Gov. Eric Holcomb will push lawmakers to reduce the tax burden on Indiana businesses in the upcoming legislative session. And he’s open to a discussion on other tax cuts – but not eager to do so this year.
(Brandon Smith/IPB News)
Holcomb unveiled his modest 2022 agenda Monday.
Indiana’s business personal property tax is a levy on business equipment. Holcomb’s proposal would essentially eliminate a minimum level that all businesses pay for that tax on new equipment. He said it will help Indiana better compete for companies to move to the state.
Reducing that tax will cost local governments millions in revenue. Holcomb said the state should ensure those governments don’t lose out.
“Ours is on new equipment, so it wouldn’t be realized for years to come and it would give us time to actually understand what that price tag is,” Holcomb said.
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When it comes to using the state’s $4 billion surplus on anything else this year, Holcomb is a no.
Legislative leaders have discussed the similar idea of eliminating what’s called the “30 percent depreciation floor” of the business personal property tax – but on all equipment, which would cost local governments about $170 million a year right away.