CHAPTER 2. POWERS OF POLITICAL SUBDIVISIONS IN THE COUNTY
IC 36-3-2
Chapter 2. Powers of Political Subdivisions in the County
IC 36-3-2-1
Application of chapter
Sec. 1. This chapter applies to political subdivisions in a county
having a consolidated city.
As added by Acts 1980, P.L.212, SEC.2.
IC 36-3-2-2
Consolidated city; home rule and taxation powers; annexation of
territory
Sec. 2. (a) The consolidated city has home rule powers under
IC 36-1-3, including all the powers that a first class city has
according to law. In addition, the consolidated city has the power to
levy and collect taxes on taxable privileges and to regulate those
privileges.
(b) If the consolidated city wants to annex territory inside the
county, it must do so in the manner prescribed by section 7 of this
chapter.
(c) The consolidated city may not annex territory outside the
county.
As added by Acts 1980, P.L.212, SEC.2. Amended by Acts 1981,
P.L.17, SEC.16.
IC 36-3-2-3
Powers and duties of special service districts; administration of
special service and special taxing districts; expansion of solid waste
collection district
Sec. 3. (a) A special service district of the consolidated city:
(1) may sue and be sued;
(2) may exercise powers of the consolidated city to the extent
that those powers are delegated to it by law, but may not issue
bonds; and
(3) shall provide services to property owners only in the district,
unless a law provides otherwise.
(b) A special service district or special taxing district shall be
administered under the jurisdiction of a department of the
consolidated city or the county. The territory of a special service
district or special taxing district may be expanded, in the manner
prescribed by law, to include territory inside the county that is not
originally included in the district.
(c) The city-county legislative body may, by ordinance, expand
the territory of a solid waste collection district as follows:
(1) The ordinance may not be considered unless a petition to
include additional territory in the district is first submitted to
the works board for study and recommendation.
(2) The petition must be signed by at least ten (10) interested
residents in the proposed additional territory.
(3) After receiving the petition, the works board shall:
(A) set a date for a public hearing;
(B) publish notice of the hearing in accordance with
IC 5-3-1; and
(C) upon hearing the matter, determine whether the territory
should be added to the district.
(4) If the works board recommends that the territory should be
added to the district, the legislative body must hold a public
hearing and then may pass the ordinance.
(5) Territory in the solid waste collection district may also be
removed from the district in the manner prescribed by this
section.
As added by Acts 1980, P.L.212, SEC.2. Amended by Acts 1981,
P.L.17, SEC.17; Acts 1982, P.L.77, SEC.5; P.L.227-2005, SEC.20.
IC 36-3-2-4
Excluded city; home rule powers; annexation of territory
Sec. 4. (a) An excluded city has home rule powers under
IC 36-1-3, including all the powers that municipalities of its class
have according to law.
(b) An excluded city that wants to annex territory inside the
county must do so in the manner prescribed by section 7 of this
chapter.
(c) An excluded city that wants to annex territory outside the
county may do so in any manner prescribed by IC 36-4-3.
As added by Acts 1980, P.L.212, SEC.2.
IC 36-3-2-5
Included town; home rule powers; restrictions; annexation of
territory
Sec. 5. (a) An included town has home rule powers under
IC 36-1-3, including all the powers that municipalities of its class
have according to law. However, an included town may not:
(1) enforce an ordinance or regulation that is in conflict with or
permits a lesser standard than an applicable ordinance or
regulation of the consolidated city; or
(2) issue general obligation bonds.
(b) An included town that wants to annex territory inside the
county may annex only territory that is outside the corporate
boundaries of the excluded cities in the county. This subsection
applies notwithstanding IC 36-4-3-2; however:
(1) the included town must follow the procedures prescribed by
IC 36-4-3 for other annexations; and
(2) all territory annexed under this subsection remains part of
the consolidated city.
(c) An included town that wants to annex territory outside the
county may do so in any manner prescribed by IC 36-4-3.
