Ind. Code ch. 36-7-31.6

in effect

Ind. Code § 36-7-31.6-1 Definitions

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.

Ind. Code § 36-7-31.6-2 General 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.

Ind. Code § 36-7-31.6-3 Establishment 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.

Ind. Code § 36-7-31.6-4 Establishment 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.

Ind. Code § 36-7-31.6-5 Review 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.

Ind. Code § 36-7-31.6-6 Approval 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.

Ind. Code § 36-7-31.6-7 Resolution; 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.

Ind. Code § 36-7-31.6-8 Limitations 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.

Ind. Code § 36-7-31.6-9 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 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.

Ind. Code § 36-7-31.6-10 Professional 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.

Ind. Code § 36-7-31.6-11 Deposit 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.

Ind. Code § 36-7-31.6-12 Distribution 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.

Ind. Code § 36-7-31.6-13 Notice 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.

Ind. Code § 36-7-31.6-14 Warrants

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.

Ind. Code § 36-7-31.6-15 Uses 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.

Ind. Code § 36-7-31.6-16 Repayment 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.

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