Ind. Code § 36-6-9-1 Applicability of chapter
Sec. 1. This chapter applies to the preparation of a budget for a township for a year after December 31, 2019.
As added by P.L.129-2019, SEC.4.
Ind. Code ch. 36-6-9
Ind. Code ch. 36-6-9
in effectInd. Code § 36-6-9-2 "Capital improvement"
Sec. 2. As used in this chapter, "capital improvement" means:
(1) acquisition of land;
(2) site improvements;
(3) infrastructure improvements;
(4) construction of buildings or structures;
(5) rehabilitation, renovation, or enlargement of buildings or structures; or
(6) acquisition or improvement of machinery, equipment, furnishings, or facilities.
As added by P.L.129-2019, SEC.4.
Ind. Code § 36-6-9-3 "Capital improvement fund"
Sec. 3. As used in this chapter, "capital improvement fund" means a township fund, the money in which may be used for the payment of capital improvements. The term includes:
(1) the general fund;
(2) the fire protection and emergency services fund under IC 36-8-13;
(3) a cumulative firefighting building and equipment fund under IC 36-8-14;
(4) an equipment replacement fund under IC 36-8-19-8.5;
(5) a cumulative township vehicle and building fund under IC 36-9-17.5;
(6) a cumulative building fund under IC 36-10-7.5-19;
(7) a public park fund under IC 36-10-7-7; and
(8) any other fund established by a township for the payment of capital improvements.
As added by P.L.129-2019, SEC.4.
Ind. Code § 36-6-9-4 "Plan"
Sec. 4. As used in this chapter, "plan" refers to a township capital improvement plan adopted or amended under this chapter.
As added by P.L.129-2019, SEC.4.
Ind. Code § 36-6-9-4.5 "Unrestricted funds"
Sec. 4.5. As used in this chapter, "unrestricted funds" means cash reserves that are not:
(1) obligated by a township's following year budget;
(2) committed to a township's capital improvement plan;
(3) encumbered by a contract or purchase order;
(4) restricted for a specific use by state or federal law or other applicable state or federal rule;
(5) restricted by a contractual obligation; or
(6) restricted by a third-party.
As added by P.L.173-2025, SEC.35.
Ind. Code § 36-6-9-5 Townships required to adopt plan
Sec. 5. (a) Before January 1, 2028, this chapter applies to a township if the total amount of funds in a township's capital improvement funds exceeds:
(1) one hundred fifty percent (150%) of the township's total annual budget estimate prepared under IC 6-1.1-17-2 for the ensuing year; and
(2) two hundred thousand dollars ($200,000).
(b) After December 31, 2027, this chapter applies to all townships, including those townships that have merged under IC 36-6-1.5 or reorganized under IC 36-1.5.
As added by P.L.129-2019, SEC.4. Amended by P.L.173-2025, SEC.36; P.L.156-2026, SEC.28.
Ind. Code § 36-6-9-6 Procedure for plan adoption
Sec. 6. A township must adopt a capital improvement plan that meets the requirements of this chapter. The township trustee shall prepare the plan, and the township board shall hold a public hearing on a proposed or amended plan, before the township board adopts the plan.
As added by P.L.129-2019, SEC.4.
Ind. Code § 36-6-9-7 Deadline for plan adoption
Sec. 7. A township that meets the requirements of section 5 of this chapter must:
(1) adopt a capital improvement plan not later than September 30 of each calendar year; and
(2) submit a copy of the adopted capital improvement plan to the department of local government finance not later than five (5) business days after a budget is adopted under IC 6-1.1-17-5(a). The submission must be in the manner prescribed by the department.
As added by P.L.129-2019, SEC.4. Amended by P.L.173-2025, SEC.37; P.L.156-2026, SEC.29.
Ind. Code § 36-6-9-8 Failure to adopt a plan
Sec. 8. A township may not collect property taxes in the ensuing year for a capital improvement fund described in section 3(3) through 3(8) of this chapter, unless the township has adopted a plan that meets the requirements of this chapter.
As added by P.L.129-2019, SEC.4.
Ind. Code § 36-6-9-9 Plan requirements
Sec. 9. (a) The department of local government finance shall prescribe the format of a plan not later than September 1, 2019.
(b) A plan must:
(1) apply to at least the three (3) years immediately following the year the plan is adopted;
(2) estimate for each year to which the plan applies the nature and amount of proposed expenditures from each of the township's capital improvement funds; and
(3) estimate:
(A) the source of all revenue to be dedicated to the proposed expenditures in each of the three (3) calendar years; and
(B) the amount of property taxes to be collected in each of the three (3) calendar years and retained in the capital improvement funds for expenditures proposed for a later year.
As added by P.L.129-2019, SEC.4.
Ind. Code § 36-6-9-10 Amending a plan
Sec. 10. A township trustee, with the approval of the township legislative body, may amend a plan to:
(1) provide money for the purposes of a capital improvement fund; or
(2) supplement money accumulated in a capital improvement fund for the purposes of the capital improvement fund.
As added by P.L.129-2019, SEC.4.
Ind. Code § 36-6-9-11 County fiscal body consideration of plan in reviewing township budget
Sec. 11. The plan adopted in the immediately preceding calendar year shall be considered by the county fiscal body in reviewing the township budget under IC 6-1.1-17-3.6.
As added by P.L.129-2019, SEC.4. Amended by P.L.156-2026, SEC.30.
Ind. Code § 36-6-9-12 Annual adoption of plan required
Sec. 12. (a) Beginning January 1, 2028, a township must adopt a plan on an annual basis. The township must file the plan with the department of local government finance in the form and manner prescribed by the department of local government finance.
(b) A plan must include:
(1) the balance of all unrestricted funds that exceed the township's budget for the following year; and
(2) the purpose for which all unrestricted funds are being retained.
As added by P.L.173-2025, SEC.38. Amended by P.L.156-2026, SEC.31.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026