Ind. Code ch. 36-7.5-4.5

Ind. Code ch. 36-7.5-4.5
in effect

Ind. Code § 36-7.5-4.5-0.5 "Associate member"

Sec. 0.5. As used in this chapter, "associate member" refers to a county or municipality that adopted an ordinance or resolution under section 16 of this chapter specifying that the county or municipality has chosen to become an associate member. As added by P.L.189-2018, SEC.178.

Ind. Code § 36-7.5-4.5-1 "Base assessed value"

Sec. 1. As used in this chapter, "base assessed value" means: (1) the net assessed value of all the taxable property located in a transit development district as finally determined for the assessment date immediately preceding the effective date of the resolution adopted under this chapter establishing the particular district; plus (2) to the extent it is not included in subdivision (1), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the resolution. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-2 "Budget agency"

Sec. 2. As used in this chapter, "budget agency" means the budget agency established by IC 4-12-1-3. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-2.5 "Cash participant"

Sec. 2.5. As used in this chapter, "cash participant" refers to a county or municipality that has adopted an ordinance or resolution under section 16 of this chapter specifying that the county or municipality has chosen to become a cash participant. As added by P.L.189-2018, SEC.179.

Ind. Code § 36-7.5-4.5-3 "Corridor"

Sec. 3. As used in this chapter, "corridor" means the geographic area established as a rail transit development corridor by this chapter. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-4 "Department"

Sec. 4. As used in this chapter, "department" refers to the department of state revenue. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-5 "Development project"

Sec. 5. As used in this chapter, "development project" includes only development projects that benefit the corridor. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-6 "District"

Sec. 6. As used in this chapter, "district" refers to a transit development district established by the development authority under this chapter. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-7 "Gross retail tax base period amount"

Sec. 7. As used in this chapter, "gross retail tax base period amount" means the aggregate amount of state gross retail taxes remitted under IC 6-2.5 by retail merchants for the calendar year in which the district was established under this chapter as determined by the department. As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.189.

Ind. Code § 36-7.5-4.5-8 "Gross retail tax increment revenue"

Sec. 8. As used in this chapter, "gross retail tax increment revenue" means the remainder of: (1) the aggregate amount of state gross retail taxes that are remitted under IC 6-2.5 by retail merchants during a calendar year with respect to the retail merchants' operations in the district; minus (2) the gross retail tax base period amount. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-9 "Local income tax base period amount"

Sec. 9. (a) As used in this chapter, "local income tax base period amount" means the total amount of local income tax (IC 6-3.6) paid by: (1) employees employed within a district with respect to wages and salary earned for work in the district; and (2) residents living within the district; for the calendar year in which the district was established under this chapter as determined by the department. (b) If an individual is a resident of one (1) district and is employed within another district during a calendar year, the local income tax for the individual shall be attributed to the district in which the individual resides. As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.190.

Ind. Code § 36-7.5-4.5-10 "Local income tax increment revenue"

Sec. 10. (a) As used in this chapter, "local income tax increment revenue" means the remainder of: (1) the total amount of local income tax (IC 6-3.6) paid by: (A) employees employed in the district with respect to wages and salary earned for work in the territory comprising the district for a particular calendar year; and (B) residents living within the district; minus (2) the local income tax base period amount; as determined by the department. (b) If an individual is a resident of one (1) district and is employed within another district during a calendar year, the local income tax for the individual shall be attributed to the district in which the individual resides. As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.191.

Ind. Code § 36-7.5-4.5-11 "Property tax increment revenue"

Sec. 11. As used in this chapter, "property tax increment revenue" means the property taxes attributable to the assessed value of property located in a district in excess of the base assessed value. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-12 "Rail project"

Sec. 12. As used in this chapter, "rail project" refers to the following: (1) The mainline double tracking project. (2) The West Lake corridor project. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-13 "State income tax base period amount"

Sec. 13. (a) As used in this chapter, "state income tax base period amount" means the aggregate amount of state adjusted gross income taxes paid or remitted by or on behalf of: (1) employees employed within a district with respect to wages and salary earned for work in the district; and (2) residents living within the district; for the calendar year in which the district was established under this chapter, as determined by the department. (b) If an individual is a resident of one (1) district and is employed within another district during a calendar year, the state income tax for the individual shall be attributed to the district in which the individual resides. As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.192.

