From the Elkhart Truth:
Elkhart County, Elkhart, Goshen and the other cities and towns here will likely see a spike of more than 30 percent in income tax revenue next year, thanks to rising employment and the improving economy.
That hardly means local taxing units’ budget woes of recent years — making do with limited funds — are a thing of the past. While welcome, the likely hikes, at best, will counter dips from other revenue sources, helping keep things on par with 2013, some say.
“Once again, it’s certainly helpful, but it’s not going to put us in a position to begin new projects,” said John Letherman, president of the Elkhart County Council, which oversees county budgeting.
Caps on property taxes — which have adversely impacted the county, cities, schools and other taxing units — have just hit too hard. “Nobody should get the idea ... that we’re going to have anything extra for new projects or new positions,” Letherman said.
Likewise, Goshen Mayor Allan Kauffman said the new income tax funds won’t be a silver bullet in addressing the city’s tight finances given the loss of property tax funds in recent years brought on by tax caps. Property taxes have historically accounted for around half of the city of Goshen’s revenue while income taxes account for perhaps 20 or 25 percent.
“We need property taxes to come back and assessed valuations to rise,” Kauffman said. Property tax revenue levels are based in part on the assessed valuations of homes, businesses and other real estate, hit by the recent recession.
According to figures released earlier this month by the Indiana Department of Revenue, the varied taxing units in Elkhart County will collectively get an estimated $57.2 million in income tax funding next year, up from $43.7 million in 2013 and around $39.9 million in 2011. Adjusted gross income tax revenue, the biggest chunk of the total, will reach $47.3 million, a 30.8 percent jump over $36.2 million in 2013. Economic development income tax funds, meanwhile, are expected to total $9.9 million, a 31.8 percent spike from $7.5 million for 2013.
It’s still not clear how the funds will be divvied among the county, cities, towns, library systems and townships here. State officials have yet to release the breakdown.
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See the full article here:
http://www.elkharttruth.com/article/20130812/NEWS01/708129915
