From the Northwest Indiana Times:
The General Assembly may control how most of the money raised by a Lake County income tax can be spent.
State Sen. Ed Charbonneau, R-Valparaiso, chairman of the House-Senate conference committee for Senate Bill 585, released a proposed compromise version of the legislation Wednesday that would require revenue from a Lake County income tax rate of up to 1.5 percent be distributed in specific ways.
Under the plan, the first quarter percent would go toward property tax relief, followed by a quarter percent each to public safety, the Northwest Indiana Regional Development Authority, county building projects, additional property tax relief and any other economic development purpose.
The spending mandate is cumulative, so if the county adopts a 0.5 percent income tax rate, the money could only be spent on property tax relief and public safety.
The measure does not set a maximum income tax rate, and there would be no state direction on money raised beyond 1.5 percent if the county imposes a higher rate.
Charbonneau said setting specific requirements for how Lake County income tax revenue can be used will ensure items such as county jail improvements, 911 centers and infrastructure are priorities.
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The proposed compromise legislation also would lift the Lake County property tax levy freeze, regardless of whether the county council enacts an income tax. Eliminating the levy freeze would bring in about $4 million in additional annual revenue.
Currently, all local governments in the county can only collect property tax revenue equal to their 2007 totals due to a state law punishing Lake for being the sole Indiana county refusing to impose an income tax.
Charbonneau and Soliday said they are ready to sign off on the proposal and bring it to the full House and Senate for final votes.
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See the full article here:
http://www.nwitimes.com/news/local/govt-and-politics/state-may-direct-how-lake-income-tax-is-spent/article_fde2b315-a5a2-5175-82e8-b46c68f2d4b2.html