Ind. Code § 36-7.5-4.5-14 "State income tax increment revenue"

Sec. 14. (a) As used in this chapter, "state income tax increment revenue" means the remainder of: (1) the aggregate amount of state adjusted gross income taxes paid or remitted for a calendar year with respect to: (A) wages and salary earned for work in the territory comprising a district; and (B) income earned by residents living within the district; minus (2) the state income tax base period amount. (b) If an individual is a resident of one (1) district and is employed within another district during a calendar year, the state income tax for the individual shall be attributed to the district in which the individual resides. As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.193.

Ind. Code § 36-7.5-4.5-15 "Rail transit development corridor"; establishment; geographic area

Sec. 15. There is created a rail transit development corridor that consists of the geographic area that is within five-tenths (0.5) of a mile of the following rail lines that are a part of the Northern Indiana Commuter or South Bend Railway: (1) The Chicago to South Bend line. (2) The Hammond to Dyer line, which includes the West Lake corridor project once the preferred alignment has been determined. The development authority shall transmit to the department a map of the corridor. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-16 County that is not a member of development authority; financially participate in mainline double tracking project as associate member or cash member; rights and duties

Sec. 16. (a) A county that is not a member of the development authority, along with municipalities within the county, may financially participate in the mainline double tracking project and receive the same benefits a member would receive under this chapter. To financially participate, a county may become an associate member of the development authority or a cash participant. The county fiscal body must adopt a resolution to make the county a financial participant. The resolution must specify whether the county is choosing to be an associate member of the development authority or a cash participant. If the county chooses to be a cash participant, the resolution must specify whether the county will make a cash payment to the development authority for the county's share of the local part of the state and local cost of the project or will commit to making debt service payments annually for the life of the bonds used to finance the rail project. (b) The following apply to an associate member county: (1) The county is not a full member of the development authority. (2) The executive of the largest municipality in the county may appoint an individual to serve as a nonvoting member on the development authority board. (3) The county agrees to pay two million five hundred thousand dollars ($2,500,000) annually to the development authority to cover the following expenses: (A) The county's share of the cost of the rail project under the final financing plan agreed to by the development authority and the Indiana finance authority, estimated to be one million five hundred thousand dollars ($1,500,000) in annual debt service. (B) A debt service coverage ratio of one hundred thirty-three percent (133%). (C) A reserve of five hundred thousand dollars ($500,000) for administrative and issuance costs. (4) The county must pledge revenue for the membership payment from only property tax revenue or local income tax revenue, or both. (c) The following apply to a cash participant county: (1) The county is not an associate or a full member of the development authority. (2) The county is not entitled to appoint an individual to serve as a voting or nonvoting member on the development authority board. (3) The county shall make either a cash payment to the development authority for the county's share of the local portion of the state and local cost of the project or shall commit to making debt service payments annually for the life of the bonds. (4) If the cash payment option is chosen, within one hundred twenty (120) days after the rail project is approved for federal funding and the final financing plan is agreed to by the development authority and the Indiana finance authority, the county shall pay to the development authority or the Indiana finance authority the amount of the county's share of the rail project's cost, estimated to be eighteen million two hundred fifty thousand dollars ($18,250,000). (5) If the annual debt service payments for the life of the bonds option is chosen, before December 31 of each year, the county shall pay to the development authority or the Indiana finance authority the amount of the county's annual share of the project's cost under the final financing plan negotiated by the development authority and the Indiana finance authority, estimated to be two million dollars ($2,000,000) annually, to cover the following expenses: (A) An estimated one million five hundred thousand dollars ($1,500,000) in annual debt service. (B) A debt service coverage ratio of one hundred thirty-three percent (133%). The county must pledge revenue for the debt service payment from only property tax revenue or local income tax revenue, or both. (6) The property tax and local income tax incremental revenues from a district located in a political subdivision shall be distributed by the county auditor to the political subdivision's redevelopment commission. (7) Money in a fund of a redevelopment commission established by a county or municipality that is not otherwise committed for other purposes may be used to make payments required by this subsection. (d) The following apply to a county that is an associate member of the development authority or a cash participant county: (1) The Indiana finance authority shall conduct pre-financing verification of an associate member county or a cash participant county to pay for the rail project. (2) By becoming an associate member county or a cash participant county, the county agrees to a state intercept provision that will remain in force for the life of the state bonds used to fund the rail project construction. (3) The amount attributable to any debt service coverage reserve provided by a county shall be returned to the county at the end of the first ten (10) year period less the issuance and administrative costs incurred by the development authority and the Indiana finance authority. (4) The property tax increment revenue and local income tax increment revenue within a district shall be used by the development authority or redevelopment commission or both, in the case of a district located in an associate member county, only to fund development projects within that district. (5) Each year, the development authority or the Indiana finance authority shall reconcile the total actual costs of the rail project compared to the total costs of the rail project used to determine a county's payments under this section. To the extent the total actual costs of the rail project are less than the total rail project costs used to determine payment amounts, the development authority or the Indiana finance authority shall distribute twenty-five percent (25%) of the total amount to the county. To the extent the total actual rail project costs are greater than the total rail project costs used to determine payment amounts, the county shall pay to the development authority or the Indiana finance authority twenty-five percent (25%) of the total amount. (6) The state shall capture state sales tax revenue and state income tax revenue within the district for the duration of the district's existence. (e) The development authority shall report annually to the budget agency and to all the members and participating counties on the amount of the issuance costs and administrative costs incurred in the preceding year. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-16.5 Transfer of funds by a cash participant or associate member; double tracking project; pledge

