Former Gov. Mitch Daniels' Newsroom


Contact: Jane Jankowski
Phone: 317/232-1622
Email: jjankowski@gov.in.gov
GOV2

For Immediate Release: Sep 6, 2005
County, local income tax distributions projected higher for 2006

INDIANAPOLIS (September 6, 2005) – Governor Mitch Daniels announced today that the 89 counties with one of three allowed county income taxes will receive an average 18.8 percent more money in 2006 than in 2005. 

 

Distributions in 2005 were essentially unchanged over 2004 at approximately $940 million each year.  In the distribution for 2006, announced by the Department of Revenue today, the state will provide more than $1.1 billion, $177 million more than this year. All but two counties will receive more money in 2006.

 

The three taxes permitted under Indiana law are county option income tax (COIT), county adjusted gross income tax (CAGIT), and county economic development income taxes (CEDIT).  All but three Indiana counties (Lake, Posey and Sullivan) have adopted one or more of these income taxes.

 

The Indiana Department of Revenue will communicate specific county information to counties throughout the state beginning today. Most counties are in the process now of adopting budgets for the coming year.

 

“This will come as unexpected good news to most counties around the state. These amounts should relieve pressure on property taxes in many parts of the state,” said Daniels.  “Our revenue team led by John Eckart has dramatically increased the efficiency of return processing, which contributed to the increase.”

 

Charles Schalliol, director of the Office of Management and Budget, said that $31 million  of the statewide increase is the result of nine counties adopting increases in local income taxes (primarily CEDIT).  Schalliol said the primary reasons for growth in the distribution were:

 

  • Individual income tax returns reported 7.5 percent higher income on average than in 2004.
  • The Department of Revenue processed many more tax returns in the first half of the year in 2005 than in 2004 (249,000 not processed as of June 30, 2004; down to 33,000 as of June 30, 2005).  Under the new distribution law, counties receive the actual amount reported by taxpayers during the state’s most recently completed fiscal year, so the amount of county tax distributed is dependent on the number of returns processed before June 30.
  • Most counties are “paid up” from several years of playing catch up with the state. Until changed by the General Assembly in 2003, there was a two-year lag between estimating the distribution and reconciling that amount with actual tax collections.  Under the former system, the state would estimate future local tax receipts.   If that amount didn’t materialize, as is the case when recessions hit, the state ended up overpaid.  That overpayment amount was “caught up” over several years with smaller distributions.

 

The county-by-county distributions are below.

-30-

 

 

Local Income Tax Distributions

 

 

 

 

CY 2004

CY 2005

Total

$ Chg.

% Chg.

 

 

Certified

Certified

CY 2006

From

From

County

 

Dist.

Dist.

Cert. Dist.

CY 2005

CY 2005

Total All Counties

 

940,299,989

940,670,648

1,117,487,329

176,816,681

18.80%

Adams Total

 

5,200,214

5,059,532

5,906,873

847,341

16.75%

Allen Total

 

61,522,500

58,595,464

69,652,029

11,056,565

18.87%

Bartholomew Total

 

13,503,190

12,831,110

15,928,683

3,097,573

24.14%

Benton Total

 

1,573,398

1,527,201

2,098,392

571,191

37.40%

Blackford Total

 

2,229,423

2,308,789

2,501,085

192,296

8.33%

Boone Total

 

12,978,635

12,470,296

16,586,627

4,116,331

33.01%

Brown Total

 

3,133,833

2,964,420

3,448,374

483,953

16.33%

Carroll Total

 

3,293,060

3,184,724

3,583,189

398,464

12.51%

Cass  Total

 

8,220,039

8,076,644

8,849,817

773,173

9.57%

Clark Total

 

18,314,964

23,294,601

24,961,931

1,667,331

7.16%

Clay Total

 

4,355,555

4,342,861

4,626,436

283,575

6.53%

Clinton Total

 

5,859,125

6,756,513

7,657,756

901,243

13.34%

Crawford Total

 

1,154,719

1,178,102

1,298,252

120,150

10.20%

Daviess Total

*

4,613,195

5,876,793

7,145,986

1,269,193

21.60%

Dearborn Total

 

5,122,170

5,035,123

5,747,003

711,880

14.14%

Decatur Total

 

4,648,427

4,711,516

5,451,745

740,229

15.71%

Dekalb Total

 

8,055,303

9,633,352

10,700,606

1,067,254

11.08%

Delaware Total

 

13,469,116

17,171,597

18,847,310

1,675,714

9.76%

Dubois Total

 

7,399,270

8,101,158

8,712,208

611,050

7.54%

Elkhart Total

 

44,995,793

43,034,249

53,755,619

10,721,370

24.91%

Fayette Total

 

4,732,725

4,559,687

4,761,328

201,641

4.42%

Floyd Total

 

17,088,782

17,088,782

17,323,525

234,743

1.37%

Fountain Total

 

2,387,745

2,522,593

2,972,640

450,047

17.84%

Franklin Total

 

4,249,429

4,127,630

5,299,361

1,171,732

28.39%

Fulton Total

 

4,018,156

3,879,706

4,371,685

491,979

12.68%

Gibson Total

 

2,657,515

2,754,388

3,122,249

367,861

13.36%

Grant  Total

 

12,297,050

11,801,447

11,758,615

-42,832

-0.36%

Greene Total

 

3,967,503

4,021,998

4,535,427

513,429

12.77%

Hamilton Total

 

66,021,319

62,711,452

81,501,969

18,790,517

29.96%

Hancock Total

 