As added by Acts 1980, P.L.212, SEC.2.
IC 36-3-2-6
Conservancy district; statutory powers; restrictions
Sec. 6. A conservancy district located wholly or partially inside
the corporate boundaries of the consolidated city has all the powers
granted it by statute. However, it may not:
(1) enforce a regulation that is in conflict with or permits a
lesser standard than an applicable ordinance or regulation of the
consolidated city; or
(2) issue general obligation bonds.
As added by Acts 1980, P.L.212, SEC.2.
IC 36-3-2-7
Transfer of territory; procedure
Sec. 7. (a) This section governs the transfer of territory that is
either:
(1) inside the corporate boundaries of the consolidated city and
contiguous to an excluded city; or
(2) inside the corporate boundaries of an excluded city and
contiguous to the consolidated city.
IC 36-4-3 does not apply to such a transfer.
(b) If the owners of land located in territory described in
subsection (a) want to have that territory transferred from one (1)
municipality to the other, they must file:
(1) a petition for annexation of that territory with the legislative
body of the contiguous municipality; and
(2) a petition for disannexation of that territory with the
legislative body of the municipality containing that territory.
Each petition must be signed by at least fifty-one percent (51%) of
the owners of land in the territory sought to be transferred. The
territory must be reasonably compact in configuration, and its
boundaries must generally follow streets or natural boundaries.
(c) Each legislative body shall, not later than sixty (60) days after
a petition is filed with it under subsection (b), either approve or
disapprove the petition, with the following results:
(1) Except as provided in subsection (g), if both legislative
bodies approve, the transfer of territory takes effect:
(A) on the effective date of the approval of the latter
legislative body to act; and
(B) when a copy of each transfer approval has been filed
under subsection (f).
(2) If the legislative body of the contiguous municipality
disapproves or fails to act within the prescribed period, the
proceedings are terminated.
(3) If the legislative body of the contiguous municipality
approves but the legislative body of the other municipality
disapproves or fails to act within the prescribed period, the
proceedings are terminated unless there is an appeal under
subsection (d).
(d) In the case described by subsection (c)(3), the petitioners may,
not later than sixty (60) days after the disapproval or expiration of
the prescribed period, appeal to the circuit court. The appeal must
allege that the benefits to be derived by the petitioners from the
transfer outweigh the detriments to the municipality that has failed
to approve, which is defendant in the appeal.
(e) The court shall try an appeal under subsection (d) as other civil
actions, but without a jury. If the court determines that:
(1) the requirements of this section have been met; and
(2) the benefits to be derived by the petitioners outweigh the
detriments to the municipality;
it shall order the transfer of territory to take effect on the date its
order becomes final, subject to subsection (g), and shall file the order
under subsection (f). However, if the municipality, or a district of it,
is furnishing sanitary sewer service or municipal water service in the
territory, or otherwise has expended substantial sums for public
facilities (other than roads) specially benefiting the territory, the
court shall deny the transfer.
(f) A municipal legislative body that approves a transfer of
territory under subsection (c) or a court that approves a transfer
under subsection (e) shall file a copy of the approval or order, setting
forth a legal description of the territory to be transferred, with:
(1) the office of the secretary of state; and
(2) the circuit court clerk of each county in which the
municipality is located.
(g) A transfer of territory under this section may not take effect
during the year preceding a year in which a federal decennial census
is conducted. A transfer of territory that would otherwise take effect
during the year preceding a year in which a federal decennial census
is conducted takes effect January 1 of the year in which a federal
decennial census is conducted.
(h) A petition for annexation or disannexation under this section
may not be filed with respect to land as to which a transfer of
territory has been disapproved or denied within the preceding three
(3) years.
(i) The legislative body of a municipality annexing territory under
this section shall assign the territory to at least one (1) municipal
legislative body district under IC 36-3-4-3 or IC 36-4-6 not later than
thirty (30) days after the transfer of territory becomes effective under
this section.
