(INDIANAPOLIS) — Indiana Chamber of Commerce President and CEO Kevin Brinegar on why a special session is needed to complete the work of the 2018 General Assembly:
“The Legislature failed to pass the bill (House Bill 1316) with the state’s response to the major federal tax reform changes that occurred in December. That’s a big problem to not have that reconciled – because state taxes are based on federal adjusted gross income – and would put an unnecessary burden on every Hoosier business.
“It’s evident Governor Holcomb and lawmakers did not want to see the state fail to update its Internal Revenue Code, but that’s where we ended up.
“If no action is taken, each company – small and large – would have to calculate their federal adjusted gross income twice. Once to conform with federal law and once for state law. For smaller-sized businesses, that could mean another $1,000-$1,500 and for the larger ones, considerably more for internal staff time and/or outside accounting expertise. In total, the compliance cost could easily be north of $100 million.
“On top of that, the required quarterly tax estimates become guesses and ultimately become planning and cash flow issues.
“This bad situation had to be fixed and the Chamber applauds Governor Holcomb for making the tough, but correct decision, to call a special session.
“Since legislators will be back for the day, we encourage them to also take up other key measures – on school safety and various tax matters – that would have passed had the clock not run out. They should use this opportunity to pass these bills that were ready to be voted on in the waning hours of the legislative session.”
The Indiana Chamber partners with 25,000 members and investors – representing over four million Hoosiers – to achieve the mission of “cultivating a world-class environment which provides economic opportunity and prosperity.”