The repeal of Indiana’s inheritance tax in the new two-year budget affects more than state coffers. Counties received the revenue as well.
In Tippecanoe County, as much as $500,000 has been collected in some years.
Treasurer Bob Plantenga says the tax was already being phased out before the complete elimination, which is retroactive to January. He says there will be an impact on the county’s general fund.
“I usually budget $400,000 of revenue for the General Fund, and you know that is certainly a few departments’ worth of expenditures that we will not be receiving.”
Plantenga says his office continues to see some tax receipts from deaths that occurred last year. He says that’s totaled more than $100,000 since the first of January. Plantenga says the current county budget had planned for a slight decrease in the tax due to the phase out, but not doing away with it completely.
“$400,000 out of our thirty-some million dollars, you know that’s not significant, but $400,000 is quite a bit of money.”
He says while the tax elimination is effective January 1, he expects to collect some revenue still owed from last year.
Tippecanoe County Commissioner Dave Byers thinks the several hundred thousand dollars lost won’t have a huge impact long-term, because it was known the revenue stream was going away.
“When you’re dealing with a $36-37 million budget and you’re talking two-or-three-hundred thousand, I think we’re OK.”