Indiana 2025 Regular Session

Indiana House Bill HB1473 Compare Versions

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1-*HB1473.1*
2-February 4, 2025
1+
2+Introduced Version
33 HOUSE BILL No. 1473
44 _____
5-DIGEST OF HB 1473 (Updated February 4, 2025 11:00 am - DI 116)
6-Citations Affected: IC 36-4.
5+DIGEST OF INTRODUCED BILL
6+Citations Affected: IC 36-4-3.
77 Synopsis: Pocket annexations. Allows a municipality to annex
8-unincorporated property that becomes completely surrounded by the
9-municipality after June 30, 2025. Requires the municipality to: (1)
10-adopt an annexation fiscal plan; (2) provide notice to landowners in the
11-territory; and (3) hold a public hearing. Provides that the following
12-apply in a pocket annexation: (1) The annexation territory may be
13-divided by railroad tracks. (2) The annexation territory satisfies the
14-contiguity requirements, if the territory on at least one side of the
15-railroad tracks is contiguous to the municipality.
8+unincorporated property that is completely surrounded by the
9+municipality. Requires the municipality to: (1) adopt an annexation
10+fiscal plan; (2) provide notice to landowners in the territory; and (3)
11+hold a public hearing.
1612 Effective: July 1, 2025.
1713 Steuerwald
1814 January 21, 2025, read first time and referred to Committee on Local Government.
19-February 4, 2025, amended, reported — Do Pass.
20-HB 1473—LS 7649/DI 87 February 4, 2025
15+2025 IN 1473—LS 7649/DI 87 Introduced
2116 First Regular Session of the 124th General Assembly (2025)
2217 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
2318 Constitution) is being amended, the text of the existing provision will appear in this style type,
2419 additions will appear in this style type, and deletions will appear in this style type.
2520 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
2621 provision adopted), the text of the new provision will appear in this style type. Also, the
2722 word NEW will appear in that style type in the introductory clause of each SECTION that adds
2823 a new provision to the Indiana Code or the Indiana Constitution.
2924 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
3025 between statutes enacted by the 2024 Regular Session of the General Assembly.
3126 HOUSE BILL No. 1473
3227 A BILL FOR AN ACT to amend the Indiana Code concerning local
3328 government.
3429 Be it enacted by the General Assembly of the State of Indiana:
3530 1 SECTION 1. IC 36-4-3-1.7, AS AMENDED BY P.L.70-2022,
3631 2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3732 3 JULY 1, 2025]: Sec. 1.7. (a) This section applies only to an annexation
3833 4 ordinance adopted after June 30, 2015. This section does not apply to
3934 5 an annexation under section 3.7 or 5.1 of this chapter.
4035 6 (b) Not earlier than six (6) months before a municipality introduces
4136 7 an annexation ordinance, the municipality shall conduct an outreach
4237 8 program to inform citizens regarding the proposed annexation. For an
4338 9 annexation under section 3 or 4 of this chapter, the outreach program
4439 10 must conduct at least six (6) public information meetings regarding the
4540 11 proposed annexation. For an annexation under section 5 or 5.2 of this
4641 12 chapter, the outreach program must conduct at least three (3) public
4742 13 information meetings regarding the proposed annexation. The public
4843 14 information meetings must provide citizens with the following
4944 15 information:
5045 16 (1) Maps showing the proposed boundaries of the annexation
5146 17 territory.
52-HB 1473—LS 7649/DI 87 2
47+2025 IN 1473—LS 7649/DI 87 2
5348 1 (2) Proposed plans for extension of capital and noncapital
5449 2 services in the annexation territory, including proposed dates of
5550 3 extension. In the case of an annexation under section 5.2 of this
5651 4 chapter, a copy of the preliminary written fiscal plan.
5752 5 (3) Expected fiscal impact on taxpayers in the annexation
5853 6 territory, including any increase in taxes and fees.
5954 7 (c) The municipality shall provide notice of the dates, times, and
6055 8 locations of the outreach program meetings. The municipality shall
6156 9 publish the notice of the meetings under IC 5-3-1, including the date,
6257 10 time, and location of the meetings, except that notice must be published
6358 11 not later than thirty (30) days before the date of each meeting. The
6459 12 municipality shall also send notice to each owner of land within the
6560 13 annexation territory not later than thirty (30) days before the date of the
6661 14 first meeting of the outreach program. The notice to landowners shall
6762 15 be sent by first class mail, certified mail with return receipt requested,
6863 16 or any other means of delivery that includes a return receipt and must
6964 17 include the following information:
7065 18 (1) The notice must inform the landowner that the municipality is
7166 19 proposing to annex territory that includes the landowner's
7267 20 property.
7368 21 (2) The municipality is conducting an outreach program for the
7469 22 purpose of providing information to landowners and the public
7570 23 regarding the proposed annexation.
7671 24 (3) The date, time, and location of the meetings to be conducted
7772 25 under the outreach program.
7873 26 (d) The notice shall be sent to the address of the landowner as listed
7974 27 on the tax duplicate. If the municipality provides evidence that the
8075 28 notice was sent:
8176 29 (1) by certified mail, with return receipt requested or any other
8277 30 means of delivery that includes a return receipt; and
8378 31 (2) in accordance with this section;
8479 32 it is not necessary that the landowner accept receipt of the notice. If a
8580 33 remonstrance is filed under section 11 of this chapter, the municipality
8681 34 shall file with the court proof that notices were sent to landowners
8782 35 under this section and proof of publication.
8883 36 (e) The notice required under this section is in addition to any notice
8984 37 required under sections 2.1 and 2.2 of this chapter.
