House Passes Tax Cut Proposal

Posted: Updated:

The Indiana House has passed a bill giving counties the option to exempt companies from the state's business personal property tax. It now heads to the Senate, which is considering its own proposal concerning the tax. The Senate bill provides an exception for companies with the lowest assessed valuations, cuts the corporate tax rate and assigns a committee to study the impact of a permanent phaseout.

The Indiana Association of Cities and Towns has launched a coalition calling for the state to guarantee replacement revenue for local governments if the tax is eliminated. Governor Mike Pence has written a letter to mayors throughout Indiana saying he doesn't want the proposal to "unduly burden" their budgets.

During this week's INside the Statehouse segment, Indiana Chamber of Commerce President Kevin Brinegar said he does not believe legislation to completely phase out the tax will pass this session.

Sources: Indiana General Assembly, Inside INdiana Business