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.
|