If you have been following the City of Muncie’s financials, a shorted till will be of no surprise. If not, you may find your paycheck missing a few pennies as the rush to fill the cash register gets underway. Yes, folks, the LOIT has entered the minds of our elected officials. L-O-I-T (Local Option Income Tax) if passed by the City of Muncie, digs into the pocketbooks of every working stiff in Delaware County. I believed it was just a matter of time before it was introduced and approved.
I’m not going to spend much time discussing the merits or pitfalls of LOIT today. Instead, I am offering two articles and an opinion piece for your reading pleasure.
The first article is the introduction of the tax, setting the tone. The second, a recap of the first and lastly a column by a local journalist (saved the best for last). Perhaps after reading, you’ll get a better understanding.
Here’s a side note: A few months ago I crossed paths with columnist Larry Riley and the chit-chat soon turned to the SAFER grant. I asked if he knew the status. Nope.
Next question, if the grant is not renewed, how would the shortfall be met? Larry responded (much to what he penned) – Mayor Tyler stated there would be enough money to cover the fire department.
The previous mayor, McShurley, was asked the question in 2011 and her answer much the same. If the SAFER grant did not come through, there would still be money to maintain the fire department. Then she said good-bye and left the city with over $7 million operating balance.
The real kicker is after Mayor Tyler said the property tax revenue was down and the LOIT tax is needed for fire safety and to shore up the coffers of Economic Development Tax Revenue (EDIT) he proposed an additional amount of spending nearing $50 million.
Here’s the short of it all.
1.) Mayor Tyler – the city would have enough money for the fire department. Never a word to the contrary.
2.) Mayor Tyler – the tax revenue is down and will need to pass LOIT to maintain the fire department and EDIT funding.
3.) Mayor Tyler – reveals the $48 million canal project.
Chew on it a while…