Ind. Code ch. 36-1.5-4.1

Ind. Code ch. 36-1.5-4.1
in effect

Ind. Code § 36-1.5-4.1-1 Applicability

Sec. 1. (a) This chapter does not apply to a township: (1) located in a county having a consolidated city; or (2) that, not later than June 30, 2027, has begun to consolidate with another: (A) township under IC 36-6-1.5; or (B) unit under IC 36-1.5-4. (b) This chapter applies only to a designated township that satisfies all of the following criteria: (1) At least eighty percent (80%) of the township's boundaries coincide with a municipality's boundaries. (2) At least fifty-one percent (51%) of the township's population, as determined by the most recent federal decennial census, resides within the corporate boundaries of a municipality described in subdivision (1). As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-2 Chapter is controlling

Sec. 2. To the extent that other provisions in this article conflict with this chapter, this chapter controls. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-3 "Department"

Sec. 3. As used in this chapter, "department" means the department of local government finance. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-4 "Designated township"

Sec. 4. As used in this chapter, "designated township" has the meaning set forth in IC 36-6-1.7-3. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-5 "Plan" or "plan of reorganization"

Sec. 5. As used in this chapter, "plan" or "plan of reorganization" means a plan of reorganization approved by the legislative body of a recipient municipality under this chapter. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-6 "Recipient municipality"

Sec. 6. As used in this chapter, "recipient municipality" means a municipality that is named by a designated township in a resolution under section 13 of this chapter. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-7 "Reorganization"

Sec. 7. As used in this chapter, "reorganization" means the dissolution of a designated township and the transfer of township property, functions, powers, and services to a municipality that is the recipient municipality. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-8 "Township office"

Sec. 8. As used in this chapter, "township office" refers to any of the following: (1) The office of township trustee elected as provided in IC 36-6-4-2. (2) The office of township assessor elected as provided in IC 36-6-5-1 (if the office exists). (3) The office of a member of the township board elected as provided in IC 36-6-6-2. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-9 "Township services"

Sec. 9. As used in this chapter, "township services" means the following: (1) Township assistance under IC 12-20 and IC 12-30-4. (2) Provision of insulin to the poor under IC 12-20-16. (3) Fire protection services under IC 36-8. (4) Fence viewing under IC 32-26. (5) Provision and maintenance of cemeteries under IC 23-14. (6) Provision and maintenance of township parks and community centers under IC 36-10. (7) Destruction of detrimental plants, noxious weeds, and rank vegetation under IC 15-16-8. (8) Any other services required by statute to be provided by a township. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-10 "Township services district"

Sec. 10. As used in this chapter, "township services district" means a service district that is located within the boundaries of the reorganized designated township in which the recipient municipality imposes a township services district levy. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-11 "Township services district levy"

Sec. 11. As used in this chapter, "township services district levy" means the budget, tax rate, and tax levy imposed by the recipient municipality within the boundaries of a township services district. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-12 Dissolution of designated townships and transfer of powers, duties, property, and funds

Sec. 12. (a) On January 1, 2029, each designated township that meets the criteria described in section 1(b) of this chapter is dissolved. All of the following occur: (1) The term of office of an individual who holds a township office ends on December 31, 2028. An election for a township office shall not be held in 2029 or thereafter. (2) The: (A) powers and duties of the office of township trustee are transferred to the executive of the recipient municipality; (B) legislative powers and duties of the office of township board members are transferred to the legislative body of the recipient municipality; (C) fiscal powers and duties of the office of township board members are transferred to the fiscal body of the recipient municipality; and (D) powers and duties of the township assessor (if the office exists) are transferred to the county assessor. (3) The boundaries of the dissolved township remain as the boundaries of the service area within which the recipient municipality provides township services. (4) If a designated township participates in a fire protection territory or fire protection district, the fire protection territory or fire protection district is unaffected by the reorganization and the area within the boundaries of the dissolved township remain a part of the fire protection territory or fire protection district after reorganization. The recipient municipality succeeds the designated township in the designated township's role as: (A) a participating unit that is not a provider unit in the fire protection territory; or (B) a participant in the fire protection district; for the area within the boundaries of the dissolved designated township. (5) The balance in the general fund of the designated township shall be transferred to the general fund of the recipient municipality. (6) The balance in the township assistance fund of a designated township shall be transferred to a township assistance fund established by the recipient municipality. (7) The balance of a fund for which the township imposes property taxes that are not subject to the maximum ad valorem levy limits under IC 6-1.1-18.5 to pay for debt service shall be transferred to the fund of the recipient municipality for which the recipient municipality imposes property taxes that are not subject to the maximum ad valorem levy limits under IC 6-1.1-18.5 to pay for debt service. If the recipient municipality does not have such a fund as of January 1, 2029, the designated unit shall establish the fund. If a township has more than one fund for which the township imposes property taxes that are not subject to the maximum ad valorem levy limits under IC 6-1.1-18.5 to pay for debt service, then the designated unit shall establish one fund for each fund for which the township imposes property taxes that are not subject to the maximum ad valorem levy limitations under IC 6-1.1-18.5 to pay for debt service. (8) Subject to section 29 of this chapter, the property and liabilities of the designated township become the property and liabilities of the recipient municipality. (b) IC 36-1-8-5 does not apply to a balance referred to in subsection (a). As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-13 Adoption of resolution to reorganize

