The last few years have seen a similar refrain – Carmel gets more than its share of local county option income tax (COIT) money, causing Fishers to be short-changed. A bill moving through the Indiana General Assembly could change how decisions are made on distributing those funds.
The state has established the formula for the distribution of local income tax money. This legislation would take that decision away from a state formula to a COIT council.
Huston
“The language in HB 1427 allows local county officials the opportunity to create a distribution formula that is fair and appropriate for Hamilton County,” said State Representative Todd Huston, in a statement to LarryInFishers. “I am confident that our locally elected officials in Hamilton County will come to an appropriate solution that works for our communities.”
The legislation now heads to the Indiana Senate. Huston says the prospects are strong that the Senate will go along with this language, but cautioned that the legislative process can be tricky before a piece of legislation makes it to the governor’s desk for signature.
When formulating the 2018 city budget, Fishers was projected to receive about $600,000 less than originally expected for its share of the COIT. City officials were told in October of 2017 that the state formula favored Carmel because it has more debt than Fishers.
Should this legislation that passed the Indiana House become law, the COIT distribution decision would be made by a council of Hamilton County taxing districts, rather than a state formula.