Governor Eric Holcomb unveiled his 2022 legislative agenda Monday, highlighted by a goal to eliminate the 30% business personal property tax on new equipment. This would indeed enable Indiana to compete with neighboring states with lower taxes.
The measure is now part of House Bill 1002 – authored by House Ways and Means Chairman Rep. Tim Brown (R-Crawfordsville) and Rep. Dan Leonard (R-Huntington) – and the Indiana Chamber of Commerce endorses this as well as other provisions in the bill. In fact, phasing out the floor by exempting newly acquired property and equipment has been a specific proposal of the Chamber’s for several years and various efforts to reduce personal property tax have been underway for two decades.
“Gov. Holcomb is right on target with this priority and we’re pleased to support it,” praises Indiana Chamber President and CEO Kevin Brinegar. “This has been one aspect of Indiana’s tax code that’s difficult for businesses and this will help smaller companies – especially manufacturers.”
With gradual implementation, impact on local property tax revenues will likewise be gradual – and marginal.
“We support providing a means to replace any lost revenues so that the transition to this better, more competitive tax policy can be implemented with minimal impact to the local governments that currently depend on this small segment of their tax base,” Brinegar concludes.