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 countyhaving 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 ofterritory
Sec. 2. (a) The consolidated city has home rule powers underIC 36-1-3, including all the powers that a first class city hasaccording to law. In addition, the consolidated city has the power tolevy and collect taxes on taxable privileges and to regulate thoseprivileges.
(b) If the consolidated city wants to annex territory inside thecounty, it must do so in the manner prescribed by section 7 of thischapter.
(c) The consolidated city may not annex territory outside thecounty.
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 ofspecial service and special taxing districts; expansion of solid wastecollection 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 extentthat those powers are delegated to it by law, but may not issuebonds; 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 beadministered under the jurisdiction of a department of theconsolidated city or the county. The territory of a special servicedistrict or special taxing district may be expanded, in the mannerprescribed by law, to include territory inside the county that is notoriginally included in the district.
(c) The city-county legislative body may, by ordinance, expandthe territory of a solid waste collection district as follows:
(1) The ordinance may not be considered unless a petition toinclude additional territory in the district is first submitted tothe works board for study and recommendation.
(2) The petition must be signed by at least ten (10) interestedresidents 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 withIC 5-3-1; and
(C) upon hearing the matter, determine whether the territoryshould be added to the district.
(4) If the works board recommends that the territory should beadded to the district, the legislative body must hold a publichearing and then may pass the ordinance.
(5) Territory in the solid waste collection district may also beremoved from the district in the manner prescribed by thissection.
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 underIC 36-1-3, including all the powers that municipalities of its classhave according to law.
(b) An excluded city that wants to annex territory inside thecounty must do so in the manner prescribed by section 7 of thischapter.
(c) An excluded city that wants to annex territory outside thecounty 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 ofterritory
Sec. 5. (a) An included town has home rule powers underIC 36-1-3, including all the powers that municipalities of its classhave according to law. However, an included town may not:
(1) enforce an ordinance or regulation that is in conflict with orpermits a lesser standard than an applicable ordinance orregulation of the consolidated city; or
(2) issue general obligation bonds.
(b) An included town that wants to annex territory inside thecounty may annex only territory that is outside the corporateboundaries of the excluded cities in the county. This subsectionapplies notwithstanding IC 36-4-3-2; however:
(1) the included town must follow the procedures prescribed byIC 36-4-3 for other annexations; and
(2) all territory annexed under this subsection remains part ofthe consolidated city.
(c) An included town that wants to annex territory outside thecounty 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 insidethe corporate boundaries of the consolidated city has all the powersgranted it by statute. However, it may not:
(1) enforce a regulation that is in conflict with or permits alesser standard than an applicable ordinance or regulation of theconsolidated 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 iseither:
(1) inside the corporate boundaries of the consolidated city andcontiguous to an excluded city; or
(2) inside the corporate boundaries of an excluded city andcontiguous 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 insubsection (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 legislativebody of the contiguous municipality; and
(2) a petition for disannexation of that territory with thelegislative body of the municipality containing that territory.
Each petition must be signed by at least fifty-one percent (51%) ofthe owners of land in the territory sought to be transferred. Theterritory must be reasonably compact in configuration, and itsboundaries must generally follow streets or natural boundaries.
(c) Each legislative body shall, not later than sixty (60) days aftera petition is filed with it under subsection (b), either approve ordisapprove the petition, with the following results:
(1) Except as provided in subsection (g), if both legislativebodies approve, the transfer of territory takes effect:
(A) on the effective date of the approval of the latterlegislative body to act; and
(B) when a copy of each transfer approval has been filedunder subsection (f).
(2) If the legislative body of the contiguous municipalitydisapproves or fails to act within the prescribed period, theproceedings are terminated.
(3) If the legislative body of the contiguous municipalityapproves but the legislative body of the other municipalitydisapproves or fails to act within the prescribed period, theproceedings are terminated unless there is an appeal undersubsection (d).
(d) In the case described by subsection (c)(3), the petitioners may,not later than sixty (60) days after the disapproval or expiration ofthe prescribed period, appeal to the circuit court. The appeal mustallege that the benefits to be derived by the petitioners from the
transfer outweigh the detriments to the municipality that has failedto approve, which is defendant in the appeal.
(e) The court shall try an appeal under subsection (d) as other civilactions, 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 thedetriments to the municipality;
it shall order the transfer of territory to take effect on the date itsorder becomes final, subject to subsection (g), and shall file the orderunder subsection (f). However, if the municipality, or a district of it,is furnishing sanitary sewer service or municipal water service in theterritory, or otherwise has expended substantial sums for publicfacilities (other than roads) specially benefiting the territory, thecourt shall deny the transfer.
(f) A municipal legislative body that approves a transfer ofterritory under subsection (c) or a court that approves a transferunder subsection (e) shall file a copy of the approval or order, settingforth 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 themunicipality is located.
(g) A transfer of territory under this section may not take effectduring the year preceding a year in which a federal decennial censusis conducted. A transfer of territory that would otherwise take effectduring the year preceding a year in which a federal decennial censusis conducted takes effect January 1 of the year in which a federaldecennial census is conducted.
(h) A petition for annexation or disannexation under this sectionmay not be filed with respect to land as to which a transfer ofterritory has been disapproved or denied within the preceding three(3) years.
(i) The legislative body of a municipality annexing territory underthis section shall assign the territory to at least one (1) municipallegislative body district under IC 36-3-4-3 or IC 36-4-6 not later thanthirty (30) days after the transfer of territory becomes effective underthis section.
