Mayors want income replacement for House tax cuts

Indiana House Republicans are proposing a bill that would provide $1 billion in tax cuts. They say the cuts will attract businesses to the state, but some mayors are worried about the potential impact on their communities and plan to fight the cuts.

Columbus Mayor Jim Lienhoop (right) says the business property tax has been around for decades. It is a tax that business owners pay for property they own and use, such as furniture, computers or equipment.

“Nobody from California or Germany or Japan, or anywhere looking at Columbus, Indiana, ever said, well, you know, your company’s property taxes are too high. I mean , it’s just not part of the conversation,” Lienhoop said.

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Lawmakers are considering HB 1002 which would eliminate a significant portion of the tax through state tax credits and other means.

“We cannot do without income. I mean, it’s built into our budget that we have from year to year, and so if you want to take that out, and that’s OK, but, you know, find a way to replace it,” he said. -he declares.

It’s a theme that Accelerate Indiana Municipalities — or AIM Indiana — repeats, “Replace Don’t Erase.”

The group says Indiana ranks in the top 10 for business tax climate in most rankings and that businesses consider other things, such as parks, infrastructure and schools when choosing to relocate. .

Terre Haute Mayor Duke Bennett (R) said he served on a summer study committee a few years ago and will be back at the Statehouse this week to keep fighting for replacement income.

“We’re losing $13 million this year that we can’t collect because of tax caps. OK, we’ve dealt with this — we’ve all found a way to deal with this. If you bring in that piece from a few years ago, it was about $5 or $6 million for the city budget,” Bennett said.

He said the city should raise fees or cut staff to make up for the cuts.

A House committee approved the bill on Wednesday. He is now heading upstairs.

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