Court: Indiana cities subject to $5 cap on rental fees

The Indiana Supreme Court has ruled that all Indiana municipalities are subject to the state's $5 cap on annual rental property registration fees.

The state's highest court ruled Friday in a case involving Hammond, West Lafayette and Bloomington that exemptions were unconstitutional, The Times of northwest Indiana reported.

The case stemmed from a state law that exempted Bloomington and West Lafayette due to their unique rental market as college towns. But the limit applied to Hammond, which charged higher rental registration fees per unit to partially offset the cost of conducting regular inspections to ensure properties are safe for living.

West Lafayette Mayor John Dennis told the Journal and Courier that its rental inspection program will continue despite the ruling, though he's not sure how it will be funded.

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