Ind. Code ch. 36-1-8

in effect

Ind. Code § 36-1-8-1 Application of chapter

Sec. 1. This chapter applies to all political subdivisions. [Pre-Local Government Recodification Citations: 18-6-18-3 part; 19-11-2-1 part.] As added by Acts 1980, P.L.211, SEC.1.

Ind. Code § 36-1-8-2 Cash change fund; establishment; use

Sec. 2. (a) The fiscal body of a political subdivision may permit any of its officers or employees having a duty to collect cash revenues to establish a cash change fund. Such a fund must be established by a warrant drawn on the appropriate fund of the political subdivision in favor of the officer or employee, in an amount determined by the fiscal body, without need for appropriation to be made for it. (b) The officer or employee who establishes a cash change fund shall convert the warrant to cash, shall use it to make change when collecting cash revenues, and shall account for it in the same manner as is required for other funds of the political subdivision. (c) The fiscal body shall require the entire cash change fund to be returned to the appropriate fund whenever there is a change in the custodian of the fund or if the fund is no longer needed. [Pre-Local Government Recodification Citation: 18-6-18-1.] As added by Acts 1980, P.L.211, SEC.1.

Ind. Code § 36-1-8-3 Petty cash fund; establishment; use; reimbursement

Sec. 3. (a) The fiscal body of a political subdivision may establish a petty cash fund for any of its offices in a like manner to that prescribed by section 2 of this chapter. (b) The custodian of a petty cash fund shall use it to pay small or emergency items of operating expense. A receipt shall be taken for each expenditure made from the fund. (c) The custodian of a petty cash fund shall periodically file a voucher, with all original receipts totaling the cash claimed expended being attached to it, so that the fund can be reimbursed for expenditures from it. Reimbursement must be approved and made in the same manner as is required for other expenditures of the political subdivision. [Pre-Local Government Recodification Citation: 18-5-18-2.] As added by Acts 1980, P.L.211, SEC.1.

Ind. Code § 36-1-8-4 Transfer of prescribed amount to fund in need of money for cash flow purposes; extension of time for transfer

Sec. 4. (a) The fiscal body of a political subdivision may, by ordinance or resolution, permit the transfer of a prescribed amount, for a prescribed period, to a fund in need of money for cash flow purposes from another fund of the political subdivision if all these conditions are met: (1) It must be necessary to borrow money to enhance the fund that is in need of money for cash flow purposes. (2) There must be sufficient money on deposit to the credit of the other fund that can be temporarily transferred. (3) Except as provided in subsection (b), the prescribed period must end during the budget year of the year in which the transfer occurs. (4) The amount transferred must be returned to the other fund at the end of the prescribed period. (5) Only revenues derived from the levying and collection of property taxes or special taxes or from operation of the political subdivision may be included in the amount transferred. (b) If the fiscal body of a political subdivision determines that an emergency exists that requires an extension of the prescribed period of a transfer under this section, the prescribed period may be extended for not more than six (6) months beyond the budget year of the year in which the transfer occurs if the fiscal body does the following: (1) Passes an ordinance or a resolution that contains the following: (A) A statement that the fiscal body has determined that an emergency exists. (B) A brief description of the grounds for the emergency. (C) The date the loan will be repaid that is not more than six (6) months beyond the budget year in which the transfer occurs. (2) Immediately forwards the ordinance or resolution to the state board of accounts and the department of local government finance. [Pre-Local Government Recodification Citation: 19-11-2-2.] As added by Acts 1980, P.L.211, SEC.1. Amended by P.L.57-1991, SEC.3; P.L.10-1997, SEC.24; P.L.90-2002, SEC.460.

Ind. Code § 36-1-8-5 Funds raised by general or special tax levy; disposition of unused balance; transfers to local rainy day fund

