County Tax Official Urges White County Council to Plan Now for State Property‑Tax Overhaul and Local Income‑Tax Options
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Summary
A tax expert briefed the council on sweeping state property‑tax changes, warned of declining business personal property revenue and shifting PTRC distributions, and urged the county to consider reallocating PTRC to public safety or to prepare a local income‑tax plan.
A visiting tax expert told the White County Council the county should move now to adapt to broad, state‑level property‑tax changes that will reshape local revenue streams over the next two to five years. The presentation covered changes to property‑tax caps, business personal property thresholds, PTRC (property tax replacement credits), and new county income‑tax options.
Key points from the presentation: The consultant said the state’s legislative changes will reduce some homeowner liabilities through credits while shifting more of the tax burden to businesses and to local rates because the net assessed value is being lowered by expanded deductions and credits. He warned that business personal property relief will substantially reduce that tax base and that PTRC distributions are scheduled to phase out; he gave White County’s current PTRC amount as $540,501.
On local options: The presenter said counties can adopt a local income tax (up to 1.2 percent under the new law) and that such taxes will be administered by residence district — meaning municipalities that adopt their own rates will collect additional income tax on residents who live inside their boundaries. He also described wheel tax as a limited, often arbitrary revenue source that tends to raise modest amounts and recommended delaying implementation unless the county is required to do so.
Council guidance and possible actions: The council discussed using the county’s current PTRC allocation as a shuttle to public safety or 9‑1‑1 funding and to “bank” a stable, county‑controlled line for services currently funded from HFI. Members asked staff to prepare an ordinance/advertisement if the council pursues a local income tax; staff said legal counsel and the auditor’s office must be consulted and that the council can advertise a proposed income‑tax change ahead of the August budget process. No formal tax ordinance or adoption vote occurred at the meeting.
Speaker and attributions: The technical presentation and most of the tax projections were delivered by Mr. Banks (tax consultant). Council members asked clarifying questions about caps, the timeline for changes, and the mechanics of local income tax and PTRC reallocation.