(j) Notwithstanding subsection (g) as that subsection existed onDecember 31, 2009, a transfer of territory that took effect January 2,2010, because of the application of subsection (g), as that subsectionexisted on December 31, 2009, is instead considered to take effectJanuary 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 againstremonstrance
Sec. 7.5. A landowner is not required to grant a municipality awaiver 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 waterservice because a person other than the landowner has pollutedor contaminated the area.
(2) A person other than the landowner or the municipality haspaid 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 specialservice districts or special taxing districts, provides services outsideits boundaries, it may impose a service charge for installation andoperating 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 primesponsor
Sec. 9. Before a political subdivision located within the corporateboundaries of the consolidated city may operate or be the primesponsor of a federal manpower program, it must obtain the approvalof both the executive and the legislative body of the consolidatedcity.
As added by Acts 1980, P.L.212, SEC.2.
IC 36-3-2-10
Payments in lieu of taxes ("PILOTS"); consolidated city andcounty; public entities
Sec. 10. (a) The general assembly finds the following:
(1) That the tax base of the consolidated city and the countyhave been significantly eroded through the ownership oftangible property by separate municipal corporations and otherpublic entities that operate as private enterprises yet are exemptor whose property is exempt from property taxation.
(2) That to restore this tax base and provide a proper allocationof the cost of providing governmental services the legislativebody of the consolidated city and county should be authorizedto collect payments in lieu of taxes from these public entities.
(3) That the appropriate maximum payments in lieu of taxeswould be the amount of the property taxes that would be paidif the tangible property were not subject to an exemption.
(b) As used in this section, the following terms have the meaningsset 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 oftaxes.
(d) As used in this section, "public entity" means any of thefollowing 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 anordinance to require a public entity to pay PILOTS at times set forthin the ordinance with respect to:
(1) tangible property of which the public entity is the owner orthe lessee and that is subject to an exemption;
(2) tangible property of which the owner is a person other thana public entity and that is subject to an exemption underIC 8-22-3; or
(3) both.
The ordinance remains in full force and effect until repealed ormodified by the legislative body.
(f) The PILOTS must be calculated so that the PILOTS may be inany amount that does not exceed the amount of property taxes thatwould have been levied by the legislative body for the consolidatedcity and county upon the tangible property described in subsection(e) if the property were not subject to an exemption from propertytaxation.
(g) PILOTS shall be imposed as are property taxes and shall bebased on the assessed value of the tangible property described insubsection (e). Except as provided in subsection (l), the townshipassessor, or the county assessor if there is no township assessor forthe township, shall assess the tangible property described insubsection (e) as though the property were not subject to anexemption. The public entity shall report the value of personalproperty in a manner consistent with IC 6-1.1-3.
(h) Notwithstanding any law to the contrary, a public entity isauthorized to pay PILOTS imposed under this section from anylegally available source of revenues. The public entity may considerthese payments to be operating expenses for all purposes.
(i) PILOTS shall be deposited in the consolidated county fund andused for any purpose for which the consolidated county fund may beused.
(j) PILOTS shall be due as set forth in the ordinance and bearinterest, if unpaid, as in the case of other taxes on property. PILOTSshall be treated in the same manner as taxes for purposes of allprocedural and substantive provisions of law.
(k) PILOTS imposed on a wastewater treatment facility may bepaid only from the cash earnings of the facility remaining afterprovisions have been made to pay for current obligations, including:
(1) operating and maintenance expenses; (2) payment of principal and interest on any bondedindebtedness;
(3) depreciation or replacement fund expenses;
(4) bond and interest sinking fund expenses; and
(5) any other priority fund requirements required by law or byany bond ordinance, resolution, indenture, contract, or similarinstrument binding on the facility.
(l) If the duties of the township assessor have been transferred tothe county assessor as described in IC 6-1.1-1-24, a reference to thetownship assessor in this section is considered to be a reference tothe 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 themeanings 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 oftaxes.
(c) As used in this section, "property owner" means the owner ofreal property described in IC 6-1.1-10-16.7 that is located in a countywith a consolidated city.
(d) Subject to the approval of a property owner, the legislativebody of the consolidated city may adopt an ordinance to require theproperty owner to pay PILOTS at times set forth in the ordinancewith respect to real property that is subject to an exemption underIC 6-1.1-10-16.7. The ordinance remains in full force and effect untilrepealed or modified by the legislative body, subject to the approvalof the property owner.
(e) The PILOTS must be calculated so that the PILOTS are in anamount that is:
(1) agreed upon by the property owner and the legislative bodyof the consolidated city;
(2) a percentage of the property taxes that would have beenlevied by the legislative body for the consolidated city and thecounty upon the real property described in subsection (d) if theproperty were not subject to an exemption from propertytaxation; and
(3) not more than the amount of property taxes that would havebeen levied by the legislative body for the consolidated city andcounty upon the real property described in subsection (d) if theproperty were not subject to an exemption from property
taxation.
(f) PILOTS shall be imposed as are property taxes and shall bebased on the assessed value of the real property described insubsection (d). Except as provided in subsection (i), the townshipassessor, or the county assessor if there is no township assessor forthe 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 thehousing trust fund established under IC 36-7-15.1-35.5 and used forany purpose for which the housing trust fund may be used.
(h) PILOTS shall be due as set forth in the ordinance and bearinterest, if unpaid, as in the case of other taxes on property. PILOTSshall be treated in the same manner as taxes for purposes of allprocedural and substantive provisions of law.
(i) If the duties of the township assessor have been transferred tothe county assessor as described in IC 6-1.1-1-24, a reference to thetownship assessor in this section is considered to be a reference tothe 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.