Indiana Senate Bill SB0283 Introduced / Bill

                     
Introduced Version
SENATE BILL No. 283
_____
DIGEST OF INTRODUCED BILL
Citations Affected:  IC 6-1.1; IC 6-6-5-10.5; IC 36-3-6-9; IC 36-12.
Synopsis:  Library governance. Eliminates the authority of public
libraries to impose an ad valorem property tax as a "taxing unit".
Requires a public library to prepare and submit a recommended annual
budget to the fiscal body of the county in which the territory of the
public library is located to provide the revenues necessary for the
operation and maintenance of the public library by a special tax levy,
a specific appropriation, or both. Provides that a special tax levy for
public library purposes is included in the calculation of the maximum
permissible property tax levy for the county.
Effective:  July 1, 2025; January 1, 2026.
Byrne
January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025	IN 283—LS 6379/DI 116 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
  Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in  this  style  type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 283
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-1-21 IS AMENDED TO READ AS
2 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 21. "Taxing unit"
3 means an entity which has the power to impose ad valorem property
4 taxes. Beginning after December 31, 2025, the term does not
5 include a public library.
6 SECTION 2. IC 6-1.1-17-20, AS AMENDED BY P.L.257-2013,
7 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 20. (a) This section applies to each governing
9 body of a taxing unit that is not comprised of a majority of officials
10 who are elected to serve on the governing body. For purposes of this
11 section, an individual who qualifies to be appointed to a governing
12 body or serves on a governing body because of the individual's status
13 as an elected official of another taxing unit shall be treated as an
14 official who was not elected to serve on the governing body.
15 (b) As used in this section, "taxing unit" has the meaning set forth
16 in IC 6-1.1-1-21, except that the term does not include a public library
17 or an entity whose tax levies are subject to review and modification by
2025	IN 283—LS 6379/DI 116 2
1 a city-county legislative body under IC 36-3-6-9.
2 (c) If:
3 (1) the assessed valuation of a taxing unit is entirely contained
4 within a city or town; or
5 (2) the assessed valuation of a taxing unit is not entirely contained
6 within a city or town but:
7 (A) the taxing unit was originally established by the city or
8 town; or
9 (B) the majority of the individuals serving on the governing
10 body of the taxing unit are appointed by the city or town;
11 the governing body shall submit its proposed budget and property tax
12 levy to the city or town fiscal body. The proposed budget and levy shall
13 be submitted to the city or town fiscal body in the manner prescribed
14 by the department of local government finance before September 2 of
15 a year.
16 (d) If subsection (c) does not apply, the governing body of the taxing
17 unit shall submit its proposed budget and property tax levy to the
18 county fiscal body in the county where the taxing unit has the most
19 assessed valuation. The proposed budget and levy shall be submitted
20 to the county fiscal body in the manner prescribed by the department
21 of local government finance before September 2 of a year.
22 (e) The fiscal body of the city, town, or county (whichever applies)
23 shall review each budget and proposed tax levy and adopt a final
24 budget and tax levy for the taxing unit. The fiscal body may reduce or
25 modify but not increase the proposed budget or tax levy.
26 (f) If a taxing unit fails to file the information required in subsection
27 (c) or (d), whichever applies, with the appropriate fiscal body by the
28 time prescribed by this section, the most recent annual appropriations
29 and annual tax levy of that taxing unit are continued for the ensuing
30 budget year.
31 (g) If the appropriate fiscal body fails to complete the requirements
32 of subsection (e) before the adoption deadline in section 5 of this
33 chapter for any taxing unit subject to this section, the most recent
34 annual appropriations and annual tax levy of the city, town, or county,
35 whichever applies, are continued for the ensuing budget year.
36 SECTION 3. IC 6-1.1-17-20.3 IS REPEALED [EFFECTIVE JULY
37 1, 2025]. Sec. 20.3. (a) Except as provided in section 20.4 of this
38 chapter, this section applies only to the governing body of a public
39 library that:
40 (1) is not comprised of a majority of officials who are elected to
41 serve on the governing body; and
42 (2) has a percentage increase in the proposed budget for the
2025	IN 283—LS 6379/DI 116 3
1 taxing unit for the ensuing calendar year that is more than the
2 result of:
3 (A) the maximum levy growth quotient determined under
4 IC 6-1.1-18.5-2 for the ensuing calendar year, rounded to the
5 nearest thousandth (0.001); minus
6 (B) one (1).
7 For purposes of this section, an individual who qualifies to be
8 appointed to a governing body or serves on a governing body because
9 of the individual's status as an elected official of another taxing unit
10 shall be treated as an official who was not elected to serve on the
11 governing body.
12 (b) This section does not apply to an entity whose tax levies are
13 subject to review and modification by a city-county legislative body
14 under IC 36-3-6-9.
15 (c) If:
16 (1) the assessed valuation of a public library's territory is entirely
17 contained within a city or town; or
18 (2) the assessed valuation of a public library's territory is not
19 entirely contained within a city or town but more than fifty
20 percent (50%) of the assessed valuation of the public library's
21 territory is contained within the city or town;
22 the governing body shall submit its proposed budget and property tax
23 levy to the city or town fiscal body in the manner prescribed by the
24 department of local government finance before September 2 of a year.
25 However, the governing body shall submit its proposed budget and
26 property tax levy to the county fiscal body in the manner provided in
27 subsection (d), rather than to the city or town fiscal body, if more than
28 fifty percent (50%) of the parcels of real property within the
29 jurisdiction of the public library are located outside the city or town.
30 (d) If subsection (c) does not apply or the public library's territory
31 covers more than one (1) county, the governing body of the public
32 library shall submit its proposed budget and property tax levy to the
33 county fiscal body in the county where the public library has the most
34 assessed valuation. The proposed budget and levy shall be submitted
35 to the county fiscal body in the manner prescribed by the department
36 of local government finance before September 2 of a year.
37 (e) The fiscal body of the city, town, or county (whichever applies)
38 shall review each budget and proposed tax levy and adopt a final
39 budget and tax levy for the public library. The fiscal body may reduce
40 or modify but not increase the proposed budget or tax levy.
41 (f) If a public library fails to file the information required in
42 subsection (c) or (d), whichever applies, with the appropriate fiscal
2025	IN 283—LS 6379/DI 116 4
1 body by the time prescribed by this section, the most recent annual
2 appropriations and annual tax levy of that public library are continued
3 for the ensuing budget year.
4 (g) If the appropriate fiscal body fails to complete the requirements
5 of subsection (e) before the adoption deadline in section 5 of this
6 chapter for any public library subject to this section, the most recent
7 annual appropriations and annual tax levy of the city, town, or county,
8 whichever applies, are continued for the ensuing budget year.
9 SECTION 4. IC 6-1.1-17-20.4 IS REPEALED [EFFECTIVE JULY
10 1, 2025]. Sec. 20.4. (a) This section applies only if on December 31, as
11 reported in the public library's annual report under IC 5-11-1-4, the
12 cash balance of all funds of the public library derived from tax revenue
13 is greater than one hundred fifty percent (150%) of the public library's
14 certified budget for the ensuing year.
15 (b) If section 20.3(a)(2) of this chapter does not apply, the fiscal
16 body of a city, town, or county may adopt a resolution to require the
17 public library to submit its proposed budget and property tax levy to the
18 city, town, or county fiscal body as set forth in section 20.3(c) or
19 20.3(d) of this chapter (whichever is applicable) for binding review and
20 approval as set forth under section 20.3 of this chapter. However, the
21 fiscal body of the city, town, or county may not reduce a public library's
22 proposed budget or tax levy in a budget year under this section by more
23 than ten percent (10%) of the public library's operating levy in the
24 immediately preceding budget year.
25 (c) A resolution may be adopted under this section not later than
26 July 1. A resolution adopted under this section remains in full force and
27 effect until the December 31 cash balance of all funds of the public
28 library derived from tax revenue, as reported in the public library's
29 annual report under IC 5-11-1-4, no longer exceed one hundred fifty
30 percent (150%) of the public library's certified budget for the ensuing
31 year.
32 (d) Before a fiscal body may adopt a resolution under this section,
33 the fiscal body must hold a public hearing on the proposed resolution
34 and provide the public with notice of the time and place where the
35 public hearing will be held. The notice required by this subsection must
36 be given in accordance with IC 5-3-1 and include the proposed
37 resolution. In addition to the notice required by this subsection, the
38 fiscal body shall also provide a copy of the notice to all taxing units in
39 the city, town, or county at least thirty (30) days before the public
40 hearing.
41 (e) A resolution adopted by a fiscal body under this section shall be
42 submitted to:
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1 (1) the department of local government finance; and
2 (2) the public library;
3 not later than five (5) days after the date the resolution is adopted.
