1. (a) The following apply to the funding of a public transportation project:

   1. (1) For the first year of operations, an amount must be raised from sources other than taxes and fares that is equal to at least ten percent (10%) of the revenue that the budget agency certifies that the county will receive in that year from a local income tax imposed to fund the public transportation project.

   2. (2) For the second year of operations and each year thereafter, at least ten percent (10%) of the annual operating expenses of the public transportation project must be paid from sources other than taxes and fares. For purposes of this subdivision, operating expenses include only those expenses incurred in the operation of fixed route services that are established or expanded as a result of a public transportation project authorized and funded under this article.

      The budget agency shall assist the fiscal body of an eligible county in determining the amount of money that must be raised under subdivision (1).

2. (b) A county fiscal body or another entity authorized to carry out a public transportation project under IC 8-25-4 shall raise the revenue required by subsection (a) for a particular calendar year before the end of the third quarter of the preceding calendar year. Money raised under this section must be deposited in the county public transportation fund established under section 7 of this chapter.

3. (c) If a county fiscal body or other entity fails to raise the revenue required by subsection (a) before the deadline specified in subsection (b), the county in which the public transportation project is located is responsible for paying the difference between:

   1. (1) the amount that subsection (a) requires to be raised from sources other than taxes and fares; minus
   2. (2) the amount actually raised from sources other than taxes and fares.

As added by P.L.153-2014, SEC.17. Amended by P.L.197-2016, SEC.94.