Pike County residents will soon notice a change in their yearly taxes.
Reports out of Pike County say the Pike County Council voted earlier this week to approve a $250,000 increase in the county’s income tax. Reports say the increase calls for raising the County Economic Development Income Tax (CEDIT) up to half of a percent from its current rate of 4 tenths of a percent.
Pike County auditor Ron Wilson was among those encouraging the tax increase. He told the council the increase needed to be adopted by October 31st in order for the tax to be collected next year.
Of course, the increase in income tax comes at a time of great financial struggles in Pike County. Reports say the county’s assessed value will drop some 8 percent this year. The county’s cash flow is also dropping at a rate of $600,000 a year.
The county is also looking at raising the tax again down the road. That raise would generate about $600,000. Additionally, a public safety option tax could be in the cards sometime in the near future.
According to reports, Pike County currently has one of the 4 lowest income tax rates in Indiana.