From the Muncie Star Press:
Thanks to a tax distribution error by the state, units of government in Delaware County will receive a collective $2 million refund in tax revenue.
The Delaware County auditor's office said Thursday it had received notice that $1.2 million in county option income tax (COIT) revenue and $939,000 in economic development income tax (EDIT) revenue had been collected by the state but not distributed.
Cash-strapped county government won't benefit from a huge windfall, however: The money will be distributed among many local units of government.
City and county government will get the lion's share -- the county gets 42 percent of local COIT, for example, while the city gets 32 percent -- but some funds will be distributed to other taxing units.
For EDIT revenue, the county gets 59 percent, the city gets 41 percent and the town of Gaston gets less than 1 percent. When EDIT was created 20 years ago, all Delaware County towns except Gaston pooled their EDIT funds with county government.
"It's roughly a month and a half" of regular tax distribution from the state, Deputy Auditor Donna Patterson said of the withheld tax revenue, which is deducted from local paychecks.
Patterson said she had not yet figured the exact amounts to be distributed to local governments and other units.
The interest on the withheld funds amounted to about $3,000, she said, and would be included in the amount deposited in the county's bank accounts as early as Monday.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012204060309
