Sec. 7. (a) The county treasurer shall establish an innkeeper’s tax fund. The treasurer shall deposit in the fund all money the treasurer receives under section 6 of this chapter.

     (b) Money in the fund shall be expended in the following order:

(1) To service:

(A) bonds issued by the county under IC 36-2-6-18 through IC 36-2-6-20; or

(B) other debt incurred by the commission or the not-for-profit corporation with which the commission contracts to transfer funds;

if the bonds or other debt are issued for the purposes set forth in section 3(a)(6) of this chapter and are payable in whole or in part from money derived from the innkeeper’s tax.

(2) To fund or maintain a debt service reserve for bonds or debt described in subdivision (1).

(3) To pay the commission’s operating expenses and its other expenses in carrying out the purposes set forth in section 3(a)(6) of this chapter.

     (c) The county auditor shall make a semiannual distribution, at the time property tax revenue is distributed, to the paying agent for any bonds described in subsection (b)(1). Each semiannual distribution must be equal to one-half (1/2) of the annual principal and interest obligations on the bonds. Money received by a paying agent under this subsection shall be deposited in a special fund to be used to service the bonds.

As added by Acts 1977, P.L.92, SEC.3. Amended by P.L.75-1988, SEC.2; P.L.3-1989, SEC.43.