§ 6-3.6-10-3 — Issuance of bonds for economic development projects; minimum tax rate; procedures; covenant by the general assembly

Indiana § 6-3.6-10-3

• Jurisdiction: Indiana
• Art. 3.6: LOCAL INCOME TAXES
• Ch. 10: Permitted Expenditures

Text

Note: This version of section effective until 1-1-2028. See also
following version of this section, effective 1-1-2028.
Sec. 3. (a) The fiscal body of a county, city, or town
may issue bonds payable from revenue under IC 6-3.6-6. The bonds
must be for economic development projects.
(b) The fiscal body of a county, city, or town may issue bonds
payable from revenue described in section 2 of this chapter for any
capital project for which the fiscal body is authorized to issue general
obligation bonds. The bonds issued under this section may be payable
from the tax if the county option income tax (IC 6-3.5-6 repealed), the
county adjusted gross income tax (IC 6-3.5-1.1 repealed), or a tax
under IC 6-3.6-6 is also in effect in the county at the time the bonds are
issued.
(c) If there are bonds outstanding that have been issued under this
section, or leases in effect under section 4 of this chapter, the adopting
body may not reduce the tax imposed under IC 6-3.6-6, or an allocation
under IC 6-3.6-6-9, or certified shares pledged to repay bonds, as
appropriate, below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual debt service on
the bonds to their final maturity, plus the highest annual lease
payments, unless:
(1) the body that imposed a tax under IC 6-3.6-6; or
(2) any city, town, or county;
pledges all or a part of its certified shares for the life of the bonds or the
term of the lease, in an amount that is sufficient, when combined with
the amount pledged by the city, town, or county that issued the bonds,
to produce one and twenty-five hundredths (1.25) times the total of the
highest outstanding annual debt service plus the highest annual lease
payments.
(d) For purposes of subsection (c), the determination of a tax rate
sufficient to produce one and twenty-five hundredths (1.25) times the
total of the highest outstanding annual debt service plus the highest
annual lease payments must be based on an average of the immediately
preceding three (3) years tax collections, if the tax has been imposed
for the last preceding three (3) years. If the tax has not been imposed
for the last preceding three (3) years, the body that imposed the tax may
not reduce the rate below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual debt service,
plus the highest annual lease payments, based upon a study by a
qualified public accountant or financial advisor.
(e) IC 6-1.1-20 does not apply to the issuance of bonds under this
section.
(f) Bonds issued under this section may be sold at a public sale in
accordance with IC 5-1-11 or may be sold at a negotiated sale.
(g) After a sale of bonds under this section, the county auditor shall
prepare a debt service schedule for the bonds.
(h) The general assembly covenants that it will not repeal or amend
this article in a manner that would adversely affect owners of
outstanding bonds issued, or payment of any lease rentals due, under
this section.

Legislative History

As added by P.L.243-2015, SEC.10.