Indiana § 36-7.5-4-2.5 Use of revenue to support rail projects and double tracking project;
payments of revenue to development authority before certified
distributions are made

Indiana Statutes

§ 36-7.5-4-2.5 — Use of revenue to support rail projects and double tracking project; payments of revenue to development authority before certified distributions are made

Indiana § 36-7.5-4-2.5

Title 36LOCAL GOVERNMENT

Art. 7.5NORTHWEST INDIANA REGIONAL

Ch. 4Financing; Issuance of Bonds; Leases

This text of Indiana § 36-7.5-4-2.5 (Use of revenue to support rail projects and double tracking project; payments of revenue to development authority before certified distributions are made) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 36-7.5-4-2.5 (2026).

Text

Note: This version of section effective until 7-1-2027. See also following version of this section, effective 7-1-2027. Sec. 2.5.

(a)This section applies to a unit that has previously:

(1)entered into an interlocal cooperation or other similar agreement;

(2)adopted an ordinance or resolution; or

(3)taken any other action offering to support and finance:

(A)a rail project or rail projects under this chapter; or

(B)the double tracking project under IC 36-7.5-4.5.

(b)The unit may use any legally available revenue to support and finance the projects described in subsection (a)(3), including additional revenue allocated each year for economic development under IC 6-3.6-6-9.

(c)Additional revenue allocated for economic development to support and finance the projects under this section sh

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Note: This version of section effective until 7-1-2027. See also
following version of this section, effective 7-1-2027.
Sec. 2.5. (a) This section applies to a unit that has
previously:
(1) entered into an interlocal cooperation or other similar
agreement;
(2) adopted an ordinance or resolution; or
(3) taken any other action offering to support and finance:
(A) a rail project or rail projects under this chapter; or
(B) the double tracking project under IC 36-7.5-4.5.
(b) The unit may use any legally available revenue to support and
finance the projects described in subsection (a)(3), including additional
revenue allocated each year for economic development under IC 6-3.6-6-9.
(c) Additional revenue allocated for economic development to
support and finance the projects under this section shall be paid by the
treasurer of state to the treasurer of the northwest Indiana regional
development authority under section 2 of this chapter before certified
distributions are made to the county or any civil taxing unit in the
county or counties in which the unit is located.
(d) A transfer made on behalf of a unit under subsection (c) after
December 31, 2018, is considered to be a payment for services
provided to residents by a rail project as those services are rendered.
(e) A pledge by the development authority of transferred revenue
under this section to the payment of bonds, leases, or obligations under
this article or IC 5-1.3:
(1) constitutes the obligations of the northwest Indiana regional
development authority; and
(2) does not constitute an indebtedness of:
(A) a unit described in this section; or
(B) the state;
within the meaning or application of any constitutional or
statutory provision or limitation.
(f) Neither the transfer of revenue nor the pledge of revenue
transferred under this section is an impairment of contract within the
meaning or application of any constitutional provision or limitation
because of the following:
(1) The statutes governing local income taxes, including the
transferred revenue, have been the subject of legislation annually
since 1973, and during that time the statutes have been revised,
amended, expanded, limited, and recodified dozens of times.
(2) Owners of bonds, leases, or other obligations to which local
income tax revenues have been pledged recognize that the
regulation of local income taxes has been extensive and
consistent.
(3) All bonds, leases, or other obligations, due to their essential
contractual nature, are subject to relevant state and federal law
that is enacted after the date of a contract.
(4) The state of Indiana has a legitimate interest in assisting the
northwest Indiana regional development authority in financing
rail projects.
(g) All proceedings had and actions described in this section are
valid pledges under IC 5-1-14-4 as of the date of those proceedings or
actions and are hereby legalized and declared valid if taken before
March 15, 2018.