From the Indianapolis Star:
Indiana Senate Republicans 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.
Sen. Brandt Hershman, chairman of the Senate Tax and Fiscal Policy Committee, and Senate Appropriations Committee Chairman Luke Kenley said they authored the bill “to boost Hoosier job and economic growth.”
The announcement came 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 businesses have to pay taxes on new equipment they purchase.
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http://www.indystar.com/story/news/politics/2014/01/09/indiana-senate-offers-new-spin-on-reducing-biz-tax/4395757/
