Citations Affected: IC 36-4; IC 36-9.
Synopsis: Waiver of the right to remonstrate against annexation.
Provides that if a person waives the person's right to remonstrate
against an annexation as part of a contract with a municipality for
providing sewer service to the person's property, the release is not
binding on a successor in title to the property unless, for sewer
contracts executed after June 30, 2013, the successor in title: (1) has
actual notice of the waiver; or (2) has constructive notice of the waiver
because the contract or a signed memorandum of the contract stating
the waiver, has been recorded in the chain of title of the property.
(Under current law, the contract containing the waiver must be
recorded in order to bind the successors in title of the party to the
agreement.) Allows municipalities to exempt from property tax liability
for municipal purposes, annexed territory that meets the following
requirements: (1) The property is classified for zoning purposes as
agricultural. (2) The property is contiguous. (3) The owner of the
property consents to the annexation.
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Local Government.
January 24, 2013, reported favorably _ Do Pass.
January 29, 2013, read second time, amended, ordered engrossed.
January 30, 2013, engrossed.
January 31, 2013, read third time, passed. Yeas 49, nays 0.
A BILL FOR AN ACT to amend the Indiana Code concerning local
the annexed territory that are classified for zoning purposes as
agricultural and remain exempt from the property tax liability while the
property's zoning classification remains agricultural.
However, if the
annexation ordinance annexing the territory is adopted after June 30,
2006, the property tax liability under IC 6-1.1 for municipal purposes
may be exempted for a period of not more than ten (10) years.
(c) There may not be a change in the zoning classification of territory annexed under this section without the consent of the owner of the annexed territory.
(d) Territory annexed under this section may not be considered a part of the municipality for purposes of annexing additional territory under section 3 or 4 of this chapter. However, territory annexed under this section shall be considered a part of the municipality for purposes of annexing additional territory under section 5 or 5.1 of this chapter.
of interest allowed on judgments, and the interest shall be computed
from the date the sewage works are approved until the date payment is
made to the municipality.
(c) The contract must include, as part of the consideration running to the municipality, the release of the right of the parties to the contract and their successors in title to remonstrate against pending or future annexations by the municipality of the area served by the sewage works. Any person tapping into or connecting to the sewage works contracted for is considered to waive
his the person's rights to
remonstrate against the annexation of the area served by the sewage
(d) This subsection does not affect any rights or liabilities accrued, or proceedings begun before July 1, 2013. Those rights, liabilities, and proceedings continue and shall be imposed and enforced under prior law as if this subsection had not been enacted. For contracts executed after June 30, 2013, the release of the right to remonstrate is binding on a successor in title to a party to the contract only if the successor in title:
(1) has actual notice of the release; or
(2) has constructive notice of the release because the contract, or a signed memorandum of the contract stating the release, has been recorded in the chain of title of the property.
(d) (e) Subsection (c) does not apply to a landowner if all of the
following conditions apply:
(1) The landowner is required to connect to the sewage works because a person other than the landowner has polluted or contaminated the area.
(2) The costs of extension of or connection to the sewage works are paid by a person other than the landowner or the municipality.
(b) Upon request by:
(1) a resolution adopted by the legislative body of another municipality in the same county; or
(2) a petition of the majority of the resident freeholders in a platted subdivision or of the owners of unplatted land outside the boundaries of a municipality, if the platted subdivision or unplatted land is in the same county;
the board may adopt a resolution incorporating all or any part of the area of the municipality, platted subdivision, or unplatted land into the district.
(c) A request under subsection (b) must be signed and certified as correct by the secretary of the legislative body, resident freeholders, or landowners. The original shall be preserved in the records of the board. The resolution of the board incorporating an area in the district must be in writing and must contain an accurate description of the area incorporated into the district. A certified copy of the resolution, signed by the president and secretary of the board, together with a map showing the boundaries of the district and the location of additional areas, shall be delivered to the auditor of the county within which the district is located. It shall be properly indexed and kept in the permanent records of the offices of the auditor.
(d) In addition, upon request by ten (10) or more interested resident freeholders in a platted or unplatted territory, the board may define the limits of an area within the county and including the property of the freeholders that is to be considered for inclusion into the district. Notice of the defining of the area by the board, and notice of the location and limits of the area, shall be given by publication in accordance with IC 5-3-1. Upon request by a majority of the resident freeholders of the area, the area may be incorporated into the district in the manner provided in this section. The resolution of the board incorporating the area into the district and a map of the area shall be made and filed in the same manner.
(e) In addition, a person owning or occupying real property outside the district may enter into a sewer service agreement with the board for connection to the sewage works of the district. If the agreement provides for connection at a later time, the date or the event upon which the service commences shall be stated in the agreement. The agreement may impose any conditions for connection that the board determines. The agreement must also provide the amount of service charge to be charged for connection if the persons are not covered under section 11 of this chapter, with the amount to be fixed by the
board in its discretion and without a hearing.
(f) All sewer service agreements made under subsection (e) or (after June 30, 2013) a signed memorandum of the sewer service agreement shall be recorded in the office of the recorder of the county where the property is located. The agreements run with the property described and are binding upon the persons owning or occupying the property, their personal representatives, heirs, devisees, grantees, successors, and assigns. Each
recorded agreement that is recorded, or
each agreement of which a signed memorandum is recorded, and
that provides for the property being served to be placed on the tax rolls
shall be certified by the board to the auditor of the county where the
property is located. The certification must state the date the property is
to be placed on the tax rolls, and upon receipt of the certification
together with a copy of the agreement, the auditor shall immediately
place the property certified upon the rolls of property subject to the
levy and collection of taxes for the district. An agreement may provide
for the collection of a service charge for the period services are
rendered before the levy and collection of the tax.
(g) Except as provided in subsection
(i), (j), sewer service
agreements made under subsection (e) must contain a waiver provision
that persons (other than municipalities) who own or occupy property
agree for themselves, their executors, administrators, heirs, devisees,
grantees, successors, and assigns that they will:
(1) neither object to nor file a remonstrance against the proposed annexation of the property by a municipality within the boundaries of the district;
(2) not appeal from an order or a judgment annexing the property to a municipality; and
(3) not file a complaint or an action against annexation proceedings.
(h) This subsection does not affect any rights or liabilities accrued or proceedings begun before July 1, 2013. Those rights, liabilities, and proceedings continue and shall be imposed and enforced under prior law as if this subsection had not been enacted. For contracts executed after June 30, 2013, a waiver of the right to remonstrate under subsection (g) is binding as to an executor, administrator, heir, devisee, grantee, successor, or assign of a party to a sewer service agreement under subsection (g) only if the executor, administrator, heir, devisee, grantee, successor, or assign:
(1) has actual notice of the waiver; or
(2) has constructive notice of the waiver because the sewer
agreement or a signed memorandum of the sewer agreement
stating the waiver has been recorded in the chain of title of the
(h) (i) This section does not affect any sewer service agreements
entered into before March 13, 1953.
(i) (j) Subsection (g) does not apply to a landowner if all of the
following conditions apply:
(1) The landowner is required to connect to a sewer service because a person other than the landowner has polluted or contaminated the area.
(2) The costs of extension of service or connection to the sewer service are paid by a person other than the landowner or the municipality.