Sec. 16.5. (a) This section applies to an associate member or cash participant that has committed to: (1) make a cash payment to the development authority; or (2) provide revenues to the development authority annually to make debt service payments annually for the life of any: (A) bonds or obligations issued; or (B) leases entered into; by the development authority; to finance the mainline double tracking project. (b) A transfer of funds made by a cash participant or an associate member under this section after December 31, 2018, is considered to be a payment for services provided to residents by the mainline double tracking project (as described in section 12 of this chapter) as those services are rendered. (c) A transfer of funds under this section does not constitute an indebtedness of: (1) an associate member; (2) a cash participant; or (3) the state; within the meaning or application of any constitutional or statutory provision or limitation. (d) A pledge by the 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 development authority; and (2) does not constitute an indebtedness of: (A) an associate member; (B) a cash participant; or (C) the state; within the meaning or application of any constitutional or statutory provision or limitation. (e) 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 government revenues, 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 government revenues have been pledged recognize that the regulation of government revenues 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 of Indiana has a legitimate interest in assisting the northwest Indiana regional development authority in financing rail projects, including the mainline double tracking project. As added by P.L.189-2018, SEC.180. Amended by P.L.10-2019, SEC.138.

Ind. Code § 36-7.5-4.5-17 Transit development district; establishment; conditions; geographic area

Sec. 17. (a) The development authority may establish a transit development district and may expand a district. Before establishing a transit development district, the development authority shall consult with the municipality in which the district will be located. To establish or expand a district the development authority must hold at least two (2) public hearings before establishing or expanding the district. (b) A district must satisfy the following conditions: (1) Only one (1) district may be established with regard to each train station or regular train stop. (2) The district must be within a county that is a member or associate member of the development authority or a financially participating county under this chapter. (3) The initial area of the district must not be more than five-tenths (0.5) of a square mile but the area may be expanded under subsection (d). (4) The train station or regular train stop, including accompanying parking lots (if applicable), must be located within the area of the district. (5) All parcels within the district must be contiguous. The area of a district may include a tax area established under IC 36-7-14 before January 1, 2017. (c) Notwithstanding subsection (b), a district may be established in a municipality that is located in a county that is a member of the development authority and has operated: (1) regularly scheduled commuter bus services to Chicago, Illinois, with prior financial assistance from the development authority; and (2) shuttle bus services that transport riders to: (A) a train station; or (B) a regular train stop; along the Chicago to South Bend line. (d) The development authority shall adopt a resolution to establish a district. The resolution must include: (1) the termination date of the district in accordance with subsection (g); and (2) findings by the development authority specifying that the conditions set forth in subsection (b) or (c) are satisfied. A district may not be reduced in territory once established or expanded to be more than one (1) square mile. A district's territory may be expanded subject to the other conditions set forth in subsection (b) or (c). A district may be expanded only one (1) time under this chapter. The development authority shall transmit a copy of any resolution establishing or expanding a district to the budget director, who shall distribute it to the members of the budget committee. (e) The date a district becomes established or an expansion of a district becomes effective may not be earlier than the date the budget committee reviews the establishment or expansion of the district. (f) The establishment of a district does not provide the development authority with any powers or preempt any authority of a political subdivision having jurisdiction in the district concerning the regulation of property or its uses, including planning and zoning provisions of the political subdivision. (g) A district terminates at the earlier of: (1) the end of the year in which all financing obligations entered into under this chapter for a project within the district are satisfied; or (2) June 30, 2047. As added by P.L.248-2017, SEC.10. Amended by P.L.210-2023, SEC.1.

