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 6929 NOTE PREPARED: Jan 3, 2024
BILL NUMBER: SB 268 BILL AMENDED:
SUBJECT: Eminent Domain for Nonpublic Use.
FIRST AUTHOR: Sen. Vinzant BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill allows a municipality to acquire a parcel of real property by eminent
domain for transfer to a private person for a nonpublic use if certain criteria are satisfied, including
nonpayment of property taxes.
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues: Court Fee Revenue: If additional civil cases occur as a result of a
municipality acquiring real property by eminent domain and court fees are collected, revenue to the state
General Fund will increase. The total revenue per case would range between $100 and $122. The amount
deposited will vary depending on whether the case is filed in a court of record or a municipal court. The
following linked document describes the fees and distribution of the revenue: Court fees imposed in civil,
probate, and small claims cases.
Explanation of Local Expenditures: This bill expands the circumstances under which a municipality can
acquire real property through the eminent domain process. This may potentially increase a municipality’s
costs associated with eminent domain proceedings and increase the likelihood that, after the property has
been acquired, a property owner will bring suit against the municipality. The municipality would be
responsible for reimbursing the property owner for the owner’s reasonable attorney’s fees if the court
determines that the municipality acquired the property incorrectly. The fiscal impact of these provisions will
vary from municipality to municipality and will be contingent on the number of properties a municipality
acquires through this expanded use of eminent domain authority.
SB 268 1 Additionally, the administrative workload for municipal redevelopment commissions and municipal
legislative bodies may increase as a result of this bill’s provisions. The redevelopment commission would
be required to adopt a resolution finding that private ownership of the applicable parcel(s) creates a severe
impediment to the redevelopment and economic goals of the municipality and recommend the acquisition
of the parcel(s) by eminent domain in order to redevelop the property consistent with the municipality's goals.
The municipal legislative body would, then, need to adopt a resolution authorizing the exercise of eminent
domain in order proceed with the process.
Civil Actions – If the number of civil suits filed in Indiana courts increases, there would be an increase in
workload for the courts system. This additional workload is within the system’s routine administrative
functions and should be able to be met with no additional appropriations, assuming near customary agency
staffing and resource levels.
Explanation of Local Revenues: Court Fee Revenue: If additional civil cases occur as a result of a
municipality acquiring real property via eminent domain, revenue will be collected by certain local units. If
the case is filed in a court of record, the county will receive $32 and qualifying municipalities will receive
a share of $3. If the case is filed in a municipal court, the county receives $20, and the municipality will
receive $37. The following linked document describes the fees and distribution of the revenue: Court fees
imposed in civil, probate, and small claims cases.
State Agencies Affected:
Local Agencies Affected: Municipal Legislative Bodies; Municipal Redevelopment Commissions; Trial
courts, city and town courts.
Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: James Johnson, 317-232-9869.
SB 268 2