State LIT overhaul forces Fishers to plan for municipal rate-setting in 2028–29

Ritter walked officials through the expected LIT implementation timetable: the state has deferred the new municipal-rate model to 2029 and requires municipalities and counties to participate in "must" groups to recommend boundaries and rates.

He said the law tasks the state with creating a GIS officer at the Department of Revenue to draw municipal boundaries for revenue allocation, but he expressed skepticism about the department’s ability to produce accurate municipal-level income data. "The legislation includes a GIS officer hired at the state," Ritter said, describing how the boundaries will be managed. That approach creates both technical and political challenges, he said, because municipalities will likely disagree about what rate best replaces prior allocations.

Council members discussed statutory caps (1.2% municipal cap, combined caps up to 2.9%) and how countywide choices—particularly a county decision to adopt a larger fire/EMS share—could affect municipal flexibility. Ritter advised Fishers to monitor the state process and participate in regional discussions but cautioned unanimity among municipalities is unlikely.