§ 36-1.5-4-40.5 — Reorganization of a township and another political subdivision; powers and duties; remonstrance; borrowing; tax levies

Indiana § 36-1.5-4-40.5

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 1.5: GOVERNMENT MODERNIZATION
• Ch. 4: Reorganization by Referendum

Text

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 and
emergency services fund under IC 36-8-13-4(a)(1) or the
combined levies for the township firefighting fund and township
emergency services fund described in IC 36-8-13-4(a)(2) is equal
to:
(A) the result of:
(i) the maximum permissible ad valorem property tax levy for
the township's firefighting and emergency services fund
under IC 36-8-13-4(a)(1) or the combined ad valorem
property tax levies for the township firefighting fund and
township emergency services fund described in IC 36-8-13-4(a)(2), as applicable, in the year preceding the year
in which the reorganization is effective; multiplied by
(ii) the maximum levy 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.

Legislative History

As added by P.L.255-2013, SEC.10. Amended by P.L.159-2020, SEC.77; P.L.236-2023, SEC.165.