HOUSE BILL No. 1220
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-2.5-14; IC 36-7.5-1-18; IC 36-7.5-4-1.
Synopsis: Transportation tax area. Establishes a transportation tax
area for the territory within Lake County and Porter County. Provides
for an allocation to the transportation tax area from the state gross retail
and use taxes collected from the counties. Requires the development
board of the northwest Indiana regional development authority to use
the allocation for projects related to the West Lake line. Makes an
Effective: July 1, 2008.
January 14, 2008, read first time and referred to Committee on Ways and Means.
Second Regular Session 115th General Assembly (2008)
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HOUSE BILL No. 1220
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-2.5-14; (08)IN1220.1.1. -->
SECTION 1. IC 6-2.5-14 IS ADDED TO THE INDIANA CODE
AS A NEW
CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]:
Chapter 14. Transportation Tax Area
Sec. 1. As used in this chapter, "bonds" means bonds, notes, or
other evidences of indebtedness issued by the development
authority for the development of the West Lake line.
Sec. 2. As used in this chapter, "commuter transportation
district" refers to a commuter transportation district that:
(1) is established under IC 8-5-15; and
(2) has among its purposes the maintenance, operation, and
improvement of passenger service over the Chicago, South
Shore, and South Bend Railroad and any extension of that
Sec. 3. As used in this chapter, "covered taxes" means the state
gross retail and use taxes imposed under this article.
Sec. 4. As used in this chapter, "development authority" refers
to the northwest Indiana regional development authority
established by IC 36-7.5-2-1.
Sec. 5. As used in this chapter, "development board" refers to
the governing body appointed under IC 36-7.5-2-3 for a
Sec. 6. As used in this chapter, "eligible county" refers to the
(1) A county having a population of more than four hundred
thousand (400,000) but less than seven hundred thousand
(2) A county having a population of more than one hundred
forty-five thousand (145,000) but less than one hundred
forty-eight thousand (148,000).
Sec. 7. As used in this chapter, "West Lake line" means a
commuter transportation district project that extends passenger
rail service by the Chicago, South Shore, and South Bend Railroad
along a route to Lowell and Valparaiso.
Sec. 8. (a) The combined territory of the eligible counties is
designated as a transportation tax area that is entitled to a monthly
allocation of covered taxes in the manner and amount provided by
(b) Before September 1, 2008, the development board shall
submit to the department by certified mail a complete list of the
(1) Employers in the transportation tax area.
(2) Street names and the range of street numbers of each
street in the transportation tax area.
The development board shall update the list before July 1 of each
year that begins after December 31, 2008.
(c) The department may adopt rules under IC 4-22-2 and
guidelines to govern the allocation of covered taxes to a
transportation tax area.
Sec. 9. A transportation tax area designated under section 8 of
this chapter expires when the bonds, together with the interest on
the bonds, and interest on unpaid installments of interest, and all
costs and expenses in connection with an action or a proceeding by
or on behalf of the holders, are fully met, paid, and discharged.
Sec. 10. The department shall before the tenth day of each
month determine the total amount of covered taxes deposited in the
state general fund under IC 6-2.5-10-1(b)(2) in the previous month
(1) remitted, in the case of the state gross retail tax deposits,
by a retail merchant for retail transactions occurring in an
eligible county; or
(2) paid, in the case of the use tax deposits, by a person who
resides or is domiciled in an eligible county.
Sec. 11. The amount of the monthly allocation of covered taxes
that a transportation tax area is entitled to receive is equal to:
(1) the amount determined under section 10 of this chapter;
(2) twelve and forty-six hundredths percent (12.46%).
Sec. 12. (a) All allocations of covered taxes under this chapter
for a transportation tax area shall be made by warrants issued by
the auditor of state to the treasurer of state ordering those
payments to the development board on or before the twentieth day
of each month.
(b) There is annually appropriated from the state general fund
an amount sufficient to make the allocations required by this
Sec. 13. The development board shall deposit all allocations
received under this chapter in the development authority fund
established by IC 36-7.5-4-1. Money deposited in the development
authority fund under this section may be used by the development
authority only for the purposes specified in IC 36-7.5-4-1(h).
Sec. 14. The development board shall repay to the state general
fund any amount that is paid to the development board under
section 12 of this chapter and used for a purpose that is not
described in IC 36-7.5-4-1(h).
Sec. 15. This chapter expires on the earlier of:
(1) December 31 of the calendar year in which the
transportation tax area expires under section 9 of this
(2) December 31, 2043.