4 SECTION 5. IC 6-1.1-17-20.5, AS AMENDED BY P.L.113-2010,
5 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2025]: Sec. 20.5. (a) This section applies to the governing
7 body of a taxing unit unless a majority of the governing body is
8 comprised of officials who are elected to serve on the governing body.
9 For purposes of this section, an individual who qualifies to be
10 appointed to a governing body or serves on a governing body because
11 of the individual's status as an elected official of another taxing unit
12 shall be treated as an official who was not elected to serve on the
13 governing body.
14 (b) As used in this section, "taxing unit" has the meaning set forth
15 in IC 6-1.1-1-21, except that the term does not include:
16 (1) a school corporation; or
17 (2) an entity whose tax levies are subject to review and
18 modification by a city-county legislative body under IC 36-3-6-9.
19 (c) If:
20 (1) the assessed valuation of a taxing unit is entirely contained
21 within a city or town; or
22 (2) the assessed valuation of a taxing unit is not entirely contained
23 within a city or town but the taxing unit was originally established
24 by the city or town;
25 the governing body of the taxing unit may not issue bonds or enter into
26 a lease payable in whole or in part from property taxes unless it obtains
27 the approval of the city or town fiscal body.
28 (d) However, in the case of a public library that is subject to this
29 section and is described in subsection (c), the public library may not
30 issue bonds or enter into a lease payable in whole or in part from
31 property taxes unless it obtains the approval of the county fiscal body,
32 rather than the city or town fiscal body, if more than fifty percent (50%)
33 of the parcels of real property within the jurisdiction of the public
34 library are located outside the city or town. The requirement that the
35 public library must obtain the approval of the county fiscal body (rather
36 than the city or town fiscal body) if more than fifty percent (50%) of
37 the parcels of real property within the jurisdiction of the public library
38 are located outside the city or town does not apply to the issuance of
39 bonds or the execution of a lease:
40 (1) for which a decision or preliminary determination was made
41 under IC 6-1.1-20 before December 31, 2010; or
42 (2) that is approved by the city or town fiscal body or the county
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1 fiscal body before December 31, 2010.
2 (e) (d) This subsection applies to a taxing unit not described in
3 subsection (c). or (d). The governing body of the taxing unit may not
4 issue bonds or enter into a lease payable in whole or in part from
5 property taxes unless it obtains the approval of the county fiscal body
6 in the county where the taxing unit has the most net assessed valuation.
7 SECTION 6. IC 6-1.1-17-20.6 IS REPEALED [EFFECTIVE JULY
8 1, 2025]. Sec. 20.6. (a) Each public library shall identify the applicable
9 city, town, or county fiscal body that receives a public library's
10 proposed budget as provided in section 20.3(c) or 20.3(d) of this
11 chapter.
12 (b) Not later than October 1, 2020, a public library shall report the
13 applicable city, town, or county fiscal body identified under subsection
14 (a) to the Indiana state library. The report submitted to the state library
15 must contain:
16 (1) the name of the public library;
17 (2) the appropriate fiscal body of a city, town, or county to review
18 a library budget under section 20.3(c) or 20.3(d) of this chapter;
19 and
20 (3) after adoption by the respective board, the signatures of the
21 public library board president and the appropriate fiscal body
22 president.
23 The Indiana state library shall provide the information submitted to the
24 Indiana state library under this subsection to the department of local
25 government finance by not later than November 1, 2020.
26 (c) If a fiscal body, other than the fiscal body identified by the
27 public library under subsection (a), objects to the public library's
28 determination under subsection (a), the objecting fiscal body may
29 submit a formal objection to:
30 (1) the Indiana state library;
31 (2) the public library; and
32 (3) the fiscal body identified under subsection (a) by the public
33 library.
34 (d) If a public library:
35 (1) is unable to identify the applicable fiscal body under
36 subsection (a);
37 (2) does not complete the reporting requirements established in
38 subsection (b); or
39 (3) has a formal objection filed under subsection (c) against the
40 public library's fiscal body designation under subsection (a);
41 the public library shall file an original action seeking a declaratory
42 judgment in a court with jurisdiction to identify the appropriate fiscal
2025	IN 283—LS 6379/DI 116 7
1 body. The public library shall file a copy of the declaratory judgment
2 with the Indiana state library within thirty (30) days of the court's entry
3 of judgment.
4 (e) The Indiana state library shall provide the information submitted
5 to the Indiana state library under subsection (b) to the department of
6 local government finance by not later than November 1, 2020.
7 (f) If there is a change in the territory of the public library:
8 (1) the public library shall submit a report under subsection (b) to
9 the Indiana state library not later than October 1; and
10 (2) the Indiana state library shall report the information under
11 subsection (b) to the department of local government finance not
12 later than November 1;
13 in the year the change in territory becomes effective. Subsections (c)
14 and (d) apply to the public library and to any fiscal body that objects to
15 the public library's designation under subsection (a).
16 SECTION 7. IC 6-1.1-18-5, AS AMENDED BY P.L.38-2021,
17 SECTION 30, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
18 JULY 1, 2025]: Sec. 5. (a) If the proper officers of a political
19 subdivision desire to appropriate more money for a particular year than
20 the amount prescribed in the budget for that year as finally determined
21 under this article, they shall give notice of their proposed additional
22 appropriation. The notice shall state the time and place at which a
23 public hearing will be held on the proposal. The notice shall be given
24 once in accordance with IC 5-3-1-2(b).
25 (b) If the additional appropriation by the political subdivision is
26 made from a fund for which the budget, rate, or levy is certified by the
27 department of local government finance under IC 6-1.1-17-16, the
28 political subdivision must report the additional appropriation to the
29 department of local government finance in the manner prescribed by
30 the department of local government finance. If the additional
31 appropriation is made from a fund described under this subsection,
32 subsections (f), (g), (h), and (i) apply to the political subdivision.
33 (c) However, if the additional appropriation is not made from a fund
34 described under subsection (b), subsections (f), (g), (h), and (i) do not
35 apply to the political subdivision. Subsections (f), (g), (h), and (i) do
36 not apply to an additional appropriation made from the cumulative
37 bridge fund if the appropriation meets the requirements under
38 IC 8-16-3-3(c).
39 (d) A political subdivision may make an additional appropriation
40 without approval of the department of local government finance if the
41 additional appropriation is made from a fund that is not described
42 under subsection (b). However, the fiscal officer of the political
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1 subdivision shall report the additional appropriation to the department
2 of local government finance.
3 (e) Subject to subsections subsection (j), and (k), after the public
4 hearing, the proper officers of the political subdivision shall file a
5 certified copy of their final proposal and any other relevant information
6 to the department of local government finance not later than fifteen
7 (15) days after the additional appropriation is adopted by the
8 appropriate fiscal body. If the additional appropriation is not submitted
9 to the department of local government finance within fifteen (15) days
10 after adoption, the department of local government finance may require
11 the political subdivision to conduct a readoption hearing.
12 (f) When the department of local government finance receives a
13 certified copy of a proposal for an additional appropriation under
14 subsection (e), the department shall determine whether sufficient funds
15 are available or will be available for the proposal. The determination
16 shall be made in writing and sent to the political subdivision not more
17 than fifteen (15) days after the department of local government finance
18 receives the proposal.
19 (g) In making the determination under subsection (f), the
20 department of local government finance shall limit the amount of the
21 additional appropriation to revenues available, or to be made available,
22 which have not been previously appropriated.
23 (h) If the department of local government finance disapproves an
24 additional appropriation under subsection (f), the department shall
25 specify the reason for its disapproval on the determination sent to the
26 political subdivision.
27 (i) A political subdivision may request a reconsideration of a
28 determination of the department of local government finance under this
29 section by filing a written request for reconsideration. A request for
30 reconsideration must:
31 (1) be filed with the department of local government finance
32 within fifteen (15) days of the receipt of the determination by the
33 political subdivision; and
34 (2) state with reasonable specificity the reason for the request.
35 The department of local government finance must act on a request for
36 reconsideration within fifteen (15) days of receiving the request.
37 (j) This subsection applies to an additional appropriation by a
38 political subdivision that must have the political subdivision's annual
39 appropriations and annual tax levy adopted by a city, town, or county
40 fiscal body under IC 6-1.1-17-20 or IC 36-1-23 or by a legislative or
41 fiscal body under IC 36-3-6-9. The fiscal or legislative body of the city,
42 town, or county that adopted the political subdivision's annual
2025	IN 283—LS 6379/DI 116 9
1 appropriation and annual tax levy must adopt the additional
2 appropriation by ordinance before the department of local government
3 finance may approve the additional appropriation.
