Indiana § 36-7-31-23 - Expiration of chapter

§ 36-7-31-23. Expiration of chapter

Sec. 23. This chapter expires December 31, 2040.

As added by P.L.255-1997(ss), SEC.19. Amended by P.L.214-2005, SEC.71.

IC 36-7-31.3Chapter 31.3. Professional Sports Development Area

36-7-31.3-1Applicability of chapter 36-7-31.3-2"Budget agency" 36-7-31.3-3"Budget committee" 36-7-31.3-4"Covered taxes" 36-7-31.3-5"Department" 36-7-31.3-5.5"Designating body" 36-7-31.3-6"Tax area" 36-7-31.3-7"Taxpayer" 36-7-31.3-8Designation of a facility as part of a professional sports and convention development area; expansion of area 36-7-31.3-9Establishment of area; time; findings; special taxing district 36-7-31.3-9.3General assembly findings 36-7-31.3-9.7Modification of an area 36-7-31.3-10Resolution; allocation of taxes; renewal of expired areas 36-7-31.3-11Review of resolution by budget committee; notice requirements; information to taxing units 36-7-31.3-12Approval of resolution by budget agency 36-7-31.3-13Allocation provision adoption; notice; district business information 36-7-31.3-13.5Limitation on renewal or extension of existing allocation area; required conditions 36-7-31.3-14Professional sports and convention development area fund 36-7-31.3-15Deposit of taxes in fund 36-7-31.3-16Distributions from fund 36-7-31.3-17Notice of taxes to be distributed to county treasurer or party to agreement under IC 36-7-31.3-8(c) 36-7-31.3-18Warrants 36-7-31.3-19Use of funds 36-7-31.3-20Repayments to fund 36-7-31.3-21Expiration of chapter

IC 36-7-31.3-1Applicability of chapter Sec. 1. Except as provided in section 8(b) of this chapter, this chapter applies only to a city or a county without a consolidated city that has a professional sports franchise playing the majority of its home games in a facility owned by the city, the county, a school corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002, SEC.123.

IC 36-7-31.3-2"Budget agency" Sec. 2. As used in this chapter, "budget agency" means the budget agency established by IC 4-12-1.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-3"Budget committee" Sec. 3. As used in this chapter, "budget committee" has the meaning set forth in IC 4-12-1-3.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-4"Covered taxes" Sec. 4. As used in this chapter, "covered taxes" means the part of the following taxes attributable to the operation of a facility designated as part of a tax area under section 8 of this chapter:

(1) With respect to a tax area as it existed on June 30, 2026:

(A) The state gross retail tax imposed under IC 6-2.5-2-1 or use tax imposed under IC 6-2.5-3-2.

(B) An adjusted gross income tax imposed under IC 6-3-2-1 on an individual.

(C) The local income tax imposed under IC 6-3.6.

(D) Except in a county having a population of more than three hundred fifty thousand (350,000) and less than four hundred thousand (400,000), a food and beverage tax imposed under IC 6-9.

(2) With respect to an addition after June 30, 2026, to the tax area designated in the city of Evansville under section 8(e) of this chapter, the state gross retail tax imposed under IC 6-2.5-2-1 or the use tax imposed under IC 6-2.5-3-2.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002, SEC.124; P.L.197-2016, SEC.135; P.L.104-2022, SEC.191; P.L.213-2025, SEC.306.

IC 36-7-31.3-5"Department" Sec. 5. As used in this chapter, "department" refers to the department of state revenue.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-5.5"Designating body" Sec. 5.5. As used in this chapter, "designating body" means a:

(1) city legislative body; or

(2) county legislative body;

that may establish a tax area under this chapter.

As added by P.L.178-2002, SEC.125.

IC 36-7-31.3-6"Tax area" Sec. 6. As used in this chapter, "tax area" means a geographic area established as a professional sports and convention development area under section 10 of this chapter.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-7"Taxpayer" Sec. 7. As used in this chapter, "taxpayer" means a person that is liable for a covered tax.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-8Designation of a facility as part of a professional sports and convention development area; expansion of area Sec. 8. (a) A designating body may designate as part of a professional sports and convention development area any facility that is:

(1) owned by the city, the county, a school corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11, and used by a professional sports franchise for practice or competitive sporting events;

(2) owned by the city, the county, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11, and used as one (1) of the following:

(A) A facility used principally for convention or tourism related events serving national or regional markets.

(B) An airport.

(C) A museum.

(D) A zoo.

(E) A facility used for public attractions of national significance.

(F) A performing arts venue.

(G) A county courthouse registered on the National Register of Historic Places; or

(3) a hotel.

Notwithstanding section 9 of this chapter or any other law, a designating body may by resolution approve the expansion of a professional sports and convention development area after June 30, 2009, to include a hotel designated by the designating body. A resolution for such an expansion must be reviewed by the budget committee and approved by the budget agency in the same manner as a resolution establishing a professional sports and convention development area is reviewed and approved. A facility may not include a private golf course or related improvements. The tax area may include only facilities described in this section and any parcel of land on which a facility is located. An area may contain noncontiguous tracts of land within the city, county, or school corporation.

(b) Except for a tax area that is located in:

(1) the city of Fort Wayne; or

(2) the city of Gary;

a tax area must include at least one (1) facility described in subsection (a)(1).

(c) A tax area may contain other facilities not owned by the designating body if:

(1) the facility is owned by a city, the county, a school corporation, or a board established under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11; and

(2) an agreement exists between the designating body and the owner of the facility specifying the distribution and uses of the covered taxes to be allocated under this chapter.

(d) This subsection applies to all tax areas located in Allen County. The facilities located at an Indiana University Fort Wayne and Purdue University Fort Wayne campus are added to the tax area designated by the county. For state fiscal years:

(1) beginning before July 1, 2021, the maximum amount of covered taxes that may be captured in all tax areas located in the county is three million dollars ($3,000,000) per year; and

(2) beginning after June 30, 2021, the maximum amount of covered taxes that may be captured in all tax areas located in the county is five million dollars ($5,000,000) per year;

regardless of the designating body that established the tax area. The revenue from the local income tax imposed under IC 6-3.6 that is captured must be counted first toward this maximum.

(e) This subsection applies to a tax area located in the city of Evansville. Notwithstanding any other provision of this chapter, the tax area shall include each facility or complex of facilities as follows:

(1) For state fiscal years beginning after July 1, 2021, any facility in the city of Evansville that:

(A) consists of a hotel; and

(B) is located in the north part of an area bounded on the northwest by Walnut Street, on the northeast by SE Martin Luther King Jr. Boulevard, on the southwest by SE 6th Street, and on the southeast by Cherry Street, as those streets were located on July 1, 2021.

(2) For state fiscal years beginning after June 30, 2026, any facility or complex of facilities located in the city of Evansville as follows:

(A) Any facility or complex of facilities that consists of a sports, recreational, and event facility or complex of facilities bounded on the north by Main Street, on the west by SE 6th Street, on the east by SE Martin Luther King Jr. Boulevard, and on the south by Walnut Street, as those streets were located on July 1, 2026.

