The County Council voted 6-1 in favor of adopting an ADDITIONAL 1.55% county income tax.  Dianne Richardson voted against 1.25% of the taxes.  This makes the Jasper County Local Income tax rate equal a total of 3.05%.  When added to the Indiana state tax, taxpayers will be paying 6.45% on all forms of Individual Indiana Taxable Income. 

This tax will not be paid by corporations (they pay corporate tax and do not pay any county tax) or anyone who owns a business or property but does not live in our county.  County taxes are collected based on where you live as of January 1st.  County taxes are collected in the county you live in, regardless of where you work or where you own property.  The only exception is for those who live in a county without a county tax (lake county is the only one left) and work in a county that has a tax.

The first tax rate was set by the state.  The tax is on taxable Individual Indiana income.  The rate is to cover the levy increase for the year.  The rate is then doubled the first year and must be imposed for 2 years.  After that, the council can decide to fund the levy increase with property taxes or continue to fund it with local income tax.  The state has set the rate at 0.3% for Jasper County. 

The second tax set by the council was set at the maximum allowed amount of 1.00%.  This tax is also on taxable Individual Indiana income.  The tax collected goes toward property tax relief.  The Council voted 6-1 to give this break to everyone - even those people who do not pay the tax.  Everyone will get a credit on their real estate taxes in 2008 of about 20%.  If the council had picked one of the 2 other options, the % would have been higher but the businesses and farmers would not have gotten any of the credit.

The third tax is the only "new" money to the county.  The other 2 taxes will take money from income tax and apply it to property taxes.  The third tax is 0.25% and can be used for any safety items; including ambulance service, criminal justice, 911, Fire, etc. The council voted 6-1 to impose this tax.

None of these taxes were mandated by the state.  These taxes were all left to the individual counties to impose them as an option to decrease property taxes.  It was up to the county to decide if they:

1) wanted to impose any of the 3 taxes

2) What level of tax they wanted to impose.

3)  Who to give the tax credit to.  If the council had picked the qualified homeowners (houses and apartments owned by anyone and not just the homeowner) then they would have received about a 50% credit.  Businesses and farmers would not have received any credits.  If the council had picked the option of just the homesteads, then only those people who owned their own home and lived in it would have gotten the credit.  They would have received about an 80% credit toward their taxes.  Businesses, farmers, and landlords would not have received any credits.

Please email this site or call Dianne at 956-2103 if you have any questions.