9085 38 SECTION 2. IC 36-4-3-2.2, AS AMENDED BY P.L.70-2022,
9186 39 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9287 40 JULY 1, 2025]: Sec. 2.2. (a) This section does not apply to an
9388 41 annexation under section 4(a)(2), 4(a)(3), 4(b), or 4(h) of this chapter
9489 42 or an annexation described in section 5.1 of this chapter.
95-HB 1473—LS 7649/DI 87 3
90+2025 IN 1473—LS 7649/DI 87 3
9691 1 (b) Before a municipality may annex territory, the municipality shall
9792 2 provide written notice of the hearing required under section 2.1 of this
9893 3 chapter. Except as provided in subsections (f) and (g), the notice must
9994 4 be sent by:
10095 5 (1) certified mail, return receipt requested; or
10196 6 (2) any other means of delivery that includes a return receipt;
10297 7 at least sixty (60) days before the date of the hearing to each owner of
10398 8 real property, as shown on the county auditor's current tax list, whose
10499 9 real property is located within the territory proposed to be annexed.
105100 10 (c) For purposes of an annexation of territory described in section
106101 11 2.5 of this chapter, if the hearing required under section 2.1 of this
107102 12 chapter is conducted after June 30, 2010, the notice required by this
108103 13 section must also be sent to each owner of real property, as shown on
109104 14 the county auditor's current tax list, whose real property is adjacent to
110105 15 contiguous areas of rights-of-way of the public highway that are only
111106 16 included in the annexation of territory by operation of section 2.5 of
112107 17 this chapter on the side of the public highway that is not part of the
113108 18 annexed territory.
114109 19 (d) The notice required by this section must include the following:
115110 20 (1) A legal description of the real property proposed to be
116111 21 annexed.
117112 22 (2) The date, time, location, and subject of the hearing.
118113 23 (3) A map showing the current municipal boundaries and the
119114 24 proposed municipal boundaries.
120115 25 (4) Current zoning classifications for the area proposed to be
121116 26 annexed and any proposed zoning changes for the area proposed
122117 27 to be annexed.
123118 28 (5) A detailed summary of the fiscal plan, described in section 13
124119 29 of this chapter, if applicable.
125120 30 (6) The location where the public may inspect and copy the fiscal
126121 31 plan, if applicable.
127122 32 (7) A statement that the municipality will provide a copy of the
128123 33 fiscal plan, if applicable, after the fiscal plan is adopted
129124 34 immediately to any landowner in the annexed territory who
130125 35 requests a copy.
131126 36 (8) The name and telephone number of a representative of the
132127 37 municipality who may be contacted for further information.
133128 38 (e) If the municipality complies with this section, the notice is not
134129 39 invalidated if the owner does not receive the notice.
135130 40 (f) This subsection applies to an annexation under section 3 or 4 of
136131 41 this chapter in which all property owners within the area to be annexed
137132 42 provide written consent to the annexation. The written notice described
138-HB 1473—LS 7649/DI 87 4
133+2025 IN 1473—LS 7649/DI 87 4
139134 1 in this section must be sent by:
140135 2 (1) certified mail, return receipt requested; or
141136 3 (2) any other means of delivery that includes a return receipt;
142137 4 not later than twenty (20) days before the date of the hearing to each
143138 5 owner of real property, as shown on the county auditor's current tax list,
144139 6 whose real property is located within the territory proposed to be
145140 7 annexed.
146141 8 (g) This subsection applies to an annexation under section 3.7 or 5.2
147142 9 of this chapter. The written notice described in this section must be sent
148143 10 by:
149144 11 (1) certified mail, return receipt requested; or
150145 12 (2) any other means of delivery that includes a return receipt;
151146 13 not later than thirty (30) days before the date of the hearing to each
152147 14 owner of real property, as shown on the county auditor's current tax list,
153148 15 whose real property is located within the territory proposed to be
154149 16 annexed.
155150 17 SECTION 3. IC 36-4-3-3.1, AS AMENDED BY P.L.70-2022,
156151 18 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
157152 19 JULY 1, 2025]: Sec. 3.1. (a) This section does not apply to an
158153 20 annexation under section 4(a)(2), 4(a)(3), 4(b), 4(h), or 4.1 of this
159154 21 chapter.
160155 22 (b) A municipality shall develop and adopt a written fiscal plan and
161156 23 establish a definite policy by resolution of the legislative body that
162157 24 meets the requirements set forth in section 13 of this chapter.
163158 25 (c) Except as provided in subsection (d) and section 5.2 of this
164159 26 chapter, the municipality shall establish and adopt the written fiscal
165160 27 plan before mailing the notification to landowners in the territory
166161 28 proposed to be annexed under section 2.2 of this chapter.
167162 29 (d) In an annexation under section 3.7, 5, or 5.1 of this chapter, the
168163 30 municipality shall establish and adopt the written fiscal plan before
169164 31 adopting the annexation ordinance.
170165 32 SECTION 4. IC 36-4-3-3.7 IS ADDED TO THE INDIANA CODE
171166 33 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
172167 34 1, 2025]: Sec. 3.7. (a) This section applies to an annexation, if the
173-35 annexation territory becomes surrounded on all sides by the
174-36 municipality after June 30, 2025.
175-37 (b) A municipality may annex territory by adopting an
176-38 annexation ordinance under section 3 or 4 of this chapter after
177-39 complying with sections 2.1 and 2.2 of this chapter.
