A tax increase voted on by Daviess County Fiscal Court goes into effect Wednesday. The increase will affect residents and businesses who live outside city limits.
According to county commissioners and County Judge-Executive Al Mattingly, this occupational tax increase is the result of less revenue and higher expenses that have taken a toll on the County’s budget.
Mattingly said the increase will be used to pay for a number of new expenses that have accumulated over the last couple of years, putting Fiscal Court at a nearly $3 million dollar deficit for the 2019-2020 fiscal year.
Mattingly said the county commissioners and himself weren’t fans of raising taxes, but that the move would be necessary in order to keep Daviess County from receiving a negative credit rating from agencies who assess whether or not the County remains in good financial standing.
“Not one person up here relishes the idea of increasing taxes — we’re all affected by these increases,” Mattingly said. “But in order for us to do our job properly — for all the citizens of Daviess County to be able to look at the revenue side — I can tell you we scrutinize every expense, we analyze every expense and I think we do a good job of watching over the taxpayers’ dollars.”
Mattingly said the current shortfall experienced by the County could likely be taken care of through its reserves. The current reserves would only hold the County over for a year, maybe two.
This tax increase will take place in two parts, beginning in a few days on Jan. 1. An additional .35 percent increase will be added, followed by a .30 percent increase in January 2021.
