One of the numbers that nearly all local governments eagerly await each year before setting budgets is the amount of local income tax (LIT) it will be receiving for the ensuing year. While this information arrives in several stages of increasing refinement, the first indicator that counties receive is the estimate of local income taxes for the county as a whole for the budget year by the Indiana State Budget Agency.
Today, Indiana counties received their 2018 Certified Distribution estimates from the State Budget Agency. Here is a table summarizing these estimates and comparing them to the 2017 certified distributions for Monroe County:
These numbers represent very good news for Monroe County residents. The overall increase in local income tax collections for Monroe County is 4.27%, demonstrating robust growth in the income earned by Monroe County residents.
Just as a reminder, Monroe County’s local income tax (LIT) rates are as follows:
- Expenditure – Certified Shares: 0.9482%
- Expenditure – Public Safety: 0.2500%
- Expenditure – Economic Development: 0%
- Property Tax Relief: 0.0518%
- Special Purpose (for Monroe County, this rate is for juvenile services): 0.095%
- Total Income Tax Rate: 1.345%
The amounts shown in the table above will be distributed to various local government units:
- Certified shares will be distributed to all civil taxing units except Solid Waste District, which means the county, cities and towns, townships, the public library, Perry-Clear Creek Fire Protection District, and Bloomington Transit
- Public safety will be distributed first to the Dispatch Center (in a percentage determined by the Monroe County Income Tax Council), then to township fire departments (in an amount determined by the Income Tax Council), and then among the county and the three cities and towns (Bloomington, Ellettsville, and Stinesville).
- Property Tax Relief will be used to offset the property taxes of homestead properties
- Special Purpose goes to juvenile services in Monroe County, which includes youth services (including the Binkley House Youth Shelter), juvenile probation, and juvenile courts
The State Budget Agency will provide updated numbers to Indiana counties before October 1.