CHAPTER 12.1. DEDUCTION FOR REHABILITATION OR REDEVELOPMENT OF REAL PROPERTY IN ECONOMIC REVITALIZATION AREAS
IC 6-1.1-12.1
Chapter 12.1. Deduction for Rehabilitation or Redevelopment of
Real Property in Economic Revitalization Areas
IC 6-1.1-12.1-1
Definitions
Sec. 1. For purposes of this chapter:
(1) "Economic revitalization area" means an area which is
within the corporate limits of a city, town, or county which has
become undesirable for, or impossible of, normal development
and occupancy because of a lack of development, cessation of
growth, deterioration of improvements or character of
occupancy, age, obsolescence, substandard buildings, or other
factors which have impaired values or prevent a normal
development of property or use of property. The term
"economic revitalization area" also includes:
(A) any area where a facility or a group of facilities that are
technologically, economically, or energy obsolete are
located and where the obsolescence may lead to a decline in
employment and tax revenues; and
(B) a residentially distressed area, except as otherwise
provided in this chapter.
(2) "City" means any city in this state, and "town" means any
town incorporated under IC 36-5-1.
(3) "New manufacturing equipment" means tangible personal
property that a deduction applicant:
(A) installs after February 28, 1983, and on or before the
approval deadline determined under section 9 of this chapter,
in an area that is declared an economic revitalization area
after February 28, 1983, in which a deduction for tangible
personal property is allowed;
(B) uses in the direct production, manufacture, fabrication,
assembly, extraction, mining, processing, refining, or
finishing of other tangible personal property, including but
not limited to use to dispose of solid waste or hazardous
waste by converting the solid waste or hazardous waste into
energy or other useful products;
(C) acquires for use as described in clause (B):
(i) in an arms length transaction from an entity that is not
an affiliate of the deduction applicant, if the tangible
personal property has been previously used in Indiana
before the installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(D) has never used for any purpose in Indiana before the
installation described in clause (A).
However, notwithstanding any other law, the term includes
tangible personal property that is used to dispose of solid waste
or hazardous waste by converting the solid waste or hazardous
waste into energy or other useful products and was installed
after March 1, 1993, and before March 2, 1996, even if the
property was installed before the area where the property is
located was designated as an economic revitalization area or the
statement of benefits for the property was approved by the
designating body.
(4) "Property" means a building or structure, but does not
include land.
(5) "Redevelopment" means the construction of new structures,
in economic revitalization areas, either:
(A) on unimproved real estate; or
(B) on real estate upon which a prior existing structure is
demolished to allow for a new construction.
(6) "Rehabilitation" means the remodeling, repair, or betterment
of property in any manner or any enlargement or extension of
property.
(7) "Designating body" means the following:
(A) For a county that does not contain a consolidated city,
the fiscal body of the county, city, or town.
(B) For a county containing a consolidated city, the
metropolitan development commission.
(8) "Deduction application" means:
(A) the application filed in accordance with section 5 of this
chapter by a property owner who desires to obtain the
deduction provided by section 3 of this chapter;
(B) the application filed in accordance with section 5.4 of
this chapter by a person who desires to obtain the deduction
provided by section 4.5 of this chapter; or
(C) the application filed in accordance with section 5.3 of
this chapter by a property owner that desires to obtain the
deduction provided by section 4.8 of this chapter.
(9) "Designation application" means an application that is filed
with a designating body to assist that body in making a
determination about whether a particular area should be
designated as an economic revitalization area.
(10) "Hazardous waste" has the meaning set forth in
IC 13-11-2-99(a). The term includes waste determined to be a
hazardous waste under IC 13-22-2-3(b).
(11) "Solid waste" has the meaning set forth in
IC 13-11-2-205(a). However, the term does not include dead
animals or any animal solid or semisolid wastes.
(12) "New research and development equipment" means
tangible personal property that:
(A) a deduction applicant installs after June 30, 2000, and on
or before the approval deadline determined under section 9
of this chapter, in an economic revitalization area in which
a deduction for tangible personal property is allowed;
(B) consists of:
(i) laboratory equipment;
(ii) research and development equipment;
(iii) computers and computer software;
(iv) telecommunications equipment; or
(v) testing equipment;
(C) the deduction applicant uses in research and
development activities devoted directly and exclusively to
experimental or laboratory research and development for
new products, new uses of existing products, or improving
or testing existing products;
(D) the deduction applicant acquires for purposes described
in this subdivision:
(i) in an arms length transaction from an entity that is not
an affiliate of the deduction applicant, if the tangible
personal property has been previously used in Indiana
before the installation described in clause (A); or
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(E) the deduction applicant has never used for any purpose
in Indiana before the installation described in clause (A).
