LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7030 NOTE PREPARED: Mar 3, 2022
BILL NUMBER: HB 1262 BILL AMENDED: Feb 28, 2022
SUBJECT: Outdoor Advertising Signs.
FIRST AUTHOR: Rep. Cherry BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Crider
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
(1) Establishes procedures for the valuation of an outdoor advertising sign (sign) that cannot be elevated or
relocated to a conforming location within the market area due to a change along the interstate and primary
system or any other highway.
(2) Requires the Indiana Department of Transportation (INDOT) to provide written notice to the
representative of a sign owner that a project has been planned that may impact the sign at least 12 months
prior to the filing of an eminent domain action for the sign.
(3) Provides that an owner is entitled to full and just compensation for the taking of a sign in the amount of
the fair market value of the interests associated with the sign.
(4) In Marion County, allows the: (a) board of directors (board) of an agricultural fair society, association,
or corporation; or (b) the county legislative body; that owns or operates a county fairgrounds to place one
digital billboard at a location on the county fairgrounds selected by the board.
Effective Date: July 1, 2022.
Explanation of State Expenditures: Summary - For each billboard that is considered a total taking under
the bill, State Highway Fund expenditures will increase to provide full and just compensation for each
affected billboard. Depending on the type of billboard affected, at a minimum, this bill will increase State
Highway Fund expenditures between $2,000 and $30,000 per affected sign.
Additional Information - INDOT reports that between FY 2016 and FY 2021, an average of 15 billboards
are affected by construction each year where these billboards were either relocated or raised. Requiring
HB 1262 1 INDOT to provide notification to sign owners is expected to have a minimal impact on agency workload.
Depending on the type of advertising sign erected, the costs to construct an advertising sign are estimated
to be between $2,000 and $10,000 for a standard billboard and between $20,000 and $30,000 for a digital
billboard. Additionally, billboard owners can expect to receive, on average, between $1,500 to $5,500 in
lease revenue per month for a standard billboard and between $3,000 to $7,000 per month for a digital
billboard in Indianapolis. Actual monthly lease revenue for each type of billboard will ultimately depend on
the billboard’s geographic market and out-of-home rating.
For each billboard INDOT is required to replace under the bill’s provisions, which is determined by fair
market value of the outdoor sign as well as leasehold interest and access rights, INDOT could be required
to pay at least $2,000 to $10,000 for each standard billboard and between $20,000 and $30,000 for each
digital billboard that is affected by the bill. These costs could increase above these ranges to the extent
foregone lease revenue is included in the calculation.
Explanation of State Revenues: Court Fee Revenue: To the extent this bill increases court filings
concerning compensation for relocated billboards, state revenue from court fees would increase. A civil costs
fee of $100 would be assessed when a civil case is filed. If additional civil actions occur and court fees are
collected, revenue to the state General Fund may increase. A portion of the fee revenue is deposited into the
State User Fee Fund.
Additional fees may be collected at the discretion of the judge and depending upon the particular type of
case.
Explanation of Local Expenditures: The bill could increase local government workload to revise zoning
ordinances in conformity with the relocation of an outdoor advertising sign. Increases in workload are
expected to be minimal.
The Marion County board of an agricultural fair society, association, or corporation or county legislative
body that owns or operates a county fairgrounds may experience minimal workload increase if they choose
to place a digital billboard on the fairground property. At least 90 days before installing the digital billboard,
they must provide written notice to the county and municipality legislative bodies, as well as to a plan
commission if the property is within its jurisdiction, and hold a public hearing in which they receive public
comment regarding the digital billboard.
Explanation of Local Revenues: Court Fee Revenue: If additional civil actions occur and court fees are
collected, local governments would receive additional revenue from both a portion of the civil costs fee and
other fees that would be collected.
Personal property taxes apply for outdoor advertising signs based on the sign size and illumination.
Additionally, the owner of the real property of the county fairgrounds will receive any revenue from a lease
of the property to the digital billboard's owner for the placement of the digital billboard on the property.
State Agencies Affected: INDOT.
Local Agencies Affected: Trial courts, city and town courts, Marion County fairgrounds owner/operator.
Information Sources: https://fitsmallbusiness.com/how-much-does-billboard-advertising-cost/; Andrea
HB 1262 2 Zimmerman, INDOT.
Fiscal Analyst: Bill Brumbach, 317-232-9559; Heather Puletz, 317-234-9484; Karen Rossen,
317-234-2106.
HB 1262 3