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 6426 NOTE PREPARED: Feb 5, 2024
BILL NUMBER: SB 61 BILL AMENDED: Feb 5, 2024
SUBJECT: Tourism Improvement Districts.
FIRST AUTHOR: Sen. Holdman BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill provides that a person may circulate a petition to create a
tourism improvement district (district) within the territory of a county, city, or town (local unit) and specifies
the contents of the tourism improvement district plan that must be filed with a petition to establish a district.
This bill provides that, after a hearing on a petition to establish a district, the legislative body of a local unit
may adopt the ordinance establishing the district only if it determines that the petition has been signed by
at least: (1) 65% of the owners within the proposed district that will pay the assessments; and (2) the owners
of 65% of the total net assessed value of the real property within the proposed district that will pay the
assessments. It excludes from inclusion within a district: (1) property that receives a homestead standard
deduction; (2) property used for single family residential housing; and (3) property used for multi-unit
residential housing. It also specifies the contents of the ordinance establishing a district and the length of
time for which a district may exist.
This bill provides that owners located within a district may be charged a special assessment to fund
improvements and other district activities, defines the term "owner", and allows a district to issue bonds. It
requires the county, city, or town legislative body to contract with a nonprofit district management
association to administer and implement the district's activities and improvements. It also requires a district
management association to annually engage an independent certified public accounting firm to conduct an
examination of the district's funds, accounts, and financial affairs and submit the examination to the
legislative body and the fiscal body.
This bill excludes Marion County from the provisions of the bill.
SB 61 1 Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: County Auditors and Clerk Treasurers: The bill’s provisions may
result in an increase in both the administrative workload and financial costs for both auditors and clerk
treasurers, depending on if the tourism improvement district is being proposed for an unincorporated part
of the county or in a municipality, respectively. The auditors and clerk treasurers would serve as the initial
recipient for the petitioner’s request to establish a tourism improvement district. Additionally, the auditors
and clerk treasurers would be tasked with handling the notice for the public hearing on the request, as well
as mailing a copy of the notice to each individual property owner in the proposed district. The actual cost
of the mailing would be dependent on the number of identified property owners in the district.
(Revised) County Councils and City or Town Councils: The bill’s provisions may result in an increase in
both the administrative workload and financial costs for the legislative body of the respective county or city
or town, depending on if the tourism improvement district is being proposed for an unincorporated part of
the county or in a municipality. In addition to the routine administrative function of conducting a public
hearing, the council would have to verify that the petition requesting the proposed district was signed by at
least 65% of the owners within the district that would be subject to paying the special assessment and by the
owners of 65% of the total net assessed value of the real property within the proposed district that will pay
the assessments. Additionally, the council would have to determine - in the ordinance approving the district -
the manner in which the special assessment is to be levied. Furthermore, the legislative body would be tasked
with contracting with a district management association to administer the district. The actual cost of the
contract would likely be dependent on factors such as the number of identified businesses and property
owners in the district and the approved duration of the district.
Additional Information: Any bonds issues on behalf of the district to fund improvement do not constitute an
indebtedness as it pertains to constitutional or statutory debt limitations of the underlying county or
municipal unit in which the district is located.
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected: County auditors; clerk treasurers; county councils; city and town councils.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
SB 61 2