Bill Text: IN SB0459 | 2013 | Regular Session | Enrolled
Bill Title: Local government reorganization.
Sponsorship: Partisan Bill (Republican 1)
Status: (Passed) 2013-05-13 - Public Law 255 [SB0459 Detail]
Download: Indiana-2013-SB0459-Enrolled.html
Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is
being amended, the text of the existing provision will appear in this style type, additions
will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that
adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles
conflicts between statutes enacted by the 2012 Regular Session of the General Assembly.
AN ACT to amend the Indiana Code concerning local government.
Be it enacted by the General Assembly of the State of Indiana:
(b) For purposes of computing the ad valorem property tax levy limit imposed on a township or a fire protection district under section 3 of this chapter, the township's or the fire protection district's ad valorem property tax levy for a particular calendar year does not include that part of the levy imposed under IC 36-8-14.
(c) In the case of a reorganization under IC 36-1.5 that includes a township and another political subdivision:
(1) the ad valorem property tax levy limits imposed by section 3 of this chapter do not apply to any of the ad valorem property taxes imposed by the reorganized political subdivision under IC 36-8-14; and
(2) for purposes of computing the ad valorem property tax levy limit imposed on the reorganized political subdivision under section 3 of this chapter, the reorganized political subdivision's ad valorem property tax levy for a particular
calendar year does not include any part of the levy imposed
under IC 36-8-14;
notwithstanding section 9.8 of this chapter.
SECTION 2. IC 36-1-7-16, AS ADDED BY P.L.58-2011,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 16. (a) This section applies to a political
subdivision if:
(1) the political subdivision enters into an agreement with one (1)
or more other political subdivisions under this chapter to transfer,
combine, or share powers, duties, functions, or resources; and
(2) the political subdivision realizes through the transfer,
combination, or sharing of powers, duties, functions, or resources
a:
(A) savings; or
(B) reduction in the reasonably foreseeable expenses that
would otherwise have been incurred by the political
subdivision if the transfer, combination, or sharing of powers,
duties, functions, or resources had not taken place. and
(3) the department of local government finance will otherwise
decrease the maximum permissible property tax levies, maximum
permissible property tax rates, or budgets of the political
subdivision to:
(A) eliminate double taxation by different political
subdivisions for services; or
(B) eliminate any excess by which the amount of property
taxes imposed by the political subdivision exceeds the amount
necessary to pay for services.
(b) The political subdivision shall specify in the agreement
described in subsection (a) the amount (if any) of the decrease that
the department of local government finance shall establish criteria for
making an adjustment make 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 of a the political subdivision described
in subsection (a). to:
(1) eliminate double taxation by different political
subdivisions for services; or
(2) eliminate any excess by which the amount of property
taxes imposed by the political subdivision exceeds the amount
necessary to pay for services.
(c) The adjustment under subsection (b) must permit the political
subdivision to continue to:
(c) The fiscal body of the political subdivision shall determine and certify to the department of local government finance the amount of the adjustment
SECTION 3. IC 36-1-8-17, AS ADDED BY P.L.58-2011, SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 17. (a) This section applies to a political subdivision if:
(1) the political subdivision combines or reorganizes a department, agency, or function of the political subdivision; and
(2) the political subdivision realizes through the combination or reorganization a:
(A) savings; or
(B) reduction in the reasonably foreseeable expenses that would otherwise have been incurred by the political subdivision if the combination or reorganization had not taken
place. and
(3) the department of local government finance will otherwise
decrease the maximum permissible property tax levies, maximum
permissible property tax rates, or budgets of the political
subdivision to:
(A) eliminate double taxation; or
(B) eliminate any excess by which the amount of property
taxes imposed by the political subdivision exceeds the amount
necessary to pay for services.
(b) The fiscal body of a political subdivision shall specify by
resolution the amount (if any) of the decrease that the department
of local government finance shall establish criteria for making an
adjustment make 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 of a political subdivision described in
subsection (a) to:
(1) eliminate double taxation by different political
subdivisions for services; or
(2) eliminate any excess by which the amount of property
taxes imposed by the political subdivision exceeds the amount
necessary to pay for services.
(c) The adjustment under subsection (b) 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 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 of local government finance on
account of the realized savings or reduction in expenses.
(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 combination or 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.
(c) The fiscal body of the political subdivision shall determine and certify to the department of local government finance the amount of the adjustment
SECTION 4. IC 36-1.5-1-4, AS ADDED BY P.L.186-2006, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. A political subdivision:
(1) may exercise the powers granted under this article to reorganize or enter into cooperative agreements without complying with the provisions of any other law, statute, or rule; and
(2) may, after the reorganization, exercise any power described in IC 36-1.5-4-38.
