County Council to get public input on tax increase

Ken de la Bastide, The Herald Bulletin, Anderson, Ind.
·3 min read

Oct. 11—ANDERSON — The public will get a second opportunity to have an input on the two proposed increases to the Madison County local option income tax.

The Madison County Council voted last month to table a proposal to increase the local option income tax by .5% to a possible rate of 2.25% starting in 2022.

The council meets at 6 p.m. Tuesday in the council chambers of the Madison County Government Center.

Several local residents voiced opposition to the tax increases at the September meeting stating it wasn't the right time.

The council is considering a .2% increase in the income tax that would generate approximately $5.4 million on an annual basis to pay for the construction of a new jail.

It is also proposing a .3% increase in the public safety income tax rate for a dual purpose. One is to cover any shortfalls in the projected annual bond payment and the second is to provide up to $8 million to pay the cost of the criminal justice system.

Every city and town in addition to Madison County will receive some of the projected $8 million in revenues if the tax increase is approved by a majority of the council members.

To date only the Pendleton Town County has approved the .3% increase by a unanimous vote.

Markleville, Elwood and Alexandria have all scheduled votes on the tax increase before the end of October.

It takes 50.01 votes of the Madison County Tax Council with each community receiving a percentage of votes based on population.

If approved, the local taxing units would begin receiving the increased funding in 2022.

Councilman Anthony Emery last month made the motion to table a vote until Oct. 12 to allow for more public input on the proposed tax increase.

"I want to give the public a little more time to respond," he said. "This is a tough decision but taxes are a necessary part of our society to pay for government services."

Andrew Hanna, chief deputy in the prosecutor's office, said the .2% correctional tax rate can be passed anytime before the end of the year and take effect in 2022.

He said the public safety income tax increase has to be passed by Oct. 31 to take effect and requires votes by the city and town councils.

Hanna said local units of government have 30 days to vote once the first adopting ordinance is passed.

Sheriff Scott Mellinger said the current jail was constructed in 1984 and the life span for a jail is 30 years.

"We have been 30% to 50% over capacity since 1992," he said. "This jail was built because of a federal lawsuit. If the federal courts take over the project it will cost the county millions of dollars more."

Mellinger said 35 of the 50 correctional officers have worked for the county for less than a year and that turnover is a problem.

"They leave because of the salary and a failing structure," he said.

"There is never a good time to raise taxes," Mellinger said. "But it's past time to do this project (jail) and to raise revenues to properly fund public safety."

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.