The Herald Bulletin

Morning Update

Local Politics

November 19, 2013

GOP leaders may push to repeal business’ personal property tax

(Continued)

“One of my concerns,” he added, “is that a replacement revenue stream has not been identified.”

Among the options being considered, he said, was phasing out the personal property tax over a long enough period of time to give local communities time to adjust. Another option may be eliminating the tax on new machinery and equipment, while leaving the tax in place for existing machinery and equipment.

Sen. Luke Kenley, chair of the Senate Appropriations Committee, echoed Hershman’s concerns. “It’s a thing that a lot of legislators would like to do, but there’s the question of finding the replacement revenues for local government. And a big part of that decision is ‘Who will pay the replacement revenue?’ “

“There are a lot of tough questions raised by the issue,” Kenley said.

“So I would suggest the goal is laudable, but whether it can be achieved this year is questionable.”

The General Assembly is scheduled to open its 2014 session on Jan. 7.

Maureen Hayden covers the Statehouse for the CNHI newspapers in Indiana. She can be reached at maureen.hayden@indianamediagroup.com.

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