SECTION 5. IC 36-1.5-1-6, AS ADDED BY P.L.186-2006, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. Except as otherwise specifically provided by law, to the extent the provisions of this article are inconsistent with the provisions of any other general, special, or local law, the provisions of this article are controlling, and compliance with this article shall be treated as compliance with the conflicting law. However, after the reorganization, the reorganized political subdivision may exercise any power described in IC 36-1.5-4-38.
SECTION 6. IC 36-1.5-3-4, AS ADDED BY P.L.186-2006, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) Subject to this chapter, the department of local government finance shall adjust the maximum permissible property tax levies, maximum permissible property tax rates, and budgets of political subdivisions that enter into a reorganization under this article as
(b) Upon the termination of a reorganization under this chapter, the department of local government finance shall adjust the maximum permissible property tax levies, maximum permissible property tax rates, and budgets of political subdivisions terminating the reorganization to do the following:
to pay for services or goods provided under this article.
(3) (1) Restore taxing powers of a political subdivision after the
termination of a reorganization under this article that are
necessary to fund governmental services to the individuals and
entities served by the political subdivision.
(4) (2) Restore taxing powers of a political subdivision after the
withdrawal of a party from a reorganization under this article that
are necessary to fund governmental services to the individuals
and entities served by the political subdivision.
SECTION 7. IC 36-1.5-3-5, AS AMENDED BY P.L.58-2011,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 5. (a) 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 a political
subdivision (or a successor political subdivision) realizes through a
reorganization under this article, including a reorganization through a
cooperative agreement under IC 36-1.5-5, a: (1) savings; or (2)
reduction in the reasonably foreseeable expenses that would otherwise
have been incurred by the political subdivision if the reorganization
had not taken place. The plan of reorganization must specify the
amount (if any) of the decrease that the department of local
government finance shall make 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 of the reorganized
political subdivision to:
(1) eliminate double taxation for services or goods provided
by the reorganized political subdivision; or
(2) eliminate any excess by which the amount of property
taxes imposed by the reorganized political subdivision exceeds
the amount necessary to pay for services or goods provided
under this article.
(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 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 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.
(b) The fiscal body of the reorganized 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 (if any) under this section. subsection (a).
(d) (c) The amount of any the adjustment accepted by a political
subdivision (if any) under this section subsection (a) must comply
with the reorganization agreement under which the political
subdivision is reorganized under this article.
SECTION 8. IC 36-1.5-4-34.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 34.5. (a) This section applies to a
reorganization under this chapter that:
(1) occurs after June 30, 2006; and
(2) involves one (1) or more municipalities and one (1) or
more townships, all of which are participating units in a fire
protection territory on the date the reorganization is
approved by voters.
(b) The fiscal body of a reorganized political subdivision that
results from a reorganization described in subsection (a) may:
(1) establish an equipment replacement fund under
IC 36-8-19-8.5 and impose a property tax for the fund as
provided in IC 36-8-19-8.5; and
(2) take any other action under IC 36-8-19-8.5 that may be
taken under that section by a participating unit in a fire
protection territory.
(c) If a reorganized political subdivision establishes an
equipment replacement fund under IC 36-8-19-8.5 as authorized
by this section, the department of local government finance may
adjust the maximum permissible ad valorem property tax levy that
would otherwise apply to the reorganized political subdivision in
the same manner in which the department may adjust the
maximum permissible ad valorem property tax levy of a civil
taxing unit under IC 6-1.1-18.5-10.5 to meet the civil taxing unit's
obligations to a fire protection territory established under
IC 36-8-19.
SECTION 9. IC 36-1.5-4-38, AS AMENDED BY SEA 343-2013,
SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 38. (a) A reorganized political subdivision has the
powers granted by statute to a political subdivision of the same type as
the reorganized political subdivision, including a power described in
subsection (b). However, if authorized by the plan of reorganization
approved by the voters in a public question under this chapter, the
reorganized political subdivision will exercise a power or have the
officers or number of offices that a statute would have permitted any of
the reorganizing political subdivisions to have.
(b) Except as provided in the plan of reorganization, a
reorganized political subdivision may also do any of the following:
(1) Establish any fund that one (1) or more of the reorganizing
political subdivisions (either acting on its own or jointly with
another political subdivision) were authorized to establish
before the reorganization.
(2) Impose any tax levy or adopt any tax that one (1) or more
of the reorganizing political subdivisions were authorized to
impose or adopt before the reorganization.
