WARSAW — Kosciusko County Council heard a nearly 90-minute presentation Tuesday on the pending impact of state tax reform and reviewed tentative projections that show sharp reductions in tax revenues and how those could be offset with a local income tax hike.

The discussion focused on a 40-page report prepared by Reedy Financial Group, the county's consultant.

Reedy's Tyler Lewis went through much of the report, highlighting recent legislation and local options in the future.

Lewis talked about one of the first changes.

“The big one that’s gonna hit this year, 2026, is the homestead credit. It’s a ten percent credit off your tax liability. If your tax bill is $1,000, you get $100 off, and you pay $900, up to $300,” Lewis said.

“That’s a big impact, not just this year, but moving forward,” Lewis said.

Changes in state tax law a year ago were complex, and were then revised this yea. Council  President Tony Ciriello said he’s aware that more changes are likely next year.

“There were a lot of changes made with Senate Bill 1 last year. They’ve gone in this year and cleaned some of that up, and there could change again next year,” Ciriello said.

He said he doesn’t see the future budget situation as one full of doom and gloom and adds that the county currently has a solid financial situation.

Kosciusko County's local income tax (LIT) is currently 1.0, but could be raised to 1.2.

However, there is another option in which all taxing units work together for a single rate that could be combined for a maximum of as high as 2.9.

The cooperative option would involve the creation of a committee that would develop a plan.

The new LIT rate would take effect in 2029.

While the presentation included information using the 2.9 figure, council members have not spoken publicly about what they would prefer to do in terms of raising taxes.

At the same time, county departments will soon begin preparing plans for the 2027 budget this summer and Ciriello said he expects department heads to start looking at reductions in spending.

Council members held the meeting at 10 a.m. Tuesday in the basement meeting room of the Justice Building in Warsaw.

The meeting was advertised as required by state law, but three local reporters learned of the meeting minutes before the start, and two were able to attend.

County meetings are normally livestreamed on saved on Youtube, but officials had momentary technical problems during the meeting.

The video was posted earlier on Wednesday.

The post County Council hears update on tax reform impact and possible use of additional income tax appeared first on News Now Warsaw.