Goshen News, Goshen, IN

State News

March 26, 2014

Pence signs Indiana business tax cuts into law

INDIANAPOLIS (AP) — Republican Gov. Mike Pence signed a package of business tax cuts into law Tuesday that he hopes will draw more business into Indiana.

The new law slashes the state's corporate income tax and provides options for county leaders to reduce property taxes on business equipment. But it still will be awhile before the changes take full effect: The corporate tax cut will not be completed until 2023 and the equipment tax cut will be on hold until mid-2015.

"We worked through a legislative process that I think resulted in Indiana becoming more competitive for the kind of investment that creates jobs," Pence said Tuesday, following a bill-signing ceremony at One Click Ventures, an Internet company based in Greenwood.

"I think by signaling to the country that we've given local communities more options in the area of business personal property taxes is an important message to send," he said. "And I believe it's going to put our local communities and counties in a better position to attract investment."

Pence had sought the elimination of the state's property tax on business equipment, but he faced strong opposition from local government leaders worried about losing a key source of revenue. The tax plan approved by lawmakers amounts to a portion of what Pence originally sought.

The corporate income tax will be dialed back from 6.5 percent to 4.9 percent in the coming years, but the full cut will not be enacted until 2023. The state's financial institutions tax, which is levied on banks, will also be cut from 6.5 percent to 4.9 percent by 2023.

Instead of flatly eliminating the state's business personal property tax levied on equipment, the new law places the decision with counties. Starting after July 1, 2015, local leaders will be allowed to eliminate the tax for small businesses — any with less than $20,000 in business equipment — and also strike the tax for new business equipment purchased by companies.

Text Only
State News
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video
Traditional African Dishes Teach Healthy Eating The Carbon Trap: US Exports Global Warming 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow Raw: Deadly Tornado Hits Virginia Campground Ohio State Marching Band Chief Fired After Probe Raw: Big Rig Stuck in Illinois Swamp
Poll

With military action and tensions escalating between Russia and Ukraine, as well as Israel and Palestine, are you worried that the U.S. and other nations may get drawn into these conflicts?

Yes, it is a great concern of mine
I’m a little worried, but not too much
No, I’m not worried at all
     View Results