Mayor Proposes 0.25% Local Income Tax For Recovery Efforts

In a speech on Thursday called "Recovering Forward," Bloomington Mayor John Hamilton proposed a raft of spending initiatives aimed at boosting the local economy in the wake of the COVID-19 pandemic, including a new 0.25% local income tax.

From his speech: "I know it is rarely popular to raise revenues, and that it is not easy during times of economic pressure. But we cannot Recover Forward without it. Without it, we will shortchange our future and Bloomington’s potential. And, being one of the lowest-tax cities in a low-tax state in one of the lowest-tax countries, we have fiscal room to do so. Recover Forward lets us dedicate these resources toward those most in need, and toward the Bloomington we want to become."

Click here for a transcript. A video of his speech is available at the bottom of that page.
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In January, the mayor proposed an 0.5% local income tax for sustainability initiatives, but that proposal was abandoned when the pandemic hit.

The mayor does not have the authority to enact a local income tax (LIT). It would need to be approved by the elected fiscal authorities in Monroe County, including the Bloomington City Council and Monroe County Council, in weighted votes based on the proportion of the population that elected officials of each entity represents. Because Bloomington is the largest population base, an eight-vote majority of the Bloomington City Council could pass a LIT for the entire county. 

About half of the proceeds would go to the county government.

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