zone business from eligibility for
all credits or incentives available to zone businesses. If a legislative
body disqualifies a zone business under this subsection, the
legislative body shall notify the board, the department of local
government finance, and the department of state revenue in writing
not more than thirty (30) days after the passage of the ordinance
disqualifying the zone business. Disqualification of a zone business
under this section is effective beginning with the taxable year in
which the ordinance disqualifying the zone business is adopted.
As added by P.L.4-2005, SEC.34. Amended by P.L.214-2005, SEC.8;
P.L.146-2008, SEC.42.
IC 5-28-15-7
Annual summary of tax credits and exemptions claimed and
submission of payment; extension of time; waiver of incentives and
other sanctions for noncompliance
Sec. 7. (a) Subject to subsections (c) and (d), a zone business that
claims any of the incentives available to zone businesses shall, by
letter postmarked before June 1 of each year:
(1) submit to the board and to the zone U.E.A., on a form
prescribed by the board, a verified summary concerning the
amount of tax credits and exemptions claimed by the business
in the preceding year; and
(2) pay the amount specified in section 5(a)(4) of this chapter
to the board.
(b) In order to determine the accuracy of the summary submitted
under subsection (a), the board is entitled to obtain copies of a zone
business's tax records directly from the department of state revenue,
the department of local government finance, or a county official,
notwithstanding any other law. A summary submitted to a board or
zone U.E.A. or a record obtained by the board under this section is
confidential. A board member, a U.E.A. member, or an agent of a
board member or U.E.A. member who knowingly or intentionally
discloses information that is confidential under this section commits
a Class A misdemeanor.
(c) The board may grant one (1) extension of the time allowed to
comply with subsection (a) under the provisions of this subsection.
To qualify for an extension, a zone business must apply to the board
by letter postmarked before June 1. The application must be in the
form specified by the board. The extension may not exceed forty-five
(45) days under rules adopted by the board under IC 4-22-2.
(d) If a zone business that did not comply with subsection (a)
before June 1 and did not file for an extension under subsection (c)
before June 1 complies with subsection (a) before July 16, the
amount of the tax credit and exemption incentives for the preceding
year that were otherwise available to the zone business because the
business was a zone business are waived, unless the zone business
pays to the board a penalty of fifteen percent (15%) of the amount of
the tax credit and exemption incentives for the preceding year that
were otherwise available to the zone business because the business
was a zone business. A zone business that pays a penalty under this
subsection for a year must pay the penalty to the board before July
16 of that year. The board shall deposit any penalty payments
received under this subsection in the enterprise zone fund.
(e) This subsection is in addition to any other sanction imposed by
subsection (d) or any other law. If a zone business fails to comply
with subsection (a) before July 16 and does not pay any penalty
required under subsection (d) by letter postmarked before July 16 of
that year, the zone business is:
(1) denied all the tax credit and exemption incentives available
to a zone business because the business was a zone business for
that year; and
(2) disqualified from further participation in the enterprise zone
program under this chapter until the zone business:
(A) petitions the board for readmission to the enterprise zone
program under this chapter; and
(B) pays a civil penalty of one hundred dollars ($100).
As added by P.L.4-2005, SEC.34.
IC 5-28-15-8
Request for records; confidentiality of records
Sec. 8. (a) This section applies to records and other information,
including records and information that are otherwise confidential,
maintained by the following:
(1) The board.
(2) A U.E.A.
(3) The department of state revenue.
(4) The corporation.
(5) The department of local government finance.
IC 5-28-15-9
Designation of enterprise zones; applications; evaluation criteria
and factors
Sec. 9. (a) The board may designate up to ten (10) enterprise
zones, in addition to any enterprise zones the federal government
may designate in Indiana. The board may by seven (7) affirmative
votes increase the number of enterprise zones above ten (10), but it
may not add more than two (2) new zones each year (excluding any
zone that may be added by the board in a municipality in which a
previously designated zone has expired) and may not add any new
zones after December 31, 2015. There may not be more than one (1)
enterprise zone in any municipality.
(b) After approval by resolution of the legislative body, the
executive of any municipality that is not an included town under
IC 36-3-1-7 may submit one (1) application to the board to have one
(1) part of the municipality designated as an enterprise zone. If an
application is denied, the executive may submit a new application.
