In a news release issued Wednesday afternoon ahead of the city council’s evening meeting, Bloomington mayor John Hamilton put a specific number on the local income tax (LIT) rate increase he has been talking about for the last several weeks.
What Hamilton is proposing is an increase from 1.345 percent to 2.200 percent. That’s 0.855 points, or about a 64-percent increase to the current rate.
Based on the current public safety local income tax rate, which is 0.25 percent, and the state’s certified local income tax distributions for 2022, just a quarter-point LIT increase would generate a total of $9,025,682 a year countywide.
For a full point increase, that translates into $36.1 million in revenue countywide. That figure, multiplied by Hamilton’s proposed 0.855 increase, means about $30.87 million.
Based on the proportional population distribution method proposed by Hamilton, Bloomington’s share would be about $17.5 million. Monroe County government’s share would be about $11.9 million, with the remainder going to Ellettsville and Stinesville.