Indiana Administrative Code › Title 50 - DEPARTMENT OF LOCAL GOVERNMENT FINANCE › Article 8 - TAX INCREMENT FINANCE › Rule 2 - Determination and Use of Tax Increment › Section 2-2 - Allocation area designation

Current through July 10, 2024
Authority: IC 6-1.1-39; IC 36-7-14; IC 36-7-15.1
Affected: IC 6-1.1-39; IC 8-22-3.5; IC 36-7-1-3; IC 36-7-14;
				  IC 36-7-15.1
Sec. 2.
(a) A
				redevelopment commission that designates an allocation area or amends an area
				declaration must immediately notify the state board of tax commissioners of the
				designation.
(b) This subsection
				applies only to redevelopment commissions established under IC 36-7-14 and
				metropolitan development commissions acting as redevelopment commissions. A
				redevelopment commission declares an area to be blighted under IC 36-7-14-15 or
				IC 36-7-15.1-8 by adopting a resolution. The commission may designate an
				allocation area in the same resolution. A redevelopment commission may also
				amend a prior resolution that declared a blighted area to add an allocation
				area by following the same procedure contained in IC 36-7-14-15 through IC
				36-7-14-18 or IC 36-7-15.1-8 through IC 36-7-15.1-11. An allocation area may
				also be created in an economic development area established under IC 36-7-14-41
				or IC 36-7-15.1-29. In order for a redevelopment commission to be eligible to
				include taxes imposed on allocation area personal property in the tax increment
				finance program, it must have adopted a resolution before June 1, 1987, to
				include taxes imposed on depreciable personal property that has a useful life
				in excess of eight (8) years (personal property reportable on Total Pool 3 line
				40 and Total Pool 4 line 55 on Form 103, Long Form). If such a resolution was
				adopted before that date, the redevelopment commission may adopt a new
				resolution to include a percentage of taxes imposed on all allocation area
				personal property in the tax increment finance program. That percentage may not
				exceed twenty-five percent (25%). If the redevelopment commission fails to
				adopt a new resolution, then no personal property taxes are included in the
				program.
(c) This subsection
				applies only to redevelopment commissions established under IC 36-7-14 and
				metropolitan development commissions acting as redevelopment commissions. In
				order to declare a blighted area, the redevelopment commission must find that
				the area meets the definition in IC 36-7-1-3, that the area has become blighted
				to an extent that it cannot be corrected by regulatory processes, or by the
				ordinary operations of private enterprise without resort to the provisions of
				IC 36-7-14 or IC 36-7-15.1, and that the public health and welfare will be
				benefited by the acquisition and redevelopment of the area. The redevelopment
				commission may declare any part of the blighted area as an allocation area.
				Given the statutes' use of the term "blighted" and the finding that must be
				made before a redevelopment commission may adopt a declaratory resolution, the
				declaration of a blighted area may include only a limited area. In the typical
				situation, the geographic description uses city streets or similar boundaries
				to carve out from a political subdivision only that portion that is truly
				blighted. It is unlikely that the boundaries of the blighted area coincide with
				those of a city or any other political subdivision.
(d) This subsection applies only to
				redevelopment commissions established under IC 36-7-14 and metropolitan
				development commissions acting as redevelopment commissions. In order to
				implement tax increment finance in an economic development area, the
				redevelopment commission must find that the area meets the following:
(1) That the plan for the economic
				development area:
(A) promotes significant
				opportunities for the gainful employment of its citizens;
(B) attracts a major new business enterprise
				to the unit;
(C) retains or expands
				a significant business enterprise existing in the boundaries of the unit;
				or
(D) meets other purposes of IC
				36-7-14-2.5, IC 36-7-14-41, IC 36-7-15.1-28 through IC 36-7-15.1-30.