<p>Local governments will get more than $432,000 in tax dollars that wasn’t paid out after an audit found problems with the state’s system that stem back to the 1990s.</p>
<p>The money was collected by the state in local income taxes, but not distributed to local governments due to issues with the state’s system.</p>
<p>In total, the state is giving local governments more than $21.6 million, according to the Indiana Department of Revenue.</p>
<p>For local governments, the amounts range from more than $100,000 to a few thousand.</p>
<p>The state is set to distribute the money this week, said Emily Landis, state department of revenue spokeswoman.</p>
<p>Local officials are not yet decided on how to use the money, but the possibilities range from road work to added employees.</p>
<p>In Franklin, which is set to get nearly $70,000, the money could be used for road improvements, drainage improvements or tree trimming. But the money could also be used for the engineering costs of a new amphitheater the city is considering after businesses are town down off Jackson Street, where the city has been working with owners to get them out of the floodplain, Mayor Steve Barnett said.</p>
<p>The White River Township Fire Department could use the more than $27,000 it is expecting to hire new staff, Fire Chief Jeremy Pell said.</p>
<p>The fire department has been working to convert part-time positions to full-time and the money could help with that, he said.</p>
<p>An audit by the state discovered the issue as part of an initiative by Gov. Eric Holcomb to improve customer service and accurate and timely distributions to local governments. The state is installing a new information technology system, and the state department of revenue did a full audit to make sure its system was properly distributing money, Landis said.</p>
<p>That audit found two issues: the state’s system did not recognize some bar codes on tax returns and sent the money to a holding account instead of the local governments, and some returns were not processed properly when taxpayers filed late, Landis said.</p>[sc:pullout-title pullout-title="By the numbers" ][sc:pullout-text-begin]<p>Here is a look at what local governments will receive in a one-time payment from the state:</p>
<p>Total;$423,951</p>
<p>Johnson County;$119,854</p>
<p>Franklin;$69,779</p>
<p>Greenwood;$77,488</p>
<p>Bargersville;$11,346</p>
<p>Edinburgh;$11,652</p>
<p>New Whiteland;$4,893</p>
<p>Prince’s Lakes;$1,804</p>
<p>Trafalgar;$1,668</p>
<p>Whiteland;$3,521</p>
<p>Center Grove Schools;$10,425</p>
<p>Clark-Pleasant Schools;$12,210</p>
<p>Edinburgh Schools;$732</p>
<p>Franklin Schools;$11,402</p>
<p>Greenwood Schools;$3,826</p>
<p>Nineveh-Hensley-Jackson Schools;$1,734</p>
<p>Bargersville Fire Department;$15,412</p>
<p>White River Township Fire Department;$27,118</p>
<p>SOURCE: Indiana Department of Local Government Finance</p>[sc:pullout-text-end]