Sec. 5. (a) This section applies to all funds raised by a general or special tax levy on all the taxable property of a political subdivision. (b) Whenever the purposes of a tax levy have been fulfilled and an unused and unencumbered balance remains in the fund, the fiscal body of the political subdivision shall order the balance of that fund to be transferred as follows, unless a statute provides that it be transferred otherwise: (1) Funds of a county, to the general fund or rainy day fund of the county, as provided in section 5.1 of this chapter. (2) Funds of a municipality, to the general fund or rainy day fund of the municipality, as provided in section 5.1 of this chapter. (3) Funds of a township for redemption of township assistance obligations, to the township assistance fund of the township or rainy day fund of the township, as provided in section 5.1 of this chapter. (4) Funds of any other political subdivision, to the general fund or rainy day fund of the political subdivision, as provided in section 5.1 of this chapter. However, if the political subdivision is dissolved or does not have a general fund or rainy day fund and is not a school corporation, then to the general fund of each of the units located in the political subdivision in the same proportion that the assessed valuation of the unit bears to the total assessed valuation of the political subdivision. In the case of a school corporation, the school corporation may transfer the amount received to any of its funds. (c) Whenever an unused and unencumbered balance remains in the civil township fund of a township and a current tax levy for the fund is not needed, the township fiscal body may order any part of the balance of that fund transferred to the debt service fund of the school corporation located in or partly in the township. However, if more than one (1) school corporation is located in or partly in the township, then any sum transferred shall be transferred to the debt service fund of each of those school corporations in the same proportion that the part of the assessed valuation of the school corporation in the township bears to the total assessed valuation of the township. (d) Whenever any township has collected any fund for the special or specific purpose of erecting or constructing a school building and the township trustee of the township decides to abandon the proposed work of erecting or constructing the school building, the township trustee of the township shall transfer the fund collected for the special or specific purpose to the township fund of the township, upon the order of the township board to make the transfer. It is lawful thereafter to use the funds for any purpose for which the township funds of the township may be used. (e) Transfers to a political subdivision's rainy day fund may be made at any time during the political subdivision's fiscal year. [Pre-Local Government Recodification Citations: 17-4-33-1; 19-11-1-1; 19-11-1-2; 19-11-1-4.] As added by Acts 1980, P.L.211, SEC.1. Amended by P.L.251-2001, SEC.1; P.L.173-2003, SEC.18; P.L.73-2005, SEC.171; P.L.169-2006, SEC.46; P.L.2-2006, SEC.185; P.L.1-2007, SEC.238; P.L.233-2015, SEC.328; P.L.244-2017, SEC.124.

Ind. Code § 36-1-8-5.1 Rainy day funds established by political subdivisions; transfers by schools

Sec. 5.1. (a) A political subdivision may establish a rainy day fund by the adoption of: (1) an ordinance, in the case of a county, city, or town; or (2) a resolution, in the case of any other political subdivision. (b) An ordinance or a resolution adopted under this section must specify the following: (1) The purposes of the rainy day fund. (2) The sources of funding for the rainy day fund, which may include the following: (A) Unused and unencumbered funds under section 5 of this chapter. (B) Any other funding source: (i) specified in the ordinance or resolution adopted under this section; and (ii) not otherwise prohibited by law. (c) The rainy day fund is subject to the same appropriation process as other funds that receive tax money. (d) In any fiscal year, a political subdivision may, at any time, do the following: (1) Transfer any unused and unencumbered funds specified in subsection (b)(2)(A) from any fiscal year to the rainy day fund. (2) Transfer any other unobligated cash balances from any fiscal year that are not otherwise identified in subsection (b)(2)(A) or section 5 of this chapter to the rainy day fund as long as the transfer satisfies the following requirements: (A) The amount of the transfer is authorized by and identified in an ordinance or resolution. (B) The amount of the transfer is not more than: (i) before January 1, 2021, ten percent (10%); (ii) after December 31, 2020, and before January 1, 2025, fifteen percent (15%); and (iii) after December 31, 2024, ten percent (10%); of the political subdivision's total annual budget adopted under IC 6-1.1-17 for that fiscal year. (C) The transfer is not made from a debt service fund. (e) A political subdivision may use only the funding sources specified in subsection (b)(2)(A) or in the ordinance or resolution establishing the rainy day fund. The political subdivision may adopt a subsequent ordinance or resolution authorizing the use of another funding source. (f) The department of local government finance may not reduce the actual or maximum permissible levy of a political subdivision as a result of a balance in the rainy day fund of the political subdivision. (g) A county, city, or town may at any time, by ordinance or resolution, transfer to: (1) its general fund; or (2) any other appropriated funds of the county, city, or town; money that has been deposited in the rainy day fund of the county, city, or town. (h) A school corporation may at any time, by resolution, transfer to its education fund or operations fund money that has been deposited in its rainy day fund. As added by P.L.251-2001, SEC.2. Amended by P.L.90-2002, SEC.461; P.L.173-2003, SEC.19; P.L.267-2003, SEC.15; P.L.81-2004, SEC.45; P.L.53-2011, SEC.2; P.L.105-2013, SEC.1; P.L.288-2013, SEC.71; P.L.197-2016, SEC.120; P.L.140-2018, SEC.29; P.L.38-2021, SEC.79; P.L.68-2025, SEC.233.