(b) (c) This subsection applies to reorganizations approved by voters
after June 30, 2013. Notwithstanding subsection (a), if:
(1) a first political subdivision is located in whole or in part
within one (1) or more other political subdivisions that reorganize
under this article; and
(2) the first political subdivision does not participate in or does
not approve the reorganization;
the reorganization does not affect the rights, powers, and duties of the
first political subdivision, and the reorganized political subdivision
may not exercise within the first political subdivision any right, power,
or duty unless that right, power, or duty was exercised within the first
political subdivision before the reorganization by at least one (1) of the
reorganizing political subdivisions.
SECTION 10. IC 36-1.5-4-40.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 40.5. The following apply in
the case of a reorganization under this article that includes a
township and another political subdivision:
(1) If the township borrowed money from a township fund
under IC 36-6-6-14(c) to pay the operating expenses of the
township fire department or a volunteer fire department
before the reorganization:
(A) the reorganized political subdivision is not required to
repay the entire loan during the following year; and
(B) the reorganized political subdivision may repay the
loan in installments during the following five (5) years.
(2) Except as provided in subdivision (3):
(A) the reorganized political subdivision continues to be
responsible after the reorganization for providing
township services in all areas of the township, including
within the territory of a municipality in the township that
does not participate in the reorganization; and
(B) the reorganized political subdivision retains the powers
of a township after the reorganization in order to provide
township services as required by clause (A).
(3) Powers and duties of the reorganized political subdivision
may be transferred as authorized in an interlocal cooperation
agreement approved under IC 36-1-7 or as authorized in a
cooperative agreement approved under IC 36-1.5-5.
(4) If all or part of a municipality in the township is not
participating in the reorganization, not less than ten (10)
township taxpayers who reside within territory that is not
participating in the reorganization may file a petition with the
county auditor protesting the reorganized political
subdivision's township assistance levy. The petition must be
filed not more than thirty (30) days after the reorganized
political subdivision finally adopts the reorganized political
subdivision's township assistance levy. The petition must state
the taxpayers' objections and the reasons why the taxpayers
believe the reorganized political subdivision's township
assistance levy is excessive or unnecessary. The county
auditor shall immediately certify a copy of the petition,
together with other data necessary to present the questions
involved, to the department of local government finance.
Upon receipt of the certified petition and other data, the
department of local government finance shall fix a time and
place for the hearing of the matter. The hearing shall be held
not less than five (5) days and not more than thirty (30) days
after the receipt of the certified documents. The hearing shall
be held in the county where the petition arose. Notice of the
hearing shall be given by the department of local government
finance to the reorganized political subdivision and to the first
ten (10) taxpayer petitioners listed on the petition by letter.
The letter shall be sent to the first ten (10) taxpayer
petitioners at the taxpayers' usual place of residence at least
five (5) days before the date of the hearing. After the hearing,
the department of local government finance may reduce the
reorganized political subdivision's township assistance levy to
the extent that the levy is excessive or unnecessary. A
taxpayer who signed a petition under this subdivision or a
reorganized political subdivision against which a petition
under this subdivision is filed may petition for judicial review
of the final determination of the department of local
government finance under this subdivision. The petition must
be filed in the tax court not more than forty-five (45) days
after the date of the department of local government finance's
final determination.
(5) Section 40 of this chapter applies to the debt service levy
of the reorganized political subdivision and to the department
of local government finance's determination of the new
maximum permissible ad valorem property tax levy for the
reorganized political subdivision.
(6) The reorganized political subdivision may not borrow
money under IC 36-6-6-14(b) or IC 36-6-6-14(c).
(7) The new maximum permissible ad valorem property tax
levy for the reorganized political subdivision's firefighting
fund under IC 36-8-13-4 is equal to:
(A) the result of:
(i) the maximum permissible ad valorem property tax
levy for the township's firefighting fund under
IC 36-8-13-4 in the year preceding the year in which the
reorganization is effective; multiplied by
(ii) the assessed value growth quotient applicable for
property taxes first due and payable in the year in which
the reorganization is effective; plus
(B) any amounts borrowed by the township under
IC 36-6-6-14(b) or IC 36-6-6-14(c) in the year preceding
the year in which the reorganization is effective.
SECTION 11. IC 36-6-1.5-1.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 1.5. (a) All of the following apply
to a township that merges with another township under this
chapter:
(1) Notwithstanding any other law, the new township
government may use any funds in excess of what the new
township government determines is necessary to deliver
effective service to pay the indebtedness of the new township
government, including bonds and other indebtedness
transferred to the new township government under section 8
of this chapter.
