From the Northwest Indiana Times:
The Lake County Council passed a 1.5 percent income tax Monday night, and county commissioners declined to veto it Friday morning, setting in motion the new tax's gears.
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What kinds of taxes were enacted?
These three: A 1 percent County Adjusted Gross Income Tax; a 0.25 percent Public Safety Income Tax; and a 0.25 percent County Economic Development Income Tax.
The 1 percent part of the tax is earmarked by state law to provide property tax relief to all classes of taxpayers — including homeowners, landlords, farmers, businesses and industries.
The 0.25 percent public safety tax is restricted to salary and benefits for police, firefighters, emergency medical services, operating the county jail including medical care for inmates and the juvenile detention center, and an E-911 communications system.
The 0.25 percent economic development tax can be spent "for any lawful purpose" under state law. County officials have said they intend to earmark that money for improvements in roads, bridges and drainage waterways.
How much money would an income tax generate?
An estimated $135 million annually, to be distributed to the more than 70 county, township, municipal and school districts based on their share of the county's overall property tax levy.
Who pays?
All county residents and out-of-state residents working in Lake County. Lake County residents who have earnings from outside the state must pay the tax regardless of the source of those earnings.
Are there any exemptions from the county tax, especially for the retired on fixed incomes?
Businesses income, Social Security benefits and some pension benefits are exempt from the county tax. All incomes taxed by state also will be taxed by the county.
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See the full article here:
http://www.nwitimes.com/news/local/lake/lake-county-will-start-collecting-local-income-tax-this-fall/article_d0b209e9-fbe2-56f4-a465-4ecdfd7e59f1.html