Sec. 13. (a) The legislative body of a designated township: (1) at least eighty percent (80%) of the township's boundaries coincide with a municipality's boundaries; and (2) at least fifty-one percent (51%) of the township's population resides within the corporate boundaries of a municipality described in subdivision (1); shall adopt a resolution not later than October 1, 2027, that proposes a reorganization with the municipality described in this subsection. (b) The township trustee of the designated township shall certify the resolution to: (1) the county clerk; and (2) if the recipient municipality is a municipality, the clerk of the municipality. (c) The recipient municipality and the designated township shall appoint a joint board under section 15 of this chapter. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-14 Joint board

Sec. 14. If a recipient municipality is named by two (2) or more designated townships in resolutions under section 13 of this chapter, the recipient municipality may: (1) appoint a single joint board under section 15 of this chapter; and (2) prepare and adopt a single plan of reorganization; to govern the reorganization of the townships, instead of appointing separate boards and adopting separate plans for each of the townships. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-15 Joint board members

Sec. 15. (a) A joint board shall consist of the following: (1) Two (2) members of the township board of each township participating in the reorganization, selected by the members of the township board. (2) Four (4) members of the legislative body of the designated municipality, selected by the members of the body. (3) The township trustee of each township participating in the reorganization. (4) The deputy township trustee or a full-time township employee of each township participating in the reorganization. The fiscal officer of the designated municipality, and other members of the bodies under subdivisions (1) and (2), shall serve as advisory, nonvoting members. (b) A majority of the voting members constitutes a quorum. Official action may only be taken by affirmative vote of at least a majority of members present at the meeting. (c) The members of a joint board serve without compensation. The members are entitled to reimbursement from the reorganizing township and recipient municipality for the necessary expenses incurred in the performance of their duties. (d) A joint board is subject to IC 5-14-1.5 and IC 5-14-3. (e) The joint board shall prepare a reorganization plan not later than March 1, 2028, for transferring the powers, duties, and property of the designated township consistent with this chapter. The joint board shall send the plan to the legislative body of the recipient municipality for adoption. (f) The legislative body of the recipient municipality may adopt the plan as drafted or modify the plan before adoption. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-16 Actions of township trustee or township assessor not invalidated

Sec. 16. Elimination of a township office of a designated township does not invalidate: (1) any resolutions, fees, schedules, or other actions adopted or taken by the township trustee or township assessor (if the office exists) before January 1, 2029; or (2) any appointments made by the township trustee or township assessor (if the office exists) before January 1, 2029. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-17 Adoption of township services district levy

Sec. 17. (a) In 2028 and each year thereafter, the fiscal body of the recipient municipality shall, in the manner provided by IC 6-1.1-17, adopt a township services district levy for the ensuing year. (b) If a recipient municipality fails to adopt a township services district levy, the township service district's most recently approved township services levy is continued for the ensuing budget year. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-18 Urban and rural township services districts