(2) Notwithstanding any other law, after the indebtedness
described in subdivision (1) is satisfied, the new township
government may do the following with any remaining excess
funds:
(A) Transfer the funds to:
(i) the county in which the new township government is
located; or
(ii) a municipality that has jurisdiction;
to make improvements to infrastructure located within the
area of the new township government.
(B) Transfer the funds to a transportation corporation that
offers service within the area of the new township
government to pay for, or make improvements to, services
within the area of the new township government.
(C) Use the funds for improvement of fire protection
services within the area of the new township government.
(D) Transfer the funds to a political subdivision that has
jurisdiction within the new township government for
improvement of any fire department that provides service
within the area of the new township government.
(b) Notwithstanding any other law, the department of local
government finance shall take any and all appropriate action to
assist townships in merging under this chapter and may not in any
manner delay a merger of townships or prevent a merger of
townships.
(c) This section shall be liberally construed to effect the
purposes of this section.
(d) Notwithstanding any other law, to the extent the provisions
of this chapter are inconsistent with the provisions of any other
law, the provisions of this chapter are controlling, and compliance
with this chapter shall be treated as compliance with the conflicting
law.
SECTION 12. IC 36-6-1.5-5, AS ADDED BY P.L.240-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2013]: Sec. 5. (a) The township trustees, with the approval of
a majority of the members of the township legislative body of each
township that wants to merge township governments under this
chapter, must comply with this section.
(b) The township trustees must present identical resolutions
approving the township government merger to the trustees' respective
township legislative bodies. A township legislative body may adopt a
resolution under this chapter only after the legislative body has held a
public hearing concerning the proposed merger. The township
legislative body shall hold the hearing not earlier than thirty (30) days
after the date the resolution is introduced. The hearing shall be
conducted in accordance with IC 5-14-1.5 and notice of the hearing
shall be published in accordance with IC 5-3-1.
(c) The township legislative bodies may adopt the identical
resolutions approving the township government merger under this
chapter not later than ninety (90) days after the legislative body has
held the public hearing under subsection (b). The townships shall
submit the resolutions to the county legislative body of the county
within which the townships are located.
(d) The county legislative body of the county where the township
governments are located must: (1) adopt an ordinance ordering the
merger; and (2) trustees of the participating townships shall jointly
file a copy of the ordinance identical resolutions with:
(1) the department of local government finance;
(A) (2) the circuit court clerk; and
(B) (3) the office of the secretary of state.
(e) The county A township legislative body may not adopt an
ordinance a resolution ordering a merger after January 1 of a year in
which:
(1) a general election is held; and
(2) a township trustee is elected.
(f) The county legislative body may not adopt an ordinance merging
township governments less than one (1) year before the merger
becomes effective.
SECTION 13. IC 36-6-1.5-6, AS ADDED BY P.L.240-2005, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 6. The merger becomes effective
SECTION 14. IC 36-6-1.5-12, AS AMENDED BY P.L.58-2011, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 12. (a) Subject to subsection (b), the officers of the new township government shall:
(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 resolutions approving the township government merger under this chapter must specify the amount (if any) of the decrease that the department of local government finance shall
(1) eliminate double taxation for services or goods provided by the new township; or
(2) eliminate any excess by which the amount of property taxes imposed by the new township exceeds the amount
necessary to pay for services or goods provided under this
article.
(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.
(c) 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 (if any) under this
section. subsection (b). The amount of the adjustment (if any) to be
made under subsection (b) must comply with the resolutions
approving the township government merger.
SECTION 15. IC 36-7-14-3.7 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 3.7. (a) As used in this section,
"development area" means a redevelopment project area,
economic development area, or urban renewal project area
established under this chapter.
(b) The jurisdiction and control over a development area
established by the redevelopment commission of a first
municipality may be transferred from that redevelopment
commission to the redevelopment commission of a second, adjacent
municipality if:
(1) the owners of one hundred percent (100%) of the real
property in the development area consent to the transfer;
(2) the fiscal body of the first municipality and the fiscal body
of the second, adjacent municipality:
(A) adopt or have adopted:
(i) substantially similar ordinances; or
(ii) an interlocal agreement;
consenting to the transfer of the jurisdiction and control
over the development area; and
(B) agree or have agreed to transfer the geographic
territory comprising the development area from the first
municipality to the second, adjacent municipality through
disannexation, interlocal agreement, or any other legal
means;
(3) no tax increment from an allocation area within the
development area has been pledged for the payment of bonds
or the payment of lease rentals; and
(4) either the first municipality or the second, adjacent
municipality has before the date of the transfer completed a
reorganization under IC 36-1.5.
