Business property tax cut could drive up other taxes
A new legislative report says cutting the business personal property tax could raise taxes for homeowners and workers across the state.
Republican Governor Mike Pence has made eliminating the tax on business equipment a centerpiece of his second-year legislative agenda. He says the cut is needed to spur job creation.
But cutting that tax could force cash-strapped local governments to raise taxes elsewhere. The personal property tax accounts for about $1 billion in local tax collections each year. If it were eliminated, analysts for the Legislative Services Agency project property taxes on homeowners could rise and locally based income taxes could rise by nearly 1 percentage point.
The LSA analysts for completed their report Monday.
Lawmakers plan to consider the cut when they return for their 2014 legislative session next month.
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