Elimination of personal property tax january 2014
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Elimination of Personal Property Tax January,2014 PowerPoint PPT Presentation


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Elimination of Personal Property Tax January,2014. Elimination of Personal Property Tax. Recent LSA memo estimates $1.063 b illion of tax revenue would be eliminated… Legislative Services Agency Memorandum, 12/23/2013. Elimination of Personal Property Tax-Effect.

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Elimination of Personal Property Tax January,2014

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Elimination of personal property tax january 2014

Elimination of Personal Property TaxJanuary,2014


Elimination of personal property tax

Elimination of Personal Property Tax

Recent LSA memo estimates $1.063 billion of tax revenue would be eliminated…

Legislative Services Agency Memorandum, 12/23/2013


Elimination of personal property tax effect

Elimination of Personal Property Tax-Effect

  • Circuit breakers to local units (cities, towns, counties,school corporations, libraries etc.) would account for $554 million lost revenue

    Legislative Services Agency Memorandum, 12/23/2013


Elimination of personal property tax effect1

Elimination of Personal Property Tax-Effect

  • Tax shift to real property owners would account for $350 million

    Legislative Services Agency Memorandum, 12/23/2013


Eliminaton of personal property tax

Eliminaton of Personal Property Tax

1. LOST REVENUE


Local loss of revenue

LOCAL LOSS OF REVENUE

LOSS OF REVENUE ESTIMATED BY KOSCIUSKO COUNTY ASSESSOR AND AUDITOR FOR WARSAW CIVIL CITY IS:

$2,214279.28

(11% of General Fund)


Replacement

REPLACEMENT?

  • No current replacement revenue proposed by governor


Replacement1

REPLACEMENT?

  • No current replacement revenue proposed by state


Elimination of personal property tax1

Elimination of Personal Property Tax

SHIFT BURDEN to:

LOCALWAGE EARNERS


Replacement2

REPLACEMENT?

  • State Legislators considering shifting replacement to Local Option Income Tax- .77% increase in payroll tax for Kosciusko County (-LSA Memorandum 12/23/2013)


Elimination of personal property tax2

Elimination of Personal Property Tax

2. SHIFT TAX BURDEN


Eliminaton of personal property tax1

Eliminaton of Personal Property Tax

23% of Current Assessed Value attributable to personal property tax


Eliminaton of personal property tax2

Eliminaton of Personal Property Tax

Assessed Value will go down and tax rates will go up


Elimination of personal property tax3

Elimination of Personal Property Tax

“With the levy limited and assessed value smaller, most tax rates would go up. Personal property owners would pay less, but higher tax rates would shift this tax burden to everyone else “

Larry DeBoer,

“What Happens if We Eliminate Property Tax on Business Equipment” 11/27/2013


Eliminaton of personal property tax3

Eliminaton of Personal Property Tax

SHIFT BURDEN to:

LOCALHOMEOWNERS


Eliminaton of personal property tax4

Eliminaton of Personal Property Tax

SHIFT BURDEN to:

LOCALBUSINESS OWNERS


Local shift

LOCAL SHIFT

Approximately $775,000 will be shifted directly to real estate property taxpayers, both residential and commercial


Eliminaton of personal property tax5

Eliminaton of Personal Property Tax

3. LOSS OF LOCAL ECONOMIC DEVELOPMENT TOOLS


Loss of e d tools

Loss of E.D tools

Currently, ABATEMENT give local Redevelopment Commission the flexibility to phase in or eliminate personal property tax on a case by case basis.


Loss of e d tools1

Loss of E.D tools

Currently, local Redevelopment Commissions have the flexibility to directly invest personal property tax increment into favorable investment for the developer (ie Winona PVD, Medtronic)


Loss of e d tools2

Loss of E.D tools

Elimination of Personal Property Tax eliminates an already limited Local Economic Development Tool Box of yet another incentive.

Does this help meet the original goal of improving Indiana business climate by eliminating PPT?


Loss of e d tools3

Loss of E.D tools

One proposal gives counties the ability to opt out of PPT individually… pitting counties against each other, destroying the synergy of regionalism

Does this help meet the original goal of improving Indiana business climate by eliminating PPT?


Position

Position

  • We are opposed to the elimination of personal property tax, in part or in its entirety, over time or immediately, without guaranteed, complete income replacement.

    “REPLACE NOT ERASE”


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