178-40 (c) Notwithstanding any other provision of this chapter, if a
179-41 proposed annexation territory consists of:
180-42 (1) land that:
181-HB 1473—LS 7649/DI 87 5
182-1 (A) is contiguous to the municipality under section 1.5 of
183-2 this chapter; and
184-3 (B) abuts, at least in part, one (1) side of railroad tracks
185-4 and the railroad right-of-way; and
186-5 (2) land:
187-6 (A) that is not contiguous to the municipality under section
188-7 1.5 of this chapter; and
189-8 (B) that:
190-9 (i) is separated from the land under subdivision (1) by;
191-10 and
192-11 (ii) abuts, at least in part, the opposite side of;
193-12 the railroad tracks and railroad right-of-way described in
194-13 subdivision (1)(B);
195-14 the proposed annexation territory satisfies the contiguity
196-15 requirements under section 1.5 of this chapter. The annexing
197-16 municipality is not required to obtain the consent of any person
198-17 owning, leasing, operating, or using the railroad tracks or railroad
199-18 right-of-way to annex the proposed territory.
200-19 SECTION 5. IC 36-4-3-7, AS AMENDED BY THE TECHNICAL
201-20 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
202-21 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
203-22 Sec. 7. (a) After an ordinance is adopted under section 3, 3.7, 4, 5, 5.1,
204-23 or 5.2 of this chapter, it must be published in the manner prescribed by
205-24 IC 5-3-1. Except as provided in subsection (b), (c), or (e), in the
206-25 absence of remonstrance and appeal under section 11 or 15.5 of this
207-26 chapter, the ordinance takes effect at least ninety (90) days after its
208-27 publication and upon the filing required by section 22(a) of this
209-28 chapter.
210-29 (b) For the purposes of this section, territory that has been:
211-30 (1) added to an existing fire protection district under
212-31 IC 36-8-11-11; or
213-32 (2) approved by ordinance of the county legislative body to be
214-33 added to an existing fire protection district under IC 36-8-11-11,
215-34 notwithstanding that the territory's addition to the fire protection
216-35 district has not yet taken effect;
217-36 shall be considered a part of the fire protection district as of the date
218-37 that the fire protection district was originally established.
219-38 (c) This subsection applies only to a fire protection district
220-39 established after July 1, 1987. This subsection does not apply to an
221-40 annexation under subsection (g). (f). Whenever a municipality annexes
222-41 territory, all or part of which lies within a fire protection district
223-42 (IC 36-8-11), the annexation ordinance (in the absence of remonstrance
224-HB 1473—LS 7649/DI 87 6
225-1 and appeal under section 11 or 15.5 of this chapter) takes effect the
226-2 second January 1 that follows the date the ordinance is adopted and
227-3 upon the filing required by section 22(a) of this chapter. The
228-4 municipality shall:
229-5 (1) provide fire protection to that territory beginning the date the
230-6 ordinance is effective; and
231-7 (2) send written notice to the fire protection district of the date the
232-8 municipality will begin to provide fire protection to the annexed
233-9 territory within ten (10) days of the date the ordinance is adopted.
234-10 (d) This subsection applies only to a fire protection district
235-11 established after July 1, 1987. This subsection does not apply to an
236-12 annexation under subsection (g). (f). If the fire protection district from
237-13 which a municipality annexes territory is indebted or has outstanding
238-14 unpaid bonds or other obligations at the time the annexation is
239-15 effective, the municipality is liable for and shall pay that indebtedness
240-16 in the same ratio as the assessed valuation of the property in the
241-17 annexed territory (that is part of the fire protection district) bears to the
242-18 assessed valuation of all property in the fire protection district, as
243-19 shown by the most recent assessment for taxation before the
244-20 annexation, unless the assessed property within the municipality is
245-21 already liable for the indebtedness. The annexing municipality shall
246-22 pay its indebtedness under this section to the board of fire trustees. If
247-23 the indebtedness consists of outstanding unpaid bonds or notes of the
248-24 fire protection district, the payments to the board of fire trustees shall
249-25 be made as the principal or interest on the bonds or notes becomes due.
250-26 (e) This subsection applies to an annexation initiated by property
251-27 owners under section 5.1 of this chapter in which all property owners
252-28 within the area to be annexed petition the municipality to be annexed.
253-29 Subject to subsection (c), and in the absence of an appeal under section
254-30 15.5 of this chapter, an annexation ordinance takes effect at least thirty
255-31 (30) days after its publication and upon the filing required by section
256-32 22(a) of this chapter.
257-33 (f) Whenever a municipality annexes territory that lies within a fire
258-34 protection district that has a total net assessed value (as determined by
259-35 the county auditor) of more than one billion dollars ($1,000,000,000)
260-36 on the date the annexation ordinance is adopted:
261-37 (1) the annexed area shall remain a part of the fire protection
262-38 district after the annexation takes effect; and
263-39 (2) the fire protection district shall continue to provide fire
264-40 protection services to the annexed area.
265-41 The municipality shall not tax the annexed territory for fire protection
266-42 services. The annexing municipality shall establish a special fire fund
267-HB 1473—LS 7649/DI 87 7
268-1 for all fire protection services that are provided by the municipality
269-2 within the area of the municipality that is not within the fire protection
270-3 district, and which shall not be assessed to the annexed special taxing
271-4 district. The annexed territory that lies within the fire protection district
272-5 shall continue to be part of the fire protection district special taxing
273-6 district.
274-7 SECTION 6. IC 36-4-3-8 IS AMENDED TO READ AS FOLLOWS
275-8 [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) This section does not apply
276-9 to an ordinance adopted under section 3.7, 5, or 5.1 of this chapter.
277-10 (b) An ordinance adopted under section 3 or 4 of this chapter must
278-11 include terms and conditions fairly calculated to make the annexation
279-12 equitable to the property owners and residents of the municipality and
280-13 the annexed territory. The terms and conditions may include:
281-14 (1) postponing the effective date of the annexation for not more
282-15 than three (3) years; and
283-16 (2) establishing equitable provisions for the future management
284-17 and improvement of the annexed territory and for the rendering of
285-18 needed services.
286-19 (c) This subsection applies to territory sought to be annexed that
287-20 meets all of the following requirements:
288-21 (1) The resident population density of the territory is at least three
289-22 (3) persons per acre.
