Bill Text: IN SB0026 | 2011 | Regular Session | Enrolled
Bill Title: Local government reorganization and merger.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2011-05-18 - Effective 07/01/2011 [SB0026 Detail]
Download: Indiana-2011-SB0026-Enrolled.html
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AN ACT to amend the Indiana Code concerning local government.
(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;
(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 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 of a political
subdivision described in subsection (a).
(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 transfer, combination, or
sharing of powers, duties, functions, or resources 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.
The fiscal body of the 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
under this section. The amount of any adjustment accepted by a
political subdivision under this section must comply with the
agreement under this chapter under which the political subdivision
transfers, combines, or shares powers, duties, functions, or
resources.
(1) the political subdivision combines or reorganizes a department, agency, or function of the political subdivision;
(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 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 of a political subdivision described in subsection (a).
(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.
(D) Ten percent (10%) in the fourth year of the adjustment
and thereafter.
The fiscal body of the 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
under this section.
(1) savings;
(2) reduction in the reasonably foreseeable expenses that would otherwise
(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
(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 fifty
percent (50%) 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.
The fiscal body of the 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
under this section.
(d) The amount of any adjustment accepted by a political
subdivision under this section must comply with the reorganization
agreement under which the political subdivision is reorganized
under this article.
(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 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 the new township realizes through a merger under this chapter a:
(1) savings; or
(2) reduction in the reasonably foreseeable expenses that would otherwise have been incurred by the political subdivision if the merger had not taken place.
(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.
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 under this section.
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