Morgan County officials debate tax impacts on local fire and EMS funding

The Town Council of Mooresville, Indiana, convened on June 12, 2025, to address pressing financial matters affecting the community, particularly concerning local income tax and funding for essential services. The meeting focused on the implications of recent legislative changes and the potential impact on the town's budget and public safety services.

The council began by discussing the county's local income tax (LIT) adjustments, noting that Morgan County has historically maintained a high income tax rate while keeping property taxes lower. A significant point of contention was the proposed cap of 2.9% on the LIT, which could affect funding for local emergency services. Council members expressed concern that if the county adopts the maximum rate, it could lead to a reduction in revenue for township fire and emergency medical services (EMS), leaving them reliant on county decisions.

The discussion highlighted the potential for a decrease in property tax revenue due to legislative changes, specifically referencing the impact of Senate Bill provisions that could alter funding structures. The council noted that townships currently utilizing certified shares for fire services might face financial difficulties if the county reallocates funds to its own services.

Council members also addressed the timeline for adopting a wheel tax, emphasizing the need for a decision by September 1, 2025. This tax, which could generate approximately $700,000, is intended to support various municipal projects and salaries. However, the council acknowledged the challenges of implementing this tax, especially in light of public perception and the need for effective communication with residents about the necessity of such measures.

The meeting concluded with a consensus on the urgency of addressing these financial issues and the importance of engaging with state representatives to advocate for more favorable conditions for local municipalities. The council plans to continue monitoring developments and will reconvene to finalize decisions regarding the wheel tax and other revenue sources before the upcoming deadline.