2023 Indiana Code › Title 6. Taxation › Article 3.6. Local Income Taxes › Chapter 11. Supplemental Allocation and Distribution Requirements › 6-3.6-11-7. Pledges of Revenue for Rail Projects

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 auditor of state and shall be paid by the auditor of state 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.
As added by P.L.189-2018, SEC.61. Amended by P.L.259-2019, SEC.11.