As Pulaski County officials discuss ways to lessen the county’s reliance on local income taxes, the gap with surrounding counties’ tax rates remains high. Pulaski County residents currently pay 3.38 percent in local income taxes, the most in the state.
But if you live in Starke County, you’re paying about half that at 1.71 percent, according to the most recent figures from the Indiana Department of Revenue. Porter County’s rate is dramatically lower, though, at half a percent. Many of the people who work in Pulaski County choose to live elsewhere.
The gap between Pulaski and Fulton counties is narrowing a bit. On October 1, Fulton County’s income tax rate goes up to 2.38 percent, according to the Department of Revenue.
During the Pulaski County Council’s discussion on local income taxes this week, Council Member Ken Boswell noted that balancing the county’s income and property tax rates would spread the cost of local government across a greater number of taxpayers. “We’re an ag county,” he said. “We have more property than we have people. So we’re taxing the smallest group of people at the highest rate, and we’re taxing the greatest quantity of product that we have at the lowest rate.”
One of the options on the table would lower the income tax rate to 3.3 percent for 2020 and then to 3.0 percent for 2021, while effectively raising property taxes. Council members are expected to continue discussing their options during another special session Monday evening at 7:00 EDT at the Pulaski County Highway Garage.
