Bill Text: IN SB0541 | 2011 | Regular Session | Introduced
Bill Title: Regional economic development target area.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-01-18 - First reading: referred to Committee on Commerce & Economic Development [SB0541 Detail]
Download: Indiana-2011-SB0541-Introduced.html
Citations Affected: IC 6-3.5-9; IC 6-8.1-1-1.
Effective: Upon passage.
January 18, 2011, read first time and referred to Committee on Commerce & Economic
Development.
Digest Continued
target area income tax shall be allocated as provided in the project
agreement among all of the eligible counties that have entered into the
project agreement, based on the assistance provided by those eligible
counties for the economic development project.
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
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Chapter 9. Regional Economic Development Target Area and Income Tax
Sec. 1. (a) A regional economic development target area and a regional economic development target area income tax are authorized as an economic development pilot program as provided in this chapter.
(b) This chapter applies only to the following counties:
(1) Cass County.
(2) Fulton County.
(3) Howard County.
(4) Huntington County.
(5) Miami County.
(6) Wabash County.
Sec. 2. (a) Except as provided in subsection (b), as used in this chapter, "adjusted gross income" has the meaning set forth in IC 6-3-1-3.5.
(b) For purposes of this chapter, the term includes only the adjusted gross income derived from an individual's:
(1) place of business; or
(2) employment;
within a target area.
Sec. 3. As used in this chapter, "department" refers to the department of state revenue.
Sec. 4. As used in this chapter, "economic development project" means any project:
(1) that an eligible county determines will:
(A) increase or retain employment opportunities;
(B) attract a new business; or
(C) retain or expand a business; and
(2) that involves an expenditure for:
(A) the acquisition of land or interests in land;
(B) site improvements;
(C) infrastructure improvements;
(D) buildings and structures; or
(E) rehabilitation, renovation, and enlargement of buildings and structures.
Sec. 5. As used in this chapter, "eligible county" means a county listed in section 1(b) of this chapter.
Sec. 6. As used in this chapter, "project agreement" means an agreement entered into by a project county and one (1) or more other eligible counties under section 18 of this chapter.
Sec. 7. As used in this chapter, "project county" means an eligible county in which a target area has been established under this chapter.
Sec. 8. As used in this chapter, "redevelopment commission" means the redevelopment commission established under IC 36-7-14 for an eligible county.
Sec. 9. As used in this chapter, "target area" means a regional economic development target area approved and established under this chapter.
Sec. 10. As used in this chapter, "target area income tax" means a regional economic development target area income tax imposed under section 19 of this chapter.
Sec. 11. As used in this chapter, "target area taxpayer" means
an individual employed within a target area in which a target area
income tax is imposed, regardless of the county in which the
individual resides.
Sec. 12. If a redevelopment commission determines that the
establishment of a regional economic development target area
under this chapter may be necessary to carry out an economic
development project, the redevelopment commission shall compile
data and information that is sufficient to make the findings
required under section 13(b) of this chapter. The data and
information must also include the following:
(1) Maps and plats showing the boundaries of the target area.
(2) A description of the economic development project
proposed for the target area.
(3) An estimate of the amount, type, and timing of assistance
that may be necessary to carry out the economic development
project.
Sec. 13. (a) After compiling the data and information required
by section 12 of this chapter, a redevelopment commission may
adopt a preliminary resolution declaring the area described in the
maps and plats under section 12(1) of this chapter to be a target
area.
(b) A redevelopment commission may adopt a preliminary
resolution only after finding that the economic development
project proposed for the target area:
(1) will:
(A) increase or retain employment opportunities;
(B) attract a new business; or
(C) retain or expand a business; and
(2) involves an expenditure for:
(A) the acquisition of land or interests in land;
(B) site improvements;
(C) infrastructure improvements;
(D) buildings and structures; or
(E) rehabilitation, renovation, and enlargement of
buildings and structures.
Sec. 14. (a) Upon adoption of a preliminary resolution
designating a target area under section 13 of this chapter, a
redevelopment commission must publish (in accordance with
IC 5-3-1) notice of the adoption of the preliminary resolution and
of the hearing to be held on the final approval of the preliminary
resolution.
