(A) Required submission. Projects for which the statement of benefits was approved after June 30, 1991 are required by I.C. 6-1.1-12.1-5.1 and 5.6 to submit information showing the extent to which there have been reasonable efforts to substantially comply with the statement of benefits. Within 45 days from receipt of the information concerning compliance with a statement of benefits, the County Council may determine whether the property owner seeking tax phase-in has made reasonable efforts to substantially comply with the statement of benefits previously approved by the County Council.
(B) Compliance review. Upon receipt of Form CF-1 concerning compliance with a statement of benefits, the Department shall prepare a compliance review sheet comparing projected investment in real estate, new manufacturing equipment and/or new research and development equipment and job retention and/or creation on the statement of benefits with actual investment and employment information supplied concerning compliance with the statement of benefits. If it does not appear that the taxpayer made reasonable efforts to substantially comply with the statement of benefits, the Department shall contact the taxpayer to obtain additional information as to the reasons that the taxpayer did not substantially comply with statement of benefits, whether the taxpayer made reasonable efforts to substantially comply, and whether any failure to comply was caused by factors beyond the control of the taxpayer. The Department shall transmit the compliance review sheet to the County Council President.
(C) County Council review. The County Council is responsible for reviewing the compliance review sheets; making determinations as to whether a taxpayer has made reasonable efforts to substantially comply with its statement of benefits; and holding hearings for those taxpayers who do not appear to have made reasonable efforts to substantially comply with their statement of benefits. If the County Council determines that the taxpayer has not made reasonable efforts to substantially comply with the statement of benefits, it shall establish a date for a compliance hearing. It is highly recommended that a representative for the taxpayer and/or legal counsel be present and prepared to speak about the compliance at each County Council meeting or hearing where taxpayer's compliance is on the agenda.
(D) Hearing notice. For those projects for which the County Council has established a compliance hearing date, the Department shall prepare a written notice which shall be sent to the taxpayer by Certified Mail, return receipt requested, and if the project includes new manufacturing equipment or research and development equipment, to the State Board of Tax Commissioners. Said notice shall include the information required by I.C. 6-1.1-12.1-5.9.
(E) Resolution to terminate deduction. For those projects for which a compliance hearing is scheduled, the Department shall prepare and file a resolution to terminate deduction.
(F) Compliance hearing. On the scheduled hearing date the County Council shall conduct a compliance hearing to determine whether the property owner has made reasonable efforts to substantially comply with the statement of benefits and whether any failure to comply was caused by factors beyond the control of the taxpayer.
(G) County Council determination.
(1) If the County Council determines that the taxpayer did not make reasonable efforts to substantially comply with the statement of benefits and that such failure to comply was not caused by factors beyond the control of the taxpayer, the County Council shall terminate the deduction.
(2) If the County Council determines that the taxpayer did make reasonable efforts to substantially comply with the statement of benefits or that failure to comply was caused by factors beyond control of the taxpayer, the County Council shall make a "Do Pass" not to terminate the deduction.
(H) County Council action. If the resolution to terminate the deduction is adopted by the County Council, the Department shall transmit copies of the resolution to the taxpayer, the County Auditor and, if the deduction was for new manufacturing equipment, to the State Board of Tax Commissioners.
(CC Res. 2006-07, passed 5-4-06)