INDIANAPOLIS – On Thursday, the Indiana Senate signed off on a controversial measure that cuts Indiana’s corporate and financial institution tax rates and opens the door for additional cuts to the business personal property tax rate. Proponents of Senate Enrolled Act (SEA) 1 touted the measure as an economic development tool, however Senate Democrats expressed concern over the job creation performance and cost in lost revenue of previous and future tax cuts – pegged at more than $5.8 billion through 2023.
“In this decade, the result of these cuts will force us to make some difficult choices: like choosing between funding our schools or repairing roads,” said State Senator Karen Tallian (D-Portage). “Tax climate is only part of the economic development equation. I’m disheartened we have not focused more on investing in education and infrastructure improvements.”
SEA 1 authorizes county governments to fully exempt personal property tax levied on businesses with less than $20,000 in acquisition costs, allows local governments to award up to 20 years of tax abatement on business personal property and permits local governments to exempt taxes collected on any new business personal property. The initiative may also shift the expense of cutting or abating business personal property taxes onto homeowners paying property taxes.
“A strong business tax climate doesn’t help Hoosiers if those tax cuts don’t translate into jobs or more money in the pockets of Hoosier families,” said Senator Democratic Leader Tim Lanane (D-Anderson). “We have to go beyond corporate giveaways and focus on building up all Hoosiers.”
The final conference committee report for SEA 1 was approved by the Senate on a vote of 36-12, and the act will now be sent to the governor for his signature, veto or passage into law without his signature.
For more information on the Indiana Senate Democratic Caucus agenda or other State Senate business, call 1-800-382-9467 or visit www.senatedemocrats.in.gov.