Pulaski County OKs local option income tax to offset property levies

Sen. Tom Weatherwax announced Thursday that Pulaski County had become the first in the state to adopt the local option income taxes approved by the General Assembly in April.

As a result of the action, he said, Pulaski County taxpayers will see an estimated 20.8 percent drop in their property tax bills next year.

"This is great news for Hoosiers living in Pulaski County," said Weatherwax, a Republican from Logansport. "By passing the LOITs, the county is shifting away from the antiquated system of property taxes with a more modern, fairer tax system based on actual personal income to fund local government. I am honored to recognize the leaders in our community for once again leading our state in tax reform."

The council passed an operational LOIT that will replace the normal growth in property taxes at a rate of 0.3 percent. It also approved an additional 1 percent to be used exclusively to lower property taxes for all taxpayers.

Citizens will see the new income deductions in October, he said. The property tax reductions will come off of property taxes paid in 2008.

Weatherwax has been traveling around his Senate district encouraging county councils to use these new local option taxes to reduce property taxes.

He noted in Thursday's announcement that Pulaski County has also been the first in the state to eliminate the inventory tax in 2002.

"I'd like to congratulate them for looking out for local taxpayers," he said.

In the meantime, local governments across the state were waiting to see whether Gov. Mitch Daniels would order additional counties to redo their property assessments and force officials to temporarily make do with no increased cash from taxpayers.

Daniels this week ordered properties to be reassessed in Marion County, and he could soon direct new assessments in some other counties. New assessments could lower tax bills for homeowners who might have been charged too much because business property was undervalued or because of other problems, such as numerous residential properties being valued incorrectly.