CHAPTER 3.5. AIRPORT DEVELOPMENT ZONES - Indiana Statutes

IC 8-22-3.5
     Chapter 3.5. Airport Development Zones

IC 8-22-3.5-1
Application of chapter
     Sec. 1. This chapter applies to the following:
        (1) Each county having a consolidated city.
        (2) Each city having a population of more than ninety thousand (90,000) but less than one hundred five thousand (105,000).
        (3) Each county having a population of more than one hundred five thousand (105,000) but less than one hundred ten thousand (110,000).
        (4) Each county having a population of more than three hundred thousand (300,000) but less than four hundred thousand (400,000).
        (5) Each county having a population of more than one hundred seventy thousand (170,000) but less than one hundred eighty thousand (180,000).
        (6) Each county having a population of more than one hundred eighteen thousand (118,000) but less than one hundred twenty thousand (120,000).
        (7) Each city having a population of more than fifty-nine thousand seven hundred (59,700) but less than sixty-five thousand (65,000).
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.2; P.L.115-1995, SEC.3; P.L.85-1996, SEC.1; P.L.91-1997, SEC.3; P.L.170-2002, SEC.71; P.L.124-2006, SEC.1; P.L.182-2009(ss), SEC.271.

IC 8-22-3.5-2
"Commission" defined
     Sec. 2. As used in this chapter, "commission" refers to the following:
        (1) With respect to a county having a consolidated city, the metropolitan development commission acting as the redevelopment commission of the consolidated city, subject to IC 36-3-4-23.
        (2) With respect to a city described in section 1(2) of this chapter, the board of the airport authority for the city.
        (3) With respect to a county described in section 1(3) of this chapter, the board of an airport authority that is jointly established by the county and a municipality under IC 8-22-3.
        (4) With respect to a county described in section 1(4) or 1(5) of this chapter, the board of an airport authority that is jointly established by the county and a municipality under IC 8-22-3.         (5) With respect to a county described in section 1(6) of this chapter, the board of an airport authority that is established by the county.
        (6) With respect to a city described in section 1(7) of this chapter, the board of aviation commissioners for the city.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.3; P.L.115-1995, SEC.4; P.L.85-1996, SEC.2; P.L.91-1997, SEC.4; P.L.124-2006, SEC.2; P.L.182-2009(ss), SEC.272.

IC 8-22-3.5-2.5
"Eligible entity" defined
     Sec. 2.5. Notwithstanding IC 8-22-1-6, as used in this chapter, "eligible entity" refers to any of the following:
        (1) A consolidated city.
        (2) A city described in section 1(2) of this chapter.
        (3) A city in a county described in section 1(3) of this chapter.
        (4) A county described in section 1(4) of this chapter.
        (5) A city located in a county described in section 1(4) of this chapter.
        (6) A county described in section 1(5) of this chapter.
        (7) A city located in a county described in section 1(5) of this chapter.
        (8) A county described in section 1(6) of this chapter.
        (9) A city described in section 1(7) of this chapter.
As added by P.L.108-1993, SEC.4. Amended by P.L.115-1995, SEC.5; P.L.85-1996, SEC.3; P.L.91-1997, SEC.5; P.L.124-2006, SEC.3; P.L.182-2009(ss), SEC.273.

IC 8-22-3.5-3
"Qualified airport development project"; use or expansion by successor tenant
     Sec. 3. (a) As used in this chapter, "qualified airport development project" means an airport development project that has a cost of the project (as defined in IC 4-4-10.9-5) greater than:
        (1) five hundred million dollars ($500,000,000), if the project is to be located in a county having a consolidated city; or
        (2) two hundred fifty thousand dollars ($250,000), if the project is to be located in:
            (A) a city described in section 1(2) or 1(7) of this chapter; or
            (B) in a county described in section 1(3), 1(4), 1(5), or 1(6) of this chapter.
Except as provided by subsection (b), the term includes any portion or expansion of the original qualified airport development project used by one (1) or more successor tenants.
    (b) For purposes of section 9 of this chapter, the definition of

"qualified airport development project" does not include any portion of, or expansion of, the original qualified airport development project used by a successor tenant unless the commission adopts a resolution to amend the definition to include that portion or expansion.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.5; P.L.115-1995, SEC.6; P.L.85-1996, SEC.4; P.L.91-1997, SEC.6; P.L.224-2003, SEC.267; P.L.124-2006, SEC.4; P.L.182-2009(ss), SEC.274.

