The following apply to a reorganization under this chapter:

1. (1) Except as provided in subdivision (2):

   1. (A) the recipient municipality is responsible after December 31, 2028, for providing township services in all areas of the designated township; and
   2. (B) the recipient municipality retains the powers of the designated township after December 31, 2028, in order to provide township services as required by clause (A).
2. (2) Powers and duties of the recipient municipality may be transferred as authorized in an interlocal cooperation agreement approved under IC 36-1-7 or as authorized in a cooperative agreement approved under IC 36-1.5-5 .
3. (3) Section 27 of this chapter applies to the debt service levy of the recipient municipality and to the department of local government finance's determination of the new maximum permissible ad valorem property tax levy for the recipient municipality.
4. (4) The recipient municipality may not borrow money under IC 36-6-6-14 (b) or IC 36-6-6-14 (c).

5. (5) The new maximum permissible ad valorem property tax levy for the recipient municipality's firefighting and emergency services fund under IC 36-8-13-4 (a)(1) or the combined levies for the firefighting fund and emergency services fund described in IC 36-8-13-4 (a)(2) is equal to:

   1. (A) the result of:

      1. (i) the maximum permissible ad valorem property tax levy for the designated township's firefighting and emergency services fund under IC 36-8-13-4 (a)(1) or the combined ad valorem property tax levies for the township firefighting fund and township emergency services fund described in IC 36-8-13-4 (a)(2), as applicable, in 2028; multiplied by
      2. (ii) the maximum levy growth quotient applicable for property taxes first due and payable in 2029; plus
   2. (B) any amounts borrowed by the designated township under IC 36-6-6-14 (b) or IC 36-6-6-14 (c) in 2028.

As added by P.L.134-2026, SEC.3.