Pence signs business personal property tax cut

A new law signed Tuesday by Gov. Mike Pence will cut taxes for businesses in the state, but opponents have expressed concern about how it will influence other taxpayers.

“The legislation signed today will strengthen our competitive edge to attract new businesses and good-paying jobs to our state,” Pence said during the signing at the Indiana Economic Development Corporation.

The law, passed by the General Assembly at the end of the session, decreases the corporate income tax rate from 6.5 percent to 4.9 percent by 2021.

It also allows for the elimination of some business personal property taxes and allows counties to eliminate them further for new businesses on a case-by-case basis.

Supporters have argued the tax reductions will encourage business growth in Indiana and provide leeway in attracting development within their borders.

“We are in a national and global competition for jobs,” Pence said. “These important reforms will improve our pro-business tax environment.”

Meanwhile, opponents have expressed concern about where the burden of these tax decreases will hit, particularly related to property taxes, which pay for public schools and other state-funded services.

Lost funding could have to be made up for by other taxpayers.

“We’re all trying to do everything we can to attract business, all at Indiana citizens’ and our expense,” Sen. Tim Skinner, D-Terre Haute, said in a statement Jan. 30 after voting against the bill. “We have been more generous to corporations in Indiana than we have to any other segment of our population.”

Michael Auslen