IC 8-22-3.5-4
Definitions
     Sec. 4. As used in this chapter, the following terms have the meanings set forth in IC 6-1.1-1:
        (1) Assessment date.
        (2) Assessed value or assessed valuation.
        (3) Tangible property.
        (4) Taxing district.
        (5) Taxing unit.
As added by P.L.86-1991, SEC.1.

IC 8-22-3.5-5
Designation of airport development zone area; resolution; approval
     Sec. 5. (a) The commission may designate an area within the jurisdiction of a board of aviation commissioners under IC 8-22-2 or an airport authority under IC 8-22-3 as an airport development zone if the commission finds by resolution the following:
        (1) In order to promote opportunities for the gainful employment of the citizens of the eligible entity and the attraction of a qualified airport development project to the eligible entity, an area under the jurisdiction of the board of aviation commissioners or airport authority should be declared an airport development zone.
        (2) The public health and welfare of the eligible entity will be benefited by designating the area as an airport development zone.
    (b) If the airport development zone will be located in a consolidated city or in a county described in section 1(3), 1(4), 1(5), or 1(6) of this chapter, the resolution adopted under subsection (a) must also include a finding that there has been proposed a qualified airport development project to be located in the airport development zone, with the proposal supported by:
        (1) financial and economic data; and
        (2) preliminary commitments by business enterprises that evidence a reasonable likelihood that the proposed qualified

airport development project will be initiated and accomplished.
    (c) If the airport development zone will be located in a city described in:
        (1) section 1(2) of this chapter, the resolution adopted under subsection (a) must also include findings stating that the most recent federal decennial census for the city indicates the following:
            (A) The unemployment rate for the city is at least thirteen percent (13%).
            (B) The population of the city has decreased by at least ten percent (10%) as compared to the population reported in the preceding federal decennial census for the city.
            (C) The median per capita income for city residents does not exceed eighty percent (80%) of the median per capita income for all residents of the United States.
            (D) At least twenty-five percent (25%) of the population of the city is below the federal income poverty level (as defined in IC 12-15-2-1); or
        (2) section 1(7) of this chapter, the resolution adopted under subsection (a) must also include findings stating the following:
            (A) There has been proposed a qualified airport development project to be located in the airport development zone, with the proposal supported by:
                (i) financial and economic data; and
                (ii) preliminary commitments by business enterprises that evidence a reasonable likelihood that the proposed qualified airport development project will be initiated and accomplished.
            (B) The city has Interstate Highway 69 serving the airport and the city's residents and facilitating commerce and free travel within and through the midwestern United States.
    (d) The resolution adopted under subsection (a) must describe the boundaries of the area. The description may be by reference to the area's location in relation to public ways or streams, or otherwise, as determined by the commission.
    (e) If the airport development zone will be located in a county described in section 1(4), 1(5), or 1(6) of this chapter, the resolution adopted under subsection (a) and any qualified airport development project to be located in the airport development zone, must be approved by the executive of:
        (1) the county, if the entire airport development zone or qualified airport development project will be located outside the boundaries of any municipality located in the county;
        (2) a municipality located in the county, if the entire airport development zone or qualified airport development project will

be located within the boundary of the municipality; or
        (3) the county and a municipality located in the county, if the airport development zone or qualified airport development project will be located within the boundary of the county and in part within the boundary of the municipality.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.6; P.L.115-1995, SEC.7; P.L.85-1996, SEC.5; P.L.91-1997, SEC.7; P.L.165-2003, SEC.2; P.L.124-2006, SEC.5; P.L.182-2009(ss), SEC.275.

IC 8-22-3.5-6
Notice; adoption of resolution; hearings
     Sec. 6. (a) After adoption of the resolution under section 5 of this chapter, the commission shall:
        (1) publish notice of the adoption and substance of the resolution in accordance with IC 5-3-1; and
        (2) file the following information with each taxing unit that has authority to levy property taxes in the geographic area where the airport development zone is located:
            (A) A copy of the notice required by subdivision (1).
            (B) A statement disclosing the impact of the airport development zone, including the following:
                (i) The estimated economic benefits and costs incurred by the airport development zone, as measured by increased employment and anticipated growth of real property assessed values.
                (ii) The anticipated impact on tax revenues of each taxing unit.
The notice must state the general boundaries of the area designated as an airport development zone and must state that written remonstrances may be filed with the commission until the time designated for the hearing. The notice must also name the place, date, and time when the commission will receive and hear remonstrances and objections from persons interested in or affected by the proceedings pertaining to the proposed airport development zone designation and will determine the public utility and benefit of the proposed airport development zone designation. The commission shall file the information required by subdivision (2) with the officers of the taxing unit who are authorized to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 at least ten (10) days before the date of the public hearing. All persons affected in any manner by the hearing, including all taxpayers within the taxing district of the airport authority, shall be considered notified of the pendency of the hearing and of subsequent acts, hearings, adjournments, and orders of the commission affecting the airport development zone if the

