Bill Text: IN HB1507 | 2013 | Regular Session | Introduced
Bill Title: Payment in lieu of taxes for Burns Harbor.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Introduced - Dead) 2013-02-07 - Representatives Moseley and Candelaria Reardon added as coauthors [HB1507 Detail]
Download: Indiana-2013-HB1507-Introduced.html
Citations Affected: IC 8-10-1.
Synopsis: Payment in lieu of taxes for Burns Harbor. Authorizes the
City of Portage (City) to impose a payment in lieu of taxes (PILOT)
against the Port of Indiana-Burns Harbor (Port) and any other owner of
exempt property that is located at the Port. Establishes the maximum
PILOT to be the property taxes that would be imposed on the property
if the property were not exempt from property taxes. Provides that the
revenue from the PILOT may be used for any general fund purpose of
the City.
Effective: July 1, 2013.
January 22, 2013, read first time and referred to Committee on Ways and Means.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(b) As the operation and maintenance of a port or project by the ports of Indiana will constitute the performance of essential governmental functions, the ports of Indiana shall not be required to pay any taxes or assessments upon any port or project or any property acquired or used by the ports of Indiana under the provisions of this article or upon the income therefrom, except for the payment in lieu of property taxes required by section 31 of this chapter. The bonds issued by the ports of Indiana, the interest thereon, the proceeds received by a holder from the sale of such bonds to the extent of the holder's cost of acquisition, or proceeds received upon redemption prior to maturity or proceeds received at maturity, and the receipt of such
interest and proceeds shall be exempt from taxation in the state of
Indiana for all purposes except the financial institutions tax imposed
under IC 6-5.5 or a state inheritance tax imposed under IC 6-4.1.
(c) Notwithstanding any other statute, a lessee's leasehold estate in
land that is part of a port and that is owned by the state or the ports of
Indiana is exempt from property taxation. However, an exemption
under this subsection is not available for land not located at a port or
with respect to a leasehold estate subject to the payment in lieu of
property taxes imposed under section 31 of this chapter.
(1) The Port of Indiana-Burns Harbor (Port) located within the City of Portage (City) results in an increased cost to the City for providing governmental services to the Port and the surrounding area.
(2) The Port and certain property located at the Port are exempt from property taxation, resulting in the lack of an adequate tax base to support the governmental services provided by the City.
(3) To provide a proper allocation of the cost of providing governmental services to the Port and the surrounding area, the City fiscal body should be authorized to collect a PILOT with regard to the exempt property at the Port.
(4) The appropriate maximum PILOT would be the amount of the property taxes that would be paid to the City if the property located at the Port were not exempt from property taxation.
(b) As used in this section, a term defined in IC 6-1.1-1 has the meaning set forth in IC 6-1.1-1. As used in this section, "PILOT" means payments in lieu of taxes.
(c) The City fiscal body may impose a PILOT by adopting an ordinance with respect to:
(1) tangible property that is owned or leased by the Port and that is treated as exempt from property taxation under this chapter;
(2) tangible property that is owned by or leased to a person other than the Port and that is treated as exempt from property taxation under this chapter; or
(3) both.
(d) The PILOT may be in any amount as long as the PILOT does not exceed the amount of property taxes that would have been
levied for the City upon the tangible property described in
subsection (c) if the property were not treated as exempt from
property taxation under this chapter. A PILOT shall be due as set
forth in the ordinance and bear interest, if unpaid, as in the case of
property taxes. A PILOT shall be imposed and treated in the same
manner as property taxes.
(e) A PILOT must be based on the assessed value of the tangible
property described in subsection (c). The county assessor, or the
township assessor for the township (if any), shall assess the exempt
tangible property located at the Port. The Port and any property
owner subject to the PILOT shall report the value of exempt
personal property located at the Port in a manner consistent with
IC 6-1.1-3.
(f) Notwithstanding any other law, the Port is authorized to pay
a PILOT from any legally available source of revenue. The Port
may consider these payments to be operating expenses for all
purposes.
(g) Revenue from a PILOT shall be deposited in the general
fund of the City. The revenue may be used for any purpose for
which the City's general fund may be used.
(h) The first semiannual PILOT payment may not be due before
June 30, 2014.
