Introduced Version
SENATE BILL No. 166
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DIGEST OF INTRODUCED BILL
Citations Affected: IC 5-23.
Synopsis: Tax exemption for P3 property. Adds definitions for
"transportation facility" and "transportation project". Provides that a
governmental body may enter into a public-private agreement with
respect to a transportation project. Provides that any public-private
agreement with respect to a transportation project may use tolling or
availability payments to finance all or a portion of the project. Provides
that a governmental body may also enter into a development agreement
with a private party for the development, construction, and financing
of a privately owned and operated transportation or infrastructure
project if the development agreement meets certain conditions.
Provides for a property tax exemption and a sales tax exemption.
Effective: July 1, 2022.
Walker K
January 4, 2022, read first time and referred to Committee on Tax and Fiscal Policy.
2022 IN 166—LS 6587/DI 134 Introduced
Second Regular Session of the 122nd General Assembly (2022)
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 this style type.
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 this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
SENATE BILL No. 166
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 5-23-2-17 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2022]: Sec. 17. "Transportation facility" means any new or
4 existing road, highway, toll highway, bridge, tunnel, intermodal
5 facility, intercity or high speed passenger or commercial rail, or
6 other transportation facility or infrastructure, under the
7 jurisdiction of a governmental body.
8 SECTION 2. IC 5-23-2-18 IS ADDED TO THE INDIANA CODE
9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
10 1, 2022]: Sec. 18. "Transportation project" means any combination
11 of the development, financing, or operation with respect to all or
12 a portion of any transportation facility under the jurisdiction of a
13 governmental body.
14 SECTION 3. IC 5-23-8 IS ADDED TO THE INDIANA CODE AS
15 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
16 1, 2022]:
17 Chapter 8. Transportation and Infrastructure Projects
2022 IN 166—LS 6587/DI 134 2
1 Sec. 1. (a) A governmental body may enter into a public-private
2 agreement with respect to a transportation project, if the
3 governmental body complies with the statutory requirements
4 under this article. Any public-private agreement with respect to a
5 transportation project may use tolling or availability payments to
6 finance all or a portion of the project.
7 (b) A governmental body may also enter into a development
8 agreement with a private party for the development, construction,
9 and financing of a privately owned and operated transportation or
10 infrastructure project if the development agreement:
11 (1) does not obligate the governmental body to spend any
12 public funds for the privately owned and operated
13 transportation or infrastructure project;
14 (2) obligates the private party to operate the transportation or
15 infrastructure project without limitation on the persons, class
16 of persons, or vehicles using the project, except as may be
17 dictated by safety, security, design, and load capacities of the
18 project; or
19 (3) obligates the private party to permit local, state, and
20 federal emergency vehicles, including vehicles operated by
21 police, fire, emergency medical services, and sheriff
22 personnel, to use the transportation project without tolls or
23 fees.
24 SECTION 4. IC 5-23-9 IS ADDED TO THE INDIANA CODE AS
25 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
26 1, 2022]:
27 Chapter 9. Tax Exemption
28 Sec. 1. (a) Any real property or tangible personal property used
29 exclusively for a public-private agreement executed in accordance
30 with this article or a development agreement that complies with the
31 requirements under IC 5-23-8 is exempt from all ad valorem
32 property taxes and special assessments that may be levied on the
33 property by the state or any political subdivision of the state.
34 (b) The sale of building and construction materials that are
35 incorporated into a transportation facility under a public-private
36 agreement or development agreement that complies with the
37 requirements under IC 5-23-8 are exempt from state gross retail
38 and use taxes under IC 6-2.5.
39 SECTION 5. [EFFECTIVE JULY 1, 2022] (a) IC 5-23-9-1(a), as
40 added by this act, applies to taxable years beginning after
41 December 31, 2022.
42 (b) This SECTION expires July 1, 2025.
2022 IN 166—LS 6587/DI 134 3
1 SECTION 6. [EFFECTIVE JULY 1, 2022] (a) IC 5-23-9-1(b), as
2 added by this act, applies only to retail transactions occurring after
3 December 31, 2022.
4 (b) Except as provided in subsection (c), a retail transaction is
5 considered to have occurred after December 31, 2022, if the
6 property whose transfer constitutes selling at retail is delivered to
7 the purchaser or to the place of delivery designated by the
8 purchaser after December 31, 2022.
9 (c) Notwithstanding the delivery of the property constituting
10 selling at retail after December 31, 2022, a transaction is
11 considered to have occurred before January 1, 2023, to the extent
12 that:
13 (1) the agreement of the parties to the transaction is entered
14 into before January 1, 2023; and
15 (2) payment for the property furnished in the transaction is
16 made before January 1, 2023.
17 (d) This SECTION expires January 1, 2025.
2022 IN 166—LS 6587/DI 134