Indiana Code - Taxation - Title 6, Section 6-3.5-7-13.1-a

Version a

Economic development income tax funds; deposits; uses

Note: This version of section amended by P.L.118-2005, SEC.2.
See also following version of this section amended by P.L.214-2005,
SEC.21.

Sec. 13.1. (a) The fiscal officer of each county, city, or town for
a county in which the county economic development tax is imposed
shall establish an economic development income tax fund. Except as
provided in sections 23, 25, 26, and 27 of this chapter, the revenue
received by a county, city, or town under this chapter shall be
deposited in the unit's economic development income tax fund.
(b) Except as provided in sections 15, 23, 25, 26, and 27 of this
chapter, revenues from the county economic development income tax
may be used as follows:
(1) By a county, city, or town for economic development
projects, for paying, notwithstanding any other law, under a
written agreement all or a part of the interest owed by a private
developer or user on a loan extended by a financial institution
or other lender to the developer or user if the proceeds of the
loan are or are to be used to finance an economic development
project, for the retirement of bonds under section 14 of this
chapter for economic development projects, for leases under
section 21 of this chapter, or for leases or bonds entered into or
issued prior to the date the economic development income tax
was imposed if the purpose of the lease or bonds would have
qualified as a purpose under this chapter at the time the lease
was entered into or the bonds were issued.
(2) By a county, city, or town for:
(A) the construction or acquisition of, or remedial action
with respect to, a capital project for which the unit is
empowered to issue general obligation bonds or establish a
fund under any statute listed in IC 6-1.1-18.5-9.8;
(B) the retirement of bonds issued under any provision of
Indiana law for a capital project;
(C) the payment of lease rentals under any statute for a
capital project;
(D) contract payments to a nonprofit corporation whose
primary corporate purpose is to assist government in
planning and implementing economic development projects;
(E) operating expenses of a governmental entity that plans or
implements economic development projects;
(F) to the extent not otherwise allowed under this chapter,
funding substance removal or remedial action in a
designated unit; or

(G) funding of a revolving fund established under
IC 5-1-14-14.
(3) By a county, city, or town for any lawful purpose for which
money in any of its other funds may be used.
(c) As used in this section, an economic development project is
any project that:
(1) the county, city, or town determines will:
(A) promote significant opportunities for the gainful
employment of its citizens;
(B) attract a major new business enterprise to the unit; or
(C) retain or expand a significant business enterprise within
the unit; and
(2) involves an expenditure for:
(A) the acquisition of land;
(B) interests in land;
(C) site improvements;
(D) infrastructure improvements;
(E) buildings;
(F) structures;
(G) rehabilitation, renovation, and enlargement of buildings
and structures;
(H) machinery;
(I) equipment;
(J) furnishings;
(K) facilities;
(L) administrative expenses associated with such a project,
including contract payments authorized under subsection
(b)(2)(D);
(M) operating expenses authorized under subsection
(b)(2)(E); or
(N) to the extent not otherwise allowed under this chapter,
substance removal or remedial action in a designated unit;
or any combination of these.
(d) If there are bonds outstanding that have been issued under
section 14 of this chapter or leases in effect under section 21 of this
chapter, a county, city, or town may not expend money from its
economic development income tax fund for a purpose authorized
under subsection (b)(3) in a manner that would adversely affect
owners of the outstanding bonds or payment of any lease rentals due.
As added by P.L.1-1990, SEC.81. Amended by P.L.17-1991, SEC.9;
P.L.44-1994, SEC.8; P.L.27-1995, SEC.6; P.L.124-1999, SEC.2;
P.L.192-2002(ss), SEC.123; P.L.224-2003, SEC.256; P.L.118-2005,
SEC.2.

Last modified: May 28, 2006