Ind. Code § 36-1-8-6 Reversion of unused appropriation; funds received from state or the United States

Sec. 6. (a) The unused and unencumbered balance of an appropriation made by a unit for any purpose reverts, at the end of the unit's fiscal year, to the fund from which the appropriation was made, unless a statute provides otherwise. (b) Any amount necessary to pay a bill, judgment, or valid claim concerning any balance that reverts under subsection (a) shall be taken from the fund to which it reverted to pay the bill, judgment, or valid claim. (c) Notwithstanding subsection (a), if an appropriation is made by a unit to establish or maintain a program of self-insurance by the unit, the balance described in subsection (a) reverts to the fund only if the fiscal body of the unit specifically adopts subsection (a) when it makes the appropriation. (d) Subsection (a) does not apply to dedicated or appropriated funds received from the state or the United States, to funds of municipal utilities, or to balances of appropriations made from the general fund of a city for transfer to the aviation fund of the city. [Pre-Local Government Recodification Citations: 17-1-24-23; 17-1-24-23.5; 18-1-6-7; 18-6-11-2; 18-6-11-3; 18-6-11-7.] As added by Acts 1980, P.L.211, SEC.1.

Ind. Code § 36-1-8-7 Bank deposit or cash on hand constituting pledge or guaranty

Sec. 7. A bank deposit or cash on hand, together with any accrued interest, constituting a pledge or guaranty on behalf of a political subdivision shall be deposited as a part of the funds of the political subdivision and be credited to the proper funds by the officers having custody of those funds after one (1) year has elapsed after the period for which the pledge or guaranty has been posted to a special account. [Pre-Local Government Recodification Citation: 18-6-11-4.] As added by Acts 1980, P.L.211, SEC.1.

Ind. Code § 36-1-8-7.5 Transfer of prescribed amount to regional development authority for regional transportation infrastructure project

Sec. 7.5. (a) The fiscal body of a county or municipality participating in a regional development authority may, by ordinance, transfer a prescribed amount, for a prescribed period, to a regional development authority to carry out the purposes of IC 36-9-43, including providing local funds to be used as part of a supplemental funding agreement under IC 36-9-43. (b) The amounts transferred by a county or municipality under subsection (a) may be from: (1) the general fund or rainy day fund of the county or municipality; or (2) any other fund of the county or municipality that is not otherwise restricted by law for specified uses. As added by P.L.229-2017, SEC.35.

Ind. Code § 36-1-8-8 Protection of employees reporting violations of federal, state, or local laws; disciplinary actions; procedures

Sec. 8. (a) An employee of a political subdivision may report in writing the existence of: (1) a violation of a federal law or regulation; (2) a violation of a state law or rule; (3) a violation of an ordinance of a political subdivision; or (4) the misuse of public resources; first to a supervisor or appointing authority, unless the supervisor or appointing authority is the person whom the employee believes is committing the violation or misuse of public resources. In that case, the employee may report the violation or misuse of public resources in writing to either the supervisor or appointing authority or any official or agency entitled to receive a report from the state ethics commission under IC 4-2-6-4(b)(2)(G) or IC 4-2-6-4(b)(2)(H). If a good faith effort is not made to correct the problem within a reasonable time, the employee may submit a written report of the incident to any person, agency, or organization. (b) For having made a report under subsection (a), an employee may not: (1) be dismissed from employment; (2) have salary increases or employment related benefits withheld; (3) be transferred or reassigned; (4) be denied a promotion that the employee otherwise would have received; or (5) be demoted. (c) Notwithstanding subsections (a) and (b), an employee must make a reasonable attempt to ascertain the correctness of any information to be furnished and may be subject to disciplinary actions for knowingly furnishing false information, including suspension or dismissal, as determined by the employee's appointing authority or the appointing authority's designee. However, any employee disciplined under this subsection is entitled to process an appeal of the disciplinary action under the procedure set forth in any personnel policy or collective bargaining agreement adopted by the political subdivision. (d) An employer who violates this section commits a Class A infraction. As added by P.L.32-1987, SEC.4. Amended by P.L.9-1990, SEC.16.

Ind. Code § 36-1-8-8.5 Establishing fraud hotline

Sec. 8.5. An executive or a fiscal officer of a unit may establish a fraud hotline telephone number maintained by the unit that the public may use to report suspected fraudulent activity concerning officers or employees of the unit, including misuse of public funds. As added by P.L.181-2015, SEC.47.

