SB 274

                                                           Introduced Version
          SENATE BILL No. 274
                _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 36-4-3-19.1.
Synopsis: Disannexation of property. Provides that disannexation of
certain property is effective upon filing a disannexation petition with
the county auditor and recording the petition with the county recorder.
Requires the property owner to file a petition requesting a municipality
to annex the property not more than 48 months after the disannexation
is effective.
Effective: July 1, 2026.
                            Niemeyer
   January 8, 2026, read first time and referred to Committee on Local Government.
2026  IN 274—LS 6937/DI 87
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 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 2025 Regular Session of the General Assembly.
                   SENATE BILL No. 274
    A BILL FOR AN ACT to amend the Indiana Code concerning local
 government.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 36-4-3-19.1 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2026]: Sec. 19.1. (a) This section applies only to a town that:
4      (1) was incorporated after 1990; and
5      (2) is located in a county having a population of more than
6      four hundred thousand (400,000) and less than seven hundred
7      thousand (700,000).
8    (b) The owner of real property meeting the following
9 requirements, may file a petition to disannex the property:
10      (1) The property consists of:
11(A) at least thirty (30) acres; and
12(B) not more than four (4) individual parcels;
13      that were included in the corporate limits of the town as the
14      town was originally incorporated.
15      (2) The boundary of a portion of the property is contiguous to
16      the boundary of:
17(A) the unincorporated area of the county; or
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1(B) another municipality.
2      (3) An available sanitary sewer owned by the municipality
3      does not abut the property.
4    (c) The petition to disannex must include the following:
5      (1) A legal description of the property that is the subject of the
6      petition.
7      (2) The signed and notarized signature of the property owner.
8    (d) The owner shall:
9      (1) record the executed petition to disannex with the county
10      recorder of the county in which the disannexed territory is
11      located; and
12      (2) file a copy of the executed petition with the county auditor
13      of the county in which the disannexed territory is located.
14    (e) The disannexation is complete and effective upon recording
15 and filing the petition as provided in subsection (d). The county
16 auditor shall list the disannexed property appropriately for
17 taxation.
18    (f) The county auditor shall forward a list of parcels disannexed
19 under this section to the following:
20      (1) The town that lost jurisdiction over the disannexed
21      territory.
22      (2) The county highway department of each county in which
23      the parcels affected are located.
24      (3) The county surveyor of each county in which the parcels
25      affected are located.
26      (4) Each plan commission, if any, that lost or gained
27      jurisdiction over the disannexed territory.
28      (5) The township trustee of each township that lost or gained
29      jurisdiction over the disannexed territory.
30      (6) The sheriff of each county in which parcels affected are
31      located.
32      (7) The office of the secretary of state.
33      (8) The office of census data established by IC 2-5-1.1-12.2.
34      (9) The department of local government finance, not later
35      than August 1 following the disannexation, in the manner
36      described by the department.
37 The county auditor may require the owner to furnish an adequate
38 number of copies of the list of disannexed parcels or may charge
39 the owner a fee for copies of the list.
40    (g) Sections 16, 17, 18, and 19 of this chapter do not apply to a
41 disannexation under this section.
42    (h) The owner of the disannexed property must execute a
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1 petition under section 5, 5.1, or 5.2 of this chapter for annexation
2 to a municipality not more than forty-eight (48) months after the
3 disannexation is complete and effective under subsection (e).
2026  IN 274—LS 6937/DI 87