Indiana Overhauls Local Income Tax System, Giving Cities Like Fishers New Authority

Indiana Overhauls Local Income Tax System, Giving Cities Like Fishers New Authority

Indiana lawmakers have approved a major overhaul of the state’s local income tax system, shifting decision-making power away from counties and toward cities and towns — a change that will require Fishers officials to decide in the coming years whether to enact a city income tax for the first time. For decades, Indiana’s local option income tax (LIT) was primarily a county-level decision. Counties chose whether to impose an income tax and at what…