INDIANAPOLIS (AP) — A coalition of local government groups are joining together to ask Indiana lawmakers to replace any money lost through a business tax cut winding its way through the Legislature.
A House Republican plan would give counties the option of eliminating their tax on business equipment. While the Senate Republican plan would cut eliminate the equipment tax for small businesses and further cut the state’s corporate income tax.
The cuts could cost Indiana’s local governments and school districts hundreds of millions of dollars. Indiana Association of Cities and Towns director Matthew Greller said Thursday that local governments have already been stretched thin because of property tax caps and a struggling economy.
Republican Gov. Mike Pence initially called for the elimination of the state’s business equipment tax, but has tempered his stance.