(b) A notice under subsection (a) must:
(1) provide a general description of the boundaries of the
target area and state that information concerning the target
area can be inspected at the redevelopment commission's
office; and
(2) specify the date when the redevelopment commission will
hold a hearing on the final approval of the preliminary
resolution and to receive and hear remonstrances and other
testimony concerning the proposed establishment of the target
area.
Sec. 15. (a) At the hearing on the final approval of the
preliminary resolution, which may be adjourned from time to time,
the redevelopment commission must:
(1) hear testimony from all persons interested in the proposed
establishment of the target area; and
(2) consider any written remonstrances that have been filed
with the redevelopment commission concerning the proposed
establishment of the target area.
(b) After considering the evidence presented at the hearing, the
redevelopment commission shall take final action:
(1) confirming;
(2) modifying and confirming; or
(3) rescinding;
the resolution. The action taken by the redevelopment commission
is final, except that an appeal may be taken under section 16 of this
chapter.
Sec. 16. (a) A person who filed a written remonstrance with a
redevelopment commission and is aggrieved by the final action of
the redevelopment commission under section 15 of this chapter
may, not more than ten (10) days after that final action by the
redevelopment commission, file an appeal in the office of the clerk
of the circuit court with a copy of the final resolution of the
redevelopment commission and the person's remonstrance against
that final resolution.
(b) If an appeal is filed under this section, the redevelopment
commission may petition that the appeal be dismissed unless the
remonstrator posts a bond with a surety approved by the court
payable to the redevelopment commission for the payment of all
damages and costs that may accrue by reason of the filing of the
lawsuit if the redevelopment commission prevails. A hearing on a
petition to dismiss an appeal shall be conducted in the same
manner as a hearing on a temporary injunction under IC 34-26. If
at the hearing the court determines that the remonstrator cannot
establish facts that would entitle the remonstrator to a temporary
injunction, the court shall set the amount of the bond to be filed by
the remonstrator in an amount found by the judge to cover all
damages and costs that may accrue to the redevelopment
commission because of the appeal if the redevelopment commission
prevails. If no bond is filed by the remonstrator with sureties
approved by the court within ten (10) days after the court's order
is entered, the suit shall be dismissed, and no court has further
jurisdiction of the appeal or any other lawsuit involving any issue
that was or could have been raised on the appeal.
(c) The burden of proof in the appeal is on the remonstrator,
and a change of venue from the county may not be granted.
(d) 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 not
more than thirty (30) days after the time of the filing of the appeal.
Notwithstanding any other law, the court shall decide the appeal
based on the record and evidence before the redevelopment
commission, not by trial de novo, and may sustain the
remonstrance only if it finds that the actions of the redevelopment
commission in adopting the resolution were arbitrary and
capricious.
(e) The court may confirm the final action of the redevelopment
commission or sustain the remonstrances. The judgment of the
court is final and conclusive, unless an appeal is taken as in other
civil actions.
Sec. 17. The determination of a redevelopment commission to
create a target area must be approved by ordinance of the
legislative body of the county.
Sec. 18. (a) If a target area is established under this chapter, the
project county in which the target area is located may enter into a
project agreement with one (1) or more other eligible counties
concerning the economic development project. A project
agreement must be entered into as an interlocal cooperation
agreement under IC 36-1-7.
(b) The eligible counties entering into the project agreement
shall specify at least the following in the project agreement:
(1) The amount, type, and timing of assistance that will be:
(A) provided by each eligible county entering into the
project agreement; and
(B) used to carry out the economic development project.
(2) Either:
(A) a determination of each eligible county's percentage
share of the total amount of assistance provided by all
eligible counties to carry out the economic development
project; or
(B) a description of the manner in which each eligible
county's percentage share of the total amount of assistance
provided by all eligible counties to carry out the economic
development project will be determined.
Sec. 19. (a) If a target area is established under this chapter, the
fiscal body of the project county may adopt an ordinance imposing,
increasing, decreasing, or rescinding a regional economic
development target area income tax under this chapter on the
adjusted gross income of target area taxpayers.
(b) The fiscal body of the project county must hold at least one
(1) public hearing on a proposed ordinance under this section
before the public hearing at which the ordinance is adopted. The
fiscal body of the project county must give public notice of the
public hearing under IC 5-3-1.
