Give Now

Legislators Reach Compromise On Business Property Tax

As the legislative session winds down, House and Senate leaders reached a compromise on the business personal property tax.

Indiana House Speaker Brian Bosma, R-Indianapolis

Photo: Brandon Smith/IPBS

Indiana House Speaker Brian Bosma, R-Indianapolis

Speaker Brian Bosma says House and Senate GOP leadership have agreed in principle to a final deal to reform the state’s business personal property tax.  The compromise leaves the tax almost entirely in the hands of local governments.

The original House plan for business personal property tax reform would have allowed local governments to eliminate the tax on new equipment purchases.

Speaker Brian Bosma says that will remain in the bill.  The original Senate plan eliminated the tax statewide on small businesses.  Bosma says that will now become a local option as well.  And he notes all of the business personal property tax adjustments wouldn’t go into effect until July of 2015.

“Some are still uncomfortable about it,” Bosma said. “It will give the legislature time to look at whether replacement revenues need to be adjusted, what they should be and I think it’s just a prudent approach.”

Senate President Pro Tem David Long says the bill will also contain continued cuts to the corporate and financial institutions taxes.  And he says the corporate tax cut could be the most significant:

“When you lay state corporate tax on top of the federal corporate tax, it’s a real deterrent to come to the United States in the first place and Indiana has done very well attracting international business,” Long said. “I think cutting our corporate tax rate to the second lowest in the country will pay dividends for us.”

Long stresses that the deal is not finalized and has to be approved by caucuses in both houses.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

View all posts by this author »

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From

Search News

Stay Connected

RSS e-mail itunes Facebook Twitter Flickr YouTube

Follow us on Twitter

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Recent Politics Stories

Recent Videos

Find Us on Facebook