County

Increase

In Tax

Distributions

BY TERESA SMITH, Times-Union Staff Writer

The county will receive an 28.13 percent increase in tax distributions over last year according to a press release from the governor's office.

The windfall represents an Indiana Department of Revenue "catching up" process. The organization processed more tax returns in the first half of 2005 than in 2004 (249,00 not processed as of June 30, 2004; down to 33,000 as of June 30, 2005).

Under a new distribution law, counties will receive the actual amount reported by taxpayers during the state's most recently completed fiscal year. In 2004 the county received $12.9 million; $12.4 million in 2005. For 2006, the certified distribution is projected to be $15.8 million, a $3.4 million increase overall.

"We haven't received anything from the state," said Sue Ann Mitchell Wednesday. "We need the breakdown of amounts even further and we need certified figures. The money will affect our operating balance, where it needs help."

It means a million dollars more for the county, added to a budget of $1.7 million for the operating account.

The three taxes permitted under Indiana law are County Option Income Tax, County Adjusted Gross Income Tax and County Economic Development Income Tax.