February 11, 2022

The Big Issues

BUSINESS PERSONAL PROPERTY TAX

  • As we have reported in recent weeks, HB 1002 is the only bill remaining that attempts to partially reduce the business personal property tax. HB 1002 proposes a tax credit on various state taxes to offset what businesses pay on equipment hitting the 30% depreciation floor. However, by coupling this move with a provision that eliminates the 30% floor entirely for new equipment purchases, the negative financial hit to local units of government is inevitable.
  • It’s important to remind Senators of our position: If any portion of the business personal property tax is eliminated, such revenue must be completely replaced with a sustainable revenue source. In addition to reaching out by phone or email, your community can also pass a resolution, sharing how eliminating any portion of the tax could impact your community. For more information on how you can make a difference, visit our website aimindiana.org/bppt.
  • HB 1002, sponsored by Senator Ryan Mishler (R-Bremen), will be heard next Tuesday in the Senate Tax and Fiscal Policy committee. Aim will continue to work with the Senate leaders to ensure they understand the consequences of eliminating these vital funds without a suitable replacement.

EMINENT DOMAIN

  • HB 1106 would require the county to approve the use of eminent domain by municipalities in unincorporated territory and place several other procedural hurdles on the use of eminent domain outside of corporate boundaries.
  • Aim opposes HB 1106 because it limits the ability to effectively manage existing utility infrastructure outside of municipal boundaries. We are working with the Senate sponsor and committee members to amend this bill to limit its impact on municipal operations.
  • HB 1106, sponsored by Senator Jim Buck (R-Kokomo), could be heard in the Senate Local Government committee next Thursday.

ANNEXATION

  • SB 73 would remove the ability of municipalities to initiate annexations. Only voluntary and super-voluntary annexations would be allowed were SB 73 to pass into law.
  • Annexation is a valuable tool for growing communities because it allows us to grow our service footprint along with the tax base that provides for those services. Aim opposes SB 73’s attempt to further limit our ability to grow and develop through annexation. Further restricting annexation will continue to hamper development and deter growth near current municipal boundaries.
  • SB 73, sponsored by Representative Dan Leonard (R-Huntington), could be heard next Wednesday in the House Local Government committee.

IEDC

  • SB 361 contains a large number of economic development proposals that give the IEDC tools to attract investment to Indiana. Among them is language that would allow the IEDC to designate Innovation Development Districts, regional districts that are selected for economic development projects that are financed by incremental sales, income, and property taxes.
  • Aim worked with the bill author this week to ensure these districts do not affect existing TIF districts. We are continuing to work with him and the House sponsors to ensure that cities and towns can maintain local control over economic development decisions and are partners with IEDC in any proposed district.
  • SB 361, Sponsored by Representative Tim Brown (R-Crawfordsville), was heard in the House Ways and Means committee on Thursday and was held for further amendment at a future meeting.

POLICE LOGS

  • SB 117 would require that the names of minors who are the victims of crimes be redacted in the police logs published by police departments as part of the public record daily. Language was also added to the bill to ensure that any individual’s social security number is not broadcast over unencrypted police radio.
  • This bill is an Aim legislative initiative that came from a member who was concerned about the fact that the name of a minor victim of a crime in their community was published in a local newspaper.
  • SB 117, sponsored by Representative Steve Bartels (R-Eckerty), passed Veterans Affairs and Public Safety committee 11-0 on Tuesday and will now move to the full House for a vote.

AIM LEGISLATIVE MOMENT

“It’s really important to remember that the Governor and members of the House of Representatives are still committed to some form of business personal property tax reduction, specifically the 30% depreciation floor. These last few weeks of session are critical for us to stay engaged and for you to remain engaged with your elected officials.”

– Matt Greller, Aim CEO

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