City of Hammond v. Herman & Kittle Properties, Inc.Annotate this Case
The Supreme Court held that the Fee Exemption, a provision in Ind. Code 36-1-20-5 that allows the cities of Bloomington and West Lafayette to charge local landlords any amount to register rental properties, is unconstitutional special legislation that must be struck down but that the remainder of section 36-1-20-5 remains in force.
While the Fee Exemption singles out the cities of Bloomington and West Lafayette for preferential treatment, all other Indiana localities are restricted to charging only $5 under another provision - the Fee Restriction - in section 36-1-20-5. The City of Hammond challenged the Fee Exemption as unconstitutional under Ind. Const. art. IV, 23. The Supreme Court agreed with the City and held that the Fee Exemption is unconstitutional but that the remainder of the statute, including the Fee Restriction, remained in effect and now operates statewide.