(B) Any facility or complex of facilities that consists of a zoo bounded on the north by W Summit Drive and Buchanan Road, on the west by Meskar Park Drive, on the east by N St. Joseph Avenue, and on the south by Bement Avenue, as those streets were located on July 1, 2026.

(C) Any facility or complex of facilities that consists of a hotel bounded on the north by Walnut Street, on the west by SE 2nd Street, on the east by SE 3rd Street, and on the south by Cherry Street, as those streets were located on July 1, 2026.

(D) Any facility or complex of facilities that is:

(i) owned by the city of Evansville through a board established under IC 36-9-6;

(ii) titled in the name of the city of Evansville or an entity established to assist the city of Evansville to exercise its corporate powers;

(iii) occupied by the city of Evansville; and

(iv) used to exercise power under IC 36-1-4 to provide services pursuant to IC 36-4-4-3, IC 36-4-4-4, IC 36-8-2, and IC 36-9-2.

The provisions in sections 11 and 12 of this chapter are not applicable to the area described in this subsection.

(f) This subsection applies to a tax area located in the city of South Bend. Notwithstanding any other provision of this chapter, for state fiscal years in which the tax area is renewed under section 10(e) of this chapter after June 30, 2021, the tax area shall also include any facility or complex of facilities as follows:

(1) That consists of hotels located in the following areas in the city of South Bend:

(A) In the east quadrant of an area bounded on the north by Columbus Court, on the east by North Main Street, and on the south by West Washington Street, as those streets were located on July 1, 2021.

(B) An area bounded on the north by East Colfax Avenue, on the east by Doctor Martin Luther King, Jr. Boulevard, on the south by East Washington Street, and on the west by North Michigan Street, as those streets were located on July 1, 2021.

(C) In the southeast quadrant of an area bounded on the north by East Washington Street, on the east by Doctor Martin Luther King, Jr. Boulevard, and on the south by East Jefferson Boulevard, as those streets were located on July 1, 2021.

(2) That consists of a sports, recreational and event facility or complex of facilities located in the city of South Bend, in the northeast quadrant of an area bounded on the north by East Jefferson Boulevard, on the east by South St. Louis Boulevard, as those streets were located on July 1, 2021, and on the west by the St. Joseph River.

(3) Located at an Indiana University South Bend campus.

(4) That is within the boundaries of the city of South Bend and:

(A) owned by the city of South Bend through a board established under IC 36-9-6;

(B) titled in the name of the city of South Bend or an entity established to assist the city of South Bend to exercise its corporate powers;

(C) occupied by the city of South Bend; and

(D) used to exercise power under IC 36-1-4 to provide services pursuant to IC 36-4-4-3, IC 36-4-4-4, IC 36-8-2, and IC 36-9-2.

The provisions in sections 11 and 12 of this chapter are not applicable to the renewal of the tax areas described in this subsection.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002, SEC.126; P.L.64-2004, SEC.35; P.L.1-2006, SEC.570; P.L.176-2009, SEC.25; P.L.182-2009(ss), SEC.510; P.L.119-2012, SEC.210; P.L.197-2016, SEC.136; P.L.79-2021, SEC.1; P.L.9-2022, SEC.80; P.L.104-2022, SEC.192; P.L.183-2023, SEC.1; P.L.213-2025, SEC.307.

IC 36-7-31.3-9Establishment of area; time; findings; special taxing district Sec. 9. (a) A tax area must be initially established by resolution:

(1) before January 1, 2013, in the case of:

(A) a second class city;

(B) the city of Marion; or

(C) the city of Westfield;

(2) before January 1, 2024, in the case of the city of Fishers; or

(3) before July 1, 1999, if subdivision (1) or (2) does not apply;

according to the procedures set forth for the establishment of an economic development area under IC 36-7-14. Only one (1) tax area may be created in each county.

(b) In establishing the tax area, the designating body must make the following findings instead of the findings required for the establishment of economic development areas:

(1) Except for a tax area in:

(A) the city of Fort Wayne; or

(B) the city of Gary;

there is a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used by a professional sports franchise for practice or competitive sporting events. A tax area to which this subdivision applies may also include a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used for any purpose specified in section 8(a)(2) of this chapter.

(2) For a tax area in the city of Fort Wayne, there is a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used for any purpose specified in section 8(a) of this chapter.

(3) For a tax area in the city of Gary, there is a capital improvement that will be undertaken or has been undertaken in the tax area for a facility that is used for any purpose specified in section 8(a)(2) of this chapter.

(4) The capital improvement that will be undertaken or that has been undertaken in the tax area will benefit the public health and welfare and will be of public utility and benefit.

(5) The capital improvement that will be undertaken or that has been undertaken in the tax area will protect or increase state and local tax bases and tax revenues.

(c) The tax area established under this chapter is a special taxing district authorized by the general assembly to enable the designating body to provide special benefits to taxpayers in the tax area by promoting economic development that is of public use and benefit.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.174-2001, SEC.13; P.L.178-2002, SEC.127; P.L.64-2004, SEC.36; P.L.2-2005, SEC.130; P.L.214-2005, SEC.72; P.L.172-2011, SEC.157; P.L.119-2012, SEC.211; P.L.100-2014, SEC.1; P.L.104-2022, SEC.193; P.L.183-2023, SEC.2.

IC 36-7-31.3-9.3General assembly findings Sec. 9.3. The general assembly finds that the city of Marion is subject to special circumstances that justify special legislation to allow the city of Marion to establish a tax area under section 9 of this chapter, before January 1, 2005.

As added by P.L.220-2011, SEC.666.

IC 36-7-31.3-9.7Modification of an area Sec. 9.7. (a) Except as otherwise provided in this chapter, after a tax area is initially established, a tax area may not be changed and the terms governing the tax area may not be revised.

(b) Before May 15, 2005, a tax area established before January 1, 2005, may be changed or the terms governing the tax area revised in the same manner as the establishment of the initial tax area.

(c) This subsection applies only to a tax area located in Allen County. After April 30, 2014, and before January 1, 2015, a tax area located in Allen County may be changed or the terms governing the tax area revised in the same manner as the establishment of the initial tax area.

As added by P.L.100-2014, SEC.2.

IC 36-7-31.3-10Resolution; allocation of taxes; renewal of expired areas Sec. 10. (a) A tax area must be established by resolution. A resolution establishing a tax area must provide for the allocation of covered taxes attributable to a taxable event or covered taxes earned in the tax area to the professional sports and convention development area fund established for the city or county. The allocation provision must apply to the entire tax area. The following apply to Allen County:

(1) The fund required by this subsection is the coliseum professional sports and convention development area fund. This fund shall be administered by the Allen County Memorial Coliseum board of trustees.

(2) The allocation each year must be as follows:

(A) The following for state fiscal years ending before July 1, 2021:

(i) The first two million six hundred thousand dollars ($2,600,000) shall be transferred to the county treasurer for deposit in the coliseum professional sports and convention development area fund.

(ii) The remaining amount shall be transferred to the treasurer of the joint county-city capital improvement board in the county.

(B) The following for state fiscal years beginning after June 30, 2021:

(i) The first two million six hundred thousand dollars ($2,600,000) shall be transferred to the county treasurer for deposit in the coliseum professional sports and convention development area fund.

