Senate Bill 382, authored by Sen. Travis Holdman (R-Markle) (the Department of Revenue update bill), was amended in the Senate at the urging of vaping and tobacco lobbyists (and over the objections of the Chamber), to reduce taxes on e-cigarettes by 40% – and reduce taxes on cigars and nicotine lozenges. When the bill reached the House Ways and Means Committee, the Chamber and other members of the Alliance for a Healthier Indiana urged the committee to take these tax cuts out of the bill.
On Thursday, the committee heard the bill again and indeed removed the cigar and nicotine lozenges language from the bill, but kept the tax rate reduction for e-cigarettes.
The Chamber will continue to advocate to remove this tax reduction as it will make these products less expensive and more accessible to our youth.
Resource: Kevin Brinegar at (317) 264-6882 or email: kbrinegar@indianachamber.com
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House Bill 1260 (Department of Local Government Finance), authored by Rep. Dan Leonard (R-Huntington), is the always-complicated “agency” bill. It was heard, and substantially amended, but passed unanimously by the Senate Appropriations Committee on Thursday despite the recognition that parts of it are still the subject of debate. Among its many varied changes to local government finances, the House and Senate are still looking at the best procedures regarding the burden on assessors to substantiate a property tax assessment increase when an assessment is challenged on appeal. This bill also traditionally attracts matters that are not initiated by the Department of Local Government Finance, often drawing interest from many different parties.
Senate Bill 145 (Property Tax Matters), authored by Sen. Brian Buchanan (R-Lebanon), passed the House Ways and Means Committee on Wednesday. This is referred to as the “big box” or “dark store” assessment legislation that has in one form or another been considered the last several years. It dictates that the commercial retail properties larger than 100,000 square feet and occupied by their original owner must be assessed based on the cost approach to valuation (meaning the typical cost of constructing such a building) for a period of five years.
The Senate version applied this cost approach method to be applied for the first 10 years following the building’s construction, but the committee amended the time period to five years. This change was viewed as essential to making the requirement palatable.
The Chamber has historically opposed this legislation because it departs from generally accepted appraisal principles, but we have for some time acknowledged that a problem existed and that there is no easy remedy. This is not ideal legislation, but with the committee’s amendment change to five years and the provisions being applicable to only a narrow segment of properties, we have elected to support the measures. All in all, we feel it offers resolution to a persistent problem without jeopardizing the integrity of the system as a whole. The Chamber expresses its appreciation to Sen. Buchanan for working with us and all the interested parties for several years to find this most reasonable resolution. Likewise, we extend special thanks to House Ways and Means Chairman Rep. Tim Brown (R-Crawfordsville) for the committee amendment that makes the bill acceptable.
Resource: Bill Waltz at (317) 264-6887 or email: bwaltz@indianachamber.com
