From the Indianapolis Business Journal:
Republicans in the Senate say they want to spur economic development by cutting two taxes on businesses—one that applies to corporate income and the other to equipment.
Under Senate Bill 1, small businesses that own less than $25,000 worth of business equipment would be exempt from paying what’s called personal property taxes. Additionally, the law would reduce the corporate income tax rate from the current 7.5 percent to 4.9 percent by July 1, 2019.
Already, the tax is scheduled to drop to 6.5 percent in about 18 months.
Cutting the corporate income tax rate would put $132 million back into the private sector, Republicans said.
Senate Tax Chairman Brandt Hershman and Senate Appropriations Chairman Luke Kenley said they authored the bill “to boost Hoosier job and economic growth.”
The announcement comes one day after House Republicans released a plan that would give counties more authority to eliminate the personal property tax locally. That plan would leave it up to the counties to decide whether or not businesses have to pay taxes on new equipment they purchase.
Gov. Mike Pence has proposed phasing out the personal property tax as a way to attract more business owners to Indiana. But Pence says he’ll leave it up to lawmakers to decide how to make up the revenue to local government and schools.
Long said the goal of the Senate plan is to “create a better environment to create jobs and to build businesses. ... We think this bill is the better approach.”
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http://www.ibj.com/senate-bill-seeks-to-cut-corporate-income-and-property-taxes/PARAMS/article/45521
