In a previous posting (Local Income Taxes), I discussed the County Option Income Tax (COIT), the only form of local income tax used in Monroe County, Indiana. In this follow-up, I wanted to show how much money is actually distributed to the various taxing units that receive income tax in Monroe County.
The County Option Income Tax is collected from individual taxpayers (not corporations) who live in Monroe County. Monroe County does not receive any income tax from individuals who do not live in Monroe County, regardless of where they work (this is also a topic for another post).
Timing of Collections
The timing of collections and payouts is a big complicated: taxes are collected on the State of Indiana’s fiscal year (July 1 through June 30), but are paid out to the County monthly throughout the County’s following fiscal year (January 1 through December 31). For example, the taxes collected by the state from Monroe County taxpayers from July 1, 2010 – June 30, 2011 are paid out to Monroe County in 12 approximately equal monthly payments from January 1, 2012 – December 31, 2012.
Distribution of Revenues
The incomes taxes collected are then distributed among the various taxing units in Monroe County, according to a formula that is roughly proportional to the property tax levy of the taxing unit. The following chart shows the amount of taxes distributed to each of the taxing units, for 2011 and 2012. As the chart shows, the county as a whole saw a 3.2% reduction in income taxes from 2011-2012, which represents a reduction in taxes collected from 7/1/2010-6/30/2011 as opposed to 7/1/2009-6/30/2010. Accordingly, most taxing units will also see a reduction in their distributions from 2011-2012 (the exceptions being Bean Blossom Township and the Town of Ellettsville). Note that the increases in Bean Blossom Township and the Town of Ellettsville do not necessarily represent increases in the incomes of taxpayers within their boundaries; it simply means that their share of the total income taxes collected in Monroe County increased from 2011 to 2012, because of increases in property taxes in the taxing districts served by Bean Blossom and Ellettsville.
|Taxing Unit||2011 COIT Revenues||2012 COIT Revenues||2011-2012 % Change|
|BEAN BLOSSOM TOWNSHIP||$24,923.00||$28,241.00||13.3%|
|CLEAR CREEK TOWNSHIP||$49,149.00||$47,655.00||-3.0%|
|INDIAN CREEK TOWNSHIP||$18,785.00||$17,781.00||-5.3%|
|SALT CREEK TOWNSHIP||$15,931.00||$15,560.00||-2.3%|
|VAN BUREN TOWNSHIP||$339,742.00||$312,201.00||-8.1%|
|BLOOMINGTON CIVIL CITY||$7,422,322.00||$7,275,430.00||-2.0%|
|ELLETTSVILLE CIVIL TOWN||$392,005.00||$394,332.00||0.6%|
|STINESVILLE CIVIL TOWN||$2,232.00||$2,154.00||-3.5%|
|MONROE COUNTY PUBLIC LIBRARY||$2,087,229.00||$1,979,229.00||-5.2%|
|PERRY-CLEAR CREEK FIRE PROTECTION||$393,275.00||$374,611.00||-4.7%|
Total Income Tax Distributed 2008-2012
The following chart shows the overall income tax revenues distributed to local taxing units in Monroe County, from 2008-2012. As the chart shows, we were seeing steady increases up until 2011, which saw a very steep dropoff.
|Year||Income Tax Distributed to Taxing Units||% Change|