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Home My Public Portal About065-2013 - Tax Abatement Deductinon ScheduleORDINANCE NO.65- 2013 A SPECIAL ORDINANCE ESTABLISHING DEDUCTION SCHEDULES FOR PROPERTY OWNERS OBTAINING DEDUCTIONS FROM ASSESSED VALUE OF CERTAIN PROPERTY WITHIN AN ECONOMIC REVITALIZATION AREA WHEREAS, Pursuant to Indiana Law, I.C. 6-1.1-12.1 et. seq., the Common Council of the City of Richmond, Indiana may find that a particular area within the city is an Economic Revitalization Area which provides as an economic development incentive certain property tax deductions for the redevelopment or rehabilitation of real property or the installation of new manufacturing equipment; and WHEREAS, The Common Council has previously adopted Resolution No. 10-1984 which designates certain areas in the City as Economic Revitalization Areas and sets forth certain procedures for an owner to obtain certain deductions therein; and WHEREAS, Resolution No. 10-1984 has previously been amended to add other areas as an ERA; making definition changes to the original ordinance, setting forth the time periods in which a deduction is allowed, and establishing other procedures for obtaining deductions (see Resolutions 2-1987, 11- 1989, 11-1991, 3-1996, Ordinances 72-1996, 90-1996, 113-1997, 19- 2000, 29-2006, 31-2007, and 76-2011); and WHEREAS, Indiana law has previously allowed the owner of real property and personal property located within an economic revitalization area to request a deduction over a one (1) to ten (10) year period and has previously established the abatement deduction schedules for real property deductions and personal property deductions; and WHEREAS, Effective July 1, 2013, Indiana Code (IC) 6-1.1-12.1-1 et seq. requires a designating body to establish an abatement deduction schedule for each deduction including the percentage of the deduction for each year the deduction is granted not to exceed 10 years; and WHEREAS, Ordinance 76-2011 provides criteria for the establishment of alternate abatement deduction schedules; and WHEREAS, Pursuant to IC 6-1.1-12.1-17(b), Common Council desires to establish deduction schedules that parallel the deduction schedules previously outlined in IC 6-1.1-12.1 et. seq. (see P.L.112-2012 §27 and P.L.6-2012 §41), for businesses expanding or relocating in economic revitalization areas in Richmond not utilizing the criteria outlined in ordinance 76-2011. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Richmond, Indiana, that deduction schedules for personal property and real estate deductions permitted by IC 6-1.1-12.1 et. seq. that do not utilize the alternative abatement deduction schedule outlined in Ordinance 76-2011 are set forth as follows: Real Property Deductions 1. For deductions allowed for a one (1) year period: Year 1 100% 2. For deductions allowed for a two (2) year period: Year 1 100% Year 2 50% 3. For deductions allowed for a three (3) year period: Year 1 100% Year 2 66% Year 3 33% 4. For deductions allowed for a four (4) year period: Year 1 100% Year 2 75% Year 3 50% Year 4 25% 5. For deductions allowed for a five (5) year period: Year 1 100% Year 2 80% Year 3 60% Year 4 40% Year 5 20% 6. For deductions allowed for a six (6) year period: Year 1 100% Year 2 85% Year 3 66% Year 4 50% Year 5 34% Year 6 17% 7. For deductions allowed for a seven (7) year period: Year 1 100% Year 2 85% Year 3 71 % Year 4 57% Year 5 43% Year 6 29% Year 7 14% 8. For deductions allowed for a eight (8) year period: Year 1 100% Year 2 88% Year 3 75% Year 4 63% Year 5 50% Year 6 38% Year 7 25% Year 8 13% 9. For deductions allowed for a nine (9) year period: Year 1 100% Year 2 88% Year 3 77% Year 4 66% Year 5 55% Year 6 44% Year 7 33% Year 8 22% Year 9 11 % 10. For deductions allowed for a ten (10) year period: Year 1 100% Year 2 95% Year 3 80% Year 4 65% Year 5 50% Year 6 40% Year 7 30% Year 8 20% Year 9 10% Year 10 5% Personal Property Deductions 1. For deductions allowed for a one (1) year period: Year 1 100% 2. For deductions allowed for a two (2) year period: Year 1 100% Year 2 50% 3. For deductions allowed for a three (3) year period: Year 1 100% Year 2 66% Year 3 33% 4. For deductions allowed for a four (4) year period: Year 1 100% Year 2 75% Year 3 50% Year 4 25% 5. For deductions allowed for a five (5) year period: Year 1 100% Year 2 80% Year 3 60% Year 4 40% Year 5 20% 6. For deductions allowed for a six (6) year period: Year 1 100% Year 2 85% Year 3 66% Year 4 50% Year 5 34% Year 6 25% 7. For deductions allowed for a seven (7) year period: Year 1 100% Year 2 85% Year 3 71 % Year 4 57% Year 5 43% Year 6 29% Year 7 14% 8. For deductions allowed for a eight (8) year period: Year 1 100% Year 2 88% Year 3 75% Year 4 63% Year 5 50% Year 6 38% Year 7 25% Year 8 13% 9. For deductions allowed for a nine (9) year period: Year 1 100% Year 2 88% Year 3 77% Year 4 66% Year 5 55% Year 6 44% Year 7 33% Year 8 22% Year 9 11 % 10. For deductions allowed for a ten (10) year period: Year 1 100% Year 2 90% Year 3 80% Year 4 70% Year 5 60% Year 6 50% Year 7 40% Year 8 30% Year 9 20% Year 10 10% PASSED AND ADOPTED this day o 4Y3, by the Common Council of the City of Richmond, Indiana. President Parker A S ` ' rk Karen Chasteen, IAMC, MMC PRESENTED to the Mayor of the City of Richmond, Indiana, this �y day of 2013, at 9:00 a.m. Jerk Karen Chasteen, IAMC, MMC APPROVED by me, Sarah L. Hutton, Mayor of the City of Richmond, Indiana, this 40 day of Np 1/ , 2013, at 9:05 a.m. C�1�� Mayor (Sarah L. Hutton) ATTES (Ci(ell� Karen Chasteen, IAMC, MMC