January 7, 2022
The Big Issues
BUSINESS PERSONAL PROPERTY TAX
- Several bills have been introduced that would reduce the business personal property tax. HB 1002 would eliminate the 30% depreciation floor on new property while providing businesses with a tax credit for the cost of the depreciation floor on existing property. SB 378 would increase the BPPT exemption from $80,000 to $250,000, phase down the depreciation floor to 25%, and provide a BPPT holiday in 2023 where property purchased in that year would never be subject to personal property taxation.
- It is an Aim legislative priority to work with the legislature to ensure that any changes to the business personal property tax do not have an adverse effect on local government budgets and that any revenue capacity that is limited is replaced through state action.
- HB 1002, authored by Representative Tim Brown (R-Crawfordsville) has yet to be scheduled for a hearing, but SB 378, authored by Senator Brian Buchanan (R-Lebanon) will be heard in the Senate Tax and Fiscal Policy committee next Tuesday.
POLICE LOG INFORMATION
- SB 117 would require that the names of minors who are the victims of crimes be redacted in the police logs published by police departments as part of the public record daily. Language was also added to the bill to ensure that any individual’s social security number is not broadcast over unencrypted police radio.
- This bill is an Aim legislative initiative that came from a member who was concerned about the fact that the name of a minor victim of a crime in their community was published in a local newspaper.
- SB 117, authored by Senator Kyle Walker (R-Lawrence), passed the Senate Corrections and Criminal Law committee 9-0 on Tuesday and will now move to the full Senate for a vote.
ANNEXATION
- SB 73 would remove the ability of municipalities to initiate annexations. Only voluntary and super-voluntary annexations would be allowed were SB 73 to pass into law.
- Annexation is a valuable tool for growing communities because it allows us to grow our service footprint along with the tax base that provides for those services. Aim opposes SB 73’s attempt to further limit our ability to grow and develop through annexation. Further restricting annexation will continue to hamper development and deter growth near current municipal boundaries.
- SB 73, authored by Senator Phil Boots (R-Crawfordsville), was heard in the Senate Local Government committee but was held for a vote at a future meeting.
EMINENT DOMAIN
- SB 29 would require that 120% of the fair market value of properties be paid during eminent domain proceedings and increase the amount of attorney’s fees defendants can collect from the proceedings to $75,000 (previously $25,000).
- Aim is working with the bill author and committee members to narrow the scope of this bill and ensure that it does not unnecessarily increase the cost of local utility, street, and economic development projects.
- SB 29, authored by Senator Jim Buck (R-Kokomo), was heard in the Senate Local Government Committee on Thursday and was held for amendment and vote at a later meeting.
MEET AND CONFER FOR PUBLIC SAFETY EMPLOYEES
- SB 76 allows either party to request an advisory opinion from the Department of Labor during contract negotiations between local units and their police and fire unions in the event that an agreement cannot be reached.
- Aim continues to monitor this proposal in conjunction with our public safety partners to ensure this bill produces a useful tool for contract resolution without creating unnecessary costs or delays during negotiation.
- SB 76, authored by Senator Phil Boots (R-Crawfordsville), passed the Senate Pensions and Labor committee 9-0 on Wednesday and will now move on for a vote before the full Senate.
AIM LEGISLATIVE MOMENT
“The groundwork has been laid for [Business Personal Property Tax] to get our message points across and have a good shot at moving in a direction that will work for cities and towns. The Governor kicked off the week by announcing his legislative agenda, which does include business personal property tax cuts. We’ll have to see how that it shakes out throughout the session. We’re also working with a number of local government based organizations to have a united front on the issue.”
– Matt Greller, Aim CEO
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