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 6932 NOTE PREPARED: Jan 3, 2024
BILL NUMBER: HB 1212 BILL AMENDED:
SUBJECT: Land Banks.
FIRST AUTHOR: Rep. Rowray BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: Land Bank Boards: The bill makes various changes to the statutes governing land
banks that concern certain land bank powers, objectives, and duties. It provides that a majority of the
directors of a land bank's board must have demonstrated competency in an occupation or discipline that is
relevant to the primary purpose of a land bank.
Land Bank Advisory Committees: The bill provides that a land bank may establish advisory committees
composed of specified community members to consult with and advise the land bank on: (1) properties
within the territory of the land bank that are imposing the greatest harm on residents and neighborhoods; (2)
resident and neighborhood priorities for new uses of land bank properties; and (3) options for potential
transferees of land bank properties.
Interlocal Agreements: The bill provides, subject to certain limitations, that a land bank may use an interlocal
agreement to establish processes to improve the quality of title and marketability of property the land bank
owns to extinguish any liens that exist on the property. It provides that, if a land bank enters into an interlocal
agreement, any employees of an eligible unit who may be contracted to provide staffing services to the land
bank pursuant to the interlocal agreement retain their status as public employees of the eligible unit.
Neighborhood Investment Fee: The bill allows a county to adopt an ordinance requiring a person who wishes
to participate in a tax sale as a bidder to pay a neighborhood investment fee of not more than $150 and
specifies the manner in which neighborhood investment fees collected are to be distributed to land banks.
Additional Property Tax Penalty: The bill allows a county fiscal body in a county in which there is at least
one land bank to adopt an ordinance to impose, in addition to the 5% penalty for delinquent real property
HB 1212 1 taxes, an additional penalty of not more than 3% for a total penalty that may not exceed 8% of the amount
of delinquent real property taxes (additional penalty ordinance). It specifies the manner in which the amounts
collected attributable to an additional penalty imposed on delinquent real property taxes are to be distributed
to land banks.
Recording Fee: The bill allows a county to adopt an ordinance imposing a $15 fee for each document
recorded on a tract located in the territory of a land bank and specifies the manner in which the fee shall be
distributed to land banks.
Tracts with Delinquent Property Taxes: The bill requires a county executive to provide a land bank in the
county with a list of tracts located in the territory of the land bank that: (1) are delinquent on property taxes;
and (2) have been offered for public sale at least two times and remain unsold; on an annual basis. It specifies
that the list must be provided to the land bank within 60 days after the end of the last tax sale for which the
tracts went unsold. It allows the county executive to transfer its interest in a tract on the list to a land bank
if requested by the land bank not later than 90 days after it receives the list.
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: Neighborhood Investment Fee, Additional Property Tax Penalty, and
Recording Fee: In counties that have adopted ordinances, workload could increase for county treasurers to
establish and administer neighborhood investment fee funds and/or to distribute the proceeds to land banks
(semiannually), to distribute the additional delinquent real property tax penalties (quarterly) to land banks,
and to monthly distribute the recording fees to land banks. County treasurers would need to accurately
determine the distribution of funds for counties that have more than one land bank established in the county.
Tracts with Delinquent Property Taxes: The bill could increase workload for county executives to provide
to a land bank in the county a list of tracts located in the territory of the land bank that are delinquent on
property taxes and that have been offered for public sale at least twice and remain unsold, as well as to
transfer their interest in a tract on the list to a land bank if requested by the land bank within 90 days of
receiving the list.
Explanation of Local Revenues: Neighborhood Investment Fee: Revenues could increase for land banks
in counties that have adopted ordinances to establish a neighborhood investment fee of not more than $150
for every person who wishes to participate in a tax sale as a bidder. Land banks are to receive these funds
semiannually. The bill specifies that for counties with more than one land bank, funds are to be distributed
proportionally, based on the population of the land bank territory as compared to the population of the entire
county.
Recording Fees: Revenues could increase for land banks in counties that have adopted ordinances to impose
a $15 fee for each document recorded on a tract located in the territory of a land bank. Land banks are to
receive these funds on a monthly basis.
Additional Property Tax Penalty: Revenues could increase for land banks in counties that have adopted
ordinances to impose an additional penalty (of not more than 3%) for delinquent real property taxes. Land
HB 1212 2 banks are to receive these additional tax penalty funds quarterly. The bill specifies that for counties with
more than one land bank, funds are to be distributed proportionally, based on the population of the land bank
territory as compared to the population of the entire county.
Tracts with Delinquent Property Taxes: Land banks may obtain more property if they request the county
executive to transfer its interest in a tract, within 90 days of receiving the list of tracts that have been offered
twice for public sale and remain unsold. Local units may relinquish rights to delinquent property taxes from
the public sale of properties by transferring their interest in a tract to a land bank. However, if a land bank
is able to restore a tract and sell or lease it, property taxes may be obtained earlier than may have been if the
county had maintained interest in the tract.
State Agencies Affected:
Local Agencies Affected: County and municipal units of local government; Land banks.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
HB 1212 3