Bonds; debt service requirements; sale; covenant protecting
bondholders
Sec. 14. (a) The fiscal body of a county, city, or town may issue
bonds payable from the county economic development income tax.
The bonds must be for economic development projects (as defined
in section 13.1 of this chapter).
(b) The fiscal body of a county, city, or town may issue bonds
payable from the county economic development income tax for any
capital project for which the fiscal body is authorized to issue general
obligation bonds. The bonds issued under this section may be
payable from the county economic development income tax if the
county option income tax or the county adjusted gross income tax is
also in effect in the county at the time the bonds are issued.
(c) If there are bonds outstanding that have been issued under this
section, or leases in effect under section 21 of this chapter, the body
that imposed the county economic development income tax may not
reduce the county economic development income tax rate below a
rate that would produce one and twenty-five hundredths (1.25) times
the total of the highest annual debt service on the bonds to their final
maturity, plus the highest annual lease payments, unless:
(1) the body that imposed the economic development income
tax; or
(2) any city, town, or county;
pledges all or a portion of its distributive share for the life of the
bonds or the term of the lease, in an amount that is sufficient, when
combined with the amount pledged by the city, town, or county that
issued the bonds, to produce one and twenty-five hundredths (1.25)
times the total of the highest annual debt service plus the highest
annual lease payments.
(d) For purposes of subsection (c), the determination of a tax rate
sufficient to produce one and twenty-five hundredths (1.25) times the
total of the highest annual debt service plus the highest annual lease
payments shall be based on an average of the immediately preceding
three (3) years tax collections, if the tax has been imposed for the last
preceding three (3) years. If the tax has not been imposed for the last
preceding three (3) years, the body that imposed the tax may not
reduce the rate below a rate that would produce one and twenty-five
hundredths (1.25) times the total of the highest annual debt service,
plus the highest annual lease payments, based upon a study by a
qualified public accountant or financial advisor.
(e) IC 6-1.1-20 does not apply to the issuance of bonds under this
section.
(f) Bonds issued under this section may be sold at a public sale in
accordance with IC 5-1-11 or may be sold at a negotiated sale.
(g) After a sale of bonds under this section, the county auditor
shall prepare a debt service schedule for the bonds.
(h) The general assembly covenants that it will not repeal or
amend this chapter in a manner that would adversely affect owners
of outstanding bonds issued, or payment of any lease rentals due,
under this section.
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.2-1989,
SEC.19; P.L.1-1990, SEC.82; P.L.19-1994, SEC.11.
Last modified: May 28, 2006