Ind. Code § 36-7.5-4.5-18 Transit development district located in cash participant county; administration and use of incremental property tax revenue

Sec. 18. If a district is established, the following apply to the administration and use of incremental property tax revenue by the development authority, or a redevelopment commission in the case of a district located in a cash participant county, in the district: (1) The county auditor shall, on forms prescribed by the department of local government finance, adjust the base assessed value to neutralize any effect of a reassessment and the annual adjustment of the real property in the district in the same manner as provided in IC 36-7-14-39(h). The county auditor shall, in the manner prescribed by the department of local government finance, submit the forms required by this subdivision to the department of local government finance no later than July 15 of each year. (2) Proceeds of the property taxes approved by the voters in a referendum or local public question shall be allocated to and, when collected, paid into the funds of the taxing unit for which the referendum or local public question was conducted in the same manner as provided in IC 36-7-14-39(b)(3). (3) Incremental property tax revenue may be used only for one (1) or more of the following purposes for a district: (A) To finance the improvement, construction, reconstruction, renovation, and acquisition of real and personal property improvements within a district. (B) To pay the principal of and interest on any obligations that are incurred for the purpose of financing or refinancing development in the district, including local public improvements that are physically located in or physically connected to the district. (C) To establish, augment, or restore the debt service reserve for bonds payable solely or in part from incremental property tax revenue from the district. (D) To pay premiums on the redemption before maturity of bonds payable solely or in part from incremental property tax revenue from the district. (E) To make payments on leases payable from incremental property tax revenue from the district. (F) To reimburse a municipality in which a district is located for expenditures made by the municipality for local public improvements that are physically located in or physically connected to the district. (G) To reimburse a municipality for rentals paid by the municipality for a building or parking facility that is physically located in or physically connected to the district under any lease entered into under IC 36-1-10. (H) To pay expenses incurred by the development authority for local public improvements that are in the district or serving the district. As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.194; P.L.157-2026, SEC.263.

Ind. Code § 36-7.5-4.5-19 Steering committee; establishment; members; meetings; duties

Sec. 19. (a) There is established a steering committee to provide information and guidance to the development authority on development within the districts located in a member county. (b) The steering committee is comprised of one (1) individual appointed by the executive of each municipality located in a member county in which a district could be established. A member of the steering committee serves a one (1) year term that ends December 31 each year. Initial terms end December 31 of the first year of the member's appointment even though the term may be less than one (1) year. A member may serve additional terms. The appointing executive may replace a member at the executive's discretion. A member of the steering committee is a public servant subject to IC 35-44.1-1-4 concerning conflict of interest. (c) A chairperson of the steering committee shall be selected annually by the members. However, the chairperson may not be a resident of a municipality that has direct appointment to the development authority board. (d) The steering committee shall meet at least quarterly. The steering committee shall also meet upon the call of the chairperson. At each quarterly meeting: (1) the development authority shall present a progress report on development within each district to the steering committee; and (2) the steering committee shall provide the development authority with information and guidance on development within each district. IC 5-14-1.5 (the open door law) applies to meetings of the steering committee. The steering committee shall publish a notice of its meeting in accordance with IC 5-3-1-2(b). All records of the steering committee are public records subject to public inspection under IC 5-14-3. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-20 South shore improvement and development fund; administration; account for each transit development district; distributions to the fund; uses

