EDIT Commonly Used For Jail Construction
July 28, 2016 at 4:25 p.m.
If the local political insiders are right, county residents will be facing a new tax line on their payroll check stubs later this year.
Another strong push is being made for the Economic Development Income Tax in the county, the first such effort since a similar plan was defeated in 1995 due to a lack of support by the county council. That support maybe be forthcoming this time because the county is interested in EDIT as a source of funding the jail expansion planned for later this year.
The use of EDIT for jail construction is quite common, according to Tom Morton, deputy director of the Indiana Association of Cities and Towns.
"Jails have been the main impetus in most of the counties that have implemented EDIT," he said. "They want to fund the construction without using a general bond issue backed up by property taxes.
"That's the major advantage of EDIT, it gives counties another option without having to rely on property taxes."
Larry DeBoer, professor of agricultural economics at Purdue University and a consultant for IACT, concurred, saying using EDIT for jail construction would relieve upward pressure on property taxes and, if used in conjunction with Tax Increment Financing to encourage industrial development, can be quite cost-effective.
"It's really a question of what the money is used for and how they use it," DeBoer said.
The Kosciusko County Tax Council, essentially made up of the county council and all town and city councils, must approve the resolution by April 1 for it to take effect Jan. 1, 2000. The resolution calls for the establishment of EDIT at a .4 percent rate beginning in 2000.
So far, Warsaw and Winona Lake have passed EDIT resolutions. North Webster voted no and Milford tabled the issue. Syracuse will take up the question Tuesday and Leesburg will consider it March 22. The county council will consider the measure at its March 4 meeting. [[In-content Ad]]
If the local political insiders are right, county residents will be facing a new tax line on their payroll check stubs later this year.
Another strong push is being made for the Economic Development Income Tax in the county, the first such effort since a similar plan was defeated in 1995 due to a lack of support by the county council. That support maybe be forthcoming this time because the county is interested in EDIT as a source of funding the jail expansion planned for later this year.
The use of EDIT for jail construction is quite common, according to Tom Morton, deputy director of the Indiana Association of Cities and Towns.
"Jails have been the main impetus in most of the counties that have implemented EDIT," he said. "They want to fund the construction without using a general bond issue backed up by property taxes.
"That's the major advantage of EDIT, it gives counties another option without having to rely on property taxes."
Larry DeBoer, professor of agricultural economics at Purdue University and a consultant for IACT, concurred, saying using EDIT for jail construction would relieve upward pressure on property taxes and, if used in conjunction with Tax Increment Financing to encourage industrial development, can be quite cost-effective.
"It's really a question of what the money is used for and how they use it," DeBoer said.
The Kosciusko County Tax Council, essentially made up of the county council and all town and city councils, must approve the resolution by April 1 for it to take effect Jan. 1, 2000. The resolution calls for the establishment of EDIT at a .4 percent rate beginning in 2000.
So far, Warsaw and Winona Lake have passed EDIT resolutions. North Webster voted no and Milford tabled the issue. Syracuse will take up the question Tuesday and Leesburg will consider it March 22. The county council will consider the measure at its March 4 meeting. [[In-content Ad]]