Washington Common Council Special Meeting on Local Income Tax Changes: October 19, 2026\n\nThe Washington Common Council held a special meeting on October 19, 2026, with Clint Lamb from Accelerate Indiana Municipalities (AIM) to discuss upcoming changes to the local income tax (LIT). Councilmembers Brown, Selby, Dahl, and Showalter were present; Lunsford, Campton, and Emmons were absent. The discussion focused on the MUST (Municipal Unit Strategic Task Force) process, the new LIT structure under House Enrolled Act 1210, and the city's strategy.\n\n### Public Comments & Testimony\n- No formal public comment period was held. Township trustees and county officials were present and contributed to the general discussion.\n\n### Discussion Items\n- Legislative Background: Clint Lamb explained that Senate Enrolled Act 1 (2025) aimed to provide property tax relief, prompting AIM to seek a role for municipalities. House Enrolled Act 1210 (2026) delayed the LIT restructuring from 2028 to 2029 and allowed for more local input.\n- MUST Process: Lamb noted that the MUST task force was designed for county-level dialogue, with findings due to the DLGF by November 2, 2026. Daviess County did not establish a formal MUST task force, though an informal discussion was held.\n- New LIT Structure: The new structure includes four potential buckets: 1.2% for County Services, 0.4% for Fire/EMS, 0.2% for Non-Municipal Units (townships, libraries), and 1.2% for Municipal Services (total cap of 2.9%). Distribution will shift from a levy-based to a population-based model.\n- City of Washington’s Position: Councilmember Selby reported that specific revenue projections from the Department of Revenue are not yet available. Councilmember Brown noted that a prior informal discussion with the county did not result in a formal MUST task force. The council expressed that preliminary AIM data shows a 1.2% municipal-only rate would not be sufficient to cover losses, and the city currently favors opting into the countywide municipal rate.\n- Uncertainties: Lamb stated that final AGI figures from the Department of Revenue are still pending. He also noted that schools are excluded from the new structure and the business personal property tax is phasing out, creating additional revenue gaps.\n\n### Key Outcomes\n- No Formal Action: The council took no votes or binding decisions during this informational session.\n- Recommended Next Steps: Lamb urged the city to send a narrative report to the DLGF and to begin formal discussions with the Daviess County Council immediately, despite the absence of a formal MUST meeting.\n- AIM Support: AIM will provide the city with a detailed spreadsheet to model various tax rate scenarios and their impacts.\n- Future Collaboration: The council expressed a willingness to continue working with the county on a unified municipal rate strategy, warning against delaying substantive negotiations.