Indiana Code
Chapter 13. Wagering Taxes
4-33-13-5.3. Supplemental Payments to Qualified Cities

Sec. 5.3. (a) This section applies to each of the first four (4) full state fiscal years beginning after a licensed owner begins gaming operations under IC 4-33-6-4.5.
(b) As used in this section, "qualified city" refers to East Chicago, Hammond, or Michigan City.
(c) The auditor of state shall determine the total amount of money paid by the auditor of state under section 5(a)(2) of this chapter to Gary, East Chicago, Hammond, and Michigan City during the state fiscal year ending on June 30, 2019. The amount determined under this subsection for each city is the city's base year revenue. The auditor of state shall certify the base year revenue determined under this subsection to each city.
(d) Subject to subsection (g), a qualified city is entitled to a supplemental payment under this section if both of the following occur in a particular state fiscal year:
(1) The total amount payable to Gary under section 5(a)(2) of this chapter in the state fiscal year is greater than the base year revenue determined for Gary under subsection (c).
(2) The amount payable to the qualified city under section 5(a)(2) of this chapter in the state fiscal year is less than the base year revenue determined for the qualified city under subsection (c).
(e) Subject to subsection (g), the auditor of state shall deduct the lesser of the following from the amount otherwise payable to Gary to make a supplemental payment to a qualified city entitled to a payment under subsection (d):
(1) The difference between the base year revenue determined for the qualified city under subsection (c) and the amount payable to the qualified city under section 5(a)(2) of this chapter.
(2) The difference between the amount payable to Gary under section 5(a)(2) of this chapter and the base year revenue determined for Gary under subsection (c).
(f) Subject to subsection (g), the auditor of state shall supplement the amount payable to the qualified city under section 5(a)(2) of this chapter with a payment equal to the amount deducted under subsection (e) for the qualified city.
(g) The auditor of state may not deduct from the amounts payable under section 5(a)(2) of this chapter to Gary in a particular state fiscal year an amount greater than the difference between the amount payable to Gary under section 5(a)(2) of this chapter and the base year revenue determined for Gary under subsection (c). If the total amount of the supplemental payments determined for qualified cities exceeds the amount that may be deducted under this section, the amount paid to each qualified city entitled to a supplemental payment must be determined under STEP FOUR the following formula:
STEP ONE: Determine the difference between the qualified city's base year revenue and the amount payable to the qualified city under section 5(a)(2) of this chapter for the particular state fiscal year.
STEP TWO: Determine the sum of the STEP ONE results for all qualified cities entitled to a supplemental payment in the particular state fiscal year.
STEP THREE: Determine for each qualified city entitled to a supplemental payment in the particular state fiscal year the quotient of:
(A) the STEP ONE result for the qualified city; divided by
(B) the STEP TWO result.
STEP FOUR: Determine for each qualified city entitled to a supplemental payment in the particular state fiscal year the product of:
(A) the STEP THREE quotient; multiplied by
(B) the maximum amount that may be deducted from the amounts payable under section 5(a)(2) of this chapter for Gary.
As added by P.L.293-2019, SEC.32.