290-23 (2) The territory is subdivided or is parceled through separate
291-24 ownerships into lots or parcels such that at least sixty percent
292-25 (60%) of the total number of lots and parcels are not more than
293-26 one (1) acre.
294-27 This subsection does not apply to an ordinance annexing territory
295-28 described in section 4(a)(2), 4(a)(3), 4(b), or 4(h) of this chapter. The
296-29 ordinance must include terms and conditions impounding in a special
297-30 fund all of the municipal property taxes imposed on the annexed
298-31 territory after the annexation takes effect that are not used to meet the
299-32 basic services described in section 13(d)(4) and 13(d)(5) of this chapter
300-33 for a period of at least three (3) years. The impounded property taxes
301-34 must be used to provide additional services that were not specified in
302-35 the plan of annexation. The impounded property taxes in the fund shall
303-36 be expended as set forth in this section, not later than five (5) years
304-37 after the annexation becomes effective.
305-38 SECTION 7. IC 36-4-3-13, AS AMENDED BY P.L.70-2022,
306-39 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
307-40 JULY 1, 2025]: Sec. 13. (a) Except as provided in subsection (e), at the
308-41 hearing under section 12 of this chapter, the court shall order a
309-42 proposed annexation to take place if the following requirements are
310-HB 1473—LS 7649/DI 87 8
311-1 met:
312-2 (1) The requirements of either subsection (b) or (c).
313-3 (2) The requirements of subsection (d).
314-4 (3) The requirements of subsection (i).
315-5 (b) The requirements of this subsection are met if the evidence
316-6 establishes the following:
317-7 (1) That the territory sought to be annexed is contiguous to the
318-8 municipality.
319-9 (2) One (1) of the following:
320-10 (A) The resident population density of the territory sought to
321-11 be annexed is at least three (3) persons per acre.
322-12 (B) Sixty percent (60%) of the territory is subdivided.
323-13 (C) The territory is zoned for commercial, business, or
324-14 industrial uses.
325-15 (c) The requirements of this subsection are met if the evidence
326-16 establishes one (1) of the following:
327-17 (1) That the territory sought to be annexed is:
328-18 (A) contiguous to the municipality as required by section 1.5
329-19 of this chapter, except that at least one-fourth (1/4), instead of
330-20 one-eighth (1/8), of the aggregate external boundaries of the
331-21 territory sought to be annexed must coincide with the
332-22 boundaries of the municipality; and
333-23 (B) needed and can be used by the municipality for its
334-24 development in the reasonably near future.
335-25 (2) This subdivision applies only to an annexation for which an
336-26 annexation ordinance is adopted after December 31, 2016. That
337-27 the territory sought to be annexed involves an economic
338-28 development project and the requirements of section 11.4 of this
339-29 chapter are met.
340-30 (3) The territory is described in section 5.2 of this chapter.
341-31 (d) The requirements of this subsection are met if the evidence
342-32 establishes that the municipality has developed and adopted a written
343-33 fiscal plan and has established a definite policy, by resolution of the
344-34 legislative body as set forth in section 3.1 of this chapter. The fiscal
345-35 plan must show the following:
346-36 (1) The cost estimates of planned services to be furnished to the
347-37 territory to be annexed. The plan must present itemized estimated
348-38 costs for each municipal department or agency.
349-39 (2) The method or methods of financing the planned services. The
350-40 plan must explain how specific and detailed expenses will be
351-41 funded and must indicate the taxes, grants, and other funding to
352-42 be used.
353-HB 1473—LS 7649/DI 87 9
354-1 (3) The plan for the organization and extension of services. The
355-2 plan must detail the specific services that will be provided and the
356-3 dates the services will begin.
357-4 (4) That planned services of a noncapital nature, including police
358-5 protection, fire protection, street and road maintenance, and other
359-6 noncapital services normally provided within the corporate
360-7 boundaries, will be provided to the annexed territory within one
361-8 (1) year after the effective date of annexation and that they will be
362-9 provided in a manner equivalent in standard and scope to those
363-10 noncapital services provided to areas within the corporate
364-11 boundaries regardless of similar topography, patterns of land use,
365-12 and population density.
366-13 (5) That services of a capital improvement nature, including street
367-14 construction, street lighting, sewer facilities, water facilities, and
368-15 storm water drainage facilities, will be provided to the annexed
369-16 territory within three (3) years after the effective date of the
370-17 annexation in the same manner as those services are provided to
371-18 areas within the corporate boundaries, regardless of similar
372-19 topography, patterns of land use, and population density, and in
373-20 a manner consistent with federal, state, and local laws,
374-21 procedures, and planning criteria.
375-22 (6) This subdivision applies to a fiscal plan prepared after June
376-23 30, 2015. The estimated effect of the proposed annexation on
377-24 taxpayers in each of the political subdivisions to which the
378-25 proposed annexation applies, including the expected tax rates, tax
379-26 levies, expenditure levels, service levels, and annual debt service
380-27 payments in those political subdivisions for four (4) years after
381-28 the effective date of the annexation.
382-29 (7) This subdivision applies to a fiscal plan prepared after June
383-30 30, 2015. The estimated effect the proposed annexation will have
384-31 on municipal finances, specifically how municipal tax revenues
385-32 will be affected by the annexation for four (4) years after the
386-33 effective date of the annexation.
387-34 (8) This subdivision applies to a fiscal plan prepared after June
388-35 30, 2015. Any estimated effects on political subdivisions in the
389-36 county that are not part of the annexation and on taxpayers
390-37 located in those political subdivisions for four (4) years after the
391-38 effective date of the annexation.
392-39 (9) This subdivision applies to a fiscal plan prepared after June
393-40 30, 2015. A list of all parcels of property in the annexation
394-41 territory and the following information regarding each parcel:
395-42 (A) The name of the owner of the parcel.