The term does not include equipment installed in facilities used
for or in connection with efficiency surveys, management
studies, consumer surveys, economic surveys, advertising or
promotion, or research in connection with literacy, history, or
similar projects.
(13) "New logistical distribution equipment" means tangible
personal property that:
(A) a deduction applicant installs after June 30, 2004, and on
or before the approval deadline determined under section 9
of this chapter, in an economic revitalization area in which
a deduction for tangible personal property is allowed;
(B) consists of:
(i) racking equipment;
(ii) scanning or coding equipment;
(iii) separators;
(iv) conveyors;
(v) fork lifts or lifting equipment (including "walk
behinds");
(vi) transitional moving equipment;
(vii) packaging equipment;
(viii) sorting and picking equipment; or
(ix) software for technology used in logistical distribution;
(C) the deduction applicant acquires for the storage or
distribution of goods, services, or information:
(i) in an arms length transaction from an entity that is not
an affiliate of the deduction applicant, if the tangible
personal property has been previously used in Indiana
before the installation described in clause (A); and
(ii) in any manner, if the tangible personal property has
never been previously used in Indiana before the
installation described in clause (A); and
(D) the deduction applicant has never used for any purpose
in Indiana before the installation described in clause (A).
(14) "New information technology equipment" means tangible
personal property that:
(A) a deduction applicant installs after June 30, 2004, and on
or before the approval deadline determined under section 9
of this chapter, in an economic revitalization area in which
a deduction for tangible personal property is allowed;
(B) consists of equipment, including software, used in the
fields of:
(i) information processing;
(ii) office automation;
(iii) telecommunication facilities and networks;
(iv) informatics;
(v) network administration;
(vi) software development; and
(vii) fiber optics;
(C) the deduction applicant acquires in an arms length
transaction from an entity that is not an affiliate of the
deduction applicant; and
(D) the deduction applicant never used for any purpose in
Indiana before the installation described in clause (A).
(15) "Deduction applicant" means an owner of tangible personal
property who makes a deduction application.
(16) "Affiliate" means an entity that effectively controls or is
controlled by a deduction applicant or is associated with a
deduction applicant under common ownership or control,
whether by shareholdings or other means.
(17) "Eligible vacant building" means a building that:
(A) is zoned for commercial or industrial purposes; and
(B) is unoccupied for at least one (1) year before the owner
of the building or a tenant of the owner occupies the
building, as evidenced by a valid certificate of occupancy,
paid utility receipts, executed lease agreements, or any other
evidence of occupation that the department of local
government finance requires.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.5; Acts 1980, P.L.42, SEC.1; Acts 1981, P.L.72, SEC.1;
P.L.71-1983, SEC.1; P.L.56-1988, SEC.1; P.L.47-1990, SEC.2;
P.L.42-1992, SEC.1; P.L.18-1992, SEC.21; P.L.25-1995, SEC.17;
P.L.1-1996, SEC.39; P.L.4-2000, SEC.1; P.L.64-2004, SEC.4 and
P.L.81-2004, SEC.48; P.L.216-2005, SEC.1; P.L.154-2006, SEC.24;
P.L.219-2007, SEC.28; P.L.224-2007, SEC.4.
IC 6-1.1-12.1-2
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 section 3, 4.5, or 4.8
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 four (4) 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.
(4) One (1) relative to the deduction allowed under section 4.8
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 the deduction allowed under
section 3 of this chapter, the deduction allowed under section
4.5 of this chapter, the deduction allowed under section 4.8 of
this chapter, or any combination of these deductions;
(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;
(5) limit the dollar amount of the deduction that will be allowed
under section 4.8 of this chapter with respect to the occupation
of an eligible vacant building; or
(6) 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, 4.5, or 4.8 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) In addition to the other requirements of this chapter, 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), a
taxpayer's statement of benefits concerning that property may not be
approved under this chapter unless a resolution approving the
statement of benefits is adopted by the legislative body of the unit
that approved the designation of the allocation area.
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;
P.L.154-2006, SEC.25; P.L.146-2008, SEC.121.
IC 6-1.1-12.1-2.3
Repealed
(Repealed by P.L.216-2005, SEC.9.)
