All Roll Calls
Yes: 135 • No: 59
IndianaSB 270Second Regular Session 124th General Assembly (2026)SenateWALLET
Township mergers.
Sponsored By: Rick Niemeyer (Republican)
Signed by Governor
Summary
Requires the department of local government finance (department) not later than December 31, 2026, to compile data on each township (excluding townships in Marion County) and assign points based upon the township government's performance. Requires a township government that is assigned at least four points (designated township), with certain exceptions, to: (1) merge; or (2) for a township in which (A) at least 80% of the township's boundaries coincide with a municipality's boundaries; and (B) at least 51% of the township's population resides within the corporate boundaries of a municipality, reorganize with the municipality. Requires a merger to satisfy the following requirements: (1) A designated township must merge with at least one township that has less than four points (recipient township). (2) The merger must satisfy contiguity requirements under the township merger law. Provides that if all townships in a county have at least four points, the county executive must designate two townships to act as the recipient townships. Requires the county executive to designate which townships will merge taking into consideration: (1) the wishes of the designated townships and recipient townships; and (2) the contiguity requirements under the township merger law. Provides that all mergers in a county are effective not later than January 1, 2029. Establishes provisions for an interim township government for the new merged township government until a new township trustee and township legislative body are elected during the 2030 general election. Requires a designated township that is required to reorganize to adopt a resolution not later than October 1, 2027, that designates the municipality (recipient municipality) that will reorganize with the designated township. Requires the appointment of a joint board consisting of representatives of the designated township and the recipient municipality to prepare a plan of reorganization. Requires the county fiscal body to approve the budget, tax rate, and tax levy imposed by the recipient municipality within the boundaries of the rural township services district. Provides that a recipient municipality has all of the powers of the government modernization act in reorganizing the township. Amends the government modernization act to require a political subdivision to respond to a resolution that names the political subdivision as a participant in a proposed reorganization. Provides that a township merger does not affect the office of township assessor of a township participating in the merger. Amends the government modernization act to require a political subdivision to respond to a resolution that names the political subdivision as a participant in a proposed reorganization. Requires townships to annually provide certain information relating to fire protection to the department in a manner prescribed by the department using the department's computer gateway. Requires the department to share the information with the department of homeland security. Allows the county council, before January 2, 2027, to adopt a resolution to transfer the duties of a township assessor to the county assessor if: (1) the office of township assessor has been vacant for at least 90 days; (2) a caucus was held but failed to fill the vacancy; (3) the township board adopts a resolution approving the transfer of duties of the township assessor to the county assessor; and (4) the township trustee has approved, in writing, the transfer of duties of the township assessor to the county assessor. Prohibits the legislative body of a county from unilaterally requiring a unit participating in a reorganization that commenced after November 1, 2025, and before November 30, 2025, from being added to an existing fire protection district: (1) during negotiations regarding the reorganization among the participating units; (2) after the date on which a plan of reorganization is finally adopted by all participating units; or (3) as part of a reorganization in a finally approved plan of reorganization. Establishes requirements for the transfer of duties. Repeals a law that allows township governments to dissolve a merger.
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Bill Overview
Analyzed Economic Effects
13 provisions identified: 4 benefits, 4 costs, 5 mixed.
Taxpayers keep protections against inherited debt
Municipal reorganizations cannot shift pre-January 1, 2029, debt or existing pension obligations onto taxpayers who were not previously responsible. Township mergers likewise keep earlier debt with the taxpayers already responsible; existing liabilities are not forgiven. For taxes due in 2029, a merged township's levy limit cannot exceed the participating townships' combined 2028 maximum levies times the 2029 growth quotient. Receiving municipalities also cannot use the two township borrowing powers barred by the law.
Counties cannot force certain fire-district additions
Counties cannot unilaterally force participating governments into an existing fire district during the covered reorganization process. This covers reorganizations begun after November 1, 2025, and before November 30, 2025. The protection applies during negotiations, after final plan adoption, and within the approved plan. The rule took effect July 1, 2025, and expires January 1, 2027.
Merged townships elect new leaders in 2030
Recipient-township leaders serve during the merger transition, with representation from other participating townships under the law's selection rules. Voters elect a new trustee and board in the 2030 general election; the transition ends by December 31, 2030. Under the new merger chapter, all township voters elect a three-member board at large. A member's seat becomes vacant upon moving outside the merged township. In townships outside the special quorum rule, the executive breaks tied votes but cannot break a tie to increase their own pay.
Residents get online emergency-service information
Beginning in 2026, every Indiana township trustee must report fire and emergency-service information annually through the state's finance reporting system. The finance department must compile the reports and send them to the Indiana Department of Homeland Security. The state must post provider names, service areas, service types, and contact details online in a computer-readable format.
Receiving municipalities gain property-tax capacity
For taxes due in 2029, receiving municipalities gain added property-tax capacity based on the former township's levy limit. The addition equals the township's 2028 maximum levy multiplied by the 2029 levy growth quotient. The adjusted limit also guides limits for 2030 and later years. The fire and emergency-services levy limit uses the applicable 2028 maximum levy times that quotient, plus specified 2028 borrowing. Unless the plan says otherwise, municipalities can also use funds and tax powers available to the township before January 1, 2029. These powers do not require collection of the maximum levy or set any household's tax bill.
