When was the Public Safety LIT rate established in Tippecanoe County?
The Public Safety LIT rate was adopted in 2019, and residents began paying this tax in January 2020.
What's the current Public Safety LIT rate?
The rate has remained unchanged since its inception at 0.18% of Tippecanoe County residents' adjusted gross income (AGI). That means that a household with an AGI of $100,000 pays $180 per year.
Who gets to decide the tax rate?
The Local Income Tax (LIT) Council, composed primarily by the County Council & the City Councils of Lafayette & West Lafayette (along with the Town Councils of Battle Ground, Clarks Hill, Dayton, Otterbein, and Shadeland) gets to decide the Public Safety Tax rate. The County Council represents the votes of the unincorporated portions of Tippecanoe County in this council. Due to our population ratios, any decision of the LIT Council requires the affirmative vote of two (2) of its (3) primary member councils: Tippecanoe County Council, Lafayette City Council, and West Lafayette City Council.
Which units get access to these funds?
State law states that the county, as well as incorporated towns & cities are automatic recipients of money collected from the Public Safety Tax. Township fire departments, fire protection districts, fire protection territories, and volunteer fire departments may apply for an allocation of revenues collected from this tax. However, the LIT Council is not obligated to approve the requested allocation.
Do all County residents pay this tax, even if they do not reside in incorporated towns or cities?
Yes, all residents of Tippecanoe County pay this tax.
How much revenue has the Public Safety Tax collected?
From 2020 to 2026, over $72 million has been collected by the Public Safety Tax, including $13 million in 2026.
How much money are units holding in reserve from the Public Safety Tax?
At the end of 2025, units in Tippecanoe County were holding over $18 million in reserves, while continuing to deny WTFD's request for an allocation of revenues from the Public Safety Tax. That number is expected to jump to over $20 million by the end of 2026. Recipient units are holding over a year and a half's (1.5 years) worth of receipts in reserves.
How much interest are units earning off of their Public Safety Tax reserves?
Units are estimated to be earning a total of about $700,000 in interest this year alone from their Public Safety Tax reserves! Unfortunately, these interest earnings are usually funneled into the units' general funds, where it's not guaranteed to serve a Public Safety purpose.
I'm concerned about WTFD's inability to access Public Safety Tax revenues. What can I do?
West Lafayette's City Council approved a resolution to allocate funds from the Public Safety Tax to WTFD, which is the first real sign of progress in four (4) years of making requests. We believe that if elected officials hear from our residents, they may be swayed to support WTFD's efforts to access Public Safety Tax revenues. To help us achieve that goal you can sign our petition, email members of the County Council & Lafayette City Council, and you can provide public comment at their upcoming meetings in July & August.