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 6364 NOTE PREPARED: Jan 20, 2022
BILL NUMBER: SB 73 BILL AMENDED:
SUBJECT: Annexation.
FIRST AUTHOR: Sen. Boots BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill provides, with certain exceptions, that the following apply to annexations
for which an annexation ordinance is adopted after March 31, 2022:
(1) To proceed with an annexation initiated by the municipality, the municipality must file a petition
with the court signed by:
(A) at least 51% of the owners of non-tax exempt land; or
(B) the owners of at least 75% in assessed valuation of non-tax exempt land;
in the annexation territory.
(2) If the petition has enough signatures, the court must hold a hearing to review the annexation.
(3) The bill adds provisions regarding the validity of signatures.
(4) It eliminates remonstrances and reimbursement of remonstrator's attorney's fees and costs.
(5) It voids remonstrance waivers.
(6) It eliminates provisions regarding contiguity of a public highway and that prohibit an annexation
from taking effect in the year before a federal decennial census is conducted. It voids a settlement
agreement in lieu of annexation executed after March 31, 2022.
(7) The bill also eliminates the requirement that a municipality adopt a fiscal plan if the annexation
is petitioned for by 100% of the owners of land within the annexation territory.
Effective Date: Upon passage.
Explanation of State Expenditures:
Explanation of State Revenues: Remonstrances against annexations are eliminated by the bill, which may
result in fewer filings in circuit and superior courts and reduced revenue from court fees to the state General
SB 73 1 Fund.
Additional Information - In a municipal-initiated annexation, the municipality will file its petition with the
court. Civil action filing fees are not applicable to an action brought by the political subdivision.
Explanation of Local Expenditures: The bill will have an indeterminate impact on the municipal cost of
annexation based on the type of annexation (voluntary or municipal-initiated) undertaken after March 31,
2022. For example, a municipality would no longer have authority to collect signatures for a voluntary
annexation, but it would have authority to collect petition signatures for a municipal-initiated annexation.
Municipalities would no longer be required to adopt fiscal plans for voluntary annexations petitioned by
100% of the landowners.
Court caseload may be impacted with a change from court cases involving remonstrances to the court
approving municipal petitions for annexation and hearings on annexations, or on denied voluntary
annexations. Additionally, the $37,500 of attorney’s fees that may be awarded by the court to a successful
remonstrator from the municipality is eliminated under the bill.
Explanation of Local Revenues: A waiver of the right of remonstrance is void for annexations ordinances
adopted after March 31, 2022, and the revenue from the fee charged by the county recorder to record the
waiver on the title will be reduced.
State Agencies Affected:
Local Agencies Affected: Municipalities, circuit and superior courts, taxing units.
Information Sources:
Fiscal Analyst: Heather Puletz, 317-234-9484; Karen Rossen, 317-234-2106.
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