A LETTER TO THE CITY-COUNTY OBSERVER CONCERNING A PUBLIC SAFETY INCOME TAX INCREASE IN WARRICK COUNTY
(NAME OF AUTHOR OF THIS LETTER WAS WITHHELD BY REQUEST)
There is a competition for new housing starts and high income residents between Warrick County and the surrounding Counties.
For those making higher incomes a prime attraction of Warrick County has always been lower income tax rates. For those owing money on businesses, income tax is collected on principle payments made to the bank and can even exceed free cash flow forcing business owners to take out loans in order to pay income tax. For employees with high income such as doctors and executives income tax is seen as a detriment their retirement savings.
The clear message of income tax to high earning individuals is that they maybe should look elsewhere to build new home or buy an existing home.
By raising income tax rates Warrick County could be pushing some high dollar new homes over to other counties. This will cost Warrick County income tax and property tax.
Also consider the use of the money. Families are more concerned with education than fire and police in general, at least until they need them.
Keep in mind that I’m not agreeing or disagreeing. I’m just reminding that taxes are seen as a penalty and when the penalty outweighs the benefit people go elsewhere.
FOOTNOTE
Attached below is the Warrick County Chamber of Commerce Resolution in Support of Warrick County Public Safety Local Income Tax
Whereas, Warrick County is growing in population and new households requiring more services from police, fire, safety, and emergency services;
And
Whereas, increased population and property tax assessments do not result in increased property tax revenues to Warrick County and the municipalities located within Warrick County despite increasing demand for public safety services;
And
Whereas, property tax revenues received by Warrick County and its municipalities have also been negatively impacted by the property tax caps that were added to the Indiana Constitution in 2010;
And
Whereas, a Public Safety Local Income Tax, if implemented, could only be used to provide police enforcement, firefighting, fire prevention salaries, personal protection equipment, vehicle and related public safety activities, emergency ambulances, emergency medical services, environmental clean-up, public safety dispatch, enhanced 911 service, public safety pension and construction of a future County jail;
And
Whereas, Warrick County has the second-lowest local income tax rate in the State of Indiana at one-half of one percent;
And
Whereas Warrick County’s municipalities, including Boonville, Newburgh, Chandler, Elberfeld, and Lynnville, are asking the Warrick County Council to implement of a Public Safety Local Income Tax of one half of one percent to provide much-needed revenue;
And
Whereas, even with the implementation of a new Public Safety Income Tax of one-half of one percent, Warrick County’s total local income tax rate will still be among the very lowest rates in the State of Indiana;
And
Whereas, the Warrick County Chamber of Commerce believes that providing the revenue needed for Warrick County and Warrick County municipalities to provide for needed public safety services is of critical importance to the future of Warrick County and its citizens, businesses, and visitors.
Now, therefore be it resolved that the Warrick County Chamber of Commerce at their August 20, 2019 board of director meeting voted unanimously to support the implementation of a one half of one percent Public Safety Local Income Tax and hereby request that the Warrick County Council take steps to adopt and implement such a tax.
