Hancock County

extension news notice

Purdue Extension: Expert Resources for COVID-19

The Recession May Be a Light Hit for LIT

January 20, 2021
Capital Comments identity

The December state revenue forecast for Indiana projected that individual income tax revenue would be about $6 billion this year. But Indiana uses local income taxes too, and we know that the income tax revenues that local governments receive in 2021 will be just over $3 billion.

That’s not just a projection. The State Budget Agency tells counties in advance how much “LIT” revenue they will receive in the coming year. The figures are announced first by early August, and the final numbers are ready by December. The numbers are based on the local income tax collections from the previous state fiscal year. So, the amount of LIT revenue to be distributed to counties in calendar year 2021 is the amount of LIT revenue collected from July 1, 2019, to June 30, 2020.

Read more.

Recent Stories