From the Northwest Indiana Times:
An information technology company plans to launch a cloud computing-based data service for health care providers, but the taxes on computer servers are higher in Indiana than in most surrounding states.
Chesterton-based GGNet Technologies would pay an estimated $700 in taxes to buy and install a computer server at a doctor's office in Wisconsin, but the tax bill would be $1,820 in Indiana, owner Joseph Grossbauer said. The servers also would be cheaper in Michigan and Illinois.
Grossbauer wishes Indiana would phase out the personal property tax on equipment so his company can be competitive with out-of-state firms not saddled with that tax.
He was one of about a dozen small business owners who gave their concerns to state lawmakers at the Strongbow Inn in Valparaiso, the first stop on a statewide tour by the Legislature's small business caucus. The bipartisan group of lawmakers is going around the state to ask small business owners what state government can do to help them grow and prosper.
"It's really unprecedented," said Barbara Quandt, the Indiana state director of the National Federation of Independent Businesses.
Small business owners told state Rep. Tom Dermody, R-LaPorte, and state Sen. Ed Charbonneau, R-Valparaiso, at the first town hall Thursday morning they would like to see lower taxes and less red tape. They expressed concerns about regulations, paperwork and the phone manners of state government employees.
The business owners asked state lawmakers to consider streamlining the unemployment claims process and requiring school project referendums to appear on the ballot only during presidential election years, so small groups of voters cannot foist property tax hikes on local businesses.
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Charbonneau and Dermody said they wanted to hear about the challenges small business owners face, and would use the feedback to help craft solutions in the next legislative session. State lawmakers may want to address personal property taxes, since that tax has been especially hard on high-tech businesses that own costly equipment that becomes obsolete relatively quickly, Charbonneau said.
Grossbauer estimates the state's sales and personal property tax rates would put his company at a $78,750 to $168,000 disadvantage compared to out-of-state businesses if it were to install 150 servers at doctor's offices and health care clinics across Indiana. GGNet Technologies would have to pay a 7 percent sales tax on the equipment, and then 6 percent in personal property taxes over the course of its life.
He does not plan to move his company out of state, but does not want to get beat by rivals on price, since he would have to pass the tax on to his customers or face smaller margins.
"Generally, the state of Indiana is very business friendly," he said. "The business climate is very, very positive. I think this is the one thing."
http://www.nwitimes.com/business/local/business-owners-give-lawmakers-an-earful-about-taxes-red-tape/article_555e37e7-6eac-59ce-aec6-65b4034cbcd1.html