4 (k) This subsection applies to a public library that is not required to
5 submit the public library's budgets, tax rates, and tax levies for binding
6 review and approval under IC 6-1.1-17-20 or IC 6-1.1-17-20.4. If a
7 public library subject to this subsection proposes to make an additional
8 appropriation for a year, and the additional appropriation would result
9 in the budget for the library for that year increasing (as compared to the
10 previous year) by a percentage that is greater than the result of the
11 maximum levy growth quotient determined under IC 6-1.1-18.5-2 for
12 the calendar year minus one (1), the additional appropriation must first
13 be approved by the city, town, or county fiscal body described in
14 IC 6-1.1-17-20.3(c) or IC 6-1.1-17-20.3(d), as appropriate.
15 (l) (k) This subsection applies to an appropriation for which the
16 underlying purpose is a bond issue. The political subdivision shall
17 include the appropriation for the bond proceeds in the budget of the
18 political subdivision for the ensuing year adopted under IC 6-1.1-17.
19 If the political subdivision does not include the appropriation for the
20 bond proceeds as required by this subsection, the political subdivision
21 shall comply with the requirements of this section in the year in which
22 the bond proceeds are received, but may not take an action pursuant to
23 this section in a year before the year in which the bond proceeds are
24 received.
25 SECTION 8. IC 6-1.1-18-5, AS AMENDED BY P.L.156-2024,
26 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JANUARY 1, 2026]: Sec. 5. (a) If the proper officers of a political
28 subdivision desire to appropriate more money for a particular year than
29 the amount prescribed in the budget for that year as finally determined
30 under this article, they shall hold a public hearing after submitting the
31 following information regarding the proposed additional appropriation
32 to the department's computer gateway:
33 (1) The amount of the additional appropriation.
34 (2) The name of the affected fund.
35 (3) The name and account number of the affected account.
36 (4) The date, time, and place at which the political subdivision or
37 appropriate fiscal body will hold a public hearing on the proposed
38 additional appropriation.
39 (b) If the additional appropriation by the political subdivision is
40 made from a fund for which the budget, rate, or levy is certified by the
41 department of local government finance under IC 6-1.1-17-16, the
42 political subdivision must report the additional appropriation to the
2025	IN 283—LS 6379/DI 116 10
1 department of local government finance in the manner prescribed by
2 the department of local government finance. If the additional
3 appropriation is made from a fund described under this subsection,
4 subsections (f), (g), (h), and (i) apply to the political subdivision.
5 (c) However, if the additional appropriation is not made from a fund
6 described under subsection (b), subsections (f), (g), (h), and (i) do not
7 apply to the political subdivision. Subsections (f), (g), (h), and (i) do
8 not apply to an additional appropriation made from the cumulative
9 bridge fund if the appropriation meets the requirements under
10 IC 8-16-3-3(c).
11 (d) A political subdivision may make an additional appropriation
12 without approval of the department of local government finance if the
13 additional appropriation is made from a fund that is not described
14 under subsection (b). However, the fiscal officer of the political
15 subdivision shall report the additional appropriation to the department
16 of local government finance.
17 (e) Subject to subsections subsection (j), and (k), after the public
18 hearing, the proper officers of the political subdivision shall file a
19 certified copy of their final proposal and any other relevant information
20 to the department of local government finance not later than fifteen
21 (15) days after the additional appropriation is adopted by the
22 appropriate fiscal body. If the additional appropriation is not submitted
23 to the department of local government finance within fifteen (15) days
24 after adoption, the department of local government finance may require
25 the political subdivision to conduct a readoption hearing.
26 (f) When the department of local government finance receives a
27 certified copy of a proposal for an additional appropriation under
28 subsection (e), the department shall determine whether sufficient funds
29 are available or will be available for the proposal. The determination
30 shall be made in writing and sent to the political subdivision not more
31 than fifteen (15) days after the department of local government finance
32 receives the proposal.
33 (g) In making the determination under subsection (f), the
34 department of local government finance shall limit the amount of the
35 additional appropriation to revenues available, or to be made available,
36 which have not been previously appropriated.
37 (h) If the department of local government finance disapproves an
38 additional appropriation under subsection (f), the department shall
39 specify the reason for its disapproval on the determination sent to the
40 political subdivision.
41 (i) A political subdivision may request a reconsideration of a
42 determination of the department of local government finance under this
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1 section by filing a written request for reconsideration. A request for
2 reconsideration must:
3 (1) be filed with the department of local government finance
4 within fifteen (15) days of the receipt of the determination by the
5 political subdivision; and
6 (2) state with reasonable specificity the reason for the request.
7 The department of local government finance must act on a request for
8 reconsideration within fifteen (15) days of receiving the request.
9 (j) This subsection applies to an additional appropriation by a
10 political subdivision that must have the political subdivision's annual
11 appropriations and annual tax levy adopted by a city, town, or county
12 fiscal body under IC 6-1.1-17-20 or IC 36-1-23 or by a legislative or
13 fiscal body under IC 36-3-6-9. The fiscal or legislative body of the city,
14 town, or county that adopted the political subdivision's annual
15 appropriation and annual tax levy must adopt the additional
16 appropriation by ordinance before the department of local government
17 finance may approve the additional appropriation.
18 (k) This subsection applies to a public library that is not required to
19 submit the public library's budgets, tax rates, and tax levies for binding
20 review and approval under IC 6-1.1-17-20 or IC 6-1.1-17-20.4. If a
21 public library subject to this subsection proposes to make an additional
22 appropriation for a year, and the additional appropriation would result
23 in the budget for the library for that year increasing (as compared to the
24 previous year) by a percentage that is greater than the result of the
25 maximum levy growth quotient determined under IC 6-1.1-18.5-2 for
26 the calendar year minus one (1), the additional appropriation must first
27 be approved by the city, town, or county fiscal body described in
28 IC 6-1.1-17-20.3(c) or IC 6-1.1-17-20.3(d), as appropriate.
29 (l) (k) This subsection applies to an appropriation for which the
30 underlying purpose is a bond issue. The political subdivision shall
31 include the appropriation for the bond proceeds in the budget of the
32 political subdivision for the ensuing year adopted under IC 6-1.1-17.
33 If the political subdivision does not include the appropriation for the
34 bond proceeds as required by this subsection, the political subdivision
35 shall comply with the requirements of this section in the year in which
36 the bond proceeds are received, but may not take an action pursuant to
37 this section in a year before the year in which the bond proceeds are
38 received.
39 (m) (l) The proper officers of a political subdivision shall submit the
40 information described in subsection (a)(1) through (a)(4), in a manner
41 prescribed by the department, to the department's computer gateway at
42 least fourteen (14) days prior to the public hearing. The department
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1 shall make the information submitted by the political subdivision
2 available to taxpayers through the department's computer gateway at
3 least ten (10) days prior to the public hearing. If the date, time, or place
4 of the public hearing changes following the original submission of the
5 information to the department's computer gateway, the political
6 subdivision shall submit the updated information to the department's
7 computer gateway as soon as possible.
8 SECTION 9. IC 6-1.1-18.5-12, AS AMENDED BY P.L.156-2024,
9 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2025]: Sec. 12. (a) Any civil taxing unit that determines that
11 it cannot carry out its governmental functions for an ensuing calendar
12 year under the levy limitations imposed by section 3 or 25 of this
13 chapter, as applicable, may, subject to subsections (h) and (i):
14 (1) before October 20 of the calendar year immediately preceding
15 the ensuing calendar year; or
16 (2) in the case of a request described in section 16 of this chapter,
17 before December 31 of the calendar year immediately preceding
18 the ensuing calendar year;
19 appeal to the department of local government finance for relief from
20 those levy limitations. In the appeal the civil taxing unit must state that
21 it will be unable to carry out the governmental functions committed to
22 it by law unless it is given the authority that it is petitioning for. The
23 civil taxing unit must support these allegations by reasonably detailed
24 statements of fact.
25 (b) The department of local government finance shall immediately
26 proceed to the examination and consideration of the merits of the civil
27 taxing unit's appeal.
28 (c) In considering an appeal, the department of local government
29 finance has the power to conduct hearings, require any officer or
30 member of the appealing civil taxing unit to appear before it, or require
31 any officer or member of the appealing civil taxing unit to provide the
32 department with any relevant records or books.
33 (d) If an officer or member:
34 (1) fails to appear at a hearing after having been given written
35 notice requiring that person's attendance; or
36 (2) fails to produce the books and records that the department by
37 written notice required the officer or member to produce;
38 then the department may file an affidavit in the circuit court, superior
39 court, or probate court in the jurisdiction in which the officer or
40 member may be found setting forth the facts of the failure.
41 (e) Upon the filing of an affidavit under subsection (d), the court
42 shall promptly issue a summons, and the sheriff of the county within
2025	IN 283—LS 6379/DI 116 13
1 which the court is sitting shall serve the summons. The summons must
2 command the officer or member to appear before the department to
3 provide information to the department or to produce books and records
4 for the department's use, as the case may be. Disobedience of the
5 summons constitutes, and is punishable as, a contempt of the court that
6 issued the summons.