Low-scoring townships must merge or reorganize
Indiana townships receiving at least 4 points under the state's scoring system must merge or reorganize. Scoring covers assistance, fire services, financial reporting, continued budgets or levies, and specified election or vacancy problems. Criteria include fewer than 24 assistance applications in 2023–2024 and a certified 2025 budget below $100,000. The state posts its list by December 31, 2026; townships can petition by March 31, 2027. Final decisions are due June 30, with corrected lists due July 1, 2027. Designated townships meeting the 80% boundary-match and 51% population tests must reorganize with the matching municipality. Others generally must merge with another township in the county by January 1, 2029, subject to adjoining-area and recipient requirements. Each county must retain at least two townships; townships that began a merger or consolidation before July 1, 2027, are excluded from the merger requirement.
Merged townships pay costs, lose reversal
Township boards merging under the new merger chapter must approve matching resolutions within 90 days after the required public hearing. The new township government must pay all merger costs. The law also removes the existing statutory process for dissolving a township merger. It sets no merger cost amount or household charge.
Township development actions need temporary approval
From July 1, 2027, through December 31, 2028, listed actions in designated townships require the receiving municipality's approval. These include starting annexation, creating fire territories or districts, extending utilities or infrastructure, and expanding zoning authority. The receiving municipality can approve these actions by resolution. It can also take listed actions to carry out the reorganization plan.
Township service taxes can vary locally
Starting in 2028, receiving municipalities must adopt a township services property-tax levy for the following year. The last approved levy continues when required adoption or approval is late. Separate urban and rural districts are required when part of the former township lies outside the municipality. Rates must be uniform within each district, but districts can have different rates. County fiscal bodies can reduce or modify, but not increase, proposed rural levies. Reorganization plans can also tie different service levels to different fees, charges, or taxes. After December 31, 2028, levies must fund township services and applicable earlier obligations.
Municipalities take over qualifying township services
Qualifying designated townships dissolve January 1, 2029, and their officials' terms end December 31, 2028. This applies to townships meeting the 80% boundary-match and 51% population tests, based on the latest decennial census. Townships in consolidated-city counties or already beginning the specified consolidation by June 30, 2027, are exempt. Municipal or county officials receive the transferred duties, property, funds, and liabilities; township-office elections end. The receiving municipality must provide township services throughout the former township, including areas outside the municipality. Existing fire-district roles continue, and approved cooperation agreements can transfer service duties. Earlier trustee or assessor actions, fees, and appointments remain valid.
Reorganization advocacy faces public-spending limits
Before final plan approval, the township and receiving municipality cannot use public money or staff work time to promote a position. Public facilities or equipment can support advocacy only when opposing sides receive equal access. Officials can speak personally without public funds, and the law excepts covered employees' personal spending under employment or union contracts. Contractors providing goods or services cannot spend money to promote a position on the reorganization. Violations carry a Class A infraction penalty.
Township assessors stay, with vacancy exception
Township mergers preserve existing assessor offices, with each assessor serving only the former township's area. Only voters in that former township elect its assessor. From July 1, 2026, through January 2, 2027, counties can transfer duties after an assessor vacancy lasting at least 90 days. A caucus must have failed to fill the vacancy, the township board must approve, and the trustee must agree in writing. That transfer abolishes the township office and moves its staff, property, funds, obligations, and specified revenue to the county assessor.
Townships face reorganization deadlines and filings
A designated township must propose municipal reorganization by October 1, 2027, when the law's geographic tests apply. At least 80% of its boundaries must match one municipality, and 51% of its population must live there. Local governments receiving a qualifying certified resolution must decline with reasons or propose participation with the same or different governments. County recorders must record qualifying plans and certifications free of charge and notify the affected county election boards.
Sponsors & Cosponsors
Sponsor
Rick Niemeyer
Republican • Senate
Cosponsors
Alaina Shonkwiler
Republican • House
Greg Walker
Republican • Senate
Harold Slager
Republican • House
James Buck
Republican • Senate
Timothy Wesco
Republican • House
Roll Call Votes
Senate vote • 2/26/2026
Senate concurred with House amendments
Yes: 34 • No: 15
House vote • 2/24/2026
Third reading: passed
Yes: 62 • No: 35
Senate vote • 1/28/2026
Third reading: passed
Yes: 39 • No: 9
Actions Timeline
Public Law 134
3/5/2026SenateSigned by the Governor
3/5/2026SenateSigned by the President Pro Tempore
2/27/2026SenateSigned by the President of the Senate
2/27/2026SenateSigned by the Speaker
2/27/2026HouseSenate concurred with House amendments; Roll Call 301: yeas 34, nays 15
2/26/2026SenateReturned to the Senate with amendments
2/25/2026HouseMotion to concur filed
2/25/2026SenateThird reading: passed; Roll Call 353: yeas 62, nays 35
2/24/2026HouseRepresentative Wesco added as cosponsor
2/24/2026HouseSecond reading: amended, ordered engrossed
2/23/2026HouseAmendment #1 (Slager) prevailed; voice vote
2/23/2026HouseCommittee report: amend do pass, adopted
2/18/2026HouseRepresentative Shonkwiler added as cosponsor
2/18/2026HouseCommittee report: amend do pass, adopted
2/17/2026HouseRecommitted to Committee on Ways and Means pursuant to House Rule 126.3
2/17/2026HouseFirst reading: referred to Committee on Local Government
2/2/2026HouseReferred to the House
1/29/2026SenateHouse sponsor: Representative Slager
1/28/2026SenateThird reading: passed; Roll Call 128: yeas 39, nays 9
1/28/2026SenateSenator Walker G added as third author
1/26/2026SenateSenator Buck added as second author
1/26/2026SenateSenator Walker G removed as second author
1/26/2026SenateSecond reading: ordered engrossed
1/22/2026SenateCommittee report: do pass, adopted
1/20/2026Senate
Bill Text
Engrossed Senate Bill (S)
Enrolled Senate Bill (S)
Introduced Senate Bill (S)
Senate Bill (H)
Senate Bill (S)
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