WTHR |Income tax increase likely for Marion County

Income tax increase likely for Marion County

Mary Milz/Eyewitness News

Indianapolis - People who live and work in Marion County will likely pay more in taxes this year. Property taxes are expected to go up an average of eight percent. People who work in Marion County meantime should expect to pay more in county income taxes to help fund the war on crime.

"Absent some sort of divine intervention that would bring us revenue from some source other than that, I think that's likely," said Mayor Bart Peterson. He added it was too early to say how much the taxes might increase.

The mayor has said his anti-crime efforts will cost $85 million a year. He hoped to fund them with the savings from merging township fire departments and by possibly raising other taxes such as sales or hotel taxes.

State lawmakers nixed those proposals. Instead, they passed legislation that allows Marion County to raise income taxes by up to a half percent, which would bring in just enough to cover the mayor's crime package.

While Peterson says he'll scrounge for other sources of money, he sees few alternatives to raising income taxes.

"We can't lay off police officers; we can't cut back on the war on crime," Peterson said. "I'm looking to do more in that area, not less.

The mayor says closing city pools or cutting other city services just isn't an option.

"When you're talking $85 million. That's a substantial amount of money. That's more than twice the budget for the parks department," he said.

The council needs to sign off on any tax hike, and this one comes during an election year. Republican Lincoln Plowman calls it a tough sell, as does fellow Republican Scott Schneider, who said the mayor should be able to cut costs by finding ways to make city government more efficient.

But Scott Keller, also a Republican councilor, predicts broad bipartisan support for the mayor's plan to raise county income taxes.

"Taxes are not popular but neither is crime. I think crime trumps taxes," Keller said. "With crime the way it is, I don't think anyone will object, as long as that's where the money goes."

The mayor said he will put a proposal together over the next several weeks, sharing it with councilors well before budget meetings begin in August.

If the county income tax were to go up the full half percent, it would cost someone who makes $50,000 a year an extra $250 in taxes. Someone earning $150,000, would pay $750 more.