GREENFIELD — Indiana’s tax on business equipment should be phased out to make the state more competitive with its neighbors, Gov. Mike Pence told a large crowd of local residents Thursday in Greenfield.
But with two proposals being debated in the state Legislature and local government officials worried about how the cut would impact their budgets, just how the tax reduction or elimination would occur is still up in the air.
Pence spoke at the Rotary Club of Greenfield’s weekly luncheon Thursday, addressing education and business proposals before the Indiana General Assembly this session.
The state’s property tax on business equipment should be phased out somehow, Pence said, to make Indiana more competitive for local investment.
Personal property taxes are levied against equipment used “in the production of income or held as investment,” according to the state’s website. Taxes are paid in the spring.
“In a state where you make things, that’s just a dumb tax,” Pence said. “Manufacturing is on the move in Indiana. It just doesn’t make sense … I want to find a way to phase out business personal property tax.”
Pence pointed out that surrounding states have either lower taxes on equipment or no taxes at all. Kentucky’s tax is lower; Michigan is phasing it out; and Ohio doesn’t have the tax.