(Editor’s Note:  I began writing about this issue on July 15th, and the Reporter has published some of my material as part of our news-gathering partnership, and I am posting Fred Swift’s commentaries under that partnership.  As a reminder, the opinions expressed in Fred’s commentaries are his alone, and do not necessarily reflect the views of LarryInFishers.com)

by

Fred Swift

Hamilton County Reporter

A 10 percent increase in Hamilton County’s local income tax, which so far has been made generally known only by the Reporter, has created a lot of conversation among the limited number of folks who know about it.

The new tax is to become effective January 1 assuming the Carmel and Fishers city councils adopt resolutions favoring it. The tax is designed to cover the costs of the county’s Emergency 911 communications operation.

The tax will raise about $17 million next year and mean that the county’s cities and county government will no longer have to budget for their share of maintaining the communications.

The plan may be quite all right, but it’s hard to understand the quiet advance of this financing plan with almost no discussion in public meetings, and very little news coverage. There will be public notices in the newspaper advertising a public hearing, but very few folks attend public hearings.

There should be no question that keeping our 911 service working at top efficiency is vital. And, the service is working well at present on an annual budget of about $10 million. But, the smaller towns have been paying very little for their service. So, to equalize the burden, the new tax is planned.

It is here that some legitimate public scrutiny is warranted. Why, for example, could county government not take over financing the communications within its budget? It would be fair because everyone pays county taxes.

The county next year will collect $3.3 million more in overall taxes than its budget requires. The county already has surplus and Rainy Day funds of more than $33 million.

In addition, the State of Indiana contributes $3.6 million annually to our 911 communications operation. So, paying the 911 expenses would have little impact on the county’s financial picture.

But, most city and town administrations want the added tax. In the case of the cities, millions of dollars now being paid for 911 will be freed up for other spending, and for the small towns, there will be no contributions needed.

Although few folks have heard of the Local Income Tax Council, it is that council which will vote to impose the tax increase. And, because of their populations, Fishers and Carmel together control more than half the council votes.

It’s a little complicated, but that’s sometimes the way the state and local leadership likes it. So, now you know. Just thought you might like to be aware of what all is behind your tax increase.