Elkhart County Explores New Income Taxes to Relieve Property Tax Burden

by Ed Ernstes (ernstes@wsbt.com)

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By Beth Boehne

(WSBT) Counties around Indiana are looking for ways to help offset high property taxes.

Governor Daniels and some state lawmakers have encouraged counties to look at new income taxes.

Elkhart County is giving it some thought.

Right now, the Elkhart County Council is going through hearings for the 2008 budget.

Every council member has heard from homeowners around the county about higher property tax re-assessments.

Next month, council members plan to sit down to discuss the possibility of implementing a new, additional county option income tax.

"I think everybody is going to look at this — I think we have to look at it — and the question is whether or not an additional local option income taxes are going to significantly help the property tax situation for homeowners or whether they're not,” said County Council President John Letherman.

Right now the county already has a 1.5 percent income tax on the books. One percent of that was passed about 25 years ago. A quarter of a percent goes for highway improvements and another quarter percent goes for the building of the new county jail.

Some taxpayers feel an additional option income tax hike could be the way to go.

“I think it’s worthwhile,” Roger Shreiner told WSBT News. “I think anything they can do at this point to help relieve some of the pressure on property tax would be great. But they also need to continue on and eliminate property taxes."

“Well I think it’s definitely something they need to look into, provided that if they do raise the income tax, that it definitely goes to relieve property tax,” said Jack Donis, who lives in Elkhart.

“My property tax doubled this year, and I need to learn more about it to see if an income tax, if that would help offset that,” said Elkhart resident Richard White.

Some county council members will attend a state income tax seminar at the end of this month. They have until October to notify the state about plans to implement a new tax.

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