Sec. 18. (a) This section applies if a part of the reorganized township is located outside the boundaries of the municipality. (b) The municipality shall establish: (1) an urban township services district consisting of the area of the designated township that is located within the boundaries of the municipality; and (2) a rural township services district consisting of the area of the designated township located outside the boundaries of the municipality. (c) Subject to subsection (d), a tax levied under this section may be levied at: (1) a uniform rate upon all taxable property within the designated township; or (2) different rates for the township service districts included within the designated township, so long as a tax rate applies uniformly to all of a township service district's taxable property within the designated township. (d) If a uniform tax rate is levied upon all taxable property within a designated township upon reorganization, different tax rates may be levied for the township service districts included within the designated township in subsequent years. (e) Not later than October 1 of a year, the municipality shall submit the township services district levy for the rural township service district to the county fiscal body for its approval. Not later than October 15 of the year, the county fiscal body shall review the proposed township service district levy for the rural township service district. The county fiscal body may reduce or modify but not increase the proposed township service district levy. (f) If: (1) the municipality fails to adopt a township service district levy; or (2) a county fiscal body does not adopt the township service district levy for a rural township district within the time specified under subsection (c); the township service district's most recent township service district levy approved by the municipality or county, whichever is appropriate, is continued for the ensuing budget year. (g) A tax levied by the recipient municipality under this chapter after December 31, 2028, shall: (1) be in an amount sufficient for the recipient municipality to provide township services within a township service district; and (2) include amounts necessary to continue payment of any debt service or obligation incurred by the township before January 1, 2029, in accordance with the terms of the debt service or obligation incurred. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-19 Recipient municipality maximum levy

Sec. 19. For purposes of the property tax levy limits under IC 6-1.1-18.5, a tax levied by a recipient municipality under this chapter is included in the calculation of the maximum permissible property tax levy for the recipient municipality. For property taxes first due and payable in 2029, the recipient municipality's maximum permissible ad valorem property tax levy under IC 6-1.1-18.5 shall be increased by: (1) the township's maximum permissible ad valorem property tax levy under IC 6-1.1-18.5 for property taxes first due and payable in 2028; multiplied by (2) the maximum levy growth quotient under IC 6-1.1-18.5-2 for property taxes first due and payable in 2029. The recipient municipality's maximum permissible ad valorem property tax levy under IC 6-1.1-18.5 for property taxes first due and payable in 2029 as adjusted under this section shall be used in the determination of the recipient municipality's maximum permissible ad valorem property tax levy under IC 6-1.1-18.5 for property taxes first due and payable in 2030 and thereafter. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-20 Plan requirements

Sec. 20. (a) The plan of reorganization governs the actions, duties, and powers of the recipient municipality and the designated township that are not specified by law. (b) The plan of reorganization must be consistent with this chapter and include at least the following: (1) A description of the township services provided by the recipient municipality and the service areas in which the services will be offered. (2) The disposition of the personnel, the agreements, the assets, and, subject to section 28 of this chapter, the liabilities of the designated township, including the terms and conditions upon which the transfer of property and personnel will be achieved. (3) Any other matter that the joint board determines to be necessary or appropriate or to include in the plan of reorganization. (c) When the plan of reorganization is submitted to the recipient municipality by the joint board, the recipient municipality shall post a copy of the plan of reorganization on the website of the recipient municipality not more than seven (7) days after receiving the plan of reorganization from the joint board. If the plan of reorganization is amended, the recipient municipality shall post the amended plan on the website of the recipient municipality not later than seven (7) days after the amended plan is adopted. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-21 Certifying final action on plan

Sec. 21. The legislative body of the recipient municipality shall certify the legislative body's final action on a plan of reorganization or revised plan of reorganization, as modified by the legislative body, in the manner prescribed by the department of local government finance, to each of the following: (1) The clerk of the circuit court and, if the recipient municipality is a municipality, the clerk of the municipality. (2) The county fiscal officer of each county in which the designated township is located. (3) The county recorder of each county in which the designated township is located. (4) The county voter registration office of each county in which the designated township is located. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-22 Filing plan

Sec. 22. The legislative body of the recipient municipality shall file a certified copy of the plan with each of the following at the same time certifications are made under section 21 of this chapter: (1) The county recorder of each county in which a reorganizing political subdivision is located. (2) The department of local government finance. (3) The clerk of the circuit court. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-23 Recording plan

