Indiana 2022 Regular Session

Indiana Senate Bill SB0373 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 373
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 4-33-6.7-8; IC 6-9; IC 36-7-41; IC 36-7.5-3-7.
7	7	Synopsis: Lake County convention and entertainment district.
8	8	Establishes the Lake County convention and entertainment district fund
9	9	(fund). Specifies permissible uses for money in the fund. Provides that
10	10	the Northwest Indiana regional development authority (development
11	11	authority) administers the fund. Requires the licensed owner of a
12	12	riverboat operating in Vigo County to pay 0.5% of the riverboat's
13	13	adjusted gross receipts in a year to the development authority for
14	14	deposit in the fund for 10 years. Allows the Lake County fiscal body to
15	15	adopt an increase in the county innkeeper's tax. Provides that part of the
16	16	revenue from an increase in the county innkeeper's tax must be
17	17	deposited in the fund. Authorizes the city of Gary to impose a food and
18	18	beverage tax on transactions occurring in a specified area. Specifies the
19	19	distribution of the revenue from the food and beverage tax. Allows the
20	20	Lake County legislative body to adopt an ordinance establishing a
21	21	convention and entertainment district development area (tax area).
22	22	Requires the legislative body to make findings when adopting an
23	23	ordinance. Requires the legislative body to submit an ordinance
24	24	establishing a tax area to the budget committee and budget agency for
25	25	review and approval. Allows a tax area to receive incremental state and
26	26	local income tax revenue and incremental sales tax revenue attributable
27	27	to the tax area. Provides that the revenue attributable to the tax area
28	28	must be deposited in the fund. Limits the amount of incremental tax
29	29	revenue that may be allocated to $8,000,000 per year. Provides that a
30	30	tax area terminates not later than 20 years after incremental tax
31	31	revenues are first allocated to the tax area. Changes population
32	32	parameters to reflect the population count determined under the 2020
33	33	decennial census.
34	34	Effective: July 1, 2022.
35	35	Charbonneau, Melton
36	36	January 11, 2022, read first time and referred to Committee on Appropriations.
37	37	2022 IN 373—LS 6971/DI 125 Introduced
38	38	Second Regular Session of the 122nd General Assembly (2022)
39	39	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
40	40	Constitution) is being amended, the text of the existing provision will appear in this style type,
41	41	additions will appear in this style type, and deletions will appear in this style type.
42	42	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
43	43	provision adopted), the text of the new provision will appear in this style type. Also, the
44	44	word NEW will appear in that style type in the introductory clause of each SECTION that adds
45	45	a new provision to the Indiana Code or the Indiana Constitution.
46	46	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
47	47	between statutes enacted by the 2021 Regular Session of the General Assembly.
48	48	SENATE BILL No. 373
49	49	A BILL FOR AN ACT to amend the Indiana Code concerning
50	50	taxation.
51	51	Be it enacted by the General Assembly of the State of Indiana:
52	52	1 SECTION 1. IC 4-33-6.7-8 IS ADDED TO THE INDIANA CODE
53	53	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
54	54	3 1, 2022]: Sec. 8. In each of the first ten (10) years after a licensed
55	55	4 owner begins gaming operations on a riverboat operated in Vigo
56	56	5 County, the licensed owner of the riverboat operating in Vigo
57	57	6 County shall pay an amount equal to five-tenths percent (0.5%) of
58	58	7 the riverboat's adjusted gross receipts in a particular year to the
59	59	8 northwest Indiana redevelopment authority established by
60	60	9 IC 36-7.5-2-1 for deposit in the Lake County convention and
61	61	10 entertainment district fund established by IC 36-7.5-3-7(a).
62	62	11 SECTION 2. IC 6-9-2-1, AS AMENDED BY P.L.175-2018,
63	63	12 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
64	64	13 JULY 1, 2022]: Sec. 1. (a) A county having a population of more than
65	65	14 four hundred thousand (400,000) but less than seven hundred thousand
66	66	15 (700,000) that establishes a medical center development agency
67	67	16 pursuant to IC 16-23.5-2 may levy each year a tax on every person
68	68	17 engaged in the business of renting or furnishing, for periods of less than
69	69	2022 IN 373—LS 6971/DI 125 2
70	70	1 thirty (30) days by the same party in the same room, any room or
71	71	2 rooms, lodgings, or accommodations, in any hotel, motel, inn, tourist
72	72	3 camp, tourist cabin, or any other place in which rooms, lodgings, or
73	73	4 accommodations are regularly furnished for a consideration.
74	74	5 (b) Except as provided in section 1.5 of this chapter, such tax
75	75	6 shall be at a rate of five percent (5%) on the gross retail income derived
76	76	7 therefrom and is in addition to the state gross retail tax imposed on the
77	77	8 retail transaction.