commission gives the notice required by this section.
    (b) At the hearing, which may be recessed and reconvened from time to time, the commission shall hear all persons interested in the proceedings and shall consider all written remonstrances and objections that have been filed. After considering the evidence presented, the commission shall take final action determining the public utility and benefit of the proposed airport development zone designation and confirming, modifying and confirming, or rescinding the resolution. The final action taken by the commission shall be recorded and is final and conclusive, except that an appeal may be taken in the manner prescribed by section 7 of this chapter.
As added by P.L.86-1991, SEC.1. Amended by P.L.25-1995, SEC.59.

IC 8-22-3.5-7
Remonstrances; appeals
     Sec. 7. (a) A person who filed a written remonstrance with the commission under section 6 of this chapter and is aggrieved by the final action taken may, within ten (10) days after that final action, file with the office of the clerk of the circuit or superior court of the county a copy of the commission's resolution and the person's remonstrance against the resolution, together with the person's bond as provided by IC 34-13-5-7.
    (b) An appeal under this section shall be promptly heard by the court without a jury. All remonstrances upon which an appeal has been taken shall be consolidated and heard and determined within thirty (30) days after the time of filing of the appeal. The court shall decide the appeal based on the record and evidence before the commission, not by trial de novo, and may confirm the final action of the commission or sustain the remonstrances. The judgment of the court is final and conclusive, unless an appeal is taken as in other civil actions.
As added by P.L.86-1991, SEC.1. Amended by P.L.1-1998, SEC.91.

IC 8-22-3.5-8
Special taxing district
     Sec. 8. The airport development zone created by the commission under this chapter is a special taxing district authorized by the general assembly to enable the eligible entity to provide special benefits to taxpayers in the airport development zone by promoting economic development that is of public use and benefit.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.7; P.L.115-1995, SEC.8.

IC 8-22-3.5-9
Allocation of tax proceeds; notice to county auditor and other

officers; valuation of property
     Sec. 9. (a) As used in this section, "base assessed value" means:
        (1) the net assessed value of all the tangible property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the commission's resolution adopted under section 5 or 9.5 of this chapter, notwithstanding the date of the final action taken under section 6 of this chapter; plus
        (2) to the extent it is not included in subdivision (1), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
However, subdivision (2) applies only to an airport development zone established after June 30, 1997, and the portion of an airport development zone established before June 30, 1997, that is added to an existing airport development zone.
    (b) A resolution adopted under section 5 of this chapter and confirmed under section 6 of this chapter must include a provision with respect to the allocation and distribution of property taxes for the purposes and in the manner provided in this section.
    (c) The allocation provision must:
        (1) apply to the entire airport development zone; and
        (2) require that any property tax on taxable tangible property subsequently levied by or for the benefit of any public body entitled to a distribution of property taxes in the airport development zone be allocated and distributed as provided in subsections (d) and (e).
    (d) Except as otherwise provided in this section, the proceeds of the taxes attributable to the lesser of:
        (1) the assessed value of the tangible property for the assessment date with respect to which the allocation and distribution is made; or
        (2) the base assessed value;
shall be allocated and, when collected, paid into the funds of the respective taxing units.
    (e) All of the property tax proceeds in excess of those described in subsection (d) shall be allocated to the eligible entity for the airport development zone and, when collected, paid into special funds as follows:
        (1) The commission may determine that a portion of tax proceeds shall be allocated to a training grant fund to be expended by the commission without appropriation solely for the purpose of reimbursing training expenses incurred by public or private entities in the training of employees for the qualified

