IndianaSB 270Second Regular Session 124th General Assembly (2026)SenateWALLET

Township mergers.

Sponsored By: Rick Niemeyer (Republican)

Signed by Governor

local governmenttax and fiscal policythe house

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 3 benefits, 1 costs, 4 mixed.

You won't pay others' old debts

Debts and pension costs that existed before January 1, 2029 stay with the taxpayers who owed them then. Your area is not charged for another area’s old debts or pensions after the merger.

City tax powers after township merger

For taxes due in 2029, the city’s maximum property tax levy increases by the township’s 2028 maximum levy times the 2029 growth rate, and that higher base carries forward. The city may set up any fund or tax the township could before January 1, 2029. If they share a fire protection territory, the city may levy for a fire equipment replacement fund, and the state finance office can raise the city’s allowed levy to meet those fire bills. Starting in 2028, the city must adopt a township services district levy each year; if it fails, the last approved levy continues for the next year.

Townships inside cities dissolve in 2029

On January 1, 2029, a township dissolves if at least 80% of its borders match a city and at least 51% of its people live in that city. Township offices end December 31, 2028, and no future township elections are held. The city takes over the trustee’s duties and the board’s fiscal and lawmaking roles; if there is a township assessor, the county assessor takes over assessments. The township’s property, debts, and pensions move to the city, with protections and limits set in the law. The township’s general and assistance fund balances move to the city, and debt service balances go to a city debt service fund (the city must create one by January 1, 2029, if needed).

How merged township boards are elected

When townships merge, the new board has one member from each former township. For mergers under IC 36-6-1.7, starting with the 2030 general election, all voters elect a three‑member board at large.

City borrowing limits after merger

Starting January 1, 2029, after a merger that takes effect after December 31, 2028, the receiving city cannot borrow under IC 36-6-6-14(b) or (c). This removes one borrowing tool and can limit new debt tied to township services.

Different tax rates inside and outside city

If part of the merged township lies outside the city, the city creates two districts: urban (inside) and rural (outside). The city may tax both at one rate or set different rates, but each district must have one uniform rate within it. The city must send the rural district levy to the county by October 1, and the county may reduce or modify, but not increase, that rural levy. If either body misses deadlines, the most recent approved levy stays in effect. These rules start January 1, 2029.

Guardrails on local merger steps and spending

From July 1, 2025 to January 1, 2027, for reorganizations begun November 1–30, 2025, a county cannot force a unit to join an existing fire protection district. After June 30, 2027 until December 31, 2028, no annexation, new fire districts, utility extensions, or zoning expansions occur in the designated township unless the receiving city agrees; the city may act to carry out the plan. Until the city council approves the final plan, the city and township may not use public money, staff time, or buildings to promote a position; contractors with government contracts face a Class A infraction if they spend to campaign. When a local body gets a certified reorganization resolution, it can decline, join as proposed, or propose different partners, and must notify the named units.

Old township dissolution path repealed

The prior law for dissolving township governments (IC 36-6-1.6) is repealed upon enactment. Those old procedures no longer apply.

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

All Roll Calls

Yes: 135 • No: 59

Senate vote 2/26/2026

Roll Call 301 on SB0270.06.ENGH.CON01

Yes: 34 • No: 15 • Other: 1

House vote 2/24/2026

Roll Call 353 on SB0270.05.COMH

Yes: 62 • No: 35 • Other: 3

Senate vote 1/28/2026

Roll Call 128 on SB0270.03.COMS

Yes: 39 • No: 9

Actions Timeline

  1. Signed by the Governor

    3/5/2026Senate
  2. Public Law 134

    3/5/2026Senate
  3. Signed by the President Pro Tempore

    2/27/2026Senate
  4. Signed by the President of the Senate

    2/27/2026Senate
  5. Signed by the Speaker

    2/27/2026House
  6. Senate concurred with House amendments; Roll Call 301: yeas 34, nays 15

    2/26/2026Senate
  7. Motion to concur filed

    2/25/2026Senate
  8. Returned to the Senate with amendments

    2/25/2026House
  9. Representative Wesco added as cosponsor

    2/24/2026House
  10. Third reading: passed; Roll Call 353: yeas 62, nays 35

    2/24/2026House
  11. Second reading: amended, ordered engrossed

    2/23/2026House
  12. Amendment #1 (Slager) prevailed; voice vote

    2/23/2026House
  13. Committee report: amend do pass, adopted

    2/18/2026House
  14. Representative Shonkwiler added as cosponsor

    2/18/2026House
  15. Recommitted to Committee on Ways and Means pursuant to House Rule 126.3

    2/17/2026House
  16. Committee report: amend do pass, adopted

    2/17/2026House
  17. First reading: referred to Committee on Local Government

    2/2/2026House
  18. Referred to the House

    1/29/2026Senate
  19. House sponsor: Representative Slager

    1/28/2026Senate
  20. Third reading: passed; Roll Call 128: yeas 39, nays 9

    1/28/2026Senate
  21. Senator Buck added as second author

    1/26/2026Senate
  22. Senator Walker G removed as second author

    1/26/2026Senate
  23. Senator Walker G added as third author

    1/26/2026Senate
  24. Second reading: ordered engrossed

    1/22/2026Senate
  25. Committee 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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