§ 6-1.1-12.1-2 — Findings by designating body; economic revitalization area; residentially distressed area; conditions; property tax deductions; fees

Indiana § 6-1.1-12.1-2

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 12.1: Deduction for Rehabilitation or Redevelopment of

Text

(a) A designating body may find that a
particular area within its jurisdiction is an economic revitalization area.
However, the deduction provided by this chapter for economic
revitalization areas not within a city or town shall not be available to
retail businesses.
(b) In a county containing a consolidated city or within a city or
town, a designating body may find that a particular area within its
jurisdiction is a residentially distressed area. Designation of an area as
a residentially distressed area has the same effect as designating an
area as an economic revitalization area, except that the amount of the
deduction shall be calculated as specified in section 4.1 of this chapter
and the deduction is allowed for not more than the number of years
specified by the designating body under section 17 of this chapter. In
order to declare a particular area a residentially distressed area, the
designating body must follow the same procedure that is required to
designate an area as an economic revitalization area and must make all
the following additional findings or all the additional findings
described in subsection (c):
(1) The area is comprised of parcels that are either unimproved or
contain only one (1) or two (2) family dwellings or multifamily
dwellings designed for up to four (4) families, including accessory
buildings for those dwellings.
(2) Any dwellings in the area are not permanently occupied and
are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) Parcels of property in the area:
(A) have been sold and not redeemed under IC 6-1.1-24 and IC 6-1.1-25; or
(B) are owned by a unit of local government.
However, in a city in a county having a population of more than two
hundred fifty thousand (250,000) and less than three hundred thousand
(300,000), the designating body is only required to make one (1) of the
additional findings described in this subsection or one (1) of the
additional findings described in subsection (c).
(c) In a county containing a consolidated city or within a city or
town, a designating body that wishes to designate a particular area a
residentially distressed area may make the following additional
findings as an alternative to the additional findings described in
subsection (b):
(1) A significant number of dwelling units within the area are not
permanently occupied or a significant number of parcels in the
area are vacant land.
(2) A significant number of dwelling units within the area are:
(A) the subject of an order issued under IC 36-7-9; or
(B) evidencing significant building deficiencies.
(3) The area has experienced a net loss in the number of dwelling
units, as documented by census information, local building and
demolition permits, or certificates of occupancy, or the area is
owned by Indiana or the United States.
(4) The area (plus any areas previously designated under this
subsection) will not exceed ten percent (10%) of the total area
within the designating body's jurisdiction.
However, in a city in a county having a population of more than two
hundred fifty thousand (250,000) and less than three hundred thousand
(300,000), the designating body is only required to make one (1) of the
additional findings described in this subsection as an alternative to one
(1) of the additional findings described in subsection (b).
(d) A designating body is required to attach the following conditions
to the grant of a residentially distressed area designation:
(1) The deduction will not be allowed unless the dwelling is
rehabilitated to meet local code standards for habitability.
(2) If a designation application is filed, the designating body may
require that the redevelopment or rehabilitation be completed
within a reasonable period of time.
(e) To make a designation described in subsection (a) or (b), the
designating body shall use procedures prescribed in section 2.5 of this
chapter.
(f) The property tax deductions provided by section 3, 4.5, or 4.8 of
this chapter are only available within an area which the designating
body finds to be an economic revitalization area.
(g) The designating body may adopt a resolution establishing
general standards to be used, along with the requirements set forth in
the definition of economic revitalization area, by the designating body
in finding an area to be an economic revitalization area. The standards
must have a reasonable relationship to the development objectives of
the area in which the designating body has jurisdiction. The following
five (5) sets of standards may be established:
(1) One (1) relative to the deduction under section 3 of this
chapter for economic revitalization areas that are not residentially
distressed areas.
(2) One (1) relative to the deduction under section 3 of this
chapter for residentially distressed areas.
(3) One (1) relative to the deduction allowed under section 4.5 of
this chapter.
(4) One (1) relative to the deduction allowed under section 4.8 of
this chapter.
(5) One (1) relative to property granted a deduction for an
agricultural purpose.
(h) A designating body may impose a fee for filing a designation
application for a person requesting the designation of a particular area
as an economic revitalization area. The fee may be sufficient to defray
actual processing and administrative costs. However, the fee charged
for filing a designation application for a parcel that contains one (1) or
more owner-occupied, single-family dwellings may not exceed the cost
of publishing the required notice.
(i) In declaring an area an economic revitalization area, the
designating body may:
(1) limit the time period to a certain number of calendar years
during which the economic revitalization area shall be so
designated;
(2) limit the type of deductions that will be allowed within the
economic revitalization area to the deduction allowed under
section 3 of this chapter, the deduction allowed under section 4.5
of this chapter, the deduction allowed under section 4.8 of this
chapter, or any combination of these deductions;
(3) limit the dollar amount of the deduction that will be allowed
with respect to new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, and new information technology
equipment;
(4) limit the dollar amount of the deduction that will be allowed
with respect to redevelopment and rehabilitation occurring in
areas that are designated as economic revitalization areas;
(5) limit the dollar amount of the deduction that will be allowed
under section 4.8 of this chapter with respect to the occupation of
an eligible vacant building; or
(6) impose reasonable conditions related to the purpose of this
chapter or to the general standards adopted under subsection (g)
for allowing the deduction for the redevelopment or rehabilitation
of the property or the installation of the new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment.
To exercise one (1) or more of these powers, a designating body must
include this fact in the resolution passed under section 2.5 of this
chapter.
(j) Notwithstanding any other provision of this chapter, if a
designating body limits the time period during which an area is an
economic revitalization area, that limitation does not:
(1) prevent a taxpayer from obtaining a deduction for new
manufacturing equipment, new farm equipment, new research and
development equipment, new logistical distribution equipment, or
new information technology equipment installed on or before the
approval deadline determined under section 9 of this chapter, but
after the expiration of the economic revitalization area if the new
manufacturing equipment, new farm equipment, new research and
development equipment, new logistical distribution equipment, or
new information technology equipment was described in a
statement of benefits submitted to and approved by the
designating body in accordance with section 4.5 of this chapter
before the expiration of the economic revitalization area
designation; or
(2) limit the length of time a taxpayer is entitled to receive a
deduction to a number of years that is less than the number of
years designated under section 17 of this chapter.
(k) In addition to the other requirements of this chapter, if property
located in an economic revitalization area is also located in an
allocation area (as defined in IC 36-7-14-39 or IC 36-7-15.1-26), a
taxpayer's statement of benefits concerning that property may not be
approved under this chapter unless a resolution approving the
statement of benefits is adopted by the legislative body of the unit that
approved the designation of the allocation area.
As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979,
P.L.56, SEC.6; Acts 1980, P.L.42, SEC.2; Acts 1981, P.L.310, SEC.91;
P.L.72-1983, SEC.1; P.L.71-1983, SEC.2; P.L.82-1987, SEC.1;
P.L.56-1988, SEC.2; P.L.3-1989, SEC.33; P.L.42-1992, SEC.2;
P.L.65-1993, SEC.1; P.L.31-1994, SEC.3; P.L.85-1995, SEC.1;
P.L.255-1997(ss), SEC.5; P.L.4-2000, SEC.2; P.L.64-2004, SEC.5 and
P.L.81-2004, SEC.49; P.L.216-2005, SEC.2; P.L.154-2006, SEC.25;
P.L.146-2008, SEC.121; P.L.119-2012, SEC.18; P.L.288-2013, SEC.5;
P.L.104-2022, SEC.21; P.L.8-2022, SEC.3; P.L.105-2022,
SEC.34.