Ind. Code § 36-1-8-9 Riverboat fund establishment; administration and investment of funds

Sec. 9. (a) Each unit that receives: (1) tax revenue under IC 4-33-12-6 or IC 4-33-13; (2) revenue under an agreement to share the tax revenue received under IC 4-33-12 or IC 4-33-13 by another unit; or (3) revenue under a development agreement (as defined in section 9.5 of this chapter); may establish a riverboat fund. Money in the fund may be used for any legal or corporate purpose of the unit. (b) The riverboat fund established under subsection (a) shall be administered by the unit's treasurer, and the expenses of administering the fund shall be paid from money in the fund. Money in the fund not currently needed to meet the obligations of the fund may be invested in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund. Money in the fund at the end of a particular fiscal year does not revert to the unit's general fund. As added by P.L.90-1997, SEC.7. Amended by P.L.199-2005, SEC.28.

Ind. Code § 36-1-8-9.1 Legalization of certain funds established before July 1, 1997; fund considered riverboat fund for purposes of section 9 of this chapter

Sec. 9.1. (a) A fund that: (1) was established by a unit before July 1, 1997; and (2) would have been considered a riverboat fund for purposes of section 9 of this chapter if section 9 of this chapter had been in effect before July 1, 1997; is legalized and validated. (b) A fund described in subsection (a) is considered a riverboat fund for purposes of section 9 of this chapter. As added by P.L.220-2011, SEC.640.

Ind. Code § 36-1-8-9.2 Separate fund for deposit of county slot machine wagering fee revenue

Sec. 9.2. (a) Each unit that receives: (1) tax revenue under IC 4-35-8.5; or (2) revenue under an agreement to share the tax revenue received under IC 4-35-8.5 by another unit; shall establish a fund, separate from the unit's general fund, into which the revenue shall be deposited. Money in the fund may be used for any legal or corporate purpose of the unit. (b) The fund established by subsection (a) shall be administered by the unit's treasurer, and the expenses of administering the fund shall be paid from money in the fund. Money in the fund not currently needed to meet the obligations of the fund may be invested in the same manner as other public funds may be invested. Interest that accrues from these investments shall be deposited in the fund. Money in the fund at the end of a particular fiscal year does not revert to the unit's general fund. As added by P.L.142-2009, SEC.31.

Ind. Code § 36-1-8-9.5 "Development agreement"

Sec. 9.5. (a) As used in this section, "development agreement" means an agreement between a licensed owner (as defined in IC 4-33-2-13) and a unit setting forth the licensed owner's financial commitments to support economic development in the unit. (b) Funds received by a unit under a development agreement are public funds (as defined in IC 5-13-4-20). (c) Funds received under a development agreement: (1) may not be used to reduce the unit's maximum levy under IC 6-1.1-18.5 but may be used at the discretion of the unit to reduce the property tax levy of the unit for a particular year; (2) may be used for any legal or corporate purpose of the unit, including the pledge of money to bonds, leases, or other obligations under IC 5-1-14-4; and (3) are considered miscellaneous revenue. As added by P.L.199-2005, SEC.29.

Ind. Code § 36-1-8-10 Board; political affiliation of board appointees

Sec. 10. (a) As used in this section, "board" means an administration, an agency, an authority, a board, a bureau, a commission, a committee, a council, a department, a division, an institution, an office, a service, or another similarly designated body of a political subdivision. (b) Whenever a law or political subdivision's resolution requires that an appointment to a board be conditioned upon the political affiliation of the appointee, or that the membership of a board not exceed a stated number of members from the same political party, at the time of an appointment, one (1) of the following must apply to the appointee: (1) The two (2) most recent primary elections in Indiana in which the appointee voted were both primary elections held by the party with which the appointee claims affiliation. The requirement of this subdivision applies only to an individual appointed after June 30, 2023. An individual appointed before July 1, 2023, is required to satisfy the requirements of this subdivision only as in effect before July 1, 2023. (2) If the appointee has never voted in a primary election in Indiana, the appointee is certified as a member of that party by the party's county chair for the county in which the appointee resides. (c) If a certification by a county chair of a political party is required under subsection (b), the certification must be filed with the office of the circuit court clerk not later than the time the appointee's oath of office is filed with the clerk under IC 5-4-1. If the county chair's certification is not filed with the circuit court clerk's office as required by this subsection, the appointment is void. (d) Notwithstanding any other law, if the term of an appointed member of a board expires and the appointing authority does not make an appointment to fill the vacancy, both of the following apply: (1) The member may continue to serve on the board for only ninety (90) days after the expiration date of the member's term. (2) The county chair of the political party of the member whose term has expired shall make the appointment. As added by P.L.185-1988, SEC.1. Amended by P.L.68-1996, SEC.4; P.L.167-2001, SEC.10; P.L.199-2001, SEC.28; P.L.126-2002, SEC.91; P.L.127-2017, SEC.15; P.L.193-2017, SEC.3; P.L.86-2018, SEC.336; P.L.227-2023, SEC.141.

