Excluded Cities Expect Tax Funds This Week


(posted Feb 12)

Some monetary relief might be in sight for Speedway as the  Department of Local Government Finance (DLGF) said Speedway's share of the local option income tax should be distributed to the town by Feb 16.

According to Cindy Land of the Marion County Treasurer's Office, the state sent the funds but they did not say how it was to be distributed to the entities. The treasurer's office is validating the information concerning the public safety portion as to how the DLGF calculated the numbers. The treasurer's office wants to understand the DLGF's method. Land is confident that she can resolve the issue within the next two days in order to send the money electronically to the excluded cities.

The local county option income tax came into existence in October 2007 after the City County Council, at the request of Mayor Bart Peterson, passed the income tax to help fund $90 million for public safety. The tax rate of .65 percent dedicates .45 percent to public safety.

Land explained although people were taxed based on income, the amount distributed to Speedway and the other excluded cities is based on 2006 levies. She said the amounts distributed will need to be adjusted after the 2007 reassessment is completed. She said more than likely the 2007 figures will be bypassed to use the 2008 assessments.

Land said the local entities have always received the county option income tax by the 15th of each month.

As for the distributions of other property tax revenues to the local units, DLGF Director of Communications Mary Jane Michalak said the "State Auditor does not allow advancements on Property Tax Replacement Credits. All money collected thus far has been distributed. This money will be distributed as soon as it is available."