Bill Text: IN SB0337 | 2010 | Regular Session | Amended
Bill Title: Local government merger and cooperation.
Spectrum: Slight Partisan Bill (Republican 4-2)
Status: (Engrossed - Dead) 2010-02-09 - First reading: referred to Committee on Government and Regulatory Reform [SB0337 Detail]
Download: Indiana-2010-SB0337-Amended.html
Citations Affected: IC 36-1.5; IC 36-6.
Synopsis: Local government merger and cooperation. Requires the
department of local government finance to develop criteria for making
a one-time adjustment to allow a political subdivision to retain a
portion of its levy and budget that would otherwise be reduced because
of savings from a government reorganization or merger. Specifies that
such an adjustment may not exceed 50% of the savings or reduction
realized in the first full year of operation after the merger or
reorganization. Specifies that the adjustment applies in the first year in
which the adjustment is made and to all subsequent years. Provides that
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 one time adjustment that the political
subdivision or new township wishes to accept. Provides that in the case
of a reorganization under the government modernization statutes, the
amount of any one time adjustment accepted by a reorganized political
subdivision must comply with the reorganization agreement.
Effective: July 1, 2010.
January 12, 2010, read first time and referred to Committee on Tax and Fiscal Policy.
January 19, 2010, amended, reported favorably _ Do Pass.
January 26, 2010, read second time, amended, ordered engrossed.
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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 one-time adjustment must permit the political subdivision to continue to:
(1) include in its budget part of the budgeted amounts that
would otherwise be reduced by the department on account of
the realized savings or reduction in expenses; and
(2) impose part of the property tax levy part of that would
otherwise be reduced by the department on account of the
realized savings or reduction in expenses.
(c) The one-time adjustment under this section may not exceed fifty
percent (50%) of 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. The fiscal body of the
political subdivision shall determine and certify to the department
of local government finance the amount of the one (1) time
adjustment that the political subdivision wishes to accept under
this section. The one-time adjustment applies in the first year in
which the adjustment is made and to all subsequent years.
(d) The amount of any one (1) time adjustment accepted by a
political subdivision under this section must comply with the
reorganization agreement that reorganizes the political subdivision
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 a one-time adjustment to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under 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 one-time adjustment under subsection (b) must permit the township to continue to:
(1) include in its budget part of the budgeted amounts that would otherwise be reduced by the department on account of the realized savings or reduction in expenses; and
(2) impose part of a property tax levy that would otherwise be reduced by the department on account of the realized savings or reduction in expenses.
The one-time adjustment may not exceed fifty percent (50%) of 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. The fiscal body of the new township shall determine and certify to the department of local government finance the amount of the one (1) time adjustment that the new township wishes to accept under this section. The one-time adjustment applies in the first year in which the adjustment is made and to all subsequent years.