Statement of benefits; form; findings; period of deduction;
resolution; excluded facilities
Sec. 3. (a) An applicant must provide a statement of benefits to
the designating body. If the designating body requires information
from the applicant for economic revitalization area status for use in
making its decision about whether to designate an economic
revitalization area, the applicant shall provide the completed
statement of benefits form to the designating body before the hearing
required by section 2.5(c) of this chapter. Otherwise, the statement
of benefits form must be submitted to the designating body before
the initiation of the redevelopment or rehabilitation for which the
person desires to claim a deduction under this chapter. The
department of local government finance shall prescribe a form for the
statement of benefits. The statement of benefits must include the
following information:
(1) A description of the proposed redevelopment or
rehabilitation.
(2) An estimate of the number of individuals who will be
employed or whose employment will be retained by the person
as a result of the redevelopment or rehabilitation and an
estimate of the annual salaries of these individuals.
(3) An estimate of the value of the redevelopment or
rehabilitation.
With the approval of the designating body, the statement of benefits
may be incorporated in a designation application. Notwithstanding
any other law, a statement of benefits is a public record that may be
inspected and copied under IC 5-14-3-3.
(b) The designating body must review the statement of benefits
required under subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether a deduction should be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the value of the redevelopment or
rehabilitation is reasonable for projects of that nature.
(2) Whether the estimate of the number of individuals who will
be employed or whose employment will be retained can be
reasonably expected to result from the proposed described
redevelopment or rehabilitation.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
described redevelopment or rehabilitation.
(4) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed described redevelopment or rehabilitation.
(5) Whether the totality of benefits is sufficient to justify the
deduction.
A designating body may not designate an area an economic
revitalization area or approve a deduction unless the findings
required by this subsection are made in the affirmative.
(c) Except as provided in subsections (a) through (b), the owner
of property which is located in an economic revitalization area is
entitled to a deduction from the assessed value of the property. If the
area is a residentially distressed area, the period is not more than five
(5) years. For all other economic revitalization areas designated
before July 1, 2000, the period is three (3), six (6), or ten (10) years.
For all economic revitalization areas designated after June 30, 2000,
the period is the number of years determined under subsection (d).
The owner is entitled to a deduction if:
(1) the property has been rehabilitated; or
(2) the property is located on real estate which has been
redeveloped.
The owner is entitled to the deduction for the first year, and any
successive year or years, in which an increase in assessed value
resulting from the rehabilitation or redevelopment occurs and for the
following years determined under subsection (d). However, property
owners who had an area designated an urban development area
pursuant to an application filed prior to January 1, 1979, are only
entitled to a deduction for a five (5) year period. In addition, property
owners who are entitled to a deduction under this chapter pursuant
to an application filed after December 31, 1978, and before January
1, 1986, are entitled to a deduction for a ten (10) year period.
(d) For an area designated as an economic revitalization area after
June 30, 2000, that is not a residentially distressed area, the
designating body shall determine the number of years for which the
property owner is entitled to a deduction. However, the deduction
may not be allowed for more than ten (10) years. This determination
shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving
a copy of a property owner's certified deduction application
from the county auditor. A certified copy of the resolution shall
be sent to the county auditor who shall make the deduction as
provided in section 5 of this chapter.
A determination about the number of years the deduction is allowed
that is made under subdivision (1) is final and may not be changed
by following the procedure under subdivision (2).
(e) Except for deductions related to redevelopment or
rehabilitation of real property in a county containing a consolidated
city or a deduction related to redevelopment or rehabilitation of real
property initiated before December 31, 1987, in areas designated as
economic revitalization areas before that date, a deduction for the
redevelopment or rehabilitation of real property may not be approved
for the following facilities:
(1) Private or commercial golf course.
(2) Country club.
(3) Massage parlor.
(4) Tennis club.
(5) Skating facility (including roller skating, skateboarding, or
ice skating).
(6) Racquet sport facility (including any handball or racquetball
court).
(7) Hot tub facility.
(8) Suntan facility.
(9) Racetrack.
(10) Any facility the primary purpose of which is:
(A) retail food and beverage service;
(B) automobile sales or service; or
(C) other retail;
unless the facility is located in an economic development target
area established under section 7 of this chapter.
(11) Residential, unless:
(A) the facility is a multifamily facility that contains at least
twenty percent (20%) of the units available for use by low
and moderate income individuals;
(B) the facility is located in an economic development target
area established under section 7 of this chapter; or
(C) the area is designated as a residentially distressed area.
(12) A package liquor store that holds a liquor dealer's permit
under IC 7.1-3-10 or any other entity that is required to operate
under a license issued under IC 7.1. This subdivision does not
apply to an applicant that:
(A) was eligible for tax abatement under this chapter before
July 1, 1995;
(B) is described in IC 7.1-5-7-11; or
(C) operates a facility under:
(i) a beer wholesaler's permit under IC 7.1-3-3;
(ii) a liquor wholesaler's permit under IC 7.1-3-8; or
(iii) a wine wholesaler's permit under IC 7.1-3-13;
for which the applicant claims a deduction under this
chapter.
(f) This subsection applies only to a county having a population
of more than two hundred thousand (200,000) but less than three
hundred thousand (300,000). Notwithstanding subsection (e)(11), in
a county subject to this subsection a designating body may, before
September 1, 2000, approve a deduction under this chapter for the
redevelopment or rehabilitation of real property consisting of
residential facilities that are located in unincorporated areas of the
county if the designating body makes a finding that the facilities are
needed to serve any combination of the following:
(1) Elderly persons who are predominately low-income or
moderate-income persons.
(2) Disabled persons.
A designating body may adopt an ordinance approving a deduction
under this subsection only one (1) time. This subsection expires
January 1, 2011.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.7; P.L.71-1983, SEC.4; P.L.62-1985, SEC.1;
P.L.62-1986, SEC.2; P.L.82-1987, SEC.2; P.L.56-1988, SEC.4;
P.L.65-1993, SEC.2; P.L.25-1995, SEC.19; P.L.4-2000, SEC.4;
P.L.126-2000, SEC.5; P.L.198-2001, SEC.38; P.L.90-2002,
SEC.118; P.L.72-2004, SEC.2.
Last modified: May 28, 2006