Goshen News, Goshen, IN

Local News

February 24, 2013

Mayor doubts LOIT accuracy


Culver’s bill dies

State Rep. Wes Culver of Goshen introduced a bill this session that would have put an employer-based tracking system into place, but it didn’t get a hearing. He too is concerned that local governments could be short-changed by determining LOIT distributions from individual tax returns. Like Kauffman, Culver argues that not everybody who has worked over the course of a year files a state income tax return.

Culver spoke on the matter Saturday morning during the Goshen Chamber of Commerce Third House gathering. He explained that undocumented immigrants may not file a return and people who make less than $4,000 a year aren’t required to.

“So any of those people who paid our county tax here, and we employers mailed it to the state, we don’t get some of that back,” Culver said. “So the bill said you have to track it and send it all back.”

The state revenue department contends that it would take a change in the law to put into place what Culver and Kauffman want. Indiana code requires the department to use information pulled from individual tax returns to determine how much LOIT money goes back to local governments.

Bob Dittmer, spokesman for the department, said in an email that the department “would like to have the capability to cross check individual returns with employer submitted data, however that is simply beyond our current capability.”

He noted that the state is moving toward more electronic filing, both by individual taxpayers and employers and that with the increase in electronic filing, the state may be able to put a better tracking system in place.

“It is certainly a capability we want to develop going forward,” Dittmer said, “But not one that can be implemented without significant investment.”

Kauffman questions if that investment will ever come.

“This could negatively impact the cash that the state sits on,” Kauffman said. “So, is there going to be a motivation for the state to fix this?”

Managing editor Michael Wanbaugh and Staff Writer John Kline contributed to this report.

Text Only
Local News

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.

Last weekend (July 12) the Goshen Parks Department held its Kid’s Try-athlon to promote childhood fitness and this week (July 18) the new bicycle trail is open to the fairgrounds in Goshen, offering residents a healthy way to get to the annual agriculture exposition. Have you joined the local fitness movement?

Yes, I work at eating healthy and exercising
No, I am happy with my fitness level
Changing my diet and exercise frequency is a work in progress
     View Results
AP Video
Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Palestinians and Israeli Soldiers Clash Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kerry: No Deal Yet on 7-Day Gaza Truce Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Gaza Residents Mourn Dead Amid Airstrikes Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp Cumberbatch Brings 'Penguins' to Comic-Con Raw: Air Algerie Crash Site in Mali Power to Be Restored After Wash. Wildfire Crashed Air Algerie Plane Found in Mali Israel Mulls Ceasefire Amid Gaza Offensive