396-HB 1473—LS 7649/DI 87 10
397-1 (B) The parcel identification number.
398-2 (C) The most recent assessed value of the parcel.
399-3 (D) The existence of a known waiver of the right to
400-4 remonstrate on the parcel. This clause applies only to a fiscal
401-5 plan prepared after June 30, 2016.
402-6 (e) At the hearing under section 12 of this chapter, the court shall do
403-7 the following:
404-8 (1) Consider evidence on the conditions listed in subdivision (2).
405-9 (2) Order a proposed annexation not to take place if the court
406-10 finds that all of the following conditions that are applicable to the
407-11 annexation exist in the territory proposed to be annexed:
408-12 (A) This clause applies only to an annexation for which an
409-13 annexation ordinance was adopted before July 1, 2015. The
410-14 following services are adequately furnished by a provider
411-15 other than the municipality seeking the annexation:
412-16 (i) Police and fire protection.
413-17 (ii) Street and road maintenance.
414-18 (B) The annexation will have a significant financial impact on
415-19 the residents or owners of land. The court may not consider:
416-20 (i) the personal finances; or
417-21 (ii) the business finances;
418-22 of a resident or owner of land. The personal and business
419-23 financial records of the residents or owners of land, including
420-24 state, federal, and local income tax returns, may not be subject
421-25 to a subpoena or discovery proceedings.
422-26 (C) The annexation is not in the best interests of the owners of
423-27 land in the territory proposed to be annexed as set forth in
424-28 subsection (f).
425-29 (D) This clause applies only to an annexation for which an
426-30 annexation ordinance is adopted before July 1, 2015. One (1)
427-31 of the following opposes the annexation:
428-32 (i) At least sixty-five percent (65%) of the owners of land in
429-33 the territory proposed to be annexed.
430-34 (ii) The owners of more than seventy-five percent (75%) in
431-35 assessed valuation of the land in the territory proposed to be
432-36 annexed.
433-37 Evidence of opposition may be expressed by any owner of land
434-38 in the territory proposed to be annexed.
435-39 (E) This clause applies only to an annexation for which an
436-40 annexation ordinance is adopted after June 30, 2015. One (1)
437-41 of the following opposes the annexation:
438-42 (i) At least fifty-one percent (51%) of the owners of land in
439-HB 1473—LS 7649/DI 87 11
440-1 the territory proposed to be annexed.
441-2 (ii) The owners of more than sixty percent (60%) in assessed
442-3 valuation of the land in the territory proposed to be annexed.
443-4 The remonstrance petitions filed with the court under section
444-5 11 of this chapter are evidence of the number of owners of
445-6 land that oppose the annexation, minus any written revocations
446-7 of remonstrances that are filed with the court under section 11
447-8 of this chapter.
448-9 (F) This clause applies only to an annexation for which an
449-10 annexation ordinance is adopted before July 1, 2015. This
450-11 clause applies only to an annexation in which eighty percent
451-12 (80%) of the boundary of the territory proposed to be annexed
452-13 is contiguous to the municipality and the territory consists of
453-14 not more than one hundred (100) parcels. At least seventy-five
454-15 percent (75%) of the owners of land in the territory proposed
455-16 to be annexed oppose the annexation as determined under
456-17 section 11(b) of this chapter.
457-18 (f) The municipality under subsection (e)(2)(C) bears the burden of
458-19 proving that the annexation is in the best interests of the owners of land
459-20 in the territory proposed to be annexed. In determining this issue, the
460-21 court may consider whether the municipality has extended sewer or
461-22 water services to the entire territory to be annexed:
462-23 (1) within the three (3) years preceding the date of the
463-24 introduction of the annexation ordinance; or
464-25 (2) under a contract in lieu of annexation entered into under
465-26 IC 36-4-3-21.
466-27 The court may not consider the provision of water services as a result
467-28 of an order by the Indiana utility regulatory commission to constitute
468-29 the provision of water services to the territory to be annexed.
469-30 (g) The most recent:
470-31 (1) federal decennial census;
471-32 (2) federal special census;
472-33 (3) special tabulation; or
473-34 (4) corrected population count;
474-35 shall be used as evidence of resident population density for purposes
475-36 of subsection (b)(2)(A), but this evidence may be rebutted by other
476-37 evidence of population density.
477-38 (h) A municipality that prepares a fiscal plan after June 30, 2015,
478-39 must comply with this subsection. A municipality may not amend the
479-40 fiscal plan after the date that a remonstrance is filed with the court
480-41 under section 11 of this chapter, unless amendment of the fiscal plan
481-42 is consented to by at least sixty-five percent (65%) of the persons who
482-HB 1473—LS 7649/DI 87 12
483-1 signed the remonstrance petition.
484-2 (i) The municipality must submit proof that the municipality has
485-3 complied with:
486-4 (1) the outreach program requirements and notice requirements
487-5 of section 1.7 of this chapter; and
488-6 (2) the requirements of section 11.1 of this chapter.
489-HB 1473—LS 7649/DI 87 13
490-COMMITTEE REPORT
491-Mr. Speaker: Your Committee on Local Government, to which was
492-referred House Bill 1473, has had the same under consideration and
493-begs leave to report the same back to the House with the
494-recommendation that said bill be amended as follows:
495-Page 4, line 35, delete "is" and insert "becomes".
496-Page 4, line 35, delete "municipality." and insert "municipality
497-after June 30, 2025.".
