Jasper hires consultant to prepare for income tax shift in 2028

Jasper is paying for outside help now so it is not caught flat-footed when Indiana’s local income tax system shifts in 2028. The Jasper Board of Public Works and Safety unanimously approved a contract with Baker Tilly this week for up to $30,000, a move aimed at gauging how Senate Enrolled Act 1 could alter the flow of income-tax dollars among local taxing units.

City leaders are looking for an early read on what Jasper could gain or lose under the new structure before it starts affecting budgets. Baker Tilly’s municipal advisory team works with local governments, schools, utilities and economic development agencies, and the firm says SEA 1 changes the structure of Indiana’s Local Income Tax starting with the 2028 budget.

The practical stakes reach beyond bookkeeping. Local income tax revenue is one of the main streams cities use to cover day-to-day operations, staffing, infrastructure and other public services, so even a change in how the money is divided can ripple through planning. Jasper’s contract is intended to help officials sort through scenarios and decide how to prepare before the first budget cycle under the new rules arrives.

The state has already flagged the broader policy shift as a statewide issue. The Indiana Department of Local Government Finance says the 2025 legislation affects local income taxes across Indiana, while the Office of Indiana State Comptroller says county local income tax distributions are received monthly and are based on annual amounts calculated by the State Budget Agency.

For Dubois County, the numbers already in place show why local officials are watching closely. The county’s current income tax rate is 1.00% for residents and 0.55% for nonresidents who work in the county. Dubois County had an estimated population of 44,016 in July 2025, while Jasper’s estimated population was 17,279. Dubois County was organized in 1818, and Jasper serves as the county seat.

Local-government groups have said later legislation in 2026 delayed some of the income-tax changes to 2029, adding another layer of uncertainty to the timetable. Even so, Jasper’s vote signals that city officials want to be ready for whatever formula ultimately governs the county’s revenue split, because the decision could shape everything from operating budgets to long-term projects well before 2028 arrives.