Ind. Code § 36-1-8-10.5 Employee of political subdivision as candidate for or appointed to office

Sec. 10.5. (a) This section does not apply to the following: (1) An elected or appointed officer. (2) An individual described in IC 20-26-4-11. (b) Subject to IC 3-5-9, an employee of a political subdivision may: (1) be a candidate for any elected office and serve in that office if elected; or (2) be appointed to any office and serve in that office if appointed; without having to resign as an employee of the political subdivision. As added by P.L.26-2000, SEC.45. Amended by P.L.1-2005, SEC.231; P.L.135-2012, SEC.6.

Ind. Code § 36-1-8-11 Methods of payments to political subdivisions or utilities; transaction and other fees

Sec. 11. (a) This section does not apply to a county treasurer governed by IC 36-2-10-23. (b) As used in this section, "credit card" means a: (1) credit card; (2) debit card; (3) charge card; or (4) stored value card. (c) A payment to a political subdivision or a municipally owned utility for any purpose may be made by any of the following financial instruments that the fiscal body of the political subdivision or the board of the municipally owned utility authorizes for use: (1) Cash. (2) Check. (3) Bank draft. (4) Money order. (5) Bank card or credit card. (6) Electronic funds transfer. (7) Any other financial instrument authorized by the fiscal body. (d) If there is a charge to the political subdivision or municipally owned utility for the use of a financial instrument, the political subdivision or municipally owned utility may collect a sum equal to the amount of the charge from the person who uses the financial instrument. (e) If authorized by the fiscal body of the political subdivision or the board of the municipally owned utility, the political subdivision or municipally owned utility may accept payments under this section with a bank card or credit card under the procedures set forth in this section. However, the procedure authorized for a particular type of payment must be uniformly applied to all payments of the same type. (f) The political subdivision or municipally owned utility may contract with a bank card or credit card vendor for acceptance of bank cards or credit cards. However, if there is a vendor transaction charge or discount fee, whether billed to the political subdivision or municipally owned utility or charged directly to the political subdivision's or municipally owned utility's account, the political subdivision or municipally owned utility may collect from the person using the card either or both of the following: (1) An official fee that may not exceed the transaction charge or discount fee charged to the political subdivision or municipally owned utility by bank or credit card vendors. (2) A reasonable convenience fee: (A) that may not exceed three dollars ($3); and (B) that must be uniform regardless of the bank card or credit card used. The fees described in subdivisions (1) and (2) may be collected regardless of retail merchant agreements between the bank and credit card vendors that may prohibit such fees. These fees are permitted additional charges under IC 37-2-4-5. (g) The political subdivision or municipally owned utility may pay any applicable bank card or credit card service charge associated with the use of a bank card or credit card under this subsection. (h) The authorization of the fiscal body of the political subdivision is not required by the bureau of motor vehicles or the bureau of motor vehicles commission to use electronic funds transfer or other financial instruments to transfer funds to the political subdivision. As added by P.L.40-1996, SEC.5. Amended by P.L.18-1996, SEC.32; P.L.2-1997, SEC.78; P.L.173-2003, SEC.20; P.L.137-2012, SEC.115; P.L.105-2013, SEC.2; P.L.115-2026, SEC.92.

Ind. Code § 36-1-8-11.5 Payment of claims; electronic funds transfer

Sec. 11.5. (a) As used in this section, "electronic funds transfer" means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is initiated through an electronic terminal, telephone, or computer or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account. (b) The fiscal body of a political subdivision or the board of a municipally owned utility may adopt a resolution to authorize an electronic funds transfer method of payment of claims. If a proper body adopts a resolution under this subsection, the political subdivision or municipally owned utility may pay money from its funds by electronic funds transfer. (c) A political subdivision or municipally owned utility that pays a claim by electronic funds transfer shall comply with all other requirements for the payment of claims by political subdivisions or municipal utilities. As added by P.L.137-2012, SEC.116.

