By Joe Thallemer Warsaw Mayor
Yesterday afternoon, I was included in a group of seven mayors who were called to the office of Governor Mike Pence. The purpose of the visit was for him to announce his being “open” to state replacement revenue to offset the impact of Senate Bill 1.
That bill would eliminate business personal property tax for businesses with $25,000 or less of business property. The source of that revenue was not identified. Other items in that bill, including a corporate tax reduction, were discussed.
The governor also continues to support House Bill 1001 which gives county tax councils the option to exempt all new business personal property. No mention was made of any replacement for that bill. The Indiana Association of Cities and Towns remains opposed to that bill as there is no mention of replacement revenue and does not allow cities and towns full control in decision making.
IACT has partnered with 15 different organizations representing local units. Those include counties, school corporations, public safety and libraries. We are united in opposition to the elimination of personal property tax without full state replacement. Without it, revenue replacement would be shifted to real estate taxes and payroll taxes.
While yesterday’s developments were encouraging, legislative action will ultimately decide the final form of the tax reform.