§ 6-1.1-20.6-10 — Payment of debt service obligations

Indiana § 6-1.1-20.6-10

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 20.6: Credit for Excessive Property Taxes

Text

(a) As used in this section, "debt service
obligations of a political subdivision" refers to:
(1) the principal and interest payable during a calendar year on
bonds; and
(2) lease rental payments payable during a calendar year on
leases;
of a political subdivision payable from ad valorem property taxes.
(b) Political subdivisions are required by law to fully fund the
payment of their debt obligations in an amount sufficient to pay any
debt service or lease rentals on outstanding obligations, regardless of
any reduction in property tax collections due to the application of tax
credits granted under this chapter.
(c) Upon the failure of a political subdivision to pay any of the
political subdivision's debt service obligations during a calendar year
when due, the treasurer of state, upon being notified of the failure by
a claimant, shall pay the unpaid debt service obligations that are due
from money in the possession of the state that would otherwise be
available for distribution to the political subdivision under any other
law, deducting the payment from the amount distributed. A deduction
under this subsection must be made:
(1) first from local income tax distributions under IC 6-3.6-9; and
(2) second from any other undistributed funds of the political
subdivision in the possession of the state.
(d) This section shall be interpreted liberally so that the state shall
to the extent legally valid ensure that the debt service obligations of
each political subdivision are paid when due. However, this section
does not create a debt of the state.

Legislative History

As added by P.L.146-2008, SEC.226. Amended by P.L.172-2011, SEC.43; P.L.137-2012, SEC.36; P.L.197-2016, SEC.18.