Indiana 2022 Regular Session

Indiana House Bill HB1074 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1074
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 36-7-40.
7	7	Synopsis: Youth sports and tourism development areas. Allows the
8	8	legislative body of a city to adopt an ordinance establishing a youth
9	9	sports and tourism development area (tax area). Requires that the tax
10	10	area include a facility or complex of facilities used by youth sports
11	11	teams and organizations for practice or competitive sporting events.
12	12	Requires the legislative body to make findings when adopting an
13	13	ordinance. Requires the legislative body to submit an ordinance
14	14	establishing a tax area to the budget committee and budget agency for
15	15	review and approval. Allows a tax area to receive incremental state and
16	16	local income tax revenue and incremental sales tax revenue attributable
17	17	to the tax area. Requires a city that establishes a tax area to establish a
18	18	youth sports and tourism development area fund. Limits the amount of
19	19	incremental tax revenue that may be allocated to: (1) $1,000,000 per
20	20	tax area per year; and (2) a total of $10,000,000 per tax area. Provides
21	21	that a tax area terminates not later than 20 years after incremental tax
22	22	revenues are first allocated to the tax area.
23	23	Effective: July 1, 2022.
24	24	Heine
25	25	January 4, 2022, read first time and referred to Committee on Ways and Means.
26	26	2022 IN 1074—LS 6509/DI 125 Introduced
27	27	Second Regular Session of the 122nd General Assembly (2022)
28	28	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
29	29	Constitution) is being amended, the text of the existing provision will appear in this style type,
30	30	additions will appear in this style type, and deletions will appear in this style type.
31	31	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
32	32	provision adopted), the text of the new provision will appear in this style type. Also, the
33	33	word NEW will appear in that style type in the introductory clause of each SECTION that adds
34	34	a new provision to the Indiana Code or the Indiana Constitution.
35	35	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
36	36	between statutes enacted by the 2021 Regular Session of the General Assembly.
37	37	HOUSE BILL No. 1074
38	38	A BILL FOR AN ACT to amend the Indiana Code concerning local
39	39	government.
40	40	Be it enacted by the General Assembly of the State of Indiana:
41	41	1 SECTION 1. IC 36-7-40 IS ADDED TO THE INDIANA CODE AS
42	42	2 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
43	43	3 1, 2022]:
44	44	4 Chapter 40. Youth Sports and Tourism Development Area
45	45	5 Sec. 1. This chapter applies only to a city located in a county
46	46	6 that does not have a consolidated city.
47	47	7 Sec. 2. As used in this chapter, "budget agency" means the
48	48	8 budget agency created by IC 4-12-1-3.
49	49	9 Sec. 3. As used in this chapter, "budget committee" means the
50	50	10 budget committee established by IC 4-12-1-3.
51	51	11 Sec. 4. As used in this chapter, "department" refers to the
52	52	12 department of state revenue.
53	53	13 Sec. 5. As used in this chapter, "gross retail base period
54	54	14 amount" means the aggregate amount of state gross retail and use
55	55	15 taxes remitted under IC 6-2.5 by the businesses operating in the
56	56	16 territory comprising a tax area during the full state fiscal year that
57	57	17 precedes the date on which the legislative body of a city adopts an
58	58	2022 IN 1074—LS 6509/DI 125 2
59	59	1 ordinance establishing a tax area under section 14 of this chapter.
60	60	2 Sec. 6. As used in this chapter, "gross retail incremental
61	61	3 amount" means the remainder of:
62	62	4 (1) the aggregate amount of state gross retail and use taxes
63	63	5 that are remitted under IC 6-2.5 by businesses operating in a
64	64	6 tax area during a state fiscal year; minus
65	65	7 (2) the gross retail base period amount;
66	66	8 as determined by the department under section 19 of this chapter.
67	67	9 Sec. 7. As used in this chapter, "income tax base period
68	68	10 amount" means the aggregate amount of state and local income
69	69	11 taxes paid by employees employed in the territory comprising a tax
70	70	12 area with respect to wages and salary earned for work in the tax
71	71	13 area for the state fiscal year that precedes the date on which the
72	72	14 legislative body of a city adopts an ordinance establishing a tax
73	73	15 area under section 14 of this chapter.
74	74	16 Sec. 8. As used in this chapter, "income tax incremental
75	75	17 amount" means the remainder of:
76	76	18 (1) the aggregate amount of state and local income taxes paid
77	77	19 by employees employed in a tax area with respect to wages
78	78	20 earned for work in the tax area for a particular state fiscal
79	79	21 year; minus
80	80	22 (2) the income tax base period amount;
81	81	23 as determined by the department under section 19 of this chapter.
82	82	24 Sec. 9. As used in this chapter, "legislative body" means the
83	83	25 common council of a city.
84	84	26 Sec. 10. As used in this chapter, "state and local income taxes"
85	85	27 means taxes imposed under any of the following:
86	86	28 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).
