On Wednesday night, Bloomington’s mayor John Hamilton did not get the full 0.855-point local income tax (LIT) increase he had asked Bloomington’s city council to approve.
But the council did approve a 0.69-point increase, which will generate around $14.5 million annually in new revenue for the city of Bloomington. The additional 0.69 points brings the countywide income tax rate to 2.035 percent.
The new rate will take effect on Oct. 1.
Based on the category of income tax used for the increase (economic development) and the method used for distribution (population-based), the additional 0.69 points will also mean additional annual revenue of around $10 million for Monroe County, around $1 million for Ellettsville, and around $40,000 for Stinesville.
Those are the only four units of government that receive a distribution under the economic development category of local income tax.
The original proposal from Hamilton would have generated about $18 million in annual revenue for Bloomington. The intended expenditures fall into four categories: climate change preparedness and mitigation; essential city services; public safety; and quality of life. Continue reading “Bloomington city council enacts 0.69-point tax increase for Monroe County residents on 9–0 vote”