The board shall provide application procedures.
(c) The board shall evaluate an enterprise zone application if it
finds that the following threshold criteria exist in a proposed zone:
(1) A poverty level in which twenty-five percent (25%) of the
households in the zone are below the poverty level as
established by the most recent United States census or an
average rate of unemployment for the most recent eighteen (18)
month period for which data is available that is at least one and
one-half (1 1/2) times the average statewide rate of
unemployment for the same eighteen (18) month period.
(2) A population of more than two thousand (2,000) but less
than ten thousand five hundred (10,500).
(3) An area of more than three-fourths (3/4) of a square mile but
less than four (4) square miles, with a continuous boundary
(using natural, street, or highway barriers when possible)
entirely within the applicant municipality. However, if the zone
includes a parcel of property that:
(A) is owned by the municipality; and
(B) has an area of at least twenty-five (25) acres;
the area of the zone may be increased above the four (4) square
mile limitation by an amount not to exceed the area of the
municipally owned parcel.
(4) Property suitable for the development of a mix of
commercial, industrial, and residential activities.
(5) The appointment of a U.E.A. that meets the requirements of
section 13 of this chapter.
(6) A statement by the applicant indicating its willingness to
provide certain specified economic development incentives.
(d) If an applicant has met the threshold criteria of subsection (c),
the board shall evaluate the application, arrive at a decision based on
the following factors, and either designate a zone or reject the
application:
(1) Level of poverty, unemployment, and general distress of the
area in comparison with other applicant and nonapplicant
municipalities and the expression of need for an enterprise zone
over and above the threshold criteria of subsection (c).
(2) Evidence of support for designation by residents,
businesses, and private organizations in the proposed zone, and
the demonstration of a willingness among those zone
constituents to participate in zone area revitalization.
(3) Efforts by the applicant municipality to reduce the
impediments to development in the zone area where necessary,
including but not limited to the following:
(A) A procedure for streamlining local government
regulations and permit procedures.
(B) Crime prevention activities involving zone residents.
(C) A plan for infrastructure improvements capable of
supporting increased development activity.
(4) Significant efforts to encourage the reuse of existing zone
structures in new development activities to preserve the existing
character of the neighborhood, where appropriate.
(5) The proposed managerial structure of the zone and the
capacity of the U.E.A. to carry out the goals and purposes of
this chapter.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-10
Expiration of enterprise zone; renewal
Sec. 10. (a) Subject to subsection (b), an enterprise zone expires
ten (10) years after the day on which it is designated by the board.
(b) In the period beginning December 1, 2008, and ending
December 31, 2014, an enterprise zone does not expire under this
section if the fiscal body of the municipality in which the enterprise
zone is located adopts a resolution renewing the enterprise zone for
an additional five (5) years. An enterprise zone may be renewed
under this subsection regardless of the number of times the enterprise
zone has been renewed under subsections (c) and (d). A municipal
fiscal body may adopt a renewal resolution and submit a copy of the
resolution to the board:
(1) before August 1, 2009, in the case of an enterprise zone that
expired after November 30, 2008, or is scheduled to expire
before September 1, 2009; or
(2) at least thirty (30) days before the expiration date of the
enterprise zone, in the case of an enterprise zone scheduled to
expire after August 31, 2009.
If an enterprise zone is renewed under this subsection after having
been renewed under subsection (d), the enterprise zone may not be
renewed after the expiration of this final five (5) year period.
(c) The two (2) year period immediately before the day on which
the enterprise zone expires is the phaseout period. During the
phaseout period, the board may review the success of the enterprise
zone based on the following criteria and may, with the consent of the
budget committee, renew the enterprise zone, including all provisions
of this chapter, for five (5) years:
(1) Increases in capital investment in the zone.
(2) Retention of jobs and creation of jobs in the zone.
(3) Increases in employment opportunities for residents of the
zone.
(d) If an enterprise zone is renewed under subsection (c), the two
(2) year period immediately before the day on which the enterprise
zone expires is another phaseout period. During the phaseout period,
the board may review the success of the enterprise zone based on the
criteria set forth in subsection (c) and, with the consent of the budget
committee, may again renew the enterprise zone, including all
provisions of this chapter, for a final period of five (5) years. The
zone may not be renewed after the expiration of this final five (5)
year period.
