[The Brazil Times nameplate] Partly Cloudy ~ 60°F  
High: 58°F ~ Low: 45°F
Wednesday, May 4, 2016

Found tax money explained

Friday, April 20, 2012

Clay County recently received $778,835.32 from the state of Indiana after state officials found $300 million.

Clay County Auditor Mary Jo Alumbaugh received an e-mail from Settlement Director Dan Bastin, Auditor of State's Office, stating, "The department of revenue provided the state budget agency new information regarding the calendar year 2009 and 2012 local option income tax collections. The new information materially affects the previous certified calendar year 2011 and 2012 CAGIT (County Adjusted Gross Income Tax), COIT (County Option Income Tax) and CEDIT (County Economic Development Income Tax) distributions."

The state processed distributions to bring the 2011 and 2012 CAGIT year to date distributions current with the recertified amounts. The distributions were in Clay County's bank account by Tuesday, April 10.

Clay County received $517,833 for 2011, with $1,467 in interest, as well as $259,371.32 for the first four months of 2012, with $164 in interest.

Alumbaugh explained to The Brazil Times how the money is being distributed.

The jail CAGIT fund, which goes toward paying off the jail bonds, received $57,699.83 for 2011 and $28,837.28 for 2012.

Each township received a certain amount of money, as well as the city of Brazil and the other surrounding towns including Carbon, Center Point, Clay City, Knightsville, Staunton and Harmony.

The Clay Community Schools received $22,077.29 for 2011 and $10,471.50 for 2012.

The Local Option Income Tax (LOIT) fund received $173,100.06 for 2011 and $86,511.65 for 2012.

The Clay County General Fund received a total of $233,125.50 for both 2011 and 2012.

"We had previously been told that our CAGIT revenue was not equal to what they had been dispersing to us, but now with this -- what they call catch-up -- not only is our revenue equal to, it has exceeded the amount they have distributed," Alumbaugh said. "So now we're in a positive balance rather than a being in a negative balance with the state department of revenue."

According to the Associated Press (AP), Governor Mitch Daniels said the money was collected but never transferred to the state's general spending account, which lawmakers use to allocate funds to various programs and departments. The issue arose in the state's e-filing tax system for companies. Money collected through that system wasn't moved to the general spending account. The problem started in the 2007 budget year and wasn't found until after the end of the 2011 fiscal year.

As more companies started using the e-filing system, the amount of money that went untouched increased. The amount missed in the first year was $4.7 million, but by the most recent budget, the state had left untouched $140 million in corporate tax receipts -- an amount equivalent to roughly 10 percent of expected collections, according to the AP.

An auditor in the Indiana Department of Revenue discovered the problem late last month while tracking a $25,000 tax check through the state's tax collection system.

The following is a list of where the monies Clay County received from the state for 2011 and the first four months of 2012 were distributed.

* Clay County General Fund -- $233,125.50,

* Jail CAGIT Fund -- $86,537.11

* Brazil Township -- $5,340.09,

* Cass Township -- $802.82,

* Dick Johnson Township -- $1,743.75,

* Harrison Township -- $2,171.46,

* Jackson Township -- $1,270.18,

* Lewis Township -- $1,237.57,

* Perry Township -- $1,090.71,

* Posey Township -- $3,689.79,

* Sugar Ridge Township -- $961.14

* Van Buren Township -- $4,112.33

* Washington Township -- $501.20

* Brazil City -- $104,851.32,

* Carbon -- $720.60,

* Center Point -- $937.95,

* Clay City -- $9,744.10,

* Knightsville -- $2,399.66,

* Staunton -- $1,555.06,

* Harmony -- $3,708.24,

* Clay Community Schools -- $32,548.79,

* MSD Shakamak -- $3,489.96,

* Brazil Library -- $15,508.36,

* Poland Fire Territory -- $1,175.92, and

* LOIT -- $259,611.71.

Note: The nature of the Internet makes it impractical for our staff to review every comment. If you feel that a comment is offensive, please Login or Create an account first, and then you will be able to flag a comment as objectionable. Please also note that those who post comments on thebraziltimes.com may do so using a screen name, which may or may not reflect a website user's actual name. Readers should be careful not to assign comments to real people who may have names similar to screen names. Refrain from obscenity in your comments, and to keep discussions civil, don't say anything in a way your grandmother would be ashamed to read.

Thank you Brazil Times for all the good information. :)

-- Posted by Combat VET on Sat, Apr 21, 2012, at 10:38 AM

The auditor that found this should get a raise and I think someone or more than one person should be held accountable for letting this happen in the first place.

-- Posted by indianamama on Mon, Apr 23, 2012, at 3:55 PM

Mitch Daniels is the worst Governor the state of Indiana has ever had. Stripe my veterans benefits and I will never vote for a tea bag person as long as I live

-- Posted by Combat VET on Wed, Apr 25, 2012, at 11:19 AM

Respond to this story

Posting a comment requires free registration: