Counties brace for big tax losses next year

Back to TopCommentsE-mailPrintBookmark and Share

Almost all of Indiana’s 92 counties, including Marion and surrounding counties, will see big drops in income tax revenue in 2011 because of the economic downturn.

The State Budget Agency released distribution amounts for local income tax revenue on Friday that show counties collectively will receive almost 16 percent less next year than they did in 2010.

Overall, counties are expected to receive $1.3 billion in income tax revenue in 2011, $255.9 million less than they got this year.

Marion County will collect $250.4 million next year, 16 percent less than it did in 2010. Hamilton County, the second-largest county in central Indiana, will receive $82.3 million, 17 percent less than it did in 2010.

Income tax distributions mostly provide funds for property-tax replacement and relief, the homestead credit and public safety.

Distributions for 2011 are based on income tax returns from 2009, the height of the recession.

David Bottorff, executive director of the Association of Indiana Counties, said he's hopeful economic conditions will improve this year, so income tax distributions will increase in 2012.

“Hopefully, this is the bottom,” he said. “We hope that in [2012] we’ll see slight increases again.”

Among other Indianapolis-area counties, distributions will drop 20 percent for Boone, 13 percent for Shelby, 11 percent for both Johnson and Morgan, 10 percent for Madison, and 8 percent for Hendricks.

Counties in manufacturing-heavy northeast Indiana will see some of the largest drops statewide.

Whitley County, just west of Fort Wayne, is projected to lose nearly $4 million, or 37 percent, of its income tax revenue, The Journal Gazette of Fort Wayne reported, citing data compiled by Allen County Deputy Auditor Tera Klutz.

Neighboring Wells and Kosciusko counties also were forecast to lose more than 25 percent of their income tax revenue, the newspaper reported. Allen County, home to Fort Wayne, and Adams and Huntington counties also were expected to see losses greater than the statewide average of 15.9 percent, it said.


  • foolish to cancell out your own vote
    You forget that our republic is based upon the local form of govt. IT has become too top heavy. Dont give up on your local twp. they are the only ones who will listen to you. Not for one minute will Lugar take your call but your trustee and the twp board will. so go ahead and foolishly give more power to the state or feds.
  • Get Rid of Townships
    Get rid of township gov. & the big drain on our local $$ available.
  • Brace yourself
    Between this shortfall and the property tax refunds slowly working through the system, it will be an interesting reassessment year in 2012!! This can't be a surprise considering the number of people on unemployment....are they paying their personal taxes?
  • County Tax Loss
    The schools need to cut back on property rehab. I have seen a lot of waste go into school building remodels and new buildings. Letting teachers go is not an option. We must cut the high cost of scholl rehab and stop the architects, construction managers & Program Managers from getting fat off of schools.
  • homestead credit
    This could call for the homestead credit from our property taxes to be done away with, The state government is going to get more from us somehow!
  • So where is the money going to come from
    So if the publics income is down and the public refuses to accept a local adjusted income tax, what services are to be cut? I suspect that the public will use this opportunity to take away their own "local" political structure. What i mean by that is we will force our local politicians to cut our local services, all the while it is the federal government that should be taking the blame. What will happen once we cut the local oppotunities to govern ourselves? Those whom we already do not trust (who do not pay taxes; Daschall, Rengal) will make more and more laws, and unfunded regulations that only control you (the public) more. Remember this when you go to the polls do not fall for the streamlining of your local Government, all that means is volunteering your power to the federal government.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. A couple of issues need some clarification especially since my name was on the list. I am not sure how this information was obtained and from where. For me, the amount was incorrect to begin with and the money does not come to me personally. I am guessing that the names listed are the Principal Investigators (individual responsible for the conduct of the trail) for the different pharmaceutical trials and not the entity which receives the checks. In my case, I participate in Phase II and Phase III trials which are required for new drug development. Your article should differentiate the amount of money received for consulting, for speaking fees, and for conduct of a clinical trial for new drug development. The lumping of all of these categories may give the reader a false impression of physicians just trying to get rich. The Sunshine Law may help to differentiate these categories in the future. The public should be aware that the Clinical Trial Industry could be a real economic driver for Indiana since these revenues supports jobs and new job creation. Nationally, this account for 10-20 billion which our State is missing out on to a large degree. Yes, new drug and technology development has gotten most of the attention (e.g. CTSI, BioCrossroads, etc.) However, serious money is being left on the table by not participating in the clinical trials to get those new drugs and medical devices on the market!!!! I guess that this is not sexy enough for academia.

  2. The address given for the Goldfish Swim Club is the Ace Hardware, is it closing?

  3. Out of state management and ownership. If Kite controlled it, everything would be leased. Of course, due to the roundabout, there is limited access to the south side of 116th now also. Just have to go down to the light.

  4. Hey smudge, You're opposed to arresting people for minor crimes? Sounds great! We should only focus on murders and such, right? Let's stand around and wait until someone shoots someone before we act. Whatever we do, we should never question anyone, frisk anyone, or arrest anyone unless they are actively engaged in shooting or stabbing. Very sound!

  5. You guys are being really rude to gays in the comments. (Not all of you, I presume). You need to stop it. Gays have just as much of a right to marry as straight people do. It's not fair how you guys are denying them equal rights. They're acting more human than you'll ever be. We obviously haven't matured since the bible was last updated. Hate the sin, not the sinner. You've all committed a sin at least once in your life. You've lied, you've stolen, etc. (Those are just possibilities). We should have a planet for people that support gay rights and a planet for people that don't. Then, gay people could get married without you bigots interfering with their love life. How would you feel if straights couldn't get married? How would you feel if teenagers were afraid to come out to their parents as straight? If straight people got hate everywhere they went? If straight people were afraid to go out in public, because they feared being judged? It's never going to happen at the rate society is going. You haven't seen the side of me where I act obscene. You're glad my inner demon hasn't been released. I would, but oh no, my comment would be removed because of my very strong emotions about this subject. I love gays, and love how they show their affection for each other. I just ADORE how a state is going to give same-sex couples a marriage license, then changes their mind. (I was obviously being sarcastic there). I just LOVE how society thinks gays are an abomination to our society. You're caring about marriage between two men or two women. That's a small thing. Just grow up, and let them marry. Let them live their lives. You can't make them change their sexuality. You can't make them change their lifestyle. In my opinion, gays are more than welcome to marry. Please, grow up and realize that people should be allowed to marry, even if it's same-sex marriage. You guys are saying that "the bible said gay marriage is wrong." Well, guess what else is wrong? Read Matthew:7 and you'll find out. (I am in no way breaking that. I am saying a fact). I'm stating that gays have just as much of a right to marry as straights do. (: