What happened
The Lake County Council on Tuesday voted 5-1 to adopt a 1 percent personal income tax. The Lake County Board of Commissioners meets today and is expected to veto the tax, but if all five council members who support the tax vote to override a veto Dec. 27, the tax will be imposed on all county residents, employees and some business investors.
CROWN POINT | The Lake County Council adopted a 1 percent personal income tax Tuesday by a seemingly veto-proof 5-1 margin.
County Councilman Ted Bilski, D-Hobart, dropped his opposition to the tax and joined four colleagues in a vote that ignited acrimonious debate after the meeting among tax opponents and political leaders whose communities will line up for a share of the $78 million to be generated in the first year.
The Lake County Board of Commissioners meet today and are expected to veto the tax, but if all five council members who support the tax vote to override a veto Dec. 27, the tax will be imposed on all county residents, employees and some business investors.
The five council members amended the tax ordinance Tuesday requiring that all $78 million be redistributed as property tax reductions for homeowners only.
Owners of second homes, landlords and businesses would left out of the property tax reductions, but local leaders, including Gary Mayor Rudy Clay, said they will ask legislators to amend state law next year to improve the distribution formula.
"We will ask our legislators to be fair to everyone," Clay said as he left the meeting.
Councilwoman Christine Cid insisted individual income taxpayers will get their fair share of property tax relief.
A fiscal consultant for the council previously predicted some communities will receive less in property tax reductions than their residents pay out as income tax including: Gary, Merrillville, Lake Station and Hobart.
"This is not a victory for anyone," Bilski after the meeting. "I had to make the decision that hurts the least.
"State legislators said they wanted a show of good faith. Now we've done that I expect us to be a part of negotiations with downstate legislators for property tax relief," Bilski said.
Councilman Larry Blanchard, R-Crown Point, the only council member to vote against the tax said, "This is a dark day for Lake County. Do you think the state Legislature is going to do us any favors?"
Councilman Tom O'Donnell, D-Dyer, was absent for the vote. He showed up after the meeting ended, saying he wanted to vote against the tax, but was surprised the meeting start immediately at 4 p.m. as advertised.
Lake becomes the last county in the state to pass an income tax.
State officials insisted an income tax must be part of a solution to the reform of the state's unpopular property tax raises and passed a law that would have denied county, township and municipal government $15 million in property tax revenues if no tax had been enacted.
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