7 (f) All expenses incident to the filing of an affidavit under
8 subsection (d) and the issuance and service of a summons shall be
9 charged to the officer or member against whom the summons is issued,
10 unless the court finds that the officer or member was acting in good
11 faith and with reasonable cause. If the court finds that the officer or
12 member was acting in good faith and with reasonable cause or if an
13 affidavit is filed and no summons is issued, the expenses shall be
14 charged against the county in which the affidavit was filed and shall be
15 allowed by the proper fiscal officers of that county.
16 (g) The fiscal officer of a civil taxing unit that appeals under section
17 16 of this chapter for relief from levy limitations shall immediately file
18 a copy of the appeal petition with the county auditor and the county
19 treasurer of the county in which the unit is located.
20 (h) This subsection applies to a civil taxing unit whose budget for
21 the upcoming year is subject to review by a fiscal body under
22 (1) IC 6-1.1-17-20.
23 (2) IC 6-1.1-17-20.3; or
24 (3) IC 6-1.1-17-20.4.
25 A civil taxing unit described in this subsection may not submit an
26 appeal under this section unless the civil taxing unit receives approval
27 from the appropriate fiscal body to submit the appeal.
28 (i) A participating unit of a fire protection territory may not submit
29 an appeal under this section unless each participating unit of the fire
30 protection territory has adopted a resolution approving submission of
31 the appeal.
32 SECTION 10. IC 6-6-5-10.5 IS AMENDED TO READ AS
33 FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 10.5. The county
34 auditor shall, not later than August first of each year, furnish to the
35 proper officer of each municipal corporation an estimate of the
36 amounts to be distributed to the taxing units under this chapter during
37 the next calendar year and the budget of each such municipal
38 corporation shall show the estimated amounts to be received for each
39 fund for which a property tax is proposed to be levied. The term
40 "municipal corporation" shall mean any county, city, town, township,
41 school corporation, public library or other taxing district.
42 SECTION 11. IC 36-3-6-9, AS AMENDED BY P.L.137-2012,
2025	IN 283—LS 6379/DI 116 14
1 SECTION 118, IS AMENDED TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) Except as provided in
3 subsection (d), the city-county legislative body shall review the
4 proposed operating and maintenance budgets and tax levies and adopt
5 final operating and maintenance budgets and tax levies for each of the
6 following entities in the county:
7 (1) An airport authority operating under IC 8-22-3.
8 (2) A public library operating under IC 36-12.
9 (3) (2) A capital improvement board of managers operating under
10 IC 36-10.
11 (4) (3) A public transportation corporation operating under
12 IC 36-9-4.
13 (5) (4) A health and hospital corporation established under
14 IC 16-22-8.
15 (6) (5) Any other taxing unit (as defined in IC 6-1.1-1-21) that is
16 located in the county and has a governing body that is not
17 comprised of a majority of officials who are elected to serve on
18 the governing body.
19 Except as provided in subsection (c), the city-county legislative body
20 may reduce or modify but not increase a proposed operating and
21 maintenance budget or tax levy under this section.
22 (b) The board of each entity listed in subsection (a) shall, after
23 adoption of its proposed budget and tax levies, submit them, along with
24 detailed accounts, to the city clerk before September 2.
25 (c) The city-county legislative body or, when subsection (d) applies,
26 the fiscal body of an excluded city or town shall review the issuance of
27 bonds of an entity listed in subsection (a). Approval of the city-county
28 legislative body or, when subsection (d) applies, the fiscal body of an
29 excluded city or town is required for the issuance of bonds. The
30 city-county legislative body or the fiscal body of an excluded city or
31 town may not reduce or modify a budget or tax levy of an entity listed
32 in subsection (a) in a manner that would:
33 (1) limit or restrict the rights vested in the entity to fulfill the
34 terms of any agreement made with the holders of the entity's
35 bonds; or
36 (2) in any way impair the rights or remedies of the holders of the
37 entity's bonds.
38 (d) If the assessed valuation of a taxing unit is entirely contained
39 within an excluded city or town (as described in IC 36-3-1-7) that is
40 located in a county having a consolidated city, the governing body of
41 the taxing unit shall submit its proposed operating and maintenance
42 budget and tax levies to the city or town fiscal body for approval and
2025	IN 283—LS 6379/DI 116 15
1 not the city-county legislative body. Except as provided in subsection
2 (c), the fiscal body of the excluded city or town may reduce or modify
3 but not increase a proposed operating and maintenance budget or tax
4 levy under this section.
5 SECTION 12. IC 36-12-1-3, AS ADDED BY P.L.1-2005,
6 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 3. "Library board" means the fiscal and
8 administrative body of a public library.
9 SECTION 13. IC 36-12-1-10, AS ADDED BY P.L.1-2005,
10 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2025]: Sec. 10. (a) A Class 2 library may convert to Class 1
12 status if the Class 2 library board passes the following resolution of
13 conversion:
14 "__________ Public Library, by action of its library board,
15 resolves to convert to a Class 1 library district subject to
16 IC 36-12-2.".
17 (b) The resolution of conversion:
18 (1) must describe the territory included in the library district; and
19 (2) is irrevocable.
20 (c) The resolution of conversion must be signed by a majority of
21 library board members. Not later than five (5) days after approving the
22 resolution of conversion, the library board shall file a copy of the
23 resolution of conversion:
24 (1) in the office of the county recorder in the county where the
25 administrative office of the public library is located; and
26 (2) with the Indiana state library.
27 (d) The library board shall give notice of the resolution of
28 conversion to all officials who have appointive powers under
29 IC 36-12-2.
30 (e) The officials under subsection (d) shall appoint a library board
31 for the public library. Members of the old library board shall continue
32 to serve as library board members until:
33 (1) a majority of the new library board has been appointed; and
34 (2) the new appointees have taken an oath of office to serve on the
35 library board.
36 (f) Upon the:
37 (1) filing of the resolution of conversion;
38 (2) appointments under IC 36-12-2; and
39 (3) oath of office of the new library board under IC 36-12-2-19;
40 any current tax levies continue under authority granted to the Class 2
41 library before July 1, 2025, until the next succeeding calendar year, at
42 which time the tax provisions for Class 1 libraries under IC 36-12-3-12
2025	IN 283—LS 6379/DI 116 16
1 apply before July 1, 2025, and after June 30, 2025, the tax
2 provisions for Class 1 libraries under IC 36-12-3-12.1 and
3 IC 36-12-3-12.2 apply.
4 (g) The obligation of a political subdivision to levy and collect taxes
5 for library purposes remains effective after the conversion.
6 SECTION 14. IC 36-12-2-2, AS ADDED BY P.L.1-2005,
7 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2025]: Sec. 2. (a) A Class 1 public library is a municipal
9 corporation, known as __________ Public Library.
10 (b) In the name of the Class 1 public library under subsection (a),
11 the public library may:
12 (1) contract and be contracted with; and
13 (2) sue and be sued in court.
14 (c) Before January 1, 2026, each public library constitutes an
15 independent taxing unit for purposes of IC 6-1.1-1-21.
16 SECTION 15. IC 36-12-2-15, AS AMENDED BY P.L.104-2022,
17 SECTION 229, IS AMENDED TO READ AS FOLLOWS
18 [EFFECTIVE JULY 1, 2025]: Sec. 15. (a) This section applies to the
19 library board of a library district:
20 (1) located in a county having a population of more than
21 seventy-nine thousand (79,000) and less than eighty thousand
22 (80,000); and
23 (2) containing all or part of the territory of each school
24 corporation in the county.
25 (b) Notwithstanding section 9 of this chapter, the library board has
26 the following members:
27 (1) One (1) member appointed by the executive of the county in
28 which the library district is located and who is not a member of
29 the county executive.
30 (2) One (1) member appointed by the fiscal body of the county in
31 which the library district is located and who is not a member of
32 the county fiscal body.
33 (3) One (1) member appointed by the legislative body of the most
34 populous city in the library district and who is not a member of
35 the city legislative body.
36 (4) One (1) member appointed by the school board of each school
37 corporation having territory in the library district and who is not
38 a member of a governing body of a school corporation.
39 (c) An individual who is appointed under subsection (b) to serve as
40 a member of a library board must, before March 1 of each year, report
41 to the member's appointing authority concerning the work of the library
42 board and finances of the library during the preceding calendar year,
2025	IN 283—LS 6379/DI 116 17
1 including the rate of taxation determined under IC 36-12-3-12 (before
2 July 1, 2025).
3 SECTION 16. IC 36-12-3-7, AS ADDED BY P.L.1-2005,
4 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 7. (a) A library board may contract to provide or
6 receive library service from the following municipal corporations:
7 (1) Another public library.
