Adams County officials met for a publicly advertised session to review major changes coming to Indiana’s local income tax system, with Auditor Jamie Bolser, who now works with the Association of Indiana Counties, outlining how the statewide reform will reshape revenue distribution and future rate decisions.
The Auditor explained Adams County’s current income tax structure, noting the county’s total rate of 1.6% remains below the statewide average. She also pointed out that adjusted gross income declined year‑over‑year, reducing total income tax revenue even though the rate itself did not change. That trend will influence how officials evaluate future rate options under the new system.
Under the reform, the maximum combined rate will be 2.9%, and Adams County is well below that threshold. A key change will allow municipalities with more than 3,500 residents — specifically Berne and Decatur — to either join the countywide municipal rate or adopt their own. If either opts out, the countywide tax base used for small‑municipal calculations would shrink.
The Auditor also described new state tools that will map income using physical addresses collected on 2025 tax returns, allowing more precise assignment of income to municipal boundaries. That data has not yet been released, and officials were told it may arrive in August.
The session included an overview of the Municipal Unit Strategic Task Force, or MUST, a new advisory body counties may convene to discuss how to divide the 2.9% rate among categories such as county services, fire and EMS, non‑municipal units, and municipal rates. Adams County has not formally convened a MUST, and the Auditor emphasized that decisions made in those meetings are not binding on councils or boards. The meetings must be public because they provide recommendations to adopting authorities.
State deadlines for Auditors have tightened, including earlier requirements for certifying net assessed values and completing TIF neutralization. The Auditor noted that debt backed by income tax must now be reported by August 1 so the state can evaluate whether adopted rates can cover existing obligations.
Officials were advised to wait until late August to form the MUST, when more complete income‑base data is expected.