78	78	9 (c) The county fiscal body may adopt an ordinance to require that
79	79	10 the tax shall be paid monthly to the county treasurer. Except as
80	80	11 provided in section 1.5 of this chapter, if such an ordinance is
81	81	12 adopted, the tax shall be paid to the county treasurer not more than
82	82	13 twenty (20) days after the end of the month the tax is collected. If such
83	83	14 an ordinance is not adopted, the tax shall be imposed, paid, and
84	84	15 collected in exactly the same manner as the state gross retail tax is
85	85	16 imposed, paid, and collected.
86	86	17 (d) All of the provisions of the state gross retail tax (IC 6-2.5)
87	87	18 relating to rights, duties, liabilities, procedures, penalties, definitions,
88	88	19 exemptions, and administration shall be applicable to the imposition
89	89	20 and administration of the tax imposed by this section except to the
90	90	21 extent such provisions are in conflict or inconsistent with the specific
91	91	22 provisions of this chapter or the requirements of the county treasurer.
92	92	23 Specifically and not in limitation of the foregoing sentence, the terms
93	93	24 "person" and "gross retail income" shall have the same meaning in this
94	94	25 section as they have in the state gross retail tax (IC 6-2.5). If the tax is
95	95	26 paid to the department of state revenue, the returns to be filed for the
96	96	27 payment of the tax under this section may be either a separate return or
97	97	28 may be combined with the return filed for the payment of the state
98	98	29 gross retail tax as the department of state revenue may, by rule,
99	99	30 determine.
100	100	31 (e) If the tax is paid to the department of state revenue, the amounts
101	101	32 received from the tax shall be paid by the end of the next succeeding
102	102	33 month by the treasurer of state to the county treasurer upon warrants
103	103	34 issued by the auditor of state. Except as provided in section 1.5(c)
104	104	35 and 1.5(d) of this chapter, the county treasurer shall deposit the
105	105	36 revenue received under this chapter as provided in section 2 of this
106	106	37 chapter.
107	107	38 SECTION 3. IC 6-9-2-1.5 IS ADDED TO THE INDIANA CODE
108	108	39 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
109	109	40 1, 2022]: Sec. 1.5. (a) After June 30, 2022, the county fiscal body
110	110	41 may adopt an ordinance to increase the tax rate imposed under
111	111	42 section 1 of this chapter by three percent (3%).
112	112	2022 IN 373—LS 6971/DI 125 3
113	113	1 (b) If the county fiscal body adopts an ordinance under this
114	114	2 section:
115	115	3 (1) it shall immediately send a certified copy of the ordinance
116	116	4 to the department of state revenue; and
117	117	5 (2) the increase applies to transactions after the last day of the
118	118	6 month in which the ordinance is adopted, if the county fiscal
119	119	7 body adopts the ordinance on or before the fifteenth day of a
120	120	8 month. If the county fiscal body adopts the ordinance after
121	121	9 the fifteenth day of a month, the tax applies to transactions
122	122	10 after the last day of the month following the month in which
123	123	11 the ordinance is adopted.
124	124	12 The increase in the tax imposed under this section continues in
125	125	13 effect unless the increase is rescinded.
126	126	14 (c) The amounts received from an increase adopted under this
127	127	15 section shall be paid according to the following allocation:
128	128	16 (1) Except as provided in subsection (d), the amount from a
129	129	17 rate of one and five-tenths percent (1.5%) to the northwest
130	130	18 Indiana redevelopment authority established under
131	131	19 IC 36-7.5-2-1 for deposit in the Lake County convention and
132	132	20 entertainment district fund established by IC 36-7.5-3-7(a) to
133	133	21 be used for the purposes of the Lake County convention and
134	134	22 entertainment district fund.
135	135	23 (2) The amount from a rate of one and five-tenths percent
136	136	24 (1.5%) to the county treasurer to be allocated as provided in
137	137	25 section 2 of this chapter.
138	138	26 (d) As long as there are any current or future obligations owed
139	139	27 from the Lake County convention and entertainment district fund
140	140	28 as described in IC 36-7.5-3-7(d), the revenues described in
141	141	29 subsection (c)(1) shall be allocated according to subsection (c)(1).
142	142	30 If there are no obligations owed, the amounts described in
143	143	31 subsection (c)(1) shall instead be paid to the city of Gary to be used
144	144	32 for public safety purposes.
145	145	33 SECTION 4. IC 6-9-2-2, AS AMENDED BY P.L.81-2019,
146	146	34 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
147	147	35 JULY 1, 2022]: Sec. 2. (a) This section does not apply to any
148	148	36 revenue paid according to section 1.5(c)(1) or 1.5(d) of this chapter.
149	149	37 (b) The revenue received by the county treasurer under this chapter
150	150	38 shall be allocated to the Lake County convention and visitor bureau,
151	151	39 Indiana University-Northwest, Purdue University Northwest, municipal
152	152	40 public safety departments, municipal physical and economic
153	153	41 development divisions, and the cities and towns in the county as
154	154	42 provided in this section. Subsections (b) through (g) (c) through (h) do
155	155	2022 IN 373—LS 6971/DI 125 4
156	156	1 not apply to the distribution of revenue received under section 1 of this
157	157	2 chapter from hotels, motels, inns, tourist camps, tourist cabins, and
158	158	3 other lodgings or accommodations built or refurbished after June 30,
159	159	4 1993, that are located in the city of Gary.
