Marshall County's Municipal Unit Strategic Taskforce (MUST) to hold public meeting on Local Income Tax changes

The Marshall County Municipal Unit Strategic Taskforce, known as "MUST," will hold a public meeting on Wednesday, September 16th, at 1:30 p.m. to discuss the county's maximum local income tax rate under Indiana Code 6-3.6-6-2(b)(1) and 6-3.6-6-2(b)(4).

The meeting will be held in Room 203 of the Marshall County Building, 112 W. Jefferson Street, Plymouth. It will also be livestreamed on YouTube at www.youtube.com/@MarshallCountyIN. Attendees may participate in person or view the meeting online through an internet browser.

The meeting is the result of a series of changes to Indiana's local tax structure passed by the General Assembly over the past two legislative sessions.

In 2025, the legislature passed Senate Enrolled Act 1 (SEA 1), which overhauled local property and income taxes. The changes prompted continued discussion during the 2026 legislative session, resulting in House Enrolled Act 1210 (HEA 1210). Among its key provisions, HEA 1210 delayed the effective date of local income tax (LIT) changes to 2029, allowed all cities and towns to opt into the countywide municipal services rate, and adjusted the formula for distributing the countywide service rate

HEA 1210 also created Municipal Unit Strategic Taskforces (MUST) in each county, providing a framework for towns, cities, and counties to work together and plan for the new LIT changes.

The purpose of MUST is twofold: to allow county and municipal officials to discuss their LIT distribution needs, and to allow each county to report its findings back to the General Assembly. Although agreements reached at MUST meetings are nonbinding, the state's municipal advocacy organization, Aim, encourages all units to participate. The meetings are intended to inform further discussions in 2027 on the best way to split LIT rates.

Improving and clarifying the new LIT structure remains a top Aim legislative agenda item, as the organization works to ensure LIT distribution is fair and significant enough to offset some of the property tax cuts enacted under SEA 1.

Marshall County will be modifying the current .25% Special Local Income Tax that has been used to pay the bonds for the construction of the jail.  The bonds will be paid off in February 2027, but the County Council will keep the Special LIT in place, with .20% being used for jail operations and the .05 being used as a Public Safety LIT for 911 Dispatching. 

In short, the September 16th meeting is part of a state-mandated planning process designed to help Marshall County's local governments prepare for coming changes to how local income tax revenue is collected and distributed — changes that will take effect in 2029 and could significantly affect municipal budgets.