County Passes EDIT Resolution

July 28, 2016 at 4:25 p.m.

By DAVID SLONE, Times-Union Staff Writer-

By a vote of 6 to 0, the Kosciusko County Council approved a resolution enacting the Economic Development Income Tax at 0.3 percent and raising the County Option Income Tax from 0.6 to 0.7 percent.

EDIT will be distributed on a population basis, according to the council's resolution. EDIT may be distributed to members of the County Income Tax Council, which includes the county council and each city or town in the county, according to the population of the municipality or according to its assessed property valuation.

Councilman Lewis Bertsch was not present at the meeting Thursday.

According to county auditor Sue Ann Mitchell, "The next step is to send it as a certified copy along with copies of the legal advertisement to the Indiana Department of Revenue, and it's a done deal."

The county towns and cities will receive notice of the county council's decision but will not have to act, she said. The county council has 62 of the 100 income tax council votes needed to pass EDIT. The county will begin collecting the tax in July.

EDIT is a tax based on income and can be used only for capital improvement projects, infrastructure and more permanent structures. COIT can be used for anything regular taxes can be used for. EDIT and COIT together cannot equal more than 1 percent.

Social Security income is not affected by EDIT as it is taken out on the Indiana tax forms before individual taxes are figured.

At the Thursday council meeting, fewer than 30 people attended and only three spoke in opposition to the tax. The council also received one letter of remonstration.

Before discussion on EDIT was opened to the public, council president Brad Tandy had Mitchell read the resolution. He then reminded the crowd that the council has discussed and voted on EDIT at least six times in the last six years.

"None of the people have changed and we are aware of the advantages and disadvantages of EDIT," Tandy said.

He then read a couple of lines from each of the letters the council received.

Warsaw Community Development Corp. wrote that they are in support of the tax so that costs for the Justice Building expansion project will be spread more equally and property taxes won't be increased.

Warsaw Chamber of Commerce also sent the council a letter in support of EDIT.

Syracuse resident and businessman William Haldewang wrote that he recognizes the county needs funds but those funds should be addressed by increasing property taxes.

"I have difficulty rationalizing a tax on my employees' earnings so that I may directly benefit either by lowered property taxes or perhaps a sewer hookup to my house," he wrote.

Though Syracuse would like to see EDIT distributed according to assessed valuation rather than population, Syracuse Town Manager Brian Redshaw said distribution by population was acceptable. Redshaw spoke on behalf of the Syracuse town council. He said Syracuse will use the money for improvements to the industrial park and infrastructure.

Tim Yeager, president of Syracuse-Wawasee Area Development Corp., gave the council a letter from SWADCO supporting EDIT. SWADCO is a nonprofit company allied with the Syracuse-Wawasee Chamber of Commerce seeking to develop industrial property to help industry already in Syracuse to expand.

Beginning his comments by reading the preamble to the Indiana Constitution, Dennis Hirsch said he was against EDIT because, "pretty much, if this tax is passed, we'll be serving you." Public officials, he said, should serve the public.

He said, "I'm against it. I've pretty much been against it since the beginning."

Warsaw resident Rick Patton is also against EDIT. He said it "hampers people's ability to save money and put money back into the community." He said it is not fair to people who are trying to live paycheck to paycheck and suggested the council find other ways to address the county's financial needs.

The last remonstrator to speak was Herschel Rainwater, who said, "I'm totally against the EDIT tax and I have been for the past six years."

He said he understands there are mandates from the state requiring the county to expand the jail, but, "it's not the money. It's not the tax. It's the principle of it."

After public discussion was closed, the county council held their discussion.

Councilman Harold Jones said the people opposed to EDIT are opposed because the federal and state governments are enacting too many taxes already. However, he said, that's the reason the county needs EDIT. The federal and state governments have stopped sending money back to the county, "yet the federal and state are a problem but they are creating a problem for this (county)."

Tandy agreed with Jones. "We are at the bottom of the food chain. It's the federal, state and then us," he said.

Still working after 50 years, councilman John Kinsey said he understands the working man's concerns. However, the county continues to face mounting expenses.

"I can't see we're doing our grandchildren a favor," he said, "by sticking it on property taxes."

He made the motion to adopt the resolution.

While, he said, he's been against EDIT for six years, Councilman Tom Anglin said the county needs to move on. He seconded Kinsey's motion.