Sec. 20. (a) If a district is established in a member county, the development authority shall create a south shore improvement and development fund. The development authority shall establish a separate account in the fund for each district. If more than one (1) municipality has territory within the district, a subaccount shall be established for each municipality. The fund shall be administered by the development authority. The development authority shall deposit in the appropriate district account in the fund all amounts received under this chapter from the following: (1) Distributions of local income tax increment revenue from the state. (2) Distributions of property tax increment revenue from counties. (b) If a district is established in a cash participant county, the redevelopment commission having territory in the district shall create a south shore improvement and development fund. The fund shall be administered by the redevelopment commission. The redevelopment commission shall deposit in the fund all amounts received under this chapter from the following: (1) Distributions of district local income tax increment revenue from the state. (2) Distributions of district property tax increment revenue from the county auditor. (c) The local income tax increment revenue and the local property tax increment revenue received by the development authority or redevelopment commission from each district shall be spent by the development authority or redevelopment commission on projects within the district from which the revenue was collected. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-21 Allocation and distribution of incremental property tax revenue in transit development district

Sec. 21. (a) If a district is established, the county auditor in each county in which the district is located shall distribute to the development authority, or the redevelopment commission that would otherwise receive the incremental property tax revenues under IC 36-7-14 in the case of a cash participant county, the lesser of: (1) the property tax increment revenue collected in the district in the amount specified by the development authority or redevelopment commission; or (2) all the property tax increment revenue collected in the district. In the case of a district that is established in a cash participant county, the county auditor shall distribute any excess district property tax revenue increment to the political subdivisions that would otherwise receive the revenue under IC 36-7-14 as if the increment were attributable to the base assessed value of the allocation area within the district. (b) If a district established in a member county includes a tax area established under IC 36-7-14 before January 1, 2017, the development authority and the redevelopment commission receiving property tax revenues under IC 36-7-14 shall use their best efforts to come to an agreement on how much property tax increment revenue will be allocated between the development authority and the redevelopment commission, recognizing that any existing obligations of the redevelopment commission would have priority over any later obligations of the development authority. The county auditor shall distribute to the development authority the amount of property tax increment revenue that is allocated to the development authority. (c) The development authority shall deposit all property tax increment revenue received in the appropriate district account in the south shore improvement and development fund. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-21.5 Limitation on renewal or extension of existing allocation area; required conditions

Sec. 21.5. Notwithstanding any other law, if the Indiana economic development corporation subsequently designates territory that is located in an existing allocation area under this chapter as an innovation development district under IC 36-7-32.5, the allocation area may not be renewed or extended under this chapter until the term of the innovation development district expires. As added by P.L.123-2024, SEC.22.

Ind. Code § 36-7.5-4.5-22 Duty to maximize amounts distributed to political subdivisions that would otherwise receive the revenue; public meeting

Sec. 22. The development authority or redevelopment commission, in the case of a district located in a cash participant county, shall use its best efforts to maximize the amount of local income tax increment revenue and property tax increment revenue that will be distributed to the political subdivisions that would otherwise receive the revenue, taking into consideration the revenue needed by the development authority or the redevelopment commission for debt service, debt service coverage ratio requirements, excess reserve requirements, and anticipated cash needs for the near term. If a district is established in a member county, the development authority or redevelopment commission shall hold a public hearing once every three (3) years during the existence of a district to determine whether the amount of the local income tax increment revenue and property tax increment revenue to be distributed to the development authority or redevelopment commission in subsequent years with respect to the district should be: (1) all the local income tax increment revenue or a percentage of the increment revenue; or (2) all the property tax increment revenue or a percentage of the increment revenue. The development authority or redevelopment commission shall adopt a resolution setting forth its determination. The resolution shall be transmitted to the budget director, the department, and each affected county auditor. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-23 Funding of development projects within a transit development district; uses