Ind. Code § 36-1-8-12 Special fund for state grant money and local matching money; reversion of unused money

Sec. 12. (a) If a political subdivision other than a school corporation receives state grant money requiring local matching money, the political subdivision shall create a special fund and deposit the grant money and matching money into the special fund. The money in the fund may be used only for the purposes of the grant. (b) If a political subdivision completes the project for which the state grant money was provided and money remains in the fund: (1) the political subdivision shall transfer the state's share of the remaining money to the treasurer of state for deposit in the fund from which the grant was made; and (2) the political subdivision's pro rata share of the remaining money reverts to the political subdivision's general fund. As added by P.L.10-1997, SEC.25. Amended by P.L.68-2001, SEC.9.

Ind. Code § 36-1-8-13 Referral of dishonored checks to prosecuting attorney

Sec. 13. A unit that is unable to obtain payment of a dishonored check shall, not later than ninety (90) days after the check is initially received by the unit, refer the matter to the prosecuting attorney for the county where the dishonored check was received for prosecution. As added by P.L.98-2000, SEC.17.

Ind. Code § 36-1-8-14 Three-fourths vote rounded to nearest whole number

Sec. 14. Whenever this title requires an action to be taken by a three-fourths (3/4) vote, the number of votes necessary to satisfy the requirement is rounded to the nearest whole number. As added by P.L.125-2001, SEC.1.

Ind. Code § 36-1-8-14.2 Expired

As added by P.L.186-2001, SEC.8. Amended by P.L.181-2006, SEC.61; P.L.219-2007, SEC.105; P.L.146-2008, SEC.686; P.L.181-2016, SEC.38. Expired 1-1-2020 by P.L.181-2016, SEC.38.

Ind. Code § 36-1-8-14.3 Definitions; "PILOTS"; adoption of ordinance; calculation; imposition; deposit in affordable housing fund; due date

Sec. 14.3. (a) PILOTS may be imposed under this section for an assessment date occurring after December 31, 2021. (b) As used in this section, the following terms have the meanings set forth in IC 6-1.1-1: (1) Assessed value. (2) Exemption. (3) Owner. (4) Person. (5) Property taxation. (6) Real property. (7) Township assessor. (c) As used in this section, "PILOTS" means payments in lieu of taxes. (d) As used in this section, "property owner" means the owner of real property described in IC 6-1.1-10-16.7. (e) Subject to the approval of a property owner, the governing body of a political subdivision may adopt an ordinance to require the property owner to pay PILOTS at times set forth in the ordinance with respect to real property that is subject to an exemption under IC 6-1.1-10-16.7. The ordinance remains in full force and effect until repealed or modified by the governing body, subject to the approval of the property owner. (f) The PILOTS must be calculated so that the PILOTS are in an amount that is: (1) agreed upon by the property owner and the governing body of the political subdivision; (2) a percentage of the property taxes that would have been levied by the governing body for the political subdivision upon the real property described in subsection (e) if the property were not subject to an exemption from property taxation; and (3) not more than the amount of property taxes that would have been levied by the governing body for the political subdivision upon the real property described in subsection (e) if the property were not subject to an exemption from property taxation. (g) PILOTS shall be imposed as are property taxes and shall be based on the assessed value of the real property described in subsection (e). Except as provided in subsection (k), the township assessor, or the county assessor if there is no township assessor for the township, shall assess the real property described in subsection (e) as though the property were not subject to an exemption. (h) PILOTS collected under this section shall be deposited in the unit's affordable housing fund established under IC 5-20-5-15.5 and used for any purpose for which the affordable housing fund may be used. (i) PILOTS shall be due as set forth in the ordinance and bear interest, if unpaid, as in the case of other taxes on property. PILOTS shall be treated in the same manner as taxes for purposes of all procedural and substantive provisions of law. (j) This section does not apply to a county that contains a consolidated city or to a political subdivision of the county. (k) If the duties of the township assessor have been transferred to the county assessor as described in IC 6-1.1-1-24, a reference to the township assessor in this section is considered to be a reference to the county assessor. As added by P.L.74-2021, SEC.3.

Ind. Code § 36-1-8-15 Shortened term of county office under constitution; benefits

Sec. 15. (a) This section is enacted to implement Article 6, Section 2(b) of the Constitution of the State of Indiana. (b) This section applies to an individual: (1) who was elected at least two (2) times to a county office; and (2) who would have served at least eight (8) years in the elected county office had the individual's term of office not been shortened under a statute enacted under Article 6, Section 2(b) of the Constitution of the State of Indiana. (c) As used in this section, "benefit of office" refers to a benefit to which an individual who holds an elected county office is entitled because of a statute, an ordinance, or a contract. (d) As used in this section, "county office" refers to any of the county offices referred to in Article 6, Section 2 of the Constitution of the State of Indiana. (e) An individual described in subsection (b) who is otherwise entitled to a benefit of office may not be deprived of the benefit of office based on a requirement in any other statute or any ordinance or contract that to be eligible for the benefit of office an individual must hold elected county office for at least eight (8) years. As added by P.L.88-2005, SEC.14.

