Note: This version of section effective 1-1-2028. See also preceding version of this section, effective until 1-1-2028.

1. (b) This subsection applies only to Lake County. The county or a city described in IC 36-7.5-2-3 (b) may use general purpose revenue that is allocated each year for economic development purposes under IC 6-3.6-6 for making transfers required by IC 36-7.5-4-2 or to provide rail project funding under IC 36-7.5-4.5 . The general purpose revenue allocated for economic development and used to make the transfers required by IC 36-7.5-4-2 or to provide rail project funding shall be paid by the treasurer of state to the treasurer of the northwest Indiana regional development authority before certified distributions are made to the county or any cities or towns in the county.
2. (c) This subsection applies only to Porter County. From the general purpose revenue received each year from the rate imposed under IC 6-3.6-6 , the first three million five hundred thousand dollars ($3,500,000) shall be used by the county to make transfers as required under IC 36-7.5-4-2 to the northwest Indiana regional development authority before any certified distributions are made to the county unit or any other taxing unit in the county. The adopting body for Porter County may not reduce the proportional allocation of the general purpose revenue allocated to Porter County if the reduction would result in an amount less than the amount necessary for Porter County to fulfill its obligation to the northwest Indiana regional development authority to pay to support northwest Indiana rail projects (as defined in IC 5-1.3-2-14 ) and projects described in IC 36-7.5-4-2.5 .
3. (d) A transfer made on behalf of a city, town, or county under this section after December 31, 2018, is to be considered a payment for services provided to residents by a rail project as those services are rendered.

4. (e) A pledge by the northwest Indiana regional 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. (1) constitutes the obligations of the northwest Indiana regional development authority; and

   2. (2) does not constitute an indebtedness of:

      1. (A) a county or municipality described in this section; or

      2. (B) the state;

         within the meaning or application of any constitutional or statutory provision or limitation.

5. (f) 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. (1) The statutes governing local income taxes, 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. (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. (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. (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 ).
6. (g) All proceedings had and actions described in this section 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 March 15, 2018.

Sec. 6. (a) This section applies to Lake County, LaPorte County, Porter County, and any municipality in those counties that is a member of the northwest Indiana regional development authority ( IC 36-7.5 ) for purposes of categorizations, allocations, and distributions of general purpose revenue that is allocated each year for economic development purposes under IC 6-3.6-6 .

As added by P.L.197-2016, SEC.72. Amended by P.L.248-2017, SEC.1; P.L.189-2018, SEC.60; P.L.165-2021, SEC.97; P.L.9-2024, SEC.194; P.L.68-2025, SEC.183.