Citations Affected:
IC 6-1.1-20.
Synopsis: Petition and remonstrance procedure. Allows an individual
who is at least 18 years of age and who is a resident of a political
subdivision (as demonstrated by voter registration records, driver's
license records, or personal identification card records) to sign a
petition for or a remonstrance against a bond issue or lease proposed
by the political subdivision. Allows the same individuals to petition the
department of local government finance for review of a bond issue of
a political subdivision.
Effective: Upon passage; July 1, 2002.
January 10, 2002, read first time and referred to Committee on Rules and Legislative
Procedures.
A BILL FOR AN ACT to amend the Indiana Code concerning
property taxes.
subdivision may not impose property taxes to pay debt service or lease
rentals without completing the following procedures:
(1) The proper officers of a political subdivision shall:
(A) publish notice in accordance with
IC 5-3-1
; and
(B) send notice by first class mail to any organization that
delivers to the officers, before January 1 of that year, an annual
written request for such notices;
of any meeting to consider adoption of a resolution or an
ordinance making a preliminary determination to issue bonds or
enter into a lease and shall conduct a public hearing on a
preliminary determination before adoption of the resolution or
ordinance.
(2) When the proper officers of a political subdivision make a
preliminary determination to issue bonds or enter into a lease, the
officers shall give notice of the preliminary determination by:
(A) publication in accordance with
IC 5-3-1
; and
(B) first class mail to the organizations described in
subdivision (1)(B).
(3) A notice under subdivision (2) of the preliminary
determination of the political subdivision to issue bonds or enter
into a lease must include the following information:
(A) The maximum term of the bonds or lease.
(B) The maximum principal amount of the bonds or the
maximum lease rental for the lease.
(C) The estimated interest rates that will be paid and the total
interest costs associated with the bonds or lease.
(D) The purpose of the bonds or lease.
(E) A statement that any owners of real property within the
political subdivision qualified persons who want to initiate a
petition and remonstrance process against the proposed debt
service or lease payments must file a petition that complies
with subdivisions (4) and (5) not later than thirty (30) days
after publication in accordance with
IC 5-3-1.
(4) After notice is given, a petition requesting the application of
a petition and remonstrance process may be filed by the lesser of:
(A) two hundred fifty (250) owners of real property within the
political subdivision; qualified persons; or
(B) ten percent (10%) of the owners of real property within
population of the political subdivision who are at least
eighteen (18) years of age.
(5) Each petition must be verified under oath by at least one (1)
qualified petitioner person in a manner prescribed by the state
board of accounts before the petition is filed with the county
auditor under subdivision (6).
(6) Each petition must be filed with the county auditor not more
than thirty (30) days after publication under subdivision (2) of the
notice of the preliminary determination.
(7) The county auditor must file a certificate and each petition
with:
(A) the township trustee, if the political subdivision is a
township, who shall present the petition or petitions to the
township board; or
(B) the body that has the authority to authorize the issuance of
the bonds or the execution of a lease, if the political
subdivision is not a township;
within fifteen (15) business days of the filing of the petition
requesting a petition and remonstrance process. The certificate
must state the number of petitioners that are owners of real
property within the political subdivision. qualified persons who
have signed the petition.
If a sufficient petition requesting a petition and remonstrance process
is not filed by owners of real property qualified persons as set forth in
this section, the political subdivision may issue bonds or enter into a
lease by following the provisions of law relating to the bonds to be
issued or lease to be entered into.
manner prescribed by the state board of accounts and filed with
the county auditor within the sixty (60) day period described in
subdivision (2) in the manner set forth in section 3.1 of this
chapter relating to requests for a petition and remonstrance
process.
(5) The county auditor must file a certificate and the petition or
remonstrance with the body of the political subdivision charged
with issuing bonds or entering into leases within fifteen (15)
business days of the filing of a petition or remonstrance under
subdivision (4), whichever applies, containing ten thousand
(10,000) signatures or less. The county auditor may take an
additional five (5) days to review and certify the petition or
remonstrance for each additional five thousand (5,000) signatures
up to a maximum of sixty (60) days. The certificate must state the
number of petitioners and remonstrators that are owners of real
property within the political subdivision. who are qualified
persons.
(6) If a greater number of owners of real property within the
political subdivision qualified persons sign a remonstrance than
the number that signed a petition, the bonds petitioned for may
not be issued or the lease petitioned for may not be entered into.
The proper officers of the political subdivision may not make a
preliminary determination to issue bonds or enter into a lease for
the controlled project defeated by the petition and remonstrance
process under this section or any other controlled project that is
not substantially different within one (1) year after the date of the
county auditor's certificate under subdivision (5). Withdrawal of
a petition carries the same consequences as a defeat of the
petition.
(7) After a political subdivision has gone through the petition and
remonstrance process set forth in this section, the political
subdivision is not required to follow any other remonstrance or
objection procedures under any other law relating to bonds or
leases designed to protect owners of real property within the
political subdivision from or other persons from the imposition
of property taxes to pay debt service or lease rentals. However,
the political subdivision must still receive the approval of the
state board of tax commissioners required by
IC 6-1.1-18.5-8
or
IC 6-1.1-19-8.
whether an individual who has signed a petition or a remonstrance
is a qualified person, the county auditor shall check the following
records, in the following order:
(1) The property tax records of the county.
(2) The voter registration records of the county.
(3) The records of the bureau of motor vehicles relating to an
individual's driver's license issued under
IC 9-24-11
or an
individual's identification issued under
IC 9-24-16.
(b) If information in any of the records described in subsection
(a) satisfies the county auditor that an individual is a qualified
person, the county auditor:
(1) is not required to check the other records described in
subsection (a); and
(2) shall certify the individual's signature as the signature of
a qualified person.
government finance shall fix a time and place for a hearing on the
matter. The state board department shall hold the hearing not less than
five (5) or more than thirty (30) days after the board department
receives the petition, and the state board department shall hold the
hearing in the political subdivision or in the county where the political
subdivision is located. At least five (5) days before the date fixed for
the hearing, the state board of tax commissioners department shall
give notice of the hearing, by mail, to the executive officer of the
political subdivision and to the first ten (10) taxpayers qualified
persons who signed the petition. The mailings shall be addressed to the
officer and the taxpayers qualified persons at their usual place of
residence.
(b) After the hearing required by this section, the state board of tax
commissioners department of local government finance may
approve, disapprove, or reduce the amount of the proposed issue. The
board department must render a decision not later than three (3)
months after the hearing, and if no decision is rendered within that
time, the issue is considered approved unless the board department
takes the extension provided for in this section. However, a three (3)
month extension of the time period during which the decision must be
rendered may be taken by the board department if the board
department by mail gives notice of the extension to the executive
officer of the political subdivision and to the first ten (10) taxpayers
qualified persons who signed the petition, at least ten (10) days before
the end of the original three (3) month period. If no decision is
rendered within the extension period, the issue is considered approved.
The action taken by the state board of tax commissioners department
on the proposed issue is final.
commissioners. department of local government finance.
(b) When a petition for review of a proposed issue is pending before
the state board of tax commissioners, department of local
government finance, the board department may order the political
subdivision to advertise for and receive bids for the construction of the
public improvement. When the board department issues such an
order, the political subdivision shall file a bid report with the state
board of tax commissioners department within five (5) days after the
bids are received, and the board department shall render a final
decision on the proposed issue within fifteen (15) days after it receives
the bid report. Notwithstanding the provisions of this subsection, a
political subdivision may not enter into a contract for the construction
of a public improvement while a petition for review of the bond issue
which is to finance the improvement is pending before the state board
of tax commissioners. department.