Indiana Small Business: We Need YOUR Feedback For Tax Relief

January 18, 2023

Indiana Small Business: We Need YOUR Feedback For Tax Relief

NFIB Member, Representative Peggy Mayfield, R-Martinsville, filed legislation that would make changes to the business personal property tax (BPP) that would offer a bit of a windfall to small-business owners. Unfortunately, it’s unclear whether Mayfield’s initiative will become part of the GOP’s overall agenda due to the lack of feedback from the business community. The bill would raise the exemption that determines which companies must pay the business personal property tax. Mayfield’s bill would exempt all companies that own machinery, equipment and other tangible goods that cost them, in total, less than $250,000. The current threshold is $80,000. Raising the threshold to $250,000 would exempt about 80% of small businesses from paying the tax and would eliminate the administrative accounting headaches for 48,000 businesses, according to past legislative estimates. “It would be one less thing that a small businessman has to worry about,” Mayfield said. In many cases, it costs small businesses more time and effort to determine the tax that is owed than filing the return. There are tens of thousands of small businesses that have very little machinery and equipment, and they still must pay a CPA which can cost more than the small amount of tax collected. And yet others must go through the exercise to pay an accountant to find out they don’t even owe any money. Either way, small businesses lose on the deal. House Speaker Todd Huston supports the concept but its chances of passing in the Senate aren’t as strong. Senator Travis Holdman, a Republican from northeastern Indiana who chairs the Senate Tax & Fiscal Policy Committee, has declined to say whether he would support Mayfield’s bill. Senator Ryan Mishler, R-Mishawaka, who chairs the Senate Appropriations Committee, said he would be open to changes if there were greater demand from the business community. Are you up for the challenge? If so, please complete a brief survey on the impact BPP has on your business and NFIB will ensure your responses are heard at the Statehouse. We need your voice to eliminate this tax. CLICK TO TAKE ACTION

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Uncategorized

State:

Indiana

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