160	160	5 (b) (c) The Lake County convention and visitor bureau shall
161	161	6 establish a convention, tourism, and visitor promotion fund (referred
162	162	7 to in this chapter as the "promotion fund"). The county treasurer shall
163	163	8 transfer to the Lake County convention and visitor bureau for deposit
164	164	9 in the promotion fund thirty-five percent (35%) of the first one million
165	165	10 two hundred thousand dollars ($1,200,000) of revenue received from
166	166	11 the tax imposed under this chapter in each year. The promotion fund
167	167	12 consists of:
168	168	13 (1) money in the promotion fund on June 30, 2005;
169	169	14 (2) revenue deposited in the promotion fund under this subsection
170	170	15 after June 30, 2005; and
171	171	16 (3) investment income earned on the promotion fund's assets.
172	172	17 Money in the funds established by the bureau may be expended to
173	173	18 promote and encourage conventions, trade shows, special events,
174	174	19 recreation, and visitors. Money may be paid from the funds established
175	175	20 by the bureau, by claim in the same manner as municipalities may pay
176	176	21 claims under IC 5-11-10-1.6.
177	177	22 (c) (d) This subsection applies to the first one million two hundred
178	178	23 thousand dollars ($1,200,000) of revenue received from the tax
179	179	24 imposed under this chapter in each year. During each year, the county
180	180	25 treasurer shall transfer to Indiana University-Northwest forty-four and
181	181	26 thirty-three hundredths percent (44.33%) of the revenue received under
182	182	27 this chapter for that year to be used as follows:
183	183	28 (1) Seventy-five percent (75%) of the revenue received under this
184	184	29 subsection may be used only for the university's medical
185	185	30 education programs.
186	186	31 (2) Twenty-five percent (25%) of the revenue received under this
187	187	32 subsection may be used only for the university's allied health
188	188	33 education programs.
189	189	34 (d) (e) This subsection applies to the first one million two hundred
190	190	35 thousand dollars ($1,200,000) of revenue received from the tax
191	191	36 imposed under this chapter in each year. During each year, the county
192	192	37 treasurer shall allocate among the cities and towns throughout the
193	193	38 county nine percent (9%) of the revenue received under this chapter for
194	194	39 that year as follows:
195	195	40 (1) Ten percent (10%) of the revenue covered by this subsection
196	196	41 shall be distributed to cities having a population of more than
197	197	42 eighty thousand (80,000) but less than eighty thousand four
198	198	2022 IN 373—LS 6971/DI 125 5
199	199	1 hundred (80,400). sixty-nine thousand (69,000) and less than
200	200	2 sixty-nine thousand five hundred (69,500).
201	201	3 (2) Ten percent (10%) of the revenue covered by this subsection
202	202	4 shall be distributed to cities having a population of more than
203	203	5 eighty thousand five hundred (80,500) but less than one hundred
204	204	6 thousand (100,000). seventy-five thousand (75,000) and less
205	205	7 than seventy-nine thousand (79,000).
206	206	8 (3) Ten percent (10%) of the revenue covered by this subsection
207	207	9 shall be distributed to cities having a population of more than
208	208	10 twenty-nine thousand six hundred (29,600) but less than
209	209	11 twenty-nine thousand nine hundred (29,900). twenty-six
210	210	12 thousand (26,000) and less than twenty-eight thousand
211	211	13 (28,000).
212	212	14 (4) Seventy percent (70%) of the revenue covered by this
213	213	15 subsection shall be distributed in equal amounts to each town and
214	214	16 each city not receiving a distribution under subdivisions (1)
215	215	17 through (3).
216	216	18 The money distributed under this subsection may be used only for
217	217	19 tourism and economic development projects. The county treasurer shall
218	218	20 make the distributions on or before December 1 of each year.
219	219	21 (e) (f) This subsection applies to the first one million two hundred
220	220	22 thousand dollars ($1,200,000) of revenue received from the tax
221	221	23 imposed under this chapter in each year. During each year, the county
222	222	24 treasurer shall transfer to Purdue University Northwest nine percent
223	223	25 (9%) of the revenue received under this chapter for that year. The
224	224	26 money received by Purdue University Northwest may be used by the
225	225	27 university only for nursing education programs.
226	226	28 (f) (g) This subsection applies to the first one million two hundred
227	227	29 thousand dollars ($1,200,000) of revenue received from the tax
228	228	30 imposed under this chapter in each year. During each year, the county
229	229	31 treasurer shall transfer two and sixty-seven hundredths percent (2.67%)
230	230	32 of the revenue received under this chapter for that year to the following
231	231	33 cities:
232	232	34 (1) Fifty percent (50%) of the revenue covered by this subsection
233	233	35 shall be transferred to cities having a population of more than
234	234	36 eighty thousand (80,000) but less than eighty thousand four
235	235	37 hundred (80,400). sixty-nine thousand (69,000) and less than
236	236	38 sixty-nine thousand five hundred (69,500).