airport development project.
        (2) The commission may determine that a portion of tax proceeds shall be allocated to a debt service fund and dedicated to the payment of principal and interest on revenue bonds or a loan contract of the board of aviation commissioners or airport authority for a qualified airport development project, to the payment of leases for a qualified airport development project, or to the payment of principal and interest on bonds issued by an eligible entity to pay for qualified airport development projects in the airport development zone or serving the airport development zone.
        (3) The commission may determine that a part of the tax proceeds shall be allocated to a project fund and used to pay expenses incurred by the commission for a qualified airport development project that is in the airport development zone or is serving the airport development zone.
        (4) Except as provided in subsection (f), all remaining tax proceeds after allocations are made under subdivisions (1), (2), and (3) shall be allocated to a project fund and dedicated to the reimbursement of expenditures made by the commission for a qualified airport development project that is in the airport development zone or is serving the airport development zone.
    (f) Before July 15 of each year, the commission shall do the following:
        (1) Determine the amount, if any, by which tax proceeds allocated to the project fund in subsection (e)(3) in the following year will exceed the amount necessary to satisfy amounts required under subsection (e).
        (2) Provide a written notice to the county auditor and the officers who are authorized to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for each of the other taxing units that is wholly or partly located within the allocation area. The notice must:
            (A) state the amount, if any, of excess tax proceeds that the commission has determined may be allocated to the respective taxing units in the manner prescribed in subsection (d); or
            (B) state that the commission has determined that there are no excess tax proceeds that may be allocated to the respective taxing units in the manner prescribed in subsection (d).
        The county auditor shall allocate to the respective taxing units the amount, if any, of excess tax proceeds determined by the commission.
    (g) When money in the debt service fund and in the project fund

is sufficient to pay all outstanding principal and interest (to the earliest date on which the obligations can be redeemed) on revenue bonds issued by the board of aviation commissioners or airport authority for the financing of qualified airport development projects, all lease rentals payable on leases of qualified airport development projects, and all costs and expenditures associated with all qualified airport development projects, money in the debt service fund and in the project fund in excess of those amounts shall be paid to the respective taxing units in the manner prescribed by subsection (d).
    (h) Property tax proceeds allocable to the debt service fund under subsection (e)(2) must, subject to subsection (g), be irrevocably pledged by the eligible entity for the purpose set forth in subsection (e)(2).
    (i) Notwithstanding any other law, each assessor shall, upon petition of the commission, reassess the taxable tangible property situated upon or in, or added to, the airport development zone effective on the next assessment date after the petition.
    (j) Notwithstanding any other law, the assessed value of all taxable tangible property in the airport development zone, for purposes of tax limitation, property tax replacement, and formulation of the budget, tax rate, and tax levy for each political subdivision in which the property is located is the lesser of:
        (1) the assessed value of the tangible property as valued without regard to this section; or
        (2) the base assessed value.
As added by P.L.86-1991, SEC.1. Amended by P.L.108-1993, SEC.8; P.L.115-1995, SEC.9; P.L.91-1997, SEC.8; P.L.255-1997(ss), SEC.8; P.L.90-2002, SEC.332; P.L.246-2005, SEC.84; P.L.124-2006, SEC.6; P.L.97-2007, SEC.2; P.L.146-2008, SEC.365; P.L.182-2009(ss), SEC.276.

IC 8-22-3.5-9.5
Authorization to amend resolution in Vanderburgh County
     Sec. 9.5. (a) This section applies to a commission located in a county described in section 1(5) of this chapter.
    (b) The commission may amend a resolution adopted before January 1, 2006, under section 5 of this chapter to include a provision with respect to the allocation and distribution of property taxes.
    (c) For purposes of determining the allocation and distribution of property taxes under this chapter, the "base assessed value" means the net assessed value of all the tangible property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the commission's amended resolution adopted under this section.     (d) An amendment adopted under this section must be approved by the executive of:
        (1) the county, if the entire airport development zone is located outside the boundaries of any municipality located in the county;
        (2) a municipality located in the county, if the entire airport development zone is located within the boundary of the municipality; or
        (3) the county and a municipality located in the county, if the airport development zone is located within the boundary of the county and partly within the boundary of the municipality.
As added by P.L.124-2006, SEC.7.

IC 8-22-3.5-10
Repealed
    (Repealed by P.L.146-2008, SEC.813.)

