CROWN POINT | Lake County officials met Tuesday to discuss how to distribute a controversial new income tax that could be approved next week.
Commissioner Roosevelt Allen Jr., D-Gary, who supports enactment of a 1 percent income tax, said Tuesday that county officials met with their financial consultant, Crowe Chizek, to discuss the many options officials have in allocating the estimated $78 million of income tax revenues.
The county could use income tax revenues to reduce property taxes among homeowners, landlords and businesses or give the money to local government to fund new social services.
"The Legislature has made our choices complicated, but it is urgent we get more data regarding the distribution method," Allen said.
County Councilman Larry Blanchard, R-Crown Point, who opposes the tax, said Crowe Chizek representatives said the county's smaller suburban communities will win if the revenues are given only to homeowners but that Gary and East Chicago will get a bigger share if all property owners are included in the distribution.
Blanchard said there are still many unknowns, which is why he cannot support the new tax.
"I wish I could assure myself that our legislative delegation understood what they have done," he said. "It just sickens me."
State officials are pressing for adoption of the new tax as part of a property tax relief plan. The state has promised to deny local government $15 million in expected property tax revenue in 2008 if an income tax isn't approved.
Suburban city and town councils have opposed the tax, while big city mayors support it on the expectation it would redistribute wealth from suburbs with high per capita income to big cities, which must provide added services to large populations living below the poverty line.
The council could vote as early as Monday. The tax is expected to win by a bare majority on the seven-member panel, but faces a promised veto from two of the three members of the county Board of Commissioners.
The council would then need at least five votes to override a veto.
