Vanderburgh County's local income tax rate is going up. Here's what the bump will pay for.

EVANSVILLE — Vanderburgh County taxpayers will see an increase to their local income tax starting Oct. 1.

The Vanderburgh County Council voted unanimously last week to modify local income tax rates to have a 0.05% rate for correctional and rehab facilities to help pay for the expansion of the Vanderburgh County Jail.

Under Indiana State Code, a county fiscal body can adopt an ordinance to impose a tax rate for correctional facilities and rehabilitation facilities. Certain restrictions do apply

Vanderburgh County Auditor Brian Gerth said the current local income tax rate is 1.2% and will rise to 1.25% with correction facilities tax.

Gerth said someone making $50,000 a year would see an increase of $25 a year, or $.96 every two weeks.

What is this tax paying for?

Additional space for inmates

The tax will help pay for an expansion to the Vanderburgh County jail, including a new mental health unit, that is budgeted to cost around $35 million.

County council shifted this year to a plan submitted by new sheriff Noah Robinson, which reshaped plans previously approved in Dave Wedding's final term.

The original scope of the expansion would have added capacity for about 140 more individuals. Robinson told the county council earlier this year that an adequate expansion would be able to house around 280 more people.

"Something that would allow us to potentially house federal inmates would be around 400," he said in his pitch.

Robinson said an adequate plan would be 280, which would allow us to recall all of the inmates from outside facilities and still be under maximum capacity.

But he knew that would be a tough ask to the county financially.

"So, what I would call the inadequate ask is a 168-bed facility," he said. "It’s not what we need, but what Irecognize Council could potentially be willing to fund. It’s better than nothing."

With the addition of 168 beds, the jail would also be able to properly house juveniles, something it cannot do now. With no designated space for juveniles, they end up held in various places in the jail like medical holding.

Under state law, they cannot be visible to adult inmates.

Mental health unit

Robinson's proposal also includes a mental health unit, something he was clear while campaigning would be a must for his administration.

The unit will be able to handle eight people and will take them out of the jail atmosphere for treatment.

Robinson said it will look more like what a person could find at the State Hospital.

"We have some place to put somebody that actually could undergo mental health treatment, and not in a steel cell," he said. "This area has lots of room for clinicians and office space to service these folks, as well as a day room."

How did the project get here financially?

As General Manager of the Evansville-Vanderburgh County Building Authority Dave Rector explained to the Vanderburgh County Commissioners, there have been multiple steps that led to this final ask to fund a $35 million jail expansion.

• In 2022, the original expansion plan was estimated to cost $19 million. County council approved $13.5 million and the building authority secured a 25-year fixed loan for $13.5 million at 3.6%.

• American Rescue Plan money was also approved - $3 million for a new coroner's office, $1 million for the jail's mental health area and another $500,000 for the overall project.

• Council later approved for the county to get another $5 million tax exempt loan.

Since that time, the new designs from Robinson's administration provided the $35 million estimate. With $23 million already in place, council approved a new $12 million bank-financed loan for 25 years.

When could this project be complete?

If construction starts in the fall as estimated, the expansion could be done in 18 months to two years.

This article originally appeared on Evansville Courier & Press: The Vanderburgh County local income tax is increasing to pay for jail