SOURCE: IC 36-7.5-1-18; (08)IN1220.1.2. -->
SECTION 2. IC 36-7.5-1-18 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2008]: Sec. 18. "West Lake line" means a commuter
transportation district project that extends passenger rail service
by the Chicago, South Shore, and South Bend Railroad along a
route to Lowell and Valparaiso.
SOURCE: IC 36-7.5-4-1; (08)IN1220.1.3. -->
SECTION 3. IC 36-7.5-4-1, AS ADDED BY P.L.214-2005,
SECTION 73, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 1. (a) The development board shall establish and
administer a development authority fund.
(b) The development authority fund consists of the following:
(1) Riverboat admissions tax revenue, riverboat wagering tax
revenue, or riverboat incentive payments received by a city or
county described in IC 36-7.5-2-3(b) and transferred by the
county or city to the fund.
(2) County economic development income tax revenue received
under IC 6-3.5-7 by a county or city and transferred by the county
or city to the fund.
(3) Amounts distributed under IC 8-15-2-14.7.
(4) Food and beverage tax revenue deposited in the fund under
(5) Funds received from the federal government.
(6) Appropriations to the fund by the general assembly.
(7) Other local revenue appropriated to the fund by a political
(8) Gifts, donations, and grants to the fund.
(9) State gross retail and use taxes deposited in the fund under
On the date the development authority issues bonds for any
purpose under this article, which are secured in whole or in part by
development authority shall establish a
development authority fund.
The development board shall establish and administer
two (2) accounts
within the development authority fund. The accounts shall be the a
and the a
lease rental account,
After the accounts are
established, and such other accounts in the fund as are necessary or
appropriate to carry out the powers and duties of the development
authority. Except as otherwise provided by law or agreement with
holders of any obligations of the development authority,
transferred to the development authority fund under
(b)(1), (b)(2), and (b)(4) shall be deposited in the lease
rental account and used only for the payment of or to secure the
payment of obligations of an eligible political subdivision under a lease
entered into by an eligible political subdivision and the development
authority under this chapter. However, any money deposited in the
lease rental account and not used for the purposes of this subsection
shall be returned by the treasurer of the development authority to the
respective counties and cities that contributed the money to the
Notwithstanding subsection (c),
If the amount of
transferred to the development authority fund under
(b)(1), (b)(2), and (b)(4) for deposit in the lease rental
account in any one (1) calendar year is greater than an amount equal to:
(1) one and twenty-five hundredths (1.25); multiplied by
(2) the total of the highest annual debt service on any bonds then
outstanding to their final maturity date, which have been issued
under this article and are not secured by a lease, plus the highest
annual lease payments on any leases to their final maturity, which
are then in effect under this article;
all or a portion of the excess may instead be deposited in the
(e) Except as otherwise provided by law or agreement with the
holders of obligations of the development authority,
all other money
and revenues of the development authority may be deposited in the
general account or the lease rental account at the discretion of the
development board. Money on deposit in the lease rental account may
be used only to make rental payments on leases entered into by the
development authority under this article. Money on deposit in the
general account may be used for any purpose authorized by this article.
(f) The development authority fund shall be administered by the
(g) Money in the development authority fund shall be used by the
development authority to carry out this article and does not revert to
any other fund.
(h) The development authority shall separately account for state
gross retail and use tax revenue accruing to the development
authority under IC 6-2.5-14-13. The money may be used only for
the following purposes:
(1) Providing funding to assist a commuter transportation
district in an eligible county in the construction,
reconstruction, renovation, purchase, lease, acquisition, and
equipping of the West Lake line.
(2) Using the development authority's funds to match federal
grants or make loans, loan guarantees, or grants to facilitate
the construction, reconstruction, renovation, purchase, lease,
acquisition, and equipping of the West Lake line.
(3) Exercising any other power or duty of the development
authority to facilitate the construction, reconstruction,
renovation, purchase, lease, acquisition, and equipping of the
West Lake line, including the issuance of bonds, the
establishment of reserves, the acquisition of property, and the
entering into of leases and other agreements.
(i) Any state gross retail and use taxes deposited into the fund
under IC 6-2.5-14-13 that remain in the fund when a
transportation tax area established by IC 6-2.5-14-8 expires must
be transferred to the treasurer of state for deposit in the state
SOURCE: ; (08)IN1220.1.4. -->
SECTION 4. [EFFECTIVE JULY 1, 2008] IC 6-2.5-14, as added
by this act, applies to retail transactions occurring after June 30,