Local option income tax in St. Joe County could go up
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Updated: 11:29 AM Nov 26, 2008
Local option income tax in St. Joe County could go up
Many Hoosiers will be seeing relief on their property tax bills, but income taxes in St. Joseph County could be going up. South Bend Mayor Steve Luecke announced that the common council will consider two resolutions to increase the local option income tax.
Posted: 6:23 PM Nov 25, 2008
Reporter: Sarah Platt
Email Address: sarah.platt@wndu.com
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This year, many homeowners are looking forward to some relief in their property tax bills. But with that in mind, income taxes in St. Joseph County could be going up.

Tuesday afternoon, South Bend Mayor Steve Luecke announced two resolutions that would raise St. Joseph County's Local Option Income Tax.

As with any talk of a tax increase, this will likely raise some discussion. A public hearing is set for December 11 on the issue.

As you may know, recently, local governments are losing a lot of revenue when property tax caps take effect and Luecke says raising income taxes would be one way of making up that shortfall.

But some argue in a tough economy, now is not the time to raise any taxes.

Luecke insists they have already made cuts and need to make up lost revenue somewhere. “We don't take these moves lightly; we know it's a difficult time to talk about taxes in our community. We know many people are struggling. Nevertheless, it's not a time to talk about laying off police officers and firefighters, these are services that are desperately needed in our community,” says Luecke.

Luecke says the South Bend Common Council will consider two resolutions to increase St. Joseph County's Local Option Income Tax.

One resolution asks for a 1-percent income tax hike. It's now at .08-percent.

A second resolution asks for a .25-percent tax to fund public safety.

“At this point we have to look at any and every option we have to keep our revenue stream to a level where we can still provide adequate services to the city and county,” says Rafael Morton, St. Joseph County Council President.

But others say now is not the time for an income tax hike.

“We're struggling, yet the government continues to try and tax us. We're in the same boat they are in that we don't have any more to give,” says Brian Frick, President of the South Gateway Business Association.

Frick owns his own business and knows about making cuts. He thinks there should be no new taxes. He believes the city and county should be more vigilant about getting back to basics.

“I would say police, water, fire, and basic street maintenance and everything else is an extra. And maybe we need to get down to that,” says Frick.

The income tax issue is one citizens and government leaders will weigh in on until a vote next month.

“Realizing how difficult this situation is for the city and how difficult it is for the citizens and weighing those two factors and voting appropriately we hope,” says Ann Puzzello, South Bend Common Council member.

In order to enact this income tax increase, two of the three largest councils would have to approve it. The Mishawaka, South Bend, and St. Joseph County Councils are all expected to vote on this tax increase next month.

If the local option income tax increase is approved this year, it would take effect this January 1.

Again, the public is welcome to share its thoughts at the public hearing on December 11 at the County-City Building in South Bend. The meeting starts at 6 p.m.



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