498-Page 4, between lines 38 and 39, begin a new paragraph and insert:
499-"(c) Notwithstanding any other provision of this chapter, if a
500-proposed annexation territory consists of:
501-(1) land that:
502-(A) is contiguous to the municipality under section 1.5 of
503-this chapter; and
504-(B) abuts, at least in part, one (1) side of railroad tracks
505-and the railroad right-of-way; and
506-(2) land:
507-(A) that is not contiguous to the municipality under section
508-1.5 of this chapter; and
509-(B) that:
510-(i) is separated from the land under subdivision (1) by;
511-and
512-(ii) abuts, at least in part, the opposite side of;
513-the railroad tracks and railroad right-of-way described in
514-subdivision (1)(B);
515-the proposed annexation territory satisfies the contiguity
516-requirements under section 1.5 of this chapter. The annexing
517-municipality is not required to obtain the consent of any person
518-owning, leasing, operating, or using the railroad tracks or railroad
519-right-of-way to annex the proposed territory.".
520-and when so amended that said bill do pass.
521-(Reference is to HB 1473 as introduced.)
522-MAY
523-Committee Vote: yeas 8, nays 1.
524-HB 1473—LS 7649/DI 87
168+35 annexation territory is surrounded on all sides by the municipality.
169+36 (b) A municipality may annex territory by adopting an
170+37 annexation ordinance under section 3 or 4 of this chapter after
171+38 complying with sections 2.1 and 2.2 of this chapter.
172+39 SECTION 5. IC 36-4-3-7, AS AMENDED BY THE TECHNICAL
173+40 CORRECTIONS BILL OF THE 2025 GENERAL ASSEMBLY, IS
174+41 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
175+42 Sec. 7. (a) After an ordinance is adopted under section 3, 3.7, 4, 5, 5.1,
176+2025 IN 1473—LS 7649/DI 87 5
177+1 or 5.2 of this chapter, it must be published in the manner prescribed by
178+2 IC 5-3-1. Except as provided in subsection (b), (c), or (e), in the
179+3 absence of remonstrance and appeal under section 11 or 15.5 of this
180+4 chapter, the ordinance takes effect at least ninety (90) days after its
181+5 publication and upon the filing required by section 22(a) of this
182+6 chapter.
183+7 (b) For the purposes of this section, territory that has been:
184+8 (1) added to an existing fire protection district under
185+9 IC 36-8-11-11; or
186+10 (2) approved by ordinance of the county legislative body to be
187+11 added to an existing fire protection district under IC 36-8-11-11,
188+12 notwithstanding that the territory's addition to the fire protection
189+13 district has not yet taken effect;
190+14 shall be considered a part of the fire protection district as of the date
191+15 that the fire protection district was originally established.
192+16 (c) This subsection applies only to a fire protection district
193+17 established after July 1, 1987. This subsection does not apply to an
194+18 annexation under subsection (g). (f). Whenever a municipality annexes
195+19 territory, all or part of which lies within a fire protection district (IC
196+20 36-8-11), the annexation ordinance (in the absence of remonstrance
197+21 and appeal under section 11 or 15.5 of this chapter) takes effect the
198+22 second January 1 that follows the date the ordinance is adopted and
199+23 upon the filing required by section 22(a) of this chapter. The
200+24 municipality shall:
201+25 (1) provide fire protection to that territory beginning the date the
202+26 ordinance is effective; and
203+27 (2) send written notice to the fire protection district of the date the
204+28 municipality will begin to provide fire protection to the annexed
205+29 territory within ten (10) days of the date the ordinance is adopted.
206+30 (d) This subsection applies only to a fire protection district
207+31 established after July 1, 1987. This subsection does not apply to an
208+32 annexation under subsection (g). (f). If the fire protection district from
209+33 which a municipality annexes territory is indebted or has outstanding
210+34 unpaid bonds or other obligations at the time the annexation is
211+35 effective, the municipality is liable for and shall pay that indebtedness
212+36 in the same ratio as the assessed valuation of the property in the
213+37 annexed territory (that is part of the fire protection district) bears to the
214+38 assessed valuation of all property in the fire protection district, as
215+39 shown by the most recent assessment for taxation before the
216+40 annexation, unless the assessed property within the municipality is
217+41 already liable for the indebtedness. The annexing municipality shall
218+42 pay its indebtedness under this section to the board of fire trustees. If
219+2025 IN 1473—LS 7649/DI 87 6
220+1 the indebtedness consists of outstanding unpaid bonds or notes of the
221+2 fire protection district, the payments to the board of fire trustees shall
222+3 be made as the principal or interest on the bonds or notes becomes due.
223+4 (e) This subsection applies to an annexation initiated by property
224+5 owners under section 5.1 of this chapter in which all property owners
225+6 within the area to be annexed petition the municipality to be annexed.
226+7 Subject to subsection (c), and in the absence of an appeal under section
227+8 15.5 of this chapter, an annexation ordinance takes effect at least thirty
228+9 (30) days after its publication and upon the filing required by section
229+10 22(a) of this chapter.
230+11 (f) Whenever a municipality annexes territory that lies within a fire
231+12 protection district that has a total net assessed value (as determined by
232+13 the county auditor) of more than one billion dollars ($1,000,000,000)
233+14 on the date the annexation ordinance is adopted:
234+15 (1) the annexed area shall remain a part of the fire protection
235+16 district after the annexation takes effect; and
236+17 (2) the fire protection district shall continue to provide fire
237+18 protection services to the annexed area.
238+19 The municipality shall not tax the annexed territory for fire protection
239+20 services. The annexing municipality shall establish a special fire fund
240+21 for all fire protection services that are provided by the municipality
241+22 within the area of the municipality that is not within the fire protection
242+23 district, and which shall not be assessed to the annexed special taxing
243+24 district. The annexed territory that lies within the fire protection district
244+25 shall continue to be part of the fire protection district special taxing
245+26 district.
246+27 SECTION 6. IC 36-4-3-8 IS AMENDED TO READ AS FOLLOWS
247+28 [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) This section does not apply
248+29 to an ordinance adopted under section 3.7, 5, or 5.1 of this chapter.
