The Indiana State Fire Marshal issues a recommended schedule of service charges for fire protection services annually, pursuant to Indiana Code 36-8-12-16(h).
Understanding Your Authority to Charge for Services
Many Indiana fire departments are unaware of their legal authority to collect service charges for incident responses. This guidance clarifies the billing rights available under Indiana law and provides the State Fire Marshal's recommended fee schedule to help departments offset operational costs and generate revenue for equipment, training, and emergency services.
Key Statutes: Know Your Department Type
Your billing authority depends on your department's structure:
Volunteer Fire Departments have broader billing authority under two statutes:
- IC 36-8-12-13: Allows charges for hazardous material/fuel spills and chemical or hazardous material-related fires
- IC 36-8-12-16: Allows service charges for any type of response (not limited to hazmat incidents)
Paid or Combination Fire Departments have limited billing authority:
- IC 36-8-12.2: Allows charges only for hazardous materials emergency responses meeting specific reporting thresholds
State Fire Marshal Recommended Fee Schedule (2025)
The Indiana State Fire Marshal publishes an annual recommended schedule pursuant to IC 36-8-12-16(h). Departments may establish charges up to these amounts:
Service Type | Fee Amount |
|---|---|
Initial Response per fire engine, truck, apparatus, hazmat unit, or rescue unit | $500.00 per vehicle |
Initial Response per command/control vehicle | $200.00 per vehicle |
On-Scene Assistance per hour (or fraction) per response unit | $400.00 per unit |
On-Scene Assistance per hour (or fraction) per command/control vehicle | $200.00 per vehicle |
Expendable Materials (absorbents, emulsifiers, cleanup agents) | Actual replacement cost |
Debris/Chemical Collection & Disposal | Actual cost of removal and disposal |
Example Cost Recovery Calculation
A structure fire response with 2 engines, 1 command vehicle, and 3 hours on-scene:
- Initial Response: (2 × $500) + (1 × $200) = $1200
- On-Scene Time: (2 × $400 × 3 hours) + (1 × $200 × 3 hours) = $3,000
- Total Billable: $4,200
Implementation Requirements for Volunteer Fire Departments
To legally collect service charges under IC 36-8-12-16, your department must meet these conditions:
1. Public Notice Requirements
Publish notice under IC 5-3-1-4(d) in each political subdivision you serve:
- Before initiating your schedule of service charges
- When changing the amount of any service charge
- Notice must specify the charge amount for each service type
2. Billing Requirements
Within 30 days after services are provided, submit a written bill to the property owner including:
- Copy of the fire incident report (in State Fire Marshal prescribed form)
- Verification of approval by the fire chief
- Language directing correspondence and questions to the department
3. Property Owner Opt-Out
Service charges cannot be collected if the property owner previously sent written notice refusing service
4. Payment Processing
- Payment must be remitted directly to the governmental unit providing service
- Administrative fees charged by billing agents must be paid only from collected fees allowed by Indiana law
5. Reporting Requirements (if contracted with political subdivision)
Submit annual report before April 1 showing:
- Amount of service charges collected during previous calendar year
- How funds were expended
Authorized Uses of Revenue
Revenue collected from fire service charges may only be used for:
Volunteer Departments (IC 36-8-12-16):
- Purchase of equipment, buildings, and property for firefighting, fire protection, or emergency services
- Deposit in township firefighting and emergency services fund (IC 36-8-13-4)
- Payment of principal and interest on Department of Homeland Security loans for firefighting equipment
Paid/Combination Departments (IC 36-8-12.2) (hazmat responses only):
- Purchase of supplies and equipment for hazardous materials emergency assistance
- Training for hazardous materials emergency response skills
- Payments to contractors providing hazardous materials emergency services
Enforcement and Collection
- Departments may maintain civil action to recover unpaid service charges
- Prevailing departments may recover all costs of action, including reasonable attorney's fees (IC 36-8-12-16(i))
- Responsible parties face 10% penalty for failure to pay within 60 days (IC 36-8-12.2-11)
Common Confusion: The Statutory Difference
Many departments incorrectly believe they can only bill for hazmat responses. This confusion arises from the different statutes:
✓ Volunteer departments under IC 36-8-12-16 can charge for any response (structure fires, vehicle accidents, medical assists, etc.)
✗ Paid/combination departments under IC 36-8-12.2 are limited to hazmat emergencies only
If you operate a volunteer department, you have broader billing authority than you may realize. Review IC 36-8-12-16 carefully to understand your full revenue opportunities.
Next Steps
- Verify your department type (volunteer vs. paid/combination)
- Adopt a resolution establishing your schedule of service charges (not to exceed State Fire Marshal recommendations)
- Publish required public notice in each political subdivision you serve
- Establish billing procedures to ensure 30-day billing timeline and required documentation
- Consider contracting with a billing agent to handle administrative processing
- Maintain accurate records of incidents, responses, and revenue collected
Questions? Contact the Indiana State Fire Marshal's Office at firemarshal@dhs.IN.gov, and consult with your department's legal counsel to ensure proper implementation.