Ind. Code § 36-1-8-16 Property taxes collected for property disposed by county executive

Sec. 16. (a) Except as provided in subsection (e), if a county executive disposes of real property, the property taxes collected for each item of the real property in the first year the item of real property is subject to taxation after the year the real property is sold or otherwise conveyed shall be disbursed to the county executive that sold or otherwise conveyed the item of real property. (b) Disbursements to the county executive under subsection (a) shall be deposited into the county general fund, the redevelopment fund, the unsafe building fund, or the housing trust fund and shall be used only for one (1) or more of the purposes authorized under IC 36-7-14-22.5 or IC 36-7-15.1-15.5. (c) The county executive shall forward a copy of each resolution that disposes or otherwise conveys real property to the county auditor. (d) The disbursement of property taxes under subsection (a) shall terminate in the second year the item of real property is subject to taxation after the property is sold or otherwise conveyed. (e) This section does not apply to real property to which IC 6-1.1-47 applies. As added by P.L.169-2006, SEC.47. Amended by P.L.110-2017, SEC.3.

Ind. Code § 36-1-8-17 Combination or reorganization; budgets, rates, and levies

Sec. 17. (a) This section applies to a political subdivision if: (1) the political subdivision combines or reorganizes a department, agency, or function of the political subdivision; and (2) the political subdivision realizes through the combination or reorganization a: (A) savings; or (B) reduction in the reasonably foreseeable expenses that would otherwise have been incurred by the political subdivision if the combination or reorganization had not taken place. (b) The fiscal body of a political subdivision shall specify by resolution the amount (if any) of the decrease that the department of local government finance shall make to the maximum permissible property tax levies, maximum permissible property tax rates, and budgets under IC 6-1.1-17 and IC 6-1.1-18.5 of a political subdivision described in subsection (a) to: (1) eliminate double taxation by different political subdivisions for services; or (2) eliminate any excess by which the amount of property taxes imposed by the political subdivision exceeds the amount necessary to pay for services. (c) The fiscal body of the political subdivision shall determine and certify to the department of local government finance the amount of the adjustment (if any) to be made under subsection (b). As added by P.L.58-2011, SEC.2. Amended by P.L.255-2013, SEC.3.

Ind. Code § 36-1-8-17.5 Reporting of information and data on retiree benefits and expenditures

Sec. 17.5. A political subdivision must report, in the manner specified by the state board of accounts, information and data on its retiree benefits and expenditures by March 1 of each year. As added by P.L.205-2013, SEC.345. Amended by P.L.183-2014, SEC.24; P.L.159-2020, SEC.70.

Ind. Code § 36-1-8-17.7 Dissolution of a political subdivision that was established by another political subdivision

Sec. 17.7. (a) This section applies to a political subdivision: (1) that was established by another political subdivision; and (2) for which, except as set forth in IC 13-21-3-1(d) and IC 13-21-15, there is no process or procedure expressly specified by law regarding the dissolution of the political subdivision. (b) A political subdivision described in subsection (a) may be dissolved according to the following: (1) The political subdivision described in subsection (a) may be dissolved as provided in this section only by the political subdivision that established the political subdivision described in subsection (a). (2) The legislative body of the political subdivision that established the political subdivision described in subsection (a) must adopt a preliminary resolution stating the intent of the legislative body to dissolve the political subdivision described in subsection (a). For a county described in IC 36-1-2-5(1) and IC 36-1-2-9(1), the adoption under IC 13-21-3-1(d)(1)(A) by the county executive of an ordinance in favor of the dissolution of a solid waste management district satisfies this requirement. (3) The legislative body that established the political subdivision described in subsection (a) must hold a separate public meeting regarding the proposed dissolution of the political subdivision described in subsection (a). Notice of the meeting shall be given in accordance with IC 5-3-1. The legislative body must hold the public meeting: (A) except as provided in clause (B), at least ninety (90) days after adopting the preliminary resolution under subdivision (2); or (B) at least one hundred eighty (180) days after adopting the preliminary resolution under subdivision (2), in the case of the proposed dissolution of a political subdivision described in subsection (a) that has been in existence for at least ten (10) years. (4) At least ten (10) days before the public meeting under subdivision (3), the legislative body that established the political subdivision described in subsection (a) must make available to the public a plan regarding the proposed dissolution. If the legislative body maintains an Internet web site or an Internet web site is maintained on behalf of the legislative body, a copy of the plan must be posted on the Internet web site at least ten (10) days before the public meeting under subdivision (3). (5) The plan regarding the proposed dissolution must specify the following: (A) The effective date of the dissolution. (B) A description of the assets and obligations of the political subdivision described in subsection (a) and a proposal regarding the distribution of those assets and the satisfaction of those obligations. (C) A description of the services currently provided by the political subdivision described in subsection (a) and (if applicable) an explanation of how those services will be provided after the dissolution of the political subdivision described in subsection (a). (6) At the public meeting under subdivision (3), the legislative body shall allow the public an opportunity to testify and comment upon the proposed dissolution. (7) At the public meeting under subdivision (3), the legislative body may adopt an ordinance (in the case of the legislative body of a county or municipality) or a resolution (in the case of the legislative body of any other political subdivision) dissolving the political subdivision described in subsection (a) as provided in the plan described in subdivision (5). As added by P.L.189-2016, SEC.6. Amended by P.L.10-2019, SEC.133.

