Bloomington Mayor Proposes 0.855% Increase to Local Income Tax Rate

Strategic Insights -

Bloomington Mayor John Hamilton has proposed a 0.855% increase to the local income tax rate, citing the need to pay for various services such as public safety upgrades, climate preparedness programs, and quality of life services. The proposal would generate nearly $4.5 million for public safety, including $1.5 million for police officer salaries and $2.5 million for police and fire station upgrades. The city would also commit $400,000 to support local initiatives, including adding Sunday service to Bloomington Transit's schedule and subsidizing ridership for low-income riders.

Key Takeaways:

  • The proposed 0.855% increase to the local income tax rate is the first attempt to raise the tax in nearly three decades, with the last increase occurring in 1993.
  • The proposal aims to generate nearly $4.5 million for public safety upgrades, including $1.5 million for police officer salaries and $2.5 million for police and fire station upgrades.
  • Bloomington Transit would be one of the largest beneficiaries of the new revenue, with $300,000 allocated to add Sunday service to its schedule and $100,000 to subsidize ridership for low-income riders.
  • The proposal also includes $2 million for housing equity projects and $500,000 to support workforce development.
  • A majority vote is required to raise the income tax in the Local Income Tax Council, which consists of 24 voting members from Bloomington, Ellettsville, Stinesville, and the Monroe County Council.
  • Monroe County's current LIT rate is the 23rd lowest in the state, with a rate ranked ninth among the top 15 most populated counties in the state.

Statistics:

  • The proposed 0.855% increase to the local income tax rate.
  • Nearly $4.5 million generated for public safety upgrades, including $1.5 million for police officer salaries and $2.5 million for police and fire station upgrades.
  • $300,000 allocated to add Sunday service to Bloomington Transit's schedule.
  • $100,000 to subsidize ridership for low-income riders.
  • 24 voting members in the Local Income Tax Council.
  • 92 counties in Indiana, with Monroe County's LIT rate ranked 23rd lowest.
  • 100 total votes in the Local Income Tax Council, with a majority required to raise the income tax.

Sources:

  • [Bloomington Mayor's Office press release, citing Mayor John Hamilton, February 24, 2023]
  • [Indiana Department of Revenue information, no date]
  • [U.S. Census Bureau estimates, no date]
  • [Bloomington City Council documents, no date]
  • [March 17 video statement by Mayor John Hamilton]