A $206 million blunder will cost a top state official his job but represents a $15 million windfall for various governments in Allen County. But that doesn't necessarily mean taxpayers will get a refund – or government employees a raise.
Nick Jordan, Allen County's chief deputy auditor, said the recent discovery of the Indiana Department of Revenue's underpayment to local authorities means Allen County will receive an additional $4.4 million in county option income taxes (COIT) and $2.9 million in county economic development income taxes (CEDIT) for 2011 and about $4.4 million in COIT and $3.7 million in CEDIT for this year. How much each unit of government receives – that includes cities, towns, the county, airport, library and others – must still be determined, Jordan said.
Schools do not receive income taxes and as a result will not be affected by the discovery, which caused Department of Revenue Commissioner John Eckart to announce his resignation at the end of the current tax season.
Link:
http://news-sentinel.com/apps/pbcs.dll/article?AID=%2F20120405%2FNEWS%2F120409758And AP via the Star Tribune has more about Eckart's resignation:
The head of Indiana's taxing authority tendered his resignation this week after it was discovered that $205 million in local income tax revenue hadn't been distributed to counties, the second such oversight in months found to have happened on his watch.
John Eckart, the Department of Revenue's commissioner, will step down at the end of the current tax season after seven years in charge of the agency, state budget director Adam Horst said at a news conference Thursday. He did not specify when, exactly, that would be.
Two other top revenue officials, Chief Information Officer Roy D. Gabriel and Chief Financial Officer Darrel Anderson, also left after the error was discovered, Department of Revenue spokesman Bob Dittmer said.
Link:
http://www.startribune.com/nation/146273355.html
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