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Sanitary commissioners warn state tax overhaul could force shift to fee-based service
Summary
Board members said Senate Enrolled Act 1 will change Indiana property and local income taxes and could require the sanitation district to move from tax funding to a fee-for-service model; officials gave no final decision and said specific impacts are still being assessed.
Board of Sanitary Commissioners members said changes from Indiana’s Senate Enrolled Act 1 could force the sanitation district to move from tax funding to a fee-based service.
Conrad, a district staff member, told the board at the June 11 meeting that the bill, signed by the governor April 15, “is going to cause some significant changes to Indiana's property tax and local income tax systems.” He said the district is still assessing the precise impacts but that officials “do anticipate that at some point we're going to have to switch to a fee based service for sanitation responsibilities.”
The potential change matters because the sanitation district is funded primarily through local taxes. The district did not vote on any ordinance or fee at the meeting; Conrad and commissioners framed the remarks as planning and warning to ratepayers rather than a formal decision.
Why it matters: Board members said the changes could materially reduce tax revenue for sanitation operations. Commissioner Clark noted the potential scale of the loss, saying the district expects “north of three quarters of a million dollars” in reduced revenue in the second year of the state changes. Board members said they are exploring options but made no policy change at the meeting.
District staff described the current status as evaluative. Conrad said no final decisions have been made and that the board is informing the public about an anticipated transition timeline without setting rates or an implementation date.
Board discussion included questions about how a fee model would affect ratepayers and when a transition might be required. No motions or directives to draft a specific fee ordinance were recorded at the meeting.
The board urged transparency to help ratepayers understand the potential shift and said staff will continue to analyze the law’s budgetary effects before returning with any recommendations or formal proposals.
The topic appeared during the district operations update and drew questions from commissioners; the board did not set a schedule for additional action at this meeting.
