local income tax

A representative with Financial Services Group advised raising the tax from the current 0.01 percent to 0.2 percent. The tax was enacted this year and lasts for 25 years.

Councilmember Dave Rollo proposed postponing the entire vote for a third time. He said he wanted to further reduce the 0.69-point increase with economic development funds.

Council’s conversation focused on finding additional sources of revenue. Several members took a specific interest in the 0.25 percentage point increase in the ‘public safety’ LIT in 2016.

Council directed most of its questions toward the proposed Bloomington Transit (BT) East-West express route, which would cost $2.1 million each year.

The tax hike would generate about $18 million in annual revenue for the City of Bloomington, $11.4 million for Monroe County, and $1.4 million for Ellettsville.

The current LIT is 1.345 percent, so the proposed rate of 2.2 percent is a 64 percent increase.

Hamilton’s memo called for $17 million in additional annual revenue from the LIT hike.

If approved by the city council, base pay for all union officers with at least one year of experience will increase by at least $7,700.

Hamilton’s review of 2021 touched on a continued decline in crime, two new downtown parking garages, the first domestic sibling city partnership, and approving 1,900 units of housing, including 280 long-term, affordable units.