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Scott County leaders prepare for new county income-tax structure as state law changes loom
Summary
Council members agreed to participate in countywide 'must' task-force meetings to model how state changes to local income taxes could reshape funding for EMS, fire and other services; Chair will reach out to Austin and Scottsburg to coordinate.
Scott County council members agreed to begin task-force meetings to plan for state-driven changes to local income taxes that will shift decision-making to counties and may allow municipalities to opt for their own tax rates. Chair said the meetings are needed to “see where everybody needs to be” and to prepare a countywide recommendation for the legislature.
A presenter explained the proposed changes would remove existing local-tax "buckets" and replace them with a county income-tax framework that could include limits (examples discussed included spreads of 0.4% for some services and municipal options up to 1.2%). The presenter cautioned municipalities that opt out could face revenue shortfalls and noted uncertainty around the effects of “state senate bill one” on property-tax reductions and local revenues. “It’s gonna be a much different system, and it’s all gonna be in your guys’ hands,” the Presenter said, urging county officials to study scenarios and plan allocations in advance.
The Chair said Scott County will convene meetings sooner rather than later and will reach out to the cities of Austin and Scottsburg about coordinating a countywide approach. The council set an internal timeline so task-force work can be completed in time to inform the state-level process and the legislature’s review.
