Version b
Economic development income tax funds; deposits; uses
Note: This version of section amended by P.L.214-2005, SEC.21.
See also preceding version of this section amended by P.L.118-2005,
SEC.2.
Sec. 13.1. (a) The fiscal officer of each county, city, or town for
a county in which the county economic development tax is imposed
shall establish an economic development income tax fund. Except as
provided in sections 23, 25, 26, and 27 of this chapter, the revenue
received by a county, city, or town under this chapter shall be
deposited in the unit's economic development income tax fund.
(b) Except as provided in sections 15, 23, 25, 26, and 27 of this
chapter, revenues from the county economic development income tax
may be used as follows:
(1) By a county, city, or town for economic development
projects, for paying, notwithstanding any other law, under a
written agreement all or a part of the interest owed by a private
developer or user on a loan extended by a financial institution
or other lender to the developer or user if the proceeds of the
loan are or are to be used to finance an economic development
project, for the retirement of bonds under section 14 of this
chapter for economic development projects, for leases under
section 21 of this chapter, or for leases or bonds entered into or
issued prior to the date the economic development income tax
was imposed if the purpose of the lease or bonds would have
qualified as a purpose under this chapter at the time the lease
was entered into or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial action
with respect to, a capital project for which the unit is
empowered to issue general obligation bonds or establish a
fund under any statute listed in IC 6-1.1-18.5-9.8;
(B) the retirement of bonds issued under any provision of
Indiana law for a capital project;
(C) the payment of lease rentals under any statute for a
capital project;
(D) contract payments to a nonprofit corporation whose
primary corporate purpose is to assist government in
planning and implementing economic development projects;
(E) operating expenses of a governmental entity that plans or
implements economic development projects;
(F) to the extent not otherwise allowed under this chapter,
funding substance removal or remedial action in a
designated unit; or
(G) funding of a revolving fund established under
IC 5-1-14-14.
(3) By a city or county described in IC 36-7.5-2-3(b) for making
transfers required by IC 36-7.5-4-2. If the county economic
development income tax rate is increased after April 30, 2005,
in a county having a population of more than one hundred
forty-five thousand (145,000) but less than one hundred
forty-eight thousand (148,000), the first three million five
hundred thousand dollars ($3,500,000) of the tax revenue that
results each year from the tax rate increase shall be used by the
county only to make the county's transfer required by
IC 36-7.5-4-2. The first three million five hundred thousand
dollars ($3,500,000) of the tax revenue that results each year
from the tax rate increase shall be paid by the county treasurer
to the treasurer of the northwest Indiana regional development
authority under IC 36-7.5-4-2 before certified distributions are
made to the county or any cities or towns in the county under
this chapter from the tax revenue that results each year from the
tax rate increase. In a county having a population of more than
one hundred forty-five thousand (145,000) but less than one
hundred forty-eight thousand (148,000), all of the tax revenue
that results each year from the tax rate increase that is in excess
of the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increase
must be used by the county and cities and towns in the county
for additional homestead credits under subdivision (4).
(4) This subdivision applies only in a county having a
population of more than one hundred forty-five thousand
(145,000) but less than one hundred forty-eight thousand
(148,000). Except as otherwise provided, the procedures and
definitions in IC 6-1.1-20.9 apply to this subdivision. All of the
tax revenue that results each year from a tax rate increase
described in subdivision (3) that is in excess of the first three
million five hundred thousand dollars ($3,500,000) that results
each year from the tax rate increase must be used by the county
and cities and towns in the county for additional homestead
credits under this subdivision. The following apply to additional
homestead credits provided under this subdivision:
(A) The additional homestead credits must be applied
uniformly to increase the homestead credit under
IC 6-1.1-20.9 for homesteads in the county, city, or town.
(B) The additional homestead credits shall be treated for all
purposes as property tax levies. The additional homestead
credits do not reduce the basis for determining the state
property tax replacement credit under IC 6-1.1-21 or the
state homestead credit under IC 6-1.1-20.9.
(C) The additional homestead credits shall be applied to the
net property taxes due on the homestead after the application
of all other assessed value deductions or property tax
deductions and credits that apply to the amount owed under
IC 6-1.1.
(D) The department of local government finance shall
determine the additional homestead credit percentage for a
particular year based on the amount of county economic
development income tax revenue that will be used under this
subdivision to provide additional homestead credits in that
year.
(5) This subdivision applies only in a county having a
population of more than four hundred thousand (400,000) but
less than seven hundred thousand (700,000). Except as
otherwise provided, the procedures and definitions in
IC 6-1.1-20.9 apply to this subdivision. A county or a city or
town in the county may use county economic development
income tax revenue to provide additional homestead credits in
the county, city, or town. The following apply to additional
homestead credits provided under this subdivision:
(A) The county, city, or town fiscal body must adopt an
ordinance authorizing the additional homestead credits. The
ordinance must:
(i) be adopted before September 1 of a year to apply to
property taxes first due and payable in the following year;
and
(ii) specify the amount of county economic development
income tax revenue that will be used to provide additional
homestead credits in the following year.
(B) A county, city, or town fiscal body that adopts an
ordinance under this subdivision must forward a copy of the
ordinance to the county auditor and the department of local
government finance not more than thirty (30) days after the
ordinance is adopted.
(C) The additional homestead credits must be applied
uniformly to increase the homestead credit under
IC 6-1.1-20.9 for homesteads in the county, city, or town.
(D) The additional homestead credits shall be treated for all
purposes as property tax levies. The additional homestead
credits do not reduce the basis for determining the state
property tax replacement credit under IC 6-1.1-21 or the
state homestead credit under IC 6-1.1-20.9.
(E) The additional homestead credits shall be applied to the
net property taxes due on the homestead after the application
of all other assessed value deductions or property tax
deductions and credits that apply to the amount owed under
IC 6-1.1.
(F) The department of local government finance shall
determine the additional homestead credit percentage for a
particular year based on the amount of county economic
development income tax revenue that will be used under this
subdivision to provide additional homestead credits in that
year.
(c) As used in this section, an economic development project is
any project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise within
the unit; and
(2) involves an expenditure for:
(A) the acquisition of land;
(B) interests in land;
(C) site improvements;
(D) infrastructure improvements;
(E) buildings;
(F) structures;
(G) rehabilitation, renovation, and enlargement of buildings
and structures;
(H) machinery;
(I) equipment;
(J) furnishings;
(K) facilities;
(L) administrative expenses associated with such a project,
including contract payments authorized under subsection
(b)(2)(D);
(M) operating expenses authorized under subsection
(b)(2)(E); or
(N) to the extent not otherwise allowed under this chapter,
substance removal or remedial action in a designated unit;
or any combination of these.
As added by P.L.1-1990, SEC.81. Amended by P.L.17-1991, SEC.9;
P.L.44-1994, SEC.8; P.L.27-1995, SEC.6; P.L.124-1999, SEC.2;
P.L.192-2002(ss), SEC.123; P.L.224-2003, SEC.256; P.L.214-2005,
SEC.21.
Last modified: May 28, 2006