An Economic Development Income Tax that will deduct 0.25 percent from people's net paychecks will take effect in October.
During a meeting Tuesday, Bartholomew County Council members passed the tax by a 5-2 vote in the second of two readings.
Members Keith Sells and Evelyn Pence dissented: Sells because he opposes new taxes in a poor economy, and Pence because she still had questions about whether the tax can be rescinded.
The others said the county must have new funds to operate, given losses in property taxes because of state legislation.
"Sometimes you have to look at the bigger picture," said member Sue Paris, who said she feels sorry for people who already struggle to pay bills.
"I don't want my taxes to go up any more than you do," said member Phyllis Apple, though she added that she still favors EDIT.
The tax will generate an estimated $4.4 million a year, according to Indiana Department of Local Government Finance. The county will get about $1.76 million of that, while Columbus and the county's towns will split the other $2.53 million.
Council members said the state will require that they decide by Sept. 1 how to use the new tax money during the next budget year.
The tax can be used, among other things, for economic development projects, construction and operating costs and road improvements.
Officials have identified using funds for road improvements as a possibility. County Engineer Danny Hollander has said the state of roads countywide will continue to worsen if money is scarce.
Council member Bill Lentz said he would support using some of the money to reduce property taxes if the financial situation improves for local governments and/or if some people's property taxes rise steeply.
Pence said she wants the council to have the right to rescind the tax if it no longer is needed or if it turns out to be a poor fit for Bartholomew County.
County Auditor Barb Hackman said an EDIT cannot be rescinded if the county, city or towns are using it to pay back general obligation bonds.
"Let's be honest," Sells said before the vote. "If this tax passes tonight, it will be here forever."
As with the first reading in June, people for and against EDIT were well represented at the meeting.
Columbus Mayor Fred Armstrong said after the meeting that the tax will help make up shortfalls in Columbus.
Due to budget shortfalls, the city has begun to bill separately for public services that once were funded by property taxes. For example, city officials expect a trash-collection plan to go to the City Council in August.
Corey Carr, director of Columbus Economic Development Board, said EDIT is needed to improve roads, because such infrastructure can help attract new businesses.
On the side opposing EDIT, residents and some business owners said they have tired of new taxes, which aggravate an already desperate situation for some people.
Gary Chambers said the 0.25-percent tax would buy a lot of baby formula for a cash-strapped family.
Brian Jasper said all new taxes must stop, because too many people in this economy struggle to pay basic bills.
"I'm disappointed in the result," said Lisa Deaton after the vote. "What if the economy doesn't improve?"