Shift in LOIT rates Ok'd

Jay County Council approved a transfer of Local Option Income Tax rates Wednesday night that will help to support the Jay County Jail and other public safety agencies.
The council approved a .15 percent reduction in the homestead replacement credit portion of LOIT and a .15 percent increase in the LOIT public safety rate.
“We’re taking it from one section and adding it to public safety,” explained council president Gerald Kirby.
The council discussed earlier this summer making the switch and raising the LOIT rate an additional .05 percent, but decided that even a small increase in taxes was not right in the current economic climate.
The LOIT public safety draw is not only kept by the county, but is distributed out to all of the county’s cities and towns.
“It goes to all of the units,” Kirby said.
Although the switch will not raise the amount that workers will have deducted from their paychecks, the move could slightly increase property taxes for people claiming a homestead credit, since the move will effectively reduce the amount of money available to cover those credits.
“There’ll be fewer people being affected by doing it this way,” said councilman Gary Theurer.
The council approved the switch 5-0. Councilman Dan Orr was late to the meeting and missed the vote and Kirby only votes to break ties.
Jay County Auditor Nancy Culy said the shift in the LOIT rates will begin effective Oct. 1.
In other business Wednesday, the council:
•Approved the 2011 budget on second reading. The budget passed 5-1. Councilwoman Marilyn Coleman cast the dissenting vote.
She had voted against the first reading of the budget also, stating that she felt the council did not appropriately study the budget and the county’s future finances.
•Approved a reduction of $145,178.59 in the 911 landline budget and an appropriation of $146,675.27 into the 911 wireless budget.
The state has mandated that funds gathered for 911 from landline and wireless phones need to be kept separate.
•Approved an appropriation of $895 in substance abuse program fees to the Jay Superior Court budget. Jay Superior Court Judge Max Ludy informed the council that the program is running out of funding and that he is meeting with Meridian Services to discuss the issue.
•Approved an appropriation of $2,914.95 to the sheriff’s budget to purchase bulletproof vests. The money is provided by a 50/50 federal grant. Vests need to be replaced every five years.
•Approved a transfer of $20,000 into the commissioners’ budget contractual service’s line item to pay bills.
•Found Bell Aquaculture, Redkey, to be in compliance with its tax abatement requirements and voted to continue the abatement.
•Approved a county Economic Development Income Tax loan of $75,000 for Fort Recovery Construction and Equipment, which is beginning a evacuated tube solar collector manufacturing line.
The company has promised to create 40 jobs. If the company fails to meet that goal in three years, it will have to pay back $1,875 for every job not created below 40 with an additional interest rate of prime plus 1 percent.
Fort Recovery Construction anticipates hiring about 120 people over the next five years.[[In-content Ad]]