237	237	39 (2) Fifty percent (50%) of the revenue covered by this subsection
238	238	40 shall be transferred to cities having a population of more than
239	239	41 eighty thousand five hundred (80,500) but less than one hundred
240	240	42 thousand (100,000). seventy-five thousand (75,000) and less
241	241	2022 IN 373—LS 6971/DI 125 6
242	242	1 than seventy-nine thousand (79,000).
243	243	2 Money transferred under this subsection may be used only for
244	244	3 convention facilities located within the city. In addition, the money may
245	245	4 be used only for facility marketing, sales, and public relations
246	246	5 programs. Money transferred under this subsection may not be used for
247	247	6 salaries, facility operating costs, or capital expenditures related to the
248	248	7 convention facilities. The county treasurer shall make the transfers on
249	249	8 or before December 1 of each year.
250	250	9 (g) (h) This subsection applies to the revenue received from the tax
251	251	10 imposed under this chapter in each year that exceeds one million two
252	252	11 hundred thousand dollars ($1,200,000). During each year, the county
253	253	12 treasurer shall distribute money in the promotion fund as follows:
254	254	13 (1) Eighty-five percent (85%) of the revenue covered by this
255	255	14 subsection shall be deposited in the convention, tourism, and
256	256	15 visitor promotion fund. The money deposited in the fund under
257	257	16 this subdivision may be used only for the purposes for which
258	258	17 other money in the fund may be used.
259	259	18 (2) Five percent (5%) of the revenue covered by this subsection
260	260	19 shall be transferred to Purdue University Northwest. The money
261	261	20 received by Purdue University Northwest under this subdivision
262	262	21 may be used by the university only for nursing education
263	263	22 programs.
264	264	23 (3) Five percent (5%) of the revenue covered by this subsection
265	265	24 shall be transferred to Indiana University-Northwest. The money
266	266	25 received by Indiana University-Northwest under this subdivision
267	267	26 may be used only for the university's medical education programs.
268	268	27 (4) Five percent (5%) of the revenue covered by this subsection
269	269	28 shall be transferred to Indiana University-Northwest. The money
270	270	29 received by Indiana University-Northwest under this subdivision
271	271	30 may be used only for the university's allied health education
272	272	31 programs.
273	273	32 (h) (i) This subsection applies only to the distribution of revenue
274	274	33 received from the tax imposed under section 1 of this chapter from
275	275	34 hotels, motels, inns, tourist camps, tourist cabins, and other lodgings or
276	276	35 accommodations built or refurbished after June 30, 1993, that are
277	277	36 located in the city of Gary. During each year, the county treasurer shall
278	278	37 transfer:
279	279	38 (1) seventy-five percent (75%) of the revenues under this
280	280	39 subsection to the department of public safety; and
281	281	40 (2) twenty-five percent (25%) of the revenues under this
282	282	41 subsection to the division of physical and economic development;
283	283	42 of the city of Gary.
284	284	2022 IN 373—LS 6971/DI 125 7
285	285	1 (i) (j) The Lake County convention and visitor bureau shall assist
286	286	2 the county treasurer, as needed, with the calculation of the amounts that
287	287	3 must be deposited and transferred under this section.
288	288	4 SECTION 5. IC 6-9-54 IS ADDED TO THE INDIANA CODE AS
289	289	5 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
290	290	6 1, 2022]:
291	291	7 Chapter 54. Gary Food and Beverage Tax
292	292	8 Sec. 1. This chapter applies to the city of Gary.
293	293	9 Sec. 2. The definitions in IC 6-9-12-1 apply throughout this
294	294	10 chapter.
295	295	11 Sec. 3. (a) The fiscal body of the city may adopt an ordinance to
296	296	12 impose an excise tax on transactions described in section 4 of this
297	297	13 chapter. The fiscal body of the city may adopt an ordinance under
298	298	14 this subsection only after the fiscal body has previously held at
299	299	15 least one (1) separate public hearing in which a discussion of the
300	300	16 proposed ordinance to impose the city food and beverage tax is the
301	301	17 only substantive issue on the agenda for that public hearing.
302	302	18 (b) If the city fiscal body adopts an ordinance under subsection
303	303	19 (a), the city fiscal body shall immediately send a certified copy of
304	304	20 the ordinance to the department of state revenue.
305	305	21 (c) If the city fiscal body adopts an ordinance under subsection
306	306	22 (a), the city food and beverage tax applies to transactions that
307	307	23 occur after the later of the following:
308	308	24 (1) The day specified in the ordinance.
309	309	25 (2) The last day of the month that succeeds the month in
310	310	26 which the ordinance is adopted.
