The county local income tax rate is increasing.
Jim Inman Photo: https://bloomington.in.gov/council
On Wednesday evening the Bloomington City Council met and approved the tax increase. The approval was unanimous.
The tax increase, proposed by Mayor John Hamilton, was originally for 0.855 percent. The council reduced that amount to 0.69 percent. The revision means the local income tax will increase by 51 percent, starting October 1.
The US Census Bureau says the median income for Bloomington is just over $41,000. With the tax increase, a household will pay about $840 per year – an increase of about $280.
By approving the local income tax increase, an additional $14.5 million in revenue will be generated. The original proposal was expected to generate about $18 million.
Mayor Hamilton had four areas of interest for the increased funds:
- Public Safety, which will receive about $4 million
- Climate Change Preparedness, which will receive $5.4 million
- Equity and Quality of Life, $2.3 million
- Essential City Services, $2.8 million
The two county schools will end their free lunch programs next year.
Both MCCSC and RBBCSC had benefited from waivers provided by the US Department of Agriculture to allow for free meals to all students, rather than those meeting low-income requirements.
In April, the plan – which was authorized by Congress – announced it would expire at the end of June.
MCCSC will continue to offer free breakfast and lunch for students through the remainder of the current school year. In the 2022-2023 school year, the school system will return to the free and reduced meal programs for students based in income guidelines.
RBBCSC told The Herald-Times that the school system would offer free breakfast to all students next year, but will also return to the free and reduced lunch program.
Don’t forget – Sunday is Mother’s Day. Make sure you visit or call a special mom in your life!