IC 6-1.1-12.1-2.5
Economic revitalization area; maps; boundaries; resolution;
notice; determination; appeal
Sec. 2.5. (a) If a designating body finds that an area in its
jurisdiction is an economic revitalization area, it shall either:
(1) prepare maps and plats that identify the area; or
(2) prepare a simplified description of the boundaries of the
area by describing its location in relation to public ways,
streams, or otherwise.
(b) After the compilation of the materials described in subsection
(a), the designating body shall pass a resolution declaring the area an
economic revitalization area. The resolution must contain a
description of the affected area and be filed with the county assessor.
A resolution adopted after June 30, 2000, may include a
determination of the number of years a deduction under section 3,
4.5, or 4.8 of this chapter is allowed.
(c) After approval of a resolution under subsection (b), the
designating body shall do the following:
(1) Publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1.
(2) File the following information with each taxing unit that has
authority to levy property taxes in the geographic area where
the economic revitalization area is located:
(A) A copy of the notice required by subdivision (1).
(B) A statement containing substantially the same
information as a statement of benefits filed with the
designating body before the hearing required by this section
under section 3, 4.5, or 4.8 of this chapter.
The notice must state that a description of the affected area is
available and can be inspected in the county assessor's office. The
notice must also name a date when the designating body will receive
and hear all remonstrances and objections from interested persons.
The designating body shall file the information required by
subdivision (2) with the officers of the taxing unit who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 at least ten (10) days before the date of the public
hearing. After considering the evidence, the designating body shall
take final action determining whether the qualifications for an
economic revitalization area have been met and confirming,
modifying and confirming, or rescinding the resolution. This
determination is final except that an appeal may be taken and heard
as provided under subsections (d) and (e).
(d) A person who filed a written remonstrance with the
designating body under this section and who is aggrieved by the final
action taken may, within ten (10) days after that final action, initiate
an appeal of that action by filing in the office of the clerk of the
circuit or superior court a copy of the order of the designating body
and the person's remonstrance against that order, together with the
person's bond conditioned to pay the costs of the person's appeal if
the appeal is determined against the person. The only ground of
appeal that the court may hear is whether the proposed project will
meet the qualifications of the economic revitalization area law. The
burden of proof is on the appellant.
(e) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of the filing of the appeal. The court
shall hear evidence on the appeal, and may confirm the final action
of the designating body or sustain the appeal. The judgment of the
court is final and conclusive, unless an appeal is taken as in other
civil actions.
As added by P.L.71-1983, SEC.3. Amended by P.L.62-1986, SEC.1;
P.L.56-1988, SEC.3; P.L.3-1989, SEC.34; P.L.56-1991, SEC.1;
P.L.25-1995, SEC.18; P.L.4-2000, SEC.3; P.L.154-2006, SEC.26.
IC 6-1.1-12.1-3
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) Persons with a disability.
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; P.L.99-2007, SEC.25.
IC 6-1.1-12.1-4
Annual deduction; amount; percentage; period of deduction; effect
of reassessment
Sec. 4. (a) Except as provided in section 2(i)(4) of this chapter,
and subject to section 15 of this chapter, the amount of the deduction
which the property owner is entitled to receive under section 3 of this
chapter for a particular year equals the product of:
(1) the increase in the assessed value resulting from the
rehabilitation or redevelopment; multiplied by
(2) the percentage prescribed in the table set forth in subsection
(d).
(b) The amount of the deduction determined under subsection (a)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If a general reassessment of real property occurs within the
particular period of the deduction, the amount determined under
subsection (a)(1) shall be adjusted to reflect the percentage
increase or decrease in assessed valuation that resulted from the
general reassessment.
(2) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the redeveloped or
rehabilitated property, the amount of any deduction shall be
adjusted to reflect the percentage decrease that resulted from
the appeal.
The department of local government finance shall adopt rules under
IC 4-22-2 to implement this subsection.
(c) 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 the deduction for the first through the fifth
years as provided in subsection (d)(10). 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 the first through the tenth years,
as provided in subsection (d)(10).
(d) The percentage to be used in calculating the deduction under
subsection (a) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st
100%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 66%
3rd 33%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 17%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 95%
3rd 80%
4th 65%
5th 50%
6th 40%
7th 30%
8th 20%
9th 10%
10th 5%
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.8; Acts 1981, P.L.72, SEC.2; P.L.62-1985, SEC.2;
P.L.57-1988, SEC.1; P.L.3-1989, SEC.35; P.L.332-1989(ss),
SEC.11; P.L.65-1993, SEC.3; P.L.4-2000, SEC.5; P.L.90-2002,
SEC.119; P.L.219-2007, SEC.29.
