The Jackson County Council recently wrapped up the process of putting a local option income tax of one-half of 1 percent in place to help fund public safety services and reduce property taxes.
It’s anticipated one-quarter of a percent of that tax, which becomes effective Jan. 1, would create an estimated $1.2 million in revenue for the county and $1.3 million to $1.4 million for the city of Seymour. The county’s three towns, Brownstown, Crothersville and Medora, also would receive revenue from the tax also known as LOIT.
The other quarter percent, generating the same amounts, would be used to reduce property taxes for all owners of real estate.
The 0.005 rate would cost wage earners 5 cents of every $100 they make while on the job, and a person making $50,000 a year would pay about $10 more in state and local income taxes per two-week pay period than they are paying now. That could vary depending upon filing status.
An ordinance implementing the property tax relief part passed on second reading during a county council meeting Wednesday. The council had passed the public safety portion of the tax earlier in the month after a public hearing at the courthouse annex.
Read the full story in Friday’s Tribune and online at tribtown.com.