Bill Text: IN SB0026 | 2011 | Regular Session | Amended
Bill Title: Local government reorganization and merger.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2011-05-18 - Effective 07/01/2011 [SB0026 Detail]
Download: Indiana-2011-SB0026-Amended.html
Citations Affected: IC 36-1.5; IC 36-6.
Synopsis: Local government reorganization and merger. Requires the
department of local government finance to develop criteria for making
an adjustment to allow a political subdivision to retain a part of its levy
and budget that would otherwise be reduced because of savings from
a government reorganization or township merger. Provides that the
amount of such an adjustment may not exceed a specified percentage
of the savings or reduction realized in the first full year of operation
after the merger or reorganization. Provides that the percentage is 50%
in the first year of the adjustment and phases down to 10% in the fourth
year of the adjustment and thereafter. Provides that the fiscal body of
the reorganizing political subdivision or new township shall determine
and certify to the department of local government finance the amount
of the adjustment that the political subdivision or new township wishes
to accept. Specifies that in the case of a reorganization under the
government modernization statutes, the amount of any adjustment
accepted by a reorganized political subdivision must comply with the
reorganization agreement.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
January 25, 2011, amended, reported favorably _ Do Pass.
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A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
(1) savings;
(2) reduction in the reasonably foreseeable expenses that would otherwise
(b) Except as provided in subsection (d), the adjustment under this section must permit the political subdivision to continue to:
(1) include in the political subdivision's budget part of the
budgeted amounts that would otherwise be reduced by the
department of local government finance under section 4 of
this chapter on account of the realized savings or reduction in
expenses that occurs because of the reorganization; and
(2) impose part of the property tax levy part of that would
otherwise be reduced by the department of local government
finance under section 4 of this chapter on account of the
realized savings or reduction in expenses that occurs because of
the reorganization.
(c) The additional amount that a political subdivision may
continue to levy or include in the political subdivision's budget
because of the adjustment under this section may not exceed fifty
percent (50%) the result of :
(1) the savings or reduction realized in the first full year of
operation after the reorganization is implemented, as determined
by the department of local government finance; multiplied by
(2) a percentage determined as follows:
(A) Fifty percent (50%) in the first year of the adjustment.
(B) Fifty percent (50%) in the second year of the
adjustment.
(C) Thirty percent (30%) in the third year of the
adjustment.
(D) Ten percent (10%) in the fourth year of the adjustment
and thereafter.
The fiscal body of the political subdivision shall determine and
certify to the department of local government finance the amount
of the adjustment that the political subdivision wishes to accept
under this section.
(d) The amount of any adjustment accepted by a political
subdivision under this section must comply with the reorganization
agreement under which the political subdivision is reorganized
under this article.
(1) obtain from the department of local government finance approval under IC 6-1.1-18.5-7 of:
(A) a budget;
(B) an ad valorem property tax levy; and
(C) a property tax rate;
(2) fix the annual budget under IC 6-1.1-17;
(3) impose a property tax levy; and
(4) take any action necessary to ensure the collection of fees and other revenue;
for the new township government for the budget year following the year the officers take office.
(b) The department of local government finance shall establish criteria for making an adjustment to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under IC 6-1.1-17 and IC 6-1.1-18.5 if the new township realizes through a merger under this chapter a:
(1) savings; or
(2) reduction in the reasonably foreseeable expenses that would otherwise have been incurred by the political subdivision if the merger had not taken place.
(c) The adjustment under subsection (b) must permit the new township to continue to:
(1) include in the township's budget part of the budgeted amounts that would otherwise be reduced by the department of local government finance on account of the realized savings or reduction in expenses that occurs because of the merger; and
(2) impose part of a property tax levy that would otherwise be reduced by the department of local government finance on account of the realized savings or reduction in expenses that occurs because of the merger.
(d) The additional amount that a political subdivision may continue to levy or include in the political subdivision's budget because of the adjustment under subsection (b) may not exceed the result of:
(1) the savings or reduction in expenses realized in the first full year of operation after the merger is implemented, as determined by the department of local government finance; multiplied by
(2) a percentage determined as follows:
(A) Fifty percent (50%) in the first year of the adjustment.
(B) Fifty percent (50%) in the second year of the adjustment.
(C) Thirty percent (30%) in the third year of the adjustment.
(D) Ten percent (10%) in the fourth year of the adjustment and thereafter.
The fiscal body of the new township shall determine and certify to
the department of local government finance the amount of the
adjustment that the new township wishes to accept under this
section.