87	87	29 (2) IC 6-3.6 (local income tax).
88	88	30 Sec. 11. As used in this chapter, "tax area" means a geographic
89	89	31 area established as a youth sports and tourism development area
90	90	32 under section 13 of this chapter.
91	91	33 Sec. 12. As used in this chapter, "taxpayer" means a person that
92	92	34 is liable for the part of the following taxes attributable to a tax area
93	93	35 established under section 14 of this chapter:
94	94	36 (1) The state gross retail tax imposed under IC 6-2.5-2-1 or
95	95	37 use tax imposed under IC 6-2.5-3-2.
96	96	38 (2) State and local income taxes.
97	97	39 Sec. 13. A legislative body may establish a youth sports and
98	98	40 tourism development area within the boundaries of the city that
99	99	41 must include a facility or complex of facilities used by youth sports
100	100	42 teams and organizations for practice or competitive sporting
101	101	2022 IN 1074—LS 6509/DI 125 3
102	102	1 events. A tax area may include any parcel of land on which the
103	103	2 facility or complex of facilities is located. A tax area may include
104	104	3 noncontiguous tracts of land within the city.
105	105	4 Sec. 14. (a) A tax area must be initially established by ordinance
106	106	5 according to the procedures set forth for the establishment of an
107	107	6 economic development area under IC 36-7-14. An ordinance
108	108	7 establishing a tax area must provide for the allocation of income
109	109	8 tax incremental amounts and gross retail incremental amounts
110	110	9 attributable to a tax area. The allocation provision must apply to
111	111	10 the entire tax area.
112	112	11 (b) This subsection does not apply to Lake County, Allen
113	113	12 County, or Hamilton County. The total number of tax areas in a
114	114	13 county at any particular time may not exceed one (1).
115	115	14 (c) In establishing the tax area, the legislative body must make
116	116	15 the following findings instead of the findings required for the
117	117	16 establishment of economic development areas:
118	118	17 (1) There is a capital improvement that will be undertaken or
119	119	18 has been undertaken in the tax area for a facility or complex
120	120	19 of facilities that is used by youth sports teams and
121	121	20 organizations for practice or competitive sporting events.
122	122	21 (2) The capital improvement that will be undertaken or has
123	123	22 been undertaken in the tax area will benefit the public health
124	124	23 and welfare and will be of public utility and benefit.
125	125	24 (3) The capital improvement that will be undertaken or has
126	126	25 been undertaken in the tax area will protect or increase state
127	127	26 and local tax bases and tax revenues.
128	128	27 (d) A legislative body adopting an ordinance under this section
129	129	28 shall designate the duration of the tax area. However, a tax area
130	130	29 must terminate not later than twenty (20) years after the income
131	131	30 tax incremental amount or gross retail incremental amount is first
132	132	31 allocated to the tax area.
133	133	32 (e) The tax area established under this chapter is a special
134	134	33 taxing district authorized by the general assembly to enable the
135	135	34 legislative body to provide special benefits to taxpayers in the tax
136	136	35 area by promoting economic development that is of public utility
137	137	36 and benefit.
138	138	37 Sec. 15. Except as otherwise provided in this chapter, after a tax
139	139	38 area is initially established, the tax area may not be changed and
140	140	39 the terms governing the tax area may not be revised.
141	141	40 Sec. 16. (a) Upon adoption of an ordinance establishing a tax
142	142	41 area under section 14 of this chapter, the legislative body shall
143	143	42 submit the following to the budget committee for review:
144	144	2022 IN 1074—LS 6509/DI 125 4
145	145	1 (1) A copy of the ordinance.
146	146	2 (2) A map of the tax area.
147	147	3 (3) A complete list of employers in the area and street names
148	148	4 and the range of street numbers of each street in the area.
149	149	5 (4) Any other information requested by the budget committee.
150	150	6 (b) The budget committee shall meet not later than sixty (60)
151	151	7 days after receipt of the materials described in subsection (a) and
152	152	8 make a recommendation on the ordinance to the budget agency.
153	153	9 Sec. 17. (a) The budget agency must approve the ordinance
154	154	10 before the income tax incremental amount and the gross retail
155	155	11 incremental amount may be allocated to the tax area under this
156	156	12 chapter.
157	157	13 (b) When considering an ordinance, the budget committee and
158	158	14 the budget agency must make the following findings:
159	159	15 (1) The cost of the capital improvement and the site of the
160	160	16 capital improvement specified under the ordinance exceeds
161	161	17 five million dollars ($5,000,000).
162	162	18 (2) The capital improvement specified under the ordinance is
163	163	19 economically sound and the establishment of the tax area will
164	164	20 benefit the people of Indiana by protecting or increasing state
165	165	21 and local tax bases and tax revenues for at least the duration
166	166	22 of the tax area established under this chapter.
