Increase in local income tax to finance 911 communications

Hamilton County wage earners will find their local income tax increased by 10 percent next year if a proposed countywide tax for operating the 911 communications system is approved. The new tax requires approval of the Local Income Tax Council made up of the county’s eight municipalities and county government, with representation of each roughly equal to population.

The new tax comes essentially in answer to a long-discussed inequity in financing the vital communications operation where 911 calls are answered and dispatched to appropriate police, fire or EMS units. For years the largest cities along with county government have paid most of the costs. The new tax, which would increase local income tax from the present 1 percent to 1.1 percent, will mean income earners will pay their share. About $15 million annually will be raised by this additional tax.

If a majority of the local tax council’s proportional vote is affirmative, the tax will be effective on Jan. 1. Carmel and Fishers can achieve this majority because together they represent more than half the votes needed.

The proposed ordinance originated as a group effort of local government units, according to County Commissioner Christine Altman. The ordinance does not mandate the tax be revenue neutral. In other words, several million dollars now contributed by the county, Noblesville, Carmel, Westfield and Fishers may be used for any other expenses these units incur.

The municipalities and county government must vote for the ordinance by Oct. 1 in order for it to take effect next year. It is unclear when each of these votes will take place, but they should show up on council agendas prior to consideration.