Ind. Code ch. 36-7-31.5

in effect

Ind. Code § 36-7-31.5-1 Applicability 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.

Ind. Code § 36-7-31.5-2 Definitions

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.

Ind. Code § 36-7-31.5-3 General 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.

Ind. Code § 36-7-31.5-4 Establishment 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.

Ind. Code § 36-7-31.5-5 Establishment 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.

Ind. Code § 36-7-31.5-6 Review 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.

Ind. Code § 36-7-31.5-7 Approval 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.

Ind. Code § 36-7-31.5-8 Resolution; 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.

Ind. Code § 36-7-31.5-8.5 Limitation 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.

Ind. Code § 36-7-31.5-9 Development 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.

Ind. Code § 36-7-31.5-10 Additional 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.

Ind. Code § 36-7-31.5-11 Deposit 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.

Ind. Code § 36-7-31.5-12 Distribution 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.

Ind. Code § 36-7-31.5-13 Notice 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.

Ind. Code § 36-7-31.5-14 Warrants

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.

Ind. Code § 36-7-31.5-15 Uses 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.

Ind. Code § 36-7-31.5-16 Participation 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.

Ind. Code § 36-7-31.5-17 Repayment 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.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026