Government

Council changing local income tax

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The Public Safety Local Income Tax is changing. The Montgomery County Council voted 6-0 Tuesday to modify the rate presently at .6% to .95% which will enable the county to fund the future county-wide emergency medical services.

Also, how the funds will be paid and collected is changing.

The state legislature is allowing counties to adopt a new tax levy on income tax. Funding for public safety for 9-1-1 operations can now be funded by a Local Income Tax instead of property taxes. The type of funding is known as a local income tax with a public safety access point (PSAP).

County Attorney Dan Taylor explained .25% of the increase will go to public safety and the remaining 1% will be used to fund the 9-1-1 call center.

Previously the 9-1-1 Call Center was funded by property taxes and paid by the county and City of Crawfordsville general funds.

Council member Gary Booth made the motion to modify the Public Safety Local Income Tax rates which Jake Bohlander seconded. The motion passed 6-0. Council member Don Mills did not attend the meeting.

After the meeting Booth explained why he felt the change for the call center funding was necessary.

“Using property tax funds to pay for the call center meant city residents were being double-dipped,” Booth said. “Not only did city residents pay through the city general fund, they were also paying out of the county general fund. Now the funds will no longer come out of property taxes, but from local income taxes. The city residents will not be paying twice.”

Council members were shown figures for the 2023 budget by Auditor Jennifer Andel. Presently the total budget is being reported in the amount of $45,402,262, however, Andel said there will be changes as the budget process moves along. She believes the actual 2023 budget will end up being less than what she reported at the meeting.

In other business, the council:

• Approved additional appropriations in the total amount of $58,955.37.

• Approved the transfer of appropriations in the total amount of $80,809.

• Approved payment of claims totaling $18,585.31

• Held a public hearing on the 2023 Montgomery County Solid Waste District budget in the amount of $107,000.


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