Cal. Civ. Code § 36-1-20-2
Assessment of tenants for fees assessed by political subdivision; exceptions
Operative Text
Sec. 2. (a) Except as provided in subsection (b), the owner of a rental unit assessed any fee by a political subdivision pertaining to the rental unit may: (1) notify the tenants of the rental unit of the assessment of the fee; and (2) require the tenants of the rental unit to reimburse the owner for the payment of the fee. (b) Tenants of a rental unit may not be required to reimburse the owner of a rental unit for fees assessed by a political subdivision relating to the construction of the rental unit, such as building permit fees.
Indiana Code § 36-1-20-2 establishes when a rental property owner may pass through fees charged by a local government to the tenants of the affected unit. Under this provision, owners are generally permitted to inform tenants of such fees and to require reimbursement for them. However, the rule carves out a firm exception: fees tied to the construction of the rental unit itself—such as building permit fees—cannot be passed on to tenants under any circumstances.
Plain English — not legal advice.
Under Ind. Code § 36-1-20-2, compliant operators who receive a fee assessment from a local political subdivision related to a rental unit typically provide written notice of that fee to the affected tenants and may include a reimbursement requirement in the lease or as a separate charge. Operators should be careful to distinguish between ongoing operational fees—which may be passed through—and construction-related fees such as building permit fees, which the statute expressly prohibits from being charged back to tenants. Maintaining clear records of the nature and origin of any assessed fee helps demonstrate that a pass-through charge falls within the permitted category.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Ind. Code § 36-1-20-2 gives tenants the right to be free from reimbursement demands for fees that a political subdivision assessed in connection with the construction of their rental unit, including building permit fees. If a landlord attempts to charge back such a fee, tenants may have grounds to dispute or refuse that charge, and raising this statutory protection as a defense in any related proceeding is one avenue available under Indiana law. Tenants who believe a prohibited fee is being assessed may wish to consult a local tenant-rights organization or legal aid office for general information about how this provision applies to their situation.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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