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County official briefs council on complex state tax-reform scenarios, recommends focusing on fire/EMS in negotiations
Summary
An Association of Indiana Counties briefing summarized potential consequences of pending state tax reform and recommended that local negotiators start with fire and EMS impacts and clarify whether the county wants to be revenue-neutral before drawing interlocal agreements; the county's new portal tools and Baker Tilly scenarios were mentioned.
A county representative summarized an Association of Indiana Counties briefing about proposed state tax-reform changes and a new portal that models distribution scenarios. The AIC presenter warned that the new tax model may not allow every local taxing unit to remain revenue-neutral.
The AIC recommended starting municipal negotiations with fire and EMS because those discussions are likely to be the most difficult and suggested jurisdictions clarify whether their intent is to keep revenue neutral or to make up losses for particular units. The representative said the portal to test scenarios had not yet been released to local auditors but Baker Tilly and AIC tools can help model outcomes.
The briefing noted possible options for municipalities to "opt-in" or "opt-out" of local surtaxes up to 1.2 percent, with opt-in collections taxed only on residents inside city limits and opt-out jurisdictions receiving a defined share of county collections. The presenter urged local officials to engage their legislators and prepare for interlocal negotiations, and said AIC recommended document finalization by December for any submissions.
Councilors described the issue as complex and likely to require multiple interlocal agreements; staff said they will monitor the portal release and Baker Tilly modeling.