14,260,362

14,214,578

16,314,521

2,099,943

14.77%

Harrison Total

 

5,803,816

5,505,309

6,550,173

1,044,864

18.98%

Hendricks Total

 

30,920,807

33,071,091

38,589,653

5,518,561

16.69%

Henry Total

 

7,347,961

7,187,070

7,706,564

519,495

7.23%

Howard Total

 

14,068,316

13,568,809

14,760,495

1,191,686

8.78%

Huntington Total

 

7,154,878

6,799,966

7,658,848

858,882

12.63%

Jackson Total

*

8,161,743

7,752,000

10,648,985

2,896,985

37.37%

Jasper Total

*

4,566,451

4,631,877

6,810,135

2,178,258

47.03%

Jay Total

*

3,161,439

3,127,926

4,187,178

1,059,252

33.86%

Jefferson Total

 

0

1,715,811

1,648,422

-67,389

-3.93%

Jennings Total

 

4,363,435

4,252,005

4,806,142

554,138

13.03%

Johnson Total

 

24,503,629

24,276,010

27,721,107

3,445,097

14.19%

Knox Total

*

2,438,236

3,465,345

5,341,776

1,876,431

54.15%

Kosciusko Total

 

12,909,274

12,403,164

15,891,910

3,488,746

28.13%

LaGrange Total

 

5,536,656

6,017,797

7,731,935

1,714,138

28.48%

La Porte Total

 

16,646,337

15,618,520

17,454,777

1,836,257

11.76%

Lawrence Total

 

6,291,334

5,976,810

6,785,930

809,120

13.54%

Madison Total

 

19,970,018

24,041,510

25,661,129

1,619,619

6.74%

Marion Total

*

110,607,088

104,750,918

137,952,457

33,201,539

31.70%

Marshall Total

 

6,689,074

8,265,851

9,304,992

1,039,140

12.57%

Martin Total

 

1,376,901

1,385,000

1,548,500

163,499

11.80%

Miami Total

 

5,155,855

5,007,817

5,295,840

288,023

5.75%

Monroe Total

 

18,630,936

18,326,273

21,343,437

3,017,164

16.46%

Montgomery Total

 

5,345,837

5,080,243

6,153,119

1,072,877

21.12%

Morgan Total

 

12,294,459

14,414,984

15,750,705

1,335,721

9.27%

Newton Total

 

1,977,522

2,041,666

2,271,811

230,145

11.27%

Noble Total

 

8,269,902

9,433,468

10,105,290

671,822

7.12%

Ohio Total

 

855,529

903,926

952,687

48,761

5.39%

Orange Total

 

2,831,470

2,703,258

3,185,291

482,033

17.83%

Owen Total

*

3,361,889

3,359,216

3,708,596

349,380

10.40%

Parke Total

 

2,497,327

2,877,692

3,270,805

393,113

13.66%

Perry Total

 

2,452,664

2,330,118

2,724,896

394,778

16.94%

Pike Total

 

725,745

734,421

803,057

68,635

9.35%

Porter Total

*

7,268,348

7,268,348

16,882,107

9,613,759

132.27%

Pulaski Total

 

3,109,211

2,982,116

3,682,493

700,376

23.49%

Putnam Total

 

6,174,177

6,118,569

6,599,186

480,617

7.86%

Randolph Total

 

4,731,779

5,061,500

5,516,573

455,074

8.99%

Ripley Total

 

5,681,993

5,824,903

6,418,838

593,936

10.20%

Rush Total

 

2,844,919

2,830,423

2,905,874

75,451

2.67%

St. Joseph Total

 

35,643,301

35,468,467

41,654,782

6,186,316

17.44%

Scott Total

 

3,504,765

3,341,405

3,671,460

330,055

9.88%

Shelby Total

 

8,658,120

8,224,934

9,477,588

1,252,654

15.23%

Spencer Total

 

2,507,086

2,554,622

2,779,761

225,139

8.81%

Starke Total

 

2,614,127

2,483,516

2,939,546

456,030

18.36%

Steuben Total

 

6,513,032

6,637,149

6,921,991

284,841

4.29%

Switzerland Total

 

1,139,992

1,136,586

1,274,719

138,133

12.15%

Tippecanoe Total

 

24,280,566

22,664,420

25,937,618

3,273,198

14.44%

Tipton Total

 

3,550,472

3,610,145

4,152,484

542,339

15.02%

Union Total

 

1,468,338

1,390,064

1,659,421

269,357

19.38%

Vanderburgh Total

 

31,205,744

29,467,540

34,211,339

4,743,800

16.10%

Vermillion Total

 

284,139

259,112

277,741

18,629

7.19%

Vigo Total

 

18,407,732

18,407,732

19,422,891

1,015,159

5.51%

Wabash Total

 

7,529,200

7,249,185

8,170,430

921,244

12.71%

Warren Total

 

1,545,059

1,509,399

1,752,252

242,853

16.09%

Warrick Total

 

5,747,900

5,663,549

6,386,739

723,189

12.77%

Washington Total

 

5,126,037

5,005,990

6,202,865

1,196,875

23.91%

Wayne Total

 

15,728,454

14,523,692

16,266,548

1,742,856

12.00%

Wells Total

 

6,288,913

6,059,451

6,658,263

598,812

9.88%

White Total

 

4,464,236

4,294,254

4,877,175

582,921

13.57%

Whitley Total

*

6,043,306

5,771,397

7,038,761

1,267,364

21.96%

 

* County adopted a new tax or an increase in an existing tax which is reflected in the CY06 distribution.