311	311	27 Sec. 4. (a) Except as provided in subsection (c), a tax imposed
312	312	28 under section 3 of this chapter applies to a transaction in which a
313	313	29 food or beverage is furnished, prepared, or served:
314	314	30 (1) for consumption at a location or on equipment provided by
315	315	31 a retail merchant;
316	316	32 (2) by a retail merchant for consideration; and
317	317	33 (3) in an area in Gary, Indiana, bounded:
318	318	34 (A) on the north by West 25th Avenue;
319	319	35 (B) on the west by Cline Avenue;
320	320	36 (C) on the east by Broadway; and
321	321	37 (D) on the south by Ridge Road;
322	322	38 as those streets were located on July 1, 2022.
323	323	39 (b) Transactions described in subsection (a)(1) include
324	324	40 transactions in which food or beverage is:
325	325	41 (1) served by a retail merchant off the merchant's premises;
326	326	42 (2) food sold in a heated state or heated by a retail merchant;
327	327	2022 IN 373—LS 6971/DI 125 8
328	328	1 (3) made of two (2) or more food ingredients, mixed or
329	329	2 combined by a retail merchant for sale as a single item (other
330	330	3 than food that is only cut, repackaged, or pasteurized by the
331	331	4 seller, and eggs, fish, meat, poultry, and foods containing these
332	332	5 raw animal foods requiring cooking by the consumer as
333	333	6 recommended by the federal Food and Drug Administration
334	334	7 in chapter 3, subpart 3-401.11 of its Food Code so as to
335	335	8 prevent food borne illnesses); or
336	336	9 (4) food sold with eating utensils provided by a retail
337	337	10 merchant, including plates, knives, forks, spoons, glasses,
338	338	11 cups, napkins, or straws (for purposes of this subdivision, a
339	339	12 plate does not include a container or package used to
340	340	13 transport the food).
341	341	14 (c) The city food and beverage tax does not apply to the
342	342	15 furnishing, preparing, or serving of a food or beverage in a
343	343	16 transaction that is exempt, or to the extent the transaction is
344	344	17 exempt, from the state gross retail tax imposed by IC 6-2.5.
345	345	18 Sec. 5. A tax imposed under section 3 of this chapter is in
346	346	19 addition to any tax imposed under IC 6-9-36.
347	347	20 Sec. 6. The city food and beverage tax rate may not exceed one
348	348	21 percent (1%) of the gross retail income received by the merchant
349	349	22 from the food or beverage transaction described in section 4 of this
350	350	23 chapter. For purposes of this chapter, the gross retail income
351	351	24 received by the retail merchant from a transaction does not include
352	352	25 the amount of tax imposed on the transaction under IC 6-2.5 or
353	353	26 IC 6-9-36.
354	354	27 Sec. 7. A tax imposed under this chapter shall be imposed, paid,
355	355	28 and collected in the same manner that the state gross retail tax is
356	356	29 imposed, paid, and collected under IC 6-2.5. However, the return
357	357	30 to be filed with the payment of the tax imposed under this chapter
358	358	31 may be made on a separate return or may be combined with the
359	359	32 return filed for the payment of the state gross retail tax, as
360	360	33 prescribed by the department of state revenue.
361	361	34 Sec. 8. (a) The treasurer of state shall pay the first one million
362	362	35 dollars ($1,000,000) of revenue received from the tax imposed
363	363	36 under this chapter in each year to the northwest Indiana
364	364	37 redevelopment authority established by IC 36-7.5-2-1. The
365	365	38 northwest Indiana redevelopment authority shall deposit all
366	366	39 amounts received under this subsection in the Lake County
367	367	40 convention and entertainment district fund established by
368	368	41 IC 36-7.5-3-7(a) to be used for the purposes described in
369	369	42 IC 36-7.5-3-7(d).
370	370	2022 IN 373—LS 6971/DI 125 9
371	371	1 (b) The treasurer of state shall pay the amount of revenue
372	372	2 received from the tax imposed under this chapter in each year that
373	373	3 exceeds one million dollars ($1,000,000) to the city of Gary to be
374	374	4 used for public safety purposes.
375	375	5 Sec. 9. With respect to obligations for which a pledge has been
376	376	6 made under section 8 of this chapter, the general assembly
377	377	7 covenants with the holders of the obligations that this chapter will
378	378	8 not be repealed or amended in a manner that will adversely affect
379	379	9 the imposition or collection of the tax imposed under this chapter
380	380	10 if the payment of any of the obligations is outstanding.
381	381	11 SECTION 6. IC 36-7-41 IS ADDED TO THE INDIANA CODE AS
382	382	12 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
383	383	13 1, 2022]:
384	384	14 Chapter 41. Convention and Entertainment District
385	385	15 Development Area
386	386	16 Sec. 1. This chapter applies only to Lake County.
387	387	17 Sec. 2. As used in this chapter, "budget agency" means the
388	388	18 budget agency created by IC 4-12-1-3.