249+30 (b) An ordinance adopted under section 3 or 4 of this chapter must
250+31 include terms and conditions fairly calculated to make the annexation
251+32 equitable to the property owners and residents of the municipality and
252+33 the annexed territory. The terms and conditions may include:
253+34 (1) postponing the effective date of the annexation for not more
254+35 than three (3) years; and
255+36 (2) establishing equitable provisions for the future management
256+37 and improvement of the annexed territory and for the rendering of
257+38 needed services.
258+39 (c) This subsection applies to territory sought to be annexed that
259+40 meets all of the following requirements:
260+41 (1) The resident population density of the territory is at least three
261+42 (3) persons per acre.
262+2025 IN 1473—LS 7649/DI 87 7
263+1 (2) The territory is subdivided or is parceled through separate
264+2 ownerships into lots or parcels such that at least sixty percent
265+3 (60%) of the total number of lots and parcels are not more than
266+4 one (1) acre.
267+5 This subsection does not apply to an ordinance annexing territory
268+6 described in section 4(a)(2), 4(a)(3), 4(b), or 4(h) of this chapter. The
269+7 ordinance must include terms and conditions impounding in a special
270+8 fund all of the municipal property taxes imposed on the annexed
271+9 territory after the annexation takes effect that are not used to meet the
272+10 basic services described in section 13(d)(4) and 13(d)(5) of this chapter
273+11 for a period of at least three (3) years. The impounded property taxes
274+12 must be used to provide additional services that were not specified in
275+13 the plan of annexation. The impounded property taxes in the fund shall
276+14 be expended as set forth in this section, not later than five (5) years
277+15 after the annexation becomes effective.
278+16 SECTION 7. IC 36-4-3-13, AS AMENDED BY P.L.70-2022,
279+17 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
280+18 JULY 1, 2025]: Sec. 13. (a) Except as provided in subsection (e), at the
281+19 hearing under section 12 of this chapter, the court shall order a
282+20 proposed annexation to take place if the following requirements are
283+21 met:
284+22 (1) The requirements of either subsection (b) or (c).
285+23 (2) The requirements of subsection (d).
286+24 (3) The requirements of subsection (i).
287+25 (b) The requirements of this subsection are met if the evidence
288+26 establishes the following:
289+27 (1) That the territory sought to be annexed is contiguous to the
290+28 municipality.
291+29 (2) One (1) of the following:
292+30 (A) The resident population density of the territory sought to
293+31 be annexed is at least three (3) persons per acre.
294+32 (B) Sixty percent (60%) of the territory is subdivided.
295+33 (C) The territory is zoned for commercial, business, or
296+34 industrial uses.
297+35 (c) The requirements of this subsection are met if the evidence
298+36 establishes one (1) of the following:
299+37 (1) That the territory sought to be annexed is:
300+38 (A) contiguous to the municipality as required by section 1.5
301+39 of this chapter, except that at least one-fourth (1/4), instead of
302+40 one-eighth (1/8), of the aggregate external boundaries of the
303+41 territory sought to be annexed must coincide with the
304+42 boundaries of the municipality; and
305+2025 IN 1473—LS 7649/DI 87 8
306+1 (B) needed and can be used by the municipality for its
307+2 development in the reasonably near future.
308+3 (2) This subdivision applies only to an annexation for which an
309+4 annexation ordinance is adopted after December 31, 2016. That
310+5 the territory sought to be annexed involves an economic
311+6 development project and the requirements of section 11.4 of this
312+7 chapter are met.
313+8 (3) The territory is described in section 5.2 of this chapter.
314+9 (d) The requirements of this subsection are met if the evidence
315+10 establishes that the municipality has developed and adopted a written
316+11 fiscal plan and has established a definite policy, by resolution of the
317+12 legislative body as set forth in section 3.1 of this chapter. The fiscal
318+13 plan must show the following:
319+14 (1) The cost estimates of planned services to be furnished to the
320+15 territory to be annexed. The plan must present itemized estimated
321+16 costs for each municipal department or agency.
322+17 (2) The method or methods of financing the planned services. The
323+18 plan must explain how specific and detailed expenses will be
324+19 funded and must indicate the taxes, grants, and other funding to
325+20 be used.
326+21 (3) The plan for the organization and extension of services. The
327+22 plan must detail the specific services that will be provided and the
328+23 dates the services will begin.
329+24 (4) That planned services of a noncapital nature, including police
330+25 protection, fire protection, street and road maintenance, and other
331+26 noncapital services normally provided within the corporate
332+27 boundaries, will be provided to the annexed territory within one
333+28 (1) year after the effective date of annexation and that they will be
334+29 provided in a manner equivalent in standard and scope to those
335+30 noncapital services provided to areas within the corporate
336+31 boundaries regardless of similar topography, patterns of land use,
337+32 and population density.
338+33 (5) That services of a capital improvement nature, including street
339+34 construction, street lighting, sewer facilities, water facilities, and
340+35 storm water drainage facilities, will be provided to the annexed
341+36 territory within three (3) years after the effective date of the
342+37 annexation in the same manner as those services are provided to
343+38 areas within the corporate boundaries, regardless of similar
344+39 topography, patterns of land use, and population density, and in
345+40 a manner consistent with federal, state, and local laws,
346+41 procedures, and planning criteria.
347+42 (6) This subdivision applies to a fiscal plan prepared after June
348+2025 IN 1473—LS 7649/DI 87 9
349+1 30, 2015. The estimated effect of the proposed annexation on
350+2 taxpayers in each of the political subdivisions to which the
351+3 proposed annexation applies, including the expected tax rates, tax
352+4 levies, expenditure levels, service levels, and annual debt service
353+5 payments in those political subdivisions for four (4) years after
354+6 the effective date of the annexation.
