From the Elkhart Truth:
Indiana Rep. Wes Culver said hope isn’t lost in efforts to address local officials’ concerns that the state shortchanges locales here in their due income tax revenue.
A measure he authored to address the matter, House Bill 1479 , has stalled, the Goshen Republican told a gathering Saturday, Feb. 23, at the Goshen Chamber of Commerce. But the Indiana Department of Revenue may be able to address the issue administratively, without the need for legislation.
Here’s more on H.B. 1479
Many county and city leaders have long complained that because state officials base income tax distributions on income tax returns filed, they don’t get their due amount. Though employers withhold income tax for all workers and send it to Indianapolis, not all employees file returns each April, leading, local officials say, to the shortfall.
Culver noted that starting this year, employers sending withholding taxes to the state identify on standard forms the county from which the revenue comes. Thus, state officials have a way to track the origin of incoming money, theoretically giving them a means to more precisely determine how to re-distribute it.
Still, any fix could take “years,” Culver said, given the lag between the time taxes are actually collected from workers and when they’re distributed back to locales.
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http://www.etruth.com/article/20130223/NEWS01/702239926