389	389	19 Sec. 3. As used in this chapter, "budget committee" means the
390	390	20 budget committee established by IC 4-12-1-3.
391	391	21 Sec. 4. As used in this chapter, "department" refers to the
392	392	22 department of state revenue.
393	393	23 Sec. 5. As used in this chapter, "gross retail base period
394	394	24 amount" means the aggregate amount of state gross retail and use
395	395	25 taxes remitted under IC 6-2.5 by the businesses operating in the
396	396	26 territory comprising a tax area during the state fiscal year
397	397	27 beginning July 1, 2020, and ending June 30, 2021.
398	398	28 Sec. 6. As used in this chapter, "gross retail incremental
399	399	29 amount" means the remainder of:
400	400	30 (1) the aggregate amount of state gross retail and use taxes
401	401	31 that are remitted under IC 6-2.5 by businesses operating in a
402	402	32 tax area during a state fiscal year; minus
403	403	33 (2) the gross retail base period amount;
404	404	34 as determined by the department under section 18 of this chapter.
405	405	35 Sec. 7. As used in this chapter, "income tax base period
406	406	36 amount" means the aggregate amount of state and local income
407	407	37 taxes paid by employees employed in the territory comprising a tax
408	408	38 area with respect to wages and salary earned for work in the tax
409	409	39 area for the state fiscal year beginning July 1, 2020, and ending
410	410	40 June 30, 2021.
411	411	41 Sec. 8. As used in this chapter, "income tax incremental
412	412	42 amount" means the remainder of:
413	413	2022 IN 373—LS 6971/DI 125 10
414	414	1 (1) the aggregate amount of state and local income taxes paid
415	415	2 by employees employed in a tax area with respect to wages
416	416	3 earned for work in the tax area for a particular state fiscal
417	417	4 year; minus
418	418	5 (2) the income tax base period amount;
419	419	6 as determined by the department under section 18 of this chapter.
420	420	7 Sec. 9. As used in this chapter, "legislative body" means the
421	421	8 county legislative body.
422	422	9 Sec. 10. As used in this chapter, "state and local income taxes"
423	423	10 means taxes imposed under any of the following:
424	424	11 (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax).
425	425	12 (2) IC 6-3.6 (local income tax).
426	426	13 Sec. 11. As used in this chapter, "tax area" means a geographic
427	427	14 area established as a convention and entertainment district
428	428	15 development area under section 13 of this chapter.
429	429	16 Sec. 12. As used in this chapter, "taxpayer" means a person that
430	430	17 is liable for the part of the following taxes attributable to a tax area
431	431	18 established under section 14 of this chapter:
432	432	19 (1) The state gross retail tax imposed under IC 6-2.5-2-1 or
433	433	20 use tax imposed under IC 6-2.5-3-2.
434	434	21 (2) State and local income taxes.
435	435	22 Sec. 13. (a) A legislative body may establish a convention and
436	436	23 entertainment district development area that includes a facility or
437	437	24 complex of facilities described in this section. The tax area may
438	438	25 include any parcel of land on which the facility or complex of
439	439	26 facilities is located. The tax area may include noncontiguous tracts
440	440	27 of land within the city.
441	441	28 (b) The tax area includes the area located in Gary, Indiana, and
442	442	29 Lake County, Indiana, that is bounded:
443	443	30 (1) on the north by West 25th Avenue;
444	444	31 (2) on the west by Cline Avenue;
445	445	32 (3) on the east by Broadway; and
446	446	33 (4) on the south by Ridge Road;
447	447	34 as those streets were located on July 1, 2022.
448	448	35 Sec. 14. (a) A tax area must be initially established by ordinance
449	449	36 according to the procedures set forth for the establishment of an
450	450	37 economic development area under IC 36-7-14. An ordinance
451	451	38 establishing a tax area must provide for the allocation of income
452	452	39 tax incremental amounts and gross retail incremental amounts
453	453	40 attributable to a tax area. The allocation provision must apply to
454	454	41 the entire tax area.
455	455	42 (b) In establishing the tax area, the legislative body must make
456	456	2022 IN 373—LS 6971/DI 125 11
457	457	1 the following findings instead of the findings required for the
458	458	2 establishment of economic development areas:
459	459	3 (1) There is a capital improvement that will be undertaken or
460	460	4 has been undertaken in the tax area for a facility or complex
461	461	5 of facilities that is owned by the Lake County Parks and
462	462	6 Recreation Department and used principally for convention
463	463	7 or tourism related events serving national or regional
464	464	8 markets.
465	465	9 (2) The capital improvement that will be undertaken or has
466	466	10 been undertaken in the tax area will benefit the public health
467	467	11 and welfare and will be of public utility and benefit.
468	468	12 (3) The capital improvement that will be undertaken or has
469	469	13 been undertaken in the tax area will protect or increase state
470	470	14 and local tax bases and tax revenues.