IC 6-1.1-12.1-4.1
Application of sections; residentially distressed areas; deduction
allowed
Sec. 4.1. (a) Section 4 of this chapter applies to economic
revitalization areas that are not residentially distressed areas.
(b) This subsection applies to economic revitalization areas that
are residentially distressed areas. Subject to section 15 of this
chapter, the amount of the deduction that a property owner is entitled
to receive under section 3 of this chapter for a particular year equals
the lesser of:
(1) the assessed value of the improvement to the property after
the rehabilitation or redevelopment has occurred; or
(2) the following amount:
TYPE OF DWELLING AMOUNT
One (1) family dwelling $74,880
Two (2) family dwelling $106,080
Three (3) unit multifamily dwelling $156,000
Four (4) unit multifamily dwelling $199,680
As added by P.L.56-1988, SEC.5. Amended by P.L.3-1989, SEC.36;
P.L.65-1993, SEC.4; P.L.6-1997, SEC.58; P.L.20-2004, SEC.9;
P.L.219-2007, SEC.30.
IC 6-1.1-12.1-4.5
Statement of benefits; findings by designating body; deduction
periods, amounts, and limitations
Sec. 4.5. (a) An applicant must provide a statement of benefits to
the designating body. The applicant must provide the completed
statement of benefits form to the designating body before the hearing
specified in section 2.5(c) of this chapter or before the installation of
the new manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new information
technology equipment 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 new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment that the person proposes to acquire.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of
solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
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 installation of the new manufacturing equipment, new
research and development equipment, new logistical
distribution equipment, or new information technology
equipment and an estimate of the annual salaries of these
individuals.
(3) An estimate of the cost of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment.
(4) With respect to new manufacturing equipment used to
dispose of solid waste or hazardous waste by converting the
solid waste or hazardous waste into energy or other useful
products, an estimate of the amount of solid waste or hazardous
waste that will be converted into energy or other useful
products by the new manufacturing equipment.
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 the deduction shall be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment is reasonable for equipment of that type.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of
solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products; and
(B) new research and development equipment, new logistical
distribution equipment, or new information technology
equipment;
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 installation of the new
manufacturing equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
(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
installation of new manufacturing equipment, new research and
development equipment, new logistical distribution equipment,
or new information technology equipment.
(4) With respect to new manufacturing equipment used to
dispose of solid waste or hazardous waste by converting the
solid waste or hazardous waste into energy or other useful
products, whether the estimate of the amount of solid waste or
hazardous waste that will be converted into energy or other
useful products can be reasonably expected to result from the
installation of the new manufacturing equipment.
(5) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed installation of new manufacturing
equipment, new research and development equipment, new
logistical distribution equipment, or new information
technology equipment.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
The designating body may not designate an area an economic
revitalization area or approve the deduction unless it makes the
findings required by this subsection in the affirmative.
(c) Except as provided in subsection (g), and subject to subsection
(h) and section 15 of this chapter, an owner of new manufacturing
equipment, new research and development equipment, new logistical
distribution equipment, or new information technology equipment
whose statement of benefits is approved after June 30, 2000, is
entitled to a deduction from the assessed value of that equipment for
the number of years determined by the designating body under
subsection (f). Except as provided in subsection (e) and in section
2(i)(3) of this chapter, and subject to subsection (h) and section 15
of this chapter, the amount of the deduction that an owner is entitled
to for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment,
new research and development equipment, new logistical
distribution equipment, or new information technology
equipment in the year of deduction under the appropriate table
set forth in subsection (d); multiplied by
(2) the percentage prescribed in the appropriate table set forth
in subsection (d).
(d) The percentage to be used in calculating the deduction under
subsection (c) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd and thereafter 0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 50%
3rd and thereafter 0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 66%
3rd 33%
4th and thereafter 0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 75%
3rd 50%
4th 25%
5th and thereafter 0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 80%
3rd 60%
4th 40%
5th 20%
6th and thereafter 0%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 66%
4th 50%
5th 34%
6th 25%
7th and thereafter 0%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 85%
3rd 71%
4th 57%
5th 43%
6th 29%
7th 14%
8th and thereafter 0%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 75%
4th 63%
5th 50%
6th 38%
7th 25%
8th 13%
9th and thereafter 0%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION
PERCENTAGE
1st 100%
2nd 88%
3rd 77%
4th 66%
5th 55%
6th 44%
7th 33%
8th 22%
9th 11%
10th and thereafter &n