(ii) After the allocation under item (i), the next four hundred thousand dollars ($400,000) shall be transferred to the joint county-city capital improvement board in the county for the Grand Wayne Center.

(iii) After the allocations under items (i) and (ii), any remaining amount shall be transferred to the joint county-city capital improvement board in the county to be split evenly between the Allen County War Memorial Coliseum and the Grand Wayne Center.

A tax area located in Allen County terminates not later than December 31, 2038. Any bonds that were issued before January 1, 2015, to finance the facility or proposed facility must have a maturity of less than twenty-five (25) years.

(b) In addition to subsection (a), all of the salary, wages, bonuses, and other compensation that are:

(1) paid during a taxable year to a professional athlete for professional athletic services;

(2) taxable in Indiana; and

(3) earned in the tax area;

shall be allocated to the tax area if the professional athlete is a member of a team that plays the majority of the professional athletic events that the team plays in Indiana in the tax area.

(c) This subsection applies to a tax area established in the city of Evansville. The following apply:

(1) The total amount of covered taxes captured by the tax area may not exceed:

(A) before July 1, 2026, ten dollars ($10) per resident of the city or county per year; and

(B) after June 30, 2026, two million dollars ($2,000,000) per year;

for twenty (20) consecutive years.

(2) For state fiscal years after June 30, 2026, the tax revenue captured in the tax area each year shall be transferred to the city of Evansville to be used for purposes consistent with section 19 of this chapter.

(d) This subsection applies to a tax area established in the city of Evansville that expired before July 1, 2021. The tax area described in this subsection is renewed beginning after June 30, 2021, for an additional twenty (20) consecutive years, and shall include:

(1) the boundaries of the tax area before its expiration; plus

(2) the additional tax areas added under section 8(e) of this chapter.

The provisions in sections 11 and 12 of this chapter are not applicable to the renewal of the tax area described in this subsection.

(e) This subsection applies to a tax area established in the city of South Bend that expired before July 1, 2021. The following apply:

(1) The tax area described in this subsection is renewed beginning after June 30, 2021, and shall include:

(A) the boundaries of the tax area before its expiration; plus

(B) the additional tax areas added under section 8(f) of this chapter.

The provisions in sections 11 and 12 of this chapter are not applicable to the renewal of the tax area described in this subsection.

(2) The maximum amount of covered taxes that may be captured in the tax area under this subsection is:

(A) before July 1, 2023, two million dollars ($2,000,000) per year; and

(B) after June 30, 2023, five million dollars ($5,000,000) per year.

(3) For state fiscal years beginning after June 30, 2023, the first two million five hundred thousand dollars ($2,500,000) captured in the tax area each year shall be transferred to the city of South Bend to be used for a capital improvement that will construct or equip a facility owned by the city and used by a professional sports franchise for practice or competitive sporting events.

(4) After the allocations under subdivision (3), any remaining amount shall be transferred to the city of South Bend to be used consistent with section 19(1) of this chapter.

The tax area renewed in the city of South Bend under this subsection terminates not later than June 30, 2044.

(f) This subsection applies to a tax area established in the city of Fishers. The following apply:

(1) The maximum amount of covered taxes that may be captured in the tax area is two million dollars ($2,000,000) per year.

(2) The tax revenue captured in the tax area each year shall be transferred to the city of Fishers to be used for a capital improvement that will construct or equip a facility owned by the city and used by a professional sports franchise for practice or competitive sporting events.

The tax area located in the city of Fishers terminates not later than June 30, 2044.

(g) The resolution establishing the tax area must designate the facility or proposed facility and the facility site for which the tax area is established.

(h) The department may adopt rules under IC 4-22-2 and guidelines to govern the allocation of covered taxes to a tax area.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.176-2009, SEC.26; P.L.182-2009(ss), SEC.511; P.L.119-2012, SEC.212; P.L.137-2012, SEC.121; P.L.100-2014, SEC.3; P.L.79-2021, SEC.2; P.L.104-2022, SEC.194; P.L.183-2023, SEC.3; P.L.213-2025, SEC.308.

IC 36-7-31.3-11Review of resolution by budget committee; notice requirements; information to taxing units Sec. 11. (a) Upon adoption of a resolution establishing a tax area under section 10 of this chapter, the designating body shall submit the resolution to the budget committee for review and recommendation to the budget agency.

(b) Upon adoption of a resolution changing the boundaries of a tax area under section 10 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 in the county where the district is located:

(A) A copy of the notice required by subdivision (1).

(B) A statement disclosing the impact of the district, including the following:

(i) The estimated economic benefits and costs incurred by the district, as measured by increased employment and anticipated growth of property assessed values.

(ii) The anticipated impact on tax revenues of each taxing unit.

The notice must state the general boundaries of the district.

(c) Upon completion of the actions required by subsection (b), the commission shall submit the resolution to the budget committee for review and recommendation to the budget agency. The budget committee shall meet not later than sixty (60) days after receipt of a resolution and shall make a recommendation on the resolution to the budget agency.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002, SEC.128; P.L.199-2005, SEC.37.

IC 36-7-31.3-12Approval of resolution by budget agency Sec. 12. (a) The budget agency must approve the resolution before covered taxes may be allocated under section 10 of this chapter.

(b) When considering a resolution, the budget committee and the budget agency must make the following findings:

(1) The cost of the facility and facility site specified under the resolution exceeds ten thousand dollars ($10,000).

(2) The capital improvement specified under the resolution is economically sound and will benefit the people of Indiana by protecting or increasing state and local tax bases and tax revenues for at least the duration of the tax area established under this chapter.

(3) The political subdivisions affected by the capital improvement specified under the resolution have committed significant resources towards completion of the improvement.

(c) Revenues from the tax area may not be allocated until the budget agency approves the resolution.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-13Allocation provision adoption; notice; district business information Sec. 13. (a) When the designating body adopts an allocation provision, the county auditor shall notify the department by certified mail of the adoption of the provision and shall include with the notification a complete list of the following:

(1) Employers in the tax area.

(2) Street names and the range of street numbers of each street in the tax area.

The county auditor shall update the list before July 1 of each year.

(b) Taxpayers operating in the district shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the salary, wages, bonuses, and other compensation that are:

(1) paid during a taxable year to a professional athlete for professional athletic services;

(2) taxable in Indiana; and

(3) earned in the district.

(c) A taxpayer operating in the district that files a consolidated tax return with the department also shall file annually an informational return with the department for each business location of the taxpayer within the district.

(d) If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating the amount of covered taxes attributable to a taxable event in a tax area or covered taxes from income earned in a tax area.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002, SEC.129; P.L.261-2013, SEC.46.

IC 36-7-31.3-13.5Limitation on renewal or extension of existing allocation area; required conditions Sec. 13.5. Notwithstanding any other law, if the Indiana economic development corporation subsequently designates territory that is located in an existing allocation area under this chapter as an innovation development district under IC 36-7-32.5, the allocation area may not be renewed or extended under this chapter until the term of the innovation development district expires.

As added by P.L.123-2024, SEC.14.