(j) Notwithstanding subsection (g) as that subsection existed on
December 31, 2009, a transfer of territory that took effect January 2,
2010, because of the application of subsection (g), as that subsection
existed on December 31, 2009, is instead considered to take effect
January 1, 2010, without any additional action being required.
As added by Acts 1980, P.L.212, SEC.2. Amended by P.L.5-1989,
SEC.89; P.L.3-1997, SEC.452; P.L.123-2000, SEC.3; P.L.113-2010,
SEC.114.
IC 36-3-2-7.5
Connection of sewer and water service; waiver against
remonstrance
Sec. 7.5. A landowner is not required to grant a municipality a
waiver against remonstrance as a condition of connection to a sewer
or water service if all of the following conditions apply:
(1) The landowner is required to connect to the sewer or water
service because a person other than the landowner has polluted
or contaminated the area.
(2) A person other than the landowner or the municipality has
paid the cost of connection to the service.
As added by P.L.172-1995, SEC.3.
IC 36-3-2-8
Services provided outside boundaries; service charge
Sec. 8. Whenever the consolidated city, or any of its special
service districts or special taxing districts, provides services outside
its boundaries, it may impose a service charge for installation and
operating expenses, subject to IC 36-1-3-8(6).
As added by Acts 1980, P.L.212, SEC.2.
IC 36-3-2-9
Federal manpower program; approval to operate or be prime
sponsor
Sec. 9. Before a political subdivision located within the corporate
boundaries of the consolidated city may operate or be the prime
sponsor of a federal manpower program, it must obtain the approval
of both the executive and the legislative body of the consolidated
city.
As added by Acts 1980, P.L.212, SEC.2.
IC 36-3-2-10
Payments in lieu of taxes ("PILOTS"); consolidated city and
county; public entities
Sec. 10. (a) The general assembly finds the following:
(1) That the tax base of the consolidated city and the county
have been significantly eroded through the ownership of
tangible property by separate municipal corporations and other
public entities that operate as private enterprises yet are exempt
or whose property is exempt from property taxation.
(2) That to restore this tax base and provide a proper allocation
of the cost of providing governmental services the legislative
body of the consolidated city and county should be authorized
to collect payments in lieu of taxes from these public entities.
(3) That the appropriate maximum payments in lieu of taxes
would be the amount of the property taxes that would be paid
if the tangible property were not subject to an exemption.
(b) As used in this section, the following terms have the meanings
set forth in IC 6-1.1-1:
(1) Assessed value.
(2) Exemption.
(3) Owner.
(4) Person.
(5) Personal property.
(6) Property taxation.
(7) Tangible property.
(8) Township assessor.
(c) As used in this section, "PILOTS" means payments in lieu of
taxes.
(d) As used in this section, "public entity" means any of the
following government entities in the county:
(1) An airport authority operating under IC 8-22-3.
(2) A capital improvement board of managers under IC 36-10-9.
(3) A building authority operating under IC 36-9-13.
(4) A wastewater treatment facility.
(e) The legislative body of the consolidated city may adopt an
ordinance to require a public entity to pay PILOTS at times set forth
in the ordinance with respect to:
(1) tangible property of which the public entity is the owner or
the lessee and that is subject to an exemption;
(2) tangible property of which the owner is a person other than
a public entity and that is subject to an exemption under
IC 8-22-3; or
(3) both.
The ordinance remains in full force and effect until repealed or
modified by the legislative body.
(f) The PILOTS must be calculated so that the PILOTS may be in
any amount that does not exceed the amount of property taxes that
would have been levied by the legislative body for the consolidated
city and county upon the tangible property described in subsection
(e) if the property were not subject to an exemption from property
taxation.
(g) PILOTS shall be imposed as are property taxes and shall be
based on the assessed value of the tangible property described in
subsection (e). Except as provided in subsection (l), the township
assessor, or the county assessor if there is no township assessor for
the township, shall assess the tangible property described in
subsection (e) as though the property were not subject to an
exemption. The public entity shall report the value of personal
property in a manner consistent with IC 6-1.1-3.
