Give Now

Local Leaders Ask Lawmakers To Oppose Business Tax Reduction

The tax on business equipment brings in about $1 billion a year that goes toward local governments.

Association of Cities and Towns Executive Director Matt Greller

Photo: Claire McInerny

Association of Cities and Towns Executive Director Matt Greller explains why local government officials are opposed to reducing or eliminating the business personal property income tax.

A coalition of local leaders from around Indiana, including city, county, school and public safety officials, is uniting to oppose legislation reducing or eliminating the state’s business personal property.

They’re calling it the “Replace, Don’t Erase” coalition. Sixteen statewide organizations led by the Indiana Association of Cities and Towns calling on the General Assembly to halt any legislation cutting the business personal property tax without fully replacing the lost revenues.

The tax, a levy on business equipment, brings in about $1 billion a year, all of which goes to local governments. There are two proposals dealing with the tax, one in the House and one in the Senate.

Senate President Pro Tem David Long says the legislature will find a way to blend them.

“The most important thing in my eyes right now is not to handicap local government,” he says. “We’ve been tough on them with our property tax caps – intentionally so.  It’s requiring them to innovate, to streamline their services and what not.”

The House version would allow local governments to eliminate the tax on new equipment.  The Senate version eliminates the tax for small businesses.

Association of Cities and Towns Executive Director Matt Greller says neither is sufficient.

“It’s kind of like asking my kid if he’d rather be grounded for a month or two weeks,” he says. “With a gun to my head, I would prefer Senate Bill 1.”

But Greller says despite the Senate bill’s smaller impact on local communities, without replacement revenue it’s still unacceptable.

Brandon Smith

Brandon Smith 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