Sen. Baldwin outlines sweeping Amendment 91 to DLGF bill, committee approves it unanimously

Senator Baldwin presented Amendment 91 to the DLGF bill ("12-10"), describing a comprehensive set of changes covering local income tax distribution, property-tax administration, tax increment finance rules, innkeepers and food-and-beverage tax allocations, municipal-advisor registration and other fiscal provisions. The committee debated the amendment and approved it 13-0, then voted to move the DLGF bill as amended to the floor by the same margin.

The amendment clarifies local income tax (LIT) rules, removes a 7,000-population cap that previously limited large towns and cities from opting into a countywide LIT rate, and requires counties to convene representatives of cities and towns to develop a LIT distribution agreement to be filed with the Department of Local Government Finance (DLGF) by Oct. 1; fire protection and emergency services and nonmunicipal rates are excluded from that distribution requirement. Baldwin said the change is intended to let counties and municipal units tailor distribution plans to local circumstances rather than forcing a single statewide model.

On property tax, the amendment would bar taxpayers from using property-tax credits by carryback, carryforward or refund; it would automatically transfer certain disabled-veteran recipients into a new…