Muncie City Council discusses income tax rate increase

Proposed increase of 1.25% would fund Muncie public safety

A resolution discussed at Monday night's city council meeting could affect the amount of taxes employees in Muncie will pay starting in 2010.

The resolution, which proposed an income tax rate increase of 1.25 percent to provide funding for public safety, was tabled at Monday's meeting to be further discussed at the next city council meeting in August.

With the current income tax rate at 1.05 percent, the increase would more than double the present rate.

However, that large of an increase is unlikely, Councilwoman at-large Linda Gregory said.

"I don't really anticipate that we will approve the full amount," she said.

Gregory said that while the tax increase would not affect Ball State as a whole, it would affect students that work both off and on campus.

In order for an income tax raise to be in effect by Jan. 1, 2010, a resolution must be adopted by Nov. 1.

The meeting Monday night was met with an emotional response from more than 300 attendees.

In the public hearing preceding the meeting, more than 40 citizens spoke about the resolution, with public opinion split largely down the middle between those in favor and those opposed to the tax increase.

Those in favor, many of whom were firefighters and their families, hoped that the increased tax would raise enough money to eventually reopen the District 1 fire station, which closed last month.

Some people said that they hoped the tax would eventually help to bring back some of the jobs of the 32 firefighters who were laid off last month.

Those opposed to the resolution said they simply could not afford to pay any more taxes.

City council president Alison Quirk said at the meeting on Monday that more research had to be done before the council could take a vote.

"We are looking at difficult times, and this is a difficult decision to make," Quirk said. "We will continue with the... conversation, and we will continue to do our homework."


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