From the Indianapolis Business Journal:
A local sales tax to fund economic development initiatives could help Indiana cities attract more jobs, supporters of the levy say.
Most local economic development organizations rely on private contributions and some government money to support their efforts. But an unstable economy has led to some belt-tightening and soul searching on alternative ways to fund the associations.
Some economic development leaders suggest taking a cue from Texas and allowing cities to enact a local sales tax of up to 1 percent on top of the state sales tax.
“It would just be so critical on that local level,” said Skip Kuker, executive director of the Hancock County Economic Development Council. “It would stabilize budgets so local leaders can do their jobs.”
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The tax, however, likely would be a tough sell in Indiana, whose 7-percent sales tax already is among the highest in the nation. The tax increased a single percentage point in 2008 to compensate for property tax caps.
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The closest Indiana has to a local sales tax is the County Economic Development Income Tax, in effect since the early 1980s. The tax can be levied at rates ranging from 0.25 percent to 0.5 percent and is meant to support local economic development efforts.
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See the full article here:
http://www.ibj.com/local-sales-tax-could-aid-economic-development/PARAMS/article/34711
(this is a paid article)