Members of the county council include Tom Anglin, Lewis Bertsch, Brad Tandy, Kathryn Teel, Jim Tranter, Harold Jones and John Kinsey. [[In-content Ad]]

By a vote of 6 to 0, the Kosciusko County Council approved a resolution enacting the Economic Development Income Tax at 0.3 percent and raising the County Option Income Tax from 0.6 to 0.7 percent.

EDIT will be distributed on a population basis, according to the council's resolution. EDIT may be distributed to members of the County Income Tax Council, which includes the county council and each city or town in the county, according to the population of the municipality or according to its assessed property valuation.

Councilman Lewis Bertsch was not present at the meeting Thursday.

According to county auditor Sue Ann Mitchell, "The next step is to send it as a certified copy along with copies of the legal advertisement to the Indiana Department of Revenue, and it's a done deal."

The county towns and cities will receive notice of the county council's decision but will not have to act, she said. The county council has 62 of the 100 income tax council votes needed to pass EDIT. The county will begin collecting the tax in July.

EDIT is a tax based on income and can be used only for capital improvement projects, infrastructure and more permanent structures. COIT can be used for anything regular taxes can be used for. EDIT and COIT together cannot equal more than 1 percent.

Social Security income is not affected by EDIT as it is taken out on the Indiana tax forms before individual taxes are figured.

At the Thursday council meeting, fewer than 30 people attended and only three spoke in opposition to the tax. The council also received one letter of remonstration.

Before discussion on EDIT was opened to the public, council president Brad Tandy had Mitchell read the resolution. He then reminded the crowd that the council has discussed and voted on EDIT at least six times in the last six years.

"None of the people have changed and we are aware of the advantages and disadvantages of EDIT," Tandy said.

He then read a couple of lines from each of the letters the council received.

Warsaw Community Development Corp. wrote that they are in support of the tax so that costs for the Justice Building expansion project will be spread more equally and property taxes won't be increased.

Warsaw Chamber of Commerce also sent the council a letter in support of EDIT.

Syracuse resident and businessman William Haldewang wrote that he recognizes the county needs funds but those funds should be addressed by increasing property taxes.

"I have difficulty rationalizing a tax on my employees' earnings so that I may directly benefit either by lowered property taxes or perhaps a sewer hookup to my house," he wrote.

Though Syracuse would like to see EDIT distributed according to assessed valuation rather than population, Syracuse Town Manager Brian Redshaw said distribution by population was acceptable. Redshaw spoke on behalf of the Syracuse town council. He said Syracuse will use the money for improvements to the industrial park and infrastructure.

Tim Yeager, president of Syracuse-Wawasee Area Development Corp., gave the council a letter from SWADCO supporting EDIT. SWADCO is a nonprofit company allied with the Syracuse-Wawasee Chamber of Commerce seeking to develop industrial property to help industry already in Syracuse to expand.

Beginning his comments by reading the preamble to the Indiana Constitution, Dennis Hirsch said he was against EDIT because, "pretty much, if this tax is passed, we'll be serving you." Public officials, he said, should serve the public.

He said, "I'm against it. I've pretty much been against it since the beginning."

Warsaw resident Rick Patton is also against EDIT. He said it "hampers people's ability to save money and put money back into the community." He said it is not fair to people who are trying to live paycheck to paycheck and suggested the council find other ways to address the county's financial needs.

The last remonstrator to speak was Herschel Rainwater, who said, "I'm totally against the EDIT tax and I have been for the past six years."

He said he understands there are mandates from the state requiring the county to expand the jail, but, "it's not the money. It's not the tax. It's the principle of it."

After public discussion was closed, the county council held their discussion.

Councilman Harold Jones said the people opposed to EDIT are opposed because the federal and state governments are enacting too many taxes already. However, he said, that's the reason the county needs EDIT. The federal and state governments have stopped sending money back to the county, "yet the federal and state are a problem but they are creating a problem for this (county)."

Tandy agreed with Jones. "We are at the bottom of the food chain. It's the federal, state and then us," he said.

Still working after 50 years, councilman John Kinsey said he understands the working man's concerns. However, the county continues to face mounting expenses.

"I can't see we're doing our grandchildren a favor," he said, "by sticking it on property taxes."

He made the motion to adopt the resolution.

While, he said, he's been against EDIT for six years, Councilman Tom Anglin said the county needs to move on. He seconded Kinsey's motion.

Members of the county council include Tom Anglin, Lewis Bertsch, Brad Tandy, Kathryn Teel, Jim Tranter, Harold Jones and John Kinsey. [[In-content Ad]]

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