Bloomington city council will hold a special session next week to discuss a potential 0.25% increase in the local income tax.
The tax hike is part of Mayor John Hamilton’s “Recover Forward” initiative to give the city financial support as the coronavirus pandemic continues.
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The mayor said the funds generated from this tax will help fight issues concerning the local economy as well as issues surrounding social justice and climate change.
“There is a real risk that we cannot raise revenue in the future after this fall," Hamilton said. "So, it is very important to determine our own future now.”
The county-wide Local Income Tax Council would have to approve the tax increase. The Bloomington City Council has a 58 percent vote share on the Council. The Monroe County Council gets a 37 percent vote share. Numbers of votes are based on where residents in the county are concentrated. About half of the proposed increase goes to county government.
Hamilton said the state’s procedures require the city to take action on the local income tax by Sept. 16.
Council members will have an opportunity to ask questions and talk about the specifics of the possible tax during the special session Wednesday, Sept. 9.
