FORT WAYNE, Ind. (WOWO) – A public hearing was held Tuesday night on a proposed increase in local income tax.

This tax increase is in support of the Riverfront Development project, along with a few smaller-scale projects throughout the community.

“Currently, the Allen County tax is at 1.35% and they’re looking to increase it by .15% to fund the Riverfront project,” said Mike Albertson, with Tradewell Tax and Financial.

City Councilman John Crawford proposed the increase, and says he was not surprised with last night’s meeting.

“The public hearing last night was very good, it was very civil, very respectful, good discussion,” Crawford says. “26 people said they were for it, 13 against it.”

So who is actually paying for the local income tax?

Albertson spoke with WOWO news Wednesday, and explained that employers have to take out taxes for the county that you live in.

“The Allen County tax is taken out of your paycheck,” Albertson said. “So as an employer here, in Fort Wayne, I’m required to withhold that tax. But it’s all based upon where you live.”

If you live in Allen County, you will pay the income tax, but if you live in a neighboring county and just work in Allen County, you will not be charged.

A second public hearing will take place on July 11 to continue the debate. You are invited to attending the hearing at Citizens Square.