Bill Text: IN SB0222 | 2012 | Regular Session | Introduced
Bill Title: Annexation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-04 - First reading: referred to Committee on Local Government [SB0222 Detail]
Download: Indiana-2012-SB0222-Introduced.html
Citations Affected: IC 6-1.1-18.5-3; IC 36-4-3-13.
Synopsis: Annexation. Provides that in determining a municipality's
levy limits for a particular ensuing calendar year, the cap on increased
assessed value applies to all annexations of a municipality occurring in
the particular ensuing calendar year. Provides that after June 30, 2012,
an annexation may be defeated without showing at the hearing that: (1)
at least 65% of the owners of land in the annexation territory continue
to oppose the annexation; or (2) the owners of more than 75% in
assessed valuation of the land in the annexation territory continue to
oppose the annexation. Provides that after June 30, 2012, in an
annexation in which 80% of the boundary of the annexation territory
is contiguous to the municipality and the territory consists of not more
than 100 parcels, an annexation may be defeated without showing at
the hearing that at least 75% of the owners of land in the annexation
territory continue to oppose the annexation.
Effective: Upon passage; July 1, 2012.
January 4, 2012, read first time and referred to Committee on Local Government.
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A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
STEP ONE: Determine the civil taxing unit's maximum permissible ad valorem property tax levy for the preceding calendar year.
STEP TWO: Multiply the amount determined in STEP ONE by the amount determined in the last STEP of section 2(b) of this chapter.
STEP THREE: Determine the lesser of:
(A) one and fifteen hundredths (1.15); or
(B) the quotient (rounded to the nearest ten-thousandth (0.0001)), of the assessed value of all taxable property subject to the civil taxing unit's ad valorem property tax levy for the ensuing calendar year, divided by the assessed value of all
taxable property that is subject to the civil taxing unit's ad
valorem property tax levy for the ensuing calendar year and
that is contained within the geographic area that was subject
to the civil taxing unit's ad valorem property tax levy in the
preceding calendar year.
In the case of an increase in assessed value that results from
annexation, the result of this STEP for purposes of
determining the ad valorem property tax levy of a civil taxing
unit for a particular ensuing calendar year may not exceed
one and fifteen-hundredths (1.15), regardless of whether the
increase in assessed value resulted from only one (1)
annexation or from more than one (1) annexation.
STEP FOUR: Determine the greater of the amount determined in
STEP THREE or one (1).
STEP FIVE: Multiply the amount determined in STEP TWO by
the amount determined in STEP FOUR.
STEP SIX: Add the amount determined under STEP TWO to the
amount of an excessive levy appeal granted under section 13 of
this chapter for the ensuing calendar year.
STEP SEVEN: Determine the greater of STEP FIVE or STEP
SIX.
(b) This subsection applies only to property taxes first due and
payable after December 31, 2007. This subsection applies only to a
civil taxing unit that is located in a county for which a county adjusted
gross income tax rate is first imposed or is increased in a particular
year under IC 6-3.5-1.1-24 or a county option income tax rate is first
imposed or is increased in a particular year under IC 6-3.5-6-30.
Notwithstanding any provision in this section or any other section of
this chapter and except as provided in subsection (c), the maximum
permissible ad valorem property tax levy calculated under this section
for the ensuing calendar year for a civil taxing unit subject to this
section is equal to the civil taxing unit's maximum permissible ad
valorem property tax levy for the current calendar year.
(c) This subsection applies only to property taxes first due and
payable after December 31, 2007. In the case of a civil taxing unit that:
(1) is partially located in a county for which a county adjusted
gross income tax rate is first imposed or is increased in a
particular year under IC 6-3.5-1.1-24 or a county option income
tax rate is first imposed or is increased in a particular year under
IC 6-3.5-6-30; and
(2) is partially located in a county that is not described in
subdivision (1);
the department of local government finance shall, notwithstanding subsection (b), adjust the portion of the civil taxing unit's maximum permissible ad valorem property tax levy that is attributable (as determined by the department of local government finance) to the county or counties described in subdivision (2). The department of local government finance shall adjust this portion of the civil taxing unit's maximum permissible ad valorem property tax levy so that, notwithstanding subsection (b), this portion is allowed to increase as otherwise provided in this section. If the department of local government finance increases the civil taxing unit's maximum permissible ad valorem property tax levy under this subsection, any additional property taxes imposed by the civil taxing unit under the adjustment shall be paid only by the taxpayers in the county or counties described in subdivision (2).
(1) The requirements of either subsection (b) or (c).
(2) The requirements of subsection (d).
(b) The requirements of this subsection are met if the evidence establishes the following:
(1) That the territory sought to be annexed is contiguous to the municipality.
(2) One (1) of the following:
(A) The resident population density of the territory sought to be annexed is at least three (3) persons per acre.
(B) Sixty percent (60%) of the territory is subdivided.
(C) The territory is zoned for commercial, business, or industrial uses.
(c) The requirements of this subsection are met if the evidence establishes the following:
(1) That the territory sought to be annexed is contiguous to the municipality as required by section 1.5 of this chapter, except that at least one-fourth (1/4), instead of one-eighth (1/8), of the aggregate external boundaries of the territory sought to be annexed must coincide with the boundaries of the municipality.