Ind. Code § 36-1-8-18 Certain tax exempt property; limitation on charges

Sec. 18. (a) As used in this section, "qualified property" means property that: (1) is located in a tax increment allocation area and: (A) was located in the tax increment allocation area before the designation of the area and the property has been continuously used since the date the area was designated for a tax exempt purpose; or (B) was donated for a tax exempt purpose; and (2) is exempt from property taxation. (b) A political subdivision may not do any of the following after June 30, 2016: (1) Except as provided in subsections (c) and (d), impose or otherwise require a payment in lieu of taxes or the payment of any other charge or user fee for or on qualified property. (2) Except as provided in subsections (c) and (d), enter into an agreement that does any of the following: (A) Requires a payment in lieu of taxes or the payment of any other charge or user fee for or on qualified property as a condition of: (i) granting, issuing, or approving a building permit, an improvement location permit, a certificate of occupancy, a primary or secondary plat, or any other permit related to the use of qualified property; (ii) granting or approving any zoning variance, special exception, special use, contingent use, or conditional use or any other zoning requirement or permit related to qualified property; or (iii) continuing governmental services to qualified property. This clause does not prohibit an application fee that is reasonably related to the cost of reviewing or processing the application. (B) Requires a person to limit the person's rights to challenge any of the following: (i) The imposition of a payment in lieu of taxes or the payment of any other charge or user fee on qualified property. (ii) The assessment of property taxes imposed on qualified property. (c) This section does not prohibit the imposing of utility fees or charges, sewer fees or charges, ditch or drainage assessments, storm water fees or charges, or waste collection or disposal fees or charges on qualified property or property that will be used as qualified property. (d) Upon the request of the owner of qualified property, a political subdivision may do the following: (1) Impose or otherwise require a payment in lieu of taxes or the payment of any other charge or user fee for or on the qualified property. (2) Enter in an agreement described in subsection (b)(2) concerning the qualified property. As added by P.L.200-2016, SEC.1.

Ind. Code § 36-1-8-19 Feasibility study and public hearing before construction or reconstruction of a county jail or submission of final plans and specification to the department of correction; exceptions

Sec. 19. (a) In addition to any other requirements and except as provided in subsection (b), after June 30, 2018, a county may not begin the construction or reconstruction of a county jail or submit final plans and specifications for the construction or reconstruction of a county jail to the department of correction under IC 11-12-4-5, unless the county executive first: (1) prepares or causes to be prepared a feasibility study of possible alternatives to the construction or reconstruction of the county jail; and (2) holds a public hearing on the feasibility study. (b) The feasibility study and public hearing under subsection (a) are not required for the construction or reconstruction of a county jail in the case of a county in which the county executive before July 1, 2018, has voted on or otherwise approved a proposal or contract concerning the construction or reconstruction of the county jail. (c) The feasibility study required by subsection (a)(1) must include the following information: (1) The feasibility of housing inmates in the county jail of another county or in a multicounty jail established by two (2) or more counties. (2) A projection of the county's future jail needs and an estimate of the number and characteristics of future inmates. (3) An estimate of the costs, tax rates, and debt service amounts that would result from each of the alternatives addressed by the feasibility study. (d) The county executive shall allow the public to testify at the public hearing on the feasibility study required by subsection (a)(1). Notice of the public hearing must be given in accordance with IC 5-3-1. The notice must state that on the given day, time, and place, the county executive will meet to discuss the feasibility study and hear testimony from the public regarding the feasibility study. As added by P.L.184-2018, SEC.13.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026