355+7 (7) This subdivision applies to a fiscal plan prepared after June
356+8 30, 2015. The estimated effect the proposed annexation will have
357+9 on municipal finances, specifically how municipal tax revenues
358+10 will be affected by the annexation for four (4) years after the
359+11 effective date of the annexation.
360+12 (8) This subdivision applies to a fiscal plan prepared after June
361+13 30, 2015. Any estimated effects on political subdivisions in the
362+14 county that are not part of the annexation and on taxpayers
363+15 located in those political subdivisions for four (4) years after the
364+16 effective date of the annexation.
365+17 (9) This subdivision applies to a fiscal plan prepared after June
366+18 30, 2015. A list of all parcels of property in the annexation
367+19 territory and the following information regarding each parcel:
368+20 (A) The name of the owner of the parcel.
369+21 (B) The parcel identification number.
370+22 (C) The most recent assessed value of the parcel.
371+23 (D) The existence of a known waiver of the right to
372+24 remonstrate on the parcel. This clause applies only to a fiscal
373+25 plan prepared after June 30, 2016.
374+26 (e) At the hearing under section 12 of this chapter, the court shall do
375+27 the following:
376+28 (1) Consider evidence on the conditions listed in subdivision (2).
377+29 (2) Order a proposed annexation not to take place if the court
378+30 finds that all of the following conditions that are applicable to the
379+31 annexation exist in the territory proposed to be annexed:
380+32 (A) This clause applies only to an annexation for which an
381+33 annexation ordinance was adopted before July 1, 2015. The
382+34 following services are adequately furnished by a provider
383+35 other than the municipality seeking the annexation:
384+36 (i) Police and fire protection.
385+37 (ii) Street and road maintenance.
386+38 (B) The annexation will have a significant financial impact on
387+39 the residents or owners of land. The court may not consider:
388+40 (i) the personal finances; or
389+41 (ii) the business finances;
390+42 of a resident or owner of land. The personal and business
391+2025 IN 1473—LS 7649/DI 87 10
392+1 financial records of the residents or owners of land, including
393+2 state, federal, and local income tax returns, may not be subject
394+3 to a subpoena or discovery proceedings.
395+4 (C) The annexation is not in the best interests of the owners of
396+5 land in the territory proposed to be annexed as set forth in
397+6 subsection (f).
398+7 (D) This clause applies only to an annexation for which an
399+8 annexation ordinance is adopted before July 1, 2015. One (1)
400+9 of the following opposes the annexation:
401+10 (i) At least sixty-five percent (65%) of the owners of land in
402+11 the territory proposed to be annexed.
403+12 (ii) The owners of more than seventy-five percent (75%) in
404+13 assessed valuation of the land in the territory proposed to be
405+14 annexed.
406+15 Evidence of opposition may be expressed by any owner of land
407+16 in the territory proposed to be annexed.
408+17 (E) This clause applies only to an annexation for which an
409+18 annexation ordinance is adopted after June 30, 2015. One (1)
410+19 of the following opposes the annexation:
411+20 (i) At least fifty-one percent (51%) of the owners of land in
412+21 the territory proposed to be annexed.
413+22 (ii) The owners of more than sixty percent (60%) in assessed
414+23 valuation of the land in the territory proposed to be annexed.
415+24 The remonstrance petitions filed with the court under section
416+25 11 of this chapter are evidence of the number of owners of
417+26 land that oppose the annexation, minus any written revocations
418+27 of remonstrances that are filed with the court under section 11
419+28 of this chapter.
420+29 (F) This clause applies only to an annexation for which an
421+30 annexation ordinance is adopted before July 1, 2015. This
422+31 clause applies only to an annexation in which eighty percent
423+32 (80%) of the boundary of the territory proposed to be annexed
424+33 is contiguous to the municipality and the territory consists of
425+34 not more than one hundred (100) parcels. At least seventy-five
426+35 percent (75%) of the owners of land in the territory proposed
427+36 to be annexed oppose the annexation as determined under
428+37 section 11(b) of this chapter.
429+38 (f) The municipality under subsection (e)(2)(C) bears the burden of
430+39 proving that the annexation is in the best interests of the owners of land
431+40 in the territory proposed to be annexed. In determining this issue, the
432+41 court may consider whether the municipality has extended sewer or
433+42 water services to the entire territory to be annexed:
434+2025 IN 1473—LS 7649/DI 87 11
435+1 (1) within the three (3) years preceding the date of the
436+2 introduction of the annexation ordinance; or
437+3 (2) under a contract in lieu of annexation entered into under
438+4 IC 36-4-3-21.
439+5 The court may not consider the provision of water services as a result
440+6 of an order by the Indiana utility regulatory commission to constitute
441+7 the provision of water services to the territory to be annexed.
442+8 (g) The most recent:
443+9 (1) federal decennial census;
444+10 (2) federal special census;
445+11 (3) special tabulation; or
446+12 (4) corrected population count;
447+13 shall be used as evidence of resident population density for purposes
448+14 of subsection (b)(2)(A), but this evidence may be rebutted by other
449+15 evidence of population density.
450+16 (h) A municipality that prepares a fiscal plan after June 30, 2015,
451+17 must comply with this subsection. A municipality may not amend the
452+18 fiscal plan after the date that a remonstrance is filed with the court
453+19 under section 11 of this chapter, unless amendment of the fiscal plan
454+20 is consented to by at least sixty-five percent (65%) of the persons who
455+21 signed the remonstrance petition.
456+22 (i) The municipality must submit proof that the municipality has
457+23 complied with:
458+24 (1) the outreach program requirements and notice requirements
459+25 of section 1.7 of this chapter; and
460+26 (2) the requirements of section 11.1 of this chapter.
461+2025 IN 1473—LS 7649/DI 87