(c) If the requirements of subsection (b) are satisfied:
(1) the jurisdiction and control over the development area is
transferred without any other action required from the fiscal
bodies, the redevelopment commissions, or the plan
commissions of the municipalities or from any other state or
local entity;
(2) the development area is thereafter part of the territory
that is under the jurisdiction and control of the
redevelopment commission of the second, adjacent
municipality;
(3) the development area or the redevelopment plan may be
altered or amended by the second, adjacent municipality and
the redevelopment commission of the second, adjacent
municipality as otherwise provided in this chapter; and
(4) any property taxes collected within the development area
that were payable to the first municipality, to any taxing
district of the first municipality, or to the redevelopment
commission of the first municipality shall after the transfer be
payable to the second, adjacent municipality, to the taxing
districts of the second, adjacent municipality, or to the
redevelopment commission of the second, adjacent
municipality, as appropriate.
(d) If, before January 1, 2013, the redevelopment commission of
the first municipality has entered into an agreement to reimburse
a person or political subdivision for infrastructure improvements
from tax increments from an allocation area within the
development area, the obligation to make the reimbursement is
transferred to the redevelopment commission of the second,
adjacent municipality upon the effective date of the transfer of the
jurisdiction and control over the development area.
(e) The authority to transfer the jurisdiction and control over a
development area as provided in this section expires December 31,
2013.
SECTION 16. IC 36-8-19-8.5, AS AMENDED BY P.L.47-2007,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 8.5. (a) Participating units may agree to
establish an equipment replacement fund under this section to be used
to purchase fire protection equipment, including housing, that will be
used to serve the entire territory. To establish the fund, the legislative
bodies of each participating unit must adopt an ordinance (if the unit
is a county or municipality) or a resolution (if the unit is a township),
and that meets the following requirements must be met:
(1) The ordinance or resolution is identical to the ordinances and
resolutions adopted by the other participating units under this
section.
(2) The ordinance or resolution is adopted after January 1 but
before April 1.
(2) Before adopting the ordinance or resolution, each
participating unit must comply with the notice and hearing
requirements of IC 6-1.1-41-3.
(3) The ordinance or resolution authorizes the provider unit to
establish the fund.
(4) The ordinance or resolution includes at least the following:
(A) The name of each participating unit and the provider unit.
(B) An agreement to impose a uniform tax rate upon all of the
taxable property within the territory for the equipment
replacement fund.
(C) The contents of the agreement to establish the fund.
An ordinance or a resolution adopted under this section takes effect
July 1 of the year the ordinance or resolution is adopted. as provided
in IC 6-1.1-41.
(b) If a fund is established, the participating units may agree to:
(1) impose a property tax to provide for the accumulation of money in the fund to purchase fire protection equipment;
(2) incur debt to purchase fire protection equipment and impose a property tax to retire the loan; or
(3) transfer an amount from the fire protection territory fund to the fire equipment replacement fund not to exceed five percent (5%) of the levy for the fire protection territory fund for that year;
or any combination of these options. The property tax rate for the levy imposed under this section may not exceed three and thirty-three hundredths cents ($0.0333) per one hundred dollars ($100) of assessed value. Before debt may be incurred, the fiscal body of a participating unit must adopt an ordinance (if the unit is a county or municipality) or a resolution (if the unit is a township) that specifies the amount and purpose of the debt. The ordinance or resolution must be identical to the other ordinances and resolutions adopted by the participating units. In addition, the department of local government finance must approve the incurrence of the debt using the same standards as applied to the incurrence of debt by civil taxing units.
(c) Money in the fund may be used by the provider unit only for those purposes set forth in the agreement among the participating units that permits the establishment of the fund.
(d) The requirements and procedures specified in IC 6-1.1-41 concerning the establishment or reestablishment of a cumulative fund, the imposing of a property tax for a cumulative fund, and the increasing of a property tax rate for a cumulative fund apply to:
(1) the establishment or reestablishment of a fund under this section;
(2) the imposing of a property tax for a fund under this section; and
(3) the increasing of a property tax rate for a fund under this section.
(e) Notwithstanding IC 6-1.1-18-12, if a fund established under this section is reestablished in the manner provided in IC 6-1.1-41, the property tax rate imposed for the fund in the first year after the fund is reestablished may not exceed three and thirty-three hundredths cents ($0.0333) per one hundred dollars ($100) of assessed value.
SECTION 17. An emergency is declared for this act.
President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date:
Time:
SEA 459
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