Sec. 23. (a) The development authority or redevelopment commission may undertake or provide funding for a development project that will be located within a district. (b) The development authority or redevelopment commission may use money in its south shore improvement and development fund to provide funding and pay costs for a development project, including in the form of financing for a development project. If financing is used for a development project the obligation must be satisfied before the expiration of this chapter. Costs may be incurred for one (1) or more of the following: (1) Planning and development of the improvement and all buildings, facilities, structures, and improvements related to the improvement. (2) Acquisition of a site and clearing and preparing the site for construction. (3) Equipment, facilities, structures, and improvements that are necessary or desirable to make the capital improvement suitable for use and operations. (4) Architectural, engineering, consultant, and attorney's fees. (5) Incidental expenses in connection with the issuance and sale of bonds. (6) Reserves for principal and interest. (7) Interest during construction. (8) Financial advisory fees. (9) Insurance during construction. (10) Bond insurance, debt service reserve insurance, letters of credit, or other credit enhancement. (11) In the case of refunding or refinancing, payment of the principal of, redemption premiums (if any) for, and interest on the bonds being refunded or refinanced. (c) To use money in its south shore improvement and development fund for a development project, the development authority or redevelopment commission must adopt a resolution under IC 36-7.5-3 setting forth the development authority's or redevelopment commission's approval of the development project. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-24 Development authority; duty to provide information concerning employers and retail merchants in transit development district to department of state revenue

Sec. 24. (a) If a district is established, the development authority shall provide to the department and to each redevelopment commission with a tax allocation area included within the district the following: (1) A certified copy of the resolution establishing the district. (2) Street names and the range of street numbers of each street in the district. (b) In addition, the development authority or redevelopment commission, in the case of a district located in a cash participant county, shall provide to the department, in an electronic format approved by the department, a complete list of the following: (1) Employers that pay income or wages to individuals working in the district. (2) Retail merchants with a responsibility to remit gross retail taxes in the district. The development authority and redevelopment commission shall update the list before July 1 of each year. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-25 Annual reporting requirement for employers operating in a transit development district

Sec. 25. (a) Employers operating in a district shall report annually, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the state income tax increment revenue and local income tax increment revenue. (b) Upon request of the department, employers in the district shall provide the department with: (1) the names and addresses of all persons employed by the employer in the district; (2) information concerning the wages earned by the persons for work performed in the district; and (3) any other information the department requires to administer this chapter. (c) If an employer fails to report the information required by this section, the department shall use the best information available for calculating the local income tax increment revenue. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-26 Annual reporting requirement for retail merchants operating in a transit development district; duty of development authority and political subdivisions to provide information

Sec. 26. (a) Retail merchants operating in the district shall report, in the manner and in the form prescribed by the department, information that the department determines necessary to calculate the gross retail tax base period amount or gross retail tax increment revenue. (b) At the request of the department, the development authority and any political subdivision in which all or a part of the district is located shall disclose to the department the names of the retail merchants described in subsection (a) and such other information that may assist in the determination of the gross retail tax base period amount or gross retail tax increment revenue. (c) At the request of the department, a political subdivision in which the district is located shall provide to the department information requested by the department concerning permits issued by the political subdivision to retail merchants operating within the corridor. (d) If the department is unable to determine the extent to which taxes remitted by a retail merchant are gross retail tax increment revenue for purposes of this chapter, the department shall use the best information available in calculating the gross retail tax increment revenue. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-27 Local income tax increment fund; deposit of local income tax increment revenue in an account within the fund for each transit development district

Sec. 27. (a) If a district is established, the treasurer of state shall establish a local income tax increment fund and an account for each district established under this chapter for deposit of local income tax increment revenue for that district. (b) The funds shall be administered by the treasurer of state. Money in a fund does not revert to the state general fund at the end of a state fiscal year. (c) The total amount of local income tax (IC 6-3.6) paid by: (1) employees employed in a district with respect to wages earned for work performed in the district; and (2) residents living in the district; shall be deposited in the district's account within the local income tax increment fund. If an individual is a resident of one (1) district and is employed within another district, only the local income tax for the district in which the individual resides shall be deposited into the local income tax increment fund. For each district, the budget agency shall determine and transfer to the appropriate county account under IC 6-3.6-9 an amount equal to the local income tax base period amount for the district. (d) The budget agency shall determine and transfer any amount of the local income tax increment revenue that will not be disbursed to the development authority or redevelopment commission to the appropriate county account under IC 6-3.6-9. As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.195.

