The business personal property tax exemption, which lawmakers spent most of the 2014 session debating, recently became available for local governments. But counties so far aren’t taking advantage of the new tool.
The tax allows counties to collect fees on the property businesses use in their production, everything from computers to boilers.
Governor Mike Pence called it an impediment to job creation and asked the General Assembly to phase it out.
In response, Republicans eliminated the tax for small businesses and gave counties the options to stop taxing new equipment or exempt the levy on individual projects for up to 20 years.
The options have been available since July 1, but reports from the Indiana Department of Local Government Finance and the Association of Indiana Counties find that no counties have used them.
Sen. Brandt Hershman (R-Buck Creek), who authored the legislation, isn’t phased. He says the purpose of the legislation was to give local governments flexibility.
“If they haven’t done it, then it means we are being very competitive on other measures. Great. If they need to pull the trigger on other measures in the future, they can do that too,” Hershman says.
Groups opposed to the legislation – largely local government leaders – were worried about the revenue loss that would result from eliminating the tax.