(h) Notwithstanding any law to the contrary, a public entity is
authorized to pay PILOTS imposed under this section from any
legally available source of revenues. The public entity may consider
these payments to be operating expenses for all purposes.
(i) PILOTS shall be deposited in the consolidated county fund and
used for any purpose for which the consolidated county fund may be
used.
(j) PILOTS shall be due as set forth in the ordinance and bear
interest, if unpaid, as in the case of other taxes on property. PILOTS
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
(k) PILOTS imposed on a wastewater treatment facility may be
paid only from the cash earnings of the facility remaining after
provisions have been made to pay for current obligations, including:
(1) operating and maintenance expenses;
(2) payment of principal and interest on any bonded
indebtedness;
(3) depreciation or replacement fund expenses;
(4) bond and interest sinking fund expenses; and
(5) any other priority fund requirements required by law or by
any bond ordinance, resolution, indenture, contract, or similar
instrument binding on the facility.
(l) If the duties of the township assessor have been transferred to
the county assessor as described in IC 6-1.1-1-24, a reference to the
township assessor in this section is considered to be a reference to
the county assessor.
As added by P.L.27-1992, SEC.27. Amended by P.L.93-1993, SEC.8;
P.L.219-2007, SEC.111; P.L.146-2008, SEC.701.
IC 36-3-2-11
Ordinance requiring payment of PILOTS
Sec. 11. (a) As used in this section, the following terms have the
meanings set forth in IC 6-1.1-1:
(1) Assessed value.
(2) Exemption.
(3) Owner.
(4) Person.
(5) Property taxation.
(6) Real property.
(7) Township assessor.
(b) As used in this section, "PILOTS" means payments in lieu of
taxes.
(c) As used in this section, "property owner" means the owner of
real property described in IC 6-1.1-10-16.7 that is located in a county
with a consolidated city.
(d) Subject to the approval of a property owner, the legislative
body of the consolidated city may adopt an ordinance to require the
property owner to pay PILOTS at times set forth in the ordinance
with respect to real property that is subject to an exemption under
IC 6-1.1-10-16.7. The ordinance remains in full force and effect until
repealed or modified by the legislative body, subject to the approval
of the property owner.
(e) The PILOTS must be calculated so that the PILOTS are in an
amount that is:
(1) agreed upon by the property owner and the legislative body
of the consolidated city;
(2) a percentage of the property taxes that would have been
levied by the legislative body for the consolidated city and the
county upon the real property described in subsection (d) if the
property were not subject to an exemption from property
taxation; and
(3) not more than the amount of property taxes that would have
been levied by the legislative body for the consolidated city and
county upon the real property described in subsection (d) if the
property were not subject to an exemption from property
taxation.
(f) PILOTS shall be imposed as are property taxes and shall be
based on the assessed value of the real property described in
subsection (d). Except as provided in subsection (i), the township
assessor, or the county assessor if there is no township assessor for
the township, shall assess the real property described in subsection
(d) as though the property were not subject to an exemption.
(g) PILOTS collected under this section shall be deposited in the
housing trust fund established under IC 36-7-15.1-35.5 and used for
any purpose for which the housing trust fund may be used.
(h) PILOTS shall be due as set forth in the ordinance and bear
interest, if unpaid, as in the case of other taxes on property. PILOTS
shall be treated in the same manner as taxes for purposes of all
procedural and substantive provisions of law.
(i) If the duties of the township assessor have been transferred to
the county assessor as described in IC 6-1.1-1-24, a reference to the
township assessor in this section is considered to be a reference to
the county assessor.
As added by P.L.19-2000, SEC.2. Amended by P.L.186-2001, SEC.9;
P.L.170-2002, SEC.140; P.L.179-2002, SEC.4; P.L.1-2003, SEC.98;
P.L.219-2007, SEC.112; P.L.146-2008, SEC.702.