Indiana Code Title 36. Local Government § 36-4-3-8

Sec. 8.  (a) This section does not apply to an ordinance adopted under section 5 or 5.1 of this chapter.

(b) An ordinance adopted under section 3 or 4 of this chapter must include terms and conditions fairly calculated to make the annexation equitable to the property owners and residents of the municipality and the annexed territory.  The terms and conditions may include:

(c) This subsection applies to territory sought to be annexed that meets all of the following requirements:

This subsection does not apply to an ordinance annexing territory described in section 4(a)(2), 4(a)(3), 4(b), or 4(h) of this chapter.  The ordinance must include terms and conditions impounding in a special fund all of the municipal property taxes imposed on the annexed territory after the annexation takes effect that are not used to meet the basic services described in section 13(d)(4) and 13(d)(5) of this chapter for a period of at least three (3) years.  The impounded property taxes must be used to provide additional services that were not specified in the plan of annexation.  The impounded property taxes in the fund shall be expended as set forth in this section, not later than five (5) years after the annexation becomes effective.