471	471	15 (c) A legislative body adopting an ordinance under this section
472	472	16 shall designate the duration of the tax area. However, a tax area
473	473	17 must terminate not later than twenty (20) years after the income
474	474	18 tax incremental amount or gross retail incremental amount is first
475	475	19 allocated to the tax area.
476	476	20 (d) The tax area established under this chapter is a special
477	477	21 taxing district authorized by the general assembly to enable the
478	478	22 legislative body to provide special benefits to taxpayers in the tax
479	479	23 area by promoting economic development that is of public utility
480	480	24 and benefit.
481	481	25 Sec. 15. Except as otherwise provided in this chapter, after a tax
482	482	26 area is initially established, the tax area may not be changed and
483	483	27 the terms governing the tax area may not be revised.
484	484	28 Sec. 16. (a) Upon adoption of an ordinance establishing a tax
485	485	29 area under section 14 of this chapter, the legislative body shall:
486	486	30 (1) publish notice of the adoption and substance of the
487	487	31 ordinance in accordance with IC 5-3-1; and
488	488	32 (2) file the following information with each taxing unit in the
489	489	33 county where the tax area is located:
490	490	34 (A) A copy of the notice required by subdivision (1).
491	491	35 (B) A statement disclosing the impact of the tax area,
492	492	36 including the following:
493	493	37 (i) The estimated economic benefits and costs incurred
494	494	38 by the tax area, as measured by increased employment
495	495	39 and anticipated growth of property assessed values.
496	496	40 (ii) The anticipated impact on tax revenues of each
497	497	41 taxing unit.
498	498	42 The notice must state the boundaries of the tax area.
499	499	2022 IN 373—LS 6971/DI 125 12
500	500	1 (b) Upon completion of the actions required by subsection (a),
501	501	2 the legislative body shall submit the ordinance to the budget
502	502	3 committee for review. The budget committee shall meet not later
503	503	4 than sixty (60) days after receipt of an ordinance and shall make a
504	504	5 recommendation on the ordinance to the budget agency.
505	505	6 Sec. 17. (a) The budget agency must approve the ordinance
506	506	7 before the income tax incremental amount and the gross retail
507	507	8 incremental amount may be allocated to the tax area under this
508	508	9 chapter.
509	509	10 (b) When considering an ordinance, the budget committee and
510	510	11 the budget agency must make the following findings:
511	511	12 (1) The cost of the capital improvement and the site of the
512	512	13 capital improvement specified under the ordinance exceeds
513	513	14 one hundred thousand dollars ($100,000).
514	514	15 (2) The capital improvement specified under the ordinance is
515	515	16 economically sound and the establishment of the tax area will
516	516	17 benefit the people of Indiana by protecting or increasing state
517	517	18 and local tax bases and tax revenues for at least the duration
518	518	19 of the tax area established under this chapter.
519	519	20 (3) The city has committed significant resources toward the
520	520	21 completion of the capital improvement identified in the
521	521	22 ordinance and to the establishment of the convention and
522	522	23 entertainment development area.
523	523	24 Sec. 18. (a) Before October 1 of each year, the department shall
524	524	25 calculate the income tax incremental amount and the gross retail
525	525	26 incremental amount for the preceding state fiscal year for each tax
526	526	27 area established under this chapter.
527	527	28 (b) Businesses operating in the tax area shall report annually, in
528	528	29 the manner and in the form prescribed by the department,
529	529	30 information that the department determines necessary to calculate
530	530	31 incremental gross retail, use, and income taxes. A taxpayer
531	531	32 operating in the tax area that files a consolidated tax return with
532	532	33 the department shall also file annually an informational return
533	533	34 with the department for each business location of the taxpayer
534	534	35 within the tax area. If a taxpayer fails to report the information
535	535	36 required by this section or file an informational return required by
536	536	37 this section, the department shall use the best information available
537	537	38 in calculating the incremental gross retail, use, and income taxes.
538	538	39 Sec. 19. (a) If the legislative body adopts an ordinance
539	539	40 establishing a tax area under section 14 of this chapter, a state fund
540	540	41 known as the incremental tax financing fund is established for that
541	541	42 tax area. The fund shall be administered by the department.
542	542	2022 IN 373—LS 6971/DI 125 13
543	543	1 Money in the fund does not revert to the state general fund at the
544	544	2 end of a state fiscal year.
545	545	3 (b) Subject to subsection (c), the following amounts shall be
546	546	4 deposited during each state fiscal year in the incremental tax
547	547	5 financing fund established for the tax area under subsection (a):
548	548	6 (1) The aggregate amount of state gross retail and use taxes
549	549	7 that are remitted under IC 6-2.5 by businesses operating in
550	550	8 the district, until the amount of state gross retail and use taxes
551	551	9 deposited equals the gross retail incremental amount for the
552	552	10 tax area.
553	553	11 (2) The aggregate amount of state and local income taxes paid
554	554	12 by employees employed in the tax area with respect to wages
555	555	13 earned for work in the tax area, until the amount of state and
556	556	14 local income taxes deposited equals the income tax
557	557	15 incremental amount.