167	167	23 (3) The city has committed significant resources toward
168	168	24 completion of the capital improvement identified in the
169	169	25 ordinance and to the establishment of the youth sports and
170	170	26 tourism development area.
171	171	27 Sec. 18. If a tax area is established under section 14 of this
172	172	28 chapter, the city shall create a youth sports and tourism
173	173	29 development area fund that consists of all deposits made under
174	174	30 section 20(d) of this chapter. Money in the fund is to be used for the
175	175	31 purposes described in section 22 of this chapter.
176	176	32 Sec. 19. (a) Before October 1 of each year, the department shall
177	177	33 calculate the income tax incremental amount and the gross retail
178	178	34 incremental amount for the preceding state fiscal year for each tax
179	179	35 area established under this chapter.
180	180	36 (b) Businesses operating in the tax area shall report annually, in
181	181	37 the manner and in the form prescribed by the department,
182	182	38 information that the department determines necessary to calculate
183	183	39 incremental gross retail, use, and income taxes. A taxpayer
184	184	40 operating in the tax area that files a consolidated tax return with
185	185	41 the department shall also file annually an informational return
186	186	42 with the department for each business location of the taxpayer
187	187	2022 IN 1074—LS 6509/DI 125 5
188	188	1 within the tax area. If a taxpayer fails to report the information
189	189	2 required by this section or file an informational return required by
190	190	3 this section, the department shall use the best information available
191	191	4 in calculating the incremental gross retail, use, and income taxes.
192	192	5 Sec. 20. (a) If the legislative body of a city adopts an ordinance
193	193	6 establishing a tax area under section 14 of this chapter, a state fund
194	194	7 known as the incremental tax financing fund is established for that
195	195	8 tax area. The fund shall be administered by the department.
196	196	9 Money in the fund does not revert to the state general fund at the
197	197	10 end of a state fiscal year.
198	198	11 (b) Subject to subsection (c), the following amounts shall be
199	199	12 deposited during each state fiscal year in the incremental tax
200	200	13 financing fund established for the tax area under subsection (a):
201	201	14 (1) The aggregate amount of state gross retail and use taxes
202	202	15 that are remitted under IC 6-2.5 by businesses operating in
203	203	16 the district, until the amount of state gross retail and use taxes
204	204	17 deposited equals the gross retail incremental amount for the
205	205	18 tax area.
206	206	19 (2) The aggregate amount of state and local income taxes paid
207	207	20 by employees employed in the tax area with respect to wages
208	208	21 earned for work in the tax area, until the amount of state and
209	209	22 local income taxes deposited equals the income tax
210	210	23 incremental amount.
211	211	24 (c) The aggregate amount of revenues that is attributable to
212	212	25 state gross retail and use taxes and state and local income taxes,
213	213	26 and is deposited in each incremental tax financing fund established
214	214	27 for a tax area, may not exceed:
215	215	28 (1) one million dollars ($1,000,000) per tax area during any
216	216	29 state fiscal year; and
217	217	30 (2) a total of ten million dollars ($10,000,000) per tax area.
218	218	31 (d) On or before the twentieth day of each month, all amounts
219	219	32 held in the incremental tax financing fund established for a tax
220	220	33 area shall be distributed to the fiscal officer of the city for deposit
221	221	34 in the city's youth sports and tourism development area fund.
222	222	35 Sec. 21. All distributions from the incremental tax financing
223	223	36 fund to the city shall be made by warrants issued by the auditor of
224	224	37 state to the treasurer of state ordering those payments to the fiscal
225	225	38 officer of the city.
226	226	39 Sec. 22. The ordinance establishing the tax area must designate
227	227	40 the use of the income tax incremental amounts and the gross retail
228	228	41 incremental amounts attributable to the tax area. The funds may
229	229	42 be used by a city only for the following:
230	230	2022 IN 1074—LS 6509/DI 125 6
231	231	1 (1) To acquire, improve, prepare, construct, maintain, repair,
232	232	2 operate, furnish, and equip capital improvements and
233	233	3 facilities located in, physically connected to, or directly
234	234	4 serving the tax area.
235	235	5 (2) To pay the principal and interest on any obligations,
236	236	6 including leases, that are payable solely or in part from money
237	237	7 deposited in the youth sports and tourism development area
238	238	8 fund and are incurred by the city for the purpose of financing
239	239	9 or refinancing the development of capital improvements or
240	240	10 facilities located in, physically connected to, or directly
241	241	11 serving the tax area.
242	242	12 (3) To establish, augment, or restore a debt service reserve for
243	243	13 obligations.
244	244	14 (4) To pay capital expenses incurred by the city for capital
245	245	15 improvements or facilities that are physically connected to or
246	246	16 directly serving the tax area.
247	247	17 Sec. 23. The general assembly covenants that this chapter will
248	248	18 not be repealed or amended in a manner that will adversely affect
249	249	19 the owners of bonds or other obligations issued under this chapter.
250	250	2022 IN 1074—LS 6509/DI 125