§ 6-3.6-11-7 — Pledges of revenue for rail projects

Indiana § 6-3.6-11-7

• 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. 7. (a) This section applies to a civil taxing unit
that has previously:
(1) entered into an interlocal cooperation or similar agreement;
(2) adopted an ordinance or resolution; or
(3) taken any other action;
offering to provide revenue to support and finance a rail project or rail
projects (as defined under IC 36-7.5-1-13.5).
(b) The additional revenue that would otherwise be allocated to a
civil taxing unit described in subsection (a) shall be withheld under
section 5.5 of this chapter by the state comptroller and shall be paid by
the state comptroller to the secretary-treasurer of the northwest Indiana
regional development authority under IC 36-7.5-4-2 before certified
distributions are made to the county and before the county auditor may
allocate or distribute tax revenue under this article to any civil taxing
unit in the county or counties in which the unit is located.
(c) Amounts:
(1) withheld under section 5.5 of this chapter; and
(2) transferred on behalf of a civil taxing unit under this section;
after December 31, 2018, are considered to be a payment for services
provided to residents by a rail project as such services are rendered.
(d) A pledge by the northwest Indiana regional development
authority of withheld or transferred revenue received under this chapter
to the payment of bonds, leases, or obligations under IC 36-7.5 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.
(e) Neither the withholding or transfer of revenue nor the pledge of
revenue withheld or transferred under this chapter 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
withheld or 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).
(f) All:
(1) agreements;
(2) ordinances or resolutions; and
(3) proceedings had and actions described in this chapter;
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
April 30, 2019.

Legislative History

As added by P.L.189-2018, SEC.61. Amended by P.L.259-2019, SEC.11; P.L.9-2024, SEC.195.