Indiana counties will have an opportunity to give businesses a break on their personal property tax starting next year.
Governor Mike Pence wanted Indiana's tax on business equipment completely eliminated. But when local government leaders voiced their concerns about the potential lost revenue, the General Assembly responded by passing Senate Bill 1.
The new law allows counties to offer:
A personal property tax exemption for newly purchased business equipment
An exemption for small businesses with less than $20,000 worth of equipment
A 20-year "super abatement" for some economic development projects.
The tax cuts and super abatement options don't go into effect until July 2015. This gives a Blue Ribbon Commission, which was created by SB 1, the time to conduct a broad review of the state's business tax climate to see if more legislative changes are needed.