On Thursday, members of the Marshall County Council unanimously approved a resolution reaffirming a resolution that was passed in 2021 that would extend the Special Local Income Tax and allow the funds to be applied for jail operations and other criminal justice expenses.
Council President Jesse Bohannon said, “This is basically a petition to our legislators in the General Assembly asking them to extend the Special Local Income Tax supporting the jail which would allow us to pay off the jail bonds early saving taxpayers hundreds of thousands of dollars in interest expenses and providing the county with a long-term funding solution for jail operations and maintenance.”
Councilman Tim Harman motioned to approve the resolution as presented and it was seconded by Will Patterson. During the discussion, Councilman Harman said the resolution was confirming what the council had voted on two years ago. It was unanimously passed in 2021 by the Council and Commissioners. He said jail operations are costing roughly $5 million and the tax coming in from the Special LIT is about $3.3 million. The county will be spending down some of the surpluses this year. There is $8.8 million in the Jail Tax Surplus and the council moved all the jail expenses out of the General Fund this year and put those expenses in the Special LIT with the desire to lower the property tax rate.
Harman said State Representative Jack Jordan (R-Bremen) asked the County Council to reaffirm with its new members the desire to continue with the Special LIT for jail operations once the bond is paid off.
Councilman Bohannon said this resolution is important to fund the daily operation of the jail in the future. He also said he believes a majority of the council has the desire to cut the tax rate once the legislation has been approved in Indianapolis if the numbers show that it can happen. He encouraged those citizens in attendance at the meeting to reach out to their state senators and representatives and let them know they are supportive of the legislation.
The resolution was passed by the County Council with a 7-0 vote.
The Marshall County Commissioners will consider this same resolution at their meeting Tuesday morning.
MARSHALL COUNTY RESOLUTION 2023 – 01
REAFFIRMING RESOLUTION 2021-21
JOINT RESOLUTION OF THE MARSHALL COUNTY COMMISSIONERS AND THE MARSHALL COUNTY COUNCIL TO EXTEND THE SPECIAL LOCAL INCOME TAX TO BE APPLIED FOR JAIL OPERATIONS AND OTHER CRIMINAL JUSTICE EXPENSES
WHEREAS, a Special County Adjusted Gross Income Tax (CAGIT), now referred to as a Special Local Income Tax (LIT), was established to provide funding for the construction of the Marshall County Correctional facility; and
WHEREAS, proceeds from the LIT in excess of the repayment of the bonds issued for the construction of the Marshall County Correctional facility have been applied for payment of ongoing operations for the Marshall County Correctional facility; and
WHEREAS, after payment and satisfaction of the bonds used for the construction of the Marshall County Correctional facility, it is to be specifically requested that proceeds from the LIT be applied to the continuing expenses and operations of the Marshall County Correctional facility.The rate of the extension to be fixed by an ordinance passed by the County Council. This rate will remain in effect until such time as the ordinance establishing this rate is rescinded or modified to adjust the rate.
NOW, THEREFORE, BE IT RESOLVED by the Marshall County Board of Commissioners and the Marshall County Council that the Indiana General Assembly clarify that 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 for the Marshall County Correctional facility; and
BE IT FURTHER RESOLVED that a copy of this Resolution be submitted to the Indiana General Assembly to assist in legislation so as to properly apply proceeds from the Special Local Income Tax so as to keep said funds as part of the Marshall County Correctional facility operations, for payment of expenses.