Pulaski County residents will apparently see a decrease in their local income tax rate next year. The county council approved an ordinance Monday that will decrease the rate from 3.38 to 2.85 percent, according to a post on the Pulaski County, Indiana Government Facebook page.
The ordinance that was up for approval proposed dropping the amount of income tax revenue being used for property tax relief, which in turn, increases the county’s property tax levy. However, other portions of the local income tax, such as those dedicated to public safety, 911 dispatch, and economic development would go up.
The tax restructuring is seen as a way to help lower the county’s deficit, while also shifting some of the tax burden from wage earners to landowners. A similar proposal was narrowly voted down by council members last year.
Pulaski County currently has the highest local income tax rate in the state. The change would put the county below Jasper and Wabash counties’ current levels, according to the most recent figures from the Indiana Department of Revenue. But Pulaski County’s local income tax rate would still be more than one percent higher than Starke County’s.
The change will take effect January 1.