8 (2) Any unit.
9 (b) A contract for library service between a public library and
10 another municipal corporation must outline the:
11 (1) manner and extent of library service; and
12 (2) amount of compensation for the extension of library service.
13 (c) This subsection does not apply to municipal corporations
14 described in section 8 of this chapter. A municipal corporation
15 receiving library service shall
16 (1) levy a tax sufficient to meet the amount of compensation
17 agreed upon under the contract; and
18 (2) expend all funds received under a contract for library services
19 chargeable to the contract.
20 For property taxes first due and payable after December 31, 2025,
21 the county fiscal body is the entity that shall levy the tax described
22 in subdivision (1) if the municipal corporation receiving the library
23 service is a public library.
24 SECTION 17. IC 36-12-3-8, AS AMENDED BY P.L.104-2022,
25 SECTION 230, IS AMENDED TO READ AS FOLLOWS
26 [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) This section applies to
27 municipal corporations located in a county having a population of more
28 than thirty-five thousand nine hundred (35,900) and less than thirty-six
29 thousand (36,000).
30 (b) A municipal corporation receiving library service under section
31 7 of this chapter shall
32 (1) levy a tax sufficient to meet the amount of compensation
33 agreed on under the contract; or
34 (2) make the contract payments with revenue derived from a tax
35 being imposed before the contract is approved by the municipal
36 corporation, including the part of local income tax revenue that is
37 not required to be dedicated to providing property tax relief.
38 (c) A library board providing service shall expend all funds received
39 under a contract for library services chargeable to the contract.
40 SECTION 18. IC 36-12-3-10, AS ADDED BY P.L.1-2005,
41 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2025]: Sec. 10. The library board may do the following:
2025	IN 283—LS 6379/DI 116 18
1 (1) Adopt a resolution to make loans or issue notes to refund the
2 loans in anticipation of revenues of the library that are expected
3 to be levied and collected or received during the term of the
4 loans. The term of a loan made under this subdivision may not be
5 more than five (5) years. Loans under this subdivision must be
6 made in the following manner:
7 (A) The resolution authorizing the loans must appropriate and
8 pledge to payment of the loans a sufficient amount of the
9 revenues in anticipation of which the loans are issued and out
10 of which the loans are payable.
11 (B) The loans must be evidenced by warrants or tax
12 anticipation notes of the library in terms designating:
13 (i) the nature of the consideration;
14 (ii) the time and place payable; and
15 (iii) the revenues in anticipation of which the loans are
16 issued and out of which the loans are payable.
17 (2) Borrow money from other persons.
18 (3) Issue, negotiate, and sell negotiable notes and bonds of the
19 public library.
20 (4) For taxes first due and payable in 2025 or before, levy,
21 assess, and collect, at the same time and in the same manner as
22 other taxes of the public library are levied, assessed, and
23 collected, a special tax in addition to the tax authorized by section
24 12 of this chapter, sufficient to pay all yearly interest on the
25 bonded and note indebtedness of the public library.
26 (5) Provide a sinking fund for the liquidation of the principal of
27 the bond when the principal of the bond becomes due.
28 (6) Receive, expend, or pledge tax revenue as set forth in this
29 chapter that the library receives from a special tax levy
30 assessed by the county to which a budget is submitted under
31 section 12.1 of this chapter.
32 SECTION 19. IC 36-12-3-11, AS ADDED BY P.L.1-2005,
33 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2025]: Sec. 11. (a) A library board shall establish funds to
35 keep money and securities of the public library as follows:
36 (1) All money collected or received from tax levies, interest on
37 investments, fees, fines, rentals, and other revenues:
38 (A) shall be deposited into the library operating fund, except
39 as otherwise provided in this section; and
40 (B) must be budgeted and expended in the manner required by
41 law.
42 (2) All money received from the sale of bonds or other evidences
2025	IN 283—LS 6379/DI 116 19
1 of indebtedness for the purpose of construction, reconstruction, or
2 alteration of library buildings, except the premium and accrued
3 interest on the bonds, shall be deposited into the construction
4 fund. The money shall be appropriated and expended solely for
5 the purpose for which the indebtedness is created.
6 (3) All money derived from the taxes levied for the purpose of
7 retiring bonds or other evidence of indebtedness, and any
8 premium or accrued interest that may be received, shall be
9 deposited into the bond and interest redemption fund. The fund
10 shall be used for no other purpose than the repayment of
11 indebtedness.
12 (4) Money or securities may be accumulated in any library
13 improvement reserve fund to anticipate necessary future capital
14 expenditures, such as:
15 (A) the purchase of land;
16 (B) the purchase and construction of buildings or structures;
17 (C) the construction of additions or improvements to existing
18 structures;
19 (D) the purchase of equipment; and
20 (E) all repairs or replacement of buildings or equipment.
21 (5) Money or securities accepted and received by the library
22 board as a grant, a gift, a donation, an endowment, a bequest, or
23 a trust may be:
24 (A) set aside in a separate fund or funds and shall be
25 expended, without appropriation, in accordance with the
26 conditions and purposes specified by the donor; or
27 (B) set aside in an account with a nonprofit corporation
28 established for the sole purpose of building permanent
29 endowments within a community (referred to as a "community
30 foundation"). The earnings on the funds in the account, either:
31 (i) deposited by the library; or
32 (ii) accepted by the community foundation on behalf of the
33 library;
34 may be distributed back to the library for expenditure, without
35 appropriation, in accordance with the conditions and purposes
36 specified by the donor. A community foundation that
37 distributes earnings under this clause is not required to make
38 more than one (1) distribution of earnings in a calendar year.
39 (6) All money received in payment for library services or for
40 library purchases made or to be made under the terms of a
41 contract between two (2) or more public libraries under section 7
42 of this chapter shall be deposited into the contractual service fund.
2025	IN 283—LS 6379/DI 116 20
1 This money shall be:
2 (A) expended solely for the purposes specified in the contract;
3 and
4 (B) disbursed without further appropriation.
5 (b) The library board may invest excess funds in accordance with
6 IC 5-13-9.
7 SECTION 20. IC 36-12-3-12, AS AMENDED BY P.L.159-2020,
8 SECTION 84, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2025]: Sec. 12. (a) This section applies to a library board
10 before July 1, 2025.
11 (a) (b) The library board shall determine the rate of taxation for the
12 library district that is necessary for the proper operation of the library.
13 The library board shall certify the rate to the county auditor.
14 (c) An additional rate under this section may be levied under
15 section 10(4) of this chapter for taxes first due and payable in 2025
16 or before.
17 (b) (d) If the library board fails to:
18 (1) give:
19 (A) a first published notice to the board's taxpayers of the
20 board's proposed budget and tax levy for the ensuing year at
21 least ten (10) days before the public hearing required under
22 IC 6-1.1-17-3; and
23 (B) a second published notice to the board's taxpayers of the
24 board's proposed budget and tax levy for the ensuing year at
25 least three (3) days before the public hearing required under
26 IC 6-1.1-17-3; or
27 (2) finally adopt the budget and fix the tax levy not later than
28 November 1;
29 the last preceding annual appropriation made for the public library is
30 renewed for the ensuing year, and the last preceding annual tax levy is
31 continued. Under this subsection, the treasurer of the library board
32 shall report the continued tax levy to the county auditor not later than
33 November 1.
34 SECTION 21. IC 36-12-3-12.1 IS ADDED TO THE INDIANA
35 CODE AS A NEW SECTION TO READ AS FOLLOWS
36 [EFFECTIVE JULY 1, 2025]: Sec. 12.1. (a) This section applies to a
37 library board after June 30, 2025.
38 (b) The library board shall prepare and submit to the county
39 fiscal body a recommended annual budget for the public library.
40 The public library shall be limited in all expenditures to the
41 provisions made for the expenditures by the fiscal body of the
42 county in which the boundaries of the public library are located.
2025	IN 283—LS 6379/DI 116 21
1 (c) If the territory of the public library is located in more than
2 one (1) county, the library board shall prepare and submit an
3 annual budget under this section to each county fiscal body.
4 SECTION 22. IC 36-12-3-12.2 IS ADDED TO THE INDIANA
5 CODE AS A NEW SECTION TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2025]: Sec. 12.2. (a) This section applies to
7 budget years beginning after December 31, 2025, and property
8 taxes first due and payable after December 31, 2025.
9 (b) Except as provided in section 8 of this chapter, a public
10 library may not levy property taxes. However, the territory within
11 the boundaries of a public library comprises a special taxing
12 district for the purpose of levying special benefit taxes by the
13 county fiscal body for public library purposes under this chapter.
