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Recent NFIB/Indiana victories:
Eliminated inventory tax, saving taxpayers roughly $400 million per year
Indiana will finally achieve complete statewide elimination of the inventory tax beginning with assessments made in 2006 for property taxes first due and payable in 2007. Reporting of inventory is required in order to obtain proper assessed valuation data but there is no tax. NFIB/Indiana played a key role in passing this key pro-small-business initiative.
Defeated sales tax on services
NFIB/Indiana worked to stop a sales tax on services that would have dramatically increased the small-business tax burden and required extra paperwork and red tape for small-business owners who previously did not have to collect sales tax. Key state fiscal leaders have suggested it be included in future tax restructuring efforts. In the most recent NFIB/Indiana Member Ballot, 89 percent of respondents opposed extending the sales tax to services.
Stopped health insurance mandates, keeping premiums low
NFIB helped to stop health insurance mandates, including a move to require coverage of infertility treatments which would have cost as much as $6 per covered employee per month. Various mandate bills were introduced, including one in 2005 that would have required health insurers to offer mandated coverage for infertility treatments. Thirty-seven percent of respondents to NFIB/Indiana's survey reported health insurance cost increases of 20 percent or more in the last 12 months.
Secured positive long-term impact on employer health insurance costs
NFIB/Indiana supported a new law that allows employers to implement financial incentives related to employer provided health benefits to reduce employee tobacco use. This legislation will have a positive long-term impact on employer health insurance costs.
Achieved significant small-business economic development
NFIB/Indiana supported legislation that provides an automatic property-tax investment deduction. Real and personal property additions would qualify for over a period of three years. The deduction would apply if the property owner creates or retains jobs because of the project. The deduction would apply to property that is first assessed on March 1, 2006, 2007, 2008 or 2009. Each property owner would be limited to $2 million in assessed value in real property deductions plus $2 million in assessed value in personal property deductions within each county.
2003 Legislative Victories:
No New Taxes on Small Business: NFIB/Indiana was successful in that there were no new taxes passed on small business!
Health Insurance Mandate Analysis: NFIB/Indiana was successful with the passage of language into law calling for a task force to be created to analyze existing and proposed health insurance mandates. It is a first step in slowing down future efforts by the Legislature to pass health insurance mandates.
Unemployment Compensation -- Reed Act: Under the Temporary Extended Unemployment Compensation Act of 2002 (Reed Act), the federal government distributed $174.5 million to Indiana in a special Reed Act distribution. In the budget bill, NFIB/Indiana worked to ensure at least $102.3 million was directed into the state Unemployment Trust Fund. The remaining $72.2 million was appropriated over the next ten years to the Department of Workforce Development for technology upgrades and certain employment service programs.
Workers' Compensation -- $220 million or more saved! NFIB/Indiana and ally business groups stood firm against repeated attempts by organized labor to dramatically increase workers' compensation benefits. The National Council on Compensation forecasted costs to be roughly $220 million or more.
VICTORY: 2002 -- NFIB successfully opposed the enactment of a business net worth franchise tax as recommended by Lt. Governor Joe Kernan. In addition, Indiana counties have been empowered to eliminate the inventory tax before it expires in 2007.
VICTORY: 2002 -- Indiana faces a fiscal crisis, with the projected deficit exceeding $1 billion within two years. Proposals are anticipated that would establish new taxes on small business, including a net worth franchise tax, a supplemental business income tax or an extension of the sales tax to include services.
HOT BUTTON: The Indiana Supreme Court decision requiring a market value assessment system will necessitate substantial tax changes for its implementation. To attempt to prevent major tax increases for homeowners, the State Tax Board is proposing to increase business property taxes. In addition to the new real property assessment guidelines, the Tax Board plans to overthrow decades of established practices and adopt regulations that would result in huge increases in the property taxes paid on inventories, machinery and equipment.
VICTORY: During the 1999 Indiana General Assembly, NFIB was successful in bringing about the enactment of inventory and personal property tax relief legislation. Using the small business formula promoted by NFIB, legislators enacted legislation that will eliminate the inventory tax for 86 percent of all small businesses. At the same time, with NFIB support, legislators repealed the statute requiring that businesses add back property tax deductions when calculating the Indiana income tax. This will result in substantial tax savings for businesses owning land and buildings and for Indiana family farms.
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