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IN HB1205

IN HB1205
Annexation.


summary

Introduced
01/05/2026
In Committee
01/05/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Annexation. Requires a municipality that initiates an annexation to file an annexation petition (petition) with a court signed by: (1) at least 51% of the owners of non-tax exempt land in the annexation territory; or (2) the owners of at least 75% in assessed valuation of non-tax exempt land in the annexation territory. Eliminates: (1) remonstrances and waivers; (2) reimbursement of remonstrator's attorney's fees and costs; (3) settlement agreements in lieu of annexation; (4) contiguity of a public highway provisions; and (5) a required fiscal plan for certain super voluntary annexations. Reduces the number of outreach meetings from six to three. For super voluntary annexations, requires a municipality to: (1) hold a hearing on the petition within 90 (instead of 30) days; (2) adopt an annexation ordinance within 120 (instead of 60) days. Allows a super voluntary annexation of noncontiguous land for business, industrial, or residential development, if: (1) the landowner and municipal utility agree on the provision of gas, electric, water, or sewer service to the property; and (2) the county executive timely approves the petition. Allows noncontiguous land annexed in a super voluntary annexation to be used for additional voluntary or super voluntary annexations of contiguous land. After December 31, 2026, allows signatures on petitions to be gathered by mail. Provides that annexation territory that is divided by railroad tracks satisfies contiguity requirements, if the territory on at least one side of the railroad tracks is contiguous to the municipality. Grandfathers in annexations that adopt: (1) a fiscal plan before March 30, 2026; or (2) an annexation ordinance before March 30, 2026 (if a fiscal plan is not required by current law). Removes obsolete provisions.

AI Summary

This bill modifies Indiana's annexation laws by requiring municipalities to file an annexation petition with a court that is signed by either at least 51% of the owners of non-tax exempt land or the owners of at least 75% of the assessed valuation of non-tax exempt land within the territory to be annexed. It eliminates remonstrances (formal objections) and waivers, as well as the reimbursement of remonstrators' legal fees, and prohibits settlement agreements in lieu of annexation. The bill also removes provisions related to the contiguity of public highways and a required fiscal plan for certain "super voluntary annexations" (a type of annexation initiated by landowners). The number of required outreach meetings for annexations is reduced from six to three. For super voluntary annexations, municipalities must hold a hearing on the petition within 90 days and adopt an annexation ordinance within 120 days. The bill allows for noncontiguous land to be annexed for business, industrial, or residential development if utility services are agreed upon and the county executive approves, and this noncontiguous land can then be used for further contiguous annexations. Signatures on petitions can be gathered by mail after December 31, 2026, and territory divided by railroad tracks will satisfy contiguity requirements if one side is adjacent to the municipality. The bill also includes grandfather clauses for annexations that adopt a fiscal plan or annexation ordinance before March 30, 2026, and removes outdated provisions.

Committee Categories

Government Affairs

Sponsors (2)

Last Action

First reading: referred to Committee on Local Government (on 01/05/2026)

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