February 4, 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 business 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.
  • Now that the legislative session has reached the halfway point, it’s increasingly important to remind lawmakers 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.
  • Those attending the Aim Legislative Dinner this Tuesday will have a great opportunity to reinforce this message. If you do not have plans to attend the dinner there are other ways to ensure your community’s voice is heard. For example, pass a resolution, engage on social media, attend community events or talk with your legislators when they are back home over the weekend. For more information, visit our website aimindiana.org/bppt.

FIRE PROTECTION TERRITORIES

  • HB 1246 provides a process for fire protection territories to appeal to the DLGF for a levy increase due to exceptional growth inside the territory and removes the property tax proceeds for fire protection territories from TIFs.
  • Aim is monitoring this bill to ensure no harmful TIF language is included in the bill and to ensure that the levy appeal process is fair to all the participating units in the fire protection territory.
  • HB 1246, authored by Representative Don Lehe (R-Brookston) passed the House with a vote of 87-5 and will now move to the Senate where it will be sponsored by Senator Brian Buchanan (R-Lebanon).

EMINENT DOMAIN

  • SB 288 would change the appeals process for eminent domain proceedings initiated by utilities and increase the attorneys fees that can be claimed by defendants in eminent domain proceedings from $25,000 to $50,000 or 1/3 of the fair market value of the taking.
  • Aim opposes SB 288 due to the change in the attorney’s fees language that could increase the cost of eminent domain and result in increased litigation costs for common activities like utility easements.
  • SB 288, authored by Senator Brian Buchanan (R-Lebanon), passed the Senate with a vote of 43-6 and will now move on to the House where it will be sponsored by Representative Beau Baird (R-Greencastle).

LOCAL REDISTRICTING

  • HB 1285 changes the requirements for local redistricting so that it also occurs once every ten years with the new census data and requires local redistricting to occur only at specified time periods after the new census. For municipalities, they have an additional year after the year the census data is released to complete their redistricting.
  • Aim continues to monitor this legislation to ensure it is workable for municipalities. The amendment that granted additional time for municipalities to complete redistricting alleviated our largest concerns about the bill.
  • HB 1285, authored by Representative Jake Teshka (R-Mishawaka) passed the House with a vote of 81-10 and now will move on to the Senate where it will be sponsored by Senator Linda Rogers (R-Granger).

PUBLIC NOTICES

  • SB 237 would require agendas for local meetings be posted on the unit’s website, including on a social media page if that is designated as their official website by the local unit.
  • Aim is working with the bill author to ensure that local units that don’t have websites or only have social media pages can work effectively within this law and to ensure that no local ordinances can be challenged for failure to comply with this law, including for technological failure.
  • SB 237, authored by Senator Kevin Bohenlein (R-Greenville) passed the Senate with a vote of 49-0 and will now move on to the House where it will be sponsored by Representative Doug Miller (R-Elkhart).

AIM LEGISLATIVE MOMENT

“This is the shortest of short sessions in my career working with the General Assembly. It’s moving extremely fast. We have just three weeks left for committee hearings in the second half. This means we’re going to have to really be on our toes as it pertains to business personal property House Bill 1002.”

– Matt Greller, Aim CEO

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