An explanation of Carroll County taxes, part 2
Guest commentary

Editor's Note: The following article was written by the Carroll County Economic Development Corporation (EDC) to help explain the county's tax structure. This is the second of a two-part series.

Local Option Income Tax (LOIT)

There is another relatively new tax that counties can implement called the Local Option Income Tax. The LOIT has multiple parts that can be used to freeze property tax levies, provide property tax relief, and fund county and municipal public safety expenditures.

Not many counties have adopted this tax so far because of the unknowns associated with this new tax. More counties are considering it now, however, with the recently-enacted property tax caps and the caps' future effect on government funding levels. With Carroll County already facing a serious lack of funding, the Carroll County Council's financial consultant, Umbaugh and Associates, has recommended that LOIT be adopted in some form.

This new tax was explained in some detail at a meeting sponsored by Carroll County Focus on the Future last November. Larry DeBoer of Purdue University presented detailed information on how this tax would apply specifically to Carroll County. That complete report is available on his website at http://www.agecon.purdue. edu/crd/localgov/Topics/Materials/ CarrollLOIT_handout 1107.pdf

Economic Development Income Tax (EDIT)

The EDIT tax was made available to Indiana counties in 1987. It was to be used as a funding source for counties and municipalities to help generate economic development. The goal is to create jobs, jobs which are obviously needed in Carroll County. The EDIT tax was described in the March 5 Carroll County Comet article about the Carroll County Economic Development Corporation.

The EDIT rate may be set between .1% and .5%. Carroll County is at the minimum level at a rate lower than all our neighbors. Our 2008 EDIT rate of .1% raised $338,860 for all governmental units. It is proposed that the rate be moved to .25% beginning next year. The County Council will be asked to consider this change on or before the Oct. 31 deadline. Such an increase would cost each resident worker the price of a cup of coffee, or less than $1, a week. It is estimated that the move could generate an additional $470,000 for the county and municipalities to use for projects that would directly or indirectly create jobs and investment.

The County Chamber of Commerce and the EDC have created a plan to help the county move forward. The plan is based upon the recent Strategic Directions study. It targets projects to help generate a better climate for business in Carroll County. These projects would be funded by an EDIT increase. They include finalizing county-wide planning and zoning, securing sites for future development, establishing a coordinated branding and marketing plan for the county, using signs to promote the county and its assets, and much more. These proposals have been shared in County Council and Commissioners meetings.

The County Chamber and EDC is available to answer questions about this plan of action.