Findings by designating body; economic revitalization area;
residentially distressed area; conditions; property tax deductions;
fees
Sec. 2. (a) A designating body may find that a particular area
within its jurisdiction is an economic revitalization area. However,
the deduction provided by this chapter for economic revitalization
areas not within a city or town shall not be available to retail
businesses.
(b) In a county containing a consolidated city or within a city or
town, a designating body may find that a particular area within its
jurisdiction is a residentially distressed area. Designation of an area
as a residentially distressed area has the same effect as designating
an area as an economic revitalization area, except that the amount of
the deduction shall be calculated as specified in section 4.1 of this
chapter and the deduction is allowed for not more than five (5) years.
In order to declare a particular area a residentially distressed area, the
designating body must follow the same procedure that is required to
designate an area as an economic revitalization area and must make
all the following additional findings or all the additional findings
described in subsection (c):
(1) The area is comprised of parcels that are either unimproved
or contain only one (1) or two (2) family dwellings or
multifamily dwellings designed for up to four (4) families,
including accessory buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and
are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and
IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of
the additional findings described in this subsection or one (1) of the
additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or
town, a designating body that wishes to designate a particular area a
residentially distressed area may make the following additional
findings as an alternative to the additional findings described in
subsection (b):
(1) A significant number of dwelling units within the area are
not permanently occupied or a significant number of parcels in
the area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number of
dwelling units, as documented by census information, local
building and demolition permits, or certificates of occupancy,
or the area is owned by Indiana or the United States.
(4) The area (plus any areas previously designated under this
subsection) will not exceed ten percent (10%) of the total area
within the designating body's jurisdiction.
However, in a city in a county having a population of more than two
hundred thousand (200,000) but less than three hundred thousand
(300,000), the designating body is only required to make one (1) of
the additional findings described in this subsection as an alternative
to one (1) of the additional findings described in subsection (b).
(d) A designating body is required to attach the following
conditions to the grant of a residentially distressed area designation:
(1) The deduction will not be allowed unless the dwelling is
rehabilitated to meet local code standards for habitability.
(2) If a designation application is filed, the designating body
may require that the redevelopment or rehabilitation be
completed within a reasonable period of time.
(e) To make a designation described in subsection (a) or (b), the
designating body shall use procedures prescribed in section 2.5 of
this chapter.
(f) The property tax deductions provided by sections 3 and 4.5 of
this chapter are only available within an area which the designating
body finds to be an economic revitalization area.
(g) The designating body may adopt a resolution establishing
general standards to be used, along with the requirements set forth in
the definition of economic revitalization area, by the designating
body in finding an area to be an economic revitalization area. The
standards must have a reasonable relationship to the development
objectives of the area in which the designating body has jurisdiction.
The following three (3) sets of standards may be established:
(1) One (1) relative to the deduction under section 3 of this
chapter for economic revitalization areas that are not
residentially distressed areas.
(2) One (1) relative to the deduction under section 3 of this
chapter for residentially distressed areas.
(3) One (1) relative to the deduction allowed under section 4.5
of this chapter.
(h) A designating body may impose a fee for filing a designation
application for a person requesting the designation of a particular
area as an economic revitalization area. The fee may be sufficient to
defray actual processing and administrative costs. However, the fee
charged for filing a designation application for a parcel that contains
one (1) or more owner-occupied, single-family dwellings may not
exceed the cost of publishing the required notice.
(i) In declaring an area an economic revitalization area, the
designating body may:
(1) limit the time period to a certain number of calendar years
during which the economic revitalization area shall be so
designated;
(2) limit the type of deductions that will be allowed within the
economic revitalization area to either the deduction allowed
under section 3 of this chapter or the deduction allowed under
section 4.5 of this chapter;
(3) limit the dollar amount of the deduction that will be allowed
with respect to new manufacturing equipment, new research
and development equipment, new logistical distribution
equipment, and new information technology equipment if a
deduction under this chapter had not been filed before July 1,
1987, for that equipment;
(4) limit the dollar amount of the deduction that will be allowed
with respect to redevelopment and rehabilitation occurring in
areas that are designated as economic revitalization areas on or
after September 1, 1988; or
(5) impose reasonable conditions related to the purpose of this
chapter or to the general standards adopted under subsection (g)
for allowing the deduction for the redevelopment or
rehabilitation of the property or the installation of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
To exercise one (1) or more of these powers, a designating body
must include this fact in the resolution passed under section 2.5 of
this chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment installed on or before the
approval deadline determined under section 9 of this chapter,
but after the expiration of the economic revitalization area if:
(A) the economic revitalization area designation expires
after December 30, 1995; and
(B) the new manufacturing equipment, new research and
development equipment, new logistical distribution
equipment, or new information technology equipment was
described in a statement of benefits submitted to and
approved by the designating body in accordance with section
4.5 of this chapter before the expiration of the economic
revitalization area designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 4 or 4.5 of this chapter.
(k) Notwithstanding any other provision of this chapter,
deductions:
(1) that are authorized under section 3 of this chapter for
property in an area designated as an urban development area
before March 1, 1983, and that are based on an increase in
assessed valuation resulting from redevelopment or
rehabilitation that occurs before March 1, 1983; or
(2) that are authorized under section 4.5 of this chapter for new
manufacturing equipment installed in an area designated as an
urban development area before March 1, 1983;
apply according to the provisions of this chapter as they existed at
the time that an application for the deduction was first made. No
deduction that is based on the location of property or new
manufacturing equipment in an urban development area is authorized
under this chapter after February 28, 1983, unless the initial increase
in assessed value resulting from the redevelopment or rehabilitation
of the property or the installation of the new manufacturing
equipment occurred before March 1, 1983.
(l) If property located in an economic revitalization area is also
located in an allocation area (as defined in IC 36-7-14-39 or
IC 36-7-15.1-26), an application for the property tax deduction
provided by this chapter may not be approved unless the commission
that designated the allocation area adopts a resolution approving the
application.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.6; Acts 1980, P.L.42, SEC.2; Acts 1981, P.L.310,
SEC.91; P.L.72-1983, SEC.1; P.L.71-1983, SEC.2; P.L.82-1987,
SEC.1; P.L.56-1988, SEC.2; P.L.3-1989, SEC.33; P.L.42-1992,
SEC.2; P.L.65-1993, SEC.1; P.L.31-1994, SEC.3; P.L.85-1995,
SEC.1; P.L.255-1997(ss), SEC.5; P.L.4-2000, SEC.2; P.L.64-2004,
SEC.5 and P.L.81-2004, SEC.49; P.L.216-2005, SEC.2.
Last modified: May 28, 2006