The State and Local Tax Review Task Force recently held its fourth and final meeting of the year and will reconvene in January to begin considering the significant data that has been provided to the group.
Since August, the Task Force has received presentations from various tax experts. These include former state Senators Luke Kenley and Brandt Hershman, former state Representative Tim Brown and policy think tanks such as the Tax Foundation, PEW Charitable Trusts, the Center on Budget and Policy Priorities, and the Institute on Taxation and Economic Policy.
Members of the Task Force include eight legislators, two from each legislative caucus, as well as four lay members. At least one of the legislative appointees will be leaving the Task Force before January since Sen. Eddie Melton (D-Gary) was elected Mayor of Gary in the municipal elections. It’s likely that Sen. David Niezgodski (D-South Bend) will be appointed to fill the vacancy.
The Task Force concluded its November meeting without adopting formal policy recommendations. Task Force members will discuss recommendations in 2024 and it is expected that a tax reform proposal will be considered during the 2025 legislative session. The Task Force’s next meeting is scheduled for January 10, during which the panel will start hearing public testimony.
The first phase of a comprehensive study of Indiana’s tax system is expected to be finalized in January 2024. The Indiana Chamber Foundation commissioned the study, selecting global accounting and professional services firm Ernst & Young to conduct the research. The first phase involves a comparative analysis of Indiana’s major state and local tax policies, comparing them to states with which Indiana competes for labor and investment.
