The Bloomington City Council struck down a proposal Wednesday night to increase the local income tax by 0.25%.
The tax hike was part of Mayor John Hamilton’s “Recover Forward” plan to help fund issues such as climate change, economic stability and social justice during the coronavirus pandemic.
“I am disappointed that a majority of our City Council did not affirm the need for government to step up in this time of multiple crises to take care of our residents, and protect and advance the community for subsequent generations with additional revenue,” Mayor John Hamilton said in a press release. "My administration as a whole and I personally remain committed to these vital causes. I am very concerned that without these funds we will face serious challenges to navigate troubled waters ahead.”
Councilmember Matt Flaherty supported the idea and said even though the legislation failed to pass, the community will still need to address the problem of climate change in the future.
"This isn’t nebulous. It’s here and now and it’s people, most of all for the next generation," Flaherty said.
Several members of the council voted against the tax increase because they didn't believe it was right time to raise taxes on the public.
Councilmember Jim Sims said some of the issues the proposal aimed at were too large and needed more collaboration with institutions outside the area.
“Bloomington city does not operate in a vacuum," Sims said. "It has to be broader in order to work toward solving some of the climate change and greenhouse gas issues.”
The council’s final vote was 4-5 against the tax increase. If the council had garnered 8 votes in support of the proposal, it would have raised income taxes across the entire county given its power over the local income tax council.
The way the state of Indiana's local income taxes are set up, Bloomington holds 58% of the voting shares over Monroe County.
Jill Thurman of the Ellettsville Chamber of Commerce said none of its 100 business partners supported the tax proposal.
“This tax increase is not just a City of Bloomington issue. It’s a countywide issue," Thurman said. "It affects every Monroe County resident. Ellettsville area businesses do not support the tax increase.”
The funds generated from the tax were expected to reach over $8 million, in which about $4 million would've been allocated to the city, while rest of the funds would've gone to the county.
Councilmembers Jim Sims, Susan Sandberg, Ron Smith, Sue Sgambelluri and Isabel Piedmont-Smith voted against the tax increase, while Flaherty, Steve Volan, Dave Rollo and Kate Rosenbarger supported it.
