Bloomington city council declines mayor’s request for tax increase on 4-5 vote, proposal now dead

On Monday Wednesday night, Bloomington’s city council voted 4–5 on a request from mayor John Hamilton for a quarter-point increase to the countywide local income tax. That kills the proposal and it will not be considered by other governing bodies in Monroe County.

A press release from Bloomington mayor John Hamilton, issued 15 minutes before midnight on Wednesday and shortly after the city council’s meeting concluded, announced the news.

The headline of the press release leaves the defeat of the proposal to the calculation of readers: “City Council Renders Four Votes for 0.25% Local Income Tax Increase.”

The press release confirmed that the proposed ordinance considered by Bloomington’s city council will not be forwarded for consideration to the other members of Monroe County’s income tax council, which includes the county council and the two town councils. [IC-6-3.6-3-8]

The four votes in favor of the tax increase came from Dave Rollo, Matt Flaherty, Kate Rosenbarger and Steve Volan.

Voting against the proposal were Ron Smith, Isabel Piedmont-Smith, Susan Sandberg, Sue Sgambelluri, and Jim Sims.

The press release quotes Hamilton saying, “I am disappointed that a majority of our city council did not affirm the need for government to step up in this time of multiple crises to take care of our residents, and protect and advance the community for subsequent generations with additional revenue.”

The extra 0.25 points of local income tax would have brought the total rate paid by Monroe County residents to 1.5950 percent. The higher rate would have generated around $4 million for the city of Bloomington and around $4 million for Monroe County government and the two towns of Ellettsville and Stinesville.

The arithmetic on 0.25 points of additional income tax for someone with a taxable income of $30,000 would translate to an extra $75 a year. Continue reading “Bloomington city council declines mayor’s request for tax increase on 4-5 vote, proposal now dead”