Introduced Version




SENATE BILL No. 502

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 8-1.5-2-26.

Synopsis: Municipal utilities. Provides that a municipality having a municipally owned utility may not tax property for purposes related to the utility unless the property is: (1) taxable property of the municipality; or (2) served by the municipally owned utility.

Effective: July 1, 2003.



Landske


    January 23, 2003, read first time and referred to Committee on Governmental Affairs and Interstate Cooperation.




Introduced

First Regular Session 113th General Assembly (2003)


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 2002 Regular or Special Session of the General Assembly.

SENATE BILL No. 502


    A BILL FOR AN ACT to amend the Indiana Code concerning utilities and transportation.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 8-1.5-2-26 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 26. (a) To pay the principal and interest on bonds issued for the construction, acquisition, extension, or improvement of a municipally owned utility, the municipal legislative body may levy an annual tax of sufficient amount on all taxable property of the municipality.
    (b) If the legislative body:
        (1) has contracted with a person for supplying utility services or has agreed to lease or purchase utility services; and
        (2) has, in the contract, agreed to pay a stated rental, a stipulated purchase price, or other compensation to the person, or has issued bonds to pay for stock in the company or to purchase the plant;
it may levy an annual tax for payment of the rent or other consideration or purchase price to be paid for utility services, or for the purchase price of a plant, and to pay the principal and interest on the bonds.
    (c) The tax under this section shall be levied and collected as other municipal taxes are levied and collected, and the proceeds shall be

used only for the purpose for which the tax was levied.
     (d) The legislative body of a municipality may not levy a tax under this section on property that is not:
        (1) taxable property of the municipality; or
        (2) served by a utility owned by the municipality.