Commissioner outlines SEA 1 impacts, local tax changes and a projected $50.4 million county transfer

A county commissioner told the board that the county's comprehensive financial plan — prepared by Baker Tilly — shows significant implications from SEA 1 and upcoming shifts in local income tax structure, including an anticipated transfer of nearly $50,400,000 to the county general fund when taxes are realigned.

"The county just got our comprehensive financial plan back, and because of SEA 1 and action that's gonna have to take place in '27 leading into 2028, the county's anticipated to send nearly $50,400,000 to our county general fund when our local income taxes expire," the commissioner said, noting he would supply the board with the Baker Tilly plan for review by consultants.

He described the local-income-tax timeline and potential rate options: the current combined local income tax is 2 percent; it can be reduced to 1.2 percent and the city may enact up to 1.2 percent; the county can use up to 0.4 percentage points for public safety, and combined county-plus-city rates cannot exceed 2.9 percent under the described framework. The commissioner said the board will continue to monitor state legislative action as details are finalized.

The board did not take formal action on tax policy at the meeting; the commissioner urged staff and the board’s consultants to review the Baker Tilly plan and provide guidance leading into 2027–28.