by

Fred Swift

Hamilton County Reporter

Is a new public safety local income tax in our future? It is not certain, but there is talk among political leaders that such a tax might be the answer to funding the very important and expensive 911 communications operation.

Most folks probably don’t pay a great deal of attention to how 911 is funded. Currently the countywide operation, housed at the county sheriff’s department, costs about $9.2 million per year, according to county auditor’s records. About $3.6 million of that comes from a user tax levied on telephone subscribers. The other $5.6 million is paid by the cities of Noblesville, Carmel, Westfield, Fishers and county government.

County officials have been seeking to have the other smaller communities in Adams, Jackson, White River and Wayne townships pay their shares of the expense. For budget year 2019 there has been no agreement reached. For next year only, county commissioners are asking only a token amount of 10 percent of a smaller units’ obligation in 2019.

But, for the following year something new is expected to be implemented. And, the speculation centers around an increase in the countywide Local Income Tax. State law allows one quarter of one percent of individual income to be levied for public safety purposes.

In Hamilton County that would raise about $35 million. That figure is far in excess of the current 911 annual costs, so officials could be expected to reduce the $35 million potential collection to current and then subsequent inevitably rising needs of the 911 communications operation.

All those figures may sound confusing, but we can assume local officials and their advisers will calculate needs and wants in the coming year if the political climate appears to allow proceeding.

At present the Local Income Tax of one percent on individual income is the saving grace for local government, bringing in more than $140 million countywide for the participating units of government. Because average county incomes are high, the income tax now exceeds the property tax in public revenue.

One might think that within all that money, the $5.6 million needed for 911 could somehow be found. We will have to wait and see, but it is a matter that bears watching because it seems all taxes start out small.