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Committee clears bill collapsing fire-district tax gap for New Albany annexation
Summary
Senate Bill 389, which collapses the two-year collection gap that can delay municipal fire-protection revenue following an annexation, passed the House Local Government Committee unanimously by recorded vote.
The House Local Government Committee approved Senate Bill 389, a targeted measure to "collapse the gap" in fire-district tax collections so a municipality assuming fire protection can begin receiving revenues without waiting a second year.
Senator Buck, who presented the bill, said the measure responds to a specific New Albany development where annexation has already occurred and the municipality and local fire district agreed the municipality would take over fire protection. "The primary reason for... collapsing what they call the gap is so that the municipality can start getting revenue without having to go through the second year gap for a fire protection district," Senator Buck said.
Representative Waters asked for a plain-language explanation; Senator Buck characterized the bill as agreeable to both parties and taxpayer-friendly. No witnesses signed in opposition. The committee voted to pass the bill; the roll call recorded a 10-0 passage with several members excused.
Committee roll call recorded the following votes: Chairman May — yes; Representative Borders — yes; Representative Bascom — yes; Representative Engleman — yes; Representative Hall — yes; Representative Miller — yes; Representative Meltzer — yes; Representative Sweet — yes; Representative Johnson — yes; Representative Smith — yes. Representatives Commons, Moed and Summers were excused. The bill passed out of committee for further legislative consideration.
