It may be easy to forget about personal property taxes now that the May 15 deadline for Indiana filings has passed, but new rules in upcoming years should have business owners planning ahead.
In this year's General Assembly, Senate Bill 1 was passed by both state Chambers of Congress and subsequently signed into law by Gov. Pence.
While Pence was hoping for a complete phase-out of the tax, he is confident Indiana will attract out-of-state companies to do business, and therefore create jobs, in the state as a result of the bill.
The bill received heavy opposition from democrats in both chambers, due mostly to its lack of replacement revenue to replenish funds that the tax cuts will reduce. Several local government officials fear their cities and towns will suffer high volumes of lost revenue without any countering taxes in place.
The corporate tax rate reduction plan involved a reduction every year until 2021, when the rate will reach 4.9%, making it one of the lowest rates in the nation. The business personal property tax cut options will go into effect in July 2015.
Trent Gerbers is a member of Katz, Sapper & Miller's Business Advisory Group. Trent provides financial, tax and consulting services to a variety of industries. He has experience in tax planning, forecasts and projections, and financial analysis. Connect with him on LinkedIn.