Task force flags legal questions over fire/EMS allocation under new LIT rules
Sep 2, 2026
Consultants modeled fire/EMS revenue at the maximum 40¢ rate and split it by population (85% Muncie / 15% Yorktown), but said legal clarity from DLGF/State Board of Accounts is needed to confirm whether funds must be restricted to fire/EMS or may go into general funds.
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Policy Analytics modeled the fire and EMS component of the new local income tax regime at the statutory maximum rate of $0.40 against the estimated county tax base, projecting roughly $12 million in fire/EMS revenue with an approximate 85/15 split favoring Muncie. Sam VanderBean told the group that the project used decennial population to apportion that revenue across Muncie and Yorktown for the models.
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