IC 36-7-31.3-14Professional sports and convention development area fund Sec. 14. If a tax area is established under section 10 of this chapter, a state fund known as the professional sports and convention development area fund is established for that tax area. The fund shall be administered by the department. Money in the fund does not revert to the state general fund at the end of a state fiscal year.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-15Deposit of taxes in fund Sec. 15. Covered taxes attributable to a taxing area under section 10 of this chapter shall be deposited in the professional sports and convention development area fund.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-16Distributions from fund Sec. 16. On or before the twentieth day of each month, all amounts held in the professional sports and convention development area fund shall be distributed to the county treasurer.

As added by P.L.255-1997(ss), SEC.20.

IC 36-7-31.3-17Notice of taxes to be distributed to county treasurer or party to agreement under IC 36-7-31.3-8(c) Sec. 17. The department shall notify the county auditor of the amount of taxes to be distributed to the county treasurer. For tax areas described in section 8(c) of this chapter, the department shall notify the county auditor of the amount of taxes to be distributed to each party to the agreement. The notice must specify the distribution and uses of covered taxes to be allocated under this chapter.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002, SEC.130.

IC 36-7-31.3-18Warrants Sec. 18. All distributions from the professional sports and convention development area fund for the county shall be made by warrants issued by the state comptroller to the treasurer of state ordering those payments to the county treasurer.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.9-2024, SEC.552.

IC 36-7-31.3-19Use of funds Sec. 19. The resolution establishing the tax area must designate the use of the funds. The funds are to be used only for the following:

(1) Except in a tax area in:

(A) the city of Fort Wayne; or

(B) the city of Gary;

a capital improvement that will construct or equip a facility owned by the city, the county, a school corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used by a professional sports franchise for practice or competitive sporting events. In a tax area to which this subdivision applies, funds may also be used for a capital improvement that will construct or equip a facility owned by the city, the county, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used for any purpose specified in section 8(a)(2) of this chapter.

(2) In the city of Fort Wayne, a capital improvement that will construct or equip a facility owned by the city, the county, a school corporation, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used for any purpose specified in section 8(a) of this chapter.

(3) In the city of Gary, a capital improvement that will construct or equip a facility owned by the city, the county, or a board under IC 36-9-13, IC 36-10-8, IC 36-10-10, or IC 36-10-11 and used for any purpose specified in section 8(a)(1) or 8(a)(2) of this chapter.

(4) The financing or refinancing of a capital improvement described in subdivision (1), (2), or (3) or the payment of lease payments for a capital improvement described in subdivision (1), (2), or (3).

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002, SEC.131; P.L.64-2004, SEC.37; P.L.119-2012, SEC.213; P.L.104-2022, SEC.195.

IC 36-7-31.3-20Repayments to fund Sec. 20. The designating body shall repay to the professional sports development area fund any amount that is distributed to the designating body and used for:

(1) a purpose that is not described in this chapter; or

(2) a facility or facility site other than the facility and facility site to which covered taxes are designated under the resolution described in section 10 of this chapter.

The department shall distribute the covered taxes repaid to the professional sports development area fund under this section proportionately to the funds and the political subdivisions that would have received the covered taxes if the covered taxes had not been allocated to the tax area under this chapter.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.178-2002, SEC.132.

IC 36-7-31.3-21Expiration of chapter Sec. 21. This chapter expires December 31, 2044.

As added by P.L.255-1997(ss), SEC.20. Amended by P.L.100-2014, SEC.4; P.L.79-2021, SEC.3; P.L.183-2023, SEC.4.

IC 36-7-31.5Chapter 31.5. Additional Professional Sports Development Area in a County Containing a Consolidated City

36-7-31.5-1Applicability of chapter 36-7-31.5-2Definitions 36-7-31.5-3General assembly findings 36-7-31.5-4Establishment of area; facilities 36-7-31.5-5Establishment of area; time; area changes; special taxing district 36-7-31.5-6Review of resolution by budget committee; notice requirements; information to taxing units 36-7-31.5-7Approval of resolution by budget agency; requirements 36-7-31.5-8Resolution; allocation of taxes to additional professional sports development area fund 36-7-31.5-8.5Limitation on renewal or extension of existing allocation area; required conditions 36-7-31.5-9Development of geographic information system codes; taxpayer reporting 36-7-31.5-10Additional professional sports development area fund 36-7-31.5-11Deposit of taxes in additional professional sports development area fund 36-7-31.5-12Distribution of taxes from fund 36-7-31.5-13Notice of taxes to be distributed to capital improvement board 36-7-31.5-14Warrants 36-7-31.5-15Uses of money from the fund 36-7-31.5-16Participation percentages 36-7-31.5-17Repayment to fund

IC 36-7-31.5-1Applicability of chapter Sec. 1. (a) This chapter applies only to a county having a consolidated city.

(b) The authority for the creation of a professional sports development area under this chapter is in addition to the authority for the creation of a professional sports development area under IC 36-7-31.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-2Definitions Sec. 2. The following definitions apply throughout this chapter:

(1) "Bonds" means bonds, notes, or other evidence of indebtedness.

(2) "Budget agency" means the budget agency created by IC 4-12-1.

(3) "Budget committee" means the budget committee established by IC 4-12-1-3.

(4) "Capital improvement" means any facility or complex of facilities established as part of an additional professional sports development area under section 4 of this chapter.

(5) "Capital improvement board" refers to the capital improvement board of managers created by IC 36-10-9-3.

(6) "City" refers to the city of Indianapolis, Indiana.

(7) "Commission" refers to the metropolitan development commission acting as the redevelopment commission of a consolidated city.

(8) "Covered taxes" means the following:

(A) The state gross retail tax imposed under IC 6-2.5-2-1 or use tax imposed under IC 6-2.5-3-2.

(B) An adjusted gross income tax imposed under IC 6-3-2-1 on an individual.

(C) The local income tax imposed under IC 6-3.6, other than local income taxes that are paid by local taxpayers described in IC 6-3.6-2-13(3).

(D) A food and beverage tax imposed under IC 6-9.

(9) "Department" refers to the department of state revenue.

(10) "Facility" means all or any part of one (1) or more buildings, structures, or improvements constituting a capital improvement. The term refers to and includes a capital improvement.

(11) "Facilities authority" refers to the county convention and recreational facilities authority created by IC 36-10-9.1.

(12) "Professional soccer team" means a professional soccer team that holds its home professional sporting events in a facility constituting a capital improvement.

(13) "Tax area" means a geographic area established by a commission as an additional professional sports development area under section 8 of this chapter.

(14) "Taxpayer" means a person that is liable for a covered tax.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-3General assembly findings Sec. 3. (a) The general assembly finds the following:

(1) Marion County and municipalities located in Marion County face unique and distinct challenges and opportunities related to economic development issues associated with the construction of facilities that would host professional soccer and other sporting and entertainment events in the city.

(2) A unique approach is required to ensure that the facilities can be maintained to allow Marion County and those municipalities to meet these challenges and opportunities.

(3) The powers and responsibilities provided to Marion County, the city, the facilities authority, and the capital improvement board by this chapter are appropriate and necessary to carry out the public purposes of encouraging and fostering economic development in central Indiana and constructing facilities that would host professional soccer and other sporting and entertainment events in the city.

