IBJNews

Indiana business tax changes still worry some mayors

Back to TopCommentsE-mailPrintBookmark and Share

Some local-government officials around the state remain worried about changes Indiana lawmakers are considering to the state's property tax on business equipment.

That tax now brings in about $1 billion a year for local governments and schools. Legislators have scaled back Republican Gov. Mike Pence's proposal to eliminate the tax, countering with plans to exempt small businesses or give counties an option to waive the tax on new investments.

Terre Haute Mayor Duke Bennett, a Republican, said even those proposals concerned him because they could leave local governments with less money. Many are still struggling five years after the enactment of statewide property-tax caps.

"I've not heard anything about replacement revenue," Bennett told the Tribune-Star.

The state Senate's tax committee this week approved a package of business tax cuts that includes eliminating the equipment tax for small businesses. Republicans in the House, meanwhile, are working on a proposal that would let counties eliminate the tax on new equipment purchases.

Supporters of eliminating the tax say such a move would spur business investment in the state, creating more tax revenue overall.

Bill Waltz, a vice president the Indiana Chamber of Commerce, said the group doesn't believe all the tax revenue lost from scaling back the equipment tax needed to be replaced.

"This tax is actually more detrimental than others," he said.

Evansville Mayor Lloyd Winnecke, a Republican, is among the city leaders who've testified before legislative committees against eliminating the tax.

Winnecke said the city governments need the money to provide services and amenities in order to attract business investment, the Evansville Courier & Press reported.

"Communities who invest in their selves and residents are the ones who will ultimately thrive," Winnecke said.

Some counties with numerous factories have high levels of property tax revenue coming from the equipment tax, such as more than 40 percent in southwestern Indiana's Gibson County and about 35 percent in central Indiana's Howard County. Largely rural Brown County in southern Indiana, however, has a level of about 3 percent.

The Indiana Association of Cities and Towns will oppose both the House and Senate proposals as long as replacement revenues aren't included, said Matt Greller, the group's executive director

The association is not opposed to reducing the equipment tax, but "on the flip side, we've got to keep local government whole," he said.

ADVERTISEMENT

  • Tax Tax Tax
    I don't see the problem. Get rid of business taxes and TAX THE LITTLE GUY. It's the Hoosier way.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I am so impressed that the smoking ban FAILED in Kokomo! I might just move to your Awesome city!

  2. way to much breweries being built in indianapolis. its going to be saturated market, if not already. when is enough, enough??

  3. This house is a reminder of Hamilton County history. Its position near the interstate is significant to remember what Hamilton County was before the SUPERBROKERs, Navients, commercial parks, sprawling vinyl villages, and acres of concrete retail showed up. What's truly Wasteful is not reusing a structure that could still be useful. History isn't confined to parks and books.

  4. To compare Connor Prairie or the Zoo to a random old house is a big ridiculous. If it were any where near the level of significance there wouldn't be a major funding gap. Put a big billboard on I-69 funded by the tourism board for people to come visit this old house, and I doubt there would be any takers, since other than age there is no significance whatsoever. Clearly the tax payers of Fishers don't have a significant interest in this project, so PLEASE DON'T USE OUR VALUABLE MONEY. Government money is finite and needs to be utilized for the most efficient and productive purposes. This is far from that.

  5. I only tried it 2x and didn't think much of it both times. With the new apts plus a couple other of new developments on Guilford, I am surprised it didn't get more business. Plus you have a couple of subdivisions across the street from it. I hope Upland can keep it going. Good beer and food plus a neat environment and outdoor seating.

ADVERTISEMENT