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Baker Tilly outlines MUS S task force options and offers to help Fayette County plan for 2029 income-tax changes
Summary
Consultant Jason Simler of Baker Tilly briefed the council on the Municipal Unit Strategic Task Force (MUS S) process for new local-income-tax rules going into effect in 2029, warned of potential revenue and circuit-breaker impacts, and proposed a consultant scope with an estimated not-to-exceed figure; council requested a written quote and outreach to other taxing units.
Jason Simler of Baker Tilly told the council the state has delayed new local-income-tax (LIT) rules until 2029 and that counties should begin planning now to avoid last-minute decisions. Simler described the MUS S (Municipal Unit Strategic Task Force) option that allows counties to convene local taxing units to recommend a distribution structure to the Department of Local Government Finance.
Simler presented county-specific numbers, noting Fayette County currently collects about $7.2 million in certified shares and local income taxes and that the county could collect more under certain LIT scenarios. He warned that the loss of property-tax replacement income could increase circuit-breaker losses and stressed the value of running multiple scenarios before decisions are made.
"If you were to go to the max based upon your tax base, you could collect $6,000,000 of revenue," Simler said in a numerical example, and he outlined trade-offs: countywide rates that keep revenue at the county level versus municipal opt-in rates that apply only to city residents.
Simler offered a consulting engagement that he described as customizable; he estimated typical scoped work at about $35,000 not-to-exceed depending on meetings and deliverables and suggested the county invite cities, towns, townships and other taxing units to share cost. Council members asked for a formal quote and timeline and agreed to contact other taxing units about participation ahead of the August budget meeting so the council could consider a funding decision in August.
