The Jasper Common Council learned the city would be receiving over $818,000 from the state due to the recent state error.
The state claims a programming error caused $203 million in collected economic development taxes to be withheld from 91 of the state’s counties. The state has redistributed the money to the counties and the amounts received include 2011 collected taxes as well as the first quarter of 2012. Additionally the funds the county is expected to receive for the rest of the year have risen with the correction.
The total amount that Jasper received is $818,440.00 in County Option Income Tax (DOIT) and Economic Development Income Tax (EDIT). Jasper Clerk-Treasurer Juanita Boehm explained the amount is slightly less than the $900,000 that the city was shorted in funds from the state in 2010, which caused major decreases in budgeting by city departments.
Boehm told the council that the COIT money has been moved to the General Fund, while the EDIT money remains in the EDIT fund on the city’s books. The state has told local governments that they will not be penalized with higher taxes for having the extra money on hand in the future.
Boehm recommended that the council wait and see what happens with the city budgeting process for 2013 and where best to use the money based on need.