Indiana § 36-4-3-4.2 County infrastructure reimbursement

Indiana Statutes

§ 36-4-3-4.2 — County infrastructure reimbursement

Indiana § 36-4-3-4.2

Title 36LOCAL GOVERNMENT

Art. 4GOVERNMENT OF CITIES AND TOWNS

Ch. 3Municipal Annexation and Disannexation

This text of Indiana § 36-4-3-4.2 (County infrastructure reimbursement) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 36-4-3-4.2 (2026).

Text

2.

(a)As used in this section, "infrastructure" means the capital improvements that comprise:

(1)a sanitary sewer system or wastewater treatment facility;

(2)a building and appurtenances;

(3)a park or recreational facility;

(4)a road, street, highway, or bridge; or

(5)a water treatment, water storage, or water distribution facility.

(b)This section applies:

(1)only to an annexation for which an annexation ordinance is adopted after June 30, 2015; and

(2)if there is debt, evidenced by bonds, leases, or other obligations, that is outstanding on infrastructure on the date that the annexation becomes effective.

(c)This subsection applies if:

(1)the municipality takes ownership of infrastructure located within the annexation territory, or part of an item of infrastructure, owned by t

Free access — add to your briefcase to read the full text and ask questions with AI

2. (a) As used in this section, "infrastructure"
means the capital improvements that comprise:
(1) a sanitary sewer system or wastewater treatment facility;
(2) a building and appurtenances;
(3) a park or recreational facility;
(4) a road, street, highway, or bridge; or
(5) a water treatment, water storage, or water distribution facility.
(b) This section applies:
(1) only to an annexation for which an annexation ordinance is
adopted after June 30, 2015; and
(2) if there is debt, evidenced by bonds, leases, or other
obligations, that is outstanding on infrastructure on the date that
the annexation becomes effective.
(c) This subsection applies if:
(1) the municipality takes ownership of infrastructure located
within the annexation territory, or part of an item of infrastructure,
owned by the county; and
(2) the outstanding debt is payable from property taxes or from
revenue bonds or obligations.
The annexing municipality is liable to the county for reimbursements
only if the municipality assumes ownership or partial ownership of the
infrastructure. If the municipality assumes ownership or partial
ownership of the infrastructure, the municipality shall reimburse the
county for the appropriate share of the remaining debt that is payable
by the county from property taxes or revenues. The county and the
annexing municipality shall enter into an interlocal agreement under IC 36-1-7 regarding the allocation of the debt and reimbursement terms.
(d) This subsection applies if the local income tax under IC 6-3.6
has been pledged by the county to pay outstanding debt on
infrastructure located within the county. To offset the change in local
income tax distributions that will occur after the annexation, the
annexing municipality is liable to the county for reimbursements in the
amount that represents part of the outstanding debt on the infrastructure
until the debt is fully paid. The amount that the municipality is required
to reimburse the county is the percent of the total county income tax
distribution that is indebted, multiplied by the amount of local income
tax revenue for the distribution year that is shifted from the county to
the municipality as a result of the annexation.
(e) Reimbursements received by a county under this section shall be
deposited in the appropriate debt service fund.