SCOTUS sides with city of Indianapolis in sewer dispute

June 9, 2012

Washington, D.C.: The United States Supreme Court has sided with the Indiana Supreme Court in a dispute filed by Indianapolis residents over sewer charges. In 2005 the city of Indianapolis switched to a new payment system resulting in wildly differing rates for hookup to city sewer. Some residents payed just $309, while others payed over $9,000.

Under the old system homeowners paid an equal portion of the sewer project cost. Residents were given the option to pay in one lump sum or in equal installments over 10, 15, or 30 years. The new system assesses homeowners a $2,500 flat fee for hookup, plus increased sewer rates for all residents. Instead of administering the old system parallel with the new one, the old system was discontinued and all residents were switched to the new system. This resulted in residents who had paid upfront under the old system being charged high prices (up to $9,278), while those who chose to stretch out payments under the old system were charged much lower rates (as low as $309).

The Supreme Court ruled that this practice was legal and precedented. In his opinion Justice Stephen Breyer noted that, "distinguishing past payments from future obligations, is well established law and was a rational decision."

External links

• Washington Post, "Supreme Court backs Indianapolis decision to refuse tax refunds to some property owners," June 4, 2012
• Indianapolis Business Journal, "Indy’s sewer-fee forgiveness ruled constitutional by high court," June 4, 2012
• Journal of Accountancy, "Refusal to refund sewer assessments is not Equal Protection violation, Supreme Court holds," June 5, 2012
• ABC News, "Ind. Taxpayers Lose High Court Fight Over Refunds," June 4, 2012
• Appleton Post Crescent, "Supreme Court sides with city in sewer payment case," June 4, 2012
• The Indianapolis Star, "Supreme Court sides with Indianapolis in sewer payment case," June 4, 2012