Indianapolis Star

Council Democrats Push Local Tax Increase

February 4, 2005
Plan would increase Marion County income tax by one-tenth of 1 percent to pay for public safety needs

By John Fritze

City-County Council Democrats today unveiled a plan to raise Marion County's income tax by one-tenth of 1 percent to help pay for the rising costs of public safety.

Flanked by enlargements of news stories detailing the early release of prisoners at the county jail to control population, the council leadership said the tax increase -- which will bring the city about $11 million -- was necessary.

"We've really reached a crisis," said Council Democrat Jackie Nytes. "It's costing people their lives."

The local income tax, which is also distributed to communities such as Speedway, would eventually increase to a full 1 percent after three years. That would put Marion County in line with all of the eight surrounding suburban counties.

Currently, the local income tax is set at .7 percent.

Once the increase reaches the full 1 percent, a person making $50,000 in taxable income would pay a total of $500 a year.