(4) Encouragement of economic development in central Indiana will:

(A) generate significant economic activity, which may attract new businesses and encourage existing businesses to remain or expand in central Indiana;

(B) promote central Indiana to residents outside Indiana, which may attract residents outside Indiana and new businesses to relocate to central Indiana;

(C) protect and increase state and local tax revenues; and

(D) encourage overall economic growth in central Indiana and in Indiana.

(b) Marion County faces unique challenges in the development of infrastructure and other facilities necessary to promote economic development:

(1) as a result of its need to rely on sources of revenue other than property taxes;

(2) due to the large number of tax exempt properties located in Marion County;

(3) because the city is the seat of state government and Marion County government; and

(4) because Marion County is home to multiple institutions of higher education and the site of numerous state and regional nonprofit corporations.

(c) Economic development benefits the health and welfare of the people of Indiana, is a public use and purpose for which public money may be spent, and is of public utility and benefit.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-4Establishment of area; facilities Sec. 4. (a) A commission may establish as part of an additional professional sports development area any facility or complex of facilities that is:

(1) used to hold a professional sporting event, and which in addition, may be used to hold other entertainment events, including any publicly owned parking garage, plaza, or infrastructure that is constructed or renovated in connection with the construction of the facility used to hold a professional sporting event;

(2) used in the training of a team engaged in professional sporting events;

(3) used in whole or in part to manage and operate the professional team that would participate in the facility used to hold a professional sporting event; or

(4) a mixed use development, consisting, in part, of retail space, office space, apartment dwelling units, and one (1) or more hotels.

The tax area may include a facility described in this subsection and any parcel of land on which the facility is located. An area may contain noncontiguous tracts of land within the county. However, the straight line distance between any point in the tax area and the facility described in subdivision (1) may not exceed one (1) mile. The area must be separate from other professional sports development areas established under IC 36-7-31.

(b) Only the facilities described in subsection (a)(1) that are included within the additional professional sports development area may be financed with debt issued by the capital improvement board, the facilities authority, or a political subdivision.

(c) If a facility described in subsection (a)(1) shares a common wall or other improvements, equipment, or facilities with a facility described in subsection (a)(2) through (a)(4), the capital improvement board, the facilities board, or a political subdivision, as applicable, shall determine if any increase in the cost to construct or acquire the capital improvement results from the shared use and, consistent with subsection (b), whether the increased costs should or should not be financed.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-5Establishment of area; time; area changes; special taxing district Sec. 5. (a) A tax area must be initially established not later than July 1, 2024, according to the procedures set forth for the establishment of an economic development area under IC 36-7-15.1. A tax area may be changed or the terms governing the tax area revised in the same manner as the establishment of the initial tax area.

(b) In establishing or changing the terms of the tax area or revising the terms governing the tax area, the commission must make the following findings instead of the findings required for the establishment of economic development areas:

(1) That a project to be undertaken or that has been undertaken in the tax area is for a facility.

(2) That the project to be undertaken or that has been undertaken in the tax area will benefit the public health and welfare and will be of public utility and benefit.

(3) That the project to be undertaken or that has been undertaken in the tax area will protect or increase state and local tax bases and tax revenues.

(c) The tax area established by the commission under this chapter is a special taxing district authorized by the general assembly to enable the county to provide special benefits to taxpayers in the tax area by promoting economic development that is of public use and benefit.

As added by P.L.109-2019, SEC.16. Amended by P.L.11-2021, SEC.1.

IC 36-7-31.5-6Review of resolution by budget committee; notice requirements; information to taxing units Sec. 6. (a) Upon adoption of a resolution establishing a tax area under section 8 of this chapter, the commission shall submit the resolution to the budget committee for review.

(b) Upon adoption of a resolution changing the boundaries of a tax area under section 8 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 in the county in which the tax area is located:

(A) A copy of the notice required by subdivision (1).

(B) A statement disclosing the impact of the tax area, including the following:

(i) The estimated economic benefits and costs incurred by the tax, as measured by increased employment and anticipated growth of property assessed values.

(ii) The anticipated impact on tax revenues of each taxing unit.

The notice must state the general boundaries of the tax area.

(c) Upon completion of the actions required by subsection (b), the commission shall submit the resolution to the budget committee for review.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-7Approval of resolution by budget agency; requirements Sec. 7. (a) The budget agency must approve the resolution before the covered taxes may be allocated under section 8 of this chapter.

(b) When considering a resolution, the budget committee and the budget agency must make the following findings:

(1) The project specified in the resolution is economically sound and will benefit the people of Indiana by protecting or increasing state and local tax bases and tax revenues for at least the duration of the tax area established under this chapter.

(2) The political subdivisions affected by the project specified in the resolution have committed significant resources toward completion of the improvement.

(c) Revenues from the tax area may not be allocated until the budget agency approves the resolution.

(d) In addition to the requirements under subsections (a) and (c), covered taxes may not be allocated unless:

(1) the commission has established a tax area under section 8 of this chapter;

(2) the budget committee has reviewed the resolution;

(3) the city-county council has adopted an ordinance to impose an admissions tax under IC 6-9-13;

(4) the capital improvement board has adopted a resolution to apply revenue collected in the tax area and transferred to the capital improvement board from imposition of:

(A) an innkeeper's tax under IC 6-9-8; and

(B) an admissions tax under IC 6-9-13;

(5) the owner or owners of the professional soccer team have provided at least twenty percent (20%) of the cost of the project to construct the facility that will be used to host professional sporting events; and

(6) the Indiana finance authority has reviewed a feasibility study conducted by the capital improvement board, the commission, or the City of Indianapolis that demonstrates that the proposed project related to the proposed tax area will protect or increase the state tax base and revenues.

(e) Revenue described in subsection (d)(4) may be used in the manner described in section 15 of this chapter.

(f) For purposes of subsection (d)(5), the term "twenty percent (20%) of the cost" means either:

(1) an initial contribution made before construction begins equal to twenty percent (20%) of the total capital construction cost of the facility; or

(2) a commitment to pay twenty percent (20%) of the annual debt service or lease rental payments payable for the facility until the financing obligation for the facility is paid in full.

(g) An entity that:

(1) collects innkeeper's tax under IC 6-9-8 or food and beverage tax under IC 6-9-12 at one (1) or more properties in the tax area; and

(2) also has one (1) or more properties in the county that are outside the tax area;

must file separate returns for the properties in the tax area at which the entity collects innkeeper's tax under IC 6-9-8 or food and beverage tax under IC 6-9-12.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-8Resolution; allocation of taxes to additional professional sports development area fund Sec. 8. (a) A tax area must be established by resolution. A resolution establishing a tax area may provide for the allocation of covered taxes attributable to a taxable event or covered taxes earned in the tax area to the additional professional sports development area fund established for the county. The allocation provision must apply to the part of the tax area covered by this section. The resolution must provide that the tax area terminates not later than thirty-two (32) years after the first allocation of covered taxes from the tax area. Covered taxes may not be collected in the tax area until after the earlier of June 30, 2023, or the date on which all the conditions set forth in this chapter are met.

