HAMMOND | Two top city officials already count themselves as losers if county officials adopt the local option income tax under the formulas mandated by the state.

Speaking to 5th District residents during his latest Mayor's Night Out, Mayor Thomas McDermott Jr. said he would be paying more in income tax than benefiting from any break in his property taxes.

"I will be a loser," he said in trying to speak to public confusion about the effect of the income tax.

The mayor said he is not a wealthy man and doesn't like paying more in taxes than anybody else.

But McDermott said the state will balk at any suggestions from him about addressing property tax relief in Hammond until Lake County passes an income tax like the state's other 91 counties.

Council President Dan Repay, also the county's director of taxation, said he, too, would pay out more than what he'd get back.

McDermott and Repay appeared to agree the winners in Hammond likely would be low-income homeowners, certainly senior citizens with a fixed income.

But Lake County Councilman Larry Blanchard and Highland Clerk-Treasurer Michael Griffin, both of whom have played a large role in the debate, said last week it's difficult to determine the effect on either an individual community or taxpayer.

Analyses have focused at the township level, except for the town of Winfield, they said. Under four options outlined by the accounting firm Crowe Chizek, North Township would appear to obtain an overall gain. North Township is composed of Hammond, East Chicago, Whiting, Munster and Highland.

Blanchard's calculations indicate Hammond could see an overall loss of $1.8 million under the second option, which deals with homestead credits, despite having the county's second highest number of homestead deductions.

Under that option, the distribution of the income tax would be allocated in the form of an additional homestead credit, Blanchard said.

"Every owner-occupied (property) in Lake County would receive an equal percentage of reduction on their tax bill," he said. "Let's say it's 25 percent. If my tax bill is $1,000, I get $250 off my property tax bill."

However, factoring in the 1 percent income tax if his adjusted gross income is $30,000, he would pay $300 in the income tax, creating a net loss of $50.

That's one way to figure a winner or loser, depending on what other deductions the individual taxpayer might be eligible for, he said.

Blanchard said another rule of thumb is those who have a moderate income but are "real estate rich" might be winners while those with higher incomes but moderate homes likely would be losers.

Griffin agreed with Blanchard's assessment, but said none of the options on the table are optimal for anyone.

Griffin said the fundamental problem is the state trying to align income tax with property wealth in Lake County.

"If they must pass the income tax, which I hope they don't, there are other formulas they should ask the state to grant them that could at minimum be more fair and ideally more just," he said.