General Overview of the New LIT Framework

New Local Income Tax (LIT) Structure

Adoption in 2028, implementation in 2029 for distribution in 2030

OR
County Services Fire/EMS Non-Municipal Units Municipal Services - County-Wide Rate (all municipalities may opt-in) Municipal Services (at least 3,500 population)
Max Rate 1.2% 0.4% 0.2% (Max .05% per unit type) 1.2% 1.2%
Adopting Body County Council County Council County Council County Council City/Town Council
Distribution Method Directly to County County determines allocation method based on service boundaries and population of each provider of fire protection and/or EMS (county, municipalities, fire territories/districts, and certain townships). Townships not meeting criteria and VFD’s are optional. Distributed by population of the unit divided by the population of all units in the county of that type Distributed by population of the municipality (or unincorporated area for the county unit) divided by the total county population minus the municipal population that have adopted their own rate. Directly to municipality
Tax Base Entire County Entire County Entire County Entire County except for the municipalities that have adopted their own rate Incorporated boundaries of municipality

Comparison details

OR   Municipal Services options:

County Services

Max Rate
1.2%
Adopting Body
County Council
Distribution Method
Directly to County
Tax Base
Entire County

Fire/EMS

Max Rate
0.4%
Adopting Body
County Council
Distribution Method
County determines allocation method based on service boundaries and population of each provider of fire protection and/or EMS (county, municipalities, fire territories/districts, and certain townships). Townships not meeting criteria and VFD’s are optional.
Tax Base
Entire County

Non-Municipal Units

Max Rate
0.2% (Max .05% per unit type)
Adopting Body
County Council
Distribution Method
Distributed by population of the unit divided by the population of all units in the county of that type
Tax Base
Entire County

Municipal Services - County-Wide Rate (all municipalities may opt-in)

Max Rate
1.2%
Adopting Body
County Council
Distribution Method
Distributed by population of the municipality (or unincorporated area for the county unit) divided by the total county population minus the municipal population that have adopted their own rate.
Tax Base
Entire County except for the municipalities that have adopted their own rate

Municipal Services (at least 3,500 population)

Max Rate
1.2%
Adopting Body
City/Town Council
Distribution Method
Directly to municipality
Tax Base
Incorporated boundaries of municipality
11