Legislation the governor signed gives local governments the option of eliminating the business personal property tax.
Legislation lawmakers passed Thursday gives local governments the options of eliminating the tax on business equipment.
As the legislative session winds down, House and Senate leaders reached a compromise on the business personal property tax.
Gov. Mike Pence has been pushing to reduce or eliminate the business personal property tax, which taxes business equipment.
Cannelton has lost more than half of its local tax revenues to the state's property tax caps. Proportionally speaking, only three districts have lost more.
The report from the Indiana Fiscal Policy Institute says the elimination of other taxes on personal property would make an equipment tax cut difficult.
Governor Pence refuses to take a stance on the two versions of the business personal property tax reform proposed by the Indiana House and Senate.
"I don’t want us to be regarded as 'the branch plant state,'" says the Henry County Council president – who also works for the county's largest manufacturer.
The caps saved Indiana property owners a total of $704 million on their tax bills last year. But some local governments really miss those revenues.
The tax on business equipment brings in about $1 billion a year that goes toward local governments.