The Marshall County Council voted 7-0 to pass a joint resolution with the County Commissioners to extend the Special Local Income Tax (LIT). The resolution will be sent to the Indiana General Assembly for consideration.
The county was able to enact a Special County Adjusted Gross Income Tax (CAGIT), now referred to the Special LIT to provide funding for the construction of the Marshall County Correctional Facility.
Proceeds from the LIT, more than the bond payments for construction, are assisting with the daily operations costs at the jail.
The resolution call on the General Assembly to “clarify the upon collection of the LIT and after those proceeds of the LIT are applied to the payment of the bonds that were issued for the construction of the Marshall County Correctional Facility, that the proceeds from the LIT will be extended at a rate to be fixed by an ordinance passed by the County Council not to exceed .25% and shall be applied to the operations of the Marshall County Correctional facility.”
After reading the joint resolution County Council members discussed the idea. Councilman Jon VanVactor said, “I think it’s time we move forward with this,” and he made the motion to approve the resolution. The motion was seconded by Steve Harper.
Councilman Heath Thornton said it looked good to me but, “it’s going to be up to state legislators, our representatives. I would hope they would present it as we approved.”
Councilman Jim Masterson said, “The has made it clear that without that additional money we can’t fund the facility out there the money is going to have to come from somewhere else.”
Council President Tim Harman said, “It’s a funding mechanism going forward. At some point that loan gets paid off and once it’s paid off you still have to fund that jail.”
Councilman Steve Harper said, “This is by far the most efficient way to fund the jail.”
Councilwoman Mandy Campbell said, “It’s something that is going to be necessary.”
Councilman Jesse Bohannon commented, “One of the things I hope the General Assembly will consider is that it is really asking for clarification. As I reread the statute a few weeks ago, it says the rate should continue until the purposes of the law are fulfilled. Part of the purpose has been the ongoing operations of the correctional facility. I don’t ever see that being fulfilled, so this is asking more for a clarification than an actual extension.”
Jon VanVactor reminded Bohannon that when the current legislation goes away once the bonds are paid the current rate of .25% goes away with it. He explained that if that happened the jail operating expenses would have to come back into the General Fund which cannot sustain itself with that kind of expense. He said, “It’s more than an extension. It’s figuring out what’s going to happen in the future.”
