Local governments in Jackson County are among many in Indiana to receive a share of about $21.6 million in local income tax money the state collected but never distributed.
The Jackson County Auditor’s Office received $192,092.48 from the state last week in special local income tax money and distributed it to the county’s 33 taxing units, according to documents provided by the office.
The county distributed $137,209.48 to the 33 taxing units, which include municipalities, townships, fire protection districts, schools, libraries and Freeman Municipal Airport in Seymour.
The county’s property tax relief fund received $45,736, and the special purpose fund received $9,147.
The property tax relief fund helps ease the rise of property tax increases, and the special purpose fund will go to the Jackson County Jail.
State officials with the Indiana Department of Revenue and State Board of Accounts reported two problems that date back to the late 1990s were at the root of the need for the one-time payment. State officials discovered the problem while updating computer systems.
One issue was caused by a barcode imaging problem where the processing system didn’t recognize the county of residence on some tax returns. The other stemmed from individuals who pay their tax bills late without filing income tax returns, which resulted in processing troubles.
The taxing units received $101,801.95 from the barcode issue and $90,290.53 from the non-filer issue.
Jackson County and Seymour received the bulk of the money, receiving $58,550.98 and $54,678.75, respectively.
The county received $33,951.48 in regular local income tax distribution, $10,886 for economic development, $10,718 for public safety and $2,995.50 for cities and towns. Seymour received $35,611 in regular local income tax distribution, $10,949 in public safety and $8,118.75 in economic development.
Jackson County Councilman Brian Thompson said he hopes the county can use as much of the money as possible to replenish the rainy day fund. He said it has been depleted recently for the new judicial center set to open this fall and other projects and emergencies.
“There’s always something that comes along, and you can’t just keep using out of it without putting some back in,” he said of the rainy day fund.
Thompson said the county always tries to keep a healthy balance in the general fund account but tries to do even more for extra.
“You always have to do more, and it’s really important to have the rainy day fund,” he said.
The rainy day fund has been used to secure properties near the site of the new judicial center and other projects.
“There’s always an emergency involving the HVAC systems that need addressed,” he said. “If you’re prepared for that and an opportunity or emergency comes, then you can capitalize on that.”
Seymour Mayor Craig Luedeman said he would like to see the money used to make improvements in the city.
“I’d like to see it be reinvested in the community as much as possible,” he said. “It will go into the rainy day, and the council will have to reappropriate it out.”
Luedeman said it is good the city and other governments will receive money they should have had before.
“It’s a good thing when we get money like this because it’s money that we have now that we should have received before,” he said. “You don’t budget for it because you don’t count on this each year.”
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Agency;Amount (in order from greatest to least)
Jackson County;$58,550.98
City of Seymour;$54,678.75
County property tax relief fund;$45,736
County special purpose fund;$9,147
Jackson County Public Library;$5,073
Seymour Community School Corp.;$4,327
Town of Brownstown;$3,929.50
Town of Crothersville;$1,489
Brownstown Central Community School Corp.;$1,456
Brownstown Public Library;$1,088
Brownstown Fire Protection District;$669
Crothersville Community School Corp.;$660
Town of Medora;$556.25
Vernon Township Fire Protection District;$548
Jackson-Washington Fire Protection District;$539
Jackson Township Trustee;$537
Medora Community School Corp.;$363
Hamilton Township Fire Protection District;$360
Redding Township Fire Protection District;$335
Owen-Salt Creek Fire Protection District;$269
Carr Township Trustee;$242
Seymour Airport Authority;$206
Pershing Fire District;$202
Brownstown Township Trustee;$167
Grassy Fork Township Volunteer Fire Protection District;$144
Driftwood Township Fire Protection District;$143
Vernon Township Trustee;$122
Hamilton Township Trustee;$93
Redding Township Trustee;$88
Pershing Township Trustee;$82
Owen Township Trustee;$81
Driftwood Township Trustee;$67
Grassy Fork Township Trustee;$61
Washington Township Trustee;$51
Salt Creek Township Trustee;$32
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