Pharos-Tribune

Local News

April 11, 2014

Indiana tax burden ranked 22nd

State lands in middle of the pack in state and local taxes

Indiana residents’ tax burden is the 22nd highest in the nation, a recent report indicates.

The Tax Foundation, a nonpartisan tax policy research organization, reported that Hoosier residents paid an average 9.5 percent of their incomes in state and local taxes in 2011, the most recent data available. That’s just under the national average of 9.8 percent.

As the deadline for filing federal tax returns approaches, economists will be paying most attention to the ratio of taxes paid to state and local governments in the forms of property, income and sales taxes, economist Michael Hicks said.

And the reality, he said, is that differences between local areas within a state will often be greater than the differences between state averages listed in the report.

“The experience of taxation of a resident in Logansport is going to be much lower than the experience of taxation of a resident in, say, Gary,” said Hicks, a Ball State University economist.

While there are differences in taxation between states, he said the total rate doesn’t vary much.

The highest state-local tax rate reached about an average 11.9 percent in New York, New Jersey and Connecticut, while the lowest was in Wyoming at 6.9 percent, on average. However, states in 16th to 35th place had very closely matched tax burdens — Oregon’s 10.1 percent average rate put it at the 16th highest rate while Georgia’s 35th-highest average rate was slightly over one percentage point less 8.8 percent.

In contrast, Indiana’s county income tax rates alone vary from 0.3 percent in Sullivan County to over 3 percent in Jasper County, a difference of almost 3 percentage points.

Differences between states lie instead in how taxes are collected, Hicks explained. Some states collect taxes on property, income and sales, while others tax only one or two of those areas.

The benefit of taxing all three — like Indiana does — is that no one behavior is discouraged too much, Hicks went on to say.

Text Only | Photo Reprints
Local News
  • Cass Co. jobless rate falls again Cass County unemployment fell once again to 5.6 percent, state workforce data indicates, mirroring state trends of a growing workforce and what one economist suggests is growth in full-time jobs. State unemployment data released this week indicates t

    August 22, 2014

  • Police blotter: Aug. 22 Have a tip? Anyone with information on a crime is encouraged to call Crime Stoppers at 800-222-TIPS. Information leading to an arrest or conviction could lead to a reward of up to $1,000.

    August 22, 2014

  • 5-year-old boy's bathtub death under investigation MONTICELLO (AP) — State police say an investigation is underway into the death of a 5-year-old northern Indiana boy who reportedly was found not breathing in a bathtub. Sgt. Kim Riley says Ian Davidson died Thursday at an Indianapolis hospital, where

    August 22, 2014

  • NWS-PT082114 WWII Ship 2.jpg Return voyage: Logansport veteran to crew WWII ship A Logansport man and U.S. Navy veteran is getting a chance to sail on a military vessel again.Starting at the end of this month, Rex Mitchell Ashby will spend about three weeks working in the engine room of LST-325, the last fully operational World W

    August 22, 2014 3 Photos

  • AP for free? Yes — for low incomes The U.S. Department of Education awarded $28.4 million dollars Aug. 12 to schools across the nation for Advanced Placement test costs for low-income students.Indiana received just under $500,000 from the Advanced Placement Test Fee Program. That amou

    August 22, 2014

  • Round Barn Festival canceled ROCHESTER — A 44-year-long festival will end its run in downtown Rochester indefinitely, according to the Fulton County Chamber of Commerce. Executive Director Diane Spore and the chamber of commerce’s board of directors met Wednesday to discuss and

    August 22, 2014

  • Twelve Mile farming contractor files counter-suit TWELVE MILE — A local farming contractor has filed a counter-suit against a farming company that accused him of defrauding them of millions of dollars over the course of several crop seasons.A lawyer for Chad Rudicel, the Twelve Mile contractor named

    August 22, 2014

  • Police Blotter: Aug. 21, 2014 Have a tip? Anyone with information on a crime is encouraged to call Crime Stoppers at 800-222-TIPS. Information leading to an arrest or conviction could lead to a reward of up to $1,000.

    August 21, 2014

  • Firefighters investigate smoke downtown Firefighters investigate smoke smell downtown

    Firefighters with the Logansport Fire Department responded to a call of a smell of smoke in a downtown office building.

    August 21, 2014 1 Photo

  • NWS-PT082114 Opera House Now.jpg Dreaming the old dreams over DELPHI — “To dream the old dreams over is a luxury divine.”That line from the late local poet James Whitcomb Riley was mentioned several times Wednesday at a celebration in Delphi. Those who quoted the line said it was a fitting description for one o

    August 21, 2014 3 Photos

Featured Ads
More pharostribune.com
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
AP Video
Furry Roommates: Dorms Allowing Cats and Dogs Chase Rice Defends Bro-Country 'Jersey Shore Massacre' Pokes Fun at MTV Series Raw: Wash. Mudslides Close Roads, Trap Motorists DC's Godfather of Go-Go Honored Ukraine Calls Russian Convoy a 'direct Invasion' Girl Meets Her 'one in the World' Match Coal Gas Boom in China Holds Climate Risks Japan Landslide Rescuers Struggle in Heavy Rain Raw: Severe Floods, Fire Wrecks Indiana Homes Endangered Red Wolves Face Uncertain Future Raw: Russian Aid Convoy Arrives in Ukraine Okla. Policeman Accused of Sex Assaults on Duty Dominican Republic Bans Miley Cyrus Concert Raw: Israeli Air Strike in Gaza Raw: Bodies of MH17 Victims Arrive in Malaysia Attorney: Utah Eatery Had Other Chemical Burn
Parade
Magazine

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.
Poll

Does Indiana need a statewide water management plan and an administrator to implement it?

Yes
No
Unsure
     View Results
eEdition