Elkhart County Auditor
Public Safety LOIT Distributions
Counties were given expanded authority to increase existing local option income taxes with the enactment of House Enrolled Act 1478 in 2007. The goal was two-fold: 1) to provide relief for property taxpayers by allowing counties another funding source for increased local spending; and 2) to provide an option for alternative sources of revenue to counties.
Under this bill, counties are given more flexibility to fund the costs of local government with local income taxes instead of property taxes. The three new options allowed by legislation include:
- Incremental: Counties may choose to fund local operating budget increases by adopting a County Adjusted Gross Income Tax (CAGIT) rate or an additional County Option Income Tax (COIT) rate instead of increasing property taxes. The rate must be set incrementally for two years and cannot exceed 1%. The local option income tax used for operating funds requires the department of Local Government Finance to "freeze" property tax levies and fund future levy growth through local option income taxes for operating needs.
- Replacement: Counties may choose to implement a CAGIT rate or COIT rate to fund a dollar-for-dollar in exchange for property tax relief up to 1% in increments of 0.5% across the board by targeting relief for: 1) property tax replacement credits; 2) a uniform increase in the homestead credit percentage in the county; or 3) local property tax replacement credits at a uniform rate for all qualified residential property.
- Public Safety: Counties may choose to adopt a local income tax for public safety of up to the lesser of .25% or the local option income tax reate imposed for property tax relief provided that the first two options (incremental and replacement) are adopted.
Elkhart County Auditor – Pauline Graff
Contact us at the Auditor’s Office
Elkhart County Administration Offices
117 2nd Street, 2nd Floor
Goshen, IN 46526
Auditor: 574- 535-6719
Real Estate: 574-535-6710
Monday 8:00am – 5:00pm
Tuesday - Friday 8:00am – 4:00pm