Morgan County Council appoints representative to MUST committee as state income-tax changes loom

Council members spent an extended portion of the meeting discussing state legislation that will change how local income taxes are structured and the county’s role in a new MUST (Municipal/Strategic task force) process. The council reviewed guidance from the Association of Indiana Counties and locally focused scenarios and tasked its representative with coordinating with other incorporated units.

The chair summarized the statutory requirement that counties hold a MUST meeting before Oct. 1 to consult with incorporated towns and cities; the committee is expected to include one county council representative and the fiscal officer from each incorporated unit. The council discussed how the new structure could alter the property replacement tax credit and local distribution classes; Commissioner Brian Collier warned that changes could raise property-tax exposure for some residents and described county efforts to lobby for postponements and protections.

After debate about scheduling and the need for financial-adviser participation, the council moved to appoint Chip Keller as the county representative to the MUST committee. Council members said they will coordinate with Martinsville, Monrovia and other incorporated towns and may invite AIC staff and local financial advisers to the meeting to assist with modeling and rate scenarios.

What happens next: Staff will work on scheduling a late-August or early-September MUST meeting and coordinate adviser participation; the council will consider the committee recommendation when it later sets any local income tax rate.