What happened

Mayor Brandon Sakbun told the council that under current state law, a 2028 change could let Vigo County start collecting its own separate income taxes — for things like a fire territory and a library — on top of the city's existing income tax, meaning city residents could end up taxed twice or three times for the same services. He said the city is instead pushing for an option allowed under House Enrolled Act 1017, nicknamed the "MUST," where the county, city, and townships would agree on how to split one shared income tax instead of layering new ones. The mayor said the state requires a non-binding local report recommending how that split should work, and that he'll email details next week asking the council to appoint two members to help write it.

Who it affects

Anyone who pays Vigo County income tax — the report being drafted this year could shape whether city and county tax bills stay combined or grow separately starting in 2028.

The outcome

No vote was taken. This was a planning update; the mayor said he will follow up by email and ask the council to name two members to a task force.

Sources

• Mayor begins Communication from the Mayor, 30:35
• Mayor explains the MUST proposal, 32:25
• Mayor explains the double-taxation risk under current law, 33:29
• Mayor on the non-binding report to the state, 35:02
• Mayor on recruiting two council members for the task force, 35:37

Also known as: MUST tax proposal · municipal unit service tax · HEA 1017 · income tax double taxation · Vigo County income tax · double taxation Terre Haute