ELPERS OPPOSES PROPOSED INDIANA STATE LEGISLATURE TAX BILL

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Justin Elpers Evansville City Council 5th Ward Rep Opposes TAX Bills By The Indiana State Legislature.  

by 5th Ward Evansville City Councilman Justin Elpers

At this evening City Council meeting I will be addressing HB 1002 & SB 378.  These proposed bills by the Indiana State Legislature would phase out portions of the Business Personal Property Tax.  

Both bills do not offer a replacement for the lost revenue.  If passed, local municipalities will find it harder to fund their essential budgetary needs.   

Since the proposed legislation would have an adverse effect on the essential budgetary needs of the City of Evansville, tonight I shall be asking City Council for their support in sponsoring a Resolution asking our state legislature to vote down HB 1002 & SB 378.  

Link:  HB 1002

https://iga.in.gov/legislative/2022/bills/house/1002

Link:  SB 378

https://iga.in.gov/legislative/2022/bills/senate/378

POSTED BELOW IS A COPY OF THE RESOLUTION THAT EVANSVILLE CITY COUNCILMAN JUSTIN ELPERS WILL BE PRESENTLY TO THE CITY COUNCIL THIS EVENING.

RESOLUTION OPPOSING LEGISLATION REGARDING THE BUSINESS PERSONAL PROPERTY TAX

WHEREAS, the Indiana legislature proposed changes to the depreciation floor and other aspects of Indiana’s business personal property tax as a priority in their 2022 legislative agenda; 

WHEREAS, the Common Council of Evansville, Indiana, opposes all legislation that contemplates eliminating any portion of the personal property tax without permanent FULL replacement guaranteed by the state; 

WHEREAS, any contemplated revenue replacement must be a source of revenue that continues to grow over time just as a property tax base would in order to allow growing communities to meet the demand for services; 

WHEREAS a permanent state tax credit applied to ALL proposed business personal property tax reductions, holidays, phase-outs, etc., could eliminate unnecessary burden on local government in order to continue building healthy Indiana communities; 

WHEREAS, the personal property tax is a relied upon method for funding local government;

WHEREAS for taxing units not at the caps, a reduction in the tax base could result in property owners paying more in residential property taxes and for those communities at the caps, any phase-out of the business personal property tax means a loss in revenue for local units of government; 

WHEREAS, Business Personal Property Tax distributions to local units of government exceed $1 billion;

WHEREAS, significantly reducing the business personal property tax will have a dramatic impact on Evansville’s ability to repay tax increment financing bonds because a significant portion of the revenue backing the bonds comes from personal property;

WHEREAS, the Tax Foundation 2022 State Business Tax Climate Index lists Indiana as number one ranking for property tax; and

WHEREAS Indiana consistently ranks in the top states with an attractive business tax climate, yet a community’s quality of life is an increasingly greater influencer of business relocation and growth decisions.

NOW, THEREFORE, BE IT RESOLVED by the Common Council of Evansville, Indiana, that we oppose all legislation that contemplates eliminating any portion of the business personal property tax without full and permanent replacement guaranteed by the state.

Passed and adopted by the Common Council of the City of Evansville, Indiana, on the ___ day of __________________, 2022, and signed by the President of the Common Council and attested by the City Clerk.

 

____________________________________

Zac Heronemus, President

Common Council of Evansville, Indiana

I attest to the passage and adoption of the foregoing by the Common Council of the City of Evansville, Indiana, on the above date.

____________________________________

Laura Windhorst, City Clerk

City of Evansville, Indiana

Having examined the foregoing ordinance, I do now, as Mayor of the City of Evansville, Indiana, approve said resolution and return the same to the City Clerk this _____ day of ___________________, 2022.

____________________________________

Zac Heronemus, Mayor

City of Evansville, Indiana

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