February 2022 – The Indiana House of Representatives passed HB1002, an extensive bundle of tax cuts worth over $1.3 billion in annual savings. Fiscal Leaders are wary about tax policy in a non-budget writing session causing the plan to face uncertainty in the Senate. Included in the HB1002 is tax relief on capital investments including business personal property which makes up 15% of property tax collections.
According to Inside Indiana Business, “To manufacturers and other business interests, personal property tax is already a form of double-taxation (after paying sales taxes on new personal property) and the 30% floor keeps tax bills artificially high as equipment ages towards obsolescence. But for local governments, losing the floor cuts into revenue capacity that barely keeps up with costs.”
As this bill moves to the Indiana Senate, Michigan’s personal property tax system is positioned to undergo a restructuring process to replace the current system by 2023 that could take a decade to fully infiltrate and provides a potential roadmap and lessons learned for Indiana.
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