14 The special benefit taxes levied and collected shall be paid to the
15 public library.
16 (c) The fiscal body of the county or counties to which a budget
17 is submitted under section 12.1 of this chapter shall determine and
18 provide the revenues necessary for the operation and maintenance
19 of the public library by:
20 (1) a special tax levy;
21 (2) a specific appropriation; or
22 (3) both of the methods described in subdivisions (1) and (2).
23 (d) Any special tax levied by the county fiscal body under this
24 chapter shall include amounts necessary to continue payment of
25 any debt service or obligation incurred by the public library before
26 January 1, 2026, in accordance with the terms of the debt service
27 or obligation incurred.
28 (e) If the territory of the public library is located in more than
29 one (1) county, each respective county shall provide an amount of
30 the revenue:
31 (1) required for the public library as set forth under
32 subsection (c); and
33 (2) in proportion to the county's assessed value within the
34 public library territory compared to the total assessed value
35 of the public library territory.
36 (f) For purposes of the property tax levy limits under
37 IC 6-1.1-18.5, a special tax levied under this section is included in
38 the calculation of the maximum permissible property tax levy for
39 the county. For property taxes first due and payable in 2026, the
40 county's maximum permissible ad valorem property tax levy under
41 IC 6-1.1-18.5 shall be increased by:
42 (1) the public library's maximum permissible ad valorem
2025	IN 283—LS 6379/DI 116 22
1 property tax levy under IC 6-1.1-18.5 for property taxes first
2 due and payable in 2025; multiplied by
3 (2) the maximum levy growth quotient under IC 6-1.1-18.5-2
4 for property taxes first due and payable in 2026.
5 The county's maximum permissible ad valorem property tax levy
6 under IC 6-1.1-18.5 for property taxes first due and payable in
7 2026 as adjusted under this subsection shall be used in the
8 determination of the county's maximum permissible ad valorem
9 property tax levy under IC 6-1.1-18.5 for property taxes first due
10 and payable in 2027 and thereafter.
11 SECTION 23. IC 36-12-3-12.3 IS ADDED TO THE INDIANA
12 CODE AS A NEW SECTION TO READ AS FOLLOWS
13 [EFFECTIVE JULY 1, 2025]: Sec. 12.3. (a) This section applies to:
14 (1) local income tax distributions; and
15 (2) excise tax distributions;
16 that are made or are based on a special tax levy imposed by a
17 county fiscal body for a public library under this chapter.
18 (b) Local income tax distributions and excise tax distributions
19 described in subsection (a) shall be allocated to the public library
20 for which the special tax levy under this chapter was imposed and
21 shall not be allocated to the county.
22 SECTION 24. IC 36-12-4-4, AS ADDED BY P.L.1-2005,
23 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
24 JULY 1, 2025]: Sec. 4. (a) A copy of the resolution adopting the
25 merger described in section 3(e) of this chapter must be filed with:
26 (1) the county recorder in each county in which merging library
27 districts are located; and
28 (2) the Indiana state library.
29 (b) After the resolution adopting the merger is filed, each library
30 board that is not the board of the primary library shall appoint four (4)
31 members to serve with the primary library board on an interim board.
32 (c) The interim board has the same duties and powers of a public
33 library board under IC 36-12-3.
34 (d) After the resolution adopting the merger is filed, the budgets of
35 the merging libraries shall be:
36 (1) combined for the remainder of the current year; and
37 (2) administered by the interim board.
38 (e) The interim board described in subsection (b) is dissolved on
39 December 31 of the year in which the merger takes place.
40 (f) The members of a merged library board shall be appointed under
41 IC 36-12-2, and the terms of office for the members of the merged
42 library board begin January 1 following the dissolution of the interim
2025	IN 283—LS 6379/DI 116 23
1 board.
2 (g) If a merger takes place after December 31 but before July 1 of
3 the ensuing year, the interim library board described in subsection (b)
4 shall present a new budget and tax rate to the department of local
5 government finance prepare and submit a new budget under
6 IC 36-12-3-12.1 to receive a new tax levy for the merged library
7 district.
8 (h) If a merger takes place after June 30 but before January 1 of the
9 ensuing year, the merged library board described in subsection (f) shall
10 present a new budget and tax rate to the department of local
11 government finance prepare and submit a new budget under
12 IC 36-12-3-12.1 to receive a new tax levy for the merged library
13 district.
14 SECTION 25. IC 36-12-7-6, AS ADDED BY P.L.1-2005,
15 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16 JULY 1, 2025]: Sec. 6. (a) A public library established as an 1852
17 subscription library is a municipal corporation and possesses the power
18 to:
19 (1) sue and be sued; and
20 (2) receive by donation books, money, paper, or other real or
21 personal property for the library.
22 (b) The shareholders of the 1852 subscription library are the
23 inhabitants of the municipality who have subscribed money for the
24 establishment of the library. The shareholders shall annually elect
25 seven (7) directors on the first Monday in January. However, if an
26 annual election is omitted, the directors remain in office until the next
27 annual election and until successors are chosen.
28 (c) The directors shall appoint one (1) director to be president at the
29 meetings. The president may vote only in case of a tie vote. A majority
30 of the directors constitutes a quorum. If a vacancy occurs among the
31 directors, the remaining directors shall elect a new director to fill the
32 vacancy, and the new director shall serve until the next annual election.
33 (d) The 1852 subscription library is governed by bylaws adopted by
34 the directors of the public library.
35 (e) The directors may adopt a common seal.
36 (f) The directors may levy a tax on the shareholders not to exceed
37 one dollar ($1) on each share during one (1) year. In addition, at the
38 annual meeting, the shareholders may increase the tax to a sum not to
39 exceed five dollars ($5) on each share during one (1) year. The
40 provisions in IC 36-12-3-12.1 and IC 36-12-3-12.2 do not apply to
41 a public library described in this section.
42 (g) The shareholders may:
2025	IN 283—LS 6379/DI 116 24
1 (1) appoint a treasurer and a librarian; or
2 (2) remove the treasurer or librarian;
3 at the pleasure of the shareholders.
4 SECTION 26. IC 36-12-7-7, AS AMENDED BY P.L.233-2015,
5 SECTION 348, IS AMENDED TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) The library board of a library
7 established as an 1899 township library consists of the school township
8 trustee in the township where the library is located and two (2)
9 residents of the township who are appointed by the board of
10 commissioners of the county where the library is located.
11 Appointments are for a term of four (4) years. Members of the library
12 board serve without compensation.
13 (b) The library board:
14 (1) shall control the purchase of books and the management of the
15 library;
16 (2) shall possess and retain custody of any books remaining in the
17 old township library in the township where the library is located;
18 (3) may receive donations, bequests, and legacies on behalf of the
19 library; and
20 (4) may receive copies of all documents of the state available for
21 distribution from the director of the state library.
22 (c) The 1899 township library is the property of the township. The
23 township trustee is responsible for the safe preservation of the township
24 library.
25 (d) Two (2) or more adjacent townships may unite to maintain a
26 township library. The library is controlled by either:
27 (1) a combined library board, which consists of each of the
28 uniting township boards appointed under subsection (a); or
29 (2) the one (1) township library board appointed under subsection
30 (a) of the uniting townships that receives funding for the
31 operation of the uniting township library.
32 (e) The legislative body of any township that contains a library
33 established as an 1899 township library may levy a tax annually of not
34 more than three and thirty-three hundredths cents ($0.0333) on each
35 one hundred dollars ($100) of taxable property assessed for taxation in
36 the township. If the legislative body does not levy the tax, a petition
37 signed by at least the number of registered voters required under
38 IC 3-8-6-3 to place a candidate on the ballot may be filed with the
39 circuit court clerk, who:
40 (1) shall determine if an adequate number of voters have signed
41 the petition; and
42 (2) if an adequate number of voters have signed the petition, shall
2025	IN 283—LS 6379/DI 116 25
1 certify the public question to the county election board under
2 IC 3-10-9-3. The county election board shall then cause to be
3 printed on the ballot for the township the following question in
4 the form prescribed by IC 3-10-9-4: "Shall a township library tax
5 be levied?".
6 If a majority of the votes cast on the question in subdivision (2) are in
7 the affirmative, the township trustee shall annually levy a tax of not less
8 than one and sixty-seven hundredths cents ($0.0167) and not more than
9 three and thirty-three hundredths cents ($0.0333) on each one hundred
10 dollars ($100) of taxable property in the township for the establishment
11 and support of a township library. The township tax shall be levied,
12 assessed, collected, and paid according to the procedure outlined in
13 IC 6-1.1.
14 (f) The tax levy under subsection (e) shall be discontinued when the
15 question of discontinuing the levy has been submitted to a vote
16 according to the procedure provided in subsection (e) and the majority
17 of the votes cast on the question is in the negative.
