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true true true true true true

Bloomington Council Postpones Final Vote On Tax Increase To Next Week

By Ethan Burks

Posted September 10, 2020

A screenshot of the local income taxes in neighboring counties in South Central Indiana.

Mayor Hamilton said Monroe County's local income tax is one of the lowest compared to surrounding counties at 1.345%. (Courtesy: City of Bloomington)

Bloomington City Council will wait another week to vote on Mayor John Hamilton’s proposed 0.25% local income tax increase for his “Recover Forward” initiative.

The idea is to assist the community during the coronavirus pandemic by sustaining the local economy and addressing issues like climate change and social justice.

READ MORE: City Officials Talk Last Week's 2021 City Budget Hearings

The council listened to the mayor give a presentation on his plan Wednesday night.

Councilmember Matt Flaherty, who is a big advocate in the fight against climate change, said the tax increase is a way for Bloomington to invest in a sustainable future.

“Generally speaking, I am a believer in government doing good things for the greater good and the public good with its tax revenues," Flaherty said. "I think that’s an important concept to keep in mind here.”

Other council members had trouble wrapping their heads around the exact goal of the tax.

Councilmember Susan Sandberg said even people who don’t mind a tax increase will still want to know where the money is going.

“But to me this is almost too large of a project. It’s too much of a kitchen sink approach, and it’s very very hard to take this message out to the constituents," Sandberg said.

Sandberg said it’s also discomforting that the city has so much power over an issue that will affect people beyond its jurisdiction.

The way the local income tax is set up, the Bloomington holds 58% of the county’s vote shares, and essentially controls the passage of the tax hike with that majority.

Resident Randy Paul said that’s not fair for lower income individuals who live outside of the city.

“I would hope that we would delay this and focus on the people who can least afford it versus focusing on the people who can afford it," Paul said. 

The tax is expected to generate approximately $8.7 million, in which $4 million will go directly to Bloomington, and the remaining funds will be dispersed to the rest of the county.

The city council will hold a final vote on the proposed tax on Wednesday, Sept. 16. 

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