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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowLawmakers talked at length about taxes at a policy-focused conference this week in Indianapolis, offering a glimpse into how the issue could take priority during the legislative session that begins in earnest in January.
Lobbyists, fellow policymakers and other attendees sat in on several topical panels at Dentons 33rd Annual Legislative Conference where leading lawmakers previewed their thinking about education, economic development, health care and other policy topics.
A legislative committee studied property taxes over the past two years, and Senate Tax and Fiscal Policy Chair Travis Holdman, R-Markle, said his caucus is ready to introduce between 12 and 15 bills that will affect property taxes.
Holdman said Sen. Chris Garten, R-Charlestown, will carry a bill to eliminate the minimum tax businesses pay for new equipment, also known as the 30% depreciation floor. Businesses pay a tax of at least 30% of the purchase price on machinery and equipment, even when that equipment is several years old.
Holdman said Garten’s bill would eliminate the 30% floor over two or three years.
Gov.-elect Mike Braun’s property tax proposal included a provision to decrease the depreciation floor to “market value.” A specific increased or decreased amount has not been publicized.
Braun’s plan would also cap property tax bill increases to 2% annually for seniors, low-income Hoosiers and families with children under 18. Increases would be capped at 3% for all other property owners. Increasing taxes above those levels would require a referendum.
Also under Braun’s plan, homeowners with an assessed value of more than $125,000 could reduce that value by 60%. Homeowners with an assessed value under $125,000 could use the 60% deduction, plus the current standard deduction of $48,000.
“I think we will land somewhere in the middle between what Sen. Braun wants and what the Legislature has in mind and what our constituents are telling us,” Holdman said.
Property taxes fund local governments. Holdman said local governments could raise income taxes s to recoup funds lost to property tax cuts. Republican lawmakers have said that would give local governments a more balanced revenue stream that isn’t as dependent on one tax over another.
Rep. Greg Porter, the ranking Democrat on the budget-writing House Ways and Means Committee, warned that transitioning local government to a different or smaller revenue stream could make for a “bumpy landing.”
On other taxes, Holdman said he plans to introduce a bill to reduce the individual income rate if state revenues exceed 3% year-over-year for two years. Increasing the state’s cigarette tax was also discussed at the conference.
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So, shift more of the tax burden away from extremely wealthy large land and business owners and more onto the middle class and the poor, all while gutting municipalities of Indiana and hurting their ability to carry about basic city/town functions.
This policy sucks.
This outcome was quite clear. Republicans have made clear how they see Indiana, a depreciating old state not worth investing in. Take the money and run.
It’s also what happens when you have an opposition party unable to clearly articulate to citizens what while they want their property taxes cut, if they vote Braun, it’s going end up hurting the services they count on. McCormick might have had a better plan. She never got it out there to people and sold it.
Republicans know full well that very few locals are going to have the appetite for income tax increases. Legislators love claiming they cut taxes, knowing all they’re really doing is making everything someone else’s problem.
For any property owner with a mortgage the property tax is really a wealth tax on debt to the wealthy .