18 (g) If a public library that is open for the use of all the residents of
19 the township is located in the township, the proceeds of the tax
20 collected under subsection (e) shall be paid to that public library.
21 (h) In a township outside a city that contains a library:
22 (1) established by private donations of the value of at least ten
23 thousand dollars ($10,000), including the real estate and buildings
24 used for the library; and
25 (2) used for the benefit of all the inhabitants of the township;
26 the township trustee of the township shall annually levy and collect not
27 more than two cents ($0.02) on each one hundred dollars ($100) upon
28 the taxable property within the limits of the township. The money shall
29 be paid to the trustees of the library, to be applied by the trustees for
30 the purchase of books and the payment of the maintenance costs for the
31 library. When it becomes necessary to purchase additional ground for
32 the extension or protection of library buildings already established by
33 private donation, the trustee, with the consent of the county legislative
34 body, may annually levy and collect not more than one and sixty-seven
35 hundredths cents ($0.0167) on each one hundred dollars ($100) of
36 taxable property of the township for not more than three (3) years
37 successively, to be expended by the trustees for the purchase of
38 property and the construction and enlargement of library buildings.
39 The provisions in IC 36-12-3-12.1 and IC 36-12-3-12.2 do not apply
40 to a public library described in this section.
41 (i) The 1899 township library is free to all the residents of the
42 township.
2025	IN 283—LS 6379/DI 116 26
1 SECTION 27. IC 36-12-7-8, AS AMENDED BY P.L.11-2023,
2 SECTION 135, IS AMENDED TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2025]: Sec. 8. (a) As used in this section:
4 (1) "county fiscal body" means the fiscal body of a county in
5 which a private donation library is located;
6 (2) "library board" means a library board established under
7 IC 20-14 (before its repeal) or this article in a county in which a
8 private donation library is located; and
9 (3) "private donation library" means a public library:
10 (A) established by private donation;
11 (B) located in a city having a population of more than one
12 hundred ten thousand (110,000) and less than one hundred
13 fifty thousand (150,000);
14 (C) that contains at least twenty-five thousand (25,000)
15 volumes;
16 (D) that has real property valued at at least one hundred
17 thousand dollars ($100,000); and
18 (E) that is open and free to the residents of the city.
19 (b) The: library board shall:
20 (1) library board shall, for property taxes first due and
21 payable in 2025 or before, levy a tax under IC 6-1.1 in an
22 amount not less than sixty-seven hundredths of one cent
23 ($0.0067) and not more than one and sixty-seven hundredths
24 cents ($0.0167) on each one hundred dollars ($100) of the
25 assessed valuation of all the real and personal property in the
26 county; and
27 (2) county fiscal body shall, for property taxes first due and
28 payable after 2025, levy a tax under IC 6-1.1 in an amount not
29 less than sixty-seven hundredths of one cent ($0.0067) and not
30 more than one and sixty-seven hundredths cents ($0.0167) on
31 each one hundred dollars ($100) of the assessed valuation of
32 all the real and personal property in the county.
33 (2) (c) The library board shall keep the tax taxes levied and
34 received under subdivision (1) subsection (b) separate from all other
35 funds of the library board. and
36 (3) (d) The library board shall use the tax taxes levied and
37 received under subdivision (1): subsection (b):
38 (A) (1) if the membership of the trustees of the private donation
39 library includes at least one (1) member or appointee of the
40 library board and at least one (1) appointee of the county fiscal
41 body, for distributions of the full amounts of the tax received to
42 the trustees of the private donation library at the time the tax is
2025	IN 283—LS 6379/DI 116 27
1 received by the library board; or
2 (B) (2) if the membership of the trustees of the private donation
3 library does not include at least one (1) member or appointee of
4 the library board and at least one (1) appointee of the county
5 fiscal body, at the discretion of the library board for:
6 (i) (A) library board purposes; or
7 (ii) (B) quarterly distributions to the trustees of the private
8 donation library.
9 (c) (e) If requested by the trustees of the private donation library, the
10 library board shall designate a member of the library board or appoint
11 an individual to serve as a trustee of the private donation library. If
12 requested by the trustees of the private donation library, the county
13 fiscal body shall appoint an individual to serve as a trustee of the
14 private donation library.
15 (d) (f) The trustees of the private donation library shall annually
16 submit a budget to the library board.
17 (e) (g) The trustees of the private donation library shall expend
18 amounts received under subsection (b)(3)(A) (d)(1) or (b)(3)(B)(ii)
19 (d)(2)(B) for the support, operation, and maintenance of the private
20 donation library. The trustees shall:
21 (1) keep the money separate from all other funds;
22 (2) record:
23 (A) the amount of money received;
24 (B) to whom and when the money is paid out; and
25 (C) for what purpose the money is used;
26 in a book kept by the trustees; and
27 (3) make an annual report of the matters referred to in subdivision
28 (2) to the library board.
29 (f) (h) For purposes of the property tax levy limits under
30 IC 6-1.1-18.5, the tax levied by the library board or the county fiscal
31 body under subsection (b)(1) (b) is not included in the calculation of
32 the maximum permissible property tax levy for the public library or the
33 county, whichever is applicable.
34 SECTION 28. IC 36-12-10-1.5 IS ADDED TO THE INDIANA
35 CODE AS A NEW SECTION TO READ AS FOLLOWS
36 [EFFECTIVE JULY 1, 2025]: Sec. 1.5. As used in this chapter,
37 "governing authority" means:
38 (1) before July 1, 2025, the library board; and
39 (2) after June 30, 2025, the fiscal body of the county to which
40 a budget is submitted under IC 36-12-3-12.1. If the territory
41 of the library district is located in more than one (1) county,
42 the governing authority shall be a joint body of each
2025	IN 283—LS 6379/DI 116 28
1 applicable county.
2 SECTION 29. IC 36-12-10-9, AS AMENDED BY P.L.38-2021,
3 SECTION 111, IS AMENDED TO READ AS FOLLOWS
4 [EFFECTIVE JULY 1, 2025]: Sec. 9. (a) If the execution of the lease
5 as originally agreed upon, or as modified by agreement, is authorized
6 by the library board, governing authority, the library board shall give
7 notice of the signing of the lease by publication one (1) time in a
8 newspaper of general circulation printed in the English language in the
9 district of the municipal corporation or in each municipal corporation
10 district if the proposed lease is a joint lease. If a newspaper is not
11 published in the district, the notice shall be published in any newspaper
12 of general circulation published in the county.
13 (b) Fifty (50) or more taxpayers in the municipal corporation or
14 corporations who will be affected by the proposed lease and who are of
15 the opinion that the execution of the lease is not necessary or that the
16 proposed rental is not a fair and reasonable rental may file a petition in
17 the office of the county auditor of the county in which the municipal
18 corporation or corporations are located. The petition must be filed not
19 later than thirty (30) days after the publication of notice of the
20 execution of the lease and must set forth objections and facts showing
21 that the execution of the lease is unnecessary or unwise or that the lease
22 rental is not fair and reasonable, as the case may be.
23 (c) Upon the filing of a petition, the county auditor shall
24 immediately certify to the department of local government finance a
25 copy of the petition, together with other data that may be necessary to
26 present the questions involved. Upon receipt of the certified petition
27 and information, the department of local government finance shall fix
28 a time and place for a hearing of the matter not less than five (5) or
29 more than thirty (30) days after the department's receipt of the petition
30 and information. The hearing shall be held in the municipal corporation
31 or corporations, in the county where the municipal corporation or
32 corporations are located, or through electronic means.
33 (d) Notice of the hearing shall be given by the department of local
34 government finance to the governing authority, the members of the
35 library board, and to the first ten (10) taxpayer petitioners on the
36 petition by a letter signed by the department of local government
37 finance. The postage of the notice shall be prepaid, and the notice shall
38 be addressed to the persons at their usual place of residence and mailed
39 at least five (5) days before the date of the hearing. The decision of the
40 department of local government finance on the appeal regarding the
41 necessity for the execution of the lease and whether the rental is fair
42 and reasonable is final. A lease may be amended by the parties by
2025	IN 283—LS 6379/DI 116 29
1 following the procedure under this chapter.
2 (e) An action to contest the validity of the lease or an amendment to
3 the lease or to enjoin the performance of any of the terms and
4 conditions of the lease must be brought not later than thirty (30) days
5 after publication of notice of the execution of the lease or an
6 amendment to the lease by the library board of the municipal
7 corporation or corporations. If an appeal has been taken to the
8 department of local government finance, action must be brought not
9 later than thirty (30) days after the decision of the department.
