Lawmakers reach deal to reduce business taxes

(WISH Photo/Ron Nakasone)

INDIANAPOLIS (WISH) – State lawmakers are prepared to endorse their own version of the governor’s plan to cut corporate taxes.

Mike Pence wants to do away with the business personal property tax eventually. He wants lawmakers to take a step in that direction this year, and they will.

The tax on business equipment is seen as an obstacle to economic development but the money from it goes to cities, towns and schools.

That’s been a political problem for the governor as mayors from both parties attacked his plan.

Lawmakers are now working on a plan that would give counties the option to eliminate some business personal property taxes while cutting coporate income taxes.

“I think cutting our corporate tax to the second lowest in the country will pay dividends for us,” said Sen. David Long (R-President Pro Tem), “but on top of that we’ve listened to the locals. The options, it will be very optional.”

“Not a single dollar of revenue is being lost to any city or town immediately,” said Matt Greller of the Indiana Association of Cities and Towns. “We’ve got a year and a half to look through options that make more sense, make better sense.”

The corporate income tax rate would drop from 6.5 percent to 4.9 percent under the plan. It must still be approved by the House and Senate before it would go to the governor.

Democrats still believe the state can no longer afford the tax cuts but with GOP super majorities in both houses, the plan is expected to pass.

 

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