Republican Votes Could Sway Indy Income Tax Issue

INDIANAPOLIS -- The votes of Republican city-county councilors could be crucial in determining whether a county option income tax increase scheduled for a vote Monday will pass.

6News political analyst Abdul Hakim Shabazz said that he has been told that Republicans Scott Keller and Lance Langsford are likely to vote for the measure, which would increase Marion County's income tax rate to 1.65 percent from 1 percent.

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Capitol WatchBlog: Tax Analysis

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If Keller and Langsford vote yes, all Democrats vote yes and the rest of the Republicans vote no, the measure would pass 17-12.

A council committee on Friday recommended that the full council pass the income tax plan.

Indianapolis Mayor Bart Peterson last month called for the raise, which he said would yield an extra $90 million yearly, most of which would be put toward crime-fighting initiatives. Peterson later said the first three months of revenue from the income tax increase would be used to lower property taxes.

Property taxes have been a hot issue because many homeowners across the state have seen steep increases, especially in Marion County.

On June 18, Gov. Mitch Daniels temporarily froze Marion County's property tax bills at 2006 amounts and ordered a reassessment there, saying the most recent assessment favored commercial properties and shifted an unfair portion of the tax burden to homeowners.

If the full City-County Council approves the county income tax increase, a person making $50,000 per year would see his or her monthly income tax payment rise from $41 to $68. It would go into effect in October.