Proposed Senate Bill 385, authored by Senator Aaron Freeman, will change the tax calculation process on business personal property in Indiana from taxing its value when acquired, to taxing it on the current cash value. The bills economic affect to Indiana is up for debate, but it is believed to have potential for significant impact as it could exempt 66,500 small businesses from having to pay the tax.
According to Senator Aaron Freeman, "Indiana should change the law to base the tax on the current cash value instead of the acquisition cost, because if a business keeps a piece of equipment it purchased for years, the value would depreciate, making it more sensible to base it on the current value." Advocates for the Bill foresee it being a helping force in smaller businesses personal property taxes and operating revenues. However, contrary concerns from the Legislative Services Agency predict this change to affect cities, schools, and towns with a loss in tax revenues equaling around $18 million statewide.
To read the full article from the Indiana Lawyer, click here.