Bauer supports South Bend Common Council’s call for legislature to reconsider cutting business personal property tax
South Bend, Ind. – State Rep. Maureen Bauer (D-South Bend) offered the following statement in support of the South Bend Common Council’s Monday resolution to call for the Indiana General Assembly to reconsider its proposal to cut the business personal property tax:
“The state of Indiana is projected to have a $5 Billion with a ‘b’ tax surplus by the end of the 2022 fiscal year. As a result, taxpayers will receive an automatic tax refund when filing their 2021 taxes, estimated at $125 per filer.
“House Bill 1002, as it passed out of the House, proposes a tax credit to offset business tax on equipment hitting the 30% depreciation floor. However, without fully and permanently replacing the loss of revenue for local units of government, including counties, cities, libraries and schools, any attempt to cut the 30% floor will negatively impact the budget for local units of government and their ability to provide services, infrastructure and public safety.
“The Senate Tax and Fiscal Policy Committee has eliminated any changes to the business personal property tax, which is good news for cities, towns and local units of governments. Yet, as we approach the final two weeks of negotiations on HB 1002, the language is eligible to come back in conference committee.
“Any tax cut should ensure a strong reserve, which is why this action by the council earlier this week is important for South Bend and 40 other cities who have signed onto a similar resolution, including Mishawaka, Elkhart and Goshen. Cutting the business personal property tax without a sustainable replacement will create local consequences by erasing vital funding.”