Responding to a proposal to increase Monroe County’s local income tax by a quarter point, from 1.345 percent to 1.595 percent, the county council voted unanimously on Tuesday to approve a letter to the Bloomington city council that questions the timing of the move.

The county council’s letter asks Bloomington’s legislative branch “to devote substantially more time to collaborating with the mayor and the full local income tax council membership to most effectively plan and consider this proposed income tax rate increase.”

The city council has scheduled its vote on the proposal for Sept. 16, after an initial city council discussion that is set for Sept. 9. The county council wanted city councilmembers to receive the letter in time for their Sept. 9 deliberations.

The city council is responding to a request by Bloomington mayor John Hamilton to consider increasing the income tax by a quarter point, after proposing a half-point increase on New Year’s Day.

The impact of the COVID-19 pandemic is a reason given by Hamilton for reducing the amount of the increase. Hamilton has also refocussed the intended expenditures for the additional revenue to eliminate additional funding for public transit, among other changes.

The impact of the COVID-19 pandemic is one reason that the county council’s letter gives for not considering a tax increase of any amount at this time: “Monroe County residents are experiencing a global pandemic with no end in sight. The negative impacts of COVID-19 are real and continue to weigh heavily on all residents in recent weeks and months.”

The letter continues, “Some of Monroe County’s largest employers have announced plans for personnel furloughs, and wage cuts due to the ongoing COVID-19 crisis. In addition, many small local businesses have had to make the difficult choice to close permanently, or lay off staff indefinitely, causing a loss of income to a significant number of Monroe County residents and families.”

The letter wraps up the point about the COVID-19 impact by saying, “During such uncertain times, when evidence of stress and depression are all around us, and hitting us too close to home, it would be unwise to add to the stress our residents face by increasing their tax burden without a manifest and widely supported plan for its use.”

A city council vote on Sept. 16 could enact the tax increase on all Monroe County residents, if it achieves either a 9–0 or 8–1 majority. That’s based on the voting weights assigned to individual representative to members of the tax council. Continue reading “Monroe County to Bloomington: “We respectfully write to implore you to postpone any vote on the tax increase.”” →