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First Meeting For Business Personal Property Tax Committee

By Brandon Smith

Posted September 15, 2014

A committee of lawmakers, business leaders, and state and local government officials will meet today to study the state's business personal property tax.

The legislation gives local governments the option to eliminate the tax on business equipment for new purchases and small businesses.

Study committee chairman and Senator Brandt Hershman said the committee's first meeting will look at data on the state's business tax climate to get a sense of who's paying and why.

He said it's also a chance to allow the committee members to talk.

"You know, it's a fairly diverse group of leaders, many of them not elected leaders, so they'll have a chance to weigh in on behalf of their constituencies," Hershman said. "We'll start to dig into the data because, you know, rhetoric is easy, a headline is easy, but the actual mechanics of tax policy can be pretty arcane stuff."

Terre Haute mayor Duke Bennett, a committee member, said he looks forward to an open and honest dialogue and said while he's fine with the legislation, he's worried about its future implications.

"You know, I don't know how many counties are going to do away with their business personal property tax. I've not heard anybody talking about doing that yet – I'm sure there will be some – but I'm concerned about the competitiveness," Bennett said.

Bennett said he hopes to have a productive discussion with the committee about how the legislation might pit counties and cities against each other, and the fears of some that complete elimination of the tax could be in the cards in the future.

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