January 28, 2022
The Big Issues
BUSINESS PERSONAL PROPERTY TAX
- SB 378, authored by Sen. Brian Buchanan (R-Lebanon), would have increased the BPPT exemption from $80,000 to $250,000, phased down the depreciation floor to 25%, and provided a BPPT holiday in 2023 where property purchased in that year would never be subject to personal property taxation.
- It is an Aim legislative priority to work with the legislature to ensure that any changes to the business personal property tax do not have an adverse effect on local government budgets and that any revenue capacity that is limited is replaced through state action.
- This week, SB 378 was held in committee and will not be moving forward during this session. We were pleased to see Senator Travis Holdman (R-Markle), chairman of the Senate Tax and Fiscal Policy committee, say publicly that he was not interested in moving forward with a cut to local government revenues without a replacement while announcing that the bill would not more forward.
- The issue is still alive in HB 1002 and will continue to be a conversation until the end of session, so we encourage our members to continue conversations about the impact of a BPPT cut with their local legislators. Visit aimindiana.org/bppt to learn more.
- 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 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, authored by Senator Ryan Mishler (R-Bremen), passed the Senate Appropriations committee on Thursday 11-1 and will move on to a vote before the full Senate.
FOOD AND BEVERAGE TAXES
- SB 390 would apply a sunset date to all existing Food and Beverage taxes that do not have one as the later of 20 years from now or when bonds payable by the tax expire. It also includes an onerous new reporting requirement for Innkeepers and Food and Beverage taxes.
- Aim opposes SB 390 because it limits the local control over Food and Beverage taxes and represents a significant administrative burden. Aim has long-advocated for the Food and Beverage tax to be a home-rule option for all cities and towns and SB 390 is a step in the wrong direction.
- SB 390, authored by Senator Mike Gaskill (R-Pendleton), passed the Senate Tax and Fiscal Policy committee on Tuesday with a vote of 8-3.
CONTRIBUTIONS IN AID OF CONSTRUCTION
- HB 1245 would prohibit municipal utilities from including contributions in aid of construction in connection fees, most commonly associated with new development. Contributions in aid of construction usually refers to costs associated with system-wide improvements that are necessitated by adding more properties to the system that are not specifically related to the extension of lines or connecting the new properties.
- Aim opposes this bill in its current form because it shifts the costs of new development onto existing utility ratepayers, but we are working with the bill author to attempt to narrow the impact of the bill.
- HB 1245, authored by Representative Jim Pressel (R-Rolling Prairie), passed the House Utilities committee on Tuesday with a vote of 8-3.
OUTDOOR REFRESHMENT AREAS
- SB 133 would allow municipalities to designate outdoor refreshment areas that often host events like festivals and concerts that would allow carry out wine, beer, and liquor within that designated area, subject to certain requirements and guardrails.
- Aim supports this bill because it gives cities and towns another tool for creating attractive downtowns and quality places to live, work and play here in Indiana.
- SB 133, authored by Senator Liz Brown (R-Fort Wayne), passed the Senate Public Policy committee on Wednesday with a vote of 9-0.
AIM LEGISLATIVE MOMENT
“It’s critical that you take a look at that tracking list at the bottom of Legislative Summary as we’re nearing the point where if we don’t have feedback, it may be really tough for us to weigh in on certain bills. So please let us know immediately if you have any major concerns about a bill that we have not addressed with you yet this session.”
– Jennifer Simmons, Aim COO
Our Legislative Summary Sponsors
Please click on the logos below to learn more about our sponsors.