Vigo County Proposing Income Tax Increase

(photo courtesy of our partners at WTHI-TV)

The Vigo County Commissioners will Wednesday propose a 1 percent increase to the county’s local income tax rate. Our partners at WTHI-TV report the funds would be used to fund a new county jail and public safety efforts. 

Vigo County currently has a local income tax rate of 1.25 percent, with 0.25 percent going to property tax relief. The remainder falls under "Expenditure Rate" and the station says some of the tax is used for economic development purposes.

Of the 1 percent increase, the commissioners propose using 0.25 percent would be used to pay off bonds for the Vigo County Jail project, which is expected to take 20 years to complete. The commissioners are also proposing a Public Safety Access Point Rate, in which 0.1 percent will be used to fund the county’s E-911 system, according to WTHI. 

Finally, the remaining 0.65 percent will go toward public safety entities throughout the county, including the city of Terre Haute and the towns of Riley, Seelyville and West Terre Haute. 

It was not immediately clear exactly when the commissioners would vote on the tax increase proposal.