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  • Writer's pictureBill Raines

City Council Unanimously Approves Local Income Tax Increase

Bloomington - MAY 5 ,2002 –All nine members of the Bloomington Common Council voted yesterday to enact an Economic Development Local Income Tax (ED-LIT) that will fund a range of critical measures across public safety, essential city services, climate change preparedness and mitigation including major public transit enhancements, and equity and quality of life for all. The funds raised by the ED-LIT will allow the City to address future critical needs and meet fundamental obligations to its residents, present and future. Yesterday’s vote by the Bloomington Common Council will increase the total Monroe County Local Income Tax (LIT) rate from 1.345% to 2.035%. This 0.69 percentage point increase reflects extensive deliberations by Council Members and members of the Administration to increase annual investments in four broad categories, beginning in 2023:

Public Safety - $3,954,000

  • Climate Change Preparedness and Mitigation - $5,433,600

    • Transit investments - $3,806,100

    • Climate Action Plan (CAP) implementation - $1,627,500

  • Equity and Quality of Life for All - $2,340,000

  • Essential City Services - $2,790,000

“This step is a critical one for Bloomington’s future,” said Mayor John Hamilton. “I am gratified that our City Council and the administration worked together to take care of our current residents and to protect and advance the community for coming generations. This is a pivot point. We’re emerging from a very challenging pandemic and economic downturn with critical challenges ahead. With this step, we will assure active and effective governmental services and accelerate our response to climate challenges and to persistent inequities.” Prior to the LIT increase, Monroe County had the lowest LIT rate compared to its six contiguous counties, and with this increase will have the median LIT rate of these seven counties. Bloomington will continue to have a below-average combined property and LIT tax rates relative to the twenty largest cities in Indiana. The Bloomington Common Council constitutes a majority of the Local Income Tax Council (LIT Council), meaning yesterday’s vote cast over 50% of the votes among the LIT Council and effectively adopted the measure. Under the Indiana state code, the remaining fiscal bodies and their individual members may but need not vote on the measure. Votes on the LIT Council and distribution of the new revenue both are weighted proportionally based on population among the City of Bloomington, Monroe County, the Town of Ellettsville, and the Town of Stinesville. Under state law, the ED-LIT will be effective on October 1, 2022. The population-based distribution of new revenue from this tax increase is projected to generate approximately $14.5 million in new annual revenue for Bloomington, $9.2 million for Monroe County, $1.2 million for Ellettsville, and $36,000 for Stinesville. On April 27, the Council also voted to approve two five-year $5 million general obligation (G.O.) bonds with Ordinances 22-13 and 22-14. These bonds complement the LIT increase by funding discrete infrastructure projects while the LIT supplies an annual revenue stream for ongoing programs and initiatives. For more information about the approved LIT increase, including a list of Frequently Asked Questions visit

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