558	558	16 (c) The aggregate amount of revenues that is attributable to
559	559	17 state gross retail and use taxes and state and local income taxes,
560	560	18 and is deposited in each incremental tax financing fund established
561	561	19 for a tax area, may not exceed eight million dollars ($8,000,000) per
562	562	20 state fiscal year.
563	563	21 (d) On or before the twentieth day of each month, all amounts
564	564	22 held in the incremental tax financing fund established for a tax
565	565	23 area shall be distributed to the northwest Indiana redevelopment
566	566	24 authority established under IC 36-7.5-2-1 for deposit in the Lake
567	567	25 County convention and entertainment district fund established by
568	568	26 IC 36-7.5-3-7(a).
569	569	27 Sec. 20. All distributions from the incremental tax financing
570	570	28 fund shall be made by warrants issued by the auditor of state to the
571	571	29 treasurer of state ordering those payments to the northwest
572	572	30 Indiana redevelopment authority established under IC 36-7.5-2-1
573	573	31 for deposit as provided in section 19(d) of this chapter.
574	574	32 Sec. 21. The ordinance establishing the tax area must designate
575	575	33 the use of the income tax incremental amounts and the gross retail
576	576	34 incremental amounts attributable to the tax area. The funds may
577	577	35 be used only for the purposes described in IC 36-7.5-3-7(d).
578	578	36 Sec. 22. The general assembly covenants that this chapter will
579	579	37 not be repealed or amended in a manner that will adversely affect
580	580	38 the owners of bonds or other obligations issued under this chapter.
581	581	39 SECTION 7. IC 36-7.5-3-7 IS ADDED TO THE INDIANA CODE
582	582	40 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
583	583	41 1, 2022]: Sec. 7. (a) The Lake County convention and entertainment
584	584	42 district fund is established. The fund shall be administered by the
585	585	2022 IN 373—LS 6971/DI 125 14
586	586	1 development authority.
587	587	2 (b) The fund consists of:
588	588	3 (1) deposits under IC 4-33-6.7-8;
589	589	4 (2) deposits under IC 6-9-2-1.5(c)(1);
590	590	5 (3) deposits under IC 6-9-54-8(a);
591	591	6 (4) deposits under IC 36-7-41-19(d);
592	592	7 (5) appropriations to the fund;
593	593	8 (6) gifts, grants, loans, bond proceeds, and other money
594	594	9 received for deposit in the fund; and
595	595	10 (7) subject to subsection (f), other deposits or transfers of
596	596	11 funds from the city of Gary, Lake County, or the development
597	597	12 authority.
598	598	13 (c) The expenses of administering the fund shall be paid from
599	599	14 money in the fund.
600	600	15 (d) Money in the fund may be used only for the following:
601	601	16 (1) To acquire, improve, prepare, construct, maintain, repair,
602	602	17 operate, furnish, and equip capital improvements and
603	603	18 facilities:
604	604	19 (A) located in the city of Gary;
605	605	20 (B) owned and operated by the Lake County Parks and
606	606	21 Recreation Department, or operated by a third party
607	607	22 entity the Lake County Parks and Recreation Department
608	608	23 contracts with to operate the capital improvements and
609	609	24 facilities; and
610	610	25 (C) used principally for convention or entertainment
611	611	26 related events serving national or regional markets.
612	612	27 (2) To pay the principal and interest on any obligations,
613	613	28 including leases, that are payable solely or in part from money
614	614	29 deposited in the Lake County convention and entertainment
615	615	30 district fund and are incurred by the development authority
616	616	31 for the purpose of financing or refinancing the development
617	617	32 of capital improvements or facilities:
618	618	33 (A) located in the city of Gary;
619	619	34 (B) owned and operated by the Lake County Parks and
620	620	35 Recreation Department, or operated by a third party
621	621	36 entity the Lake County Parks and Recreation Department
622	622	37 contracts with to operate the capital improvements and
623	623	38 facilities; and
624	624	39 (C) used principally for convention or entertainment
625	625	40 related events serving national or regional markets.
626	626	41 (3) To establish, augment, or restore a debt service reserve for
627	627	42 obligations described in this subsection.
628	628	2022 IN 373—LS 6971/DI 125 15
629	629	1 (4) If any obligations described in this subsection are no
630	630	2 longer outstanding, the money in the fund shall be paid to the
631	631	3 Lake County Parks and Recreation Department to be used for
632	632	4 the operation and maintenance costs of the capital
633	633	5 improvement.
634	634	6 (e) Money in the fund at the end of a state fiscal year does not
635	635	7 revert to the state general fund.
636	636	8 (f) Deposits or transfers made to the fund as described in
637	637	9 subsection (b)(7) must be made in amounts of at least one million
638	638	10 dollars ($1,000,000) per deposit or transfer.
639	639	2022 IN 373—LS 6971/DI 125