EDIT change OK'd by state (5/17/05)

An amended state law could mean a big change in the way revenue from a local income tax is used across Indiana.

But maybe not in Jay County.

Beginning July 1 in Indiana, revenue from the economic development income tax may be spent for “any lawful purpose” — lifting restrictions that limited the use of EDIT funds.

Despite that change, the presidents of Jay County Commissioners and Jay County Council — Milo Miller Jr. and Jack Houck — said this morning they weren’t ready to abandon the focus on using the funds to boost the county’s economy.

Currently, a .25 percent income tax generates about $630,000 annually in Jay County. Beginning July 1, the rate will increase to .50 percent, with the additional amount dedicated toward a homestead replacement credit designed to offset higher property tax bills on homes due to early phase-out of a county inventory tax.

“Right now we need to continue using (EDIT) like we’ve been using it ... As far as I’m concerned, they need to keep it like it is,” Miller said in a phone interview this morning.

Houck said he feels that while the definition of economic development has and will continue to evolve, the EDIT revenue should continue to be dedicated toward that purpose.

“That (economic development) window may be expanded to include things that aren’t thought of,” said Houck, who is executive director of the Jay Community center. “In the past (economic development has) meant manufacturing. A good (new) case is what Glynn Barber is doing (with X-Plex). He’s not producing 50 or 100 manufacturing jobs, but he is producing people coming to town who will spend retail money. That may be the future that is coming, and we have to look at that.”

Bob Quadrozzi, executive director of Jay County Development Corporation and chairman of several EDIT advisory committees in the county, said he was glad to hear that Houck and Miller favored keeping EDIT geared toward economic development.

“We’ve got a strong case,” for how EDIT funds have been used in Jay County, Quadrozzi said. “There’s so many projects in Jay County that would not have happened without EDIT funds.”

EDIT money has been used in Jay County to build speculative industrial buildings, develop infrastructure including roads and provide revolving loan funds, among other uses.

Quadrozzi said he has not done any personal lobbying on the local level, but “I’m certainly going to prepare for that ... We’ve had a good return on investment with our EDIT monies.”

Jay County auditor Freda Corwin said this morning that she has been told by state officials that most counties which had adopted EDIT were not strictly following current guidelines on uses of those funds.

“Some counties already use it for anything,” Corwin said. “They were just trying to make (rules) uniform.”

Corwin said she did not know if or how the change will impact how EDIT revenue is distributed between the county and the six incorporated areas in Jay County. Each of the six towns and cities receives a share, and also is allocated an equal one-sixth share from the county’s EDIT funds.

District 33 State Rep. Bill Davis (R-Portland) said this morning he was in the minority voting against passage of the bill.

Davis, a charter member of Jay County Development Corporation, said that he believes that counties, cities and towns should have to explain what they want to do with EDIT revenue before spending it on anything besides economic development.

“When we put the EDIT tax on ... we asked for that approval from the county councils, and that process is not called for in this bill. I’m just concerned that we continue to focus on creating jobs and on economic development,” Davis said.

“It’s not that I don’t want the counties to have the ability to (be flexible) ... but in this case where we’ve said to the people we’ve adopted it for a certain purpose ... I think we should have to go back and say what we want to do. Right now creating jobs is so important for our district that I hope they continue to do that,” Davis said.[[In-content Ad]]