(2) That the territory sought to be annexed is needed and can be used by the municipality for its development in the reasonably near future.
(d) The requirements of this subsection are met if the evidence establishes that the municipality has developed and adopted a written fiscal plan and has established a definite policy, by resolution of the legislative body as set forth in section 3.1 of this chapter. The fiscal plan must show the following:
(1) The cost estimates of planned services to be furnished to the territory to be annexed. The plan must present itemized estimated costs for each municipal department or agency.
(2) The method or methods of financing the planned services. The plan must explain how specific and detailed expenses will be funded and must indicate the taxes, grants, and other funding to be used.
(3) The plan for the organization and extension of services. The plan must detail the specific services that will be provided and the dates the services will begin.
(4) That planned services of a noncapital nature, including police protection, fire protection, street and road maintenance, and other noncapital services normally provided within the corporate boundaries, will be provided to the annexed territory within one (1) year after the effective date of annexation and that they will be provided in a manner equivalent in standard and scope to those noncapital services provided to areas within the corporate boundaries regardless of similar topography, patterns of land use, and population density.
(5) That services of a capital improvement nature, including street construction, street lighting, sewer facilities, water facilities, and stormwater drainage facilities, will be provided to the annexed territory within three (3) years after the effective date of the annexation in the same manner as those services are provided to areas within the corporate boundaries, regardless of similar topography, patterns of land use, and population density, and in a manner consistent with federal, state, and local laws, procedures, and planning criteria.
(e) At the hearing under section 12 of this chapter, the court shall do the following:
(1) Consider evidence on the conditions listed in subdivision (2).
(2) Order a proposed annexation not to take place if the court finds that all of the conditions set forth in clauses (A) through (D) and, if applicable, clause (E) exist in the territory proposed to be annexed:
(A) The following services are adequately furnished by a provider other than the municipality seeking the annexation:
(i) Police and fire protection.
(ii) Street and road maintenance.
(B) The annexation will have a significant financial impact on the residents or owners of land.
(C) The annexation is not in the best interests of the owners of land in the territory proposed to be annexed as set forth in subsection
(D) One (1) of the following opposes the annexation:
(i) At least sixty-five percent (65%) of the owners of land in the territory proposed to be annexed.
(ii) The owners of more than seventy-five percent (75%) in assessed valuation of the land in the territory proposed to be annexed.
Evidence of opposition may be expressed by any owner of land in the territory proposed to be annexed.
(E) This clause applies only to an annexation in which eighty percent (80%) of the boundary of the territory proposed to be annexed is contiguous to the municipality and the territory consists of not more than one hundred (100) parcels. At least seventy-five percent (75%) of the owners of land in the territory proposed to be annexed oppose the annexation as determined under section 11(b) of this chapter.
This subsection expires July 1, 2012.
(f) This subsection applies to an annexation pending after June 30, 2012. At the hearing under section 12 of this chapter, the court shall do the following:
(1) Consider evidence on the conditions listed in subdivision (2).
(2) Order a proposed annexation not to take place if the court finds that all of the following conditions set forth in clauses (A) through (C) exist in the territory proposed to be annexed:
(A) The following services are adequately furnished by a provider other than the municipality seeking the annexation:
(i) Police and fire protection.
(ii) Street and road maintenance.
(B) The annexation will have a significant financial impact on the residents or owners of land.
(C) The annexation is not in the best interests of the owners of land in the territory proposed to be annexed as set forth in subsection (g).
of proving that the annexation is in the best interests of the owners of
land in the territory proposed to be annexed. In determining this issue,
the court may consider whether the municipality has extended sewer or
water services to the entire territory to be annexed:
(1) within the three (3) years preceding the date of the
introduction of the annexation ordinance; or
(2) under a contract in lieu of annexation entered into under
IC 36-4-3-21.
The court may not consider the provision of water services as a result
of an order by the Indiana utility regulatory commission to constitute
the provision of water services to the territory to be annexed.
(g) (h) This subsection applies only to cities located in a county
having a population of more than two hundred fifty thousand (200,000)
(250,000) but less than three two hundred seventy thousand (300,000).
(270,000). However, this subsection does not apply if on April 1, 1993,
the entire boundary of the territory that is proposed to be annexed was
contiguous to territory that was within the boundaries of one (1) or
more municipalities. At the hearing under section 12 of this chapter,
the court shall do the following:
(1) Consider evidence on the conditions listed in subdivision (2).
(2) Order a proposed annexation not to take place if the court
finds that all of the following conditions exist in the territory
proposed to be annexed:
(A) The following services are adequately furnished by a
provider other than the municipality seeking the annexation:
(i) Police and fire protection.
(ii) Street and road maintenance.
(B) The annexation will have a significant financial impact on
the residents or owners of land.
(C) One (1) of the following opposes the annexation:
(i) A majority of the owners of land in the territory proposed
to be annexed.
(ii) The owners of more than seventy-five percent (75%) in
assessed valuation of the land in the territory proposed to be
annexed.
Evidence of opposition may be expressed by any owner of land
in the territory proposed to be annexed.
(h) (i) The most recent:
(1) federal decennial census;
(2) federal special census;
(3) special tabulation; or
(4) corrected population count;
shall be used as evidence of resident population density for purposes of subsection (b)(2)(A), but this evidence may be rebutted by other evidence of population density.