(c) Upon adoption of an ordinance under this section, the county
auditor shall immediately certify a copy of the ordinance to the
department.
Sec. 20. The target area income tax may be imposed in
increments of one-tenth percent (0.1%), but not to exceed a rate of
one percent (1%), on the adjusted gross income of target area
taxpayers.
Sec. 21. (a) Notwithstanding any other provision of this chapter,
a power granted by this chapter to adopt an ordinance to impose,
increase, decrease, or rescind the target area income tax may be
exercised at any time in a year before November 1 of that year.
(b) Notwithstanding any other provision of this chapter, an
ordinance authorized by this chapter that imposes or increases a
target area income tax takes effect as follows:
(1) An ordinance adopted after December 31 of the
immediately preceding year and before October 1 of the
current year takes effect October 1 of the current year.
(2) An ordinance adopted after September 30 and before
October 16 of the current year takes effect November 1 of the
current year.
(3) An ordinance adopted after October 15 and before
November 1 of the current year takes effect December 1 of the
current year.
(c) Notwithstanding any other provision of this chapter, an
ordinance authorized by this chapter that decreases or rescinds a
target area income tax takes effect as follows:
(1) An ordinance adopted after December 31 of the
immediately preceding year and before October 1 of the
current year takes effect on the later of October 1 of the
current year or the first day of the month in the current year
as the month in which the last increase in the tax or tax rate
occurred.
(2) An ordinance adopted after September 30 and before
October 16 of the current year takes effect on the later of
November 1 of the current year or the first day of the month
in the current year as the month in which the last increase in
the tax or tax rate occurred.
(3) An ordinance adopted after October 15 and before
November 1 of the current year takes effect December 1 of the
current year.
Sec. 22. (a) Revenue derived from the target area income tax
shall, in the manner prescribed by this chapter, be distributed to
the project county to be distributed as provided in the project
agreement to:
(1) the project county; and
(2) other eligible counties;
that have entered into the project agreement.
(b) Except as otherwise provided in the project agreement, the
percentage of the total target area income tax that shall be
distributed to each eligible county is equal to that county's
percentage share of the total amount of assistance:
(1) as specified in the project agreement under subsection
18(b)(2)(A) of this chapter; or
(2) as determined in the manner specified in the project
agreement under subsection 18(b)(2)(B) of this chapter.
Sec. 23. (a) A special account within the state general fund shall
be established for a project county that adopts a target area
income tax. Any revenue derived from the imposition of the target
area income tax by a project county shall be deposited in the
project county's account in the state general fund.
(b) Any income earned on money held in an account under
subsection (a) becomes a part of that account.
(c) Any revenue remaining in an account established under
subsection (a) at the end of a fiscal year does not revert to the state
general fund.
Sec. 24. (a) The amount to be distributed to a project county
during an ensuing calendar year equals the amount of target area
income tax revenue that the budget agency determines has been:
(1) received from that county for a taxable year ending before
the calendar year in which the determination is made; and
(2) reported on an annual return or amended return
processed by the department in the state fiscal year ending
before July 1 of the calendar year in which the determination
is made;
as adjusted for refunds of target area income tax made in the state
fiscal year.
(b) Before August 2 of each calendar year, the budget agency
shall certify to the county auditor of a project county the amount
determined under subsection (a) plus the amount of interest in the
project county's account that has accrued and has not been
included in a certification made in a preceding year. The amount
certified is the county's "certified distribution" for the immediately
succeeding calendar year. The amount certified shall be adjusted
under subsections (c), (d), and (e). The budget agency shall provide
the fiscal body of the project county with an informative summary
of the calculations used to determine the certified distribution. The
summary of calculations must include:
(1) the amount reported on individual income tax returns
processed by the department during the previous fiscal year;
(2) adjustments for over distributions in prior years;
(3) adjustments for clerical or mathematical errors in prior
years;
(4) adjustments for tax rate changes; and
(5) the amount of excess account balances to be distributed
under section 25 of this chapter.
(c) The budget agency shall certify an amount less than the
amount determined under subsection (b) if the budget agency
determines that the reduced distribution is necessary to offset
overpayments made in a calendar year before the calendar year of
the distribution. The budget agency may reduce the amount of the
certified distribution over several calendar years so that any
overpayments are offset over several years rather than in one (1)
lump sum.
