County delays changes to local tax-abatement rules after state tax-structure briefing

Presenter (S1) told the Pulaski County council that a pending state restructuring would shift revenue from property taxes toward income taxes and that local tax rates and distributions would be set based on population, which could leave some taxing units as "winners or losers." S1 said the county will prepare a management-decision report to submit to the LTO and that the analysis might conclude "this new structure doesn't work for Pulaski County."

The presenter estimated the county could see a multi-million-dollar shortfall by 2029, citing a figure ‘‘about 4,600,000’’ and noting the impact could exceed $5 million in some scenarios. Council members compared Pulaski County to other counties with high local income-tax rates and asked whether the county must hire outside consultants. S1 said the county could perform the work itself or engage a consultant such as Baker Tilly, but contracting can help model multiple scenarios for cities and towns.

Council members also discussed a proposed change to local tax-abatement rules. Several members argued it would be prudent to wait for the county's forthcoming fiscal study and the presenter's full report before altering abatement policy. A council member (S5) moved to table the proposal until the study is complete; another member (S3) seconded the motion and the motion carried.

The council urged staff to circulate a clearer cost estimate and recommended attendance at an upcoming Baker Tilly meeting in Winamac on Tuesday the 21st at 10 a.m. The item is expected to return for further discussion after the county's fiscal study is available.