As added by P.L.4-2005, SEC.34. Amended by P.L.182-2009(ss),
SEC.80; P.L.1-2010, SEC.19.
IC 5-28-15-11
Closed or inactive military base
Sec. 11. (a) Notwithstanding any other provision of this chapter,
one (1) or more units (as defined in IC 36-1-2-23) may declare all or
any part of a military base or another military installation that is
inactive, closed, or scheduled for closure as an enterprise zone. The
declaration shall be made by a resolution of the legislative body of
the unit that contains the geographic area being declared an
enterprise zone. The legislative body must include in the resolution
that a U.E.A. is created or designate another entity to function as the
U.E.A. under this chapter. The resolution must also be approved by
the executive of the unit.
(b) If the resolution is approved, the executive shall file the
resolution and the executive's approval with the board. If an entity
other than a U.E.A. is designated to function as a U.E.A., the entity's
acceptance must be filed with the board along with the resolution.
The enterprise zone designation is effective on the first day of the
month following the day the resolution is filed with the board.
(c) Establishment of an enterprise zone under this section is not
subject to the limit of two (2) new enterprise zones each year under
section 9(a) of this chapter.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-12
Enlargement of enterprise zone
Sec. 12. The board may not approve the enlargement of an
enterprise zone's geographic boundaries unless the area to be
enlarged meets the criteria of economic distress set forth in section
9(c)(1) of this chapter.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-13
Urban enterprise associations; establishment
Sec. 13. (a) There is established in each applicant for designation
as an enterprise zone and in each enterprise zone an urban enterprise
association (U.E.A). The twelve (12) members of the U.E.A. shall be
chosen as follows:
(1) The governor shall appoint the following:
(A) One (1) state legislator whose district includes all or part
of the enterprise zone.
(B) One (1) representative of the corporation, who is not a
voting member of the U.E.A.
(2) The executive of the municipality in which the zone is
located shall appoint the following:
(A) One (1) representative of the plan commission having
jurisdiction over the zone, if any exists.
(B) One (1) representative of the municipality's department
that performs planning or economic development functions.
(C) Two (2) representatives of businesses located in the
zone, one (1) of whom shall be from a manufacturing
concern, if any exists in the zone.
(D) One (1) resident of the zone.
(E) One (1) representative of organized labor from the
building trades that represent construction workers.
(3) The legislative body of the municipality in which the zone
is located shall appoint, by majority vote, the following:
(A) One (1) member of the municipality's legislative body
whose district includes all or part of the zone.
(B) One (1) representative of a business located in the zone.
(C) Two (2) residents of the zone, who must not be members
of the same political party.
(b) Members of the U.E.A. serve four (4) year terms. The
appointing authority shall fill any vacancy for the balance of the
vacated term.
(c) Members may be dismissed only by the appointing authority
and only for just cause.
(d) The members shall elect a chairperson, a vice chairperson, and
a secretary by majority vote. This election shall be held every two (2)
years in the same month as the first meeting or whenever a vacancy
occurs. The U.E.A. shall meet at least once every three (3) months.
The secretary shall notify members of meetings at least two (2)
weeks in advance of meetings. The secretary shall provide a list of
members to each member and shall notify members of any changes
in membership.
(e) If an applicant for designation as an enterprise zone does not
receive that designation, the U.E.A. in that municipality is dissolved
when the application is rejected.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-14
Powers and duties of association
Sec. 14. (a) A U.E.A. shall do the following:
(1) Coordinate zone development activities.
(2) Serve as a catalyst for zone development.
(3) Promote the zone to outside groups and individuals.
(4) Establish a formal line of communication with residents and
businesses in the zone.
(5) Act as a liaison between residents, businesses, the
municipality, and the board for any development activity that
may affect the zone or zone residents.
(b) A U.E.A. may do the following:
(1) Initiate and coordinate any community development
activities that aid in the employment of zone residents, improve
the physical environment, or encourage the turnover or
retention of capital in the zone. These additional activities
include but are not limited to recommending to the municipality
the manner and purpose of expenditure of funds generated
under IC 36-7-14-39(g) or IC 36-7-15.1-26(g).
(2) Recommend that the board modify a zone boundary or
disqualify a zone business from eligibility for one (1) or more
benefits or incentives available to zone businesses.