Sec. 23. Each county recorder receiving a certification under sections 21 and 22 of this chapter shall record the certification and the plan of reorganization in the records of the county recorder without charge. The county recorder shall notify the county election board of each county in which the designated township is located. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-24 Township reorganized according to plan

Sec. 24. The designated township is reorganized under the conditions set forth in the plan of reorganization filed with the county recorder under this chapter. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-25 Department of local government finance duties

Sec. 25. The department of local government finance is expressly directed to complete the duties assigned to it under IC 6-1.1-17-16 with respect to the submitted property tax levies, property tax rates, and budget as follows: (1) For each budget year, not later than December 31 of the year preceding that budget year, unless a taxing unit in a county is issuing debt after December 1 in the year preceding the budget year or intends to file a shortfall appeal under IC 6-1.1-18.5-16. (2) For each budget year, not later than January 15 of the budget year if a taxing unit in a county is issuing debt after December 1 in the year preceding the budget year or intends to file a shortfall appeal under IC 6-1.1-18.5-16. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-26 Township and municipality participating in fire protection territory

Sec. 26. (a) This section applies to a reorganization under this chapter that involves: (1) the recipient municipality; and (2) at least one (1) designated township; all of which are participating units in the same fire protection territory on the date the reorganization plan is finally adopted under this chapter. (b) The fiscal body of the recipient municipality may: (1) establish an equipment replacement fund under IC 36-8-19-8.5 and impose a property tax for the fund as provided in IC 36-8-19-8.5; and (2) take any other action under IC 36-8-19-8.5 that may be taken under that section by a participating unit in a fire protection territory. (c) If a recipient municipality establishes an equipment replacement fund under IC 36-8-19-8.5 as authorized by this section, the department of local government finance may adjust the maximum permissible ad valorem property tax levy that would otherwise apply to the recipient municipality in the same manner in which the department may adjust the maximum permissible ad valorem property tax levy of a civil taxing unit under IC 6-1.1-18.5-10.5 to meet the civil taxing unit's obligations to a fire protection territory established under IC 36-8-19. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-27 Recipient municipality powers

Sec. 27. (a) A recipient municipality has the powers granted by statute to a designated township, including a power described in subsection (b). (b) Except as provided in the plan of reorganization, a recipient municipality may do any of the following: (1) Establish any fund that the designated township (either acting on its own or jointly with another political subdivision) was authorized to establish before January 1, 2029. (2) Impose any tax levy or adopt any tax that the designated township was authorized to impose or adopt before January 1, 2029. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-28 Districts with varying service levels and fees or taxes

Sec. 28. A plan of reorganization may establish within the designated township, territories, or districts: (1) in which specified services provided by the recipient municipality will be provided at different levels, quantities, or amounts; and (2) in which the fees, charges, or taxes imposed by the recipient municipality will vary depending on the level, quantity, or amount of the services provided. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-29 Indebtedness and pension obligations remain with the responsible taxpayers

Sec. 29. The following apply: (1) Indebtedness that was incurred by the recipient municipality or designated township before January 1, 2029: (A) may not be imposed on taxpayers that were not responsible for payment of the indebtedness before January 1, 2029; and (B) must be paid by the taxpayers that were responsible for payment of the indebtedness before January 1, 2029. (2) Pension obligations existing as of January 1, 2029: (A) may not be imposed on taxpayers that were not responsible for payment of the pension obligations before January 1, 2029; and (B) must be paid by the taxpayers that were responsible for payment of the pension obligations before January 1, 2029. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-30 Recipient municipality responsibilities