(b) All of the salary, wages, bonuses, and other compensation that are:

(1) paid during a taxable year to a professional athlete for professional athletic services;

(2) taxable in Indiana; and

(3) earned in the tax area;

shall be allocated to the tax area if the professional athlete is a member of a team that plays home games at a capital improvement in the tax area.

(c) The total amount of state revenue captured by the tax area may not exceed nine million five hundred thousand dollars ($9,500,000) per state fiscal year for not more than thirty-two (32) years after the first allocation of covered taxes from the tax area.

(d) The resolution establishing the tax area must designate the facilities and the sites of the facilities, for which the tax area is established and covered taxes will be used.

(e) The department may adopt rules and guidelines to govern the allocation of covered taxes to a tax area and to adopt withholding requirements in the manner authorized under IC 6-3-4-8.

As added by P.L.109-2019, SEC.16. Amended by P.L.11-2021, SEC.2.

IC 36-7-31.5-8.5Limitation on renewal or extension of existing allocation area; required conditions Sec. 8.5. Notwithstanding any other law, if the Indiana economic development corporation subsequently designates territory that is located in an existing allocation area under this chapter as an innovation development district under IC 36-7-32.5, the allocation area may not be renewed or extended under this chapter until the term of the innovation development district expires.

As added by P.L.123-2024, SEC.15.

IC 36-7-31.5-9Development of geographic information system codes; taxpayer reporting Sec. 9. (a) When the commission adopts an allocation provision, the commission shall, in cooperation with the department and the Indiana office of technology, develop geographic information system (GIS) codes for the properties in the tax area, in accordance with guidelines issued by the department. The commission shall provide the department with any information necessary for the department to use GIS codes and data to collect covered taxes in the tax area. The commission shall update the information provided to the department and the Indiana office of technology before July 1 of each year.

(b) Taxpayers operating in the tax area shall report monthly, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the salary, wages, bonuses, and other compensation:

(1) that are:

(A) paid during a taxable year to a professional athlete for professional athletic services;

(B) taxable in Indiana; and

(C) earned in the tax area; or

(2) that are:

(A) paid during a taxable year to a taxpayer other than a professional athlete for professional athletic services; and

(B) earned in the tax area.

(c) A taxpayer operating in the tax area that files a consolidated tax return with the department shall also file monthly an informational return with the department for each business location of the taxpayer within the tax area.

(d) Taxpayers operating in the tax area shall report monthly, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate withholdings required by IC 6-3-4-8.

(e) Taxpayers operating in the tax area shall report monthly, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate state gross retail taxes imposed under IC 6-2.5-2-1.

(f) If a taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating the amount of covered taxes attributable to a taxable event in a tax area or covered taxes from income earned in a tax area or by individuals living in the tax area.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-10Additional professional sports development area fund Sec. 10. An additional professional sports development area fund for the county is established. The fund shall be administered by the department. Money in the fund does not revert to the state general fund at the end of a state fiscal year.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-11Deposit of taxes in additional professional sports development area fund Sec. 11. Covered taxes attributable to a tax area approved under section 8 of this chapter shall be deposited in the additional professional sports development area fund for the county.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-12Distribution of taxes from fund Sec. 12. On or before the twentieth day of each month, all amounts on deposit in the additional professional sports development area fund for the county are appropriated for and shall be distributed to the capital improvement board.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-13Notice of taxes to be distributed to capital improvement board Sec. 13. The state comptroller, in cooperation with the department, shall notify the county auditor of the amount of taxes to be distributed to the capital improvement board.

As added by P.L.109-2019, SEC.16. Amended by P.L.9-2024, SEC.553.

IC 36-7-31.5-14Warrants Sec. 14. All distributions from the additional professional sports development area fund for the county shall be made by warrants issued by the state comptroller to the treasurer of state ordering those payments to the capital improvement board.

As added by P.L.109-2019, SEC.16. Amended by P.L.9-2024, SEC.554.

IC 36-7-31.5-15Uses of money from the fund Sec. 15. The capital improvement board may use money distributed from the additional professional sports development area fund to pay any costs related to a capital improvement described in section 4(a)(1) of this chapter, including the following:

(1) Any costs related to the operation, maintenance, or replacement of a capital improvement described in section 4(a)(1) of this chapter.

(2) Any costs related to constructing, renovating, and equipping a capital improvement described in section 4(a)(1) of this chapter.

(3) Any costs related to the financing or refinancing of a capital improvement described in section 4(a)(1) of this chapter.

(4) Any costs or expenses of the capital improvement board or the facilities authority incurred in connection with administering the capital improvement or related bonds, leases, agreements, or related undertakings.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-16Participation percentages Sec. 16. All capital improvements financed under this chapter are subject to the provisions of 25 IAC 5 concerning equal opportunities for minority business enterprises, women's business enterprises, and veteran or disabled business enterprises to participate in procurement and contracting processes. The goals for participation are the following:

(1) By minority business enterprises, fifteen percent (15%).

(2) By women's business enterprises, eight percent (8%).

(3) By veteran or disabled business enterprises, three percent (3%).

The commission or the capital improvement board may adjust these participation percentages for each goal to reflect the results of a disparity study conducted by the City of Indianapolis. These goals must be consistent with the goals of delivering the project on time and within the budgeted amount and, insofar as possible, using Indiana businesses for employees, goods, and services. In fulfilling the goals, historical precedents in the same market must be taken into account.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.5-17Repayment to fund Sec. 17. The capital improvement board shall repay to the additional professional sports development area fund any amount that is distributed to the capital improvement board and used for a purpose that is not described in section 15 of this chapter.

As added by P.L.109-2019, SEC.16.

IC 36-7-31.6Chapter 31.6. Northwest Indiana Professional Sports Development Area

36-7-31.6-1Definitions 36-7-31.6-2General assembly findings 36-7-31.6-3Establishment of area; facilities 36-7-31.6-4Establishment of area; time; area changes; special taxing district 36-7-31.6-5Review of resolution by budget committee; notice requirements; information to taxing units 36-7-31.6-6Approval of resolution by budget agency; requirements 36-7-31.6-7Resolution; allocation of taxes to professional sports development area fund 36-7-31.6-8Limitations on designation of territory 36-7-31.6-9Development of geographic information system codes; taxpayer reporting 36-7-31.6-10Professional sports development area fund 36-7-31.6-11Deposit of taxes in professional sports development area fund 36-7-31.6-12Distribution of taxes from fund 36-7-31.6-13Notice of taxes to be distributed to northwest Indiana stadium board 36-7-31.6-14Warrants 36-7-31.6-15Uses of money from the fund 36-7-31.6-16Repayment is used for unauthorized purpose

IC 36-7-31.6-1Definitions Sec. 1. The following definitions apply throughout this chapter:

(1) "Authority" means the northwest Indiana stadium authority created by IC 5-1-17.1.

(2) "Board" refers to the northwest Indiana stadium board created by IC 36-10-9.5.

(3) "Bonds" means bonds, notes, or other evidence of indebtedness.

(4) "Budget agency" means the budget agency created by IC 4-12-1.

(5) "Budget committee" means the budget committee established by IC 4-12-1-3.

(6) "Capital improvement" means any facility or complex of facilities established as part of the professional sports development area under section 3 of this chapter.

(7) "City" refers to the city of Hammond, Indiana.

