G ENE RAL O VERVI EW O F THE NE W LIT FRAMEWO RK
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 |