§ 6-3.6-11-6 — Member counties and municipalities of the northwest Indiana regional development authority; special allocations; pledges of revenue

Indiana § 6-3.6-11-6

• Jurisdiction: Indiana
• Art. 3.6: LOCAL INCOME TAXES
• Ch. 11: Supplemental Allocation and Distribution

Text

Note: This version of section effective until 1-1-2028. See also
following version of this section, effective 1-1-2028.
Sec. 6. (a) This section applies to Lake County,
LaPorte County, Porter County, and any municipality in those counties
that is a member of the northwest Indiana regional development
authority (IC 36-7.5) for purposes of categorizations, allocations, and
distributions of additional revenue that is allocated each year for
economic development purposes under IC 6-3.6-6-9.
(b) This subsection applies only to Lake County. The county or a
city described in IC 36-7.5-2-3(b) may use additional revenue that is
allocated each year for economic development purposes under IC 6-3.6-6-9 for making transfers required by IC 36-7.5-4-2 or to provide
rail project funding under IC 36-7.5-4.5. The additional revenue
allocated for economic development and used to make the transfers
required by IC 36-7.5-4-2 or to provide rail project funding shall be
paid by the treasurer of state to the treasurer of the northwest Indiana
regional development authority before certified distributions are made
to the county or any cities or towns in the county. The county or a city
or town in the county may use additional revenue that is allocated each
year for economic development purposes under IC 6-3.6-6-9 to provide
homestead credits in the county, city, or town. The following apply to
homestead credits provided under this subsection:
(1) The county, city, or town fiscal body must adopt an ordinance
authorizing the homestead credits. The ordinance must specify the
amount of additional revenue that will be used to provide
homestead credits in the following year.
(2) The county, city, or town fiscal body that adopts an ordinance
under this subsection must forward a copy of the ordinance to the
county auditor and the department of local government finance
not more than thirty (30) days after the ordinance is adopted.
(3) The homestead credits must be applied uniformly to provide
a homestead credit for homesteads in the county, city, or town.
(4) The homestead credits shall be treated for all purposes as
property tax levies.
(5) The homestead credits shall be applied to the net property
taxes due on the homestead after the application of all other
assessed value deductions or property tax deductions and credits
that apply to the amount owed under IC 6-1.1.
(6) The state comptroller shall determine the homestead credit
percentage for a particular year based on the amount of additional
revenue that will be used under this subsection to provide
homestead credits in that year.
(c) This subsection applies only to LaPorte County as follows:
(1) This subsection applies if:
(A) the county fiscal body has adopted an ordinance under IC 36-7.5-2-3(d) providing that the county is joining the northwest
Indiana regional development authority; and
(B) the fiscal body of the city described in IC 36-7.5-2-3(d) has
adopted an ordinance under IC 36-7.5-2-3(d) providing that the
city is joining the development authority.
(2) Additional revenue that is allocated each year for economic
development purposes under IC 6-3.6-6-9 may be used by a
county or a city described in IC 36-7.5-2-3(d) for making transfers
required by IC 36-7.5-4-2. In addition, if the allocation of
additional revenue for economic development purposes under IC 6-3.6-6-9 is increased in the county, the first three million five
hundred thousand dollars ($3,500,000) of the tax revenue that
results each year from the allocation increase shall be used by the
county only to make the county's transfer required by IC 36-7.5-4-2 and shall be paid by the treasurer of state to the
treasurer of the northwest Indiana regional development authority
under IC 36-7.5-4-2 before certified distributions are made to the
county or any cities or towns in the county.
(3) All of the additional revenue allocated for economic
development purposes under IC 6-3.6-6-9 that results each year
from an allocation increase described in subdivision (2) and that
is in excess of the first three million five hundred thousand dollars
($3,500,000) must be used by the county and cities and towns in
the county for homestead credits under this subsection. The
following apply to homestead credits provided under this
subsection:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county, city,
or town.
(B) The homestead credits shall be treated for all purposes as
property tax levies.
(C) The homestead credits shall be applied to the net property
taxes due on the homestead after the application of all other
assessed value deductions or property tax deductions and
credits that apply to the amount owed under IC 6-1.1.
(D) The state comptroller shall determine the homestead credit
percentage for a particular year based on the amount of
additional revenue that will be used under this subdivision to
provide homestead credits in that year.
(d) This subsection applies only to Porter County. The additional
revenue designated each year for economic development purposes
under IC 6-3.6-6 shall be allocated and used as follows:
(1) First, the revenue attributable to an income tax rate of
twenty-five hundredths percent (0.25%) shall be allocated to the
county and cities and towns as provided in IC 6-3.6-6-9.
(2) Second, the next three million five hundred thousand dollars
($3,500,000) of the revenue shall be used for the county or for
eligible municipalities (as defined in IC 36-7.5-1-11.3) in the
county, to make transfers as provided in and required under IC 36-7.5-4-2. The additional revenue used to make the transfers as
provided in IC 36-7.5-4-2 shall be paid by the treasurer of state to
the treasurer of the northwest Indiana regional development
authority before certified distributions are made to the county or
any taxing unit in the county. If Porter County ceases to be a
member of the northwest Indiana regional development authority
under IC 36-7.5 but two (2) or more municipalities in the county
have become members of the northwest Indiana regional
development authority as authorized by IC 36-7.5-2-3(h), the
treasurer of state shall continue to transfer this amount to the
treasurer of the northwest Indiana regional development authority
under IC 36-7.5-4-2.
(3) Third, except as provided in IC 36-7.5-3-5, all of the revenue
each year that is in excess of the amounts described in
subdivisions (1) and (2) must be used by the county and cities and
towns in the county for homestead credits. The following apply to
homestead credits provided under this subdivision:
(A) The homestead credits must be applied uniformly to
provide a homestead credit for homesteads in the county, city,
or town.
(B) The homestead credits shall be treated for all purposes as
property tax levies.
(C) The homestead credits shall be applied to the net property
taxes due on the homestead after the application of all other
assessed value deductions or property tax deductions and
credits that apply to the amount owed under IC 6-1.1.
(D) The state comptroller shall determine the homestead credit
percentage for a particular year based on the amount of
additional revenue that will be used under this subdivision to
provide homestead credits in that year.
(e) A transfer made on behalf of a city, town, or county under this
section after December 31, 2018, is to be considered a payment for
services provided to residents by a rail project as those services are
rendered.
(f) A pledge by the northwest Indiana regional 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 county or municipality described in this section; or
(B) the state;
within the meaning or application of any constitutional or
statutory provision or limitation.
(g) 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 has a legitimate interest in assisting the northwest
Indiana regional development authority in financing rail projects
(as defined in IC 36-7.5-1-13.5).
(h) All proceedings had and actions described in this section are
valid pledges under IC 5-1-14-4 as of the date of those pledges or
actions and are hereby legalized and declared valid if taken before
March 15, 2018.

Legislative History

As added by P.L.197-2016, SEC.72. Amended by P.L.248-2017, SEC.1; P.L.189-2018, SEC.60; P.L.165-2021, SEC.97; P.L.9-2024, SEC.194.