(8) "Commission" means a redevelopment commission of the city.

(9) "Covered taxes" means the following:

(A) The state gross retail tax imposed under IC 6-2.5-2-1 or use tax imposed under IC 6-2.5-3-2.

(B) An adjusted gross income tax imposed under IC 6-3-2-1 on an individual.

(C) The local income tax imposed under IC 6-3.6.

(D) A food and beverage tax imposed under IC 6-9-36 or IC 6-9-58.

(10) "Department" refers to the department of state revenue.

(11) "Facility" means all or any part of one (1) or more buildings, structures, or improvements constituting a capital improvement. The term refers to and includes a capital improvement.

(12) "Tax area" means the geographic area established as the professional sports development area under section 3 of this chapter.

(13) "Taxpayer" means a person that is liable for a covered tax.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-2General assembly findings Sec. 2. (a) The general assembly finds the following:

(1) Northwest Indiana, including the city, faces unique and distinct challenges and opportunities related to economic development issues associated with the construction of facilities that would host professional sporting and entertainment events in the city.

(2) A unique approach is required to ensure that the facilities can be maintained to allow northwest Indiana to meet these challenges and opportunities.

(3) The powers and responsibilities provided to the city, the authority, and the board by this chapter are appropriate and necessary to carry out the public purposes of encouraging and fostering economic development in northwest Indiana and constructing facilities that would host professional sporting and entertainment events in the city.

(4) Encouragement of economic development in Indiana will:

(A) generate significant economic activity, which may attract new businesses and encourage existing businesses to remain or expand in northwest Indiana;

(B) promote northwest Indiana to residents outside Indiana, which may attract residents outside Indiana and new businesses to relocate to northwest Indiana;

(C) protect and increase state and local tax revenues; and

(D) encourage overall economic growth in northwest Indiana and in Indiana.

(b) Northwest Indiana faces unique challenges in the development of infrastructure and other facilities necessary to promote economic development:

(1) as a result of its need to rely on sources of revenue other than property taxes;

(2) due to the large number of tax exempt properties located in northwest Indiana; and

(3) because northwest Indiana is the site of numerous state and regional nonprofit corporations.

(c) Economic development benefits the health and welfare of the people of Indiana, is a public use and purpose for which public money may be spent, and is of public utility and benefit.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-3Establishment of area; facilities Sec. 3. (a) A commission may establish a professional sports development area in the city designated as the "northwest Indiana professional sports development area".

(b) The commission may establish as part of the professional sports development area any facility or complex of facilities that is:

(1) used to hold a professional sporting event, including a stadium, and which in addition, may be used to hold other entertainment events, including any publicly owned parking, including any public parking garages, plaza, or infrastructure that is constructed or renovated in connection with the construction of the facility used to hold a professional sporting event;

(2) used in the training of a team engaged in professional sporting events; and

(3) used in whole or in part to manage and operate the professional team that would participate in the facility used to hold a professional sporting event.

The tax area shall include any facility described in this subsection and any parcel of land on which the facility is located. An area may contain noncontiguous tracts of land within the city.

(c) Only the facilities described in subsection (b) that are included within the professional sports development area may be financed with debt issued by the board, the authority, or a political subdivision.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-4Establishment of area; time; area changes; special taxing district Sec. 4. (a) A tax area must be initially established not later than July 1, 2027, according to the procedures set forth for the establishment of an economic development area under IC 36-7-14. A tax area may be changed or the terms governing the tax area revised in the same manner as the establishment of the initial tax area.

(b) In establishing or changing the terms of the tax area or revising the terms governing the tax area, the commission must make the following findings required for the establishment of economic development areas:

(1) That a project to be undertaken or that has been undertaken in the tax area is for a facility.

(2) That the project to be undertaken or that has been undertaken in the tax area will benefit the public health and welfare and will be of public utility and benefit.

(3) That the project to be undertaken or that has been undertaken in the tax area will protect or increase state and local tax bases and tax revenues.

(c) The tax area established by the commission under this chapter is a special taxing district authorized by the general assembly to enable the authority and the board to provide special benefits to taxpayers in the tax area by promoting economic development that is of public use and benefit.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-5Review of resolution by budget committee; notice requirements; information to taxing units Sec. 5. (a) Upon adoption of a resolution changing the boundaries of a tax area under section 7 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 in the county in which the tax area is located:

(A) A copy of the notice required by subdivision (1).

(B) A statement disclosing the impact of the tax area, including the following:

(i) The estimated economic benefits and costs incurred by the tax, as measured by increased employment and anticipated growth of property assessed values.

(ii) The anticipated impact on tax revenues of each taxing unit.

The notice must state the general boundaries of the tax area.

(b) Upon adoption of a resolution establishing a tax area under section 7 of this chapter or upon completion of the actions required under subsection (a), the commission shall submit the resolution to the budget committee for review.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-6Approval of resolution by budget agency; requirements Sec. 6. (a) The budget agency must approve the resolution before the covered taxes may be allocated under section 7 of this chapter.

(b) When considering a resolution, the budget committee and the budget agency must make the following findings:

(1) The project specified in the resolution is economically sound and will benefit the people of Indiana by protecting or increasing state and local tax bases and tax revenues for at least the duration of the tax area established under this chapter.

(2) The political subdivisions affected by the project specified in the resolution have committed significant resources toward completion of the improvement.

(c) In addition to the requirement under subsections (a) and (b), covered taxes may not be allocated unless:

(1) the commission has established a tax area under section 7 of this chapter;

(2) the budget committee has reviewed the resolution;

(3) the common council of the city has adopted an ordinance imposing an admissions tax under IC 6-9-78;

(4) the board has adopted a resolution to apply revenue collected in the tax area and transferred to the board from imposition of:

(A) an admissions tax under IC 6-9-78; and

(B) a food and beverage tax under IC 6-9-36 or IC 6-9-58;

(5) at least fifty percent (50%) of the cost of the project to construct the facility that will be used to host professional sporting events shall be provided by private investment; and

(6) the Indiana finance authority has reviewed information provided by the board, the commission, or the city, that demonstrates that the proposed project related to the proposed tax area will protect or increase the state tax base and revenues.

(d) Revenue described in subsection (c)(4) may be used in the manner described in section 15 of this chapter.

(e) For purposes of subsection (c)(5), the term "fifty percent (50%) of the cost" means either:

(1) fifty percent (50%) of the total capital construction cost of the facility; or

(2) a commitment to pay fifty percent (50%) of the annual debt service or lease rental payments payable for the facility until the financing obligation for the facility is paid in full.

(f) An entity that:

(1) collects food and beverage tax under IC 6-9-36 of IC 6-9-58 at one (1) or more properties in the tax area; and

(2) also has one (1) or more properties in the county that are outside the tax area;

must file separate returns for the properties in the tax area at which the entity collects food and beverage tax under IC 6-9-36 or IC 6-9-58.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-7Resolution; allocation of taxes to professional sports development area fund Sec. 7. (a) A tax area must be established by resolution. A resolution establishing a tax area may provide for the allocation of covered taxes attributable to a taxable event or covered taxes earned in the tax area to the professional sports development area fund established for the city. The allocation provision must apply to the part of the tax area covered by this section. The resolution must provide that the tax area terminates not later than forty (40) years from the date the first obligation payable from covered taxes is incurred by the board. Covered taxes may not be collected in the tax area until after the earlier of June 30, 2027, or the date on which all the conditions set forth in this chapter are met. Any covered taxes attributable to a taxable event or covered taxes earned in the tax area shall be allocated to the professional sports development area fund established for the board.

