From the Clark County News and Tribune:
It seemed like a joyous occasion for the New Albany City Council and Mayor Jeff Gahan’s administration.
The state notified the city that its 2014 budget had been approved at $22.6 million, up from the 2013 total, and officials discussed the future fiscal condition of New Albany during Monday’s council meeting.
However, the mention of a state measure to eliminate the tax on new business equipment and machinery resulted in several council members and administration officials voicing concern about what such a move could do to municipalities.
Councilman Dan Coffey said the state apparently wants to “gut” local government funding, and added that reducing the equipment tax is another example of that policy.
“We’ve got to be proactive about this,” Coffey said.
The State House and Senate have approved bills that would allow counties to remove the tax on new business equipment. Proponents of the measure said it will aid economic development in the state.
The equipment tax is relied upon by local governments and school systems for funding, and city council members expressed their desire to hold workshops on what the legislation could mean to New Albany.
David Duggins, director of economic development and redevelopment for the city, said he’s been in contact with state leaders about the bill.
“I think it’s a major impact,” Duggins said, though he added the tax remains in effect locally.
“It’s speculative, but I think it’s something important we should watch.”
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http://www.newsandtribune.com/floydcounty/x1782773134/New-Albany-council-city-officials-discuss-equipment-tax-impact