IC 8-22-3.5-11
Rules and procedures; adjustment of base assessed value
     Sec. 11. (a) The state board of accounts and the department of local government finance shall make the rules and prescribe the forms and procedures that the state board of accounts and department consider appropriate for the implementation of this chapter.
    (b) After each general reassessment under IC 6-1.1-4, the department of local government finance shall adjust the base assessed value (as defined in section 9 of this chapter) one (1) time to neutralize any effect of the general reassessment on the property tax proceeds allocated to the airport development zone's special funds under section 9 of this chapter.
    (c) After each annual adjustment under IC 6-1.1-4-4.5, the department of local government finance shall adjust the base assessed value (as defined in section 9 of this chapter) to neutralize any effect of the annual adjustment on the property tax proceeds allocated to the airport development zone's special funds under section 9 of this chapter.
As added by P.L.86-1991, SEC.1. Amended by P.L.90-2002, SEC.333; P.L.154-2006, SEC.66.

IC 8-22-3.5-12
Repealed
     (Repealed by P.L.146-2008, SEC.813.)

IC 8-22-3.5-14
Businesses located in airport development zone treated as if located in enterprise zone
     Sec. 14. (a) This section applies only to an airport development

zone that is in a:
        (1) city described in section 1(2) or 1(7) of this chapter; or
        (2) county described in section 1(3), 1(4), or 1(6) of this chapter.
    (b) Notwithstanding any other law, a business or an employee of a business that is located in an airport development zone is entitled to the benefits provided by the following statutes, as if the business were located in an enterprise zone:
        (1) IC 6-3-2-8.
        (2) IC 6-3-3-10.
        (3) IC 6-3.1-7.
        (4) IC 6-3.1-9.
        (5) IC 6-3.1-10-6.
    (c) Before June 1 of each year, a business described in subsection (b) must pay a fee equal to the amount of the fee that is required for enterprise zone businesses under IC 5-28-15-5(a)(4)(A). However, notwithstanding IC 5-28-15-5(a)(4)(A), the fee shall be paid into the debt service fund established under section 9(e)(2) of this chapter. If the commission determines that a business has failed to pay the fee required by this subsection, the business is not eligible for any of the benefits described in subsection (b).
    (d) A business that receives any of the benefits described in subsection (b) must use all of those benefits, except for the amount of the fee required by subsection (c), for its property or employees in the airport development zone and to assist the commission. If the commission determines that a business has failed to use its benefits in the manner required by this subsection, the business is not eligible for any of the benefits described in subsection (b).
    (e) If the commission determines that a business has failed to pay the fee required by subsection (c) or has failed to use benefits in the manner required by subsection (d), the commission shall provide written notice of the determination to the department of state revenue, the department of local government finance, and the county auditor.
As added by P.L.108-1993, SEC.9. Amended by P.L.115-1995, SEC.10; P.L.85-1996, SEC.6; P.L.90-2002, SEC.334; P.L.192-2002(ss), SEC.148; P.L.4-2005, SEC.117; P.L.124-2006, SEC.10; P.L.146-2008, SEC.366; P.L.182-2009(ss), SEC.277.

IC 8-22-3.5-15
State income tax incentives for attracting or retaining airport development projects in a consolidated city
     Sec. 15. (a) As used in this section, "state income tax liability" means a tax liability that is incurred under:
        (1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);

or
        (2) any other tax imposed by this state and based on or measured by either gross income or net income.
    (b) The attraction or retention of qualified airport development projects to a consolidated city within Indiana is a governmental function of general public benefit for all the citizens of Indiana.
    (c) As an incentive to attract or retain qualified airport development projects to Indiana, for a period of thirty-five (35) years, beginning January 1, 1991, persons that locate and operate a qualified airport development project in an airport development zone in a consolidated city shall not incur, notwithstanding any other law, any state income tax liability as a result of:
        (1) activities associated with locating or retaining the qualified airport development project in the consolidated city;
        (2) the construction, modification, alteration, or completion of the qualified airport development project;
        (3) the employment of personnel or the ownership or rental of property at or in conjunction with the qualified airport development project; or
        (4) the operation of, or the activities at or in connection with, the qualified airport development project.
    (d) The department of state revenue shall adopt rules under IC 4-22-2 to implement this section.
As added by P.L.41-1994, SEC.2. Amended by P.L.192-2002(ss), SEC.149; P.L.224-2003, SEC.268.

IC 8-22-3.5-16
Repealed
     (Repealed by P.L.124-2006, SEC.11.)

IC 8-22-3.5-17
Repealed
     (Repealed by P.L.124-2006, SEC.11.)