Ind. Code § 36-7.5-4.5-28 Certification and distributions from transit development district account

Sec. 28. (a) Not later than November 30 of the year following the establishment of a district under this chapter, or November 30, 2024, whichever is later, the department shall determine the following for that district: (1) The state income tax base period amount. (2) The gross retail tax base period amount. (3) The local income tax base period amount. (b) Before December 1 of each year, beginning in the year two (2) years following the establishment of the district under this chapter, the department shall determine the following for each district for the preceding calendar year: (1) The state income tax increment revenue. (2) The gross retail tax increment revenue. (3) The local income tax increment revenue. (c) The department shall notify the budget agency and the development authority of each base period amount and annually each increment revenue amount. (d) Before December 15 of each calendar year, the department shall determine and certify to the Indiana finance authority and the development authority the following: (1) The state income tax increment revenue. (2) The gross retail tax increment revenue. (3) The local income tax increment revenue for each district. (4) The extent to which the sum of the state income tax increment revenue and gross retail tax increment revenue certified under this subsection for all districts exceeds the sum of the amounts previously appropriated by the general assembly to the development authority for rail projects (including any amounts appropriated for debt service payments made by the Indiana finance authority for a rail project). (e) Beginning in the following calendar year, the state comptroller shall distribute from a district's account within the local income tax increment fund to the development authority or redevelopment commission, in the case of a district located in a cash participant county, on or before March 1, the lesser of: (1) the amount of local income tax increment revenue specified by the development authority or redevelopment commission; or (2) the certified local income tax increment revenue amount for that district. (f) The development authority or redevelopment commission shall deposit the local income tax increment revenue it receives in the appropriate district account in the south shore improvement and development fund. (g) Notwithstanding subsection (a), if the department determines that an amount determined under section 7, 8, 9, 10, 13, or 14 of this chapter is in error, the department shall redetermine any erroneous amounts and notify the budget agency and development authority of any redetermination. If the department determines that the redetermination of an amount affects incremental tax amounts determined under subsection (b), the department shall recompute the incremental tax amounts and make any necessary adjustments to distributions or computations to reflect any redetermination. (h) A municipality that includes more than one (1) transit development district may share its increment revenue among the transit development districts upon approval of the legislative body of the municipality. As added by P.L.248-2017, SEC.10. Amended by P.L.236-2023, SEC.196; P.L.9-2024, SEC.558.

Ind. Code § 36-7.5-4.5-29 Expenses; liabilities; obligations

Sec. 29. All expenses incurred in carrying out this chapter are payable solely from revenue received under this chapter or from the proceeds of the financial instruments issued by the development authority payable from revenues received under this chapter. A liability or obligation may not be incurred by the development authority that is greater than the revenue to be received under this chapter. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-30 Chapter broadly construed

Sec. 30. (a) It is the intent of this chapter to identify all gross retail tax increment revenue collected within districts and state and local income tax increment revenue attributable to districts. This section shall be broadly construed by the department to achieve the purposes of this chapter. (b) The department shall adopt guidelines to govern its responsibilities under this chapter. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-31 Distribution of remaining money upon completion

Sec. 31. On the date that all financing obligations for a development project in a district established in a member county are no longer considered outstanding and all expenses incurred by the development authority in connection with the exercise of the development authority's duties and obligations set forth in this chapter have been paid, all money remaining in each district's account (or municipality's subaccount) in the south shore improvement and development fund shall be distributed to the redevelopment commission of the municipality in which each district is located, or to the municipality if a redevelopment commission does not exist. As added by P.L.248-2017, SEC.10.

Ind. Code § 36-7.5-4.5-32 Covenants

Sec. 32. The general assembly covenants that this chapter will not be repealed or amended in a manner that will adversely affect the owners of the financial instruments issued under this chapter by the development authority or redevelopment commission. As added by P.L.248-2017, SEC.10.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026

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