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Taxes Go Up by 1.55%
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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. 


User Comments

Comment by GUEST on 2007-08-03 21:03:07
I just moved down here from Lake county and I love it, wish I would have moved here ten years ago. Folks, Lake county's taxes are so screwed up, it's sad. I don't mind paying county taxes here, small price to pay for the peace and quiet. I drive 120 miles per day round trip to work and back. I used to live 5 minutes from work but with all the noise, crime, high taxes, and the town slowly changing for the worse, it's worth the time and money in gas to live in Jasper county.

Comment by GUEST on 2007-07-20 13:31:48
I think this is a shame! On top of outrageous fuel prices, climbing healthcare cost, rising grocery and utilities prices, a Goverment who spends like crazy, Lawmakers who give thierselves raises and now this. It's time for a major change in directions. I think we need to vote in a completely new council!

Comment by GUEST on 2007-07-20 13:32:31
So far, I have heard other counties like Montgomery has only increase their county taxes by .1% . Don't you think this sounds better than 1.5%

Comment by GUEST on 2007-08-03 21:31:53
Welcome to the neighborhood! I love it here as well. If you want to ask any questions about our county, please call me and I will try to help. Dianne 956-2103

Comment by GUEST on 2007-11-11 10:03:57
I have lived here for 6 years and feel that this community has nickled and dimed me to death. I would rather pay one large fee in property taxes (which would be with a city sewer and water system!!!) than "lower" jasper county tax, then income tax, plus add in that the local business raise their prices because they think you dont know what the prices in Merrillville are! Not everyone here is afraid to drive North of the Kankakee River to save some money!

Comment by GUEST on 2008-01-16 09:14:29
I am close to retiring and my thought was to retire in Demotte (I currently live in Lowell). How does the county income tax work for retirees?

Comment by GUEST on 2008-01-16 09:14:39
Property taxes and county income taxes are a dog and pony show. The county increases the income tax to reduce the property tax. Duh!!

Comment by GUEST on 2008-01-16 09:25:38
This can't be. Please tell me this is only a nightmare. More help for the farmers?????????????

Comment by GUEST on 2008-01-16 09:26:02
I have lived Here 14 yrs and know with this tax increase I am Considering selling my house and moving back to lake county I commute to Illinois and with this increase and the cost of Gasoline it would be just as cheap for me to live their. and I wouldn't have to Buy a New Car every 5 yrs. Wheatfield

Comment by GUEST on 2008-01-18 15:36:05
Just a thank you to the jasper county council for raising our county tax rate and the average person not even knowing this until they see more come out of their paycheck. I have lived in Demotte for over 25 yrs. and I am certain that we will not see many improvements in the county with this money. I work in lake county and comparing the additional tax along with property taxes, I am paying more than a friend in Highland. Maybe they can include free garbage service for us now. Jasper county citizens should be fighting mad about this increase!!!!

Comment by GUEST on 2008-01-16 09:26:26
I could make a car payment with the money I am now paying in County Taxes. Hope our county board enjoyed thier time. They won't be here next election!

Comment by GUEST on 2008-01-16 09:49:16
The county income tax will be on all taxable individual indiana income. Social security is never taxed in Indiana so if a retiree only has social security there will be no county tax. But if a retiree has other forms of income, they will pay this tax on those forms of tax.

Comment by GUEST on 2008-01-21 07:06:25
I think it's great... I don't live in Jasper County but given the generous tax cuts on rental properties (paid for by residents) in Jasper County I think it would be a great place to invest in low income apartment buildings. Keep up the good work !!

Comment by GUEST on 2008-01-26 16:10:46
I've lived in Jasper Co. for 3 yrs now (moved from Lake Co.) we loved it at first but realized they don't plow the roads here they just skim them and then there's no salt just sand!! Maybe use some of the money from the increase in taxes to buy some SALT!! We're considering moving back to Lake Co. because of the tax increase, our's went from $804.00 to around $1624.00 whats wrong with this picture??

Comment by GUEST on 2008-02-11 20:49:09
I have lived in demotte for 8 years,moved here for low taxes,I did not mind paying for the gas and 45 mile trip to work.the low taxes offset everything. But now the tax increase. Not to mention all the illegals here. I will be moving back to Lake County this summer.....

Comment by GUEST on 2008-02-15 16:28:46
I just want to say that before everyone gets all upset by these taxes, maybe we should take a step back and look at the big picture. The taxes must be collected for one year before any taxes can be reduced. If the covenor gets his way our property taxes are going to drop substatially. If this happens all of the other counties are going to have to enact these taxes next year and then wait a year, while they have no income. I believe we are just a year ahead of the game.

Comment by GUEST on 2008-03-17 20:06:19
I figure my property taxes were less before the State passed the new property tax relief law changing to income tax, and keeping the County tax at l.5%. I paid a little over $1000 in property tax. Now, I will pay nearly $2,000 a year in property tax and the new County income tax rate of 3.05%. Anyone else in the same boat?

Comment by GUEST on 2008-03-19 14:34:24
The six council members who voted for such a large increase should be voted out next primary.Remember This One and vote ANTI-INCUMBENT !!!!!!!

Comment by GUEST on 2008-04-24 17:53:23
I will burn my house to the ground before I would give it to the tax man !

Comment by GUEST on 2008-09-28 18:21:04
I now regret that I moved to Wheatfield, IN due to unprecedented County Income Tax of 3.02%, the highest in Indiana! We are now considering moving to Chicago because financially it makes little sense to live here. This tax shows very little respect for the citizens of Jasper County who in many cases work outside of the area and travel long distances to work. With the current recession, rising fuel cost and economic uncertainty, the County should do everything in its power to cut taxes and be conservative stewards of our precious tax dollars. If this is not corrected, working citizens will not move into the area, builders will no longer sell new homes and the tax base will dwindle and be relegated to retirees. There needs to be a better solution!



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Check the IRS publication listed below for rules regarding the new Midwestern Disaster Area Tax Credits for students attending certain colleges and universities.

http://www.irs.gov/pub/irs-pdf/p970.pdf

New tax Credits for anyone who bought a home after April 9th, 2008 and before July 1, 2008.  Read the IRS publication for more information.

http://www.irs.gov/pub/irs-pdf/p530.pdf

Mortgage Forgiveness Debt Relief Act may help anyone faced with income due to forclosure on their home in 2008.  Read the IRS brochure for FAQs and where to find more informtion.

http://www.irs.gov/pub/irs-pdf/p4705.pdf

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