10 SECTION 30. IC 36-12-10-13, AS AMENDED BY P.L.42-2018,
11 SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2025]: Sec. 13. (a) The following apply to a municipal
13 corporation that executes a lease under this chapter:
14 (1) For property taxes first due and payable in 2025 or before,
15 the municipal corporation shall annually levy a special tax, in
16 addition to other taxes authorized by law, sufficient to produce
17 each year the necessary funds with which to pay the lease rental
18 stipulated to be paid by the municipal corporation under the lease.
19 (2) For property taxes first due and payable after 2025, the
20 county fiscal body shall annually levy a special tax, in addition
21 to other taxes authorized by law, sufficient to produce each
22 year the necessary funds with which to pay the lease rental
23 stipulated to be paid by the municipal corporation under the
24 lease.
25 (b) A levy under this section shall be reviewed in accordance with
26 IC 6-1.1-17.
27 (c) The first tax levy shall be made at the first annual tax levy period
28 following the date of the execution of the lease. The first annual levy
29 must be sufficient to pay the estimated amount of the first annual lease
30 rental payment to be made under the lease.
31 SECTION 31. IC 36-12-12-1.5 IS ADDED TO THE INDIANA
32 CODE AS A NEW SECTION TO READ AS FOLLOWS
33 [EFFECTIVE JULY 1, 2025]: Sec. 1.5. As used in this chapter,
34 "governing authority" means:
35 (1) before July 1, 2025, the library board; and
36 (2) after June 30, 2025, the fiscal body of the county to which
37 a budget is submitted under IC 36-12-3-12.1. If the territory
38 of the library district is located in more than one (1) county,
39 the governing authority shall be a joint body of each county.
40 SECTION 32. IC 36-12-12-3, AS ADDED BY P.L.1-2005,
41 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
42 JULY 1, 2025]: Sec. 3. (a) Before a library board may collect or
2025	IN 283—LS 6379/DI 116 30
1 receive property taxes for a capital projects fund in a particular year,
2 the library board governing authority must, after January 1 and before
3 May 15 of the immediately preceding year, hold a public hearing on a
4 proposed plan and pass a resolution to adopt a plan. and
5 (b) In the case of a governing authority defined in section 1.5(1)
6 of this chapter, submit the plan must be submitted for approval or
7 rejection by the fiscal body designated in section 4 of this chapter.
8 (b) (c) The department of local government finance shall prescribe
9 the format of the plan. A plan must apply to at least the three (3) years
10 immediately following the year the plan is adopted. A plan must
11 estimate for each year to which the plan applies the nature and amount
12 of proposed expenditures from the capital projects fund. A plan must
13 estimate:
14 (1) the source of all revenue to be dedicated to the proposed
15 expenditures in the upcoming budget year; and
16 (2) the amount of property taxes to be collected in that year and
17 retained in the fund for expenditures proposed for a later year.
18 (c) (d) If a hearing is scheduled under subsection (a), the governing
19 body authority shall publish the proposed plan and a notice of the
20 hearing in accordance with IC 5-3-1-2(b).
21 SECTION 33. IC 36-12-12-4, AS ADDED BY P.L.1-2005,
22 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2025]: Sec. 4. (a) This section applies to a governing
24 authority defined in section 1.5(1) of this chapter.
25 (a) (b) If the library board governing authority passes a resolution
26 under section 3 of this chapter, not later than ten (10) days after passing
27 the resolution the board governing authority shall transmit a certified
28 copy of the plan to the appropriate unit's fiscal body or fiscal bodies,
29 whichever applies. The appropriate unit's fiscal body is determined as
30 follows:
31 (1) If the library district is located entirely within the corporate
32 boundaries of a municipality, the appropriate unit's fiscal body is
33 the fiscal body of the municipality.
34 (2) If the library district is not described by subdivision (1) and
35 the district is located entirely within the boundaries of a township,
36 the appropriate unit's fiscal body is the fiscal body of the
37 township.
38 (3) If the library district is not described by subdivision (1) or (2),
39 the appropriate fiscal body is the fiscal body of each county in
40 which the library district is located.
41 (b) (c) The appropriate fiscal body shall hold a public hearing on the
42 plan not later than thirty (30) days after receiving a certified copy of the
2025	IN 283—LS 6379/DI 116 31
1 plan and either reject or approve the plan before August 1 of the year
2 that the plan is received.
3 SECTION 34. IC 36-12-12-5, AS AMENDED BY P.L.137-2012,
4 SECTION 124, IS AMENDED TO READ AS FOLLOWS
5 [EFFECTIVE JULY 1, 2025]: Sec. 5. (a) If the library board governing
6 authority passes a resolution under section 3 of this chapter and, in the
7 case of a governing authority defined in section 1.5(1) of this
8 chapter, the appropriate unit's fiscal body or bodies approve the plan,
9 the library board governing authority shall publish notice of adoption
10 in accordance with IC 5-3-1-2(i).
11 (b) Ten (10) or more taxpayers who will be affected by the adopted
12 plan may file a petition with the county auditor of a county in which the
13 library district is located not later than ten (10) days after the
14 publication of the notice of adoption required by subsection (a), setting
15 forth the taxpayers' objections to the proposed plan. The county auditor
16 shall immediately certify the petition to the department of local
17 government finance.
18 SECTION 35. IC 36-12-12-6, AS ADDED BY P.L.1-2005,
19 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2025]: Sec. 6. The department of local government finance
21 shall, within a reasonable time, fix a date for a hearing on the petition
22 filed under section 5(b) of this chapter. The hearing shall be held in a
23 county in which the library district is located. The department of local
24 government finance shall notify:
25 (1) the library board; and
26 (2) the governing authority; and
27 (2) (3) the first ten (10) taxpayers whose names appear on the
28 petition;
29 at least five (5) days before the date fixed for the hearing.
30 SECTION 36. IC 36-12-12-7, AS ADDED BY P.L.1-2005,
31 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2025]: Sec. 7. (a) After a hearing upon the petition under
33 section 6 of this chapter, the department of local government finance
34 shall certify the department's approval, disapproval, or modification of
35 the plan to the library board governing authority and the auditor of the
36 county.
37 (b) A:
38 (1) taxpayer who signed a petition filed under section 5 of this
39 chapter; or
40 (2) library district against which a petition under section 5 of this
41 chapter is filed;
42 may petition for judicial review of the final determination of the
2025	IN 283—LS 6379/DI 116 32
1 department of local government finance under subsection (a). The
2 petition must be filed in the tax court not more than forty-five (45) days
3 after the department certifies the department's action under subsection
4 (a).
5 SECTION 37. IC 36-12-12-9, AS ADDED BY P.L.1-2005,
6 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2025]: Sec. 9. (a) A library board governing authority may
8 amend an adopted and approved plan to:
9 (1) provide money for the purposes described in section 2(b)(4)
10 of this chapter; or
11 (2) supplement money accumulated in the capital projects fund
12 for those purposes.
13 (b) If an emergency arises that results in costs that exceed the
14 amount accumulated in the fund for the purposes described in section
15 2(b)(4) of this chapter, the library board governing authority must
16 immediately apply to the department of local government finance for
17 a determination that an emergency exists. If the department of local
18 government finance determines that an emergency exists, the library
19 board governing authority may adopt a resolution to amend the plan.
20 The amendment is not subject to the deadline and the procedures for
21 adoption described in section 3 of this chapter. However, the
22 amendment is subject to modification by the department of local
23 government finance.
24 (c) An amendment adopted under this section may require the
25 payment of eligible emergency costs from:
26 (1) money accumulated in the capital projects fund for other
27 purposes; or
28 (2) money to be borrowed from other funds of the library board or
29 from a financial institution.
30 The amendment may also provide for an increase in the property tax
31 rate for the capital projects fund to restore money to the fund or to pay
32 principal and interest on a loan. However, before the property tax rate
33 for the fund may be increased, the library board a governing authority
34 defined in section 1.5(1) of this chapter must submit and obtain the
35 approval of the appropriate fiscal body or bodies, as provided in section
36 4 of this chapter. An increase to the property tax rate for the capital
37 projects fund is effective for property taxes first due and payable for the
38 year next certified by the department of local government finance under
39 IC 6-1.1-17-16. However, the property tax rate may not exceed the
40 maximum rate established under section 10 of this chapter.
41 SECTION 38. IC 36-12-12-10, AS ADDED BY P.L.1-2005,
42 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
2025	IN 283—LS 6379/DI 116 33
1 JULY 1, 2025]: Sec. 10. To provide for the capital projects fund, the
2 library board governing authority may, for each year in which a plan
3 adopted under section 3 of this chapter is in effect, impose a property
4 tax rate that does not exceed one and sixty-seven hundredths cents
5 ($0.0167) on each one hundred dollars ($100) of assessed valuation of
6 the library district. This rate must be advertised in the same manner as
7 other property tax rates.
2025	IN 283—LS 6379/DI 116