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Public Law Monitor

Municipal Finance

Attorney General Enforces Dual Office Law

A Gary city councilwoman was ordered to reimburse the Gary Sanitary District more than $132,000 in wages for the time she illegally held two municipal positions simultaneously, and the Indiana Attorney General Curtis Hill began efforts to secure the reimbursement.

Gary councilwoman Mary Brown was an employee of Gary Sanitary District from 1995 to January 1, 2016, when, as a matter of law, she was…

More Communities Turning to Local Income Tax

Indiana communities increasingly turn to Local Income Tax (LIT) as a resource to help deal with property tax caps. LIT rates are relatively new and replace previous categories like the County Adjusted Gross Income Tax (“CAGIT”), the County Option Income Tax (“COIT”) and the County Economic Development Income Tax (“EDIT” or “CEDIT”).

Several components make up the LIT rate, including a property tax…

New Economic Improvement District Rules in Indiana

Economic Improvement Districts (“EIDs”) are public-private partnerships in which local property and business owners elect to make a collective contribution to the maintenance, development, and promotion of their property. There are about 430 EIDs nationally, but the trend has only recently caught on in Indiana. Most notably, both Evansville and Fort Wayne adopted EIDs for portions of their…

Indiana Adds New Tax Option to Address County Jail Issues

Many counties across Indiana face inmate overcrowding issues and limited resources to pay for expanded or new jails. With the passage and adoption of Indiana House Enrolled Act 1263, signed by the governor on March 21, 2018, counties across the state will be allowed to increase local income tax (“LIT”) rates to fund or maintain a county jail. Most counties will now be able to raise LIT rates by…

Indiana Property Tax Relief Rates

Under Indiana’s new system of local income taxes (“LIT”), local government tax relief to certain property owners will be handled differently in a new component called the “Property Tax Relief Rate”. The changes are part of HEA 1485-2015, the state legislature’s attempt to simplify and clarify local taxes starting January 1, 2017.  (The new chapter governing this component is Indiana Code…

Indiana Adopts New Local Income Tax Structure

Indiana has adopted legislation repealing existing categories of county income taxes (including the County Adjusted Gross Income Tax (“CAGIT”), the County Option Income Tax (“COIT”) and the County Economic Development Income Tax (“EDIT” or “CEDIT”)) and replacing them with a new, more unified county income tax structure with three rate components of a Local Income Tax.

The existing local taxes are…

 

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