Sec. 30. The following apply to a reorganization under this chapter: (1) Except as provided in subdivision (2): (A) the recipient municipality is responsible after December 31, 2028, for providing township services in all areas of the designated township; and (B) the recipient municipality retains the powers of the designated township after December 31, 2028, in order to provide township services as required by clause (A). (2) Powers and duties of the recipient municipality may be transferred as authorized in an interlocal cooperation agreement approved under IC 36-1-7 or as authorized in a cooperative agreement approved under IC 36-1.5-5. (3) Section 27 of this chapter applies to the debt service levy of the recipient municipality and to the department of local government finance's determination of the new maximum permissible ad valorem property tax levy for the recipient municipality. (4) The recipient municipality may not borrow money under IC 36-6-6-14(b) or IC 36-6-6-14(c). (5) The new maximum permissible ad valorem property tax levy for the recipient municipality's firefighting and emergency services fund under IC 36-8-13-4(a)(1) or the combined levies for the firefighting fund and emergency services fund described in IC 36-8-13-4(a)(2) is equal to: (A) the result of: (i) the maximum permissible ad valorem property tax levy for the designated township's firefighting and emergency services fund under IC 36-8-13-4(a)(1) or the combined ad valorem property tax levies for the township firefighting fund and township emergency services fund described in IC 36-8-13-4(a)(2), as applicable, in 2028; multiplied by (ii) the maximum levy growth quotient applicable for property taxes first due and payable in 2029; plus (B) any amounts borrowed by the designated township under IC 36-6-6-14(b) or IC 36-6-6-14(c) in 2028. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-31 Prohibited actions within designated townships after June 30, 2027

Sec. 31. (a) Except as provided in subsections (c) through (d), a political subdivision may not take an action described in subsection (b) within a designated township after June 30, 2027. (b) A political subdivision may not take any of the following actions partially or wholly within a designated township after June 30, 2027, unless the recipient municipality agrees by adopting a resolution: (1) Initiate an annexation of territory. (2) Establish a fire protection territory or fire protection district. (3) Extend water, sewer, or any other infrastructure to the political subdivision. (4) Expand zoning jurisdiction under IC 36-7-4-205. (c) This chapter does not prohibit a recipient municipality from taking an action under subsection (b) for the purpose of implementing the plan of reorganization. (d) A political subdivision may take an action described in subsection (b) after December 31, 2028. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-32 Promoting a position on reorganization

Sec. 32. (a) Except as otherwise provided in this section, until the final plan of reorganization is approved by the legislative body of the recipient municipality, the recipient municipality or designated township may not promote a position on the reorganization by doing any of the following: (1) Using facilities or equipment, including mail and messaging systems, owned by the recipient municipality or designated township to promote a position on the reorganization, unless equal access to the facilities or equipment is given to persons with a position opposite to that of the recipient municipality or designated township. (2) Making an expenditure of money from a fund controlled by the recipient municipality or designated township to promote a position on the reorganization. (3) Using an employee to promote a position on the reorganization during the employee's normal working hours or paid overtime, or otherwise compelling an employee to promote a position on the public question at any time. However, if a person described in subsection (c) is advocating for or against a position on the reorganization or discussing the reorganization as authorized under subsection (c), an employee of the recipient municipality or designated township may assist the person in presenting information on the reorganization if requested to do so by the person described in subsection (c). However, this section does not prohibit an official or employee of the recipient municipality or designated township from carrying out duties with respect to a reorganization that are part of the normal and regular conduct of the official's or employee's office or agency, including the furnishing of factual information regarding the reorganization in response to inquiries from any person. (b) This subsection does not apply to: (1) a personal expenditure to promote a position on a reorganization by an employee of the recipient municipality or designated township whose employment is governed by a collective bargaining contract or an employment contract; or (2) an expenditure to promote a position on a reorganization by a person or an organization that has a contract or an arrangement (whether formal or informal) with the recipient municipality or designated township solely for the use of the political subdivision's facilities. A person or an organization that has a contract or arrangement (whether formal or informal) with the recipient municipality or designated township to provide goods or services to the recipient municipality or township may not spend any money to promote a position on the reorganization. A person or an organization that violates this subsection commits a Class A infraction. (c) Notwithstanding any other law, an elected or appointed official of a recipient municipality or designated township may: (1) personally advocate for or against a position on a reorganization; or (2) discuss the reorganization with any individual, group, or organization or personally advocate for or against a position on a reorganization before any individual, group, or organization; so long as it is not done by using public funds. Advocacy or discussion allowed under this subsection is not considered a use of public funds. As added by P.L.134-2026, SEC.3.

Ind. Code § 36-1.5-4.1-33 Reorganization not an annexation

Sec. 33. Nothing in this chapter shall be construed: (1) to constitute an annexation of a designated township by a municipality under the provisions of this chapter; or (2) as changing the corporate boundaries of a municipality that is the recipient municipality of the dissolved designated township. As added by P.L.134-2026, SEC.3.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/36Fetched: 10/17/2026