(d) The budget agency shall adjust the certified distribution of
a county to correct for any clerical or mathematical errors made
in any previous certification under this section. The budget agency
may reduce the amount of the certified distribution over several
calendar years so that any adjustment under this subsection is
offset over several years rather than in one (1) lump sum.
(e) This subsection applies to a county that imposes, increases,
decreases, or rescinds a target area income tax or tax rate under
this chapter before November 1 in the same calendar year in which
the budget agency makes a certification under this section. The
budget agency shall adjust the certified distribution of a county to
provide for a distribution in the immediately following calendar
year and in each calendar year thereafter. The budget agency shall
provide for a full transition to certification of distributions as
provided in subsection (a)(1) through (a)(2) in the manner
provided in subsection (c). If the county imposes, increases,
decreases, or rescinds a target area income tax or tax rate under
this chapter after the date for which a certification under
subsection (b) is based, the budget agency shall adjust the certified
distribution of the county after August 1 of the calendar year. The
adjustment shall reflect any other adjustment required under
subsections (c) and (d). The adjusted certification shall be treated
as the project county's "certified distribution" for the immediately
succeeding calendar year. The budget agency shall certify the
adjusted certified distribution to the county auditor of the project
county and provide the county council of the project county with
an informative summary of the calculations that revises the
informative summary provided in subsection (b) and reflects the
changes made in the adjustment.
(f) One-twelfth (1/12) of a project county's certified distribution
for a calendar year shall be distributed from the project county's
account established under section 23 of this chapter to the county
treasurer of the project county on the first day of each month of
that calendar year.
(g) Upon receipt, each monthly payment of a project county's
certified distribution shall be allocated and distributed as provided
in the project agreement to:
(1) the project county; and
(2) other eligible counties;
that have entered into the project agreement.
(h) Tax revenue distributed to an eligible county under this
chapter:
(1) shall be treated by the eligible county as additional
revenue for the purpose of fixing the eligible county's budget
for the budget year during which the tax revenue is to be
distributed to the eligible county; and
(2) may be used for any lawful purpose of the eligible county.
(i) All distributions from the project county's account
established under section 23 of this chapter shall be made by
warrants issued by the auditor of state to the treasurer of state
ordering the appropriate payments.
Sec. 25. (a) Before October 2 of each year, the budget agency
shall submit a report to the county auditor of a project county
indicating the balance in the project county's account under section
23 of this chapter as of the cutoff date set by the budget agency.
(b) If the budget agency determines that a sufficient balance
exists in a project county's account under section 23 of this chapter
in excess of the amount necessary, when added to other money that
will be deposited in the account after the date of the determination,
to make certified distributions to the county in the ensuing year,
the budget agency shall make a supplemental distribution to a
project county from the project county's account. The budget
agency shall make a determination under this section before
October 2 of each year.
(c) A supplemental distribution described in subsection (b) must
be:
(1) made in January of the ensuing calendar year; and
(2) allocated and distributed as provided in section 24(g) of
this chapter.
Sec. 26. (a) Except as otherwise provided in subsection (b) and
the other provisions of this chapter, all provisions of the adjusted
gross income tax law (IC 6-3) concerning:
(1) definitions;
(2) declarations of estimated tax;
(3) filing of returns;
(4) deductions or exemptions from adjusted gross income;
(5) remittances;
(6) incorporation of the provisions of the Internal Revenue
Code;
(7) penalties and interest; and
(8) exclusion of military pay credits for withholding;
apply to the imposition, collection, and administration of the tax
imposed by this chapter.
(b) The provisions of IC 6-3-1-3.5(a)(6), IC 6-3-3-3, IC 6-3-3-5,
and IC 6-3-5-1 do not apply to the tax imposed by this chapter.
(c) Notwithstanding subsections (a) and (b), each employer shall
report to the department the amount of withholdings attributable
to a project county. This report shall be submitted to the
department:
(1) each time the employer remits to the department the tax
that is withheld; and
(2) annually along with the employer's annual withholding
report.
Sec. 27. The target area income tax imposed in a target area is
in addition to all other federal, state, and county income taxes paid
by individuals employed within the target area.