(b) All of the salary, wages, bonuses, and other compensation that are:

(1) paid during a taxable year to a professional athlete for professional athletic services;

(2) taxable in Indiana; and

(3) earned in the tax area;

shall be allocated to the tax area if the professional athlete is a member of a team that plays home games at a capital improvement in the tax area.

(c) The resolution establishing the tax area must designate the facilities and the sites of the facilities, for which the tax area is established and covered taxes will be used.

(d) The department may adopt rules and guidelines to govern the allocation of covered taxes to the tax area and to adopt withholding requirements in the manner authorized under IC 6-3-4-8.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-8Limitations on designation of territory Sec. 8. Notwithstanding any other law, the following apply:

(1) The Indiana economic development corporation is prohibited from designating territory located in the tax area under this chapter as an innovation development district under IC 36-7-32.5.

(2) A designating body (as defined in IC 36-7-32.6-5) is prohibited from designating territory located in the tax area under this chapter as a stadium development district under IC 36-7-32.6.

(3) The legislative body of the city is prohibited from designating territory located in the tax area under this chapter as an allocation area under any other provision of Indiana code.

(4) The northwest Indiana regional development authority established by IC 36-7.5-2-1 is prohibited from designating territory located in the tax area under this chapter as a transit development district under IC 36-7.5-4.5.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-9Development of geographic information system codes; taxpayer reporting Sec. 9. (a) When the commission adopts an allocation provision, the commission shall, in cooperation with the department and the Indiana office of technology, develop geographic information system (GIS) codes for the properties in the tax area, in accordance with guidelines issued by the department. The commission shall provide the department with any information necessary for the department to use GIS codes and data to collect covered taxes in the tax area. The commission shall update the information provided to the department and the Indiana office of technology before July 1 of each year.

(b) Taxpayers operating in the tax area shall report monthly, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the salary, wages, bonuses, and other compensation:

(1) that are:

(A) paid during the taxable year to a professional athlete for professional athletic services;

(B) taxable in Indiana; and

(C) earned in the tax area; or

(2) that are:

(A) paid during a taxable year to a taxpayer other than a professional athlete for professional athletic services; and

(B) earned in the tax area.

(c) A taxpayer operating in the tax area that files a consolidated tax return with the department shall also file monthly an informational return with the department for each business location of the taxpayer within the tax area.

(d) Taxpayers operating in the tax area shall report monthly, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate withholdings required by IC 6-3-4-8.

(e) Taxpayers operating in the tax area shall report monthly, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate state gross retail taxes imposed under IC 6-2.5-2-1.

(f) If taxpayer fails to report the information required by this section or file an informational return required by this section, the department shall use the best information available in calculating the amount of covered taxes attributable to a taxable event in a tax area or covered taxes from income earned in a tax area or by individuals living in the tax area.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-10Professional sports development area fund Sec. 10. If a tax area is established under section 7 of this chapter, a professional sports development area fund is established for that tax area. The fund shall be administered by the department. Money in the fund does not revert to the state general fund at the end of a state fiscal year.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-11Deposit of taxes in professional sports development area fund Sec. 11. Covered taxes attributable to the tax area approved under section 7 of this chapter shall be deposited in the professional sports development area fund.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-12Distribution of taxes from fund Sec. 12. On or before the twentieth day of each month, all amounts on deposit in the professional sports development area fund are appropriated for and shall be distributed to the board.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-13Notice of taxes to be distributed to northwest Indiana stadium board Sec. 13. The state comptroller, in cooperation with the department, shall notify the president of the board of the amount of taxes to be distributed to the board.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-14Warrants Sec. 14. All distributions from the professional sports development area fund for the board shall be made by warrants issued by the state comptroller to the treasurer of state ordering those payments to the board.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-15Uses of money from the fund Sec. 15. The board may use money distributed from the professional sports development area fund to pay any costs related to a capital improvement described in section 3(b) of this chapter, including the following:

(1) Any costs related to the operation, maintenance, or replacement of a capital improvement described in section 3(b) of this chapter.

(2) Any costs related to constructing, renovating, and equipping a capital improvement described in section 3(b) of this chapter.

(3) Any costs related to the financing or refinancing of a capital improvement described in section 3(b) of this chapter, including but not limited to any debt service payments on bonds or lease rental payments in respect of leases.

(4) Any costs or expenses of the board or the authority incurred in connection with administering the capital improvement or related bonds, leases, agreements, or related undertakings.

As added by P.L.44-2026, SEC.26.

IC 36-7-31.6-16Repayment is used for unauthorized purpose Sec. 16. The board shall repay to the professional sports development area fund any amount that is distributed to the board and used for a purpose that is not described in this chapter.

As added by P.L.44-2026, SEC.26.

IC 36-7-32Chapter 32. Certified Technology Parks

36-7-32-1Units authorized to establish certified technology parks 36-7-32-2Application of definitions in IC 36-7 36-7-32-3Application of definitions in IC 6-1.1 36-7-32-4"Base assessed value" 36-7-32-5"Business incubator" 36-7-32-6"Gross retail base period amount" 36-7-32-6.5"Gross retail incremental amount" 36-7-32-7"High technology activity" 36-7-32-8"Income tax base period amount" 36-7-32-8.5"Income tax incremental amount" 36-7-32-8.7"Office" 36-7-32-9"Public facilities" 36-7-32-10Application; designation of area as certified technology park; expansion across county lines 36-7-32-11Designation; recertification 36-7-32-11.5Submission of proposed designations to the budget committee and the budget agency 36-7-32-12Agreements; governing certified technology parks 36-7-32-13Authority; sale price or rental value of public facilities below market value 36-7-32-14Marketing responsibilities 36-7-32-15Designation as allocation area; remonstrance 36-7-32-16Appeals; remonstrance 36-7-32-17Allocation and distribution of property taxes 36-7-32-17.3Limitation on renewal or extension of existing allocation area; required conditions 36-7-32-17.5Authorization to enter into an agreement with a taxpayer for waiver of review of an assessment of property taxes in an allocation area during the term of bonds or lease obligations payable from allocated property taxes 36-7-32-18Repealed 36-7-32-19Rules and forms; adjustment of base assessed value 36-7-32-20Notification to department of state revenue; computation of gross retail base revenue 36-7-32-21Annual computation; income tax incremental amount; gross retail incremental amount; district business information 36-7-32-22Incremental tax financing fund; deposits; distributions 36-7-32-23Certified technology park fund; deposit of funds; uses; transfers to third party operator or manager 36-7-32-24Bonds 36-7-32-25Declaration; public purpose 36-7-32-26Written agreement for joint economic development projects 36-7-32-27Terms of written agreement for joint economic development project 36-7-32-28Allocation area limitation 36-7-32-29Office of entrepreneurship and innovation report to budget committee