Accounting Error Shortchanges Counties $206M


(Indianapolis, Ind.) – Indiana’s second multi-million dollar accounting error in five months is leading questions to be asked at the state Department of Revenue.

 

Officials announced Thursday that a programming error was discovered with the state’s distribution of local option income tax to counties. The amount: $205 million.

 

Ninety-one of Indiana’s 92 counties – Lake County does not collect LOIT – have been receiving about $13 million per month less than they should have since January 2011.

 

“The report failed to capture the amounts due to counties from individual taxpayers who separated their state and county estimated payments when remitting quarterly income tax estimates. Consequently, local option income taxes were under-distributed and State General Fund revenues were overstated,” a statement from the OMB said.

 

Governor Mitch Daniels directed the OMB to immediately distribute the funds to each county, with interest.

 

According to data from the state budget agency, Dearborn County will receive $584,198.33. Franklin County will get $638,581.98; Ripley County $672,479.72; Ohio County $75,830.20; and Switzerland $92,959.33. The amounts are without interest.

 

The OMB said a similar error occurred in 1998.

 

The error was found by the DOR’s Office of Management and Budget. The department has hired an outside auditor to review its operations.

 

Thursday's discovery means the Department of Revenue has misplaced over a half-billion dollars in five months.  In December, $320 million in corporate taxes paid by electronic check were found sitting in an account since 2007.

 

LINKS:

 

Ind. Finds Computer Error, $300M

More from Local News

Events

Batesville Middle School 7th Grader Has Artwork Displayed on Main Street

The mural will be on display for a few months until the last entry for the 2023-24 school year will be installed.

RCCF Announces Establishment of Knisley Nursing Scholarship

The scholarship will support a student from Ripley or Franklin County who is pursuing a bachelor’s degree as an RN.

Area High School Bands, Dance Team to Participate in Reds Opening Day Parade

Retired radio personality Jim Scott will serve as an Honorary Grand Marshal.

Local Sports Report - March 26, 2024

Milan Softball got their 2024 season off to a great start.

Local Sports Report - March 25, 2024

South Dearborn Softball started the new season with a hard fought win.

Batesville Shines at Hoosier State Relays

Several local schools were represented at the indoor event on Saturday.

On Air

Chelsie playing
Carly Pearce - Closer To You

George Birge Mind On You 7:36
Darius Rucker Beers & Sunshine 7:32
Dwight Yoakam Guitars, Cadillacs 7:28
Andy Griggs You Won't Ever Be Lonely 7:23