(La Porte County, IN) - La Porte County residents will pay higher income taxes to help plug a financial hole for county government created by declining property tax revenue.

 

The La Porte County Council Monday night voted 4 to 3 in favor of a new income tax expected to generate about six million dollars next year.  Average wage earners will pay about $140 more a year in the amount of local income taxes currently assessed.

 

The revenue will be used to strictly fund the La Porte County Emergency Medical Service, which currently operates with money from property taxes in the general fund.

 

The savings in the general fund will free up dollars that could go elsewhere like catching up on building maintenance neglected in recent years to stretch tight budgets.

 

Councilman Mike Mollenhauer said it was either raise taxes or keep putting off repairing and even replacing some of the buildings needing attention.

 

“Truthfully, I just don’t see how we’re going to get anything accomplished and every year we’re just going to be further and further behind.   Nobody wants to put a tax on them but everybody wants these services, too,” he said.

 

Councilman Justin Kiel said a higher tax allows deficit spending to be avoided to address building maintenance issues such as the millions of dollars needed to replace the failing heating and air conditioning system at the historic LaPorte courthouse.

 

Councilman Jennifer Heath voted against the tax at a time when many residents are struggling financially from other higher costs for things like fuel and utilities.

 

“I don’t know how we can put this additional fee on the back of our taxpayers right now,” she said.

 

Local governments statewide are imposing or at least considering higher local taxes to make up for revenue declines from property tax reform adopted by the Indiana legislature in 2025.

 

The projected loss in revenue for La Porte County government this year is about two million dollars but the reduction is expected to be higher in future years.

 

The local income tax was raised previously in 2022 to generate funds for public safety in areas like salary hikes to curb a high turnover rate of emergency responders going elsewhere for more pay.

 

Kiel said the new income tax will expire at the end of 2027 unless it’s extended.