(3) Incorporate as a nonprofit corporation. Such a corporation
may continue after the expiration of the zone in accordance
with the general principles established by this chapter. A U.E.A.
that incorporates as a nonprofit corporation under this
subdivision may purchase or receive real property from a
redevelopment commission under IC 36-7-14-22.2 or
IC 36-7-15.1-15.2.
(c) The U.E.A. may request, by majority vote, that the legislative
body of the municipality in which the zone is located modify or
waive any municipal ordinance or regulation that is in effect in the
zone. The legislative body may, by ordinance, waive or modify the
operation of the ordinance or regulation, if the ordinance or
regulation does not affect health (including environmental health),
safety, civil rights, or employment rights.
(d) The U.E.A. may request, by majority vote, that the board
waive or modify any state rule that is in effect in the zone. The board
shall review the request and may approve, modify, or reject the
request. Approval or modification by the board shall take place after
review by the appropriate state agency. A modification may include
but is not limited to establishing different compliance or reporting
requirements, timetables, or exemptions in the zone for a business or
an individual, to the extent that the modification does not adversely
affect health (including environment health), safety, employment
rights, or civil rights. An approval or a modification of a state rule by
the board takes effect upon the approval of the governor. In no case
are the provisions of IC 22-2-2 and IC 22-7-1-2 mitigated by this
chapter.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-15
Eligibility of businesses relocating non-zone businesses;
determination; hearing panel; order; criteria; exceptions;
objections; final determination
Sec. 15. (a) Any business that substantially reduces or ceases an
operation located in Indiana and outside an enterprise zone (referred
to as a nonzone operation) in order to relocate in an Indiana
enterprise zone is disqualified from benefits or incentives available
to zone businesses. Determinations under this section shall be made
by a hearing panel composed of the chairperson of the board or the
chairperson's designee, the commissioner of the department of state
revenue or the commissioner's designee, and the commissioner of the
department of local government finance or the commissioner's
designee. The panel, after an evidentiary hearing held subsequent to
the relocation of the business, shall submit a recommended order to
the board for its adoption. The recommended order shall be based on
the following criteria and subsection (b):
(1) A site specific economic activity, including sales, leasing,
service, manufacturing, production, storage of inventory, or any
activity involving permanent full-time or part-time employees
shall be considered a business operation.
(2) With respect to a nonzone operation, any of the following
that occurs during the twelve (12) months before the completion
of the physical relocation of all or part of the activity described
in subdivision (1) from the nonzone operation to the enterprise
zone as compared with the twelve (12) months before that
twelve (12) months shall be considered a substantial reduction:
(A) A reduction in the average number of full-time or
part-time employees of the lesser of:
(i) one hundred (100) employees; or
(ii) twenty-five percent (25%) of all employees.
(B) A twenty-five percent (25%) reduction in the average
number of goods manufactured or produced.
proceedings. The oral argument shall be on the record filed with the
board. The board may hear additional evidence or remand the action
to the hearing panel with instructions appropriate to the expeditious
and proper disposition of the action. The board may adopt the
recommendations of the hearing panel, may amend or modify the
recommendations, or may make an order or determination as is
proper on the record.
(e) If no objections are filed, the board may adopt the
recommended order without oral argument. If the board does not
adopt the proposed findings of fact and recommended order, the
parties shall be notified and the action shall be set for oral argument
as provided in subsection (d).
(f) The final determination made by the board shall be made by a
majority of the quorum needed for board meetings.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-16
Job training; residents of enterprise zone
Sec. 16. Whenever federal or state money is available for job
training purposes, considerations shall, to the extent possible, be
given to training residents of enterprise zones in industry specific
skills relevant to a resident's particular zone.
As added by P.L.4-2005, SEC.34.
IC 5-28-15-17
State pledge and agreement
Sec. 17. The state pledges to and agrees with the direct recipient
of any enterprise zone incentive under this chapter that the state will
not limit or alter the rights vested in the U.E.A. to fulfill the terms of
any agreements it makes with those recipients or in any way impair
the rights and remedies of those recipients until the terms of the
incentive are fulfilled. The board may include this pledge and
agreement of the state in any agreement it makes with the recipient.
As added by P.L.4-2005, SEC.34.